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<PAGE>
EXHIBIT 10.7
11/17/03
11/18/03
12/16/03
12/17/03
01/19/04
01/20/04
OFFICE/WAREHOUSE LEASE
THIS
INDENTURE of lease, dated this 30th day of January, 2004, by
and
between OPUS NORTHWEST, L.L.C., a Delaware limited liability
company, owner of
the Office/Warehouse Complex (as hereinafter defined), hereinafter
referred to
as "Lessor," and CHIEF MANUFACTURING, INC., a Minnesota
corporation, hereinafter
referred to as "Lessee."
WITNESSETH:
That
Lessor, in consideration of the rents and covenants hereinafter
set
forth, does hereby lease and let unto Lessee, and Lessee does
hereby hire and
take from Lessor, that certain space shown and designated on the
floor plan
attached hereto and made a part hereof as Exhibit A, located in
the
Office/Warehouse Complex known and described as Eagle Creek
Commerce Center West
located at 8401 Eagle Creek Parkway, Savage, Minnesota 55378. The
area upon
which rental is calculated includes all areas within the outside
edge of outside
walls and to the center of demising walls (or to demising lines if
no demising
wall exists) common with other tenants or with vacant space and
Lessee's
proportionate share of the common electrical and mechanical rooms
in the
Office/Warehouse Complex. The aforesaid space leased and let unto
Lessee is
hereinafter referred to as the "Premises"; and the land (including
all easement
areas appurtenant thereto) upon which the building or buildings of
which the
Premises are a part is hereinafter referred to as the "Property";
and the
Property and all buildings and improvements and personal property
of Lessor used
in connection with the operation or maintenance thereof located
therein and
thereon and the appurtenant parking facilities, if any, are
hereinafter called
the "Office/Warehouse Complex."
TO
HAVE AND TO HOLD THE SAME PREMISES, without any liability or
obligation
on the part of Lessor to make any alterations, improvements or
repairs of any
kind on or about the Premises, except as expressly provided herein,
for a term
of five (5) years, zero (0) months, commencing on the 1st day of
May, 2004 and
ending on the 30th day of April, 2009, unless sooner terminated, in
the manner
provided hereinafter, to be occupied and used by Lessee for
office/warehouse
purposes and for no other purpose, subject to the covenants and
agreements
hereinafter contained.
ARTICLE I. BASE RENT: In consideration of the leasing aforesaid,
Lessee agrees
to pay to Lessor, at 10350 Bren Road West, Minnetonka, Minnesota
55343, or at
such other place as Lessor from time to time may designate in
writing, an annual
rental of Six Hundred Fifteen Thousand Five Hundred Thirty-Seven
and 00/100
Dollars ($615,537.00), sometimes hereinafter referred to as the
"Base Rent,"
payable monthly, in advance, in equal installments of Fifty-One
<PAGE>
Thousand Two Hundred Ninety-Four and 75/100 Dollars ($51,294.75),
commencing on
the first day of the term and continuing on the first day of each
and every
month thereafter for the next succeeding months during the balance
of the term.
If the term commences on a date other than the first day of a
calendar month or
ends on a date other than the last day of a calendar month, monthly
rent for the
first month of the term or the last month of the term, as the case
may be, shall
be prorated based upon the ratio that the number of days in the
term within such
month bears to the total number of days in such month.
ARTICLE II. ADDITIONAL RENT: In addition to the Base Rent payable
by Lessee
under the provisions of Article I hereof, Lessee shall pay to
Lessor "Additional
Rent" as hereinafter provided for in this Article II
For
purposes of this Article II, the parties hereto agree upon the
following definitions:
A. The term
"Lease Year" shall mean each of those calendar years commencing
with
and including the year during which the term of this Lease
commences,
and
ending with the calendar year during which the term of this
Lease
(including any extensions or renewals) terminates.
B. The term
"Real Estate Taxes" shall mean and include all personal
property
taxes of Lessor relating to Lessor's personal property located in
the
Office/Warehouse Complex and used or useful in connection with
the
operation and maintenance thereof, real estate taxes, and
installments of
special assessments, including interest thereon, relating to the
Property
and
Office/Warehouse Complex, and all other governmental charges,
general
and
special, ordinary and extraordinary, foreseen as well as
unforeseen, of
any
kind and nature whatsoever, or other tax, however described, which
is
levied or assessed by the United States of America or the state in
which
the
Office/Warehouse Complex is located or any political
subdivision
thereof, against Lessor or all or any part of the Office/Warehouse
Complex
as a
result of Lessor's ownership of the Property or
Office/Warehouse
Complex, and payable during the respective Lease Year. It shall not
include
any
net income tax, estate tax, or inheritance tax.
C. The term
"Excess Real Estate Taxes" for an applicable Lease Year shall
mean
the
amount of Real Estate Taxes payable during such applicable Lease
Year
in
excess of the sum of $-0-.
D. The term
"Operating Expenses" shall mean and include all expenses
reasonably incurred with respect to the maintenance and operation
of the
Property and Office/Warehouse Complex as determined by Lessor's
accountant
in
accordance with generally accepted accounting principles
consistently
followed, including, but not limited to, insurance premiums,
maintenance
and
repair costs, steam, electricity, water, sewer, gas, and other
utility
charges, fuel, lighting, window washing, common area janitorial
services,
common area trash and rubbish removal, wages payable to employees
of Lessor
whose duties are connected with the operation and maintenance of
the
Property and
Office/Warehouse Complex (but only for the portion of their
time
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allocable to work related to the Office/Warehouse Complex), amounts
paid to
contractors or subcontractors for work or services performed in
connection
with
the operation and maintenance of the Property and
Office/Warehouse
Complex, all costs of uniforms, supplies and materials used in
connection
with
the operation and maintenance of the Property and
Office/Warehouse
Complex, all payroll taxes, unemployment insurance costs,
vacation
allowances, and the cost of providing disability insurance or
benefits,
pensions, profit sharing benefits, hospitalization, retirement or
other
so-called fringe benefits, and any other expense imposed on Lessor,
its
contractors or subcontractors, pursuant to law or pursuant to
any
collective bargaining agreement covering such employees, all
services,
supplies, repairs, replacements or other expenses for maintaining
and
operating the Office/Warehouse Complex, reasonable attorney's fees
and
costs in connection with appeal or contest of real estate or other
taxes or
levies, and such other expenses as may be ordinarily incurred in
the
operation and maintenance of an office/warehouse complex and
not
specifically set forth herein, including reasonable management
fees, such
management fees not to exceed 4% of gross rental income. The
term
"Operating Expenses" shall not include any capital improvement to
the
Office/Warehouse Complex other than replacements required for
normal
maintenance and repair, nor shall it include repairs, restoration
or other
work
occasioned by fire, windstorm or other insured casualty,
expenses
incurred in leasing or procuring tenants, leasing commissions,
advertising
expenses, expenses for renovating space for new tenants, legal
expenses
incident to enforcement by Lessor of the terms of any lease,
interest or
principal payments on any mortgage or other indebtedness of
Lessor,
depreciation allowance or expense or any of the following:
(a)
Cost items otherwise
includable in Operating Expenses which are
reimbursed to Lessor by insurance, less the out-of-pocket costs
of
collection;
(b)
Bad debt loss, rent
loss or reserves for bad debts or rent loss;
(c)
Costs of products and
services otherwise includable in Operating
Expenses but which represents an amount paid to an affiliate of
Lessor
or an affiliate of any partner or shareholder or member of Lessor,
to
the extent the same is in excess of the fair market value of said
item
(subject to the specific provision herein related to
permissible
management fee);
(d)
Interest or penalties
incurred as a result of Lessor's failure to pay
costs otherwise included in Operating Expenses as the same
shall
become due.
