THIRD AMENDMENT TO INDUSTRIAL BUILDING LEASE
THIRD
AMENDMENT TO INDUSTRIAL BUILDING
LEASE
THIS
THIRD AMENDMENT
TO INDUSTRIAL BUILDING LEASE("Amendment") is
made and entered into
as of the 5th day of December, 2005 by and between JJ Properties, Co, a
General
Partnership ("Landlord" or "Lessor") and Pools Press, Inc., an Illinois
Corporation ("Tenant" or "Lessee").
WHEREAS,on
April 11, 1991, Lessee and then
Lesssor, High Tech Partners, an Illinois Limited Partnership ("High Tech")
executed an Industrial Building Lease. ("Lease") for the west one-half
(13,000
square feet including that part of the dock well covered by the roof) of
the
property commonly known as 0000-0000 Xxxxxxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx
("Premises") for the term of June 1, 1991 through May 31, 1996 ("Term");
and
WHEREAS,
Lessee and high Tech have heretofore
amended the Lease by First and Second Amendment thereto;
and
WHEREAS,
High Tech, on March 12, 2003 assigned
the Lease to North Star Realty Services, LLC as beneficiary of MB Financial
Bank, N.A., as Trustee u/t/a dated February 27, 2003 a/k/a Trust No. 3203
(the
"Trust"), and
WHEREAS,
JJ Properties Co. is the current
beneficiary of the Trust and consequently the current Lessor hereunder;
and
WHEREAS,
the parties desire to amend the Lease
by amending the rental terms for the renewal period of June 1, 2006 through
May
31, 2011, and to grant Lessee an option to renew the Lease for the five-year
term of June 1, 2011 through 2016, on the terms and conditions set forth
hereinafter.
NOW
THEREFORE, in consideration
of the premises set forth herein and other good and valuable consideration,
the
receipt and sufficiency of which is hereby acknowledged by the parties,
Lessor
and Lessee hereby agree as follows:
1.
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The
term of the Lease is hereby
extended for an additional five-year period commencing June 1,
2006
through May 31, 2011.
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2.
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The
base rent to be paid by Lessee
to Lessor during the term commencing June 1, 2006 through May
31, 2011
shall be as follows:
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June
1, 2006 through and including May
31, 2009 - $7,446.00 per month,
June
1, 2009 through and including May
31, 2010 - $7,750.00 per month.
Junel,
2010 through and including May 31,
2011 - $8,000.00 per month.
3.
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Paragraph
57 of the Lease is
deleted in its
entirety.
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4.
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Paragraphs
31, 32 and 35 of the
Lease shall be deleted in their entirety as
inapplicable.
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5.
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Paragraph
47 shall be deleted in
it$ entirety.
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6.
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Paragraph
48 shall be deleted in
its entirety,
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7.
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Paragraph
54 (A) through (D) shall
be deleted in their
entirety,
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8.
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Add
the following
Paragraph:
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58.
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Lessor
hereby grants Lessee the
option to terminate Lease prior to the end of its term conditioned
upon
the following:
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A.
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Intent
of Termination of Lease
must be delivered in writing to Lessor not less than nine (9)
months prior
to the requested termination date;
and
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B.
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The
option to terminate shall
expire in the event that Pool Press Inc. is sold in whole or
in part, is
merged into a new or different entity, and/or Xxx Xxxxxxx or
a direct
descendant of Xxx Xxxxxxx is not the majority owner of the legal
and
beneficial interest of the company on the date that the notice
of
termination is served upon
Lessor.
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9.
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In
the event of a conflict between
the terms and conditions of the Lease and this Third Amendment
to
Industrial Building Lease, the provisions of this Third Amendment
to
Industrial Building Lease shall
prevail.
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10.
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Except
as amended hereby and
except to the extent provisions in the Lease relate to conditions
which
have already been satisfied or which expire by their terms, the
parties
agree that the provisions of the Lease shall be and remain in
full force
and. effect.
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11.
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Lessor
and Lessee hereby represent
and warrant that such party has full and complete authority to
execute
this Amendment and the other documents executed in connection
herewith and
to perform the obligations of such party under such
documents.
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12.
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Capitalized
terms used and not
defined herein have the meanings given such terms in the
Lease.
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This
Agreement is executed as of the
dated first above written by and between the parties
hereto.
Lessee:
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Lessor:
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POOLS
PRESS, INC., an Illinoiscorporation
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JJ
PROPERTIES, CO., a General
Partnership
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By:
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/s/
Xxx Xxxxxxx
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By:
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/s/
Xxxxxx X. Xxxxxxxx
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Name:
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Xxx Xxxxxxx
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Name:
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Xxxxxx X. Xxxxxxxx
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Title:
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President
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Title:
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Partner
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DATE
OF LEASE
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TERM
OF LEASE
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MONTHLY
RENT
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BEGINNING
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ENDING
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April
11, 1991
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June
1, 1991
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May
31, 1996
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See
Rider
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Location
of Premises:
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The
west one-half (13,000 square feet including that part of the dock
well
covered by the roof) of the property commonly known as 0000-0000
Xxxxxxxxxx Xxxxxx, Xxxxxxxxxx, XX 00000
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Purpose:
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Office
and warehouse
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LESSEE
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LESSOR
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NAME
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POOLS
PRESS, INC.
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NAME
AND
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HIGH
TECH PARTNERS, an Illinois
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ADDRESS
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3501
Commercial
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BUSINESS
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Limited
Partnership as Beneficiary of Glenview Xxxxx Xxxx
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Xxxxxxxxxx,
XX 00000
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ADDRESS
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T/U/T
#961
000
Xxxxxxxxx Xxxxx Xxxxxxx
Xxxxxx
Xxxxx, XX 00000
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In
consideration of the mutual covenants and agreements herein stated, Xxxxxx
hereby leases to Lessee and Lessee hereby leases from Lessor solely for the
above purpose the premises designated above (the “Premises”), together with the
appurtenances thereto, for the above Term. The entire property of
which the premises are a part is hereinafter referred to as the
“Property”.
RENT
1.
Lessee shall pay Lessor of Lessor’s agent as rent for the Premises the sum
stated above, monthly in advance, until termination of this lease, at Lessor’s
address stated above or such other address as Lessor may designate in
writing.
CONDITION
AND UPKEEP OF PREMISES
2.
