Exhibit
10.11
LEASE
THIS
LEASE (the
“Lease”) is made this 4th day of September, 2007 by and
between GATEWAY, INC., a Delaware corporation (hereinafter
designated “Landlord”), and MPC-PRO, LLC , a
Delaware limited liability company (hereinafter designated as
“Tenant”).
WITNESSETH:
1.
DATA SHEET.
This Section 1 is
an integral part of this Lease and all of the terms, dates and
requirements hereof are incorporated into this Lease in all
respects. In addition to the other provisions which are elsewhere
defined in this Lease, the following terms, whenever used in this
Lease, shall have the meaning set forth in this Section 1, subject
to adjustments thereto or more detailed definitions set forth
elsewhere in this Lease. If there is any conflict between any of
the Lease provisions set forth in this Section 1 and any other
provisions of this Lease, the latter shall control.
(a)
Premises:
(1)
Building: Argentina
Building
(2)
Suite/Floor Number: Suite 220,
300 North Centennial Drive, North Sioux City, South Dakota
57049
(b)
Rentable Square Feet of
Premises: Approximately 45,552
(c)
Total Gross Rentable Square
Feet in Building: 214,594
(d)
Tenant’s Percentage
Share of Building: 21.22%
(e)
Lease Commencement Date: The
Acceptance Certificate Date
(f)
Lease Term: Five (5) years
from Lease Commencement Date
(g)
Initial Annual Base
Rent: Months 1-12 $9.60
per rentable square foot (Base Rent schedule set forth in Section 5
of this Lease).
(h)
Option Term: Two (2) five (5)
year option terms
(i)
Security Deposit:
$36,400.00
(j)
Tenant Improvement Allowance:
$0
(k)
Permitted Uses: General
office, recruiting and training purposes, and any all related and
incidental
uses.
2.
LEASED PREMISES.
A.
In consideration of all
Tenant’s undertakings hereinafter set forth, including
payment of rent as hereinafter specified, and contingent upon the
satisfaction of all of the conditions set forth in Section 3 of
this Lease (or waiver thereof), Landlord hereby leases to Tenant,
and Tenant hereby leases from Landlord, the premises (the
“Premises”) that are part of the Building located at
300 North Centennial Drive in North Sioux City, South Dakota in the
suite/floor area designated in Section 1(a)(2) of the Data Sheet
and as shown outlined on the leasing plan attached hereto as
Exhibit A, and containing the approximate number of rentable square
feet set forth in Section 1(b).
B.
During the Term of this Lease,
Tenant shall have the right to use, subject to the terms of this
Lease, the Rules and Regulations referenced in Section 16 below,
and all covenants, conditions and restrictions now or hereafter
affecting the Building, the Premises; provided, however, within
five (5) days of the Execution Date, Landlord shall deliver a copy
of any such covenants, conditions and restrictions of which
Landlord has actual knowledge to Tenant. Further, Landlord shall
promptly notify Tenant in writing of any modifications to any such
covenants, conditions and restrictions of which Landlord has actual
knowledge.
C.
During the Term of this Lease,
Tenant shall have the right at no additional cost to Tenant to the
non-exclusive use of the existing 500 KW generators upon the
following terms and conditions: (i) in no event shall Landlord be
deemed to be making any representation and/or warranty with respect
to the condition or fitness of such generator except as set forth
herein; (ii) Tenant shall be responsible for its pro-rata cost of
all maintenance and operation
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associated with the
generator (as billed by Landlord within thirty (30) days following
the delivery of such bill, as additional rent due under this Lease)
as well as all costs associated with segregating circuits of the
existing generator, or running new feeds to appropriate
distribution panels; (iii) Tenant shall use such generator in
accordance with applicable laws, codes, ordinances and regulations;
and (iv) Tenant shall obtain the prior written consent of Landlord
to any modifications, alterations, improvements or work on such
generators.
D.
Tenant hereby covenants and
agrees that it shall have the right to exclusive use of the
building equipment, fixtures and communication cabling located in
the Premises which do not service other premises in the Building
throughout the Lease Term at no cost or expense to Tenant. Landlord
and Tenant acknowledge and agree that Landlord is providing such
property to Tenant for its use in an as-is basis without
representation or warranty of any kind whatsoever, including the
disclaimer of any warranties of merchantability, fitness for a
particular purpose or any other thing or nature whatsoever. Tenant
shall be responsible for the cost of any transportation and
reconfiguration of any such items.
E.
Pending completion of fit-up
for the Premises, Tenant shall have the use of temporary space
provided by Landlord under the same terms and conditions as this
Lease.
F.
