FIRST AMENDMENT TO LEASE, made this 4th day of October, 1996,
XXXXXXX X. XXXXX, TRUSTEE UNDER TRUST INDENTURE DATED AUGUST 30, 1968, having an
office at 00 Xxxxxxxx Xxxxxx, Xxxxxxxxxxx, Xxx Xxxxxx 00000, hereinafter called
the "Landlord"; and GLENGATE APPAREL, INC., a New Jersey corporation, having an
office at 000 Xxxxxxxxx Xxxxxx, Xxxxxxxxxxxx, Xxx Xxxxxx 00000, hereinafter
called the "Tenant".
WITNESSETH:
WHEREAS, the Landlord owns certain lands and premises in the
Borough of Mountainside, County of Union and State of New Jersey, which said
lands and premises are located at 000 Xxxxxxxxx Xxxxxx (the "Property"); and
WHEREAS, the Landlord has erected on the Property a one-story
office and warehouse building containing approximately 14,000 square feet,
hereinafter called the "Building"; and
WHEREAS, the Landlord and Tenant have heretofore entered into
a certain lease agreement dated November 14, 1994, hereinafter called the
"Lease", pursuant to which Tenant has leased approximately 10,000 square feet of
space, hereinafter called the "Original Leased Premises", all in accordance with
the terms and conditions of the Lease; and
WHEREAS, the Landlord has agreed to provide and lease to
Tenant additional space containing approximately 4,000 square feet, outside
dimensions to center line of common wall, hereinafter called the "Additional
Leased Premises" in the Building hereinabove referred to in accordance with the
terms and conditions hereinafter provided; and
WHEREAS, the Landlord and Tenant by this First Amendment to
Lease wish to modify, supplement and amend the terms and conditions of the Lease
to provide for additional rent and other Lease obligations as the same shall be
required and attributable to the Additional Leased Premises,
NOW, THEREFORE, in consideration of the sum of One ($1.00)
Dollar and other good and valuable consideration, the parties hereto covenant
and agree as follows:
1. Effective as of the Additional Commencement Date, as
hereinafter defined, the Leased Premises shall consist of the 10,000 square feet
of Original Leased Premises, together with the 4,000 square feet of Additional
Leased Premises, which total leased space shall comprise the entire Building
containing 14,000, hereinafter called the Revised Leased Premises, and Article
1.1 of the Lease is hereby modified accordingly.
2. The Lease term under the Lease as to the Additional Leased
Premises shall commence on January 1, 1997, hereinafter called the "Additional
Commencement Date", and shall expire as to the Revised Leased Premises on
December 31, 1997.
3. Commencing on the Additional Commencement Date,
Article 3.1(c) of the Lease is modified and amended as follows:
"(c) During the third year of the three (3) year
lease term, Tenant shall pay Base Rent in the amount of Seventy Six Thousand
and 00/100 ($76,000.00) Dollars per annum, in equal installments of Six
Thousand Three Hundred Thirty Three and 33/100 ($6,333.33) Dollars per month."
4. It is expressly understood and agreed that the Tenant
currently occupies the Additional Leased Premises under a Sublease Agreement
with American Aluminum Company, a New Jersey corporation, and that Tenant shall
continue to occupy the Additional Leased Premises and improvements as of the
Additional Commencement Date in an "as is" condition.
5. Effective as of the Additional Commencement Date Tenant's
Percentage for all Lease purposes shall be revised from 71.4% to 100% and
Article 1.2 of the Lease is hereby revised accordingly.
6. Subarticles 46(1) and (2) of the Lease are hereby
modified, supplemented and amended as follows:
"(1) There shall be paid annually minimum Base Rent
in the amount which is the greater of:
(a) Eighty Seven Thousand Nine Hundred
Seventy Nine and 50/100 ($87,979.00) Dollars per annum; or
b) The minimum Base Rent of Seventy Six
Thousand and 00/100 ($76,000.00) Dollars per annum as provided in Article 3
herein, hereinafter referred to as the "Original Base Rent", and adjusted as
hereinafter provided. Original Base Rent shall be increased, if applicable, in
the event of an increase in the Cost of Living Index based on application of the
Cost of Living formula which is hereinafter defined as follows:
At the inception of the three (3) year renewal term, there shall be compared the
"All Items" Index figures for the New York-Northeastern New Jersey average of
the "Consumers Price Index for All Urban Consumers" (revised CPI-U) (1982-84
equal to 100) published by the Bureau of Labor Statistics of the U.S. Department
of Labor (in this paragraph hereinafter referred to as the "Index") for the
first month of the original term of this lease with the first month of the three
(3) year renewal term. If there is an increase n the Index for the first month
of the three (3) year renewal period compared to the applicable Index for the
first month of the original term of this lease, said increase in Index figures
shall be used to determine the applicable percentage of increase which shall be
the basis for determining rent increase over the Original Base Rent in
accordance with the formula hereinbefore set forth, and as shown in the
following example:
EXAMPLE: If the Index figure for the first month of the basic
lease is 100 (the denominator) and the Index figure for the first month of the
applicable renewal term is 120, the increase in the Index figures will produce
an increase of 20%.
(120-100)
100
Applying the formula, 20% of $76,000.00 is equal to $15,200.00. Adding said sum
of $15,200.00 to the Original Base Rent of $76,000.00 produces an annual renewal
rent of $91,200.00 payable in equal monthly installments of $7,600.00.
Since the rent payment for at least the first month of the three (3) year
renewal term will have been paid prior to the determination of any applicable
rent increase in excess of the Original Base Rent payable for the three (3) year
renewal term, any increase for months already elapsed after commencement of the
three (3) year renewal term shall then be added to the next monthly rent payment
then becoming due and payable.
(2) Anything herein contained to the contrary notwithstanding,
it is expressly understood and agreed that the minimum rent during the renewal
period shall not be less than Eighty Seven Thousand Nine Hundred Seventy Nine
and 50/100 ($87,979.00) Dollars per annum."
7. Except as in the First Amendment to Lease provided, all
other terms and conditions of the Lease shall remain in full force and effect
and shall be applicable to the Additional Leased Premises upon the Additional
Commencement Date.
8. This Agreement shall be binding on the parties
hereto, their heirs, successors and assigns.
IN WITNESS WHEREOF, the parties have hereunto set their hands
and seals or cause these presents to be signed by its proper corporate officers
and caused its proper corporate seal to be hereunto affixed, the day and year
first above written.
WITNESS:
____________________________ /s/ Xxxxxxx X. Xxxxx
XXXXXXX X. XXXXX, TRUSTEE UNDER
TRUST INDENTURE DATED AUGUST 30,
1968
ATTEST: GLENGATE APPAREL,INC.
____________________________ By: /s/ Norman Britman
Xxxxxx Xxxxxxx, Treasurer
