<PAGE>
Exhibit 10(ii)
INDUSTRIAL LEASE AGREEMENT BETWEEN
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
AND RIVIERA TOOL COMPANY DATED JUNE 26, 2003
INDUSTRIAL LEASE AGREEMENT
BETWEEN
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
AS LANDLORD
AND
RIVIERA TOOL COMPANY
(FORMERLY KNOWN AS RIVIERA DIE & TOOL, INC.)
AS TENANT
FOR THE PROPERTY LOCATED AT
5460 EXECUTIVE PARKWAY
GRAND RAPIDS, MICHIGAN 49512
177305.3 05137-31403
Form Retail Lease Agreement 2001.12
6/26/03
Draft 6/26/03 10:43 AM
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S>
<C>
SCHEDULE........................................................................
1
1.
LEASE OF
PREMISES......................................................
4
(a)
Demise........................................................
4
(b)
Term..........................................................
4
(c)
Possession....................................................
4
2.
RENT...................................................................
4
(a) Base
Rent.....................................................
4
(b) Payment of
Rent............................................... 4
(c)
Net-Net-Net Lease.............................................
4
(d) Rent
Absolute.................................................
4
3.
USE....................................................................
5
(a) Limitation
on Use............................................. 5
(b) Quiet
Enjoyment...............................................
5
4.
ENVIRONMENTAL
MATTERS..................................................
5
(a) Tenant's
Representations, Warranties and Covenants............ 5
(b)
Notice........................................................
5
(c) Tenant
Indemnification........................................
6
(d)
Disclosure....................................................
6
(e)
Inspection....................................................
6
(f)
Definitions...................................................
6
5.
CONDITION OF
PREMISES..................................................
7
6.
UTILITIES AND
SERVICES.................................................
7
(a) Tenant's
Utilities and Services............................... 7
(b)
Interruptions in Utilities or Services........................
7
7.
TAXES AND
ASSESSMENTS..................................................
7
(a) Taxes and
Assessments......................................... 7
(b) Excluded
Taxes................................................ 7
(c) Tax
Receipts..................................................
8
(d) Landlord's
Payment Right...................................... 8
(e) Tax
Contests..................................................
8
(f) Tax
Suits.....................................................
8
(g) Tax
Escrow....................................................
8
8.
RIGHTS RESERVED TO
LANDLORD............................................ 8
9.
MAINTENANCE OF
PROPERTY................................................
8
(a)
Maintenance and Repairs by Tenant.............................
8
</TABLE>
177305.3050137-31403
Form Retail Lease Agreement 2001.12
6/26/03
<PAGE>
<TABLE>
<S>
<C>
(b)
Maintenance by Landlord on Tenant's Default...................
9
10.
ALTERATIONS............................................................
9
(a)
Requirements..................................................
9
(b)
Ownership.....................................................
10
11.
LIENS..................................................................
10
(a) Lien
Claims...................................................
10
(b) Landlord's
Right to Cure...................................... 10
12.
INSURANCE..............................................................
10
(a) Liability
Insurance........................................... 10
(b) Property
Insurance............................................ 11
(c) Business
Interruption Insurance............................... 11
(d) Worker's
Compensation Insurance............................... 11
(e) Boiler and
Plate Glass Insurance.............................. 11
(f) Other
Insurance...............................................
11
(g) Evidence
of Insurance......................................... 11
(h) Failure to
Provide Insurance.................................. 12
(i)
Application of Insurance Proceeds.............................
12
(j) Waiver of
Subrogation......................................... 12
13.
INDEMNITY..............................................................
12
14. FIRE AND
CASUALTY......................................................
12
(a)
Rebuilding....................................................
12
(b) Plans and
Specifications...................................... 12
(c)
Application of Insurance Proceeds.............................
12
15.
CONDEMNATION...........................................................
13
(a) Total
Taking..................................................
13
(b) Partial
Taking................................................ 14
(c) Tenant's
Claim................................................ 14
16. ASSIGNMENT
AND SUBLETTING..............................................
14
(a)
Transfer......................................................
14
(b) Permitted
Transfer............................................ 14
(c) Tenant's
Request for Consent.................................. 15
(d) Excess
Rent...................................................
15
(e)
Recapture.....................................................
15
(f) Assignment
of Sublease Revenues............................... 15
17.
SURRENDER..............................................................
16
(a) Condition
at Surrender........................................ 16
(b) Removal of
Tenant's Property.................................. 16
</TABLE>
177305.3050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
<PAGE>
<TABLE>
<S>
<C>
18. DEFAULTS
AND REMEDIES..................................................
16
(a)
Default.......................................................
16
(b)
Remedies......................................................
16
(c) Other
Remedies................................................
17
(d) Waiver of
Trial by Jury....................................... 17
(e) Attorney's
Fees............................................... 17
19. HOLDING
OVER...........................................................
17
20. SECURITY
DEPOSIT.......................................................
18
(a)
Form..........................................................
18
(b)
Application...................................................
18
(c) General
Terms................................................. 18
21. ESTOPPEL
CERTIFICATE...................................................
19
22.
