Exhibit 10.1
THIS INDUSTRIAL BUILDING LEASE
AGREEMENT (the
“Lease”) is made and entered into as of July 31, 2009
by and between Entorian Technologies Mexico, S. de R.L. de C.V.
(hereinafter referred to as “Landlord”) represented by
Stephanie Lucie, its attorney-in-fact, and Invensys Electronica
Reynosa, S. de R.L. de C.V. (hereinafter referred to as
“Tenant”), represented by its attorney-in-fact Pablo
Manuel López Pérez, in accordance with the
following:
RECITALS
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I.
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Landlord
through its attorney-in-fact hereby represents:
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A.
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That it is a
limited liability company duly incorporated and existing pursuant
to the laws of Mexico, as evidenced in Public Deed No. 15,157
dated August 12, 2002, granted before Mr. Jorge A.
Garcia Corcuera Notary Public No. 140 of Reynosa, Tamaulipas
duly registered at the Public Registry of Commerce of the State of
Tamaulipas under Section Commerce, No. 511, Volume 2-011,
dated August 22, 2002, copy of which has been previously
delivered to Tenant.
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B.
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That it
modified its corporate name from Staktek Mexico, S. de R.L. de
C.V., to Entorian Technologies Mexico, S. de R.L. de C.V., s
evidenced in Public Deed No. 1,486 dated March 12, 2008,
granted before Mr. J. Guillermo Garcia Adame Notary Public
No. 140 of Reynosa, Tamaulipas duly registered at the Public
Registry of Commerce of the State of Tamaulipas under Section
Commerce, No. 135, Volume 2-003, dated March 26, 2008,
copy of which has been previously delivered to Tenant.
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C.
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That it is the
owner of certain parcel of land (the “Land”) and
constructions built thereon (the “Building”), located
at Ave. Industrial Rio San Juan, Manzana 9 Lote 1, as evidenced in
Public Deed No. 1,303 dated January 9, 2008, granted
before Mr. J. Guillermo Garcia Adame Notary Public
No. 140 of Reynosa, Tamaulipas duly registered at the Public
Registry of Property for the State of Tamaulipas under registration
No. 3776, Section First, dated February 13, 2008, copy of
which is attached hereto as Exhibit A .
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D.
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That its
attorney-in-fact has sufficient authority to bind Landlord, by
entering into this Lease, according to the applicable power of
attorney, as evidenced in Public Deed No. 1,501 dated
March 28, 2008, granted before Mr. J. Guillermo Garcia
Adame Notary Public No. 140 of Reynosa, Tamaulipas duly
registered at the Public Registry of Commerce of the State of
Tamaulipas under Section Commerce No. 158, Volume 2-004, dated
April 9, 2008, copy of which has been previously delivered to
Tenant .
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E.
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That it wishes
to enter into this Lease, with Tenant on the terms and conditions
set forth herein.
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II.
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Tenant through
its attorney-in-fact hereby represents:
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A.
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That it is a
limited liability company duly incorporated and existing pursuant
to the laws of Mexico, as evidenced in Public Deed No. 2,865
dated November 11, 1999, granted before Mr. Héctor
Martín Salinas Flores Adjoined to the Notary Public
No. 135 of Reynosa, Tamaulipas duly registered at the Public
Registry of Commerce of the State of Tamaulipas under merchantile
folio No. 539, Volume IX, Book 1°, dated November 23,
1999, copy of which has been previously delivered to
Landlord.
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B.
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That its
attorney-in-fact has sufficient authority to bind it, by entering
into this Lease, according to the applicable power of attorney, as
evidenced in Public Deed No. 2,864 dated November 11,
1999, granted before Mr. Héctor Martín Salinas
Flores Notary Public No. 135 of Reynosa, Tamaulipas duly
registered at the Public Registry of Commerce of the State of
Tamaulipas under merchantile folio No. 539, Volume IX, Book
1°, dated November 23, 1999, copy of which has been
previously delivered to Landlord .
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C.
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That it wishes
to enter into this Lease, with Landlord on the terms and conditions
set forth herein
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IN VIEW OF THE FOREGOING, Landlord and Tenant
hereby agree as follows:
ARTICLE 1.
GRANT OF LEASE; PREMISES
1.1 Grant of Lease.
Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the premises outlined on the floor plan attached hereto
as Exhibit A and hereby made a part hereof, consisting of a
45,272 square foot Building, and the Land (hereinafter jointly
referred to as the “Property” or the
“Premises”), located within the Parque Industrial Del
Norte (“the Park”), in Reynosa, Tamaulipas, Mexico. For
purposes of this Lease, “Rentable Area of the Premises”
shall be deemed to be 45,272 square feet.
ARTICLE 2.
