FIXED TERM BUILDING LEASE AGREEMENT
Exhibit 10.1
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
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LESSOR
("Lessor"):
HULIC CO.,
LTD.
LESSEE
("Lessee"):
MORINDA JAPAN
GK
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
LEASE
AGREEMENT
<Lease
Summary>
Lessor
("Lessor")
|
Hulic
Co., Ltd.
|
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Lessee
("Lessee")
|
Morinda
Japan GK
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Building
|
Name
|
Morinda
Building
|
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Location
|
0-0-0
Xxxxxxxxxxxxx, Xxxxxxxx-xx, Xxxxx (xxxxxx xxxxxxx)
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Structure
/ Floors
|
9 story
steel frame / steel reinforced concrete / reinforced concrete, flat
roof structure with 2 basement floors
|
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Purpose
of Use
|
1F and
2F: Showroom (Portion Used for Store); 3F ~ 9F, B1 and B2:
Offices
|
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Lease
Term
|
March
22, 2019 through March 21, 2046
|
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|
Floor
|
Area
(m2)
|
Monthly
Rent (¥)
|
Consumption
Taxes / Local Consumption Taxes (¥) *
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Monthly
Amount with Consumption Taxes / Local Consumption Taxes (¥)
*
|
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Rent
|
9F
|
377.89
m2
|
¥20,000,000
|
¥1,600,000
|
¥21,600,000
|
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8F
|
377.89
m2
|
|||||||
7F
|
377.89
m2
|
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6F
|
377.89
m2
|
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5F
|
377.89
m2
|
|||||||
4F
|
377.89
m2
|
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3F
|
377.89
m2
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2F
|
377.89
m2
|
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1F
|
358.20
m2
|
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B1
|
334.87
m2
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B2
|
274.49
m2
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Total
|
3,990.68
m2
|
¥20,000,000
|
¥1,600,000
|
¥21,600,000
|
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Common
Service Fees
|
-
|
-
|
-
|
-
|
-
|
|||
Total
|
-
|
-
|
-
|
-
|
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Security
Deposit
|
¥200,000,000
(10
Months' Monthly Rent)
|
|
|
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Payment
Date and Method for Rent, etc.
|
Remit
to the Lessor's designated bank account by the 25th day of each
month (or the preceding business day of this day falls on a bank
holiday)
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Termination
Prohibition Period
|
Seven
(7) years from the execution date of this Agreement
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Termination
Advance Notice
|
At
least one (1) year prior to the scheduled termination
date
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Exemption
from Restoration to Original Condition
|
Restoration
to original condition shall be exempt after 20 years from the
execution date of this Agreement.
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Remarks
|
The
foregoing area is based on the real estate registry.
Lease
of entire building includes use of exterior walls (installation of
advertisements, etc.) and parking facilities.
The
Lessor will not change the name of the Building until the end of
this Agreement.
Reference
value calculated based on the consumption tax rate as of the time
of the execution of this Agreement.
|
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
The
Lessor and the Lessee hereby enter into this Fixed Term Building
Lease Agreement as follows (hereinafter, this "Agreement") with
regard to the Lessor leasing of the building stated above
(hereinafter, the "Building") to the Lessee, and this Agreement
shall take effect on the condition that the Building is transferred
to the Lessor pursuant to the Real Estate Purchase and Sale
Agreement dated March 22, 2019 by and between the Lessor and the
Lessee. IN WITNESS WHEREOF, two originals of this Agreement are
created, and upon placing the names and seals of the Lessor and the
Lessee, each shall retain one original hereof.
March
22, 2019
Lessor 7-3
Nihonbashi Odenmacho, Chuo-ku, Tokyo
Hulic
Co., Ltd.
/s/Xxxxxx
Xxxxxxxxx, Representative Director (Seal)
Lessee
Morinda Building
3-2-2 Nishishinjuku, Shinjuku-ku, Tokyo
Morinda
Japan GK
/s/Makoto Ooki,
Executive Officer (Seal)
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
1
(Lease Premises and
Lease Area)
The
Building and the lease area shall be as set forth in the above
stated Lease Summary (hereinafter, the "Lease
Summary").
Article
2
This
Agreement is a fixed term building lease agreement prescribed in
Article 38 of the Act on Land and Building Leases (hereinafter, the
"Act").
Article
3
(Purpose of
Use)
The
Lessee shall use the Building only for the purpose of use set forth
in the Lease Summary.
Article
4
(Lease
Term)
1.
The lease term
shall be as set forth in the Lease Summary, and shall not be
subject to any renewal of the lease agreement. The Lessor shall
deliver the Building to the Lessee on the start date of the Lease
Term.
2.
The Lessor and the
Lessee shall not be entitled to terminate this Agreement for a
period of seven (7) years from the execution date of this
Agreement.
3.
The Lessor shall
provide the Lessee with notice of the ending of the lease by
expiration of the lease term during the period between one (1) year
prior through six (6) months prior to the expiration of the lease
term.
4.