SUBORDINATION..........................................................
19
23. FINANCIAL
STATEMENTS...................................................
19
24. NO
BROKER..............................................................
19
25.
NOTICES................................................................
20
26.
MISCELLANEOUS..........................................................
20
(a) Successors
and Assigns........................................ 20
(b) Entire
Agreement..............................................
20
(c)
Time..........................................................
20
(d) Execution
and Delivery........................................ 20
(e)
Severability..................................................
20
(f) Governing
Law................................................. 20
(g) Joint and
Several Liability................................... 20
(h) Force
Majeure.................................................
20
(i)
Captions......................................................
20
(j) No
Waiver.....................................................
21
(k)
Recording.....................................................
21
(l) Relation
of Parties........................................... 21
(m) Recapture
Right............................................... 21
(n)
Counterparts..................................................
21
(o) Limitation on
Landlord's Liability............................ 21
</TABLE>
177305.3050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
<PAGE>
DEFINITIONS INDEX
<TABLE>
<CAPTION>
DEFINED TERM
SECTION
------------
-------
<S>
<C>
AFFILIATE.................................................
16
ALTERATION OR
ALTERATIONS.................................
10
AWARD.....................................................
15
BASE
RENT.................................................
SCHEDULE
BROOM
CLEAN...............................................
17
BUILDING..................................................
SCHEDULE
CERCLA....................................................
4
COMMENCEMENT
DATE.........................................
SCHEDULE
COMPLETION
ESTIMATE.......................................
14
COSMETIC
WORK.............................................
10
COSTS OF
RELETTING........................................
18
DEFAULT...................................................
18
DEFAULT
RATE..............................................
2
DELIVERY
DATE.............................................
SCHEDULE
ENVIRONMENTAL
COSTS.......................................
4
ENVIRONMENTAL
CONDITIONS..................................
4
ENVIRONMENTAL LAW OR
LAWS.................................
4
ESTOPPEL
CERTIFICATE......................................
21
EXISTING
LEASE............................................ EXISTING LEASE
RIDER
EXPIRATION
DATE...........................................
SCHEDULE
EXTENSION
OPTION.......................................... EXTENSION OPTION RIDER
EXTENSION
TERM............................................ EXTENSION OPTION RIDER
FINANCIAL
STATEMENTS......................................
23
GAAP......................................................
16
HAZARDOUS
MATERIALS.......................................
4
INITIAL
TERM..............................................
SCHEDULE
LANDLORD..................................................
SCHEDULE
LANDLORD PARTY OR LANDLORD
PARTIES........................
13
LAW OR
LAWS...............................................
3
LEASE.....................................................
SCHEDULE
MARKET EXTENSION
RATE..................................... EXTENSION OPTION RIDER
MORTGAGE..................................................
22
MORTGAGEE.................................................
22
PERMITTED
TRANSFER........................................
16
PERMITTED
TRANSFEREE......................................
16
PERMITTED
USE.............................................
SCHEDULE
PREMISES..................................................
SCHEDULE
PREVAILING
PARTY..........................................
18
PRIME
RATE................................................
2
PROPERTY..................................................
SCHEDULE
PROPERTY
INSURANCE........................................
12
PURCHASER.................................................
16
RCRA......................................................
4
RENT......................................................
2
REQUIRED
REMOVABLES.......................................
10
RULES AND
REGULATIONS.....................................
7
SECURITY
DEPOSIT..........................................
SCHEDULE
SERVICE OR
SERVICES.......................................
6
SUBORDINATION
AGREEMENT...................................
22
SUCCESSOR.................................................
16
TAKING....................................................
15
TANGIBLE NET
WORTH........................................
16
TAXES.....................................................
2
TENANT....................................................
SCHEDULE
TENANT PARTY OR TENANT
PARTIES............................
13
</TABLE>
177305.3050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
<PAGE>
<TABLE>
<S>
<C>
TENANT'S
PROPERTY......................................... 12
TRANSFER..................................................
16
UTILITY OR
UTILITIES...................................... 6
</TABLE>
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
<PAGE>
INDUSTRIAL LEASE AGREEMENT
This
Industrial Lease Agreement (this "LEASE") is made and entered into
as
of ___________________________ , 2003, by
and between LANDLORD and TENANT. The
Lease consists of the following Schedule,
Terms and Conditions and Exhibit(s)
referenced herein.
SCHEDULE
For
purposes of this Lease, the following terms shall have the
following
meanings:
"LANDLORD:"
Name: Massachusetts Mutual Life Insurance Company
Entity: Corporation
State of Formation: Massachusetts
Address: c/o
Cornerstone Real Estate Advisers, Inc.
311 South Wacker Drive, Suite 980
Chicago, Illinois
60606
"TENANT:"
Name: Riviera Tool Company (formerly known as Riviera Die
& Tool, Inc.)
