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EXHIBIT 10(a)
THE RANDERS GROUP INCORPORATED
EXHIBIT 6(a)-10
LEASE
This Lease is entered into August 12, 1996, between ▇. ▇. ▇▇▇▇,
Trustee under Agreement dated April 1, 1965 ("Landlord"), and Randers
Engineering, Inc., a Michigan corporation ("Tenant").
ARTICLE ONE
DEFINITIONS, SCHEDULES AND ADDENDA
1.1 DEFINITIONS:
a. LEASED PREMISES shall mean the usable area occupied by the Tenant
in the Building, as described in Schedule 1 and shall be known as Suite 150.
b. BUILDING shall mean the office building located at ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇, ▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
c. TENANT'S SQUARE FOOTAGE shall mean 5,000 usable square feet
subject to final measurement. The term "usable" shall be synonymous with
"rentable" in this document.
d. LEASE COMMENCEMENT DATE shall mean November 1, 1996; LEASE
EXPIRATION DATE shall mean October 31, 2001; LEASE TERM shall mean the period
between Lease Commencement Date and Lease Expiration Date.
e. BASE RENT shall mean the agreed upon rent per square foot per
year, in accordance with Schedule 8 to this Lease, applied against the Tenant's
square footage (Leased Premises) and payable in twelve (12) equal monthly
payments.
f. DEPOSIT shall mean $0.00; PREPAID RENT shall mean $0.00, of which
$0.00 represents the first monthly installment of Base Rent due November 1,
1996.
g. PERMITTED PURPOSE shall mean use of the Leased Premises for
clerical and administrative purposes, and all other purposes permitted under
the Rules and Regulations attached hereto as Schedule 2.
h. AUTHORIZED NUMBER OF PARKING SPACES shall mean 33 employee
parking spaces. Additional parking spaces may, at the sole discretion of the
Lessor, be provided if available and if required by Tenant.
i. MANAGING AGENT shall mean ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, c/o Midland
Properties, Inc., whose address is ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇.
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j. LANDLORD'S MAILING ADDRESS: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Trustee U/A dated
April 1, 1965, c/o ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, c/o Midland Properties, Inc., ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇.
k. TENANT'S MAILING ADDRESS: Randers Engineering, Inc., ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇, with a copy
to Randers Engineering, Inc., ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ _____, ▇▇▇▇, ▇▇▇▇▇▇▇▇
▇▇▇▇▇.
1.2 SCHEDULES AND ADDENDA: The schedules and addenda listed below are
incorporated into this Lease by reference unless lined out. The terms of
schedules, exhibits and typewritten addenda, if any, attached or added hereto
shall control over any inconsistent provisions in the paragraphs of this Lease.
a. SCHEDULE 1: Description of Premises and Floor Plan
b. SCHEDULE 2: Rules and Regulations
c. SCHEDULE 3: Utility Services
d. SCHEDULE 4: Maintenance Services
e. SCHEDULE 5: Parking
f. SCHEDULE 6: Work Letter Agreement
g. SCHEDULE 7: Certificate of Acceptance
h. SCHEDULE 8: Schedule of Rental Payments - Base
Rent/Tenant Utilities/Operating Expenses
ARTICLE TWO
PREMISES
2.1 LEASE OF PREMISES: In consideration of the Rent and the provisions of
this Lease, Landlord leases to Tenant and Tenant accepts from Landlord the
Leased Premises.
2.2 PRIOR OCCUPANCY: Tenant shall not occupy the Leased Premises prior to
Lease Commencement Date except with the express prior written consent of
Landlord. The Lease Commencement Date is November 1, 1996, and the first
installment of Base Rent is due November 1, 1996. If Tenant shall occupy the
Leased Premises prior to Lease Commencement Date, all covenants and conditions
of this Lease shall be binding on the parties commencing at such prior
occupancy.
2.3 RIGHT OF FIRST REFUSAL: During the term of this Lease, Tenant shall be
granted the right of first refusal on floor space contiguous to the Leased
Premises at the then prevailing market rate for similar office space in the
Farmington Hills/Livonia/Novi, Michigan area, and under the same terms and
conditions as otherwise specified in this Lease.
In order to exercise its right of first refusal, Tenant agrees to exercise
its right within seven (7) days following receipt of written notice from
Landlord of its intention to lease said contiguous floor space.
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2.4 RENEWAL OPTION: Tenant shall have the right to extend the term of this
Lease for one (1) additional five (5) year term. Tenant shall exercise its
option by giving to Landlord written notice of said exercise not later than
eight (8) months prior to the last day of the initial lease term.
All provisions of this Lease shall continue to apply during the Renewal
Term except that the rental rate shall be as follows:
The rental rate, during said renewal option period, shall be based on the
then prevailing market rate for similar office space in the Farmington
Hills/Livonia/Novi, Michigan area.
2.5 EARLY TERMINATION OPTION: Tenant shall have the right to terminate this
Lease after the end of the third (3rd) year of the lease term by giving to
Landlord its written notice of intention to terminate, accompanied by a payment
to Landlord for all unamortized Tenant improvements, and for all unamortized
real estate commissions paid, under the initial lease term (amortization based
on a five (5) year term). Tenant's notice to terminate must be given to
Landlord at least eight (8) months prior to the effective date of termination.
ARTICLE THREE
PAYMENT OF RENT AND TAXES
3.1 RENT: Tenant shall pay each monthly installment of Base Rent in advance
on the first calendar day of each month. Monthly installments for any
fractional calendar month, at the beginning or end of the Lease Term, shall be
prorated based on the number of days in such month. Base Rent, together with
all other amounts payable by Tenant to Landlord under this Lease, including,
without limitation, any late charges and interest due Landlord for Rent not
paid when due, shall be sometimes referred to collectively as "Rent." Tenant
shall pay all Rent, without deduction or set-off, to Landlord or Managing Agent
at a place specified by Landlord. Rent not paid within ten (10) days of its
due date and within five (5) days of Tenant's receipt of written notice from
Landlord of the failure to pay rent, shall bear interest until paid, at the
annualized rate of three percent (3%) in excess of the prime rate of interest
published in the Money Rates table of The Wall Street Journal, as the same may
be adjusted from time to time. Tenant shall also pay a late charge of $50.00
with each late payment of rent not received within five (5) business days of
its due date.
3.2 TAXES: Landlord shall pay all general real estate taxes and any special
assessments levied against the Building.
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ARTICLE FOUR
IMPROVEMENTS BY LANDLORD
4.1 CONSTRUCTION CONDITIONS: Landlord shall construct the improvements
described in the Construction Documents approved and signed by Landlord and
Tenant and made a part of the work letter attached hereto as SCHEDULE 6 (the
"Improvements"). The expenses to be incurred as between Landlord and Tenant
for construction of the Improvements are specified in SCHEDULE 6. If any act,
omission or change requested or caused by Tenant increases the cost of work or
materials or the time required for completion of construction, Tenant shall
reimburse Landlord for such increase in cost at the time the increased cost is
incurred and shall reimburse Landlord for any loss in Rent at the time the Rent
would have become due.
4.2 COMMENCEMENT OF POSSESSION: The Lease Commencement Date shall be
November 1, 1996, pursuant to Article One Section 1.1d. The parties
acknowledge and agree that Landlord shall be responsible for completing
Tenant's work.
ARTICLE FIVE
BUILDING SERVICES
5.1 BUILDING SERVICES: Landlord shall furnish:
a. Utility Services: The utility services listed on SCHEDULE 3
("Utility Services").
b. Maintenance Services: Maintenance of all common and exterior areas
including lighting, landscaping, cleaning, painting, maintenance and repair of
the exterior of the Building and its structural portions and roof and exterior
windows, including all of the services listed on SCHEDULE 4 ("Maintenance
Services").
c. Parking: Parking under the terms and conditions described in
SCHEDULE 5 ("Parking") and paragraph 1.1(h) of this Lease.
Utility Services, Maintenance Services and Parking described above shall
be collectively referred to as "Project Services."
5.2 INTERRUPTION OF SERVICES: Landlord does not warrant that any of the
Building Services will be free from interruption. Any Building Service may be
suspended by reason of accident or of necessary repairs, alterations or
improvements, or by strikes or lockouts, or by reason of operation of law, or
causes beyond the reasonable control of Landlord. Subject to possible rent
abatement as may be provided pursuant to the conditions described in ARTICLE
EIGHT, any such interruption or discontinuance of such Building Services shall
never be deemed a disturbance of Tenant's use and possession of the Leased
Premises, or render Landlord liable to Tenant for damages by abatement of rent
or otherwise, or relieve Tenant from performance of Tenant's obligations under
this Lease. However, Landlord shall use its best efforts to cause the Building
Services to be restored promptly.
