Exhibit 10.6
LEASE
THIS LEASE
is made as of December 15 ,
2003, by and between VADNAIS HEIGHTS INVESTMENT COMPANY , a
Minnesota general partnership, MCH CAPITAL, LLC , a
Minnesota limited liability company, ROBERT TIPLER and
RICHARD K. MATHEWS (collectively, “Lessor”), and
ANGEION CORPORATION , a Minnesota corporation and MEDICAL
GRAPHICS CORPORATION , a Minnesota corporation (collectively,
“Tenant”).
RECITALS
:
Lessor and Tenant are parties to
that certain Lease with an original date of March 6, 1985, as
amended by eight (8) written amendments and one (1) Renewal of
Lease dated December 21, 2001 (collectively, the “Original
Lease”) regarding certain real property located at 350
Oakgrove Parkway, Vadnais Heights, Minnesota with a building
consisting of approximately 52,254 sq. ft (the
“Premises”). The Premises includes without
limitation the exterior portion of the real property, specifically
including the parking lot and all exterior landscaped areas of the
real property.
The term of the Original Lease will
expire as of June 30, 2004 and Lessor and Tenant desire to enter
into this Lease regarding Tenant’s continued occupancy of the
Premises.
NOW, THEREFORE
, in consideration of the foregoing
and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Lessor and Tenant
agree as follows:
1.
Term . The term of this Lease
(“Term”) shall be five (5) years, commencing on July
1 , 2004, and terminating on June 30, 2009.
3.
Use of Premises
. Tenant may use the Premises
for any lawful use. Tenant agrees that Lessor shall have no
liability or obligation to make any alterations, improvements or
repairs of any kind on or about the Premises or the building or
buildings of which they are a part, or the equipment, fixtures,
plumbing, appliances, or machinery in, upon, or serving same, or
the streets, alleys, areas, area-ways, or passages adjoining or
appurtenant thereto, except as specifically set forth in this
Lease.
4.
Rent . Tenant agrees to pay Lessor rent in the
annual amounts set forth in this Section 4, which shall be payable
in monthly installments, payable in advance on the first day of
each and every month for and during the full term of this Lease, at
the office of Lessor.
|
First Year
|
|
$285,600 per year
|
|
$23,800 per month
|
|
Second Year
|
|
$285,600 per year
|
|
$23,800 per month
|
|
Third Year
|
|
$303,600 per year
|
|
$25,300 per month
|
|
Fourth Year
|
|
$309,600 per year
|
|
$25,800 per month
|
|
Fifth Year
|
|
$316,800 per year
|
|
$26,400 per month
|
5.
Tenant to Maintain and Surrender
Premises in Good Order . Tenant also covenants and agrees that
Tenant will, at its own expense, (a) keep the Premises and the
equipment, plumbing, drains, fixtures, appliances, and machinery
in, upon, serving, or appurtenant to the Premises, in good repair
and in good sanitary condition during the Term, (b) replace
promptly any and all glass broken in or about the Premises with
glass of the same quality; (c) make no alterations in or additions
to the Premises, without first obtaining Lessor’s written
consent, which consent shall not be unreasonably withheld, delayed
or conditioned; (d) not use or permit anything upon said premises
that will increase the rate of insurance thereon, or anything that
may be dangerous to life or limb; (e) not in any manner deface or
injure the Premises, or any part thereof, or overload the floors,
or do or permit anything to be done upon the Premises or in the
passageways, alleys, areas, area-ways, sidewalks, or streets
adjacent thereto, that will amount to or create a nuisance; (f) not
use the Premises or permit the same or any part thereof to be used
for lodging or sleeping purposes, or for any purpose contrary to
the laws, ordinances or regulations of the United States of America
or the State of Minnesota, or the City of Vadnais Heights or of any
rules or regulations of the City of Vadnais Heights, or of any
boards or officers of said city; and (g) return the Premises
peaceably and promptly to Lessor at the end of the
Term, or at any previous termination
thereof, in as good condition as they are now in or may hereafter
be put in, loss by casualty and ordinary wear excepted.
6.
Ice, Snow and
Utilities . Tenant
further covenants and agrees to keep the sidewalks bordering on the
Premises (where the leased space borders upon a sidewalk or
passageway) at all times free from ice and snow and other
obstructions, and to neither waste nor misuse water, electricity,
gas, steam, or any other utilities or agencies which are or may be
furnished by Lessor, and to promptly pay all rates, costs and
charges for the same, except as to such, if any, as Lessor has
specifically agreed herein to furnish free of charge.
7.