Federal Employer Identification No.: 38-2828870
Entity: Corporation
State of Formation: Michigan
Address: 5460
Executive Parkway
Grand Rapids, Michigan 49512
Attention: Chief Executive Officer
"BUILDING:" That
certain building shown on the site plan attached hereto
as Exhibit B situated on the parcel of land which is legally
described on Exhibit A attached hereto and commonly known as
5460 Executive Parkway, Grand Rapids, Michigan
"PREMISES:" The
entire space located within the Building and containing
approximately 176,607 leaseable square feet
"PROPERTY:" The
Building, together with the land upon which the Building
is situated, all easements, licenses and rights-of-way
appurtenant to said land and all personal property, fixtures
and equipment of Landlord which are used in the operation of
the Building and said land
"TERM:"
Fifteen (15) years
"BASE RENT:"
<TABLE>
<CAPTION>
Year
Annual
Monthly Annual Base Rent
Per
of Term
Base Rent Base Rent
Leaseable Square
Foot
-------
--------------
-----------
---------------------
<S>
<C>
<C>
<C>
1
$ 944,847.48
$78,737.29
$5.35
2
967,806.36 80,650.53
$5.48
3
992,531.40 82,710.95
$5.62
4
1,017,256.30 84,771.36
$5.76
5
1,043,747.20 86,978.94
$5.91
6
1,068,472.30 89,039.36
$6.05
7
1,094,963.40 91,246.95
$6.20
8
1,123,220.50 93,601.71
$6.36
</TABLE>
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-1-
<PAGE>
<TABLE>
<S>
<C>
<C>
<C>
9
1,151,477.60 95,956.47
$6.52
10
1,179,734.70 98,311.23
$6.68
11
1,209,757.80 100,813.15
$6.85
12
1,239,781.00 103,315.09
$7.02
13
1,271,570.40 105,964.20
$7.20
14
1,303,359.60 108,613.30
$7.38
15
1,335,148.80 111,262.40
$7.56
</TABLE>
"PERMITTED USE:" Plastic molding, assembling,
decorating and tool, die and mold
manufacturing facility and related try out for storage and
distribution of certain automobile components (or other items
consistent with light manufacturing and which are permitted by
applicable
zoning codes) and for Tenant's administrative
offices
"SECURITY DEPOSIT:" $78,737.29
"COMMENCEMENT November
1, 2003
DATE:"
"EXPIRATION DATE:" October 31, 2018
"DELIVERY DATE:" The Commencement Date
"DECLARATION:" The Declaration of
Covenants, Conditions, Easements and
Restrictions for Meadowbrooke Business Park, and all
amendments thereto from time to time (Tenant acknowledges
receipt of the Declaration as same exists as of the date of
this Lease)
EXHIBITS:
A
Legal Description of Property
B
Site Plan of Property
C
Commencement Date Confirmation
The following Riders are hereby made a part
of this Lease:
Extension Option Rider
Existing Lease Rider
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-2-
<PAGE>
Witnesses (2 required)
TENANT:
RIVIERA TOOL COMPANY (formerly known
as Riviera Die & Tool, Inc.), a
Michigan corporation
___________________________________
By:__________________________________
___________________________________
Title:_______________________________
Witnesses (2 required)
LANDLORD:
MASSACHUSETTS MUTUAL LIFE INSURANCE
COMPANY, a Massachusetts corporation
By: Cornerstone Real Estate Advisers,
Inc., its agent
___________________________________
By:__________________________________
___________________________________
Title:_______________________________
END OF SCHEDULE
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-3-
<PAGE>
TERMS AND CONDITIONS
1. LEASE
OF PREMISES.
(a) Demise. Subject to the covenants, terms, provisions and
conditions of this Lease, Landlord leases
the entire Property to Tenant.
Landlord and Tenant agree that the
leaseable area of the Premises described in
the Schedule is correct and shall not be
remeasured.
(b) Term. The Term shall commence on the Commencement Date and
shall
expire on the Expiration Date, unless
terminated earlier as otherwise provided
in this Lease. Within thirty (30) days
after Landlord's request, Landlord and
Tenant will execute a Commencement Date
Confirmation in the form attached as
Exhibit C, which shall acknowledge the
Commencement Date and the Expiration
Date.
(c) Possession. Tenant is now in possession of the Property
under
the "Existing Lease" (as defined in the
Existing Lease Rider). Landlord agrees
to deliver possession of the Premises to
Tenant under this Lease on the Delivery
Date.
2.
RENT.
(a) Base Rent. Commencing on the Commencement Date, Tenant shall
pay
Base Rent in monthly installments in
advance on or before the first day of each
month of the Term. As used in this Lease,
"RENT" shall mean Base Rent and all
other sums, charges, fees, expenses, costs
and additional rent which Tenant is
required to pay under this Lease.