The Lessor or a
person designated by the Lessor, in the period from the date the
Lessee receives notice of the ending of this Agreement from the
Lessor through the expiration of the lease term, shall be entitled
to make a request to the Lessee for entrance to the Building in
order to show the Building to the next potential lessee, and the
Lessee shall cooperate with this entrance for showing the Building
as long as it does not interfere with its business.
5.
The Lessor and the
Lessee shall be entitled to agree upon and enter into a new fixed
term building lease agreement (hereinafter, the "Re-Contract") for
the Building starting from the day following the expiration date of
the lease term under this Agreement. If the Lessor desires to enter
into a Re-Contract, the Lessor shall state so in the written notice
under Paragraph 3. If the Lessee desires to enter into a
Re-Contract, the Lessee shall provide the Lessor with written
notice thereof during the period between one (1) year prior through
six (6) months prior to the expiration of the lease term,
regardless of whether this is prior to or after the receipt the
written notice from the Lessor pursuant Paragraph 3.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
4-2
(Early
Termination)
1.
Even during the
lease term, the Lessee may terminate this Agreement by providing
one (1) year or more advance written notice to the Lessor
designating the termination date which shall be the date after the
expiry of the termination prohibited period set forth in Article
4.2 of this Agreement, and this Agreement shall terminate upon the
arrival of such termination date.
2.
The Lessee shall be
entitled to immediately terminate this Agreement by paying the
Lessor an amount equal to twelve (12) months' rent (including
consumption taxes and the like) in lieu of the advance notice in
the preceding paragraph.
3.
Even in the event a
notice for termination does not satisfy the advance notice term of
Paragraph 1, the Lessee shall be entitled to terminate this
Agreement by paying the Lessor an amount equal to the rent
(including consumption taxes and the like) for the period that
falls short of the advance notice term.
4.
The Lessee shall
not be entitled to withdraw the advance notice of termination or
change the termination date without the prior written approval of
the Lessor.
5.
In the event the
Lessor receives notice of the termination of this Agreement from
the Lessee pursuant to any of Paragraphs 1 through 3, the Lessor or
a person designated by the Lessor shall be entitled to make a
request to the Lessee to enter the Building in order to show the
Building to the next potential lessees, and the Lessee shall
cooperate with this right to enter for showing the Building as long
as it does not interfere with its business.
Article
5
(Rent)
1.
The rent shall be
as set forth in the Lease Summary. Furthermore, the rent shall not
be revised for a period of seven (7) years from the execution date
of this Agreement, and Article 32 of the Act shall not apply during
this period.
2.
After seven (7)
years from the execution date of this Agreement, in the event of
the increase in taxes and public fees, increase in prices, or other
changes in economic circumstances, if the rent becomes unreasonable
in comparison to neighboring properties, the Lessor and the Lessee
shall be entitled to engage in good faith mutual consultations
regarding the revision of rent.
3.
Rent for periods of
less than one full month shall be prorated based on the number of
days in the corresponding month.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
6
(Burden of
Expenses)
1.
The Lessor shall
bear the following expenses:
(1)
Fixed asset taxes
and city planning taxes for the Building;
(2)
Insurance premiums
(fire insurance and liability insurance (facilities and elevators))
for the Building; and,
(3)
Fixed asset taxes
(depreciable asset taxes) for the depreciable assets related to the
Building installed by the Lessor after the date of this
Agreement.
2.
The Lessee shall
bear the following expenses:
(1)
Expenses associated
with the management of the Building (including statutory
inspections);
(2)
Fixed asset taxes
(depreciable asset taxes) for the depreciable assets related to the
Building reported by the Lessee prior to the date of this Agreement
or installed by the Lessee after the execution date of this
Agreement;
(3)
Electricity, gas,
water and other utility charges accompanying the use of the
Building;
(4)
Expenses required
in the maintenance (including the replacement of bulbs) of the
lighting inside the Building;
(5)
Expenses required
in cleaning the inside of the Building;
(6)
Expenses for
supplies and garbage disposal expenses;
(7)
Expenses associated
with the use of special machinery and/or equipment;
(8)
Expenses associated
with the maintenance and management of the fixtures and facilities
installed by the Lessee;
(9)
Fees and renewal
fees for the road occupancy permits, outdoor advertising permits
and the like related to the Building; and,
(10)
Neighborhood
association membership fees related to the Building.
3.
The Lessor and the
Lessee confirm that the details of the portion of burden of
expenses of Paragraph 1 and Paragraph 2 of this Article related to
maintenance, inspections and daily management shall be as set forth
in the Exhibit 2 "Classification Table for Burden of Repairs and
Renovations, etc. to Building and Facilities".
Article
6-2
(Reports Related to
Maintenance, Inspections and Daily Management)
1.
At the end of June,
the end of September, the end of December and the end of March, the
Lessee shall provide the Lessor with a report regarding the
implementation status of the following statutory inspections and
identified matters (including improvement plans):
(1)
Specified building
routine investigation report;
(2)
Building facilities
routine inspection report;
(3)
Fire prevention
facilities routine inspection report;
(4)
Elevator, etc.
routine inspection report; and,
(5)
Firefighting
equipment routine inspection results report.
