Document:

englobalexh102.htm

Exhibit 10.2

 

FOURTH AMENDMENT TO OFFICE LEASE

 

 

THIS FOURTH AMENDMENT TO OFFICE LEASE (the "Amendment") is executed effective as of March 1, 2010 (the "Effective Date"), by and among YPI NORTH   BELT   PORTFOLIO),   LLC   ("Landlord"),   as   landlord,   and   ENGLOBAL CORPORATE SERVICES, INC., a Texas corporation ("Tenant").

 

Recitals

 

WHEREAS, KOLL BREN FUND V, L.P., a Delaware limited partnership ("Prior Landlord") and Tenant previously entered into that certain Office Lease dated March 4, 2005 (the "Original Lease"), as amended by that certain First Amendment to Office Lease dated effective as of November 3, 2005, that certain Amended and Restated First Amendment to Office Lease dated effective as of November 3, 2005, that certain Second Amendment to Office Lease dated effective as of July 31, 2006, and that certain Third Amendment to Office Lease dated effective as of April 18, 2007 (collectively, the "Lease"); and

 

WHEREAS, pursuant to the Lease, Tenant currently leases 53,788 square feet of Rentable Area (the "Current Premises") in the building commonly known as Bridgewood I (the "Building") located at 654 North Sam Houston Parkway East, Houston, Texas 77060, which Current Premises consists of Suite 400 containing 33,759 square feet, as depicted on EXHIBIT A attached hereto (the "Original Premises"), Suite 225 containing 15,367 square feet ("Suite 225 Premises"), and Suite 200 containing 4,662 square feet ("Suite 200 Premises"); and

        WHEREAS, subject to and in accordance with this Amendment, Landlord, as successor in interest to Prior Landlord, and Tenant desire to amend the Lease as hereinafter provided.

 

Agreement

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

 

1.           Defined Terms.  Unless otherwise defined herein, each defined term used in this Amendment has the same meaning given to such term in the Lease.

 

2.           Surrendered Space and Reduced Premises.   On or before February 28, 2010, Tenant shall vacate and cease conducting any business in all of the Suite 225 Premises EXCEPT FOR the portion of the Suite 225 Premises containing 3,018 square feet of Rentable Area (the "2009 Subleased Premises"), as depicted on EXHIBIT B attached to this Amendment, which 2009 Subleased Premises is currently subleased by Tenant to DYNAMIC ENGINEERING, INC. ("Subtenant") pursuant to that certain Sublease Agreement Additional Space dated as of January 1, 2009 (the "2009 Sublease"), executed by Tenant and Subtenant; provided, however, that notwithstanding the foregoing, so long as Tenant does not, during the period from March 1, 2010, through July 31, 2011, use or conduct any business in the Surrendered Space, then Tenant

 

  

  

  

Exhibit 10.2

shall be permitted to leave in place in the Surrendered Space (as herein defined) the furniture and cubicles currently located in the Surrendered Space (the "Stored Furniture"). The portion of the Suite 225 Premises to be vacated by Tenant contains 12,349 square feet of Rentable Area and is depicted on EXHIBIT C attached hereto (the "Surrendered Space"). Tenant shall, on or before February 28, 2010, deliver physical possession of the Surrendered Space to Landlord in a broom clean condition (except for the storage of the Stored Furniture, as aforesaid) and otherwise in the condition required under the provisions of the Lease. Landlord reserves the right to remove the Stored Furniture from the Surrendered Space if, during the period from March 1, 2010, through July 31, 2011, Tenant uses or conducts any business in the Surrendered Space. Accordingly, effective as of March 1, 2010, the Premises under the Lease is hereby decreased by the elimination of the Surrendered Space from the 53,788 square feet of Rentable Area comprising the Current Premises under the Lease, thereby reducing the Premises to a total of 41,439 square feet of Rentable Area (the "Reduced Premises"), which is comprised of the Original Premises (containing 33,759 square feet of Rentable Area), the Suite 200 Premises (containing 4,662 square feet of Rentable Area), and the 2009 Subleased Premises as depicted on EXHIBIT B attached to this Amendment (containing 3,018 square feet of Rentable Area). For informational purposes only, the parties hereto acknowledge and agree that all of the Suite 200 Premises containing 4,662 square feet of Rentable Area, as depicted on EXHIBIT D attached to this Amendment, is currently subleased by Tenant to Subtenant pursuant to that certain Sublease Agreement dated as of November 15, 2008, executed by Tenant and Subtenant.

 

a.           As  of February  28,  2010,  the  Surrendered  Space  shall  be  deemed surrendered by Tenant to Landlord, the Lease, as amended hereby, shall be deemed terminated with respect to the Surrendered Space, and the "Premises", as defined in the Lease, as amended hereby, shall mean and only refer to the Reduced Premises containing 41,439 square feet of Rentable Area.    Additionally, as of March 1, 2010, all prior depictions of the Suite 225 Premises contained in the Lease are hereby deleted in their entirety and EXHIBIT B attached to this Amendment hereby replaces and supersedes for all purposes all such prior depictions of the Suite 225 Premises and EXHIBIT B is hereby incorporated in the Lease, as amended hereby, by reference for all purposes in lieu of such prior depictions.