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ARTICLE SIX
TENANT'S COVENANTS
6.1 USE OF LEASED PREMISES: Tenant agrees to:
a. Permitted Usage: Continuously use the Leased Premises for the
Permitted Purpose only and for no other purpose.
b. Compliance with Laws: Only as it relates to Tenant's use and
future alterations of the Leased Premises by Tenant, comply with the provisions
of all applicable recorded covenants, conditions and restrictions and all
applicable building, zoning, fire and other governmental laws, ordinances,
regulations or rules as the same are applicable to the Leased Premises.
Landlord will, if requested to do so, provide to Tenant a copy of all recorded
covenants, conditions and restrictions affecting the Leased Premises.
c. Nuisances or Waste: Not do or permit anything to be done in or
about the Leased Premises, or bring or keep anything in the Leased Premises
that may increase Landlord's fire and extended coverage insurance premium,
damage the Building, constitute waste, or be a nuisance, public or private, or
menace or other disturbance to tenants of adjoining premises or anyone else, or
use or store any toxic chemicals, wastes, elements or substances in the Leased
Premises.
d. Alterations and Improvements: Make no substantial alterations or
improvements to the Leased Premises without the prior written approval of
Landlord not to be unreasonably withheld. Any such alterations or improvements
by Tenant shall be done in a good and workmanlike manner, at Tenant's expense,
by a licensed contractor approved by Landlord and in conformity with plans and
specifications approved by Landlord.
e. Liens: Keep the Leased Premises, the Building and the Project
free from liens arising out of any work performed, materials furnished or
obligations incurred by or for Tenant. If, at any time, a lien or encumbrance
is filed against the Leased Premises, the Building or the Project as a result
of Tenant's work, materials or obligations, Tenant shall promptly discharge
such lien or encumbrance. If such lien or encumbrance has not been removed
within sixty (60) days from the date it is filed, Tenant agrees to deposit with
Landlord cash or a bond in an amount equal to 150% of the amount of the lien,
to be held by Landlord as security for the lien being discharged, however, if
Landlord is, at the time of the filing of the lien, involved in any
negotiations that require a clear title to the property, Tenant agrees to
immediately deposit with Landlord cash or bond as provided above.
f. Rules and Regulations: Observe, perform and abide by all the
reasonable rules and regulations promulgated by Landlord from time to time as
said rules and regulations are applied equally to other tenants of the
Building. SCHEDULE 2 sets forth Landlord's rules and regulations in effect on
the date hereof.
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g. Signage: Obtain the prior approval of the Landlord and
Landlord's mortgagee, if any, before placing any sign or symbol in doors or
windows or elsewhere in or about the Leased Premises, or upon any other part of
the Building, or Project including building directories. Any signs or symbols
which have been placed without Landlord's approval may be removed by Landlord.
Upon expiration or termination of this Lease, all signs installed by Tenant
shall be removed and any damage resulting therefrom shall be promptly repaired,
or such removal and repair may be done by Landlord and the cost charged to
Tenant as Rent. Tenant shall be entitled to customary recognition in the
Building's directory and suite signage, and to recognition on the exterior
mounted building signage. The signage tenant directory shall be installed by
Landlord prior to commencement of the Lease Term.
6.2 INSURANCE: Landlord shall, at its own expense, procure and maintain
comprehensive general liability insurance and fire and extended casualty
insurance in appropriate amounts. Tenant shall, at its own expense, procure
and maintain during the Lease Term comprehensive general liability insurance
with respect to the Leased Premises and Tenant's activities in the Leased
Premises and in the Building and the Project, providing bodily injury, broad
form property damage with a maximum $1,000.00 deductible, as follows:
a. $1,000,000.00 with respect to bodily injury or death to any one
person;
b. $5,000,000.00 with respect to bodily injury or death arising out
of any one occurrence;
c. $1,000,000.00 with respect to property damage or other loss
arising out of any one occurrence;
d. Fire and extended casualty insurance covering Tenant's trade
fixtures, merchandise and other personal property in an amount not less than
100% of their actual replacement cost; and
e. Workers' compensation insurance in at least the statutory
amounts.
Nothing in this paragraph 6.2 shall prevent Tenant from either providing
a self-insured retention of $5,000,000.00 per occurrence covering the risks and
exposures set forth in Sections a. through c. hereof or from obtaining
insurance of the kind and in the amounts provided for under this paragraph
under a blanket insurance policy covering other properties as well as the
Leased Premises, provided, however, that any such policy of blanket insurance
(i) shall specify the amounts of the total insurance allocated to the Leased
Premises, which amounts shall not be less than the amounts required by sections
a. through c. hereof., and (ii) such amounts so specified shall be sufficient
to prevent any one of the assureds from becoming a coinsurer within the terms
of the applicable policy, and (iii) shall,
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as to the Leased Premises, otherwise comply as to endorsements and coverage
with the provisions of this paragraph.
Tenant's insurance shall be issued by an insurer reasonably acceptable
to and approved by Landlord. Landlord and Landlord's mortgagee, if any, shall
be named as "additional insureds" under Tenant's insurance, and such Tenant's
insurance shall be primary and non-contributing with Landlord's insurance.
Tenant's insurance policies shall contain endorsements requiring thirty (30)
days' notice to Landlord and Landlord's mortgagee, if any, prior to any
cancellation, lapse or nonrenewal or any reduction in amount of coverage.
Tenant shall deliver to Landlord as a condition to its taking occupancy
of the Leased Premises a certificate or certificates evidencing such insurance.
6.3 REPAIRS: Subject to Landlord's Maintenance Services obligations as
described in ARTICLE 5.1b and in Schedule 4, Tenant agrees to maintain the
interior of the Leased Premises in a neat, clean and sanitary condition. If
Tenant fails to maintain or keep the Leased Premises in good repair and such
failure continues for five (5) business days after written notice from Landlord
or if such failure results in a nuisance or health or safety risk, Landlord may
perform any such required maintenance and repairs and the cost thereof shall be
payable by Tenant as Rent within thirty (30) days of receipt of an invoice from
Landlord. Tenant shall also pay to Landlord the costs of any repair to the
Building or Project necessitated by any act or neglect of Tenant.
6.4 ASSIGNMENT AND SUBLETTING: Tenant shall not assign, mortgage, pledge or
encumber this Lease, or permit all or any part of the Leased Premises to be
subleased to another, without the prior written consent of Landlord. Landlord
agrees that it will not unreasonably withhold its consent to Tenant's assigning
this Lease or subletting the Leased Premises. Tenant may, without the
Landlord's consent, assign this Lease to any parent, affiliate and/or any
successor, provided Tenant remains at all times primarily liable for all
obligations under the Lease.
Except as it relates to Tenant's assignment or subletting as noted above
to the parent, affiliate or successor, Tenant hereby agrees that Landlord shall
be deemed to be reasonable in withholding its consent if Tenant is in default
under any of the substantial terms, covenants, conditions, provisions and
agreements of this Lease past any period of cure provided for herein at the
time of request for consent or on the effective date of such subletting or
assigning, or if the proposed subtenant or assignee is, in Landlord's good
faith judgment, incompatible with other tenants in the Building, or seeks to
use the Leased Premises for a use not consistent with other uses in the
Building. Upon the Landlord's request, Tenant shall submit to Landlord the
name of a proposed assignee or subtenant, the terms of the proposed assignment
or subletting, the nature of the proposed
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subtenant's business and such information as to the assignee's or subtenant's
general reputation as Landlord may reasonably require.
No subletting or assignment, even with the consent of the Landlord, shall
relieve Tenant of its obligation to pay the Rent and to perform all of the
other obligations to be performed by Tenant hereunder. The acceptance of rent
by Landlord from any other person shall not be deemed to be a waiver by
Landlord of any provision of this Lease or to be a consent to any assignment,
subletting or other transfer. Consent to one assignment, subletting or other
transfer shall not be deemed to constitute consent to any subsequent
assignment, subletting or other transfer.
