EXHIBIT 10.01
SUBLEASE AGREEMENT
This AGREEMENT is made as of this 9th day of May, 2006, between LecTec
Corporation (a Minnesota Corporation), hereinafter referred to as "Sublessor",
and The Furniture Source "THE FSI", hereinafter referred to as "Sublessee".
The parties hereto have agreed that the Sublessor shall sublet approximately
7,000 square feet of such space to the Sublessee; at ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇,
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NOW THEREFORE, the parties hereto hereby covenant and agree as follows:
1. Sublessor hereby subleases to Sublessee said 7,000 square feet, more
or less, of the space in said Premises, as depicted on Exhibit "A"
attached hereto and made a part hereof, (the "Subleased Premises"),
for a term beginning May 15th, 2006 through and including April 30,
2008. Lessee shall pay to Lessor a gross monthly rent in the amount
of Three Thousand and 00/100 Dollars ($3,000.00), in advance, on the
first day of each and every month during the term hereof and shall
be an all inclusive rent covering base rent, operating expenses,
real estate taxes and gas and electrical usage ("Gross Rent"). The
Lessee shall also pay a refundable security deposit of $4,500.00.
Rent paid for any partial month will be prorated. If Sublessee stays
in said space beyond April 30, 2008, gross monthly rent will
increase to $4,500 per month and the terms of the sublease will
remain the same as set forth above.
2. The Subleased Premises shall be used for the purpose of Storage.
3. Sublessee shall not assign its interest in this Sublease nor further
sublet the Subleased Premises in whole or in part; and shall not
permit its interest on this Sublease to be vested in any third party
by operation of law or otherwise.
4. Sublessee shall supply to Sublessor and to Landlord, prior to the
occupancy of the Premises, a copy of a Certificate of Insurance by
an acceptable insurance company, and on an annual basis, with the
coverage amounts defined in the Prime Lease, listing the following
as additional insured's:
Welsh Companies, LLC
and SMD Lincoln Investments, LLC
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LecTec Corporation
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5. Notwithstanding anything to the contrary herein set forth, the only
services or rights to which Sublessee may be entitled hereunder are
those to which Sublessor may be entitled under the Prime Lease in
its capacity as Lessee.
6. Sublessee shall neither do nor permit anything to be done which
would cause the Prime Lease to be terminated or forfeited by reason
of any right of termination or forfeiture reserved or vested in the
Lessor under the Prime Lease, and Sublessee shall indemnify and
hold Sublessor harmless from and against all claims of any kind
whatsoever by reason of Sublessee failing to comply with the
provisions of section 6.
7. Sublessee agrees to accept the Subleased Premises in its "as is"
condition. Sublessor agrees to have premises free of debris and in
broom-clean condition. No other changes or improvements will be made
to the Subleased Premises without the approval of Sublessor and
Lessor.
8. The covenants and agreements herein contained shall bind and inure
to the benefit of the Sublessor, Sublessee, and their respective
heirs, executors, administrators, successors and assigns.
9. Sublessor shall indemnify, defend and hold Sublessee and its
affiliates, agents, employees and contractors, harmless from and
against, and shall reimburse Sublessee for, all losses, damages,
claims, liability and expense or costs (including, without
limitation, reasonable attorney's fees) arising out of, from or in
connection with (i) Sublessor's use or occupancy of the Sublease
Premises prior to the date hereof or (ii) any breach or default by
Sublessor under this Sublease, including the failure of Sublessor to
pay, perform, observe or comply with any obligation, covenant
condition or restriction imposed on Sublessor as Tenant under the
Prime Lease which, in accordance with the terms of this Sublease,
shall be the continuing obligation of the Sublessor under the Prime
Lease (including the obligation to pay base rent, additional rent or
operating expenses to the Landlord.
10. Sublessee agrees to allow Welsh company meter reader to enter said
space for the sole purpose of reading meters for monthly electrical
charges for Lessor.
11. Lessor will notify landlord of any changes to this agreement, if
any, after April 30, 2008.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed
the date and year first above written.
SUBLESSEE: SUBLESSOR:
The Furniture Source LecTec Corporation
(A Minnesota Company) (A Minnesota Company)
By: _/s/ ▇▇▇ Sheehan________ By:_/s/_Bill Johnson______
Its: _President_____________ Its: __Controller________
Date: 5/10/06_______________ Date: _5/10/06___________