THIRD AMENDMENT TO
INDUSTRIAL SPACE LEASE
THIS THIRD AMENDMENT TO INDUSTRIAL SPACE LEASE is dated as of the ___
day of November, 1996 by and between CENTERPOINT PROPERTIES CORPORATION, a
Maryland corporation (the "Landlord") and HALO INDUSTRIES, INC., an Illinois
corporation doing business as HALO ADVERTISING SPECIALTIES (the "Tenant").
RECITALS
A. LaSalle National Trust, N.A., not personally but solely as Trustee
under a certain Trust Agreement dated August 14,1990 and known as Trust No.
115722 ("Original Landlord") and Tenant entered into that certain Industrial
Space Lease dated as of December 30, 1992 as modified by that certain Amendment
to Industrial Space Lease dated May 1, 1995 and Second Amendment to Industrial
Space Lease dated April ___, 1996 (said Lease and Amendments are herein
collectively referred to as the "Lease") with respect to certain premises
located in the building commonly known as 0000 Xxxx Xxxxx Xxxxxx, Xxxxx,
Xxxxxxxx as more particularly described in the Lease (the "Project"). All terms
used herein, unless otherwise specified, shall have the meaning ascribed to them
in the Lease. In the event of a conflict between the terms and conditions of the
Lease and the terms and conditions of this Amendment, the terms and conditions
of this Amendment shall prevail.
B. Landlord is the successor in interest to Original Landlord's
interest in the Lease.
C. Tenant has requested and Landlord has agreed to expand the "demised
premises" in order to include the space consisting of 48,125 square feet as
depicted in EXHIBIT A attached hereto and by this reference made a part hereof
(the "Expansion Premises"), all on the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree
as follows:
1. RECITALS. The Recitals are incorporated into this Amendment as if
fully set forth in this Section 1.
2. EXPANSION PREMISES. As of December 1, 1996 ("Effective Date"),
Landlord shall lease to Tenant and tenant shall accept the Expansion Premises as
part of the premises for the balance of the Term. After the Effective Date, the
terms "premises" and "demised premises" as used in the Lease shall be deemed to
include the Expansion Premises, provided, however, that the square foot area of
the Expansion Premises shall not be included in the calculation of Rent
Adjustments under the Lease. Rent Adjustments with respect to the Expansion
Premises shall be determined in the manner set forth in Paragraph 4 below.
Tenant hereby acknowledges and agrees the Expansion Premises shall be tendered
to and accepted by Tenant in its "as-is" and "where is" condition.
3. BASE RENT. All terms and conditions of the Lease shall be deemed to
apply to the Expansion Premises except that Monthly Base Rental for the
Expansion Premises shall be as follows:
MONTHLY MONTHLY
BASE RENTAL BASE RENTAL
PERIOD EXPANSION PREMISES ENTIRE PREMISES
------ ------------------ ---------------
December 1, 1996-September 30, 1997 $12,632.81 $55,235.17
October 1, 1997-September 30, 1998 $13,434.90 $57,939.84
October 1, 1998-September 30, 1999 $14,036.46 $61,278.69
October 1, 1999-September 30, 2000 $14,638.02 $62,826.28
October 1, 2000-September 30, 2001 $15,079.17 $65,673.57
October 1, 2001-September 30, 2002 $15,560.42 $67,712.89
October 1, 2002-September 30, 2003 $16,041.67 $69,755.26
Total Base Rent shall be the sum of all Monthly Base Rental payable by
Tenant under the terms of the Lease and this Amendment.
