Document:

May 4, 2001

 

 

BMC  Buckbee-Mears St. Paul

 

May 4, 2001 

 

Mr. Henry Zaidan 

President 

GMT Corporation

245 E. Sixth Street

St. Paul, MN 55101-1918

Dear Henry:

I would like to update GMT on the status of our
facilities plan and introduce our formal notice for another facility giveback
in 2001.

Prior Notification Updates:

Fire barn

	
  --

  	
  Per your request, we will giveback - 7,000 sq.
  ft. as described in our October 6, 2000 letter.  Buckbee-Mears. St Paul will retain first floor rooms F101,
  F102, F103, F105 and F107 for out shipping/receiving operations.

  
	
  --

  	
  We expect this project to be completed July
  2001.

  
	
  --

  	
  GMT funds any costs
  associated with revamping utilities and modifying the facilities.

  

5thFloor Park Square

	
  --

  	
  In our letter dated 14-Jun-00 Buckbee-Mears,
  St. Paul requested to giveback -7,000 sq. ft. of Park Square 5th
  floor- space which included room P502, P508 and P509.  Assuming the giveback ofthe fire
  barn is completed, we need to retain room P502 for material storage space.

  
	
  --

  	
  We expect this project to be completed by
  I-July-0l.

  
	
  --

  	
  GMT funds any costs
  associated with revamping utilities.

  

New Business: 

6th Floor Park Square

	
  --

  	
  Due to an unusuallylow sa1es forecast, we have reduced our staffing levels at
  BMSP.  Therefore, we are providing
  notice that we will giveback all office space on the 6th floor
  Park Square Building.  Per our
  contract, we will vacate the space in 5 months from the date of this
  letter.  This area covers
  approximatc1y 2,700 sq. ft.

  

Please contact me at
your earliest convenience to discuss.

Sincerely,

/s/Dennis Malacek 

Dennis Ma1acek
Director of Manufacturing11/7/00

FIRST AMENDMENT TO LEASE

          THIS FIRST AMENDMENT TO LEASE ("Amendment")
is made as of March 5, 2002, between OTR, an Ohio general partnership
("Landlord") acting as the duly authorized nominee of the BOARD OF
THE STATE TEACHERS RETIREMENT SYSTEM OF OHIO, and BMC Industries, Inc., a
Minnesota corporation ("Tenant").

          RECITALS:

	
  A.

  	
   	
  Landlord and Tenant entered into a Lease - Meridian Crossings
  I dated October 29, 1997 (the "Lease"), for approximately 11,124
  square feet of office space (the "Original Premises") on the eighth
  floor of the building located at One Meridian Crossings in Richfield,
  Minnesota (the "Building").

  
	
  B.

  	
   	
  Tenant wishes to expand the Original Premises and Landlord is
  willing to accommodate the same on the terms contained herein

  

AGREEMENT:

For good and valuable consideration, the receipt and
sufficiency of which is acknowledged by the parties hereto, Landlord and Tenant
agree as follows:

	
  1.

  	
   	
  Capitalized
  Terms.  Capitalized terms not
  defined herein will have the meanings given to the same in the Lease.   
   

  
	
  2.

  	
   	
  Premises
  Expansion.  On or prior to April
  1, 2002 (the "Commencement Date"), (A) approximately 2,689 rentable
  square feet of space on the eighth floor of the Building immediately adjacent
  to the Original Premises as depicted on Exhibit A attached hereto (the
  "New Premises"), will be added to the Original Premises, and (B)
  from and after the Commencement Date, the term "Premises" as used
  in the Lease will include the Original Premises and the New Premises and will
  consist of approximately 13,813 rentable square feet of office space.  If Landlord cannot deliver possession of
  the New Premises to Tenant on or before April 1, 2002, for any reason,
  Landlord will not be subject to any liability for failure to give possession.  Under such circumstances, Rent for the New
  Premises reserved and covenanted to be paid as stated herein will not
  commence until the New Premises is available for occupancy, and no such
  failure to give possession on or before such date will affect the validity of
  the Lease or the obligations of Tenant thereunder, nor shall the same be
  construed to extend the Term. 
  Notwithstanding the foregoing, if Landlord is unable to deliver the
  New Premises to Tenant prior to June 1, 2002, Tenant may terminate this
  Amendment by giving written notice of the same to Landlord on or prior to
  June 3, 2002, and, upon such notification, this Amendment will automatically
  terminate.  

