EXHIBIT 10.43
TENANCY AGREEMENT
FOR
INDUSTRIAL PREMISES
BETWEEN
JORENT TECHNO GmbH
XXXX - ZEISS - XXXXXXX 0
00000 XXXX
-THE "LANDLORD"-
AND
XXXXXX-PRI AUTOMATION (GERMANY) GmbH
XXXXXXXXXXX XXXXXXX 00
00000 XXXX
-THE "TENANT"-
FOLLOWING TENANCY AGREEMENT IS CONCLUDED:
Owner of the rented property is LEUTRA SAALE
Gewerbegrundstucksgesellschaft mbH & Co. KG, Xxxx- Xxxxx- Xxxxxxx 0 in 07743
Jena, Germany. Jorent Techno GmbH is general tenant of the property and
therefore authorized to let the property to the tenant.
PROPERTY: HALL 1,
XXXXXX-XXXX-XXXXxxX 0, 00000 XXXX
-TRADE AREAS-
SECTION 1 RENTED PROPERTY
(1) Rented property is the coloured area seen in the attached floor plan of hall
1 (attachment 1 and 2 of the tenancy agreement) for the total area of:
1.113 m(2).
(2) The net floor space without consideration of the partition walls is relevant
for the assessment of the rent and the operational and administrative expenses.
Neither tenant nor landlord are able to claim modifications of the rent when the
given area information in m(2) may deviate up to 3% from the actual area rates.
With a deviation of more than 3 % the rent is recalculated according to the
actual rates.
(3) The tenant takes the rented property in the current state. Any additional
construction for the use of the property is the business of the tenant. In this
connection, the tenant has to inform the landlord in time about decisions, plans
and other projects that are required or functional for the construction to
assure a proper process.
This is also valid for processes of construction made by the tenant as far as
after or during the ponstruction accomplished by the landlord further
constructional efforts for the completion of the rented property and/or the
total construction are required by the landlord. As far as the landowner is
constrained by the tenant by default or the non-existing timely co-operation in
this connection, the landlord has to inform the tenant in writing. This can lead
if necessary to no time displacement of the start of the rent (Section 3
paragraph 1 in this contract) if the landlord has informed the tenant in
writing. Furthermore, the tenant has to bear if necessary all additional costs
for official applications, permissions and charges in connection to
constructions accomplished by the tenant.
SECTION 2 USE OF THE PROPERTY
(1) The rented property is let to the tenant as the following trade:
OFFICE, INSTALLATION AND STORAGE AREAS
(2) The rented property must only be used for this agreed contractual purpose.
Any change in the use of the property during the contractual relationship has to
be reported to the landowner via registered mail and needs previous approval of
the landowner.
(3) On the part of the tenant explosive materials must not be stored and
processed. There are no activities allowed that can somehow increase the
insurance risk of the property or disagree official orders.
(4) When the landowner opts the sales tax, then the tenant has to use the rented
property exclusively for attainment rates liable to tax on sales/purchases
(Section 9 paragraph 2 UStG). Those obligations are also valid in case of a
possible permitted sublet or when let to a third party.
SECTION 3 DURATION OF TENANCY/CANCELLATION
(1)The tenancy starts on 1st May 2003
(2)The tenancy is a permanent contract. The contracting parties are able to
cancel the contract with a period of 6 months from the end of the quarter.
(3)Cancellations have to be done by registered mail whereat the particular
declaration of one party of contract has to be received by the other party of
contract no later than the 3rd working day of the first month of the period of
cancellation. The use of Section 545 BGB is impossible.
(4) The landowner is able to cancel the contract as from now without an
adherence of a cancellation period if there is an important reason. Especially,
if the tenant, after written reminders made by the landlord, is in arrears with
the payment of rent and additional expenses longer than 2 months; the amount of
the arrear is more than 2 monthly rents; the bankruptcy proceeding of the
capital of the tenant was instituted or rejected in default of mass; the tenant
carries on using the property contrary to the contract despite all written
reminders made by the landlord and does not use it for the agreed purposes; if
the tenant impinges upon the landlord's rights and lets the complete or parts of
the object to a third party unauthorised; or jeopardises the object or the
building with the use contrary to the contract or significantly neglects the
necessary diligence; if the tenant culpably and vastly violates obligations then
a continuation of the tenancy is unreasonable for the landlord. The legal
requirements for the right of uncommon cancellations stay unaffected.
