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LEASE BETWEEN BERO & McCLURE PARTNERSHIP AND TUFCO, L.P.

Lease Agreement

LEASE BETWEEN BERO & McCLURE
PARTNERSHIP AND TUFCO, L.P. 

 | Document Parties: TUFCO TECHNOLOGIES INC | BERO & McCLURE PARTNERSHIP You are currently viewing:
This Lease Agreement involves

TUFCO TECHNOLOGIES INC | BERO & McCLURE PARTNERSHIP

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Title: LEASE BETWEEN BERO & McCLURE PARTNERSHIP AND TUFCO, L.P.
Governing Law: Wisconsin     Date: 11/22/2006
Industry: Paper and Paper Products     Sector: Basic Materials

LEASE BETWEEN BERO & McCLURE
PARTNERSHIP AND TUFCO, L.P. 

, Parties: tufco technologies inc , bero & mcclure partnership
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Exhibit 10.1

LEASE BETWEEN BERO & McCLURE
PARTNERSHIP AND TUFCO, L.P.

     THIS LEASE, made as of this 20th day of November, 2006, by and between Bero & McClure Partnership, a Wisconsin partnership, hereinafter called Lessor, and Tufco, L.P., a Delaware limited partnership, hereinafter called Lessee:

WITNESSETH:

     WHEREAS , Lessor owns the building and surrounding land located at 1055 Parkview Street, Green Bay; (“Leased Premises”) and

     WHEREAS , the Lessor and Lessee have previously entered into a Lease, dated October 15, 2002, relating to the Leased Premises, which Lease remains in full force and effect; and

     WHEREAS, the Lessor has agreed to finance substantial build-out improvements to the Leased Premises, as requested by Lessee;

     WHEREAS, the Lessor and Lessee wish to extend the term of the 2002 Lease, and therefore, enter into a new Lease agreement, as set forth below;

     NOW, THEREFORE , in consideration of the mutual promises hereinafter set forth, the parties hereto do promise and agree as follows:

     1. This Lease shall replace and supersede a Lease between the Lessor and Lessee dated October 15, 2002, and said

 


 

October 15, 2002 Lease is terminated and null and void as of the commencement date of this Lease.

     2. That the said Lessor does hereby lease to said Lessee and said Lessee agrees to lease the property described in attached Exhibit A , together with all improvements, furnishings, fixtures and equipment located on said premises, hereinafter called the “Leased Premises.”

     3. This Lease is for the following term and at the following rentals:

 

A.

 

For the month of December, 2006, a rental of $10,796.00, payable on December 1, 2006;

 

 

 

 

 

B.

 

From January 1, 2007 to March 31, 2007, for a monthly rental of $16,800.00 payable on the 1st of each month;

 

 

 

 

 

C.

 

For six (6) years, from April 1, 2007 to March 31, 2013, at an initial annual rental of $204,840.00, payable monthly in the sum of $17,070.00, on the 1st of each month for the first full year;

 

 

 

 

 

D.

 

For the next five (5) years, commencing on April 1, 2008, the rent shall be increased by 1.65% per year.

     The above rental amounts shall be sent to Lessor’s controller, Thomas Gilling, at 1335 Ridgeway Blvd., De Pere, Wisconsin 54115, until the Lessor informs the Lessee of an alternate address for delivery in writing.

     The above rental amounts include sums payable to Lessor for substantial build-out improvements to the leased premises requested by Lessee and paid for by Lessor. Lessee is authorized to make said build-out improvements to the leased premises, in an amount not to exceed $300,000.00 . If the cost of said build-out

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improvements should exceed $300,000.00, Lessee shall be solely responsible for the difference between the actual cost of the improvements and $300,000.00.

     Lessee shall have the option to renew this Lease for an additional term of five years upon the same terms and conditions as set forth herein, except for rental as herein specified. Rental for the renewal five year term shall be negotiated by the parties, except the rent for the first year of the renewal term shall not be more than $165,600.00. Lessee may exercise this option by giving written notice to Lessor no earlier than nine months and no later than six months before expiration of the original six year term set forth herein.