Lessee has examined and knows the condition of the Premises and has received
the
same in good order and repair, and acknowledges that no representations as
to
the condition and repair thereof have been made by Lessor, or his agent,
prior
to or at the execution of this lease that are not herein expressed; Lessee
will
keep the Premises including all appurtenances, in good repair, replacing
all
broken glass with glass of the same size and quality as that broken, and
will
replace all damaged plumbing fixtures with others of equal quality, and will
keep the Premises in a clean and healthful condition according to the applicable
municipal ordinances and the direction of the proper public
officers
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during
the term of this lease at Lessee’s expense, and upon the termination of this
lease, in any way, will yield up the Premises to Lessor, in good condition
and
repair, loss by fire and ordinary wear excepted, and will deliver the keys
therefore at the place of payment of said rent.
LESSEE
NOT TO MUSUSE; SUBLET; ASSIGNMENT
3.
Lessee will not allow the Premises to be used for any purpose that will increase
the rate of insurance thereon, nor for any purpose other than that hereinbefore
specified, and will not load floors with machinery of goods beyond the floor
load rating prescribed by applicable municipal ordinances, and will not allow
the Premises to be occupied in whole, or in part, by any other person, and
will
not sublet the same or any part thereof, not assign this lease without in
each
case the written consent of the Lessor first had, and Lessee will not permit
any
transfer by operation of law of the interest in the Premises acquired through
this lease, and will not permit the Premises to be used for any unlawful
purpose, or for any purpose that will injure the reputation of the building
or
increase the fire hazard of the building, or disturb the tenants or the
neighborhood, and will not permit the same to remain vacant or unoccupied
for
more than ten consecutive days; and will not allow any signs, cards or placards
to be posted, or placed thereon, not permit any alteration of or addition
to any
part of the Premises, except by written consent of Lessor; all alterations
and
additions to the Premises shall remain for the benefit of Lessor unless
otherwise provided in the consent aforesaid.
MECHANIC’S
LIEN
4.
Lessee will not permit any
mechanic's lien
or liens to be placed upon the
Premises or any building or improvement thereon during the term hereof,
and in
case of the filing or such lien Lessee will promptly pay same. If default
in
payment thereof shall continue for thirty (30) days after written notice
thereof
From Lessor to the Lessee, the Lessor shall have the right and privilege
at
Lessor's option of paying the same or any portion thereof without inquiry
as to the
validity thereof, and any amounts so paid, including expenses and interest,
shall be so much additional indebtedness hereunder due from Lessee to Lessor
and
shall be repaid to Lessor immediately on rendition of xxxx therefor. See
Paragraph 23 ofRider
INDEMNITY
FOR ACCIDENTS
See
Paragraph 43 of Rider.
NON-LIABILITY
OF LESSOR
6.
Except as provided by Illinois
statute,
Lessor shall not be liable for
any damage occasioned by failure to keep the Premises
in repair, nor for
any
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damage
done or occasioned by or from
plumbing, gas, water, sprinkler, steam or other pipes or sewerage or the
bursting, leaking or running of any
pipes, tank or plumbing fixtures, in, above, upon or about Premises or
any
building or improvement thereon nor or any
damage occasioned by water, snow or
ice being upon or coming through the roof, skylights, trapdoor or otherwise,
nor
for any damages arising from acts or neglect of any owners or occupants
of
adjacent or contiguous property.
See
Paragraph 50 of the Rider
7.
Lessee will pay, in addition
to
the rent above specified, all water rents, gas and electric light and power
bills taxed, levied or charged on the Premises, for and during the time
for
which this lease is granted, and in case said water rents and bills for
gas,
electric light and power shall not be paid when due. Lessor shall
have the right to pay the same, which amounts so paid, together with any
sums
paid by Lessor to keep the Premises in a clean and healthy condition as
above
specified, are declared to be so much additional rent and payable with
the
installment of rent next due thereafter.
KEEP
PREMISES IN
REPAIR
8.
Lessor shall not be obliged
to
incur any expense for repairing any improvement upon said demised premises
or
connected therewith, and the Lessee at his own expense will keep all
improvements in good repair (injury by fire, or other causes beyond Lesse's
control excepted) as well as in a good tenantable and whole as well as
lawful
requirements of all competent authorities in that behalf. Lessee
will, as far as possible, keep said improvements from deterioration due
to
ordinary wear and from falling temporarily out of repair. If Lesee
does not make repairs as required hereunder promptly and adequately, Lessor
may
but not need make such repairs and pay the costs thereof, and such costs
shall
be so much additional rent immediately due from and payable by
Lessee. Notwithstanding anything set
forth in
thisParagraph, Lessor
shall
be responsible for those items referred to in Paragraph 46
below
ACCESS
TO
PREMISES
9.
Lessee will allow Lessor
free
access to the Premises for the purpose of examining of exhibiting the same,
or
to make any needful repairs, or alterations thereof which Lessor may see
fit to
make and will allow to have placed upon the Premises at all times notice
of "For
Sale" and "To Rent, and will not interfere with the same. See
Paragraph 45 of Rider
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ABANDONMENT
AND
RELETTING
10.
If Lessee shall abandon
or vacate
the Premises, or if Lessee's
right to occupy the Premises be
terminated by Lessor by reason of Lessee's breach of any of the covenants
herein, the same may be re-let by Lessor for such rent and upon such terms
as
Lessor may deem fit, subject to Illinois statute; and if a sufficient sum
shall
not thus be realized monthly, after paying the expenses of such re-letting
and
collecting to satisfy the rent hereby reserved, Lessee agrees to satisfy
and pay
all deficiency monthly during (the remaining period of this
lease. Lessor
shall
use its best efforts to re-let the
demised premises.
HOLDING
OVER
11.
Lessee will, at the termination
of
this lease by lapse of time or otherwise, yield up immediate possession to
Lessor, and failing so to do, will pay
as
liquidated damages, for the whole
time such possession is with held, the sum of Four
Hundred
Dollars ($400.00)
per day; but the provisions of this
clause shall not be held as a waiver by Lessor of any right of re-entry
as
hereinafter set forth; nor shall the receipt of said rent or any part thereof,
or any other act in apparent affirmance of tenancy, operate as a waiver
of the
right to forfeit this lease and the term hereby granted for the period
still
unexpired, for a breach of any of the covenants
herein.
