EXHIBIT 10.26
LEASE
THIS INDENTURE evidences a lease agreement made and entered into this 12th day
of January, 1994, by and between the CITY OF XXXXXXX, OKLAHOMA, a municipal
corporation, as Lessor, and PRESTOLITE ELECTRIC INC., a corporation as Lessee,
the terms and conditions of which are as follows:
1. Lessor, in consideration of the agreements hereinafter set forth, does
by these presents lease unto Lessee the following described premises situated in
Xxxxxxx County, Oklahoma, to-wit:
LEGAL DESCRIPTION
XXX 0, 0, 0, 0, 0, 0, XXXXX 372, AND WEST 60 FEET OF GRANT AVENUE ADJACENT TO
XXXX 0 XXX 0 XX XXXX XXXXX 372, ALL IN THE CITY OF XXXXXXX, XXXXXXX COUNTY,
OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF,
AND
THE FOLLOWING PORTIONS OF THE VACATED STREETS COMPRISING THOSE PORTIONS OF
SOUTHWEST FIRST STREET, AND SOUTHWEST SECOND STREET LYING BETWEEN THE EAST
RIGHT-OF-WAY LINE OF XXXX AVENUE AND THE WEST RIGHT-OF-WAY LINE OF GRANT AVENUE,
AND THE VACATED ALLEY IN BLOCK 372.
for a term of two (2) years beginning upon occupancy by lessee or when the
building is ready for occupancy by lessee, whichever occurs first.
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2. Lessee, in consideration of the premises herein set forth, agrees to
pay Lessor as rental for the leased premises, the sum of Five Thousand.Dollars
($5,000.00) per month, payable in advance on the 1st day of each calendar month
during the term hereof.
3. Lessee shall, at the expiration of the initial term hereof, have the
option to renew this lease for ten (10) additional successive terms of two (2)
years each on the same terms herein specified by giving Lessor written notice of
its election to exercise such option at lease ninety (90) days prior to the
expiration of the initial term hereof or any renewal term hereof, provided,
however, that lease payments shall increase for each renewal in an amount equal
to the percentage increase in the Consumer Price Index from the beginning date
of this lease to the renewal date or dates thereof. It is understood that the
lease payments hereunder shall not decrease regardless of the changes in the
Consumer Price Index.
4. Lessee may, at its own expense, erect and construct on the leased
premises any improvements, including signs, billboards, fixtures or other
equipment which Lessee deems necessary to the efficient operation of its
business and may remove, at any time during the term of this lease or any
extension thereof, any such signs, billboards, fixtures or other equipment not
attached to any building erected on the leased premises by Lessee. Any building
erected on the leased premises by Lessee and all fixtures hereto by Lessee and
constituting a part of such building shall, at the termination of this lease or
any extension thereof, become the property of Lessor. In addition, any signs,
billboards, fixtures or other equipment not removed from the leased premises by
Lessee during the term of this lease or any extension thereof shall, if not
removed from the leased premises within thirty (30) days after the termination
of this lease or any extension thereof, become the property of Lessor.
Notwithstanding anything to the contrary
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contained herein, Lessor acknowledges and agrees that Lessee may, at the
termination of this lease or any extension thereof, remove any fixtures or other
equipment installed by Lessee at the leased premises, including, but not limited
to, any machinery, equipment, compressed air systems, HVAC systems or similar
items.
5. Lessee shall pay all special assessments due and payable on the leased
premises during the term of this lease or any renewal thereof before such
assessments become delinquent. In the event Lessee shall fail to pay such
special assessments, Lessor may, at its option, consider such failure a default
of the terms of this lease in which event Lessor shall have all remedies
available to them under the provisions of Paragraph 11 hereof. The parties
acknowledge that Lessor is a tax exempt municipal corporation and that property
owned by municipal corporations may be exempt from ad valorem taxes. If ad
valorem taxes are properly assessed, Lessee shall pay said taxes to the taxing
authority. If ad valorem taxes are not assessed, Lessee shall pay to Lessor and
assessment in lieu of taxes in a sum equal to the amount ad valorem taxes would
be if assessed. Lessor will distribute said funds in the same percentages to
the same entities ad valorem taxes are paid and shall acknowledge that such
payment are from Lessee.
6. Lessee shall pay all charges for utilities used in or on the leased
premises.
7. Lessee may assign this lease or sublet the premises with the written
approval of Lessor; but any such assignment or subletting of the premises shall
not, without the written consent of Lessor, relieve Lessee of any duties imposed
upon Lessee under the terms of this lease.
8. In the event the entire leased premises are taken by eminent domain,
this lease shall terminate and expire as of the date of such taking and Lessor
shall repay to Lessee any
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unearned rentals held by Lessor and shall reimburse Lessee therefore. In the
event the entire leased premises or any portion thereof are taken by eminent
domain, Lessee shall be entitled to a proportionate share of any condemnation
award grant in the amount which any unamortized leasehold improvements made by
Lessee bear to the total value of the leased premises.
9. In the event that part of the leased premises are taken by eminent
domain which taking would substantially destroy the business being conducted
thereon by Lessee, then the Lessee shall have the option of terminating this
lease or electing to remain in that portion of the leased premises which have
not been taken. In the event part of the leased premises are taken by eminent
domain and this lease is not terminated but continues, the rent payable
hereunder shall be reduced in the proportion that the square footage of the
remaining part of the leased premises bears to the square footage of the entire
leased premises leased.