(b) Payment of Rent. The following provisions shall govern the
payment of Rent: (i) Tenant shall pay Rent
to Landlord at Landlord's address
described in the Schedule, or to such other
party or to such other address in
the United States as Landlord may hereafter
designate by written notice to
Tenant; (ii) if the Term ends on a day
other than the last day of a calendar
month, then Base Rent for the month in
which the Term so ends shall be prorated
based upon the ratio that the number of
days in such month which fall within the
Term bears to the total number of days in
such month; (iii) all Rent shall be
paid to Landlord without demand, offset or
deduction, and the covenant to pay
Rent shall be independent of every other
covenant in this Lease; (iv) any Rent
payment owing by Tenant to Landlord which
is not paid when due shall bear
interest from the date due until the date
paid at a rate (the "DEFAULT RATE")
equal to four percent (4%) plus the
corporate base rate (the "PRIME RATE") of
interest announced from time to time by
Bank One at its Chicago, Illinois
office, but in no event higher than the
maximum rate permitted by applicable
Law; (v) Tenant shall pay Landlord a late
charge for any Rent payment which is
paid more than five (5) days after its due
date equal to Seven Hundred Fifty
Dollars ($750.00); (vi) each amount owed to
Landlord under this Lease for which
the date of payment is not expressly fixed
shall be due on the same date as the
Rent listed on the statement showing such
amount is due; and (viii) Landlord
shall have the right to apply payments
received from Tenant pursuant to this
Lease (regardless of Tenant's designation
of any contrary application) to
satisfy any obligations of Tenant
hereunder, in such order and amounts as
Landlord in its sole discretion may
elect.
(c)
Net-Net-Net Lease. All Rent payable under this Lease shall be
absolutely net to the Landlord so that this
Lease shall yield, net, to Landlord,
the specified annual Base Rent in each
specified period during the Term, and
each and every item of taxes and other
expenses of every kind and nature
whatsoever, the payment of which Landlord
is, shall, or may become liable for by
reason of its estate or interest in the
Property or of any rights or interest of
Landlord in or under this Lease or by
reason or in any manner connected with or
arising from the ownership, leasing,
operation, management, maintenance, repair,
rebuilding, remodeling, renovation, uses or
occupancy of the Property shall be
borne by Tenant, all as otherwise provided
herein (specifically, without
limitation, Sections 4, 6, 7, 9, 11 and
12).
(d) Rent Absolute. Any damage or destruction to all or any
portion
of the buildings, structures and fixtures
comprising the Property, by fire, the
elements, or any other cause whatsoever,
whether with or without fault on the
part of any Tenant Party, shall not,
terminate this Lease or entitle Tenant to
surrender the Property or entitle Tenant to
any abatement of or reduction in the
Rent payable, or otherwise affect the
respective obligations of the parties
hereto. If the use of the Property for any
purpose should, at any time during
the Term, be prohibited by Law or prevented
by injunction, this Lease shall not
be thereby terminated, nor shall Tenant be
entitled by reason thereof to
surrender the Property, or to any abatement
or reduction in Rent, nor shall the
respective
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-4-
<PAGE>
obligations of the parties hereto be
otherwise affected unless such eviction is
due to the act of Landlord or any person or
persons claiming any interest in the
Property by or under Landlord.
3.
USE.
(a) Limitation on Use. The Property shall be used and occupied
solely for the Permitted Use. Tenant shall
not cause or permit the Property to
be used in any way which (i) constitutes a
violation of federal, state or local
law, statute, ordinance, code, rule, order,
decree or certificate of occupancy
(individually, a "LAW" and collectively,
the "LAWS"), or (ii) overload the
structural limitations of the Property, or
(iii) constitutes a nuisance or
waste, or (iv) constitutes a violation of
the Declaration. Tenant shall not use
or install any of Tenant's Property in or
to the Premises which would exceed the
legal live load per square foot designated
by the structural engineers for the
Building (and Tenant shall ascertain from
Landlord such legal live load prior to
installing Tenant's Property).
(b) Quiet Enjoyment. As long as no Default exists, Tenant shall
peacefully and quietly have and enjoy the
Property for the Term, free from
interference by Landlord, subject, however,
to the provisions of this Lease. The
loss or reduction of Tenant's light, air or
view will not be deemed a
disturbance of Tenant's occupancy of the
Property nor will it affect Tenant's
obligations under this Lease or create any
liability of Landlord to Tenant.
Landlord represents and warrants to Tenant
that as of the date of this Lease,
Landlord owns fee title to the Property
with full power and authority to enter
into and deliver possession of the Property
to Tenant under this Lease.
4.
ENVIRONMENTAL MATTERS.
(a) Tenant's Representations, Warranties and Covenants. Tenant
represents, warrants and covenants to and
with Landlord that:
(i) Tenant has the full right, power, and authority to carry
out its
environmental obligations hereunder.
(ii) Tenant is financially capable of performing and
satisfying
its environmental obligations hereunder.
(iii) To the knowledge of Tenant, Tenant is not now, and never
has been,
in violation in any material respect of any applicable
Environmental Law, including, but not limited to, any Environmental
Law
relating
to the generation, handling, usage, transportation, treatment,
storage,
or disposal of Hazardous Materials, nor is it subject to any
threatened, existing, or pending action by any governmental
authority in
connection
therewith.
(iv) Tenant's generation, handling, usage, transportation,
treatment,
storage, or disposal of Hazardous Materials at the Property
will (A)
at all times comply in all material respects with applicable
Environmental Laws, and (B) not cause or allow any Environmental
Condition
to occur
or exist.