Subject to existing rights of
other Tenants, Tenant shall have a right of first refusal to enter
into a lease for the remaining approximately 63,641 square feet of
space adjacent to the Premises on the second floor of the Building
on the same terms and conditions contained in this Lease (the
“Right of First Refusal”). In the event Landlord
desires to lease such additional 63,641 square feet of space,
Landlord shall, subject to existing rights of other Tenants, offer
the space to Tenant by notifying the Tenant in writing (the
“Right of First Refusal Notice”). If Tenant does not
exercise its Right of First Refusal by notifying Landlord in
writing of such exercise within five (5) days after having received
the Right of First Refusal Notice, Landlord shall be free to lease
the space to any third party.
3.
CONDITIONS TO CLOSING.
A.
Landlord’s obligation to
lease the Premises to Tenant shall be both subject to and
conditioned upon the satisfaction of all of the following
conditions:
1.
The Closing (as defined in the
Asset Purchase Agreement) of the transaction contemplated by the
Asset Purchase Agreement among Landlord, Tenant, MPC Corporation
and Gateway Technologies, Inc. dated September 4, 2007 (the
“Asset Purchase Agreement”).
2.
The termination or expiration
of the right of first refusal to lease the Premises held by
Alorica, Inc. (“Alorica”) pursuant to that Lease dated
August 10, 2006 by and between Gateway Inc. and Alorica Inc. (the
“Alorica Lease Agreement”).
3.
Landlord shall have received
from Tenant the declaration in the form attached hereto as Exhibit
B specifying the information called for therein (the
“Acceptance Certificate”).
4.
Landlord shall have received
from Tenant $36,400.00 to be held as collateral security for the
payment of Base Rent, Additional Rent and any other sums payable by
Tenant under this Lease, and for the faithful performance by Tenant
of all other covenants, conditions and agreements of this Lease,
pursuant to Section 7 of this Agreement.
B.
Tenant’s obligation to
lease the Premises from Landlord shall be both subject to and
conditioned upon the satisfaction of all of the following
conditions:
1.
The Closing (as defined in the
Asset Purchase Agreement) of the transaction contemplated by the
Asset Purchase Agreement.
2.
The termination or expiration
of the right of first refusal to lease the Premises held by Alorica
pursuant to the Alorica Lease Agreement.
3.
Tenant’s acceptance and
approval of the Premises (which approval may be granted or withheld
in its sole and absolute discretion) after having completed a
“walk-through” inspection and review of the
Premises.
4.
TERM AND COMMENCEMENT OF
TERM.
A.
The term of this Lease (the
“Term”) shall commence on the date (the “Lease
Commencement Date”)
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that the Acceptance
Certificate is delivered by Tenant to Landlord (the
“Acceptance Certificate Date”), provided that all of
the other conditions to closing set forth in Section 3 have been
satisfied or waived.
B.
The Term shall end on the
expiration of the fifth (5 th ) year following the Lease
Commencement Date unless the Term terminates sooner pursuant to any
other provision of this Lease or pursuant to law.
C.
Provided that
(i) Tenant has not been in
default under the Lease, and is not then in default under this
Lease and no event or
circumstance has occurred which, with the passage of time or the
giving of notice, or both, could result in such a default, and/or
(ii) Tenant has not assigned this Lease or sublet all or any
portion of the Premises , Tenant may elect to extend the Lease
Term for two (2) five (5) year renewal terms (each an “Option
Term”) by giving Landlord written notice of its desire to do
so at least nine (9) months prior to the end of the current Lease
Term. In the event Tenant elects to extend the Lease Term as herein
provided, the Lease shall automatically be extended for such Option
Term, upon the same terms and conditions as provided for herein,
except that the Base Rent shall be an amount equal to ninety-five
percent (95%) of the then fair market rental value of the Premises
(as determined pursuant to Exhibit E attached hereto).
5.
CONDITION OF PREMISES.
A.
Tenant hereby acknowledges and
agrees that it is to demise the Premises in an “AS-IS”
condition and Tenant’s taking possession of the Premises
shall be conclusive evidence as against Tenant that the Premises
were in good order and satisfactory condition when Tenant took
possession. No promise of Landlord to alter, remodel or improve the
Premises, and no representation respecting the condition of the
Premises has been made by Landlord to Tenant. Notwithstanding any
other provision herein to the contrary, Landlord shall be
responsible for all plans, specifications and costs associated with
demising the Premises. Upon the expiration of the term hereof, or
upon any earlier termination of the term hereof or of
Tenant’s right to possession, Tenant shall surrender the
Premises in at least as good condition as at the commencement of
the term of this Lease, ordinary wear and tear excepted.
B.
Landlord and Tenant
acknowledge and agree that any and all alterations to be installed
by Tenant within the Premises upon the inception of the Term of
this Lease shall be subject to the approval of Landlord (which
approval shall not be unreasonably withheld, conditioned or
delayed). Any and all such alterations shall comply with all of the
terms and conditions of this Lease and no approval by Landlord
shall be deemed a representation and/or warranty by Landlord as to
the sufficiency of same or the compliance of same with any and all
applicable laws, codes, rules, ordinances or regulations. Tenant
shall perform any and all such work at its sole cost and expense
and in a lien-free manner. Notwithstanding the foregoing, Tenant
may install and maintain furnishings, equipment, movable
partitions, business equipment and other trade fixtures (the
“Trade Fixtures”) in the Premises, provided that the
Trade Fixtures do not become an integral part of the Premises or
the Building, without Landlord’s prior consent. Tenant shall
promptly repair any damage to the Premises or the Building caused
by any installation or removal of such Trade Fixtures.
