Exhibit 10.06
LEASE
(201-213 North Division Street
0000-0000 Xxxxxx Xxxxxx
Peekskill, New York)
Between
GANG REALTY, LLC
Landlord
and
The RAL Supply Group, Inc.
Tenant
-----------------
LEASE
(201-213 North Division Street
1010-1016 Xxxxxx Street
Peekskill, New York)
This is a Lease made as of the 1st day of September 1998 and effective as of
said date, between
GANG REALTY, LLC,
XX Xxx 000
Xxxxxxxxxx, Xxx Xxxx 00000
("Landlord")
and
The RAL Supply Group, Inc.,
a New York corporation
having an address at
00 Xxxxxxx Xxxx
Xxxxxxxxxx, Xxx Xxxx 00000
("Tenant")
WITNESSETH:
RECITALS:
A. Landlord is the owner of property commonly known as 201-213 North
Division Xxxxxx/0000-0000 Xxxxxx Xxxxxx, Xxxxxxxxx Xxx Xxxx.
B. Landlord desires to lease 1010 - 0000 Xxxxxx Xxxxxx portion of said
property to Tenant and Tenant desires to lease the same form Landlord.
NOW, THEREFORE, in consideration of the respective promises of the parties
contained herein, it is agreed as follows:
ARTICLE I
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GENERAL
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1.1 Leased Premises
---------------
Landlord hereby leases to Tenant the premises more particularly
described on Schedule A annexed hereto and made a part hereof (hereinafter
sometimes called "Leased Premises").
1.2 Initial Term of Lease
---------------------
The "Initial Term" of this Lease shall be for a period commencing on
September 1, 1998 (the "Commencement Date") and terminating on August 31, 2008.
1.3 Renewal Terms
-------------
(a) Tenant shall have the option to extend the term of this Lease
for two (2) periods of five (5) years each, on the same terms and conditions
(except for Annual Fixed Rental, which shall be subject to adjustment as
provided on Schedule B annexed hereto) as herein contained.
(b) Tenant may exercise each of the five (5) year option periods
by giving written notice to Landlord not less than none (9) months prior to the
expiration date of the Initial Term or the First Renewal Term, as the case may
be.
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1.4 Condition of Leased Premises at
-------------------------------
Termination of Lease
--------------------
Tenant shall surrender the Leased Premises at the termination of this
Lease, broom clean and in as good condition as ordinary wear and reasonable use
will permit, except for damages caused by fire or other casualty, except as
otherwise provided herein. Tenant's obligation to observe and perform this
covenant-shall survive the termination of this Lease.
1.5 Covenant to Pay Rent
--------------------
Tenant shall pay to Landlord the Annual Fixed Rental as set forth on
Schedule "B" annexed hereto, in equal monthly installments, in advance, without
setoff or defense, on the first day of each and every calendar month, beginning
June 5, 1996, until the expiration of the term of this Lease and any Renewal
Term.
ARTICLE II
----------
POSSESSION AND TITLE
--------------------
2.1 Warranties as to Title, etc.
----------------------------
Landlord represents, warrants, covenants and agrees that it is
possessed of the fee simple title to the Leased Premises.
2.2 Quiet Enjoyment
---------------
Landlord covenants and assures Tenant of quiet and peaceful
possession and enjoyment of the Leased Premises against all persons whomsoever,
but this covenant shall not limit the scope of any covenant of quiet enjoyment
implied or otherwise prescribed by law.
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2.3 Possession
----------
Possession of the Leased Premises shall be delivered to the Tenant on
the Commencement Date.
ARTICLE III
-----------
TAXES ANDASSESSMENTS
--------------------
3.1 Tenant's General Undertakings
-----------------------------
(a) In addition to the Annual Fixed Rental to be paid by Tenant
to Landlord set forth herein, and as a further part of the consideration to be
furnished by the Tenant, and as additional rental for the term demised, the
Tenant covenants and agrees with the Landlord that the Tenant will, during the
term of this Lease and any Renewal Term, promptly pay when due, all real estate
taxes and sales and use taxes or similar taxes in the nature of occupancy taxes
(but not any taxes based on income payable by Landlord unless such tax is
imposed in substitution or in lieu of any governmental charge set forth in this
section), together with all charges and assessments, whether special or general,
for public improvements imposed subsequent to the Commencement Date, and other
impositions and liens for public improvements, including all taxes which are
assessed by any city, town, county, Federal, special drainage, school or other
taxing agencies, authorities or districts or otherwise, together with any
interest, penalties or other charges which may accrue thereon, and allocated to
the term hereof or any Renewal Term, provided that in the event any of said
taxes or assessments are payable, according to the terms of their imposition, in
installments, then Tenant shall have the right to pay the same as
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payment, satisfactory to Landlord, of all taxes within twenty (20) days of the
due date thereof.
(b) Tenant covenants and agrees that it will pay all such taxes
and assessments for the last full calendar year of this Lease, and will pay to
Landlord, upon termination of this Lease, its prorated share of the taxes for
the year in which this Lease is ended and the property is returned to Landlord,
provided that all such impositions shall be paid in full by Tenant prior to its
surrender of the Leased Premises to Landlord.
3.2 Landlord's Right to Cure Tenant's Default
-----------------------------------------
In case Tenant shall fail, refuse or neglect to make any of the
payments in and by this Article III required, then Landlord may, at Landlord's
option, on prior notice to Tenant and without its constituting a waiver of the
default thus occurring in this Lease, pay the same; and the amount or amounts of
money so paid, including reasonable attorneys' fees and expenses which might
have been reasonably incurred because of or in connection with such payment,
together with the interest on all such amounts at the rate equal to the prime
rate of Bankers Trust Company publicly announced in New York, New York, and in
effect from time to time, shall and will be paid by the Tenant to the Landlord,
upon demand by Landlord, and the payment thereof may be collected or enforced by
Landlord in the same manner as though said amount were an installment of rent
specifically required by the terms of this Lease to be paid by the Tenant to the
Landlord upon the day when Landlord demands the repayment thereof or the
reimbursement thereof, of and from Tenant.
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3.3 Right to Contest
----------------
(a) Nothing herein shall be construed to prevent Tenant from
contesting any tax, levy or assessment imposed against the Leased Premises
during the term of this Lease provided Tenant shall first pay the imposition
prior to its delinquency, or shall post a bond as authorized, directed and
approved by a court of competent jurisdiction in the amount of the imposition or
as otherwise ordered by the court, conditioned upon payment of the tax and costs
in the event Tenant should be unsuccessful in its contest, or provided Tenant
shall pay to the proper agency or a court of competent jurisdiction, under
proper court order, a sum of money equal to the amount under contest or as
otherwise ordered by the court, conditioned upon payment of the tax and costs in
the event Tenant should be unsuccessful in its contest or otherwise conditioned
as may be directed by the court.
(b) Nothing herein shall be construed to allow execution on the
Leased Premises by any governmental authority, even though the above procedures,
or any of them, are followed.
c) Landlord shall, on Tenant's request, cooperate with Tenant in
the event Tenant seeks to contest any tax, levy or assessment; and Tenant shall
indemnify Landlord for any cost or expense she incurs in connection therewith.
(d) If a refund is obtained which relates to a tax year which is
apportioned between Landlord and Tenant, the refund, net of legal fees and
expenses, including experts' fees, shall be apportioned between Landlord and
Tenant.
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ARTICLE IV
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ZONING AND OTHER RESTRICTIONS
-----------------------------
Tenant accepts the Leased Premises subject to such zoning ordinances,
subdivision restrictions, if any, and such other statutes, Federal, state,
county, municipal or otherwise, which may ill any way affect the Leased
Premises.
ARTICLE V
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TENANT TO CARRY LIABILITY INSURANCE
-----------------------------------
5.1 Coverage
--------
Tenant will provide or cause to be provided policies of
insurance generally known as public liability policies and/or owner's, Landlord
and Landlord's mortgagee if required by the terms of any present or future
mortgagee of Landlord's interest in the Leased Premises, and Tenant policies,
insuring the Tenant and Landlord against all claims and demands made by any
person or persons whomsoever for injuries received in connection with the use,
operation and maintenance of the Leased Premises to the extent of not less than
One Million ($1,000,000) Dollars to cover the claim or damage from any single or
specific cause, by any one person, and to the extent of not less than Two
Million ($2,000,000) Dollars to cover in connection with any one particular
accident or occurrence, the total aggregate of any claims that may arise or be
claimed to have arisen against the Landlord as aforesaid. All such policies
shall name Landlord and any mortgagee of Landlord as an additional insured.