EXTRA
FIRE
HAZARD
12.
There shall not be allowed,
kept,
or used on the Premises any inflammable or explosive liquids or materials
save
such as may be necessary for use in the business of the Lessee, and in
such
case, any such substances shall be delivered and stored in amount, and
used, in
accordance with the rules of the applicable Board of Underwriters and statutes
and ordinances now or hereafter in force.
DEFAULT
BY LESEE
13.
If default be made in the
payment
of the above rent, or any part thereof, or in any of the covenants herein
contained to be kept by the Lessee, Lessor may at any time thereafter at
his
election declare said term ended and reenter the Premises or any part thereof,
with or (to the extent permitted by law) without notice or process of law,
and
remove Lessee or any persons occupying the same, without prejudice to any
remedies which might otherwise be used for arrears of rent, and Lessor
snail
have at all times the right to distrain for rent due, and shall have a
valid and
first lien upon all personal property which Lessee now owns, or may hereafter
acquire or have an interest in, which is by law subject to such distraint,
as
security for payment of the rent herein reserved,
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NO
RENT DEDUCTION OR SET OFF
14.
Lessee's covenant to pay
rent is
and shall be independent of each and every other covenant of this lease, Lessee
agrees that
any claim by Lessee
against
Lessor shall not be deducted from rent nor set off against any claim for
rent in
any action.
RENT
AFTER NOTICE OR SUIT
15.
It is further agreed, by
the
parties hereto, that after the service of notice, or the commencement of
a suit
or after final judgment for possession of the Premises, Lessor may receive
and
collect any
rent
due, and the payment of
saidrent
shall not waive or affect said
notice, said suit, of said judgment.
PAYMENTS
OF COSTS
16.
The party at fault will
pay and
discharge all reasonable costs, attorney's fees and expenses that shall
be made
and incurred by the other in enforcing by litigation
the covenants and agreements of this lease.
RIGHTS
CUMULATIVE
17.
The rights and remedies of the parties under this lease are cumulative.
The
exercise or use of any one or more thereof shall not bar either from exercise
or
use of any other right or remedy provided herein or otherwise provided
by law,
nor shall exercise nor use of any right remedy either waive any other right
or
remedy.
SUBORDINATION
19.
This lease is subordinate
to all
mortgages which may now or hereafter affect the
Premises.
PLURAL
- SUCCESSORS
20.
The words "Lessor"
and
"Lessee" wherever herein occurring
and used shall be construed to mean "Lessors" and "Lessees" in case more
than
one person constitutes either party to this lease; and all the covenant
and
agreements contained shall be binding upon, and inure to, their respective
successors, heirs, executors, administrators and assigns and may be exercised
by
his or their attorney or agent.
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SEVERABILITY
21.
Wherever possible each provision
of this lease shall be interpreted in such manner as to be effective and
valid
under applicable law, but if any provision of this lease shall be prohibited
by
or invalid under applicable law, such provision shall be ineffective to
the
extent of such prohibition or invalidity, without invalidating the remainder
of
such provision of the remaining provisions of this
lease.
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RIDER
THIS
RIDER is attached to and thereby made a part of that Lease dated the 11th
day of
April, 1991, by and between Pools Press, Inc., as Lessee. And High Tech
Partners, an Illinois Limited Partnership, as Beneficiary of Glenview State
Bank
T/U/T #961, as Lessor. The parties thereto hereby further agree as
follows:
22.
On
the date hereof, the Lessee shall deliver to the Lessor the sum of Eight
Thousand Two Hundred Ninety-Eight and No/100 Dollars ($8,298.00) to be held
by
the Lessor as and for a security deposit pursuant to the security deposit
shall
be returned to the Lessee by the Lessor upon the vacation of the premises
by the
Lessee or upon the closing of the purchase of the Property by the Lessee,
in
full compliance with the provisions and terms hereof without default by the
Lessee. In the event of any default by the Lessee or its failure to perform
any
of the terms and provisions hereof, the Lessee shall have the right to apply
any
or all of said security deposit to any damages suffered by the Lessor by
reason
of the actions of the Lessee, and to demand and receive immediate replacement
from Lessee of the amount so applied. The only interest or other incremental
earnings Lessee shall be entitled to by reason of the possession by the Lessor
of said security deposit shall be credit, to be applied to the rent due for
each
month of May during the term hereof, in an amount equal to one-half (1/2)
of the
total portion of the interest actually earned by Lessor on said security
deposit
for the period since the last such credit. Lessor shall not be responsible
to
pay any such interest share in cash or as a credit toward the rental for
any
other month. Provided, however, if at the time of the termination of this
Lease
pursuant to any of the provisions herof or the purchase of the Property by
the
Lessee, any of the Lessee’s said share of the interest has not been credited
toward a May rental, as set forth above, said uncredited interest amount
shall
be deemed part of the said security deposit and shall be disbursed in accordance
with the provisions of this Lease.
23.
In
addition to the provisions set forth in paragraph 4 of the form portion of
the
Lease, Lessee will not allow, permit, or cause any liens or encumbrances
of any
nature, to be placed upon the premises. In the event the Lessee does so allow,
permit, or cause any such lien or encumbrance to be placed upon the premises
in
violation hereof, Lessor shall have the same rights pertaining thereto as
are
set forth in said Paragraph 4. So Notwithstanding anything set forth in this
Paragraph or in Paragraph 4 above to the contrary, Lessee’s failure to satisfy
any such lien within thirty (30) days after written notice thereof from
Lessor to Lessee shall not be considered a default hereof if, within said
thirty
(30) day period, Lessee delivers to Lessor either; (A) a bond issued by a
written commitment from a title insurance company reasonably acceptable to
Lessor insuring Lessor against any loss or damage as a result of said
lien.
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24.
A.
If, at any time during the term hereof, thirty-three percent (33%) or more
of
the premises shall be taken by or pursuant to governmental authority or through
exercise of the right of condemnation or eminent domain, or if thirty-three
percent (33%) or more of the improvements located upon the premises are so
damaged by fire or other casualty so as to render, in the sole reasonable
judgment and discretion of Lessor, no portion thereof tenantable, effective
the
date of said taking or casualty this lease shall terminate without further
liability or obligation by either party hereto to the other. Lessee shall
have a
right to payment or award for damages to its leasehold interest caused by
such
taking or casualty, provided the claim for same is made separately and shall
in
no way delay any payment, award or settlement for Lessor’s damage.