TERM; POSSESSION
2.1. Term. For
purposes of this section, the following terms shall have the
following meanings:
Effective Date
: shall mean the date first above
written which shall render this Lease binding to the parties for
all legal effects.
Beneficial Occupancy
: shall be the term of thirty
(30) days immediately after the Effective Date and prior to
the Commencement Date during which Tenant shall be entitled to
enter the Premises in order to prepare the same for their
use.
Commencement Date
: shall be the date immediately
after the Beneficial Occupancy when the term of sixty
(60) months of duration of this Lease shall start to be
computed and Tenant’s obligation to begin paying Rent (as
defined in section 3.1.) shall commence.
The term of this Lease (hereinafter
referred to as the “Term”) shall be for sixty
(60) months commencing upon the Commencement Date of this
Lease and ending on the last day of the sixtieth
(60th) calendar month thereafter (hereinafter referred to as
the “Expiration Date”), unless sooner terminated as
provided herein.
In consideration of the fact that
the Premises are delivered “as is” and no further
capital investment was required on the part of Landlord, the
parties hereby agree that Tenant shall have the right to early
terminate this Lease after thirty-six (36) months counted from
the Commencement Date through a prior written notice to Landlord
with at least ninety (90) calendar days in advance to the
intended termination date without any liability whatsoever before
Landlord.
2.2. Delivery of
Possession. Unless otherwise provided herein, or under
Exhibit B , delivery of the Premises’ possession shall
occur on the Effective Date of this Lease. Landlord and Tenant
shall execute a Commencement Memorandum ( acta de entrega y
recepción ) to acknowledge the possession date of the
Premises and delivery by Landlord to Tenant, in substantially
similar terms as the form attached hereto as Exhibit B .
Notwithstanding the foregoing, Tenant’s obligation to begin
paying Rent hereunder shall occur as of the Commencement Date and
in accordance to section 3 herein.
ARTICLE 3.
RENT AND OTHER EXPENSES
3.1. Rent. Tenant
shall pay an annual rent (hereinafter referred to as
“Rent”) to Landlord in equal monthly installments
(hereinafter referred to as “Monthly Rent” or
“Base Rent”) as outlined in the attached
Exhibit C , plus the corresponding Value Added Tax that
may be due pursuant to Mexican law. Landlord hereby agrees and
acknowledges that Tenant shall not be obliged to pay the Monthly
Rent for the first two (2) months following the Commencement
Date, without any liability whatsoever before Landlord; thereafter
Tenant shall pay Landlord the remaining fifty-eight
(58) Monthly Rent payments. Monthly Rent shall be paid in
advance within the first five (5) business days of each
calendar month and at the same rate for fractions of a month if the
Term shall begin on any date different from the first day of a
calendar month.
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3.2. Manner of Payment. Monthly
Rent, shall be paid in lawful money of the United States to
Landlord through a wire transfer to Landlord’s account:
Guaranty Federal Bank, 301 Congress Ave., Austin, TX 78701, Acct.
No. 320-1029703 (Entorian Technologies L.P.), Bank Code/ABA
No. 314970664 or to such other account as Landlord duly
notifies Tenant with at least ten (10) working days in advance
to the following date of Monthly Rent payment.
Concurrently with the execution
hereof, and notwithstanding the provisions of section 3.1. to the
contrary, on the Effective Date, Tenant shall pay to Landlord one
Monthly Rent corresponding to the third full calendar month of the
Term. For clarity purposes and derived from the payment established
in this paragraph, Tenant shall be obliged to start paying Monthly
Rent to Landlord on the third month after the Commencement Date.
Tenant shall pay Monthly Rent and any and all other amounts due to
Landlord in U.S. Dollars.
3.3. Good Funds
Payments. If, for any reason whatsoever, any three or more
payments by check from Tenant to Landlord are dishonored and
returned unpaid, Landlord may, upon written notice to Tenant,
require that all future payments be made by cash, certified check,
cashier’s check, or money order (“Good Funds”)
and that the delivery of Tenant’s personal or corporate check
will no longer constitute payment of Rent under this Lease. Any
acceptance by Landlord of a payment for Rent by Tenant’s
personal or corporate check thereafter shall not be construed as a
waiver of Landlord’s right to insist on payment by Good Funds
as set forth herein. If any check tendered to Landlord by Tenant
under this Lease is dishonored for any reason, Tenant shall pay a
fee of fifty dollars ($50.00), plus (at Landlord’s option) a
Late Charge as provided above until good funds are received by
Landlord. Payments received from Tenant shall be applied first to
any Late Charges, second to Rent, and last to other unpaid charges
or reimbursements due to Landlord. Any Late Charge will be in
addition to Landlord’s other remedies for nonpayment of
rent.
