Document:

exv10w1

 

Exhibit 10.1

CONSULTING AND NON-COMPETITION AGREEMENT

     THIS AGREEMENT is made and entered into this 24th day of September, 2004,
by and between COMMERCIAL METALS COMPANY, a Delaware corporation with offices
at 6565 N. MacArthur Boulevard, Suite 800, Irving, Texas 75039 (“Company”) and
HARRY J. HEINKELE, an individual with a residential address of 804 Loch Lomond
Drive, Arlington, Texas 76012 (“Heinkele”).

     WHEREAS, Heinkele has been employed by the Company for over 24 years, is
currently President of the Secondary Metals Processing Division (“SMPD”) and
will be retiring from employment with the Company effective with the close of
business on September 30, 2004; and

     WHEREAS, commencing October 1, 2004, the Company desires to secure the
services of Heinkele as a consultant on a part-time basis to provide
assistance and consultation with respect to the operations of SMPD and, by
mutual agreement, other segments of the Company; and

     WHEREAS, Heinkele desires to perform such consultation for the Company
following termination of his employment, all on the terms and conditions as
hereinafter set forth;

     NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

     1. Status and Duties of Heinkele as a Consultant.

	 	A.	 	Effective October 1, 2004, Heinkele shall from
time to time upon the request of the Chief Executive Officer
of the Company or the President of SMPD and, subject to the
terms hereof, render assistance and advice to the Chief
Executive Officer of the Company or the President of SMPD as a
consultant. Heinkele’s consulting duties shall include, but
shall not be limited to, giving advice concerning SMPD
organization, acquisitions, dispositions, interviewing key
employees for hiring or promotional opportunities, strategy or
other managerial questions or concerns that may arise from
time to time. With the mutual consent of both parties,
Heinkele’s consulting duties may include similar tasks with
divisions or segments of the Company other than SMPD.
	 
	 	B.	 	Heinkele shall perform such duties at his
residence, the Company’s office at the address set forth
above, or at such other place or places as Company and
Heinkele may, by mutual agreement, deem appropriate. Heinkele
shall not be considered an employee of the Company for any
reason, it being the parties’ intent that Heinkele be at all
times for the duration of this Agreement an independent
contractor.

 

 

	 	C.	 	Heinkele shall be available to perform services
under this Agreement from an aggregate of not more than three
(3) days per month on such dates and at times reasonably
acceptable to both parties. However, it is understood that
Heinkele will do his utmost to assist the President of SMPD,
and Heinkele will make himself available for meetings, phone
or email communications whenever practical.

     2. Compensation.

	 	A.	 	As compensation for rendering consulting
services hereunder, the Company shall pay Heinkele a fee
of One Hundred Twenty Thousand ($120,000.00) per year,
each year’s compensation to be paid in twelve equal
monthly installments, the first installment of Ten
Thousand Dollars ($10,000.00) to be paid on October 1,
2004, and each succeeding installment becoming due and
payable on the first day of each calendar month for the
duration of this Agreement.
	 
	 	B.	 	Heinkele shall be reimbursed for all
reasonable expenses including out-of-pocket travel and
living expenses incurred while traveling further than 50
miles distance from the residence address above in
connection with the performance of services under this
Agreement. The Company shall promptly reimburse Heinkele
for such reasonable expenses after receipt of
documentation from Heinkele as required by the Company’s
policy as it may exist from time to time for expense
reporting and accounting.
	 
	 	C.	 	In the event of the death of Heinkele or
disability which renders Heinkele unable to perform any
duties for more than sixty (60) consecutive days during
the term of this Agreement, the obligation of the Company
to pay the consulting fee shall terminate effective with
the payment due the first of the month following the date
of death or the sixty first day of disability.

     3. Term of Consulting Period.

	 	A.	 	The term of the consulting period shall
commence October 1, 2004 and shall continue for
twenty-four (24) months, ending September 30, 2006, unless
earlier terminated for cause as hereinafter set forth.

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	 	B.	 	The Company may terminate Heinkele for cause
at any time, and from that date forward no further
obligations shall exist on the part of Company to
Heinkele. Termination for cause shall mean termination
based on the following events or conditions of which the
Company has reasonably persuasive evidence:

	 	1.	 	Overt and willful disobedience of
orders or directives issued to Heinkele and within
the scope of Heinkele’s duties to the Company.
	 
	 	2.	 	Conviction of Heinkele of the
commission of deliberate, illegal acts in connection
with the performance of duties under this Agreement.
	 
	 	3.	 	Violation by Heinkele of the
Company’s rules and policies concerning business
conduct, conflicts of interest, or the
non-competition or confidentiality obligations of
this Agreement.
	 
	 	4.	 	The immoderate use of alcoholic
drinks or illegal narcotics which renders Heinkele
incapable of performing services to a normal extent.

     4. Non-Competition Agreement.

	 	A.	 	In consideration of the payments to be made
by the Company to Heinkele under this Agreement, Heinkele
agrees and covenants with the Company that during the
duration of the consulting term, any renewals or
extensions thereof, and for a period of twelve months
following the termination of this Agreement for any reason
(including normal expiration after twenty four months or
termination for cause), Heinkele will not either, directly
or indirectly, (i) provide any individual, corporation
(including any non-profit corporation), general or limited
partnership, limited liability company, joint venture,
estate, trust, association, organization, labor union,
governmental or quasi-governmental authority of any
nature, or other entity (collectively, a “Person”) who is
engaged in or is considering engaging in the purchase,
processing or sale of Restricted Products as herein
defined, any consulting services or advice, or (ii) own,
manage, operate, join, control or participate in the
ownership, management, operation or control of, or be
employed by any Person who is engaged in or is
considering engaging in the purchase, processing or sale
of Restricted Products. Restricted Products means any
metal products or materials including all forms of ferrous
and non-

3

 

	 	 	 	ferrous scrap metals or other used or scrap metal
materials purchased, processed, sold or brokered by SMPD
during the period of Heinkele’s employment with the
Company as President of SMPD or during the term of this
Agreement. This restriction shall apply to those
activities of Heinkele described in (i) or (ii) above on
behalf of any Person who is engaged in or is considering
engaging in the purchase, processing or sale of
Restricted Products within in the United States as well
as any Person located outside of the United States who
purchases or sells Restricted Products for import to or
export from the United States.
	 