 

b.           Beginning on March 1, 2010, Tenant shall have no further claim for the lease, use, occupancy or possession of any of the Surrendered Space, and if Tenant fails to vacate the Surrendered Space by 11:59 p.m., Houston, Texas time, on February 28, 2010, such failure shall constitute a material breach and default by Tenant of the Lease, as amended hereby, whereupon, notwithstanding anything to the contrary contained in the Lease, Landlord shall be entitled to exercise and enforce without any notice to Tenant all of the rights and remedies under the Lease, as amended hereby, and all applicable laws, including, but not limited to, initiating a lawsuit or forcible detainer action to evict Tenant from the urrendered Space; and (ii) seeking to collect all court costs and reasonable attorneys' fees and expenses incurred by Landlord as a result of such breach and default by Tenant of the Lease, as amended hereby.

 

3.        Extension of Lease Term as to Original Premises.  The Initial Term of the Lease as to the entire Premises currently expires on July 31, 2031. As of the Effective Date, the Lease Term as to the Original Premises (containing 33,759 square feet of Rentable Area) ONLY is hereby extended for an additional period of sixty (60) months 

 

  

FOURTH AMENDMENT TO OFFICE LEASE - Page 2

  

Exhibit 10.2

(the "First Extended Term") commencing on August 1, 2011 (the "First Extension Date"), and unless sooner terminated as provided in the Lease, as amended hereby, expiring on July 31, 2016.  All references contained in the Lease to the term  "Lease Term" and the phrase "term of this Lease" are hereby amended to reflect such extension. On or before the First Extension Date, Tenant shall vacate, and Tenant shall cause Subtenant to vacate, all of the Suite 200 Premises (containing 4,662 square feet of Rentable Area) and the 2009 Subleased Premises (containing 3,018 square feet of Rentable Area), whereupon Tenant shall deliver physical possession of the Suite 200 Premises and the 2009 Subleased Premises to Landlord in a broom clean condition and otherwise in the condition required under the provisions of the Lease. As of the First Extension Date, the Suite 200 Premises and the 2009 Subleased Premises shall be deemed surrendered by Tenant to Landlord, the Lease, as amended hereby, shall be deemed terminated with respect to the Suite 200 Premises and the 2009 Subleased Premises, and the "Premises", as defined in the Lease, as amended hereby, shall mean and only refer to the Original Premises containing 33,759 square feet of Rentable Area.

 

4. Base Rent. Notwithstanding anything to the contrary contained in the Lease, commencing as of March 1, 2010, in addition to additional rent required to be paid by Tenant under the Lease, as amended hereby, Tenant shall pay to Landlord the following monthly installments of Base Rent for the lease of the following portions of the Reduced Premises:

 

a.           Suite 200 Premises.  During the portion of the Lease Term beginning on March 1, 2010, and continuing through and including July 31, 2011, Tenant shall pay to Landlord equal monthly installments of Base Rent, in the amount of $5,924.63 each (i.e., $15.25 per square foot of Rentable Area per year), for the lease of the Suite 200 Premises.

 

b.           2009  Subleased  Premises.     During the  portion  of the  Lease  Term beginning on March 1, 2010, and continuing through and including July 31, 2011, Tenant shall pay to Landlord equal monthly installments of Base Rent, in the amount of $3,521.00 each (i.e., $14.00 per square foot of Rentable Area per year), for the lease of the 2009 Subleased Premises.

        c.           Original Premises.   During the portion of the Lease Term beginning on March 1, 2010, and continuing through and including July 31, 2016, Tenant shall pay to Landlord the following monthly installments of Base Rent for the lease of the Original Premises:

 

 

  

FOURTH AMENDMENT TO OFFICE LEASE - Page 3

  

Exhibit 10.2

 

	

Portion of

	

Annual rate per square

	

Monthly installment

	

Lease Terms

	

foot of Rentable Area

	

of Base Rent

	
03/01/2010-07/31/2011

 

	

$15.00

	

$42,198.75

	
08/01/2011-09/30/2011

 

	

$15.00

	

   $42,198.75 *

	
10/01/2011-07/31/2012

 

	

$15.00

	

$42,198.75

	
08/01/2012-07/31/2014

 

	

S15.50

	

$43,605.38

	
08/01/2014-07/31/2016

 

	

$16.00

	

$45,012.00

 

 

	 	

*NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AMENDMENT, the monthly installments of Base Rent ONLY as to the Original Premises ONLY during the period of two (2) months beginning on the August 1, 2011 and ending on September 30, 2011, shall be abated and if a breach or default by Tenant occurs under the Lease, as amended hereby, resulting in early termination of the Lease, as amended hereby, or the early termination of Tenant's right to possession of the Original Premises, then Landlord shall be entitled to recover all of such monthly installments of Base Rent that were abated as provided herein.

	 

 

All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease, as amended hereby.

