Indenture of LeaseIndenture Agreement |
|
|
|
You are currently viewing: This Indenture Agreement involves
ACF INDUSTRIES, INCORPORATED | American Real Estate Partners. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Indenture Agreement by:
Exhibit 10.13
This Indenture of Lease, dated as of March 1, 2001
Witnesseth: that ST. CHARLES PROPERTIES, a Missouri Partnership, having its principal place
of bussiness at 26 Baxter Lane, Chesterfield, MO 63017 (the Landlord), hereby leases unto ACF
INDUSTRIES, INCORPORATED
A New Jersey corporation having its principal place of business at 110 Clark Street, St. Charles,
MO, 63301
(the Tenant), and the Tenant accepts from Landlord, the premises described as 128,626 square feet,
Building 91 & 91A outlined on the floor plan(s) and attached hereto as Exhibit A (the Premises)
located at Clark and Second Streets, St. Charles, MO (the Building) (said Building, together with
the land on which it is located and all other improvements thereon being called the Property), for
the term, the rent, and subject to the conditions and covenants hereinafter provided. Parking
identified on Exhibit A shall be for exclusive use by the Tenant.
The term of this lease shall commence on March 1, 2001 and shall end on February 28, 2006 unless
sooner terminated as provided herein, to be occupied and used by the Tenant for manufacturing and
office. Landlord hereby grants to Tenant the right, privilege and option to extend the term for
two (2) successive periods of five (5) years each under the same terms and conditions except that
monthly rent shall be adjusted for one-half (50%) of the increase in the consumer price index
(CPI) from the base period beginning 4/1/01 and ending 12/31/05 for the first option and if the
second option is exercised, one-half (50%) of the increase in the CPI from the base period beginning
1/1/06 and ending 12/31/10 for the second option period. Tenant shall exercise each option by
giving Landlord six months prior written notice of its intent to exercise the option. The maximum
rent increase for the first renewal period shall not exceed $.25 per square foot per year and the
maximum rent increase for the second renewal period shall not exceed $.25 per square foot
per year.
In consideration thereof, the parties covenant and agree as follows:
1. RENT
(a) The Tenant shall pay to the Landlord as Base Rent, in legal tender, at the Landlords
office at 26 Baxter Lane, Chesterfield, MO 63017
or as directed from time to time by Landlords notice, the monthly amounts as outlined in Exhibit
D in advance promptly on the first day of every calendar month of the term, except for the first
months rent which is due and payable on execution, and pro rata, in advance, for any partial month,
without demand, the same being hereby waived and without any set-off on deduction whatsoever. Interest at
the per annum rate of 10% will be charged retroactive to the first day of the month for rents not paid by the tenth (10th) of the calendar
month. Landlord shall notify tenant in writing of late payments. Notwithstanding the foregoing no
late payment penalty shall be payable by Tenant until Tenant has received two late payment notices
within a twelve
1
calendar month, period. Following receipt of the second late payment notice, late payment
penalties shall be payable by Tenant for all late payments made in the twelve month period
following the second notice. If no late payments are made in such period, the requirement for two
notices shall again apply.
(b) It is understood that the Base Rent specified in Exhibit D does not anticipate any
increase in the amount of taxes on the Property. There fore, in order that the rental payable
throughout the term of the lease shall reflect any such increase the parties agree as hereinafter
in the Section set forth. The annual Base Rent payable pursuant to Exhibit D as increased
pursuant to Paragraphs (b) and (c) of this Section is hereinafter called the Rent. Certain
terms are defined as follows:
Tenants Share: For each calendar year commencing with the calendar year following the Base
Year, the amount of the Tenants pro rata share of the increase in Taxes for the business complex
over the Base Year. The Tenants Share is agreed to be 27% of such increase for increases in Taxes
covering Building 91 and Building 91A. Tenant has the right to contest property taxes should the
Landlord not contest such taxes and Tenant shall be given copies of all tax bills.
Base Year: The Base Year for Taxes as to each separate tax, shall be the fiscal tax year
ending 2001. For purposes of computing tax escalation Base Year and the comparison year for
Taxes will be the fiscal tax year separately determined for each separate tax comprising
Taxes.