6.
RENT.
A.
Tenant shall pay to Landlord
the following rent under this Lease:
1.
Commencing on the Lease
Commencement Date, base rent (“Base Rent”) payable in
advance in equal monthly installments (“Monthly Base
Rent”) pursuant to the schedule below. The first installment
of Monthly Base Rent shall be due and payable on the execution of
this Lease in an amount equal to a full month’s installment,
and the remaining successive installments shall be due and payable
on the first day of each calendar month during the Term. If the
Rent Commencement Date occurs on a day other than the first day of
a month, Base Rent from the Rent Commencement Date until the first
day of the following month shall be prorated at the rate of
one-thirtieth (1/30) of the Monthly Base Rent for each day, and any
excess paid as the first installment on the execution of this Lease
shall be credited toward the second installment.
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Period
|
|
Monthly Base Rent
|
|
|
|
|
|
|
|
Month 1 –
12
|
|
$
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36,441.60
|
|
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Month 13 –
24
|
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$
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37,542.44
|
|
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Month 25 –
36
|
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$
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38,681.24
|
|
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Month 37 –
48
|
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$
|
39,858.00
|
|
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Month 49 –
60
|
|
$
|
41,072.72
|
|
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2.
Commencing on the Lease
Commencement Date, additional rent (“Additional Rent”)
consisting of all other sums of money as shall become due from
Tenant under this Lease.
3.
All Base Rent and Additional
Rent payable under this Lease shall be collectively referred to
herein as “Rent.”
B.
Tenant shall pay all Rent
without demand, deduction, set-off or counterclaim. If Tenant fails
to make any payment of Rent or other sums required to be paid to
Landlord hereunder within five (5) business days of any payment due
date, Tenant shall pay to Landlord, as Additional Rent, for each
month or part thereof until paid, a late fee equal to five percent
(5%) of the amount due to cover Landlord’s administrative
expenses, and interest until paid at the Default Rate provided
under this Lease; provided, however, that should such late fee or
interest at any time be deemed to violate any applicable usury
laws, the late fee or interest charged shall be the highest
permissible by such laws. For default in the payment of Additional
Rent, Landlord shall have the same remedies as for a default in the
payment of Base Rent. If Landlord shall at any time or times accept
any Rent after it has become due and payable, such acceptance shall
not excuse delay at subsequent times, nor constitute a waiver of
any of Landlord’s rights under this Lease.
7.
SECURITY DEPOSIT.
Tenant shall pay
to Landlord Thirty Six Thousand Four Hundred Dollars ($36,400.00)
to be held as collateral security for the payment of Base Rent,
Additional Rent and any other sums payable by Tenant under this
Lease, and for the faithful performance by Tenant of all other
covenants, conditions and agreements of this Lease; the unused
portion of the Security Deposit to be repaid to Tenant after the
termination of this Lease or any renewal thereof within sixty (60)
days of such termination, provided Tenant shall have made all such
payments of this Lease. The Security Deposit shall not be
mortgaged, assigned, transferred or encumbered by Tenant without
the written consent of Landlord, and any such act on the part of
Tenant shall be without force and effect and shall not be binding
upon Landlord. If any of the rents herein reserved or any other sum
payable by Tenant to Landlord shall be overdue and unpaid, or
should Landlord make payments on behalf of Tenant, or should Tenant
fail to perform any of the terms of this Lease, then Landlord at
its option and without prejudice to any other remedy that Landlord
may have on account thereof, may appropriate and apply the entire
Security Deposit or so much thereof as may be necessary to
compensate Landlord toward the payment of Base Rent, Additional
Rent or any other sums due Landlord pursuant to this Lease, or loss
or damage sustained by Landlord due to such breach on the part of
Tenant; and Tenant upon demand shall forthwith restore the Security
Deposit to the original sum deposited. Tenant’s failure to
restore said deficiency within ten (10) business days after
receiving Landlord’s written notice thereof shall constitute
a Default hereunder. In the event of bankruptcy or other
creditor-debtor proceedings against Tenant, the Security Deposit
shall be deemed to be applied first to the payment of Rent and
other charges due Landlord for all periods prior to the filing of
such proceedings.