6.5 ESTOPPEL CERTIFICATE: From time to time and within thirty (30) days
after Tenant's receipt of a written request by Landlord, Tenant shall execute
and deliver a certificate supplied by Landlord to any proposed lender or
purchaser, or to Landlord, certifying with any appropriate exceptions, (i)
that this Lease is in full force and effect without modification, (ii) the
amount, if any, of Prepaid Rent and Deposit paid by Tenant to Landlord, (iii)
the nature and kind of concessions, rental or otherwise, if any, which Tenant
has received or is entitled to receive, (iv) that Landlord has performed all of
its obligations due to be performed under this Lease and that there are no
defenses, counterclaims, deductions or offsets outstanding or other excuses for
Tenant's performance under this Lease, or any exceptions to same, and (v) any
other fact reasonably requested by Landlord or such proposed lender or
purchaser.
6.6 BROKERAGE COMMISSIONS: Tenant represents to the Landlord that no broker
or agent represented Tenant other than the Tenant's broker, ▇▇▇▇▇▇▇ & Wakefield
of Michigan, Inc., and Tenant agrees to defend and indemnify Landlord against
any loss, expense or liability incurred by Landlord as a result of a claim by
any other broker or finder with regard to its representation of Tenant in
connection with this Lease or its negotiation. Landlord agrees to defend and
indemnify Tenant against any loss, expense or liability incurred by Tenant as a
result of a claim by any other broker or finder in connection with this Lease
or its negotiation.
ARTICLE SEVEN
LANDLORD'S RESERVED RIGHTS
7.1 ADDITIONAL RIGHTS RESERVED TO LANDLORD: Without notice and without
liability to Tenant or without effecting an eviction or disturbance of Tenant's
use or possession, Landlord shall have the right to (i) grant utility easements
or other easements in, or replat, subdivide or make other changes in the legal
status of the land underlying the Building or the Project as Landlord shall
deem appropriate in its sole discretion, provided such changes do not
substantially interfere with Tenant's use of the Leased Premises for the
Permitted Purpose; (ii) enter the Leased Premises at reasonable times and after
reasonable notice to the Tenant (twenty-four (24)
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hours' notice required), and at any time in the event of an emergency to
inspect or repair the Leased Premises or the Building and to perform any acts
related to the safety, protection, reletting, sale or improvement of the Leased
Premises or the Building; (iii) change the name or street address of the
Building; (iv) install and maintain signs on and in the Building, subject to
Tenant's right to review and approve structural changes to be made to exterior
wall-mounted building sign; and (v) make such reasonable rules and regulations
as, in the sole judgment of Landlord, may be needed from time to time for the
safety of the tenants, the care and cleanliness of the Leased Premises, the
Building and the preservation of good order therein, which rules and
regulations shall be applied equally to all tenants of the Building.
ARTICLE EIGHT
CASUALTY AND UNTENANTABILITY
8.1 CASUALTY AND UNTENANTABILITY: If the Building is made substantially
untenantable or if Tenant's use and occupancy of the Leased Premises are
substantially interfered with due to damage to the common areas of the Building
or the Leased Premises are made wholly or partially untenantable by fire or
other casualty, (i) Landlord may, by notice to Tenant within sixty (60) days
after the damage, terminate this Lease, or (ii) Tenant may, by notice to
Landlord within sixty (60) days after the damage, terminate this Lease,
provided, however, that Landlord shall be provided a reasonable opportunity
within such sixty-day period to restore the Leased Premises to the conditions
specified in Schedule 1 and Tenant's working drawings. Such termination shall
become effective as of the date of such casualty.
If the Leased Premises are made partially or wholly untenantable by fire
or other casualty and this Lease is not terminated as provided above, Landlord
shall restore within 150 days of the date of such casualty the Leased Premises
to the condition specified in Schedule 1 and Tenant's working drawings.
If this Lease is not terminated as provided above, and Landlord fails
within 150 days from the date of such casualty to restore the damaged common
areas thereby eliminating substantial interference with Tenant's use and
occupancy of the Leased Premises, or fails to restore the Leased Premises to
the condition specified in Schedule 1 and Tenant's working drawings, Tenant may
terminate this Lease as of the end of such 150-day period, such termination
being effective as of the date of such casualty.
In the event of termination of this Lease pursuant to this ARTICLE EIGHT,
Rent shall be prorated on a per diem basis and paid to the date of the
casualty, unless the Leased Premises shall be tenantable, in which case Rent
shall be payable to the date of the lease termination. If the Leased Premises
are untenantable and this Lease is not terminated, Rent and Tenant's other
obligations hereunder shall ▇▇▇▇▇ on a per diem basis from the date of the
casualty until the Leased
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Premises are ready for occupancy by Tenant. If part of the Leased Premises are
untenantable, Rent and Tenant's other obligations hereunder shall be prorated
on a per diem basis and apportioned in accordance with the part of the Leased
Premises which is usable by Tenant until the damaged part is ready for Tenant's
occupancy.
ARTICLE NINE
CONDEMNATION
9.1 CONDEMNATION: If all or any part of the Leased Premises shall be taken
under power of eminent domain or sold under imminent threat to any public
authority or private entity having such power, this Lease shall terminate as to
the part of the Leased Premises so taken or sold, effective as of the date
title transfers or possession is required to be delivered to such authority,
whichever occurs earlier. In such event, Base Rent shall ▇▇▇▇▇ in the ratio
that the portion of Tenant's Square Footage taken or sold bears to Tenant's
Square Footage. If a partial taking or sale of the Leased Premises, the
Building or the Project (i) substantially reduces Tenant's Square Footage
resulting in a substantial inability of Tenant to use the Leased Premises for
the Permitted Purpose, or (ii) renders the Building or the Project commercially
unviable to Landlord in Landlord's sole opinion, either Tenant in the case of
(i), or Landlord in the case of (ii), may terminate this Lease by notice to the
other party within thirty (30) days after the terminating party receives
written notice of the portion to be taken or sold. Such termination shall be
effective 180 days after notice thereof, or when the portion is taken or sold,
whichever is sooner. All condemnation awards and similar payments shall be
paid and belong to Landlord, except any amounts awarded or paid specifically to
Tenant for removal and reinstallation of Tenant's trade fixtures, personal
property, Tenant's moving costs, or other amounts to which Tenant may be
entitled as long as they do not prejudice Landlord or reduce Landlord's award.
ARTICLE TEN
LIABILITY OF PARTIES
10.1 INDEMNIFICATION AGAINST LANDLORD'S LIABILITY: Tenant agrees to hold
Landlord harmless and indemnified against claims and liability for injuries to
all persons and for damage to or loss of property occurring in or about the
Leased Premises, to the extent of Tenant's responsibility for any act of
negligence or default under this Lease by Tenant, its contractors, agents,
employees, licensees and invitees.
10.2 INDEMNIFICATION AGAINST TENANT'S LIABILITY: Landlord agrees to hold
Tenant harmless and indemnified against claims and liability for injuries to
all persons and for damage to or loss of property occurring in or about the
Leased Premises, due to any act or negligence or default under this Lease by
Landlord, its contractors, agents, employees, licensees and invitees.
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10.3 WAIVER OF SUBROGATION: Tenant and Landlord release each other and waive
any right of recovery against each other for loss or damage to the waiving
party or its respective property, which occurs in or about the Leased Premises,
whether due to the negligence of either party, their agents, employees,
officers, contractors, licensees, invitees or otherwise, to the extent that
such loss or damage is insurable against under the terms of standard fire and
extended coverage insurance policies. Tenant and Landlord agree that all
policies of insurance obtained by either of them in connection with the Leased
Premises shall contain appropriate waiver of subrogation clauses.
10.4 LIMITATION OF LANDLORD'S LIABILITY: The obligations of Landlord under
this Lease do not constitute personal obligations of the individual partners,
shareholders, directors, officers, employees or agents of Landlord, and Tenant
shall look solely to Landlord's insurance or interest in the Building and to no
other assets of Landlord for satisfaction of any liability in respect of this
Lease. Tenant will not seek recourse against the individual partners,
shareholders, directors, officers, employees or agents of Landlord or any of
their personal assets for such satisfaction. Notwithstanding any other
provisions contained herein, Landlord shall not be liable to Tenant, its
contractors, agents or employees for any consequential damages or damages for
loss of profits.
