EXHIBIT 10.7
LEASE AGREEMENT (Replace the agreement signed 10.11.1995)
1 TENANT Planar International Oy
X.X.Xxx 00
00000 Xxxxx
2 LANDLORD Metra Real Estate
X.X.Xxx 000
00000 Xxxxxxxx
or a third party selected by the Landlord
3 PREMISES Landlord does hereby lease and demise to the Tenant and Tenant does
hereby take and rent from Landlord, the following premises:
Industrial and office building situated at parcel nr 4 in quarter nr
22009 in the city of Espoo. The Tenant will continue to lease the
space in the building that the Tenant is occupying at the moment,
beginning on the 1/st/ of June 1998.
Clean room space 1600 m/2/
Production space 4354 m/2/
Office space 2642 m/2/
--------------------------------
Total 8596 m/2/
The Tenant will also lease a 300 m/2/ space beginning of the 1/st/
of August 1998(appendix 1).
The rent will be for office space rent as agreed in this contract.
The Tenant has also right to use the east side platform passage hall
as a store so that the total maximum width for the selves are 1,2
meter and there is no handicap to use the lift. The Tenant will pay
for this right 1 000 FIM a month. The right is valid up to 1/st /of
January 2000.
There is no safety guarantees for the store from the Landlord.
4 OPTION The Tenant has an option to lease also the rest of the space in the
building (1695 m/2/ ,appendix 1). The rent will be for office space
rent as agreed in this contract. This option can be executed on the
1/st/ of August 2000 and a written notice thereof must be delivered
to the Landlord before the 1/st/ of January 2000.
5 TERM This lease agreement shall begin on the 1/st/ of June 1998 and shall
end on the 31/st/ of December 2008 without any notice.
6 CONDITION OF THE LEASED PREMISES
The premises are leased to the tenant in the condition said premises
are at the time of signing this lease agreement.
7 USE OF THE LEASED PREMISES
The Tenant shall use and occupy the leased premises for general
production and office purposes mentioned in the articles of
incorporation of the Tenant. The Tenant shall comply with all the
Rules and Regulations in building fire safety, environment
protection, waste management codes etc.
8 OBLIGATIONS IN THE LEASE AGREEMENT
The Tenant shall undertake, if necessary, in case of using the option
(paragraph 4) to extend the lease period for the empty office space
about 700 m/2/ up to 1/st/ of August 2002.
If the rest of the empty space about 995 m/2/ is empty at the moment
when the notice of using the option is given to the Landlord, the
Tenant is obliged to pay the rent starting on the 1/st/ of January
2000 (appendix 1).
9 MAINTENANCE OF THE PREMISES
The Tenant is responsible for normal maintenance and annual
reparations of the premises at its cost. The Tenant at its cost takes
care of maintenance of the systems of the premises, like ventilation,
heating, water, sewage, fire alarm, alarm lighting, lifts etc. and
the yard area.
The Landlord is responsible for the renovation of the premises and
purchases of worn-out systems of the building. These systems are
considered as worn-out when the repair cost are more than 80% from
the cost of recent acquisition or if the system is too poor to
repair.
The landlord is responsible only for investment more than 50.000 FIM.
10 TAXES AND PAYMENTS
The Landlord will pay the property taxes of the premises and the
Tenant will take care of other payments of the property.
11 EXPENSES
The Tenant is responsible for payments for utilities like water,
electricity, sewage, other utilities and maintenance and operating
expenses of the premises. The Tenant will also pay the share of the
district heating cost, that is used to warm up the process water,
based on a separate measurement.
The Landlord is responsible for the district heating costs of the
premises. The parties can agree about the transferring of also this
cost to be paid by the Tenant. The Landlord will be responsible for
the repair and maintenance and electricity cost caused by the heat
recovery system, based on a separate measurement.
12 BASE RENT
For clean room areas (1600 m/2/) 72.12 FIM/m/2//month.
For office, meeting room, cafe and kitchen areas (2642 m/2/) 51.51
FIM/m/2//month.