 

5.      Tenant's Proportionate Share of Operating Costs. During the portion of the Lease Term beginning on March 1, 2010, and ending on July 31, 2011, Tenant's Proportionate Share of Operating Costs for the Premises shall be amended and stipulated to be 30.861% (i.e., 41,439 square feet of Rentable Area divided by 134,277 square feet of Rentable Area). During the portion of the Lease Term beginning on August 1, 2011, and ending on July 31, 2016. Tenant's Proportionate Share of Operating Costs for the Premises shall be amended and stipulated to be 25.141% (i.e., 33,759 square feet of Rentable Area divided by 134,277 square feet of Rentable Area). During the portion of the Lease Term beginning on March 1, 2010, and ending on July 31, 2011, the Base Year for Operating Costs as to the Suite 200 Premises and the 2009 Subleased Premises ONLY shall continue to be calendar year 2005, as provided in the Lease. Effective as of January 1, 2010, the Base Year for Operating Costs as to the Original Premises ONLY shall be calendar year 2010, as provided in the Lease; provided, however, that notwithstanding the foregoing, with respect ONLY to the Original Premises, for the purpose only of calculating the excess if Operating Costs for the Building and the Project for any calendar year of the Lease Term after 2010 (an "Applicable Year") exceed the Base Operating Costs, the Operating Costs of the Applicable Year shall not exceed the difference of (a) the sum of (i) all Controllable Expenses (as herein defined) actually incurred during calendar year 2010 compounded at a cumulative annual rate of six percent (6%) for each calendar year (or portion thereof) commencing with calendar year 2010 through and including the Applicable Year; and (ii) all Non-Controllable Expenses (defined below) incurred by Landlord during the Applicable Year; LESS (b) the sum of all Controllable Expenses and all Non-Controllable Expenses actually incurred by Landlord during calendar year 2010. As used in this Amendment, the term "Controllable Expenses" means and includes all Expenses incurred by Landlord OTHER THAN Non-Controllable Expenses. As used in this Amendment, the term "Non-Controllable Expenses" means and includes all Real Estate Taxes, insurance costs, expenses of snow and ice removal and utilities expenses incurred by Landlord in connection with the Building and the Project.

FOURTH AMENDMENT TO OFFICE LEASE - Page 4

  

  

Exhibit 10.2

6.           Real Estate Taxes.  Section 3(d)(i) of the Lease is hereby amended by adding the following provision to the end of said Section 3(d)(i):  "Notwithstanding the foregoing, as used herein, Real Estate Taxes includes, but is not limited to, the Texas Margin tax."

 

7.           Condition of Reduced Premises.    As of the Effective Date, Tenant currently occupies all of the Current Premises. Tenant hereby acknowledges and agrees that (i) the Current Premises and the Building are satisfactory to Tenant in all respects; and (ii) Tenant hereby accepts the Reduced Premises and the Building in their present "AS IS, WHERE IS" and "WITH ALL FAULTS'" condition with any and all faults and latent or patent defects and without relying upon any representation or warranty (express or implied) of Landlord or any employee, agent, contractor or representative of Landlord. Tenant acknowledges and agrees that the  Reduced Premises and the Building are in good order and satisfactory condition. LANDLORD HEREBY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE CONDITION OR SUITABILITY OF THE REDUCED PREMISES OR THE BUILDING ON THE EFFECTIVE DATE. FURTHER, TO THE EXTENT PERMITTED BY LAW, TENANT WAIVES ANY IMPLIED WARRANTY OF SUITABILITY OR OTHER IMPLIED WARRANTIES THAT LANDLORD WILL MAINTAIN OR REPAIR THE REDUCED PREMISES OR ITS APPURTENANCES EXCEPT AS MAY BE CLEARLY AND EXPRESSLY PROVIDED IN THE LEASE, AS AMENDED HEREBY. Landlord has not made, and does not make, any representations or warranties to Tenant regarding the physical condition of the Reduced Premises or the Building. Tenant further acknowledges and agrees that Landlord has no obligation to install or construct any improvements or other alterations or modifications in the Reduced Premises (or any part thereof) or to pay or reimburse Tenant for any costs or expenses it has paid or incurred, or hereafter pays or incurs, in connection with the installation or construction of any improvements or other alterations or modifications to the Reduced Premises (or any part thereof).

 

8.           Parking. Effective as of March 1, 2010, the total number of parking spaces that shall be made available by Landlord to Tenant AT NO CHARGE for Tenant's use pursuant to the Lease, as amended hereby, shall be four (4) parking spaces for each 1,000 square feet of Rentable Area of the Reduced Premises, thirty-three (33) of which parking spaces shall be covered, reserved parking spaces in locations to be designated by Landlord and the remainder of which parking spaces shall be uncovered, unassigned and unreserved parking spaces. In addition to the foregoing parking spaces, during the portion of the Lease Term beginning on March 1, 2010, through July 31, 2011, Landlord shall make available to Tenant AT NO CHARGE for Tenant's use pursuant to the Lease, as amended hereby, seven (7) additional covered, reserved parking spaces in areas to be designated by Landlord,

 

9.           One Renewal Option at Market.    The provisions of Addendum One (ONE RENEWAL OPTION AT MARKET) attached to the Original Lease shall continue in full force and effect during the First Extended Term.

 

10.         Right of First Refusal.  The provisions of Addendum Three (RIGHT OF FIRST REFUSAL) attached to the Original Lease shall continue in full force and effect during the First Extended Term.

