Exhibit 10.25
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LEASE AGREEMENT
Landlord: XXXXXX PROPERTIES II LLC
Tenant: XXXXXX ASSOCIATES LLC
as of July 31, 1998
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TABLE OF CONTENTS
1. Initial Development.......................................................1
2. Term and Occupancy........................................................2
3. Rent......................................................................2
4. Use.......................................................................3
5. Maintenance, Repairs and Replacements.....................................3
6. Alterations...............................................................3
7. Signs.....................................................................4
8. Utilities and Services....................................................4
9. Compliance with Law.......................................................4
10. Landlord's Title, Authority and Quiet Enjoyment; Tenant's Authority.......5
11. Subordination.............................................................5
12. Assignment and Sublease...................................................5
13. Lease Extension...........................................................7
14. Impositions...............................................................7
15. Insurance.................................................................8
16. Destruction and Restoration...............................................9
17. Condemnation.............................................................10
18. Default by Tenant........................................................13
19. Landlord's Remedies......................................................13
20. Notices..................................................................14
21. Brokerage................................................................14
22. Estoppel.................................................................14
23. Hazardous Substances.....................................................15
24. Surrender................................................................16
25. Liens....................................................................16
26. Interest.................................................................17
27. Inspections..............................................................17
28. Transfer of Landlord's Interest..........................................17
29. Indemnity................................................................17
30. Modification of Lease....................................................18
31. Choice of Law and Interpretation.........................................18
32. Independent Covenant; Net Lease..........................................18
33. Entry by Landlord........................................................18
34. Survival of Obligations..................................................18
35. Option to Purchase Demised Premises......................................18
36. No Merger................................................................20
Exhibit A - Legal Description
Exhibit B - Site Plan
Exhibit C - List of Plans and Specifications and Construction Contracts
Exhibit D - Schedule of Rents
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THIS LEASE AGREEMENT (this "Lease") is made as of the 31st day of July,
1998 between XXXXXX PROPERTIES II LLC, an Illinois limited liability company,
having its principal office at 000 Xxxx Xxx Xxxx, Xxxxxxxxxxxx, Xxxxxxxx 00000
(the "Landlord"), and XXXXXX ASSOCIATES LLC, an Illinois limited liability
company, having its principal office at 000 Xxxx Xxx Xxxx, Xxxxxxxxxxxx,
Xxxxxxxx 00000 (the "Tenant").
W I T N E S S E T H:
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Landlord, for and in consideration of the rents, covenants and
agreements hereinafter set forth on the part of Tenant to be paid, kept,
observed and performed does hereby lease unto Tenant, and Tenant does hereby
take subject to the conditions herein expressed, all those parcels of land
consisting of approximately 12.5 acres situated in Lincolnshire, Illinois,
County of Lake and legally described on Exhibit A attached hereto and made a
part hereof (the "Land"), together with all improvements located on and to be
constructed thereon by Landlord, which are hereinafter called "Landlord's
Improvements." Landlord's Improvements and all other improvements, machinery,
building equipment, fixtures and other property, real, personal or mixed (except
Tenant's trade fixtures), installed or located thereon, together with all
additions, alterations and replacements thereof are herein collectively, the
"Improvements". The Land and the Improvements are hereinafter collectively
referred to as the "Demised Premises." The parties acknowledge that
contemporaneously herewith, Landlord is issuing $45,000,000 of its Secured
Credit Tenant Notes due 2019 (the "Notes") pursuant to a Note Purchase Agreement
(the "Note Agreement") which Notes and obligations are secured in substantial
part by the Lease. Capitalized terms not otherwise defined herein shall have the
meanings set forth in the Note Agreement.
1. Initial Development.
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A. Landlord will cause Landlord's Improvements depicted on the
Site Plan attached hereto as Exhibit B to be constructed in accordance with the
plans and specifications and construction contracts described on Exhibit C
hereto.
B. Landlord agrees, at Landlord's sole cost and expense, to cause
construction of Landlord's Improvements as follows:
(i) in accordance with Exhibits B and C;
(ii) Landlord shall use all reasonable efforts to cause
Office Completion (as hereinafter defined) of Landlord's Improvements
as soon as reasonably possible but in any event on or before November
1, 1999; and
(iii) Landlord shall cause Final Project Completion (as
hereinafter defined) to occur on or prior to May 30, 2000.
Landlord shall notify Tenant of the anticipated Office Completion and/or Final
Project Completion, as applicable. Tenant shall have the right to enter the
Demised Premises during the
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sixty (60) day period preceding the Office Completion and/or Final Project
Completion for the purpose of installing its equipment and receiving raw
materials and Tenant does hereby agree to assume all risk of loss or damage to
such equipment and raw materials, and to indemnify, defend and hold harmless
Landlord from and against any loss or damage to such equipment and raw materials
and all liability, loss or damage arising from any injury to the property of
Landlord, or its contractors, subcontractors or materialmen, and any death or
personal injury to any person or persons arising out of such installation.
Landlord agrees to cooperate with Tenant at Tenant's expense so that Tenant's
contractors and tradespeople will be permitted to reasonably perform their work
without material interference. Tenant agrees to cooperate with Landlord so that
Landlord's contractors and tradespeople will be permitted to reasonably perform
their work without material interference.
C. "Office Completion" shall mean the municipality having
jurisdiction over the Demised Premises issues a temporary or preliminary
certificate of occupancy permitting Tenant to occupy the office building
component of Landlord's Improvements or takes such other action as may be
customary to permit temporary or preliminary occupancy or use thereof and the
office building component of Landlord's Improvements is otherwise ready for
beneficial use and occupancy by Tenant subject to completion of any Punchlist
Items (as hereinafter defined) by Landlord; Landlord's architect certifies that
the office building component of Landlord's Improvements has been constructed
and completed in a good and workmanlike manner in accordance with the approved
plans and specifications therefor and with this Lease and complies with
applicable laws, ordinances and regulations and is otherwise ready for
beneficial use and occupancy by Tenant subject to completion of any Punchlist
Items by Landlord.
D. "Final Project Completion" shall mean the municipality having
jurisdiction over the Demised Premises issues a final certificate of occupancy
permitting Tenant to occupy all of Landlord's Improvements or takes such other
action as may be customary to permit occupancy or use thereof and all of
Landlord's Improvements are otherwise ready for beneficial use and occupancy by
Tenant subject to completion of any Punchlist Items by Landlord; Landlord's
architect certifies that all of Landlord's Improvements have been constructed
and completed in a good and workmanlike manner in accordance with the approved
plans and specifications therefor and with this Lease and comply with applicable
laws, ordinances and regulations and all of Landlord's Improvements are
otherwise ready for beneficial use and occupancy by Tenant subject to completion
of any Punchlist Items by Landlord; Landlord shall have obtained title insurance
in form satisfactory to mortgagee insuring the completed Demised Premises free
of Liens not permitted by the Operative Agreements.
E. Within thirty (30) days of the Office Completion and/or Final
Project Completion, as applicable, Tenant shall execute and deliver to Landlord
a punchlist (the "Punchlist") of incomplete items (the "Punchlist Items").
Landlord shall use all reasonable efforts to complete the Punchlist Items as
soon as possible after receipt of the Punchlist.
F. Landlord covenants that the Demised Premises (except trade
fixtures, equipment, machinery or any other item constructed or installed by
Tenant) will conform as of the Rent Commencement Date to applicable laws,
regulations, or other governmental orders relating to the
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physical condition of the Demised Premises. Landlord shall be responsible for
procuring building and other permits and licenses necessary for construction of
Landlord's Improvements.
2. Term and Occupancy. The term of this Lease shall commence on
the date hereof (the "Commencement Date"), and shall end on the date which is
the twentieth (20th) anniversary of the Rent Commencement Date (the "Expiration
Date"), unless the term be extended or earlier terminated as provided herein.
3. Rent.
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A. The annual base rental (the "Base Rent") is set forth on the
Schedule of Rents attached hereto as Exhibit D. Base Rent shall be paid monthly,
in arrears, in equal installments, without offset or deduction commencing
December 30, 1999 (the "Rent Commencement Date") and on the 30th day of each
month through the Expiration Date. Until advised in writing to the contrary by
Landlord, Tenant shall pay all Base Rent, Additional Rent and all other amounts
due Landlord hereunder to Xxxxxx Trust and Savings Bank, 000 Xxxx Xxxxxx Xxxxxx,
Xxxxxxx, Xxxxxxxx 00000, Attn: Indenture Trust Division.
B. Tenant at its option, upon notice as provided below may prepay
Base Rent, if in part, then in an amount sufficient to allow Landlord to prepay
the Notes in an aggregate principal amount of $5,000,000 or integral multiples
of $100,000 in excess thereof, together with accrued interest thereon, plus the
Make-Whole Amount.
Notice of prepayment of Base Rent shall be given to Landlord not less
than thirty (30) nor more than sixty (60) days before the date fixed for
prepayment (the "Optional Prepayment Date") and shall be accompanied by
certificate of Tenant certifying as to: (i) the Optional Prepayment Date, (ii)
the aggregate amount to be paid on such Optional Prepayment Date, (iii) the
portion thereof allocable to the prepayment of principal of the Notes by
Landlord, and (iv) the portion thereof allocable to payment of accrued interest
and Make-Whole Amount that Landlord would be required to pay if such prepayment
were made on the date notice is being given hereunder together with the detailed
calculations used in determining the Make-Whole Amount. In addition, promptly
upon becoming able to calculate the portion of the prepayment allocable to
Make-Whole Amount, Tenant shall provide notice to Landlord of its determination
of the amount of such portion. Any notice of prepayment so given, Tenant shall
be obligated to pay Landlord on such Optional Prepayment Date the amount
referred to above. Nothing in this paragraph shall relieve Tenant of its
obligation to pay accrued rent due and payable on any Optional Prepayment Date.
C. Upon any prepayment of Base Rent as provided herein or as
required under the Note Agreement, each installment of rent payable during the
term shall be reduced pro rata.
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4. Use.
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The Demised Premises shall be used and occupied by Tenant as office and
parking space (the "Tenant's Use"). Landlord represents that the Demised
Premises are currently zoned to permit general office and parking use. In
addition, Tenant may use all or any part of the Demised Premises for any lawful
purpose incidental to Tenant's Use then permitted by local zoning ordinances and
the certificate of occupancy provided, however, Tenant may not use or occupy the
Demised Premises, or permit the Demised Premises to be used or occupied in such
a manner as to cause the value or usefulness of the Demised Premises, or any
part thereof, substantially to diminish.
5. Maintenance, Repairs and Replacements. During the term of this
Lease, Tenant shall, at Tenant's sole expense, keep the Demised Premises in good
working order, condition and repair as a first class office complex and in
compliance with all applicable laws and shall perform all maintenance thereof
and all necessary repairs and replacements thereto, interior and exterior,
structural and nonstructural, ordinary and extraordinary, foreseen or
unforeseen, of every nature, kind and description. When used in this paragraph,
"repairs" shall include all necessary replacements, renewals, alterations,
additions and betterments. If Tenant cannot keep the Demised Premises or any
portion thereof in good working order, condition and repair, then Tenant shall
replace the same in a first-class manner. Tenant shall comply with manufacturers
recommended schedules for warranty work. All repairs and replacements made by
Tenant shall be at least equal in quality to the original work and shall be made
by Tenant in accordance with all applicable laws. The necessity for or adequacy
of maintenance, repairs and replacements shall be measured by the standards
which are appropriate for improvements of similar first class office
construction.
6. Alterations.
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A. Tenant shall have the right to make any alterations of and
additions to the Improvements (including alterations arising due to casualty or
condemnation), provided in all cases that no Events of Default exist hereunder
and such alterations shall (a) not reduce the gross square footage of the
Improvements, (b) not adversely affect the structural or systemic soundness of
the Improvements, (c) not adversely affect the fair market value of the Demised
Premises, (d) be undertaken with due diligence in a good and workmanlike fashion
consistent with the first class nature of the Demised Premises, (e) not violate
any law, regulation, restriction or requirements of this Lease, and (f) shall,
in the case of alterations, the estimated cost of which exceeds $1,000,000, be
under the supervision of architects/engineers reasonably satisfactory to
Landlord and any mortgagee pursuant to plans and specifications reasonably
approved by Landlord and any mortgagee. Tenant shall deliver to Landlord "as
built" working drawings of any alteration within sixty (60) days of completion
of construction thereof.
B. The cost of any alteration shall be paid for by Tenant so that
the Demised Premises and all portions thereof shall at all times be free of
liens for labor and materials supplied to the Demised Premises. The work of any
alteration shall be prosecuted with reasonable dispatch. Tenant shall obtain and
maintain, at its sole cost and expense, during the
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performance of such work, worker's compensation insurance covering all persons
employed in connection with the work and with respect to which death or injury
claims could be asserted against Landlord or Tenant or against the Demised
Premises or any interest therein, together with comprehensive general liability
insurance for the mutual benefit of Landlord and Tenant with limits of not less
than Three Million Dollars ($3,000,000) in the event of injury to one person,
Ten Million ($10,000,000) Dollars in respect to any one accident or occurrence,
and Two Million Dollars ($2,000,000) for property damage, and "builder's risk"
insurance on a completed value form or other comparable coverage on the work.
All such insurance shall be in a company or companies authorized to do business
in the state in which the Demised Premises are located and rated A-XIII by A.M.
Best's insurance ratings or other comparable and nationally recognized rating
entity, and all such policies of insurance shall be delivered to Landlord
endorsed "Premium Paid" by the company or agency issuing the same prior to the
start of any such construction.
C. No change, alteration, restoration or new construction shall
be in or connect the Improvements with any property, building or other
improvement located outside the boundaries of the Land, nor shall the same
obstruct or interfere with any existing easement.
D. Tenant shall notify Landlord in writing 30 days prior to
commencing any alterations, additions or improvements to the Demised Premises
which have been approved by Landlord so that Landlord shall have the right to
record and post notices of nonresponsibility on the Demised Premises.
E. All improvements and alterations made or installed by Tenant
shall immediately, upon completion or installation thereof, become the property
of Landlord without payment therefor by Landlord, and shall be surrendered to
Landlord on the expiration of the term of this Lease.
7. Signs. Tenant may install, at its expense, signs containing
Tenant's name at the Demised Premises, provided that such signs (a) do not cause
any structural or other damage to the Demised Premises; (b) do not violate
applicable governmental laws, ordinances, rules or regulations; (c) do not
violate any existing restrictions affecting the Demised Premises; and (d) are
compatible with the architecture of the Demised Premises and the landscaped
areas.
8. Utilities and Services.
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A. Tenant shall contract for and pay directly for the cost of
usage of all utilities including all charges for water, heat, gas, light,
garbage, electricity, telephone, data, sewage, steam, power or other public or
private utility services. In the event that any charge or fee is required by the
state in which the Demised Premises are located, or any city or other agency,
subdivision, or instrumentality thereof, or by any utility company furnishing
services or utilities to the Demised Premises, as a condition precedent to
furnishing or continuing to furnish utilities or services to the Demised
Premises, such charge or fee shall be deemed to be a utility charge payable by
Tenant.