  
	
  3.

  	
   	
  Term.  The Term is hereby extended to run through
  and including March 31, 2006.  

  
	
  4.

  	
   	
  Base Rent.  Commencing on the date that the New
  Premises is delivered to Tenant by Landlord, Base Rent for the Premises will
  be as follows:

  

	 	
  LEASE MONTH

  	
  MONTHLY
  BASE

  RENT

  	
  BASE
  RENT PER SQ. FT.

  OF RENTABLE AREA

  
	 
	
  Delivery of New Premises to Tenant - 3/31/04

  	
  $17,266.25

  	
  $15.00

  
	 
	
  4/1/04 - 3/31/05

  	
  $18,705.10

  	
  $16.25

  
	 
	
  4/1/05 - 3/31/06

  	
  $19,280.65

  	
  $16.75

  
					

 

	
  5.

  	
   	
  Building.  The number of rentable square feet in the
  Building as stated in Section (b) of the Data Sheet of the Lease is amended
  to be 186,307. 

  
	
  6.

  	
   	
  Tenant's Percentage.  The term "Tenant's Percentage"
  as defined in Section (j) of the Data Sheet of the Lease is amended to be
  7.414%.

  
	
  7.

  	
   	
  Improvements.  Landlord will, at Landlord's sole expense
  and prior to delivery of the New Premises to Tenant, construct (A) a demising
  wall separating the New Premises from the space currently leased and occupied
  by Solonis, Inc., and (B) an exit corridor extension for the New Premises,
  each of which will include all taping, sanding and painting by Landlord.  The parties hereto acknowledge that
  Landlord will employ MP Johnson to perform the foregoing work and that Tenant
  will also use MP Johnson to perform additional tenant improvements
  simultaneously with the performance of Landlord's work in the New
  Premises.  In addition to the
  foregoing, upon delivery of the New Premises to Tenant by Landlord, Landlord
  will provide Tenant with the sum of $27,626 (the "Allowance") to be
  used by Tenant toward the cost of installing improvements in the Premises
  (the "Improvements").  All
  Improvements will be constructed, installed and completed in accordance with
  Article VIII of the Lease.  If the
  actual cost of the Improvements is less than the Allowance, Landlord will
  have no claim to the unused portion of the Allowance.   

  
	
  8.

  	
   	
  Signage.  Tenant may, at Tenant's sole expense, install
  Tenant's name and logo on the monument sign for the Building.   The design and size of such sign must be
  approved in writing by Landlord prior to installation of the same, which
  approval will not be unreasonably withheld. 

  
	
  9.

  	
   	
  Notice Address.  The notice address for Landlord in Section
  (l) of the Data Sheet of the Lease is changed to the following:

  

                

	
   

  	
   

  	
  Escom Properties, Inc.

  
	
   

  	
   

  	
  10200 73rd Avenue North

  
	
   

  	
   

  	
  Suite 102

  
	
   

  	
   

  	
  Maple Grove, Minnesota 55369

  
	
   

  	
   

  	
  Attention:  Ernest
  E. Swanson 

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  c/o OTR

  
	
   

  	
   

  	
  275 East Broad Street

  
	
   

  	
   

  	
  Columbus, Ohio 43215

  
	
   

  	
   

  	
  Attention: Real Estate Manager

  
	
   

  	
   

  	
   

  

                

	
  10.