Taxes: (i) All real estate taxes, payable (adjusted after protest or litigation, if any) for
any part of the term of this lease, exclusive or discounts, on the Property, (ii) any taxes which
shall be levied in lieu of any such taxes or which shall be levied on the gross rentals of the
Property computed, in each instance, as if the Building were the sole asset of Landlord, (iii) any
special assessments against the property which shall be required to be paid during the calendar
year in respect to which taxes are being determined, and (iv) without duplication, the expense of
contesting the amount or validity of any such taxes, charges or assessments, such expense to be
applicable to the period of the item contested and to be apportioned, to the extent appropriate,
the Landlord reserves the right to re-compute the additional rent due hereunder in the event of a
reduction of Taxes for the Base Year and the Tenant agrees to pay such additional rent when billed.
(c) In order to provide for current payments on account of an increase in the Taxes over the
Base Year the Tenant agrees, at Landlords request, to pay, as additional rent, Tenants Share due
for the ensuing twelve (12) months, as reasonably estimated by Landlord from time to time, in
twelve (12) monthly installments, each in an amount equal to 1/12th of Tenants Share
so estimate by Landlord commencing on the first day of the month following the month in which
Landlord notifies Tenant of the amount of such estimated Tenants Share. If, as finally
determined, Tenants Share shall be greater than or be less than the aggregate of all installments
so paid on account to the Landlord for such twelve (12) month period, then Tenant shall pay to
Landlord the amount of such underpayment, or the Landlord shall credit Tenant for the amount of
such overpayment, as the case may be. It is the intention hereunder to estimate the Amount of
2
Taxes for each year and then to adjust such estimate in the following year based on actual
Taxes incurred and/or paid by Landlord. The obligation of the Landlord and Tenant with respect to
the payment of Rent shall survive the expiration or termination of this lease. Any payment,
refund, or credit made pursuant to this Paragraph (c) shall be made without prejudice to any right
of the Tenant to dispute, or of the Landlord to correct, any item(s) as billed pursuant to the
provisions hereof.
(d) Upon receipt of the Landlords statement, Tenant does hereby covenant and agree promptly
to pay the increases in Rent pursuant to Paragraphs (b) and (c) of this Section as and when the
same shall become due and payable, without further demand therefor, and without any set-off or
deduction whatsoever. Failure to give such statement shall not constitute a waiver by Landlord of
its right to require an increase in Rent nor shall such failure deprive Tenant of a decrease in
Rent, as the case may be.
(e) Within ninety (90) days after receipt of such statement, Tenant or its authorized employee
shall have the right to inspect the books of Landlord during the business hours of Landlord at
Landlords office in the Building or, at Landlords option, at such other location that Landlord
may specify, for the purpose of verifying information in such statement. Unless Tenant asserts
specific error(s) within one hundred-eighty (180) days after delivery of such statement, the
statement shall be deemed to be correct.
(f) No decrease in Taxes shall reduce Tenants Rent below the annual Base Rent sot
forth in Exhibit D.
(g) Tenant will cause the Premises to be insured against toss or damage by fire and such other
hazards, risks and matters covered under so called all-risk insurance for the full amount
of the replacement cost of the improvements on the Premises (exclusive of foundations). Beginning
with calendar year 2002, all policies of insurance shall be issued by insurers reasonably
acceptable to Tenant and shall be for limits and upon terms in each instance reasonably acceptable
to Tenant.
(h) All costs and expenses which Tenant assumes or agrees to pay to Landlord pursuant to this
lease shall be deemed additional rent and, in the event of non-payment thereof, Landlord shall
have all the rights and remedies herein provided for in case of non-payment of Rent.
2. SERVICES
The Tenant shall provide, at Tenants expense, except as otherwise provided, the Following
services:
3
Services set forth in Exhibit B attached hereto and made a part hereof.
It is understood that Tenant does not warrant that any of the services referred to above, or
any other services which Tenant may supply, will be free from interruption, Landlord acknowledging
that any one or more such services may be suspended by reason of accident or of repairs,
alterations or improvements necessary to be made, or by strikes or lockouts, or by reason of
operation of law, or causes beyond the reasonable control of Tenant. Any such interruption or
discontinuance of service shall never be deemed a default, or render Tenant liable to Landlord for
damages, or relieve Landlord from performance of Landlords obligation under this lease.
3. QUIET ENJOYMENT
So long as the Tenant shall observe and perform the covenants and agreements binding on it
hereunder, the Tenant shall at all times during the term herein granted, peacefully and quietly
have and enjoy possession of the Premises without any encumbrance or hindrance.