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5.2 Policies of Certificates
------------------------
Whenever, under the provisions of this Lease, policies of insurance
are required to be issued or maintained by Tenant, Teuant shall promptly cause
either the original of such policies or certificates thereof to be delivered to
Landlord as evidence of the compliance by Tenant with the terms and conditions
of this Lease, except where the terms of any mortgage require that said policies
be held by the mortgagee, in which case Tenant shall furnish Landlord with a
conformed copy of the policies. Tenant shall deliver to Landlord evidence of the
insurance coverage required to be maintained by Tenant upon execution of this
Lease.
5.3 Proof of Renewal
----------------
(a) Tenant shall also, within fifteen (15) days of the expiration
of any policy of insurance required hereunder, furnish proof of renewal or
replacement of such insurance.
(b) If Tenant fails timely to pay the premiums for any policy of
insurance required under the provisions of this Lease, then Landlord may pay
such premiums, and the amounts so paid by Landlord, plus interest at the rate
equal to the prime rate of Bankers Trust Company publicly announced in New York,
New York, and in effect from time to time, plus two percentage points, shall be
added to the installment of Annual Fixed Rent becoming due on the first of the
next succeeding month and shall be collected by Landlord as Additional Rent
hereunder.
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ARTICLE VI
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FIRE, WINDSTORM AND CASUALTY
----------------------------
PROVISIONS; RELATED INSURANCE
-----------------------------
6.1 Coverage
--------
Tenant shall, at Tenant's sole expense and at all times during the
term of this Lease, insure or cause to be insured, any and all buildings or
improvements that exist or may be built or placed upon the Leased Premises
during the term of this Lease with good and responsible insurance companies
(rated AAA by Best's Rating) authorized to do business in the State in which the
Leased Premises are located, and approved by Landlord, which approval shall not
he unreasonably withheld, for protection against all loss or damage by fire or
windstorm and other casualty with extended coverage endorsement (as well as
vandalism and malicious mischief endorsement), to the extent of 100% of the
replacement costs, exclusive of foundations and footings, so as to avoid
co-insurance in case of a partial loss; and all policies issued and renewals
thereof shall be payable, in the event of loss, to Landlord and Tenant as their
interests may appear.
6.2 Use of Proceeds: Major Casualty
-------------------------------
If, at any time during the term of this Lease, (I) the Leased Premises
or any part thereof shall be damaged by fire or other casualty (including any
casualty for which, insurance coverage was not obtained or obtainable) or any
kind or nature, ordinary or extraordinary, foreseen or unforeseen, Tenant shall
promptly notify Landlord, and (ii) the cost of repairing such damage shall
exceed Two Hundred Fifty Thousand ($250,000) Dollars, in the
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aggregate, to be determined by Landlord's engineers reasonably acceptable to
Tenant, per occurrence, then Tenant may terminate this Leased Premises by notice
given to the Landlord within thirty-five (35) days of the date of the fire or
other casualty (the "Cancellation Notice"), the time of giving such notice to be
thirty (30) days following the day oil which the Cancellation Notice is given
(the "Cancellation Date"). In the event of a cancellation pursuant to this
Paragraph 6.2, then (and not necessarily in the following order):
(a) All insurance money paid or to be paid on account of such
damage or destruction under the policies of insurance provided for in Paragraph
6.1 shall be disbursed to Landlord. In such event, Tenant or such other party
not entitled to such insurance money shall, upon presentation of any check
constituting payment of such insurance money, in whole or in part, endorse such
check over to Landlord;
(b) Prior to Cancellation Date, Tenant shall remove from the
Leased Premises its personal property and such fixtures as are deemed Tenant's
property under Paragraph 22.3 hereof, and any such personal property or fixtures
remaining after the Cancellation Date may be disposed of, at Tenant's expense,
by Landlord as Landlord sees fit;
(c) Effective as of the Cancellation Date; this Lease shall be
deemed terminated and neither party shall have any rights as against the other
except those intended to survive termination; and
(d) Tenant shall immediately pay Landlord any unpaid Annual Fixed
Rental (or part thereof), Additional Rent and any and all other obligations owed
by Tenant to Landlord to the Cancellation Date.
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In the event that Tenant does not timely exercise its right to cancel this Lease
in accordance with this Paragraph 6,2, then the terms and provisions of
Paragraph 6.3 shall control.
6.3 Use of Proceeds: Minor Casualty
-------------------------------
(a) If, at any time during the term of this Lease, (I) the Leased
Premises or any part thereof shah1 be damaged or destroyed by fire or other
casualty (including any casualty for which insurance coverage was not obtained
or obtainable) of any kind of nature, ordinary or extraordinary, foreseen or
unforeseen, and (ii) no Cancellation Notice is sent pursuant to Paragraph 6.2
above, or the cost of repairing such damage shall not exceed Two Hundred Fifty
Thousand ($250,000) Dollars, in the aggregate, per occurrence, the Rent shall
not xxxxx and Tenant, at its sole cost and expense, and whether or not the
insurance proceeds, if any, shall be sufficient for the purpose, shall proceed
with reasonable diligence (subject to a reasonable time allowance for the
purpose of adjusting the insurance loss and for unavoidable delay) to repair,
alter, restore, replace or rebuild the same or construct a replacement building
or replacement buildings, as the case may be, to at least the value, condition
and character of the building immediately prior to such damage or destruction,
subject to such changes or alterations as Tenant may elect to make in conformity
with the provisions of Article XXII. Such repair, alteration, restoration,
replacement, rebuilding or construction, including such changes and alterations
as aforementioned and including temporary repairs or the protection of other
property pending the completion of any thereof, are sometimes referred to in
this Article VI as the "Work".
(b) Except as otherwise provided in this Article VI, the conditions
under which any Work is to be performed, and the method of proceeding with and
performing the same shall be governed by all of the provisions of Article XXII.
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(c) All insurance money paid on account of such damage or
destruction under the policies of insurance provided for in Paragraph 6.1, less
the reasonable cost, if any, incurred in connection with the adjustment of the
loss and the collection thereof (herein sometimes referred to as the "insurance
proceeds"), shall be disbursed to a savings bank or other financial institution
designated by Landlord and reasonably acceptable to Tenant (the cost and expense
of which shall be borne equally by Landlord and Tenant) as trustee for the
benefit of Landlord; provided, however, that in the event that Landlord
------------------
refinances the Leased Premised or any portion thereof, and to the extent
required by the mortgagee providing such refinancing, the insurance proceeds
shah1 be disbursed to such mortgagee. For the purposes hereof, such savings
bank, other financial institution or such mortgagee, in its capacity as trustee
of the insurance proceeds, shall be deemed the "Insurance Trustee". The
insurance proceeds shall be applied by the Insurance Trustee only to the payment
of the cost of the Work to the extent such insurance proceeds shall be
sufficient for that purpose, and shall be paid out for the account of Tenant
from time to time as such Work progresses. The Insurance Trustee shall make such
payments or disbursements upon the written request by Tenant and, in any case,
only upon receipt of each, of the following, which shall be performed at
Tenant's sole cost and expense (copies of which shall also be forthwith sent to
Landlord):
(I) a certificate dated not more than fifteen (15) days prior to
the date of any advance, signed by an architect in charge of the Work
who shall be selected by Tenant and approved in writing by Landlord,
which approval shall not be unreasonably withheld, setting forth that:
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(x) the sum then requested has been paid by Tenant to
contractors, subcontractors, materialmen, architects or other
persons who have rendered services or furnished materials in
connection with the Work, giving a brief description of the
services and materials and the several amounts so paid or due and
stating that no part thereof has been made the basis in any
previous or then pending request or has been paid out of any
proceeds of insurance received by Tenant and that the sum
requested does not exceed the amount of the services and
materials described in the certificate; and
(y) except for the amount stated in such certificate to
be due as aforesaid, mere is no outstanding indebtedness, known
to the persons signing such certificate after due inquiry, which
might become the basis of a vendor's, mechanic's or materialman's
or similar lien upon such Work, the Leased Premises or Tenant's
leasehold interest, or any part thereof; and
(z) the cost, as estimated by the persons signing such
certificate, of the Work required to be done subsequent to the
date of such certificate in order to complete the same, does not
exceed the amount of
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insurance proceeds remaining in the hands of the Insurance
Trustee after the payment of the sum so requested; and
(ii) a certificate dated not more than fifteen (15) days
prior to the date of an advance, of a reputable title insurance
company licensed to do business in the State where the Leased
Premises are located, covering the period from the Commencement
Date (or the date of the last such certificate furnished pursuant
to any of the applicable provisions of this Lease) to the date of
such certificate, setting forth that there are no liens, chattel
mortgages, conditional bills of sale, title retention documents,
or encumbrances or record or any kind on the Leased Premises
except those permitted by the terms of this Lease and except such
as will be discharged by payment of the amount then requested;
and
(iii) if exterior walls have been repaired or erected, a
perimeter survey (or an update of a perimeter survey previously
furnished under this subparagraph 6.3 (C) (iii)} showing no
encroachments upon any real property not constituting part of the
Leased Premises, except that any encroachment existing before a
restoration which Landlord permitted may be continued or
restored.
