Document:

ex10_16ii.htm

    EXHIBIT
10.16(ii)

     

    FIRST
LEASE AMENDMENT

    

    THIS
FIRST LEASE AMENDMENT (the "Amendment") is executed this 19th day of
September, 2001, by and between DUKE REALTY LIMITED PARTNERSHIP, an Indiana
limited partnership ("Landlord"), and INTERACTIVE INTELLIGENCE, INC., an Indiana
corporation ("Tenant").

    

    W I T N E S S E T H :

    

    WHEREAS,
Landlord (formerly known as Duke-Weeks Realty Limited Partnership) and Tenant
entered into a certain lease dated April 1, 2001 (the "Lease"),
whereby Tenant agreed to lease from Landlord approximately 180,000 rentable
square feet of space in a building to be constructed (the "Original Premises")
located at Woodland Corporate Park, Indianapolis, Indiana; and

    

    WHEREAS,
Landlord and Tenant desire to reduce the Original Premises to approximately
120,000 rentable square feet (the "Leased Premises"); and

    

    WHEREAS,
Landlord and Tenant desire to amend certain provisions of the Lease to reflect
such reduction in square footage and any other changes to the
Lease;

    

    NOW,
THEREFORE, in consideration of the foregoing premises, the mutual covenants
herein contained and each act performed hereunder by the parties, Landlord and
Tenant hereby enter into this Amendment.

    

    1.           Incorporation of
Recitals.  The above recitals are hereby incorporated into this
Amendment as if fully set forth herein.

    

    2.           Amendment of Article
1.  Lease of
Premises.  Section 1.01 of Article 1 is hereby amended as
follows:

    

    
      	
               
      

            	
              A.

            	
              *Leased
      Premises (shown outlined in red on Amended Exhibit
      A attached hereto):  Building
      Address:  Woodland Corporate Park ("Building"), located on the
      land identified on Amended Exhibit
      A-1 (the "Land");

            

    

    

    
      	
               
      

            	
              B.

            	
              **Rentable
      Area:  approximately 120,000 rentable square feet; paragraph 2
      of this subsection B remains
unchanged;

            

    

    

    D.           **Minimum
Annual Rent:

    
      	
              Years
      1-5

            	
              $2,010,000.00
      per year

            
	
              Years
      6-10

            	
              $2,286,000.00
      per year

            
	
              Years
      11-15

            	
              $2,706,000.00
      per year;

            

    

    

    E.           **Monthly
Rental Installments:

    
      	
              Months
      1-60

            	
              $167,500.00
      per month

            
	
              Months
      61-120

            	
              $190,500.00
      per month

            
	
              Months
      121-180

            	
              $225,500.00
      per month;

            

    

    

    The
parties commit that they will work diligently to complete and approve (i) the
rendering; (ii) the site layout; and (iii) the Building floor plan on or before
November 15, 2001 so as to enable Landlord to place orders for steel, pre-cast
and long lead construction materials. Provided however, that if items (i), (ii)
and (iii) are not finalized and approved on or before April 1, 2002 (for any
reason other than Landlord’s delay) the Minimum Annual Rent and Monthly Rental
Installments shall be:

    

    
      	
              Years
      1-5

            	
              $2,047,200.00
      per year

            
	
              Years
      6-10

            	
              $2,323,200.00
      ,per year

            
	
              Years
      11-15

            	
              $2,743,200.00
      per year;

            

    

    

    
      	
              Months
      1-60

            	
              $170,600.00
      per month

            
	
              Months
      61-120

            	
              $193,600.00
      per month

            
	
              Months
      121-180

            	
              $228,600.00
      per month;

            

    

     

    G.           Target
Commencement Date:  April 1, 2003

    Target Occupancy Date:  March
1, 2003;

    

    I.           Broker:  Duke
Realty Limited Partnership representing Landlord;

    

    K.           Working
Drawings Approval Date:  (See Amended Exhibit B);

    