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B. Tenant acknowledges that any one or more of the services
provided for herein may be interrupted or suspended by reason of accident,
repair, alterations or improvements necessary to be made, strike, lockout,
misuse or neglect by Tenant or Tenant's agents, employees or invitees, or by
shortages of fuel or other energy supplies to be provided by public or private
utilities or suppliers or by other matters, and Landlord shall not be liable to
Tenant therefor, nor shall Tenant have any right to terminate the Lease or other
rights (including but not limited to any reduction or abatement of rent) against
Landlord in the event of a failure, interruption or suspension of any of the
aforesaid services.
9. Compliance with Law. Tenant shall throughout the term of this
Lease, at Tenant's sole cost and expense, comply with or remove or cure any
violation of any applicable laws, orders, statutes, ordinances, rules,
regulations and requirements of federal, state and municipal governments,
including, without limitation, any applicable laws, orders, statutes,
ordinances, rules, regulations and requirements of any federal, state or local
government relating to occupational safety and health (collectively, the "OSHA
Regulations"), all applicable rules and regulations of the Board of Fire
Underwriters and any requirements of the certificate of occupancy or any permit
with respect to the Demised Premises and the sidewalks, curbs, roadways, alleys,
entrances or railroad track facilities, if any, adjacent or appurtenant thereto,
and whether the compliance, curing or removal of any such violation and the
costs and expenses necessitated thereby shall have been foreseen or unforeseen,
ordinary or extraordinary, and whether or not the same shall be presently within
the contemplation of Landlord or Tenant or shall involve any change of
governmental policy, or require structural or extraordinary repairs, alterations
or additions by Tenant and irrespective of the costs thereof. Tenant, at its
sole cost and expense, shall comply with all agreements, contracts, easements,
restrictions, reservations or covenants, if any, affecting the Demised Premises
or hereafter created by, consented to, or requested by Tenant or Landlord.
Tenant shall also comply with, observe and perform all provisions and
requirements of all policies of insurance at any time in force with respect to
the Demised Premises and shall comply with all development permits issued by
governmental authorities issued in connection with development of the Demised
Premises. Tenant shall procure and maintain all permits and licenses required
for the transaction of Tenant's business at the Demised Premises.
10. Landlord's Title, Authority and Quiet Enjoyment; Tenant's
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Authority.
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A. Landlord represents and warrants that it has good and
marketable fee simple title to the Demised Premises, subject to the exceptions
to title currently encumbering the Demised Premises, and any additional
exceptions to title created in connection with Landlord's development or
financing of the Demised Premises.
B. Landlord represents and warrants that it has full and complete
authority to enter into this Lease, and so long as Tenant performs each and
every term, provision and condition herein contained on the part of Tenant to be
kept and performed, Tenant shall peacefully and quietly enjoy the Demised
Premises without hindrance or molestation by Landlord or by any other person
claiming by, through or under Landlord, subject to the terms of the Lease.
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C. Tenant represents and warrants that it has full and complete
authority to enter into this Lease under all of the terms, conditions and
provisions set forth herein.
D. Tenant hereby approves the condition of Landlord's title to
the Demised Premises. This Lease shall be subject to all easements, covenants,
conditions and restrictions presently existing or hereafter created upon the
Demised Premises; provided, however, Landlord shall not permit or cause any
easements, covenants, restrictions, conditions or other changes in Landlord's
title which would materially and adversely impact Tenant's Use.
11. Subordination. The priority of this Lease and the leasehold
estate of Tenant created hereunder are and shall be subject and subordinate to
the lien of any mortgage, deed of trust, sale-leaseback, ground lease or similar
encumbrance, whether such encumbrance is placed against the fee or leasehold
estate, affecting the Demised Premises and to all renewals, modifications,
consolidations, replacements and extensions thereof, and advances thereunder.
Tenant agrees at any time hereafter, upon demand, to execute and deliver any
instruments, releases or other documents that may reasonably be required for the
purpose of subjecting and subordinating this Lease, as above provided, to the
lien of any such mortgage, deed of trust, ground lease, sale-leaseback or
similar encumbrance in a form reasonably acceptable to Tenant and the holder of
such mortgage or instrument.
12. Assignment and Sublease. Provided there are no Events of
Defaults hereunder or under the Note Agreement, as defined herein and therein,
Tenant may assign this Lease or sublease all or any portion of the Demised
Premises subject to the terms hereof.
Tenant shall not assign this Lease without the exclusive prior written
consent of Landlord and any mortgagee. Notwithstanding the foregoing, Tenant may
assign this Lease to any person which is a successor to Tenant as permitted by
the terms of the Note Agreement.
If this Lease is assigned, Lessor may collect Base Rent and Additional
Rent directly from such assignee. If any part of the Demised Premises is sublet
and any Event of Default exists hereunder, Landlord may collect Base Rent and
Additional Rent from such subtenant.
Any assignment or sublease shall require the assignee or subtenant to
comply with all terms of this Lease except for any sublease term, which shall be
at Tenant's discretion (but in no event extend beyond the term of this Lease),
and a duplicate original of such sublease or assignment shall be delivered to
Landlord at least ten (10) days prior to the commencement of such sublease or
assignment.
Any assignee shall assume, by instrument in form and content
satisfactory to Landlord, the due performance of all of Tenant's obligations
under this Lease, including any accrued obligations at the time of the effective
date of the assignment, and such assumption agreement shall state that the same
is made by the assignee for the express benefit of Landlord as a third party
beneficiary thereof.
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Each sublease permitted hereby shall be subject and subordinate to all
of the terms, covenants and conditions of this Lease and to all of the rights of
Landlord hereunder; and in the event this Lease shall terminate before the
expiration of such sublease, the sublessee thereunder will, at Landlord's
option, attorn to Landlord and waive any rights the sublessee may have to
terminate the sublease or to surrender possession thereunder, as a result of the
termination of this Lease. No sublease shall be permitted hereby unless as a
condition to effectiveness thereof, Tenant shall have assigned to Landlord and
Landlord shall have effectively assigned to mortgagee such sublease.
Tenant agrees to pay on behalf of Landlord any and all costs of
Landlord or otherwise occasioned by such assignment or subletting, including
without limitation, the cost of any alteration, addition, improvement or other
renovation or refurbishment to the Demised Premises made in connection with such
assignment or subletting and any cost imposed by any governmental authority in
connection with any of the foregoing.
No assignment or sublease shall be made unless any guarantor of the
Tenant's obligations or any party responsible for Tenant's obligations shall
give its written consent to such assignment or sublease and confirm that its
obligations shall not be affected by such assignment or sublease, and, provided,
further, that if any modification to the Lease is proposed to be made after such
assignment or sublease, then, at Landlord's or mortgagee's option, all prior
assignors and sublessors, and all such obligated parties, shall be required to
confirm in writing their approval of such modification, and that their
obligations continue as to the Lease as so modified.
No assignment or subletting under this paragraph shall relieve Tenant
(or any guarantor of Tenant's obligations under the Lease or any assignee) of
its obligations hereunder. Any assignment or subletting of this Lease which is
not in compliance with the provisions of this paragraph shall be of no effect
and void. Except as permitted hereby, Tenant shall not transfer, sublet, assign
or otherwise encumber its interest in the Lease or the Demised Premises.
Notwithstanding anything contained in this Lease to the contrary and
notwithstanding any consent by Landlord to any sublease of the Demised Premises,
or any portion thereof, or to any assignment of this Lease or of Tenant's
interest or estate in the Demised Premises, no sublessee shall assign its
sublease nor further sublease the Demised Premises, or any portion thereof, and
no assignee shall further assign or sublet its interest in this Lease or its
interest or estate in the Demised Premises, or any portion thereof, without
Landlord's prior written consent in each and every instance which consent may be
withheld or delayed as above provided. No such further assignment or subleasing
shall relieve Tenant from any of Tenant's obligations in this Lease contained.
13. Lease Extension. If this Lease shall not have been terminated
pursuant to any provisions hereof and no Events of Default exist hereunder or
under the Note Agreement, then Tenant may, at Tenant's option, extend the term
of this Lease for two (2) successive additional terms of five (5) years each
(each an "Extension Term," collectively the "Extension Terms") commencing on the
expiration of the original term, or the immediately preceding Extension Term, as
the case may be. Tenant may exercise such option by giving Landlord written
notice at
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least six (6) months prior to the expiration of the original term or the
immediately preceding Extension Term, as the case may be. Upon the giving by
Tenant to Landlord of such written notice and the compliance by Tenant with the
foregoing provisions of this paragraph, this Lease shall be deemed to be
automatically extended upon all the covenants, agreements, terms, provisions and
conditions set forth in this Lease, except that Base Rent for each such
Extension Term shall be the then fair market value for the Demised Premises.
14. Impositions.
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A. Tenant covenants and agrees to pay during the term of this
Lease, as Additional Rent, before any fine, penalty, interest or cost may be
added thereto for the nonpayment thereof, all real estate taxes, special
assessments, water rates and charges, sewer rates and charges, including any sum
or sums payable for present or future sewer or water, charges for public
utilities, street lighting, excise levies, licenses, permits, inspection fees,
other governmental charges, and all other charges or burdens of whatsoever kind
and nature (including costs, fees, and expenses of complying with any
restrictive covenants or similar agreements to which the Demised Premises are
now or hereafter subject) incurred in the use, occupancy, ownership, operation,
leasing or possession of the Demised Premises, without particularizing by any
known name or by whatever name hereafter called, and whether any of the
foregoing be general or special, ordinary or extraordinary, foreseen or
unforeseen (all of which are sometimes herein referred to as "Impositions"),
which at any time during the term may have been or may be assessed, levied,
confirmed, imposed upon, or become a lien on the Demised Premises, or any
portion thereof, or any appurtenance thereto, rents or income therefrom, and
such easements or rights as may now or hereafter be appurtenant or appertain to
the use of the Demised Premises.
B. If, at any time during the term of this Lease, any method of
taxation shall be such that there shall be levied, assessed or imposed on
Landlord, or on the Basic Rent or Additional Rent, or on the Demised Premises or
on the value of the Demised Premises, or any portion thereof, a capital levy,
sales or use tax, gross receipts tax or other tax on the rents received
therefrom, or a franchise tax, or an assessment, levy or charge measured by or
based in whole or in part upon such rents or value, Tenant covenants to pay and
discharge the same, it being the intention of the parties hereto that the rent
to be paid hereunder shall be paid to Landlord absolutely net without deduction
or charge of any nature whatsoever foreseeable or unforeseeable, ordinary or
extraordinary, or of any nature, kind or description, except as in this Lease
otherwise expressly provided. Nothing in this Lease contained shall require
Tenant to pay any municipal, state or federal net income or excess profits taxes
assessed against Landlord, or any municipal, state or federal capital levy,
estate succession, inheritance or transfer taxes of Landlord.
C. Tenant covenants to furnish Landlord, on or before the date
upon which any Imposition or other tax, assessment, levy or charge is due and
payable, official receipts of the appropriate taxing authority, or other
appropriate proof satisfactory to Landlord, evidencing the payment of the same.
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D. Tenant shall have the right at its own expense to contest the
amount or validity, in whole or in part, of any Imposition by appropriate
proceedings diligently conducted in good faith, but only after payment of such
Imposition, unless such payment, or a payment thereof under protest, would
operate as a bar to such contest or interfere materially with the prosecution
thereof, in which event, notwithstanding the provisions hereof, Tenant may
postpone or defer payment of such Imposition if the Demised Premises or any
portion thereof would, by reason of such postponement or deferment, be in danger
of being forfeited or lost. Upon the termination of any such proceedings, Tenant
shall pay the amount of such Imposition or part thereof, if any, as finally
determined in such proceedings, the payment of which may have been deferred
during the prosecution of such proceedings, together with any costs, fees,
including attorney's fees, interest, penalties, fines and other liability in
connection therewith. Tenant shall be entitled to the refund of any Imposition,
penalty, fine and interest thereon received by Landlord which have been paid by
Tenant or which have been paid by Landlord but for which Landlord has been
previously reimbursed in full by Tenant. Landlord shall not be required to join
in any proceedings referred to in this paragraph unless the provisions of any
law, rule or regulation at the time in effect shall require that such
proceedings be brought by or in the name of Landlord, in which event Landlord
shall join in such proceedings or permit the same to be brought in Landlord's
name upon compliance with such conditions as Landlord may reasonably require.
Landlord shall not ultimately be subject to any liability for the payment of any
fees, including attorney's fees, costs and expenses in connection with such
proceedings. Tenant agrees to pay all such fees (including reasonable attorney's
fees), costs and expenses or, on demand, to make reimbursement to Landlord for
such payment.
15. Insurance.
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A. During the term of this Lease, during any extension thereof,
and during any holdover period, Tenant shall at its cost and expense procure and
keep in force a policy of comprehensive public liability insurance, with limits
of not less than $5,000,000 for injury to any one person, $25,000,000 as to any
one accident, and $3,000,000 as to property damage, all on a per occurrence
basis which policy shall name Landlord and Landlord's mortgagee, if any, as
additional insureds. Certified copies of such insurance shall be delivered to
Landlord prior to the Commencement Date and shall provide that same may not be
canceled, modified or lowered in amounts without prior written notice of not
less than thirty (30) days to Landlord and Landlord's mortgagee. Notwithstanding
the foregoing, Tenant may insure the foregoing risks under its blanket policy.
Any such liability insurance shall contain a contractual liability endorsement
covering Tenant's indemnification obligations under this Lease.
B. During the term of this Lease and any extension thereof,
Tenant, at its sole cost and expense, shall obtain and continuously maintain in
full force and effect, policies of insurance covering the Improvements
constructed, installed or located on the Demised Premises naming the Landlord,
as an additional insured and loss payee and Landlord's mortgagee, if any, as
mortgagee, against (a) loss or damage by fire; (b) loss or damage from such
other risks or hazards now or hereafter embraced by an "Extended Coverage
Endorsement," or broadest form of "all risk" coverage including, but not limited
to, windstorm, hail, explosion, vandalism, riot and civil commotion, damage from
vehicles, smoke damage, water damage and debris removal; (c) loss
11
for flood; (d) loss from so-called explosion, collapse and underground hazards;
and (e) loss or damage from such other risks or hazards of a similar or
dissimilar nature which are now or may hereafter be customarily insured against
with respect to improvements similar in construction, design, general location,
use and occupancy to the Improvements. At all times, such insurance coverage
shall be in an amount equal to 100% of the then "full replacement cost" of the
Improvements. "Full Replacement Cost" shall be interpreted to mean the cost of
replacing the improvements without deduction for depreciation or wear and tear,
and it shall include a reasonable sum for architectural, engineering, legal,
administrative and supervisory fees connected with the restoration or
replacement of the Improvements in the event of damage thereto or destruction
thereof. If a sprinkler system shall be located in the Improvements, sprinkler
leakage insurance shall be procured and continuously maintained by Tenant at
Tenant's sole cost and expense. Tenant shall cause to be inserted in the policy
of insurance required by this paragraph a so-called "waiver of subrogation"
clause as to Landlord and Landlord's insurer.
C. During the term of this Lease and any extension thereof,
Tenant shall maintain Xxxxxxx'x Compensation Insurance in accordance with the
laws of the State of Illinois.