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(d) Upon compliance with the foregoing provisions of this
subparagraph 6.3 (d), the Insurance Trustee, out of such insurance proceeds,
shall pay or cause to be paid to the persons named in the certificate, the
respective amounts stated therein to have been paid by Tenant or to be due to
them, as the case may be.
(e) Upon receipt by the Insurance Trustee of evidence,
satisfactory to it, of the character required by subparagraph 6.3 (C) (I), (ii)
and (iii), that the Work has been completed and paid for in full and that there
are no liens of the character referred to therein, the Insurance Trustee shall
pay to Landlord any remaining balance of said insurance proceeds.
(f) If the insurance proceeds received by the Insurance
Trustee shall be insufficient to pay the entire cost of the Work as reasonably
estimated by Tenant's architects, Tenant shall contribute the amount of any such
deficiency to the Insurance Trustee who shall first apply the same to the
payment of the cost of the Work before disbursing the insurance proceeds held by
it. Under 110 circumstances shall Landlord be obligated to make any payment,
disbursement or contribution towards the cost of the Work.
(g) Upon a breach by Tenant of any of the provisions under
subparagraph 6.3 (C) (I), (ii) and (iii) hereof, in addition to all other rights
and remedies Landlord may have under this Lease, Landlord may, but shall not be
required to take possession of the Leased Premises and continue the Work, at
which time the Insurance Trustee shall be authorized to disburse the remaining
insurance proceeds then being held by it directly to Landlord.
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6.4 No Abatement of Rent
--------------------
In no event shall Tenant be entitled to any abatement,
allowance, reduction or suspension of Fixed Animal Rental, Additional Rental and
other charges because part or all of the Leased Premises shall be untenantable
owing to the partial or total destruction thereof or any reason whatsoever, and
no such damage or destruction shall affect in any way the obligation of Tenant
to pay the Annual Fixed Rental, Additional Rent and other charges herein
reserved or required to be paid, nor release Tenant of or from any obligation
imposed upon Tenant under this Lease.
6.5 Waiver of Subrogation
---------------------
(a) Each party hereby releases the other from any and
all liability, responsibility (to the other or anyone claiming through or under
it by way of subrogation or otherwise) under fire and extended coverage or
supplementary contract casualties, if such fire or other casualty shall have
been caused by the fault or negligence of the releasing party; provided,
---------
however, that this release shall be applicable and in full force and effect only
-------
with respect to loss or damage which occurred during such time as the releasing
party's policies shall contain a clause or endorsement to the effect that any
such release shall not adversely affect or impair such policies or prejudice the
right of the releasor to recover thereunder.
(b) Each party agrees that its policies will include
such a clause or endorsement so long as the same shall be obtainable without
extra cost, or, if such cost shall be charged therefor, so long as the other
party agrees to pay such extra cost. If extra cost shall be chargeable therefor,
the releasing party shall notify the other party thereof and of the amount of
the extra cost, and the other party shall be obligated to pay the extra cost
unless, within ten (10)
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days after receipt of such notice, it elects, by written notice sent to the
releasing party, not to be obligated to do so. If such clause or endorsement is
not available, or if the other party should not desire the coverage at extra
cost, their the provisions of this subparagraph shall not apply to the policy or
policies in question.
6.6 Consequences of Landlord's Mortgagee Applying Insurance
-------------------------------------------------------
Proceeds to Pay or Reduce Landlord's Indebtedness
-------------------------------------------------
(a) Landlord will attempt to require any first mortgagee
of the Leased Premises to agree that, in case of fire or other insured casualty,
the proceeds of insurance will be made available for use in repair and
restoration.
(b) If, however, the mortgage does not so provide and
the mortgagee applies the insurance proceeds to pay or reduce Landlord's
indebtedness, Landlord must replace the applied amount, without cost to Tenant,
and such replacement funds must be furnished prior to Tenant's commencement of
repairs and restoration.
(c) If the Landlord should fail to make advances as set
forth above or fail to do any other act required of Landlord under this Lease,
Tenant may cure such default, and the Landlord shall be responsible for paying
interest to Tenant on any monies expended by Tenant as provided in Paragraph
12.3 hereof.
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ARTICLE VII
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LANDLORD'S INTEREST NOT SUBJECT
-------------------------------
TO CERTAIN MECHANICS' LIENS
---------------------------
7.1 In General
----------
In connection with any alterations, improvements or additions to
the Leased Premises made by Tenant, there shall be no mechanics' lien filed upon
Landlord's or Tenant's interest in the Leased Premises arising though the act of
Tenant, or any person claiming under, by or through Tenant; and no person other
than an employee of Landlord shall ever be or become entitled to any lien for or
on account of any work, labor, material or services furnished or provided to the
Leased Premises at the request of Tenant. All persons furnishing any such labor
or material to Tenant, or with respect to the Leased Premises at Tenant's order,
or at the order of any person dealing directly or indirectly with Tenant, as
well as all persons whomsoever, shall be bound by this provision; and all
materialmen, contractors, mechanics and laborers are hereby charged with notice
that they must look only to Tenant for payment for any bills for work done or
performed or materials furnished during the term hereby granted.
7.2 Filing of Liens
---------------
(a) The more filing of a prohibited mechanic's or
materialman's hen or hens, however, shall not of itself constitute a default
hereunder, provided Tenant, within thirty (30) days after the recording of such
notice of prohibited lien among the public records of the county where the
Leased Premises are located in the event notice of a prohibited lien is not
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served upon Tenant, shall cause the same to be canceled, released and
extinguished, or the Leased Premises released therefrom by the posting of a
bond, or by any other method prescribed by law, and proper evidence thereof be
furnished to Landlord; and if such prohibited lien or liens appear of record,
Tenant shall cause the same to be canceled, satisfied and discharged of record
within said thirty (30) day period.
(b) However, if Tenant shall dispute the amount or validity
of any prohibited mechanic's or materialman's lien claimed, or any other claim
asserted, Tenant shall post a bond with Landlord, reasonably acceptable to
Landlord, in the amount of the prohibited lien or claim and, with all due
diligence, institute or defend an appropriate action or proceeding in a court or
courts of competent jurisdiction upon the cause of action, and shall, by
injunction, due defense of the suit or otherwise, prevent any sale or impairment
of the title of Landlord, and shall prosecute or defend such action or
proceeding with reasonable diligence to a final determination, and, if such suit
or defense shall be instituted within said period of thirty (30) days after the
time when said prohibited lien shall have been filed, then in such case the time
reasonably required in the litigation of such action shall be added to the above
thirty (30) days' time. In any event, however, it shall be the duty of Tenant,
whether before or after contesting such prohibited lien, to cause the said
prohibited lieu to be canceled, released, extinguished or adjudicated not to
exist, or to cause the Leased Premises to be released therefrom by the posting
of a bond or by any other method prescribed by law at least thirty (30) days
before the time when required to do so by any mortgagee or Landlord or when the
Leased Premises or any interest therein, or Landlord's interest therein, might
otherwise be offered for sale by reason of said prohibited lien; and,
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promptly upon relieving the Leased Premises of such prohibited claim, Tenant
shall have the duty of furnishing evidence thereof reasonably satisfactory to
Landlord.
ARTICLE VIII
------------
LAWFULUSEOF THE PREMISES
------------------------
The Leased Premises and all structures and improvements thereon,
during the term of this Lease, shall be used only and exclusively for lawful
purposes, and Tenant will not use or suffer auyone to use the Leased Premises or
structures thereon for any purpose in violation of the laws of the United States
of the state in which the Leased Premises are located, or the ordinances and
regulations of the county or municipality in which the Leased Premises are
located; and Tenant shall save Landlord harmless from every such violation by
Tenant.
ARTICLE IX
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COMPLIANCE WITH REGULATIONS
---------------------------
OF PUBLIC BODIES
----------------
9.1 In General
----------
Other than for structural repairs or structural replacements
(including those relating to the roof), Tenant shall, at Tenant's own cost and
expense, perform all acts and do all things as shall be lawfully required by any
public body having jurisdiction over the Leased Premises, including, by way of
illustration and not in limitation, compliance with fire, sanitary, health and
safety regulations and zoning and setback requirements in order to keep
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the Leased Premises at all times during the term of this Lease (except for any
requirements arising during the last two years of the Initial Term of this Lease
or any Renewal Term) in full compliance with the applicable and pertinent rules
and regulations of such bodies, provided, however, that Landlord shall bear the
cost and expense thereof to the extent necessary to remedy any condition in
existence on the date hereof.
