Document:

exv10w32

Exhibit 10.32

FIRST AMENDMENT TO LEASE

     THIS
FIRST AMENDMENT TO LEASE (this “Amendment”) is entered into on this 17 day of January,
2008, by and between Turtle Creek Limon, LP
(“Landlord”), and Study Island LLC (“Tenant”).

     WHEREAS,
Landlord and Tenant entered into that certain Office Lease dated January 12, 2007
covering certain premises (the “Lease”) comprising 9,525 rentable square feet, known as Suite
200, (commonly known as the “The Premises”) in the office building (the “Building”) known as
3400 Carlisle, located at 3400 Carlisle, Dallas, Dallas County, Texas, such Original Premises
being more particularly described in the Lease; and

     WHEREAS, Tenant and Landlord desire to expand the Premises to include Suite 500 which
contains 5,059 rentable square feet; all on certain terms and conditions and pursuant to this
Amendment to Lease; whereas Tenant and Landlord desire to expand the square footage of the
Premises.

     NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and for
other good and valuable consideration, Landlord and Tenant hereby amend the Lease as follows:

1.
Premises. Effective March 1, 2008 (“Expansion
Effective Date”) the square
footage of the Premises shall be amended to include (as shown in
Exhibit “A”) the 5,059
rentable square feet contained in Suite 500 (“Expansion Premises”). The new square
footage of the Premises shall be 14,584 rentable square feet.

2. Base
Rental. Upon the Expansion Effective Date, the new amended Base Rental
for the Premises during the remaining lease term shall be as follows:

	 	 	 	 	 
	March 1, 2008 - March 31, 2008
	 	$15,279.68 per month
	April 1, 2008 - May 31, 2008
	 	$24,343.72 per month
	June 1,
2008 - May 31, 2009
	 	$25,059.01 per month
	June 1,
2009 - May 31, 2010
	 	$25,225.69 per month
	June 1,
2010 - May 31, 2011
	 	$25,603.17 per month
	June 1,
2011 - May 31, 2012
	 	$26,972.84 per month

3.
Improvements. The Landlord shall provide and install new carpet throughout the
Expansion Premises. In addition, Landlord shall paint all previously
painted surfaces.
Furthermore, the Landlord shall remove the walls as shown on Exhibit A attached. All
materials and methods of installation or application shall be building standard as
determined by Landlord.

4. One
Time Right of First Refusal. Tenant shall have a One Time Right of First Refusal
on Suite 240 and 210 in the Building (the “First Refusal Space”), beginning June 30, 2008

 

 

which will be subject to any rights of other tenants in the Building currently existing on the
date hereof, as follows:

     A) If Landlord desires to lease any part of the First Refusal Space to a particular
lessee other than Tenant and provided Tenant is not in default under the Lease beyond any
applicable notice and cure periods at such time, then Landlord shall deliver written notice to
Tenant of the terms and provisions of the proposed offer to be made by Landlord to such
prospective lessee. Tenant shall thereafter the one time option, exercisable by written notice
delivered to Landlord within three (3) business days after receipt by Tenant of such notice
from Landlord, to lease such space on the same terms and conditions set forth in such offer.
Terms and conditions mean gross rent, lease term, and concessions to be made by Landlord
to the prospective lessee. Failure by Tenant to notify Landlord of Tenant’s election to lease
such space within three (3) business days after receipt of such notice from Landlord, shall be
deemed an election by Tenant not to exercise such option, thereafter, Landlord shall be free
to lease such space to any prospective lessee’s and Tenant shall no longer have a Right of
First Refusal on any space in the Building. If Tenant elects to lease such space, then Tenant
shall exercise an amendment of the Lease within five (5) days after exercising the option
incorporating such space into the Premises. Tenant shall treat any information received by it
under this Section as confidential, and will not disclose the identity of any prospective
lessee
to any broker, agent or other party without Landlord’s prior written consent in each instance.

     B) The rights granted by this Section shall not be severable from the Lease, nor
may such rights be assigned or otherwise conveyed by Tenant to a sublessee of the Premises
or assignee of Tenant’s interest in the Lease, except in the event of an assignment of this
Lease to a successor to Tenant by merger, consolidation or reorganization.

     C) Notwithstanding the foregoing, Tenant shall not have a right to exercise the
right of first refusal granted by this Section during the last three (3) years of the Term
unless
Tenant has a remaining option to extend the Term under the Lease and Tenant exercises such
option simultaneously with or before Tenant exercises the Right of First Refusal.