	 	B.	 	Notwithstanding the foregoing restrictions,
nothing in this Agreement and this covenant not to compete
shall be construed to restrict or prohibit ownership by
Heinkele of stock of any company in competition with the
Company listed on the New York or American Stock Exchanges
or traded as a NASDAQ National Market Issue provided
Heinkele’s combined ownership interest is not five (5)
percent or more of the outstanding voting shares of the
company.
	 
	 	C.	 	The Company and Heinkele agree that in the
case of a breach by Heinkele of any of the foregoing
covenants, damages would be difficult, if not impossible,
to prove, and the Company shall be entitled to injunctive
relief as its primary but not exclusive remedy against
Heinkele. If Heinkele is found to have violated any of
the foregoing covenants, the parties agree that the
duration of the non-competition period set forth above
shall be automatically extended by the same period of time
that Heinkele is determined to be in violation of the
foregoing covenants. The parties hereby further agree
that the restrictions and obligations herein set forth
including the duration of the non-competition obligation
and territory covered by the obligations are reasonable in
view of the substantial compensation being paid Heinkele
under this Agreement, the nationwide reach of the
Company’s operations and the worldwide sales and
purchasing activities of the Company over the 24 years
Heinkele was employed by the Company. If any of the
foregoing restrictions should be finally determined by any
court to be unenforceable in any particular area or
jurisdiction or enforceable in such area or jurisdiction
only if modified in duration or scope, then the parties
agree that this Agreement shall be amended and modified so
as to eliminate there from the particular area or
jurisdiction as to which such restriction is so held to be
unenforceable or deemed amended or modified in duration or
scope to comply with such court order; and as to all other
areas and jurisdictions and terms

4

 

	 	 	 	and provisions hereof shall remain in full force and
effect as originally written. The provisions of this
paragraph and the rights and remedies to enforce such
provisions shall be assignable in favor of any successor
of the Company.

     5. Confidentiality.

	 	A.	 	Heinkele acknowledges that he has occupied a
position of trust and confidence with the Company as a key
employee of over 24 years and during that period and during
the performance of his duties under this Agreement, has had
and will have the opportunity to become familiar with the
following, any and all of which constitute confidential
information of the Company (collectively, “Confidential
Information”): (i) any and all trade secrets and proprietary
technology concerning the business and affairs of the Company,
product pricing, contract terms, hedging practices, data,
know-how, formulae, compositions, processes, samples,
inventions and ideas, past, current and planned product
development, supplier lists, customer lists, current and
anticipated customer requirements, price lists, market
studies, marketing plans and strategies, supply or sourcing
information, business plans and computer software and programs
of the Company and any other information, whether or not
documented in any manner, of the Company that is a trade
secret within the meaning of applicable trade secret law; (ii)
any and all information concerning the businesses and affairs
of the Company (which includes historical financial
statements, financial projections and budgets, historical and
projected sales, capital spending budgets and plans, new
product development information, supplier or customer
information, the names and backgrounds of key personnel,
personnel training and techniques and materials), however
documented; and (iii) any and all notes, analyses,
compilations, studies, summaries, and other material prepared
by or for the Company containing or based, in whole or in
part, on any information included in the foregoing.
	 
	 	B.	 	Heinkele acknowledges and agrees that all
Confidential Information known or obtained by Heinkele,
whether before or after the date hereof, is the property of
the Company. Therefore, Heinkele agrees that he shall not, at
any time, other than as may be required and permitted by the
Company in the course and scope of the consulting services to
be provided under this Agreement, use or disclose to any
unauthorized Person or use for his own account or for the
benefit of any third party any Confidential Information,
whether Heinkele has such information in his memory or
embodied in writing or other physical form, without the
Company’s prior written consent, unless and to the extent that
the Confidential

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	 	 	 	Information is or becomes generally known to and available
for use by the public other than as a result of the
Heinkele’s actions or the actions of any other Person bound
by a duty of confidentiality to the Company or one of its
affiliates. If Heinkele becomes legally compelled by
deposition, subpoena or other court or governmental action to
disclose any of the Confidential Information, then Heinkele
will give the Company prompt notice to that effect, and will
cooperate with the Company if the Company seeks to obtain a
protective order concerning the Confidential Information.
Heinkele will disclose only such Confidential Information as
his counsel shall advise is legally required. Heinkele
agrees to deliver to the Company, at any time the Company may
request, all documents, memoranda, notes, plans, records,
reports, and other documentation, models, components,
devices, or computer software, whether embodied in a disk or
in other form (and all copies of all of the foregoing),
relating to the businesses, operations, or affairs of the
Company or any of its affiliates and any other Confidential
Information that Heinkele may then possess or have under his
control.

     6. Notices.

     Any notice required to be given pursuant to this Agreement shall be in
writing and shall be deemed given upon receipt if delivered by hand or if sent
by mail (registered or certified mail, postage prepaid, return receipt
requested) or on the next business day following the day of timely deposit for
next day delivery if sent by a recognized overnight delivery service addressed
to the respective address shown above.

     7. Modification.

     This Agreement may be modified only by the written consent of both of the
parties hereto.

[Signature Page Follows]

6

 

     EXECUTED the day and year first above written.

	 	 	 	 	 
	 	COMMERCIAL METALS COMPANY

 	 
	 	By:  	/s/ Stanley A. Rabin
 	 
	 	 	STANLEY A. RABIN 	 
	 	 	President and
Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	HARRY J. HEINKELE

 	 
	 	By:  	/s/ H. J. Heinkele
 	 
	 	 	 	 
	 	 	 	 
	 

7EX-10.1 LEASE AGREEMENT DATED SEPTEMBER 24, 2004

 

EXHIBIT 10.1

LEASE AGREEMENT FOR OFFICE SPACE and other premises subject to section 7:230a
of the Dutch Civil Code (ROZ)

in short: reference is made to the model contract laid down by the Council for
Real Estate Matters in July 2003.