9.2 ENVIRONMENTAL LAW
-----------------
Nothing in Paragraph 9.1 or any other part of this Lease
shall be deemed to impose upon Tenant the responsibility of performing any
clean-up or remediation work at the Leased Premises with respect to any
violation of environmental control laws, rules, regulations or ordinances with
respect to any conditions which pre-existed the date of this Lease.
ARTICLE X
---------
UTILITY CHARGES
---------------
Tenant shall pay or cause to be paid all charges for water, gas,
electricity and public utilities used on or about the Leased Premises, and shall
pay or cause to be paid the same monthly or as they shall become due, which
charges shall be considered as Additional Rent. In the event that Tenant desires
more capacity or additional facilities, Tenant shall pay any and all costs
incurred in obtaining such added capacity or in bringing such facilities to the
Leased Premises, including all engineering fees connected therewith. Nothing in
this article X shall be construed to limit or abridge any of Landlord's rights
under Article XXII hereof. Landlord shall not be responsible for the
interruption or cessation of services, and any sum payable by Tenant shall not
be abated if services are interrupted.
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ARTICLE XI
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PAYMENT OF INSURANCE PREMIUMS
-----------------------------
Should Tenant, at any time during the continuance of this Lease,
fail, refuse or neglect to procure or pay for any of the policies of insurance
required in and by this Lease or to keep and maintain the same in full force and
effect, Landlord, at Landlord's option (and without such act constituting a
waiver of the default by Tenant), may obtain or renew such insurance; and
thereafter the amount or amounts of money paid by Landlord as the premium or
premiums thereon, plus interest at the rate equal to two (2) percentage points
above the prime rate of Bankers Trust Company publicly announced in New York,
New York, and in effect from time to time, shall be collectible by Landlord from
Tenant in the same manner as though such sums were rentals.
ARTICLE XII
-----------
MAINTENANCE AND REPAIRS
-----------------------
12.1 TENANT'S DUTIES IN GENERAL
--------------------------
Except for repairs required as a result of the negligence of
Landlord or Landlord's employees or agents, Tenant shall make all necessary
exterior and interior non-structural repairs or placements to the Leased
Premises, including repairs or replacements to the building's plumbing, heating,
cooling, electrical and other operating systems, so as to maintain the same at
all times in good condition, reasonable wear and tear and damage by the elements
and casualty expected.
-22-
12.2 Landlord's Duties
-----------------
In the event either Landlord or Tenant fails to make those
repairs required to be made by it hereunder within thirty (30) days after
receiving written notice from the other party that such repairs are needed (or,
with regard to repairs incapable of being completed within said thirty (30) day
period, to commence making, and thereafter diligently prosecute, said repairs
within said period), the other party may make, or cause to be made, said
repairs; and the defaulting party shall thereafter promptly reimburse the other
party for all expenses incurred by the other party on account thereof, plus
interest at the rate equal to the prime rate of Bankers Trust Company publicly
announced in New York, New York, and in effect from time to time. Such amount
owed to Landlord shall be deemed to be additional rent hereunder until paid.
ARTICLE XIII
------------
INDEMNIFICATION
---------------
Each party hereto shall indemnify the other party against any
expense (including reasonable attorneys' fees), loss or liability paid, suffered
or incurred as the result of any breach by such party or any representation,
warranty, covenant or condition of this Lease or the negligence of such party,
its agents or employees.
-23-
ARTICLE XIV
-----------
ASSUMPTION OF RISK
------------------
Except with respect to the negligence or intentional misconduct
of Landlord, Landlord's employees, agents, servants, invitees or
representatives, all personal property belonging to Tenant, its servants,
employees, suppliers, consignors, customers or licensees, located in or about
the Leased Premises shall be there at the sole risk of Tenant. Except with
respect to negligence or intentional misconduct, neither Landlord nor Landlord's
agents or employees shall be liable for the theft, loss or misappropriation of,
nor for any damage or injury to, such personal property; nor shall Landlord be
considered the voluntary or involuntary bailee of such personal property. Except
with respect to the acts or negligence of Landlord or her employees, agents,
servants, invitees or representatives, neither Landlord nor any mortgagee of
Landlord shall be liable for damage or injury of any kind to Tenant or any of
its officers, agents or employees or to any other persons or to any property by
reason of any existing or future condition, defect, matter or thing in, on or
upon the Leased Premises or for the acts, omissions or negligence of other
persons or tenants whatsoever or whether caused by fire, explosion, water, rain,
snow, frost, steam, gas, electricity, heat or cold, dampness, falling plaster,
sewers or sewage odors, noise, leaks from any part of the building or the roof
or common areas, the bursting or leaking of pipes, plumbing, electrical wiring
and equipment and fixtures of all kinds.
-24-
ARTICLE XV
----------
CONDEMNATION CLAUSE
-------------------
15.1 Disposition of the Award
------------------------
Unless and until the law of the State in which the Leased
Premises are located permits tenants to receive the value of their leasehold
interests as a separate award from that made to landlords, in the event of any
condemnation or taking of all or a part of the Leased Premises, Landlord (or the
mortgagee of any interest in the Leased Premises if, pursuant to the terms of
the mortgage, or if, pursuant to law, the mortgagee is entitled to receive all
or a portion of the condemnation award) shall be entitled to receive the entire
award for the value of the estate vested by this Lease in Tenant; and Tenant
hereby expressly assigns to Landlord (or to the mortgagee as provided above) any
and all right title and interest of Tenant now or hereafter arising in or to nay
such award or any part thereof. Tenant shall not be entitled to receive any part
of such award from Landlord, the mortgagee, or the condemning authority, except
that Tenant shall have the right to assert a claim against the condemning
authority for the value of all improvements installed and paid for by Tenant and
for relocation expenses.
15.2 Effect of Various Takings
-------------------------
(a) If the entire Leased Premises is taken, Tenant's
obligations under this Lease shall terminate as of the date title vests in the
condemning authority.
(b) In case of a substantial taking, Tenant shall have the
option to terminate this Lease if, In Tenant's opinion, the business cannot
reasonably be operated in the portion of the Leased Premises not condemned.
Tenant shall give notice to Landlord of Tenant's
-25-
election to terminate or continue this Lease within sixty (60) days after
receipt of notice of the condemnation. If this Lease is not so terminated, the
Annual Fixed Rent shall be reduced by an amount to be determined by multiplying
the then current Annual Fixed Rent by a fraction, the numerator of which is the
square footage of the Leased Premises after the taking and the denominator of
which is the square footage of the Leased Premises prior to the taking.
(c) If there is a temporary taking which shall be reasonably
anticipated by Landlord to end upon a date which shall be within one (1) year of
the expiration date of the then applicable term of this Lease, then any award
shall be applied by Landlord to reduce Tenant's obligations hereunder, this
Lease will continue unaffected, and any excess award shall belong to Landlord.
ARTICLE XVI
-----------
DEFAULT
-------
16.1 Events of Default
-----------------
The following are hereby designated "Events of Default";
(a) Tenant shall make an assignment of its property for the
benefit of creditors or shall file a voluntary petition under any bankruptcy or
insolvency law, or an involuntary petition under any bankruptcy or insolvency
law shall be filed against Tenant and such involuntary petition is not dismissed
within sixty (60) days after the filing thereof;
(b) a petition is filed by or against Tenant under the
reorganization provisions of the United States Bankruptcy Code or under the
provisions of any law of like import, unless such petition under said
reorganization provisions is dismissed within sixty (60) days after its filing;
-26-
(c) Tenant shall file a petition under the arrangement
provisions of the United States Bankruptcy Code or under the provisions of any
law of like import;
(d) a permanent receiver, trustee or liquidator shall be
appointed for Tenant or of or for the property of Tenant, and such receiver,
trustee or liquidator shall not have heen discharged within sixty (60) days from
the date of his appointment;
(e) Tenant shall default in the payment of any rent on any
date upon which the same becomes due, and such default shall continue for thirty
(30) days;
(f) Tenant shall materially default in the due keeping,
observing or performing of any covenant, agreement, term, provision or condition
of this Lease on the part of Tenant to be kept, observed or performed, and if
such default shall continue and shall not be remedied by Tenant, or steps shall
not have been taken by Tenant to remedy such default, within thirty (30) days
after Landlord shall have given to Tenant a written notice specifying the same,
or, in the case of such a material default which, for causes beyond Tenant's
control, cannot with due diligence be cured, or steps cannot be taken by Tenant
to cure such default, within said period of thirty (30) days, if Tenant (I)
shall not, promptly upon receipt of such notice, advise Landlord in writing of
Tenant's intention to duly institute all steps necessary to remedy the same, or
(ii) shall not remedy the same within a reasonable time after the date of the
receipt of said notice from Landlord;
(g) any event shall occur or any contingency shall arise
whereby this Lease or the estate hereby granted or the unexpired balance of the
Initial Term or any Renewal Term hereof would, by operation of law or otherwise,
devolve upon or pass to any
-27-
person, firm, association or corporation other than Tenant except as expressly
permitted under Article XVIII hereof, or whenever Tenant shall desert or abandon
the Leased Premises or the same shall become vacant (whether the keys be
surrendered or not and whether the rent be paid or not), unless Tenant (I) is
not in default in the payment of rent hereunder, (ii) is maintaining all
insurance required of it hereunder, and (iii) is maintaining the Leased Premises
in good condition to the extent required hereunder;
(h) any act or omission which, with the passage of time or
the giving of notice, would constitute a default under any mortgage of
Landlord's interest in the Leased Premises, with Tenant's cure rights not to
extend beyond (10) days prior to the date which is deemed to result in
Landlord's being in default under such mortgage.