5. Tenant Signage. Provided Tenant is not in default under the Lease and continues
to occupy at least 14,584 rentable square feet. Tenant shall have the right to one position
on the exterior building monument sign. Landlord shall choose the size and location of
Tenant’s position on the proposed monument sign. Costs associated with Tenant’s
signage shall be borne by Tenant. If Tenant fails to utilize their assigned position on the
monument sign within twelve (12) months of the date offered by Landlord, Tenant shall
lose its right to such signage position.

6. Parking. Section 12 of the Fundamental Lease Provisions is amended to
provide that, beginning on the Expansion Commencement Date, Landlord shall provide
an additional Fifteen (15) non-reserved spaces in the parking garage. Such spaces shall be
free for the first twelve (12) months of the term of this Amendment.

Terms and Conditions. All other terms and conditions shall be per the Lease Agreement.

 

 

EXCEPT AS HEREBY AMENDED, the Lease and all other provisions thereof remain unchanged and are
hereby confirmed and ratified.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on and effective as of
the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	TENANT:	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Study Island, L.L.C.	 	 	 	Turtle Creek Limon, lp, a texas limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ James B. Walburg	 	 	 	By:	 	3400 Carlisle Interests, LLC, a Delaware
	Name:

	 	 

James B. Walburg
	 	 
	 	limited liability company, its General Partner	 	 
	Title:

	 	SUP & CFO
	 	 	 	
By:
	 	
/s/ Frank Mackey, Mgr	 	 
	 

	 	 	 	 	 	Name:
	 	 

Frank Mackey
	 	 
	 

	 	 	 	 	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Amanda Ragsdale	 	 	 	 	 	 	 	 
	Name:

	 	 

Amanda Ragsdale
	 	 	 	 	 	 	 	 
	Title:

	 	Staff Accountant	 	 	 	 	 	 	 	 

 

 

Exhibit Aexv10w33

Exhibit 10.33

SECOND AMENDMENT TO OFFICE BUILDING LEASE

     THIS SECOND AMENDMENT TO OFFICE BUILDING LEASE (this “Amendment”) is executed as of September
30, 2008 (the “Effective Date”), by Turtle Creek Limon, LP, a Texas limited partnership
(“Landlord”), and Study Island, LLC, d/b/a Study Island Texas, LLC, a Delaware limited liability
company (“Tenant”).

BACKGROUND

     A. Landlord and Tenant entered into an Office Building Lease executed as of January 12, 2007
(the “Original Lease”) for certain office space known as “Suite 200”, consisting of approximately
9,525 square feet of Rentable Area in the building at 3400 Carlisle (the “Building”), as more
particularly described in the Original Lease.

     B. On January 17, 2008, Landlord and Tenant entered into the First Amendment to Lease (the
“First Amendment”) amending the Original Lease to expand the Premises to include “Suite 500”, which
contains approximately an additional 5,059 square feet (the “Original Expansion Premises”) and to
provide for the terms and conditions of leasing the additional square footage. The Original Lease,
as amended by the First Amendment, is hereby referred to as the “Lease”. Under the Lease, Tenant is
currently leasing approximately 14,584 square feet of Rentable Area on the 2nd floor and
5th floor of the Building.

     C. Landlord and Tenant desire to amend the Lease to expand the Premises to include “Suite
440”, which contains approximately 3,924 square feet and to provide for the terms and conditions of
leasing the additional square footage.

     D. Landlord and Tenant have agreed to modify the Lease as set forth in this Amendment.

OPERATIVE PROVISIONS

     NOW, THEREFORE, for Ten Dollars ($10.00) and other valuable consideration including the
mutual covenants set forth herein, the receipt and sufficiency of which consideration are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

     1. Defined Terms. All initial capitalized terms in this Amendment not defined in this
Amendment shall have the meanings assigned to such terms in the Lease.

     2. Premises. Effective on November 1, 2008 (the “Expansion Commencement Date”), the
Premises shall consist of 18,508 square feet of Rentable Area in the Building (the “Premises”).
The additional 3,924 square feet that is being added to the Premises pursuant to this Amendment is
cross-hatched on Exhibit A and shall be referred to as the “Second Expansion Premises”.
Tenant hereby accepts the Second Expansion Premises “as is” and acknowledges that Landlord shall
have no obligation to make any improvements, modifications or additions to the Second Expansion
Premises, except as provided in paragraph 3 below. Tenant acknowledges that neither Landlord nor
any agent of Landlord has made any representation or warranty with respect to the Second Expansion
Premises or with respect to the suitability or fitness for the conduct of Tenant’s business or for
any other purpose.