(5) In case of a cancellation of the contract after paragraph 4 the tenant is
liable for the complete or partial loss of the rent and additional expenses as
agreed in this contract. This is particularly valid if the rented property stays
vacant or has to be let at a lower price after the of the tenant's moving out
until the end of the agreed period of tenancy. In this case, the tenant is not
able to object that the next tenant wants to conclude a new tenancy if the
landlord does not want to conclude a contract with him because of factually
comprehensible reasons. Further claims of the landlord stay unaffected.
SECTION 4 PROPERTY RENT
(1) The rent for the rented property according to Section 1 paragraph 1 is:
Monthly basic rent
For the total area ................ 1.113 m(2) 15.300,00 Euro
Net subtotal ...................... 15.300,00 Euro
Plus VAT (currently 16%) .......... 2.448,00 Euro
Gross property rent ............... 17.748,00 Euro
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Monthly net prepayment of
additional expenses for the
total area is (according to
Section 5 Paragraph 3) currently .. 1.113 m(2) 3.979,50 Euro
Plus VAT (currently 16%) .......... 636,72 Euro
Gross prepayment .................. 4.616,22 Euro
(2) Does the consumer price index (basis 1995= 100 points) officially fixed by
the German Federal Statistical Office changes 5% or more compared with the
status of the time of the conclusion of the contract, every party has the right
for
a rent modulation with equal percentage relation. This change becomes operative
from the month when 5% or more percent were reached.
(3) If there is a rent modulation because of the protrusive stable value clause
then the clause is applicable again according to the terms of the previous
paragraph. According to that, the rent has to be modulated again as soon as
there are new consumer price index changes of at least 5%.
(4) The landlord has to inform the other party of contract in case of a rent
increase and the tenant has to inform the other party in case of a reduction.
Those changes have to be presented in a settlement. Does this not happen
immediately, this means no abdication of modulation. The tenant defaults with
the payment of the increasing amounts and the landlord defaults the refunding of
the reduced amount not until the reception of the particular settlement.
(5) If the defined index regulation (see paragraph 2) is replaced by a new one
during the contract period it has to be changed into new original regulation.
The time of this change is the month when the Euro-amount of the index
development was modulated ultimately. Payment obligations in the past have to be
considered as concluded; because of a new index regulation the paid amount of
money won't be retroactively calculated again.
SECTION 5 ADDITIONAL EXPENSES
(1) The additional expenses that are produced all the time through the proper
use of the property described in Section 1 paragraph 1, especially expenses seen
in Attachment 3 in Section 27 of the II. Regulation of Calculation are
proportionally paid by the tenant. At present, this includes all expenses
actually incurred thereby for:
a) Running official charges of the property especially property tax
b) Expenses for water supply
c) Expenses for dewatering
d) Expenses for the handling of the heating system including waste gas facility;
the handling of the central fuel supply facility; the independent industrial
supply of heat, the cleaning and maintenance of single storey heating
e) Expenses for the handling of the water supply facility based on the measured
consumption
f) Expenses for connected heating and warm water supply facilities
g) Expenses for the handling of automatic lifts for people and loads
h) Expenses for street-cleaning and garbage collection as well as the clearance
of snow and ice in winter
i) Expenses for building cleaning including the basement garage and the
professional vermin killing
j) Expenses for the maintenance of the outside facilities
k) Expenses for electricity supply like lighting, power electricity etc
l) Expenses for chimney sweeping as far as not included in points d,e,f
m) Expenses for general liability insurance and property damage liability
insurance
n) Expenses for caretaker services
o) Expenses for the handling of cable termination and community aerial
facilities
p) Expenses for the handling of the maintenance of technical facilities
q) Expenses for security services as well as expenses for the property
management
r) other expenses like for instance:
- cleaning of the gutter
- service and maintenance of the fire detector facilities
- maintenance of fire extinguishers (checkups and changes of the
extinguish substances)
- maintenance and control of the lightning conductor facilities
as well as proportional costs for the landlord's service and maintenance outside
of the property according Section 8 paragraph 4.
The tenant directly concludes contracts with supply and disposal companies for
the supply or disposal of water/waste water and heating.
Arising expenses in the property for phone, cleaning and other services have to
be contractually arranged by the tenant and directly balanced accounts with the
service provider.
(2) As far as operating and administrative expenses are not directly paid by the
tenant, the tenant has to pay a deposit for those expenses which are appropriate
and at equitable discretion of the landlord. The landlord gives a settlement
about those expenses not later than 6 months after a settlement period. The
tenant has the right to see the settlement's receipts and make copies of that
resp. to ask the landlord to make copies of those receipts at the tenant's
expenses.
The tenant has the right to claim objections in writing within a period of 4
weeks after the settlement's access. The settlement is considered as approved if
this does not happen. Possible back pays or overpays have to be balanced within
8 weeks by the tenant after the settlement's access or balanced by the landlord
after creating the settlement. The period of settlement is one calendar year.