    L.           Addresses
for payments and notices:

    

    Landlord:                                Duke
Realty Limited Partnership

    Attn:  Property
Management

    600 East
96th
Street, Suite 100

    Indianapolis,
Indiana 46240

    

    With
Payments
to:               Duke
Realty Limited Partnership

    P.O. Box
66259

    Indianapolis,
Indiana  46266

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Tenant
Prior to

    Commencement
Date:          Interactive
Intelligence, Inc

    Attn:  John
R. Gibbs

    8909
Purdue, Suite 300

    Indianapolis,
Indiana 46268

    

    After
Commencement

    Date:                                           Interactive
Intelligence, Inc.

    *(To be completed when address is
established for the Building)

    **(To be
adjusted by Landlord to reflect actual square footage after construction of the
Building and the Leased Premises is completed.)

     ____________________________

    

    3.           Amendment of Section
2.02.A.  Shell
Work.  Section 2.02.A. of the Lease is hereby amended by
deleting Preliminary
Exhibit B-1, Exhibit B-1 and Exhibit B-1A and
substituting Amended
Preliminary Exhibit B-1, Amended Exhibit B-1,
and Amended Exhibit
B-1A, respectively, in lieu thereof.

    

    4.           Amendment of Section
2.02.B.  Tenant Finish
Improvements.  Section 2.02.B. of the Lease is hereby
amended by deleting Exhibit B-2 and
substituting Amended
Exhibit B-2 in lieu thereof.

    

    5.           Amendment of Section
2.02.C.  Project Design Schedule and
Permits.  Section 2.02.C. of the Lease is hereby amended
by deleting "Exhibit
B-3" and substituting "Amended Exhibit B-3"
in lieu thereof.

    

    6.           Amendment of
Section 2.02.D.  Substantial
Completion.  Section 2.02.D. of the Lease is hereby
amended by deleting the phrase "Exhibit B-1, B-1A and B-2" and
substituting the phrase "Amended Exhibit B-1, B-1A
and B-2" in lieu thereof.  Section 2.02.D. of the Lease is
hereby further amended by deleting the phrase "July 1, 2002" and
substituting the phrase "May 1, 2003" in lieu thereof and deleting the
phrase "November 1, 2002" and substituting the phrase
"September 1, 2003" in lieu thereof.

    

    7.           Amendment of Section
2.02.F.  Fixturing.  Section
2.02.F. of the Lease is hereby amended by deleting the first sentence and
substituting the following in lieu thereof:

    

    Tenant
shall have the right and privilege of going into the second (2nd) and
third (3rd) floors
of the Leased Premises commencing sixty (60) days prior to the Occupancy Date,
subject to Tenant Caused Delays or any other events beyond Landlord's control,
and the first (1st) floor
commencing thirty (30) days prior to the Occupancy Date and continuing through
the Occupancy Date to complete interior decoration work and to otherwise prepare
the Leased Premises for its occupancy, provided, however, that its schedule in
so doing shall be communicated to and coordinated with Landlord so as not to
unreasonably interfere with or delay other work of Landlord in the Leased
Premises.

    

    8.           Amendment of Section
2.02.G.  Tenant Caused
Delays.  Section 2.02 of the Lease is hereby amended by
deleting the phrase "Exhibit B-3" and
substituting the phrase "Amended Exhibit B-3"
in lieu thereof.

    

    9.           Amendment of Section
2.02.H.  Compliance.  Section 2.02.H.
of the Lease is hereby amended by deleting the phrase "Exhibit B-1" and
substituting the phrase "Amended Exhibit B-1",
in lieu thereof.