(v) Tenant, at its expense, shall comply in all material
respects
with each Environmental Law pertaining to the Property or
Tenant's
use of the Property, and with all lawful directions, regardless
of when
they become effective, of all public officers issued pursuant
to
any
Environmental Law, which shall impose any duty upon the owner
or
operator
with respect to the use or occupancy of the Property.
(vi) Tenant will not install, use or operate any underground
storage
tank at the Property without the express written permission of
Landlord,
which permission may be withheld in Landlord's sole and
arbitrary
discretion.
(b) Notice. Tenant shall give prompt written notice to Landlord
of
(i) any proceeding or inquiry by any
governmental authority with respect to the
presence of any Hazardous Materials at the
Property or the migration thereof
from or to other areas, (ii) all claims and
potential claims made, inquired
about, or threatened by any third party
against Tenant or the Property relating
to any loss or injury resulting from any
Hazardous Materials, and (iii) Tenant's
discovery of any occurrence or condition on
any property adjoining or in the
vicinity of the Property
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-5-
<PAGE>
that could cause the Property or any part
thereof to be subject to any
restrictions on the ownership, occupancy,
transferability or use of the Property
under any Environmental Law.
(c) Tenant Indemnification. Tenant shall defend with counsel
reasonably approved by Landlord, all
actions against any Landlord Party with
respect to, and pay, protect, indemnify,
and hold harmless, to the extent
permitted by Law, the Landlord Parties from
and against any and all
Environmental Costs of any nature arising
out of, or claimed to be arising out
of, any Environmental Conditions caused by
Tenant's use or occupancy of the
Property or by the acts or omissions of any
Tenant Party. This indemnification
shall include without limitation
Environmental Costs arising out of any
violations of Environmental Laws,
regardless of any real or alleged fault,
negligence, willful misconduct, gross
negligence, breach of warranty, or strict
liability on the part of any Tenant Party.
The foregoing indemnity shall survive
the end of the Term for the maximum period
allowed by Law.
(d) Disclosure. Tenant shall provide Landlord a copy of every
document Tenant makes available to any
governmental authority or to any person
under any Environmental Law regarding the
Property.
(e) Inspection. Landlord shall have the right, but not the duty,
to
inspect the Property at any time to
determine whether Tenant is complying with
the terms of this Section 4. If Tenant is
not in compliance, then Landlord shall
have the right to immediately enter upon
the Property to remedy, at Tenant's
expense, any Environmental Conditions
caused by Tenant's failure to comply,
notwithstanding any other provision of this
Lease to the contrary. Such
remediation measures shall be done in
accordance with the reasonable
recommendations of Landlord's geotechnical
engineers and/or consultants, and/or
the lawful requirements of any governmental
authority having jurisdiction over
such matters. Tenant shall pay to Landlord,
as additional rent, all reasonable
and necessary Environmental Costs incurred
by Landlord in performing any such
remediation measures within sixty (60) days
after Landlord's written request
therefore. Landlord shall use reasonable
efforts to minimize interference with
Tenant's business operations, but Landlord
shall not be liable for any necessary
interference caused thereby.
(f) Definitions. For purposes of this Lease, the following
terms
shall have the following meanings.
(i) "ENVIRONMENTAL LAW OR LAWS" shall mean any and all
federal,
state or local laws, regulations, ordinances, rules, orders,
directions, requirements or court decrees pertaining to health,
industrial
hygiene,
or the environmental conditions on, under or about the
Premises,
including,
without limitation, the Resource Conservation and Recovery Act,
as amended
(42 U.S.C. Section 6901, et seq.), and regulations promulgated
thereunder
("RCRA"); the Comprehensive Environmental Response,
Compensation, and Liability Act, as amended (42 U.S.C. Section
9601, et
seq.), and
regulations promulgated thereunder ("CERCLA"), the Hazardous
Materials
Transportation Act, as amended (49 U.S.C. Section 1801, et
seq),
and
regulations promulgated thereunder; the Toxic Substances Control
Act,
as amended
(15 U.S.C. Section 2601, et seq.), and regulations promulgated
thereunder; the Federal Insecticide, Fungicide and Rodenticide Act,
as
amended (7 U.S.C. Section
136, et seq.), and regulations promulgated
thereunder; the Federal Water Pollution Control Act (the Clean
Water Act),
as amended
(33 U.S.C. Section 1251, et seq.), and regulations promulgated
thereunder; the Safe Drinking Water Act, as amended (42 U.S.C.
Section
300f et
seq.), and regulations promulgated thereunder; the Clean Air
Act,
as amended
(42 U.S.C. Section 7401 et seq.), and regulations promulgated
thereunder; and all parallel, similar or relevant Laws.
(ii) "HAZARDOUS MATERIALS" shall mean any (A) hazardous waste
as defined
in RCRA, (B) hazardous substance as defined in CERCLA; (C)
petroleum
or liquid petroleum or wastes; and (D) any other toxic or
hazardous
substances that may be regulated from time to time by
applicable
Environmental Laws.