FOURTH AMENDMENT TO OFFICE LEASE - Page 5

  

  

Exhibit 10.2

11.          Option to Lease Surrendered Space.   So long as no breach or default by Tenant has occurred under the Lease, as amended hereby, Tenant shall have the option to lease all (but not less than all) of the Surrendered Space, as depicted on EXHIBIT C attached hereto, by delivering to Landlord no later than July 31, 2011, irrevocable written notice executed by Tenant exercising such option, whereupon the Lease, as amended hereby, shall be amended to add the Surrendered Space to the Premises then being leased hereundcr.   If Tenant timely exercises its option to lease the Surrendered Space, the terms and conditions applicable to Tenant's lease, use and possession of the Surrendered Space shall be identical to the terms and conditions applicable to Tenant's lease, use and possession of the Original Premises pursuant to the Lease, as amended hereby, including, but not limited to the Base Rent rates specified in Paragraph 4(c) hereof and the Base Year for Operating Costs as to the Surrendered Space shall be calendar year 2010.

 

12.          Security Deposit.  Within thirty (30) days after full execution and delivery of this Amendment by the parties hereto, Landlord shall refund a portion, in the amount of $17,928.17, of the Security Deposit currently being held by Landlord under the Lease, which the parties hereto acknowledge and agree shall thereupon reduce the remaining balance of the Security Deposit then being held by Landlord under the Lease, as amended hereto, to $39,385.50. Landlord reserves the right to refund such amount in the form of a credit to be applied to the next installment of Base Rent coming due under the Lease, as amended hereby.

 

13.          Business Hours.    As of the Effective Date, notwithstanding anything to the contrary contained in the Lease, the term "Business Hours" shall mean and include 8:00 a.m. to 6:00 p.m. on Business Days (as herein defined), and from 9:00 a.m. to 1:00 p.m. on Saturdays, excluding Holidays (as herein defined).   As used in this Amendment, (i) the term "Business Day(s)" means Monday through Friday of each week, exclusive of Holidays; and (ii) the term "Holidays" means New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, and Christmas Day.   The Building has no Business Hours on Sundays.   Landlord may hereafter designate additional Holidays that arc commonly recognized by other office buildings in the area where the Building is located.

       14.          Satellite Dish Term.   The Satellite Dish Term (as defined in the April 18, 2007 Third Amendment to Office Lease) is hereby extended to be coterminous with the First Extended Term (that is, the Satellite Dish Term shall expire on the date that the First Extended Term expires or is terminated) and there shall continue to be no rent payable for the Satellite Dish Space throughout the Satellite Dish Term, as extended hereby.

 

15.          Remaining Provisions.  Except and only to the extent expressly amended by this Amendment, ail terms and provisions of the Lease shall apply to Tenant's lease, use, occupancy and possession of the Reduced Premises during the First Extended Term.

 

16.          Landlord's Addresses.   The notice and payment of rent addresses for Landlord contained in the Lease are hereby deleted and the following notice and payment of rent addresses for Landlord are hereby inserted in the Lease in lieu thereof:

FOURTH AMENDMENT TO OFFICE LEASE - Page 6

  

  

Exhibit 10.2

Landlord's Notice Address:

YPI North Belt Portfolio, LP

650 North Sam Houston Parkway East #232

Houston, TX 77060

Attn: Property Manager

 

with a copy to:

YPI North Belt Portfolio, LP

e/o Younan Properties, Inc. 

21700 Oxnard Street, 8th Floor

Woodland Hills, CA 91367

Attn: General Counsel

All payments payable under this Lease, as amended hereby, shall be delivered to Landlord at YPI North Belt Portfolio, LLC, P. O. Box 809042, Chicago, IL 60680-9042, Attn: Property Manager, or at such other address as Landlord may hereafter designate in writing to Tenant.

        17.          Brokers.   PM   REALTY   GROUP   ("Landlord's   Broker")   exclusively represented Landlord in connection with this Amendment. GRUBB & ELLIS COMMERCIAL REAL ESTATE SERVICES ("Tenant's Broker") exclusively represented Tenant in connection with this Amendment. Tenant hereby represents and warrants to Landlord that, except for Tenant's Broker, no real estate broker, agent or salesperson represented Tenant in connection with this Amendment or the First Extended Term, as provided herein. Tenant further represents and warrants to Landlord that, except for Landlord's Broker and Tenant's Broker, Tenant has not dealt with any real estate broker, agent or salesperson in connection with this Amendment or the First Extended Term, as provided herein. Tenant hereby indemnifies and holds Landlord harmless against any claim, demand, action, cause of action, lawsuit, damages, judgment, settlement, cost, expense or other obligation of any kind, including, but not limited to, court costs and reasonable attorneys' fees and court costs incurred by Landlord if Tenant's representations and warranties contained in this Paragraph 17 are untrue or inaccurate in any respect.

 

18.          Calculation of Charges,   Landlord and Tenant agree that each provision of the Lease,  as  amended  hereby,  for determining  charges,  amounts  and  payments  by  Tenant (including, without limitation, Tenant's Pro Rata Share of amount by which Basic Costs for the applicable calendar year exceeds Basic Costs for the Base Year and the amount by which Taxes for the applicable calendar year exceeds Taxes for the Base Year) is commercially reasonable, and as to each such charge or amount, constitutes a "method by which the charge is to be computed" for purposes of Section 93.012 (Assessment of Charges) of the Texas Property Code, as such section now exists or as it may be hereafter amended or succeeded.