D. Tenant shall maintain insurance coverage (including loss of
use and business interruption coverage) upon Tenant's business and upon all
personal property of Tenant or the personal property of others kept, stored or
maintained on the Demised Premises against loss or damage by fire, windstorm or
other casualties or causes for such amount as Tenant may desire, and Tenant
agrees that such policies shall contain a waiver of subrogation clause as to
Landlord and Landlord's insurer.
Nothing in this paragraph shall prevent Tenant from taking out
insurance of the kind and in the amount provided for under the preceding
paragraphs of this paragraph under a blanket insurance policy or policies
(certified copies thereof reasonably satisfactory to Landlord shall be delivered
to Landlord) which may cover other properties owned or operated by Tenant as
well as the Demised Premises; provided, however, that any such policy of blanket
insurance of the kind provided for shall specify therein the amounts thereof
exclusively allocated to the Demised Premises or Tenant shall furnish Landlord
and the holder of any fee mortgage with a written statement from the insurers
under such policies specifying the amounts of the total insurance exclusively
allocated to the Demised Premises; and provided, further, however, that such
policies of blanket insurance shall, as respects the Demised Premises, contain
the various provisions required of such an insurance policy by the foregoing
provisions hereof.
E. Tenant shall deliver certified copies of all such insurance to
Landlord prior to the Commencement Date hereof and certified copies and evidence
of payment for all renewal coverage not less than ten (10) days prior to the
expiration of any such insurance. Such policies shall provide (except in case of
general liability insurance) for losses up to $1,000,000 to be adjusted by and
paid to Tenant and losses equal to or in excess of $1,000,000 shall be adjusted
by Tenant subject to the reasonable approval of Landlord and any mortgagee, and,
while the Notes are outstanding, paid to the Agent.
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F. Tenant hereby releases Landlord (and Landlord's assignees,
employees, agents and servants) and waives any claims it may have against
Landlord from any liability for damage to or destruction of Tenant's trade
fixtures, personal property (including also property under the care, custody, or
control of Tenant), machinery, equipment, furniture, fixtures and business
interests on the Premises, except arising from Landlord's gross negligence. This
paragraph shall apply especially, but not exclusively, to damage or destruction
caused by the flooding of basements or other subsurface areas, or by
refrigerators, sprinkling devices, air conditioning apparatus, water, snow,
frost, steam, excessive heat or cold, falling plaster, broken glass, sewage,
gas, odors or noise, or the bursting or leaking of pipes or plumbing fixtures,
and shall apply equally, whether any such damage results from the act or
omission of other tenants or occupants in the Premises or any other persons, and
whether such damage be caused by or result from any of the aforesaid, or shall
be caused by or result from other, circumstances of a similar or dissimilar
nature.
16. Destruction and Restoration.
---------------------------
A. Tenant covenants and agrees that in case of damage to or
destruction of the Demised Premises after the Commencement Date of the term of
this Lease, by fire or otherwise, Tenant, at its sole cost and expense, shall
promptly restore, repair, replace and rebuild the same as nearly as possible to
the condition that the same were in immediately prior to such damage or
destruction with such changes or alterations (made in conformity with paragraph
6 hereof) as may be reasonably acceptable to Landlord or required by law. Tenant
shall forthwith give Landlord written notice of such damage or destruction upon
the occurrence thereof and specify in such notice, in reasonable detail, the
extent thereof. Such restoration, repairs, replacements, rebuilding, changes and
alterations, including the cost of temporary repairs for the protection of the
Demised Premises, or any portion thereof, pending completion thereof are
sometimes hereinafter referred to as the "Restoration." The Restoration shall be
carried on and completed in accordance with the provisions and conditions of
this Lease including but not limited to paragraphs 5, 6, 9, and 16 hereof.
Tenant shall, at Tenant's expense, regardless of whether there are sufficient
insurance proceeds therefor, promptly commence and complete with all due
diligence the Restoration to as nearly as possible the condition which existed
prior to such damage or destruction.
B. All insurance moneys held by Agent, shall be applied to the
payment of the costs of the Restoration and shall be paid out from time to time
as the Restoration progresses upon the written request of Tenant, accompanied by
a certificate of the architect or a qualified professional engineer in charge of
the Restoration stating that as of the date of such certificate (a) the sum
requested is justly due to the contractors, subcontractors, materialmen,
laborers, engineers, architects, or persons, firms or corporations furnishing or
supplying work, labor, services or materials for such Restoration, or is justly
required to reimburse Tenant for any expenditures made by Tenant in connection
with such Restoration, and when added to all sums previously paid out by
Landlord does not exceed the value of the Restoration performed to the date of
such certificate by all of said parties; (b) except for the amount, if any,
stated in such certificates to be due for work, labor, services or materials,
there is no outstanding indebtedness known to the person signing such
certificate, after due inquiry, which is then due for work, labor, services or
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materials in connection with such Restoration, which, if unpaid, might become
the basis of a mechanic's lien or similar lien with respect to the Restoration
or a lien upon the Demised Premises, or any portion thereof; and (c) the costs,
as estimated by the person signing such certificate, of the completion of the
Restoration required to be done subsequent to the date of such certificate in
order to complete the Restoration do not exceed the sum of the remaining
insurance moneys, remaining in the hands of Landlord or Agent, if applicable,
after payment of the sum requested in such certificate.
As a condition to payment, Tenant shall furnish Landlord or Agent, if
applicable, at the time of any such payment with evidence reasonably
satisfactory to Landlord or Agent, if applicable, that there are no unpaid bills
in respect to any work, labor, services or materials performed, furnished or
supplied in connection with such Restoration. If the insurance moneys in the
hands of Landlord, shall be insufficient to pay the entire costs of the
Restoration, Tenant agrees to pay any deficiency promptly. Tenant shall continue
to be liable for full payment of Base Rent, Additional Rent and any other
amounts due and payable hereunder. Upon completion of the Restoration and
payment in full thereof by Tenant, Landlord or Agent, if applicable, shall
within a reasonable period of time thereafter, turn over to Tenant all insurance
moneys or other moneys then remaining upon submission of proof reasonably
satisfactory to Landlord or Agent, if applicable, that the Restoration has been
paid for in full and the damaged or destroyed Improvements repaired, restored or
rebuilt as nearly as possible to the condition they were in immediately prior to
such damage or destruction, or with such changes or alterations as may be made
in conformity with the terms hereof.
C. No destruction of or damage to the Demised Premises, or any
portion thereof, by fire, casualty or otherwise shall permit Tenant to surrender
this Lease or shall relieve Tenant from its liability to pay to Landlord the
Base Rent and Additional Rent payable under this Lease or from any of its other
obligations under this Lease, and Tenant waives any rights now or hereafter
conferred upon Tenant by present or future law or otherwise to quit or surrender
this Lease or the Demised Premises, or any portion thereof, to Landlord or to
any suspension, diminution, abatement or reduction of rent on account of any
such damage or destruction.
17. Condemnation.
------------
A. If, during the term of this Lease, the entire Demised Premises
shall be taken as the result of the exercise of the power of eminent domain,
condemnation or a deed in lieu of the foregoing (a "Taking"), this Lease and all
right, title and interest of Tenant hereunder shall cease and come to an end on
the date of vesting of title pursuant to such Taking and Landlord shall be
entitled to and shall receive the total award made in such Taking, Tenant hereby
assigning any interest in such award, damages, consequential damages and
compensation to Landlord and Tenant hereby waiving any right Tenant has now or
may have under present or future law to receive any separate award of damages
for its interest in the Demised Premises, or any portion thereof, or its
interest in this Lease.
In any Taking of the Demised Premises, or any portion thereof, whether
or not this Lease is terminated as in this paragraph provided, Tenant shall not
be entitled to any portion of the
14
award for the Taking of the Demised Premises or damage to the Improvements,
except as otherwise provided herein with respect to the restoration of the
Improvements, or for the estate or interest of Tenant therein, all such award,
damages, consequential damages and compensation being hereby assigned to
Landlord, and Tenant hereby waives any right it now has or may have under
present or future law to receive any separate award of damages for its interest
in the Demised Premises, or any portion thereof, or its interest in this Lease,
except that Tenant shall have, nevertheless, the limited right to prove in the
Taking and to receive any award which may be made for damages to or condemnation
of Tenant's movable trade fixtures and equipment, and for Tenant's relocation
costs in connection therewith.
B. If, less than the entire Demised Premises, but more than 15%
of the floor area of the Improvements, or more than 50% of the Land, shall be
taken in any such Taking, this Lease shall, upon vesting of title in the Taking,
terminate as to the portion of the Demised Premises so taken, and Tenant may, at
its option, terminate this Lease as to the remainder of the Demised Premises.
Tenant shall not have the right to terminate this Lease pursuant to the
preceding sentence unless (a) the business of Tenant conducted in the portion of
the Demised Premises taken cannot reasonably be carried on with substantially
the same utility and efficiency in the remainder of the Demised Premises (or any
substitute space securable by Tenant pursuant to clause [b] hereof) and (b)
Tenant cannot construct or secure substantially similar space to the space so
taken, on the Demised Premises. Such termination as to the remainder of the
Demised Premises shall be effected by notice in writing given not more than 60
days after the date of vesting of title in such Taking, and shall specify a date
not more than 60 days after the giving of such notice as the date for such
termination. Upon the date specified in such notice, the term of this Lease, and
all right, title and interest of Tenant hereunder, shall cease and come to an
end. If this Lease is terminated as in this paragraph 17B provided, Landlord
shall be entitled to and shall receive the total award made in such Taking,
Tenant hereby assigning any interest in such award, damages, consequential
damages and compensation to Landlord, and Tenant hereby waiving any right Tenant
has now or may have under present or future law to receive any separate award of
damages for its interest in the Demised Premises, or any portion thereof, or its
interest in this Lease except as otherwise provided in paragraph 17A. The right
of Tenant to terminate this Lease, as provided in this paragraph 17B, shall be
exercisable only upon condition that no Event of Default exist hereunder or
under the Note Agreement, and such termination upon Tenant's part shall become
effective only upon compliance by Tenant with all such terms, covenants and
conditions to the date of such termination. In the event that Tenant elects not
to terminate this Lease as to the remainder of the Demised Premises, the rights
and obligations of Landlord and Tenant shall be governed by the provisions of
paragraph 17C hereof.
C. If 15%, or less, of the floor area of the Improvements, or
50%, or less, of the Land, shall be taken in such Taking, or if more than 15% of
the floor area of the Improvements or more than 50% of the Land is taken (but
less than the entire Demised Premises), and this Lease is not terminated as in
paragraph 17B hereof provided, this Lease shall, upon vesting of title in the
Taking, terminate as to the parts so taken, and Tenant shall have no claim or
interest in the award, damages, consequential damages and compensation, or any
part thereof except as otherwise provided in paragraph 17A. Landlord shall be
entitled to and shall receive the total award made in such Taking, Tenant hereby
assigning any interest in such award, damages,
15
consequential damages and compensation to Landlord, and Tenant hereby waiving
any right Tenant has now or may have under present or future law to receive any
separate award of damages for its interest in the Demised Premises, or any
portion thereof, or its interest in this Lease except as otherwise provided in
paragraph 17A. The net amount of the award (after deduction of all costs and
expenses, including attorney's fees), shall be held by Landlord as trustee or so
long as the Notes remain outstanding, by Agent and applied as hereinafter
provided. Tenant, in such case, covenants and agrees, at Tenant's sole cost and
expense (subject to reimbursement to the extent hereinafter provided), promptly
to restore that portion of the Improvements on the Demised Premises not so taken
to a complete architectural and mechanical unit for the use and occupancy of
Tenant as in this Lease provided. In the event that the net amount of the award
(after deduction of all costs and expenses, including attorney's fees) is
insufficient to pay all costs of such restoration work, Tenant shall deposit
with Landlord as trustee such additional sums as may be required upon the
written request of Landlord so long as Tenant has participated in the
Proceedings; provided, however, Landlord shall retain ultimate control over any
final settlement or litigation with the condemning authority, and provided
further that notwithstanding that the net amount of the award may be
insufficient to pay all costs of the restoration work, Tenant shall continue to
be liable for payment of Base Rent, Additional Rent and any other amount due and
payable hereunder, which amounts shall not be abated except as provided in
Paragraph 17E below. The provisions and conditions in paragraph 6 applicable to
changes and alterations shall apply to Tenant's obligations to restore that
portion of the Improvements to a complete architectural and mechanical unit.
Landlord agrees in connection with such restoration work to apply so much of the
net amount of any award (after deduction of all costs and expenses, including
attorney's fees) that may be received by Landlord and held by Landlord as
trustee in any such Proceedings for physical damage to the Improvements as a
result of such taking to the costs of such restoration work thereof and the said
net award for physical damage to the Improvements as a result of such taking
shall be paid out from time to time to Tenant, or on behalf of Tenant, as such
restoration work progresses upon the written request of Tenant, which shall be
accompanied by a certificate of the architect or the registered professional
engineer in charge of the restoration work stating that (a) the sum requested is
justly due to the contractors, subcontractors, materialmen, laborers, engineers,
architects or other persons, firms or corporations furnishing or supplying work,
labor, services or materials for such restoration work or as is justly required
to reimburse Tenant for expenditures made by Tenant in connection with such
restoration work, and when added to all sums previously paid out by Landlord as
trustee does not exceed the value of the restoration work performed to the date
of such certificate; and (b) the net amount of any such award for physical
damage to the Improvements as a result of such taking remaining in the hands of
Landlord, together with the sums, if any, deposited by Tenant with Landlord as
trustee pursuant to the provisions hereof, will be sufficient upon the
completion of such restoration work to pay for the same in full. If payment of
the award for physical damage to the Improvements as a result of such taking, as
aforesaid, shall not be received by Landlord in time to permit payments as the
restoration work progresses (except in the event of an appeal of the award by
Landlord), Tenant shall not be required to proceed with any restoration work
until payment of such award is received by Landlord; provided, however, delay in
payment of such amount shall not release Tenant of its obligation to pay Base
Rent, Additional Rent and other amounts due and payable hereunder during any
such delay and there shall be no abatement of Base Rent, Additional Rent or any
other amounts except as provided in Paragraph
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17E below. If Landlord appeals an award and payment of the award is delayed
pending appeal, Tenant shall, nevertheless, perform and fully pay for such work
without delay, and payment of the amount to which Tenant would have been
entitled had Landlord not appealed the award (in an amount not to exceed the net
award prior to such appeal) shall be made by Landlord to Tenant as restoration
progresses pursuant to this Paragraph 17C, in which event Landlord shall be
entitled to retain an amount equal to the sum disbursed to Tenant pursuant to
the preceding sentence out of the net award as and when payment of such award is
received by Landlord. Tenant shall also furnish Landlord as trustee with each
certificate hereinabove referred to, together with evidence reasonably
satisfactory to Landlord that there are no unpaid bills in respect to any work,
labor, services or materials performed, furnished or supplied, or claimed to
have been performed, furnished or supplied, in connection with such restoration
work, and that no liens have been filed against the Demised Premises, or any
portion thereof. Landlord as trustee shall not be required to pay out any funds
when there are unpaid bills for work, labor, services or materials performed,
furnished or supplied in connection with such restoration work, or where a lien
for work, labor, services or materials performed, furnished or supplied has been
placed against the Demised Premises, or any portion thereof. Upon completion of
the restoration work and payment in full therefor by Tenant, and upon submission
of proof reasonably satisfactory to Landlord that the restoration work has been
paid for in full and that the Improvements have been restored or rebuilt to a
complete architectural and mechanical unit for the use and occupancy of Tenant
as provided in this Lease, Landlord as trustee shall pay over to Tenant any
portion of the cash deposit furnished by Tenant then remaining; provided,
however, any other amounts awarded in such Proceedings which remain following
restoration of the Demised Premises shall be the property of Landlord and Tenant
shall have no claim thereto.