Signs . Tenant shall not erect or permit to be
erected on the Premises, any signs on the exterior of the Premises
or buildings without the written consent of Lessor, which consent
shall not be unreasonably withheld, delayed or conditioned, nor
place or permit to be placed in any portion of any of the Premises
any weight or weights in excess of the reasonable or safe carrying
capacity of the structure. Notwithstanding the foregoing
sentence, Lessor hereby consents to Tenant’s signage
currently on the Premises and/or the building.
8.
Condition of Premises; Release of
Lessor . Subject to
(a) Lessor’s obligation to complete Lessor’s Work as
described in Section 25 of this Lease and (b) the terms and
conditions of Section 11 of this Lease, Tenant (1) acknowledges the
receipt of the Premises in good and sanitary condition, and in good
repair; (2) agrees that Tenant’s taking possession of the
Premises shall be conclusive evidence that the Premises, and the
equipment, plumbing, drains, fixtures, appliances, and machinery
therein, were at the time of taking possession thereof in good,
clean, sanitary, and tenantable condition, and in all respects
satisfactory and acceptable to Tenant, and in the condition in
which they were represented to Tenant to be and agreed to be put in
by Lessor; and (3) releases Lessor from any and all claims arising
from any defect in the condition of the Premises, or the equipment,
fixtures, or appliances in or serving the Premises, and the
building or buildings of which they are a part, and the streets,
alleys, areas, area-ways, passages, or sidewalks adjoining or
appurtenant thereto.
9.
Subleasing
. Tenant agrees that Tenant
will not sublet the Premises, or any part thereof, and will not
assign this Lease or any interest therein, nor permit this Lease to
become transferred by operation of law or otherwise, and that no
act or acts will be done or suffered whereby the same may be or
become sublet or assigned in whole or in part, without the prior
written consent of Lessor, which consent shall not be unreasonably
withheld, delayed or conditioned. Lessor’s consent
shall be required as to each and every case of underleasing or
assignment, as they shall from time to time occur or be desired,
and that nothing whatever shall be held to be a waiver of or to
supersede the necessity of such endorsement. Notwithstanding
the foregoing, Tenant shall have the right, without Lessor’s
consent, to assign Tenant’s interest in this Lease as a
result of any of the following, provided that the financial
condition of the assignee shall be equal to or better than
Tenant’s financial condition immediately before the
assignment: (i) any merger, consolidation or other reorganization
of Tenant’s corporate existence; (ii) the sale or transfer of
any of the stock of Tenant; or (iii) any change in the form of
Tenant’s legal organization under applicable state law
(individually and collectively, “Tenant’s
Restructuring”) . Tenant agrees to provide Landlord
with copies of any and all necessary documents evidencing
Tenant’s Restructuring and any such assignment within thirty
(30) days following the effective date of such Tenant’s
Restructuring assignment.
10.
Bankruptcy
. Any assignment, sale in
bankruptcy, or insolvency of Tenant may, at the option of Lessor,
be considered an assignment within the meaning of this Lease and as
a breach of the covenants hereof.
11.
Liability of Lessor and
Tenant . Tenant
further agrees that Lessor shall not be liable for any damage,
either to person or persons or property or the loss of property
sustained by Tenant, or by any other person or persons due to the
Premises or the buildings of which the Premises are a part, or the
equipment, fixtures, appliances, or machinery in or upon the same,
or the halls, passages, areas, area-ways, and sidewalks or streets
adjoining or appurtenant to the same being or becoming out of
repair or defective, or due to the happening of any accident, or
due to any act or neglect of Tenant, or any tenant or occupant of
said building, or of any other person, persons or corporations
(other than Lessor and Lessor’s officers, directors,
employees, managers, contractors and/or invitees), or by the
bursting of pipes, or by the use or misuse of any instrumentality
or agency in or connected with the Premises
or the building of which it is a
part, or occasioned by any nuisance made or suffered thereon or
therein, unless such damage results from the gross negligence or
intentional act or omission of Lessor and/or Lessor’s
officers, directors, employees, managers, contractors and/or
invitees.
12.
Liability of Lessor and
Tenant . Tenant
assumes all liability and obligation on account of all damages on
account of the matters and things above referred to, and agrees to
save Lessor harmless thereon and therefrom, and to indemnify Lessor
on account thereof, except for liability and/or obligation which
results from the gross negligence or intentional act or omission of
Lessor and/or Lessor’s officers, directors, employees,
managers, contractors and/or invitees. This provision shall
apply especially, but not exclusively, to damage caused by water,
snow, rain, hail, backing up of water mains, or sewers, frost,
steam, sewage, illuminating gas, sewer gas, or odors, electricity
and electric current, and by the bursting, stoppage, or leaking of
pipes or radiators, plumbing, sinks, and fixtures in or about the
Pre