10. Lessee shall keep and maintain the leased premises in a neat, clean
condition and shall comply with all laws and ordinances related to the use by
Lessee of the leased premises. Lessee shall not use the leased premises in any
manner which would constitute a nuisance under the laws of the State of
Oklahoma, nor will Lessee permit any other person to use the premises in such a
manner as to constitute a nuisance under the laws of the State of Oklahoma.
11. Lessor shall give Lessee written notice of any default by Lessee in
the payment of rent or the performance of any other obligation to be kept or
performed by Lessee; and if such default continues for a period of thirty (30)
days after receipt by Lessee of a written notice from Lessor specifying such
default, Lessor may thereafter, without further notice or demand, enter onto the
leased premises and take full and absolute possession thereof, with such re-
entry causing
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a forfeiture of the rent to be paid or the covenants to be performed by Lessee
hereunder for the full term of this lease and may thereafter lease or sublease
the premises for such rent as Lessor may reasonably obtain, crediting Lessee
with the rent so obtained after deducting the costs Lessor reasonably incurs by
such re-entry, leasing or subleasing; or the Lessor, at its election may
terminate this lease and re-enter and take full and absolute possession of the
leased premises free from any further right or claim by Lessee.
12. All rental payments and notices required or to be furnished hereunder
shall be mailed, addressed as follows, until such addresses are changed by
thirty (30) days notice in writing:
LESSOR: City Clerk, X.X. Xxx 000, Xxxxxxx, Xxxxxxxx 00000
LESSEE: Prestolite Electric Inc., Xxx 00 Xxxx, X.X. Xxx 0000, Xxxxxxx, Xxxxxxx
00000
13. In the event of an assignment to creditors by Lessee or the
institution of bankruptcy proceedings by or against Lessee, Lessor may, at its
option, cancel this lease and all rights thereunder and the right to possession
of the property shall immediately by such cancellation, pass to Lessor at its
option.
14. In the event either Lessor and Lessee shall be required to institute
any legal proceedings to enforce the terms of this lease, the losing party shall
pay all cost and expenses incurred in that proceeding, including a reasonable
attorney's fee for the prevailing party to be fixed by the Court enforcing the
terms of this lease.
15. The parties hereto acknowledge that the leased premises have
previously been zoned for Industrial use and lessee intends to use the property
for Industrial purposes. Should, for any reason, the property be adjudged by a
Court of competent jurisdiction to be unusable for
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Industrial purposes, the obligation of Lessee shall immediately terminate.
16. Lessor further agrees to make, at its expense, certain modifications
to the buildings located on the property as reflected in the architectural
drawing attached hereto as "Exhibit A" and made a part hereof by reference.
Further modifications will be made by Lessee. The specifics of the
modifications are not final at the time of this agreement but both parties agree
to continue to work in good faith toward further identifying and agreeing to
necessary modifications and as to which party shall make said modifications.
17. Lessee shall be responsible for all usual and routine maintenance on
the facility including interior and exterior walls, roof, flooring, mechanical,
electrical and plumbing. Lessor will be responsible for major repairs on
replacement such as roof replacement, or the replacement of unrepairable
flooring, mechanical, electrical and plumbing.
18. Upon termination of this lease, Lessee will surrender the leased
premises to Lessor in as good condition as they are at the commencement of this
lease, reasonable wear and tear incident to Lessee's business along excepted.
19. Lessee shall maintain, during the entire term hereof, general
liability insurance for injury to, or death of, persons, and damage to property
occurring in or on the leased premises and arising out of the negligence of
Lessee, its employees or agents. Such insurance shall be in such amount as may
be agreed upon from time to time between Lessor and Lessee. Lessee shall furnish
Lessor a certificate evidencing that such insurance is in effect. Further Lessee
shall insure the premises against casualty loss and Lessor shall be named Loss
Payee on said property in a sum of not less than $500,000.00. Said sum shall be
adjusted at each renewal date in an amount equal to the percentage increase in
the Consumer Price Index from the beginning of
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the lease date to the renewal date thereof. Lessee shall furnish Lessor a
certificate evidencing that such insurance in effect.
20. The terms and conditions of this lease shall extend to, and be binding
upon the heirs, executors, administrators, devisers, trustees, successors and
assigns of the parties hereto.
21. Lessor covenants that Lessee, upon payment of all rentals and other
amounts described in this lease and upon performance of all other obligations of
Lessee under this lease, shall and may peacefully have, hold and enjoy the
leased premises for the prescribed term of this lease.
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IN WITNESS WHEREOF the parties hereto have hereunto set their hands this
12th day of January, 0000
XXX XXXX XX XXXXXXX, XXXXXXXX
a municipal corporation
By: /s/ Xxxxxxx X. Xxxxxx
-------------------------
Xxxxxxx X. Xxxxxx, Mayor
ATTEST:
/s/ Xxxxx X. Xxxxxx
--------------------
Xxxxx X. Xxxxxx
City Clerk
PRESTOLITE ELECTRIC, INC.
By: /s/ Xxxxx X. Xxxxxxxxx
------------------------
Corporate Officer
ATTEST:
Corporate Secretary
Copies To: Prestolite Electric Inc.
0000 Xxxxxx Xxxxxx Xxxx.
Xxx Xxxxx, Xxxxxxxx 00000
Prestolite Electric Inc.
000 X.X. 00xx
Xxxxxxx, Xxxxxxxx 00000
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