3.4. Increase in Rent.
The Monthly Rent shall be fixed and shall remain unchanged until
the end of the first twelve months following the Commencement Date
of this Lease. Thereafter, the Monthly Rent shall be increased
annually, on the anniversary date of the Commencement Date, by a
percentage of 2.5% on top of the previous Monthly Rent.
3.5. Obligation to Pay
Expenses. This is a triple net Lease, where except as
otherwise provided herein, Tenant is expected to pay, in addition
to the Monthly Rent, all taxes, insurance, and maintenance, as well
as other costs and repairs, all in connection with the use of the
Premises.
As a result, in addition to paying
the Base Rent, Tenant shall also pay the amounts determined in
accordance with this Article 3 (hereinafter referred to as
“Other Expenses”), Article 6 (Possession and
Maintenance of Premises), Article 18 (Subrogation and Insurance)
and any other Article herein.
3.5.1 Value Added Tax.
If applicable in order to facilitate billing and the issuance of
legal receipts to Tenant in exchange for payments made hereof,
Tenant shall make payments plus the applicable Value Added
Tax.
3.5.2 Property Tax.
Tenant shall be responsible for the payment of the property taxes
(the impuesto predial ), for the Premises. If such tax is
paid directly by Landlord, then Landlord shall be entitled to
reimbursement for same. In this event, Landlord shall have the
option of reimbursement either in the form of a single annual
payment, due from tenant within fifteen (15) days of demand by
Landlord and receipt of a copy of the tax invoice, or in twelve
monthly installments, to be paid in advance in conjunction with
tenant’s monthly rent payments, the amount of which shall be
equal to one twelfth of the amount of the invoice for said tax for
the most recent tax year. If after the payment of the twelve
installments has commenced, Landlord receives the invoice for said
tax and it is different than the amount used to calculate the
monthly payment, Landlord may notify Tenant in writing, together
with a copy of the tax invoice, and adjust the subsequent
installments to correct the amount due and to correct any
difference in the installments collected to date. Tenant will begin
making the new installment amount with the next monthly rent
payment, pay any “catch up” amount, and continue to
make the new installments thereafter until otherwise notified by
Landlord of a change. Both parties agree that in case there is the
possibility to obtain a discount in the amount to be paid of
impuesto predial for bulk or early payment, Landlord shall
diligently inform Tenant of this possibility so Tenant can elect to
pay in the form and time required to obtain such
discount.
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3.6. Park Association fees. Tenant
shall be responsible for the payment of any Park Association fees
directly to the Park’s Association during the term of the
lease and any extensions.
3.7. Books and Records; Audit
Procedures. Landlord shall maintain books and records
showing Taxes and any expenses that are reimbursable under this
lease in accordance with sound accounting and management practices
and in compliance with all applicable Mexican accounting and
taxation rules and regulations, same that will be available for the
Tenant at reasonable times and with reasonable notice for its
review.
ARTICLE 4.
USE OF PREMISES
Tenant shall use and occupy the
Premises for manufacturing, research and development, testing,
assembly, molding, warehouse and distribution and incidental uses
thereto and for any other legal use or purpose (the
“Permitted Uses”) provided such uses are consistent
with the applicable certificate- ( Certificado de Uso de
Suelo ) that has been provided by Landlord. Tenant is
responsible for obtaining any other applicable certificate to
operate Tenant’s business on the Premises. Tenant covenants
and agrees to use and occupy the Premises in conformity with all
applicable federal, state and municipal statutes, laws, rules,
ordinances, regulations and orders. At all times, it will be
Tenant’s obligation to gain knowledge of any and all
applicable federal, state and municipal statutes, laws, rules,
ordinances, regulations and orders.
Tenant will use the Premises only
for the Permitted Uses. Tenant will not cause or permit the
Premises to be used in any way which constitutes a violation of any
Legal Requirements (as defined below) or the rules and regulations
established by Landlord, a copy of which is attached as Exhibit
D , which can be amended in writing by Landlord with the
previous consent of Tenant (the “Rules and
Regulations”). To the best of Landlord’s knowledge and
without further inquiry, during Landlord’s ownership of the
Premises, Landlord has all the licenses and/or permits granted by
federal, state or municipal authorities that are necessary in
connection with urban development matters, zoning, use of land
environmental impact and construction of the Premises, prior to
Commencement Date. Tenant will promptly take all actions necessary
to comply with all Federal, State or local laws, codes, rules,
regulations, orders, covenants and requirements including its
operations license, that are applicable to and regulate the use by
Tenant of the Premises.
Furthermore, Tenant shall have the
right to use all the spaces in the parking lot area as shown on
Exhibit A attached hereto and incorporated
herein.
ARTICLE 5.