    

    10.           Amendment of Section
3.02.D.  Real Estate
Taxes.  Section 3.02.D. of the Lease is hereby amended by
deleting the second paragraph in its entirety and substituting the following in
lieu thereof:

    

    Tenant
hereby warrants and represents to Landlord that Tenant has received real estate
tax abatements for the Building acceptable to Tenant and waives any right it
might have or claim to terminate the Lease based on its obtaining such real
estate tax abatement.  Tenant understands and agrees that it is
responsible for any and all Real Estate Taxes accruing during the Lease Term
with regard to the Building and the Land and agrees to indemnify and hold
harmless Landlord from and against any and all losses, claims or damages
resulting from Tenant's failure to comply with its obligations under this
Section or under any agreement between Landlord and Tenant and the City of
Indianapolis, Indiana with respect to real estate tax abatement for the Building
and Land, except to the extent of such losses, claims or damages directly
resulting from Landlord's failure to comply with its obligations under this
Section or under any agreement between Landlord and Tenant and the City of
Indianapolis, Indiana with respect to real estate tax
abatement.  Landlord hereby agrees that the full amount which is
abated is for the benefit of Tenant. To permit Tenant to take the actions
necessary to maintain property tax abatement deductions on the Building,
Landlord shall (i) upon reasonable notice from Tenant, execute such tax
abatement applications, forms, resolutions, agreements, and other materials,
provided the same shall be in a form reasonably acceptable to Landlord;
(ii) upon reasonable notice from Tenant, provide Tenant with information in
its possession with respect to the Building necessary to prepare such
applications, forms, resolutions, agreements and other materials;
(iii) upon reasonable notice from Tenant, either appear or authorize Tenant
to appear on behalf of Landlord at any public hearing related to maintaining
real estate tax abatement on the Building; and (iv) shall forward to Tenant
promptly upon receipt any notice of assessment or change in assessment relating
to the Building.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    11.           Amendment of Section
6.01.  Services To Be
Provided.  Section 6.01 (g) is hereby amended by deleting
the phrase "Exhibit
B" and substituting the phrase "Amended Exhibit B-2"
in lieu thereof.

    

    12. Amendment of Section
16.11(A).  Signage.  Section
16.11 (A) is hereby amended by deleting the phrase "Exhibit B-4" and
substituting the phrase "Amended Exhibit B-4"
in lieu thereof.

    

    13.           Amendment of Section
16.13.  Parking.  Section
16.13 of the Lease is hereby amended by deleting the phrase "Exhibit B-1" and
substituting the phrase "Amended Exhibit B-1"
in lieu thereof.

    

    14.          Amendment of Section
16.14.  Relocation and Discretionary
Allowances.  Section 16.14(b) is hereby deleted in its
entirety and the following is substituted in lieu thereof:

    

    (b)           a
discretionary allowance in the amount of Five Hundred Six Thousand Seven Hundred
Dollars ($506,700.00).  A portion of the discretionary allowance in
the amount of Two Hundred Sixty Thousand Dollars ($260,000.00) shall be paid to
Tenant or at Tenant’s direction, upon execution of this Amendment and the
balance thereof in the amount of Two Hundred Forty six Thousand Seven Hundred
Dollars ($246,700.00) shall be payable upon the later to occur of (i) payment by
Tenant of the first Monthly Rental Installment, or (ii) the Commencement
Date.

    

    15.           Amendment of Section
16.16.  Phase I Building Expansion
Option.  Section 16.16 of the Lease is hereby amended by
(i) deleting the phrase "Exhibit A" and
substituting the phrase "Amended Exhibit A" in
lieu thereof and (ii) by deleting the phrase "not less than 110,000 rentable
square feet and not more that 250,000 rentable square feet" and substituting the
phrase "approximately 160,000 rentable square
feet".  Section 16.16 of the Lease is hereby further amended by
deleting the phrase "June 30, 2003" and substituting the phrase
"March 31, 2004" in lieu thereof.