10.5 LIMITATION OF TENANT'S LIABILITY: The obligations of Tenant under this
Lease do not constitute personal obligations of the individual partners,
shareholders, directors, officers, employees, or agents of Tenant. Landlord
will not seek recourse against the individual partners, shareholders,
directors, officers, employees, or agents of Tenant or any of their personal
assets for such satisfaction. Notwithstanding any other provisions contained
herein, Tenant shall not be liable to Landlord, its contractors, agents or
employees for any consequential damages or damages for loss of profits.
ARTICLE ELEVEN
TENANT'S DEFAULT AND LANDLORD'S REMEDIES
11.1 TENANT'S DEFAULT: It shall be an "Event of Default" if Tenant shall (i)
fail to pay any monthly installment of Base Rent, or any other sum payable
hereunder within ten (10) days after such payment is due and payable; or (ii)
violate or fail to perform any of the other conditions, covenants or agreements
herein made by Tenant, and such violation or failure shall continue for fifteen
(15) days after written notice thereof to Tenant by Landlord.
11.2 REMEDIES OF LANDLORD: If an Event of Default occurs, Landlord may, at
its option, within five (5) days after written notice from Landlord, exercise
all legal remedies available to Landlord under applicable Michigan law.
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ARTICLE TWELVE
TERMINATION
12.1 SURRENDER OF LEASED PREMISES: On expiration of this Lease, if no Event
of Default exists, Tenant shall surrender the Leased Premises in the same
condition as when the Lease Term commenced, ordinary wear and tear and casualty
damage excepted. Except for furnishings, trade fixtures and other personal
property installed at Tenant's expense, all alterations, additions or
improvements, whether temporary or permanent in character, made in or upon the
Leased Premises, either by Landlord or Tenant, shall be Landlord's property and
at the expiration or earlier termination of the term shall remain on the Leased
Premises without compensation to Tenant, except if requested by Landlord at the
time they are made, Tenant, at its expense and without delay, shall remove any
alterations, additions or improvements made to the Leased Premises by Tenant
designated by Landlord to be removed, and repair any damage to the Leased
Premises or the Building caused by such removal, provided, however, that Tenant
shall not be required to remove improvements to the Leased Premises which have
previously been approved by Landlord. If Tenant fails to repair the Leased
Premises, Landlord may complete such repairs and Tenant shall reimburse
Landlord for such repair and restoration. Landlord shall have the option to
require Tenant to remove all its personal property. If Tenant fails to remove
such property as required under this Lease, Landlord may dispose of such
property in its sole discretion without any liability to Tenant, and further
may charge the reasonable cost of any such disposition to Tenant.
12.2 HOLD OVER TENANCY: If Tenant shall hold over after the Lease expiration
Date, Tenant may be deemed, at Landlord's option, to occupy the Leased Premises
as a tenant from month to month, which tenancy may be terminated by one month's
written notice. During such tenancy, Tenant agrees to pay to Landlord, monthly
in advance, an amount equal to 150% of all Rent which would become due (based
on Base Rent payable for the last month of the Lease Term, together with all
other amounts payable by Tenant to Landlord under this Lease), and to be bound
by all of the terms, covenants and conditions herein specified. If Landlord
relets the Leased Premises or any portion thereof to a new tenant and the term
of such new lease commences during the period for which Tenant holds over,
Landlord shall be entitled to recover from Tenant all reasonable costs and
expenses, attorney's fees, damages or loss of profits incurred by Landlord as a
result of Tenant's failure to deliver possession of the Leased Premises to
Landlord when required under this Lease.
ARTICLE THIRTEEN
ENVIRONMENTAL REPRESENTATIONS
13.1 DEFINITIONS: The phrase "Environmental Condition" shall mean any adverse
condition relating to any Hazardous Materials (as defined below) or the
environment, including surface water, groundwater, drinking water supply, land,
surface or subsurface strata or the ambient air and includes air, land and
water pollutants, noise,
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vibration, light and odors. As used herein, "Hazardous Materials" means any
chemical, substance, material, controlled substance, object, condition, waste,
living organism or combination thereof which is or may be hazardous to human
health or safety or to the environment due to its radioactivity, ignitability,
corrosivity, reactivity, explosivity, toxicity, carcinogenicity, mutagenicity,
phytotoxicity, infectiousness or other harmful or potential harmful properties
or effects, including, without limitation, petroleum and petroleum products,
asbestos, radon, polychlorinated biphenyls (PCBs) and all of those chemicals,
substances, materials, controlled substances, objects, conditions, wastes,
living organisms or combinations thereof which are now or become in the future
listed, defined or regulated in any manner by an environmental law based upon,
directly or indirectly, such properties or effects. As used herein,
"Environmental Laws" means any and all federal, state or local environmental,
health and/or safety-related laws, regulations, standards, decisions of courts,
ordinances, rules, codes, orders, decrees, directives, guidelines, permits or
permit conditions, currently existing and as amended, enacted, issued or
adopted in the future which are or become applicable to Lessee, the premises or
the building. Lessee and Lessee's parties shall comply with all environmental
laws and promptly notify Lessor of the violation of any environmental law or
presence of any hazardous materials, other than office and janitorial supplies
as permitted above, on the premises.
13.2 LANDLORD'S REPRESENTATIONS: Landlord hereby represents that, to the
best of its knowledge, no Environmental Condition (as defined above) presently
exists or has existed prior to the commencement date of this Lease in the
Building.
13.3 TENANT'S REPRESENTATIONS: Tenant hereby represents to the Landlord
that, to the best of its knowledge, Tenant's use of the Leased Premises will
not result in or create an Environmental Condition on, under or within the
Building.
13.4 INDEMNIFICATION OF PARTIES: Tenant shall indemnify, protect, defend and
hold harmless Landlord and its partners, directors, officers, employees,
shareholders, lenders, agents, contractors and their successors and assigns
from and against any and all claims, judgments, causes of action, damages,
penalties, fines, taxes, costs, liabilities, losses or expenses arising at any
time during or after the term of this Lease as a result of an Environmental
Condition caused by Tenant or as a result of any breach of the Tenant
representations contained in this Lease.
Landlord shall indemnify, protect, defend and hold harmless Tenant and its
partners, directors, officers, employees, shareholders, lenders, agents,
contractors and their successors and assigns from and against any and all
claims, judgments, causes of action, damages, penalties, fines, taxes, costs,
liabilities, losses or expenses arising at any time during or after the term of
this Lease as a result of an Environmental Condition not caused by Tenant or as
a result of any breach of the Landlord representations contained in this Lease.
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ARTICLE FOURTEEN
MISCELLANEOUS
14.1 QUIET ENJOYMENT: If and so long as Tenant pays all Rent and keeps and
substantially performs each and every term, covenant and condition herein
contained on the part of Tenant to be kept and performed, Tenant shall quietly
enjoy the Leased Premises without hindrance by Landlord.
14.2 ACCORD AND SATISFACTION: No receipt and retention by Landlord of any
payment tendered by Tenant in connection with this Lease shall constitute an
accord and satisfaction, or a compromise or other settlement, notwithstanding
any accompanying statement, instruction or other assertion to the contrary
unless Landlord expressly agrees to an accord and satisfaction, or a compromise
or other settlement, in a separate writing duly executed by Landlord. Landlord
will be entitled to treat any such payments as being received on account of any
item or items of Rent, interest, expense or damage due in connection herewith,
in such amounts and in such order as Landlord may determine at its sole option.
14.3 SEVERABILITY: The parties intend this Lease to be legally valid and
enforceable in accordance with all of its terms to the fullest extent permitted
by applicable law. If any term hereof shall be invalid or unenforceable, the
parties agree that such term shall be stricken from this Lease to the extent
unenforceable, the same as if it never had been contained herein. Such
invalidity or unenforceability shall not extend to any other term of this
Lease, and the remaining terms hereof shall continue in effect to the fullest
extent permitted by law, the same as if such stricken term never had been
contained herein.
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14.4 SUBORDINATION AND ATTORNMENT: The rights of Tenant under this Lease are
and shall be subordinate to the lien of any first mortgage or first deed of
trust, now or hereafter in force against the Building, and to all advances made
or hereafter to be made thereunder ("Superior Instruments"). If requested in
writing by Landlord or any first mortgagee of Landlord, Tenant agrees to
execute a reasonable subordination agreement required to further effect the
provisions of this paragraph.