UTILITIES
5.1. Utilities. Tenant
shall timely when due pay in full for all water, gas, heat, light,
power, telephone and other utilities and service supplied to the
Premises, together with any taxes thereon including hook-up,
transmission, transformation and any other fees and expenses in
connection therewith. With respect to electrical service, and
subject to provisions in Article 11, Tenant shall make no
alterations or additions to the electric equipment or appliances
without the prior written consent of Landlord in each instance,
which written consent shall not be unreasonably withheld. Tenant
covenants and agrees that at all times its use of electric current
shall never exceed the capacity of the feeders to the Building or
the risers or wiring installed thereon. Should Tenant fail to pay
for all water, gas, heat, light, power, telephone and other
utilities and service supplied to the Premises, together with any
taxes thereon and as a result such failures prevents Landlord
and/or a new tenant from contracting any of the abovementioned
public utilities at the same Premises subject matter of this Lease,
then Landlord shall have the right, but not the obligation, to pay
for those past due amounts to bring the utilities up to date and
Tenant shall reimburse immediately to Landlord any amounts paid for
such concepts.
Tenant shall be allowed to hook up,
at its own cost, to all available utilities for its Permitted Uses,
with the understanding the actual delivery of the utilities’
is the responsibility of the various utilities companies, and not
of Landlord.
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5.2. Interruption of Utilities.
Tenant agrees that Landlord and its agents shall not be liable in
damages, by abatement of Rent or otherwise, for interruption of any
or all utility services; and such interruptions shall not be deemed
to constitute an eviction or disturbance of Tenant’s use and
possession of the Premises or relieve Tenant from paying Rent or
performing any of its obligations under this Lease, unless caused
by the Landlord. In case the interruption of the utilities is
caused by any action or omission of Landlord for a period of three
days, such interruption will relieve Tenant, without any liability
whatsoever before Landlord, from paying Rent or performing any of
its obligations under this lease, until the cause generating the
interruption is remedied at Landlord’s sole cost.
5.3. KVAs. During the Lease
Term and any extensions thereof, Landlord shall make available to
Tenant the use of 1,000 KVAs of electrical power (the “
1,000 KVAs ”). Tenant hereby acknowledges that
Landlord shall be the owner of the rights of such 1,000 KVAs at all
times. If required by any governmental authority to do so, Landlord
may temporary transfer and assign the rights to the 1,000 KVAs into
the name of Tenant. Tenant shall transfer and re-assign the rights
to the 1,000 KVAs back to Landlord upon the termination of the
Lease. All costs related to such transfers shall be paid for by
Tenant, and Tenant shall execute all reasonably documents related
to such transfers as requested by Landlord. If Tenant requires
electric power in excess of the 1,000 KVAs (the “ Excess
KVA ”), Tenant shall obtain such at its sole cost and
Tenant shall be responsible for acquiring such rights directly from
the applicable utility provider. sole discretion, to purchase from
Tenant any Excess KVA rights that serve the Premises.
ARTICLE 6.
POSSESSION AND MAINTENANCE OF
PREMISES
6.1. Possession.
Tenant acknowledges that it will examine the Premises before taking
possession hereunder. Tenant shall be taking possession of the
Premises in its then “as-is” condition and
Tenant’s taking possession of the Premises or any portion
thereof shall be conclusive evidence against Tenant that the
portion of the Premises taken possession of was then in good order
and satisfactory condition. Both parties agree that they will
perform a “walk through” at the Premises prior to
Beneficial Occupancy and will draft the Commencement Memorandum
which will describe the “as is” condition of the
Premises. At termination, for any cause, of this Lease, the parties
will perform a new “walk through” at the Premises and
will write up a delivery certificate which will attest to the
delivery conditions of the Premises.
6.2. Repairs and
Maintenance. Tenant shall, at Tenant’s sole expense,
keep the Premises and alterations in good order, condition and
repair, including, but not limited to, all equipment or facilities,
such as plumbing, heating, ventilating, air conditioning,
electrical lighting, boilers, pressure vessels, fire protection
system fixtures, interior and exterior walls, interior utility
installations, ceilings, floors, windows, doors, glass, signage,
landscaping, parking lot and driveways, and all other facilities
located in or on the Premises not the responsibility of Landlord as
described in section 6.3. Tenant, in keeping the Premises in good
order, condition and repair, shall exercise and perform good
maintenance practices including preventative maintenance of the
roof and air conditioning systems. Tenant’s obligations shall
include maintaining copies of applicable service contracts and
providing copies of same to Landlord at Landlord’s
request.
If Tenant does not make repairs
promptly and adequately when required to do so, and such failure or
non-performance shall continue for a period of twenty
(20) days from the date Landlord notifies Tenant of the need
for such repair or repairs, Landlord may, but need not, make such
repairs and replacements and Tenant shall pay Landlord, within ten
(10) days of written demand, the cost thereof. In no event
shall any of Tenant’s expenses under this Section 6.2
constitute an item of Expense under Section 3.5 hereof.
