Exhibit 10.18
ASSIGNMENT OF REAL ESTATE LEASE
Sterling Direct,
Inc., a Missouri corporation, One American Eagle Plaza, Earth City,
Missouri 63045 (“Assignor”) for value received, does
hereby assign and transfer to The Reynolds and Reynolds Company, an
Ohio corporation, 115 South Ludlow Street, Dayton, Ohio 45402
(“Assignee”) as of the Closing of the transactions
contemplated by the Acquisition Agreement by and between Assignor
and Assignee dated as of September 16, 1999 (the
“Agreement”), all of Assignor’s right, title and
interest as lessee in the lease dated September 22, 1997,
attached hereto as Exhibit A (the “Lease”)
with Sterling Properties, L.L.C., a Missouri limited liability
company, of real estate situated in the County of St. Louis, State
of Missouri, as more specifically described in the Lease. This
Assignment shall not amend, modify or otherwise affect the rights
and obligations of the parties under the Agreement, including the
parties’ respective rights and obligations under
Section 19 of this Agreement. Assignor represents and warrants
that a true, correct and complete copy of the Lease is attached as
Exhibit A, and that no default by Assignor (or event which
with notice, lapse of time or both would constitute a default by
Assignor) has occurred under the Lease.
STERLING DIRECT, INC., a Missouri
Corporation
By: /s/ David T. Hawkins
Title: Executive Vice
President
ACCEPTANCE OF ASSIGNMENT OF REAL ESTATE
LEASE
Assignee hereby accepts the
foregoing Assignment of Lease as of the date of Closing and assumes
and agrees to perform and be bound by all obligations, liabilities,
covenants, conditions and restrictions to be done, kept or
performed by or imposed upon Assignee, with respect to such
Lease.
THE REYNOLDS AND REYNOLDS
COMPANY, an Ohio corporation
By: /s/ Deepak Sircar
Title: Sr. VP & GM: e CRM
LANDLORD ESTOPPEL CERTIFICATE
September 30,
1999
THE REYNOLDS AND REYNOLDS
COMPANY
115 S. Ludlow Street
Dayton, OH 45402
Attn: General Counsel
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Lease Agreement
by and between Sterling Properties, L.L.C. (“Landlord”)
and Sterling Direct, Inc., dated as of September 22, 1997 (the
“Lease”) Regarding the Property Located at One American
Plaza, Earth City, Missouri
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Ladies and Gentlemen:
Landlord understands and
acknowledges that THE REYNOLDS AND REYNOLDS COMPANY
(“Reynolds”) is in the process of acquiring the
business of STERLING DIRECT, INC. (“Tenant”), the
current Tenant of the above-referenced property. In the even such
acquisition is completed, Tenant intends to assign to Reynolds, and
Reynolds intends to assume from Tenant, all of Tenant’s
rights and obligations under the Lease, a copy of which is attached
hereto. Landlord acknowledges that it is the lessor under the Lease
and that Reynolds is relying upon Landlord’s certifications
made herein, and that Landlord has executed a written consent to
assignment of the Lease by Tenant to Reynolds.
Landlord hereby certifies to
Reynolds that:
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1.
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The
monthly base rental amount due under the Lease is $42,500
1
. The only pending
increases to the rent are as expressly stated in the
Lease.
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2.
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The
copy of the Lease attached hereto represents a complete delineation
of rights and obligations of the Landlord and Tenant. The Lease has
not been modified, supplemented or otherwise altered.
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3.
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The
Lease is in full force and effect, no advance rentals have been
paid, and there are no unsatisfied claims against the
Tenant.
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1 Does not include applicable taxes, insurance and
other charges passed through to Tenant in accordance with the
express terms of the Lease.
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4.
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Tenant is in full compliance with
all payment and performance obligations under the Lease. Without
limiting the foregoing, there is no condition currently existing
that, with the lapse of time, will constitute a default by Tenant
under the Lease.
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5.
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Landlord at no point has served
notice to Tenant of any performance or payment default under the
Lease.
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6.
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Landlord is in full compliance with
all its obligations under the Lease.
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7.
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Tenant took possession of the
demised premises on August 28, 1997 and has paid rent
commencing on October 1, 1997.
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8.
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The
term of the Lease commenced on October 1, 1997 and terminates
on September 30, 2012.
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9.
