Exhibit 4.(b)6
Construction and Lease Agreement
dated January 8, 2008
between Industrial Building Corporation Ltd. and Lumenis Ltd.
(English Translation)
Translation from the
Hebrew
Made and signed this
8th day of January 2008
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| Between: |
Industrial Buildings Corporation Ltd. |
Description of the Premises |
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of ▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇. |
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Herzliya, Tel: ▇▇-▇▇▇▇▇▇▇ |
Town: New Industrial Zone |
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(hereinafter: "the Company") |
Building no: |
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Agreement no: |
| And: |
Lumenis Ltd. |
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Public company No. 520042557 |
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of _____ St., Upper Yokneam Industrial Zone |
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Zip Code: 202069, Tel:▇▇ ▇▇▇▇▇▇▇ |
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By , I.D. |
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By , I.D. |
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(hereinafter: "the Lessee" |
| WHEREAS |
The
Lessee invited the submission of proposals for contracting by way of agreement to
purchase Land (as hereinafter defined) in order to set up a Building (as hereinafter
defined) by the Company in order to grant a lease of the Building to the Lessee, coupled
with a grant of an option to the Lessee to subsequently increase the volume of the
construction that will be carried out and leased to the Lessee; and |
| WHEREAS |
Following
the making of such proposal by the Company to the Lessee, a document called the
Principles of Agreement was signed between the parties, a copy of which Agreement is
attached hereto as Appendix H (hereinafter: “the Principles
of Agreement”); and |
| WHEREAS |
The
Lessee, by its signature to this detailed Agreement and subject thereto, agrees to accept
the proposal as it appears in the Principles of Agreement (Appendix H mentioned); and |
It is therefore declared,
stipulated and agreed between the parties as follows:
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(a) |
The
preamble to this Agreement constitutes an integral part thereof. |
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(b) |
The
headings to the clauses in this Agreement are for convenience only, and do
not form part of the Agreement. |
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(c) |
All
the Appendices and Addenda to this Agreement constitute an integral part
thereof. |
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(d) |
Upon
the execution of this Agreement, all the declarations and/or any
undertaking and/or representation or offers that have been declared,
taken or made by them prior to the execution of this Agreement, are
void ab initio. |
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The
following terms as used in this Agreement bear the following meanings: |
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"the
Land" - an area of approximately 11,785 square .meters., situated in the new industrial
zone of Yokneam, known as ▇▇▇▇▇ ▇▇, ▇▇, ▇▇ ▇▇▇ ▇▇ ▇▇ ▇▇▇▇▇▇ No. 83 in Block
11492. |
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“square
meter” – means a square meter of principal and service areas in the
building. The overall area of the Building will be approximately 16,000 sq.m., divided in
the following manner: some 12,000 sq.m., of the central building and approximately 4,000
sq.m., for a storage building. Upon conclusion of the Construction Works (as hereinafter
defined) a survey will be taken of the Building by a qualified surveyor to be agreed upon
by the parties. The survey will be made according to the directives contained in the
scheme attached as Appendix B-1 hereto. Pursuant to the metrage indicated by such survey,
the Lessee will pay the payments payable by it pursuant to this Agreement. In the event
of the construction effectively being greater to the extent of 3% or more than the volume
set out in the Shell Plan under this Agreement, the Lessee will pay the payments to which
it is subject according to this Agreement up to 3% in excess of that stated but no more,
without this serving to exempt either of the parties from any other obligation that is
imposed upon it in connection with the Premises (as hereinafter defined) pursuant to the
terms of this Agreement. |
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“the
Premises” – means the Building, and such addition or additional
construction that will be constructed and leased to the Lessee according to the terms of
this Agreement. |
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“the
Purpose” or “the Purpose of the Lease” is for industry, and in
addition, any other purpose that will be selected by the Lessee, provided it is permitted
according to the Town Building Plan. |
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“the
Land Purchase Cost” – means the aggregate of all the payments that are/will
be paid by the Company to the Israel Lands Administration in respect of the purchase of
the rights in the Land (rent/capitalization/permit fees) for all the building rights
according to the Town Building Plan applicable to the Land as well as all the sums that
will be paid by the Company to the Israel Lands Administration and/or to any party on its
behalf and/or to any third party for development including development levies and fees.
For the avoidance of any doubt it is clarified that VAT will not be included in any case
as part of such definition of the Land Purchase Cost. |
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“Constructed
Area” – means the total building percentages permitted for construction on
the Land according to the Town Building Plan applicable to the Land at the time the
application for the building permit for the Building is made. |
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“Ministry
of ITE”– means the Ministry of Industry, Trade and Employment. |
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“the
Site Plan” – means the site plan of the Land (Block and Parcel plan of the
sites (attached hereto as Appendix A). |
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“the
Building” – means two buildings having an aggregate area of some 16,000
sq.m., (gross) (12,000 sq.m., of main constructed area and some 4,000 sq.m., of storage)
that will be constructed on the Land according to the scheme and the specification
attached hereto as Appendix B-1 pursuant to the Plans that will be designed in accordance
therewith. |
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“▇▇▇” – means
the Israel Lands Administration. |
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"Local
Commission" - means the Yokneam Local Building and Planning Commission. |
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“Plans” – means
the Shell Plans and Interior Work Plans defined in clause 6 hereof. |
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“Company’s
Works” – means the Shell Works and Interior Works (as those terms are
hereinafter defined) that will be carried out by the Company pursuant to this Agreement,
as well as any work that is required in order to fulfil the Company’s obligation to
build the Building and lease the same to the Lessee in accordance with its undertaking
under this Agreement. |
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“The
Tribunal” – means the joint forum that has been appointed by the parties,
including the arbitrator who will be appointed by the Tribunal, if any, appointed
according to clause 10A hereof. |
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B. |
Appendices
and Addenda |
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The
Appendices and Addenda hereto constitute an integral part of this Agreement, for all
purposes, and are as follows: |
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Appendix
A – Plan of the Land. |
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Appendix
B-1 – Scheme and Specification. |
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Appendix
B-2 – Shell Plans (defined in clause 6 (b) hereof. |
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Appendix
C – Interior Work Plans (defined in clause 6 (i) hereof). |
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Appendix
E – Capital Rent. |
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Appendix
F – Additional Building Option. |
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▇▇▇▇▇▇▇▇
▇, ▇-▇ – G-4 – Insurance and Insurance Certificates. |
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Appendix
H – Principles of Agreement. |
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Appendix
I, (I-1 + I-2) – Form of Lessee’s Guarantee and Guarantee of the Company. |
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Appendix
J – Form of Power of Attorney to Strike out the Registration of the Lessee’s
Rights. |
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Addendum
No. 1 – Air Conditioning Installations. |
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Addendum
No. 2. – Parking Places. |
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In
the event of any deviation and/or inconsistency between the provisions contained herein
and that stated in any of the Appendices and/or the Addenda attached hereto, the
provisions contained in this Agreement will prevail. |
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(a) |
The
Company undertakes to proceed as speedily as possible in its purchase of the
rights in the Land, and will not be released from its undertaking to
purchase the rights in the Land unless it will be proved that the
purchase of the rights has been prevented due to factors beyond its
control, notwithstanding the fact that it has made every reasonable
effort to carry out the purchase. |
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If
the Company is constrained from purchasing the rights in the Land for reasons that are
beyond its control and notwithstanding its efforts as aforesaid, the Company will give
notice to that effect to the Lessee within 90 days of the date of the execution of this
Agreement, in which case either party to this Agreement will be entitled to notify the
other of its wish to rescind this Agreement within 14 days of delivery of the Company’s
notice and the same will not be deemed to be any breach by any of the parties and neither
party to the Agreement will have any claim whatsoever against the other in connection
with the rescission thereof and/or in connection with its costs in respect of this
Agreement. If, notwithstanding the foregoing, the parties will agree not to rescind this
Agreement, the same will be subject to their reaching agreement on the implications of
the delay on the time schedule. |
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As
regards the Purpose of the Lease, the Company will use every reasonable effort to
minimise any restriction on the part of the ▇▇▇ and the consent of the ▇▇▇ to be granted
to the uses permitted according to the Town Building Plan, and for the ILA’s consent
to be granted to subletting also. In the event of the consent of the ▇▇▇ to the matters
mentioned or any of them not being received, notwithstanding it being proved that
reasonable efforts have been made as aforesaid, the Company will give notice to that
effect to the Lessee, and the Lessee will be entitled to decide whether it is waiving its
right on such matters or is rescinding the Agreement, in which case the same will not be
deemed to be a breach of the Agreement by any party, and each party will bear its own
costs and have no claim whatsoever against the other. |
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(b) |
It
is to be clarified that the acquisition by the Company of the Land mentioned
is being made based on the Lessee’s declarations set out in
clause 5 hereof. It is further agreed between the parties that the
Lessee will co-operate with the Company to the extent reasonably
required vis-à-vis the Israel Lands Administration and/or the
local authority and/or the Ministry of ITE and/or the planning
commissions and/or any other competent authority for purposes of
acquiring the rights in the Land as mentioned and/or with the object
of promoting the construction of the Building to which this Agreement
relates, including: presenting the Lessee’s needs and/or
clarifying the Purpose of the Lease as well as all reasonable
co-operation vis-à-vis such other parties as will not impose
upon the Lessee any financial liability whatsoever in real terms. |
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(c) |
It
is agreed between the parties that should it transpire that the Land Purchase
Cost will exceed $100 per sq.m., of constructed area, i.e. the sum of
$2,760,000 (calculated according to 27,600 sq.m., of constructed
area) the Company will give notice to that effect to the Lessee prior
to its purchasing the Land. |
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In
the absence of such notice by the Company to the Lessee, it will be entitled to the
component of the Land costs in the Capital Rent according to the actual purchase cost or
according to $100 per sq.m., whicheveris the lower. |
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In
the event of the Company giving the Lessee such notice, the Lessee will be entitled to
terminate this Agreement by written notice to the Company within 14 days of the date of
such notice by the Company regarding the Land Purchase Cost and in such a case, neither
party will have any claim and/or demand against the other in respect of this Agreement,
including with respect to the costs incurred by such party to the Agreement up until the
date of such rescission. |
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It
should be clarified that if the Lessee has failed to give notice of rescission of the
Agreement in writing prior to the execution by the Company of a development/lease
agreement respecting the site, notwithstanding the fact that it has received such notice,
the Lessee will forfeit such right by it to rescind the Agreement, and the Rent will be
paid in accordance with the actual purchase price. |
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In
the event of the Lessee notifying the Company of its wish to rescind this Agreement in
such circumstances, the Company may demand from the Lessee to pay the Rent calculated
according to $100 per sq.m. of constructed area in respect of the Land Purchase Cost in a
manner whereby it will bear the additional cost exceeding $100 per sq.m. of constructed
area and in such a case, the Lessee will have no such right to rescind the Agreement. |
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(d) |
The
Company undertakes to register the Lessee’s leasehold right according
to this Agreement in any register maintained by law, including the
Land Registry and the ▇▇▇, to the extent it is possible, if and when
the Lessee so requests. |
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On
the execution of this Agreement, the Lessee will deposit in escrow with the Company’s
lawyer, Advocate ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (hereinafter: “the Trustee”) an
irrevocable power of attorney signed by the Lessee to strike out the registration of the
Lessee’s rights mentioned. The form of the power of attorney is attached hereto as
Appendix I. The Trustee will be entitled to use such power of
attorney only where possession thereof is no longer in the hands of the Lessee and only
after prior notice in writing will have been given to the Lessee 30 days before such
power of attorney is used. |
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(e) |
If,
notwithstanding the Company’s efforts mentioned in sub-clause (a)
above, the Company will be unable to obtain from the ▇▇▇ the rights
in all of the Land, but only in part thereof, the Company will give
notice thereof to the Lessee in writing and the Lessee will have the
right, in such a case, to give notice in writing within ten days of
the Company’s notice that it wishes to rescind this Agreement
and in such a case, the Agreement will be rescinded and neither party
will have any claim against the other and each party will bear its
own costs expended for the purpose of this Agreement. In the absence
of such notice by the Lessee, this Agreement will be in full force
and effect with respect to such part of the Land in which the Company
will have succeeded to acquire rights, and with respect to the
Building rights attached to such Land, mutatis mutandis. |
| 4. |
Examination
of the Land |
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The
Company declares that it has examined the status of the rights in the Land, the planning
condition of the Land and the applicable plans with respect to the Land and for purpose of
purchasing the rights therein at any authority and/or institution that is relevant
thereto, including at the offices of the Land Registry, the ▇▇▇, the Ministry of ITE, the
local authority, the planning commissions and the offices of the municipal company and the
like. The Company declares that the Lessee has no responsibility in such matters,
including with respect to any data or representation that has been made by it, to the
extent such representations have been made. If at any stage whatsoever it will become
apparent that it is not possible to build on the Land for any reason that could not have
been discovered on reasonable prior examination, such as following the discovery of
antiquities during the course of the work, or following a prohibition resulting from the
discovery of a potable water reservoir, that give rise to a building prohibition by law,
then this Agreement will be deemed to be void ab initio, and in such a case neither party
will have any claim against the other. It is clarified that ground water is not deemed to
be such a reason. |
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The
Lessee declares that it has examined Appendix A and the permitted uses according to the
Town Building Plan, and will have no claims in such matters. |
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The
Lessee declares that it has examined the Plans attached hereto and found the same to be
suitable for its purposes. |
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The
parties declare that they have received all the approvals that they need for the purpose
of entering into this Agreement and are empowered and entitled to enter into this
Agreement under any applicable law. |
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The
parties declare that they have the financial ability and resources to comply with the
terms and conditions herein contained. |
| 6. |
Planning
of the Building |
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(a) |
The
Company hereby undertakes to construct the Building on the Land in
accordance with the “Scheme and Specification” attached as
Appendix B-1 hereto, and the Plans defined and mentioned
below. |
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(b) |
The
Company will prepare detailed construction plans of the shell of the
building in accordance with the “Scheme” and the
Specification attached as Appendix B-1 hereto.
These plans will, after preparation thereof be presented to the
Lessee for approval, the latter being bound to grant its approval
thereto if they accord with the Scheme, and upon the approval thereof
they will be attached hereto as the final plans and constitute Appendix B-2 to
this Agreement, and in accordance therewith the Company will proceed
to obtain the building permit (in this Agreement called: “the
Shell Plans” and “the Shell Construction Works”). |
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(c) |
The
responsibility for obtaining the building permit and any permit that is
required by law in order to enable the Lessee to inhabit the building
is imposed entirely on the Company. For the removal of any doubt, a
business management license or license for signage or any license
pertaining to the Lessee’s business does not attach to the
Company. |
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(d) |
The
Lessee undertakes to furnish the Company with all its
remarks and/or approval on and to the Plans within seven working days
of receipt thereof. The absence of any remarks by the Lessee to the
Plans by such date will be deemed to be the Lessee’s approval to
the Plans, unless it requests an extension, in which case the date of
delivery under this Agreement will be deferred for the same duration,
or less, depending on the effect thereof on the time schedule.
Disagreements in this respect will be determined by the Tribunal. |
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(e) |
For
the avoidance of any doubt the Lessee declares that approval of the Plans by
it will be deemed for all purposes to be a declaration of the
suitability of the Plans for its purposes. |
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(f) |
If
the Lessee has made comments on the Plans that deviate from the Scheme
attached as Appendix B-1 hereto, or made additional remarks or
retracted the same as stated in sub-clause (g) hereof, the provisions
contained in clause 8(b) hereof will apply. |
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(g) |
The
Lessee will not be entitled to retract the approval it has given or revert
to any preceding stage and make other remarks that it forgot to make
within the time period prescribed above. |
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(h) |
If
the Company has made a rectification following a remark by the Lessee, the
Lessee may make no further remarks on the same matter as rectified if
rectified according to the remark, and if it has so acted then any
delay ensuing therefrom will affect the time schedule according to
sub-clause (d) above. |
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(i) |
The
Lessee will furnish to the Company, within 75 days of the date of receiving
the final Shell Plans and approval thereof, the functional design of,
or part of the Premises (hereinafter: “the Functional Planning”).
All the decisions relevant to the Functional Design and the standard
of finish according to the design and on any matter relating to the
Interior Work design will be at the Lessee’s sole determination,
subject to the engineering constraints resulting from the Shell
Plans. On the basis of the Functional Design, the Company will
prepare detailed plans for the interior works that will be carried
out by the Company in the Building to adjust the same to the Lessee’s
requirements that will be attached as Appendix C hereto
(hereinafter: “the Interior Work Plans” and
“the Interior Works”). |
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(The
Shell Plans and the Interior Work Plans will be collectively called hereinafter: “the
Plans”). |
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(j) |
Disputes
in relation to this clause will be determined by the Tribunal. |
| 7. |
Construction
of the Building Including the Interior Works |
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(a) |
The
Company will independently and/or through third parties on its behalf carry
out all the “Company’s Works” as defined in the
definitions clause, subject as provided in sub-clause (b) hereof with
respect to the Interior Works. It is clarified and agreed that the
Company will bear full and overall responsibility for implementing
all the Works and delivering possession of the Building in complete
form as a turnkey project both with respect to Works that will be
carried out by it and also the Works that will be carried out by
sub-contractors or others, even if implementation of the work will
require the use of materials, items or quantities that exceed the
Company’s estimates. |
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(1) |
The
Interior Works will be carried out by means of sub-contractors, consultants,
planners and inspectors who will be selected by the Company in conjunction with
the Lessee by means of a tender(s) unless otherwise agreed by the parties
jointly and in writing, overall, or in relation to a particular subject. In any
event, the taking of bids and method of determining the prices and engagements
with the sub-contractors will be completely “transparent” to the
Lessee. |
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(2) |
The
Lessee may request the Company within the framework of the Interior Works
design to carry out Interior Works only in parts of the Building, but not in
the entire area thereof. |
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(3) |
The
extent of the investment in the Interior Works will not exceed an amount in
shekels equal to $400 per sq.m. on average (plus VAT), but it is agreed that a
deviation to the extent of 10% (i.e.) up to $440 per sq.m. plus VAT) will not
be deemed to be a breach on the part of the Lessee. Notwithstanding that stated
it is clarified that the Lessee will pay the component of the “Rent in
respect of the Interior Works” prescribed in Appendix E below pursuant to
the Company’s effective investment costs in the Interior Works according
to that stated up to the amount of $440 per sq.m. (plus VAT). |
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Where
the Lessee has requested to invest more than $440 per sq.m. (plus VAT) in the Interior
Works – the Lessee will directly bear the full amount of the additional investment
required for such purpose. |
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(4) |
The
“Interior Works” for the purpose of calculating the component of the
“Rent in respect of the Interior Works” in the Capital Rent set out
in Appendix E hereto are only the finishing/interior works and will in no way
include any overheads and/or overheads of a main contractor for either guarding
or for electricity, water, cleaning, insurance, co-ordination of
sub-contractors and transportation assistance – and these will not be
charged to the parties carrying out such works but to the Company and/or its
main contractor, and only the cost of the Works as effectively paid to the
contractor will be that which will be used to calculate the component of the
Rent in respect of the Interior Works mentioned in Appendix E, the amount
specified in Appendix E being calculated according to a multiple of every $100
of investment in the Interior Works. The contents of this clause will be made
clear to the sub-contractors by the Company in good time and prior to receiving
their proposals for carrying out the Interior Works, with the object of
cheapening to the extent possible the costs of the Interior Works. If the
Company decides to take a contractor who will provide main contractor services
to all the parties carrying out the Interior Works, payment for such main
contractor’s services will not be included in the cost of the Interior
Works for the purpose of determining the component of the Rent in respect of
the Interior Works. For the removal of any doubt, if the main contractor
personally effects Interior Works with the consent of the Lessee or is selected
in such a tender, then each payment that will be paid to it for such Works is
included within the framework of the “Interior Works” for the purpose
of calculating the Rent in respect of the Interior Works. |
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(5) |
The
Company will furnish the Lessee with a breakdown of all the expenses that it
has incurred within the framework of the investments in the Interior Works
according to the definitions contained in this Agreement, from which the
component of the Capital Rent pertaining to the Interior Works is to be
derived, such Works being itemized according to type, including a certificate
from the Company’s accountant in this connection, to the extent the Lessee
will request this. The Lessee will examine such breakdown and the conformity
thereof with the results of the tenders/price proposals. |
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(c) |
Differences
on any matter pertaining to this clause will be submitted to the
Tribunal for determination, as prescribed in this Agreement. |
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(d) |
The
Lessee may, at its own expense, provide its own inspector of all the
Company’s works or part thereof, at its discretion, at any time
whatsoever. To the extent an inspector is appointed by the Lessee,
the Lessee’s inspector may be a party to all the planning and
construction implementation processes. |
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Clarification:
The Company’s obligations and responsibility in all aspects relating to the planning
and implementation of the construction of the Building and all its works under this
Agreement, including its obligations and liability as owner and constructor of the
Premises, will in no way be diminished in consequence of the Lessee’s involvement in
the planning and performance matters, to the extent there is such involvement, including
by providing the Scheme and the specification and the requirements in regard to the
Interior Works, including by the Lessee’s inspector, all as detailed in and subject
to this Agreement, and such involvement will not impose upon the Lessee or upon its
inspector any liability towards the Company or towards any other party. |
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It
is further hereby clarified for the removal of any doubt that the Company will be
entitled to object to any requirement of the Scheme or other requirement of the Lessee
and/or its inspector that is contrary to any law or the building permit or which creates
any nuisance or security risk or that is impossible from the technical standpoint. |
| 8. |
Modifications
and additions until Form 4 for the Building is received |
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(a) |
The
Lessee will turn to the Company in writing with every request to modify the
Plans or make any additions that are not detailed in this Agreement.
