EXHIBIT 10.20
LEASE TERMINATION AGREEMENT
THIS LEASE TERMINATION AGREEMENT (“
Agreement ”) is entered into as of the 12th day of
October, 2007, between IRET – PLYMOUTH, LLC , a
Minnesota limited liability company (“ Landlord
”), and INSIGNIA SYSTEMS, INC. , a Minnesota
corporation (“ Tenant ”).
Recitals
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A.
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Landlord (as successor in interest to 321
Corporation) and Tenant are parties to a certain “Standard
Commercial Lease” dated October 31, 2002 (as amended, the
" Lease "),
pursuant to which Lease Landlord leases to Tenant approximately
46,562 square feet (the “ Premises ”) in the building
located at 6464 Sycamore Court, Maple Grove, Minnesota (the
“ Property ”). Unless otherwise indicated, the terms defined in the
Lease shall have the same meanings when used herein.
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B.
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The Term of the Lease is scheduled to expire on
January 14, 2010. The parties have agreed to terminate the Lease,
and their respective obligations thereunder, early.
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NOW, THEREFORE, in consideration of the premises and
mutual covenants and conditions contained herein, it is hereby
agreed as follows:
1. On or
before July 31, 2008 (the “ Termination Date ”), Tenant
shall vacate the Premises and surrender possession of same to
Landlord, leaving the Premises in the condition required by the
Lease. Until the Termination Date, all of Tenant’s
obligations under the Lease, including without limitation
Tenant’s obligation to pay Base Rent and Tenant’s Pro
Rata Share of Operating Expenses, shall remain in full force and
effect.
2. Notwithstanding
anything to the contrary in the Lease, Tenant shall not remove the
following equipment from the Premises (the “
Equipment ”): (a)
existing security system (excluding external cameras); (b) existing
card entry system; (c) voice and data wiring; and (d) voice punch
panel and data patch panel including the rack-stands for data patch
panel. Tenant acknowledges and agrees that the Equipment shall
become the property of Landlord as of the Termination Date, free of
any liens or encumbrances created by or through Tenant and is
delivered in as is condition at that time. The following list of
specific items are excluded from the terms outline herein: all
external security cameras, all computers, all servers, server
cabinets, all data switches, all KVM devices, all firewall
components, all data management components, all Adtran components,
all UPS systems, all monitors, all keyboards, all input devices,
all archival devices and all media including internal and external
fixed disk, flash, tape, optical or magnetic devices.
3. Provided
that Tenant has satisfied all of its obligations under this
Agreement, and provided that the Contingency described in Section 5
of this Agreement has been satisfied or waived, then Landlord shall
pay to Tenant on or before August 1, 2008 a one-time early
termination fee of $400,000.00.
4. Subject
to the provisions of this Agreement, all of which are to survive
the Termination Date, upon full compliance by Tenant with the
term
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