The undersigned:

TUG Vastgoed B.V., with its offices at Wimbledonpark 251, 1185 XJ Amstelveen,
hereby duly represented by Mr Majer Tugendhaft,

hereinafter referred to as "Lessor”,

and

Biogen Idec B.V., with its offices at Robijnlaan 8, 2132 WX Hoofddorp,
registered in the Commercial Register in Amsterdam under file number 33193965,
hereby duly represented by Mr Tim Kelly,

hereinafter referred to as "Lessee”,

have agreed to the following:

Property, purpose

	1.1.	 	Lessor lets to Lessee and Lessee leases from Lessor a total lettable
floor area of approx. 9,015 sq.m. office space and warehouse space, as
well as 140 parking spaces (see article 8.1 of this lease agreement (the
"Lease Agreement”), hereinafter referred to as “the Leased Space”, locally
known as office building “Palmcourt”, Tokyostraat 27-33 in Lijnden,
recorded in the Land Register as Municipality Haarlemmermeer, section H,
number 10372, further indicated on the drawing of the Leased Space (see
appendix 1) and a statement of completion (“proces verbaal”) concerning
delivery, in which statement it is indicated which installations and other
facilities do and which installations and other facilities do not form a
part of the Leased Space and in which a description of the state of the
Leased Space is given, eventually supplemented with photographs, which
form a part of this agreement, attached to this deed and certified by the
parties. Reference is made to the last sentence of article 8.3 of this
Lease Agreement.
	 
	1.2.	 	The Leased Space may be used exclusively by or on behalf of Lessee as
office space, warehouse space and parking spaces respectively.
	 
	1.3.	 	Lessee is not allowed to put the Leased Space to any other use than that
described in 1.2 without the prior written permission of Lessor.
	 
	1.4.	 	The highest permissible load on the floors of the Leased Space is

 

 

	•	 	for the warehouse space: 1.500 kg per sq.m.
	 
	•	 	for the office space: 400 kg per sq.m.

Conditions

	2.1.	 	The general conditions for the leasing of office premises and other
business premises subject to section 7:230a of the Dutch Civil Code,
deposited at the office of the District Court of The Hague on 11 July 2003
and registered under number 72/2003, hereinafter referred to as the
“General Conditions”, form part of this Lease Agreement (see appendix 2).
The parties are fully informed of these General Conditions. Lessor and
Lessee have received a copy of these General Conditions.
	 
	2.2.	 	The General Conditions referred to in 2.1 are applicable except in so far
as the conditions as mentioned below expressly deviate from them or
applicability in relation to the Leased Space is not possible.

Duration, extension and termination

	3.1.	 	This Lease Agreement is entered into for the period of 10 years,
commencing on 1 September 2004 and consequently ending on 31 August 2014.
	 
	3.2.	 	Following the expiry of the period referred to in 3.1, this lease –
unless notice is given by Lessee – will be extended for a contiguous
period of 5 years, that is up to and including 31 August 2019.
	 
	3.3.	 	Termination of this Lease Agreement will take place by giving notice as
from the expiry date of a lease period, therefore as per 31 August 2014 or
as per 31 August 2019, but with observance of article 3.2 and with due
observance of a period of notice of at least 18 months.
	 
	3.4.	 	Termination of this Lease Agreement may only occur by means of a writ or
by registered letter.

Payment obligations, period of payment

	4.1.	 	The initial rent of the Leased Space (Tokyostraat 27-29, Tokyostraat
31-33 (both including parking spaces) and atrium) amounts to an annual sum
of € 1,200,000 (in words: one million two hundred thousand euros).
	 
	4.2.	 	The parties agreed that Lessor will charge Lessee VAT on the rent.
	 
	 	 	If it is agreed upon that VAT will not be charged on the rent, Lessee
is due to pay in addition to the rent a separate compensation to
Lessor, thus that Lessor respectively its successor(s) in title will
be entirely compensated for damages resulting from the fact that VAT
on Lessor’s investments and costs operation of the Leased Space will
not or no longer be deductible. That stated in 19.1 up to and
including 19.9 General Conditions does not apply in such case.

 

 

	4.3.	 	If it has been agreed that VAT will be charged on the rent it is agreed –
with reference to directive VB99/571 of the State Secretary of Finance
dated 24 March 1999 – that Lessor and Lessee will not submit a joined
request opting for a taxed lease. By signing this Lease Agreement Lessee
explicitly declares – also for the benefit of Lessor’s successor(s) in
title – that Lessee uses and will continue to use (or have used) the
Leased Space for purposes which are entirely or practically entirely
subject to the right of deduction of VAT under article 15 of the Act of
The Netherlands on Value Added Tax 1968.
	 
	4.4.	 	Lessee’s financial year runs from 1 January up to and including 31
December.
	 
	4.5.	 	The rent will be adjusted annually on 1 January, for the first time on 1
January 2006 and so on in accordance with 9.1 up to and including 9.4 of
the General Conditions.
	 
	4.6.	 	The payment for additional supplies and services to be provided by Lessor
will be determined in accordance with 16 of the General Conditions. A
system of advance payments with settlement at a later date will be applied
to this payment, as stipulated in the General Conditions.
	 
	4.7.1.	 	Lessee’s payment obligation consists of:
	 
	 	 	•     the rent;
	 
	 	 	•     the VAT due on the rent in case parties have agreed upon a taxed lease;
	 
		 	•     the advance payment for additional supplies and services and the VAT thereon.
	 
	4.7.2.	 	If the lease may no longer be a taxed lease – where parties had agreed
upon a taxed lease – Lessee is no longer obliged to pay VAT on the rent.
In such case the amounts of compensation referred to in 19.3.a of the
General Conditions apply and will replace the VAT and the compensation as
referred to in 19.3.a under I is assessed at to be discussed at such
moment by the parties.
	 