D. In the event of any partial termination of this Lease as a
result of any such Taking, Tenant shall pay to Landlord all Base Rent and all
Additional Rent and other charges payable hereunder with respect to that portion
of the Demised Premises so taken in such Taking with respect to which this Lease
shall have terminated justly apportioned to the date of such termination. From
and after the date of vesting of title in such Taking, Tenant shall continue to
pay the Base Rent and Additional Rent and other charges payable hereunder, as in
this Lease provided, to be paid by Tenant, subject to abatement, if any, as
provided for in paragraph 17E hereof.
E. In the event of a partial taking of the Demised Premises under
paragraph 17C hereof, or a partial taking of the Demised Premises under
paragraph 17B hereof, followed by Tenant's election not to terminate this Lease,
the Base Rent payable hereunder during the period from and after the date of
vesting of title in such Taking to the termination of this Lease shall not be
reduced unless Tenant shall have completed the restoration work with its own
funds in accordance with the provisions of the Lease and Landlord shall have
applied the net amount of any award to reduce the indebtedness secured by any
financing encumbering the Demised Premises, in which event Base Rent payable
hereunder shall be reduced pro rata.
F. THE PARTIES HERETO HEREBY ACKNOWLEDGE AND AGREE THAT
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS LEASE IT IS THE INTENT OF THE
PARTIES THAT IF AS A RESULT OF ANY TAKING THERE IS
17
ANY REDEMPTION OR OTHER REPAYMENT OF THE NOTES AND THE PROCEEDS RECEIVED FROM
SUCH TAKING ARE INSUFFICIENT TO PAY IN FULL ANY PRINCIPAL, INTEREST OR
MAKE-WHOLE AMOUNT, IF ANY, DUE AND PAYABLE ON THE NOTES ON ACCOUNT OF THE
TAKING, THAT THE TENANT SHALL, UPON DEMAND, PAY THE AMOUNT OF SUCH
INSUFFICIENCY.
18. Default by Tenant. The occurrence of any one or more of the
following events shall constitute an "Event of Default" by Tenant:
A. The failure by Tenant to make any payment of Base Rent,
Additional Rent or any other amount required to be paid by Tenant hereunder, and
any interest for late payment thereof, as and when due, where such failure shall
continue for a period of five (5) days.
B. The failure by Tenant to observe or perform any of the
covenants, conditions or provisions of paragraphs 12 or 15.
C. The failure by Tenant to observe or perform any of the
covenants, conditions or provisions of this Lease (except as set forth in
paragraphs 18A and 18B above) where such failure shall continue for a period of
thirty (30) days after Tenant obtains knowledge of such failure or default.
D. The occurrence of an Event of Default under Section 11 of the
Note Agreement.
19. Landlord's Remedies. Upon the occurrence of an Event of
Default, Landlord, in addition to other rights or remedies it may have, shall
have the right to terminate this Lease, or without terminating this Lease,
terminate Tenant's right to possession of the Demised Premises, and in either
event Tenant shall immediately surrender possession of the Demised Premises to
Landlord and if Tenant fails to do so, Landlord may, without prejudice to any
other remedy it may have for possession or arrearage of rentals, enter upon and
take possession of the Demised Premises and expel or remove Tenant and any other
person who may be occupying the Demised Premises or any part thereof, with or
without legal proceedings, without being liable for prosecution or any claim or
damage therefor. In such event, Landlord shall be entitled to recover from
Tenant all reasonable damages incurred by Landlord by reason of such Event of
Default, including without limitation, the cost of recovering possession of the
Demised Premises, expenses of reletting including reasonable renovation and
alteration of the Demised Premises, attorneys, fees, real estate commissions,
and any other sum of money, late charges and damages.
If Tenant's right to possession of the Demised Premises is terminated
without termination of the Lease, Landlord shall be entitled to enforce all of
Landlord's rights and remedies under the Lease, including the right to recover
the rent as it becomes due hereunder. Should Landlord elect to relet the Demised
Premises or any part thereof, Landlord may do so for such term or terms and at
such rental or rentals and upon such other terms and conditions as Landlord may
deem appropriate. Rental and other amounts received by Landlord in connection
with such reletting shall be applied in such manner and to such parties as
Landlord shall determine. Should such rentals and other amounts received from
such reletting during any month be less than Tenant's
18
obligations hereunder, Tenant shall pay such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. No such reentry or taking
possession of the Demised Premises by Landlord shall be construed as an election
on its part to terminate this Lease, unless a written notice of such intention
be given to Tenant or unless the termination thereof be decreed by a court of
competent jurisdiction.
In the event Landlord terminates this Lease in accordance herewith,
Tenant shall be liable and shall pay to Landlord, the sum of all rent and other
payments owed to date to Landlord, all sums owed to date to third parties
(including without limitation, all Impositions) hereunder accrued to the date of
such termination, all amounts required to be spent by Landlord to fulfill any of
Tenant's obligations which Tenant did not fulfill prior to termination by
Landlord, plus, an amount equal to the present value discounted at the Federal
Reserve discount rate of (i) the total rental payments hereunder for the
remaining portion of the term of the Lease, calculated as if such term the
Expiration Date, unless Tenant has extended this Lease, in which case such
calculation shall be as if the term expires on the final day of the Extension
Term then in effect, less (ii) the fair market rental value of the Demised
Premises for such remaining period. Nothing herein contained shall limit or
prejudice the right of Landlord to prove for and obtain, as damages by reason of
such expiration or termination, an amount equal to the maximum allowed by any
statute or rule of law in effect at the time when, and governing the proceedings
in which, such damages are to be proved, whether or not such amount be greater,
equal to or less than the amount of the difference referred to above.
Notwithstanding the foregoing, Landlord and Tenant agree that it is extremely
difficult and impractical to establish the amount of damages Landlord would
sustain upon an Event of Default. The parties hereby agree that a reasonable
estimate of such other amounts necessary to compensate Landlord in such event
and not otherwise included herein is the sum of the principal amount of the
Notes then outstanding plus interest accrued thereon together with the Make
Whole Amount, less the amounts set forth above in this paragraph (the
"Liquidated Damages"). Landlord shall be entitled such Liquidated Damages from
Tenant not as a penalty but as liquidated damages.
In addition to the aforesaid remedies, Landlord shall be entitled to
pursue any other remedy now or hereafter available to Landlord at equity or
under the laws or judicial decisions of the state where the Demised Premises is
located or by statute or otherwise. All rights and remedies of Landlord herein
enumerated shall be cumulative, and the exercise or the commencement of the
exercise by Landlord of any one or more of such rights or remedies should not
preclude the simultaneous or later exercise by Landlord of any or all other
rights or remedies. Tenant shall pay, upon demand, all of Landlord's costs,
including reasonable attorneys' fees and court costs, incident to the
enforcement of Tenant's obligations hereunder. A receipt by Landlord of rent
with knowledge of the breach of any covenant hereof shall not be deemed a waiver
of such breach, and no waiver by Landlord of any provisions of this Lease shall
be deemed to have been made unless expressed in writing and signed by Landlord.
Without limiting the generality of the foregoing, no failure by Landlord to
insist upon the performance of any of the terms of this Lease or to exercise any
right or remedy consequent upon a breach thereof shall constitute a waiver of
such breach or any of the terms of this Lease, and no express waiver shall
affect any default other than the default specified in the express waiver and
that only
19
for the time and to the extent therein stated. One or more waivers by Landlord
shall not be construed as a waiver of a subsequent breach of the same covenant,
term or condition. In addition to other remedies in this Lease provided,
Landlord shall be entitled to seek a restraint by injunction of the violation or
attempted or threatened violation of the covenants, conditions and provisions of
this Lease.
20. Notices. All notices shall be sent by registered mail, return
receipt requested personal delivery, or by recognized overnight courier
providing proof of delivery, to the following addresses:
To Landlord: To Tenant:
Xxxxxx Properties II LLC Xxxxxx Associates LLC
000 Xxxx Xxx Xxxx 000 Xxxx Xxx Xxxx
Xxxxxxxxxxxx, Xxxxxxxx 00000 Xxxxxxxxxxxx, Xxxxxxxx 00000
Attn.: Xxxxxx X. Xxxxxx Attn: Xxxx X. Xxxx
Any notice shall be deemed to have been given five (5) days after the
date deposited in the United States mail, on the date of personal delivery, or
on the first business day after sending when delivery by recognized overnight
courier providing proof of delivery, in the manner aforesaid. Either party, by
notice to the other, shall have the right to change the addresses for notice(s)
to be sent to such party, and to add or substitute entities to which a copy of
any notice shall be sent by the other party.
21. Brokerage. Landlord and Tenant acknowledge that no real estate
broker brought about this lease transaction. Landlord hereby indemnifies Tenant
against claims for brokerage fees, commissions or similar compensation by any
party claiming by, through or under Landlord in connection with this Lease, and
Tenant hereby indemnifies Landlord against claims for brokerage fees,
commissions or similar compensation by any party claiming by, through or under
Tenant in connection with this Lease.
22. Estoppel. Landlord and Tenant shall, at any time upon not less
than twenty (20) days prior written notice, execute and deliver to a prospective
new landlord, lender, or assignee or subtenant of Tenant, as the case may be, a
statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) and the
date to which the rent and other charges are paid in advance, if any, and (ii)
acknowledging that there are not, to the party's knowledge, any uncured defaults
on the part of the other party hereunder, or so specifying such defaults if any
are claimed, and (iii) other reasonable requests that relate to the Lease.
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23. Hazardous Substances.
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A. For purposes hereof, "Hazardous Substance" means:
(i) "Hazardous Substances" as defined by the
Comprehensive Environmental Response, Compensation and Liability Act
("CERCLA"), 42 U.S.C. ss.9601 et. seq., as amended, and all regulations
promulgated thereunder, the Federal Clean Air Act, as amended (42
U.S.C. ss.7401 et. seq.) and the Federal Water Pollution Control Act
("FWPCA"), 33 U.S.C. ss.1317 et. seq. as amended and all regulations
promulgated thereunder;
(ii) "Hazardous Waste" as defined by the Resource
Conservation and Recovery Act ("RCRA"), 42 U.S.C. ss.6602 et. seq. as
amended and all regulations promulgated thereunder;
(iii) Any pollutant or contaminant or hazardous, dangerous
or toxic chemicals, materials or substances within the meaning of any
other applicable federal, state or local law, regulation, ordinance or
requirement (including consent decrees and administrative orders)
relating to or imposing liability or standards of conduct concerning
any hazardous, toxic or dangerous waste, substance or material, all as
amended or hereafter amended;
(iv) Gas, gasoline, oil or other petroleum products;
(v) Any radioactive material, including any source,
special nuclear or by-product material as defined in 42 U.S.C. ss.2011
et. seq. as amended or hereafter amended, and all regulations
promulgated thereunder;
(vi) Asbestos; and
(vii) Anything defined as a hazardous, toxic or radioactive
material, waste or substance or the use, transportation or disposal of
which is regulated under applicable law or rules and regulations issued
pursuant thereof;
(all of the foregoing statutes, laws, ordinance, rules, regulations, and common
law theories being sometimes hereinafter collectively referred to as
"Environmental Laws").
B. Tenant shall not allow any Hazardous Substance to be located
on the Demised Premises and shall not conduct or authorize the generation,
transportation, storage, treatment, release or disposal at the Demised Premises,
of any Hazardous Substance other than in quantities incidental to the conduct of
Tenant's Use and in compliance with Environmental Laws; provided, however,
nothing herein contained shall permit Tenant to allow any so-called "acutely
hazardous", "ultra-hazardous", "imminently hazardous chemical substance or
mixture" or comparable Hazardous Substance to be located on or about the Demised
Premises.
21
C. If the presence, release, threat of release, placement on or
in the Demised Premises, or the generation, transportation, storage, treatment,
or disposal at the Demised Premises of any Hazardous Substances as a result of
Tenant's operations at the Demised Premises: (i) gives rise to liability
(including, but not limited to, a response action, remedial action, or removal
action) under Environmental Laws, (ii) causes or threatens to cause a
significant public health effect, or (iii) pollutes or threatens to pollute the
environment, Tenant shall promptly take any and all remedial and removal action
necessary to clean up the Demised Premises and mitigate exposure to liability
arising from the hazardous substance, whether or not required by law.
D. Tenant shall indemnify, defend and hold Landlord harmless from
all damages, costs, losses, expenses (including, but not limited to, actual
attorneys fees and engineering fees) arising from or attributable to the
existence of any Hazardous Substances at the Demised Premises as a result of
Tenant's operations at the Demised Premises, and (ii) any breach by Tenant of
any of its covenants contained herein.
E. Upon request by Landlord during the term of this Lease, Tenant
shall undertake and submit to Landlord an environmental audit from an
environmental consulting firm reasonably acceptable to Landlord which audit
shall evidence Tenant's compliance herewith. Tenant shall bear the cost of such
environmental audit.
F. Landlord or Tenant shall give the other prompt written notice
upon discovery of any Hazardous Substance at or adjacent to the Demised
Premises. Landlord and Tenant's obligations hereunder shall survive termination
of the Lease.
24. Surrender.
---------
A. Upon any termination or expiration of this Lease, Tenant shall
surrender the Demised Premises in the same condition as existed at the Rent
Commencement Date, except for normal wear and tear and damage caused by the fire
or other casualty subject to the terms of this Lease; provided, however, that
nothing in this paragraph is intended to change or diminish Tenant's obligations
under any other part of this Lease. Any damage to the Demised Premises resulting
from the removal of such Alterations shall be repaired by Tenant at Tenant's
expense. If the Demised Premises be not surrendered as above set forth, Tenant
shall indemnify, defend and hold Landlord harmless against loss or liability
resulting from the delay by Tenant in so surrendering the Demised Premises,
including, without limitation any claim made by any succeeding occupant founded
on such delay.
All property of Tenant not removed on or before the last day of the
term of this Lease shall be deemed abandoned. Tenant shall reimburse Landlord
upon demand for any expenses incurred by Landlord with respect to removal,
storage or disposal of abandoned property and with respect to restoring said
Demised Premises to good order, condition and repair.