Modification and/or addition for this purpose means a modification in
any item contained in the Plans and/or addition and/or the full or
partial cancellation of any item therein. In general the Company may
not refuse to approve the requested modification and/or addition,
subject to modification of the consideration and time schedule
necessitated by the application, save for good reasons that do not
pertain to the time schedule and/or the consideration, that justify a
refusal to make such modification (hereinafter: “the
Modification”). The Modification/addition mentioned must
comply with the requirements of any applicable law. If, for the
purpose of carrying out the Modifications, it is necessary to make an
application for a building permit, the Lessee will similarly bear
such costs and will effect payment thereof. |
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(b) |
The
parties will prepare and sign a separate document respecting any
Modification in which will be determined by agreement the nature
thereof and ramifications thereof on the time schedule and the
financial accounting between the parties as set out below in this
Agreement. Should the parties fail to reach overall agreement on such
matters, or on the question as to whether there is justification for
the Company’s refusal to effect the Modification, the
differences will be determined by means of the Tribunal and the
outside arbitrator specified in clause 10A hereof. |
| 9. |
Additional
Building Option |
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(a) |
The
building delineated according to this Agreement is in accordance with the
Scheme and the specification constituting Appendix B-1 hereto, and
according to the Plans as hereinbefore defined (hereinafter: “the
Original Building Quantum”). |
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(b) |
Notwithstanding
the foregoing, as the Original Building Quantum does not exploit all
the building rights in the Land, it is agreed between the parties that the
right is conferred on the Lessee to instruct the Company to effect
additional construction to the extent there will be such
(hereinafter: “the Additional Building Option”) that
will fully or partially, at the Lessee’s discretion and
determination, exploit the additional building rights on the Land,
whether such rights are existing or are additional in the future. For
the removal of any doubt it is clarified that if, due to any reason
that is not dependent on the Company, such as the failure to exploit
the building rights on due date, the ▇▇▇ will revoke the rights that
the Company acquired in that part of the Land that has not been
exploited, notwithstanding a reasonable effort made by the Company to
prevent this, this will not constitute a breach of the Agreement on
the part of the Company, and the Additional Building Option granted
to the Lessee as stated in this Agreement will only relate to the
additional construction that is possible on the Land with respect to
which the Company will have rights for the time being. |
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The
Lessee may exercise the Additional Building Option provided the additional building area
requested by it will be not less than 2,500 sq.m., and on the further condition that if
it does not wish to use all of the building rights, the building will first be carried
out on the floors above the storage building (at least one floor) and subsequently for
constructing an additional structure on the Land. Subject as provided, the Lessee has a
right to revert to requesting additional construction until the rights have been fully
exploited, but will not be entitled to request this after the expiration of the
Additional Building Option period. |
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(c) |
The
right is reserved to the Lessee not to instruct exploitation of additional
building rights at all, and should it decide to waive exercise of the
Additional Building Option mentioned, it will immediately notify the
Company of such waiver so as to enable the Company if it wishes, to
use such rights itself. In such a case, the Lessee agrees that the
Company may exploit the additional building rights on the Land or on
other sites and it agrees to additional construction on the Land that
will be carried out on behalf of another tenant, all provided the
construction by the Company will not unreasonably affect the Premises
or the Lessee’s ability to continue to use the same as it did
previously. The Company will act in such a way that the works for
adding constructed areas will not affect any more than is reasonably
necessary the Lessee’s use of the Premises. (Differences arising
in this connection will be determined by the Tribunal). |
| |
(d) |
The
Lessee may instruct the exploitation of the building rights or give notice
of its waiver of the Option in respect of all or part of the
additional building rights, that is, that the Option will only be
exercised with respect to part of such rights. |
| |
(e) |
The
Additional Building Option is conferred upon the Lessee for the duration of
the Lease Term only and during the first two years of the first
Option Term, to the extent it is exercised (that is, during the first
twelve years of the lease only). |
| |
(f) |
Should
the Lessee wish to exercise the Additional Building Option or part
thereof, it will notify the Company by not later than six months
before the expiration of the Option Term (as defined in sub-clause
(e) above that is, not later than eleven and a half years after the
commencement of the Lease. |
| |
(g) |
It
is clarified that on the expiration of the first twelve years of the Lease
and/or in the event of the Lessee electing to waive such Option
and/or in a case where the Lessee has not exercised the Additional
Building Option on due date, whichever is the circumstance, the
Lessee undertakes not in any way to prevent, directly or indirectly,
nor make any opposition to any plan that will be submitted by the
Company to add building areas on the Land, either by way of a Town
Building Plan or plan for a building permit or any other plan, unless the
construction in question would unreasonably affect the Premises or
the use thereof. The Company will act in such a way to ensure that
the works for the additional building areas will not reasonably
affect the Lessee’s use of the Premises more than necessary. |
| |
(h) |
Without
derogating from the foregoing, the remaining terms of the Additional
Building Option are as defined in Appendix F to
this Agreement. |
| 10. |
Date
of Conveying the Building/Premises to the Lessee |
| |
(a) |
The
Company hereby undertakes to complete all its undertakings under the
Agreement and convey the Building to the Lessee’s use by not
later than 31 December 2009, being fully constructed and complete and
usable in accordance with the provisions of this Agreement, the use
therein as stated being permitted under any applicable law
(hereinafter: “the Completion Date of the Company’s Works/Agreed
Conveyance”). It is expressly stated that the Agreed
Conveyance Date will be subject to changes in the time schedule that
have been made according to the provisions of this Agreement, and subject
to the agreements reached between the parties in all aspects relating
to Modifications during the course of construction, to the extent
these will come about as stated in clause 8(b) above. |
| |
(b) |
With
the approach of the conclusion of the Company’s Works, including
where, with the Lessee’s consent, the Agreed Conveyance Date has
been brought forward, the Company will notify the Lessee 120 days (4
months) in advance and in writing of the estimated date on which
possession will be conveyed, and advance written notice of 30 days
will be given by the Company to the Lessee of the precise date. The
effective date of conveyance of possession in the Premises to the
Lessee following the Company’s notice mentioned will be herein
referred to as “the Possession Date”. |
| |
One
month before the Possession Date, the parties’ representatives will examine the
Premises and a memorandum will be prepared and signed by the parties setting out all the
repairs and the supplementary works that are to be carried out at the Premises, if any.
To the extent there will be disagreement as to whether any particular matter constitutes
a defect, each party will note its position and the matter will be submitted for
determination according to clause 10A. The Company will make the repairs and the
supplementary works by the Possession Date. |
8
| |
(c) |
The
Lease Term will commence from the actual Possession Date and the Lessee will be
bound to pay the Company the Rent and all the other payments that are imposed
upon it in accordance with this Agreement. |
| |
(d) |
(1) |
It is agreed and stipulated between the parties that conveyance of possession
in the Premises will be deferred if the Company has proved that it has been
prevented from fulfilling of its undertakings on time following a force majeure
or state of war or general mobilisation or strike or general lock-out in the
economy or total national shortage of raw materials, provided the Company will
have taken reasonable measures to prevent or limit the deferral, subject to the
Company having given written notice to the Lessee of the delay and the nature
thereof. |
| |
(2) |
In
the event of a delay in construction for the reasons set out in the sub-clause
d(1) above, or any of them, the Possession Date will be deferred for a period
equivalent to the prolongation of the work relating to the construction of the
Building or the Premises and/or during which the work has not been conducted in
the usual way for such reason or reasons, as appropriate, and the Company will
not be deemed to in such a case to be in breach of its undertakings under this
Agreement. |
| |
(e) |
If
and to the extent the Possession Date is deferred for the reasons set out
above and/or due to a breach of any of the terms of this Agreement by
the Lessee and/or following written agreement reached between the
parties, the Lessee will have no demands and/or claims whatsoever
against the Company with respect to such deferral and all the dates
as set out in this Agreement and which are related to and/or derive
from the Possession Date will be correspondingly deferred. |
| |
The
Possession Date of the Premises constitutes a fundamental and material condition of this
Agreement and it is agreed therefore between the parties that in the event of the
Possession Date being deferred otherwise than for the reasons set out in sub-clause (d)
and/or in the first passage of this sub-clause (e), the following provisions will apply: |
| |
(1) |
A
delay in delivery of possession up to a date expiring ten (10) months after the
agreed Possession Date – will not constitute a fundamental breach by the
Company of this Agreement but in such a case, the Company will pay the Lessee
agreed and pre-determined compensation to the full extent of the rental costs
(as distinct from other costs – such as management fees, parking fees and
the like) that will be paid by the Lessee for the delay period in respect of
the property that the Lessee has/will lease until the Possession Date and which
it has not vacated due to the delay in the delivery date of the Building as
stated and the Lessee will not be entitled to any other additional compensation
beyond that agreed herein (hereinafter: “the Late Delivery
Compensation”). |
| |
(2) |
A
delay in delivery of possession of more than ten (10) months after the agreed
Possession Date – will constitute a fundamental breach of this Agreement
on the part of the Company and confer upon the Lessee any right that is
conferred upon it following a fundamental breach by law, and by this Agreement,
including the right to agreed compensation in respect of the delay in delivery,
including also the full or partial realisation of the performance bond
delivered by the Company to it pursuant to clause 14(b) thereof, as
appropriate. Realisation of the performance bond in such a case will be up to
the amount of the actual damages that have been caused to the Lessee with the
addition of the agreed compensation mentioned. |
| |
(f) |
The
Lessee undertakes to personally appear or send its agent on the Possession
Date to accept possession of the Premises but the failure of the
Lessee’s agent to appear will not detract from the Possession
Date prescribed by the Company as stated above, that is to say, for
the purpose of determining the term of the Lease and the Lessee’s
obligation to pay the Company the Rent applicable from such date. |
| |
A
memorandum will be prepared and signed by the parties on the Possession Date setting out
all repairs and supplementary works that are to be carried out at the Premises, if any.
To the extent there will be any disagreement as to whether any matter constitutes a
defect, each party will note its position and the matter will be submitted for the
determination of the Tribunal. The Company will carry out the repairs and the agreed
supplementary works within a reasonable time as determined by the engineer. Nothing
contained above shall defer the Possession Date and payment of the Rent unless the
required repairs will prevent the use of the Premises for the Purpose of the Lease. For
the removal of any doubt, nothing contained in this clause shall detract from the Company’s
obligation regarding the condition of the property on the actual Possession Date as
stated also in clause 10(a) above. |
9
| |
(g) |
Differences
relating to money between the Company and the Lessee will not
constitute a ground on the part of the Lessee not to accept
possession or to the Company not to convey possession, and in the
case of such differences, the amount in dispute will be deposited in
a joint account in the name of two trustees, one trustee for each
party, that will be determined by the parties if such a need arises,
and the transfer of the sums from such account to any party will be
conditional on the consent of the parties or the final determination of
the dispute by the Tribunal and/or the arbitrator and/or the court,
as appropriate. |
| |
(h) |
It
is clarified for the avoidance of any doubt, that the Lessee may enter upon
the Land and/or the Building and/or the Premises before taking
possession in order to carry out adaptation works otherwise than by
means of the Company, without derogating from its right to request
adaptations from the Company if and to the extent such a right exists
according to the Agreement. |
| |
(a) |
The
parties hereby establish a forum whose duty will be to determine disputes on
various matters that have been agreed to by them under this
Agreement, if any, whereby each party appoints its representative(s)
to such forum in this Agreement (referred to as: “the Tribunal”).
The parties may change their representatives on the Tribunal. |
| |
(b) |
In
the absence of a response by the members of the Tribunal for a determination
pertaining to a dispute for which a discussion has been requested,
within 48 hours, the matter will be referred to the determination of
an outside arbitrator who will be selected by agreement between them,
and whose determination will be final. The outside arbitrator will be
fixed by the members of the Tribunal according to the nature of the
matter in dispute, and the person selected will have no interest in
or affiliation to the businesses of either of the parties, in order
to ensure that there is no conflict of interest whatsoever with them.
Should the parties fail to agree on the arbitrator, he will be
determined by the competent court by way of application by either or
both of the parties. |
| |
(c) |
Should
the determination of the outside arbitrator, including his selection
process, not have been completed within a further 72 hours following
the 48-hour period mentioned in sub-clause (b) above, and the dispute
causes unnecessary delay in the continuation of the planning and/or
implementation of the Company’s Works in consequence, then, and
in such a case, the time schedule will be extended for carrying out
the Company’s Works and the respective delivery of the Premises,
provided that it is not ruled by the arbitrator (or by the court)
that the Company’s claims in the scope of such dispute between
the parties will not have been legitimate. A dispute that is not
legitimate for such purpose will be a position that is contrary to
the Company’s obligations and/or the rights of the Lessee under
this Agreement. The arbitrator will similarly determine the question
as to whether the dispute requires an extension of the time schedule
and also if the position of the Company was legitimate. |
| 11. |
Term
of the Building Lease |
| |
(a) |
Upon
completion of the Company’s duties according to this Agreement in
relation to construction of the Premises and conveyance thereof to
the Lessee, the Company undertakes to lease the Premises to the
Lessee and the Lessee undertakes to take from the Company a lease of
the Premises for a term of ten (10) years commencing from the
Possession Date (as defined in clause 10(b) above) (hereinafter:
“the Date of the Commencement of the Lease” and
“the Lease Term” respectively) all pursuant to the
conditions herein set forth. |
| |
(b) |
In
addition to the foregoing, the option to extend the Lease Term is granted to
the Lessee for four (4) additional lease terms of three (3) years
each and a fifth option period of thirty five (35) months and twenty
five days (hereinafter: “the Option Period”). Each
of the Option Periods mentioned will be exercised automatically
provided the Lessee will not have notified the Company in writing at
least five (5) months prior to the expiration of the relevant
Lease/Option Term/Period, as appropriate, regarding its disinterest
to extend the Agreement by a further Option Period. |
10
| |
(a) |
It
is agreed and clarified that the only consideration to which the Company will
be entitled for performing its obligations under this Agreement will
be the receipt of rent only. The Lessee will pay the Company,
commencing from the Possession Date, on the tenth day of each month,
the consideration for such month according to that set out in Appendix
E attached and which constitutes an integral part
hereof (hereinafter: “the Capital Rent”. In this
Agreement, the Capital Rent means the total of the lease components
that the Lessee has undertaken to pay in respect of the Land Cost
component, the Shell and the parking places and the interior, as set
out in Appendix E hereto). |
| |
(b) |
The
Capital Rent set out in Appendix A hereto in Dollars will be translated into
new shekels pursuant to the representative rate of exchange of the
Dollar known on the date of each payment and which, in no event will
be less than 4.05 dollar/NIS. |
| |
(c) |
It
is hereby expressly agreed between the parties that the Shell Construction
Works (as distinct from the Interior Works) are on a global
payment basis and fall within the full and overall responsibility of
the Company, at a fixed and complete price and the Lessee will not be
required to make any additional payment in respect thereof, and that
the Capital Rent set out in the Shell component in Appendix A hereto
has been fixed in reliance thereon. |
| |
In
light of that stated it is clarified that the Capital Rent mentioned in Appendix A above,
including all the components thereof, including the component relating to the making of
Interior Works (according to the calculation method set out in Appendix E)
constitutes aggregate consideration for all and every expense and every cost, whether
expected or unexpected, that the Company will be compelled to bear following its entering
into this Agreement, including: planning costs, supervision, consulting, construction,
licensing, fees, management, overheads, materials, items or quantities that exceed the
expected and any other expense that the Company will be compelled to bear whether or not
of the types mentioned. |
| |
Notwithstanding
that stated it is agreed that: |
| |
(1) |
The
above is subject to that stated in clause 8(b) above in all aspects
relating to the Modifications in the Plans, that may affect the amount of the
Capital Rent. |
| |
(2) |
The
Capital Rent mentioned in respect of the Land Cost component in Appendix E
hereto has been fixed on the basis of the assumption that the purchase costs of
all the rights in the Land will be the sum of $50 for each sq.m. of constructed
area that is permitted according to the Town Building Plan, that is: both the
area that is constructed according to the Original Building Quantum (as defined
in clause 9(a) above) as well as the constructed area that is possible
according to all the building rights under the Town Building Plan (according to
the representative rate of exchange known on the payment date), this being
without derogating from the fact that the payment for the Land Cost component
in Appendix E is as set out in Appendix E only for the Original Building
Quantum (as defined in clause 9(a) above). It is further clarified that if
additional construction will be carried out on behalf of the Lessee according
to the Additional Building Option, a component of the cost of the value of Land
will also be paid for it, as more particularly set out in clause 9 and in
Appendix F hereto. |
| |
In
the event of the actual Land Purchase Cost exceeding the sum mentioned, without
derogating in that connection from the provisions contained in clause 3 above, it is
agreed that against the presentation of sound authority confirming the actual cost
thereof, there will respectively be adjusted the Capital Rent component that is defined
as the “Land Cost” component in Appendix E to this Agreement. |
| |
(3) |
Pursuant
and subject to that prescribed in clause 7(b) above in all aspects relating to
the Company’s Works pursuant to the Interior Work Plans – it is agreed
between the parties that the “Interior Works” component of the
Capital Rent set out in Appendix A to this Agreement will be computed pursuant
to the formula detailed in Appendix A to this Agreement. |
| |
(4) |
The
foregoing is subject to a change in the Rent in the event of the Lessee
exercising its right to demand from the Company performance of Modifications or
improvements in the Premises during the Lease and the Rent being changed
pursuant to that stated on the subject in clause 22 hereof. |
11
| |
(d) |
VAT
in accordance with the law will be added to the amounts of the consideration
mentioned in the Agreement and in the Appendices thereto. It is
clarified that no VAT will be added to the amounts from which the
consideration is derived, such as the Land Cost and the price of the
Interior Works, for the purpose of calculating the Rent components
deriving therefrom as stated in Appendix E, in order not to give rise
to the payment of double VAT. |
| 13. |
Method
of paying the Rent |
| |
The
Rent will be paid by bank transfer to such account as the Company will direct, by not
later than the tenth of each month in respect of which the Rent is paid, provided that if
no standing order is in existence on such matter then the Lessee undertakes to remit
concurrently a certificate of the deposit of the monies each month. |
| |
(a) |
(1) |
As security for the fulfilment of the Lessee’s undertakings under this
Agreement of Lease, the Lessee will deliver to the Company a guarantee (not
being an autonomous guarantee and the realisation of which is conditional on
the fact that with respect to each sum that will be called there will be a
judgment in favour of the Company against the Lessee) such guarantee being a
performance bond for its undertakings provided by a bank or insurance company,
at the choice of the Lessee. The Lessee may divide the amount of the guarantee
required as set out below into portions and will also be entitled to grant a
guarantee for one portion by a bank and the other by an insurance company, and
replace one guarantee by another on prior co-ordination with the Company,
provided the substitute guarantee complies with the terms of the Agreement.