	4.8.	 	For each term of payment of 3 calendar months, the following amounts
apply on commencement of the lease with respect to Tokyostraat 27-29,
Tokyostraat 31-33 (both including parking spaces) and atrium:

	 	 	 	 	 	 	 
	

	•
	 	 	the rent
	 	€ 300,000.00
	

	•
	 	 	the VAT due on the rent
	 	€ 57,000.00
	

	•
	 	 	the advance payment for additional supplies and
services rendered by or on behalf of Lessor and the
VAT due thereon
	 	€ 26,819.63
	

	 	 	 	 	 	
 
	

	Total amount
	 	€ 383,819.63

	 	 	(in words: three hundred eighty three thousand eight hundred nineteen
euros and sixty three eurocents).
	 
	4.9.	 	With a view to the date of commencement of this lease, the first term of
payment relates to the period from 1 September 2004 up to and including 31
December 2004 and the amount payable for this period is € 44,694.42 (in
words: forty four thousand six

 

 

	 	 	hundred ninety four euros and forty two
eurocents) (see article 8.7 and 8.10 of this Lease Agreement). This amount
is inclusive of VAT, also where it concerns VAT on the rent, but only if
Lessee owes VAT on the rent. Lessee will pay this amount before or on 1
September 2004.
	 
	4.10.	 	The payments to be made by Lessee to Lessor under this Lease Agreement
will be due in a lump sum in advance, in successive terms of payment as
referred to in 4.8 and must have been made in full before or on the first
day of the period to which the payments apply.
	 
	4.11.	 	Unless mentioned otherwise, all amounts mentioned in this Lease
Agreement, and the General Conditions forming a part thereof, are
exclusive of VAT.

Supplies and services

	5.1.	 	The parties agree that the following additional supplies and services
will be provided by or on behalf of Lessor:

	•	 	heat supplies by means of central heating
	 
	•	 	water supply inclusive standing charge
	 
	•	 	maintenance and periodic control of the heating and cooling installations
	 
	•	 	maintenance and periodic control for fire detection and security
	 
	•	 	maintenance and periodic control for lift installations
	 
	•	 	maintenance and periodic control for automatic barrier car park
	 
	•	 	maintenance of garden, atrium and outside area
	 
	•	 	cleaning costs of the common areas, glazing (indoor and
outdoor), terraces, parking places and/or grounds
	 
	•	 	insurance premium external glazing
	 
	•	 	administration costs of 5% on the above-mentioned supplies and services

Bank guarantee

	6.	 	Not applicable (see article 8.9 of this Lease Agreement).

Property management

	7.1.	 	Until Lessor announces otherwise, the management of the property will be
carried out by Lessor.
	 
	7.2.	 	Unless agreed in writing otherwise, Lessee will consult the manager on
the contents of and all matters relating to this Lease Agreement.

Special conditions

	8.1	 	The Leased Space
	 
	 	 	Parties note that the numbers of the building wings as set out in the
rent proposal signed by both parties and dated 19 July 2004, were not
correct. Parties

 

 

	 	 	acknowledge the correctness of the numbers of the
buildings as set out in this Lease Agreement.
	 
	 	 	Parties agree that the Leased Space as mentioned in article 1.1
consists of:

	 	 	Tokyostraat 31-33:

	 	 	 
	Office space:
	 	 
	Ground floor:

	 	416.6 sq.m.
	1st floor :

	 	375.6 sq.m.
	2nd floor :

	 	394.1 sq.m.
	3rd floor :

	 	405.2 sq.m.
	 
	Total :

	 	1,591.5 sq.m.
	 
	Warehouse space:
	 	 
	Ground floor:

	 	2,168.1 sq.m.
	1st floor :

	 	151.9 sq.m.
	 
	Total :

	 	2,320.0 sq.m.

	 	 	70 parking spaces, of which 58 on the roof of the building and 12 on
the parking area in front of the building. The parking spaces located
at the roof are closed off by an entrance security system.
	 
	 	 	Tokyostraat 27-29:

	 	 	 
	Office space:
	 	 
	Ground floor:

	 	373.8 sq.m.
	1st floor :

	 	477.7 sq.m.
	2nd floor :

	 	466.5 sq.m.
	3rd floor :

	 	390.2 sq.m.
	 
	Total :

	 	1,708.2 sq.m.
	 
	Warehouse space:
	 	 
	Ground floor :

	 	2,140.4 sq.m.
	1st floor :

	 	370.6 sq.m.
	 
	Total :

	 	2,511.0 sq.m.

	 	 	70 parking spaces, of which 58 on the roof of the building and 12 on
the parking area in front of the building. The parking spaces located
at the roof are closed off by an entrance security system.
	 
	 	 	Atrium:
	 
	 	 	A total of approx. 884 sq.m. located on the 1st, 2nd, and 3rd floor.
	 
	 	 	Parties are aware that due to the fitting-out works of Lessee
regarding the atrium (see

 

 

	 	 	article 8.8 of this Lease Agreement) the
lettable floor area, as mentioned hereabove, will increase.
	 
	 	 	After the aforementioned works regarding the atrium have been carried
out by Lessee the lettable floor area will be calculated in accordance
with a new NEN 2580 measurement report for lettable floor area. Lessor
will provide Lessee with a copy of this measurement report. The
measurement report will be drawn up by an independent company which
will be chosen by Lessor. Parties agree that the actual size resulting
from the aforementioned measurement report will have no influence on
the rental price, as described in this Lease Agreement, and therefore
the rent will not be amended.
	 
	8.2.	 	State of delivery at commencement of this Lease
Agreement

Lessor and Lessee agree that the office space and warehouse space
located in Tokyostraat 27-29 and Tokyostraat 31-33 will be delivered
in the current state, well known to both parties, and according to the
enclosed technical specifications (see appendix 3). The current
fitting-out works (partitioning, carpeting, blinds, kitchen) of Lessor
will stay within the office space in Tokyostraat 27-29 with the
exception that Lessor will remove the security system and the
furniture. The racks within the warehouse space in Tokyostraat 27-29
will be removed by Lessor. The existing firewall will remain in the
warehouse space in Tokyostraat 27-29.
	 