(e)
Costs or expenses
incurred by Lessor which represent amounts spent by
Lessor in bad faith;
(f)
Wages, salaries,
bonuses or fringe benefits of the asset manager,
Lessor's or its management company's executives (except as may
be
included in the management fee permitted above), general manager,
or
other executives of Lessor
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or its management company above the grade of Property Manager
in
respect to the Office/Warehouse Complex;
(g)
Costs of tenant
improvements for any rentable area of the
Office/Warehouse Complex.
(h)
Costs related to
removing or remediation of so-called hazardous
materials, other than routine disposal of contaminants such as
fluorescent tubes and ballasts.
(i)
Costs of marketing and
promotional expenses.
(j)
Fees, costs and
commissions incurred in procuring or attempting to
procure other tenants, including, but not limited to, brokers'
commissions, finders' fees, attorneys' fees, entertainment costs
and
travel expenses related thereto.
(j)
Any expenses for
repairs or maintenance which are covered and paid by
warranties and guarantees.
Notwithstanding the foregoing, in the event Lessor installs
equipment in or
makes improvements or alterations to the Office/Warehouse Complex
which are
for
the purpose of reducing energy costs, maintenance costs or
other
Operating Expenses or which are required under any governmental
laws,
regulations, or ordinances which were not required at the date
of
commencement of the term of this Lease, Lessor may include in
Operating
Expenses reasonable charges for interest on such investment and
reasonable
charges for depreciation on the same so as to amortize such
investment over
the
reasonable life of such equipment, improvement or alteration on
a
straight line basis. Operating Expenses shall also be deemed to
include
expenses incurred by Lessor in connection with city sidewalks
adjacent to
the
Property and any pedestrian walkway system (either above or
below
ground) or other public facility to which Lessor or the
Office/Warehouse
Complex is from time to time subject in connection with operations
of the
Property and Office/Warehouse Complex.
Lessor shall use reasonable effort to cause the Office/Warehouse
Complex to
be
operated in accordance with prudent property management
standards.
E. The term
"Excess Operating Expenses" shall mean the amount of Operating
Expenses for any applicable Lease Year in excess of the sum of
$-0-.
F. The term
"Lessee's Pro Rata Share of Excess Real Estate Taxes" shall
mean
eighty-two and 03/100ths percent (82.03%) of the Excess Real Estate
Taxes
payable during the applicable Lease Year, and the term "Lessee's
Pro Rata
Share of Excess Operating Expenses" shall mean eighty-two and
03/100ths
percent (82.03%) of the Excess Operating Expenses for the
applicable Lease
Year. Said percentages have been agreed upon by the parties hereto
after
due
consideration of the rentable area of the Premises compared to
the
rentable area of the Office/Warehouse Complex; provided,
however,
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Lessee's above percentages for Lessee's Pro Rata Share of Excess
Operating
Expenses and for Lessee's Pro Rata Share of Excess Real Estate
Taxes shall
be
amended for each Lease Year to the percentage which the average
rentable
area
of the Premises bears to the total average rentable area of the
Office/Warehouse Complex for such Lease Year
G. Anything
herein to the contrary notwithstanding, it is agreed that in
the
event the Office/Warehouse Complex is not fully occupied during any
Lease
Year, a reasonable and equitable adjustment shall be made by Lessor
in
computing the management fee portion of Operating Expenses for such
year so
that
the management fee portion of Operating Expenses shall be adjusted
to
the
amount that would have been incurred had the Office/Warehouse
Complex
been
fully occupied during such year assuming the unoccupied area is
leased
at
average rent prevailing for occupied space.
As to the Lease Year
during which the term of this Lease commences,
Lessor's estimated amount of Lessee's Pro Rata Share of Excess Real
Estate
Taxes and Lessor's estimated amount of Lessee's Pro Rata Share of
Excess
Operating Expenses (based upon the estimated number of months of
the term
within such initial Lease Year) shall be the following sums:
Lessee's Pro Rata Share of Excess Real Estate Taxes $75,832.00
Lessee's Pro Rata Share of Excess Operating Expenses $44,055.00
As
to each Lease Year after the initial Lease Year, Lessor shall
estimate
for each such Lease Year (i) the total amount of Excess Real Estate
Taxes; (ii)
the total amount of Excess Operating Expenses; (iii) Lessee's Pro
Rata Share of
Excess Real Estate Taxes; (iv) Lessee's Pro Rata Share of Excess
Operating
Expenses; (v) the computation of the annual and monthly rental
payable during
such Lease Year as a result of increases or decreases in Lessee's
Pro Rata Share
of Excess Real Estate Taxes and Lessee's Pro Rata Share of Excess
Operating
Expenses. Said estimate shall be in writing and shall be delivered
or mailed to
Lessee at the Premises.
Lessee shall pay, as Additional Rent, the amount of Lessee's Pro
Rata Share
of Excess Real Estate Taxes for each Lease Year and Lessee's Pro
Rata Share of
Excess Operating Expenses for each Lease Year, so estimated, in
equal monthly
installments, in advance, on the first day of each month during
each applicable
Lease Year. In the event that said estimate is delivered to Lessee
after the
first day of January of the applicable Lease Year, said amount, so
estimated,
shall be payable as Additional Rent, in equal monthly installments,
in advance,
on the first day of each month over the balance of such Lease Year,
with the
number of installments being equal to the number of full calendar
months
remaining in such Lease Year.
From
time to time during any applicable Lease Year, Lessor may
reestimate
the amount of Excess Real Estate Taxes and Excess Operating
Expenses and
Lessee's Pro Rata Share thereof, and in such event Lessor shall
notify Lessee,
in writing, of such reestimate in the manner above set forth and
fix monthly
installments for the then remaining balance of such Lease Year
in
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an amount sufficient to pay the reestimated amount over the balance
of such
Lease Year after giving credit for payments made by Lessee on the
previous
estimate.
Upon
completion of each Lease Year, Lessor shall cause its accountants
to
determine the actual amount of Excess Real Estate Taxes and Excess
Operating
Expenses for such Lease Year and Lessee's Pro Rata Share thereof
and deliver a
written certification of the amounts thereof to Lessee after the
end of each
Lease Year. If Lessee has paid less than its Pro Rata Share of
Excess Real
Estate Taxes or its Pro Rata Share of Excess Operating Expenses for
any Lease
Year, Lessee shall pay the balance of its Pro Rata Share of the
same within ten
(10) days after the receipt of such statement. If Lessee has paid
more than its
Pro Rata Share of Excess Real Estate Taxes or its Pro Rata Share of
Excess
Operating Expenses for any Lease Year, Lessor shall, at Lessee's
option, either
(i) refund such excess, or (ii) credit such excess against the most
current
monthly installment or installments due Lessor for its estimate of
Lessee's Pro
Rata Share of Excess Real Estate Taxes and Lessee's Pro Rata Share
of Excess
Operating Expenses for the next following Lease Year. A pro rata
adjustment
shall be made for a fractional Lease Year occurring during the term
of this
Lease or any renewal or extension thereof based upon the number of
days of the
term of this Lease during said Lease Year as compared to three
hundred
sixty-five (365) days and all additional sums payable by Lessee or
credits due
Lessee as a result of the provisions of this Article II shall be
adjusted
accordingly.