In the event of a
sale or transfer of Landlord’s estate or interest in the Land
and Building, and Landlord’s successor-in-interest assumes
Landlord’s obligations under this Lease, Landlord shall have
the right to transfer the Security Deposit to the vendee or
transferee, and Landlord shall be considered released by Tenant
from all liability for the return of the Security Deposit. Tenant
shall look solely to the transferee for the return of the Security
Deposit, and it is agreed that all of the foregoing shall apply to
every transfer or assignment made of the Security Deposit to a new
transferee. No Mortgagee or purchaser of any or all of the Building
at any foreclosure proceeding brought under the provisions of any
Mortgage shall (regardless of whether the Lease is at the time in
question subordinated to the lien of any Mortgage) be liable to the
Tenant or any other person for any or all of such sum (or any other
or additional security deposit or other payment made by the Tenant
under the provisions of this Lease), unless the Landlord has
actually delivered it in cash to such Mortgagee or purchaser, as
the case may be. In the event of any rightful and permitted
assignment of Tenant’s interest in this Lease, the Security
Deposit shall be deemed to be held by Landlord as a deposit made by
the assignee, and Landlord shall have no further liability to the
assignor with respect to the return of the Security
Deposit.
No right or remedy
available to Landlord or Tenant as provided in this Section shall
preclude or extinguish any other right or remedy to which Landlord
or Tenant may be entitled.
8.
ADDITIONAL RENT TO COVER
OPERATING EXPENSES.
A.
For each calendar year of the
Term, Tenant shall pay to Landlord in the manner provided in this
Section 8, as Additional Rent, Tenant’s Share of Operating
Expenses in connection with Landlord’s operation and
maintenance of the Argentina Building (provided that by the terms
of this Lease Tenant does not contract directly for such service)
during the initial Lease Term and any extension thereof. Such
Operating Expenses shall include, but not be limited to,
electricity, gas or other utility costs, property management fee
(provided, however, Tenant’s share of such
4
property management fee
shall not exceed five percent (5%) of Base Rent calculated on an
annual basis), real estate taxes, common area expenses, the
amortized cost of capital improvements (as distinguished from
replacement parts or components installed in the ordinary course of
business) which are intended to maintain the quality, appearance or
safety of the Building and/or the project in which the Building is
located, reduce other operating expenses or increases thereof (but
not in excess of the reasonably estimated savings), or which are
required to bring the Building and/or the project into compliance
with applicable laws and building codes enacted subsequent to the
date of this Lease, and insurance costs.
Operating Expenses
shall not include (i) capital improvements except as authorized by
this Lease; (ii) costs of special services rendered to individual
tenants (including Tenant) for which a special charge is made;
(iii) ground rents or interest and principal payments on loans or
indebtedness secured by the Building; (iv) costs of leasehold
improvements for Tenant or other tenants of the Building; (v) costs
for which Landlord is reimbursed by other tenants of the Building
other than through payment of tenants’ shares of Operating
Expenses and Taxes; (vi) leasing commissions, attorneys fees, and
other expenses incurred in connection with leasing space in the
Building or enforcing such leases; (vii) depreciation or
amortization; (viii) costs, fines or penalties incurred due to
Landlord’s violation of any law; (ix) advertising and
promotional expenses; (x) costs incurred because Landlord or any
other tenant violated the terms of any lease, contract or other
legal obligation; and (xi) costs of repairs or other work needed
due to fire, windstorms, or other casualty or cause actually
insured against by Landlord, except for casualty insurance
deductible amounts.
B.
Prior to the determination of
the actual amount of Operating Expenses, Tenant shall make monthly
installment payments toward such share on an estimated basis, based
on Landlord’s estimate of the share. Tenant shall pay
Landlord on the first day of each month of the calendar year
one-twelfth (1/12th) of the Landlord’s estimate.
C.
After the end of each calendar
year, Landlord shall determine the amount, if any, by which the
actual Operating Expenses for the calendar year varied from the
estimated Operating Expenses. Landlord shall provide to Tenant a
statement (the “Expense Reimbursement Statement”) of
this determination no later than April 1st of the following
calendar year. Within twenty (20) days after delivery of the
Expense Reimbursement Statement for each calendar year, Tenant
shall pay to Landlord any deficiency between the amount shown and
the payments made by Tenant toward such amount in accordance with
paragraph 7. In the case of excess payments, Tenant shall be
credited with the excess toward subsequent estimated payments. Each
Expense Reimbursement Statement provided by Landlord pursuant to
paragraph 7 shall be conclusive and binding upon Tenant unless
within thirty (30) days after the receipt of the Expense
Reimbursement Statement Tenant notifies Landlord that it disputes
the correctness of the Expense Reimbursement Statement and
specifies with particularity the respects in which the Expense
Reimbursement Statement is claimed to be incorrect. Pending
determination of the dispute, Tenant shall pay any amounts stated
to be due from Tenant in accordance with said Expense Reimbursement
Statement, but such payment shall be without prejudice to
Tenant’s position. Tenant shall have a period of sixty (60)
days after delivery of the Expense Reimbursement Statement, upon at
least fifteen (15) days notice to Landlord, in which to inspect
during normal business hours, and at it expense, the appropriate
books and records of Landlord relating to Real Estate Taxes,
Insurance Costs and Operating Expenses for the purpose of verifying
said Expense Reimbursement Statement. If Tenant fails to review the
records or fails to give timely written notice to Landlord as
required above, then Tenant shall be deemed to have accepted the
Expense Reimbursement Statement.