B.
If, at any
time during the term hereof, less than thirty-three percent (33%) of the
premises are taken by or pursuant to governmental authority or through exercise
of the right of condemnation or eminent domain, or are damaged by fire other
casualty, and provided any necessary repairs or restoration can reasonably
be
completed within six (6) months from the date of such taking or casualty
Lessor,
at its sole reasonable discretion, to be exercised by written notice to Lessee
within thirty (30) days after the date of such taking or casualty, shall
elect
whether to repair and restore the premises or not. If Lessor elects to repair
and restore the premises, Lessor shall complete same as soon as reasonably
possible and this lease shall remain in full force and effect without abatement
of rent. If Lessor elects not to repair and restore the premises, or if such
repairs or restoration cannot be reasonably completed within six (6) months
this
Lease shall terminate as of the date of such election and the rent shall
be
prorated as of such date. Whether or not Lessor so elects to repair
or restore the premises, Lessee shall have a right to payment or award for
damages to its leasehold interest caused by such taking or casualty, provided
the claim for same is made separately and shall in no way delay any payment,
award or settlement for Lessor’s damage.
25.
Lessee agrees to carry and maintain at all times during the term of this
Lease
comprehensive general liability insurance in which Lessor shall be name as
an
additional insured with minimum limits of liability in respect of personal
injury of $1,000,000.00 for each person and $3,000,000.00 for each occurrence,
and as to property damage a broad form policy with minimum limits of
$1,000,000.00 for each occurrence. Such policy shall cover the entire demised
premises, including any sidewalks, streets and ways adjoining the premises.
All
insurance policies required by this Paragraph shall be obtained by Lessee
at
Lessee’s expense and shall be placed with companies satisfactory to Lessor and
qualified to do business within the State of Illinois, and Lessee agrees
to have
included in said policies a waiver of subrogation by the insurance
carrier. Said insurance policies shall provide for at least thirty
(30) days written notice to Lessor before cancellation. Copies of certificates
of the above policies of insurance shall be delivered to Lessor prior to
the
date Lessee takes possession of the demised premises.
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26.
Lessee shall at its sole cost and expense comply with all the requirements
of
all municipal, state, and federal authorities now in force or which may
hereafter be in force, pertaining to the premises. The final judgment of
any
court, or the admission of Lessee in any action or proceeding against Lessee,
whether Lessor be a party thereto or not, that Lessee has violated any such
ordinances or statutes in the use of the premises shall be conclusive of
that
fact as between Lessor and Lessee.
27.
Lessee shall, at its cost, keep and maintain the premises in good and sanitary
order, condition and repair. Lessee shall be fully responsible for, at its
cost
and expense, and shall perform in a timely manner, any and all maintenance
or
repairs pertaining to the interior of the premises and the utilities and
other
systems servicing same, whether located within the premises or within the
walls
of the premises, including, but not limited to, the electric, water, gas,
air
conditioning and heating, ventilating and air conditioning systems and
equipment, except as provided in Paragraph 36 below. If Lessee does not make
repairs as required hereunder promptly and adequately, Lessor may, but need
not,
after notice to Lessee pursuant to Paragraph 46 below, make such repairs
and pay
the costs thereof and such costs shall be so much additional rent immediately
due from and payable by Lessee to Lessor.
28.
If
the usage of the premises by the Lessee causes, directly or indirectly, any
increase in the premium paid by the Lessor for the fire and extended coverage
insurance policy maintained by the Lessor pertaining to the entire property
of
which the premises is a part thereof, the Lessee shall immediately upon receipt
of such written notice thereof from the Lessor, as verified in writing by
Lessor's insurance agent or broker, pay to the Lessor the amount of such
increase.
29.
In the
event of any conflict or contraction by and between the language of this
Rider
and the language of the form portion of this Lease, the language of this
Rider
shall control.
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30. The
base monthly rental due pursuant hereto during the term hereof shall be as
follows:
June
1,
1991 through and including May 31, 1992 - $4,149.17 per month.
June
1,
1992 through and including May 31, 1993 - $4,409.17 per month.
June
1,
1993 through and including May 31, 1994 - $4,690.83 per month.
June
1,
1994 through and including May 31, 1995 - $5,503.35 per month.
June
1,
1995 through and including May 31, 1996 - $5,817.50 per month.
31.
Notwithstanding anything herein to the contrary, so long as Lessee is not
in
default pursuant to the terms hereof, Lessee shall pay as base rent for the
month of June, 1991 the sum of $1,083.00 and shall not be required to pay
any
base rent for the period from June 1, 1992 through June 30, 1992. This rent
concession is granted by Lessor to Lessee in consideration for Lessee's
acceptance of the premises in "as is" condition, except as otherwise provided
herein. However, during said periods Lessee shall still be obligated to pay
those additional amounts of rent referred to in Paragraph 33 below and to
comply
with all other terms and provisions hereof, including, but not limited to,
Lessee's obligation to maintain and repair the premises pursuant to Paragraph
2,
8, 27 and 38 hereof.
32.
Seventy-five percent (75%)) of the alterations to be made to the demised
premises by the Lessee shall be paid promptly when due, out of the escrow
of
account referred to below, or by Lessee's additional funds if said escrowed
amount is not sufficient. Prior to commencement of any of the said alterations:
(1) Lessee shall submit to Lessor the plans and specifications pertaining
hereto, together with the identification the contractors to be
retained by Lessee to perform such work: and (2) shall deposit in escrow
not
less than seventy-five percent (75%) of the amount the reasonable cost of
said
alterations. Said escrow shall be established, at Lessee's option, with either
Lessor's attorneys or a title company as Escrowee. If the latter, the cost
and
expense of said escrow shall be paid solely by Lessee without contribution
thereto by Lessor. Payment of the last seventy-five percent (75%) of the
actual
cost of the said alterations shall be disbursed from said escrow upon
presentation by the contractor of properly prepared and properly executed
general contractor's sworn statements and waivers of mechanics lien in support
thereof. No such work shall commence unless and until Lessee has deposited
said
amount and Lessor has approved in writing said plans, specifications and
contractors. Further, Lessor shall have the right to demand from any and
all
said contractors evidence of the insurance coverages reasonably required
by
Lessor to protect Lessor, Lessee and the Property.