In the event of any transfer in lieu of foreclosure or termination of a
lease in which Landlord is lessee or the foreclosure of any Superior
Instrument, or sale of the Property pursuant to any Superior Instrument, Tenant
shall attorn to such purchaser, transferee or lessor and recognize such party
as landlord under this Lease, provided such party acquires and accepts the
Leased Premises subject to this Lease and agrees to non-disturbance during the
remaining and extended term of this Lease. The agreement of Tenant to attorn
contained in the immediately preceding sentence shall survive any such
foreclosure sale or transfer.
14.5 APPLICABLE LAW: This Lease shall be construed according to the laws of
the State of Michigan.
14.6 BINDING EFFECT; GENDER: This Lease shall be binding upon and inure to
the benefit of the parties and their successors and assigns. It is understood
and agreed that the terms "Landlord" and "Tenant" and verbs and pronouns in the
singular number are uniformly used throughout this Lease regardless of gender,
number or fact of incorporation of the parties hereto.
14.7 TIME: Except as otherwise may be provided in this Lease, time is of the
essence of this Lease.
14.8 ENTIRE AGREEMENT: This Lease and the schedules and addenda attached set
forth all the covenants, promises, agreements, representations, conditions,
statements and understandings between Landlord and Tenant concerning the Leased
Premises and the Building and the Project, and there are no representations,
either oral or written between them other than those in this Lease. This Lease
shall not be amended or modified except in writing signed by both parties.
Failure to exercise any right in one or more instances shall not be construed
as a waiver of the right to strict performance or as an amendment to this
Lease.
14.9 NOTICES: All notices pursuant to this Lease shall be in writing and
shall be effective when mailed by certified mail or delivered (i) to Landlord
or Tenant at the addresses designated in Article 1.1 with a copy to the
Managing Agent of the Leased Premises, or (ii) to such other addresses as may
hereafter be designated by either party by written notice.
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SUBMISSION OF THIS INSTRUMENT FOR EXAMINATION OR SIGNATURE BY TENANT DOES
NOT CONSTITUTE A RESERVATION OF OR OPTION FOR LEASE, AND IT IS NOT EFFECTIVE AS
A LEASE OR OTHERWISE UNTIL EXECUTION AND DELIVERY BY BOTH LANDLORD AND TENANT.
This Lease is executed as of the date first written above.
WITNESS: LANDLORD:_____________________
________________________________ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, TRUSTEE UNDER
AGREEMENT DATED APRIL 1, 1965
________________________________ By____________________________
Authorized Signatory
WITNESS: TENANT:
________________________________ RANDERS ENGINEERING, INC.
________________________________ By ___________________________
Its __________________________
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ACKNOWLEDGMENTS
STATE OF OHIO :
ss.
COUNTY OF ▇▇▇▇▇:
The signing of the above Lease was acknowledged before me this 12th day of
August, 1996, by ▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Trustee Under Agreement dated April 1, 1965.
______________________________
Notary Public
STATE OF MICHIGAN :
ss.
COUNTY OF Muskegon :
The signing of the above Lease was acknowledged before me this 9th day of
August, 1996, by ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, as President of Randers Engineering, Inc., a
Michigan corporation.
______________________________
Notary Public
This Instrument Prepared by:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Martin, Browne, Hull & ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
P. O. ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
Telephone (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier (▇▇▇) ▇▇▇-▇▇▇▇
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SCHEDULE 1
DESCRIPTION OF THE PREMISES AND FLOOR PLAN
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SCHEDULE 2
RULES AND REGULATIONS
1. The sidewalks, entrances, halls, corridors, elevators and stairways of
the Building, excluding the second floor elevator lobby, shall not be
obstructed or used as a waiting or lounging place by Tenants, and their agents,
servants, employees, invitees, licensees and visitors. All entrance doors
leading from any Leased Premises to the hallways are to be kept closed at all
times, subject to City of Novi, Michigan code.
2. Landlord reserves the right to refuse admittance to the Building between
the hours of 7:00 p.m. and 7:00 a.m. Monday through Saturday, and from 2:00
p.m. Saturday to 7:00 a.m. Monday to any person not producing both a key or
card to the Leased Premises and/or a pass issued by Landlord. In case of
invasion, riot, public excitement or other commotion, Landlord also reserves
the right to prevent access to the Building during the continuance of same.
Landlord shall in no case be liable for damages for the admission or exclusion
of any person to or from the Building.
3. Landlord will furnish each Tenant with thirty-three (33) keys or cards to
each door lock on the Leased Premises, and Landlord may make a reasonable
charge for any additional keys requested by any Tenant. No Tenant shall have
any keys or cards made for the Leased Premises; nor shall any Tenant alter any
lock, or install new or additional locks or bolts, on any door without the
prior written approval of Landlord. In the event of such alteration for
installation approval by Landlord, the Tenant making such alteration shall
supply Landlord with a key or card for any such lock or bolt. Each Tenant,
upon the expiration or termination of its tenancy, shall deliver to Landlord
all keys or cards in any such Tenant's possession for all locks and bolts in
the Building.
4. In order that the Building may be kept in a state of cleanliness, each
Tenant shall during the term of each respective lease, permit Landlord's
employees (or Landlord's agent's employees) to take care of and clean the
Leased Premises and Tenants shall not employ any person(s) other than
Landlord's employees (or Landlord's agent's employees) for such purpose. No
Tenant shall cause any unnecessary labor by reason of such Tenant's
carelessness or indifference in the preservation of good order and cleanliness
of the Leased Premises. Tenants will see that (i) the windows are closed, (ii)
the doors are securely locked, and (iii) all water faucets and other utilities
are shut off (so as to prevent waste or damage) each day before leaving the
Leased Premises. In the event Tenant must dispose of crates, boxes, etc. which
will not fit into office waste paper baskets, it will be the responsibility of
Tenant to dispose of same. In no event shall Tenant set such items in the
public hallways or other areas of the Building, excepting Tenant's own Leased
Premises, for disposal.
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5. Landlord reserves the right to prescribe the date, time, method and
conditions that any personal property, equipment, trade fixtures, merchandise
and other similar items shall be delivered to or removed from the Building. No
iron safe or other heavy or bulky object shall be delivered to or removed from
the Building, except by experienced safe men, movers or riggers approved in
writing by Landlord. All damage done to the Building by the delivery or
removal of such items, or by reason of their presence in the Building, shall be
paid to Landlord, within thirty (30) days of presentation of invoice, by the
Tenant by, through, or under whom such damage was done. There shall not be
used in any space, or in the public halls of the Building, either by Tenant or
by jobbers or others, in the delivery or receipt of merchandise, any hand
trucks, except those equipped with rubber tires.
6. The walls, partitions, skylights, windows, doors and transoms that
reflect or admit light into passageways or into any other part of the Building
shall not be covered or obstructed by any of the Tenants.
7. The toilet rooms, toilets, urinals, wash bowls and water apparatus shall
not be used for any purpose other than for those for which they were
constructed or installed, and no sweepings, rubbish, chemicals, or other
unsuitable substances shall be thrown or placed therein. The expense of any
breakage, stoppage or damage resulting from violation(s) of this rule shall be
borne by the Tenant by whom, or by whose agents, employees, invitees, licensees
or visitors, such breakage, stoppage or damages shall have been caused.
8. No sign, name, placard, advertisement or notice visible from the exterior
of any Leased Premises, shall be inscribed, painted or affixed by any Tenant on
any part of the Building without the prior written approval of Landlord, which
approval shall not be unreasonably withheld. All signs or letterings on doors,
or otherwise, approved by Landlord shall be inscribed, painted or affixed at
the sole cost and expense of the Tenant, by a person approved by Landlord. A
directory containing the names of all Tenants of the Building shall be provided
by Landlord at an appropriate place on the first floor of the Building.
9. No signalling, telegraphic or telephonic instruments or devices, or other
wires, instruments or devices, shall be installed in connection with any Leased
Premises without the prior written approval of Landlord, said approval shall
not be unreasonably withheld. Such installations, and the boring or cutting
for wires, shall be made at the sole cost and expense of the Tenant and under
control and direction of Landlord. Landlord retains, in all cases, the right
to require (i) the installation and use of such electrical protecting devices
that prevent the transmission of excessive currents of electricity into or
through the Building, (ii) the changing of wires and of their installation and
arrangement underground or otherwise as Landlord may direct, and (iii)
compliance on the part of all using or seeking access to such wires with such
rules as Landlord may establish relating thereto. All such wires used by
Tenants must be clearly
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tagged at the distribution boards and junction boxes and elsewhere in the
Building, with (i) the number of the Leased Premises to which said wires lead,
(ii) the purpose for which said wires are used, and (iii) the name of the
company operating same. Landlord will permit the installation of computer
lines and telephone links by Tenant without its prior written approval.