 

19.          Administrative Fee. During the Lease Term, if Landlord or its property manager at Tenant's request performs any service, incurs any cost or expense, or furnishes any goods to or for the use or benefit of Tenant, or if, pursuant to any provision contained in the Lease, as amended hereby, Landlord or its properly manager at its option performs, or causes to be performed, any obligation hereundcr that Tenant failed to perform, then and in each such instance, in addition to the amount that Tenant is thereupon obligated as a result of the foregoing to pay or reimburse to Landlord, Tenant shall pay to Landlord an administrative fee equal to ten percent (10%) of such amount.

FOURTH AMENDMENT TO OFFICE LEASE - Page 7

  

  

Exhibit 10.2

 

20.           Tax   Protest   Waiver.       NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE LEASE, TENANT HEREBY WAIVES ALL RIGHTS TO PROTEST THE APPRAISED VALUE OF THE BUILDING OR LAND ON WHICH THE BUILDING IS LOCATED OR TO APPEAL THE SAME AND ALL RIGHTS TO RECEIVE NOTICES OF REAPPRAISALS AS SET FORTH IN SECTIONS 41.413 AND 42.015 OF THE TEXAS TAX CODE,

 

21.           DTPA Waiver.   TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET. SEQ. OF THE TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF TENANT'S OWN SELECTION, TENANT VOLUNTARILY CONSENTS TO THIS WAIVER.

 

22.           No Offer or Option. The submission by Landlord to Tenant of one or more drafts of this Amendment for Tenant's review and comment does not constitute, and shall not be deemed or construed to be, an offer, option, commitment or agreement by Landlord to execute such draft or drafts, and such submission does not grant or confer any rights or interests to Tenant or impose any obligations on Landlord regardless of any reliance, change of position, or partial performance by either Landlord or Tenant in respect of such submission. No such drafts shall be binding or enforceable against Landlord or Tenant, it being the intent of each of the parties hereto that this Amendment shall not be effective, binding or enforceable against either party hereto until this Amendment is duly executed and delivered by both Landlord and Tenant.

23.           Other.   Except as expressly set forth in this Amendment, the Lease has not been modified or amended.   The Lease, as amended by this Amendment, is in full force and effect. The parties hereto hereby ratify, confirm and approve in all respects the Lease, as amended by this Amendment.    To the best of Landlord's knowledge as of the date on which Landlord executes this Amendment, Tenant is not in default of its obligations under the Lease. To the best of Tenant's knowledge as of the date on which Tenant executes this Amendment, (i) Landlord is not in default of its obligations under the Lease; and (ii) no event has occurred that with the passage of time, the giving of notice or both will constitute a default or breach by Landlord of its obligations and liabilities under the Lease.  No rent or other charges due under the Lease have been paid by Tenant in advance of the current month.   Tenant is not entitled to any refunds, rebates, offsets or credits with respect to any amounts heretofore paid by Tenant under the Lease. Tenant has no claim, counterclaim or other defense to the payment of rent or other amounts due or to become due under the Lease, as amended hereby, or the performance of any of Tenant's other obligations under the Lease, as amended hereby.   Tenant has not assigned the Lease or any of the right, title or interest of the tenant under the Lease.   Except for subleases to Subtenant, which have been consented to in writing by Landlord, Tenant has not subleased the Current Premises or any part thereof. No person or entity other than Tenant occupies any portion of the Current Premises. Tenant represents and warrants to Landlord that as of the Effective Date, there are no mechanics' liens or other liens encumbering all or any portion of the Current Premises or the Building by virtue of any act or omission on the part of Tenant, its predecessors, contractors, agents, employees, successors or assigns. The Lease, as amended by this Amendment, constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes and replaces for all purposes all prior and contemporaneous agreements and understandings, whether oral or written, between the parties hereto and their respective successors and permitted assigns. The Lease, as amended by this Amendment, cannot be modified or amended, except in writing executed by both parties hereto. The Lease, as amended by this Amendment, is governed by and will be construed and enforced in accordance with the laws of the State of Texas. Time is of the essence in the performance by each party of its obligations under the Lease, as amended by this Amendment. 

FOURTH AMENDMENT TO OFFICE LEASE - Page 8

  

  

Exhibit 10.2

24.           Authority.  Each agent, partner or officer executing this Amendment on behalf of a party hereto represents and warrants to the other party hereto that he or she is fully authorized, directed and empowered to execute and deliver this Amendment in such capacity as the act and deed of the party on whose behalf he or she is executing this Amendment and that all partnership, corporate or company action requisite to such execution and delivery has been taken by such party.

 

25.           Counterparts.    This Amendment may be executed in counterparts, and each counterpart when fully executed and delivered by the parties hereto will be an original instrument, but all such counterparts will constitute one agreement.

 

(signature page follows)

 

 

  

FOURTH AMENDMENT TO OFFICE LEASE - Page 9

  

Exhibit 10.2

 

IN WITNESS OF, each of Landlord and Tenant has executed this Amendment on the date set opposite its signature below, but to be effective as of the Effective Date.