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33.
In addition to the base rent provided for the Paragraph 30 above, Lessee
shall
also pay to Lessor, immediately upon demand by Lessor or as hereinafter set
forth, fifty percent (50%) of the assessments and annual ad valorem real
estate
taxes levied against the Property during the term hereof or any extension
hereof, fifty percent (50%) of all reasonable premiums incurred by Lessor
for
fire and extended coverage replacement value insurance on the property, which
coverage Lessor will maintain, and fifty percent (50%) of all reasonable
costs
paid by Lessor for snow removal and landscaping services for the Property.
Lessor shall pay prior to the due date thereof all bills for taxes, insurance
premiums and other matters referred to above in the Paragraph. Said percentages
to other matters referred to above in this Paragraph. Said percentages to
be
paid by Lessee shall be considered as additional rent due hereunder. Upon
the
expiration of the term here of or any extension thereof, Lessor shall have
the
right to retain, out of the security deposit referred to in Paragraph 22
above,
an amount reasonably estimated by Lessor, based upon the prior year's tax
xxxx
and assessment notices for current or future years, to be sufficient to
guarantee payment by the Lessee of the Lessee's portion of any such percentages
unbilled as of the date of the termination of said term or any extension
thereof.
34
As part of its obligation with regard to the annual ad valorem real estate
taxes, as set forth in Paragraph 33 above, Lessee shall deposit with the
Lessor
each month, commencing June 1, 1991, during the term hereof and any additional
term hereof, a sum equal to one-twelfth (1/12) of fifty (50%) percent of
the
reasonably estimated, by the Lessor, based upon the prior year's tax xxxx
and
assessment notices for current or future years, annual ad valorem real estate
tax xxxx for the Property. Prior to the due date thereof, Lessor shall pay
said
real estate tax bills utilizing the funds deposited in said escrow to satisfy
Lessee's share thereof. However, if the amount so deposited in said escrow
is
not sufficient to satisfy Lessee's share of any such xxxx, Lessee shall,
within
ten days after written notice thereof by Lessor to Lessee, immediately pay
to
Lessor the amount by which Lessee's share of said xxxx exceeds the amount
previously deposited in said escrow by Lessee. Said escrowed amount deposited
by
Lessee shall be maintained by Lessor in an interest bearing account, earning
interest at not less than money market rates, and said interest shall accrue
to
the benefit of Lessee.
35.
Provided Lessee shall not then be in default of any of the terms and provisions
hereof, Lessee shall have the option, to be exercised, if at all, by written
notice to Lessor delivered to Lessor not later than December 1, 1995, to
extend
the term of this lease for an additional five (5) year period commencing
June 1,
1996. In the event that Lessee does so elect to extend said term hereof all
of
the terms and provisions of this lease shall apply to such extended term,
except
as follows:
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14
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a)
The base rent to be paid by Lessee to Lessor during such extended term shall
be
as follows:
June
1,
1996 through and including May 31, 1997 - $6,077.50 per month.
June
1,
1997 through and including May 31, 1998 - $6,350.99 per month.
June
1,
1998 through and including May 31, 1999 - $6,636.78 per month.
June
1,
1999 through and including May 31, 2000 - $6,935.44 per month.
June
1,
2000 through and including May 31, 2001 - $7,247.53 per month.
b)
On June 1, 1996 Lessee shall deliver to Lessor the sum of: $3,857.00 to be
held
by Lessor as additional security deposit pursuant to the terms and conditions
of
Paragraph 22 above.
36.
During the term hereof Lessor shall be responsible, at Lessor's sole cost
and
expense, for the following:
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a)
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Maintenance
of the roof and exterior of the building of which the demised premises
are
a portion thereof.
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b)
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Any
repair and maintenance required by the Village of Northbrook, Illinois
of
the parking lot fence located on the Property.
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c)
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Any
reasonably necessary repair or replacement of the paving in the
parking
lat and the underground sewer and water pipes located upon the
Property.
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d)
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Any
reasonable necessary repair or replacement of the exterior walls
of the
building of which the demised premises are a portion thereof.
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15
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Provided,
however, if any such repair, replacement or maintenance is required as a
result
of the negligence or acts of the Lessee or its agents, servants, employees
or
invitees, same, and the cost and expense thereof, shall be the responsibility
of
the Lessee and not the Lessor.
37.
Lessor represents and warrants to the Lessee as follows; (a) as of the date
of
possession of the demised premises by Lessee the heating, ventilating and
air
conditioning system and all other utility systems servicing the demised premises
shall be in proper working order and said heating, ventilating and air
conditioning system shall maintain, in the office area of the demised premises,
a constant interior temperature in the summertime of 75 degrees when the
exterior temperature is at 98 degrees and a constant interior temperature
of 70
degrees in the wintertime when the exterior temperature is at 0 degrees;
(b) to
the best of Lessor's knowledge and belief no violation of any of the applicable
ordinances and codes of the Village of Northbrook, Illinois currently exist
upon
the Property, and if any said violations do occur during the term hereof,
or any
extension thereof, which are not the result of the negligence or acts of
the
Lessee or its agents, servants, employees or invitees Lessor shall correct
same
with all due diligence and at Lessor's expense; and (c) to the best of Lessor's
knowledge and belief no violation of any applicable environmental law, statute,
ordinance or regulation exists upon the Property.
38,
During the term hereof and any extension hereof, Lessee shall maintain in
full
force and effect, at Lessee's expense, a preventive maintenance contract
with a
company of Lessee's selection, but subject to the prior written approval
of.
Lessor, for all of the heating, ventilating and air conditioning equipment
and
systems located upon the demised premises. Any repair or replacement of any
part
of the heating, ventilating and air conditioning system which reasonably
costs
in excess of $1,750.00 per unit per event shall be the responsibility of
Lessor
unless said repair or replacement is required because of the negligence or
action of the Lessee or its agents, servants, employees or invitees, in which
case said repair and replacement shall be the responsibility of Lessee at
the
cost and expense of Lessee, Any such repair or replacement which reasonably
costs $1,750.00 per unit per event or less shall be the responsibility of
the
Lessee.
39.
At all times during the term hereof or any extension of the term hereof Lessee
shall have the exclusive right to utilize twenty-four (24) designated parking
spaces upon the property of which the demised premises are a portion thereof.