2.
When objectively
and reasonably determined to be necessary by the Lessor, the Lessor
shall be entitled to request reports from the Lessee regarding the
implementation status of the maintenance, inspection and daily
management of the Building.
Article
7
(Payment
Method)
1.
By the 25th day of
each month, the Lessee shall pay the Lessor the following month's
rent together with an amount equal to the consumption taxes and
local consumption taxes calculated and separately notified by the
Lessor in accordance with Article 27, by remitting funds to the
bank account designated by the Lessor. Furthermore, the Lessee
shall bear the remittance fees.
2.
The Lessee shall
pay the expenses of items (1) through (10) of Article 6.2 directly
to the respective creditors.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
8
(Security
Deposit)
1.
The security
deposit shall be as set forth in the Lease Summary, and the Lessee
shall deposit the security deposit with the Lessor simultaneous to
the execution of this Agreement, to secure the obligations owed by
the Lessee to the Lessor under this Agreement.
2.
The security
deposit shall not accrue interest.
3.
In the event the
Lessee is late in the payment of rent or fails to perform other
obligations under this Agreement, the Lessor shall be entitled to
appropriate payment of the Lessee's obligations under this
Agreement from the security deposit, and in such instances the
Lessor shall promptly provide the Lessee with notice
thereof.
4.
In the event the
Lessor appropriates payment of the Lessor's obligations from the
security deposit under the preceding paragraph, the Lessee shall
replenish the deficient amount of the security deposit within five
(5) days after the receipt of notice from the Lessor.
5.
Upon the ending of
this Agreement, once the Lessee completes vacation and surrender of
the Building, the Lessor shall promptly refund the Lessee the
balance of the security deposit remaining after appropriation to
the payment of all the obligations owed by the Lessee to the
Lessor.
6.
The Lessee shall
not be entitled to use the security deposit to assert the setting
off of rent or any other obligations owed to the
Lessor.
7.
The Lessee shall
not be entitled to assign to any third party or provide as
collateral for debt its rights associated with the security
deposit.
Article
9
(Late Payment
Damages)
If the
Lessee is late in the payment of rent or other obligations, the
Lessor shall be entitled to seek damages from the Lessee assessed
at a rate of seven percent (7%) per annum (prorated based on a
365-day year) on the amount of the late payment; provided, however,
that the Lessee shall not be released from the Lessor's exercise of
its right to terminate this Agreement through the payment of these
damages.
Article
10
(Duty of Care of a
Good Manager)
The
Lessee, at its own liability, must diligently exercise the care of
a good manager in the use and management of the Building in
accordance with laws, regulations and the intent. In addition, the
Lessee must exercise the maximum care in the use and management of
the Building to strive to keep the interior and exterior in good
clean condition, to regularly take proper measures to see that
there is no obstruction to the drains, gutters and other common
facilities, to not carry in dangerous items in to the Building,
make loud noises, emit foul odors, engage in other actions that
harm public morals or cause damages or nuisance to
neighbors.
Article
11
(Intentionally
Deleted)
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
12
(Antisocial Forces,
etc.)
1.
The Lessee
represents and warrants to the Lessor that as of the execution date
of this Agreement and the start date of the lease term it does not
having any relations or involvement with organized crime groups or
other antisocial forces. In addition, the Lessee covenants to the
Lessor that it will not have any relations or involvement with
organized crime groups or other antisocial forces after the
execution date of this Agreement. Furthermore, relations or
involvement with organized crime groups or other antisocial forces
shall include the following listed cases:
(1)
Person/entity
related to the Lessee is determined to be a group that engage in,
or is suspected of aiding and abetting conduct in collective or
habitually acts of violence and the like, or member of such group.
Furthermore, person/entity related to the Lessee shall include the
Lessee, its officers and the like, its affiliated companies and
their officers and the like;
(2)
Person/entity
related to the Lessee is affiliated with a group which is subject
to punishment under the Act on the Control of Organizations which
have Committed Indiscriminate Mass Murder (Act No. 147 of 1999,
including subsequent amendments), or affiliated with other similar
groups;
(3)
Person/entity
related to the Lessee is engaging in the sex-related businesses
defined in Paragraph 1 of Article 2 of the Act on Control and
Improvement of Amusement Business, etc. (Act No. 122 of 1948,
including subsequent amendments) or the sex-related special
amusement businesses defined in Paragraph 5 of that same Article,
or person/entity seeking to use the Building and the like on behalf
thereof;
(4)
Person/entity
related to the Lessee is an organized crime group, designated
organized crime group, designated organized crime syndicate or
organized crime group member defined in Article 2 of the Act on
Prevention of Unjust Acts by Organized Crime Group Members (Act No.