10. Tenant, their agents, servants or employees, shall not (a) go on the roof
of the Building; (b) use any additional method of heating or air conditioning
the Leased Premises that has not previously been approved by Landlord; (c)
sweep or throw any dirt or other substance from the Leased Premises into any of
the halls, corridors, elevators, or stairways of the Building; (d) bring in or
keep in or about the Leased Premises any vehicles or animals of any kind; (e)
install any radio or television antennae or any other device or item on the
roof, exterior walls, windows or windowsills of the Building; (f) place objects
against glass partitions, doors or windows which would be unsightly from the
interior or exterior of the Building; (g) use any Leased Premises (i) for
lodging or sleeping, (ii) for cooking (except that the use by any tenant of
Underwriter's Laboratory equipment for brewing coffee, tea and similar
beverages, including a refrigerator, or the use of a microwave oven or similar
kitchen appliance for Tenant's own use, shall be permitted, provided that such
use is in compliance with law), (iii) for any manufacturing, storage or sale of
merchandise or property of any kind; (h) cause or permit unusual or
objectionable odor to be produced or permeate from the Leased Premises,
including, without limitation, duplicating or printing equipment fumes.
Tenant, its agents, servants and employees, invitees, licensees, or visitors
shall not permit the operation of any musical or sound producing instruments or
device which may be heard outside the Leased Premises or Building, or which may
emit electrical waves which will impair radio or television broadcast or
reception from or into the Building.
11. Tenants shall not store or use in any Leased Premises any (a) ether,
naptha, phosphorus, benzol, gasoline, benzine, petroleum, crude or refined
earth or coal oils, flashlight powder, kerosene or camphene, (b) any other
flammable, combustible, explosive or illuminating fluid, gas or material of any
kind, and (c) any other fluid, gas or material of any kind having an offensive
odor, without the prior written consent of Landlord.
12. No canvassing, soliciting, distribution of hand bills or other written
material, or peddling shall be permitted in the Building, and Tenants shall
cooperate with Landlord in prevention and elimination of same.
13. Tenant shall give Landlord prompt notice of all accidents to or defects
in air conditioning equipment, plumbing, electrical facilities or any part or
appurtenances of Leased Premises.
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14. If, because of certain actions by the Tenant, the Leased Premises becomes
infested with vermin, the Tenant, at its sole cost and expense, shall cause its
premises to be exterminated from time to time to the satisfaction of the
Landlord and shall employ such exterminators as shall be approved by Landlord.
If the infestation occurs through no fault of the Tenant, the Landlord shall be
responsible to exterminate the Leased Premises at Landlord's expense.
15. No curtains, blinds, shades, screens, awnings or other coverings or
projections of any nature shall be attached to or hung in, or used in
connection with any door, window or wall of the premises of the Building
without the prior written consent of Landlord.
16. Landlord shall have the right to prohibit any advertising by Tenant
which, in Landlord's opinion, tends to impair the reputation of Landlord or of
the Building, or its desirability as an office building for existing or
prospective Tenants who require the highest standards of integrity and
respectability, and upon written notice from Landlord, Tenant shall refrain
from or discontinue such advertising.
17. Whenever the word "Tenant" occurs, it is understood and agreed that it
shall also mean Tenant's associates, employees, agents and any other person
entering the Building or the Leased Premises under the express or implied
invitation of Tenant. Tenant shall cooperate with Landlord to assure
compliance by all such parties with rules and regulations.
18. Landlord reserves the right to make reasonable amendments, modifications
and additions to the rules and regulations heretofore set forth, and to make
additional reasonable rules and regulations, as in Landlord's sole judgment may
from time to time be needed for the safety, care, cleanliness and preservation
of good order of the Building.
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SCHEDULE 3
UTILITY SERVICES
The Landlord shall provide, as part of Operating Costs, except as otherwise
provided, the following services:
1. Air conditioning and heat for normal general office purposes only, to
provide in Landlord's judgment consistent with other comparable Class A
buildings, comfortable occupancy Monday through Friday from 7:00 a.m. to 6:00
p.m., and Saturday from 8:00 a.m. to 2:00 p.m., Sundays and holidays excepted.
Tenant agrees not to use any apparatus or device, in or upon or about the
Leased Premises, and Tenant further agrees not to connect any apparatus or
device with the conduits or pipes, or other means by which such services are
supplied, for the purpose of using additional or unusual amounts of such
services, without written consent of Landlord. Should Tenant request the use
of these services at other than operating hours listed above, Landlord reserves
the right to charge for such services at the hourly rate of $55.00. The charge
shall be payable as additional rental. Should Tenant fail to make payment
within thirty (30) days after demand for same, such excess charge constitutes a
breach of the obligation to pay rent under this Lease and shall entitle
Landlord to the rights hereinafter granted for such breach.
2. Water for drinking, lavatory and toilet purposes from the regular
Building supply (at the prevailing temperature) through fixtures installed by
Landlord, (or by Tenant with Landlord's written consent).
3. Landlord agrees to provide operational systems in the Building as
follows: adequate heating and cooling systems; adequate plumbing fixtures and
hot and cold water distribution systems; an adequate electrical distribution
system; two (2) operational passenger elevators; appropriate lighting
equipment, and to maintain same in a safe, efficient and appropriate manner.
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SCHEDULE 4
MAINTENANCE SERVICES
1. Subject to the terms of the Lease, Landlord shall supply public restroom
supplies, common area lamp replacement (exclusive of lamp and ballast
replacement in the Leased Premises which shall be at Tenant's sole cost),
window washing with reasonable frequency, and janitor services to the common
areas and leased premises during the time and in the manner that such janitor
services are customarily furnished in general Class A office buildings in the
area.
2. Landlord agrees to maintain the exterior and interior of the Leased
Premises to include lawn and shrub care, snow removal, maintenance of the
structure, roof, mechanical and electrical equipment, architectural finish,
including windows, fire sprinklers, HVAC, lighting, elevators and plumbing and
so on, excluding only those items specifically excepted elsewhere in this
Lease.
3. Specifications for the above services are attached hereto as follows:
(A) Schedule 4A - HVAC Maintenance Specifications
(B) Schedule 4B - Landscaping Specifications
(C) Schedule 4C - Snow Removal and Ice Control
(D) Schedule 4D - Janitorial Specifications
4. Notwithstanding the foregoing, in no event shall Landlord be responsible
for Building Systems improperly installed by Tenant or Tenant's contractors.
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SCHEDULE 4A
HVAC - MAINTENANCE SPECIFICATIONS
A. Regularly inspect the operation and condition of the equipment according to
the specifications below.
B. Furnish all cleaning material, belts, filters and lubrication.
C. Test equipment, inspect heat exchangers, evaporators and condensers to
assure efficient and safe operation.
D. Make the required adjustments and repairs to provide satisfactory operation
of all safety controls and operating controls.
Specifications include cleaning, maintenance, repair and inspection of the
following:
1. COOLING: Change all filters, check for adequate refrigerant charge, check
for refrigerant leaks, check condenser coil and clean, check condenser fan
blades for tightness, check voltage of unit under full load, check
condensate drain and lines, check lower belt, lubricate all bearings, check
all safety controls, check contractor contacts, check thermostat and
calibrate, check cooling/heating dampers, inspect evaporator coil, check oil
level in compressor, check entire unit operation, check suction and
discharge pressures.
2. HEATING: Change all filters, check all burners, check blower belt, check
blower motor amperage and lubricate, test for gas leaks in furnace, test and
adjust pressure regulator, lubricate all necessary parts, clean and adjust
pilot assembly, clean and adjust all controls, check operation of safety
controls, clean and adjust thermostat, adjust burner for efficiency, inspect
all furnace wiring, inspect heat exchanger, check cooling/heating dampers,
inspect coil for cleanliness.
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SCHEDULE 4B
LANDSCAPING SPECIFICATIONS
Lawn Areas:
- Lawn area to be mowed and trimmed once a week (weather
permitting)
- Concrete and asphalt surfaces will be kept clean after
mowing.
- All walks and curbs will be edged on a monthly basis.