Such guarantee will be linked to the representative rate of exchange of the
Dollar set out below: |
| |
(a) |
The
guarantee will be for the amount of forty five percent (45%) of the Company’s
investments in the Interior Works mentioned in clause 7(b) above but in no
event will be more than the amount of the Capital Rent in respect of the
first year’s tenancy. |
| |
(b) |
The
amount of such guarantee will be progressively reduced during the ensuing
nine years of the tenancy during the Lease Term so that at the beginning
of the First Option Period and during each of the Option Periods, the
guarantee will stand at a sum being equal to the last three months of the
tenancy for the Shell component only that the Lessee paid to
the Company on the expiration of the Lease Term. |
| |
(c) |
The
form of the Lessee’s Guarantee (as hereinafter defined) is attached
hereto as Appendix I-1(hereinafter: “the Lessee’s
Guarantee”). |
| |
(2) |
The
dates on which the Guarantee will be furnished to the Company will be as
follows: |
| |
(a) |
Shortly
after the date of the execution of this Agreement, and not later than ten
days after the execution thereof – the Lessee will provide the Company
with a Guarantee in the sum of 25% of the amount of the Lessee’s
Guarantee – the sum of NIS 2,253,217.5 (plus VAT) i.e. NIS 2,602,466
in light of that stated in sub-clause (d) hereof. |
| |
(b) |
After
thirteen (13) months of the date of the execution of this Agreement, and
subject to the progress of the construction pursuant to the time schedule
and the conditions thereof set out in this Agreement or after completion
of the Shell, whichever is the later – the Lessee will provide the
Company with a further 25% of the amount of the collateral described in
sub-clause (1) above, a guarantee in the sum of NIS 2,253,217.5 (plus
VAT), i.e. NIS 2,602,466, in light of that stated in sub-clause (d)
hereof. |
| |
(c) |
Upon
and against delivery of possession of the Building to the Lessee – the
Lessee will provide the Company with the remaining 50% of the amount of
the collateral described in sub-clause (1) above. For the avoidance of any
doubt, the guarantee that will be given according to this sub-clause (c)
will also include retroactive payment of all the differentials pursuant to
the actual costs that were not known on the dates mentioned in sub-clauses
(a) – (b) above and which have therefore been fixed in sub-clause (d)
hereof and which are known on the date of the delivery of possession of
the Building. |
12
| |
(d) |
It
is to be clarified that up to the purchase date of the rights in the land,
the collateral will be computed according to the amount of the first
tenancy year only, and for that purpose the Land Cost component of the
Capital Rent will be computed for the purpose of calculating the
collateral according to $75 per sq.m., and until the date of delivery of
the possession of the Building to the Lessee the percentages of the
collateral for the purpose of sub-clause 2(a) – (b) above will derive
for the purpose of the Interior Works component of the Capital Rent
according to $350/sq.m. of the Company’s investment in the Interior
Works – the sum of NIS 9,012,870 (plus VAT) that is, the sum of NIS
10,409,864. |
| |
(e) |
The
Company will return to the Lessee on the expiration of the term of the
Agreement, the guarantee that the Lessee deposited after deducting debts
if any, pursuant to that prescribed in clause 26(a) hereof. If the
Lessee’s Guarantee or part thereof is lawfully called, the Lessee
shall be immediately bound to supplement the amount of the Guarantee
and/or provide a new guarantee, without this derogating from any other
right of the Company. |
| |
(b) |
As
security for the fulfilment of all the Company’s undertakings towards
the Lessee until the Possession Date of the Premises, the Company
will provide the Lessee with a guarantee identical to that provided
by the Lessee and in the same form, of a bank or insurance company
concurrently with and pursuant to the dates and the amounts set out
in sub-clauses (a) (2) (a) – (a) (2) (b) above (namely 25% + 25%
only) (in this Agreement called: “the Company’s Guarantee”).
Upon the completion of the conveyance of the possession of the
Building, in a constructed and proper form for use all as set out in
clause 10(a) above, the bank guarantee will be returned to the
Company. |
| |
The
form of the Company’s Guarantee is attached as Appendix I-2 to
this Agreement. |
| |
(a) |
The
Lessee will use the Premises for the Purpose only. |
| |
(b) |
The
Lessee will not move equipment into the Premises that could cause damage to
the Premises that is not fully repayable by and at the expense of the
Lessee and at its responsibility only, and will not load the floor of
the Premises with more than that for which it was intended, as set
out in the Scheme attached hereto as Appendix B-1. |
| 16. |
Receipt
of Permits, Firefighting and Fire Detection System |
| |
(a) |
The
Lessee will be responsible for obtaining a permit or license to carry on its
business if and to the extent such is required by law. |
| |
(b) |
The
Lessee declares that it is aware that the Company will bear no
responsibility whatsoever for obtaining any licenses that will be
required for the purpose of carrying on the Lessee’s business,
without derogating from its obligation to obtain a building permit or
any other permit that is necessary for erecting the Building and the
habitation thereof. |
| |
(c) |
The
Lessee and the Company will, on the Possession Date, carry out a working
test of the firefighting and fire detection systems, and for
evidencing their having been installed pursuant to the Plans, and
subject to the results of the examinations, both parties will
separately confirm in the memorandum the proper operation of the
systems on such date. The Lessee undertakes, as from the Possession
Date, to keep the firefighting and fire detection systems properly
maintained, and will be responsible for obtaining periodic
certifications to the extent required by law, from any competent
authority. It is clarified that the Company will not be responsible
for the working order or suitability of such systems if they have
been damaged or affected by changes made by the Lessee otherwise than
by means of the Company, and also in a case where, during the Lease
Term, (as extended) the Lessee will make changes in the content and/or
equipment and/or operation thereof compared with that contemplated as
of the Possession Date, in a manner that will impact new demands
respecting the systems, in which case the Lessee will solely bear the
cost of the changes that will be required as a consequence thereof in
such systems, and be responsible for verifying the conformity
therewith with the statutory requirements and to obtain the
approvals. Nothing contained herein shall derogate from the remaining
provisions of this Agreement, including clause 20 hereof. |
13
| 17. |
Electricity
and Water |
| |
(a) |
The
Lessee confirms that it is aware that the electricity and/or water supply to
the Premises is conditional on a contract between it and the Electric
Corporation and the local authority, as appropriate. |
| |
(b) |
The
Company declares that it will effect an electricity connection to the
Premises with the capacity set out in the Scheme attached hereto as
Appendix B-1. |
| |
(c) |
The
Lessee may turn to the Electric Corporation to request that the electrical
connection (the capacity) to the Premises will be increased, provided
that such increase will be at its own expense, and subject to the
needs of all the remaining users of the Building in which the
Premises are situated (if any) being taken into account, and the feed
ability of the existing cables. |
| |
(d) |
The
Company undertakes that the Building will be connected to the electricity
grid before the Possession Date. |
| |
(e) |
The
Lessee undertakes to secure a place in the transformer room in the Premises
for connecting other tenants to the electricity grid and undertakes
to co-operate with the Company in any matter relating to the feed of
the other tenants on the Land (if any). |
| |
If
and when the Lessee’s right to the Additional Construction will lapse so that
additional areas will have been constructed by the Company, then and in such case the
Lessee undertakes to keep the Premises clean in such a manner as will not affect the other
tenants’ right of use and detract from their ability to make reasonable use of their
own premises. |
| 19. |
Use
of the Public Areas |
| |
If
and when the Lessee’s right to the Additional Construction will lapse so that
additional areas will have been constructed by the Company, then and in such case no use
will be made of the public areas by the parties or any persons on their behalf, except for
the purpose for which they are intended. |
| 20. |
Maintenance
of, maintenance services and repairs to the Premises |
| |
(a) |
The
Lessee will be responsible for keeping the Premises intact and in proper
condition in the sense that the Lessee will be responsible for the
proper maintenance of the Premises (including maintenance and
operation of all the installations in the Premises, such as
elevators, airconditioning, fire detection and extinguishing and the
like) and for repairing at its own expense any defect and/or fault
and/or damage that is caused to the Premises by either the Lessee or
others. The Lessee undertakes to attend to obtaining any approval
that is required by law with respect to periodical checks of the
systems and installations in the Premises from any relevant
authority. For the avoidance of any doubt it is clarified that all
expenses involved in performing such undertaking will be borne and
paid by the Lessee. |
| |
(b) |
The
Lessee will not be bound to repair damage in the Premises, including damage
in the systems and installations as defined in sub-clause (a) above,
that result from defects in the construction of the Premises or in
the systems and/or the installations themselves, and which do not
result from a breach by the Lessee of the duty to maintain and/or
from unreasonable use of such systems, or as a result of changes in
the Building after the Possession Date, as well as from acts of war,
earthquake or other unexpected natural catastrophe. |
| |
(c) |
The
Company will repair any damage that will be caused to the Premises and which
is not imposed on the Lessee as stated above, within a reasonable
time, subject as provided in sub-clause (f) hereof. |
14
| |
(d) |
In
the event of a breach of the Lessee’s commitment under sub-clause (a)
above, the Company may, at its discretion, independently or by means
of a third party effect repair and maintenance services of the
Building, in and at such volume, timing and intervals as will be
required, at the expense of the Lessee. |
| |
(e) |
Notwithstanding
that stated above it is clarified that the Lessee will not be
required to pay the Company any management and maintenance fees in
respect of the maintenance of the Building, and that management of
the Building will be carried out independently by the Lessee and/or
by persons on its behalf and that it expense, provided the management
of the Building will be carried out at the least at a reasonable and
accepted level which is appropriate for a building of this kind. |
| |
(f) |
Reinstatement
of the building – in any case where damage will be caused to the
Premises that requires the reinstatement thereof either due to collapse or
earthquake and/or for any other reason, then the Lessee will be
granted the right to demand the restoration of the Premises by the
Company, as speedily as possible, in order to enable the Company to
continue to meet its undertakings under this Agreement. For the
removal of any doubt, during the reinstatement period, the Lessee
will not be liable for any rent whatsoever. The Company’s duty
to reinstate the Building mentioned is conditional on the ▇▇▇ not
preventing in any way the restoration of the Building and which the
Company will not have succeeded in overcoming, and on the Lessee’s
consent to extend the term of this Agreement so that the date for
delivery of the key will constitute the “Date of the
Commencement of the Lease” from which date onwards the Terms
of/Periods of the Lease and the Options mentioned in clause 11 above
of this Agreement will be reckoned, and this Agreement will be
subject to the necessary adjustments. It is further agreed that this
condition will not apply if and to the extent the need to effect
restoration resulted from defects in the construction. |
| |
The
Lessee may install signs on the Building provided that before doing so, it will
co-ordinate with the Company the method of attaching the sign to the Building from the
standpoint of construction. It is hereby clarified for the removal of any doubt that the
Lessee is subject to the obligation and responsibility to attend to obtaining a license
for the signage from the competent authority for the purpose by law, and pay any fee
and/or levy that is payable by law to the competent authorities. In the case of the
installation of a lighted sign, the Lessee will be bound to install the electrical
connection at its own expense and bear the costs of the electricity supply. In any event,
the Lessee will not install signs on the Premises prior to receiving a license by law for
such installation. The Lessee will agree to place one sign of the Company itself, in
appropriate size. |
| 22. |
Keeping
the Premises, alterations and additions to the Premises after the Possession
Date |
| |
(a) |
The
Lessee will have the right to demand that the Company carry out any
alteration in the Premises, be it internal or in the Shell, provided
that such an alteration does not affect the Building or the
completeness thereof, and to the extent the alteration requires a
permit, subject to such permit being received, and to that stated
below. |
| |
(b) |
The
parties will reach a comprehensive detailed agreement in writing in
connection with the cost of the alterations, and in connection with
the amount that the Lessee will be required to pay the Company in
respect of carrying out the alterations by means of raising the Rent,
having regard to the duration of the Lease Term which for the time
being the Lessee will be committed to, and also in connection with
the increase of the collateral as a result thereof, beyond that
provided for in this Agreement. |
| |
(c) |
In
the event of the Lessee requesting to make alterations itself and at its own
expense, the Lessee will not be bound to receive the Company’s
approval, unless such alterations amount to any damage to the
construction of the Building or the character thereof. |
| |
(d) |
The
additions and/or structural alterations will remain at the expiration of the
Lease in the hands of the Company, save that in those cases where any
impingement arises to the use of the Building or damage to the value
thereof, the Company will be entitled to demand that the Lessee
removes the same and reinstate the situation to what it was
previously. With respect to internal alterations that have been made,
the Lessee will be entitled to reinstate the situation to what it was
previously or leave them for the Company, but will not be entitled to
any consideration in respect of such alterations. |
15
| |
Notwithstanding
that stated in this clause, the Lessee may, at any time, until the expiration of the
Lease Term, dismantle any addition that it will install in the Premises with the Company’s
consent and deal therewith, after the removal thereof, in the manner of owners, on
condition that the Lessee will not cause any damage to the Premises by dismantling the
same. |
| |
In
the event of any structural addition having been made by the Lessee contrary to that
stated above, the Lessee will be exclusively responsible for any expense that will be
incurred by the Company on account of the foregoing, including legal costs and/or
financial liabilities that the Company will be made liable for or fined by the courts.
The responsibility mentioned above similarly applies to any damage that may be incurred
by the Company and/or any third party in consequence of the carrying out of such
addition. |
| |
(e) |
(1) |
The Lessee declares and acknowledges that it is aware that the setting up of an
upper floor and/or another building in the Premises, if this is possible
according to the valid Town Building Plan relating to the Land and/or the
Building, is subject to receiving a building permit from the competent planning
authorities. An upper floor for this purpose means – the addition of a
floor to the area of the Premises, that will be constructed within the space
between the floor and the ceiling of the Premises. |
| |
(2) |
If
the Lessee wishes to establish an upper floor and/or another building in the
Premises and obtains for the purpose the Company’s consent, it will be
bound to receive a lawful building permit for the purpose of the construction
thereof and bear all the levies and fees that will require to be paid to the
local planning commission and/or the local authority as a condition for
receiving a building permit, without this imposing on the Company any liability
whatsoever, whether by way of a planning obligation or otherwise. Subject to
the foregoing, every plan to establish an upper floor and/or other building
will first be submitted to the Company for approval and the latter will be
entitled to refuse to approve such plan as submitted, in cases involving
certain damage to the use of the Building or the value thereof will be
impaired. |
| |
(3) |
If,
after the expiration of the period of the Additional Building Option, the
Lessee will not have exercised all of the additional building rights and if and
to the extent the upper floors that have been constructed by it shall reduce
the additional building rights, the Lessee will be charged, in such a case, as
from such date, additional rent for the use of the upper floors, according to a
calculation of one half of the Land value component per sq.m., for rent. If the
Company is the party that constructs the upper floors on the Lessee’s
behalf, it will then be charged rent in respect of the upper floors also and in
addition to one half of the Land value component mentioned above, in an amount
which will be calculated according to one half of the Shell component per
sq.m., or according to the metrage of the upper floors. |
| |
(f) |
If,
in respect of the construction of an upper floor or additional construction
by the Lessee – not being construction according to the
Additional Building Option (as defined in this Agreement) – and
whether or not the Company’s consent has been obtained, the
Company will be liable to pay a land amelioration levy, the Lessee
will be bound to pay such levy, and if paid by the Company, to
reimburse the Company for the same. |
| 23. |
Prevention
of Nuisances |
| |
The
Lessee will indemnify the Company for any damage or expense that it may incur by it in
consequence of the creation of any nuisances contrary to law or in the use of the Premises
that is prohibited by law, without the same being construed as conferring on it any right
in this respect. |
| 24. |
Entry
of the Premises |
| |
The
Company’s employees and agents may enter upon the Premises, during usual working
hours, by arrangement with the Lessee, to check or carry out repairs that will be required
by the Lessee, or for checking the Lessee’s compliance with the terms of this
Agreement. In emergency cases, the Company and/or persons on its behalf may enter upon the
Premises without receiving the Lessee’s prior consent. |
16
| |
(a) |
The
Company may not, until the Possession Date, transfer its rights in the Land
and/or the Building and/or its obligations under this Agreement.