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The
amount of Tenant’s last rental payment was $42,500 and the
date of Tenant’s last rental payment was September 1,
1999.
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10.
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Landlord is not in default under,
and no event has occurred which with notice, lapse of time or both
would constitute a default under, any of the obligations for which
the Lease Assignment or the Mortgage in favor of Life Investors
Insurance Company of America serves as security.
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The
statements herein contained are made for the purpose of inducing
Reynolds to proceed with its acquisition of Tenant and may be
relied upon for such purpose by Reynolds and its successors and
assigns.
STERLING PROPERTIES, L.L.C.
By: /s/ David T. Hawkins
Print Name: David T. Hawkins
Title: Managing Member
CONSENT TO ASSIGNMENT OF LEASE BY
ASSIGNOR
The
undersigned, Lessor under the Lease, hereby consents to the
foregoing Assignment of Real Estate Lease and Acceptance of
Assignment and Assumption of Real Estate Lease and releases
Assignor from all obligations, liabilities, covenants, conditions
and restrictions imposed on lessee under or pursuant to the Lease
as of the Closing.
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STERLING
PROPERTIES, L.L.C., a Missouri
limited liability company
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By: /s/
David T. Hawkins
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Name: David
T. Hawkins
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Title:
Managing Partner
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CONSENT TO ASSIGNMENT OF LEASE BY
LENDER
The
undersigned, Lender under the mortgage loan to Sterling Properties,
L.L.C., a Missouri limited liability company, hereby consents to
the foregoing Assignment of Real Estate Lease and Acceptance of
Assignment of Real Estate Lease.
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LIFE INVESTORS
INSURANCE COMPANY OF AMERICA
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By: /s/
David R. Halfpap
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Name: David
R. Halfpap
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Title: Vice
President
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SUBORDINATION, NONDISTURBANCE AND ATTORNMENT
AGREEMENT
THIS
SUBORDINATION, NONDISTRUBANCE AND ATTORNMENT AGREEMENT
(“Agreement”) made and entered into as of the 24
th day of September, 1999, by and between Life
Investors Insurance Company of America (“Lender”), and
The Reynolds and Reynolds Company (“Tenant”)
WHEREAS,
Lendor is the owner of and holds a mortgage loan (the
“Loan”) from Sterling Properties, L.L.C. (the
“Landlord”) secured by a mortgage or deed of trust (the
“Mortgage”) on the land described on Exhibit
“A”, together with present or future improvements (the
“Real Property”); and
WHEREAS,
Landlord entered into a lease with Sterling Direct, Inc.
(SDI) as to all of the Real Property dated the 22
nd day of January, 1997 (which lease together with
all amendments, options, extensions, renewals and replacements is
the “Lease”); and SDI has assigned the Lease to Tenant;
and
WHEREAS,
Lender and Tenant have reached certain agreements as to the
subordination of that Lease to the Mortgage, as to Tenant’s
attornment to Lender and as to Lender nondisturbance of Tenant,
and
WHEREAS,
the parties desire to set forth in writing their
agreements.
NOW,
THEREFORE, in consideration of the foregoing and of the mutual
covenants herein contained, which the parties agree and acknowledge
constitute good and adequate consideration, the parties mutually
agree as follows:
1. Subordination . The Lease, all of its terms and
provisions, and all of the Tenant’s rights thereunder and as
to the Real Property shall be and are subordinate to the
Mortgage.
2. Consent to Assignment . The Tenant consents to the
assignment of the Lease to Lendor as security for the
Loan.
3. Notice to Lender in the Event of Landlord Default;
Notice to Tenant in the Event of Landlord Default . If Landlord
defaults under the Lease, and upon notice, fails to cure its
default within the cure period provided under the Lease, Tenant
will notify Lender of the default and afford Lender a reasonable
opportunity to cure the default before terminating the Lease or
exercising any self-help rights from which a right of setoff would
arise. If Landlord defaults under the Mortgage, Lender will provide
to Tenant copies of all related notices, simultaneously with
providing notices to Landlord.
4. New Owner Obligations . If Lender forecloses the
Loan, or acquires title to the Real Property by deed in lieu of
foreclosure, the following terms and conditions will govern the
respective rights and obligations of Tenant and Lender or other new
owner of the Real Property (in either case, the “New
Owner”). Neither the New Owner or anyone claiming by, through
or under the New Owner:
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(a)
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will be bound by an purchase option
contained in the Lease.