77 of 1991, including subsequent amendments) or an affiliate
thereof;
(5)
Person/entity
related to the Lessee is person/entity engaging in or suspected of
engaging in the concealment of criminal proceeds or the receipt of
criminal proceeds or other benefits similar thereto prescribed in
the Act on Punishment of Organized Crimes and Control of Crime
Proceeds (Act No. 136 of 1999, including subsequent
amendments);
(6)
Person/entity
related to the Lessee is xxxxxx/entity restricted from making
collections as defined in Paragraph 3 of Article 24 of the Money
Lending Business Act (Act No. 32 of 1983, including subsequent
amendments), or a person/entity similar thereto;
(7)
Person/entity
related to the Lessee is person/entity who is suspected of causing
trouble by threatening people or engaging in behavior that xxxxx
the peace of personal life or business, or person/entity seeking to
use the Building on behalf thereof;
(8)
In addition to the
foregoing, person/entity related to the Lessee is person/entity who
is determined to be a group that run contrary to public order and
good morals, party related thereto, or person/entity who is
determined to markedly lack social credit/reputation;
(9)
Entity related to
the Lessee is a corporation that hold entities related to the
Lessee who corresponds to the preceding respective items
(hereinafter, "organized crime groups or other antisocial forces")
as a parent company or other affiliated company;
(10)
Involvement of
organized crime groups or other antisocial forces in the management
of entities related to the Lessee;
(11)
Person/entity
related to the Lessee cooperates or involves in the maintenance or
operation of organized crime groups or other antisocial forces
through the provision of funds to organized crime groups or other
antisocial forces or other behavior;
(12)
Person/entity
related to the Lessee is person/entity who interacts with organized
crime groups or other antisocial forces;
(13)
Person/entity
related to the Lessee is person/entity who threatens the order or
safety of civil society, or who preclude sound economic activities
or social development;
(14)
Person/entity
related to the Lessee is person/entity providing the Building for
use as offices for organized crime groups or other antisocial
forces; and,
(15)
Allowing organized
crime groups or other antisocial forces to repeatedly and
continuously enter and exit the Building.
2.
The Lessor shall be
entitled to terminate this Agreement unconditionally and without
any prior notice in the event all or any of the representations and
warranties of the preceding paragraph are discovered to be untrue
or inaccurate after the execution of this Agreement, or in the
event the Lessee is in breach of the covenants of the preceding
paragraph.
Article
13
(Prohibited
Matters)
Unless
otherwise prescribed, the Lessee must not engage in the following
actions and must not have the Lessee or its employees, customers,
visitors or other related persons (hereinafter, "Employees, etc.")
engage in the following actions; provided, however, that the
foregoing provision shall not apply in those instances approved to
in advance by the Lessor in writing:
(1)
Assign or provide
as collateral all or a portion of the leasehold;
(2)
Sublease or lease
for use all or a portion of the Building; excluding, however,
subleasing or leasing for use to the Lessee's affiliated companies
with the prior approval of the Lessor;
(3)
Use all or a
portion of the Building as offices or the like for third parties,
allow a third party to co-occupy the Building, or display occupancy
in the name of a third party; provided, however, that the foregoing
provisions shall not apply in the event of co-occupation by the
Lessee's affiliated companies with the prior approval of the
Lessor;
(4)
Reside or stay
overnight inside the Building;
(5)
Install telephone
lines in the name of a third party;
(6)
Engage in a change
of the Lessee's representative, representative director or
director, an assignment of business, merger or the like which has
the same result as assigning the leasehold or subleasing the
Building;
(7)
Engage in actions
that damage the Building or otherwise harm the preservation of the
Building;
(8)
Bring in or use in
the Building items, animals or the like which have a risk of
ignition, explosion, vibration, foul odors or noise,;
and,
(9)
Engage in
advertisements or other postings in locations other than those
designated by the Lessor.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
14
(Notification of
Changes to Registration Matters or Status, etc.)
The
Lessee shall provide the Lessor with written notice without delay
when material changes occur to the Lessee's address, trade name,
representative, business purpose, or other commercial register
matters or status matters.
Article
15
(New Installation
of Fixtures and Equipment, etc.)
1.
The Lessee shall
obtain the Lessor's prior written approval when seeking to engage
in the following activities. In addition, if the Lessor establishes
reasonable conditions for such approval, the Lessee shall comply
with such conditions. The Lessee agrees to place orders for the
design, construction and the like related to the following actions
with the person designated by the Lessor (provided, however, that
the construction implemented by the person designated by the Lessor
shall be generally suitable and reasonable in terms of the quality,
schedule and costs, and the Lessor or the person designated by the
Lessor shall submit an estimate to the Lessor and obtain its
approval thereon prior to the start of the construction) or an
entity approved by the Lessor (provided, however, that the Lessor
shall not unreasonably delay, withhold or refuse such approval),
and to bear all the costs required in the design, construction and
the like. In addition, if the following actions are commenced
without the approval of the Lessor, the Lessor shall be entitled to
ask the Lessee to suspend these actions, and if the Lessee fails to
comply with this request, the Lessor shall be entitled to prohibit
the Lessee from using the subject location, or remove the newly
installed, added or modified fixtures, equipment or the like or
make restoration to original condition at the Lessee's
burden:
(1)
New installation,
addition and modification of partitioning, interior finish and
other fixtures (excluding, however, the new installation or
movement of normal furniture, personal computers and other office
equipment);
(2)
New installation,
addition and modification of plumbing or wiring for electricity,
gas, water, telephones or the like;
(3)
Bringing in,
installation or adding of safes, computers, other heavy items,
bulky items or machinery requiring lots of
electricity;
(4)
Installation of
signs or advertisements and posting or the like of trade name or
trademarks; and,
(5)
Change of keys of
the entrance of the Building.