D.
Nothing contained in this
Section 8 shall be interpreted at any time to reduce the Monthly
Base Rent payable under this Lease below the amounts specified for
such Rent in Sections 6 and 7.
9.
SALES, USE OR OTHER
TAXES.
If, during the
Term, any governmental authority having jurisdiction levies,
assesses or imposes any tax on Landlord, the Premises, the
Building, the Land, or the Rent payable hereunder in the nature of
a sales tax, a use tax, business license tax or any other tax
except (i) income taxes, (ii) estate or inheritance taxes, or (iii)
ad valorem real estate taxes (payment of which is provided for in
Section 8 as a part of Operating Expenses), Tenant shall pay the
same to Landlord as Additional Rent upon the earlier to occur of
(1) fifteen (15) days following receipt by Tenant of notice of the
amount of such tax or (2) at the time of, and together with, the
first payment of Monthly Base Rent due following receipt by Tenant
of notice of the amount of such tax. If any such tax is levied,
assessed, or imposed in such manner that the amount of the tax
required to be paid by Tenant is not ascertainable because the tax
relates to more than the Premises or the rents payable hereunder,
then Tenant shall pay a share of such taxes equal to the rentable
square feet of the Premises divided by the total gross rentable
square feet of the Building, as set forth in Section 1 of this
Lease if such tax relates to the entirety of the Building, and if
such tax is calculated or assessed other than by the entirety of
the Building, then Tenant’s share thereof shall be equitably
determined by Landlord.
5
10.
USE.
A.
Tenant shall use and occupy
the Premises solely for general office, recruiting and training
purposes conducted by the Gateway operations acquired under the
Asset Purchase Agreement and for no other purpose without the
written consent of Landlord.
B.
Tenant shall not commit
nuisance or waste on the Premises. Tenant shall not use or occupy
the Premises or use the Building or any portion of either for any
unlawful, disorderly, or hazardous purpose, or in a manner that
will obstruct or interfere with the rights of other occupants or
their invitees or in any way injure or annoy them. Tenant shall not
conduct or permit any activity, or place any equipment, in or about
the Premises or the Building that shall in any way increase the
rate of insurance premiums on the Building or on any personal
property kept in the Building, or conflict with fire laws or
regulations or with any insurance policy on the Building or such
personal property. Landlord shall have the right to prescribe the
maximum weight and position of safes and other heavy equipment or
fixtures that Tenant desires to install in the Premises.
C.
Landlord further covenants and
agrees during the Term and any renewals or extensions thereof to
use its best efforts to assist Tenant in the procurement of
economic development, government aid, or similar assistance which
may be available for Tenant, including providing any required
Landlord consents, verifications, confirmations or certificates on
behalf of Tenant not to be unreasonably withheld or
delayed.
D.
Tenant shall comply at its
expense with all present and future laws, ordinances and
requirements of all governmental authorities that pertain to Tenant
or its use of the Premises, including, without limitation, all
federal and state occupational health and safety and handicap
access requirements, whether or not Tenant’s compliance will
necessitate expenditures or interfere with its use and enjoyment of
the Premises. Tenant shall not generate, handle, store or dispose
of hazardous or toxic materials (as such materials may be
identified in any federal, state or local law or regulation) in the
Premises or project without the prior written consent of Landlord;
provided that the foregoing shall not be deemed to proscribe the
use by Tenant of customary office and cleaning supplies in normal
quantities so long as such use comports with all applicable laws.
Tenant agrees that it shall promptly complete and deliver to
Landlord any disclosure form regarding hazardous or toxic materials
that may be required by any governmental agency. Tenant shall also,
from time to time upon request by Landlord, execute such
commercially reasonable affidavits concerning Tenant’s best
knowledge and belief regarding the presence of hazardous or toxic
materials in the Premises. Landlord shall have the right at any
time to perform an assessment of the environmental condition of the
Premises and of Tenant’s compliance with this Section at
Landlord’s sole cost and expense. As part of any such
assessment, Landlord shall have the right, upon reasonable prior
notice to Tenant, to enter and inspect the Premises and to perform
tests (including physically invasive tests), provided those tests
are performed in a manner that minimizes disruption to Tenant.
Tenant will cooperate with Landlord in connection with any
assessment by, among other things, promptly responding to inquiries
and providing relevant documentation and records. Landlord shall
have no liability to Tenant with respect to the results of any such
assessments, inspections or tests. Notwithstanding the above, the
reasonable cost of the assessment/testing shall be reimbursed by
Tenant to Landlord if such assessment/testing determines that
Tenant failed to comply with the requirements of this Section, and
in that event Tenant shall accept custody and arrange for the
disposal of any hazardous materials found in the test samples. In
all events Tenant shall indemnify Landlord in the manner elsewhere
provided in this Lease from any release of hazardous or toxic
materials caused by Tenant, its agents, employees, contractors,
subtenants or licensees. The foregoing covenants shall survive the
expiration or earlier termination of this Lease.