25. Liens. Tenant has no authority, express or implied, to create
or place any lien or encumbrance of any kind or nature whatsoever upon, or in
any manner to bind the interest of
22
Landlord or Tenant in the Demised Premises, or to charge the rentals payable
hereunder for any claim in favor of any person dealing with Tenant, including
those who furnish materials or perform labor for any construction or repairs,
and Tenant covenants and agrees that it shall not mortgage, encumber or pledge
this Lease or any interest therein. The preceding sentence shall not be
construed as prohibiting Tenant from making alterations as provided above or
from permitting any other mechanics or materialmen's lienable work to be
performed as long as such work is not prohibited by this Lease. Tenant agrees to
indemnify and hold Landlord harmless from any lien filed against the Demised
Premises on account of work performed by or on behalf of Tenant and from any and
all losses, costs, damages, expenses, liabilities, suits, penalties, claims and
damages (including attorney fees) arising from or relating to such lien. After
Tenant's receipt of notice or actual knowledge of the placing of any lien or
encumbrance against the Demised Premises, Tenant shall immediately give Landlord
written notice thereof. Tenant shall within ten (10) days therefrom remove such
lien by payment.
If Tenant shall fail to discharge such mechanic's lien within such
period, then, in addition to any other right or remedy of Landlord, Landlord
may, but shall not be obligated to, discharge the same by paying to the claimant
the amount claimed to be due by procuring the discharge of such lien as to the
Demised Premises by deposit in the court having jurisdiction of such lien, a
cash sum sufficient to secure the discharge of the same, or by the deposit of a
bond or other security with such court sufficient in form, content and amount to
procure the discharge of such lien, or in such other manner as is now or may in
the future be provided by present or future law or the discharge of such lien as
a lien against the Demised Premises. Any amount paid by Landlord, or the value
of any deposit so made by Landlord, together with all costs, fees and expenses
in connection therewith (including attorneys' fees of Landlord), together with
interest thereon at the Default Rate, shall be Additional Rent payable on demand
by Landlord.
26. Interest. Base Rent, Additional Rent and any other amounts due
Landlord hereunder, if not paid when due, and any other charges payable by
Tenant hereunder not paid when due, including any charges, expenses, liabilities
or fees in connection with a default by Tenant, shall accrue interest (the
"Default Rate") at the greater of (a) the rate of prime (as published in the
Wall Street Journal) plus two percent (2%) per annum or, so long as the Notes
are outstanding, (b) the default rate set forth in the Note Agreement from the
due date until paid, and to be paid to Landlord by Tenant upon demand.
27. Inspections. Landlord, its agents, employees, contractors,
lenders or prospective lenders, may, after providing Tenant with at least
twenty-four (24) hours prior notice except in an emergency situation, enter the
Demised Premises during business hours (except in an emergency situation), to
(a) exhibit the Demised Premises to prospective purchasers or lenders and
perform due diligence in connection therewith; (b) inspect the Demised Premises
to see that Tenant is complying with its obligations hereunder; and (c) exhibit
the Demised Premises during the last twelve (12) months of the term to
prospective tenants.
28. Transfer of Landlord's Interest. Tenant acknowledges that
Landlord has the right to transfer its interest in the Demised Premises without
the consent of Tenant and in this Lease, and Tenant agrees that in the event of
any such transfer Landlord shall automatically be
23
released from all liability under this Lease and Tenant agrees to look solely to
such transferee for the performance of Landlord's obligations hereunder;
provided, however, any such transferee shall be deemed to have assumed the
obligations of Landlord hereunder subject to the conditions and limitations
herein contained. Tenant agrees to look solely to Landlord's interest in the
Demised Premises for the recovery of any judgment from Landlord, it being agreed
that Landlord, or if Landlord is a partnership, its partners whether general or
limited, or if Landlord is a corporation, its directors, officers or
shareholders, or if Landlord is a limited liability company, its members or
managers, shall never be personally liable for such judgment.
29. Indemnity.
---------
A. To the fullest extent allowed by law, Tenant shall at all
times indemnify, defend and hold harmless Landlord and any person claiming by or
through Landlord from and against any and all claims by or on behalf of any
person, firm or corporation, arising from the conduct or management of the
Demised Premises, or from any work or things whatsoever done in or about the
Demised Premises, and will further indemnify, defend and hold Landlord and any
person claiming by or through Landlord harmless against and from any and all
claims arising during the term of this Lease, or arising from any breach or
default on the part of Tenant in the performance of any covenant or agreement on
the part of Tenant to be performed, pursuant to the terms of this Lease, or
arising from, any act or negligence of Tenant, its agents, servants, employees
or licensees, or arising from any accident, injury or damage whatsoever caused
to any person, firm or corporation occurring during the term of this Lease, in
or about the Demised Premises or upon the sidewalk and the land adjacent
thereto, and from and against all costs, attorneys' fees, expenses and
liabilities incurred in or about any such claim or action or proceeding brought
thereon; and in case any action or proceeding be brought against Landlord by
reason of any such claim, Tenant, upon notice from Landlord, covenants to defend
such action or proceeding by counsel reasonably satisfactory to Landlord.
B. Landlord shall protect, indemnify and hold Tenant harmless
from and against any and all loss, claims, liability or costs (including court
costs and attorneys' fees) incurred by reason of: (a) any damage to any property
or any injury to any person occurring in or on the Demised Premises to the
extent that such injury or damage shall be caused by the gross negligence or
willful misconduct of Landlord or its agents, servants or employees; provided,
however, that such indemnification shall be limited to the extent of the sum of:
(i) amounts of insurance proceeds recovered by Landlord under insurance policies
carried by Landlord for such injury or damage, after deductibles, or insurance
proceeds that would have been received in the event Landlord had not elected to
self-insure, and (ii) the deductible amounts for such claims under such
insurance policies.
The provisions of this paragraph shall survive the termination of this
Lease with respect to any claims or liability occurring prior to such
termination.
30. Modification of Lease. The terms, covenants and conditions of
this Lease may not be changed orally but only by an instrument in writing signed
by Landlord and Tenant and consented to by mortgagee. The failure of either
party hereto to insist in any one or more cases
24
upon the strict performance of any term, covenant or condition of this Lease to
be performed or observed by the other party hereto shall not constitute a waiver
of relinquishment for the future of any such term, covenant or condition.
31. Choice of Law and Interpretation. This Lease shall be governed
by the internal law of the State in which the Demised Premises is situated,
without considering such state's choice of law rules.
32. Independent Covenant; Net Lease. It is the express intent of
Landlord and Tenant that (a) the obligations of Landlord and Tenant hereunder
shall be separate and independent covenants and agreements and that the Base
Rent and Additional Rent, and all other charges and sums payable by Tenant
hereunder, shall commence at the times provided herein and shall continue to be
payable in all events; (b) all costs or expenses of whatsoever character or
kind, general or special, ordinary or extraordinary, foreseen or unforeseen, and
of every kind and nature whatsoever that may be necessary or required in and
about the Demised Premises, or any portion thereof, and Tenant's possession or
authorized use thereof during the term of this Lease, shall be paid by Tenant
and all provisions of this Lease are to be interpreted and construed in light of
the intention expressed in this paragraph; (c) the Base Rent shall be absolutely
net to Landlord so that this Lease shall yield net to Landlord the Base Rent
during the term of this Lease; (d) all Impositions, insurance premiums, utility
expenses, repair and maintenance expenses, and all other costs, fees, interest,
charges, expenses, reimbursements and obligations of every kind and nature
whatsoever relating to the Demised Premises, or any portion thereof, which may
arise or become due during the term of this Lease, or any extension or renewal
thereof, shall be paid or discharged by Tenant as "Additional Rent."
33. Entry by Landlord. Tenant agrees to permit Landlord or
Landlord's mortgagee and authorized representatives of Landlord or Landlord's
mortgagee to enter upon the Demised Premises at all reasonable times during
ordinary business hours for the purpose of inspecting the same and making any
necessary repairs to comply with any laws, ordinances, rules, regulations or
requirements of any public body, or the Board of Fire Underwriters, or any
similar body. Nothing herein contained shall imply any duty upon the part of
Landlord to do any such work which, under any provision of this Lease, Tenant
may be required to perform and the performance thereof by Landlord shall not
constitute a waiver of Tenant's default in failing to perform the same. Landlord
may, during the progress of any work, keep and store upon the Demised Premises
all necessary materials, tools and equipment. Landlord shall not in any event be
liable for inconvenience, annoyance, disturbance, loss of business or other
damage to Tenant by reason of making repairs or the performance of any work in
or about the Demised Premises, or on account of bringing material, supplies and
equipment into, upon or through the Demised Premises during the course thereof,
and the obligations of Tenant under this Lease shall not be thereby affected in
any manner whatsoever.
34. Survival of Obligations. All obligations of Tenant hereunder
not fully performed as of the expiration or earlier termination of the term of
this Lease shall survive the expiration or earlier termination of the term
hereof.
25
35. Option to Purchase Demised Premises.
-----------------------------------
Tenant (but not any subtenant or assignee of Tenant) shall have the
option to purchase the Demised Premises (the "Option") as hereinafter provided.
A. Tenant shall have the option to purchase the Demised Premises
at an option price (the "Option Price") equal to the greater of (x) the then
outstanding principal amount of the Notes plus accrued interest thereon through
the date of purchase of the Demised Premises together with the Make Whole
Amount, if any or (y) the fair market value of the Demised Premises. Tenant may
only exercise the Option if the Lease is in full force and effect and no
defaults or Events of Default exist at the time Tenant notifies Landlord of the
exercise of the Option and at the time set for closing of the Option. Tenant
shall signify its intent to exercise the Option by delivering to Landlord its
written notice of its exercise of the Option, not later than 60 days prior to
the date stated in such notice as the closing date for such Option (the
"Notice").
B. "Fair Market Value" shall be determined by mutual agreement of
Landlord and Tenant prior to the delivery of any Notice or if they have not so
agreed at the time of delivery of any such Notice, Fair Market Value shall be
determined by appraisal as provided herein.
(i) Either party may, by notice to the other, appoint a
disinterested appraiser. Within 10 days after the service of such
notice, the other party may in like manner appoint a disinterested
appraiser and give notice thereof to the party appointing the first
appraiser. In case of the failure of the other party so to appoint a
second appraiser, the first appraiser shall be the sole appraiser and
shall determine the Fair Market Value. If two appraisers are so
appointed by the parties, they shall promptly attempt to determine the
Fair Market Value. If the two appraisers are unable to agree on the
Fair Market Value within 20 days after the second appraiser has been
appointed, they shall select and appoint in writing a third
disinterested appraiser and give notice thereof to both parties.
(ii) Within 15 days after the selection and appointment of
the third appraiser, the three appraisers shall meet and attempt to
determine the Fair Market Value. The decision of a majority of the
appraisers shall determine the Fair Market Value. If a majority of the
three appraisers are unable to agree on the Fair Market Value within
said 15-day period, the three appraisers each shall promptly prepare an
appraisal of the Fair Market Value and the three appraisals shall be
added together and their total being divided by three with the
resulting quotient being the Fair Market Value. If, however, the low
appraisal and/or high appraisal varies by more than ten percent (10%)
from the middle appraisal, the appraisal or appraisals so varying shall
be disregarded. If only one appraisal is disregarded, the remaining
appraisals shall be added together and their total divided by two with
the resulting quotient being the Fair Market Value. If both the low
appraisal and the high appraisal are disregarded, the middle appraisal
shall establish the Fair Market Value.
(iii) Each of the parties shall pay for its own appraiser's
fees and the parties will each pay half of the fees of the third
appraiser and all other costs of appraisals.
26
(iv) To be qualified to act as an appraiser under this
paragraph, a person must be a member of the American Institute of Real
Estate Appraisers (or if such institute is not in existence at the time
in question, a member of successor or similar organization) and must
have minimum of 10 years recent experience in real estate appraisal
specializing in commercial office buildings in the suburban Chicago,
Illinois.
(v) After the Fair Market Value has been determined, the
appraisers shall immediately notify the parties and the closing on the
sale shall occur on the next rent payment date not less than 60 days
from the date of such notification.
C. Upon the date fixed for any purchase, Tenant shall pay to
Landlord, in lawful money of the Untied States, by wire transfer of immediately
available funds or as otherwise directed by Landlord, the purchase price
therefor specified herein together with all Base Rent, Additional Rent and other
sums then due and payable hereunder to and including such date of purchase, and
Landlord shall deliver to Tenant a special warranty deed, and any other
instruments reasonably necessary to convey the title thereto and to assign any
other property then required to be assigned pursuant hereto. Tenant shall pay
all charges incident to such conveyance and assignment, including reasonable
counsel fees, escrow fees, recording fees, title insurance premiums and all
applicable taxes that may be imposed by reason of such conveyance and assignment
and the delivery of said deed and other instruments.
36. No Merger. There shall be no merger of this Lease or the
leasehold estate created hereby with the fee estate in the Land and Demised
Premises by reason that the same person or entity may acquire, hold or own such
estates directly or indirectly.
27
IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease
as of the day and year first above written.
LANDLORD:
XXXXXX PROPERTIES II LLC
By: /s/ X.X. Xxxxxxxx III
--------------------------------
Title: Chief Executive
-----------------------------
TENANT:
XXXXXX ASSOCIATES LLC
By: /s/ Xxxx X. Xxxx
--------------------------------
Title: Chief Administrative Officer
-----------------------------
28
EXHIBIT A
Legal Description
See Attached
PIN: 00-00-000-000
00-00-000-000
Address: Xxxx 0 xxx 0 xx Xxxxxxxxxxxx Xxxxxxxxx Xxxxxx.
THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS:
PARCEL 1: THAT PART OF LOTS 1 AND 2 IN LINCOLNSHIRE CORPORATE CENTER UNIT 3,
BEING A SUBDIVISION OF PART OF SECTIONS 22 AND 27, TOWNSHIP 43 NORTH, RANGE 11,
EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED
OCTOBER 3, 1985 AS DOCUMENT 2388875, AND AMENDED BY LETTERS OF AMENDMENT
RECORDED NOVEMBER 14, 1986 AS DOCUMENT 2505119 AND NOVEMBER 21, 1986 AS DOCUMENT
2507771, IN LAKE COUNTY, ILLINOIS, DESCRIBED AS FOLLOWS:
THAT PART OF SAID LOTS 1 AND 2 IN THE AFOREMENTIONED LINCOLNSHIRE CORPORATE
CENTER UNIT 3 LYING EASTERLY AND NORTHERLY OF THE FOLLOWING DESCRIBED LINE:
BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 2, A DISTANCE OF 7.00 FEET
WESTERLY OF THE NORTHEAST CORNER THEREOF; THENCE SOUTH 02 DEGREES 08 MINUTES 57
SECONDS WEST PARALLEL WITH THE WEST LINE OF SAID LOT 2, A DISTANCE OF 294.00
FEET; THENCE SOUTH 87 DEGREES 51 MINUTES 03 SECONDS EAST PARALLEL WITH THE NORTH
LINE OF LOTS 1 AND 2, A DISTANCE OF 173.00 FEET; THENCE SOUTH 02 DEGREES 08
MINUTES 57 SECONDS WEST, 166.85 FEET; THENCE NORTH 87 DEGREES 51 MINUTES 03
SECONDS WEST PARALLEL WITH THE NORTH LINE OF LOTS 1 AND 2, A DISTANCE OF 20.16
FEET; THENCE SOUTH 02 DEGREES 12 MINUTES 15 SECONDS WEST, 134.83 FEET; THENCE
SOUTH 47 DEGREES 08 MINUTES 56 SECONDS WEST, 17.87 FEET; THENCE SOUTH 43 DEGREES
06 MINUTES 17 SECONDS EAST, 11.86 FEET; THENCE SOUTH 46 DEGREES 31 MINUTES 18
SECONDS WEST, 12.01 FEET; THENCE SOUTH 42 DEGREES 51 MINUTES 04 SECONDS EAST,
17.77 FEET; THENCE SOUTH 02 DEGREES 12 MINUTES 15 SECONDS WEST, 59.59 FEET;
THENCE SOUTH 47 DEGREES 08 MINUTES 56 SECONDS WEST, 19.45 FEET; THENCE SOUTH 02
DEGREES 12 MINUTES 15 SECONDS WEST, 32.17 FEET; THENCE SOUTH 42 DEGREES 51
MINUTES 04 SECONDS EAST, 156.36 FEET; THENCE SOUTH 13 DEGREES 12 MINUTES 52
SECONDS EAST, 158.99 FEET TO THE SOUTH LINE OF SAID LOT 1.