	8.3	 	Access to the Leased Space:
	 	 	Lessee and Lessor agree that Lessee will obtain access to (parts of)
the Leased Space in compliance with the dates mentioned below:

	1)	 	Lessee gains access to Tokyostraat 31-33 from 1
September 2004, or so much earlier or later as parties agree, in
order to carry out its fitting-out works, under the condition
that Lessee has signed the original Lease Agreement, the first
rental payment has been paid and the parent company guarantee by
Biogen Idec Inc has been issued.
	 
	2)	 	Lessee gains access to the warehouse space in
Tokyostraat 27-29, 10 months after Lessee has obtained the final
approval from its Managing Board (“directie”)(see article 8.22 of
this Lease Agreement), and Lessor has been notified hereof in
writing, or so much earlier or later as parties agree.
	 
	3)	 	Lessee gains access to the office space in Tokyostraat
27-29, 14 months after Lessee has obtained the final approval
from its Managing Board (“directie”) (see article 8.22 of this
Lease Agreement), and Lessor has been notified hereof in writing,
or so much earlier or later as parties agree.

	 	 	When Lessee gains access to a (part of a) building, as set out
under 1) to 3) hereabove, a separate statement of delivery will be
drawn up regarding the respective (part of the) building. Each of
these statements of delivery will be attached to this Lease Agreement
(see appendix 4).
	 
	8.4	 	Termination Lease Agreement
	 	 	In addition to article 3.3 of this Lease Agreement parties agree that
only Lessee can give notice to terminate this Lease Agreement as per
the end of the first period of 10 years, consequently as per 31 August
2014. After a period of 15 years both parties can terminate this Lease
Agreement. Everything with observance of article 3.3.

 

 

	8.5	 	Re-instatement on termination of this Lease Agreement

A delivery report will be made at the beginning of this Lease
Agreement which report will be signed by both parties. At the end of
this Lease Agreement Lessee is entitled to leave behind the office
space in Tokyostraat 27-29, Tokyostraat 31-33 and the atrium
including the fitting-out works (partition walls, carpeting, data
network, blinds, security system and kitchen).
	 
	 	 	The aforementioned fitting-out works in the office space and the
atrium should be delivered free of damages except for normal wear and
tear. On termination of this Lease Agreement Lessee is entitled, but
not obliged to remove the alterations carried out by it within the
office space and the atrium during the lease period with Lessor’s
consent. In case Lessee decides to leave behind those fitting-out
works, Lessor and Lessee agree, that Lessee will not receive any
compensation from Lessor for this, unless Lessor and Lessee agree
differently.
	 
	 	 	Lessee will have the obligation to remove the fitting out works
regarding the warehouse space at the end of this Lease Agreement.
	 
	8.6	 	Intended use

In addition to articles 1.2 and 1.3 of this Lease Agreement, Lessor
guarantees that the destination of the building is in accordance with
the enclosed zoning plan (see appendix 5). Lessee will be responsible
for obtaining the required licences and permits with respect to the
Leased Space.
	 
	 	 	Lessor is aware that Lessee intends to use the warehouse space for
pharmaceutical
packaging, however Lessor does not guarantee that this specific use is
in accordance with the current zoning plan.
	 
	8.7	 	Composition of the rent

In deviation of articles 4.8 and 4.9 of this Lease Agreement, parties
agree that the rent will be composed as set out below:

	1)	 	From 1 October 2004 up to and including 31 December
2004, Lessee will pay to Lessor an amount of € 121,400 (in words:
one hundred twenty one thousand four hundred euros) per annum.
This rent is based on approx. 865 square meters office space
located on the 2nd and 3rd floor (including an equal share of the
common area), plus the temporary use of the IT-room located on
the 1st floor and 20 parking spaces regarding Tokyostraat 31-33.
For the period from 1 September 2004 up to and including 30
September 2004 Lessee only owes to Lessor the costs for supplies
and services with respect to the lease of the aforementioned
office space and parking spaces.
	 
	2)	 	From 1 January 2005 until the moment that the warehouse
space in Tokyostraat 27-29 will be delivered by Lessor to Lessee,
Lessee will pay to Lessor a rent of € 520,000 (in words: five
hundred twenty thousand euros) per annum. This rent is based on
the entire building Tokyostraat 31-33; warehouse space/office
space plus parking spaces.
	 
	3)	 	From the date of delivery of the warehouse space in
Tokyostraat 27-29 to Lessee (see article 8.3 of this Lease
Agreement) until the delivery of the entire building Tokyostraat
27-29, Lessee will pay to Lessor a rent of € 745,000 (in words:
seven

 

 

	 	 	hundred forty five thousand euros) per annum. This rent is
based on the entire building Tokyostraat 31-33 and the warehouse
space in Tokyostraat 27-29.
	 
	4)	 	From the date of delivery of the office space in
Tokyostraat 27-29 and the atrium belonging to it by Lessor to
Lessee (see article 8.3 of this Lease Agreement), Lessee will pay
to Lessor the rent as mentioned in article 4.8 of this Lease
Agreement) amounting to € 1,200,000 (in words: one million two
hundred thousand euros) per annum and in compliance with article
4.5 of this Lease Agreement.

	8.8	 	Financial incentives
	 	 	It is known to Lessor that Lessee wishes to renovate the Leased Space
in order to make it suitable for the intended use by Lessee. As far as
the office space is concerned, Lessee is entitled to carry out
fitting-out works, but only as far as the structure of the Leased
Space will not be affected.
	 
	 	 	Drawings and other documents in relation to these alterations will be
submitted by Lessee to Lessor for approval, which approval can not be
unheld on unreasonable grounds. After Lessor has approved the final
drawings and documents these documents will be added as an appendix to
this Lease Agreement (see appendix 6).
	 