Following the delivery of possession, the Company may transfer and/or
charge its rights and/or obligations in the Land and/or the Building
and/or under this Agreement to others, on condition that the Lessee’s
rights will not be affected and the transferee will sign a written
document that will be addressed to the Lessee in which it confirms
that it has assumed all of the Company’s undertakings under this
Agreement, without exception. |
| |
(b) |
The
Lessee will not be entitled to transfer and/or charge all or any of the
rights conferred upon it under this Agreement to another or others
unless it receives the prior written consent of the Company, and on
such conditions as will be required by the Company. Notwithstanding
that stated, the Lessee may transfer all or any of its rights in the
Premises in and on the following cases and conditions: |
| |
(1) |
To
an integrated or related and/or subsidiary company of the Lessee (hereinafter:
“the Transferee Company”) on condition that the
Transferee Company will sign an agreement identical to the present Agreement,
subject to the fact that if the company in question has assigned and/or
disability which is inferior to that of the Lessee, the collateral will be
adjusted, correspondingly. |
| |
(2) |
Transfer
its rights in the Premises or any part thereof to a substitute tenant whose
identity will have been approved in advance and in writing by the Company, and
to which the Company will not unreasonably object, including for reasons
pertaining to the unsuitability of the tenant to the character of the Building
and/or the nature of the area, provided the substitute tenant will enter into
an agreement with the Company the terms of which will be no less than those
contained in this Agreement, and furnishes all the collateral according to the
Agreement. |
| |
(3) |
Lease
all or any of the Premises by sub-lease or by grant of a right of use or of
part thereof, provided that it gives notice to the Company in advance and in
writing of the identity of the sub-tenant and the Lessee will remain a
guarantor for the performance of all its undertakings pursuant to this
Agreement. The Lessee undertakes not to lease the Premises to a tenant who does
not accord with the character of the Building and who will harm the image of
the Building, in accordance with the nature of the area. Should the Lessee
decide to lease all or any of the Premises as aforesaid, this will not exempt
the Lessee from any obligation towards the Company and will not release the
Lessee from the collateral that it has delivered to the Company under the
Agreement, nor will the Company have any additional right in consequence
thereof against the Lessee or against the sub-tenant, and will not be entitled
to any further consideration. The Lessee will be responsible for ensuring that
the sub-letting will not harm its obligation to quit the property in its
entirety and the performance of any obligation by it under the Agreement of
Lease. The Lessee will sign up the sub-tenant on an undertaking according to
which it neither has nor will have any claims or demands of any kind whatsoever
against the Company, and will turn solely to the Lessee in all matters. |
| 26. |
Quitting
the Premises |
| |
(a) |
The
Lessee will quit the Premises on the expiration of the Lease Term and
redeliver exclusive possession thereof to the Company, the Premises
being vacant of all and any persons and things that do not belong to
the Company, subject as provided in clause 22 above with respect to
leaving fixtures that have been added and permanently affixed to the
Premises. In the event of the Lessee being obliged to quit the
Premises in accordance with this Agreement, either for any reason set
out in this sub-clause or for any other reason set out herein, it
will redeliver exclusive possession thereof, together with the keys,
the Premises being completely vacant and in good and proper condition
for immediate use, fair wear and tear excepted. The vacation will be
effected against the return of the Lessee’s Guarantee, less the
Lessee’s debts according to the Agreement, including in respect
of any damages. It is clarified that payments that have yet to be
made for city taxes, water and electricity consumption will be
assessed by the parties according to certifications that will be
furnished by the Lessee prior to the vacation date, i.e. the return of
the Guarantee will be against a substitute guarantee being furnished
by the Lessee in the amount of the existing and such estimated debts. |
17
| |
(b) |
Without
derogating from that stated in sub-clauses (c) and (d) hereof, should
the Lessee fail to vacate the Premises as provided in sub-clause (a)
above, the Lessee will pay the Company fixed and pre-determined
compensation (hereinafter: “the Compensation”) for
each day of delay, in an amount equal to twofold the Rent that will
apply to the Premises in respect of one day of the Lease in the last
month of the last year of the Lease. The Compensation will be linked
to the Consumer Price Index, and calculation of the linkage differentials
will be made, mutuatis mutandis, by the Company, each month. The
amount of the Compensation with the addition of the linkage
differentials will be paid not later than seven days following the
date of the demand. |
| |
The
foregoing will not derogate or detract from any right of the Company. In addition,
nothing contained in this sub-clause will derogate from and/or detract from any right of
the Company to demand vacation of the Premises. |
| |
(c) |
For
the removal of any doubt it is hereby clarified that the Lessee’s
security is granted to secure the performance of all its undertakings
under this Agreement, including the undertaking to quit. Nothing
contained in this sub-clause amounts to any waiver of any of the
Company’s rights against the Lessee under this Agreement or at
law, or the grant of any permit to the Lessee to use the Premises
after the Lease Agreement has been rescinded or judgment for eviction
has been granted. |
| |
(d) |
In
addition to that provided in sub-clause (c) above, the above collateral will
be used to secure the discharge of all the Lessee’s debts to the
Local Planning and Building Commission, the local authority
(including debts in respect of the use of water) and/or the Electric
Corporation and the Bezeq Phone Company in respect of the Premises
subject to and pursuant to sub-clause (a) above. |
| 27. |
Lessee’s
duty to effect payment |
| |
Failure
by the Lessee to use the Premises will not excuse the Lessee from any of its obligations
under this Agreement unless the lack of use results from a breach of the Company’s
obligations. |
| 28. |
Rescission
of the Agreement |
| |
Without
derogating from any other right of the parties it is hereby agreed that the Contracts Law,
including the Contracts of Remedies Law will apply to this Agreement, including the right
of rescission following a fundamental breach of the Agreement. |
| |
It
is agreed that in any event, even in the case of a fundamental breach, the Agreement will
not be rescinded before notice is given to allow the infringor to rectify the breach
within a reasonable time. |
| |
Without
derogating from that stated it is hereby agreed that the following breaches will be deemed
to be a fundamental breach: |
| |
(a) |
Delay
in payment exceeding four months; |
| |
(b) |
Transfer
of rights in the Premises contrary to this Agreement; |
| |
(c) |
Use
otherwise than according to the permit of the property affecting the
Company’s rights or causing it damages; |
| |
(d) |
Failure
to effect repairs or maintenance by the Lessee in a manner that
materially affects the Building; |
| |
(e) |
A
liquidator or receiver being appointed for the Lessee’s assets and the
appointment not being vacated within six months. |
| 30. |
Discharge
of the Lessee’s debts |
| |
(a) |
If
the Company will be bound to pay in lieu of the Lessee, any sum relating to
the Premises, payments which apply to the Lessee under this Agreement
or at law, including payments for the use of electricity, water, city
taxes, or the telephone company, the Company will notify the Lessee
14 days prior to the payment of its intention to discharge such
amount in lieu of the Lessee. |
18
| |
(b) |
The
Lessee will reimburse the Company with any amount that has been paid by the
Company as stated, within 14 days of the date of a demand to do so
together with interest and linkage as set out in clause 35 hereof,
from the date of the dispatch of the demand until actual payment. |
| |
(a) |
The
Lessee will bear payment of the city taxes and all and any current, new or
additional taxes that will be imposed on occupiers of the property,
as distinct from the proprietors of the rights of title and/or
long-term lessees of properties, for the Premises or in respect of
the management of the Lessee’s business, as well as signage fees
or for use of such kind that will be made by the Lessee. |
| |
For
the avoidance of any doubt it is clarified that the Lessee will bear no payment of fees
and/or levies pertaining to the development of drainage, roads, sewerage and other fees
and levies that are imposed by their very nature on the owners of rights of title and/or
long-term lessees of land. |
| |
(b) |
If
the Lessee has made use of the Premises contrary to the Purpose and/or
otherwise than pursuant to the terms of the Town Building Plan and as
a result thereof the Company will be required by the Local Planning
Commission to pay amelioration levy, or by the ▇▇▇ to pay permit fees
and/or additional capitalisation fees and/or any other sum, the
Lessee will be bound to pay the Local Commission and/or the ▇▇▇
respectively, any such sum by which the Company will be made liable
by the Commission and/or the ▇▇▇, directly to the Local Commission
and/or the ▇▇▇ or reimburse the Company with any such sum that will
be paid by the Company to the Local Commission and/or the ▇▇▇. |
| 32. |
Tenants
Protection Law |
| |
The
parties hereby declare that in respect of the Lease under this Agreement, the Lessee has
not paid the Company any key money either directly or indirectly, nor is it a protected
tenant according to the Tenants Protection (Consolidated Version) Law, 5732-1972 and/or
any substitute enactment (hereinafter: “the Tenants Protection
Law”). In the event of the Lessee carrying out works at the Premises at its own
expense, such works will in no way be deemed to be payment of key money and the Lessee
will not be deemed to be a protected tenant pursuant to the Tenants Protection Law. |
| 33. |
Costs
of the Agreement |
| |
The
stamp duty costs of this Agreement to the extent such duty arises, will be borne by the
parties in equal shares. |
| |
It
is agreed by the parties that in respect of any sum that the Lessee will fail to pay on
due date (hereinafter: “the Arrears Amount”) the Lessee is bound
to pay the Company, in addition to the Arrears Amount that will be linked pursuant to the
provisions of this Agreement until the actual date of payment, interest also at the rate
of 10% per annum (hereinafter: “the Annual Interest”) from the date on
which the debt arises until the date on which the payment is actually paid. Any payment
that has been made by the Lessee to the Company in respect of a debt that is in arrears
will be divided and appropriated proportionately against the components of the debt that
is in arrear, i.e. the Annual Interest component, linkage differentials and the component
of the Arrears Amount. |
| |
Any
amount that the Lessee is bound to pay or deposit under this Agreement will bear VAT
pursuant to the legal rate thereof on the date of the payment or deposit, and be paid by
the Lessee. The parties agree that the Company will be entitled to round up the amounts
that the Lessee is bound to pay or deposit to the Company under this Agreement or by law,
to the nearest whole new shekel. Payment of VAT will be made on the tenth of the month
following the payment of the Rent, and in any event not later than five days before the
date on which the Company is required to remit the tax amount to the tax authorities,
subject to a VAT tax receipt having been delivered against the payment. |
19
| |
The
provisions of Appendix G will apply to the parties – the
Insurance Appendix, including the insurance certificates attached as Appendices G1-G3
hereto. For the removal of any doubt it is clarified that no contractor and principal
relationship exists between the Company and the Lessee for the purpose of imposing
liability on the Lessee. In addition to the foregoing, the liability imposed on each party
will apply according to the law and its respective responsibility for the performance of
its share of this Agreement. |
| |
It
is agreed by the parties that the competent courts of Tel Aviv city only will have the
territorial jurisdiction on all matters relating to and/or resulting from this Agreement. |
| |
The
parties will perform the provisions of every applicable law in connection with the
Premises and the use thereof. |
| 40. |
Modification
of the Agreement |
| |
No
modification of any of the terms of this Agreement or waiver of any rights of a party to
this Agreement thereunder, will be made except in writing. |
| |
No
waiver, time granted, concession or forbearance to act, whether general or for a
particular instance, will be deemed to be a waiver of rights under this Agreement or at
law nor prevent any demand and/or claim. |
| |
Any
notice which the parties hereto are obliged to give one another will be regarded as having
been served after 48 hours have elapsed from the time of dispatch by registered mail from
a post office in Israel to the address of the parties set out in this Agreement. |
| |
Service
of notice at the Premises on the Lessee or its employees, or affixing the notice to the
door of the Premises will be deemed to be due service on the Lessee. |
| |
In
addition to that stated, the parties will be entitled to send notices to one another by
messenger in which case the date appearing on the delivery form signed by the messenger
will be deemed to be the date of the service of the notice. |
| |
The
parties may furnish notices to one another by fax. Any written document that has been
transmitted to a party by fax will be regarded as a written document served on such party
by personal service, on the date of dispatch provided that the written document bears a
confirmation of transmission. |
| |
The
addresses of the parties set out in this Agreement will similarly to be deemed to be their
address for the purpose of service of process. |
In witness whereof the
parties have set their hands:
| /s/▇▇▇ ▇▇▇▇ /s/▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
/s/Dalit Bar-On /s/Oran Halutzi |
| Lumenis Ltd. |
Industrial Buildings Corporation Ltd. |
| The Lessee |
The Company |
20
Translation from the
Hebrew
APPENDIX B-1’ TO
AGREEMENT BETWEEN LUMENIS AND INDUSTRIAL BUILDINGS
– CONCERNING THE CONSTRUCTION
OF LUMENIS HOUSE
TECHNICAL
SPECIFICATION AND SCHEME
LUMENIS HOUSE, YOKNEAM
November 2007
| 1. |
Client’s
Requirements in Principle |
| |
1.1.1 |
Office
and production building with dining-room having an area of about 12,000 square meters.
The building will be designed on the basis of a ground floor containing the Company’s
main lobby, a re-heat kitchen and a dining-room. Over the remainder of the area and on
four additional stories, production areas, offices and laboratories will be set up. The
building shell will be definitive and it will not be possible to add shell components to
the building. |
| |
1.1.2 |
Storage
building with floor area of about 1,400 square meters, — about 4,000 square meters
in total. First floor to a height of about 7 meters (net) with the possibility of future
split into two levels, two additional storage floors with an option to add-on in the
future office/production floors on the storage roof. |
| |
1.1.3 |
A
future building for offices and laboratories with option for their lease to others. |
| |
1.1.4 |
The
building will include underground and upper-floor parking space per detail following,
including preservation of a planning option for additional parking in respect of
additional areas. |
| |
1.2 |
General
functional Requirements |
| |
1.2.1 |
Office
and laboratory building will be to a depth of about 18 meters. |
| |
1.2.2 |
Net
storey height from floor surface to base of ceiling, will allow for an artificial ceiling
at a net height which will not be less than 2.9 meters. |
| |
1.2.3 |
Modular
construction of the building will allow for optimum usage of the parking spaces and
modular duplication of rooms. Recommended module is with a duplication factor of 0.9. |
| |
1.2.4 |
Areas
of vertical motion and shafts will be outside the stories’ continuous spaces and
will allow for continuous lay-out. |
| |
1.2.5 |
Storage
building will be planned for additional floors with the possibility of on-going working
during the construction period. |
| |
1.2.6 |
Arrangement
of the buildings will be planned so that it will be possible to divide and rent them out
separately. |
| |
1.2.7 |
The
plot will be circumscribed by fencing which will prevent intrusions into the Site in line
with requirements of Town Planning. The Site will have one entrance with the option for
operational entrance into Storage. |
| |
1.2.8 |
Production
areas generally distinguished by extensive working halls of many tens of square meters
with smaller auxiliary rooms for managers and inspection functions. |
| |
1.2.9 |
Within
the confines of the production areas there are about 500 square meters of Class 100,000
Clean rooms. |
| |
1.3.1 |
Ground
floor of 1,400 square meters gross at a height of 7 meters net for heavy storage
and usage load of about 3,000 kg. per square meter. |
| |
1.3.2 |
Two
light storage floors at a net height of 3.5 meters and usage load of 700 kg.
per square meter. |
| |
1.3.3 |
Storage
will be connected to the production building by covered way. |
| |
1.3.4 |
Connection
between the storage floors will be made through two freight elevators with a 1.5 ton
load. The net dimensions of the cabin with doors open are 1.2 * 2.0. |
2
| |
1.3.5 |
Storage
will have an operational enclosure allowing for three 12-meter long trucks to be
temporarily parked together with two small goods vans. |
| |
1.3.6 |
Storage
will have two motorized entrance gates 3.0 * 3.0. |
| |
1.3.7 |
The
loading and unloading bay will be covered by roofing. |
| |
1.4.1.1 |
Grounds
will be circumscribed and monitored with two entrance gates, – one for private
vehicles and guests and the other for operational vehicles. |
| |
1.4.1.2 |
Total
number of parking stalls at the first stage will be 250 of which 50 will be upper level.
To the extent that 230 covered stalls will be built and not 200, Lumenis will be
entitled, though not obliged, to take on rent, the surplus stalls. To remove any doubt it
should be made clear that should Lumenis choose not so rent the surplus stalls, it
will not be entitled to make any use of them. |
| |
1.1.1.3 |
As
regards the two additional floors above the Storage building, Industrial Buildings will
be required to lay out a further 80 covered parking stalls. Thirty of these will be
provided from out of the surplus stalls mentioned in section 1.4.1.2 above, – to the
extent such will exist – and the remainder will be made up from completion of the
basement parking on the fourth Plot. |
| |
1.4.1.4. |
In
the future building to be erected on the fourth Plot the first two stories will
be underground parking, each one of them having 50 parking stalls. The
remaining 5 stories will be built as offices and/or as parking lots per Lumenis’ requirements.
Each such office storey as shall be converted into parking will contain 50
covered parking stalls. Lumenis may, in its discretion, prefer to build only
offices or only parking or part of the stories for parking and part for
offices. |
| |
1.4.1.5 |
If
in the circumstances laid down in clause 9 of the Lease Agreement the ▇▇▇ will cancel the
rights which the Company acquired in part of the land which is not utilized, so that the
Company cannot build the future building and consequently not provide the quantity of
parking required, the Company undertakes to provide the Lessee with the remaining
required parking stalls in accordance with 1.4.1.2 – 1.4.1.3 above (i.e. up to a
total of 330 parking stalls), at another site within the Mansoura Hi–Tec Park and as
near as possible to the Lumenis House building. |
| |
1.4.1.6 |
The
buildings grounds will be landscaped to the order of 20%. |
| |
1.5.1 |
Planning
must be in accordance with Town Planning requirements and the valid building scheme
obtaining for the Industrial Zone. |
| |
1.5.5 |
Planning
must be carried out in accordance with the planning demands of the City Engineer, the
Electric Corporation, Bezeq, the Fire Department, the Police and every other empowered
Authority whose relevant certifications are required for the purposes of the Building
Permit and Form 4, [Habitation Certificate – Trans.). |
| |
1.5.3 |
All
materials shall meet Standards requirements whilst execution of the Works will be per
Directives in “The General Specifications for Building Works” of the
Inter-Governmental Central Committee, (the Blue Book). |
| |
1.6 |
External
Shell (Envelope) |
| |
1.6.1 |
Decorous
and modest shell based so far as possible upon a stone facing at a basic price of 27
dollars per square meter. |
| |
1.6.2 |
The
screen wall element - about 20%. |
3
| |
1.6.3 |
“▇▇▇” windows
of a high standard, having two opening positions and the possibility of being cleaned
from inside the building. For every 2.7 meters frontage at least one window is required
with size of about 1.3 * 1.5. |
| |
1.6.4 |
The
window and screen wall glass, including the shading system to the degree that there is
one, will provide optimal solutions in all that concerns impermeability, acoustic
insulation and radiation. |
| |
1.6.5 |
On
the ground floor of the office and production building, it will be possible to integrate
show-windows. |
| |
1.6.6 |
Rear
facades, including the Storage building envelope, need to provide a functional solution
in the main. |
| |
1.6.7 |
Internal
finish of the external envelope in coloured plaster. In all events the building envelopes
need to be in accordance with Town Planning and with Building Plan 9027/c. |
| |
1.7 |
Flooring,
Heights (clearance) and Loads |
| |
1.7.1 |
Flooring
of the office and production buildings will be prepared for the gluing of carpet, ceramic
tiles or P.V.C. |
| |
1.7.2 |
Functional
loads in the office and production building - 500 kg. per square meter. |
| |
1.7.3 |
Ground
floor load in Storage building - 3,000 kg. per square meter. |
| |
1.7.4 |
Load
for the two upper stories of Storage building - 700 kg. per square meter. |
| |
1.7.5 |
Typical
floor height in the office and production building will allow the installation of an
artificial ceiling at a net height of 2.9 meters. |
| |
1.7.6 |
Net
height of the ground floor of the office and production building – 5 meters gross. |
| |
1.7.7 |
Height
of Storage building ground floor – minimum of 7 meters with provision for (dividing)
the floor into two levels, throughout or partially. |
| |
1.7.8 |
Floor
height of Storage as for typical floors of office and production building. |
| |
1.8 |
Impermeability
(sealing) and acoustic insulation. |
| |
1.9 |
Building
roof to be insulated per Standards and recommendations of insulation advisors. Trial-run
inundation (flood) testing of impermeability and drainage is obligatory. |
| |
1.10 |
Building
roofs, balconies, open patios, to be drained per advisor's recommendations. |
| |
1.11 |
Machine
halls, equipment which is noisy or which vibrates such as chillers, shall be treated
acoustically so as to prevent vibration transference and provide the surroundings with
acoustic protection in accordance with the required Standards. |
| |
1.12.1.1 |
Area
of about 100 square meters. |
| |
1.12.1.2 |
Porcelain
granite flooring at a basic price of 35 dollars per square meter. |
| |
1.12.1.3 |
Wall
covering to the acoustic ceiling of porcelain granite at a basic price of 35 dollars per
square meter. |
| |
1.12.1.4 |
Ceilings
from a combination of mineral ceiling and sunken (lowered) plaster per Architect’s
design. Basic price for ceiling panels – 30 dollars per square meter. |
4
| |
1.12.1.5 |
Lighting
at the level of LUX 800 with blending of light fixtures at high level per Architect’s
choice including option for concealed lighting. |
| |
1.12.1.6 |
Broad,
monitored, entrance door which meets escape and fire safety demands. Door design based on
“Securit” requirements with all the required accessories. |
| |
1.12.1.7 |
Designed
Information desk incorporating all the various control systems for the building, (entry
control, CCTV systems, air-conditioning control, search and apprehension systems,
building monitoring system). The work includes the desk and required infrastructure. |
| |
1.12.2.1 |
Area
per planning but not less than 20 square meters. |
| |
1.12.2.2 |
Wall
and floor facing at a basic price of 25 dollars per square meter. |
| |
1.12.2.3 |
Ceilings
at a basic price of 25 dollars per square meter. |
| |
1.12.2.4 |
Customer
entrance doors/fire doors in open mode plus design doors on basis of glass with aluminum
frames to a high standard including all monitoring infrastructure except accessories. |
| |
1.12.3.1 |
Emergency
stairs as per Standard with smooth concrete finish, walls colour-sprayed or equivalent.