PARCEL 2: EASEMENT FOR THE BENEFIT OF PARCEL ONE OVER THOSE PORTIONS OF LOTS 1
AND 2 IN LINCOLNSHIRE CORPORATE CENTER UNIT 3, AFORESAID, LYING WESTERLY AND
SOUTHERLY OF THE AFOREDESCRIBED LINE, AS CREATED BY THE RECIPROCAL EASEMENT AND
SHARED FACILITIES OPERATING AGREEMENT DATED JULY 31, 1998 AND RECORDED - AS
DOCUMENT -, BY AND BETWEEN XXXXXX PROPERTIES I LLC, AN ILLINOIS LIMITED
LIABILITY COMPANY, AND XXXXXX PROPERTIES II LLC, AN ILLINOIS LIMITED LIABILITY
COMPANY, FOR THE FOLLOWING DESCRIBED PURPOSES: AN EASEMENT TO USE THAT PORTION
OF THE COMMON AREA, AS DEFINED THEREIN AND DEPICTED ON THE SITE PLAN ATTACHED AS
EXHIBIT "C", CONSISTING OF DRIVEWAYS AND TRAFFIC LANES TO PROVIDE UNINTERRUPTED
PASSAGE BY MOTOR VEHICLES FOR INGRESS AID EGRESS BETWEEN THE ENTRANCES AND
EXITS; AN EASEMENT TO USE THAT PORTION OF THE AFORESAID COMMON AREA, CONSISTING
OF SIDEWALKS AND EXTERIOR WALKWAYS; EASEMENT TO THE PARKING FACILITIES AND SUCH
PORTIONS OF THE AFORESAID COMMON AREA CONSISTING OF MARKED PARKING SPACES AND
TRAFFIC LANES; EASEMENT TO
A-1
USE THE LOADING DOCK AREA, AS DEFINED THEREIN AND DEPICTED ON THE SITE PLAN
ATTACHED AS EXHIBIT "C"; EASEMENT FOR MAINTENANCE, REPAIR AND RECONSTRUCTION OF
THE COMMON BUILDING COMPONENTS, AS DEFINED THEREIN; EASEMENTS IN THOSE PORTIONS
OF THE BASEMENT OF THE PAVILION, THE LOADING DOCK AREA AND THE TECHNOLOGY
BUILDING WHERE CHILLERS, SHARED FACILITIES AND PIPES SERVING SUCH FACILITIES ARE
CURRENTLY LOCATED FOR THE PURPOSE OF CONNECTING ANY AND ALL OF THE PIPE(S) FOR
SHARED FACILITIES AND/OR MAINTAINING, REPAIRING AND REPLACING EXISTING SHARED
FACILITIES, AS DEFINED THEREIN; AND EASEMENT FOR BUILDING ENCROACHMENTS OVER THE
COMMON AREA AND THE COMMON BUILDING COMPONENTS, IN LAKE COUNTY, ILLINOIS.
A-2
EXHIBIT B
Site Plan
[chart]
EXHIBIT C
Description of Plans, Specifications
and Construction Contracts
None
EXHIBIT D
Schedule of Rents
XXXXXX PROPERTIES II LLC
MORTGAGE STYLE AMORTIZATION SCHEDULE
August 19, 1998 Closing
PRINCIPAL $45,000,000 Treasury Average 5.600%
ANNUAL INTEREST 6.7300% Spread 1.13%
PAYMENT PER PERIOD $341,628.94 BEY Spread 1.22%
PERIODS PER YEAR 12 Treasury 11/11
TERM (PERIODS) 240
AVERAGE LIFE (PERIODS) 13.49
DURATION (PERIODS) 101.42 8.45(years)
-------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
-------------------------------------------------------------------------------------------------------------------------------
19-Aug-1998 0 45,000,000.00
Aug-1998 0.37 92,537.30 0.00 45,000,000.00 $ 92,537.50 92,347.93 0.0021 0.0008 0.00
Sep-1998 1.37 252,375.00 0.00 45,000,000.00 252,375.00 250,453.37 0.0056 0.0076 0.00
Oct-1998 2.37 252,375.00 0.00 45,000,000.00 252,375.00 249,056.58 0.0055 0.0131 0.00
Nov-1998 3.37 252,375.00 0.00 45,000,000.00 252,375.00 247,667.58 0.0055 0.0185 0.00
Dec-1998 4.37 252,375.00 0.00 45,000,000.00 252,375.00 246,286.32 0.0055 0.0239 0.00
Jan-1999 5.37 252,375.00 0.00 45,000,000.00 252,375.00 244,912.77 0.0054 0.0292 0.00
Feb-1999 6.37 252,375.00 0.00 45,000,000.00 252,375.00 243,546.88 0.0054 0.0345 0.00
Mar-1999 7.37 252,375.00 0.00 45,000,000.00 252,375.00 242,188.60 0.0054 0.0396 0.00
Apr-1999 8.37 252,375.00 0.00 45,000,000.00 252,375.00 240,837.90 0.0054 0.0448 0.00
May-1999 9.37 252,375.00 0.00 45,000,000.00 252,373.00 239,494.74 0.0053 0.0499 0.00
Jun-1999 10.37 252,375.00 0.00 45,000,000.00 252,375.00 238,159.06 0.0053 0.0549 0.00
Aug-1999 11.37 252,375.00 0.00 45,000,000.00 252,375.00 236,830.84 0.0053 0.0598 0.00
Aug-1999 12.37 252,375.00 0.00 45,000,000.00 252,375.00 235,510.02 0.0052 0.0647 0.00
Sep-1999 13.37 252,375.00 0.00 45,000,000.00 252,375.00 234,196.57 0.0052 0.0696 0.00
Oct-1999 14.37 252,375.00 0.00 45,000,000.00 252,375.00 232,890.44 0.0052 0.0744 0.00
Nov-1999 15.37 252,375.00 0.00 45,000,000.00 252,375.00 231,591.60 0.0051 0.0791 0.00
Dec-1999 16.37 252,375.00 89,253.94 44,910,746.06 341,628.94 311,746.97 0.0069 0.1134 1,460,789.42
Jan-2000 17.37 251,874.43 89,754.50 44,820,991.56 341,628.94 310,008.34 0.0069 0.1196 1,558,736.52
Feb-2000 18.37 251,371.06 90,257.88 44,730,733.69 341,628.94 308,279.41 0.0069 0.1258 1,657,736.30
Mar-2000 19.37 250,864.86 90,764.07 44,639,969.62 341,628.94 306,560.12 0.0068 0.1319 1,757,797.51
Apr-2000 20.37 230,335.83 91,273.11 44,548,696.51 341,628.94 304,850.42 0.0068 0.1380 1,858,928.93
May-2000 21.37 249,843.94 91,785.00 44,456,911.51 341,628.94 303,150.25 0.0067 0.1439 1,961,139.47
Jun-2000 22.37 749,329.18 92,299.76 44,364,611.76 341,628.94 301,459.56 0.0067 0.1498 2,064,437.91
Aug-2000 23.37 248,811.53 92,817.41 44,271,794.35 341,628.94 299,778.31 0.0067 0.1557 2,168,833.37
Aug-2000 24.37 248,290.98 93,337.96 44,178,456.39 341,628.94 298,106.43 0.0066 0.1614 2,274,334.86
Sep-2000 25.37 247,767.51 93,861.43 44,084,594.97 341,628.94 296,443.87 0.0066 0.1671 2,380,951.52
Oct-2000 26.37 247,241.10 94,387.83 43,990,207.14 341,628.94 294,790.59 0.0066 0.1727 2,488,692.52
Nov-2000 27.37 246,711.75 94,917.19 43,895,289.94 341,628.94 293,146.52 0.0065 0.1783 2,597,567.13
Dec-2000 28.37 246,179.42 95,449.52 43,799,840.43 341,628.94 291,511.63 0.0065 0.1838 2,707,584.67
Jan-2001 29.37 245,644.11 95,984.83 43,703,855.60 341,628.94 289,885.85 0.0064 0.1892 2,818,754.54
Feb-2001 30.37 245,105.79 96,523.15 43,607,332.45 341,628.94 288,269.14 0.0064 0.1945 2,931,086.20
Mar-2001 31.37 244,564.46 97,064.48 43,510,267.97 341,628.94 286,661.45 0.0064 0.1998 3,044,589.19
Apr-2001 32.37 244,020.09 97,608.85 43,412,659.12 341,628.94 285,062.72 0.0063 0.2050 3,159,273.11
May-2001 33.37 243,472.66 98,156.27 43,314,502.85 341,628.94 283,472.91 0.0063 0.2102 3,275,147.64
Jun-2001 34.37 242,922.17 98,706.77 43,215,796.08 341,628.94 281,891.97 0.0063 0.2153 3,392,222.37
Aug-2001 35.37 242,368.59 99,260.35 43,116,535.73 341,628.94 280,319.84 0.0062 0.2203 3,510,507.58
Aug-2001 36.37 241,811.90 99,817.03 43,016,718.70 341,628.94 278,756.48 0.0062 0.2253 3,630,012.71
-------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
-------------------------------------------------------------------------------------------------------------------------------
Sep-2001 37.37 241,252.10 100,376.84 42,916,341.86 341,628.94 277,201.84 0.0062 0.2302 3,750,747.87
Oct-2001 38.37 240,689.15 100,939.79 42,815,402.08 341,628.94 275,655.87 0.0061 0.2350 38,727,233.10
Nov-2001 39.37 240,123.05 101,505.89 42,713,896.19 341,628.94 274,118.52 0.0061 0.2398 3,995,948.51
Dec-2001 40.37 239,553.77 102,075.17 42,611,821.02 341,628.94 272,589.75 0.0061 0.2445 4,120,434.29
Jan-2002 41.37 238,981.30 102,647.64 42,509,173.38 341,628.94 271,069.50 0.0060 0.2492 4,246,190.70
Feb-2002 42.37 238,405.61 103,223.32 42,405,950.06 341,628.94 269,557.73 0.0060 0.2538 4,373,228.08
Mar-2002 43.37 237,826.70 103,802.23 42,302,147.83 341,628.94 268,054.39 0.0060 0.2583 4,501,556.83
Apr-2002 44.37 237,744.55 104,384.39 42,197,763.44 341,628.94 266,559.44 0.0059 0.2628 4,631,187.45
May-2002 43.37 236,659.12 104,969.81 42,092,793.62 341,628.94 265,072.82 0.0059 0.2672 4,762,130.51
Jun-2002 46.37 236,070.42 105,558.32 41,987,235.10 341,628.94 263,594.50 0.0059 0.2716 4,894,396.64
Aug-2002 47.37 275,478.41 106,150.33 41,881,084.58 341,628.94 262,124.42 0.0058 0.2759 5,027,996.57
Aug-2002 48.37 234,883.08 106,745.83 41,774,338.73 341,628.94 260,662.53 0.0058 0.2802 5,162,941.11
Sep-2002 49.37 234,284.42 107,344.52 41,666,994.21 341,628.94 259,208.80 0.0058 0.2844 5,299,241.12
Oct-2002 50.37 233,682.39 107,946.54 41,559,047.66 341,628.94 257,763.18 0.0057 0.2885 5,436,907.58
Nov-2002 51.37 233,076.99 108,551.94 41,450,495.72 341,628.94 256,325.62 0.0057 0.2926 5,575,951.51
Dec-2002 52.37 232,468.20 109,160.74 41,341,334.98 341,628.94 254,896.08 0.0057 0.2966 5,716,384.04
Jan-2003 53.37 231,855.99 109,772.95 41,231,562.03 341,628.94 253,474.51 0.0056 0.3006 5,858,216.38
Feb-2003 54.37 231,240.34 110,388.59 41,121,173.44 341,628.94 252,060.87 0.0056 0.3045 6,001,459.80
Mar-2003 53.37 230,621.25 111,007.69 41,010,165.75 341,628.94 250,655.11 0.0056 0.3084 6,146,125.68
Apr-2003 56.37 229,998.68 111,630.26 40,898,535.49 341,628.94 249,257.11 0.0055 0.3122 6,292,225.46
May-2003 57.37 229,372.62 112,256.32 40,786,279.18 341,628.94 247,867.07 0.0055 0.3160 6,439,770.67
Jun-2003 38.37 228,743.05 112,885.89 40,673,393.29 341,628.94 246,484.70 0.0055 0.3197 6,588,772.94
Aug-2003 39.37 278,109.93 113,518.99 40,559,874.30 341,628.94 245,110.05 0.0054 0.3234 6,739,243.96
Aug-2003 60.37 227,473.30 114,155.64 40,445,718.66 341,628.94 243,743.05 0.0054 0.3270 6,891,195.53
Sep-2003 61.37 226,833.07 114,795.86 40,330,922.80 341,628.94 242,383.68 0.0054 0.3305 7,044,639.51
Oct-2003 62.37 226,189.26 115,439.68 40,215,483.12 341,628.94 241,031.90 0.0054 0.3341 7,199,587.88
Nov-2003 63.37 223,541.83 116,087.10 40,099,396.02 341,628.94 239,687.63 0.0053 0.3375 7,356,052.67
Dec-2003 64.37 224,890.78 116,738.16 39,982,657.86 341,628.94 238,350.90 0.0053 0.3409 7,514,046.02
Jan-2004 65.37 274,236.07 117,392.86 39,865,265.00 341,628.94 237,021.60 0.0053 0.3443 7,673,580.16
Feb-2004 66.37 223,577.69 118,051.24 39,747,213.76 341,628.94 235,699.72 0.0052 0.3476 7,834,667.40
Mar-2004 67.37 272,915.62 118,713.31 39,628,500.44 341,628.94 234,385.21 0.0052 0.3509 7,997,320.13
Apr-2004 68.37 222,219.84 119,379.10 39,509,121.35 341,628.94 233,078.03 0.0052 0.3541 8,161,550.87
May-2004 69.37 221,580.32 120,048.61 39,389,072.73 341,628.94 231,778.14 0.0052 0.3573 8,327,372.18
Jun-2004 70.37 220,907.05 120,721.89 39,268,350.85 341,628.94 230,485.50 0.0051 0.3604 8,494,796.74
Aug-2004 71.37 220,230.00 121,398.94 39,146,951.91 341,628.94 229,200.07 0.0051 0.3635 8,663,837.33
Aug-2004 72.37 219,549.16 122,079.78 39,024,872.13 341,628.94 227,921.81 0.0051 0.3665 8,834,506.80
Sep-2004 73.37 218,864.49 122,764.44 38,902,107.69 341,628.94 226,650.68 0.0050 0.3695 9,006,818.10
Oct-2004 74.37 218.173.99 123,452.95 38,778,654.74 341,628.94 225,386.63 0.0050 0.3725 9,180,784.29
Nov-2004 75.37 217,483.62 124,145.31 38,654,509.42 341,628.94 224,129.64 0.0050 0.3754 9,356,418.50
Dec-2004 76.37 216,787.37 124,841.56 38,529,667.86 341,628.94 227,879.66 0.0050 0.3782 9,533,733.98
Jan-2005 77.37 216,087.22 125,541.72 38,404,126.15 341,628.94 221,636.64 0.0049 0.3810 9,712,744.05
Feb-2005 78.37 215,383.14 126,245.80 38,277,880.35 341,628.94 220,400.56 0.0049 0.3838 9,893,462.15
Mar-2005 79.37 214,675.11 126,953.82 38,150,926.53 341,628.94 219,171.38 0.0049 0.3866 10,075,901.81
Apr-2005 80.37 213,963.11 127,665.82 38,023,260.70 341,628.94 217,949.05 0.0048 0.3892 10,260,076.65
May-2005 81.37 213,247.12 128,381.82 37,894,878.89 341,628.94 216,733.53 0.0048 0.3919 10,446,000.40