2.
The Lessee shall
bear the real estate acquisition taxes, fixed asset taxes and other
taxes and public fees assessed on the fixtures, equipment and the
like newly installed or added by the Lessee, regardless of who
addressed to or whose name they are in, and the Lessee shall submit
the necessary documentation in the event separation procedures or
the like are conducted by the Lessor or the owner of the Building.
If the taxes or the like are assessed integrally without separation
in the name of the Lessor, upon mutual consultation, the Lessor and
the Lessee shall proportionately divide and bear the tax amount
under a fair and reasonable method. The Lessor shall issue a
written invoice to the Lessee for this proportionate amount, and
the Lessee shall pay the Lessor the billed amount by the date
designated by the Lessor.
3.
The Lessee shall
bear the expenses associated with the maintenance and management of
the fixtures, equipment and the like newly installed or added by
the Lessee.
4.
If the status of
construction for the new installation, addition or the like of
fixtures, equipment or the like under Paragraph 1 is subsequently
found to not be in conformance with the Building Standards Act,
Fire Defense Act or other relevant regulations, the Lessee shall
promptly engage in construction to remedy the nonconformance at its
own liability and burden.
Article
16
(Burden of Repair
Expenses and Renovation Expenses)
1.
The Lessor shall
bear the repair and renovation expenses related to the maintenance
and preservation of the Building's framework, roof and exterior
walls.
2.
The Lessee shall
bear the expenses for the maintenance, preservation, repair,
renovation and the like of the Building (including the building
facilities and the like) excluding the framework, roof and exterior
walls set forth in the preceding paragraph.
3.
The Lessee shall
bear the expenses for repairs and the like (including resurfacing,
repainting and the like) to the walls, ceilings, floors and the
like inside the Building.
4.
When locations
requiring the repairs of Paragraph 2 and Paragraph 3 of this
Article are discovered, the Lessee shall promptly provide notice to
the Lessor, shall implement even those repairs slated to be
conducted at its own burden after mutually consulting with the
Lessor, and shall place orders for with the person designated by
the Lessor (provided, however, that the construction implemented by
the person designated by the Lessor shall be generally suitable and
reasonable in terms of the quality, schedule and costs, and the
Lessor or the person designated by the Lessor shall submit an
estimate to the Lessor and obtain its approval thereon prior to the
start of the construction) or an entity approved by the Lessor
(provided, however, that the Lessor shall not unreasonably delay,
withhold or refuse such approval).
5.
The Lessor and the
Lessee confirm that the details of the expenses for the repairs and
renovations of Paragraph 1 and Paragraph 2 of this Agreement shall
be as set forth in Exhibit 2 "Classification Table for Burden of
Repairs and Renovations, etc. to Building and
Facilities".
6.
In the event the
use of the Building is impacted by construction conducted by the
Lessor for the Building, the Lessor shall implement the
construction after providing the Lessee with a full explanation in
advance. In addition, in the event this construction materially
interferes with the Lessee, the Lessor and the Lessee shall engage
mutual good faith consultations regarding a reduction in rent;
provided, however, that the Lessee shall not separately seek
compensation for business interruption or other damages from the
Lessor.
Article
17
(Compensation of
Damages)
1.
The Lessee must
immediately provide notice to the Lessor when the Lessor or its
Employees, etc. willfully or negligently damage or defile the
Building, the Building's site or the like, or cause physical or
property damages to other tenants or other third parties, and must
compensate the damages suffered by the Lessor or the corresponding
third party.
2.
The Lessee shall
not make any claims against the Lessor for the damages it suffers
due to the actions or omission of the other tenants of the Building
or other third parties.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
18
(Termination of
Agreement)
1.