Landlord hereby represents and warrants to
Tenant that, to the best of Landlord’s knowledge, as of the
execution of this Lease and as of the delivery of the Premises to
Tenant: (a) no hazardous or toxic materials are, will be, or have
been stored, treated, disposed of, or incorporated into, on, or
around the Premises in violation of any applicable statutes,
ordinances or regulations; (b) the premises are in material
compliance with all applicable environmental, health, and safety
requirements; and (c) any business heretofore operated on the
Property has disposed of its waste in accordance with all
applicable statutes, ordinances, and regulations. Landlord has no
knowledge of any pending or threatened action or proceeding arising
out of the condition of the Premises or any alleged violation of
environmental, health, or safety statutes, ordinances or
regulations. In no event shall Tenant be liable for, or responsible
for any remediation efforts related to, hazardous or toxic
materials that impact the Premises, Building or Land prior to the
Lease Commencement Date or that impact the Premises, Building or
Land after the expiration or earlier termination of this Lease.
Further, in no event shall Tenant be liable for any contamination
arising out of or related to the acts or omissions of Landlord, its
agents, employees, contractors and other tenants on the Premises or
in the Building or the Land.
6
11.
CARE OF THE PREMISES.
Tenant shall at
its expense keep the Premises (including all improvements,
Landlord’s furniture, fixtures, and equipment, and all other
property contained in the Premises) in a neat and clean condition,
and in good order and repair, and shall surrender the Premises at
the end of the Term in as good order and condition as they were at
the commencement of the Term, reasonable wear and tear excepted.
Tenant shall at its expense obtain janitorial service for the
Premises in a manner sufficient to maintain same in a neat and
clean condition.
12.
ALTERATIONS BY TENANT.
A.
Tenant shall not make or
permit any improvements, alterations, fixed decorations,
substitutions or modifications, structural or otherwise
(“Alterations”), to the Premises or to the Building
without the prior consent of Landlord (both as to whether any such
alterations may be made at all and as to the manner in which they
may be made) in each instance (which approval shall not be
unreasonably withheld, conditioned or delayed). As used in this
Section, the term “Alterations” includes, but is not
limited to, the installation, modification or removal of carpeting;
partitions; counters; doors; air conditioning equipment, including
ductwork; plumbing; piping; lighting fixtures; electrical wiring of
any kind, hardware; locks; ceilings;, windows; and window and wall
coverings.
B.
Alterations may be made only
at Tenant’s expense, by contractors or subcontractors
approved by Landlord, which approval shall not be unreasonably
withheld or delayed, and only after (i) Tenant has obtained all
necessary permits from governmental authorities having jurisdiction
and furnished copies of the permits to Landlord, (ii) Tenant has
submitted complete plans and specifications to Landlord, and (iii)
Landlord has given Tenant its approval as provided above. Landlord
shall have the right to have the making of any Alterations
supervised by its architects, contractors, or workmen at
Tenant’s expense. If any mechanic’s,
materialman’s or similar lien is filed against the Premises,
the Building, or the Land for work done or materials supplied to
Tenant, or claimed to have been done for or supplied to Tenant, the
lien shall be discharged by Tenant within ten (10) days thereafter,
solely at Tenant’s expense, by paying off or bonding the
lien, and Tenant shall indemnify and hold Landlord harmless from
any and all expenses, liens, claims, or damage to persons or
property including, but not limited to, the Building, that may
arise from the making of any Alterations. If any Alteration is made
without the prior consent of Landlord, Landlord may correct or
remove the Alteration at Tenant’s expense. Following
completion of the Alterations, Tenant shall deliver to Landlord a
complete set of “as built” plans on electric media
showing the Alterations, or shall reimburse Landlord for any
expense incurred by Landlord in causing the Building plans to be
modified to reflect the Alterations.
13.
EQUIPMENT.
Tenant shall not
install or operate in the Premises any equipment or other
machinery, other than standard size office copiers, and other
machines requiring similar low electric consumption without (i)
first obtaining the consent of Landlord (who may condition such
consent upon the payment by Tenant of Additional Rent in
compensation for additional consumption of utilities or additional
wiring needed for the equipment of machinery), and (ii) securing
any necessary permits from governmental authorities and utility
companies and furnishing copies of such permits to Landlord. Tenant
shall not install any equipment or machinery that necessitate any
changes, replacements or additions, to, or in the use of, the
water, heating, plumbing, air conditioning, or electrical systems
of the Building without first obtaining the prior consent of
Landlord (which approval shall not be unreasonably withheld
or delayed). Business machines and equipment belonging to Tenant
that cause noise or vibration that may be transmitted to any part
of the Building to such a degree as to be objectionable to Landlord
or to any other tenant shall be installed and maintained by Tenant,
at Tenant’s expense, only on vibration eliminators or other
devices sufficient to eliminate the noise and vibration.
