Exhibit 10.1(b)
AMENDMENT AND EXTENSION OF SUBLEASE
THIS AMENDMENT AND EXTENSION OF SUBLEASE ("Amendment") is made as of
the 31st day of August, 1999, and is by and between Xxxx-Xxxxx Properties, a
Minnesota corporation ("Lessor"), and APA Optics, Inc., a Minnesota corporation
("Lessee").
RECITALS
A. Lessor and Lessee entered into that certain Sublease Agreement
dated December 1, 1984 ("Sublease") for certain premises
("Premises") located at 0000 X.X. 00xx Xxxx, Xxxxxx,
Xxxxxxxxx, and legally described in the Sublease. The Sublease
was amended by that certain Sublease Amendment and Option
Agreement dated March 11, 1985.
B. The original term of the Sublease was ten (10) years and
included the option for the Lessee to renew the term for two
terms of five (5) years each.
C. The original term expired November 30, 1994. Lessee renewed
the term for an additional five years. The Sublease as
extended now expires November 30, 1999.
X. Xxxxxx and Lessee desire and intend to amend the Sublease and
also to extend the Sublease for an additional term of five (5)
commencing December 1, 1999, upon the terms and conditions
provided in this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee agree as
follows:
1. EXTENSION OF SUBLEASE. The term of the Sublease is hereby extended
by an additional term of five (5) years which shall commence December 1, 1999
and shall expire November 30, 2004, unless sooner terminated as provided in the
Sublease.
2. ANNUAL RENT. Commencing January 1, 2000, annual rent shall be
$107,280. Paragraph 3 of the Addendum to Lease is amended such that on January
1, 2002 and on January 1 of every other year thereafter, there will be an
adjustment of one hundred percent (100%) of the increase in the Consumer Price
Index for the preceding two years.
3. REAL PROPERTY TAXES. Commencing January 1, 2000, Lessee's pro rata
share of the real estate taxes due and payable on the premises shall be one
hundred percent (100%).
4. ADDITIONAL RENEWAL TERMS. The Sublease is hereby amended to provide
that in addition to the five (5) year renewal term that is to commence December
1, 1999, Lessee shall have the option to renew the Sublease for two (2)
additional five (5) year renewal terms each, said option to renew to be
exercised as provided in paragraph 4 of the Addendum to Sublease. The option to
renew may be exercised to commence the first of such renewal terms as of
December 1, 2004, and may also be exercised to commence the second of said
renewal terms as of December 1, 2009. The terms
and conditions of each of said renewal terms shall be the terms and conditions
of the Sublease, as currently amended and extended, including the option to
purchase the Optioned Premises (as defined therein) at any time during the last
ninety (90) days of each of the renewal terms and on the terms and conditions
provided in the Addendum to Sublease.
5. LEASE AGREEMENT. Lessor and Lessee acknowledge and agree that the
Sublease is subject to an underlying Lease Agreement dated as of December 1,
1984 ("Lease") between City of Xxxxxx, as lessor, and Xxxx-Xxxxx Properties, as
lessee. The term of the Lease expires September 1, 2009, unless sooner
terminated as provided therein. Lessor, as the lessee under the Lease, has the
option to purchase the subject property on the terms and conditions set forth in
the Lease. If Lessor exercises said option to purchase and the subject property
is conveyed to Lessor, the terms and conditions of this Sublease shall survive
and continue in full force and effect as a lease of the Premises.
6. AFFIRMATION OF SUBLEASE. As modified herein, Lessor and Lessee
reaffirm all of the terms and conditions of the Sublease including all addendum
and amendments thereto.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment to
be effective as of the date first written above.
LESSOR: LESSEE:
XXXX-XXXXX PROPERTIES APA OPTICS, INC.
By By
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Xxxxxxx X. Xxxxx Xx. Xxxx X. Xxxx
Its General Partner Its President