For other production space (4354 m/2/) 41.21 FIM/m/2//month.
The total base rent in the beginning of agreement period is 431 925
FIM/month.
The rent sums above do not include value-added tax. That can be
added on the figures, if mutually agreed.
The monthly base rent shall be fully adjusted by any change in the
Finnish Consumer Price Index. The adjustments shall be based on the
indexes of May and November; the base index is the Consumer Price
Index of March 1998 (1429). The thus adjusted base rent is charged
starting from the beginning of the following January and July each
year, first time 1/st/ of July 1998.
Starting 1/st/ of June 1998 the base rent for the rest of the vacant
space will be the rent for office space as agreed in this contract
(51.51 FIM/m/2//month v-a tax 0%).
13 GUARANTEE
The Tenant will provide a guarantee for the whole lease agreement
from its Mother Company Planar Systems Inc.
14 METHOD OF PAYMENT
The rent shall be paid in advance each month before the fifth day of
the month on the Landlords bank account.
The Tenant agrees to pay as supplemental base rent for the leased
premises an amount equal to the highest penal interest rate
stipulated by Finnish law, of any monthly base rent payment which is
not received by the Landlord within five days of the beginning of the
month.
15 CONDITION OF THE PREMISES
The Tenant agrees to maintain the premises in the current condition
excluding normal wearing away.
At the end of this lease agreement the Tenant will take to pieces all
the equipment owns by the Tenant and hand over the space as clean out
and patched up.
16 ENVIRONMENTAL LIABILITY
The Tenant ensures that all the activities that are pursued in the
facility owned by the Landlord are according to the Finnish
Environmental Laws and that the Tenant has all the necessary
permissions from the authorities.
The Tenant will report immediately the contingent deviations to the
Landlord. The Landlord has a right to perform environmental
inspections and to stop activities, which are against authority
regulations and Finnish Law. The Landlord is entitled for
compensation if the Tenant by violating these regulations inflicts
obligations to the Landlord.
The lease guarantee given by the Planar Systems Inc includes also the
environmental liabilities.
17 INSURANCE
The Landlord shall keep the building insured against loss by fire or
other casualty.
All property in the leased premises belonging to the Tenant shall be
at risk of the Tenant and covered by policies maintained by the
Tenant.
The Tenant shall also maintain a policy for a loss of profits
insurance etc.
18 ASSIGNMENT AND SUBLETTING
The Tenant shall not assign, mortgage or encumber this lease nor
sublet or permit the leased premises or any part thereof to be used
by others, without the prior written consent of the Landlord in each
instance. The Landlord cannot refuse the consent without weighty
reasons.
19 SELLING THE PROPERTY
If the Landlord decides to use its right of option to acquire the
property and later decides to sell the property, the Landlord grants
to the Tenant the right of first refusal to purchase the property at a
price agreed upon with a third party.
20 CLEAN ROOM STRUCTURES AND EQUIPMENT
The Landlord agrees to sell to the Tenant the removable clean room
structures and equipment for 10 000 FIM at the end of lease period.
21 APPLICATION OF THE TENTANCY ACT
This contract is to be governed by the Finnish Tenancy Act, excluding
possible exceptions that stipulated in this contract.
22 DISAGREEMENTS FORUM
The parties agree to try to work out all disagreements concerning this
contract by mutual negotiations.
Disagreements that cannot be solved by mutual negotiations shall be
brought in a court of arbitration, consisting of one member, and
decided based on the laws of Finland.
23 EFFECTIVE DATE
This agreement becomes effective on the date of signature and after
the Landlord has received the lease guarantee covered the whole
contract given by Planar System Inc. And it will be implemented in
this lease relation beginning on the 1/st/ of June 1998.
24 CONTRACT COPIES
This contract is made out in duplicate, one for each party.
Espoo 20/Th/ of May 1998
Planar International Oy Metra Real Estate
Xxx Xxxxx Mikko Kuumola Xxxxx Xxxxxxx Aki Tarjasalo