Notwithstanding the foregoing, Tenant’s obligations shall
include maintaining service contracts on all HVAC and roof systems,
pursuant to which such systems shall be inspected and properly
maintained by outside service providers on a regular and continuous
basis during the Term hereof. Upon Landlord’s request, tenant
shall furnish Landlord with copies of such service contracts and
records of maintenance performed by the service
contractors.
6.3 Landlord’s exclusive maintenance
responsibilities shall be to be responsible for the Premises’
structural repairs to the extent such repairs are required for
Tenant’s safe possession and use of the Premises, including,
but not limited to, foundations, bearing and exterior walls
(excluding glass); structural floors slabs, maintaining the roof in
good,
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water-tight condition, all utility
infrastructure (water, sewer, natural gas, electricity and
telephone) but up to the point where the utility connects from the
utility provider / street to the Premises, and expressly excluding
any equipment owned by utility providers, and other equipment such
as transformers. Landlord’s responsibility excludes
preventive maintenance, and any maintenance to the street
improvements belonging to the Premises. Landlord reserves the right
to the access—the structural elements including roof,
foundation and exterior walls of the Building which Landlord is so
obligated to maintain and repair. If any portion of the Premises
which Landlord is obligated to maintain or repair is damaged by the
negligence of Tenant, its agents, employees or invitees, then
repairs necessitated by such damage shall be paid for by
Tenant.
Should the Landlord fail to perform
any of the Landlord’s maintenance and repair responsibilities
as specified in this section, and such failure or non-performance
shall continue for a period of twenty (20) days from the date
Tenant notifies Landlord of the need for such repair or repairs,
Tenant shall have the right to effect such repairs at the
Landlord’s expense, and Landlord shall pay Tenant, within ten
(10) days of written demand, the cost thereof.
Landlord shall have the right to
inspect the Premises from time to time while in possession of the
Tenant, in business days and hours, through written notice given
with at least one (1) business day in advance if so long as
the visitor is not a competitor of Tenant, and two
(2) business days in advance if the visitor is a competitor of
Tenant; provided that, such supervision activities will not, in any
manner, obstruct or interfere with the operation, business, work or
industry of the Tenant.
6.4 Compliance With Rules and
Regulations. Tenant shall at its sole cost and expense
comply with (i) all federal, state, county, municipal and
other governmental statutes, laws, rules, orders, regulations and
ordinances affecting the Premises or any part thereof, or the use
thereof, whether or not any such statutes, laws, rules, orders,
regulations or ordinances which may be hereafter enacted involve a
change of policy on the part of the governmental body enacting the
same, and (ii) all rules, orders and regulations of bodies
exercising functions in connection with the prevention of fire or
the correction of hazardous conditions, which apply to the
Premises. Tenant shall comply with the requirement of all policies
of public liability, fire and other insurance which at any time may
be in force with respect to the Premises.
6.5. Latent and/or Hidden
Defects. The Landlord hereby expressly agrees to carry out
at its expense all the major repairs strictly related to the latent
and/or hidden defects existing on the Premises, and specifically
related to the general structures of the Premises, provided that,
such latent and/or hidden defects have not been caused by Tenant,
its employees, representatives, suppliers and/or contractors, and
provided that such repairs are required in order to allow Tenant
the safe possession and use of the Premises.
Tenant shall immediately notify the
Landlord, but in any case within ten (10) days following the
date Tenant receives notice of any damages in the Premises, that
may constitute a latent and/or hidden defect in the general
structures on the Premises to be repaired by Landlord.
ARTICLE 7.
RETURN OF PREMISES
7.1. Surrender of
Possession. No act by Landlord shall be an acceptance of a
surrender of the Premises, and no agreement to accept a surrender
of the Premises shall be valid unless it is in writing and signed
by Landlord. At the end of the Term or the termination of
Tenant’s right to possess the Premises, the parties will
perform a “walk through” at the Premises to inspect the
current state of same and Tenant shall:
(a) Deliver to Landlord the
Premises with all improvements located thereon (except as otherwise
stated herein) in good repair and condition, reasonable wear and
tear (subject however to Tenant’s maintenance obligations)
excepted, and with the HVAC system and hot water equipment, light
and light fixtures and overhead doors and related equipment in good
working order, and in general terms in the same condition that the
Premises were initially delivered to Tenant in accordance to the
initial Commencement Memorandum,
(b) Deliver to Landlord all
keys to the Premises,
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(c) Deliver to Landlord within sixty
(60) days of the termination, proof of the Premises fully paid
utility bills throughout the date of surrender of possession,
and
(d) Remove without damage, or
so long as Tenant repairs any damage caused by such removal, all
signage placed on the Premises, the Building, or the Land by or at
Tenant’s request.
