EXHIBIT 10.18(a)
EXHIBIT "A"
ADDENDUM TO LEASE
FOR PREMISES COMMONLY KNOWN AND DESIGNATED AS:
OFFICES #0, 0, XXX 0, XXXXXX XXXXX XX XXX XXXXX XXXXXXXX
000 XXXXXXXXX XXXXXX,
XXXXXXXXX XXXXX, XXXXXXXXXX
This Addendum to Lease executed on March _____, 2000, by and between
XXXXXXX XXXXXX, as Landlord, and SKECHERS U.S.A., Inc., a Delaware corporation,
as Tenant, is an integral part of said Lease as if fully set forth therein.
A. OPTION TO EXTEND LEASE TERM.
So long as Tenant has fully performed all the obligations on its part to be
performed, Landlord hereby grants to Tenant two (2) consecutive options to
extend this lease for five (5) years each, on the same terms and conditions as
are contained herein except as to increases in real estate taxes as hereinafter
provided. It is contemplated that Tenant's occupancy shall be continuous;
therefore, in the event Tenant fails to exercise any of the options granted
herein, the remaining options shall immediately expire and be of no further
force or effect. The parties specifically acknowledge that the Lease rent terms
provide for annual increases of 3%. Such increases shall continue to be applied
annually during each and every option exercised hereunder.
Tenant shall exercise each such option by delivering written notice to
Landlord at least six (6) months, but not more that twelve (12) months, prior to
the end of each five (5) year term. TIME IS OF THE ESSENCE IN REGARD TO THE
DELIVERY OF THE NOTICE. In the event Tenant fails to deliver written notice as
herein provided, the options granted herein shall expire and be of no further
force or effect.
B. RENT.
Tenant shall pay to Landlord rent, free from all claims, demands or
set-offs against Landlord of any kind or character whatsoever, except as
otherwise expressly provided to the contrary, in advance, in the amount of
$199,804.15, payable $3,800.00 on execution of this lease and thereafter on the
first day of each month (except May 1, 2000) as follows:
June 1, 2000 to March 31, 2001 $3,800.00 per month
April 1, 2001 to March 31, 2002 $3,914.00 per month
April 1, 2002 to March 31, 2003 $4,031.42 per month
April 1, 2003 to March 31, 2004 $4,152.36 per month
April 1, 2004 to June 30, 2004 $4,276.93 per month
Landlord agrees that Tenant shall be given possession on April, 2000 to install
such tenant improvements as it deems necessary and proper for its purposes,
however, nothing in this paragraph shall eliminate the requirement that Tenant
obtain Landlord's approval prior to making any such tenant improvements.
LATE PAYMENTS: In the event that Tenant shall fail to pay to landlord
within 5 days of the date when due, any payment owing to Landlord pursuant to
the terms of this Lease, Tenant shall pay Landlord a late charge in the amount
of ten percent (10%) of the rent payment then due in addition to said rent.
SQUARE FOOTAGE DISCLAIMER: The parties hereto hereby acknowledge that
during the negotiations for this Lease, the parties discussed the rent as a
function of an amount per square feet of rentable space. Prior to the execution
of this Lease, Tenant has had the opportunity to inspect the space and satisfy
itself as to the size and suitability of the space for its intended purposes.
The parties hereto hereby agree the above dollar figures of rent shall be due
and payable regardless of the actual square feet in the demised premises and
Tenant acknowledges that Landlord makes no representation or warranty as to the
actual size of the premises. Any discussions concerning a rental per square
foot of space is superceded by this provision.
C. USE.
The sole permitted use of the premised shall be commercial office and
related activities.
D. REAL ESTATE TAXES-OPTION PERIODS
Upon the exercise of the options hereinabove provided for, Tenant
agrees to pay during the term of each such option period, or periods, as the
case may be, its pro rata share of any increase in real estate taxes and
assessments levied or imposed against the real property of which the demised
premises are a part over an above the taxes imposed on said real property during
the fifth year of the original term of this Lease (the base year). The parties
hereto acknowledge and agree that Tenant occupies approximately 20% of the
building and agree that for purposes of this provision that Tenant shall pay 20%
of any such increase. Landlord shall provide Tenant with a copy of the tax xxxx
for the fiscal year July 2003- June 2004 (the base year) of the initial term
along with a copy of the tax xxxx for each year during any option period that
Tenant continues in possession under this Lease. Tenant shall pay to Landlord
one half of its pro rata share (20%) of such increase on or before December 10
of each year and the remaining on half of its pro rata share (20%) on or before
April 10 of each year.