The Lessor shall be
entitled to terminate this Agreement without providing any prior
notice or the like when the Lessee corresponds to one of the
following respective items:
(1)
When two (2) or
more months late in the payment of the rent, the expenses of
Article 6 or other expenses slated to be borne by the Lessee, and
failing to provide payment within a reasonable time period after
receiving notice from the Lessor regarding the late
payment;
(2)
When engaging in
actions which breach the provisions of Article 3, Article 12 or
Article 13;
(3)
When subject to a
disposition for the suspension of bank transactions, provisional
attachment, attachment, provisional disposition, compulsory
execution or the like, or when a petition is filed for the
commencement of bankruptcy procedures, the commencement of civil
rehabilitation procedures, the commencement of corporate
reorganization procedures or special liquidation;
(4)
When the Lessee is
subject to a business cease and desist order or other
administrative disposition based on a violation of the Specified
Commercial Transaction Act or the like;
(5)
Upon
dissolution;
(6)
When the Lessee
otherwise suffers a substantial loss of social
credibility/reputation;
(7)
When not using the
Building for two (2) or more months without the prior written
approval of the Lessor;
(8)
When significant
changes occur to assets, credit, organization, business purpose or
business otherwise, or there is an assignment of business, merger
or other change in the company's actual status, and the Lessor
objectively and reasonably determines that the continuation of this
Agreement is difficult;
(9)
When the Lessee's
economic credit status significantly deteriorates in comparison to
its status as of the time of the execution of this Agreement, or
the Lessee's financial statements and other information related to
its finances disclosed by the Lessee to the Lessor do not show the
Lessee's economic credit status as of the time of the execution of
this Agreement, and the Lessor objectively and reasonably
determines that the continuation of this Agreement is
difficult;
(10)
When the Lessor
objectively and reasonably determines that the continuation of this
Agreement is difficult due to events commensurate to those of the
preceding respective items; or,
(11)
In addition to the
events prescribed in the preceding respective items, when the
Lessee acts in breach of this Agreement or other agreements
executed incidental to this Agreement, and fails to cure the breach
within a reasonable time period after receiving notice from the
Lessor regarding the breach.
2.
In the event this
Agreement is terminated pursuant to the preceding paragraph, the
Lessee shall pay the Lessor an amount equal to twelve (12) months'
rent as a penalty; provided, however, that this shall not preclude
the Lessor from separately seeking compensation for damages from
the Lessee.
3.
The Lessee shall be
entitled to terminate this Agreement without providing any prior
notice or the like when the Lessor corresponds to one of the
following respective items:
(1)
When subject to a
disposition for the suspension of bank transactions, provisional
attachment, attachment, provisional disposition, compulsory
execution or the like, or when a petition is filed for the
commencement of bankruptcy procedures, the commencement of civil
rehabilitation procedures, the commencement of corporate
reorganization procedures or special liquidation;
(2)
When the Lessor is
subject to a business cease and desist order or other
administrative disposition based on a violation of the Specified
Commercial Transaction Act or the like;
(3)
Upon
dissolution;
(4)
When the Lessor
otherwise suffers a substantial loss of social
credibility/reputation;
(5)
When significant
changes occur to assets, credit, organization, business purpose or
business otherwise, or there is an assignment of business, merger
or other change in the company's actual status, and the Lessee
objectively and reasonably determines that the continuation of this
Agreement is difficult;
(6)
When the Lessor's
economic credit status significantly deteriorates in comparison to
its status as of the time of the execution of this Agreement, and
the Lessee objectively and reasonably determines that the
continuation of this Agreement is difficult;
(7)
When the Lessee
objectively and reasonably determines that the continuation of this
Agreement is difficult due to events commensurate to those of the
preceding respective items; or,
(8)
In addition to the
events prescribed in the preceding respective items, when the
Lessor acts in breach of this Agreement or other agreements
executed incidental to this Agreement, and fails to cure the breach
within a reasonable time period after receiving notice from the
Lessee regarding the breach.
4.
In the event this
Agreement is cancelled pursuant to the preceding paragraph, the
Lessor shall compensate the Lessee for the damages suffered by the
Lessee.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
19
(Vacation,
Surrender and Restoration to Original Condition)
1.
The Lessor and the
Lessee mutually confirm that the original condition of the Building
as of the start of the lease is presumed to be as set forth in the
specifications of Exhibit 1 "Restoration to Original Condition
Standards"; provided, however, that because the Lessee plans on
remodeling the first and second floors, the Lessor and the Lessee
shall mutually consult and reach an agreement on the restoration to
original condition standards based on the standard store
specifications prior to the implementation of the remodeling.
Furthermore, if an agreement is not reached through mutual
consultation, the it shall be the standard office specifications
set out in Exhibit 1 "Restoration to Original Condition
Standards".
2.
Upon the ending of
this Agreement, the Lessee, at its own burden, must remove the
equipment, machinery, fixtures, partitions, fittings, items and the
like installed by the Lessee, shall make repairs to the locations
requiring mending, shall repaint and resurface the walls, ceilings
and floor finishes, and restore the entire Building to the original
condition agreed by the Lessor and the Lessee under the preceding
paragraph, and must vacate, surrender and return the Building by
the ending date of this Agreement.
3.
If property owned
by the Lessor is installed by the Lessor at the wish of the Lessee,
if requested by the Lessor, the Lessee shall vacate and surrender
the Building after removing this property.
4.
The construction
required in the restoration to original condition of Paragraph 2
and Paragraph 3 shall be conducted by the Lessor or a person
designated by the Lessor, and the costs of the construction shall
be borne by the Lessee; provided, however, that the construction
implemented by the Lessor or the person designated by the Lessor
shall be generally suitable and reasonable in terms of the quality,
schedule and costs, and the Lessor or the person designated by the
Lessor shall submit an estimate to the Lessor and obtain its
approval thereon prior to the start of the
construction.