(iii) "ENVIRONMENTAL CONDITIONS" shall mean any spilling,
leaking,
pumping, pouring, emitting, emptying, discharging, injecting,
escaping,
leaching, dumping, or disposing of Hazardous Materials other
than in
compliance with applicable Environmental Laws. The term
"Environmental Conditions" includes, but is not limited to, the
presence
of
Hazardous Materials attributable to the operation of any
underground or
above-ground storage tanks, oil/water separators, or in-ground
hydraulic
lifts or
hoists, and associated equipment.
(iv) "ENVIRONMENTAL COSTS" shall mean any and all judgments,
damages,
penalties, fines, costs, liabilities, obligations, losses, or
expenses
of whatever kind and nature (including, without
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-6-
<PAGE>
limitation, diminution in value of the Property, damages for the
loss or
restriction on use of leaseable space, damages arising from any
adverse
impact on
marketing of space, reasonable sums paid in settlement of
claims,
and reasonable attorney, consultant and expert fees), arising
from
or
incurred in connection with Environmental Conditions, including,
but
not
limited to, those relating to the presence, investigation, or
remediation of
Hazardous Materials.
5.
CONDITION OF PREMISES. No agreement of Landlord to alter,
remodel,
decorate, clean or improve the Property or
to demolish and/or remove any
improvements, equipment or property located
at the Property (or to provide
Tenant with any credit or allowance for any
of the foregoing), and no
representation regarding the condition of
the Property have been made by or on
behalf of Landlord or relied upon by
Tenant, it being agreed that Tenant shall
accept the Property in an "as-is"
"where-is" condition and configuration on the
Delivery Date. Tenant, at its expense,
shall (a) obtain any and all certificates
of occupancy, special use permits, business
licenses and other permits and
licenses which may be required by
applicable Law for Tenant's use and occupancy
of the Property, and (b) make any and all
improvements, alterations and
additions to the Property which may be
required to obtain such certificates,
permits and licenses. The failure of Tenant
to obtain any such certificate,
permit or license shall not be a condition
precedent to Tenant's obligation to
pay Rent or to perform any of its other
obligations hereunder or affect the
validity of this Lease.
6.
UTILITIES AND SERVICES.
(a) Tenant's Utilities and Services. Tenant shall contract in
its
own name and timely pay all charges for all
(i) utilities including, but not
limited to, gas, electricity, water, fuel,
and sewer (individually, a "UTILITY"
and collectively the "UTILITIES"); and (ii)
services including, but not limited
to, telephone, security, alarm, janitorial,
trash and debris removal, ice and
snow removal and pest control
(individually, a "SERVICE" and collectively the
"SERVICES") used in, servicing or assessed
against the Property.
(b)
Interruptions in Utilities or Services. Tenant agrees that
Landlord shall not be liable for damages
for any failure or interruption in
furnishing any Utility or Service nor shall
any such failure or interruption be
considered to be an eviction or disturbance
of Tenant's use of the Premises, or
relieve Tenant from its obligation to pay
any Rent when due or from any other
obligations of Tenant under this Lease.
7. TAXES
AND ASSESSMENTS.
(a) Taxes and Assessments. Tenant agrees to pay not later than
the
due date thereof, as additional rent for
the Property, all taxes and
assessments, general and special, water and
sewer rents, rates and charges,
excises, levies, license and permit fees,
fines, penalties and other
governmental charges and any interest or
costs with respect thereto, utilities
and all other impositions, ordinary and
extraordinary, of every kind and nature
whatsoever, which at anytime during the
Term may be levied, assessed, imposed,
confirmed or grow or become due and payable
out of, or in respect of, or charged
with respect to, or become a lien on the
Property or any part thereof. If, by
Law, any assessment may, at the option of
the taxpayer, be paid in installments,
Tenant may exercise the option to pay the
same in such installments, provided
that Tenant shall not be responsible for
the payment of any such installment
which may be due after the Expiration Date.
In the event that any such
assessment (other than an assessment for ad
valorem real estate taxes) is
attributed to Tenant's acts or
improvements, any such assessments which are to
become due and payable after the Expiration
Date shall be deposited with
Landlord for such payment on the Expiration
Date. Tenant shall, in addition to
the foregoing, pay any new tax of a type or
a nature not presently in effect but
which may hereafter be levied, assessed or
imposed upon Landlord or upon the
Property, if such tax shall be based upon
or arise out of the ownership, use or
operation of the Property; provided,
however, that for the purpose of computing
Tenant's liability for such new type of
tax, the Property shall be deemed the
only property of the Landlord.
(b) Excluded Taxes. Nothing contained herein shall be construed
to
require Tenant to pay any intangible,
single business or other business
activities, franchise, inheritance, estate,
succession or transfer tax of
Landlord or any income or excess profits
tax assessed upon or in respect of any
income of Landlord or chargeable to or
required to be paid by Landlord, unless
such tax shall be specifically levied
against the gross rental income of
Landlord derived hereunder, in which case,
Tenant shall pay such tax, or any tax
which shall be specifically levied as a
substitute for the real estate taxes, in
whole or in part, upon the Property or the
improvements comprising same.
