EXHIBIT 10.3
SECOND AMENDMENT
TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT, made and entered into this 6th
of December 1996, by and between Xxxxx-Xxxxxxxx-Registration Xxxx-
Incorporated, a Minnesota corporation, (hereinafter referred to as
"Landlord") and Xxxxxx Manufacturing Company, a Minnesota corporation
(hereinafter referred to as "Tenant");
WITNESSETH THAT:
A. Landlord is leasing to Tenant and Tenant is leasing from Landlord
certain premises commonly known as 607 and 000X Xxxx Xxxxxxxxx Xxxxx,
Xxxxxxxxxx, XX, and located in Gateway Business Park, Phase 1 (the
"Complex"), Suite 113 and 114A, as shown crosshatched in green upon Exhibit A
attached (the "Original Leased Premises"), pursuant to written lease
agreement dated March 1, 1994, and as amended by First Amendment to Lease
dated January 18, 1996 (collectively referred to as the "Lease"); and
B. WHEREAS, Landlord and Tenant desire to amend the Lease to provide
that Tenant's space will be increased by an additional eight thousand one
hundred ninety seven (8,197) square feet of space adjacent to Tenant's
current leased space, as shown crosshatched in yellow on the attached Exhibit
A (the "Additional Premises"); and
C. WHEREAS, the parties hereto now desire to extend the term of the
Lease by a period of six (6) months and to amend certain other provisions
thereof;
NOW THEREFORE, in consideration of the mutual agreements herein
contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby amend the
Lease and agree as follows:
1. ARTICLE 1, SECTION 2 - TERM: The term of the Lease is hereby extended for
an additional period of six (6) months, to commence on July 1, 1997 and to
expire on December 31, 1997.
2. ARTICLE 1, SECTION 1 - PREMISES:
a.) Subject to the terms and conditions hereof, Landlord hereby leases the
Additional Premises to Tenant and Tenant leases said premises from
Landlord.
b.) Effective beginning on December 1, 1996 and extending through the
extended Lease expiration date of December 31, 1997, the term "Leased
Premises", as used in the Lease, shall mean the Original Leased Premises
PLUS the Additional Premises, together consisting of approximately 12,895
total square feet.
3. ARTICLE 3. SECTION 1 ANNUAL BASE RENT:
Beginning on December 1, 1996, the fixed annual base rent for the Original
Leased Premises and the Additional Premises shall be payable as follows:
Rental Period: Initial Annual Rent Monthly Rent
--------------- ------- ----------- ------------
12/01/96 - 06/30/97 [Initial] $100,610.88 $8,384.24
07/01/97 - 12/31/97 [Initial] $109,781.76 $9,148.48
4. ADDITIONAL RENT:
a.) Tenant's "proportionate share" as that phrase is used in Article 1,
Section 1 of the Lease, shall be increased from 9.40% of the Complex to
24.79% of the Complex, beginning on December 1, 1996 and continuing through
the balance of the remaining lease term, ending on December 31, 1997.
b.) Tenant shall be required to pay for costs for all utility services for
the Additional Premises beginning on December 1, 1996 and continuing
throughout the expiration date of December 31, 1997.
5. TENANT'S CONSTRUCTION: The Tenant shall accept the Additional Premises in
an "as is" condition and Tenant agrees to be responsible for any leasehold
improvements at the Additional Premises; All construction shall meet fire
and safety standards and all other City, State and Federal building codes;
Tenant shall be required to obtain Landlord's prior approval before
commencing any construction at the Original Premises or the Additional
Premises.
6. ARTICLE 1, SECTION 2 - TERM:
The expiration date of the term of the Lease, as set forth therein, and all
other conditions and covenants of the Lease shall apply with full force and
effect to Tenant's lease of the Additional Premises, and, for purposes of
the Lease, the term Original Leased Premises shall be construed to mean the
Original Leased Premises crosshatched in green on Exhibit A together with
the Additional Premises crosshatched in yellow on Exhibit A, said combined
premises totaling approximately 12,895 square feet of space.
7. RIGHT TO TERMINATE:
Tenant shall have the option to terminate the Lease on October 31, 1997
with ninety (90) days written notice prior to termination thereof to
Landlord.
If tenant does not exercise the first option, Tenant shall also have the
option to terminate on November 30, 1997 with ninety (90) days written
notice prior to termination there of to Landlord and Tenant shall have no
further right to terminate the lease thereafter.
IN WITNESS WHEREOF, the parties hereto have caused this Lease Amendment to
be executed the day and year first above written.
XXXXX-XXXXXXXX, INCORPORATED XXXXXX MANUFACTURING
COMPANY
By: By:
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Xxxxxx X. Xxxxxxxx [Illegible]
Its: PRESIDENT Its: Co Founder
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Landlord Tenant