Metal painted rails. |
| |
1.12.3.2 |
Main
stairway in office and laboratory building to be at least 1.5 meters in width with stairs
and wall-covering up to height of 1.2 meters in panels of industrial marble or equivalent. |
| |
1.12.3.3 |
Lighting
including emergency lighting, active and passive signage according to requirements. |
| |
1.12.4 |
Reinforced
Shelters |
| |
1.12.4.1 |
Per
demands of the Home Front Command including the required equipment, signage and systems. |
| |
1.12.4.2 |
Planning
will allow for the use of reinforced shelters as meeting rooms. |
| |
1.12.4.3. |
Wall
finish with plaster or equivalent lamination. |
| |
1.12.4.4 |
Preparations
for air-conditioning. |
| |
1.12.4.5 |
Floor
covering, acoustic ceilings and air-conditioning are part of the interior
works. |
| |
1.12.5.1 |
Number
of sanitary ▇▇▇▇ items: toilet bowls, urinal stands, basins, - per Health Ministry,
with a 60% - 40% male/female allocation. |
| |
1.12.5.2 |
Toilet
stalls will be constructed or of plaster-board, insulated up to a
constructed ceiling. |
| |
1.12.5.3 |
Wall
facing up to a height of 2.05 meters. |
| |
1.12.5.4 |
Basic
price for facing - 20 dollars. |
| |
1.12.5.5 |
Top
quality sanitary ▇▇▇▇ – toilet bowls, and suspended urination bowls, concealed
preparations, electronic monitoring. |
5
| |
1.12.5.6 |
"Hamat"
taps, - top quality. |
| |
1.12.5.7 |
Mirrors
of high quality with lighting along whole length of the basin array. |
| |
1.12.5.8 |
Preparations
for auxiliary equipment such as hand-dryers. |
| |
1.12.5.9 |
Ceiling
of removable sheet-metal paneling. |
| |
1.12.5.10 |
Drainage,
floor collectors and ventilation per planning requirements. |
| |
1.12.5.11 |
Formica-covered
doors with minimum 60% fill, – oven-painted sheet-metal door-frames. |
| |
1.12.6 |
“Coffee
Corners” on each floor |
| |
1.12.6.1 |
For
every 1,000 square meters gross of the office, laboratories and production building a
“coffee corner” will be established on the public spaces of each storey with an
area of 12 square meters. |
| |
1.12.6.2 |
Floor
covering – ceramics at a basic price of 20 dollars. Wall covering up to height of
1.2 meters as above. |
| |
1.12.6.3 |
Kitchenette
with “Caesar” marble work surface of up to 2.5 meters in length, sink
and hot and cold water taps. |
| |
1.12.6.4 |
Artificial
ceiling at a cost of 25 dollars per square meter. |
| |
1.12.6.5 |
Electricity,
water and drainage points for beverage and refrigeration machines. |
| |
1.12.6.6 |
The
corner will be freely accessible, - without doors. |
| |
1.12.7 |
Shafts,
electricity cabinets and hydrants |
| |
1.12.7.1 |
All
systems shafts will be sited in public spaces and suited to the system needs. |
| |
1.12.7.2 |
There
will be free access to all the shafts, electricity cupboards, communications boxes and
hydrants through sheet-metal doors of a high quality, – oven-painted. |
| |
1.12.7.3 |
A
shaft will be prepared for a black-tin duct for the dispersal of kitchen and dining-room
emissions. |
| |
1.12.7.4 |
All
required building preparations will be carried out in the Storage building for the
purpose of adding on modular stories to the offices and laboratories and alternatively
for the conversion of Storage floors to offices. |
| |
1.12.8.1 |
The
various machine rooms on the building roofs, in basements or in the yards, will not be
included as areas for the purposes of rental. |
| |
1.12.8.2 |
Their
area size will be taken from the advisors’ plans as being a function of main
supplies to the building. |
| |
1.12.8.3 |
Finish
of technical areas with smooth concrete, or tiling or epoxy according to the type of
activity. |
| |
1.12.9 |
Painting
and whitewashing of the public areas and internal walls of the external
shell. |
| |
1.12.9.1 |
Finish
of all the public areas, including machine rooms, with synthetic whitewash, three coats
until a suitable quality is achieved, including repairs and sealer according to the
infrastructure. |
6
| |
1.12.9.2 |
Paints
manufactured by “Tambour”or equivalent. The painting to be per
directives of the manufacturer. |
| |
1.13.1 |
All
the doors to the entrance areas to the stories, to the machine rooms and so forth, and to
the public areas, will be of the “master” type which cannot be duplicated,
–“Multilock”or equivalent. |
| |
1.14 |
Covered
Parking and Open-air Parking |
| |
1.14.1 |
Parking
stalls per Standards, without double parking. Double parking, – on condition that it
should not make up more than 20% of total parking, – will be deemed one-half of a
standard parking stall. |
| |
1.14.2 |
Parking
of all kinds will be marked and numbered. |
| |
1.14.3 |
The
underground parking lots will be provided with full solutions regarding smoke-dispersal
and suitable solutions as to Radon gas, to the extent found. |
| |
1.14.4 |
The
parking grid will include all the safety markings and all the plain and illuminated
traffic markings per directives of the authorities and the traffic advisor. |
| |
1.14.5 |
The
parking lots system will include lighting, fire and smoke detectors, hydrants,
sprinklers, per the statutory and authorities’ requirements. |
| |
1.15 |
Central
Waste Facility for the Site. |
| |
1.15.1 |
A
complete structure per the requirements of the authorities, including roofing, wall
coverings and cooling to the extent required. |
| |
1.15.3 |
Concentration
of damp waste from the dining-room, dry waste from the offices, production. |
| |
1.15.3 |
Collection
apparatus including a compacter as required, per the advisor and the
authorities. |
| |
1.16 |
The
Plot and Grounds |
| |
1.16.1 |
The
encompassing areas will be tiled with “Ackerstein” tiles or equivalent. |
| |
1.16.2 |
Pavements
incorporated as required with protection on the buildings from careless driving of
vehicles. |
| |
1.16.3 |
Areas
without parking, and not less than 20% of the area, will be landscaped and incorporate
bushes, trees and lawns per requirements of the open-spaces and landscape designer.
Garden lay-out to be equipped with controlled irrigation system. |
| |
1.16.4 |
The
plot will be circumscribed through fencing per demands of Town Planning and which will
prevent the intrusion of vehicles or pedestrians other than via the controlled gates. |
| |
1.16.5 |
The
plot will have two entrances : |
| |
1.16.5.1 |
Main
entrance for vehicles and pedestrians. |
| |
1.16.5.2 |
Operational
entrance for vehicles having access to Storage and production. |
| |
1.16.5.3 |
At
each one of the gates a guard-house will be erected with a system of monitored barriers
which will allow opening with the use of the employee’s card. In addition to the
barriers, a motorized gate will be established at each of the entrances which will allow
for hermetic closure outside times of activity. |
7
| |
1.17.1.1 |
Storage
building will include two freight transport elevators with a load capacity of 1.5 tons.
The elevator cabin will allow walk-in entry of pallets trolley with fork-lift. Opening of
1.2 meters net and depth 1.5 meters net. Height 2.2 meters net. |
| |
1.17.1.2 |
In
the office and production building there will be at least 4 elevators with two of them
operating as freight transport elevators having the same features as the previous section. |
| |
1.17.1.3 |
In
all circumstances, movement analysis should show a service level of waiting up to 30
seconds for 80% of occupants at “rush-hour” times, which are at lunch-time when
there is movement in both directions. |
| |
1.17.1.4 |
The
elevators themselves will be of a high standard of finish and from the world’s
leading corporations. |
| |
1.18 |
Air-Conditioning
System |
| |
1.18.1 |
The
air-conditioning system will be based on the Two Pipe System with heating elements. |
| |
1.18.2 |
The
developer is responsible for setting up the energy plant which will include the chillers,
compressors, air-pumps for dispersing smoke, air-pumps for fresh air, air-pumps for
escaping gasses from the dining-room and all as may be required, including the input of
electricity and computerized control system. Setting specifications for the system will
be at floor entry. |
| |
1.18.3 |
Within
the central plant a unit of about 100 tons cooling will be activated which will allow for
the operation of specific functions such as the computer room, lobby and communications
room – 24 hours a day. |
| |
1.18.4 |
The
central plant will provide solutions to the office floors, the laboratories and
production, (including 500 square meters of Cleanrooms at the Class 100000 level), so
that the temperatures for all the areas at all seasons will not deviate from 23 +- 1
degrees Celsius. |
| |
1.18.5 |
Fresh
air requirements. |
| |
1.18.6 |
Only
1,500 square meters of Storage will be air-conditioned. However, the optional possibility
of increasing the capacities of the plant, when converting the Storage to offices should
be included only in the building costs. |
| |
1.19.1 |
1n
principle, the central electricity system includes the following elements – high
tension, main board and cabling to the electricity panels on each floor. |
| |
1.19.2 |
The
public plant works include setting-up machine-rooms, their air-conditioning or
ventilation, design and execution of the plant including payment to the Electric
Corporation. |
| |
1.19.3 |
The
link-up is estimated at 45 ampere, three-phased, high tension. In any event, the
connection will be coordinated with needs deriving from the Scheme. |
| |
1.19.4 |
In
addition, a KVA 1000 generator will be introduced into the building in support of the
essential systems of the plant such as air-pumps, pumps, elevators and so forth together
with the essential consumer functions, – such as the computer room. |
| |
1.19.5 |
The
building will also be provided with a UPS system of about KVA. The system will support
the computer room and to 10% of the power-field of the individual floor panels. |
| |
1.19.6 |
The
whole switch and cable system connecting the generator and UPS systems will be included
in the electricity system works. |
8
| |
1.19.7 |
Building
control system for the central electricity system only, – with indicators and
multimeter readings from the main panels, generator panels, UPS. |
| |
1.19.8 |
All
lighting, power and communications systems throughout the public spaces. |
| |
1.19.9 |
Public
announcement system throughout the public spaces including the Central Unit. |
| |
1.19.10 |
‘Fire
and smoke search and detection system throughout the public spaces. |
| |
1.20 |
Hydrants,
sprinklers, sewage and drainage |
| |
1.20.1 |
Supply
of water, sewage and drainage systems of a complete nature is the responsibility of the
promoter, and shall include end control panels which have been completely accessorized in
the following areas: parking basements, the site grounds, the machine-halls and public
envelope areas. |
| |
1.20.2 |
As
to building stories, systems will be laid up to the floor entrances whilst disposition
throughout the floor will become part of adjusting interior decorating works which are
not included in the shell specifications. |
| |
1.20.3 |
Calculation
of capacity of the systems will be taken from the Scheme |
| |
1.20.4 |
Plumbing
installations lay-out, – i.e., storey toilets and coffee corners excepting the
dining-room, will be complete and include all elements – from connection to the
municipal grid up to the incorporation of the end monitor. |
| |
1.20.5 |
Regarding
the re-heat kitchen and the dining-room, plumbing elements are to be supplied up to the
kitchen entrance or dining-room. All remaining works, including drainage ducts, water
supply to the various machinery, will become part of the interior works. |
| |
1.20.6 |
Grease
pit and soft-water system (reverse osmosis) are part of the shell specifications. |
| |
2.1 |
The
Table appearing in Appendix E to the Rental Agreement represents the unit prices and
quantities. |
| |
2.2. |
For
the purpose of calculating areas for rentals, the following directions shall
apply: |
| |
2.2.1 |
Where
the thickness of the outside wall is not in excess of 20 cm., – from the outside
contour. |
| |
2.2.2 |
Un-roofed
areas will not be included. |
| |
2.2.3 |
A
niche will not be deemed an area to be calculated. |
| |
2.2.4 |
Machine
rooms of all kinds will not be included in the basements and roofs. |
9
Translation from the
Hebrew
Appendix “E”
(clause 12 of the Lease Agreement)
Capital Rent
| 1. |
The
Lessee will pay the Company in advance on the tenth day of each month,
monthly capital rent as follows (hereinafter collectively called:
“the Capital Rent”): |
Name of
component in
the Capital Rent |
Precise details of the
component |
Sq.m. / number of
parking places |
Dollar/sq.m. price |
Total per month |
Herein referred to as:
"the Base Rent" |
Rent in respect of the Land Cost |
16,000 |
0.5
(*computed pursuant to the Land Purchase Cost in an amount equal in
NIS to $50 per sq.m., of constructed area, to be adjusted according to the effective Purchase Cost). |
$ 8,000 |
| Rent in respect of the construction of the central building shell |
12,000 |
7 |
$ 84,000 |
| Rent in respect of the construction of the storage building shell |
4,000 |
4.5 |
$ 18,000 |
| "Parking Rent" |
Covered parking rent |
200 parking places |
31.5 |
$ 6,300 |
| Open parking rent |
50 parking places |
15 |
$ 750 |
| "Rent in respect of the Interior Works" |
Rent in respect of Interior Works |
16,000 |
To be computed pursuant to the following formula:
$1.15/sq.m., for every $100 of sq.m., of the Company's effective investment in the
Interior Works subject to that prescribed in clause 7(b) in this connection. |
|
|
|
|
|
21
For the removal of any doubt, it is
clarified that the metrage specified in the Table is subject to the changes mentioned in
clause 2A of the Agreement, and pursuant to such change, the amount of the multiple and
the consideration amount mentioned in the Table will be correspondingly changed.
| |
2. |
The
Capital Rent in the Option Periods, to the extent they are exercised,
will be adjusted asfollows: |
| |
(a) |
As
from the date of the commencement of the First Option (to the extent
exercised) - with the exception of the Rent component in respect of
the Interior Works, the Capital Rent will be raised by nine percent (9%)
compared to that – with the exception of the Rent Component in
respect of the Interior Works – which was paid by the Lessee in the
last month of the Lease Term that has expired. |
| |
(b) |
As
from the commencement of the Second Option Period (to the extent it is
exercised) – the components of the Rent prescribed in sub-clause (a)
above will be raised by five per cent (5%) compared with that which was
paid by the Lessee for those components in the last month of the First
Option Period. |
| |
(c) |
As
from the commencement of the Third Option Period (to the extent it is
exercised) – the components of the Rent as prescribed in sub-clause
(a) above will be raised by four per cent (4%) compared with that which
was paid by the Lessee for those components in the last month of the
Second Option Period. |
| |
(d) |
As
from the commencement of the Fourth Option Period (to the extent it is
exercised) – the components of the Rent will be raised by four per
cent (4%) compared with that which was paid by the Lessee for those
components in the last month of the Third Option Period. |
| |
(e) |
As
from the commencement of the Fifth Option Period (to the extent it is
exercised) – the components of the Rent prescribed in sub-clause (a)
above will be raised by three per cent (3%) compared with that which was
paid by the Lessee for those components in the last month of the Fourth
Option Period. |
| |
(f) |
The
Rent component in respect of the Interior Works will be reduced at the
beginning of the First Option Period by 50% compared with the Rent
component in respect of the Interior Works that was paid by the Lessee in
the last month of the Base Lease Term that expired and will remain fixed
without any increases throughout each of the above Option Periods, this
being without derogating from the provisions of the Agreement regarding
the Additional Building Option. |
| 3.3 |
VAT
at the rate that will be fixed by law on the payment date will apply and be paid on each
payment on the date prescribed for that purpose under the Agreement. |
In witness whereof the
parties have set their hands:
| /s/▇▇▇ ▇▇▇▇ /s/▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
/s/Dalit Bar-On /s/Oran Halutzi |
22
Appendix “F” –
Additional Building Option (clause 9 of the Agreement)
| A. |
Planning
and construction of the Additional Building Area |
| |
1. |
Should
the Lessee notify the Company that it wishes to exercise the Additional
Building Option or part thereof as set out in the Agreement, it will
attach to its notice a scheme for the additional construction
(hereinafter: “the Additional Construction Scheme”). |
| |
3. |
The
estimated date of delivery of possession for completing of the Additional
Building Works will be agreed between the parties in writing immediately
and not later than 30 days after the Lessee’s prior notice mentioned
(herein referred to as: “the Additional Construction
Schedule” and “the Additional Construction”), on
the basis of the principles laid down in the Lease Agreement. |
| |
4. |
The
Company will prepare detailed construction plans according to the Additional
Construction Scheme and in accordance therewith the Company will proceed
to obtain the building permit (hereinafter: “the Additional
Construction Shell Plans”). These Plans will be presented to the
Lessee for approval, who will be bound to grant its approval thereto if
they are consistent with the Additional Construction Scheme. The
responsibility for obtaining a building permit for the Additional
Construction rests with the Company. |
| |
5. |
The
Lessee will furnish to the Company, within the number of days specified in
the Additional Construction Schedule, from the date of receiving the final
Additional Construction Shell Plans and the approval thereof (pursuant to
the Additional Construction Schedule), the functional design of the
Additional Construction, in whole or in part. All decisions relating to
the functional design and the standard of finish according to the design
and on any subject pertaining to the Interior Works planning will be in
accordance with the Lessee’s sole discretion, subject naturally to
the engineering constraints resulting from the Shell Plans. On the basis
of the functional design, the Company will prepare detailed plans for the
Interior Works that the Company will carry out in the Building in order to
adapt the same to the Lessee’s needs (hereinafter: “the
Interior Works Plans for the Additional Construction”). |
| |
6. |
The
provisions of clauses 6(c) – (j) and clauses 7 and 8 of the Agreement
will respectively apply to the Additional Construction, mutatis mutandis. |
| B. |
Lease
Term of the Additional Construction Area |
| |
The
Lease Term, the Original Building Quantum, including the Option periods will apply
identically to the Additional Construction, as from the date of the delivery of
possession of the Additional Construction respectively (and without attaching the same to
the term of the Agreement that pertains to the Original Building Quantum). |
| C. |
The
Consideration in respect of the Additional Construction |
| |
The
Capital Rent in respect of the Additional Construction will be calculated pursuant to the
price formula per sq.m. set out in Appendix E with respect to each of the components of
the Capital Rent according to the volume of the Additional Construction, and subject
to the following provisions: |
| |
(1) |
With
respect to the Land Cost component and the Open Parking Places: |
| |
(a) |
The
Land Cost component – will be computed as set out in Appendix E, in
conformity with the metrage of the Additional Construction and will be linked
to the Dollar rate set out in clause 12(b) of the Agreement (i.e. a minimum
rate of NIS4.05 to the Dollar). |
| |
(b) |
The
component of the Open Parking Places – will be computed as set out in
Appendix E, in conformity with the number of Open Parking Places that have been
added within the scope of the Additional Construction, and will be linked to
the Dollar rate set out in clause 12(b) of the Agreement (i.e. a minimum rate
of NIS4.05 to the Dollar). |
23
| |
(2) |
With
respect to the covered parking places and the Shell components: |
| |
(a) |
The
covered parking component – will be computed as set out in Appendix E, in
conformity with the number of covered parking places that have been added
within the scope of the Additional Construction, and will be linked as set out
in sub-paragraph (2)(c) hereof. It is further agreed that to the extent the
Lessee will request the Company to make modifications in the planning of the
covered parking places compared with the “Scheme”, it is possible
that such modifications will lead to an adjustment of the component of the
covered parking places in the Capital Rent described in Appendix E to this
Agreement, in conformity with the price increase or price reduction of the
works resulting from the making of such modifications. |
| |
(b) |
The
Shell component – will be computed as set out in Appendix E, in conformity
with the metrage of the Additional Construction and will be linked as set out
in sub-paragraph (2)(c) hereof. It is further agreed that to the extent the
Lessee will request the Company to make modifications in the planning of the
Shell of the Additional Construction compared with the “Scheme”, such
changes may lead to an adjustment of the component of the construction of the
Shell in the Capital Rent described in Appendix E to this Agreement, in
conformity with the price increase or price reduction of the works resulting
from the making of such modifications. |
| |
(c) |
Linkage
of the components described in sub-clauses (2)(a) – (b) hereof will be
computed in the following manner – the Dollar price appearing in Appendix
E in relation to these two components will be increased or reduced pursuant to
the increase or reduction of the Building Inputs Index of 09/07 (that is the
base Index for such purpose) compared with the Building Inputs Index that will
be known on the date of the commencement of the Additional Building Lease, and
from that date onwards such components will be linked to the representative
rate of exchange of the Dollar known on the date on which each payment is made,
the Dollar rate in no event being less than the representative rate of exchange
of the Dollar that will be known on the date of the commencement of the
Additional Building Lease. For the avoidance of any doubt it is clarified that
the minimum Dollar rate prescribed in clause 12(b) of the Agreement will not
apply to such components in respect of the Additional Construction. |
| |
(3) |
With
respect to the Interior Works component: |
| |
(a) |
The
formula described in the Rent component in respect of the Interior Works in
Appendix E to this Agreement will correspondingly apply with respect to the
Interior Works in the Additional Construction pursuant to the amount of the
Company’s actual investment in the Interior Works in the area of the
Additional Construction, i.e. – the monthly Rent of that component will be
1.15 Dollars per sq.m., for each Dollars per sq.m., of the Company’s
actual investment in the Interior Works in the Additional Construction
according to the rate known at the time of carrying out such works, subject as
prescribed in sub-paragraph (3)(c) hereof. |
| |
(b) |
Linkage
of such component will be computed in the following manner – from the date
of the commencement of the Lease of the Additional Construction, this component
will be linked to the representative rate of exchange of the Dollar known on
the date of the making of each payment, the Dollar rate in no case being less
than the representative rate of exchange of the Dollar that will be known on
the date of the commencement of the Lease of the Additional Construction. For
the avoidance of any doubt it is clarified that the minimum Dollar rate
prescribed in clause 12(b) of the Agreement will not apply to such component in
respect of the Additional Construction. |
| |
(c) |
The
budget restriction fixed in clause 7(b) of the Agreement will similarly apply
to the Additional Construction but will be translated into new shekels
according to the representative rate of exchange of the Dollar known on
15/10/07 and from that date onwards such sum will be increased or reduced
pursuant to the increase or reduction of the Building Inputs Index of 09/07
compared with the Building Inputs Index that will be known on the date of the
Lessee’s notice of its wish to exercise the Option to carry out the
Additional Construction. |
24
| |
(1) |
To
the extent the Lessee will have notified the Company of its wish to exercise
the Additional Building Option or part thereof as stated above, a further
guarantee for the performance of its undertakings will be added to the
collateral that the Lessee has delivered to the Company for the
performance of all the Lessee’s undertakings under this Lease
Agreement, such guarantee being of a bank or insurance company, at the
choice of the Lessee, and will be linked to the representative rate of
exchange of the Dollar as set out below: |
| |
(a) |
The
guarantee will be in the amount of forty-five percent (45%) of the Company’s
investments in the Interior Works in the above Additional Construction Area but
in no case more than the amount of the Capital Rent in respect of the first year’s
Lease that is paid by the Lessee in respect of the Additional Construction. |
| |
(b) |
The