(3) The landlord has the right and duty to assimilate the height of the deposit
at equitable discretion in consideration of the actual arising expenses and the
settled costs after every annual settlement.
The landlord is able to assimilate expenses during the settlement's period after
an extraordinary increasing of single types of expenses with an according impact
on overall expenses resp. after the initiation of official duties. This is
effective from the first day of the month after the increase but by all means
after 30 days with previous notification.
The landlord has always the right (even effective during the running
settlement's period) to arrange a new distribution measure for the additional
expenses at equitable discretion as far as it is appropriate.
SECTION 6 REGULATION OF THE PAYMENT DATE, PAYMENT AND DELAYED PAYMENT
(1) The rent including the deposit for operating and administrative expenses
plus VAT has to be paid monthly in advance and exempt from charges by the
third working day every month onto the specified account of the landlord. At the
beginning of the tenancy it is:
Account number: 0000000
X/x XxxxXxxxxxxxxxx Xxxx
Bank code: 00000000
(2) If the tenant defaults the payment of the rent or the deposit for operating
and administrative expenses he has to pay default interest amounting to 4% over
the particular base rate of the Deutsche Bundesbank with the next due payment
for the landlord.
SECTION 7 DEPOSIT
(1) The tenant has to pay an interest bearing deposit amounting to 2 monthly net
rents including prepayments for additional costs plus VAT due at the beginning
of the tenancy to protect the claims of the landlord in this contract. The
deposit can be provided- at tenant's own option- in form of an unlimited,
unconditional, directly enforceable guarantee.
The deposit has to be increased concerning the same percentage amount as the
rent and additional expenses are increased in Section 4 paragraph 1 in this
contract. If rent and additional expenses change the tenant has to fill up the
deposit given above when the additional amount is at least 250, -E.
(2) A credit of the tenant with claims for back pays from the deposit against
due allowances of the landlord during the tenancy is impossible.
(3) The landlord is able to take money from the tenant's deposit during the
tenancy because of due claims after previous notification of the tenant. The
tenant has to refill the deposit by the original amount within 4 weeks after a
written order from the landlord.
(4) The landlord has to give the deposit/guarantee back immediately to the
tenant after the ending of the tenancy if an as far as the tenant fulfils all
claims of the landlord appearing in this contract.
SECTION 8 CONDITION OF THE PROPERTY/MAINTENANCE OF THE PROPERTY
(1) The tenant uses the property i.e. the property is free from defects -
concerning the contractually agreed purpose- that could cancel or decrease the
value of the property or its suitability for the contractually provided use.
(2) The handing over took place on the occasion of a common inspection of the
parties. The tenant has accepted the condition of the property as specified in
the contract via signing the handover certificate.
Damages which can result from remaining construction or other applicable
construction for the building's completion that occur in connection with the
complete construction measures have to be tolerated by the tenant. This does not
authorize him to obtain an abatement of rent.
(3) The tenant has to treat the property carefully. The maintenance and service
of the property resulting from the use according to regulations have to be paid
by the tenant when there are bagatelle repairs up to 150, E in an individual
case up to a maximum amount of 1.500, E per annum plus the applicable VAT at
a time. The maximum amount is liable to the agreed regulation for the changing
of the rent written in Section 4 paragraph 3. Unaffected of the liability of the
tenant for repairing are parts of the outer skin, service on the roof and truss
as well as service pipes of the building. Aesthetic repairs have to be carried
out professionally at appropriate intervals using materials that fit the
standard of the building. If the property areas or any community facility are
partly or totally destroyed by constructional fault of supporting building
parts, fire, explosion, lightning, storm, force majeure, war impact or other
events this
Tenancy agreement expires after the landlord announced that the
rebuilding takes longer than 3 months. The landlord has to announce this within
2 weeks after the damage. If the contractual use of the destroyed or damaged
rooms or areas is not possible any longer the tenant has to pay the rent from
the day of the damage.
(4) The tenant has to inform the landlord about any property damages
immediately. The tenant is liable to pay compensation for a damage caused by a
tardy notification. Service and maintenance of traffic areas outside the
property like staircase, access through the basement garage as well as the
basement garage itself are the landlord's business who can proportionally claim
arising costs within the scope of the settlement of the operational and
administrative expenses regulated in Section 5 paragraph 2.
(5) The tenant is allowed to make fundamental changes upon and in the property
especially rebuilding and fixtures, installations etc. if the landlord
previously agreed on it.