Further, Lessee shall pay, also as Additional Rent, any tax or
excise on
rents, gross receipts tax, or other tax, however described, which
is levied or
assessed by the United States of America or the state in which
the
Office/Warehouse Complex is located or any political subdivision
thereof,
against Lessor in respect to the Base Rent, Additional Rent, or
other charges
reserved under this Lease or as a result of Lessor's receipt of
such rents or
other charges accruing under this Lease; provided, however, Lessee
shall have no
obligation to pay net income taxes of Lessor.
ARTICLE III. OVERDUE AMOUNTS - RENT INDEPENDENT: Any installment of
Base Rent,
Additional Rent, or other charges to be paid by Lessee accruing
under the
provisions of this Lease, which shall not be paid when due, shall
bear interest
at the rate of ten percent (10%) per annum from the date when the
same is due
until the same shall be paid, but if such rate exceeds the maximum
interest rate
permitted by law, such rate shall be reduced to the highest rate
allowed by law
under the circumstances. Lessee's covenants to pay the Base Rent
and the
Additional Rent are independent of any other covenant, condition,
provision or
agreement herein contained.
ARTICLE IV. POSSESSION OF PREMISES: If Lessor shall be unable to
give possession
of the Premises on the date of the commencement of the term because
the
construction of the Office/Warehouse Complex or the completion of
the Premises
has not been sufficiently completed to make the Premises ready for
occupancy, or
for any other reason, Lessor shall not be subject to any claims,
damages or
liabilities for the failure to give possession on said date. The
rent reserved
and covenant to pay same shall commence on May 1, 2004, and failure
to give
possession on the date of commencement of the term shall in no way
affect the
validity of this Lease or the obligations of Lessee hereunder, nor
shall the
same be construed in any way to
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extend the expiration date of the term. Lack of completion of the
Lessee
Improvements shall not prevent commencement of the term and rental
payments as
set forth above. Lessor shall deliver possession of the Premises at
such time as
the Lessee Improvements set forth in Article XXX have been
substantially
completed.
The
acceptance of possession by Lessee shall be deemed conclusively
to
establish that the Premises and all other improvements of the
Office/Warehouse
Complex required to be constructed by Lessor for use thereof by
Lessee hereunder
have been completed unless Lessee notifies Lessor in writing within
sixty (60)
days after commencement of the term as to any items not completed.
Lessee waives
any claim as to matters not listed in said notice.
ARTICLE V. SERVICES:
A. All electric
lighting bulbs and tubes and all ballasts and starters within
the
Premises shall be replaced by Lessee at the expense of Lessee.
B. Subject to
Article II hereof, Lessor shall provide maintenance in good
order, condition and repair of the parking facilities and all
driveways
leading thereto and keeping the same free from any unreasonable
accumulation of snow. Lessor shall keep and maintain the landscaped
area
and
parking facilities in a neat and orderly condition. Lessor reserves
the
right to designate areas of the appurtenant parking facilities
where
Lessee, its agents, employees and invitees shall park and may
exclude
Lessee, its agents, employees and invitees from parking in other
areas as
designated by Lessor, provided, however, Lessor shall not be liable
to
Lessee for the failure of any tenant, its invitees, employees,
agents, and
customers to abide by Lessor's designations or restrictions.
C. Lessee shall
provide all cleaning and janitorial services required in
respect to the Premises.
No
interruption in, or temporary stoppage of, any of the aforesaid
services
caused by repairs, renewals, improvements, alterations, strikes,
lockouts, labor
controversy, accidents, inability to obtain fuel or supplies, or
other causes
shall be deemed an eviction or disturbance of Lessee's use and
possession, or
render Lessor liable for damages, by abatement of rent or otherwise
or relieve
Lessee from any obligation herein set forth. In no event shall
Lessor be
required to provide any heat, air conditioning, electricity or
other service in
excess of that permitted by voluntary or involuntary guidelines or
laws,
ordinances or regulations of governmental authority.
ARTICLE VI. USE: The Premises shall be used for Office/Warehouse
and
manufacturing purposes (including paint booth operations), and for
carrying on
such activities as may be incidental thereto; provided, however,
Lessee may not
use or occupy the Premises, or knowingly permit the Premises to be
used or
occupied, contrary to any statute, rule, order, ordinance,
requirement or
regulation applicable thereto, or in any manner which would violate
any
certificate of occupancy or permit affecting the same, or which
would cause
structural injury to the Premises or cause the value or usefulness
of the
Premises, or any part thereof, substantially to
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diminish (reasonable wear and tear excepted) or which would
constitute a private
or public nuisance or waste, and Lessee agrees that it will
promptly, upon
discovery of any such use, take all necessary steps to compel the
discontinuance
of such use.
ARTICLE VII. CERTAIN RIGHTS RESERVED BY LESSOR: Lessor reserves the
following
rights exercisable without notice and without liability to Lessee
and without
effecting an eviction, constructive or actual, or disturbance of
Lessee's use or
possession, or giving rise to any claim for setoff or abatement of
rent:
A. To control,
install, affix and maintain any and all signs on the Property,
or
on the exterior of the Office/Warehouse Complex and in any
common
corridors, entrances and other common areas thereof, except those
signs
within the Premises not visible from outside the Premises.
B. To reasonably
designate, limit, restrict and control any service in or to
the
Office/Warehouse Complex, including but not limited to the
designation
of
sources from which Lessee may obtain sign painting and lettering.
Any
restriction, designation, limitation or control imposed by reason
of this
subparagraph shall be imposed uniformly on Lessee and other
tenants
occupying space in the Office/Warehouse Complex.
C. To retain at
all times and to use in appropriate instances keys to all
doors within and into the Premises. No locks shall be changed
without the
prior written consent of Lessor, which shall not unreasonably be
withheld.
This
provision shall not apply to Lessee's safes, or other areas
maintained
by
Lessee for the safety and security of monies, securities,
negotiable
instruments or like items. Notwithstanding the above provisions of
this
Subparagraph C, in the event Lessee desires that Lessor not have
keys to
the
Premises, Lessee shall pay for the reasonable costs for repair of
all
damage to doors to the Premises caused by persons attempting to
gain
entrance in the event of an emergency or perceived emergency.
D. To make
repairs, alterations, additions, or improvements, whether
structural or otherwise, in and about the Office/Warehouse Complex,
or any
part
thereof, and for such purposes to enter upon the Premises, and
during
the
continuation of any of said work, to temporarily close doors,
entryways, public spaces, and corridors in the Office/Warehouse
Complex and
to
interrupt or temporarily suspend services and facilities.
Notwithstanding the above, Lessor shall not make alterations,
additions or
improvements to the Office/Warehouse Complex which would
materially
adversely affect Lessee's rights to use the Premises granted herein
or
Lessee's parking rights or access to the Premises.
E. To approve
the weight, size and location of safes and other heavy
equipment
and
articles in and about the Premises and the Office/Warehouse Complex
and
to
require all such items to be moved into and out of the
Office/Warehouse
Complex and the Premises only at such times and in such manner as
Lessor
shall direct in writing.