     3. Construction Allowance. Landlord and Tenant acknowledge that the Base Annual Rent
(as set forth in paragraph 4 below) has been computed based on Landlord’s allowance of $15.00 per
square foot of Rentable Area in the Second Expansion Premises (the “Allowance”) toward the cost of
the leasehold improvements to the Second Expansion Premises, as more specifically described on
Rider 1
attached hereto.

 

 

     4. Base Annual Rent. The Base Annual Rent, commencing on the
Expansion
Commencement Date and continuing on the first day of each and every month thereafter for the next
succeeding months during the balance of the Term, is hereby amended to be the following:

	 	 	 
	Date	 	Monthly Installment of Base Annual Rental
	 
	November 1, 2008 — January 31, 2009

	 	$25,059.01 (plus Electrical Costs)
	February 1,
2009 — May 31, 2009

	 	$32,907.01 (plus Electrical Costs)
	June
1, 2009 — May31, 2010

	 	$33,073.69 (plus Electrical Costs)
	June 1,
2010 — May 31, 2011

	 	$33,614.67 (plus Electrical Costs)
	June 1,
2011 — May 31, 2012

	 	$35,147.84 (plus Electrical Costs)

     If the Term commences on a date other than the first day of a calendar month or ends on a
date other than the last day of a calendar month, monthly rent for such month shall be prorated
based upon the ratio that the number of days in the Term within such month bears to the total
number of days in such month.

     6. Parking. Section 12 of the Fundamental Lease Provisions of the Lease is hereby
deleted and replaced with the following:

     “Total number of unreserved garage spaces: fifty-six (56). There shall be no monthly
charge for fifteen (15) of the fifty-six (56) spaces from June 1, 2007 through May 31,
2008. There shall be no monthly charge for fourteen (14) of the fifty-six (56) spaces
from June 1, 2007 through May 31, 2010. There shall be no charge for fifteen (15) of the
fifty-six (56) spaces from March 1, 2008 through February 28, 2009. There shall be no
charge for twelve (12) of the fifty-six (56) spaces from November 1, 2008 through May 31,
2012. After the no charge period, Landlord shall have the option to charge Tenant for
parking at the then market rate as determined by Landlord.”

     7. Effect of Amendment. The provisions of this Amendment will control over all
inconsistent provisions of the Lease. Tenant has no further rights to any leasehold improvements
or refurbishment allowances specified in the Lease.

     8. Brokers. Landlord and Tenant each represents to the other that it has had no
dealings with any broker or agent in connection with the negotiation of this Amendment except PM
Realty Group as Landlord’s agent, the fees of which shall be paid by Landlord by separate
agreement. Landlord and Tenant each hereby agrees to defend, indemnify and hold harmless the
other from and against any other claims for brokerage, commission, finders or other fees relative
to this Amendment resulting or arising out of any acts or agreements of the indemnifying party.

     9. Ratification of Lease. Except as amended hereby, the terms and provisions of the
Lease shall remain unchanged and shall remain in full force and effect. The Lease as modified by
this Amendment is hereby ratified and confirmed in all respects.

     10. Entire Agreement. This Amendment and the Lease contain all of the agreements of
the parties hereto with respect to the subject matter thereof, and no prior agreement,
understanding or representation pertaining to any such matter shall be effective for any purpose.
The terms and conditions of the Lease and this Amendment may not be amended or otherwise affected
except by instrument in writing executed by each party to be bound thereby.

 

 

     11. Successors and Assigns. The terms and provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns; provided, that this provision shall not be construed to modify any provision of the Lease
limiting Tenant’s right to assign, sublet or otherwise transfer its interest in the Lease or the
Premises.

     12. Paragraph Headings. The paragraph headings in this Amendment are for convenience
only and shall in no way enlarge, limit or alter the meaning of the provisions hereof.

     13. Background. The provisions of the Background section of this Amendment are an
integral part of this Amendment.

     14. Gender and Number. Within this Amendment, words of any gender shall be construed
to include any other gender, and words in the singular number shall be construed to include the
plural and words in the plural number shall be construed to include the singular, as the context
may require.