	  	  	  
	
LANDLORD:

	
 

	 YPI NORTH BELT FORTFOLIO, LLC
	  	  	  
	  	  	  
	  	  	  
	
Date:    03/03/2010

	
 

	  By:     /s/ John Cook                                                                    
	  	
        

	             John Cook, Vice President
	  	 	 
	
TENANT:

	
 

	ENGLOBAL CORPORATE SERVICES, INC.
	  	 	A Texas corporation
	  	  	  
	  	  	  
	
Date:    03/02/2010

	 	 By:    /s/ William A.  Coskey                                                     
	  	
 

	
Name:    William A. Coskey                                                         

	  	
 

	
Its Duly authorized    CEOexhibit_10-1.htm

    Exhibit 10.1

     

     

    
      	 

              $90,000,000.00

            	 SECOND
      AMENDED AND RESTATED 

              UNSECURED
      REVOLVING

              DEMAND
      PROMISSORY NOTE

            	
              
 

              April 15, 2010 

            

    

    Section 1.  Promise to
Pay.  For and in
consideration of value received, the undersigned, Contran Corporation, a
corporation duly organized under the laws of the state of Delaware (“Borrower”), promises to pay
to the order of TIMET
Finance Management Company, a corporation duly organized under the laws
of the state of Delaware (“TFMC”), or the holder hereof
(as applicable, TFMC or such holder shall be referred to as the “Noteholder”), the principal
sum of NINETY MILLION and NO/100ths United States Dollars ($90,000,000.00) or
such lesser amount as shall equal the unpaid principal amount of the loan made
by the Noteholder to Borrower together with interest on the unpaid principal
balance from time to time pursuant to the terms of this Second Amended and
Restated Unsecured Revolving Demand Promissory Note, as it may be amended from
time to time (this “Note”).  This Note
shall be unsecured and will bear interest on the terms set forth in Section 7 below.
Capitalized terms not otherwise defined shall have the meanings given to such
terms in Section 18
of this Note.

    

    Section 2.  Amendment and
Restatement  This Note renews and replaces, amends and restates
in its entirety the First Amended and Restated Unsecured Revolving Demand
Promissory Note dated December 11, 2009 in the original principal amount of
$60,000,000.00 payable to the order of the Noteholder and executed by the
Borrower (the “First Amended
Note”).  The First Amended Note replaced, amended and restated
in its entirety the Unsecured Revolving Demand Promissory Note dated November 4,
2009 in the original principal amount of $30,000,000.00 payable to the order of
the Noteholder and executed by the Borrower (the “Original
Note”).  This Note amends and restates in its entirety the
First Amended Note and the Original Note (collectively, the “Prior Notes”); provided that (a) such
amendment and restatement shall operate to renew, amend and modify the rights
and obligations of the parties under each Prior Note, as provided herein, but
shall not extinguish the obligations under each Prior Note, nor effect a
novation thereof,.  As of the close of business on April 14, 2010, the
unpaid principal balance of the First Amended Note was $40,800,000.00 and the
accrued and unpaid interest thereon was $38,917.84, which principal and accrued
and unpaid interest is the principal and accrued and unpaid interest owed,
respectively, under this Note as of the beginning of business on the date of
this Note.

    

    Section 3.  Place of
Payment.  All payments will be made at Noteholder’s address at
Nemours Building, Suite 1410, 1007 Orange Street, Wilmington,
Delaware  19801, Attention:  President, or such other place
as the Noteholder may from time to time appoint in writing.

    

    Section 4.  Payments.  The
unpaid principal balance of this Note and any unpaid and accrued interest
thereon shall be due and payable on the Final Payment Date.  Prior to
the Final Payment Date, any unpaid and accrued interest on an unpaid principal
balance shall be paid in arrears quarterly on the last day of each March, June,
September and December, commencing June 30, 2010.  All payments on
this Note shall be applied first to accrued and unpaid interest, next to accrued
interest not yet payable and then to principal.  If any payment of
principal or interest on this Note shall become due on a day that is not a
Business Day, such payment shall be made on the next succeeding Business Day and
the payment shall be the amount owed on the original payment date.

    

    Section 5.  Prepayments.  This
Note may be prepaid in part or in full at any time without penalty.

    

    Section 6.  Borrowings.  Prior
to the Final Payment Date, Noteholder expressly authorizes Borrower to borrow,
repay and re-borrow principal under this Note in increments of $100,000 on a
daily basis so long as:

    

    
      	
              ·  

            	
              the
      aggregate outstanding principal balance does not exceed
      $90,000,000.00;

            

    

    
      	
              ·  

            	
              no
      written demand for payment has been made by the Noteholder;
      and

            

    

    
      	
              ·  

            	
              no
      Event of Default has occurred and is
continuing.