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ARTICLE VIII. ALTERATIONS AND IMPROVEMENTS: Lessee shall not make
any
improvements, alterations, additions or installations in or to the
Premises
(hereinafter referred to as the "Work") without Lessor's prior
written consent,
which consent (subject to other provisions in this Article VIII)
shall not
unreasonably be conditioned, withheld or delayed. Along with any
request for
Lessor's consent and before commencement of the Work or delivery of
any
materials to be used in the Work to the Premises or into the
Office/Warehouse
Complex, Lessee shall furnish Lessor with plans and specifications,
names and
addresses of contractors, copies of contracts, necessary permits
and licenses,
and an indemnification in such form and amount as may be reasonably
satisfactory
to Lessor and a performance bond executed by a commercial surety
reasonably
satisfactory to Lessor, and in an amount equal to the Work and the
payment of
all liens for labor and material arising therefrom. Lessee agrees
to defend and
hold Lessor forever harmless from any and all claims and
liabilities of any kind
and description which may arise out of or be connected in any way
with said
improvements, alterations, additions or installations. All Work
shall be done
only by contractors or mechanics reasonably approved by Lessor and
at such time
and in such manner as Lessor may from time to time reasonably
designate. All
work done by Lessee, its agents, employees, or contractors shall be
done in such
a manner as to avoid labor disputes. Lessee shall pay the cost of
all such
improvements, alterations, additions or installations (including a
reasonable
charge for Lessor's services and for Lessor's inspection and
engineering time),
and also the cost of painting, restoring, or repairing the Premises
and the
Office/Warehouse Complex occasioned by such improvements,
alterations, additions
or installations. Upon completion of the Work, Lessee shall furnish
Lessor with
contractor's affidavits and full and final waivers of liens, and
receipted bills
covering all labor and materials expended and used. The Work shall
comply with
all insurance requirements and all laws, ordinances, rules and
regulations of
all governmental authorities and shall be constructed in a good and
workmanlike
manner. Lessee shall permit Lessor to inspect construction
operations in
connection with the Work. Lessee shall not be allowed to make any
alterations,
modifications, improvements, additions, or installations if such
action results
or would result in a labor dispute or otherwise would materially
interfere with
Lessor's operation of the Office/Warehouse Complex. Lessor, by
written notice to
Lessee given at or prior to termination of this Lease, may require
Lessee to
remove any improvements, additions or installation installed by
Lessee in the
Premises at Lessee's sole cost and expense, and repair or restore
any damage
caused by the installation and removal of such improvements,
additions, or
installations; provided, however, the only improvements, additions
or
installations which Lessee shall remove shall be those specified in
such notice.
ARTICLE IX. REPAIRS: Lessee shall, during the term of this Lease,
at Lessee's
expense, keep the Premises in as good order, condition and repair
as they were
at the time Lessee took possession of the same, reasonable wear and
tear and
insured damage from fire and other casualties excepted. Lessee
shall keep the
Premises in a neat and sanitary condition and shall not commit any
nuisance or
waste on the Premises or in, on, or about the Office/Warehouse
Complex, throw
foreign substances in the plumbing facilities, or waste any of the
utilities
furnished by Lessor. All uninsured damage or injury to the
Premises, or to the
Office/Warehouse Complex caused by Lessee moving furniture,
fixtures, equipment,
or other devices in or out of the Premises or Office/Warehouse
Complex or by
installation or removal of furniture, fixtures, equipment, devices
or other
property of Lessee, its agents, contractors, servants or
employees,
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due to carelessness, omission, neglect, improper conduct, or other
cause of
Lessee, its servants, employees, agents, visitors, or licensees,
shall be
repaired, restored and replaced promptly by Lessee at its sole cost
and expense
to the reasonable satisfaction of Lessor. All repairs, restorations
and
replacements shall be in quality and class equal to the original
work.
Lessor or its employees, or agents, shall have the right to enter
the
Premises at any reasonable time or times for the purpose of
inspection,
cleaning, repairs, altering, or improving the same but nothing
contained herein
shall be construed as imposing any obligation on Lessor to make any
repairs,
alterations or improvements which are the obligation of Lessee.
Lessee shall cooperate during the last month of the term for the
express
purpose of meeting for a joint inspection of the Premises.
ARTICLE X. INSURANCE: Lessor shall keep the Office/Warehouse
Complex insured for
the benefit of Lessor in an amount equivalent to the full
replacement value
thereof (excluding foundation, grading and excavation costs)
against:
(a) loss or damage by
fire; and
(b) such other risk or
risks of a similar or dissimilar nature as are now, or
may
in the future be, customarily covered with respect to buildings
and
improvements similar in construction, general location, use,
occupancy and
design to the Office/Warehouse Complex, including, but without
limiting the
generality of the foregoing, windstorms, hail, explosion,
vandalism,
malicious mischief, civil commotion, and such other coverage as may
be
deemed necessary by Lessor, providing such additional coverage
is
obtainable and providing such additional coverage is such as is
customarily
carried with respect to buildings and improvements similar in
construction,
general location, use, occupancy and design to the
Office/Warehouse
Complex.
These insurance provisions shall in no way limit or modify any of
the
obligations of Lessee under any provision of this Lease. Lessor
agrees that such
policy or policies of insurance shall contain a waiver of
subrogation clause as
to Lessee and Lessor waives, releases and discharges Lessee from
all claims or
demands whatsoever which Lessor may have or acquire arising out of
damage to or
destruction of the Office/Warehouse Complex or Lessor's business
therein
occasioned by fire or other cause, which such claim or demand may
arise because
of the negligence or fault of Lessee, its agents, employees,
customers or
business invitees, or otherwise, and Lessor agrees to look to the
insurance
coverage only in the event of such loss; provided, however, Lessor
does not
release or waive any rights against Lessee, or discharge Lessee
from any claims,
losses or expenses arising out of violations by Lessee or its
agents,
contractors, or employees of any environmental covenant herein or
of any laws
relating to the environment or hazardous materials or from any
claims arising
out of intentional damage to Lessor's property. Notwithstanding the
foregoing,
Lessee shall be obligated to pay the rental called for hereunder in
the event of
damage to or destruction of the Premises or the Office/Warehouse
Complex if such
damage or destruction is occasioned by the negligence or fault of
Lessee, its
agents or employees.
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<PAGE>
Insurance premiums paid thereon shall be a portion of the
"Operating Expenses"
described in Article II hereof.
Lessee shall keep all of its machinery, equipment, furniture,
fixtures,
personal property (including also property under the care, custody
or control of
Lessee) and business interests which may be located in, upon, or
about the
Premises insured for the benefit of Lessee in an amount equivalent
to the full
replacement value or insurable value thereof against:
(a) loss or damage by
fire; and
(b) such other risk or
risks of a similar or dissimilar nature as are now, or
may
in the future be, customarily covered with respect to a
tenant's
machinery, equipment, furniture, fixtures, personal property and
business
located in a building similar in construction, general location,
use,
occupancy and design to the Office/Warehouse Complex, including,
but
without limiting the generality of the foregoing, windstorms,
hail,
explosions, vandalism, theft, malicious mischief, civil commotion,
and such
other coverage as Lessee may deem appropriate or necessary.
Lessee agrees that such policy or policies of insurance shall
contain a
waiver of subrogation clause as to Lessor and Lessee waives,
releases and
discharges Lessor from all claims or demands whatsoever which
Lessee may have or
acquire arising out of damage to or destruction of the machinery,
equipment,
furniture, fixtures, personal property, and business of Lessee
occasioned by
fire or other cause, whether such claim or demand may arise because
of the
negligence or fault of Lessor, its agents, employees,
subcontractors or
otherwise, and Lessee agrees to look to the insurance coverage only
in the event
of such loss.
Lessor shall, as a portion of the Operating Expenses defined in
Article II,
maintain, for its benefit and the benefit of its managing agent,
commercial
general liability insurance against claims for personal injury,
death or
property damage occurring upon, in or about the Office/Warehouse
Complex, such
insurance to afford protection to Lessor and its managing
agent.