     15. Severability. A determination that any provision of this Amendment is
unenforceable or invalid shall not affect the enforceability or validity of any other provision
hereof, and any determination that the application of any provision of this Amendment to any person
or circumstance is illegal or unenforceable shall not affect the enforceability or validity of such
provision as it may apply to any other persons or circumstances.

     16. Counterparts. This Amendment may be executed in any number of counterparts with
the same effect as if all parties hereto had signed the same document. All such counterparts shall
be construed together and shall constitute one instrument, but in making proof hereof it shall
only be necessary to produce one such counterpart. The signature pages of various counterparts may
be combined onto one document.

     17. Representations of Tenant and Person Signing for Tenant. Tenant and the person
signing this Amendment on behalf of Tenant represents to Landlord as follows: (a) Tenant is a
limited liability company duly organized and legally existing under the laws of the State of
Delaware; (b) the execution and delivery of, and performance under, this Amendment are within
Tenant’s power and authority without the joinder or consent of any party and have been duly
authorized by all requisite action and are not in contravention of law or the powers of Tenant’s
partnership agreement; (c) the person signing this Amendment on behalf of Tenant was and continues
to be authorized to do so without the joinder of any other person; and (d) this Amendment
constitutes the legal, valid and binding obligations of Tenant enforceable in accordance with its
terms, subject to bankruptcy, insolvency, reorganization and other laws affecting creditor’s
rights generally, and with regard to equitable remedies, to the discretion of the court before
which proceedings to obtain same may be pending.

[Signatures on the following page]

 

 

	 	 	 	 	 	 	 
	LANDLORD: Turtle Creek Limon, LP	 	 
	 
	 	 	 	 	 	 
	By:	 	3400 Carlisle Interests, LLC,	 	 
	 	 	a Delaware limited liability company,	 	 
	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frank Mackey, VP 	 	 
	 

	 	 	 	 

Frank Mackey, Vice President
	 	 
	 	 	Date of Signature: Sept 30, 2008	 	 

	 	 	 	 	 
	TENANT: Study Island, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ James B. Walburg	 	 
	Name:

	 	 

James B. Walburg
	 	 
	Title:

	 	CFO	 	 
	Date of Signature:
9-22-08	 	 

 

EXHIBIT “A”

TO

SECOND AMENDMENT TO OFFICE BUILDING LEASE

 

 

RIDER 1

WORK LETTER

TO

SECOND AMENDMENT TO OFFICE BUILDING LEASE

BETWEEN

TURTLE CREEK LIMON, LP

AND

STUDY ISLAND, LLC, D/B/A STUDY ISLAND TEXAS, LLC

     This Rider sets forth the respective obligations of, and the procedures to be followed by,
Landlord and Tenant in the design and construction of those improvements that will prepare the
Second Expansion Premises described in Exhibit A of this Amendment for Tenant’s use and occupancy.

1. The Work.

     The “Work” will consist of leasehold improvements described in the floor plan and
specifications attached to this Amendment as Rider 2 (“Final Plan”).

     A. From the Final Plan, Landlord will cause Landlord’s architects and/or engineers, to
prepare any required engineering and architectural drawings and specifications (all such
engineering and architectural drawings and specifications are referred to collectively as the
“Preliminary Working Drawings”), and will submit the same to Tenant for Tenant’s written approval.
Tenant will not unreasonably withhold approval of the Preliminary Working Drawings, and will have
no right to withhold approval if the Preliminary Working Drawings are substantially consistent
with the Final Plan. Failure by Tenant to deliver written objections to Landlord within five (5)
days after receipt of the Preliminary Working Drawings will be deemed to be approval of same. Any
disapproval by Tenant must include specific suggestions for making the same acceptable. If Tenant
disapproves the Preliminary Working Drawings, Landlord will have the Preliminary Working Drawings
revised to incorporate Tenant’s reasonable suggestions and objections, which suggestions and
objections will be binding upon Tenant and may be relied upon by Landlord in revising the Working
Drawings. Preliminary Working Drawings which are approved in the foregoing manner will become
Final Working Drawings.

     B. Landlord will pay all costs and fees incurred in connection with preparation of the Final
Plan and Preliminary and Final Working Drawings needed to implement the Work and construction of
the leasehold improvements as described in the Final Working Drawings up to a cost of $15.00 per
square foot of Rentable Area in the Second Expansion Premises (which cost shall include a
construction management fee of 5% of all construction costs) (“Tenant’s Allowance”). Tenant will
pay all costs and fees incurred in connection with preparation of plans and working drawings or
construction resulting from a change requested by Tenant pursuant to Paragraph 2 of this Rider and
any amount in excess of $15.00 per square foot of Rentable Area in the Second Expansion Premises
incurred by Landlord in connection with the design and construction of the Work (collectively,
“Tenant’s Cost”). Tenant’s Cost hereunder will be deemed additional rent under the Lease.