14.
ALTERATIONS, EQUIPMENT AND OTHER
PROPERTY BELONGING TO LANDLORD/REMOVAL OF PERSONAL
PROPERTY.
A.
Any Alterations and other
improvements and any equipment, machinery, furniture, furnishings,
and other property, installed or located in the Premises or the
Building by or on behalf of Landlord or Tenant (except for
“Tenant’s Personal Property,” as hereinafter
defined) shall immediately become the property of Landlord and
shall remain upon and be surrendered to Landlord with the Premises
as a part thereof at the end of the Term; provided, however, that
if Tenant is not in default under this Lease, Tenant shall have the
right to remove, prior to the end of the Term, Tenant’s
Personal Property, and provided, further, that if Landlord should
elect that any Alterations be removed at the end of the Term,
Tenant shall cause the same to be removed at Tenant’s expense
or reimburse Landlord for doing so. The term “Tenant’s
Personal Property” shall mean all equipment, machinery,
improvements, furniture, fixtures, furnishings and other property
now or hereafter installed or placed in or on the Premises or the
Building by and at the
7
sole expense of Tenant
with respect to which Tenant has not been granted any credit or
allowance by Landlord and which (i) is not used, or was not
procured for use, in connection with the operation, maintenance or
protection of the Premises or the Building, (ii) is removable
without damage to the Premises or the Building, and (iii) is not a
replacement of any property of Landlord, whether such replacement
is made at Tenant’s expense or otherwise. Notwithstanding any
other provision of this Lease, Tenant’s Personal Property
shall not include any Alterations, or any improvements or other
property installed or placed in or on the Premises as part of
Landlord’s Work, whether or not any such Alterations,
improvements, or other property were at Tenant’s
expense.
B.
Tenant shall remove all
Tenant’s Personal Property and Trade Fixtures from the
Premises at the termination of this Lease. Any property belonging
to Tenant or any other person that is left in the Premises after
the date the Lease is terminated for any reason shall be deemed to
have been abandoned. In such event, Landlord shall have the right
to declare itself owner of such property and to dispose of it in
whatever manner Landlord considers appropriate without waiving its
right to claim from Tenant all expenses and damages caused by
Tenant’s failure to remove the property, and Tenant shall not
have any right to compensation or claim against Landlord for the
value of such property.
15.
LANDLORD’S ACCESS TO
PREMISES.
Landlord and its
agents may, at any reasonable time upon reasonable prior notice
(except in an emergency, when no such notice shall be required) and
without liability to Tenant, other than liability for personal
injuries and damages resulting directly from the gross negligence
of Landlord or its servants, enter the Premises to examine them or
to make alterations or repairs or for any purpose which Landlord
considers necessary for the repair, operation, or maintenance of
the Building; provided, however, that in the case of an emergency,
Landlord may enter the Premises at any time, with or without
notice, whether or not said entry is reasonable. Tenant shall allow
the Premises to be exhibited by Landlord or its agents upon
forty-eight (48) hours prior notice (i) to any representative of
lending institutions or to any prospective purchaser or purchasers
of the Building, and (ii) during the last twelve (12) months of the
Term or renewal term, to prospective tenants of the Premises or
other space in the Building.
16.
SERVICES AND UTILITIES.
So long as Tenant is not
in default under this Lease, Landlord shall provide the following
facilities and services to Tenant the costs of which shall be
included as Operating Expenses:
A.
Central heating and air
conditioning during the seasons of the year when these services are
normally and usually furnished, and within the temperature ranges
and in such amounts normally or usually furnished in comparable
office buildings in North Sioux City, South Dakota with Tenant to
pay its proportionate share of the cost of utilities incurred to
provide such heating and air conditioning within thirty (30) days
of Landlord’s invoice therefor.
B.
Cleaning of the lobby in
Landlord’s standard manner and provision of water services to
lavatories as normally or usually furnished in comparable office
buildings in North Sioux City, South Dakota.
C.
Electrical facilities to
furnish sufficient electrical power to Tenant’s equipment
installed in accordance with Section 13 hereof; provided, however,
Tenant shall be responsible to pay any and all costs associated
with the use and consumption of any such electrical utility
services as Operating Expenses.
D.
Access to the Premises on a
full-time twenty-four (24) hour basis, subject to such regulations
as Landlord may impose for security reasons. Landlord shall have no
obligation whatsoever to provide guard service or other security
measures for the benefit of the Premises or the Project. Tenant
assumes all responsibility for the protection of Tenant, its
employees, agents, invitees and property from acts of third
parties. Nothing herein contained shall prevent Landlord, at its
sole option, from providing security protection for the Project or
any part thereof, in which event the non-capital cost thereof shall
be included within the definition of Operating Expenses. Tenant
hereby acknowledges that existing security improvements are
satisfactory.