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(b)
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will as to matters arising prior to
the date New Owner acquires title to the Real Property, assume an
Landlord’s liabilities to Tenant arising from any:
(i) Landlord default, act or omission; or (ii) Lease
indemnification or hold harmless provisions.
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(c)
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Will be subject to any defenses,
counterclaims or off-sets which Tenant has as of the date New Owner
acquires title to the Real Property.
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(d)
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Will be liable to the Tenant in
excess of the value of New Owner’s interest in the Real
Property.
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(e)
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Will be bound by any modification of
the Lease, including the release from liability of any party liable
for obligations of Tenant, made without New Owner’s written
consent.
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(f)
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Will be bound by any rent paid more
than one month in advance unless actually received by New Owner,
except as expressly required by the Lease, or unless New Owner has
consented to an advance payment in writing.
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(g)
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Will be liable for the return of
security or other lease deposits, unless and then only to the
extent of any security or funds actually received by New
Owner.
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(h)
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Will be responsible for any
consequential damages arising out of a default, act or omission of
landlord under the Lease.
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5. Nondisturbance . The
New Owner will not disturb Tenant’s quiet employment and
possession of its Lease premises for so long as Tenant faithfully
performs all of Tenant’s obligation under the Lease and under
this Agreement. Lender will not join Tenant as a party defendant in
any action or proceeding foreclosing the Mortgage, unless joining
Tenant is necessary or appropriate to foreclose the Mortgage, and
then only for such purposes and not for the purposes of terminating
the Lease.
6. Tenant Obligations as to
Payment of Rental under the Lease . This Agreement will not
vary any terms of the Lease that condition Tenant’s
obligation to pay rent on Landlord’s performance of its
covenants under the Lease in respect of the habitability and quiet
enjoyment of the Real Property, which Lender agrees shall apply to
the New Owner as they have to the Landlord, provided Tenant has
performed all of its obligation under Paragraph 3 of this
Agreement.
7. Attornment . Subject to
the other terms of this Agreement, Tenant will, upon notice of the
transfer of title to the Real Property to New Owner, attorn to the
New Owner and
recognize the New Owner as the
landlord under the Lease from and after the date New Owner acquires
title to the Real Property.
8. Notices . Any notice
under this Agreement may be delivered by hand or sent by commercial
delivery service or United States Postal Service express mail, in
either case for overnight delivery with proof of receipt, or sent
by certified mail, return receipt requested, to the following
addresses:
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The Reynolds
and Reynolds Company
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115 S. Ludlow
Street
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Dayton, OH
45402
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Attn:General
Counsel
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Life Investors
Insurance Company of America
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Director,
Mortgage Loan Servicing-LOAN # 87585
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AEGON USA
Realty Advisors, Inc.
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4333 Edgewood
Road NE
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Cedar Rapids,
Iowa 52499
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Notice shall be deemed to have
been given upon receipt if delivered by hand, on the next business
day if sent for overnight delivery by commercial delivery service
or United States Postal Service express mail, or three
(3) business days following mailing if sent by certified mail,
return receipt requested.
9. No Modification . No
modification of this Agreement shall be valid unless in writing and
executed by the party against whom enforcement is
sought.
10. Applicable Law . This
Agreement shall be construed according to and governed by the laws
of the state in which the Real Property is located.
11. Successor and Assigns
. This Agreement shall be binding on, and shall inure to the
benefit of, the parties’ successors and assigns.
12. Counterparts . This
Agreement may be executed and delivered in counterparts for the
convenience of the parties.
IN WITNESS WHEREOF, the parties
have signed this Subornation, Nondisturbance and Attornment
Agreement as of the year and date first above written.
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Lender :
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The Reynolds
and Reynolds Company
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Life Investors
Insurance Company of America
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By: /s/
David R. Halfpap
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Name: David
R. Halfpap
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Its: Vice
President
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STATE OF
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)SS:
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COUNTY OF
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On this ___day of September,
1999, before me, a Notary Public in and for said county, personally
appeared ___, to me personally known, who being by me duly sworn
did say that that person is the ___of The Reynolds and Reynolds
Company and that said instrument was signed on behalf of the said
corporation by authority of its board of directors and the said
___acknowledged the execution of said instrument to be the
voluntary act and deed of said corporation by it voluntarily
executed.