All fixtures, alterations,
additions, and improvements (whether temporary or permanent) shall
be Landlord’s property and shall remain on the Premises
except as provided in the next sentence. Tenant may remove without
damage, or so long as Tenant repairs any damage caused by such
removal, all improvements, trade fixtures, furniture, and personal
property placed in the Premises by Tenant (but Tenant shall not
remove any such item which was paid for, in whole or in part, by
Landlord unless otherwise agreed to in writing.). Tenant shall
remove and retain all capital equipment it has installed at the
Premises, at its expense. All work required of Tenant under this
section 7.1 shall be done in a good and workmanlike manner, in
accordance with all applicable laws.
7.2. Survival. All
obligations of Tenant under this Article 7 shall survive the
expiration of the Term or other termination of this Lease, subject
to move out inspection between Tenant and Landlord, at which time
Tenant and Landlord will verify that items are left in condition
they were received, with normal wear and tear. Tenant’s
obligation to repair identified items during inspection will
survive the term of the lease.
ARTICLE 8.
HOLDING OVER
Tenant shall pay Landlord for each
day Tenant retains irregular possession (“Hold Over”)
of the Premises or any part thereof after termination of this
Lease, as provided for hereunder, by lapse of time or otherwise, or
of Tenant’s right to possession of the Premises, an amount
which is one and a half the amount of Monthly Rent for the first
30-day period in which such possession occurs, and double the
amount of Monthly Rent for any period thereafter, calculated as
though such period were within the Term, and Tenant shall also be
responsible for all other obligations under this lease during any
Hold Over period. Nothing contained in this section shall be
construed or operate as a waiver of Landlord’s right of
re-entry or any other right or remedy of Landlord. No payments of
money by Tenant to Landlord after the Term shall reinstate,
continue or extend the Term and no extension of this Term shall be
valid unless it is otherwise agreed in writing and signed by
Landlord and except as provided by Article 27 herein, Tenant hereby
waives the provisions contained in Article 1762, 1763 and 1764 of
the Civil Code for the State of Tamaulipas (the “Code”)
and the provisions contained in Articles 1813 and 1814 of the Code
regarding the waiver of the right to extend the Lease beyond the
Lease Term and the waiver of the right to continue with the Lease
for an indefinite period of time after the expiration of the Lease
Term. Furthermore, Tenant will indemnify and hold harmless Landlord
against all damages, costs, losses, liabilities, claims and
expenses, including attorneys’ fees, which Landlord incurs on
account of Tenant’s failure to vacate and surrender the
Premises upon termination of this Lease.
ARTICLE 9.
RULES AND REGULATIONS
Tenant agrees to observe and not to
interfere with the rights reserved to Landlord contained in Article
10 hereof and agrees, for itself, its employees, agents,
contractors, invitees and licensees, to comply with the Rules and
Regulations set forth in Exhibits D and E attached to this
Lease and made a part hereof.
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ARTICLE 10.
RIGHTS RESERVED TO
LANDLORD
10.1. Rights Reserved to
Landlord. Landlord reserves the following rights, through a
written notice to Tenant, unless in the event of an emergency or
except as provided for in section 6.3, and without liability to
Tenant for damage or injury to property, person or business and
without effecting an eviction or disturbance of Tenant’s use
or possession or giving rise to any claim for setoff or abatement
of Rent or affecting any of Tenant’s obligations under this
Lease:
(a) Approve any exterior signage,
which approval shall not be unreasonably withheld.
(b) During the last six
(6) months of the Term, to show Premises to prospective
tenants. Landlord shall have reasonable, direct and unrestricted
access to and from the Premises to make repairs in conjunction with
section 6.3 in or to the Building or any part thereof, and any
adjacent land, street or alley. The aforementioned shall be carried
out in a way that does not negatively affect Tenant’s
Permitted Uses. Access to the Premises shall be conducted in
accordance with section 6.3.
ARTICLE 11.
ALTERATIONS
11.1. Alterations.
Tenant shall not, without the prior written consent of Landlord,
make any alterations, additions or improvements to the Premises,
when such:
(a) Represent a cost of Twenty
Thousand 00/100 dollars ($20,000.00) or more, or
(b) Would alter the general
appearance or the structure of the Premises.
Notwithstanding the foregoing,
Landlord shall respond to all consent requests within fifteen
(15) calendar days from receipt of request. Landlord’s
consent hereunder shall not be unreasonably withheld. If Landlord
consents to such alterations, additions or improvements, Tenant
shall furnish to Landlord for approval (same that shall not be
unreasonably withheld) any plans and specifications, names and
addresses of contractors, copies of contracts, necessary permits
and licenses, lien releases, and instruments of indemnification
(including all necessary insurance) against any and all claims,
costs, expenses, damages and liabilities which may arise in
connection with such work. All alterations, additions and
improvements shall be installed in a good, workmanlike manner.