Said parking spaces shall be as assigned to Lessee by Lessor, but shall include
one-half of the spaces along the east wall of the building of which the demised
premises are a portion thereof, which one-half shall include the second three
(3) spaces Located on the north east side of the building. Lessee shall have
the
right, at Lessee's sole cost and expense, to install identification markers
for
its said parking spaces, provided said markers are approved in writing by
Lessor
prior to such installation. Provided, however, Lessor shall have no
responsibility to enforce Lessee's "exclusive" right to said parking
spaces.
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16
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40.
At the time Lessee takes possession of the demised premises, Lessor shall
take
whatever action is reasonably necessary to explain to Lessee the operations
of
all systems located upon the demised premises and any other special features
which are reasonably required for the normal operation of the demised
premises.
41.
In the event Lessor applies for and receives a reduction in the assessed
valuation of the entire premises in which the demised premises are a portion
thereof for the purpose of ad valorem real estate taxes levied during any
portion of the term hereof, or any extension thereof, Lessee shall be entitled
to fifty (50%) percent of the benefit of the said reduction, but shall
immediately upon demand reimburse Lessor for fifty (50%) percent of the expenses
of obtaining said reduction, unreasonable appraisal fees or attorneys fees,
and,
further, such attorneys' fees shall be contingent upon the obtaining of such
reduction. Provided, however, if at any time while such reduction is still
in effect, neither the Lessee nor its nominee is the lessee of the premises
or
has purchased the Property, Lessee shall be entitled to a pro-rata refund
of any
portion of such reimbursement attributable to that period, while such reduction
is still in effect, after the Lessee or its nominee have ceased to be the
lessee
of the premises.
42.
No consents or approvals required by either party hereto pursuant to the
terms
and provisions hereof shall be unreasonably withheld or delayed.
43.
Each party hereto shall indemnify, defend and hold the other harmless from
and
against any penalty, damages or charges imposed for any violation of any
law or
ordinance on the demised premises caused by the negligence, action or omission
of it, or its agents, invitees, employees, or successors and, further, shall
indemnify, defend and hold the other harmless from and against any and all
loss,
cost, damage or expense arising out of or as a result of any occurrence on
or
about the demised premises causing injury to any person or property as a
result
of the negligence, action or omission of it or its agents, invitees, employees
or successors,
44.
The parties represent and warrant each to the other that the only real estate
brokers or salespersons who have been involved in this transaction and are
entitled to a commission as a result hereof arc Coldwell Banker and Xxxxx
&
Xxxxxx. The commission due to the Lessor's broker, Coldwell Banker, shall
be
paid by Lessor and any amount due to Xxxxx & Warner shall be paid out of
said commission by Coldwell Banker.
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17
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45.
Notwithstanding anything set forth in Paragraph 9 above, any "For Sale" sign
or
"For Rent" sign installed upon the demised premises by Lessor shall be
reasonable and shall not interfere with Lessee's business operations upon
the
demised premises. Further, so long as Lessee shall not be in default pursuant
to
any terms and provisions hereof, no "For Rent" sign pertaining to the demised
premises shall be installed upon, the demised premises by Lessor prior to
six
(6) months before the scheduled expiration of the term hereof or any extension
of the term hereof.
46.
Notwithstanding anything set forth in Paragraph 13 above, no default by Lessee
pursuant to the terms and provisions hereof shall be declared by Lessor unless
and until Lessor has delivered to Lessee ten (10) days, as to monetary default,
or thirty (30) days, as to non-monetary default, prior written notice of
its
intention to declare said default and Lessee has failed to cure said default
within said notice period.
47.
Lessor hereby grants to Lessee the option to purchase the Property at a price
and on a closing date as hereinafter set forth:
November
30, 1993 - $1,287,500.00
May
31,
1994 - $1,300,000.00
May
31,
1995 - $1,325,000.00
May
31,
1996 - $1,350,000.00
Such
option shall be exercised by Lessee, if at all, by delivering written notice
to
Lessor of such election to exercise not less than ninety (90) days prior
to the
closing date, but in no event earlier than one hundred twenty (120) days
prior
to the closing date. Between the date of the exercise of such option by Lessee
and the closing date, this Lease shall remain in full force and effect. Said
purchase of the Property by Lessee pursuant to the exercise of this option
shall
be in accordance with the following terms and provisions:
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18
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A.
The conveyance of the property to Lessee shall be subject to any lease, then
currently in existence, pertaining to the balance of the property not included
within the premises demised pursuant hereto.
B.
At the time that Lessee serves notice upon Lessor of its election to exercise
this option, Lessee shall also pay to Lessor the sum of $20,000.00 as part
of
the xxxxxxx money deposit pertaining to said purchase.
C.
As soon as reasonably possible after its receipt of said notice of election
to
exercise this option, Lessor shall deliver to Lessee a copy of any such other
lease.
D.
From the date of its receipt of such other lease, Lessee shall have a period
of
three (3) working days thereafter to review such other lease and to conduct,
at
Lessee's sole cost and expense, a mechanical and structural inspection of
the
entire Property. If, as a result of said review and inspection Lessee elects
to
cancel its exercise of this option, it shall serve such notice upon Lessor
prior
to the expiration of said three (3) working day period. In the event Lessee
fails to serve such notice of cancellation of said exercise of this option,
in
shall be considered to have waived its right to do so because of said review
and
inspection and to have approved such other lease and said inspection
results.
E.
If said exercise of this option is not so cancelled by Leasee as a result
of
said review and inspection, Lessor shall have twenty-one (21) days after
the
expiration of said three (3) working days period to have performed at Lessee's
expense, and to deliver a report to Lessee of, a "Phase I" environmental
audit
of the Property. If said audit discloses any unpermitted conditions not caused
by Lessee and Lessor notifies Lessee that it will, at Lessor's cost and expense,
correct same, the exercise of this option shall remain in full force and
effect
and the transaction shall proceed to closing on the closing date. Lessor
shall
have a reasonable time, both before and, if necessary, after the closing
date,
to complete said correction. Provided, however, if this Lessee's proposed
mortgagee will not proceed with the closing until said correction is completed,
the closing date shall be delayed until such completion and during such delay
this Lease shall remain in full force and effect. Provided, further, however,
if
the unpermitted conditions have been caused by Lessee, Lessor shall have
no
responsibility therefor and said unpermitted conditions shall not be a cause
for
Lessee to cancel or delay the closing date.