4. CERTAIN
RIGHTS RESERVED TO THE LANDLORD
The Landlord reserves the following rights:
The Landlord reserves the following rights:
(a) To name the Building and to change the name or street address of the Building
(b) To install and maintain a sign or signs on the exterior or interior of the Building.
(c) During the last thirty (30) days of the term, if during or prior to that time the Tenant vacates
the Premises, to decorate, remodel, repair, alter or other wise prepare the Premises for re-occupancy,
without affecting Tenants obligation to pay rental for the Premises.
(d) To constantly have pass keys to the Premises.
(e) On reasonable prior notice to the Tenant, to exhibit the Premises to prospective tenants
during the last six (6) months of the term, and to any prospective purchaser, mortgagee, or
assignee of any mortgage on the Property and to others having a legitimate interest at any time
during the term.
(f) At any time in the event of any emergency, and otherwise at reasonable times to take any
and all measures, including inspections, repairs, alterations, additions and improvements to the
Premises or to the Building, as may be necessary or desirable for the safety, protection or
preservation of the Premises or the Building or the Landlords interests, or as may be necessary
to be desirable in the operation or improvement of the Building or in order to comply with all
laws, orders and requirements of governmental or other authority.
4
5. ESTOPPEL CERTIFICATE BY TENANT
The Tenant agrees that from time to time upon not less than ten (10) days prior request by the
Landlord, the Tenant will deliver to the Landlord a statement in writing certifying (1) that this
lease is unmodified and in full force and effect (or if there have been modifications that the same
is in full force and effect as modified and identifying the modifications), (b) the dates to which
the Rent and other charges have been paid, and (c) that, so far as the person making the
certificate knows, the Landlord is not in default under any provision of this lease, and, if the
Landlord is in default, specifying each such default of which the person making the certificate may
have knowledge, it being understood that any such statement so delivered may be relied upon by any
landlord under any ground or underlying lease, or any prospective purchase, mortgagee, or any
assignee of any mortgage on the Property. The Landlord will give the Tenant an estoppel within ten
(10) days after request by Tenant.
6. WAIVER OF CERTAIN CLAIMS
The Tenant, to the extent permitted by law and to the extent covered by insurance required to
be maintained by Tenant herein, waives all claims it may have against the Landlord, and against the
Landlords agents and employees for damage to person or property sustained by the Tenant or by any
occupant of the Premises, or by any other person, resulting from any part of the Property or any
equipment or appurtenances becoming out of repair because of a breach of Tenants obligations under
this Lease, or resulting from any accident in or about the Property or resulting directly or
indirectly from any act or neglect of any tenant or occupant of any part of the Properly or of any
other person, unless such damage is a result of the negligence or contributory negligence of
Landlord, or Landlords agents or employees. If any damage results from any act or neglect of the
Tenant, the Landlord may, at the Landlords option, repair such damage and the Tenant shall
thereupon pay to the Landlord the total cost of such repair. All personal property belonging to
the Tenant or any occupant of the Premises that is in or on any part of the Properly shall be there
at the risk of the Tenant or of such other person only, and the Landlord, its agents and employees
shall not be liable for any damage thereto or for the theft or misappropriation thereof unless such
damage, theft or misappropriation is a result of the negligence or contributory negligence of
Landlord or Landlords agents or employees. The Tenant agrees to hold the Landlord harmless and
indemnified against claims and liability for injuries to all persons and for damage to or loss of
property occurring in or about the Property, due to any act of negligence or default under the
lease by the Tenant, its contractors, agents or employees.
Landlord shall defend, indemnify and hold harmless Tenant Entities from and against any
and all Claims arising from or in connection with:
(a) the conduct or management of the Property or of any business therein, or any work or
thing whatsoever done, or any condition created (other than by Tenant) in or about the Property
prior to the Commencement Date;
(b) any act, omission or negligence of Landlord or its agents or employees; or
5
(c) any accident, injury or damage whatever occurring in, at or upon the Property as a
result of Landlords failure to perform its obligations under this Lease;
except to the extent that any of the foregoing arise from the intentional and/or negligent acts or
omissions of Tenant.