            

    

    

    Section 7.  Interest.  The
unpaid principal balance of this Note up to and including $15,000,000.00 shall
bear interest at the rate per annum of the Prime Rate less one and one half
percent (1.50%).  The unpaid principal balance of this Note in excess
of $15,000,000.00 shall bear interest at the rate per annum of the Prime
Rate.  In the event that principal or interest is not paid within five
Business Days after such payment was due or declared due, all past due principal
under this Note will bear interest at the rate per annum of the Prime Rate plus
four percent (4.00%).  Accrued interest on the unpaid principal of
this Note shall be computed on the basis of a 365- or 366-day year for actual
days (including the first, but excluding the last day) elapsed, but in no event
shall such computation result in an amount of accrued interest that would exceed
accrued interest on the unpaid principal balance during the same period at the
Maximum Rate. Notwithstanding anything to the contrary, this Note is expressly
limited so that in no contingency or event whatsoever shall the amount paid or
agreed to be paid to the Noteholder exceed the Maximum Rate.  If, from
any circumstances whatsoever, the Noteholder shall ever receive as interest an
amount that would exceed the Maximum Rate, such amount that would be excessive
interest shall be applied to the reduction of the unpaid principal balance and
not to the payment of interest, and if the principal amount of this Note is paid
in full, any remaining excess shall be paid to Borrower, and in such event, the
Noteholder shall not be subject to any penalties provided by any laws for
contracting for, charging, taking, reserving or receiving interest in excess of
the highest lawful rate permissible under applicable law.  All sums
paid or agreed to be paid to Noteholder for the use, forbearance or detention of
the indebtedness of the Borrower to Noteholder shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full
term of such indebtedness until payment in full of the principal (including the
period of any renewal or extension thereof) so that the interest on account of
such indebtedness shall not exceed the Maximum Rate.  If at any time
the Contract Rate is limited to the Maximum Rate, any subsequent reductions in
the Contract Rate shall not reduce the rate of interest on this Note below the
Maximum Rate until the total amount of interest accrued equals the amount of
interest that would have accrued if the Contract Rate had at all times been in
effect.  In the event that, upon demand or acceleration of this Note
or at final payment of this Note, the total amount of interest paid or accrued
on this Note is less than the amount of interest that would have accrued if the
Contract Rate had at all times been in effect with respect thereto, then at such
time, to the extent permitted by law, in addition to the principal and any other
amounts Borrower owes to the Noteholder, the Borrower shall pay to the
Noteholder an amount equal to the difference between:  (i) the lesser
of the amount of interest that would have accrued if the Contract Rate had at
all times been in effect or the amount of interest that would have accrued if
the Maximum Rate had at all times been in effect; and (ii) the amount of
interest actually paid on this Note.

    

    Section 8.  Remedy.  Upon
the occurrence and during the continuation of an Event of Default, the
Noteholder shall have all of the rights and remedies provided in the applicable
Uniform Commercial Code, this Note or any other agreement among Borrower and in
favor of the Noteholder, as well as those rights and remedies provided by any
other applicable law, rule or regulation.  In conjunction with and in
addition to the foregoing rights and remedies of the Noteholder, the Noteholder
may declare all indebtedness due under this Note, although otherwise unmatured,
to be due and payable immediately without notice or demand
whatsoever.  All rights and remedies of the Noteholder are cumulative
and may be exercised singly or concurrently.  The failure to exercise
any right or remedy will not be a waiver of such right or remedy.

    

    Section 9.  Right of
Offset.  The Noteholder shall have the right of offset against
amounts that may be due by the Noteholder now or in the future to Borrower
against amounts due under this Note.

    

    Section 10.  Record of
Outstanding Indebtedness.  The date and amount of each
repayment of principal outstanding under this Note or interest thereon shall be
recorded by Noteholder in its records.  The principal balance
outstanding and all accrued or accruing interest owed under this Note as
recorded by Noteholder in its records shall be the best evidence of the
principal balance outstanding and all accrued or accruing interest owed under
this Note; provided
that the failure of Noteholder to so record or any error in so recording or
computing any such amount owed shall not limit or otherwise affect the
obligations of the Borrower under this Note to repay the principal balance
outstanding and all accrued or accruing interest.

    

    Section 11.  Waiver.  Borrower
and each surety, endorser, guarantor, and other party now or subsequently liable
for payment of this Note, severally waive demand, presentment for payment,
notice of nonpayment, notice of dishonor, protest, notice of protest, notice of
the intention to accelerate, notice of acceleration, diligence in collecting or
bringing suit against any party liable on this Note, and further agree to any
and all extensions, renewals, modifications, partial payments, substitutions of
evidence of indebtedness, and the taking or release of any collateral with or
without notice before or after demand by the Noteholder for payment under this
Note.

    

    Section 12.  Costs and
Attorneys’ Fees.  In the event the Noteholder incurs costs in
collecting on this Note, this Note is placed in the hands of any attorney for
collection, suit is filed on this Note or if proceedings are had in bankruptcy,
receivership, reorganization, or other legal or judicial proceedings for the
collection of this Note, Borrower and any guarantor jointly and severally agree
to pay on demand to the Noteholder all expenses and costs of collection,
including, but not limited to, reasonable attorneys’ fees incurred in connection
with any such collection, suit, or proceeding, in addition to the principal and
interest then due.

    

    Section 13.  Time of
Essence.  Time is of the essence with respect to all of
Borrower’s obligations and agreements under this Note.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Section 14.  Jurisdiction and
Venue.  THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
DELAWARE, AND BORROWER CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN THE
STATE OF DELAWARE.