Lessee shall, at Lessee's sole cost and expense but for the mutual
benefit
of Lessor, its managing agent and Lessee, maintain commercial
general liability
insurance against claims for personal injury, death or property
damage occurring
upon, in or about the Premises, such insurance to afford protection
to Lessor,
its managing agent and Lessee to the limit of not less than Three
Million and
00/100 Dollars ($3,000,000.00) single limit coverage on an
occurrence basis.
Such policies of insurance shall be written in companies reasonably
satisfactory
to Lessor, naming Lessor and its managing agent as additional
insureds
thereunder, and such policies, or a memorandum or certificate of
such insurance,
shall be delivered to Lessor endorsed "Premium Paid" by the company
or agency
issuing the same or accompanied by other evidence satisfactory to
Lessor that
the premium thereon has been paid. At such time as insurance limits
required of
tenants in Office/Warehouse buildings in the area in which the
Office/Warehouse
Complex is located are generally increased to greater amounts,
Lessor shall have
the right to require such greater limits as may then be customary.
Lessee agrees
to include in such policy the contractual
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<PAGE>
liability coverage insuring Lessee's indemnification obligations
provided for
herein. Any such coverage shall be deemed primary to any liability
coverage
secured by Lessor.
Lessee agrees to indemnify and save Lessor and its managing agent
harmless
against and from any and all third party (other than Lessor's
affiliates)
claims, loss, damage and expense arising out of bodily injury or
property damage
by or on behalf of any person or persons, firm or firms,
corporation or
corporations, arising from any breach or default on the part of
Lessee in the
performance of any covenant or agreement on the part of Lessee to
be performed,
pursuant to the terms of this Lease, or arising from any act or
negligence on
the part of Lessee or its agents, contractors, employees or
invitees,
concessionaires, licensees, subtenants, or arising from any
accident, injury or
damage to the extent caused by Lessee, or its contractors, agents
and employees
or invitees, concessionaires, licensees, subtenants, to any person,
firm or
corporation occurring during the term of this Lease, or any renewal
thereof, in
or about the Premises and Office/Warehouse Complex, and from and
against all
costs, reasonable counsel fees, expenses and liabilities incurred
in or about
any such claim or action or proceeding brought thereon; and in case
any action
or proceeding be brought against Lessor or its managing agent by
reason of any
such claim, Lessee, upon notice from Lessor, covenants to resist or
defend such
action or proceeding by counsel reasonably satisfactory to
Lessor.
Lessor agrees to indemnify and save Lessee harmless against and
from any
and all third party (other than Lessee's affiliates) claims, loss,
damage or
expense arising out of bodily injury or property damage by or on
behalf of any
person or persons, firm or firms, corporation or corporations,
other than Lessee
or its affiliates, subtenants, assigns, or employees, arising from
any breach or
default on the part of Lessor in the performance of any covenant or
agreement on
the part of Lessor to be performed, pursuant to the terms of this
Lease, or
arising from any act or negligence or misconduct on the part of
Lessor or its
agents, employees, servants, or contractors or arising from any
accident, injury
or damage to the extent caused by Lessor, its agents and employees
to any
person, firm or corporation occurring during the term of this Lease
or any
renewal thereof, in or about the Premises and Office/Warehouse
Complex, and from
and against all costs, reasonable counsel fees, expenses and
liabilities
incurred in or about any such claim or action or proceeding brought
thereon; and
in case any action or proceeding be brought against Lessee by
reason of any such
claim, Lessor, upon notice from Lessee, covenants to resist or
defend such
action or proceeding by counsel reasonably satisfactory to
Lessee.
Lessee agrees, to the extent not expressly prohibited by law, that
Lessor,
its agents, employees and servants shall not be liable, and Lessee
waives all
claims for damage to property and business sustained during the
term of this
Lease by Lessee occurring in or about the Office/Warehouse Complex,
resulting
directly or indirectly from any existing or future condition,
defect, matter or
thing in the Premises, the Office/Warehouse Complex, or any part
thereof, or
from equipment or appurtenances becoming out of repair or from
accident, or from
any occurrence or act or omission of Lessor, its agents, employees
or servants,
or any tenant or occupant of the Building or any other person. This
paragraph
shall apply especially, but not exclusively, to damage caused as
aforesaid or by
the flooding of basements or other subsurface areas, or by
refrigerators,
sprinkling devices, air conditioning apparatus, water, snow, frost,
steam,
excessive heat or cold, falling plaster, broken glass, sewage, gas,
odors or
noise, or the
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<PAGE>
bursting or leaking of pipes or plumbing fixtures, and shall apply
equally,
whether any such damage results from the act or omission of other
tenants or
occupants in the Office/Warehouse Complex or any other persons, and
whether such
damage be caused by or result from any of the aforesaid, or shall
be caused by
or result from other circumstances of a similar or dissimilar
nature.
Anything herein to the contrary notwithstanding, in the event any
damage to
the Office/Warehouse Complex results from any act or omission of
Lessee, its
agents, employees or invitees, and all or any portion of Lessor's
loss is
"deductible," Lessee shall pay to Lessor the amount of such
deductible loss (not
to exceed $5,000 per event). All property in the Office/Warehouse
Complex or on
the Premises belonging to Lessee, its agents, employees, invitees
or otherwise
located at the Premises, shall be at the risk of Lessee only, and
Lessor shall
not be liable for damage thereto or theft, misappropriation or loss
thereof and
Lessee agrees to defend and hold Lessor, its agents, employees and
servants
harmless and indemnify them against claims and liability for
injuries to such
property.
ARTICLE XI. ASSIGNMENT AND SUBLETTING: Lessee shall not, without
the prior
written consent of Lessor, (i) transfer, pledge, mortgage or assign
this Lease
or any interest hereunder; (ii) permit any assignment of this Lease
by voluntary
act, operation of law or otherwise; (iii) sublet the Premises or
any part
thereof; or (iv) permit the use of the Premises by any parties
other than
Lessee, its agents and employees. Lessee shall seek such written
consent of
Lessor by a written request therefor, setting forth such
information as Lessor
may deem necessary. Lessee shall, by notice in writing, advise
Lessor of its
intention from, on and after a stated date (which shall not be less
than thirty
[30] days after date of Lessee's notice), to assign this Lease or
to sublet any
part or all of the Premises for the balance or any part of the
term. Lessee's
notice shall include all of the terms of the proposed assignment or
sublease and
shall state the consideration therefor. In such event, Lessor shall
have the
right to be exercised by giving written notice to Lessee within
thirty (30) days
after receipt of Lessee's notice, to recapture the space described
in Lessee's
notice and such recapture notice shall, if given, cancel and
terminate this
Lease with respect to the space therein described as of the date
stated in
Lessee's notice. Lessee's notice shall state the name and address
of the
proposed assignee or subtenant and a true and complete copy of the
proposed
assignment or sublease shall be delivered to Lessor with Lessee's
notice. If
Lessee's notice shall cover all of the Premises, and Lessor shall
have exercised
its foregoing recapture right, the term of this Lease shall expire
and end on
the date stated in Lessee's notice as fully and completely as if
that date had
been herein definitely fixed for the expiration of the term. If,
however, this
Lease be canceled with respect to less than the entire Premises,
the Base Rent
and Additional Rent shall be equitably adjusted by Lessor with due
consideration
of the size, location, type and quality of the portion of the
Premises so
remaining after the "recapture" and such rent shall be reduced
accordingly from
and after the termination date for said portion, and this Lease as
so amended
shall continue thereafter in full force and effect. The rent
adjustments
provided for herein shall be evidenced by an amendment to Lease
executed by
Lessor and Lessee. If this Lease shall be terminated in the manner
aforesaid,
either as to the entire Premises or only a portion thereof, to such
extent the
term of this Lease shall end upon the appropriate effective date of
the proposed
sublease or assignment as if that date had been originally fixed in
this Lease
for such expiration, and in the event of a
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<PAGE>
termination affecting less than the entire Premises, Lessee shall
comply with
Article XIV ("Surrender of Premises") of this Lease with respect to
such portion
of the Premises affected thereby.