To the extent that the Tenant carries hazard insurance on any of its property
in the Premises and to the extent that the Landlord carries hazard insurance of the Property, each policy
of insurance shall contain, if obtainable from the insurer selected by the Tenant or the Landlord,
as the case may be, without additional expense, a provision waiving subrogation against the other
party to this lease. If such provision can be obtained only at additional expense, the obligation
to obtain such provision shall continue if the other party, on notice shall pay the amount of such
additional expense. Each of the parties hereto hereby releases the other to the extent of the
limits of the insurance so carried with respect to any liability which the other may have for any damage
by fire or other casualty with respect to which the party against whom such release is claimed
shall be insured under a policy or policies of insurance containing such provision waiving
subrogation. All hazard insurance affecting the Premises and/or any property therein carried by
either Landlord or Tenant shall, name the Landlord, the Tenant, and the holder of any
first mortgage affecting the Premises as named insureds and as loss payees, as their respective
interests may appear.
7. LIABILITY INSURANCE
Tenant shall, at its expense, maintain during the term, comprehensive public
liability insurance, contractual liability insurance and property damage insurance under policies
issued by insurers of recognized responsibility, with limits of not less than $3,000,000.00 for
personal injury, bodily injury, death, or for damage or injury to or destruction of property
(including the loss of use thereof) for any one occurrence. Tenants policies shall name Landlord,
its agents, servants and employees as additional insureds. At the option of the Landlord, copies
of all policies of insurance shall be furnished to Landlord.
8. HOLDING OVER
If the Tenant retains possession of the Premises or any part thereof after the termination of
the term, the Tenant shall be a month to month Tenant and shall pay the Landlord Rent at
115% of the monthly rate specified in Section 1 for the time the Tenant thus remains in possession
and, in addition thereto, shall pay the Landlord for all actual damages sustained by reason of
the Tenants retention of possession. The provisions of this Section do not exclude the Landlords
rights of re-entry or any other right hereunder.
9. ASSIGNMENT AND SUBLETTING
6
(a) The Tenant shall not, without the Landlords prior written consent, which consent shall
not be unreasonably withheld or delayed, (a) assign, convey, mortgage, pledge, encumber or
otherwise transfer (whether voluntarily or otherwise) this lease or any interest under it; (b)
allow any transfer thereof or any lien upon the Tenants interest by operation of law; (c) sublet
the Premises or any part thereof, or (d) permit the use or occupancy of the Premises or any part
thereof by any one other than the Tenant. Notwithstanding the foregoing provisions of this Article
9, the Premises may be occupied, from time to time, without Landlords consent, by any affiliates,
of Tenant, and/or any entity which may be merged or consolidated with Tenant, or into which Tenant
may be merged or consolidated. Tenant may assign this lease without Landlords consent upon a sale
of substantially all of Tenants assets or stock. If Tenant is converted to a public company then
transfers of stock will not be covered by the prohibition against assignment and do not require
consent. As used herein, affiliate means:
Affiliate any person or entity which directly or indirectly controls, or is under common
control with, or is controlled by, a person or entity and, if such person is an individual, any
member of the immediate family (including parents, spouse and descendants) of such individual and
any trust whose principal beneficiary is such individual or one or more members of the immediate
family of such individual and any person who is controlled by any such member or trust. As used in
this definition control (including, with its correlative meanings controlled by and under
common control with) shall mean possession, directly or indirectly, of power to direct or cause
the direction of management or policies (whether through ownership of Voting securities or other
ownership interests, by contract or otherwise), provided that, in any event, any person or entity
which owns directly or indirectly 10% or more of the voting securities or 10% or more of the other
ownership interests of any other person or entity will be deemed to control such person or entity.
(b) If with the consent of the Landlord (if required), this lease be assigned or if the
Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may,
after default by Tenant, collect rent from the assignee, subtenant or occupant, and apply the net
amount collected to the Rent and Additional Rent herein reserved, but no such assignment,
subletting, occupancy or collection shall be deemed a waiver of any of Tenants covenants
contained in this lease or the acceptance of the assignee, subtenant or occupant as Tenant, or a
release of Tenant from further performance by Tenant of covenants on the part of Tenant herein
contained.