Tenant further agrees to hold Landlord harmless from any and all
liabilities of every kind and description which may arise out of or
be connected in any way with said alterations, additions or
improvements. Upon completing any alterations, additions or
improvements, Tenant shall furnish Landlord with contractors’
affidavits or equivalent documents reasonably required by Landlord
, and full and final waivers of lien and receipted bills covering
all labor and materials expended and used. All alterations,
additions and improvements shall comply with all insurance
requirements and with all applicable laws and
regulations.
8
ARTICLE 12.
ASSIGNMENT AND SUBLETTING
12.1. Assignment and
Subletting. Tenant shall not, without the prior written
consent of Landlord, which shall not be unreasonably withheld, in
each instance:
(a) Sublet the Premises or assign,
transfer, mortgage, pledge or encumber or permit to exist upon or
be subjected to any lien or charge, this Lease or any interest
under it;
(b) Allow to exist or occur any
transfer of or lien upon this Lease or Tenant’s interest
herein;
(c) Permit the use or occupancy of
the Premises or any part thereof for any purpose not provided for
under Article 4 of this Lease.
In no event shall this Lease be
assigned or assignable by voluntary or involuntary bankruptcy or
insolvency proceedings or otherwise, and in no event shall this
Lease or any rights or privileges hereunder be an asset of Tenant
under any bankruptcy or insolvency proceedings. Notwithstanding the
aforementioned, Tenant shall have the right, prior written notice
to Landlord, to assign, sub-let and transfer this Lease and/or any
interest under it to any of its parent companies, affiliates or
subsidiaries, provided Tenant and Guarantor remain obligated under
this Lease and Guaranty.
12.2. Tenant to Remain
Obligated. Consent by Landlord to any subletting, use or
occupancy, shall not operate to relieve Tenant from any covenant or
obligation hereunder. Tenant shall pay all of Landlord’s
reasonable costs, charges and expenses, including attorney’s
reasonable fees, incurred in connection with any assignment,
transfer, lien, charge, subletting, use or occupancy made or
requested by Tenant.
12.3. Change of
Control. Notwithstanding anything to the contrary in this
Article 12 , if Tenant is a corporation (other than a
corporation the stock of which is publicly traded) and if during
the Term of this Lease, the ownership of the shares of stock which
constitute control of Tenant changes other than by reason of gift
or death, Tenant shall notify Landlord of such change within thirty
(30) days of closing thereof (the “Notice Date”)
and include in the notice to be provided to Landlord, the audited
financial statements for the new ownership entities as available.
Landlord, shall have the right to review financials of such new
ownership entities to confirm that such entity is financially able
to perform under the terms of this Agreement. Landlord shall have
thirty (30) days from the Notice Date to respond to Tenant as
follows: (a) that this Lease Agreement continues to be in full
force and effect, or (b) except in the instance of an
assignment of a wholly owned subsidiary of Tenant if after review
of financials, Landlord determines, at its discretion, the
financial inability of such entity to perform under the terms
hereof, Landlord at its option, may at any time thereafter
terminate, without liability and without any Court order, this
Lease by giving Tenant written notice of said termination at least
sixty (60) days prior to the date of termination stated in the
notice. Failure by Landlord to respond within such thirty
(30) days shall be construed as Landlord’s acceptance of
the new ownership, and that the Lease Agreement continues to be in
full force and effect. The term “control” as used
herein means the power to directly or indirectly direct or cause
the direction of the management or policies of Tenant. If Tenant is
a partnership (general or limited) and if during the Term of this
Lease, the ownership of the partnership interests which constitute
control of Tenant changes other than by reason of gift or death,
the provisions hereinabove set forth relating to a Tenant which is
a corporation which is not publicly traded shall apply and
references to ownership of stock shall be deemed to refer to
ownership of partnership interests in said partnership.
12.4. Landlord’s
Consent. Except as otherwise provided above, the parties
agree that Landlord will have the discretional right to approve or
disapprove any assignment or sublease referred to in this
Section 12 and Tenant therefore waives its rights contained in
Article 1818 fraction II of the Civil Code for the State of
Tamaulipas (the “Code”).
9
ARTICLE 13.
WAIVER OF CERTAIN CLAIMS;
INDEMNITY
13.1. WAIVER OF CERTAIN
CLAIMS; INDEMNITY BY TENANT. TO THE EXTENT NOT EXPRESSLY
PROHIBITED BY LAW, TENANT RELEASES LANDLORD AND ITS AGENTS,
SERVANTS AND EMPLOYEES, FROM AND WAIVES ALL CLAIMS FOR DAMAGES TO
PERSON OR PROPERTY SUSTAINED BY TENANT OR BY ANY OCCUPANT OF THE
PREMISES OR THE BUILDING, OR BY ANY OTHER PERSON, RESULTING
DIRECTLY OR INDIRECTLY FROM FIRE OR OTHER CASUALTY, OR FROM ANY
EQUIPMENT OR APPURTENANCE THEREIN, OR FROM ANY ACT OR NEGLECT OF
TENANT EXCEPT FROM ANY ACTS OF OR NEGLIGENCE FROM
LANDLORD.