16.2 Landlord's Right to Terminate
-----------------------------
Upon the occurrence of any "Event of Default", Landlord may give
the Tenant a notice of intention to terminate this Lease at the expiration of
five (5) days from the date of the giving of such notice; and, in the event such
notice is given, unless the Event of Default has been remedied, this Lease and
the term and estate hereby granted (whether or not the term shall theretofore
have commenced) shall expire and terminate upon the expiration of said five (5)
days with the same effect as if that day were the date hereinbefore set for the
expiration of the term of this Lease, but Tenant shall remain liable for damages
as provided in Article XXI hereof
-28-
ARTICLE XVII
------------
CUMULATIVE REMEDIES
-------------------
17.1 General Right of Re-Entry
-------------------------
(a) If this Lease shall expire and terminate as provided in
Article XVI, Tenant shall peaceably quit and surrender the Leased Premises to
Landlord and Landlord or Landlord's agents and servants may immediately or at
any time and without notice thereafter re-enter into or upon the Leased Premises
or any part thereof, either by summary dispossess proceedings or by any suitable
action or proceeding at law, without being liable to indictment, prosecution or
damages therefor, and may repossess the same, and may remove any persons
therefrom, to the end that Landlord may have, hold and enjoy the Leased Premises
again as and of her first estate and interest therein. The words "re-enter",
"re-entry", and "re-entered", as used in this Lease, are not restricted to their
technical legal meaning.
(b) In the event of any termination of this Lease under the
provisions of Article XVI, or in the event that Landlord shall re-enter the
Leased Premises under the provisions of this Article XVII, or in the event of
the termination of this Lease (or of re-entry), by or under any summary
dispossess or other proceeding or action or any summary dispossess or other
proceeding or action or any provision of law, Tenant shall thereupon pay to
Landlord (a) the Annual Rent and Additional Rent payable up to the time of such
termination of this Lease, or of such recovery of possession of the Leased
Premises by Landlord, whichever occurs first, and (b) damages pursuant to
Article XXI
-29-
17.2 Injunction and Other Remedies
-----------------------------
In the event of a breach or threatened breach on the part of
Tenant with respect to any of the covenants, agreements, terms, provisions or
conditions on the part of or on behalf of Tenant to be kept, observed or
performed, Landlord shall also have the right of injunction. The specified
remedies to which Landlord may resort hereunder are cumulative and are not
intended to be exclusive of any other remedies or means of redress to which
Landlord may lawfully be entitled at any time, and Landlord may invoke any
remedy allowed at law or in equity as if specific remedies were not herein
provided for. During the pendency of any proceedings brought by Landlord to
recover possession by reason of a Tenant default, Tenant shall continue to make
all payments to Landlord due hereunder.
ARTICLE XVIII
-------------
ASSIGNMENT AND SUBLEASING
-------------------------
18.1 Assignment of Entire Lease or Subletting of Entire Leased
---------------------------------------------------------
Premises Not Incident to a Sale of Tenant's Business
----------------------------------------------------
(a) If Tenant proposes to assign this Lease in its entirety
or to sublease the entire Leased Premises in a transaction which is not incident
to a sale of Tenant's business to the assignee or subtenant or an affiliate
thereof, Tenant shall serve upon Landlord a notice of such transaction (a
"Tenant's Lease Disposition Notice"). The Tenant's Lease Disposition Notice
shall give the name and address and financial information in Tenant's possession
concerning the proposed assignee or subtenant and the principal terms and
conditions
-30-
of the proposed assignment or sublease, including but not limited to, the
consideration to be paid to Tenant for the assignment of the Lease or the rent
and items of "Additional Rent" payable by the subtenant, the term and any
renewal terms, as the case may be,
(b) Landlord shall have a period of forty-five (45) days from
receipt of Tenant's Lease Disposition Notice in which to serve a notice upon
Tenant (a 'Recapture Notice") that Landlord elects to recapture the Leased
Premises and terminate this Lease as of the date upon which the assignment or
sublease would have gone into effect (the 'Termination Date"). If Landlord
serves a Recapture Notice, this Lease shall terminate as of the Termination
Date.
(c) If Landlord fails to serve a Recapture Notice within the
applicable period, Tenant shall have the right to proceed with the proposed
assignment or sublease upon the terms contained in the Tenant's Lease
Disposition Notice or other terms no more favorable to Tenant. If the proposed
transaction is an assignment, the assignment shall not relieve the Tenant from
its obligations under this Lease.
18.2 Permitted Assignments
---------------------
This Lease may be assigned, without the consent of Landlord and
without the provisions of subparagraph 18.1 applying, (a) to any person
acquiring the business of Tenant or the outstanding capital stock of Tenant or
substantially all the assets of Tenant or (b) to any direct or indirect
affiliate or subsidiary of Tenant. Any such assignment or subletting shall not
release Tenant from its obligations for the payment of rent herein reserved and
for the performance of those terms, covenants and conditions hereof on Tenant's
part to be performed.
-31-
ARTICLE XIX
-----------
HOLDING OVER
------------
In the event Tenant shall continue to occupy the Leases Premises after the
expiration of the demised term or any Renewal Term, such holding over shall not
constitute a renewal or extension of this Lease. Landlord may, at its option,
elect to treat Tenant as one who has not removed at the end of its term and
thereupon be entitled to all the remedies against Tenant provided by law, or
Landlord may elect to construe such holdover as a tenancy from month to month,
upon the same terms and conditions as herein provided, and in no event shal1 the
tenancy be deemed to be one from year to year.
ARTICLE XX
----------
BANKRUPTCY
----------
Neither this Lease nor any interest herein nor any estate hereby created shall
pass to any trustee or receiver or assignee for the benefit of creditors or
otherwise by operation of law. In the event the estate created hereby shall be
taken in execution or by other process of law, or if Tenant shall be adjudicated
insolvent or bankrupt pursuant to the provisions of any state or Federal
insolvency or bankruptcy act, or if a receiver or trustee of the property of
Tenant shall be appointed by reason of Tenant's insolvency or inability to pay
its debts (unless such appointment is dismissed within 120 days), or if any
assignment shall be made of Tenant's property for the benefit of creditors, then
and in any such event Landlord may, at her option, in addition to the remedies
provided herein, terminate this Lease and all rights of the Tenant herein
-32-
pursuant to Section 16.2 and Tenant shall be liable to Landlord for damages as
set forth in Article XXI below, by giving to Tenant notice in writing of the
election of Landlord so to terminate. Tenant makes no representation or warranty
to Landlord as to the enforceability of this Article XX.
ARTICLE XXI
-----------
DAMAGES FROM EVENTS OF DEFAULT
------------------------------
21.1 Damages
-------
In the event of any termination of this Lease under the
provisions of Article XVI, or in the event that Landlord shall re-enter the
Leased Premises under the provisions of Paragraph 17.1, or in the event of the
termination of this Lease (or of re-entry) by or under any summary dispossess
proceeding or action or any provision of law, Tenant, at the election of
Landlord, will pay to Landlord, in lieu of Tenant's continuing obligation to pay
Annual Fixed Rent or Additional Rent, as damages, the greater of:
(a) a sum which, at the time of such termination of this
Lease or at the time of any such re-entry by Landlord, as the case may be,
represents the excess, if any, of (I) the aggregate of all Annual Fixed Rent and
Additional Rent which would have been payable hereunder by Tenant had this Lease
not so terminated for the period commencing with the earlier of such termination
of this Lease or the date of any such re-entry, as the case may be, and ending
with the date hereinbefore set for the expiration of the full term hereby
granted , over (ii) the aggregate of all Annual Fixed Rental and Additional Rent
for the Leased Premises for the same period based upon the then local market
rental value of the Leased Premises; or
-33-
(b) sums equal to the aggregate of all Annual Fixed Rental
and Additional Rent which would have been payable by Tenant had this Lease not
so terminated, or had Landlord not so re-entered the Leased Premises, payable
upon the due dates therefor specified herein following such termination or such
re-entry and until the date hereinbefore set for the expiration of the full term
hereby granted.