    

    16.           Amendment of Section
16.17.  Phase II Building Expansion
Option.  Section 16.17 of the Lease is hereby amended by
deleting the phrase "Exhibit A" and
substituting the phrase "Amended Exhibit A" in
lieu thereof.  Section 16.17 is further amended by deleting all
reference therein to any option granted to Tenant to choose to build Phase II
Building Expansion Option as two (2) buildings and shall provide that Tenant’s
Phase II Building shall be one (1) building containing approximately 90,000
rentable square feet.  Section 16.17 of the Lease is hereby
further amended by (i) deleting the phrase "May 31, 2005" and substituting the
phrase "March 31, 2006" in lieu thereof; and (ii) deleting the phrase "May 31,
2003" and substituting the phrase "March 31, 2004" in lieu thereof.

    

    17.           Amendment of Section
16.18.  Phase III Building Expansion
Option. Section 16.18 of the Lease is hereby amended by (i) deleting
the phrase "Exhibit
A" and substituting the phrase "Amended Exhibit A" in
lieu thereof and by deleting the phrase "not less than 110,000 rentable square
feet and not more that 250,000 rentable square feet" and substituting the phrase
"approximately 180,000 rentable square feet".  The last paragraph of
Section 16.18 of the Lease is hereby amended by deleting the phrase "May
31, 2003" and substituting the phrase "March 31, 2004" in lieu thereof
and deleting the phrase "May 31, 2005" and substituting the phrase "March 31,
2006" in lieu thereof.

    

    18.           Amendment of Section
16.20.  Right of First Offer for the
ViFi Expansion Space.  Section 16.20 of the Lease is
hereby amended by deleting the phrase "Exhibit A" and
substituting the phrase "Amended Exhibit A" in
lieu thereof.

    

    19.           Amendment of Section
16.21.  Name Change of
Park.  Section 16.21 of the Lease is hereby amended by deleting
the first sentence and substituting the following in lieu thereof:

    

    Upon
Tenant's execution of a new lease or an amendment of this Lease with Landlord to
exercise its Phase I Building Expansion Option as set forth in Section
16.16 hereof, and for so long as Interactive Intelligence, Inc. remains the
Tenant hereunder and is and remains open and operating in all or substantially
all of the Leased Premises under the tradename "Interactive Intelligence",
Landlord shall change the name of Woodland Corporate Park to "Interactive
Park".

    

    20.           Tenant's Representations and
Warranties.  The undersigned represents and warrants to
Landlord that (i) Tenant is duly organized, validly existing and in good
standing in accordance with the laws of the state under which it was organized;
(ii) all action necessary to authorize the execution of this Amendment has been
taken by Tenant; and (iii) the individual executing and delivering this
Amendment on behalf of Tenant has been authorized to do so, and such execution
and delivery shall bind Tenant.  Tenant, at Landlord's request, shall
provide Landlord with evidence of such authority.

    

    21.           Examination of
Amendment.  Submission of this instrument for examination or
signature to Tenant does not constitute a reservation or option, and it is not
effective until execution by and delivery to both Landlord and
Tenant.

    

    22.           Definitions.  Except
as otherwise provided herein, the capitalized terms used in this Amendment shall
have the definitions set forth in the Lease.

    

    23.           Incorporation.  This
Amendment shall be incorporated into and made a part of the Lease, and all
provisions of the Lease not expressly modified or amended hereby shall remain in
full force and effect.

    

    
      
        
          *(To be
completed when address is established for the Building)

          
            	
                     
      

                  	
                    **(To
      be adjusted by Landlord to reflect actual square footage after
      construction of the Building and the Leased Premises is completed)
      

                  

          

          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed on the
day and year first written above.