Any failure by
Landlord to furnish the foregoing service resulting from
Unavoidable Delays, as hereinafter defined, or from temporary
interruption of the foregoing services due to repairs or
maintenance, shall not render Landlord liable in any respect for
damages to either person or property, nor be construed as an
eviction of Tenant, nor cause an abatement of rent, or relieve
Tenant from Tenant’s obligations under this Lease; provided
Landlord uses commercially reasonable efforts to restore such
services. For purposes of this Section 16 and of Section 32, the
term “Unavoidable Delays” shall mean any delays due to
strikes; labor disputes; shortages of material, labor or energy;
acts of God; governmental restrictions; enemy action; civil
commotion; fire; unavoidable casualty or other causes beyond the
control of Landlord and which do not arise from the gross
negligence or willful misconduct of Landlord, its officers, agents,
employees and licensees.
8
If any public
utility or governmental body shall require Landlord or Tenant to
restrict the consumption of any utility or reduce any service for
the Premises or the Building, Landlord and Tenant shall comply with
such requirements whether or not the utilities and services
referred to in this Section are thereby reduced or otherwise
affected, without reduction or adjustment of Rent
hereunder.
Landlord and its
agents shall be permitted reasonable access to the Premises, and
the right to install facilities within or through the Premises, in
order to install and service the systems deemed necessary by the
Landlord to provide to other tenants of the Building the services
and utilities referred to in this Section.
17.
RULES AND REGULATIONS.
Tenant and its
agents and invitees shall abide by and observe the rules and
regulations attached hereto as Exhibit C and such other rules and
regulations as may be promulgated from time to time by Landlord for
the operation and maintenance of the Building, provided such rules
and regulations do not unreasonably interfere with Tenant’s
permitted use of the Premises and do not contradict the terms and
provisions of this Lease. Nothing contained in this Lease shall be
interpreted to impose upon Landlord any duty or obligation to
enforce any such rules and regulations, or the provisions contained
in any other lease against any other tenant, and Landlord shall not
be liable to Tenant for any violation of these rules, regulations,
or lease provisions by any other tenant or its agents or
invitees.
18.
INDEMNIFICATION.
A.
Tenant shall indemnify and
hold Landlord harmless from and against any and all claims,
demands, liabilities, and expenses, including attorney’s
fees, arising from Tenant’s use of the Premises or from any
act permitted, or any omission to act, in or about the Premises or
the Building by Tenant or its agents, employees, contractors, or
invitees, or from any breach or default by Tenant of this Lease;
provided, however, nothing contained herein shall require Tenant to
indemnify Landlord against matters resulting from the gross
negligence or willful acts or omissions of Landlord or
Landlord’s agents, employees, contractors or invitees, or
other Tenant or its agents, employees, contractors, or invitees. In
the event any action or proceeding shall be brought against
Landlord by reason of any such claim, Tenant shall defend the same
at Tenant’s expense by counsel reasonably satisfactory to
Landlord.
B.
Landlord shall indemnify and
hold Tenant harmless from and against any and all claims, demands,
liabilities, and expenses, including attorney’s fees, arising
from Landlord’s ownership and use of the Premises and the
Building, or from any act permitted, or any omission to act, in or
about the Premises or the Building by Landlord or its agents,
employees, contractors, or invitees, or from any breach or default
by Landlord of this Lease; provided, however, nothing contained
herein shall require Landlord to indemnify Tenant against matters
resulting from the negligence or willful acts or omissions of
Tenant or Tenant’s agents, employees, contractors or
invitees, or other Tenant or its agents, employees, contractors, or
invitees.
19.
REPAIR OF DAMAGE CAUSED BY
TENANT.
All uninsured
injury or damage to the Premises or the Building caused by Tenant
or its agents or invitees shall be repaired by Landlord at
Tenant’s expense.
20.
LANDLORD NOT LIABLE FOR DAMAGE TO
PERSONAL PROPERTY OR PERSON.
All property of
Tenant, its agents or invitees, or of any other person, in or on
the Premises or the Building, shall be and remain at the sole risk
of Tenant or such agent, invitee or person. Landlord shall not be
liable for any damage to or theft or loss of such property, whether
or not caused by the act or omission of any person, including
Landlord and its agents or invitees, or by the bursting, leaking or
overflowing of water, sewer, steam or sprinkler pipes, or heating
or plumbing fixtures; air conditioning or heating failure; gas
odors; noise; or any other act or thing, unless such damage to or
theft or loss of such property results directly from the gross
negligence or willful misconduct of Landlord and then only to the
extent that Tenant, its agents, invitees, or any other persons are
not compensated therefor by insurance. In no event shall Landlord
be liable for any interruption of or loss to Tenant’s
business that may result from any of the acts or causes described
above. Landlord shall not be liable for any personal injury to
Tenant, its agents or invitees, or to any other person, arising
from the use, occupancy
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