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-7-
<PAGE>
(c) Tax Receipts. Tenant further agrees to deliver to Landlord,
duplicate receipts or photo static copies
thereof showing the payment of all
said taxes, assessments, and other
impositions, within thirty (30) days after
the respective payments evidenced thereby,
but no later than twenty (20) days
after the due date thereof.
(d) Landlord's Payment Right. Landlord shall, at its option,
have
the right at all times during the Term to
pay any such taxes, assessments or
other charges or impositions not paid by
Tenant, when due, and the amounts so
paid, including penalties and reasonable
expenses, shall be so much additional
rent due at the next rent day after any
such payments, with interest at the
Default Rate from the date of payment
thereof.
(e) Tax Contests. Tenant shall not be required to pay any tax,
assessment, tax lien or other imposition or
charge upon or against the Property
or any part thereof or the improvements at
any time comprising same so long as
Tenant shall, in good faith and with due
diligence, contest the same or the
validity thereof by appropriate legal
proceedings which shall have the effect of
preventing the collection of the tax,
assessment, tax lien or other imposition
or charge so contested; provided that on or
before the due date of any such tax,
assessment, tax lien other imposition or
charge, Tenant shall give Landlord such
security as may be reasonably demanded by
Landlord to insure payment of the
amount of the tax, assessment, tax lien or
other imposition or charge, and all
interest and penalties thereon.
(f) Tax Suits. In the event that Tenant at any time institutes
suit
to recover any tax, assessment, tax lien or
other imposition or charge paid by
Tenant under protest in Landlord's name,
Tenant shall have the right, at its
sole expense, to institute and prosecute
such suit or suits in Landlord's name,
in which event Tenant covenants and agrees
to indemnify Landlord and save it
harmless from and against all costs,
charges or liabilities in connection with
any such suit. All funds received as a
result of any such suit shall belong to
Tenant.
(g) Tax Escrow. During any period (the "Tax Escrow Period")
commencing on the occurrence of any
monetary Default by Tenant under this Lease,
and expiring on the last day of the first
twenty-four (24) full calendar month
period following the cure of such monetary
Default by Tenant and during which no
subsequent monetary Default by Tenant
occurs, Landlord, at its option, may
require Tenant to escrow taxes and
assessments for the Property with Landlord
during the Tax Escrow Period, in which
event Tenant agrees to deposit with
Landlord on or before the first day of each
month of the Tax Escrow Period,
one-twelfth (l/12th) of the most recent
annual taxes and assessments for the
Property, and in such event, Landlord shall
pay or cause to be paid such taxes
and assessments (but Tenant shall remain
obligated to make up any shortfall or
deficiency in said escrow from time to time
within ten (10) days after written
request from Landlord), and (ii) Tenant's
deposits of such amounts with Landlord
shall constitute Tenant's payment of the
amounts required under Section 7(a)
above.
8. RIGHTS
RESERVED TO LANDLORD. Landlord reserves the following rights,
each of which Landlord may exercise without
notice to Tenant and without
liability to Tenant, and the exercise of
any such rights shall not be deemed to
constitute an eviction or disturbance of
Tenant's use or possession of the
Premises and shall not give rise to any
claim for set-off, deduction, or
abatement of Rent or any other claim: (a)
to change the name or street address
of the Property; (b) to install, affix and
maintain signs (including, but only
during the last twenty-four (24) months of
the Term, "For Lease" or "For Sale"
signs) on the Property; (c) intentionally
deleted; (d) to show the Property at
reasonable times, (e) to inspect the
Property at reasonable times and, if
vacated or abandoned, to prepare the
Property for reoccupancy; and (f) to take
any other action which is reasonable in
connection with the operation,
maintenance or preservation of the
Property.
9.
MAINTENANCE OF PROPERTY.
(a) Maintenance and Repairs by Tenant. Tenant shall maintain
the
Property and all buildings, structures,
facilities, improvements and
appurtenances now or hereafter comprising
same in good order and repair, both
inside and outside, structurally and
nonstructurally, and keep the same and all
parts thereof, including, without limiting
the generality of the foregoing,
foundations, walls, floors, roof,
sidewalks, curbs, water and sewer connections,
windows and other glass, plumbing, water,
gas and electric fixtures, pipes,
wires and conduits, heating, cooling and
electrical and plumbing systems,
elevators, boilers, machinery, fixtures,
equipment, furnishings, facilities,
appliances, roadways, walkways, parking
areas and landscaping in, on or
connected with the Property, in good,
clean, healthful, and safe order and
condition, all in accordance with
applicable Laws and the direction of proper
public officers and the terms of the
Declaration, suffering no waste or injury,
and shall, at Tenant's sole expense,
promptly make or cause to be made all
needed repairs, replacements, renewals and
additions, structural or otherwise,
whether ordinary or extraordinary, foreseen
or unforeseen, in and to any of the
foregoing, all as may be
177305.3 050137-31403
6/26/03
Form Retail Lease Agreement 2001.12
-8-
<PAGE>
necessary to maintain the condition of the
Property throughout the Term and all
in accordance with Sections 10, 11 and 17.