13.2. Damage to Premises or
Building. If any damage to the Premises or the Building or
any equipment or appurtenance therein, belonging to Landlord,
results from any act or negligence of Tenant, its employees,
agents, contractors, licensees or invitees, Tenant shall be liable
therefor.
13.3. Indemnification.
Tenant shall defend, indemnify, and hold Landlord and its agents,
servants and employees harmless and to indemnify each of them
against all liabilities, damages, costs, and expenses, including
attorneys’ fees, for injuries to all persons and damage to or
theft or misappropriation or loss of property occurring in or about
the Premises arising from Tenant’s occupancy of the Premises
or the conduct of its business or from any activity, work, or thing
done, permitted or suffered by Tenant in or about the Premises or
from any breach or default on the part of Tenant in the performance
of any covenant or agreement on the part of Tenant to be performed
pursuant to the terms of this Lease or due to any other act or
omission of Tenant, its agents, contractors, invitees, licensees or
employees. Tenant’s obligation to indemnify Landlord
hereunder shall include the duty to defend against any claims
asserted by reason of any such claims or liabilities and to pay any
judgments, settlements, costs, fees and expenses, including
reasonable attorneys’ fees, incurred in connection
therewith.
Landlord shall defend, indemnify and
hold Tenant harmless against all liabilities, damages, costs, and
expenses, including attorneys’ fees, arising from any
negligent or wrongful act or omission of Landlord or
Landlord’s agents, contractors, invitees, licensees or
employees on or around the Premises as a result of any act,
omission or negligence of Landlord, or Landlord’s agents,
contractors, invitees, licensees or employees, or arising from any
breach of this Lease by Landlord. Landlord’s obligation to
indemnify Tenant hereunder shall include the duty to defend against
any claims asserted by reason of any such claims or liabilities and
to pay any judgments, settlements, costs, fees and expenses,
including reasonable attorneys’ fees, incurred in connection
therewith.
13.4. Exemption from
Liability. Landlord shall not be liable for any damage or
injury to the persons, business (or any loss of income), goods,
inventory, furnishings, fixtures, equipment, merchandise or other
property of Tenant, Tenant’s employees, invitees, customers
or any other person in or about the Premises, when the damage or
injury is caused by or results from: (a) fire, steam,
electricity, water, gas or wind (unless damage derives from a
structural defect); (b) the breakage, leakage, obstruction or
other defects of pipes, sprinklers, wires, appliances, plumbing,
air conditioning or lighting fixtures installed or otherwise
maintained by Tenant; or (c) any act or omission of any other
person entering the Property other than employees or any person
under Landlord’s control. The provisions of this section 13.4
shall not, however, exempt Landlord from liability for
Landlord’s negligence.
13.5 In no event shall Tenant have
any liability under this Lease for any special, incidental,
punitive, exemplary, indirect or consequential damages, including
but not limited to lost profits, loss of production, loss of
revenues, interest, capital, financing, good will, use, business
reputation, opportunity or productivity, howsoever arising, even if
Landlord has been advised of the possibility of such
damages.
In no event shall Landlord have any
liability under this Lease for any special, incidental, punitive,
exemplary, indirect or consequential damages, including but not
limited to lost profits, loss of production, loss of revenues,
interest, capital, financing, good will, use, business reputation,
opportunity or productivity, howsoever arising, even if Tenant has
been advised of the possibility of such damages.
10
ARTICLE 14.
DAMAGE OR DESTRUCTION BY
CASUALTY
14.1. Damage or Destruction by
Casualty. Tenant shall notify Landlord of any material
damage to the Premises as soon as possible, and no later than ten
(10) days from taking notice of such damage, regardless of the
cause of damage. If the Premises or the Building shall be damaged
by fire or any force majeure or act of God casualty and if such
damage does not render all or a substantial portion of the Premises
or the Building unfit for the agreed uses, then Landlord shall
proceed to repair and restore the same with reasonable promptness,
subject to reasonable delays for insurance adjustments and delays
caused by matters beyond Landlord’s control. If any such
damage renders all or a substantial portion (more than 30%) of the
Building unfit for the agreed uses, Landlord shall, with reasonable
promptness after the occurrence of such damage, estimate the length
of time that will be required to substantially complete the repair
and restoration of such damage and shall, by written notice, advise
Tenant of such estimate. If it is so estimated that the amount of
time required to substantially complete such repa