	 	 	Lessee is entitled to hire an architect of its own choice in relation
to the carrying out of Lessee’s fitting-out works. Lessor will pay to
the architect a coordination fee with respect to the fitting-out works
of the office space with a maximum of € 130,000 (in words: one hundred
thirty thousand euros). An eventual coordination fee for an
architect regarding fitting-out works in the warehouse space will be
paid by Lessee.
	 
	 	 	In order to enable Lessee to carry out the above mentioned fitting-out
works, Lessee and Lessor agree that Lessor pays to Lessee an amount of
€ 1,300,000 (in words: one million three hundred thousand euros).
Payment by Lessor to Lessee will take place in 4 equal instalments and
within 30 days after Lessor has received an invoice from Lessee by
registered mail. The first instalment is due by the date on which the
carrying out of the fitting-out works has started.
	 
	 	 	All additional works/costs above the amount of € 1,300,000 (in words:
one million three hundred thousand euros) will be at the expense of
Lessee.
	 
	 	 	In case the total costs regarding the abovementioned fitting-out works
will be lower than the aforementioned amount of € 1,300,000 (in
words: one million three hundred thousand euros) Lessee is obliged to
use the remaining amount for building related investments such as the
installation of air-conditioning, additional toilet groups, additional
showers, restaurant facilities, etc.
	 
	 	 	After the fitting-out works will have been carried out, Lessor is
entitled to check the invoices in relation to the aforementioned
fitting-out works. If Lessor wishes such control, this control will
take place during a meeting of Lessor and Lessee.
	 
	8.9	 	Guarantee Biogen Idec Inc
	 	 	In addition to article 6 of this Lease Agreement, Lessee and Lessor
agree that Biogen

 

 

	 	 	Idec Inc (Lessee’s parent company) will issue a
parent company guarantee to Lessor in conformity with appendix 7 to
this Lease Agreement up to the amounts and in the way mentioned in
that document.
	 
	8.10	 	Supplies and services
	 	 	The advance payment for the supplies and services in relation to
approx. 865 sq.m. of office space, located on the 2nd and 3rd floor
(including an equal share of the common area) and the temporary use of
the IT room located on the 1st floor, as well as 20 parking spaces
regarding Tokyostraat 31-33, is due as of 1 September 2004. The
advance payment for the supplies and services as of the aforementioned
date has been set at € 25 (in words: twenty five euros) per sq.m. per
annum, until the moment Lessee has occupied the entire building. The
advance payment for the supplies and services is based on the supplies
and services as described in article 5 of this Lease Agreement,
including Lessee’s own consumption of gas, heating and electricity.
The advance payment for the supplies and services with respect to the
other office space and warehouse space in Tokyostraat 31-33 are due as
of 1 January 2005.
	 
	 	 	The advance payment for the supplies and services with respect to the
office space and warehouse space in Tokyostraat 27-29 and the atrium
are due as of the moment these spaces will be delivered. Lessor and
Lessee agree that the aforementioned supplies and services (such as
cleaning and security) can be adjusted by mutual agreement.
	 
	 	 	From the moment Lessee rents the whole building, Lessee wishes to
carry out the additional supplies and services, which have been
carried out by or on behalf of Lessor until that moment, by itself or
on its behalf. Lessee is willing to keep Lessor informed on a regular
basis about the supplies and services carried out by or on behalf of
Lessee. Parties will discuss this matter and Lessor will not withhold
or delay his cooperation in relation hereto on unreasonable grounds.
	 
	8.11	 	Maintenance activities
	 	 	As far as applicable, Lessor will inform Lessee in advance in case
maintenance activities, resulting from the supplies and services and
this Lease Agreement, will be carried out at on behalf of Lessor.
	 
	8.12	 	Alterations to the Leased Space
	 	 	Apart from the fitting-out works to be carried out by Lessee at the
beginning of the lease, Lessee is allowed to carry out additions and
to the Leased Space after written approval from Lessor, which approval
will not be withheld unreasonably.
	 
	8.13	 	Air-conditioning
	 	 	Lessee is allowed to install additional air-conditioning in the office
space, if technically possible, and after written approval from
Lessor, which approval will not be withheld unreasonably.
Installation, maintenance and removal will be at the expense of
Lessee. Lessee will be responsible for obtaining the required
licences. On termination of the lease Lessee is entitled, but not
obliged to remove the aforementioned air-conditioning from the Leased
Space. Damages occurred at the removal of the aforementioned
air-conditioning will be repaired by Lessee.

 

 

	8.14.	 	Rent review
	 	 	Without prejudice to a rent adjustment based on article 4.5 of this
Lease Agreement, each of the parties is entitled to desire adjustment
of the rent to the market value. Such adjustment may take effect for
the first time on 1 January 2015 and subsequently after a period of at
least five years after the most recent adjustment of rent to the
market value. Should a party wish to use such power it is to notify
the other party thereof by registered letter with notice of receipt,
ultimately twelve months prior to the date on which the adjusted rent
is to take effect.
	 
	 	 	Should the parties not reach an agreement on the adjustment of the
rent to the market value within two months of receipt of such
notification the rent is to be determined by three experts, unless
parties agree during this period of two months upon the appointment of
just one expert. On adjusting the rent the experts are to be
commissioned to take into account all that agreed between the parties
with regard to the Leased Space, as well as the circumstances
regarding the building, such as location, quality, size, building
layout as well as rental prices regarding comparable buildings as
agreed upon by parties or decided by the judge.
Of these three experts one is to be appointed by each of the parties
within fourteen days of one party receiving a request to do so from
the other party. An expert is to make known within eight days of the
date of the appointment whether or not he is to accept the
appointment.
	 