amount of the bank guarantee mentioned will progressively reduce throughout the
remaining years of the Lease ensuing during the Lease Term so that at the
beginning of the First Option Period, and during each of the Option Periods, to
the extent they will be exercised, the bank guarantee will be in an amount
equal to the last three months’ of the Lease for the Shell Component
only, and paid by the Lessee to the Company on the expiration of the Lease
Term in respect of the Additional Construction. |
| |
(c) |
The
form of the Lessee’s guarantee in respect of the Additional Construction
as defined below, will be pursuant to the form of the guarantee attached as Appendix
“I-1” to this Agreement. |
| |
(hereinafter:
“The Lessee’s Guarantee for the Additional Construction”). |
| |
(2) |
The
dates for furnishing the Lessee’s Guarantee for the Additional
Construction to the Company will be as follows: |
| |
(a) |
Shortly
after the Lessee’s notice to the Company regarding its wish to exercise
the Additional Building Option, and subject to the Company not having given
notice that it is refusing to implement the same (without this conferring upon
it any right to do so), and not later than 30 days after such date – the
Lessee will provide the Company with a guarantee in the sum of 25% of the
amount of the collateral described in sub-paragraph 1(a) above. |
| |
(b) |
The
Lessee will provide the Company, at the end of one half of the number of the
months of construction that were agreed between the parties according to the
Additional Construction Schedule, and subject to the progress of the
construction pursuant to the time schedule and the terms thereof as set out in
this Agreement – a further 25% of the amount of the collateral described
in sub-paragraph 1(a) above. |
| |
(c) |
On
and against delivery of possession of the Additional Construction to the Lessee
– the Lessee will provide the Company with the remaining 50% of the amount
of the collateral described in sub-paragraph 1(a) above. For the avoidance of
any doubt, the guarantee that will be given according to this sub-paragraph (c)
will similarly extend to retroactive payment of all the differentials pursuant
to the actual costs, that were not known on the dates set out in sub-paragraph
(a) – (b) above, and were therefore fixed as described in sub-paragraph
(d) hereof, and which are known on the date of the delivery of possession of
the Building. |
| |
(d) |
It
should be clarified that until delivery of possession of the Additional
Construction, the collateral according to the amount of the first year’s
Lease of the Additional Construction only will be calculated whereby the
component of the Land Cost will be computed pursuant to that stated in
paragraph (c)(1) above and the Interior Works component of the Capital Rent
will be computed according to $350/sq.m., of the Company’s investment in
the Interior Works. |
| |
(e) |
The
Company will return to the Lessee on the expiration of the Term of the
Agreement, the bank guarantee after deducting debts (if existing) pursuant to
that prescribed in clause 26(a) of the Lease Agreement. Should the Lessee’s
guarantee or part thereof be lawfully called, the Lessee will be immediately
bound to make up the amount of the guarantee and/or provide a new guarantee,
without derogating from any other right of the Company. |
25
| |
(3) |
As
security for the fulfilment of all the Company’s undertakings towards
the Lessee until the date of delivery of possession of the Additional
Construction, the Company will provide the Lessee with a performance bond
of a bank or insurance company concurrently with and pursuant to the dates
and amounts set out in paragraph (d)(2)(a) – (d)(2)(b) above (that
is, 25% + 25% only) (herein referred to as: “the Company’s
Guarantee”). Upon the conclusion of the process of delivering
possession of the Additional Construction, the same being constructed and
properly usable as stated in clause 10(a) of the Agreement, the bank
guarantee will be returned to the Company. |
| |
The
form of the Company’s guarantee with respect to the Additional Construction will be
pursuant to Appendix “I-2” to this Agreement. |
| |
Disputes
in all aspects relating to the Additional Building Option will be determined by the
Tribunal. |
| |
The
remaining terms of the Agreement to the extent they have not been expressly modified,
will identically apply to the Additional Building Option, mutatis mutandis. |
26
Appendix “G”
– Insurance
| |
This
Appendix is that which contains the insurance provisions to the Agreement dated
__________ between ___________ and ____________ (hereinafter: “the Agreement”). |
| |
The
Lessee’s Insurance Obligations |
| |
2.1 |
Without
derogating from the provisions of this Agreement and from the Lessee’s liability
under this Agreement and/or by law, the Lessee undertakes to effect and maintain the
following insurances with an authorized and reputable insurance company. |
| |
Obligation
to insure the Lessee’s works in the Premises |
| |
2.2 |
If
any works are carried out at the Premises by and/or on behalf of the Lessee (otherwise
than by means of the Lessor and/or any person on its behalf) on any date during the Lease
Term, the Lessee undertakes to furnish to the Company a certificate of the making of the
Lessee’s works insurance, attached to this Agreement and which constitutes an
integral part thereof and is marked Appendix G-1 (respectively called: “the Lessee’s
Works Insurance Certificate and “the Lessee’s Works Insurance”)
such certificate(s) being signed by the insurer thereof. The Lessee declares that it is
aware that furnishing the Lessee’s Works Insurance Certificate mentioned is a
preliminary condition precedent to carrying out any works at the Premises, and the
Company will be entitled (but under no duty) to prevent the Lessee from carrying out
works at the Premises, in the event of such Certificate not being furnished to it before
commencement of the works. |
| |
Nothing
in this clause shall permit the Lessee to effect works at the Premises over and above
that stated in the Agreement. |
| |
The
Lessee’s obligation for permanent insurances |
| |
2.3 |
The
Lessee undertakes, as from the date on which any property is moved into the Premises or
the date on which possession of the Premises is taken, whichever is the earlier, and
until the expiration of the Lease Term, to effect and maintain the insurances detailed in
the Insurance Certificate attached to the Agreement and constituting an integral part
thereof and marked as Appendix G-2 (respectively called: “the Lessee’s
Regular Insurance Certificate” and the “Lessee’s Regular Insurances”). |
| |
2.4 |
It
is agreed that the Lessee may refrain from effecting insurance of consequential loss, in
whole or in part, described in clause (4) of the Lessee’s Regular Insurance
Certificate, save that the exemption mentioned in clause 2.11 hereof will apply as if
such insurances had been fully made. |
| |
The
Company’s Insurance Obligations |
| |
2.5 |
Without
derogating from the provisions of the Agreement and without derogating from the Company’s
responsibility under this Agreement and/or at law, the Company undertakes to effect and
maintain the following insurances with an authorized and reputable insurance company. For
the avoidance of any doubt, the insurance obligations set out below will similarly apply
in respect of any modification or addition to the Premises or the Building that will be
made in the future according to the terms of the Agreement, by the Lessor and/or any
person representing it (for the avoidance of any doubt, the Lessee is not a person
representing the Lessor). |
| |
Obligation
to insure the Setup works of the Building |
| |
2.6 |
The
Company undertakes to effect and maintain, from the date of the commencement of the setup
works of the Building until the date of the conclusion of the construction thereof, and
for the duration of the extended maintenance period of 24 months, insurance that insures
the setup works of the Building described in the Company’s Works Insurance
Certificate attached to this Agreement and constituting an integral part thereof and
marked as Appendix G-3 (respectively called: “the Building Setup Insurance
Certificate” and the “Building Setup Insurance”). |
27
| |
The
Company will furnish to the Lessee on demand, the Building Setup Insurance Certificate
signed by the insurer thereof. |
| |
The
Company’s Regular Insurance Obligation |
| |
2.7 |
As
from the date of the delivery of any parts of the Building and/or the commencement of the
use thereof (in respect of those parts) and/or the termination of the insurance period
under the Setup Works policy, whichever is the later, and for the entire duration of the
Lease Term, the Lessee undertakes to effect and maintain the insurances described in the
Insurance Certificate attached to this Agreement and constituting an integral part
thereof and marked as Appendix G-4 (respectively called: “the Company’s
Regular Insurance Certificate” and the “Company’s Regular Insurances”). |
| |
2.8 |
It
is agreed that the Company may desist from effecting insurance for consequential loss, in
whole or in part, as set out in clause 4 of the Company’s Regular Insurance
Certificate, save that the exemption set out in clause 2.12 hereof will apply as if such
insurances had been made in full. |
| |
2.9 |
If,
in the opinion of any of the parties, it is necessary to effect additional and/or
supplementary insurance to that party’s insurances, such party undertakes to effect
and maintain such additional and/or supplementary insurance. In any additional or
supplementary property insurance that will be made by such party a clause will be
inserted regarding the waiver of a right of subrogation against the counterparty and any
of its successors. |
| |
2.10 |
Each
party undertakes to adjust the insurance amounts in respect of those insurances that are
made by it according to clauses (1) and (4) of the relevant Regular Insurance Certificate
with respect to it from time to time, so that they will always reflect the full value of
the subject matter to which the insured’s insurance thereunder relates. |
| |
2.11 |
The
Lessee exempts the Company and/or any of its successors from liability in respect of
damage for which it is entitled to indemnity under the insurances that are effected
pursuant to clause (1) of the Lessee’s Works Insurance Certificate, clauses (1) and
(4) of the Lessee’s Regular Insurance and the property insurances that it effects as
provided by clause 2.9 above (or for which it would have been entitled to indemnity had
it not been for the deductibles specified in the policies), save that the exemption from
such liability will not apply for the benefit of any person who has maliciously caused
damage. |
| |
2.12 |
The
Company exempts the Lessee and/or any of its successors from liability in respect of
damage for which it is entitled to indemnity under the insurances that are effected
pursuant to clause (1) of the Building Setup Insurance Certificate, clauses (1) and (4)
of the Company’s Regular Insurance Certificate and property insurances that it
effects as provided in clause 2.9 above (or to which it would have been entitled to
indemnity had it not been for the deductibles specified in the policies), save that such
exemption from liability will not apply for the benefit of any person who has caused
damage maliciously. |
| |
2.13 |
Each
party undertakes to furnish to the other, on the date of receiving possession of the
Premises, a certificate regarding the making of its respective Regular Insurances. Prior
to the date of the expiration of the regular insurance period of any of the parties, and
on the demand of the counterparty, such party undertakes to deposit with the demanding
party, a certificate of its regular insurances in respect of the extension of the
validity thereof for a further year. Each party undertakes to re-deposit its regular
insurance certificate every insurance year, as long as this Agreement is in force. |
| |
2.14 |
Whenever
the insurer of any party gives notice to such party that any of its regular insurances
has been cancelled or is about to be adversely changed, such party undertakes to
re-effect that insurance and furnish a certificate of the making of the new insurance, 30
days prior to the date of the cancellation or adverse change of such insurance. |
| |
2.15 |
The
parties may examine the insurance certificates that will be furnished by the counterparty
as set out above, and the counterparty undertakes to effect any modification or amendment
that will be required in order to adjust the same to their undertakings set out in this
Agreement. The parties declare that the right of examination and the giving of an
instruction described above do not impose upon them and/or any person on their behalf any
duty and responsibility whatsoever in any matter relating to the insurance certificates
of such counterparty, or the nature, extent and validity of the insurances that are
effected in accordance with such certificates or with respect to the lack thereof, nor do
they derogate from any obligation whatsoever that is imposed by this Agreement and/or at
law. |
28
| |
2.16 |
The
parties undertake to fulfil the conditions of the insurance policies that they effect,
fully and punctually pay insurance premiums, and attend to and verify that the regular
insurances will be renewed from time to time as necessary, and be in effect for the
entire duration of the Agreement Term. |
| |
2.17 |
For
the avoidance of any doubt it is hereby agreed that the liability limits required by that
stated in the insurance certificates annexed hereto are to be regarded as a minimum
demand that is imposed upon the parties. The parties declare and acknowledge that each
party will be estopped from raising any claim and/or demand against the other and/or
against any person on its behalf on any matter related to such liability limits. |
29
Appendix “G-": The Lessee’s
Works Insurance Certificate
Date: ___________________
Industrial Buildings Corporation
Ltd. and/or the parent and/or subsidiary and/or sister and/or integrated and/or
related companies (hereinafter collectively: "the Lessor")
of ▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇.,
Herzliya
Dear Sir or Madam,
| RE: |
Certificate
of insurances in the name of ___________________
(hereinafter: “the Lessee”)
in all aspects relating to the leasing of the constructed property on the land known
as Block 11492 Parcel 83 Sites 11, 12, 18 and 19 in Yokneam(respectively called:
“the Premises” and “the Project”). |
We hereby certify that as from the
____ until the ________ day of __________ (hereinafter: “the Works Period”)
and for the duration of the extended maintenance period of 12 months (the Works Period
and the maintenance period being hereinafter collectively called: “the Insurance
Term”) our company has effected contracting works insurance (Policy No. ______)
in the name of the Lessee, contractors and sub-contractors (at all degrees) and also in
the name of the Lessor, that insures the works that are being carried out by and/or on
behalf of the Lessee (hereinafter: “the Works”) as hereinafter set
forth, the volume of the cover provided under such insurance being not less than the
volume of the cover that is provided under the form of policy known as BIT 2000 (or
the BIT policy comparable thereto on the date of the making of the insurance),
including all the extensions, and which form an integral part of the form of such policy:
| |
Insurance
insuring the Works, in the reinstatement value thereof (including the materials that are
supplied by the Lessor) against loss or damage that is caused during the Insurance Term.
For the avoidance of any doubt, this Section includes a clause regarding the waiver of
the right of subrogation against the Lessor and/or any of its successors, save that such
waiver will not apply for the benefit of any person who has caused damage maliciously.
The Section similarly contains an express extension on cover to property adjacent to that
on which work is in progress with a liability limit of $100,000 (one hundred thousand US
dollars). |
| 2. |
Section
2 – third-party liability insurance in respect of liability
resulting from the Works with a liability limit as set out below.
Such Section includes a cross-liability clause whereby the insurance
is deemed to have been made separately for each of the individuals
comprising the insured. The Section expressly states that the Lessor’s
property is deemed to be third-party property, except that which is
included in the extension of adjacent property and property on which
work is in progress. |
| |
The
liability limit is: $________ per event and cumulatively according to the Section (*).
The Section mentioned is extended to include the following matters: |
| |
a. |
Subrogation
claims of the National Insurance Institute; |
| |
b. |
Physical
damage resulting from the use of mechanical, engineering equipment that is
a motorized vehicle which is not compulsorily insurable; |
| |
c. |
Liability
by reason of damage that is caused consequent upon earthquakes and
weakening of support, with a liability limit of $250,000 per event. |
| 3. |
Section
3 – employer’s liability insurance insuring liability towards
any of the persons employed in carrying out the Works, in respect of
physical injury or professional sickness that may be caused to any of
them during the course of and in consequence of such employment of
them, with a liability limit of $5,000,000 per claimant, per event
and cumulatively according to the Section. This insurance does not
include any limitation regarding works at height or at depth, working
hours, bait and poisons, contractors, sub-contractors and their
employees and the lawful employment of young persons. For the
avoidance of any doubt, the Section includes a waiver of the right of
subrogation against the Lessor and/or any of its successors, save
that such waiver will not apply for the benefit of the person who has
wilfully caused the insurance event. |
30
The above policy has priority over
any insurance that is made by the Lessor, and we waive any claim and/or demand of sharing
in the Lessor’s insurances. In addition, a breach of any of the terms of the policy
and the stipulations thereof in good faith by and/or on behalf of the Lessee, will not
derogate from the Lessor’s rights to obtain indemnity under the policy. In addition,
we undertake that the above policy will not be cancelled nor will any adverse change be
made therein during the Insurance Term, unless written notice is given by registered mail
to the Lessor, at least 30 days in advance. For the avoidance of any doubt, we confirm
that the Lessee is solely responsible for payment of the premiums for the above policy and
bears the deductible that applies under such policy.
Subject to the terms and
exceptions of the original policy to the extent they have not been expressly varied by the
foregoing.
Yours faithfully,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Insured's certificate) |
(Insured's stamp) |
(Signatory's Name) |
(Position) |
| (*) |
The
liability limit will be an amount equal to $2,000 multiplied by the area of
the Works in sq. m, save that such amount will not be less than
$100,000 (one hundred thousand US dollars) nor exceed $1,000,000 (one
million US Dollars) per event and cumulatively according to this
Section. |
31
Appendix
“G-2": Certificate of the Lessee’s Regular Insurances
Date: ___________________
Industrial Buildings Corporation Ltd. and/or the parent and/or subsidiary and/or sister and/or
integrated and/or related companies (hereinafter collectively: "the Lessor")
of ▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇.,
Herzliya
Dear Sir or Madam,
| RE: |
Insurance
Certificate in the name of ___________________ (hereinafter: "the Lessee")
in all
aspects relating to the leasing of the constructed property on the land known as Block
11492 Parcel 83 Sites 11, 12, 18 and 19 in Yokneam (respectively called: "the
Premises" and "the Project"). |
We hereby certify that the Lessee
effects through us the insurance(s) set out below for the duration of the insurance
term(s) specified in such insurance(s) (hereinafter: “the Insurance
Term”) the volume of the cover provided under the insurance(s) mentioned being
not less than the cover provided according to the form of the policies known as BIT
(version 2007) or the comparable BIT policies on the date of the making of the
insurance(s)), including all the extensions that are provided for the insurance under such
version:
| 1. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
| |
Insurance
of the contents of the Premises and any other property that is moved on to the Premises
and/or the Project by or on behalf of the Lessee (including equipment, furniture,
installations and inventory), and any modification, improvement and addition to the
Premises that have been or will be made by the Lessee and/or on its behalf (otherwise
than by the Lessor and/or persons on its behalf) in reinstatement value against loss or
damage following the usual risks in extended fire insurance, including fire, smoke,
lightning, explosion, earthquake, storm and tempest, flood, damage from liquid and
bursting of pipes, glass breakage, harm by vehicles, harm by aircraft, uprising, strikes,
malicious damage and burglary damage. The insurance includes a clause whereby the insurer
waives the right of subrogation against the Lessor and/or against any of its successors,
save that such waiver will not apply for the benefit of any person who has caused damage
maliciously. |
| 2. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
| |
Third-party
liability insurance that insures the Lessee’s liability by law in respect of
physical injury or damage to property that could be caused to a person and/or to the
property of any person or body in or in the vicinity of the Premises, with a limit on
liability as set out below. The insurance is not subject to any restriction regarding
liability resulting from fire, explosion, panic, lifting, loading and unloading
instruments, defective sanitary installations, poison, any harmful thing in food or
drink, strike and lock-out, liability in respect of and towards contractors,
sub-contractors (of any degree) and their employees, animals, as well as subrogation
claims on the part of the National Insurance Institute. The insurance is extended to
indemnify the Lessor in respect of liability that may be imposed upon it following an act
and/or omission of the Lessee and/or of any person on its behalf, this being subject to a
cross-liability clause whereby the insurance is deemed to have been made separately for
each of the individuals comprising the insured. The liability limit is the sum of $______
per event and cumulatively according to the policy (*). |
| 3. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
| |
Employer’s
liability insurance that insures the Lessee’s liability towards its employees in
respect of physical injury and/or professional sickness that may be caused to any of them
during the course of and in consequence of their work at and in the vicinity of the
Premises, with a liability limit of $1,500,000 per claimant, $2,500,000 per event and
$5,000,000 and cumulatively according to the policy. The insurance does not include any
restriction regarding works at height or at depth, working hours, bait and poison, and
also in regard to the lawful employment of young persons. The insurance is extended to
indemnify the Lessor if it is alleged, for purposes of the occurrence of a work accident
and/or any professional sickness, that it bears the liabilities of an employer towards
any of the Lessee’s employees. In addition, the insurance contains a clause of
waiver of a right of subrogation against the Lessor and/or against any of its successors;
save that such waiver will not apply for the benefit of any person who has maliciously
caused the insurance event. |
32
| 4. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
| |
Consequential
loss insurance that insures loss of “gross profit” to the Lessee in consequence
of loss or damage that is caused to property that is insured under paragraph 1 above
and/or to the Premises and/or to the building of the Project, as a result of one of the
risks that is insured under paragraph 1 above, for the duration of an indemnity period of
12 months. The insurance contains a clause whereby the insurer waives the right of
subrogation against the Lessor and/or against any of its successors; save that such
waiver will not apply for the benefit of any person who has maliciously caused
damage.(**) |
We confirm that the above policy(s)
takes priority over any insurance that is made by the Lessor, and we waive any claim
and/or demand of sharing in the Lessor’s insurances. In addition, we confirm that the
non-fulfilment of any of the terms of the policy(s) and the stipulations thereof in good
faith by the Lessee and/or by any person on its behalf will not derogate from the
Lessor’s right to receive indemnity under the policy(s). In addition, we undertake
that the policy(s) will not be cancelled nor will any adverse change be made therein for
the duration of the Insurance Term, unless notice thereof is given to the Lessor by
registered mail, at least 30 days in advance. For the avoidance of any doubt, it is
clarified that the Lessee will solely be subject to the obligation to pay the premiums in
respect of the policy(ies) and the obligation of bearing the deductibles thereunder.