21.2 Mitigation of Damages
---------------------
Landlord shall use reasonable efforts to re-let the Leased
Premises in an arms'-length transaction. If Landlord shall re-let all or any
part of the Leased Premises for all or any part of said period, Landlord shall
credit Tenant with the net rents received by Landlord from such re-letting (I)
the actual expenses incurred or paid by Landlord in terminating this Lease or of
re-entering the Leased Premises and of securing possession thereof, as well as
(ii) the actual expenses of re-letting, including altering and preparing the
Leased Premises for new tenants, brokers' commissions, and all other similar or
dissimilar expenses properly chargeable against the Leased Premises and incurred
by Landlord which, but for Tenant's default, Landlord would not have incurred
and the rental therefrom in connection with such re-letting. Any such re-letting
may be for a period equal to or shorter or longer than the remaining term of
this Lease.
21.3 Limits of Tenant's Claims and Certain Provisions for Benefit
------------------------------------------------------------
of Tenant
---------
(a) The provisions of subparagraphs 21.1 and 21.2 and Article
XVIII are subject to the following: (1) in no event shall Tenant be entitled
to receive any excess of such net rents over the Annual Fixed Rental and
Additional Rent payable hereunder; and (2) in
-34-
no event shall Tenant be entitled in any suit for the collection of damages
pursuant to this subparagraph (a) to a credit in respect of any net rents from a
re-letting, except to the extent that such net rent are actually received by
Landlord prior to the commencement of such suit.
(b) In the event that Landlord has been paid any monies by or
on behalf of Tenant pursuant to subparagraph 21.1 above, and Landlord, within
one (1) year thereafter, shall re-let the Leased Premises for the same period of
time for which she received the said payment from or on behalf of Tenant
pursuant to subparagraph 21.1 (b), then Landlord shall refund to Tenant (or to
the payor on behalf of Tenant) the monies so received by Landlord pursuant to
subparagraph 21.1 (b) above, which monies should have been paid by Tenant to
Landlord but for such default, without interest and without further claim by ir
on behalf of Tenant for any proceeds of the re-letting.
21.4 Suits for Recovery of Damages
-----------------------------
Suit or suits for the recovery of damages, or any installments thereof may be
brought by Landlord from time to time at its election; and nothing contained
herein shall be deemed to require Landlord to postpone suit until the date when
the term of this Lease would have expired if it had not been terminated under
the provisions of Article XVI, or under any provision of law, or has Landlord
not re-entered the Leased Premises.
-35-
ARTICLE XXII
------------
ALTERATIONS BY TENANT, PARTITIONS AND FIXTURES
----------------------------------------------
22.1 Tenant's Rights in General
--------------------------
(a) Tenant may, upon consent of Landlord, which consent shall
not be unreasonably withheld or delayed, at Tenant's own cost and expense, make
such alterations, improvements and additions as it may desire, including
alterations, improvements and additions of a structural nature, and may
construct such installations, buildings, roads, parking lots, excavations,
pipelines and such other structures, without limitation, as Tenant may desire,
so long as such constructions are not unlawful and are made and installed in a
good and workmanlike manner; provided, however, that Tenant may, over the term
of this Lease, make non-structural alterations or improvements, in accordance
with applicable laws and in a good and workmanlike manner, costing less than
$25,000 in the aggregate, per year, without the consent of Landlord.
(b) No structural alterations, additions or improvements
shall be made in or to the Leased Premises without Tenant's first submitting to
Landlord plans and specifications for such proposed alterations, additions or
improvements and Tenant's receiving the prior written consent of Landlord. Any
work performed by or on behalf of Tenant in connection therewith shall comply
with all applicable laws, ordinances and regulations, and Tenant shall deliver
to Landlord, prior to the commencement of any such work, copies of all permits,
approvals and licenses as required by applicable law. All costs and expenses
incurred by Landlord in connection with her review process of Tenant's proposed
work shall be at the sole cost and expense of Tenant, which costs shall be
deemed to be Additional Rent and shall be
-36-
added to the installment of Annual Fixed Rent becoming due on the first of the
next succeeding month and shall be collected by Landlord as Additional Rent
hereunder.
(c) Landlord shall not be liable for, and Tenant hereby
releases Landlord from, any loss or damage, of or to any tools, machinery,
equipment, materials or supplies or Tenant or any employee of Tenant, or any
employee of any of them. Notwithstanding the foregoing, the sole risk of loss or
damage resulting from theft or mysterious disappearance of the tools or
equipment, including equipment to be installed in the Leased Premises, shall be
that of Tenant, whether or not such loss or damage is insured against.
(d) Tenant shall indemnify and hold harmless Landlord and
Landlord's agents and employees from and against all claims, damages, losses and
expenses, including attorneys' fees and disbursements, arising out of or in
connection with any work performed by any of them, whether or not attributable
to active or passive negligence on the part of the indemnitors and whether or
not the indemnitors participated in any wrong.
22.2 Duty to Restore
---------------
Tenant shall be obligated, with respect to any alteration or improvement, to
restore the Leased Premises to their condition prior to such alteration or
improvement unless Landlord shall waive in writing Tenant's obligation to
restore such alteration or improvement at the time Landlord's consent to the
alteration or improvement is requested. However, if an alteration, improvement
or addition does not require Landlord's consent, then, at the expiration or
sooner termination of this Lease, Tenant shall not be obligated to restore the
Leased Premises to their condition prior to the making of such alteration,
improvement or
-37-
addition, and shall not be obligated to remove or cause to be removed such
alteration, improvement or addition.
22.3 Fixtures
--------
All machinery and equipment (other than fixtures considered to
have become a part of the real property to which it may have been affixed and
other than air conditioning and heating units) and machinery constructed or
placed in the Leased Premises at the expense of Tenant or any predecessor of
Tenant, including the Landlord (other than existing leasehold improvements
considered to be a part of the real property to which it may be affixed) shall
be and remain the property of Tenant, and all or any part thereof may be removed
by Tenant at any time during the term hereof or, upon a prior termination of the
term hereof, within ninety (90) days after such prior termination or such
shorter period as determined by Landlord so as not to interfere with the
re-letting of the Leased Premises, but Tenant shall be under no obligation to
remove the same and may, at its option, surrendered all or any part thereof with
the Leased Premises. In case of damage or disfigurement to walls, ceilings or
floors caused by such removal, the cost of repairing (but not redecorating) the
same shall be borne by Tenant. Tenant's right to remove fixtures or equipment
shall apply to any extension or renewal of this Lease.
22.4 Personal Property
-----------------
Any personal property which shall remain in the Leased Premises
or any part thereof for thirty (30) days after the expiration or termination of
the term of this Lease shall be deemed to have been abandoned, and either may
be retained by Landlord as Landlord's property or may be disposed of in such
manner as Landlord may see fit; provided, however, that,
-38-
notwithstanding the foregoing, Tenant will, upon request of Landlord made not
later than thirty (30) days after the expiration or termination of the term
hereof, promptly remove from the building any such personal property at Tenant's
own cost and expense. If such personal property or any part thereof shall be
sold by Landlord, Landlord may receive and retain the proceeds of such sale as
Landlord's property.
ARTICLE XXIII
-------------
SALE OR MORTGAGE OF LEASED PREMISES
-----------------------------------
23.1 Effect on Tenant's Rights
-------------------------
Subject to the terms of any non-disturbance agreements entered
into by any mortgagee, this Lease, and the rights and benefits granted to Tenant
and its successors and assigns hereunder, shall not be affected or impaired by
any sale, transfer or mortgage of the Leased Premises, and any person, firm,
corporation or entity purchasing or otherwise acquiring any right, title or
interest in or to the Leased Premises or any part thereof or lien thereon shall
be bound by, and shall take such right, title and interest subject to, the
rights and benefits if Tenant and its successors and assigns under this Lease;
provided, however, that Tenant shall agree to subordinate this Lease to future
mortgages upon receipt of a "non-disturbance agreement" in form and upon such
terms reasonably acceptable to Tenant.
-39-
23.2 Tenant's Future Actions
-----------------------
Tenant agrees that, upon request by Landlord, Tenant will execute, acknowledge
and deliver such document or instrument as may be reasonably requested by the
holder of any mortgage on the Landlord's interest in the Leased Premises,
confirming or agreeing that this Lease is assigned to such mortgagee as
collateral security for such mortgage and agreeing to abide by such assignment,
provided that a copy of such assignment has in fact been delivered to Tenant.