Jun-2005 82.37 212,527.11 129,101.82 37,765,777.07 341,628.94 215,524.80 0.0048 0.3945 10,633,686.87
Aug-2005 83.37 211,803.07 129,825.87 37,635,951.20 341,628.94 214,322.80 0.0048 0.3971 10,823,150.00
Aug-2005 84.37 211,074.96 130,553.98 37,505,397.22 341,628.94 213,127.51 0.0047 0.3996 11,014,403.81
Sep-2005 85.37 210,342.77 131,286.17 37,374,115.05 341,628.94 211,938.89 0.0047 0.4021 11,207,462.43
Oct-2005 86.37 209,606.47 132,022.46 37,242,088.59 341,628.94 210,756.90 0.0047 0.4045 11,402,340.07
Nov-2005 87.37 208,866.05 132,762.89 37,109,325.70 341,628.94 209,581.49 0.0047 0.4069 11,599,051.09
Dec-2005 88.37 208,121.47 133,507.47 36,975,818.23 341,628.94 208,412.65 0.0046 0.4093 11,797,609.90
Jan-2006 89.37 207.372.71 134,256.22 36,841,562.01 341,628.94 207,250.32 0.0046 0.4116 11,998,031.05
---------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
---------------------------------------------------------------------------------------------------------------------------------
Feb-2006 90.37 206,619.76 135,009.18 36,706,552.83 341,628.94 206,094.47 0.0046 0.4139 12,200,329.13
Mar-2006 91.37 205,862.58 135,766.35 36,570,786.48 341,628.94 204,945.07 0.0046 0.4161 12,404,519.05
Apr-2006 92.37 205,101.16 136,527.78 36,434,258.71 341,628.94 203,802.08 0.0045 0.4183 12,601,615.50
May-2006 93.37 204,335.47 137,293.47 36,296,965.24 341,628.94 202,665.46 0.0045 0.4205 12,818,633.51
Jun-2006 94.37 203,565.48 138,063.46 36,158,901.78 341,628.94 201,535.19 0.0045 0.4226 13,028,588.13
Aug-2006 95.37 202,791.17 138,837.76 36,020,064.02 341,628.94 200,411.21 0.0045 0.4247 13,240,494.56
Aug-2006 96.37 202,012.53 139,616.41 35,880,447.61 341,628.94 199,293.51 0.0044 0.4268 13,454,368.08
Sep-2006 97.37 201,229.51 140,399.43 35,740,048.18 341,628.94 198,182.04 0.0044 0.4288 13,670,224.08
Oct-2006 98.37 200,442.10 141,186.83 35,598.861.35 341,628.94 197,076.77 0.0044 0.4308 13,888,078.09
Nov-2006 99.37 199,650.28 141,978.66 35,456,882.70 341,628.94 195,977.66 0.0044 0.4327 14,107,945.71
Dec-2006 100.37 198,854.02 142,774.92 35,314,107.78 341,628.94 194,884.68 0.0043 0.4347 14,329,342.70
Jan-2007 101.37 198,053.29 143,575.65 35,170,532.13 341,628.94 193,797.80 0.0043 0.4365 14,553,784.88
Feb-2007 102.37 197,248.07 144,380.87 35,026,151.26 341,628.94 192,716.98 0.0043 0.4384 14,779,788.22
Mar-2007 103.37 196,438.33 145,190.60 34,880,960.66 341,628.94 191,642.18 0.0043 0.4402 15,007,868.31
Apr-2007 104.37 195,624.05 146,004.88 34,734,955.77 341,628.94 190,573.38 0.0042 0.4420 15,238,042.82
May-2007 105.37 194,805.21 146,823.73 34,588,132.05 341,628.94 189,510.55 0.0042 0.4437 15,470,326.57
Jun-2007 106.37 193,981.77 147,647.16 34,440,484.89 341,628.94 188,453.64 0.0042 0.4454 15,704,736.48
Aug-2007 107.37 193,183.72 148,475.22 34,292,009.67 341,628.94 187,402.62 0.0042 0.4471 15,941,289.09
Aug-2007 108.37 192.321.02 149,307.92 34,142.701.76 341,628.94 186,357.46 0.0041 0.4488 16,180,001.07
Sep-2007 109.37 191,483.65 150,145.28 33,992,556.47 341,628.94 185,318.14 0.0041 0.4504 16,420,889.19
Oct-2007 110.37 190,641.59 150,987.35 33,841,569.12 341,628.94 184,284.61 0.0041 0.4520 16,663,970.36
Nov-2007 111.37 189,794.80 151,834.14 33,689,734.99 341,628.94 183,256.84 0.0041 0.4535 16,909,261.60
Dec-2007 112.37 188,943.26 152,685.67 33,537,049.31 341,628.94 182,234.81 0.0040 0.4550 17,156,780.05
Jan-2008 113.37 188,086.95 153,541.98 33,383,507.33 341,628.94 181,218.48 0.0040 0.4565 17,406,542.97
Feb-2008 114.37 187,225.84 154,403.10 33,229,104.23 341,628.94 180,207.81 0.0040 0.4580 17,658,567.77
Mar-2008 115.37 186,759.89 155,269.04 33,073,835.19 341,628.94 179,202.78 0.0040 0.4594 17,912,871.94
Apr-2008 116.37 185,489.09 156,139.84 32,917,695.34 341,628.94 178,203.36 0.0040 0.4608 18,169,473.15
May-2008 117.37 184,613.41 157,015.53 32,760,679.82 341,628.94 177,209.51 0.0039 0.4622 18,428,389.14
Jun-2008 118.37 183,732.81 157,896.12 32,602,783.69 341,628.94 176,221.00 0.0039 0.4635 18,689,637.81
Aug-2008 119.37 182,847.28 158,781.66 32,444,002.04 341,628.94 175,238.41 0.0039 0.4648 18,953,237.18
Aug-2008 120.37 181,956.78 159,672.16 32,284,329.88 341,628.94 174,261.09 0.0039 0.4661 19,219,205.41
Sep-2008 121.37 181,061.28 160,567.65 32,123,762.22 341,628.94 173,289.23 0.0039 0.4674 19,487,560.78
Oct-2008 122.37 180,160.77 161,468.17 31,962,294.06 341,628.94 172,322.78 0.0038 0.4686 19,758,321.68
Nov-2008 123.37 179,255.20 162,773.74 31,799.920.32 341,628.94 171,361.73 0.0038 0.4698 20,031,506.67
Dec-2008 124.37 178,344.55 163,284.38 31,636,635.94 341,628.94 170,406.04 0.0038 0.4710 20,307,134.42
Jan-2009 125.37 177,428.80 164,200.14 31,472,435.80 341,628.94 169,455.67 0.0038 0.4721 20,585,223.74
Feb-2009 126.37 176,507.91 165,121.03 31,307,314.77 341,628.94 168,510.61 0.0037 0.4732 20,865,793.56
Mar-2009 127.37 175,581.86 166,047.08 31,141.267.70 341,628.94 167,570.82 0.0037 0.4743 21,148,862.96
Apr-2009 128.37 174,650.61 166,978.33 30,974,289.37 341,628.94 166,636.26 0.0037 0.4753 21,434,451.16
May-2009 129.77 173,714.14 167,914.80 30,806,374.57 341,628.94 165,706.92 0.0037 0.4764 21,722,577.51
Jun-2009 130.37 172,772.42 168,856.52 30,637,518.05 341,628.94 164,782.77 0.0037 0.4774 22,013,261.48
Aug-2009 131.37 171,825.41 169,803.52 30,467,714.53 341,628.94 163,863.77 0.0036 0.4784 22,306,522.71
Aug-2009 132.37 170,873.10 170,755,84 30,296,958.69 341,628.94 162,949.89 0.0036 0.4793 22,602,380.96
Sep-2009 133.37 169,915.44 171,713.49 30,125,245.20 341,628.94 162,041.11 0.0036 0.4802 22,900,856.14
Oct-2009 134.37 168,952.42 172,676.52 29,952,568.68 341,628.94 161,137.40 0.0036 0.4811 23,201,968.30
Nov-2009 135.37 167,983.99 173,644.95 29,778,923.74 341,628.94 160,238.72 0.0036 0.4820 23,505,737.62
Dec-2009 136.37 167,010.13 174,618.81 29,604,304.93 341,628.94 159,345.06 0.0035 0.4829 23,812,184.43
Jan-2010 137.37 166,030.81 175,598.13 29,428,706.80 341,628.94 158,456.39 0.0035 0.4837 24,121,329.23
Feb-2010 138.37 165,046.00 176,582.94 29,252,123.87 341,628.94 157,572.67 0.0035 0.4845 24,433,192.62
Mar-2010 139.37 164,085.66 177,573.27 29,074,550.59 341,628.94 156,693.87 0.0035 0.4853 24,747,795.38
Apr-2010 140.37 163,059.77 178,569.16 28,895,981.43 341,628.94 155,819.98 0.0035 0.4860 25,065,158.43
May-2010 141.37 162.058.30 179,570.64 28,716,410.79 341,628.94 154,950.97 0.0034 0.4868 25,385,302.84
Jun-2010 142.37 161,051.20 180,577.73 28,535,833.05 341,628.94 154,086.80 0.0034 0.4875 25,708,249.81
------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
------------------------------------------------------------------------------------------------------------------------------
Aug-2010 143.77 160,038.46 181,590.47 28,354,242.58 341,628.94 153,227.45 0.0034 0.4882 26,034,020.72
Aug-2010 144.37 159,020.04 182,608.89 26,171,633.69 341,628.94 152,372.89 0.0034 0.4888 26,362,637.08
Sep-2010 145.37 157,995.91 183,633.02 27,988,000.67 341,628.94 151,523.10 0.0034 0.4895 26,694,120.56
Oct-2010 146.37 156.966.04 184,662.90 27,803,337.77 341,628.94 150,678.04 0.0033 0.4901 27,028,492.98
Nov-2010 147.37 188,930.39 185,698.55 27,617,639.22 341,628.94 149,837.70 0.0033 0.4907 27,365,776.33
Dec-2010 148.37 154,888.93 186,740.01 27,430,899.21 341,628.94 149,002.05 0.0033 0.4913 27,705,992.73
Jan-2011 149.37 153,841.63 187,787.31 27,243,111.90 341,628.94 148,171.06 0.0033 0.4918 28,049,164.49
Feb-2011 150.37 152,788.45 188,840.48 27,054.271.41 341,628.94 147,344.70 0.0033 0.4923 28,395,314.03
Mar-2011 151.37 151,729.37 189,899.56 26,864,371.85 341,628.94 146,522.95 0.0033 0.4929 28,744,463.98
Apr-2011 152.37 150,664.35 190,964.58 26,673,407.27 341,628.94 145,705.78 0.0032 0.4933 29,096,637.10
May-2011 153.37 149,593.36 192,035.58 26,481,371.69 341,628.94 144,893.18 0.0032 0.4938 29,451,856.32
Jun-2011 154.37 148,516.36 193,112.58 26,288,259.11 341,628.94 144,085.10 0.0032 0.4943 29,810,144.72
Aug-2011 155.37 147,437.32 194,195.62 26,094,063.50 341,628.94 143,281.53 0.0032 0.4947 30,171,525.57
Aug-2011 156.37 146,344.21 195,284.73 25,898,778.77 341,628.94 142,482.44 0.0032 0.4951 30,536,022.27
Sep-2011 157.37 145,248.98 196,379.95 25,702,398.81 341,628.94 141,687.91 0.0031 0.4955 30,903,658.42
Oct-2011 158.37 144,147.62 197,481.32 25,504,917.50 341,628.94 140,897.61 0.0031 0.4959 31,274,457.75
Nov-2011 159.37 143,040.08 198,588.86 25,306,328.64 341,628.94 140,111.81 0.0031 0.4962 31,648,444.19
Dec-2011 160.37 141,926.33 199,702.61 25,106,626.03 341,628.94 139,330.40 0.0031 0.4965 32,025,641.82
Jan-2012 161.37 140,806.33 200,822.61 24,905,803.42 341,628.94 138,553.35 0.0031 0.4968 32,406,074.91
Feb-2012 162.37 139,680.05 201,948.89 24,703,854.53 341,628.94 137,780.63 0.0031 0.4971 32,789,767.87
Mar-2012 163.37 138,547.45 203,081.49 24,500,773.05 341,628.94 137,012.22 0.0030 0.4974 33,176,745.30
Apr-2012 164.37 137,408.50 204,220.43 24,296,552.62 341,628.94 136,248.09 0.0030 0.4977 33,567,031.98
May-2012 165.37 136.263.17 205,365.77 24,091,186.85 341,628.94 135,488.23 0.0030 0.4979 33,960,652.85
Jun-2012 166.37 135,111.41 206,517.33 23,884,669.32 341,628.94 134,732.60 0.0030 0.4981 34,357,633.04
Aug-2012 167.37 133,953.19 207,675.75 23,676,993.57 341,628.94 133,981.19 0.0030 0.4983 34,757,997.85
Aug-2012 168.37 132,788.47 208,840.46 23,468,153.10 341,628.94 133,233.97 0.0030 0.4985 35,161,772.75
Sep-2012 169.37 131,617.23 210,011.71 23,258,141.39 341,628.94 132,490.92 0.0029 0.4987 35,568,983.71
Oct-2012 170.37 130,439.41 211,189.53 23,046,951.87 341,628.94 131,752.01 0.0029 0.4988 35,979,655.63
Nov-2012 171.37 129,254.99 212,373.93 22,834,577.92 341,628.94 131,017.22 0.0029 0.4989 36,397,813.50
Dec-2012 172.37 128,063.92 213,565.01 22,621,012.91 341,628.94 130,286.53 0.0029 0.4990 36,811,789.16
Jan-2013 173.37 126,866.18 214,762.76 22,406,250.15 341,628.94 129,359.92 0.0029 0.4991 37,232,703.02
Feb-2013 174.37 125,661.72 215,967.22 21,190,282.93 341,628.94 128,837.35 0.0029 0.4992 37,657,483.64
Mar-2013 175.37 124,450.50 217,178.43 21,973,104.50 341,628.94 128,118.82 0.0028 0.4993 38,085,857.79
Apr-2013 176.37 123,232.49 218,396.44 21,757,708.06 341,628.94 127,404.29 0.0028 0.4993 38,517,852.72
May-2013 177.37 122,007.65 219,621.28 21,535,086.78 341,628.94 126,693.73 0.0028 0.4994 38,953,797.66
Jun-2013 178.37 120,775.95 220,852.99 21,314,233.79 341,628.94 123,987.18 0.0028 0.4994 39,392,811.83
Aug-2013 179.37 119,537.33 222,091.61 21,092.142.18 341,628.94 125,284.54 0.0028 0.4994 39,835,831.76
Aug-2013 180.37 118,291.76 223,337.17 20,868,805.01 341,628.94 124,585.82 0.0028 0.4994 40,282,581.25
Sep-2013 181.37 117,039.21 224,589.72 20,644,215.29 341,628.94 123,991.00 0.0028 0.4993 40,733,089.12
Oct-2013 182.37 115,779.64 225,849.30 20,418,365.99 341,628.94 123,200.05 0.0027 0.4993 41,187,387.16