In
the event of any termination pursuant to this paragraph, Lessee
shall,
at its sole cost and expense, discharge in full (i) any outstanding
commission
obligation on the part of Lessor with respect to that part of this
Lease so
terminated, and (ii) any commission which may be due and owing as a
result of
any proposed assignment or subletting, whether or not the subject
portion of the
Premises is "recaptured" pursuant thereto and rented by Lessor to
the proposed
tenant or any other tenant.
If
Lessor, upon receiving Lessee's notice with respect to any such
space,
shall not exercise its right to recapture as aforesaid, Lessor will
not
unreasonably withhold its consent to Lessee's assignment of the
Lease or
subletting such space to the party identified in Lessee's notice,
provided,
however, that in the event Lessor consents to any such assignment
or subletting,
and as a condition thereto, Lessee shall pay to Lessor ninety
percent (90%) of
all profit after Lessee has recouped its costs of negotiating and
consummating
any such assignment or subletting derived by Lessee from such
assignment or
subletting. In any such event, such assignee or sublessee must meet
Lessor's
reasonable credit standards as a condition to Lessor's consent. For
purposes of
the foregoing, profit shall be deemed to include, but shall not be
limited to,
the amount of all rent payable by such assignee or sublessee in
excess of the
Base Rent, and rent adjustments, payable by Lessee under this
Lease. If a part
of the consideration for such assignment or subletting shall be
payable other
than in cash, the payment to Lessor shall be in cash for its share
of any
non-cash consideration based upon the fair market value
thereof.
No
sublease or assignment may be made, in any event, unless the
following
conditions are met:
(a)
Any guarantor of, or
party liable for, any of Lessee's obligations
under this Lease shall be required to consent to the assignment
or
subletting and confirm that its guarantee or other obligations
continue in full force and effect notwithstanding such assignment
or
subletting.
(b)
That Lessee shall pay
all of Lessee's costs and expenses and all of
Lessor's reasonable out-of-pocket expenses in connection with
the
making of such assignment or sublease;
(c)
Lessee shall deliver
to Lessor an executed copy of each sublease or
assignment within ten (10) days after the execution thereof,
together
with
copies of any other agreement relating thereto, and a
memorandum
detailing any oral agreement or understanding between Lessee and
the
assignee or subtenant;
Lessee shall and hereby agrees that it will furnish to Lessor upon
request
from Lessor a complete statement, certified by an independent
certified public
accountant, setting forth in detail the computation of all profit
derived and to
be derived from such assignment or subletting, such
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<PAGE>
computation to be made in accordance with generally accepted
accounting
principles. Lessee agrees that Lessor or its authorized
representatives shall be
given access at all reasonable times to the books, records and
papers of Lessee
relating to any such assignment or subletting, and Lessor shall
have the right
to make copies thereof. The percentage of Lessee's profit due
Lessor hereunder
shall be paid to Lessor within five (5) days of receipt by Lessee
of all
payments made from time to time by such assignee or sublessee to
Lessee.
For
purposes of the foregoing, any change in the partners of Lessee,
if
Lessee is a partnership, or, if Lessee is a corporation, any
transfer of any or
all of the shares of stock of Lessee by sale, assignment, operation
of law or
otherwise resulting in a change in the present control of such
corporation by
the person or persons owning a majority of such shares as of the
date of this
Lease, shall be deemed to be an assignment within the meaning of
this Article
XI.
Any
subletting or assignment hereunder shall not release or
discharge
Lessee, or any other person or party liable for Lessee's
obligations under this
Lease, of or from any liability, whether past, present or future,
under this
Lease, and Lessee shall continue fully liable hereunder. The
subtenant or
subtenants or assignee shall agree in a form satisfactory to Lessor
to comply
with and assume and be bound by all of the terms, covenants,
conditions,
provisions and agreements of this Lease to the extent of the space
sublet or
assigned, and Lessee shall deliver to Lessor promptly after
execution an
executed copy of each such sublease or assignment and an agreement
of compliance
by each such subtenant or assignee. Consent by Lessor to any
assignment of this
Lease or to any subletting of the Premises shall not be a waiver of
Lessor's
rights under this Article as to any subsequent assignment or
subletting.
Any
sale, assignment, mortgage, transfer, or subletting of this Lease
which
is not in compliance with the provisions of this Article XI shall
be of no
effect and void. Lessor's right to assign its interest in this
Lease shall
remain unqualified. Lessor may make a reasonable charge to Lessee
for any
reasonable attorney's fees or expenses incident to a review of any
documentation
related to any proposed assignment or subletting by Lessee.
Notwithstanding anything to the contrary in this Lease, Lessee
shall not
assign its rights under this Lease or sublet all or any part of the
Premises to
a person, firm or corporation which is (or, immediately prior to
such subletting
or assignment, was) a tenant or occupant of the Office/Warehouse
Complex or any
building on property contiguous to the Office/Warehouse Complex
owned by Lessor
under the Lease.
Anything in this Lease
to the contrary notwithstanding, Lessee shall have
the right to assign or sublease the Premises to an affiliated U.S.
entity,
without the consent of Lessor, subject to the other provisions of
this Article
X. An affiliated entity shall be defined as including any entity,
the
controlling interest of which is owned by either a general partner
of Lessee or
the controlling (50% or more) parent of a general partner of
Lessee, domestic
U.S. parent corporation or entity of Lessee owning at least fifty
percent (50%)
of the equity interest of Lessee, any domestic U.S. subsidiary of
Lessee or its
affiliated parent company or any U.S. domestic corporation which
purchases
substantially all of the assets of Lessee.
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<PAGE>
Subsequent to any assignment, Lessor need not consent to any
amendment or
modification of this Lease unless all prior assignees consent to
such amendment
or modification and confirm their continuing liability as Lessee
under the Lease
as amended or modified.
ARTICLE XII. DAMAGE BY FIRE OR OTHER CASUALTY: If fire or other
casualty shall
render the whole or any material portion of the Premises
untenantable, and the
Premises can reasonably be expected to be made tenantable within
one hundred
twenty (120) days from the date of such event, then Lessor shall
repair and
restore the Premises and the Office/Warehouse Complex to as near
their condition
prior to the fire or other casualty as is reasonably possible
within such one
hundred twenty (120) day period (subject to delays for causes
beyond Lessor's
reasonable control) and notify Lessee that it will be doing so,
such notice to
be mailed within thirty (30) days from the date of such damage or
destruction,
and this Lease shall remain in full force and effect, but the rent
for the
period during which the Premises are untenantable shall be abated
pro rata
(based upon the portion of the Premises which is untenantable). If
Lessor is
required to repair the Office/Warehouse Complex and/or the
Premises, as
aforesaid, said work shall be undertaken and prosecuted with all
due diligence
and speed.
If
fire or other casualty shall render the whole or any material part
of
the Premises untenantable and the Premises cannot reasonably be
expected to be
made tenantable within one hundred twenty (120) days from the date
of such
event, then either party, by notice in writing to the other mailed
within thirty
(30) days from the date of such damage or destruction, may
terminate this Lease
effective upon a date within thirty (30) days from the date of such
notice.