ARTICLE XXIV
------------
ESTOPPEL CERTIFICATE
--------------------
At any time and from time to time, upon not less than five (5) business days'
prior notice, Landlord or Tenant shall execute, acknowledge and deliver to
Landlord or Tenant, or to anyone Landlord or Tenant shall designate, an Estoppel
Certificate executed by Landlord or Tenant (or if Landlord or Tenant is a
corporation by an appropriate officer of Landlord or Tenant), certifying, if
the same is due, that this Lease is unmodified and in full force and effect (or
if there have been modifications, that the same is in full force and effect as
modified and stating the modifications), and the dates to which rent has been
paid in advance, if appropriate, and stating whether or not, to the best
knowledge of the signer of such certificate, Landlord or Tenant is in default in
performance of any covenant, agreement, term, provision or condition contained
in this Lease, and, if so, specifying such default of which the third party may
have knowledge.
-40-
ARTICLE XXV
-----------
SHORT FORM LEASE
----------------
Disturbance Agreement" providing, in essence, that Tenant's possession will not
be disturbed by any foreclosure proceeding or deed in lieu of foreclosure so
long as Tenant is not in default under this Lease.
26.2 Attornment, Etc. to Mortgagee
-----------------------------
(a) In the event of a termination of any ground or underlying
Landlord agrees, promptly after the execution of this Lease, to
execute and deliver to Tenant a short form of Lease, or Notice of Lease, for
recording purposes in form reasonably satisfactory to Tenant.
ARTICLE XXVI
------------
SUBORDINATION AND OTHER PROVISIONS
----------------------------------
FOR BENEFIT OF MORTGAGE, ETC.
-----------------------------
26.1 Subordination in General
------------------------
(a) This Lease is and shall be subject and subordinate to all
present and future ground or underlying leases and to all mortgages, options and
building loan agreements that may now or hereafter affect such leases or the
Building and to all renewals, modifications, consolidations, replacements and
extensions of any such ground or underlying leases, options, and mortgages. The
provisions of this subparagraph 24.1 shall be self-operative and no further
instrument of subordination shall be required. In confirmation of such
subordination, Tenant shall execute and deliver promptly, at its own cost and
expense, any instrument, in recordable form if required, that Landlord, the
lessor of any ground or underlying lease, or the holder of any such mortgage, or
any of their respective successors in interest, may request to evidence such
subordination.
-41-
26.3 Certain Protective Provisions for
---------------------------------
Mortgagees and Those Claiming Under Them
----------------------------------------
Under no circumstances shall any lessor under a ground lease or
mortgagee or purchaser, assignee or lessee, as the case may be, whether or not
it shall have succeeded to the interests of the Landlord under this Lease, be:
(a) liable for any act, omission or default if any prior
landlord or for the return of any security deposit or part thereof not actually
received by such lessor, mortgagee, purchaser, assignee or lessee, as the case
may be; or
(b) subject to any offsets, claims or defenses that the
Tenant might have against any prior Landlord; or
(c) bound by any Rent or Additional Rent that Tenant might
have paid to any prior landlord for more than one (1) month in advance or for
more than three (3) months in advance where such Rent payments are payable at
intervals of more than one (1) month, or
(d) bound by any modification, amendment or abridgement of
the Lease, or any cancellation or surrender of the same, made without its prior
written approval,
-42-
26.4 Confirmation by Tenant of Assignment of Lease to Mortgagee as
-------------------------------------------------------------
Collateral Security
-------------------
Tenant agrees that, upon request of Landlord, Tenant will
execute, acknowledge and deliver such document or instrument as may be requested
by the holder of any mortgage on the Landlord's interest in the building
confirming or agreeing that this Lease is assigned to such mortgagee as
collateral security for such mortgage and agreeing to abide by such assignment,
provided that a copy of such assignment has in fact been delivered to Tenant.
ARTICLE XXVII
-------------
PARTIES BOUND
-------------
27.1 General Provisions
------------------
The covenants, agreements, terms, provisions and conditions of
this Lease shall bind and benefit the respective successors, assigns and legal
representatives of the parties hereto with the same effect as if mentioned in
each instance where a party hereto is named or referred to.
27.2 Landlord Not Bound After
------------------------
Termination of its Interest
---------------------------
It is understood and agreed that the covenants and obligations on
the part of Landlord herein named with respect to any period subsequent to the
transfer of its interest in the Leased Premises; that in the event of such
transfer, such covenants and obligations shall thereafter be binding upon each
transferee of such interest of Landlord herein named, but only with respect to
the period ending with a subsequent transfer of such interest.
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ARTICLE XXVIII
-------------
EXCULPATION OF LANDLORD FROM PERSONAL LIABILITY
-----------------------------------------------
Notwithstanding anything to the contrary set forth in this
Lease, it is specifically understood and agreed by Tenant that there shall be
absolutely no personal liability on the part of Landlord or on the part of the
partners of Landlord with respect to any of the terms, covenants and conditions
of this Lease; and Tenant shall look solely to the equity, if any, of Landlord
in the Leased Premises for the satisfaction of each and every remedy of Tenant
in the event of any breach by Landlord of any of the terms, covenants and
conditions of this Lease to be performed by Landlord, this exculpation of
personal liability to be absolute and without any exception whatsoever.
ARTICLE XXIX
------------
SUBORDINATION OF LANDLORD'S RIGHT OF DISTRAINT
----------------------------------------------
Landlord agrees to execute a written subordination or waiver of
Landlord's right of distraint for unpaid rent in favor of any lending
institution which from time to time makes a loan to Tenant secured by the items
of Tenant's property which are the subject of Landlord's right of distraint.
Landlord agrees to execute the form of Landlord's Waiver, License and Agreement
heretofore submitted by Gibraltar Corporation of America.
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ARTICLE XXX
-----------
ESTOPPEL CERTIFICATE
--------------------
At any time and from time to time, upon not less than ten (10)
days' prior notice, Landlord or Tenant shall execute, acknowledge and deliver to
Landlord or Tenant, or to anyone Landlord or Tenant shall designate, an Estoppel
Certificate executed by Landlord or Tenant (or if Landlord or Tenant is a
corporation, by an appropriate officer of Landlord or Tenant), certifying, if
the same is true, that this Lease is unmodified and in full force and effect (or
if there have been modifications, that the same is in full force and effect as
modified and stating the modifications), and the date to which Rent has been
paid in advance, if appropriate, and stating whether or not, to the best
knowledge of the signer of such certificate, Landlord or Tenant is in default in
performance of any covenant, agreement, term, provision or condition contained
in this Lease, and, if so, specifying each such default of which the signer may
have knowledge.
ARTICLE XXXI
ENTIRE AGREEMENT
----------------
This Lease, which includes Schedules "A" and "B" annexed hereto,
contains the entire agreement between Landlord and Tenant with respect to the
lease by Tenant of the Leased Premises and supersedes all prior arrangements and
understandings with respect thereto.
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ARTICLE XXXII
-------------
NOTICES
-------
ARTICLE XXXII
-------------
NOTICES
-------
All notices or other communications which are required or
permitted hereunder shall be in writing and sufficient if delivered personally
by courier service, with receipt, or sent by registered or certified mail,
postage prepaid, addressed as follows:
If to Landlord:
GANG REALTY, LLC
XX Xxx 000
Xxxxxxxxxx, Xxx Xxxx 00000
If to Tenant:
The RAL Supply Group, Inc.
00 Xxxxxxx Xxxx
Xxxxxxxxxx, Xxx Xxxx 00000
Attn: Xxxxx X. Xxxxxx, President
Any party may by notice change the address to which notice or other
communications to it are to be delivered or mailed.
ARTICLE XXXIII
--------------
WAIVERS AND AMENDMENTS
---------------------
Any waiver of any term or condition, or any amendment or
supplementation, of this Lease shall be effective only if in writing executed by
the party sought to be charged therewith. A waiver of any breach or failure to
enforce any of the terms or conditions
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of this Lease shall not in any way affect, limit or waive a party's right
hereunder at any time to enforce strict compliance thereafter with every term of
this Lease.
ARTICLE XXXIV
-------------
BROKERAGE
---------
Tenant covenants, represents and warrants that Tenant has had no
dealings or communications with any broker or agent in connection with the
consummation of this Lease; and Tenant covenants and agrees to pay, hold
harmless and indemnify Landlord from and against any and all cost, expense
(including reasonable attorneys' fees and disbursements) or liability for any
compensation, commissions or changes claimed by any broker or agent with respect
to this Lease or the negotiation thereof.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be
executed, this Agreement as of the day and year first above written.
LANDLORD
GANG REALTY, LLC
BY: /s/ Xxxxx X. Xxxxxx
-------------------------
Xxxxx X. Xxxxxx, Member
TENANT
THE RAL SUPPLY GROUP, INC.