Subject to the terms and
exceptions of the original policies to the extent they have not been expressly varied by
the foregoing.
Yours faithfully,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Insured's certificate) |
(Insured's stamp) |
(Signatory's Name) |
(Position) |
| (*) |
The
liability limits will be an amount equal to $3,500 multiplied by the area of
the Premises in sq.m., but not be less than $250,000 (two hundred and
fifty thousand US dollars) nor exceed $5,000,000 (five million US
dollars) per event and cumulatively under the policy. |
| (**) |
See
paragraph 2.5 of the Insurance Appendix. |
33
Appendix
“G-3": The Lessor’s Works Insurance Certificate
Date: ___________________
----------------------------------
Company (hereinafter collectively: "the Lessee")
of __________________________
Dear Sir or Madam,
| RE: |
Insurance
Certificate in the name of Industrial Buildings Corporation Ltd., (hereinafter:
"the Lessor") in all aspects relating to the building to be constructed on the
Land known as Block 11492 Parcel 83 Sites 11, 12, 18 and 19 in Yokneam
(respectively called below: "the Building" and "the Premises"). |
We hereby certify that as from the
____ until the ________ day of __________ (hereinafter: “the Works
Period”) and for the duration of the extended maintenance period of 24 months
(the Works Period and the maintenance period being hereinafter collectively called:
“the Insurance Term”) our company has effected contracting works
insurance (Policy No. ______) in the name of the Lessor, contractors and sub-contractors
(at all degrees) that insures the works for constructing the Building (hereinafter:
“the Works”) as hereinafter set forth, the volume of the cover provided
under such insurance being not less than the volume of the cover that is provided under
the form of policy known as BIT 2000 (or the BIT policy comparable thereto
on the date of the making of the insurance):
| |
Insurance
that insures the Works, in reinstatement value against loss or damage that is caused
during the Insurance Term. For the avoidance of any doubt, this Section includes a clause
regarding the waiver of the right of subrogation against the Lessee and/or any of its
successors, save that such waiver will not apply for the benefit of any person who has
caused damage maliciously. |
| 2. |
Section
2 – third-party liability insurance in respect of liability
resulting from the Works with a liability limit as set out below.
Such Section includes a cross-liability clause whereby the insurance
is deemed to have been made separately for each of the individuals
comprising the insured. |
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The liability
limit is: $5,000,000 per event and cumulatively according to the Section.
The Section
does not contain any limitation regarding: |
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a. |
Subrogation
claims of the National Insurance Institute; |
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b. |
Physical
damage resulting from the use of mechanical, engineering equipment that is
a motorized vehicle which is not compulsorily insurable; |
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c. |
Liability
by reason of damage that is caused consequent upon earthquakes and
weakening of support, with a liability limit of $250,000 per event. |
| 3. |
Section
3 – employer’s liability insurance insuring liability towards
any of the persons employed in carrying out the Works, in respect of
physical injury or professional sickness that may be caused to any of
them during the course of and in consequence of such employment of
them, with a liability limit of $5,000,000 per claimant, per event
and cumulatively according to the Section. This insurance does not
include any limitation regarding works at height or at depth, working
hours, bait and poisons, contractors, sub-contractors and their
employees and the lawful employment of young persons. For the
avoidance of any doubt, the Section includes a waiver of the right of
subrogation against the Lessee and/or any of its successors, save
that such waiver will not apply for the benefit of the person who has
maliciously caused the insurance event. |
The above policy has priority over
any insurance that has been made by the Lessee, and we waive any claim and/or demand of
sharing in the Lessee’s insurances. In addition, a breach of any of the terms of the
policy and the stipulations thereof in good faith by and/or on behalf of the Lessor, will
not derogate from the Lessee’s rights to obtain indemnity under the policy. In
addition, we undertake that the above policy will not be cancelled nor will any adverse
change be made therein during the Insurance Term, unless written notice is given by
registered mail to the Lessee, at least 30 days in advance. For the avoidance of any
doubt, we confirm that the Lessor is solely responsible for payment of the premiums for
the above policy and the subject of the deductible that applies under such policy.
34
Subject to the terms and
exceptions of the original policy to the extent they have not been expressly varied by the
foregoing.
Yours faithfully,
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(Insured's stamp) |
(Signatory's Name) |
(Position) |
35
Appendix
“G-4": Insurance Certificate of the Lessor’s Regular Works
Date: ___________________
----------------------------------
Company (hereinafter collectively: "the Lessee")
of __________________________
Dear Sir or Madam,
| RE: |
Insurance
Certificate in the name of Industrial Buildings Corporation Ltd., (hereinafter:
"the Lessor") in all aspects relating to the leasing of the property being
constructed on the Land known as Block 11492 Parcel 83 Sites 11, 12, 18 and 19
in Yokneam (respectively called below: "the Premises" and "the Building"). |
We hereby certify that the Lessor
effects through us the insurance(s) set out below for the duration of the insurance
term(s) specified in such insurance(s) (hereinafter: “the Insurance
Term”) the volume of the cover provided under the insurance(s) mentioned being
not less than the cover provided according to the form of the policies known as BIT
(version 2007) or the comparable BIT policies on the date of the making of the
insurance(s)), including all the extensions that are provided for the insurance under such
version:
| 1. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
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Insurance
of the structure of the Building including parts linked thereto, as well as all the
additions and improvements that have been made in the Building by the Lessor and/or on
its behalf, in reinstatement value against loss or damage following the usual risks in
extended fire insurance, including fire, smoke, lightning, explosion, earthquake, storm
and tempest, flood, damage from liquid and bursting of pipes, harm by vehicles, harm by
aircraft, uprising, strikes, malicious damage and burglary damage. Such insurance
includes a clause regarding the waiver of a right of subrogation against the Lessee
and/or against any of its successors, save that such waiver will not apply for the
benefit of any person who has caused damage maliciously. |
| 2. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
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Third-party
liability insurance insuring the liability of the Lessor by law in respect of physical
injury or damage to property that could be caused to a person or property of any
individual or body whatsoever in and in the vicinity of the Building, with a limit on
liability as set out below. The insurance is not subject to any restriction regarding
liability resulting from fire, explosion, panic, lifting, loading and unloading
instruments, defective sanitary installations, poison, any harmful thing in food or
drink, strike and lock-out, liability in respect of and towards contractors,
sub-contractors (of any degree) and their employees, animals, as well as subrogation
claims on the part of the National Insurance Institute. The insurance is extended to
indemnify the Lessee in respect of liability that may be imposed upon it following an act
and/or omission of the Lessor and/or any of its successors, this being subject to a
cross-liability clause whereby the insurance is deemed to have been made separately for
each of the individuals comprising the insured. The liability limit is the sum of
$3,000,000 per event and cumulatively according to the policy. |
| 3. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
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Employer’s
liability insurance that insures the Lessor’s liability towards its employees in
respect of physical injury and/or professional sickness that may be caused to any of them
during the course of and in consequence of their work at and in the vicinity of the
Premises, with a liability limit of $1,500,000 per claimant, $2,500,000 per event and
$5,000,000 and cumulatively according to the policy. The insurance does not include any
restriction regarding works at height or at depth, working hours, bait and poison, and
also in regard to the lawful employment of young persons. The insurance is extended to
indemnify the Lessee in the event of it being alleged with respect to the occurrence of
any work accident and/or any professional sickness, that it bears any duties of an
employer towards any of the Lessor’s employees. In addition, the insurance contains
a clause of waiver of a right of subrogation against the Lessee and/or against any of its
successors; save that such waiver will not apply for the benefit of any person who has
maliciously caused the insurance event. |
36
| 4. |
Policy
no. _______________ for the period commencing on _________________ and expiring
on ________________ |
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Insurance
of consequential loss insuring loss of rent and parking fees (if any) on account of
damage that has been caused to the structure of the Building following the risks set out
in paragraph 1 above for the duration of an indemnity period of 12 months. Such insurance
will contain a clause whereby the insurer waives the right of subrogation against the
Lessee and/or against any of its successors; save that such waiver will not apply for the
benefit of any person who has caused malicious damage. |
We confirm that the above policy(s)
takes priority over any insurance that is made by the Lessee, and we waive any claim
and/or demand of sharing in the Lessee’s insurances. In addition, we confirm that the
non-fulfilment of any of the terms of the policy(s) and the stipulations thereof in good
faith by the Lessor and/or by any person on its behalf will not derogate from the
Lessee’s right to receive indemnity under the policy(s). In addition, we undertake
that the policy(s) will not be cancelled nor will any adverse change be made therein for
the duration of the Insurance Term, unless notice thereof is given to the Lessee by
registered mail, at least 30 days in advance. For the avoidance of any doubt, it is
clarified that the Lessor will solely be subject to the obligation to pay the premiums in
respect of the policy(s) and the obligation of bearing the deductibles thereunder.
Subject to the terms and
exceptions of the original policies to the extent they have not been expressly varied by
the foregoing.
Yours faithfully,
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37
Appendix
“H”: Principles of Agreement
Industrial Buildings
Corporation
13/11/2007
Lumenis
By means of ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇ (Eng.) and Advocate ▇▇▇▇▇ ▇▇▇▇▇
| RE: |
Principles
of the Agreement to set up and lease Lumenis House in the Yokneam Industrial Zone
(hereinafter: “the Document” or “this Document”) |
We, the undersigned, have submitted a
proposal to Lumenis within the framework of a process to obtain bids in the above project.
Attached is the Price Table that
constitutes our final financial proposal, this being only in CPI-linked shekel prices, as
set out below. The scheme and the specification that we received from you constitutes an
integral part of our proposal.
At your request, we hereby confirm
that the principles of the agreement as set out below, are agreed to by us, and that
within the framework of the negotiation towards forging the binding agreement, we will not
request to deviate from these principles.
For the avoidance of any doubt, we
would make it clear that we are aware that as long as no detailed agreement is signed by
both parties, Lumenis will not be committed towards us in any manner or form, all as set
out also in the previous documents that we received from Lumenis in connection with the
process for obtaining proposals in the above project.
For the avoidance of any doubt it is
hereby clarified that if the parties fail to reach the signature of a detailed agreement
due to unreasonable or unacceptable or illogical requirements on the part of Lumenis with
respect to any other conditions of the detailed agreement, then we will not be committed
towards Lumenis either under this present Document, or at all.
Everything stated and clarified in
the Lumenis documentation in the process for obtaining proposals will apply overall to the
agreement that will be signed, unless and to the extent it has been otherwise made clear
in this Document.
All the reservations that were
included in our proposals and previous applications, are null and void, save and to the
extent they have been expressed in this document.
In the agreement that will be signed
we will undertake to acquire the capitalized leasehold rights in the land in the New
Yokneam – Mansura Industrial Zone, that is known as sites ▇▇. ▇▇, ▇▇, ▇▇ ▇▇▇ ▇▇ ▇▇
▇▇▇▇▇▇ no. 83 in Block 11492 (hereinafter: “the Site”), and construct
thereon buildings as set out in the scheme (hereinafter: “the
Construction”) and lease the same to Lumenis. In the agreement, Lumenis will
undertake to take a lease of the buildings for a term of 10 years at the least, and in
addition a right of option will be granted to Lumenis to extend the lease period for five
further lease periods of three years each, totaling all 25 years, on the conditions that
will be set out in this Document.
Clarification: our proposal and
the principles of the above agreement and appearing below will, mutatis mutandis,
also apply with respect to the alternative sites that we suggested.
General
| 1. |
Before
signing the agreement, we will verify the rights in the Site, and the
planning status and the Town Building Plans, and the procedures
applicable with respect to the Site and with respect to the
allocation thereof and the possibility of acquiring rights therein,
with any authority or institution that pertains to the matter,
including the offices of the Land Registrar, Israel Lands
Administration, the Ministry of Trade and Industry, local authority,
Planning Commissions, offices of the municipal company, etc.,
(hereinafter: “the Investigations”). |
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| 2. |
Lumenis
is not responsible for making any such Investigation and will have no
responsibility in this connection, and all the data that were
presented by Lumenis, prior to the signature of the agreement,
including data that were distributed by Lumenis’ representatives
in documents and/or at meetings, do not bind it nor do they impose
upon it any obligation or responsibility on the matter. |
| 3. |
Shortly
after our signature of these principles of agreement, we will continue
to examine and check with the Israel Lands Administration and the
Ministry of Trade and Industry, the possibility of taking/allocating
the rights in the land, and also embark on the planning stage
investigation, all with the object of complying with the time
schedule, this being prior to the signature of a binding agreement,
and we agree that should a binding agreement not be signed for any
reason whatsoever, we will not be entitled to any compensation or
payment in consequence thereof. |
| 4. |
The
agreement that will be signed will obligate us to acquire/lease the rights
in the land, unless we prove that despite our efforts, acquiring the
rights has been prevented due to factors that are beyond our control.
Notice of the implausability of acquiring the rights or delay that is
beyond our control, as stated above, will be given by us to Lumenis
within three months of the signature of the agreement. On this
condition being fulfilled, the contract will be rescinded and each
party will bear its own costs and neither party will have any claims
against the other, all unless otherwise agreed by the parties. |
| 5. |
Lumenis
alone will have a right, but not the duty, to decide to rescind the
contract if it transpires that the cost of the land per constructed
meter will exceed $100. In the case of a rescission of the contract,
neither of the parties will have any claim or demand against the
other, and Lumenis will pay no payment or compensation in respect of
the expenses that have been incurred by the developer, including in
respect of planning. The definition of a constructed meter is as set
out below. |
| 6. |
Lumenis
will co-operate at our request, in presenting its needs and in
clarifying the purpose of the project to the Israel Lands
Administration and/or the local authority and/or the Ministry of
Trade and Industry and/or the Planning Commissions and/or any like
authority to the extent this is reasonably required in order to
assist obtaining approval to acquire the rights in the land in
particular, and promoting the project in general (for the avoidance of any
doubt there is no intention to financially assist or provide
assistance which involves any real financial cost). |
Construction
| 7. |
The
Construction will be carried out according to the “scheme” and
shell specification that were supplied to us and which will
constitute an integral part of the agreement. Our responsibility will
be full and include everything involved in the Construction, without
any exception, and without derogating from that stated also include
planning and supervision and implementation and management, and fees,
all with the exception of the remuneration of an inspector that
Lumenis may provide on its own behalf and who, if it does so provide,
will be entitled to be party to all the planning and implementation
processes, without his appointment derogating from any obligation on
our part in connection with the Construction. |
| 8. |
The
responsibility for obtaining any lawful licence is imposed upon us. |
| 9. |
The
scheme sets out the volume of the building that we will be required to carry
out according to the agreement in any event, and for which Lumenis
will be committed in the agreement. As this Construction will not
exhaust the building rights in the Site, it is agreed by us that
Lumenis will have the option of instructing us to carry out
additional construction (hereinafter: “the Additional
Building Option”) that will exploit additionally, fully or
partially, the additional building rights on the Site, whether
Construction is in accordance with existing rights or under
additional rights in the future (if any) this being at Lumenis’ sole
and absolute discretion. |
| 10. |
If
Lumenis exercises its right in regard to such additional building, then the
first term of the lease and the option for extending it, as well as
the consideration and the degree of collateral as well as all the
remaining conditions that will be fixed in the detailed and binding
agreement with respect to the volume of the building of the present
scheme, will similarly apply to the agreement relating to the
additional construction and leasing thereof to Lumenis, subject to
the following changes: |
| 11. |
The
rental components for the Construction according to the existing scheme,
that relate to the cost of the land as well as the investment in the
finishing works, as appearing in our proposal, are those that will be
paid also for leasing the additional construction, and will be the
same in their amount to those that will be set out in the lease
agreement for the Construction according to the existing scheme,
including the mechanism fixed in paragraph 29 below, with respect to
determining the cost of the land, including the linkage mechanism
therein, which is also set out in this Document. |
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Notwithstanding
the foregoing, with respect to the rental component that relates to the finishing works
that will be carried out in the additional construction, it is clear that the amount will
be fixed according to the volume of the actual investment in those works in the
additional construction, according to that formula which is fixed in our proposal which
relates to construction according to the present scheme. |
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As
to the rental component that relates to the shell, as appearing in our proposal, this
component will be linked to the building inputs index, the base index presently known of
September 2007, and such component will be increased according to rises in the building
inputs index, between the base index and the building inputs index that will be known on
the date of commencement of the lease of the additional construction and from such date
onwards this component also will be linked to the CPI as will the remaining components of
the rent. In addition, if changes occur with respect to the building requirements of the
shell of the additional construction compared with the requirements of the present scheme
with respect to the principal Construction then these will similarly attract a change of
the consideration corresponding to the price rise or cheapening of the shell as a result
of the change in the requirements. |
| 12. |
Lumenis
reserves the right not to instruct us to exploit the possible building
rights at all, and as long as this is not done, it will be committed
to pay the full amount of the annual cost for maintaining the
Additional Building Option and it similarly may notify us that it is
waiving such option, and that we are entitled to exploit these
surplus rights ourselves, and in such case, the payments mentioned
will cease upon notice being given as detailed in paragraph 15 below. |
| 13. |
Exercise
of the option or the giving of such notice of the non-exercise thereof
may be given by Lumenis with respect to all the additional rights
mentioned, or part thereof, that is to say, the Option will be
exercised or preserved only with respect to part of these future
rights, and in such a case, the payment specified in our proposal for
preserving the Option will be reduced pursuant to the proportion that
the building rights for which notice has been given or the Option has
been exercised bears to the building rights for whose exploitation it
is requested that Lumenis continue to retain the Option to carry out. |
| 14. |
Lumenis’ Additional
Building Option is limited to the first rental period (10 years) and
for a further two years, if the Option is exercised during those two
years, and in any event after the period of 12 years, such right of Option
will not be conferred upon Lumenis. |
| 15. |
Lumenis
will be committed to giving six months’ prior notice if it wishes
to exercise the Additional Building Option mentioned above or part
thereof, or give notice of the waiver of the Additional Building
Option or part thereof. |
| 16. |
Lumenis’ decision
regarding Additional Building /exercise of such rights, will obligate
us to act pursuant thereto. |
Consideration –
rent
| 17. |
The
aggregate consideration that the developer will receive will only be by
receiving rent from Lumenis as set out in our proposal. |
| 18. |
Without
derogating from the generality of the foregoing, it is clarified that
the consideration includes all and any expense and cost, whether
expected or unexpected, and includes planning and building and
licensing costs and fees of consultants and fees and management and
overheads and any other expense that we will be obliged to bear for
the purpose of this agreement, whether of such kinds or of any other
category. |
| 19. |
Without
derogating from that stated and for the sake of caution and clarity it
is stated that the performance of the construction works up to and
including the shell, but excluding the internal finish, is on a
global-payment basis and is in the developer’s full and overall
responsibility, at a fixed price and includes consideration for fully
and completely carrying out all the works, without any additional
payment, the only consideration that we will receive being the rent
mentioned above and as proposed in the Table of Prices that is
attached to our proposal. |
| 20. |
Without
derogating from the generality of the foregoing, it is clarified that