In
the event that more than fifty percent (50%) of the value of
the
Office/Warehouse Complex is damaged or destroyed by fire or other
casualty, and
irrespective of whether the Office/Warehouse Complex or Premises
can be made
tenantable within one hundred twenty (120) days thereafter, then at
Lessor's
option, by written notice to Lessee, mailed within forty-five (45)
days from the
date of such damage or destruction, Lessor may terminate this Lease
effective
upon a date within ninety (90) days from the date of such notice to
Lessee.
If
fire or other casualty shall render the whole or any material part
of
the Premises untenantable and the Premises cannot reasonably be
expected to be
made tenantable within one hundred twenty (120) days from the date
of such event
and neither party hereto terminates this Lease pursuant to its
rights herein or
in the event that more than fifty percent (50%) of the value of
the
Office/Warehouse Complex is damaged or destroyed by fire or other
casualty, and
Lessor does not terminate this Lease pursuant to its option granted
herein, or
in the event that fifty percent (50%) or less of the value of
the
Office/Warehouse Complex is damaged or destroyed by fire or other
casualty and
neither the whole nor any material portion of the Premises is
rendered
untenantable, then Lessor shall repair and restore the Premises and
the
Office/Warehouse Complex to as near their condition prior to the
fire or other
casualty as is reasonably possible with all due diligence and speed
(subject to
delays for causes beyond Lessor's reasonable control) and the rent
for the
period during which the Premises are untenantable shall be abated
pro rata
(based upon the portion of the Premises which is untenantable). In
no event
shall Lessor be obligated to repair or restore any special
equipment or
improvements installed by Lessee at Lessee's expense.
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<PAGE>
In
the event of a termination of this Lease pursuant to this Article,
rent
shall be apportioned on a per diem basis and paid to the date of
the fire or
other casualty.
ARTICLE XIII. EMINENT DOMAIN: If the whole of or any substantial
part of the
Premises is taken by any public authority under the power of
eminent domain, or
taken in any manner for any public or quasi-public use, so as to
render (in
Lessee's reasonable judgment) the remaining portion of the Premises
unsuitable
for the purposes intended hereunder, then the term of this Lease
shall cease as
of the day possession shall be taken by such public authority and
Lessor shall
make a pro rata refund of any prepaid rent. All damages awarded for
such taking
under the power of eminent domain or any like proceedings shall
belong to and be
the property of Lessor, Lessee hereby assigning to Lessor its
interest, if any,
in said award. In the event that fifty percent (50%) or more of the
building
area or fifty percent (50%) or more of the value of the
Office/Warehouse Complex
is taken by public authority under the power of eminent domain,
then, at
Lessor's option, by written notice to Lessee, mailed within sixty
(60) days from
the date possession shall be taken by such public authority, Lessor
may
terminate this Lease effective upon a date within ninety (90) days
from the date
of such notice to Lessee. Further, if the whole of or any material
part of the
Premises is taken by public authority under the power of eminent
domain, or
taken in any manner for any public or quasi-public use, so as to
render the
remaining portion of the Premises unsuitable in Lessee's reasonable
opinion, for
the purposes intended hereunder, upon delivery of possession to the
condemning
authority pursuant to the proceedings, Lessee may, at its option,
terminate this
Lease as to the remainder of the Premises by written notice to
Lessor, such
notice to be given to Lessor within thirty (30) days after Lessee
receives
notice of the taking. Lessee shall not have the right to terminate
this Lease
pursuant to the preceding sentence unless (i) the business of
Lessee conducted
in the portion of the Premises taken cannot in Lessee's reasonable
judgment be
carried on with substantially the same utility and efficiency in
the remainder
of the Premises (or any substitute space securable by Lessee
pursuant to clause
(ii) hereof); and (ii) Lessee cannot secure substantially similar
(in Lessee's
reasonable judgment) alternate space upon the same terms and
conditions as set
forth in this Lease (including rental) from Lessor in the
Office/Warehouse
Complex. Any notice of termination shall specify the date no more
than sixty
(60) days after the giving of such notice as the date for such
termination.
Anything in this Article XIII to the contrary notwithstanding,
Lessee shall
have the right to prove in any condemnation proceedings and to
receive any
separate award which may be made for damages to or condemnation of
Lessee's
movable trade fixtures and equipment and for moving expenses;
provided, however,
Lessee shall in no event have any right to receive any award for
its interest in
this Lease or for loss of leasehold. Anything in this Article XIII
to the
contrary notwithstanding, in the event of a partial condemnation of
the
Office/Warehouse Complex or the Premises and this Lease is not
terminated,
Lessor shall, at its sole cost and expense, restore the Premises
and
Office/Warehouse Complex to a complete architectural unit and the
Base Rent
provided for herein during the period from and after the date of
delivery of
possession pursuant to such proceedings to the termination of this
Lease shall
be reduced to a sum equal to the product of the Base Rent provided
for herein
multiplied by a fraction, the numerator of which is the fair market
rent of the
Premises after such taking and after the same
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<PAGE>
has been restored to a complete architectural unit, and the
denominator of which
is the fair market rent of the Premises prior to such taking.
ARTICLE XIV. SURRENDER OF PREMISES: On the last day of the term of
this Lease,
or on the sooner termination thereof, Lessee shall peaceably
surrender the
Premises in good condition and repair consistent with Lessee's duty
to make
repairs as herein provided. On or before the last day of the term
of this Lease,
or the date of sooner termination thereof, Lessee shall, at its
sole cost and
expense, remove all of its property and trade fixtures and
equipment from the
Premises, and all property not removed shall be deemed abandoned.
Lessee hereby
appoints Lessor its agent to remove all property of Lessee from the
Premises
upon termination of this Lease and to cause its transportation and
storage for
Lessee's benefit, all at the sole cost and risk of Lessee and
Lessor shall not
be liable for damage, theft, misappropriation or loss thereof and
Lessor shall
not be liable in any manner in respect thereto. Lessee shall pay
all costs and
expenses of such removal, transportation and storage. Lessee shall
leave the
Premises in good order, condition and repair, reasonable wear and
tear and
uninsured damage from fire and other casualty excepted. Lessee
shall reimburse
Lessor upon demand for any expenses incurred by Lessor with respect
to removal,
transportation, or storage of abandoned property and with respect
to restoring
said Premises to good order, condition and repair. All alterations,
additions
and fixtures, other than Lessee's trade fixtures and equipment,
which have been
made or installed by either Lessor or Lessee upon the Premises,
shall remain the
property of Lessor and shall be surrendered with the Premises as a
part thereof.
If the Premises be not surrendered at the end of the term or sooner
termination
thereof, Lessee shall indemnify Lessor against loss or liability
resulting from
delay by Lessee in so surrendering the Premises, including, without
limitation,
claims made by any succeeding tenants founded on such delay and any
attorneys'
fees resulting therefrom. Lessee shall promptly surrender all keys
for the
Premises to Lessor at the place then fixed for the payment of rent
and shall
inform Lessor of combinations on any vaults, locks and safes left
on the
Premises.
In
the event Lessee remains in possession of the Premises after
expiration
of this Lease, and without the execution of a new lease, but with
Lessor's
written consent, it shall be deemed to be occupying the Premises as
a tenant
from month-to-month, subject to all the provisions, conditions and
obligations
of this Lease insofar as the same can be applicable to a
month-to-month tenancy,
except that the Base Rent shall be escalated to Lessor's then
current base rent
for the Premises according to Lessor's then current rental rate
schedule for
prospective tenants. In the event Lessee remains in possession of
the Premises
after expiration of this Lease and without the execution of a new
lease and
without Lessor's written consent, Lessee shall be deemed to be
occupying the
Premises without claim of right and Lessee shall pay Lessor for all
costs
arising out of loss or liability resulting from delay by Lessee in
so
surrendering the Premises as above provided and shall pay a charge
for each day
of occupancy an amount equal to double the Base Rent and Additional
Rent (on a
daily basis) then currently being charged by Lessor on new leases
in the
Office/Warehouse Complex for space similar to the Premises.