Nov-2013 183.37 114,513.00 227,115.93 20,191,250.06 341,628.94 122,512.96 0.0027 0.4992 41,678,791.66
Dec-2013 184.37 117,239.26 228,389.68 19,962,860.38 341,628.94 121,829.70 0.0027 0.4991 42,107,747.17
Jan-2014 185.37 119,958.38 229,670.56 19,733,189.82 341,628.94 121,150.24 0.0027 0.4990 42,573,266.28
Feb-2014 186.37 110,670.31 230,958.63 19,502,231.00 341,628.94 120,474.58 0.0027 0.4989 43,072,989.97
Mar-2014 187.37 109,375.01 232,253.92 19,269,977.27 341,628.94 119,802.69 0.0027 0.4988 43,516,613.33
Apr-2014 188.37 108,072.46 233,556.48 19,036,420.79 341,628.94 119,134.54 0.0026 0.4997 43,994,255.65
May-2014 189.37 106,762.59 234,866.34 18,801,554.45 341,628.94 118,770.12 0.0026 0.4985 47,475,856.75
Jun-2014 190.37 105,445.38 236,183.55 18,365.370.89 341,628.94 117,809.71 0.0026 0.4984 44,961,775.73
Aug-2014 191.37 104,120.79 237,508.15 18.327,862.75 341,628.94 117,152.78 0.0026 0.4982 45,751,172.52
Aug-2014 192.37 102,788.76 238,840.17 18,089,022.57 341,628.94 116,799.01 0.0026 0.4980 45,947,887.85
Sep-2014 193.37 101,449.27 240,179.67 17,848,842.91 341,628.94 115,879.29 0.0026 0.4978 46,772,771.76
Oct-2014 194.37 100,102.26 241,526.68 17,607,316.23 341,628.94 115,203.19 0.0026 0.4976 46,944,737.81
Nov-2014 195.37 98,747.70 242,881.24 17,367,737.99 341,628.94 117,560.70 0.0025 0.4974 47,150,997.77
------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
------------------------------------------------------------------------------------------------------------------------------
Dec-2014 196.37 97,385.54 244,243.40 17,120,191.60 341,628.94 113,921.79 0.0025 0.4971 47,961,261.62
Jan-2015 197.37 97,015.74 245,613.19 16,874,578.40 341,628.94 113,286.44 0.0025 0.4969 48,775,857.55
Feb-2015 198.37 97,638.26 246,990.68 16,627,587.73 341,628.94 112,654.64 0.0025 0.4966 48,997,717.00
Mar-2015 199.37 93,253.05 248,375.88 16,379,211.85 371,628.94 112,026.35 0.0025 0.4930 49,817,871.58
Apr-2015 200.37 91,860.08 249,768.86 16,129,442.99 341,628.94 111,401.58 0.0025 0.4960 50,045,753.17
May-2015 201.37 90,759.29 251,169.64 15,878,273.35 341,628.94 110,780.28 0.0025 0.4957 50,577,193.84
Jun-2015 202.37 89,050.65 252,578.00 15,625,695.06 341,628.94 110,162.16 0.0024 0.4954 51,113,725.88
Aug-2015 203.37 87,634.11 253,994.83 15,371,700.23 341,628.94 109,548.07 0.0024 0.4951 51,654,081.84
Aug-2015 204.37 86,209.62 255,419.32 15,116,280.91 341,628.94 108,937.12 0.0024 0.4947 52,199,194.77
Sep-2015 205.37 87,777.14 256,851.79 14,859,429.12 341,628.94 108,329.57 0.0024 0.4944 52,778,796.75
Oct-2015 206.37 83,336.63 258,292.30 14,601,136.81 341,628.94 107,725.41 0.0024 0.4940 53,302,921.89
Nov-2015 207.37 81,888.04 259,740.89 14,341,395.92 341,628.94 107,124.62 0.0024 0.4936 53,861,603.33
Dec-2015 208.37 80,431.33 261,197.61 14,080,198.31 341,628.94 106,527.18 0.0024 0.4933 54,424,874.77
Jan-2016 209.37 78.966.45 262,662.49 13,817,535.82 341,628.94 105,933.07 0.0024 0.4929 54,992,770.10
Feb-2016 210.37 77,493.35 264,135.59 13,553,400.23 341,628.94 105,342.28 0.0023 0.4925 55,565,323.47
Mar-2016 211.37 76,011.99 265,616.95 13,287,783.28 341,628.94 104,754.78 0.0023 0.4920 56,142,569.28
Apr-2016 212.37 74,522.32 267,106.62 13,020,676.67 341,628.94 104,170.55 0.0023 0.4916 56,727,542.14
May-2016 213.37 73,024.29 268,604.64 12.752,072.02 341,628.94 103,589.59 0.0023 0.4912 57,311,276.92
Jun-2016 214.37 71,517.87 270,111.07 12,481,960.96 341,628.94 103,011.86 0.0023 0.4907 57,902,808.73
Au8-2016 215.37 70,003.00 271,625.94 12,210,335.02 341,628.94 102,477.36 0.0023 0.4903 58,499,172.92
Au8-2016 216.37 68,479.63 273,149.31 11,937,185.71 341,628.94 101,866.06 0.0023 0.4898 59,100,405.09
Sep-2016 217.37 66,947.72 274,681.22 11,662,504.49 341,628.94 101,297.95 0.0023 0.4893 59,706,571.08
Oct-2016 218.37 65,407.21 276.221.72 11,386,282.77 341,628.94 100,733.01 0.0022 0.4888 60,717,616.99
Nov-2016 219.37 63,858.07 277,770.87 11,108,511.90 341,628.94 100,171.21 0.0022 0.4883 60,933,669.16
Dec-2016 220.37 62,300.24 279,328.70 10,829,183.21 341,628.94 99,612.55 0.0022 0.4979 61,887,734.18
Jan-2017 221.37 60,733.67 280,895.27 10,548,287.94 341,628.94 99,057.01 0.0022 0.4973 62,180,878.92
Feb-2017 222.37 59,158.31 282,470.62 10,265,817.32 341,628.94 98,504.56 0.0022 0.4968 62,812,080.77
Mar-2017 223.37 57,574.13 284,054.81 9,981,762.51 341,628.94 97,955.20 0.0022 0.4862 63,448,376.19
Apr-2017 224.37 55,981.05 285,647.88 9,696,114.62 341,628.94 97,408.89 0.0022 0.4857 67,089,863.72
May-2017 225.37 54,379.04 287,249.89 9,408,864.73 341,628.94 99,865.64 0.0022 0.4951 67,736,550.93
Jun-2017 226.37 52,768.05 288,860.89 9,120,003.84 341,628.94 99,325.41 0.0021 0.4846 65,388,473.98
Aug-2017 227.37 81,178.02 290,780.91 8,829,522.93 341,628.94 95,788.20 0.0021 0.4870 66,075,677.26
Aug-2017 228.37 49,518.91 292,110.03 8,537,412.90 341,628.94 95,253.99 0.0021 0.4834 66,708,197.46
Sep-2017 229.37 47,880.66 293,748.28 8,243,664.62 341,628.94 94,722.75 0.0021 0.4828 67,376,063.52
Oct-2017 230.37 46,233.22 295,395.72 7,948,268.90 341,628.94 94,194.48 0.0021 0.4822 68,049,326.66
Nov-2017 231.37 44,576.54 297,052.79 7,651,216.51 341,628.94 93,669.15 0.0021 0.4816 68,728,022.37
Dec-2017 232.37 42,910.57 298,718.36 7,352,498.15 341,628.94 93,146.75 0.0021 0.4810 69,412,190.39
Jan-2018 273.37 41,235.26 300,393.68 7,052,104.47 341,628.94 92,627.26 0.0020 0.4804 70,101,870.77
Feb-2018 234.37 39,550.55 302,078.38 6,750,026.09 341,628.94 92,110.68 0.0020 0.4797 70,797,103.81
Mar-2018 235.37 37,856.40 303,772.54 6,446,253.55 341,628.94 91,596.97 0.0020 0.4791 71,497,930.10
Apr-2018 236.37 36,152.74 305,476.20 6,140,777.35 341,628.94 91,086.17 0.0020 0.4784 72,204,390.53
May-2018 237.37 34,439.53 307,189.41 5,833,587.94 341,628.94 90,578.14 0.0020 0.4778 72,916,526.27
Jun-2018 238.37 32,716.71 308,912.23 5,524,675.71 341,628.94 90,072.98 0.0020 0.4771 73,634,378.64
Aug-2018 239.37 30,984.22 310,644.71 5,214,031.00 341,628.94 89,370.64 0.0020 0.7764 74,357,989.79
Aug-2018 240.37 29,242.02 312,386.91 4,901,644.08 341,628.94 89,071.10 0.0020 0.4758 75,087,400.80
Sep-2018 241.37 27,490.05 314,138.88 4,587,505.20 341,628.94 88,574.34 0.0020 0.4751 75,822,654.85
Oct-2018 242.37 25,728.26 315,900.68 4,271,604.52 341,628.94 88,080.36 0.0020 0.4744 76,567,794.23
Nov-2018 247.37 23,956.58 317,672.35 3,953,932.17 341,628.94 87,589.13 0.0019 0.4737 77,310,861.89
Dec-2018 244.37 22,174.97 319,453.97 3,634,478.20 341,628.94 87,100.64 0.0019 0.4730 78,063,900.94
Jan-2019 245.37 20,383.37 321,245.57 3,313,232.63 341,628.94 86,614.87 0.0019 0.4727 78,822,957.89
Feb-2019 246.37 18,581.77 323,047.22 2,990,185.41 341,628.94 86,131.82 0.0019 0.4716 79,588,067.51
Mar-2019 247.37 16,769.96 324,838.98 2,665,326.43 341,628.94 85,651.46 0.0019 0.4708 80,359,282.91
Apr-2019 248.37 14,948.04 326,680.90 2,338,645.53 341,628.94 85,173.77 0.0019 0.4701 81,136,645.45
------------------------------------------------------------------------------------------------------------------------------
APPLIED TO NEW PRESENT YEAR-WEIGHT
DATE PMT INTEREST PRINCIPAL BALANCE PAYMENT VALUE PROPORTION DURATION PRINCIPAL
------------------------------------------------------------------------------------------------------------------------------
May-2019 249.37 13,115.90 328,513.03 2,010,132.50 341,628.94 87,698.75 0.0019 0.4694 81,920,199.83
Jun-2019 250.37 11,273.49 330,355.44 1,679,777.06 341,628.94 84,226.38 0.0019 0.4686 82,709,991.06
Aug-2019 251.37 9,420.75 332,208.19 1,347,568.87 341,628.94 83,756.65 0.0019 0.4679 83,506,064.75
Aug-2019 252.37 7,557.62 334,071.72 1,013,497.55 341,628.94 83,289.53 0.0019 0.4671 87,308,465.61
Sep-2019 253.37 5,684.03 335,944.90 677,532.65 341,628.94 82,825.02 0.0018 0.4663 85,117,240.50
Oct-2019 254.37 3,799.94 737,828.99 339,723.65 341,628.94 82,363.10 0.0018 0.4656 85,932,735.35
Nov-2019 255.37 1,905.28 339.723.65 0.00 341,628.94 81,903.76 0.0018 0.4648 86,754,096.77
FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT (this "Lease") is made as of
the 31st day of May, 2002 between XXXXXX PROPERTIES II LLC, an Illinois limited
liability company, having its principal office at 000 Xxxx Xxx Xxxx,
Xxxxxxxxxxxx, Xxxxxxxx 00000 (the "Landlord"), and XXXXXX ASSOCIATES LLC, an
Illinois limited liability company, having its principal office at 000 Xxxx Xxx
Xxxx, Xxxxxxxxxxxx, Xxxxxxxx 00000 (the "Tenant").
W I T N E S S E T H:
-------------------
Landlord and Tenant have entered into that certain Lease Agreement
dated as of July 31, 1998 ("Lease") for approximately 12.5 acres situated in
Lincolnshire, Illinois, County of Lake and legally described on Exhibit A
attached hereto and made a part hereof (the "Land"), together with all
improvements located thereon. All capitalized terms used herein and not
otherwise defined shall have the definition provided to them in the Lease.
Contemporaneously with the execution of the Lease, Landlord issued
$45,000,000 of its Secured Credit Tenant Notes due 2019 (the "Notes") pursuant
to a Note Purchase Agreement (the "Original Note Agreement") which Notes and
obligations are secured in substantial part by the Lease.
Landlord and the holders of the Notes are amending the Original Note
Agreement and in connection therewith desire to amend the Lease as set forth
herein.
1. Definition of Note Amendment. The term "Note Agreement" as used in
the Lease as amended hereby and as may be further amended or modified shall mean
that certain Note Purchase Agreement dated as of July 31, 1998 among Landlord,
Tenant and the Purchasers (as such term is defined in the Note Purchase
Agreement) and any and all existing and future modifications, amendments and/or
supplements thereto.
2. Choice of Law and Interpretation. This Amendment shall be governed
by the internal law of the State of Illinois, without considering such state's
choice of law rules.
3. Conflict. In the event of any conflict between the terms of this
Amendment and the language of the Lease, the terms of this Amendment shall
control.
4. Counterpart. This Amendment may be executed in two or more
counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same agreement.
5. Lease Terms Unmodified. Except as set forth above, the Lease shall
remain unmodified and in full force and effect.
29
IN WITNESS WHEREOF, Landlord and Tenant have duly executed this
Amendment as of the day and year first above written.
LANDLORD:
XXXXXX PROPERTIES III LLC
By: /s/ X. X. Xxxxxxxx III
--------------------------------
Title: Authorized Representative
TENANT:
XXXXXX ASSOCIATES LLC
By: /s/ X. X. Xxxxxxxx III
--------------------------------
Title: Authorized Representative
30