    

    Section 15.  Notice.  Any
notice or demand required by this Note shall be deemed to have been given and
received on the earlier of (i) when the notice or demand
is actually received by the recipient or (ii) 72 hours after the notice
is deposited in the United States mail, certified or registered, with postage
prepaid, and addressed to the recipient.  The address for giving
notice or demand under this Note (i) to the Noteholder shall be
the place of payment specified in Section 3 or such other
place as the Noteholder may specify in writing to the Borrower and (ii) to Borrower shall be the
address below the Borrower’s signature or such other place as the Borrower may
specify in writing to the Noteholder.

    

    Section 16.  Successors and
Assigns.  All of the covenants, obligations, promises and
agreements contained in this Note made by Borrower shall be binding upon its
successors and permitted assigns, as applicable.  Notwithstanding the
foregoing, Borrower shall not assign this Note or its performance under this
Note without the prior written consent of the Noteholder.

    

    Section 17.  Periodic
Reporting.  Borrower agrees to provide to the Noteholder the
following:

    

    (a)           within
sixty (60) days after the end of each of Borrower’s first three fiscal quarters
each year, the consolidated balance sheets of Borrower and its consolidated
subsidiaries as of the end of such quarter, and the related consolidated
statements of income and cash flows for the year-to-date interim period then
ended, prepared in accordance with accounting principles generally accepted in
the United States of America; and

    

    (b)           within
one hundred twenty (120) days following the end of each fiscal year of Borrower,
a copy of the annual audit report for such year for Borrower and its
consolidated subsidiaries, including therein consolidated balance sheets of
Borrower and its consolidated subsidiaries as of the end of such fiscal year and
the related consolidated statements of income and cash flows for the year then
ended, accompanied by a report and opinion of PricewaterhouseCoopers LLP, or
another independent certified public accountant of recognized standing
acceptable to the Noteholder in its reasonable discretion, which report and
opinion shall be prepared in accordance with accounting principles generally
accepted in the United States of America and shall not be subject to any “going
concern” or like qualification or exception, or any exception or qualification
as to scope of audit.

    

    Section 18.  Definitions.  For
purposes of this Note, the following terms shall have the following
meanings:

    

    (a)           “Business
Day” shall mean any day banks are open in the state of
Delaware.

    

    (b)           “Contract
Rate” means the amount of any interest (including fees, charges or
expenses or any other amounts that, under applicable law, are deemed interest)
contracted for, charged or received by or for the account of
Noteholder.

    

    (c)           “Final
Payment
Date” shall mean the earlier of:

    

    
      	
              ·  

            	
              written
      demand by the Noteholder for payment of all or part of the principal and
      interest accrued and unpaid
thereon;

            

    

    
      	
              ·  

            	
              December
      31, 2010; or

            

    

    
      	
              ·  

            	
              acceleration
      as provided herein.

            

    

    

    (d)           “Event of
Default” wherever used herein, means any one of the following
events:

    

    (i)           the
Borrower fails to pay any amount due on this Note and/or any fees or sums due
under or in connection with this Note after any such payment otherwise becomes
due and payable and three Business Days after demand for such
payment;

    

    (ii)           the
Borrower otherwise fails to perform or observe any other provision contained in
this Note and such breach or failure to perform shall continue for a period of
thirty days after notice thereof shall have been given to the Borrower by the
Noteholder;

    

    (iii)           a
case shall be commenced against Borrower, or Borrower shall file a petition
commencing a case, under any provision of the Federal Bankruptcy Code of 1978,
as amended, or shall seek relief under any provision of any other bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, dissolution or
liquidation law of any jurisdiction, whether now or hereafter in effect, or
shall consent to the filing of any petition against it under such law, or
Borrower shall make an assignment for the benefit of its creditors, or shall
admit in writing its inability to pay its debts generally as they become due, or
shall consent to the appointment of a receiver, trustee or liquidator of
Borrower or all or any part of its property; or

    

    (iv)           an
event occurs that, with notice or lapse of time, or both, would become any of
the foregoing Events of Default.

    

    (e)           “Maximum
Rate” shall mean the highest lawful rate permissible under applicable law
for the use, forbearance or detention of money.

    

    (f)           “Prime
Rate” shall mean the fluctuating interest rate per annum in effect from
time to time equal to the base rate on corporate loans as reported as the Prime
Rate in the Money Rates column of The Wall Street Journal or
other reliable source.

    

    
      	
               
      

            	
              BORROWER:

            

    

    

    
      	
               
      

            	
              Contran
      Corporation

            

    

    

    

    
      	
               
      

            	
              By:

            	/s/ John. A. St.
    Wrba 	 

    

    John
A. St. Wrba, Vice President and

    Treasurer

    

    Address:

    

    5430 LBJ
Freeway, Suite 1700

    Dallas,
Texas   75240-2697

    

    

    As of the
date hereof, TIMET
Finance Management Company, as the Noteholder, hereby agrees that this
Note renews and replaces, amends and restates in its entirety the First Amended
Note and the Original Note (but shall not extinguish the obligations under each
Prior Note, nor effect a novation thereof) and that the unpaid principal and
accrued interest on the First Amended Note as of the close of business on April
14, 2010 is the principal and accrued interest owed under this Note as of the
beginning of business on the date of this Note.

    

    
      	
               
      

            	
              TIMET
      Finance Management Company

            

    

    

    

    
      	
               
      

            	
              By:

            	/s/ Joan L. Yori	 

    

    Joan
L. Yori, President

    
      
        
        

      

      
        2

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