10. CONDITION OF PREMISES
Tenants taking possession of the Premises shall be conclusive evidence as against the Tenant
that the premises were in good order and satisfactory condition when the Tenant took possession,
except as to latent defects. No promise of the Landlord to alter, remodel, repair or improve the
Premises or the Building and no representation respecting the condition of the Premises or the
Building have been made by Landlord to Tenant, other than as may be contained herein or in a
separate Work Letter Agreement signed by Landlord and Tenant. At the termination of this lease,
the Tenant shall return the Premises broom-clean and in as good
7
condition as when the Tenant took possession, ordinary wear and loss by fire or other
casualty and condemnation excepted, Failing which the Landlord may restore the Premises to such
condition and the Tenant shall pay the cost thereof on demand.
11. USE OF PREMISES
Tenant
shall use the premises for general manufacturing and office purposes, and the Tenant
agrees to comply with the to time following rules and regulations and with such reasonable modifications
thereof and additions thereto as the Landlord may hereafter from time make for the Building. The
Certificate of Occupancy, if any, covering the Building shall permit use of the premises for the purposes
herein demised.
(a) The Tenant will agree not to operate a retail store.
(b) The Tenant will not make or permit to be made any use of the premises or any part thereof
which would violate any of the covenants, agreements, terms, provisions and conditions of this
lease or which directly or indirectly is forbidden by public law, ordinance or governmental
regulation or which may be dangerous to life, limb, or property, or which may invalidate, or
increase the premium cost of any policy of insurance carried on the Building or covering its
operations, unless as to the insurance premiums, the cost of the increase in insurance premiums is
paid by the Tenant, or which will suffer or permit the premises or any part thereof to be used in
any manner or anything to be brought into or kept therein which, in the judgment of Landlord,
reasonably exercised, shall in any way impair or tend to impair the character, reputation or
appearance of the Property as a high quality office/manufacturing building, or which will impair or
interfere with or tend to impair or interfere with any of the services performed by Landlord for
the Property.
(c) Excepting those in place as of the effective date, the Tenant shall not display, inscribe,
print, maintain or affix on any place in or about the Building any additional sign, notice, legend,
direction, figure or advertisement, except on the doors of the Premises and on the Directory Board, and
then only such name(s) and matter, and in such color, size, style, place and materials, as shall first
have been approved by the Landlord, which approval shall unreasonably withheld. The listing of
any name other than that of Tenant, whether on the doors of the Premises, on the Building Directory, or otherwise, shall not operate to vest any right or
interest in this lease or in the Premises or be deemed to be the written consent of Landlord
mentioned in Section 9, it being expressly understood that any such listing is a privilege
extended by Landlord revocable at will by written notice to Tenant, except for a specified minimum number
of listings in the directory to which Tenant will be entitled throughout the term
of this lease as agreed to by Tenant and Landlord. Tenant shall be permitted to install the
signs identified on Exhibit C hereto.
(d) The Tenant shall not advertise the business, profession or activities of the Tenant
conducted in the building in any manner which violates the letter or spirit of any code of
ethier adopted by any recognized association or organization pertaining to such business, profession or
activities and shall not use the name of the Building for any purposes other than that of the
8
business address of the Tenant, and shall never use any picture or likeness of the Building
in any circulars, notices, advertisements or correspondence without the Landlords consent.
(e) The Tenant shall not make any alterations, improvements or additions to the Premises of a
structural nature, without the Landlords advance written consent. In the event Tenant desires to
make any alterations, improvements or additions of a structural nature, Tenant shall
first submit to Landlord plans and specifications therefor and obtain landlords written approval thereof prior to commencing any such work. All alterations, improvements or additions, Whether
temporary or permanent in character, made by Landlord or Tenant in or upon the Premises shall
become Landlords property and shall remain upon the Premises at the termination of this lease
without compensation to Tenant (excepting only Tenants movable office furniture, trade fixtures,
office and professional equipment and all manufacturing equipment and personal property).
As to alterations, 1) Landlords consent shall not be unreasonably withheld or delayed; 2)
decorations shall be excluded and Landlords consent will not be required; 3) to the extent that
Tenant is permitted to make alterations Tenants right to make alterations will be limited to
alterations that do not change the use nor materially affect the character of the Building unless
expressly consented to by Landlord; and 4) Landlord consents to the alterations to be made by
Tenant to the Premises in order to ready the same for Tenants occupancy of the Premises and
agrees that such alterations so made by Tenant in respect to its occupancy of the Premises may be
surrendered by Tenant