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19
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F.
If Lessor, at the time of delivery to Lessee of the report of said "Phase
I"
environmental audit, advises Lessee in writing that it will not correct any
unpermitted conditions, Lessee shall have a period of seven (7) days after
its
receipt of said report fails to notify Lessor In writing that it has elected
to
cancel its exercise of this option. If Lessee, during said seven (7) day
period,
falls to notify Lessor of its election to so cancel or elects not to cancel
said
exercise of this option, the purchase of the Property by Lessee shall proceed
to
closing and Lessee shall accept the Property subject to the conditions disclosed
by said "Phase I" environmental audit without any further liability or
obligation of the Lessor pertaining thereto,
G.
Unless, as a result of said "Phase I" environmental audit report and the
above
provisions pertaining thereto, Lessee has elected to cancel its exercise
of this
option, Lessee shall deliver to Lessor, as an additional xxxxxxx money deposit,
the additional sum of $20,000.00 on whichever of the following dates is
applicable:
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1.
|
If
the said "Phase I" environmental audit report discloses no unpermitted
conditions, or if Lessor notifies Lessee that Lessor will correct
any
unpermitted conditions, not less than two (2) days after Lessee's
receipt
of said report or notice.
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2.
|
If
Lessor elects not to correct any such unpermitted conditions, but
Lessee fails to notify Lessor of its election to so cancel or elects
not
to cancel said exercise of this option, not later than the expiration
date
of the seven (7) day period referred to in subparagraph F above.
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H.
In the event that Lessee does so elect to cancel said exercise of this option,
pursuant to the provisions of sub-paragraphs D and F above, any xxxxxxx money
deposit and all interest earned thereon shall be immediately refunded to
Lessee,
but all subsequent opportunities to exercise this option to purchase the
Property as set forth herein shall be also terminated and of no further force
and effect.
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20
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48.
If, at any time during the term hereof, Lessor receives, from a bonafide
third
party, an offer to purchase the Property which, Lessor elects to accept,
Lessor
shall give to Lessee notice thereof in writing. Lessee shall then have seven
(7)
days after its receipt of such notice within which to elect, by notice to
the
Lessor in writing, to purchase the Property pursuant to the same terms,
conditions and price as are set forth in said bonafide third party offer,
except
that the purchase price to be paid by Lessee to Lessor shall be $1,262,500.00
if
Lessee receives said notice from Lessor of said offer on or before August
31,
1992 and $1,287,500.00 if Lessee receives said notice from Lessor of said
offer
between September 1, 1992 and November 30, 1993. If Lessee receives said
notice
from Lessor of said offer after November 30, 1993, the purchase price to
be paid
by Lessee to Lessor shall be the purchase price set forth in said offer.
In the
event Lessee does elect to purchase the Property pursuant to said bona fide
third party offer, all terms and provisions of Paragraph 47 above shall be
null
and void and of no further force and effect. If Lessee, subsequent to such
notice from Lessor of said bona fide third party offer, fails to so notify
Lessor within said seven (7) days of its election to purchase or elects not
to
purchase the property, Lessor shall be permitted to sell the property pursuant
thereto to said bona fide third party Purchaser and, if Lessor does so, and
said
transaction is closed, the option set forth in Paragraph 47 above shall be
rendered null and void and of no further force and effect as of the expiration
of said seven (7) day period referred to in this paragraph.
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21
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49.
Lessee and its agents, employees and invitees shall not store, use, generate,
manufacture, release, dispose, or deposit any Hazardous Substances in or
about
the premises, unless same is done in full compliance with all applicable
statutes, laws, ordinances, regulations, and rules of any applicable
governmental body or agency and the policies and requirements of any insurance
company insuring the Property or any part thereof. Lessor shall give Lessee
prompt written notice of any claim by any person, entity, or governmental
agency
that a significant release or disposal of Hazardous Substances has occurred
on
the premises and shall forthwith remove, repair, clean up or detoxify any
Hazardous Substances from the premises whether or not such actions are required
by law. "Hazardous Substances" are defined as "Any substance or material
defined
or designated as hazardous or toxic waste, hazardous or toxic material,
hazardous or other toxic substance, or other similar term, by any federal,
state
or local environmental statute, regulation, or ordinance presently in effect
or
that may be promulgated in the future, as such statutes, regulations and
ordinances may be amended from time to time." Lessee shall indemnify, defend
and
hold Lessor harmless from and against any and all claims, demands, damages,
losses, liens, liabilities, penalties, fines, lawsuits, and other proceedings,
and costs and expenses, including, but not limited to, reasonable attorneys'
fees, arising directly or indirectly from or out of, or in any way connected
with, the violation of the provisions of this paragraph by Lessee, including
but
not limited to (A) any loss of value of the Property as a result of the
existence of such Hazardous Substance; (B) claims of third parities including
but not limited to governmental agencies, for damages; penalties, response
costs, and/or injunctive or other relief, and (C)
costs
of
removal and restoration, including but not limited to, fees of. attorneys
and
experts and costs of reporting the existence of any Hazardous Substances
to any
governmental agency,
50.
Notwithstanding anything set forth in Paragraph 6 above to the contrary,
Lessee
shall not be liable to Lessor for any such damage unless same is caused by
the
acts, negligence or omission of Lessee or its agents, employees or invitees
or
by the failure of Lessee to perform in accordance with the terms and provisions
hereof.
51.
Each
individual executing this Agreement on behalf of a party hereto, represents
and
warrants that he has the full right, potter and authority to do so, is hereby
binding, and intends to bind, the party ho represents to the terms and
provisions hereof, and shall proceed to cause the said party to do all that
which is required of it to perform in accordance with the terms and provisions
hereof.
52.
Lessee shall be permitted to record a Memorandum of this Lease, provided:
(A)
same does not disclose any of the financial terms of this Lease or any of
options contained herein; (B) said Memorandum is reasonably approved by Lessor;
and
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22
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(C)
said
Memorandum is executed prior to recordation by both parties hereto.
53.