(6)The landlord is allowed to make reparations without the approval of the
tenant if the reparations serve to maintain and complete the building or the
property or to avoid imminence or to remove damages. Whereat the operating
schedule and the interests of the tenant have to be considered and the landlord
has to coordinate the reparations with the tenant. This is also valid for
reparations that are not actually necessary but appropriate. In either case, the
landlord has to inform the tenant in time and in writing about the start, form
and amount of the planned construction.
If the tenant has to tolerate those reparations he is not able to obtain an
abatement of rent or to claim damages and he doesn't have the right of
retention. He just has those rights if the use of the property or parts of it is
restricted.
(7) The landlord has the right to enter the property at any time or else during
the usual office hours. The landlord has to previously inform the contact
person-given by the tenant- about this visit as far as possible.
SECTION 9 GUARANTEE AND LIABILITY
INSURANCE OF OBJECTS BROUGHT BY THE TENANT
(1) The assertion of warranty rights on the part of the tenant because of
property damages or the landlord's default to remedy deficiencies is impossible
if the deficiency is caused by the landlord intentionally or grossly negligent.
(2) The tenant is liable for property damages, accessories, facilities and
equipment, community areas of the building as well as all areas belonging to the
building caused by him, his employees, possible subtenants, costumers or
suppliers. This is especially valid if there are property interferences caused
by the arrangement of equipment or the storage of items. The tenant has to
supply evidence that there was no negligence.
(3) The tenant has to credit possible damages or claims for damages against
assurance benefits that he receives.
(4) The application of Section 566 paragraph 2 BGB (German Civil Code) is
impossible if the landlord alienates the property or the whole building in the
future.
(5) The usual building insurances are contracted on the part of the landlord.
Rebuilding and fixtures are not included here. The arising costs for a higher
insurance on the part of the landlord are paid by the tenant if he asks the
landlord for one.
(6) For the loss of payments or services on the part of the landlord as
contracted caused by strike, superior force or other reasons that can't be
averted by the landlord the tenant is not entitled to claim for damages or
decrease. This is especially valid for the breakdown of water, electricity, fuel
etc. and results from it. Extraneous cause of a third party like traffic
diversions, digging, road blocks, disturbances through noise, smell and dust or
similar are not considered as tenancy failure if they are not caused by the
landlord.
(7) The insurance of objects bought by the tenant is the tenant's business. The
landlord is not liable for damages upon those objects and it is irrelevant what
the damage caused unless the tenant supplies evidence that the landlord culpably
caused the damage.
(8) Losses of keys have to be reported immediately to the management or the
landlord. The landlord is able to claim the reconstruction of the functioning of
the central closing facility if there is a central closing installed. The
arising expenses have to be paid by the tenant.
SECTION 10 SUMMATION/RIGHT TO RETAIN
The tenant is only able to charge up due rent payments and allowances from
operational and administrative expenses against counterclaims that are
unquestioned and legally established. The assertion of the right of retention
and
refusal of services is impossible unless they are based on counterclaims that
are unquestioned and legally established.
SECTION 11 ARRANGEMENT OF MACHINES, SUPPLY AND USAGE OF HEATING, VENTILATION,
ELECTRICITY AND OTHER SERVICES
(1) The tenant has to be informed by the landlord about the permitted weight of
the floor ceilings and get the permission from the landlord before the arranging
of machines on the rented property. The tenant is solely responsible and liable
to pay compensation if there are any damages caused by an exceedance of this
permitted weight.
(2) Machines have to be removed on the landlord's request if they affect the
property aversely like cracks in the walls caused by concussions.
(3) The basis heating and/or the air condition have to operate according to the
particular demands of all tenants and the common operation hours. Room air
facilities- if existent- have to be operated year-round. The regulations of the
DIN are valid for the room temperature. If a tenant does not use the heating
etc. he still has to pay the additional expenses.
(4) The available mains for electricity- including possible phone, data or
aerial wirings-, gas, water and heating etc can only be engaged by the tenant if
the available facilities are not overloaded. The tenant is able to satisfy an
increased demand by means of an expansion of the supply pipes at his own
expenses after the previous approval of the landlord in writing. The landlord
also has to approve in writing if there is a relocation of other mains on the
property.
(5) The tenant has to arrange an immediate shut down and has to inform the
landlord in case of damages or disturbances on the supply pipes. The tenant
himself has to delete immediately imminent danger in case of danger in delay.
Further damage clearance is arranged by the landlord as far as the service and
maintenance has to be done by the tenant according to this contract. If this is
not the case, the landlord also has to pay for the clearance of imminent danger.