  	
   	
  Deleted Provisions.  Articles XXV (Termination Option), XXVI (Tenant Improvement
  Allowance and Tenant Work), XXIX (Initial Expansion Right), and XXI (Additional
  Space), each in the Rider to the Lease, are hereby deleted. 

  
	
  11.

  	
   	
  Expansion Option.  Tenant is granted the right to expand its
  Premises by leasing up to 3,000 contiguous, rentable square feet of space on
  the eighth floor of the Building (the "Expansion Space") currently
  leased and occupied by  Solonis,
  Inc.  upon vacation of said space by
  Solonis, Inc.  Any portion of the Expansion
  Space desired by Tenant must be contiguous and adjacent to the Premises.  To exercise this expansion right, Tenant
  must give Landlord written notice of its desire to occupy all or any portion
  of the Expansion Space by November 1, 2002. 
  Tenant's lease of the Expansion Space will be on the same terms,
  covenants and conditions provided in the Lease except that Base Rent for the
  space added by Tenant will be equal to 95% of the monthly base rent which
  would then be charged by Landlord for the expansion space considering the
  condition of such space and based on rates then being charged by Landlord for
  comparable space in the Building.  No
  provisions of this Lease relating to free rent, leasehold improvements,
  allowances, or other incentives or concessions, if any, will apply to the
  expansion space unless hereafter agreed upon between the parties in
  writing.  If Tenant timely exercises
  its right to expand pursuant to this section, Landlord will deliver to Tenant
  an amendment to this Lease adding the additional space to the Premises.  If 
  Tenant fails to timely exercise its expansion right hereunder, or if
  Tenant fails to execute and deliver the lease amendment to Landlord within 5
  business days after delivery to Tenant of the same (reflecting the terms
  agreed upon herein), then Landlord may lease all or any portion of the
  Expansion Space to one or more third parties and the expansion option granted
  hereby will terminate.

  
	
  12.

  	
   	
  Brokers. 
  Tenant represents that Tenant has directly dealt with and only with CB
  Richard Ellis, who represented Landlord (whose commission, if any, shall be
  paid by Landlord pursuant to separate agreement), and the Keewaydin Group,
  Inc., who represented Tenant (whose commission, if any, will be paid by CB
  Richard Ellis via separate agreement), as the brokers in connection with this
  Amendment and Tenant will indemnify and hold Landlord harmless from all damages,
  liability and expense (including reasonable attorneys' fees) arising from any
  claims or demands of any other broker or brokers or finders for any
  commission alleged to be due such broker or brokers or finders in connection
  with its participating in the negotiation with Tenant of this Amendment.

  
	
  13.

  	
   	
  Contingency.  The terms of this Amendment are contingent
  upon Landlord entering into a lease 
  amendment with Solonis, Inc. whereby said tenant will surrender the
  New Premises to Landlord.  If such an
  amendment cannot be obtained on or prior to March 8, 2002 (the
  "Contingency Date"), then either party hereto may terminate this
  Amendment by written notice given to the other party within 2 business days
  after the Contingency Date.

  
	
  14.

  	
   	
  Ratification.  Except as specifically amended hereby, the
  Lease remains in full force and effect. 
  If any conflict arises between the terms of the Lease and this
  Amendment, the terms of this Amendment shall control.

  

        EXECUTION:

	
   

  	
  LANDLORD:

  
	
   

  	
  OTR, an Ohio general
  partnership, acting as the duly authorized nominee of the BOARD OF THE STATE
  TEACHERS RETIREMENT SYSTEM OF OHIO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:        /s/Alan E.
  Muench               

  
	
   

  	
  Its:   Director, Midwestern
  Region         

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
  BMC INDUSTRIES, INC.

  
	
   

  	
  By:  /s/Bradley D. Carlson           

  
	
                                                                                                  

  	
  Its:   Treasurer

  

 

EXHIBIT A

Depiction of New
Premises

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