even if performance of the works will require the use of materials,
items or quantities that will exceed the estimates of the offeror
and/or Lumenis, the consideration will remain unchanged, and we will
bear overall, full and exclusive responsibility for completing the
works and deliver them to the company in a complete manner on a
turnkey basis, both with respect to the works that will be carried
out by it and also with respect to works that will be carried out by
others. It is further agreed that if the parties agree to modify the
scheme in connection with the shell, then the parties will agree also to
modify the consideration in the rental component that relates to the
shell. |
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| 21. |
Notwithstanding
the foregoing, and in accordance therewith, it is clarified that the
interior works will be carried out by developer pursuant to the planning and
specification that will be fixed by Lumenis, and the developer will
be committed to carry out the same with the minimum possible
investment, by carrying out the same by means of consultants and
sub-contractors that will be jointly selected with Lumenis. The
selection will be made by way of tender/s or such other method if and
to the extent it will be agreed on by the parties jointly. In any event,
the method of receiving proposals and of determining the prices and
the contracts with the sub-contractors will be completely transparent
to Lumenis. |
| 22. |
The
investment in the interior/finishing works will not exceed $400 per sq.m.,
on average. Notwithstanding the foregoing, a deviation of up to 10%
(that is up to $440) will not be deemed to be a breach on the part of
Lumenis nor will it create any additional right to us, beyond raising
the rent that results from the increased volume of the investment,
pursuant to our proposal. In the event of Lumenis wishing to invest
more than the sum of $440 per sq.m., on average, Lumenis will bear
the necessary financial difference. |
| 23. |
Lumenis
will exercise the full area of the shell, some 16,000sq.m., (gross),
although it is possible that the interior adaptation works will only
be made in parts of the area. |
| 24. |
The
rent will not include management and maintenance, and these will be carried
out by Lumenis or persons on its behalf and at its own expense,
without derogating from the developer’s responsibility for the
quality of the Construction, faults, defects and the like. |
| 25. |
For
the removal of any doubt, Lumenis will bear the city tax payments and any
new current tax or levy that will be imposed on occupiers of
properties as distinct from on those who hold the ownership and/or
long-term lease of properties for the buildings that will be leased
to it. For the removal of any doubt, it is emphasized that Lumenis
will bear no fees or levies pertaining to the development of
drainage, paving, sewage and the like. |
| 26. |
The
payment date of the monthly rent will be monthly on the 10th of
the month. |
| 27. |
In
addition, on the rent will be paid a payment for non-exercising building
rights pursuant to our proposal, with respect to the period during
which Lumenis decides not to exploit additional building rights, or
part thereof, that is to say for maintaining the option to build and
lease additional areas in another future building, and in the
warehouse building. |
| 28. |
The
prices will be linked as from the Consumer Price Index of September 2007
until the Index known on the date of making each and every
payment, without any additional linkage or interest and
without any cap or floor. |
| 29. |
Our
proposal in all aspects relating to the rental component for the land is
based on the assumption that the cost of the purchase will be in an
amount of $50 per sq.m., of constructed area, as set out in the Table
in the proposal. After the purchase, the cost of the actual purchase
from the ▇▇▇ will be presented and pursuant thereto, the amount of
the final rent updated in the appropriate component in the Table. |
| 30. |
For
the purpose of that stated in the above paragraph “purchase cost” means
the aggregate of all the payments that will be paid to the ▇▇▇ for
purchasing the rights in the land (ground rent/capitalization/permit
fees) for the full building capacity according to the Town Building
Plan and also the amounts that will be paid to the ▇▇▇ and/or any
person on its behalf for development, including development fees of
the local authority, all exclusive of VAT, it being clarified that
the VAT amounts will not include in any event the “purchase cost” or
“land cost” for the purpose of calculating the rent for
this component according to our proposal. |
| 31. |
For
the purpose of that stated, “constructed area” means the
constructed area of a special zone as appearing in the Town Building
Plan, at the time of submitting the application for the building
permit. |
| 32. |
The
monthly rent detailed in our proposal for the finishing/interior works
relates only to the finishing/interior works and does not include any
overheads and/or overheads of a main contractor, either for guarding
or for electricity, water, cleaning, insurance, co-ordination between
the sub-contractors and assistance in transporting, and these will
not be charged to the parties who carry out those works but be borne
by the developer and/or the main contractor on its behalf, and it is
only this price, without the overheads mentioned, that which will be
equated to the baseline price mentioned for the purpose of
determining the proposed rent pursuant to the proposed baseline
price. For the removal of any doubt, the contents of this paragraph
with respect to the sub-contractors will be made clear to them by us
in good time, before their bids are accepted, all in order to cheapen
so far as possible, the costs of the finishing/interior works. |
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| 33. |
Our
proposal as set out in the Table relates to expected changes in the period
of the option in the rental for the shell and parking places and the
rent for the internal finishing work, all expressed by way of a
percentage. |
| 34. |
The
agreement that will be signed will also include an agreed, reasonable and
fair mechanism for increases/prices that will be paid by Lumenis in
respect of modifications or improvements, after completion of the
construction, if and to the extent these will be required by Lumenis
during the lease. |
The lease
| 35. |
The
right is reserved to Lumenis to make any use that is permitted by law of the
buildings and also to sub-lease them, including leasing parts of the
building. The developer will be required to ensure that it will be
entitled and able by law, according to the ▇▇▇ procedures and
decisions, to grant a lease of the building to Lumenis for the full
periods specified in these principles of agreement, and in the
procedure documents for obtaining bids, so that Lumenis will also be
entitled to grant subleases thereof as stated. |
| 36. |
Lumenis
may obligate the developer to register its rights under the agreement in
any register that is maintained by law, including the Land Registry
and/or the offices of the Israel Lands Administration, at its
expense. |
Time Schedule:
| 37. |
In
the contract that will be signed we will undertake that the Construction will
be completed and the building ready for habitation and possession
delivered to you, all within 25 months at the most of 1 December,
2007. The undertaking to the time schedule mentioned is on the
assumption that Lumenis will supply functional design, including
supplies not later than 75 working days of the day on which it
receives the final shell plans, and also on the assumption that
Lumenis will approve the plans or submit remarks within a response
time that will not exceed a week. |
| 38. |
It
is clear to us and agreed that compliance with the time schedule set out
above will constitute a fundamental and material condition of the
agreement, and any deviation from the time schedule will allow
Lumenis to ▇▇▇ us, without reference to the continued performance of
the agreement, for the agreed damages detailed below, and that any
delay in the time schedule that exceeds 10 months, will constitute a
fundamental breach. |
| 39. |
Any
delay in the time schedule that is not the fault of Lumenis and/or which
does not arise from force majeure within the meaning of the law, will
require us to pay agreed and pre-determined compensation of the full
lease costs that will be paid by Lumenis during such period for the
properties which it is occupying in that period, and Lumenis will not
be entitled to any additional compensation for delay beyond such
agreed compensation. |
Collateral and
insurances:
| 40. |
Lumenis
will provide good collateral of a bank or insurance company (not
autonomous) to the extent of 45% of the interior works but not more
than the amount of the annual rent, including for the first year, a
progressive reduction being made over the ensuing nine years. During
the entire periods of the option to extend the lease, the guarantee
will be for an amount of three months’ rent for the shell
component. |
| 41. |
Immediately
after the signature of the contract, Lumenis will provide to us 25%
of the collateral, and subject to the building contract pursuant to
the time schedule that will be set in the agreement, Lumenis will
provide after 13 months of signing the agreement, a further 25%, and
on delivery of the key, will complete the full guarantee (as defined
above). In the period culminating with the delivery of the key, the
percentages will derive from the collateral according to the amount
of one year of lease. Concurrently we will provide Lumenis with a
non-autonomous performance bond of a bank or insurance company for
those amounts of the guarantee that Lumenis will provide as stated above,
for the first two stages only, that is, the first 50%. |
42
| 42. |
Lumenis
will bear no insurance costs in respect of damages to the structure,
including following earthquake, fire, natural catastrophe and the
like as distinct from content insurances and/or insurance for
liability imposed upon it by law, if it elects to effect such
insurances. |
| |
By
way of confirmation we have set our hands this the ____ day of November 07/11/2007 |
/s/Dalit Bar-On /s/Oran Halutzi
Industrial Building
Corporation
Names of signatories and stamp of the
Company
Certificate of an
accountant/lawyer
I, the undersigned _________________
Advocate/CPA whose address is ______________________ and licence no. is ________ hereby
certify that this document was signed by the authorized signatories of the Company
empowered to bind it by the undertakings set out in this document.
In witness whereof we have set our
hands this day ______________________________________
43
Price table
Paragraph
|
Sq.m.
|
Price in NIS / sq.m.
|
Total/monthly
|
| |
|
|
|
| Land cost |
|
|
| 16,000 |
|
| 2.05 |
|
| 32,800 |
|
| Central building | | |
| 12,000 |
|
| 28.7 |
|
| 344,400 |
|
| Warehouse building | | |
| 4,000 |
|
| 18.45 |
|
| 73,800 |
|
| Finishing adaptations ($350/sq.m.) | | |
| 16,000 |
|
| 16.48 |
|
| 263,680 |
|
| Covered parking | | |
| 200 parking pla |
ces |
| 129.5 |
|
| 25,900 |
|
| Outside parking | | |
| 50 parking plac |
es |
| 61.5 |
|
| 3,075 |
|
| Total | | |
| |
|
| |
|
| 743,655 |
|
The rent will be linked to the
Consumer Price Index for September 2007
44
Appendix “I-1": Form of
the Lessee’s Guarantee
Date: __________________
Industrial Buildings
Corporation Ltd.
▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇.,
Herzliya Pituach 46120
Dear Sir or Madam,
| RE: |
Guarantee
no. ______________________ |
At the request of Lumenis Ltd.,
public corporation no. 520042557 (hereinafter: “the Debtor”) we hereby guarantee
you the discharge of any amount that you will demand from us up to the aggregate sum of
NIS._________ (in words __________________________ new shekels) (hereinafter: “the
Principal of the Guarantee”), in order to secure the performance of the Debtor’s
undertakings pursuant to the Agreement that was signed between you and the Debtor in
connection with the construction of Lumenis House dated _______________________
(hereinafter: “the Agreement”).
The Principal of the Guarantee will
be linked to the exchange rate of the U.S. dollar (hereinafter: "the Foreign Currency")
on the following linkage conditions:
The exchange rate of the Foreign
Currency means the representative rate of exchange thereof published by the Bank of
Israel.
If it transpires at the time of
payment of the Principal of the Guarantee that the exchange rate of the Foreign Currency
last published by the Bank of Israel (hereinafter: “the New Exchange Rate”)
exceeds the exchange rate of NIS 4.05 for each US$ (hereinafter: “the Base Exchange
Rate”) then the amount of the Guarantee will be deemed to have been increased in an
amount equal to the increase rate of the New Exchange Rate compared with the Base Exchange
Rate (hereinafter: “the Increased Guarantee Amount”).
If it transpires that the New
Exchange Rate has dropped compared with the Base Exchange Rate, the amount of the
Principal of the Guarantee will remain unchanged.
We will pay you, on your written
demand and not later than 10 days after the date of receipt by us of your demand at the
address noted above, any amount of the Principal of the Guarantee that will be stated in
your above demand, provided it does not exceed the Increased Guarantee Amount and provided
that there will be attached to your above demand a certified copy of a judgment ruling
that the Debtor is required to pay you the amount specified in the demand.
The term “certified copy of a
judgment” means a copy of the judgment/decision/order of the Court, certified to
be a true copy by the Court Secretariat.
This Guarantee will remain in force
until the ____ day of _________________ (inclusive) and will be automatically extended
from time to time for a further period of 12 months unless you notify us in writing that
this Guarantee is void or if we pay you the amount of the Guarantee hereunder, or if we
notify you by prior notice that will be given to you one year in advance that we will not
further extend the Guarantee. Every demand under this Guarantee must reach the
undermentioned branch in writing whose address is: __________________________.
Any demand reaching us after that
date will not be entertained.
A written demand according to this
Guarantee does not mean a demand that will reach the Bank by fax, telex or cable, and such
a demand will not be deemed to constitute a demand pursuant to this Guarantee.
This Guarantee is not assignable or
transferable.
Yours faithfully,
45
Appendix
“I-2": Form of the Company’s Guarantee
Date: __________________
Lumenis Ltd.
Upper Yokneam
Industrial Zone
Zip code 202069
Dear Sir or Madam,
| RE: |
Guarantee
no. ______________________ |
At the request of Industrial
Buildings Corporation Ltd., public corporation no. 520024126 (hereinafter: “the
Debtor”) we hereby guarantee you the discharge of any amount up to the aggregate sum
of NIS._________ (in words __________________________ new shekels) (hereinafter: “the
Principal of the Guarantee”), in order to secure the performance of the Debtor’s
undertakings pursuant to the Agreement that was signed between you and the Debtor in
connection with the construction of Lumenis House dated _______________________
(hereinafter: “the Agreement”).
The Principal of the Guarantee will
be linked to the exchange rate of the U.S. dollar (hereinafter: "the Foreign Currency")
on the following linkage conditions:
The exchange rate of the Foreign
Currency means the representative rate of exchange thereof published by the Bank of
Israel.
If it transpires at the time of
payment of the Principal of the Guarantee that the exchange rate of the Foreign Currency
last published by the Bank of Israel (hereinafter: “the New Exchange Rate”)
exceeds the exchange rate of NIS 4.05 for each US$ (hereinafter: “the Base Exchange
Rate”) then the amount of the Guarantee will be deemed to have been increased in an
amount equal to the increase rate of the New Exchange Rate compared with the Base Exchange
Rate (hereinafter: “the Increased Guarantee Amount”).
If it transpires that the New
Exchange Rate has dropped compared with the Base Exchange Rate, the amount of the
Principal of the Guarantee will remain unchanged.
We will pay you, on your written
demand and not later than 10 days after the date of receipt by us of your demand at the
address noted above, any amount of the Principal of the Guarantee that will be stated in
your above demand, provided it does not exceed the Increased Guarantee Amount and provided
that there will be attached to your above demand a certified copy of a judgment ruling
that the Debtor is required to pay you the amount specified in the demand.
The term “certified copy of a
judgment” means a copy of the judgment/decision/order of the Court, certified to
be a true copy by the Court Secretariat.
This Guarantee will remain in force
until the ____ day of _________________ (inclusive) and will be automatically extended
from time to time for a further period of 12 months unless you notify us in writing that
this Guarantee is void or if we pay you the amount of the Guarantee hereunder, or if we
notify you by prior notice that will be given to you one year in advance that we will not
further extend the Guarantee. Every demand under this Guarantee must reach the
undermentioned branch in writing whose address is: __________________________.
Any demand reaching us after that
date will not be entertained.
A written demand according to this
Guarantee does not mean a demand that will reach the Bank by fax, telex or cable, and such
a demand will not be deemed to constitute a demand pursuant to this Guarantee.
This Guarantee is not assignable or
transferable.
Yours faithfully,
46
Appendix
“J”: Irrevocable Power of Attorney
I/we, the undersigned
______________________ company, no. _______________ empower Advocates ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
and/or Rennana ▇▇▇▇-▇▇▇▇ and/or ▇▇▇▇▇ ▇▇▇▇ and/or ▇▇▇ ▇▇▇▇▇▇ and/or ▇▇▇ ▇▇▇▇ and/or ▇▇▇▇
▇▇▇▇ and/or ▇▇▇▇ ▇▇▇▇▇, all of them jointly and/or each of them severally (hereinafter:
“the Attornies”) to be my/our lawful attornies and to do in my/our name and on
my/our behalf all or any of the following acts and deeds:
| 1. |
To
strike out and/or remove any right and/or registration and/or caution that has
been or will be registered in our favour at the Land Registry or with the
Israel Lands Administration and/or in any register that is maintained by law,
if and to the extent they have been registered in our favour pertaining to the
land known as Block 11492, Parcel 83, (sites 11, 12, 18, 19) in the Yokneam
Industrial Zone (hereinafter: “the Land”) and/or any block and/or
parcel that will be created out of the Land. |
| 2. |
To
appear in the Land Registry and/or at the Israel Lands Administration and/or in
any other registry maintained by law, and sign any document and/or any
application that is required in order to effectuate the above acts. |
| 3. |
To
transfer all or any part of this power of attorney to any person whom my
Attornies deem fit. |
| 4. |
This
power of attorney is irrevocable and may not be revoked or limited by me/us,
since the rights of a third party are dependent thereon. |
In witness whereof we
have set our hands:
| /s/▇▇▇ ▇▇▇▇ /s/▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
|
I certify the signature of my above
client:
47
Addendum
no. 1 – Air-conditioning Installations
to the Lease Agreement
dated __________________
Executed on the ____ day of
_________________ 2007
| 1. |
This
Addendum will apply to the air-conditioning system that will be installed in
the Building according to the terms of this Agreement (to the extent it will be
installed) and will constitute an integral part of the Agreement captioned
above (hereinafter: “the Lease Agreement”) and in the absence of any
intention to the contrary, all the terms thereof will be construed according to
the meanings assigned thereto in the Lease Agreement. It is further agreed that
wherever the term “the Company” appears, the Company may effect the
foregoing by means of any person and/or management company on its behalf. |
| 2. |
In
addition to all of its undertakings under the Lease Agreement, the Lessee
undertakes to effect regular maintenance of the air-conditioning system
including, inter alia, the carrying out of preventive and regular
maintenance works, according to the manufacturer’s instructions of the
air-conditioning system, recondition the system or any part thereof, replace
materials, replace parts of the air-conditioning system that have been damaged
or have broken down or become worn out (including reasonable wear) and which
require replacement for continuing the proper operation of the air-conditioning
system. |
| |
The
Company may, but will be under no duty, to appoint a professional inspector in order to
check the extent to which the maintenance works are being carried out by the Lessee. The
Lessee will co-operate with the Company and assist the professional inspector. The
professional inspector’s instructions will obligate the Lessee to act in accordance
therewith in all matters relating to and/or pertaining to the regular maintenance. |
| |
On
the expiration of the Lease Term, the air-conditioning system will be checked by the
parties. If defects are discovered by it that result from regular preventive maintenance
not having been carried out and/or regular preventive maintenance having been carried out
negligently and/or with lack of skill, the Lessee will be bound to complete the treatment
and/or alternatively bear the cost of repairs that will be proposed by the Company. |
| 3. |
The
Lessee undertakes to bear all the costs involved in performing its undertakings
described in paragraph 3 above. |
| 4. |
In
the event of the Lessee making internal alterations in the Premises by moving
internal partitions and/or modifications in the use of the Premises or any part
thereof and/or in the event of there being additional employees or
installations at the Premises, then, if the Lessee requests to increase the
output of the air-conditioner and/or make changes in the existing system, the
Lessee will be bound to obtain the prior written consent of the Company
thereto. The Company will not refuse to grant such approval unless and to the
extent the change may damage the system. |
| |
All
the costs arising from increasing the output of the air-conditioning system and/or
changing the existing system and/or changing the airsupply ducts, changing the
distributors, changing the units, will be borne and paid by the Lessee. |
| |
The
Lessee will be entitled to request the making of changes or improvements by the Company
and the provisions of the Agreement will apply in this connection. |
| 5. |
In
the event of cooled air being supplied to the Premises by means of a central
air-conditioning system, the Company will take measures to regularly supply
airconditioned air. In the event of the supply of condensed cooling water from
a cooling tower to the Building in which the Premises are situated – the
Company will take measures to regularly supply condensed water. |
In witness whereof the
parties have set their hands:
| /s/▇▇▇ ▇▇▇▇ /s/▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
/s/Dalit Bar-On /s/Oran Halutzi |
| The Lessee. |
Industrial Buildings Corporation Ltd. |
48
Addendum no. 2 –
Parking places
| 1. |
This
Addendum constitutes an integral part of the above captioned agreement
(hereinafter: “the Lease Agreement”) and in the absence of any
intention to the contrary, all the terms thereof will be construed according to
the meanings ascribed thereto in the Lease Agreement. |
| 2. |
It
is agreed between the parties that the Company will lease parking places to the
Lessee as set out in the Program – Appendix B1 to the Agreement
(hereinafter: “the Parking Places”). |
| 3. |
The
parking places will, for all intents and purposes under the Lease Agreement, as
part of the Premises (as defined in the Lease Agreement). Notwithstanding the
foregoing it is clarified and agreed between the parties that the consideration
in respect of the parking places will be pursuant to that stated in Appendix E. |
| 4. |
The
Lessee agrees that the parking rent (fees) will be treated for all purposes as
the Rent. |
| 5. |
The
Lessee declares that it is aware that payment is for the right to park in the
Parking Places and does not extend to any guarding services whatsoever. |
In witness whereof the
parties have set their hands:
| /s/▇▇▇ ▇▇▇▇ /s/▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ |
/s/Dalit Bar-On /s/Oran Halutzi |
| The Lessee. |
Industrial Buildings Corporation Ltd. |
49