	 	 	The third expert is to be appointed by these two experts within eight
days of them both having accepted the appointment. In case of lack of
agreement between the experts about the rent to be fixed, the
judgement of the third expert will be decisive.
Should one of the parties remain in default regarding the appointment
of an expert or should the experts appointed by the parties fail to
come to an agreement regarding the appointment of the third expert,
the expert or experts is/are to be appointed at the request of the
most diligent party by the chairman of the Chamber of Commerce and
Industry of the area in which the Leased Space is situated. Each party
is to bear the costs of the expert appointed by it. The costs of the
third expert are to be halved between the two parties. The experts are
to bring out their report within six weeks after their appointment is
certain.
	 
	8.15	 	Subletting
	 
	 	 	Lessee has the right to sublet the whole or parts of the Leased Space
to companies affiliated to Lessee without approval from Lessor. Lessee
has the right to sublet the whole or parts of the Leased Space to
third parties, after having obtained written approval of Lessor, which
approval shall not be withheld unreasonably.
	 
	8.16	 	Access
	 	 	The Leased Space will be exclusively accessible for Lessee, 24 hours a
day and 7 days a week.
	 
	8.17	 	Netshare
	 	 	Lessee is aware that part of the warehouse located in Tokyostraat
31-33 is used by Netshare (see appendix 8). Netshare has its own
entrance and does not have access to the Leased Space of Lessee.

 

 

	8.18	 	Security system
	 	 	Lessor and Lessee will both use the current security system in the
building until the moment Lessor has entirely vacated Tokyostraat
27-29 and Lessee has occupied the entire building. As of that moment
Lessee is allowed to install its own security system for the entire
building and to control the access to the entire building. As of the
occupation by Lessee of Tokyostraat 31-33, Lessee is allowed to
install its own security system regarding this space.
	 
	8.19	 	Signage
	 	 	After written approval of Lessor, Lessee has the right to have signage
on the roof, in front or on the building, in accordance with the local
regulations as stated by the municipality of Haarlemmermeer. Lessee is
responsible for obtaining the required licenses required by the
(local) government. All costs related to the installation, maintenance
and removal of the aforementioned signage will be at the expense of
Lessee. Lessor will not charge rent to Lessee for the aforementioned
signage.
	 
	8.20	 	Approval SADC
	 	 	Lessee has received an approval from the Schiphol Airport Development
Corporation regarding the establishment of Lessee in the Leased Space.
A copy of the approval of SADC has been enclosed to this Lease
Agreement (see appendix 9).
	 
	8.21	 	Re-instatement current building of Lessee (Robijnlaan 8, Hoofddorp)
	 	 	Lessor and Lessee agree that in case the resolutive conditions as
described in articles 8.22 and 8.23 of this Lease Agreement are no
longer applicable, Lessee is allowed to deliver the leased space at
the end of the lease agreement in the then current state, including
the fitting-out works (partitioning, carpeting, data network etc.),
contrary to the special conditions of the lease agreement dated 3
March 1999 between Lessor and Lessee with respect to the office space
and warehouse space located on Robijnlaan 8 in Hoofddorp.
Lessor is familiar with the fact that Lessee has not obtained permits
in relation to the mezzanine floor constructed by Lessee and used by
its employees within that leased space, and that alterations to some
of the (partition) walls will be necessary in order to comply with the
fire code. Lessee will not be liable for any costs or claims resulting
from this mezzanine floor.
	 
	 	 	Lessee has the obligation to remove the HVAC sourcing unit, located in
the warehouse space.
	 
	8.22	 	Resolutive condition (1)
	 	 	Lessee is entitled to partially dissolve this Lease Agreement (in the
way described in article 8.24) if its Managing Board (“directie”)
will not have granted its approval to enter into this lease before 1
October 2004, on the terms and conditions as set out in this Lease
Agreement. In the last week of September 2004 (therefore as from 23
September) Lessor and Lessee will meet, during which meeting Lessee
will inform Lessor whether this approval will be obtained or not
before 1 October 2004. If Lessee will not obtain this approval prior
to 1 October 2004, the aforementioned period can be extended until 31
December 2004, at the exclusive judgement of Lessor. Lessee has to
notify Lessor by registered mail if it has obtained the definite
answer of the Managing Board.

 

 

	8.23	 	Resolutive condition(2)
	 	 	Lessee is also entitled to partially dissolve this Lease Agreement (in
the way described in article 8.24) if Lessee has not obtained all
required licences and exemptions necessary for conducting its business
within the Leased Space from the municipality of Haarlemmermeer
ultimately on 30 March 2005. Lessee has to inform Lessor prior to the
aforementioned date about its progress in obtaining these licences and
exemptions. Lessee will provide Lessor with the final drawings and
specifications for the fitting-out works ultimately on 30 September
2004 in order to obtain all required licences and exemptions.
In case this Lease Agreement will be partially dissolved by Lessee
under this paragraph after the commencement date of the lease period
and after Lessee has obtained the approval as set forth in article
8.22 for the entering into this Lease Agreement, Lessee has the
obligation to pay to Lessor a lumpsum payment amounting to € 1,250,000
(in words: one million two hundred fifty thousand euros). This amount
will be paid by Lessee to Lessor not later than 5 days after Lessee
has notified Lessor of its intention to partially terminate the lease.
	 
	8.24	 	Change in terms and conditions in case of partial dissolution
	 	 	If Lessee invokes a resolutive condition as set forth in articles 8.22
and 8.23 of this Lease Agreement, this Lease Agreement will partially
be dissolved. The Leased Space will then be reduced to approx. 1,174.9
sq.m. office space (including an equal share in the common areas),
located on the 1st, 2nd and 3rd floor of Tokyostraat 31-33, as well
as 35 parking spaces, as for this part of the Leased Space no approval
of Lessee’s Managing Board is required. Lessee will then also have the
right to occupy the 3rd floor of Tokyostraat 27-29, provided that
Lessee gives a three (3) months’ notice to Lessor regarding its wish
to occupy this floor. The exact lettable floor area will be calculated
in accordance with a NEN 2580 measurement report. The parties shall
appoint Aequo in Rotterdam, an independent expert, to perform such
calculation.
	 