5.
The Lessor, upon
mutual consultation with the Lessee, shall be entitled to engage in
a cash settlement in lieu of the restoration to original condition
prescribed in Paragraph 2 and Paragraph 3.
6.
Notwithstanding the
provisions of Paragraph 2 and Paragraph 3, if the Lessee fails to
restore the Building to its original condition by the ending date
of this Agreement, the Lessor shall be entitled to take all of the
measures prescribed in Paragraph 2 and Paragraph 3 at the burden of
the Lessee.
7.
The Lessee approves
in advance that if property is left behind in the Building at the
time of the ending of this Agreement, the Lessee shall be deemed to
have abandoned ownership of this property and the Lessor shall be
entitled to arbitrarily remove and dispose of this property. In
such instances, the Lessor shall be entitled to xxxx the Lessee for
the expenses required in the removal and disposal, and the date on
which the Lessor completes the removal and disposal shall be the
vacation and surrender date.
8.
Notwithstanding the
provisions of this Agreement, the Lessor shall release the Lessee
from the obligation of restoration to original condition after
twenty (20) years from the execution date of this
Agreement.
9.
Notwithstanding the
provisions of the preceding paragraph, the mechanical parking
facilities must be restored to original condition (to a state where
it is usable in the number of vehicles required by law) and
returned even after the twenty (20) year period, but the foregoing
provision shall not apply if it is evident that the Lessor will
demolish the Building immediately after the Lessee
leaves.
10.
Upon completion of
the vacation and surrender of the Building, the Lessor shall
immediately deliver written confirmation thereof to the
Lessee.
Article
20
(Prohibition on
Claims for Moving Fees, Purchase of Fixtures, etc.)
When
vacating and surrendering the Building, the Lessee shall not be
entitled to make claims for the refund of the necessary or
beneficial expenses outlaid by the Lessee, claims for moving fees,
eviction fees, concession money, business guarantees, goodwill or
the like, claims for the purchase of the fixtures and the like
newly installed or added by the Lessee, or any other claims,
regardless of the reason or the pretext.
Article
21
(Delay of Vacation
and Surrender)
If the
Building is not vacated and surrendered simultaneous to the ending
of this Agreement, the Lessee shall pay the Lessor, as damages for
use of the Building, an amount equal to double the rent and an
amount equal to the expenses of Article 6 for the period from the
day following the ending of this Agreement through the vacation and
surrender of the Building; provided, however, that if the Lessor
suffers damages from the delay of vacation and surrender, the
Lessee must compensate these damages separate from the foregoing
damages.
Article
22
(Entry to Lease
Premises)
The
Lessor or a person designated by the Lessor, upon providing advance
notice to the Lessee, shall be entitled to enter the Building as
needed and enact prescribed measures when required for the
preservation, sanitation, crime prevention, fire prevention or the
like for the Building, and the Lessee shall cooperate with the
measures taken by the Lessor; provided, however, that notice shall
be provided promptly after the fact when advance notice cannot be
provided in the case of urgency or emergency. Furthermore, in the
case of this paragraph, the Lessor or the person designated by the
Lessor must strive their utmost not to interfere the business of
the Lessee.
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
23
(Termination of
Agreement by Force Majeure)
This
Agreement shall automatically terminate in the event all or a
portion of the Building is lost or damaged by a natural disaster or
other event not attributable to the Lessor or the Lessee, and the
Lessor and the Lessee agree that it is impossible to achieve the
purpose of this Agreement. In such instances, the Lessor and the
Lessee shall not make any claims against the other party for the
compensation of damages, indemnification of expenses or the like
related to the loss or damage or the resulting ending of this
Agreement, and the Lessee shall not be obligated to restore the
Building to its original condition. Furthermore, upon the ending of
this Agreement pursuant to this Article, the Lessor shall promptly
return the remaining balance of the security deposit (if existing)
to the Lessee.
Article
24
(Lessor's Exemption
from Liability)
1.
The Lessor shall
not be liable for the damages suffered by the Lessee due to a
natural disaster, fire, theft, unexpected accident or other event
not attributable to the Lessor.
2.
The Lessor shall
not be liable for the suspension of use of all or a portion of the
Building due to accidents caused by events not attributable to the
Lessor or by repairs, modifications, and renovations required in
the maintenance and management of the Building; provided, however,
that the Lessor shall be obligated to promptly resolve matters
regarding the assets slated to be the Lessor's assets under Exhibit
2, and the Lessee shall cooperate with the Lessor in the
implementation of this construction.
Article
25
(Lessor's
Agency)
The
Lessor shall be entitled to delegate or subcontract all or a
portion of the services related to this Agreement to a person
reasonably found to be appropriate by the Lessor.