IN WITNESS WHEREOF, I have
hereunto set my hand and affixed my seal the day and year first
above written.
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Notary Public
in and for said State
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On this 24
th day of September, 1999, before me, a notary
public in and for said county, personally appeared David R.
Halfpap, to me personally known, who being by me duly sworn did say
that that person is the Vice President of said corporation and that
said instrument was signed on behalf of the said corporation by
authority of its board of directors and the said David R. Halfpap
acknowledged the execution of said instrument to be the voluntary
act and deed of said corporation by it voluntarily
executed.
IN WITNESS WHEREOF, I have
hereunto set my hand and affixed my seal the day and year first
above written.
ADDENDUM TO COMMERCIAL LEASE
This
Addendum to Commercial Lease (the “Addendum”) is made
on this 22 nd day of September, 1997, by and between STERLING
PROPERTIES, L.L.C. a Missouri limited liability company (the
“Lessor”) and STERLING Direct, Inc., a Missouri
corporation (the “Lessee”)
WHEREAS,
Lessor and Lessee have entered into that certain Commercial Lease,
of even date herewith, for the property known as One American Eagle
Plaza, Earth City, Missouri 63045 (the “Premises”);
and
WHEREAS,
the Lessor’s lender has requested certain revisions to the
Commercial Lease, which Lessor and Lessee are willing to
incorporate within the terms of said Commercial Lease;
and
NOW,
THEREFORE, Lessor and Lessee have entered into this Addendum in
consideration of the rental obligations and other valuable
considerations made from Lessee to Lessor as follows:
1. NET
LEASE
It
is intended that all rent provided for in the Commercial Lease
shall be an absolute net return to the Lessor, and shall be paid to
the Lessor without setoff, counterclaim, abatement or deduction.
Accordingly, all costs, charges, expenses and obligations relating
to the Premises and building, equipment or improvements on the
Premises, including maintenance, repairs, costs of replacement,
equipment or improvements, insurance, taxes, assessments, and all
other costs, charges, expenses, obligations of any kind, now or at
any time imposed upon or related to, the Premises or building, or
equipment or improvements on the Premises, shall, during the term
of any extension or renewal term thereof, be paid by the
Lessee.
Except
that Lessor shall be responsible for roof maintenance and the
structural integrity of the improvements located on the
Premises.
2.
CONDEMNATION PROCEEDS
In the event of a
complete condemnation by any municipality or authority, Lessor
shall have...... [illegible]........ lease by written notice
......[illegible]........spaces within the Premises; or
(b) the taking or condemnation of direct access to and from
the Premises; or (c) the taking of the improvements of which
the Premises is a part, causing a substantial negative impact on
Lessee’s business conducted on or from the
Premises.
If this Lease is
terminated as set forth herein, then the condemnation award or
payment for the taking shall be paid to and used by Lessor;
provided, however, nothing herein shall prohibit Lessee from
applying for a separate award for Lessee’s loss of personal
property on the Premises, if any.
3.
INSURANCE
At
all times during the Lease Term, Lessee shall maintain in full
force and effect, at Lessee’s own cost and expense, a policy
or policies of liability insurance for the protection,
indemnification and defense of Lessee (with Lessor and
Lessor’s mortgage named as an additional insured) against
claims, demands and causes of action arising out of or in
connection with the use, maintenance, operation and occupancy of
the Premises, which policy or policies shall have limits of not
less than one million dollars per occurrence, including protection
against bodily injury or damages to persons and damage or
destruction of property, placed with insurance companies acceptable
to Lessor. Said insurance shall provide that it shall not be
canceled without at least thirty (30) days prior written
notice to Lessor and Lessor’s mortgagee.
A. COVERAGE PROVISIONS
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(i)
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All
risks open perils special form property insurance must be in force
with limits of 100% replacement cost. If a co-insurance clause is
in effect, an agreed upon amount endorsement is required. Blanket
policies must include limits by property location. The coverage
shall insure the real property and all tangible personal
property;
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(ii)
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Broad form boiler and machinery
coverage, including a form of business income coverage, must be in
force, if any such item is located on or about the
Premises;
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(iii)
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If
available, flood insurance must be in force, if the real property
is located in a special flood hazard area according to the most
current flood insurance rate map issued by the Federal Emergency
Management Agency. This coverage shall include real property and
the tangible personal property;
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(iv)
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A
form of business income coverage must be in force, in the amount of
80% of one year’s business income from the Premises. Blanket
policies must include limits by property location;
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(v)
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Comprehensive general liability
coverage must be in force, with a one million dollar combined
single limit per occurrence with a minimum aggregate limit of two
million dollars. Umbrella/excess liability insurance may be used to
satisfy this requirement.