- Fall clean up is to be included.
Gardening:
- Existing beds to be sprayed as required to control weeds.
- Ornamental trees and shrubs to be pruned and trimmed on an "as
needed" basis.
- Decision on as needed and required items to be determined by
property manager, landscaping contractor or both.
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SCHEDULE 4C
SNOW REMOVAL & ICE CONTROL SPECIFICATIONS
SNOW REMOVAL SERVICE
- Plowing with trucks to begin at 1-1/2 inches (one and one-
half inches).
- Parking lots and drives to be plowed.
- Walkways, sidewalks and porches to be shoveled.
- Salting and ice control.
- Hauling snow if needed.
1. Snow removal will occur on all sidewalks for accumulations of snow from one
and one-half (1-1/2) inches.
2. Measurement of snowfall or accumulation will be determined by measuring the
depth of snow on the site. If any disputes arise regarding the amount of
snowfall or accumulation of snow at any given time, the dispute will be
resolved by referring to the U.S. Weather Bureau for records for the Detroit
metropolitan area.
3. Salting or ice control service to be performed when contractor feels it
necessary to prevent icy or slippery conditions.
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SCHEDULE 4D - PAGE 1
JANITORIAL SPECIFICATIONS
Suite Areas and Kitchen Area
Daily
- Vacuum all carpeting.
- Dust desk tops that are cleared of work papers.
- Empty all waste baskets and place rubbish in disposal area.
- Empty and damp wipe all ashtrays.
- Spot clean entrance doors and side lights.
Weekly
- Dust wipe and disinfect all telephones.
- Dust or whisk broom all furniture.
- Dust window ledges.
- Dust tops of file cabinets, ledges and base boards.
Monthly
- Dust all window blinds.
- Dust ceiling and walls; special attention given to cobwebs.
Elevators
Daily
- Vacuum carpet and clean tracks.
- Clean and polish brass or bright surfaces.
- Damp wipe interior and spot clean marks.
- Damp wipe elevator cab exterior doors.
- Spot clean carpet as necessary.
Weekly
- Vacuum ceiling grille work.
- Polish elevator door tracks.
Lobbies and Hallways
Daily
- Vacuum all carpeted areas.
- Clean and disinfect all drinking fountains.
- Spot clean entrance doors - glass and side lights - inside and
out.
- Dust and spot wash all walls as necessary.
- Vacuum all vestibule floor strips.
- Sweep all stairwells.
- Damp mop all tile flooring.
- Polish all bright door hardware, hand rails, etc.
- Dust and damp wipe all doors, walls, and other dust-catching surfaces
as necessary.
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SCHEDULE 4D - PAGE 2
JANITORIAL SPECIFICATIONS
Weekly
- Dust all walls and ceilings - special attention to cobwebs.
- Damp mop all stairwells and high dust.
- Clean mirrors as needed: minimum once per week.
- Vacuum vestibule strip ▇▇▇▇▇.
General
- Police dumpster area.
- Wipe down all doors.
- Window washing - exterior done twice per year, interior
windows done on an as required basis.
Rest Rooms
Daily
- Wet mop floors using a disinfectant.
- Dust and spot wash all partitions and walls.
- Clean and sanitize toilets (including both sides of seats),
urinal and sinks.
- Clean and refill all sanitary napkin dispensers, toilet
tissue, soap and hand towels from owner's stock.
- Polish all brass and chrome hardware.
- Empty all waste receptacles.
- Clean mirrors and sinks.
Weekly
- Damp wipe all walls and partitions.
- Pour disinfectant down drains.
- High dusting - special attention to cobwebs.
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SCHEDULE 5
PARKING
Landlord hereby grants to Tenant a license to the use during the term of
this Lease the spaces described in Article 1.1h. Said parking spaces shall be
made available to Tenant on an unallocated basis and Tenant agrees to comply
with such reasonable rules and regulations as may be made by Landlord from time
to time in order to insure the proper operation of the parking facilities.
Tenant agrees not to overburden the parking facilities and agrees to cooperate
with Landlord and other Tenants in the use of parking facilities. Landlord
reserves the right in its sole discretion to determine whether parking
facilities are becoming crowded, and in such event, to allocate specific
parking spaces among Tenant and other Tenants or to take such other steps
necessary to correct such condition, and if Tenant, its agents, officers,
employees, contractors, licensees or invitees are deemed by Landlord to be
contributing to such condition, Landlord may, in its sole discretion, and upon
giving thirty (30) days notice to Tenant, change the location and nature of the
parking spaces available to Tenant, provided that after such change, there
shall be available to Tenant approximately the same number of spaces as
available before such change.
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SCHEDULE 6
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇, ▇▇▇▇▇▇▇▇
Date: _____________________________
WORK LETTER AGREEMENT
Randers Engineering, Inc.
_________________________
_________________________
_________________________
Re: Suite ____________________________________________
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇:
You (referred to as "Tenant"), and we (referred to as "Landlord") are
executing, simultaneous with this work letter agreement, a written lease (the
"Lease") pertaining to the space referred to above (the "Leased Premises").
This work letter agreement is attached to the Lease as Schedule 6 and made a
part of the Lease.
To induce Tenant and Landlord, each, to enter into the Lease (which is
hereby incorporated by reference to the extent that the provisions of this work
letter agreement may apply thereto) and in consideration of the mutual
covenants hereinafter contained, Landlord and Tenant mutually agree as follows:
1. Definitions. The terms defined in this paragraph, for purposes of
this work letter agreement, shall have the meanings specified herein, and, in
addition to the terms defined herein, terms defined in the Lease shall, for the
purposes of this work letter agreement, have the meanings specified therein.
1.01 "Base Tenant Improvements" means the Building Standard items which
are supplied, installed and finished by Landlord and such other items shown
on the Construction Documents, according to Building Standard specifications
and the Construction Documents and which shall be paid for by Landlord as
provided for in paragraph 2.01 below. Landlord agrees to provide up to a
maximum of $18.25 per usable square foot of leased area toward the cost of
Base Tenant Improvements. The cost of the first $15.25 per square foot of
construction costs have been incorporated into the base rent shown on
Schedule 8 of the Lease. The remaining $3.00 of construction costs, if
required, shall be provided by Landlord and the lease rental rate schedule
shall be
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amended to reflect this additional expenditure in accordance with the
"Additional Rent" paragraph of Schedule 8.
1.02 "Building Standard" means the quantity and quality of materials,
finishing and workmanship specified by Landlord for the Building.
1.03 "Construction Documents" means Exhibit 1 which is attached hereto
and made a part hereof, and have been approved.
1.04 "Extraordinary Tenant Improvements" means any work Tenant requests
Landlord to do in connection with the Leased Premises, other than Base
Tenant Improvements, after the Construction Documents have been approved
and signed by both Landlord and Tenant. All construction costs in
excess of $18.25 per usable square foot shall be deemed as Extraordinary
Tenant Improvements.
1.05 "Leasehold Improvements" means the aggregate of Base Tenant
Improvements and Extraordinary Tenant Improvements.
1.06 "Substantial Completion" means that the Leasehold Improvements have
been substantially completed according to the Construction Documents, except
for items which will not materially affect the use of the Leased Premises or
which customarily are deemed to be "punchlist work," and Landlord has
obtained either a temporary or final certificate of occupancy for the Leased
Premises.
2. Construction Documents; Payments.
2.01 The parties have approved and executed Construction Documents for
the Leased Premises, a copy of which is attached hereto as Exhibit 1.
Landlord shall be solely responsible at Landlord's cost to buildout the Base
Tenant Improvements. Tenant shall be solely responsible at Tenant's expense
for any Extraordinary Tenant Improvements.
3. Leasehold Improvements.
3.01 The following provisions shall apply to the construction of the
Leasehold Improvements:
(a) All work involved in the completion of the Leasehold Improvements
shall be carried out by Landlord and its agents and contractors under
the sole direction of Landlord. Tenant shall cooperate with Landlord
and its agents and contractors to promote the efficient and
expeditious completion of the Leasehold Improvements; and
(b) Landlord agrees to construct the Leasehold Improvements in
accordance with the Construction Documents, provided Tenant has
complied with all the applicable provisions of this work letter
agreement and the Lease.
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3.02 If there are any changes in the Leasehold Improvements requested by,
or on behalf of, Tenant from the work as reflected in the approved
Construction Documents, each such change must receive the prior written
approval of Landlord, and Tenant shall bear the cost of all such changes.