E. AIR CONDITIONING REPAIR AND MAINTENANCE.
Landlord has provided an air conditioner in good working condition
that services Officers 7, 8 and 9 on the second floor of the south building.
Tenant hereby agrees that it will pay any and all costs related to the repair
and maintenance of said air conditioner.
F. SECURITY DEPOSIT
Tenant shall pay Landlord on execution of this Lease the sum of
$4,000.00 as a security deposit in accordance with the provisions of Paragraph
19 of the lease.
G. PARKING
Landlord hereby grants to Tenant the exclusive use of one (1) parking
space, the location of which will be designated by Landlord.
H. RULES AND REGULATIONS
The Rules and regulations attached hereto and hereby incorporated by this
reference as if fully set forth herein and shall be an integral part of this
Lease.
I. ASSIGNMENT
Notwithstanding the provisions of Paragraph 11 of the Lease, no consent
from Landlord shall be required for the assignment of this Lease under the
following circumstances, each of which shall be considered a Permitted
Assignment:
(1) the transfer of stock of Tenant to members of the immediate
family of a shareholder of Tenant, to a living trust for estate-
planning purposes, or by will or intestacy, or,
(2) Tenant sells or offers for sale its voting stock to the public
in accordance with the qualifications or registration
requirements of the State of California and the Security Act
of 1933, as amended.
H. TENANT'S RIGHT TO TERMINATE IN THE EVENT OF DESTRUCTION OF THE
PREMISES
Notwithstanding the provisions of Paragraph 16. DESTRUCTION OF PREMISES of
the Lease, in the event Landlord cannot complete the repairs and return
possession to Tenant within a period of six (6) months, Tenant shall have the
option of terminating this Lease. Notice of such election to terminate shall be
given by Tenant to landlord within ten (10) days of Tenant's receipt of written
notice from Landlord that the repair period is projected to exceed (6) months.
In the event Tenant fails to so notify Landlord in writing, this right to
terminate shall expire.
I. MUTUAL INDEMNIFICATION
Tenant Agrees to defend, with counsel reasonably satisfactory to Landlord,
indemnify and hold harmless, Landlord, its agents, employees, officers,
directors, shareholders, partners, members and representatives (collectively
"Landlord") from and against any and all loss, cost, action liability, damage or
expense, including but not limited to, penalties, fines, attorneys' fees or
costs (collectively "claims"), to any person, property or entity resulting from
the following: (i) the negligence or wilful misconduct of Tenant, its agents,
employees or contractors; (ii) Tenant's default or breach of any of the terms
and conditions of this Lease; and (iii) any occurrences within the Premises, not
resulting from the negligence or wilful misconduct of Landlord, its agents,
employees or contractors.
Landlord agrees to defend with counsel reasonably satisfactory to
Tenant, indemnify and hold harmless, Tenant, its agents, employees, officers,
directors, shareholders, partners, members and representatives (collectively
"Tenant") from and against any and all loss, costs, action,
liability, damage or expense, including but not limited to, penalties, fines,
attorneys' fees or costs (collectively "claims"), to any person, property or
entity resulting from the following: (i) the negligence or wilful misconduct of
Landlord, its agents, employees or contractors; (ii) Landlord's default or
breach of any of the terms and conditions of this Lease; and (iii) any
occurrences within the Premises, not resulting from the negligence or wilful
misconduct of Tenant its agents, employees or contractors.
Notwithstanding the foregoing, however, because Landlord is required to
maintain property insurance on the Building, and because of the existence of
waivers of subrogation set forth in this Lease, Landlord hereby agrees to
defend, indemnify and hold Tenant harmless on any Claims to the extent such
claim is covered by such insurance, even if resulting from the negligent acts,
omissions or misconduct of Tenant or those of its agents, employees or
contractors. Similarly, since Tenant must carry insurance to cover its personal
property within the premises, and because of the waivers of subrogation set
forth in this Lease, Tenant hereby agrees to defend, indemnify and hold Landlord
harmless from any claims to the extent any such claim is covered by such
insurance, if resulting from the negligent acts, omissions or misconduct of
Landlord or those of its agents, employees or contractors. The provisions of
this section shall survive the expiration or sooner termination of the Lease
with respect to any occurrences, claims or liabilities occurring prior to such
expiration or termination.
LANDLORD TENANT
XXXXXXX XX XXXX SKECHERS USA, INC.,
a Delaware corporation
Xxxxxxx X. Xx Xxxx by /s/ Xxxxxxx Xxxxxxxxx
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Date April 15 , 2000 by Xxxxxxx Xxxxxxxxx
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Date 4/14 , 2000
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