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B. LESSOR’S LENDER
On all property
policies and coverages (including coverage against loss of business
income) Lessor’s lender must be named as “first
mortgagee” under a standard mortgage clause. On all liability
policies and coverages, Lender must be named as an
“additional insured”. Lender shall be referred to
verbatim as follows: “Life Investors
Insurance Company
of America and its successors, assigns and affiliates; as their
interest may appear; c/o AEGON U.S.A. Realty Advisors, Inc;
Mortgage Loan Department; 4333 Edgewood Road, N.E.; Cedar Rapids,
Iowa 52499-5223.”
The insurance
carrier must be rated A, Class XII, or better by Best’s
Rating Service, without regard to its parent’s or any
reinsurer’s rating.
The maximum
deductible on all coverages and policies is $25,000.00
All policies must
require the insurance carrier to give the first mortgagee a minimum
of thirty (30) days notice in the event of cancellation or
non-renewal. Any vacancy, change of title, tenant occupancy or use,
physical damage, additional improvements or other factors affecting
any insurance contract must be reported to the Lessor immediately.
An original certified copy of each policy is required upon renewal.
If no such copy is available, Lessor will accept a binder for a
period not to exceed ninety (90) days. All binders,
certificates of insurance, and original or certified copies of
policies must name Lessor as a named insured, or as an additional
insured, must include the complete and accurate property address
and must bear the original signature of the issuing insurance
agency.
5. HAZARDOUS MATERIALS
A.
Flammables, Explosives or Toxic Substances . Lessee will not
use or permit in the Premises or the building any flammable or
explosive material, toxic substances, environmentally Hazardous
Materials or other items hazardous to persons or property. Lessee
will not use the Premises in a manner that (a) invalidates or
is in conflict with any fire, insurance, life, safety, or other
codes or policies covering the Building or the Premises, or
(b) increases the rate of any fire or any other insurance
being maintained with respect to the Building or the Premises. If
any insurance premium is higher than it otherwise would be due to
the Lessee’s failure to comply with the provisions herein,
Lessee shall reimburse Lessor, as additional rent, immediately on
demand the amount constituting that part of Lessor’s
insurance premiums that are charged because of Lessee’s said
failure.
B.
Hazardous Materials Defined. The term “Hazardous
Materials” shall, for purposes herein mean: (a) any
“hazardous waste” as defined by the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et
seq. ) (“RCRA”), as amended from time to time, and
regulations promulgated thereunder; (b) any “hazardous
substance” being “released” in “reportable
quantity”, as such terms are defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. §9601 et seq. ) (“CERLA”), as
amended from time to time, and regulations promulgated thereunder;
(c) asbestos; (d) polychlorinated biphenyls;
(e) urea formaldehyde insulation; (f) “hazardous
chemicals” or “extremely hazardous substances”,
in quantities sufficient to require reporting, registration,
notification or special treatment or handling under the Emergency
Planning and Community Right-to-Know Act of 1986 (42 U.S.C.
§11001, et seq. ) (“EPCRA”), as amended
from time to time, and regulations promulgated thereunder;
(g) any “hazardous chemicals” in levels that would
result in exposures greater than those allowed by
permissible
exposure limits established
pursuant to the Occupational Safety and Health Act of 1970 (29
U.S.C. §651 et seq. ) (“OSHA”), as amended
from time to time, and regulations promulgated thereunder;
(h) any substance which requires reporting, registration,
notification, removal, abatement or special treatment, storage,
handling or disposal under Sections 6, 7, or 8 of the Toxic
Substances Control Act (15 U.S.C. §2601 et seq. )
(“TSCA”), as amended from time to time, and regulations
promulgated thereunder; (i) any toxic or hazardous chemicals
described in the Occupational Safety and Health Standards (29
C.F.R. 1910. 10000-1047) in levels which would result in exposures
greater than those allowed by the permissible exposure limits
pursuant to such regulations; (j) the contents of any storage
tanks, whether above or below ground; (k) medical wastes;
(l) materials related to those described in subparagraphs
(a) through (k) thereof; and (m) anything defined as
hazardous or toxic under any now existing or hereafter enacted
Environmental Regulations.