3.03 Landlord shall have no obligation to commence construction of any work
in the Leased Premises until Landlord has submitted and Tenant has approved
and signed the Construction Documents.
3.04 Tenant shall be responsible for the installation of all security,
voice, data and telephone cabling and any costs in excess of the Estimate
provided in paragraph 2.01 above.
In the event that Landlord shall fail, for any cause, to complete the
Leasehold Improvements on or before November 1, 1996, Landlord shall not be
subject to any liability therefor nor shall such failure affect the validity
of the Lease and Tenant's obligations thereunder.
4. Lease Commencement Date.
4.01 Landlord shall notify Tenant when Substantial Completion has been
achieved, and thereafter the Lease Commencement Date shall be established as
set forth in the Lease. Notwithstanding anything to the contrary contained
in the Lease or this work letter agreement, the Lease Commencement Date shall
not be extended for any delay in Substantial Completion to the extent that
such delay is caused in whole or in part by any act or omission attributable
to Tenant, including without limitation:
(a) Tenant's request for any Extraordinary Tenant Improvements;
(b) Tenant's failure to furnish promptly information concerning
Tenant's requirements pertaining to construction of the Leasehold
Improvements or any other information requested by the Landlord's
architect as necessary or useful to prepare the initial drawings,
plans and specifications which are to comprise the Construction
Documents;
(c) Tenant's failure to approve and promptly sign the Construction
Documents; and
(d) Tenant's request for any changes in the Leasehold Improvements
from the work as reflected in the Construction Documents, if Tenant
has initiated such changes.
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4.02 In any event, Rent payable under the Lease shall not ▇▇▇▇▇ by reason
of any delay, expense or other burden arising out of or incurred in
connection with the design or construction of the Leasehold Improvements
to the extent that such delay, expense or other burden is caused in whole
or in part by any act or omission attributable to Tenant (including,
without limitation, the acts and omissions referred to in subparagraphs
(a) through (d) of paragraph 4.01 above).
5. Tenant's Access to Leased Premises.
5.01 Landlord, in its sole discretion, may permit Tenant and Tenant's
agents or independent contractors to enter the Leased Premises prior to
the scheduled Lease Commencement Date in order that Tenant may do other
work as may be required by Tenant to make the Leased Premises ready for
Tenant's use and occupancy. Such permission must be in writing prior to
entry. If Landlord permits such prior entry, then such license shall be
subject to the condition that Tenant and Tenant's agents, contractors,
workmen, mechanics, suppliers, and invitees shall work in harmony and not
interfere with Landlord and its agents and contractors in doing its work
in the Leased Premises or the Building or with other tenants and
occupants of the Building or the Project. If at any time such entry
shall cause or threaten to cause disharmony or interference, Landlord, in
its sole discretion, shall have the right to withdraw and cancel such
license upon notice to Tenant. Tenant agrees that any such entry into
the Leased Premises shall be deemed to be under all of the terms,
covenants, conditions and provisions of the Lease, except as to the
covenant to pay periodic Rent. Tenant further agrees that, to the extent
permitted by law, Landlord and its principals shall not be liable in any
way for any injury or death to any person or persons, loss or damage to
any of the Leasehold Improvements or installations made in the Leased
Premises or loss or damage to property placed therein or there about, the
same being at Tenant's sole risk.
5.02 In addition to any other conditions or limitations on such license
to enter the Leased Premises prior to the Lease Commencement Date, Tenant
expressly agrees that none of its agents, contractors, workmen,
mechanics, suppliers or invitees shall enter the Leased Premises prior to
the Lease Commencement Date unless and until each of them shall furnish
Landlord with satisfactory evidence of insurance coverage, financial
responsibility and appropriate written releases of mechanics' or
materialmen's lien claims.
6. Miscellaneous Provisions. Landlord and Tenant further agree as
follows:
6.01 Except as herein expressly set forth with respect to the Leasehold
Improvements, Landlord has no agreement with Tenant and has no obligation
to do any work with respect to the Leased
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Premises. Any other work in the Leased Premises which may be permitted
by Landlord pursuant to the terms and conditions of the Lease, including
any alterations or improvements as contemplated by paragraph 11 of the
Lease, shall be done at Tenant's sole cost and expense and in accordance
with the terms and conditions of the Lease.
6.02 This work letter agreement shall not be deemed applicable to: (a)
any additional space added to the original Leased Premises at any time,
whether by the exercise of any options under the Lease or otherwise, or
(b) any portion of the original Leased Premises or any additions thereto
in the event of a renewal or extension of the original Lease Term,
whether by the exercise of any options under the Lease or any amendment
or supplement thereto. The construction of any additions or improvements
to the Leased Premises not contemplated by this work letter agreement
shall be effected pursuant to a separate work letter agreement, in the
form then being used by Landlord and specifically addressed to the
allocation of costs relating to such construction.
6.03 Any person signing this work letter agreement on behalf of Tenant
warrants and represents he has authority to do so.
6.04 This work letter agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, legal
representatives, successors and assigns.
6.05 Anything in the Lease to the contrary notwithstanding, notices and
other items to be delivered pursuant to this work letter agreement shall
be effective upon receipt of same by the party to whom such notice or
item is directed.
If the foregoing correctly sets forth our understanding, kindly acknowledge
your approval in the space provided below for that purpose and return to us two
(2) signed counterparts of this work letter agreement.
Very truly yours,
By
---------------------------
Authorized Signatory
By
---------------------------
Authorized Signatory
AGREED TO AND ACCEPTED this 9th day of August ,1996.
Randers Engineering, Inc.
------------------------------
a Michigan corporation
By ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------
Its President
--------------------------
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SCHEDULE 7
CERTIFICATE OF ACCEPTANCE
TENANT ________________________________________________________
LOCATION ________________________________________________________
This letter is to certify that based on a visual inspection:
1. The above-referenced space has been accepted by the Tenant for
possession.
2. The subject space is substantially complete in accordance with the
plans and specifications used in constructing the demised premises.
3. The subject space can now be used for intended purposes.
The execution of this certificate shall not relieve the Landlord of its
obligation to expeditiously complete all work in which the Tenant is entitled
under the terms of its lease with the Landlord. Neither this certificate, nor
Tenant's occupancy of the premises, shall be construed to relieve the Landlord
of its responsibility to remedy, correct, replace, reconstruct or repair any
deviation, deficiency or defect in the work or in the materials or equipment
furnished by the Landlord, without cost to Tenant, if a claim with respect
thereto is made by Tenant.
Commencement Date ______________________________________, 19____.
Expiration Date ________________________________________, 19____.
Executed this _______ day of____________________________, 19____.
TENANT:
______________________________
By:___________________________
Authorized Signature
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SCHEDULE 8
SCHEDULE OF RENTAL PAYMENTS
BASE RENT SCHEDULE
Rental Rate
-----------
Lease Year Per Sq. Ft. Annual Rent Monthly Rent
---------- ----------- ----------- ------------
Year 1 $18.00 $90,000.00 $7,500.00
Year 2 $18.36 $91,800.00 $7,650.00
Year 3 $18.91 $94,550.00 $7,879.17
Year 4 $19.67 $98,350.00 $8,195.83
Year 5 $20.45 $102,250.00 $8,520.83
Additional Rent
The Base Rent Schedule set forth above is based upon a Tenant Improvement
Allowance of $15.25 per usable square foot under this Lease ($76,250.00 total).
Landlord agrees to provide up to $18.25 per usable square foot ($91,250.00
total) as a Tenant Improvement Allowance, provided, however, that the Base Rent
set forth above will be adjusted to allow Landlord to recover the additional
$3.00 Tenant Improvement Allowance (or any part thereof) over the initial term
of the Lease, plus interest at the rate of ten percent (10%) per annum on said
increased amount. The Landlord and Tenant agree to execute an addendum to this
Lease to reflect the change in Base Rent, if any, at such time as the cost of
the Tenant Improvements is known and the rental adjustment calculation can be
made.
Tenant Electricity Charges
Electricity charges have been incorporated into the Base Rent Schedule.
Electricity for extraordinary computer usage or other special uses requiring
excessive electrical power shall be separately metered and paid for by the
Tenant.
Operating Expenses
All operating expenses and taxes are the obligation of the Landlord except
for Tenant's electricity as noted above.
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