ARTICLE XV. DEFAULT OF LESSEE: All rights and remedies of Lessor
herein
enumerated shall be cumulative and are not intended to be exclusive
of any other
remedies or means of redress to which Lessor may be lawfully
entitled in case of
any breach or threatened
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<PAGE>
breach of Lessee of any provision of this Lease. The failure of
Lessor to insist
in any one or more cases upon the strict performance of any of the
covenants of
this Lease or to exercise any option herein contained shall not be
construed as
a waiver or relinquishment for the future of such covenant or
option. A receipt
by Lessor of rent with knowledge of the breach of any covenant
hereof (other
than breach of the obligation to pay the portion of such rent paid)
shall not be
deemed a waiver of such breach, and no waiver by Lessor of any
provisions of
this Lease shall be deemed to have been made unless expressed in
writing and
signed by Lessor. In addition to other remedies in this Lease
provided, Lessor
shall be entitled to the restraint by injunction of the violation
or attempted
or threatened violation of the covenants, conditions and provisions
of this
Lease.
Subject to laws relating to bankruptcy, if, during the term of this
Lease
or any renewal term, (i) Lessee shall make an assignment for the
benefit of
creditors, or (ii) a voluntary petition be filed by Lessee under
any law having
for its purpose the adjudication of Lessee a bankrupt, or Lessee be
adjudged a
bankrupt pursuant to an involuntary petition in bankruptcy, or
(iii) a receiver
be appointed for the property of Lessee by reason of the insolvency
of Lessee,
or (iv) any department of the State or Federal government, or any
officer
thereof, duly authorized, shall take possession of the business or
property of
Lessee by reason of the insolvency of Lessee, the occurrence of any
of such
contingencies shall be deemed a breach of this Lease and this Lease
shall ipso
facto upon the happening of any of said contingencies be terminated
and the same
shall expire as fully and completely as if the day fixed for the
expiration of
the initial term of this Lease or any renewal term, as the case may
be, had
occurred, and Lessee will then quit and surrender the Premises, but
Lessee shall
remain liable as hereinafter provided. As used in this paragraph,
the term
"Lessee" shall also mean any guarantor of Lessee's obligations
under this Lease.
If,
during the initial term of this Lease or any renewal term, (i)
Lessee
shall default in fulfilling any of the covenants, obligations, or
agreements of
this Lease (other than the covenants for the payment of rent
payable by Lessee
hereunder), or (ii) this Lease, without the prior written consent
of Lessor or
except as expressly permitted, shall be assigned, pledged,
mortgaged,
transferred, or sublet in any manner, Lessor may give Lessee
written notice of
such default or the happening of any contingency in this paragraph
referred to
and, if at the expiration of thirty (30) days after service of such
notice the
default or contingency upon which said notice was based shall
continue to exist,
or in the event of a default or contingency which cannot with due
diligence be
cured within a period of thirty (30) days, if Lessee fails to
proceed promptly
after the service of said notice and with all due diligence to
commence to cure
the same and thereafter to prosecute the curing of such default
with all due
diligence (it being intended that in connection with a default not
susceptible
of being cured with diligence within thirty [30] days, the time
within which
Lessee is to cure the same shall be extended for such period as may
be necessary
to complete the same with all due diligence), Lessor, at its
option, may
terminate this Lease and upon such termination Lessee will quit and
surrender
the Premises to Lessor but Lessee shall remain liable as
hereinafter provided.
If
Lessee defaults in any payment of the rent expressly reserved
hereunder,
or any part of the same and such default shall continue for ten
(10) business
days after written notice thereof
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<PAGE>
by Lessor, or if Lessee shall make default in the payment of any
item or any
charge required to be paid by Lessee hereunder, or any part of the
same and such
default shall continue for ten (10) business days after written
notice thereof
by Lessor, Lessor or Lessor's agent or servant may immediately or
at any time
thereafter terminate this Lease, and upon such termination for
failure to pay
such rent, item, or charge, or if this Lease shall terminate by
reason of the
insolvency of Lessee, as set forth above, Lessor or Lessor's agent
or servant
may re-enter the Premises and remove all persons and all or any
property
therefrom, either by summary dispossess proceedings, or by any
suitable action
or proceeding at law or by force or otherwise, without being liable
to
indictment, prosecution, or damage therefor and repossess and enjoy
the
Premises, together with all additions, alterations and
improvements, without
such re-entry and repossession working a forfeiture or waiver of
the rents to be
paid and the covenants to be performed by Lessee during the full
term of this
Lease. Upon termination of this Lease or expiration of Lessee's
right to occupy
the Premises by reason of the happening of any of the foregoing
events, or in
any other manner or circumstances whatsoever, whether with or
without legal
proceedings, by reason of or based upon or arising out of a default
or breach of
this Lease on the part of Lessee, Lessor may, at its option, at any
time and
from time to time relet the Premises or any part or parts thereof,
for the
account of Lessee or otherwise, and receive and collect the rent
therefor,
applying the same first to the payment of such expenses as Lessor
may have
incurred in recovering possession of the Premises, including
attorney's fees and
expenses for putting the same into good order and condition or
preparing or
altering the same for re-rental to the extent Lessor deems
necessary or
desirable and all other expenses, commissions and charges paid,
assumed or
incurred by Lessor in or about reletting the Premises and then to
the
fulfillment of the covenants of Lessee hereunder. Any such
reletting herein
provided for may be for the remainder of the initial term or any
renewal term of
this Lease, as originally granted, or for a longer or shorter
period; Lessor
shall have the right to change the character and use made of the
Premises, and
Lessor shall not be required to accept any substitute tenant
offered by Lessee
or to observe any instructions given by Lessee about reletting. In
any such
case, and whether or not the Premises or any part thereof be relet,
Lessee shall
pay to Lessor the Base Rent and all Additional Rent and other
charges required
to be paid by Lessee up to the later of the time of such
termination of the
Lease or of such recovery of possession of the Premises by Lessor,
as the case
may be, and thereafter, except in a case in which liability of
Lessee as
hereinafter provided, arises by reason of the happening of the
insolvency of
Lessee, Lessee covenants and agrees, if required by Lessor, to pay
to Lessor
(monthly) until the end of the initial term of this Lease, and/or
any renewal
term, as the case may be, the equivalent of the amount of all rent
reserved
hereunder, and all other charges required to be paid by Lessee,
less the net
proceeds of reletting, if any. Lessor shall have the election at
any time in
place of and instead of holding Lessee so liable for subsequent
periods
forthwith to recover against Lessee as damages for loss of the
bargain and not
as a penalty, an aggregate sum which at such time represents the
excess, if any,
of the present worth of the aggregate of the rent and all other
charges payable
by Lessee hereunder that would have accrued for the balance of the
initial term,
and/or any renewal term, as the case may be, over the then present
worth of the
fair market rents and all other charges (less the costs of
anticipated leasing
commissions and tenant improvements) for the Premises for the
balance of such
term.
If
this Lease shall terminate by reason of the bankruptcy or
insolvency of
Lessee, as above set forth, Lessor shall be entitled,
notwithstanding any other
provisions of this Lease or
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<PAGE>
any present or future law, to recover from Lessee or Lessee's
estate (in lieu of
the equivalent of the amount of all r