BY: /s/ Xxxxx X. Xxxxxx
--------------------------
Xxxxx X. Xxxxxx, President
GANG REALTY, LLC
TO
THE RAL SUPPLY GROUP, INC.
"Schedule A"
Leased Premises
---------------
Xxxxxx Street portion of the property consisting of approximately 3,000 square
feet of warehouse, 1,130 square feet of supply room and 1,860 square feet
counter service area on the first floor and approximately 1,100 square feet of
storage on the second floor.
GANG REALTY, LLC
TO
THE RAL SUPPLY GROUP, INC.
"Schedule B"
Additional Provisions to Lease
------------------------------
1. Annual Fixed Rent in Initial Term and Renewal Terms
---------------------------------------------------
1.1 The "Annual Fixed Rent" for the first year of the Initial Term
shall be the sum of Sixty Thousand ($60,000) Dollars per year or Five
Thousand ($5,000) Dollars per month,
1.2 Every year, starting with the second year, the Annual Fixed Rent
shall be adjusted upward, but never decreased, pursuant to the
provisions hereof. Additionally, the Annual Fixed Rent shall be
increased by $12,000 per year on January 1, 2001.
1.3 For the purposes of this Schedule, the following terms have the
following meanings:
"Index" - The All Items Index (New York Services)
for the U.S. City Average of the Consumers Price
Index for Moderate Families in Large Cities
published by the U.S. Bureau of Labor, and any
successor thereto (1982- 1986= 100)
"Base Month" - May 1997
"Comparison Month" - May 1997 and every May thereafter
1.4 The Annual Fixed Rent for the second year of the Initial Term
shall be $60,000 per year, increased by the percentage of increase of
the Index of the Comparison Month (May 1998) over the Base Month (May
1997), except that in no event shall the increase be less than a two
(2%) percent increase over the previous year or more than an eight
(8%) percent increase over the previous year.
Example Number One
------------------
Assume that the Index for May 1998 shows a nine (9%) percent increase over
the Index for May 1997. The Annual Fixed Rent for the second year is
limited to $64,800
Page 1 of 2
1.5 The same procedure shall be followed every year throughout the
Initial Term and the Renewal Terms, with the applicable percentage of
increase to be multiplied times the Annual Fixed Rent for the year
just concluded.
Example Number Two
------------------
Assume that the Index for May 1999 shows a further five (5%) percent
increase over the Index for May 1997. The Annual Fixed Rent for the third
year is limited to $68,040.
1.6 Because the Index is not published until after the close of a
month, the adjustment In Annual Fixed Rent shall be made when the
Comparison Month's Index is published and Landlord presents to Tenant
the comparison figure and computation of adjustment of Fixed Rent; and
any increase for months already elapsed since the end of the prior
year shall be added to the next installment of Fixed Rent.
1.7 If the applicable Comparison Month Index should not be published,
the last applicable published figure for the Index shall be used,
except that such prior month's Index shall not be used retroactively
for a period in excess of three (3) months.
1.8 In the event that the Index is discontinued, the parties shall
agree upon an equivalent and substituted Index to be applied in the
same manner.
ATTEST: LANDLORD
GANG REALTY, LLC
/s/ Xxxx Xxxxx
-----------------------------
Xxxx Xxxxx BY: /s/ Xxxxx X. Xxxxxx
-------------------------
Xxxxx X. Xxxxxx, Member
ATTEST: TENANT
THE RAL SUPPLY GROUP, INC.
/s/ Xxxx Xxxxx
-----------------------------
Xxxx Xxxxx BY: /s/ Xxxx X. Xxxxxx
-------------------------
Xxxx X. Xxxxxx, President
Page 2 of 2
RIDER "I"
ENVIRONMENTAL MATTERS RIDER TO LEASE
Dated: June 2, 1997
GANG REALTY. LLC
----------------
("Landlord")
THE RAL SUPPLY GROUP. INC.
--------------------------
("Tenant")
1. General Prohibitions on Tenant's Conduct
----------------------------------------
1.1 Tenant shall not use or suffer the Leased Premises to be used in
any manner as to create or cause an environmental violation or hazard. Not in
limitation of the generality of the above, it is understood that Tenant shall
not cause or suffer to be caused any chemical contamination or discharge of
substance of any nature which is noxious,, offensive or harmful or which, under
any law, rule or regulation of any governmental authority having jurisdiction,
constitutes a hazardous substance or hazardous waste.
1.2 Tenant shall not generate, manufacture, refine, transport, treat,
store, handle, dispose or otherwise deal with any hazardous substances or
hazardous waste as presently or in the future defined in the Environmental
Cleanup Responsibility Act of New Jersey (XX.XX. 13:lk-6 et seq.) ("ECRA") (the
------------------------
generation, manufacture, refinement, transportation, treatment, storage,
handling, disposition and/or otherwise dealing with such substance or waste, as
the case may be, being referred to for the convenience as :dealing with" such
substances or waste),
2. Tenant's Compliance with ECRA and the Spill Act, Etc.
-----------------------------------------------------
2.1 If at any time during the Term of this Lease there shall be
required, with respect to the Leased Premises or any part thereof, any act
pursuant to or compliance with ECRA including the filing of any required notice
of sale or negative declaration affidavits or the preparation or effectuation of
any clean-up plans, Tenant shall be responsible for such compliance as if Tenant
were the "owner" of the Leased Premises as defined by ECRA.
2.2 Tenant hereby agrees to indemnify and hold harmless and defend in
the first instance Landlord from and against any and all claims, losses'
liabilities, damages, clean-up costs and reasonable attorney fees (a) arising
directly or indirectly from, out of or by reason of any discharge of hazardous
substances or environmental complaints, caused or permitted by Tenant or any
subtenant of Tenant during the Term of this Lease, or (b) failure of Tenant or
any subtenant of Tenant to comply with ECRA or any other environmental law now
or hereafter in effect.
Page 1 of 3
2.3 Tenant expressly acknowledges its understanding and agreement
that at the expiration or earlier termination of this Lease, or of any sublease
or subtenancy, certain notices, filing and possibly, sampling plans, cleanup
plans and cleanup work will be required by the State of New Jersey if Tenant's
or any subtenant's use of the Leased Premises or any part thereof renders the
premises an "industrial establishment" under ECRA, and that Tenant shall, either
in its own name, or if required, in the name of Landlord, comply, at Tenant's
own expense, with all such applicable notices, filings and the like and
indemnify and hold Landlord harmless, to the extent elsewhere provided in this
Lease with respect to Tenant's indemnities and hold harmless agreements, against
any responsibility which may be placed upon Landlord for or" relating to the
matter such requirement.
2.4 At the request of Landlord from time to time, Tenant shall:
(a) provide to Landlord copies of any documents filed
by Tenant. Pursuant to ECRA;
(b) permit Landlord to be present at any inspections,
on or off site, and at any meeting of the Department of
Environmental Protection of New Jersey or other
meetings, relating to ECRA; and
(C) provide Landlord with an inventory of materials
and substances dealt with by Tenant at the Premises, as
well as such additional information reasonably
requested by Landlord in order that Landlord be able to
provide required information for ECRA filings or for
determination of whether there has been compliance with
any environmental law, including ECRA, including but
not limited to the following information with respect
to Tenant and all or any subtenant(s), as requested;
(I) the standard of industrial
classification applicable to the use of the
Leased Premises by Tenant and such
subtenant(s);
(II) inventory of hazardous substances and
wastes dealt with at the Leased Premises;
(III) a listing of all Federal and State
environmental permits and enforcement actions
for violation of environmental laws;
(IV) a scaled site map identifying all areas
where substances or wastes are dealt with;
Page 2 of 3
(V) a description of storage vessels
containing wastes or substances, by type and
location;
(VI) notification regarding any spill or
discharge of hazardous substances or wastes
(including description and location of such);
and
(VII) copies of all soil, ground water or
surface water sampling results (including
effluent quality monitoring, conducted at the
Leased Premises).
3. Subtenants
----------
3.1 It shall be the responsibility of Tenant to require any subtenant
of the Leased Premises to agree expressly in writing to comply with the
provisions of this paragraph.
3.2 Tenant shall use its best efforts to cause the principals of any
corporate subtenant to agree to be personally responsible for compliance with
the provisions of this Rider.
4. Survival
--------
The provisions of this Rider shall survive the expiration or earlier termination
of this Lease.
LANDLORD
GANG REALTY, LLC
BY: /s/ Xxxxx X. Xxxxxx
-------------------------
WITNESS: Xxxxx X. Xxxxxx, Member
/s/ Xxxx Xxxxx TENANT
----------------------------------
Xxxx Xxxxx THE RAL SUPPLY GROUP, INC.
BY: /s/ Xxxxx X. Xxxxxx
--------------------------
Xxxxx X. Xxxxxx, President
Page 3 of 3