Article
26
(Intentionally
Deleted)
Article
27
(Consumption Taxes
and Location Consumption Taxes)
The
Lessee shall bear the consumption taxes and local consumption taxes
assessed on the rent and other taxable items (hereinafter, "Taxable
Items"), and the Lessee shall add and pay the amount calculated and
billed by the Lessor in accordance with the tax rate applicable to
the respective Taxable Items together with the amounts of these
respective Taxable Items. Furthermore, in the event the tax rate
for consumption taxes or local consumption taxes is modified under
the amendment of laws and regulations or the like, with regard to
the amount equal to the consumption taxes or local consumption
taxes on the Taxable Items after the date on which the laws and
regulations are modified or the like (inclusive of such date),
notwithstanding the notations in the Lease Summary, the Lessee
shall pay the Lessor the amount of the consumption taxes or local
consumption taxes calculated in accordance with the modified tax
rate, in accordance with the billing from the Lessor.
Article
28
(Intentionally
Deleted)
Article
29
(Intentionally
Deleted)
ENGLISH
TRANSLATION
FOR
REFERENCE PURPOSE ONLY
Article
30
(Duty of
Confidentiality)
1.
Except in the
following cases, the Lessor and the Lessee must not present this
Agreement to a third party or divulge the content of this Agreement
to a third party without the prior approval of the other
party:
(1)
When disclosure is
required under applicable laws and regulations, orders or
instructions of administrative agencies, or the rules of
self-regulating organizations;
(2)
When disclosure is
provided to the respective parties' attorneys, certified public
accountants, tax accountants, real estate appraisers or other
experts who owe a duty of confidentiality by law;
(3)
When disclosure is
provided to the Lessor's affiliated companies (including investment
corporations);
(4)
When disclosure is
provided to the Lessor's investors (including direct or indirect
contributors to the Lessor, the Lessor's affiliated companies, and
affiliated company's real estate funds in which the Lessor enjoys
economic benefits);
(5)
When disclosure is
provided to future potential assignees (including investors and
potential investors in these potential assignees and entities
considering financing these potential assignees) of the Building
(including a trust beneficiary interest in a trust that as the
Building as a trust asset); and,
(6)
When providing
disclosure to the management company or the like for the management
of the Building.
2.
In the event the
Lessor or the Lessee breach the preceding paragraph and cause
damages to the other party, it must compensate these
damages.
3.
The Lessor shall
use the personal information obtained from the Lessee for the
execution and performance of agreements for the purchase and sale,
development, brokering, leasing, lease management and other
services implemented by the Lessor for real estate and the like
(including trust beneficiary interests), and the provision of
information and services, communications and management related to
these services, and other business purposes prescribed by the
Lessor, and the details of this use are disclosed on the Lessor's
homepage.
Article
31
(Governing
Law)
The
original of this Agreement shall be the Japanese language version
hereof, and all matters related to the interpretation and
performance of this Agreement shall be governed by the laws of
Japan.
Article
32
(Court of
Jurisdiction)
The
Tokyo District Court shall be the only court with jurisdiction by
agreement over the disputes related to this Agreement arising
between the Lessor and the Lessee.
Article
33
(Mutual
Consultation Matters)
Matters
not prescribed in this Agreement and questions regarding this
Agreement shall be resolved by the Lessor and the Lessee through
mutual good faith consultation.
Article
34
(Consent for
Subleasing)
Notwithstanding
Article 13, the Lessor shall allow the Lessee to sublease a portion
of the Building to Morinda Worldwide Inc., Japan Branch
(hereinafter, the "Sublessee") on the condition that the Lessee
consents to the following respective items:
(1)
During the term of
this Agreement, the Lessee shall have the Sublessee comply with the
provisions of this Agreement and the building rules, and shall
resolve all problems arising with regard to the Sublessee at its
own liability and burden;
(2)
The obligation to
refund the deposit (if existing) under the lease agreement with the
Sublessee shall be borne solely by the Lessee, and not by the
Lessor; and,
(3)
Upon the
termination of this Agreement, the Lessee, at its own burden and
liability, shall have the Sublessee vacate the
Building.
Article
35
(Special Agreement
Matters)
1.
The Lessor confirms
that the Lessee plans on remodeling the first and second floors
after the execution date of this Agreement. The Lessee shall
implement the remodeling construction within three (3) months from
the purchase and sale closing date, and shall modify the usage of
the first and second floors to offices (show room) or a store of
less than 100 m2.
2.
The Lessee shall
promptly provide a report to the Lessor in the event instructions,
business cease and desist orders, on-site inspections, warnings or
other administrative procedures under the Specified Commercial
Transaction Act or the like are received from local government
entities, the Consumer Affairs Agency or other administrative
agencies, since there is a risk that the Lessee's social
credibility/reputation will decline.
3.
The Lessee shall
not use the Building's mechanical parking facilities unless they
are kept in good operating condition, and shall take measures to
ensure safety by not allowing the doors to be opened by third
parties.
4.
On the date of this
Agreement, the Lessee shall lend the keys and the like listed in
Exhibit 3 to the Lessee, and the Lessee shall confirm receipt of
these keys and the like.
End