    

    LANDLORD:

    

    DUKE
REALTY LIMITED PARTNERSHIP,

    an
Indiana limited partnership

    

    By:  Duke
Realty Corporation,

    its
general partner

    

    

    By: /s/ William E. Linville,
III

    William
E. Linville, III

    Regional
Executive Vice President

     

    

    TENANT:

    

    INTERACTIVE
INTELLIGENCE, INC.,

    an
Indiana corporation

    

    

    By: /s/ John R.
Gibbs                                                                

    

    Printed:  John R.
Gibbs                                                                           

    

    Title: Executive Vice
President                                                                           

    

    

    STATE OF
Indiana                                                      )

    )
SS:

    COUNTY OF
Marion                                                      )

    

    Before
me, a Notary Public in and for said County and State, personally appeared John R. Gibbs, by me
known and by me known to be the Executive Vice
President of Interactive Intelligence, Inc., an Indiana corporation, who
acknowledged the execution of the foregoing "First Lease Amendment" on behalf of
said corporation.

    

    WITNESS
my hand and Notarial Seal this 18th  of September,
2001.

    

    

    /s/ Traci L.
Shaw                                                                

    Notary
Public

    

    Traci L.
Shaw                                                                

    (Printed
Signature)

    

    

    My
Commission Expires:  March 14,
2007

    

    My County
of Residence:  Marionex10_21.htm

    Exhibit
10.21

    INTERACTIVE
INTELLIGENCE, INC.

    

    INCENTIVE
STOCK OPTION AGREEMENT

    UNDER
1999 STOCK OPTION AND INCENTIVE PLAN

    

    

    THIS
AGREEMENT is made and entered into as of the [Day] of [Month], [Year] by and
between Interactive Intelligence, Inc., an Indiana corporation (the "Company"),
and [Name] ("Participant") pursuant to the terms, conditions, and limitations
contained in the Interactive Intelligence, Inc. 1999 Stock Option and Incentive
Plan (the "Plan"), a copy of which has been provided to the Participant and is
incorporated herein by reference;

     

    WITNESSETH:

     

    WHEREAS,
the Board of Directors has determined that the Participant is eligible for the
grant of options under the Plan; and

     

    WHEREAS,
the Board of Directors of the Company has determined that it is in the best
interests of the Company for the Company to grant to the Participant an option
to purchase Common Shares of the Company pursuant to the terms, conditions and
limitations of the Plan and this Agreement; and

     

    WHEREAS,
the Participant desires to have the option to purchase Common Shares of the
Company pursuant to the terms, conditions and limitations of the Plan and this
Agreement; and

     

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

     

    1. GRANT
OF OPTION. The Company hereby grants to Participant, effective as of [Insert
Effective Date of Grant] ("Option Date"), the right, privilege and option to
purchase [Type Total Number of Shares (numeric number)] shares of Common Stock
of the Company at the purchase price of [Typed Price per Share] Dollars
[($_______)] per share (the "Option"), in the manner and subject to the terms
and conditions provided in this Agreement and the Plan. The parties acknowledge
that the Option is intended to qualify as an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code.

     

    2.
VESTING OF OPTION. The Option granted herein shall become exercisable for (a)
twenty-five percent (25%) of the Option Shares on the first (1st) anniversary of
the Option Date, (b) twenty-five percent (25%) of the Option Shares on the
second (2nd) anniversary of the Option Date, (c) twenty-five percent (25%) of
the Option Shares on the third (3rd) anniversary of the Option Date, and (d)
twenty-five percent (25%) of the Option Shares on the fourth (4th) anniversary
of the Option Date.

     

    3. TIME
AND EXERCISE OF OPTION. Subject to Sections 5, 6 and 7 below, at such time as
the Option becomes exercisable pursuant to Sections 2 and 10, the Option may be
exercised in whole or in part, from time to time, prior to the tenth (10th)
anniversary of the Option Date.

     

    4. METHOD
OF EXERCISE. The Option shall be exercised by written notice directed to the
Company in substantially the form attached hereto as Exhibit "A", accompanied by
a check or other consideration contemplated by the Plan in full payment of the
Exercise Price for the specified number of shares purchased. The Company shall
make prompt delivery of the certificate or certificates for such shares,
provided that if any law or regulation requires the Company to take any action
with respect to the shares specified in such notice before the issuance thereof,
then the date of delivery of such shares shall be extended for the period
necessary to take such action. Neither Participant nor any person claiming under
or through him shall have any rights as a shareholder of the Company with
respect to any of the Option Shares until full payment of the Exercise Price and
delivery to him of certificates for such shares as provided herein.