2. Changes.

     A. If Tenant desires any changes, alterations or additions to the Final Plan or the Final
Working Drawings, Tenant must submit a detailed written request to Landlord (“Change Order”). If

 

reasonable and practicable and generally consistent with the Final Plan or Working Drawings
previously approved, Landlord will comply with the Change Order, but all costs in connection
therewith, including without limitation any additional plans, drawings and engineering reports or
opinions or modifications of such existing items, will be paid for by Tenant. Landlord may at any
time reasonably estimate Tenant’s Cost for a Change Order, in advance, and, Tenant will deposit the
estimated amount with Landlord within ten (10) days after requested by Landlord. If such estimated
amount exceeds the actual amount of Tenant’s Cost, Tenant will receive a refund of the difference,
and if the actual amount exceeds the estimated amount, Tenant will pay the difference to Landlord
within ten (10) days after requested by Landlord. If any additional plans, drawings or
specifications, or modifications of such items, are required to construct a Change Order, the same
will be prepared (at Tenant’s cost by Landlord’s architect) and approved in the manner described
above. Under no circumstances will any Change Orders serve to abate the rentals under the Lease.

3. Substantial Completion.

     A. Landlord will be deemed to have “substantially completed” the Work for the purposes
thereof if Landlord has caused all of the Work to be completed substantially except for so called
“punchlist items,” e.g., minor details of construction or decoration or mechanical adjustments
which do not substantially interfere with Tenant’s occupancy of the Second Expansion Premises to
be made by Tenant. If there is any dispute as to whether Landlord has substantially completed the
Work, the good faith decision of Landlord’s architect will be final and binding on the parties.

     B. If Landlord notifies Tenant in writing that the Work is substantially completed, and
Tenant fails to object thereto in writing within seven (7) days thereafter specifying in
reasonable detail the items of Work needed to be performed in order for substantial completion,
Tenant will be deemed conclusively to have agreed that the Work is substantially completed, for
purposes of commencing rental under the Lease.

     C. Substantial completion will not prejudice Tenant’s rights to require full completion of
any remaining items of Work. However, if Landlord notifies Tenant in writing that the Work is
fully completed, and Tenant fails to object thereto in writing within fifteen (15) days thereafter
specifying in reasonable detail the items of work needed to be completed and the nature of work
needed to complete said items, Tenant will be deemed conclusively to have accepted the Work as
fully completed (or such portions thereof as to which Tenant has not so objected).

4. Construction.

     A. Landlord reserves the right to substitute comparable or better materials and items for
those shown in the attached plans and specification and Working Drawings.

     B. Tenant will be solely responsible for determining whether or not Tenant is a public
accommodation under The Americans with Disabilities Act and Texas Architectural Barriers Act and
whether or not the Final Working Drawings comply with such laws and the regulations thereunder.

5. Liability.

     The parties acknowledge that Landlord is not an architect or engineer, and that the Work will
be designed and performed by independent architects, engineers and contractors. Accordingly,
Landlord does not guarantee or warrant that the plans or Workings Drawings will be free from
errors or omissions, nor that the Work will be free from defects, and Landlord will have no
liability therefor. In the event of such errors, omissions, or defects, Landlord will cooperate in
any action Tenant desires to bring against such parties.

 

6. Incorporation Into Lease: Default.

     THE PARTIES AGREE THAT THE PROVISIONS OF THIS RIDER ARE HEREBY INCORPORATED BY THIS REFERENCE
INTO THE LEASE FULLY AS THOUGH SET FORTH THEREIN. In the event of any express inconsistencies
between the Lease and this Rider, the latter will govern and control. Any default by Tenant
hereunder will constitute a default by Tenant under the Lease and Tenant will be subject to the
remedies and other provisions applicable thereto under the Lease.

 

RIDER 2

FINAL PLAN

TO

SECOND AMENDMENT TO OFFICE BUILDING LEASE

BETWEEN

TURTLE CREEK LIMON, LP

AND

STUDY ISLAND, LLC, D/B/A STUDY ISLAND TEXAS, LLC

TO BE ATTACHED UPON COMPLETION

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