4. ADDITIONAL RENT Commencing on the Effective Date and on the first
day of each month thereafter until the earlier of (1) the Termination Date of
the Lease; or (ii) the Expansion Termination Date as set forth in Paragraph 5
below, Tenant shall pay Landlord as an additional Rent Adjustment with respect
to the Expansion Premises, without offset or deduction and in addition to the
Base Rent set forth hereinabove, the amounts set forth below:
(a) The sum of $802.08 per month for the payment of Tenant's
Proportion of Expenses with respect to the Expansion Premises;
(b) An amount equal to the sum of (i) $5,855.21 plus (ii) the
amount by which Taxes for the Project exceed $1.46 per square foot area
of the Project, multiplied by the square foot area of the Expansion
Premises divided by twelve, which sum shall be deemed to be Tenant's
Proportion of Taxes with respect to the Expansion Premises. By way of
example only, in the event Taxes paid during calendar year 1998 for
1997 Taxes equal $1.50 per square foot area of the Project, Tenant
shall pay to Landlord the sum of
$5,855.21 + {[($1.50 - $1.46) x 48,125]/12} =
$5,855.21 + {[$.04 x 48,125]/12} =
$5,855.21 + {$1,925/12} =
$5,855.21 + $160.42 = $6,015.63 per month
Such amounts shall be payable by Tenant to Landlord in addition to any
sums payable to Landlord as Rent Adjustments in the Lease for the balance of the
premises.
5. TERMINATION OPTION. Tenant shall have the option ("Termination
Option") to terminate the Lease with respect to the Expansion Premises only upon
the following terms and provisions:
(a) Tenant gives Landlord prior written notice ("Termination
Notice") of Tenant's exercise of the Termination Option specifying an
effective date for such termination ("Expansion Termination Date") as a
date not less than nine (9) months subsequent to Landlord's receipt of
the Termination Notice. The Termination Notice shall not be effective
unless accompanied by a termination fee ("Termination Fee") in
certified funds in the amount set forth below:
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EXPANSION TERMINATION DATE TERMINATION FEE
-------------------------- ---------------
December 1, 1996-September 30, 1997 None
October 1, 1997-September 30, 1998 $222,091.00
October 1, 1998-September 30, 1999 $202,735.00
October 1, 1999-September 30, 2000 $178,033.00
October 1, 2000-September 30, 2001 $151,240.00
October 1. 2001-September 30, 2002 $122,063.00
October 1, 2002-September 30, 2003 $90,070.00
The Termination Fee shall be earned by Landlord upon receipt and shall
not be refundable under any circumstances.
(b) Tenant is not in default under the Lease either on the
date Tenant delivers the Termination Notice of at any time prior to the
Expansion Termination Date.
(c) The Termination Option herein granted shall automatically
terminate upon the earliest to occur of (i) the expiration or
termination of the Lease, (ii) the termination of Tenant's right to
possession of the premises or the Expansion Premises, (iii) any
assignment or subletting by Tenant, or (iv) the failure of Tenant to
timely or properly exercise the Termination Option.
(d) Tenant shall remain obligated to perform each and every
term, covenant, condition and agreement to be performed by Tenant under
the Lease, including, without limitation, the obligation of the Tenant
to pay all Rent and other payments which are the obligation of the
Tenant under the Lease with respect to the Expansion Premises through
and including the Expansion Termination Date. Tenant's exercise of the
Termination Option shall in no manner affect Tenant's obligations under
the Lease with respect to the remaining premises.
6. NO OTHER MODIFICATION. The Lease is only modified as set forth
herein and in all other respects remains in full force and effect.
7. SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns.
8. MODIFICATION. This Amendment may not be modified or amended except
by written agreement executed by the parties hereto.
9. GOVERNING LAW. The validity, meaning and effect of this Amendment
shall be determined in accordance with the laws of the State of Illinois.
10. COUNTERPARTS. This Amendment may be executed in two counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
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11. SEVERABILITY. Landlord and Tenant intend and believe that each
provision in this Amendment comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision in this Amendment
is found by a court of law to be in violation of any applicable ordinance,
statute, law, administrative or judicial decision, or public policy, and if such
court should declare such provision to be illegal, void or unenforceable as
written, then such provision shall be given force to the fullest possible extent
that the same is legal, valid and enforceable and the remainder of this
Amendment shall be construed as if such provision was not contained therein.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first above written.
CENTERPOINT PROPERTIES HALO INDUSTRIES, INC., an
CORPORATION, a Maryland Illinois corporation
corporation
By By:
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Its: Its:
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By By:
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Its: Its:
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