AMENDMENT TO LEASE
West L.A. Properties, a California limited partnership (Lessor) and
Kaynar Technologies Inc. (Lessee) hereby amend the Lease between them dated
January 3, 1994, (the Lease) covering a portion of the premises commonly
known as 000 Xxxx Xxxxxxxx, Xxxxxxxxx, Xxxxxxxxxx as follows:
1. TERM
The term of the Lease, now scheduled to end on December 31, 1998,
is extended to September 30, 2001. Paragraph 50 of the Lease, which granted
Lessee an option to extend the term of the Lease, is hereby deleted; Lessee
has no further option to extend.
2. RENT
Effective on October 1, 1996, the Base Rent shall be $14,000 per
month. The security deposit shall
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be reduced to $14,000 Lessor will apply the $1,200 excess it now holds to the
rent due on September 1, 1996. Rent shall continue to be payable on the
first day of each month. Effective on April 1, 1999, the Base Rent shall be
increased in accordance with the Cost of Living Adjustments provided for in
paragraph 49, of the Lease, except that the Base Month (the denominator in
the fraction) shall be August 1996 and the Comparison Month (the numerator in
the fraction) shall be February 1999.
3. TENANT IMPROVEMENTS
Lessee proposes to make certain Tenant Improvements in accordance
with plans and specifications that Lessee will promptly prepare and submit to
Lessor for its approval, which approval will not be unreasonably withheld or
delayed. Lessee will make those improvements in a good and workmanlike
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manner and in accordance with the requirements of paragraph 7.3 of the Lease.
Lessor will not require a lien and completion bond provided; (a) Lessor
approves the general contractor and its financial statement, and (b) Lessor
is given an opportunity to file and post an effective notice of
non-responsibility. Those improvements shall be subject to the provisions of
paragraph 7.4 of the Lease. Upon completion of those improvements in
accordance with the Lease requirements, Lessor will lend to Lessee an amount
(not to exceed $205,000) which Lessee demonstrates by books, records and
canceled checks to represent Xxxxxx's out-of-pocket cost in connection with
those improvements. The loan shall be funded in increments of not less than
$50,000 prior to completion of improvements provided Lessee gives Lessor
evidence of (a) lien free completion of work of a value of not less than the
required draw; and (b) certification by the contractor that the work
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remaining to be done can be completed at a cost which will not exceed the
undrawn balance of the $205,000. Total incremental advances shall not exceed
$150,000. Any remaining loan shall be funded only after expiration of the
period during which mechanic's liens can be filed. Xxxxxx's loan to Lessee
shall be represented by Xxxxxx's promissory note (the Note) in the form
attached as Exhibit A. The Note shall be payable in equal installments of
principal and interest over the number of full months remaining between the
date of the Note and September 30, 2001. It is a condition precedent to
lessor's loan that Lessee not be in breach of any of its obligations under
the Lease. For this purpose, a breach is a default which shall have extended
beyond any notice and cure periods. A default in any payment under the Note
shall constitute
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a Breach under the provisions of paragraph 13 of the Lease.
Dated: August 21, 1996
LESSOR: WEST L.A. PROPERTIES, A
CALIFORNIA LIMITED PARTNERSHIP
By The Weil Family Trust
dated October 3, 1984,
General Partner
By /s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxx, Trustee
LESSEE: KAYNAR TECHNOLOGIES INC.
By /s/ X.X. Xxxxxx
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Xxxxx X. Xxxxxx, Vice
President
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EXHIBIT A
Santa Monica, California
$__________ __________________, 1996
In installments as hereafter stated, for value received, the undersigned
promises to pay to West L.A. Properties, or order, at Santa Monica,
California, the principal sum of $___________, with interest from date of
advance(s) on unpaid principal at the rate of 10% per annum. This note is
executed pursuant to the provisions of a Lease (the Lease) between Maker as
Lessee and Payee as lessor. The Lease consists of the original lease dated
January 3, 1994, as amended on __________, 1996.
Principal and interest shall be payable in the sum of $_________ or more on
the first day of each month commencing on _________, 1996. The note will
become immediately due and payable on the first to occur of the following:
(a) any Default or Breach by the undersigned of any of its obligations under
the Lease as those obligations are defined in the Lease; or (b) September 30,
2001.
The maker(s) acknowledge(s) that late payment to payee will cause payee to
incur costs not contemplated by this loan. Such costs include, without
limitation, processing and accounting charges. Therefore, if any installment
is not received by payee when due, maker(s) will pay to payee an additional
sum of 6% of the overdue amount as a late charge. The parties agree that
this late charge represents a reasonable sum considering all the
circumstances existing on the date of this agreement and represents a fair
and reasonable estimate of the costs that payee will incur by reason of late
payment.
The parties further agree that proof of actual damages would be costly or
inconvenient. Acceptance of any late charge will constitute a waiver of the
default with respect to the overdue amount and will not prevent payee from
exercising any of the other rights and remedies available to payee.
Should default be made in the payment of any installment of principal or
interest when due, then the whole sum of principal and interest shall become
immediately due and payable at the option of the holders of this note. The
undersigned further promise to pay all costs of collection, including
attorney's fees incurred in the collection of this note. Principal and
interest payable in lawful money of the United States.
Kaynar Technologies Inc.
By
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