If at
any time during the term hereof, or any extension hereof, the lease currently
in
effect pertaining to the East 1/2 of the Property is terminated and Lessor
receives, from a bona fide third party, an offer to lease the said East 1/2
of
the Property which Lessor elects to accept, Lessor shall give Lessee notice
thereof in writing. Lessee shall then have seven (7) days after its
receipt of such notice within which to elect, by notice to the Lessor in
writing, to lease the said East 1/2 of the Property pursuant to the same
terms,
conditions and rental as are set forth in said bona fide third party offer.
Provided, however, if Lessee elects not to so lease said East 1/2 of the
Property, pursuant to said notice from Lessor of said bona fide third party
offer, this right of first refusal granted to Lessee pursuant to this Paragraph
shall terminate and be of no further force and effect. In such event, Lessor
shall have the right to lease the said East 1/2 of the Property to said bona
fide third party upon the terms and conditions set forth in said bona fide
third
party offer, or to lease the said East 1/2 of the Property to any other bona
fide third party, whether at that time or at any future time, on the same
terms
and conditions or on any other terns and conditions.
54.
This
Lease, and the liabilities and obligations of the parties pursuant hereto,
are
contingent upon the satisfaction, on or before the dates specified herein,
of
the following conditions precedent:
A.
The approval by the Lessee of the lease currently in effect as of the date
hereof of the East 1/2 of the Property, if the Lessee notifies the Lessor
in
writing within three (3) days after the date hereof that said lease is not
acceptable to the Lessee, this Lease shall be rendered null and void and
any
security deposit previously deposited by the Lessee with the Lessor, and
Lessee's share of any interest earned thereon pursuant to Paragraph 22 above,
shall be immediately returned to the Lessee. If the Lessee fails to so notify
the Lessor in writing within that time of its disapproval, said lease shall
be
considered as having been approved by the Lessee and this Lease shall continue
in full force and effect.
B.
The approval by the Lessee of an inspection report as to the condition of
the
Property executed by an inspector or engineer of Lessee's choice and at Lessee's
sole cost and expense. If the Lessee fails to notify the Lessor in writing
within ten (10) days after the date hereof that said report is not acceptable
to
it, said report shall be considered as having been approved by Lessee and
this
Lease shall continue in full force and effect. However, if the Lessee does
so
notify
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23
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the
Lessor In writing within that time that said report is unacceptable to it,
then
Lessor shall have the right, within its sole discretion, to elect by written
notice thereof to the Lessee, to either correct the defective conditions
indicated in said report or to refuse to do so. If Lessor elects to refuse
to
correct said defective conditions, this Lease shall be rendered null and
void
and any security deposit previously deposited with the Lessor by the Lessee
shall be immediately returned to the Lessee, unless Lessee elect to waive
the
correction of said defective conditions by notice thereof in writing to Lessor
within three (3) days after receipt of Lessor's notice, in which latter event
this Lease shall continue in full force and effect. If Lessor elects
to correct said defective conditions, it shall do so with all due diligence
within a reasonable time and shall complete same on or before the date scheduled
for the commencement of the term hereof. Provided, however, if said defective
conditions can not be reasonably corrected on or before the date scheduled
for
the commencement of the term hereof, the term hereof shall commence on said
scheduled date unless said defective conditions will materially interfere
with
Lessee's business operations to be conducted upon the premises, in which
latter
event the date scheduled for the commencement of the term hereof and the
commencement of the payment of rent pursuant hereto shall be postponed until
the
completion of the correction of said defective conditions. If,
pursuant to the above provisions, said defective conditions have not been
completed on or before the date scheduled for the commencement of the term
hereof, but said term commences on said date, Lessor shall proceed to correct
said defective conditions with all due diligence. Provided, however if they
are
not so corrected on or before August 31, 1991, Lessee shall have the right,
to
be exercised, if at all, by written notice thereof to Lessor on or before
September 1, 1991 to terminate this Lease, thereby rendering same null and
void
without further liability by either party hereto to the other, except that
any
security deposit previously deposited by Lessee with Lessor, and Lessee's
share
of any interest earned thereon pursuant to Paragraph, 22 above, shall be
immediately returned to Lessee.
C.
The
approval by the Lessor of the Lessee's plans and specifications for alterations,
as referred to in Paragraph 32 above, within ten (10) days after the submission
of same to Lessor by Lessee, which submission shall occur not later than
ten
(10) days after the date hereof. If the Lessor fails to notify the Lessee
within
said period of its disapproval of said plans and specifications, said plans
and
specifications shall be considered as having been approved by Lessor. However,
if the Lessor does so notify the Lessee of its disapproval, then Lessee shall
modify same and Lessor and Lessee shall cooperate each with the other and
use
all best efforts and due diligence to resolve any differences pertaining
thereto
prior to the scheduled commencement date of the tern hereof, so that said
approval of Lessor can be granted prior to said commencement
date.
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24
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D.
The
approval by the Lessee within twenty-one (21) days after the date hereof
of a
"Phase I" environmental audit of the Property, which audit shall be obtained
by
the Lessee at the sole cost and expense of Lessee. If the Lessee fails to
notify
the Lessor in writing within that period that said audit is not acceptable
to
it, said audit shall be considered as having been approved by Lessee and
this
Lease shall continue in full force and effect. However, if the Lessee does
so
notify the Lessor in writing within that time that said audit is unacceptable
to
it then all of the terms and provisions of Subparagraph B of this Paragraph
54
with regard to the correction or non-correction of the defective conditions
referred to in the inspection report shall also apply to the correction or
the
non-correction of the defective conditions referred to in the said environmental
audit.
55.
Lessee shall indemnify, defend and hold Lessor harmless from any and all
damage
or injury to person or property resulting from the inspection and environmental
audit referred to in Paragraph 54 above unless said damage
or
injury is proximately caused by the Lessor or the Lessor's agents, employees,
or
invitees,
56.
Vacant possession of the premises shall be delivered by the Lessor to the
Lessee
on the date of the commencement of the term hereof. At the time of the delivery
of said vacant possession to the Lessee, all debris, abnormal dust, and rubbish
shall have been removed from the premises by the Lessor.
POOLS
PRESS, INC., Lessee
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HIGH
TECH PARTNERS, AN ILLINOIS UNITED PARTNERSHIP, AS BENEFICIARY OP
GLENVIEW
STATE BANK T/U/T #961, Lessor
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By:
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/s/Xxx
Xxxxxxx
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By:
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/s/
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