For the avoidance of extremely dangerous moments outside the usual working
hours, the tenant has to name a liable contact person and has to make necessary
completions for this in time resp. if and under which circumstances the landlord
and the necessary damage staff get access to the property.
(6) Waste caused by the tenant's industrial work -unless it's no office or bulky
waste- are not allowed to be thrown into the trash bins that are provided by the
landlord for general wants. The tenant himself has to take care of this specific
waste. Domestic waste has to be chopped up and has to be binned into the
positioned trash bins.
The tenant has to use facilities for waste disposals (like waste paper, paper
board container, glass, plastics) if they exist. Independent from that, the
tenant has to bring hazardous waste (like batteries, paint, oil) to public
collecting points. The tenant has to dispose any contaminations on the property
caused by transport or other actions.
SECTION 12 SUBLETTING
(1) The tenant must not let the property to a third party without the written
approval of the landlord. The approval must not be refused by the landlord
unless there are important issues that speak for a refusal. An important issue
are: if the particular subtenant does not sublet the property to contractors
(for the purpose of the sales tax regulation) who solely use the property for
exchange that does not exclude input VAT. The permission is only valid for the
individual case and can be cancelled at any time because of important reasons.
(2) If the landlord nevertheless sublets to other contractors who make exchanges
which exclude input VAT, the landlord will increase the rent for the property
area for the claim incurred. Further claims on the part of the landlord will
remain unaffected hereof.
(3) The tenant already now assigns the appropriate claims to the landlord
concerning a possible subletting and the connected claims together with the lien
amounting to the rent claims of the landlord.
SECTION 13 RETURN OF THE PROPERTY
(1) The tenant has to relegate the property into its original state- in case of
structural alterations- when the tenancy ends. The tenant has to pay, on the
landlord's request, the amount of money for a deconstruction estimated by an
architect instead of a construction on the part of the tenant. Besides, the
tenant has to give back the property in the state corresponding to the
fulfilment of his duties regulated in Section 8 Paragraph 3.
(2) The tenant has to give back the property clean swept when the tenancy ends.
All keys have to be given back to the landlord for free, also the keys that were
made at the expenses of the tenant.
(3) The landlord has the right to open the property, get it cleaned and repaired
if needed by a professional company and make new locks and keys at the expenses
of the tenant. This is valid if the tenant does not fulfil his incumbent duties
after an effectless period of grace connected with a refusal menace on the part
of the landlord.
(4) If the tenant does not leave the property in time he is reliable for all
damages caused through this. The landlord can claim up to 3 monthly rents as
compensation without supplying evidence of the causal connection between the
behaviour of the tenant and the occurred damage. Further claims on the part of
the landlord that need proof remain unaffected hereof. The tenant has to prove
if there was no damage at all or if the damage was of much lower amount.
(5) Rebuildings and fixtures which were not removed belong to the landlord
afterwards without any compensation payment for the tenant.
(6) Outdoor advertising has to be removed at the expenses of the tenant until
the return of the property. The landlord or a third party are able to make
necessary reparations at the expenses of the tenant after an appropriate
appointment of time and a period of grace connected with a refusal menace, if
the tenant does not fulfil his duty or not in time.
(7) The tenant has to tolerate the application of tenancy posters onto windows
or other appropriate locations and to permit inspections of interested tenancy
parties during the last 3 months of the tenancy.
SECTION 14 JURISDICTION REGULATION
Place of performance and solely jurisdiction for all regulations in this
contract -as far as legally permitted- is Jena.
SECTION 15 FINAL CLAUSES
(1) Changes, completions and subsidiary agreements connected to this contract
need to be in writing in order to be considered as valid. If the members of the
parties make such agreements verbally, telephonically or in writing, they do
need in any case the written confirmation of the landlord's management in order
to consider the agreement as valid.
(2) If a regulation in this contract is ineffective or questionable this does
not affect the validity of the other regulations; in this case, the parties
should make new contractual agreements that correspond to the ineffective or
questionable regulation. This is also valid for loopholes.
(3) This contract is also obligatory for possible legal successors of the
parties.
(4) Regulations of the BGB (German Civil Code) are valid if the tenancy is not
regulated in this contract.
(5) The tenant agrees that the landlord saves the data -required for the
execution of the contract- in files and maintain those in a data pool for the
purpose of central administration.
(6) The landlord is able to enact house rules for individual buildings resp. for
the industrial object as a whole that regulate all issues concerning the users
of the tenancy, community facilities and other related business.
(7) The tenant is able to rent storing positions, telephone mainlines and
communicating equipment. A corresponding contractual proposal is submitted
separately at the request of the tenant.