C.
Environmental Regulations Defined . The term
“Environmental Regulations” shall for purposes hereof,
mean any law, statute, regulation, order or rule now or hereafter
promulgated by any governmental authority, whether local, state or
federal, relating to air pollution, water pollution, noise control
or transporting, storing, handling, discharge, disposal, or
recovery of on-site or off-site hazardous substances or materials
(including without limitation, the Hazardous Materials as defined
and described herein) as same may be amended from time to time,
including without limitation, the following: (a) the Clean Air
Act (42 U.S.C. §7401 et seq .); (b) Marine Protection
Research and Sanctuaries Act (33 U.S.C. §1401-1445);
(c) the Clean Water Act (33 U.S.C. §1251 et seq.
); (d) RCRA, as amended by the Hazardous and Solid Wastes
Amendments of 1984 (42 U.S.C. §6901 et seq. );
(e) CERCLA, as amended by the Superfund Amendments and
Reauthorization Act of 1986 (42 U.S.C. §9601, et seq.
); (f) TSCA; (g) the Federal Insecticide, Fungicide and
Rodenticide Act as Amended (7 U.S.C. §136 et seq. )
(h) the Safe Drinking Water Act (42 U.S.C. §300(f) et
seq. ); (i) OSHA; (j) the Hazardous Materials
Transportation Act (49 U.S.C. §4901 et seq. );
(m) EPCRA; and (n) National Environmental Policy Act (42
U.S.C. §4321-4347) and (o) Medical Waste Tracking Act of
1988 (42 U.S.C. §6992).
D.
Compliance: Environmental Compliance. Lessee and
Lessee’s Agents will observe and comply promptly with all
present and future legal requirements of governmental authorities
and insurance requirements (as well as applicable covenants,
encumbrances and other matters of record) relating to or affecting
the Premises, any Lessee sign, or the use and occupancy of the
Premises or incident to Lessee’s occupancy of the Building
and the use of the Building or any portion thereof by Lessee or
Lessee’s Agents. Nothing contained in this Lease is intended
to prevent or prohibit compliance by either party with any of the
Disability Act, and any provision that does so is hereby modified
to allow compliance or deleted as necessary. At Lessee’s sole
expense, Lessee will comply with all requirements of all Disability
Acts with regard to all aspects of Lessee’s Work (defined in
the Work Letter) and with requirements of all Disability Acts with
regard to any other Alterations to the Premises by Lessee,
including but not limited to the design and installation of
improvements to the Premises required as Lessee’s Work.
Lessee shall and hereby agrees to indemnify and hold harmless
Lessor and Lessor’s Agents, and their respective affiliates,
agents, officers, employees and contractors, from and against all
costs, liabilities, and causes of action occurring or arising as a
result of Lessee’s failure to comply with any of the
Disability Acts
or as a result of any violation
of any of the Disability Acts by Lessee or Lessee’s Agents,
and, at Lessor’s option, Lessee will defend Lessor and
Lessor’s Agents, and their respective affiliates, agents,
officers, employees and contractors, against all such costs,
liabilities, and causes of action. Lessee will not use the Premises
nor permit the Premises to be used in violation of any
Environmental Regulations. Lessee assumes sole and full
responsibility for, and will remedy at Lessee’s sole costs,
any and all such violations, provided that Lessor shall not
unreasonably withhold. Lessee will not use, generate, release,
store, treat, dispose of, or otherwise deposit, in, on, under or
about the Premises, any Hazardous Materials, nor will Lessee permit
or allow any third party to do so without Lessor’s prior
written consent (which Lessor may grant or withhold in
Lessor’s sole discretion). Lessor’s election to conduct
inspections of the Premises is not approval of Lessee’s use
of the Premises or any activities conducted thereon, and is not an
assumption by Lessor of any responsibility regarding Lessee’s
use of the Premises or Hazardous Materials. Lessee’s
compliance with the terms of this Section and with all
Environmental Regulations is and shall be and remain at
Lessee’s sole cost. Lessee will pay or reimburse Lessor for
any costs or expenses incurred by Lessor, including reasonable
attorney’s, engineers’, consultants’ and other
experts’ fees and disbursements incurred or payable, to
determine, review, approve, consent to or monitor the requirements
for compliance with Environmental Regulations, including (without
limitation) above and below ground testing. Lessor and
Lessor’s Agents are hereby authorized to enter upon the
Premises for such purposes. Lessee will supply Lessor with
historical and operational information regarding the Premises,
including (without limitation) all reports required to be filed
with governmental agencies, as may be reasonably requested by
Lessor to facilitate site assessment, and Lessee will make
available for meetings with Lessor, or Lessor’s Agents,