	 	 	Lessee will then have the obligation to remove immediately the
temporary IT-room located on the 1st floor.
	 
	 	 	If this Lease Agreement will be partially dissolved by Lessee, based
on the paragraphs mentioned hereabove, the following terms and
conditions will apply.
	 
	 	 	The lease period as mentioned in article 3 of this Lease Agreement
will be 5 years + 1 x 5 years extension option. Only Lessee can
terminate this Lease Agreement as from the end of the first lease
period of 5 years. The rent as mentioned in this Lease Agreement will
be based on the size of the office space, calculated according to the
NEN 2580 measurement report for lettable floor area, multiplied by €
170 (in words: one hundred seventy euros) per sq.m. per annum and 35
parking spaces multiplied by € 570 (in words: five hundred seventy
euros) per parking space per annum.
	 
	 	 	The rent will be indexed for the first time on 1 September 2005, in
accordance with article 4.5. The advance payment for the service
charges will be set at € 25 (in words: twentyfive euros) per sq.m. per
annum, as described in articles 5 and 8.10 of this Lease Agreement.
Lessee will not receive the once-only compensation of € 1,300,000 (in

 

 

	 	 	words: one million three hundred thousand euros), from Lessor as
mentioned in article 8.8 of this Lease Agreement. Contrary to article
8.21, the reinstatement obligation of Lessee described in the special
conditions of the lease agreement dated 3 March 1999 in relation to
the current building (Robijnlaan 8), currently used by Lessee will
remain in place. The other terms and conditions as mentioned in this
Lease Agreement will remain unaltered.
	 
	8.25	 	Further deviations of / additions to the General Conditions:
	 
	 	 	Article 6.2
	 	 	In the 5th sentence after “instructions” the word “reasonably” is to
be added.
	 
	 	 	Article 6.7.3
	 	 	In deviation of this article it is agreed that the costs of
alterations and facilities as referred in that article will only be at
Lessee’s expense if such alterations/facilities are necessary or
prescribed in relation to the nature of Lessee’s business or
prescribed in relation to the operation of whatever business within
the Leased Space.
	 
	 	 	Article 6.7.3
	 	 	In addition to this article it is agreed upon that Lessor is to
indemnify Lessee against orders as referred to in this article and
possible (financial) consequences resulting therefrom if these result
from acts or negligence of Lessor, its personnel or goods under
Lessor’s supervision, or resulting from circumstances to be attributed
to Lessor.
	 
	 	 	Article 6.11.3
	 	 	After the word “written” the word “reasonable” is to be added.
	 
	 	 	Article 6.11.6
	 	 	In addition to this article it is agreed upon that Lessee is entitled
to indemnification or a reduction of the rent when these circumstances
result from an imputable failure in the performance of Lessor.
	 
	 	 	Article 6.11.7
	 	 	The words “unless these works result from an attributable default of
Lessor” are added to this article, but only if it concerns items
installed by Lessee with Lessor’s written permission.
	 
	 	 	Articles 11.9, 16.11 and 22.2
	 	 	The words “gross” and “serious” don’t apply.
	 
	 	 	Article 11.3
	 	 	In addition to this article it is agreed upon that Lessor is liable
for such damages and losses if these result from a fault or negligence
by Lessor.
	 
	 	 	Article 13.6
	 	 	The words “due notice” are to be read as “due notice in writing”.

 

 

	 	 	Article 14.4
	 	 	In deviation of this article it is agreed upon that article 7:220 par.
1, 2 and 3 Dutch Civil Code are applicable with observance of the
following: in as far as this article 7:220 par. 1, 2 and 3 entitle
Lessee to such rights, Lessee is entitled to a reduction on the rent
and/or compensation if the works to be carried out by Lessor last
longer than 40 workingdays and if such works are works that are
carried out without Lessee’s prior consent.
	 
	 	 	Article 16.7
	 	 	In addition to this article it is agreed upon that this can only take
place in consultation with the Lessee.
	 
	 	 	Article 22.3
	 	 	In this article “and resulting in such delay” should be read as “or
resulting in such delay”. To the last sentence of this article the
following is added: “Lessee will not dissolve this Lease Agreement on
unreasonable grounds and will take into due consideration the possible
consequences of delay in the delivery of the Leased Space and such
dissolution for both Lessor and Lessee.”
	 
	8.26	 	This agreement is drawn up in Dutch and English. The Dutch version is
binding. The English translation is attached to this Lease Agreement as
appendix 10.

Thus drawn up and signed in triplicate,

	 	 	 	 	 
	

	Lessor,
	 	Lessee,
	 
	 	 	 	 
	

	(signature)
	 	(signature)
	 
	 	 	 	 
	

	/s/ Majer Tugendhaft
	 	/s/ Tim Kelly
	

	
 
	 	
 
	

	Majer Tugendhaft
	 	Tim Kelly
	

	TUG Vastgoed B.V.
	 	Biogen Idec B.V.
	 
	 	 	 	 
	 

	_________,
___________________

 

place                date – 9/24/04
	 	_________,
___________________

 

place
               date – 9/24/04

 

 

Appendices:

	1)	 	drawing of the Leased Space
	2)	 	the General Conditions (in Dutch and English)
	3)	 	technical specifications
	4)	 	statements of delivery (in as far applicable)
	5)	 	zoning plan (and the English translation in as far applicable to
the Leased Space)
	6)	 	final drawings and documents regarding fitting out works to be
carried out by Lessee
	7)	 	the guarantee as mentioned in the special conditions (art. 8.9)
	8)	 	drawing space of Netshare
	9)	 	approval of SADC and the English translation thereof
	10)	 	English translation of this Lease Agreement

Separate signature(s) of Lessee(s) for receipt of a copy of the GENERAL
CONDITIONS LEASE AGREEMENT OFFICE SPACE and other business premises as set
forth in article 7:230a Dutch Civil Code, as mentioned in 2.1.

Signature Lessee:

Biogen Idec B.V.

/s/ Tim Kelly

Tim Kelly

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