Exhibit 10.07(a)
Amendment to Lease
(5-Year Term & Option)
AMENDMENT to Indenture dated as of April 15, 1988 (the
"Lease") between XXXXXXXX XXXXXXXXXXX XX, of Tequesta,
Florida (the "Landlord"), and FIBERCOTE INDUSTRIES, INC.
(formerly known as USP Composites, Inc. (the "Tenant").
WHEREAS, the Landlord and the Tenant desire to provide
for the extension of the term of the Lease for up to ten
years as hereinafter set forth;
NOW THEREFORE, the parties hereto agree to amend the
Lease as follows:
1. Extension of Term. The Term of the Lease (the "Term")
shall be extended for a five year period from January 1,
1993 through December 31, 1997. In addition the Tenant shall
have the right to extend the Term for one additional five
year term through December 21, 2002 by written notice to the
Landlord no later than June 30, 1997. The provisions of the
Lease providing for a five year extension of the Term shall
be deemed superseded and replaced by this Section 1.
2. Rent.
(a) The rent for the "leased premises" (as defined in the
Lease) from January 1, 1993 through December 31, 1995 shall
be $175,380.00 per annum, payable to the Landlord in equal
monthly installments of $14,615.00, in advance, without
notice, on the first day of each month.
(b) The rent for the "leased premises" from January 1, 1996
through December 31, 1997 for the periods indicated below
shall be an amount equal to the rent payable during the
prior year increased by a percentage equal to the percentage
increase, if any, in the "consumer price index" for the
United States during such prior year; provided that in no
event shall the rent be increased for any such period by
more than the percentage indicated below over the rent
payable in the prior year:
Period Max. % Increase
1/1-12/31/96 3%
1/1-12/31/97 4%
(c) In the event that the Tenant shall exercise its right
to extend the Term for five years from January 1, 1998
through December 31, 2002, the rent payable during each year
of any such extension shall be an amount equal to the rent
payable during the prior year increased by a percentage
equal to the percentage increase, if any, in the "consumer
price index" for the United States during such prior year.
(d) For the purposes hereof the "consumer price index"
shall be the "consumer price index" as published in the Wall
Street Journal. During any period that the rent hereunder
shall be determined by the "consumer price index" (subject
to any applicabble maximum increase), the rent shall be
payable in twelve equal monthly installments, in advance, on
the first of each month; provided that if the "consumer
price index" for the end of the prior year is not available
as of the commencement of any such period the Tenant shall
make monthly payments of rent equal to those made in the
prior year until such "consumer price index" is available
and the increased rent is determined. Following such
determination, the Tenant shall immediately pay to the
Landlord the difference between the rent actually paid
during such period and the increased rent payable from the
commencement of such period through the date of the
determination of such increased rent.
3. Option to Purchase.
(a) The provisions of Section 20(A) of the Lease shall be
amended by deleting the date "December 31, 1992" from the
first sentence thereof and substituting in place thereof the
following:
December 31, 1995
(b) The provisions of Section 20(A) of the Lease shall be
further amended by deleting in its entirety the third
sentence thereof and substituting in its place the
following:
The option price shall be $2,250,000 if Tenant
exercises said option on or before December 31, 1995.
4. Obligations of EI and Park.
(a) By their consent hereto, Xxxxxxxxxxx Industries, Inc.
and Park Electrochemical Corp. ("Park") agree to remain
bound under the Lease, as amended hereby to the extend
provided in the Lease.
(b) Notwithstanding anything to the contrary herein or in
the Lease, a certain Asset Purchase Agreement between U.S.
Prolam, Inc. and the Tenant dated as of April 15, 1988, as
amended (the "Asset Purchase Agreement"), or Park's guaranty
of Tenant's obligations under the Asset Purchase Agreement,
Park shall not be deemed to have guaranteed Tenant's
obligations under the Lease, as amended hereby, although
Park shall remain obligated under Sections 20(D), 28 (A), 29
and 30 of the Lease to the extent provided therein.
5. Miscennaneous.
(a) Except as specifically amended hereby all other terms
and provisions of the Lease shall remain in full force and
effect without modification, change or amendment and the
Lease shall be deemed amended, renewed and extended hereby.
(b) The extension of the term of the Lease effected hereby,
and any additional extension subsequently obtained in
accordance herewith, shall for the purposes hereof and the
Lease be deemed a "renewal term" a "renewal term" and an
"extended term".
(c) This instrument and the Lease shall be governed by and
construed under the laws of the State of Connecticut. The
parties hereto and the persons consenting hereto hereby
consent to the jurisdiction of and service of process by the
courts of the State of Connecticut in any action brought in
connection with this instrument of the Lease.
IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of this 21st day of December 1992.
FIBERCOTE INDUSTRIES, INC.
By:/s/Xxxxx Xxxxxx
Its: Treasurer
/s/Xxxxxxxx Xxxxxxxxxxx XX
(XXXXXXXX XXXXXXXXXXX XX)
Consent to as of this 21st day
of December 0000
XXXXXXXXXXX INDUSTRIES, INC.
By:/s/ X. Xxxxxxxxxxx
Its: President
U.S. PROLAM, INC.
By:/s/Xxxxxx X. Xxxxxxxx, Xx.
Its: CEO
PARK ELECTROCHEMICAL CORP.
By:/s/Xxxxx Xxxxxx
Its: Vice President
[Exhibits-02-10.07a]bd