appropriate personnel having knowledge of such matters. If Lessee
fails to comply with the provisions of this Section, or if Lessor
receives notice of information asserting the existence of any
Hazardous Materials in or about the Building or the Premises,
Lessor has the right, but not the obligation, without in any way
limiting Lessor’s other rights and remedies, to enter upon
the Premises or to take such other actions Lessor deems necessary
or advisable to clean up, remove, resolve, or minimize the impact
of any Hazardous Materials on or affecting the Premises, and Lessee
shall pay to Lessor on demand, as Additional rent, all reasonable
costs and expenses paid or incurred by Lessor in the exercise of
any such rights. Lessee shall and hereby agrees to indemnify and
hold harmless Lessor and Lessor’s Agents, and their
respective affiliates, agents, officers, employees and contractors,
from and against all costs, liabilities and causes of action
occurring or arising as a result of Lessee’s failure to
comply with any Environmental Regulations or as a result of any
violation of any Environmental Regulations by Lessee or
Lessee’s Agents, and, at Lessor’s option, Lessee will
defend Lessor and Lessor’s Agents, and their respective
affiliates, agents, officers, employees and contractors, against
all such costs, liabilities and causes of action. Lessee will
notify Lessor in writing immediately upon the discovery, receipt of
notice (from a governmental authority or other entity) or
reasonable grounds to suspect, by Lessee, Lessee’s Agents, or
Lessee’s or Lessee’s Agents’ successors or
assigns, the presence in the Premises or the Building of any
Hazardous Materials or conditions that result in a violation of or
could reasonably be expected to violate this Section together with
a full description thereof. Brea ch of this Section shall
constitute a Default by Lessee under this Lease.
E. ACM
Provisions. It is agreed upon that Lessee’s acceptance of
the Premises and of all of the equipment, apparatus, plumbing,
heating, air conditioning, electric, water, waste disposal and
other systems includes Lessee’s acceptance of any possible
latent or patent defects involving the possible presence of
Asbestos Containing Materials or any other hazardous materials
(collectively, “ACM”) therein. It is further agreed
that, in the event ACM is found to be present within the Premises:
(a) Lessee shall immediately give Lessor written notice of
such fact; (b) Lessee shall forthwith cease all activities
(including but not limited to performance of alterations,
renovations or redecoration activities) that disturb ACM,
compromise environmental quality or violate any legal requirement;
(c) Lessor may (if its so elects), upon receipt of such notice
from Lessee, retain control of all procedures employed for ACM
removal work; and (d) Lessor may, at Lessee’s expense to
the extent that any such ACM is as a result of Lessee’s
activities at the Premises, cause the removal of all ACM to be
accomplished in accordance with all laws, regulations and legal
requirements of governmental agencies or authorities having
jurisdiction. If required by Lessor to do so, in order to
accomplish ACM removal, Lessee shall temporarily close the Premises
for business, remove Lessee’s inventory and other contents,
permit entry to accomplish ACM removal and generally cooperate with
Lessor’s and Lessor’s Agents removal efforts; and
Lessee hereby Irrevocably Waives all claims for damage, loss of
business, constructive eviction or otherwise in consequence of any
such occurrence. In the event of any conflict of inconsistency
between this Section and any other provision of this Lease
(including but not limited to any provision regarding repairs,
maintenance, alterations and compliance with laws), the provisions
of this Section shall control.
This Addendum is
effective on the date as first set forth above.
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LESSEE:
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STERLING
PROPERTIES, L.L.C.
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STERLING
DIRECT, INC.
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a Missouri
limited liability Company
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By:
/s/
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Its:
President
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Date:
September 22,
1997
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On this
22 nd
day of September, 1997
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before me
personally appeared
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David T.
Hawkins
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to me known to be the person
described in and who executed the foregoing instrument, and
acknowledged that he executed the same as his free act and
deed.
IN
TESTIMONY
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