     

    5.
TERMINATION FOR CAUSE. If the Participant incurs a Termination of Continuous
Service for Cause, all rights under any Options granted to the Participant shall
terminate immediately upon the Participant's Termination of Continuous Service,
and the Participant shall (if the Committee in its sole discretion exercises its
rights under Section 8(b) of the Plan within ten (10) days of such Termination
of Continuous Service) repay to the Company within ten (10) days of the
Committee's demand therefor the amount of any gain realized by the Participant
upon any exercise within the 90-day period prior to the Termination of
Continuous Service of any Options granted to such Participant under the
Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.
TERMINATION DUE TO RETIREMENT OR WITHOUT CAUSE OR VOLUNTARY TERMINATION. If the
Continuous Service of a Participant is terminated by reason of Retirement,
terminated by the Company without Cause, or by Voluntary Termination, the
Participant may exercise outstanding Options to the extent that the Participant
was entitled to exercise the Options at the date of Termination of Continuous
Service, but only within the period of one (1) month immediately succeeding the
Participant's Termination of Continuous Service, and in no event after the
applicable expiration dates of the Options. Any Option that is unvested or not
exercisable on the date of Termination of Continuous Service shall terminate and
be forfeited effective on such date.

     

    7. DEATH
OR DISABILITY OF PARTICIPANT. In the event of the Participant's death or
disability, the Participant or the Participant's beneficiary, as the case may
be, may exercise outstanding Options to the extent that the Participant was
entitled to exercise the Options at the date of Termination of Continuous
Service, but only within the one (1) year period immediately succeeding the
Participant's Termination of Continuous Service in the case of disability, and
in no event after the applicable expiration date of the Options. Any Option that
is unvested or not exercisable on the date of Termination of Continuous Service
shall terminate and be forfeited effective on such date.

     

    8.
NON-TRANSFERABILITY OF OPTION. The Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised during the life-time of
Participant only by Participant.

     

    9.
ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR REORGANIZATION. The number of
shares and price per share are subject to adjustment as provided in the
Plan.

     

    10.
CHANGE IN CONTROL. The Option shall not become fully vested and exercisable in
the event of a Change in Control. Notwithstanding a Change in Control, the
provisions of Section 2 of this Agreement shall continue to govern the vesting
and exercisability of the Option.

     

    11.
CONDITIONS UPON ISSUANCE OF SHARES. (a) Shares shall not be issued pursuant to
the exercise of an Option unless the exercise of such Option and the issuance
and delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the Shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

     

    (b) As a
condition to the exercise of an Option, the Company may require Participant to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of
law.

     

    12. RIGHT
TO TERMINATE RELATIONSHIP. Nothing contained in this Agreement shall restrict
the right of the Company to terminate the relationship of Participant at any
time.

     

    13.
BINDING EFFECT. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective heirs, executors, administrators,
successors and assigns.

     

    14.
GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the laws of the state of Indiana.

     

    15. TERMS
OF PLAN CONTROL. All parties acknowledge that the Option is granted under and
pursuant to the Plan, which shall govern all rights, interests, obligations and
undertakings of both the Company and the Participant. All capitalized terms used
herein and not otherwise defined shall have the meanings assigned to such terms
in the Plan.

     

    IN
WITNESS WHEREOF, the parties hereby have caused this Incentive Stock Option
Agreement to be executed as of the day and year first written.

     

     

    
      	
              INTERACTIVE
      INTELLIGENCE, INC.

              or
      "COMPANY"

            	
              "PARTICIPANT"

            
	
               

              By:                                                       

              Printed:                                                                    

              Title:                                                       

            	
               

                

              Printed:

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