All such repairs, replacements,
renewals and additions shall be of good
quality and sufficient for the proper
maintenance and operation of the Property
and any buildings, structures,
facilities, furnishings, equipment,
fixtures, improvements and appurtenances now
or hereafter comprising same and shall be
constructed and installed in
compliance with all requirements of all
governmental authorities having
jurisdiction thereof and of the appropriate
Board of Fire Underwriters or any
successor thereof. Tenant shall not permit
anything to be done upon the Property
which would invalidate or prevent the
procurement of any insurance policies
which may at any time be required pursuant
to the provisions of this Lease.
(b) Maintenance by Landlord on Tenant's Default. If Tenant
refuses
or neglects to make any repairs as required
hereunder to the reasonable
satisfaction of Landlord, Landlord, within
seven (7) days after written demand,
may make such repairs without liability to
Tenant for any loss or damage that
may accrue to Tenant's Property or to
Tenant's business by reason thereof, and
upon completion thereof, Tenant shall pay
Landlord's costs for making such
repairs plus ten percent (10%) of such
costs for overhead upon presentation of a
bill therefor, as additional rent.
10.
ALTERATIONS.
(a) Requirements. Tenant shall not make any opening in the roof
or
exterior walls of the Building or any other
alteration, improvement or addition
to or removal from the Property
(individually, an "ALTERATION" and collectively
the "ALTERATIONS") without the prior
written consent of Landlord in each such
instance, which consent shall not be
unreasonably withheld. In the event Tenant
proposes to make any Alteration, Tenant
shall, prior to commencing such
Alteration, submit to Landlord for prior
written approval (i) detailed plans and
specifications reasonably acceptable to
Landlord (and Tenant shall thereafter
submit to Landlord for approval any and all
proposed changes to such plans and
specifications); (ii) names and addresses
of all contractors reasonably
acceptable to Landlord and copies of all
contracts with said contractors; (iii)
a detailed cost estimate, certified by the
architect who prepared the plans and
specifications; (iv) all necessary permits
evidencing compliance with all
applicable governmental rules, regulations
and requirements; (v) certificates of
insurance in form and amounts reasonably
required by Landlord, naming the
Landlord Parties as additional insureds;
and (vi) all other documents and
information as Landlord may reasonably
request in connection with such
Alteration. Notwithstanding the foregoing
to the contrary, Landlord's consent
shall not be required for any Alteration
that (i) satisfies all of the following
criteria: (A) will not affect the HVAC,
electrical, lighting, plumbing, fire
protection, security and structural units,
systems and equipment of the
Building; (B) does not require openings on
the roof or exterior walls of the
Building; and (C) does not exceed Five
Thousand Dollars ($5,000.00) in the
aggregate in any twelve (12) month period,
or (ii) satisfies all of the
following criteria ("COSMETIC WORK"): (A)
is of a cosmetic nature such as
painting, wallpapering, and carpet
installation; (B) will not affect the HVAC,
electrical, lighting, plumbing, fire
protection, security and structural units,
systems and equipment of the Building; and
(C) does not require work to be
performed inside the walls or above the
ceiling of the Premises; provided,
however, that the performance of Cosmetic
Work shall remain subject to all of
the other provisions of this Section 10.
Tenant shall pay the entire cost of any
Alteration and, if requested by Landlord,
shall deposit with Landlord prior to
the commencement of any Alteration,
security for the payment and completion of
such Alteration in form and amount required
by Landlord. Provided that the
Alteration is not Cosmetic Work, Tenant
shall pay to Landlord within thirty (30)
days after billing an amount equal to the
sum of (i) Landlord's actual and
reasonable out-of-pocket costs and expenses
paid to third parties for the review
of Tenant's plans and specifications for
such Alteration, plus (ii) Five Hundred
Dollars ($500.00). Landlord's approval of
any Alteration shall not constitute a
representation by Landlord that such
Alteration complies with applicable Laws
and insurance company requirements or will
be adequate for Tenant's use. All
Alterations (i) shall be performed in a
good and workmanlike manner, in
accordance with the plans and
specifications approved by Landlord, (ii) shall be
performed at times and in accordance with
rules, regulations and procedures
reasonably established by Landlord (other
than the imposition of the condition
of use of union labor), (iii) shall meet or
exceed the standards for
construction and quality of materials
established by Landlord for the Building,
and (iv) shall be performed in compliance
with all applicable Laws and insurance
company requirements. Upon completion of
any Alteration, Tenant shall deliver to
Landlord (i) all contractor's and
subcontractor's affidavits and full and final
waivers of lien for all labor, services or
materials, and (ii) "as-built" plans
of such Alteration.
(b) Ownership. Each Alteration, whether temporary or permanent
in
character, made by Landlord or Tenant in
and upon the Property (excepting only
Tenant's Property) including, without
limitation, any alteration, addition or
improvement to the Building or the Property
made by Tenant under the Existing
Lease, shall become Landlord's property and
shall remain upon the Premises at
the expiration or termination of this Lease
without
177305.3 050137-31403
6/26/03
Form Reta