     4. That the rent herein specified shall be net to the Lessor in each month during the term of this Lease; that all costs, taxes, expenses and obligations of every kind relating to the leased premises (except as otherwise set forth in this Lease) which may arise or become due during the term of this Lease shall be paid by the Lessee, and that the Lessor shall be indemnified by the Lessee against any such costs, expenses and obligations. All costs, expenses and obligations assessed prior to but payable in whole or in installments after the effective date of the lease term, and all taxes assessed during the term, shall be adjusted and pro-rated, so that the Lessor shall pay its pro-rated share for the period subsequent to the lease term and the Lessee shall pay its pro-rated share for the lease term.

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     5. That the Lessee shall pay all charges for utilities, including, but not limited to gas, electricity, light, heat, power and telephone used, rendered or supplied, upon or in connection with the leased premises, and shall indemnify the Lessor against any liabilities or payments on such account. That the said Lessee shall pay all costs for lawn care and snow and ice removal and for janitorial services performed upon the leased premises and shall indemnify the Lessor against any liability or payments on such account.

     6. That the Lessee shall keep the leased premises adequately insured throughout the term of this Lease, including general liability insurance of at least $10,000,000.00 coverage and fire and extended coverage insurance of at least $1,550,000.00, with the Lessor named as an additional insured. If Lessee does not purchase such insurance and Lessor does, then Lessee shall reimburse Lessor for all insurance premiums paid by the Lessor. That Lessee shall furnish copies of said insurance policies to Lessor, by March 31 of each year, or as requested in writing by Lessor.

     The Lessor and Lessee hereby waive any right by way of subrogation that their insurers might otherwise have as against them or either of them arising out of transactions or occurrences which are the subject of payment of insurance proceeds by said insurers by reason of casualties insured pursuant to this Lease, to the extent that such subrogation rights are permitted to be

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waived by said policies, and said policies, to the extent permitted, shall recognize this waiver of subrogation.

     7. That the Lessor shall be responsible for, and shall pay for all structural repairs to the building as it existed on April 1, 1996, hereinafter 1996 building, both inside and outside. The Lessee shall be responsible for and shall pay for all nonstructural repairs to the 1996 building and for the repair of any damages caused by the negligence of Lessee and its agents and employees. Further, the Lessee shall be responsible for and shall pay for all repairs and improvements to those items added to the 1996 building by the Lessee, including all improvements, equipment, alterations and additions.

     8. That the said Lessee does promise and agree to pay said rent at the time and in the manner aforesaid, during the continuance of said term, and not to sublet said leased premises or any part thereof or assign this Lease, without the prior written consent of the Lessor; to quit and deliver the same to the Lessor peaceably and quietly at the end of said term; and also to keep the leased premises in as good condition and repair as the same are in at the commencement of said term (reasonable use and wear thereof, and damage by fire or other casualty without the fault of Lessee, only excepted). The Lessor may enter to view, repair or show the leased premises at all reasonable times, provided that Lessor gives Lessee at least 72 hours’ advance written notice, prior to entering the leased premises. It is stipulated

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that in case the leased premises should be sold during the term hereof, this Lease shall remain in full force and effect pursuant to the terms herein.

     9. If: (a) Lessee shall default in the payment of any rent, and said default continues for 10 days after written notice by Lessor, or (b) Lessee shall default in the performance of any other provision or covenant contained herein or hereafter established, and said default continues for 30 days after written notice by Lessor, or (c) the Premises shall be deserted or vacated, or (d) proceedings are commenced against the Lessee in any court under a Bankruptcy Act or for the appointment of a trustee or receiver of Lessee’s property, then this Lease (if Lessor so elects) shall thereupon become null and void, and the Lessor shall have the right to re-enter or repossess the Premises, and remove therefrom the Lessee, or other occupants thereof, and their effects, without being liable to any prosecution therefore. In such case, the Lessor may, at its option, re-let the Premises, or any part thereof, as the agent of the Lessee, and the Lessee shall be liable to Lessor for the difference between the rent stated herein for the portion of the term remaining at the t


 
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