Document:

ex10-1.htm

Exhibit 10.1

 

SIXTH AMENDMENT TO CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into as of the 1st day of March, 2012, by and among ZOLTEK COMPANIES, INC., a Missouri corporation having its chief executive office and principal place of business located at 3101 McKelvey Road, St. Louis, Missouri 63044 (“Parent”), ZOLTEK CORPORATION, a Missouri corporation, ENGINEERING TECHNOLOGY CORPORATION, a Missouri corporation, and ZOLTEK PROPERTIES, INC., a Missouri corporation, (individually and collectively hereinafter “Borrowers”; all references to “Borrowers” or “Borrower” shall mean each and all of the Borrowers) and BMO HARRIS BANK N.A. (the “Bank”), with an office at 13205 Manchester Road, St. Louis, Missouri 63131.

W I T N E S S E T H:

WHEREAS, Bank and Borrowers are parties to that certain Credit Agreement dated as of May 11, 2001, as amended by that certain First Amendment to Credit Agreement dated as of February 13, 2003, by that certain Second Amendment to Credit Agreement dated as of January 13, 2004, by that certain Third Amendment to Credit Agreement dated as of December 21, 2006, by that certain Fourth Amendment to Credit Agreement dated as of January 1, 2011, and by that certain Fifth Amendment to Credit Agreement dated as of January 1, 2012 (as amended, the “Agreement”); and

WHEREAS, Bank and Borrowers desire to amend the Agreement upon and subject to the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises, the covenants, promises and agreements hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which hereby is acknowledged, the parties hereto agree as follows:

1.           Amendment to the Agreement.

(a)      The definition of “Revolving Loan Maturity Date,” as set forth in Section 1.01 of the Credit Agreement (Certain Defined Terms), is hereby deleted in its entirety and replaced with the following:

 

Revolving Loan Maturity Date – April 15, 2012.

 

2.           Conditions To Execution Of This Amendment.  Any provision contained herein or in the Agreement to the contrary notwithstanding, Bank’s execution of this Amendment is subject to the following:

(a)      Bank shall have first received a certified copy of the resolutions of each Borrower, duly adopted and authorizing the execution, delivery and performance of this Amendment in accordance with its terms;

 

(b)      All representations and warranties made in the Agreement and herein shall be true and correct in all material respects as of the date hereof and, by execution of this Amendment, each Borrower hereby certifies same to Bank;

 

(c)      After giving effect to this Amendment, no Borrower shall have defaulted, or taken or failed to take any action which, unless corrected, would give rise to a default on any of its obligations to Bank;

 

  

  

  

 

(d)      After giving effect to this Amendment, no action or omission exists as of the date hereof which constitutes, or which, with the passage of time, would constitute a Default or Event of Default;

 

(e)      Each Borrower shall be in compliance with all covenants of the Agreement, as amended;

 

(f)      All documents and filings necessary to maintain and perfect Bank’s security interest in the personal property collateral provided for in the Loan Documents shall be in full force and effect, and all actions necessary to maintain and perfect the same shall have been taken;

 

(g)      No material adverse change in the financial condition of the Borrowers taken as a whole shall have occurred since December 31, 2011, except as set forth in the financial statements of Parent provided to Bank;

 

(h)      Bank shall have received the following documents, duly executed and delivered by all parties thereto, and otherwise reasonably satisfactory in form and content to Bank and its counsel:

 

	
  

	
(i)

	
A Secretary’s Certificate from each Borrower; and

 

	
  

	
(ii)

	
A good standing certificate from the Secretary of State of the organizational State of each Borrower.

 

(i)           No pending or threatened litigation or other proceeding or investigation shall exist which could reasonably be expected to have a material adverse effect on the prospects, operation or financial condition of the Borrowers taken as a whole; and

 

(j)           The Borrowers shall pay the costs and expenses of Bank (including reasonable attorneys’ fees and expenses) in connection with the negotiation, preparation, execution and delivery of this Amendment and all other matters herein provided for or required in connection with this Amendment.

 

3.           Representations and Warranties.  The Borrowers hereby represent and warrant to Bank that:

 

(a)      All representations and warranties made by the Borrowers in the Agreement are true and correct in all material respects as if they had been made on the date hereof.

(b)      No Default or Event of Default exists within the meaning of the Agreement.

 

(c)      The officers of the Borrowers executing this Amendment shall be fully authorized to do so, and all corporate actions necessary or proper to authorize the execution of this Amendment have been duly done, taken and performed.  No consent, authorization or approval of any other Person is necessary for the due execution and delivery by any Borrower of this Amendment and the performance by any Borrower of the terms hereof and thereof.  This Amendment is executed and delivered in accordance with any laws and regulations applicable hereto and thereto, and is the legal, valid and binding obligation of each Borrower, enforceable in accordance with its terms.

 

  

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(d)      The execution, delivery, and performance, in accordance with its terms, of this Amendment will not violate any provision of any Borrower’s organizational documents, any law, or any applicable judgment or regulation of any court or of any public or governmental agency, officer, or authority, and will not conflict with, result in a breach of or default under, or result in the creation of any lien, charge or encumbrance upon any of the property or assets of any Borrower (except for the security interest created by the Loan Documents) under any indenture, mortgage, contract, deed of trust, or other agreement to which any Borrower is a party or by which any Borrower or any of its properties or assets is or may be bound.

 

4.           Entire Agreement.  This Amendment and the Agreement embody the entire agreement between the parties respecting the subject matter hereof and supersede all prior agreements, proposals, communications and understandings relating to such subject matter.  The terms of the Amendment shall be considered a part of the Agreement as if fully set forth therein.

5.           Miscellaneous.  This Amendment shall be binding upon the Borrowers and their respective successors and the Bank and its successors and assigns.  The Section headings are furnished for the convenience of the parties and are not to be considered in the construction or interpretation of this Amendment or the Agreement.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.  Capitalized terms not defined herein shall have the meanings set forth in the Agreement.  This Agreement shall be a contract made under and governed by the laws of the State of Missouri applicable to contracts made and to be performed entirely within such State.

6.           No Other Amendments.  In case of a conflict between the terms of this Amendment and the Agreement, the terms of this Amendment control.  Except as expressly set forth in this Amendment, the terms of the Agreement remain unchanged and in full force and effect.  The following notice is given pursuant to Section 432.045 of the Missouri Revised Statutes; nothing contained in such notice shall be deemed to limit or modify the terms of the Loan Documents:  "ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT.  TO PROTECT YOU (BORROWER(S)) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT."

[SIGNATURE PAGE FOLLOWS]

 

  

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first above written.

 

BORROWERS:

 

 

ZOLTEK COMPANIES, INC.

By:/s/ Zsolt Rumy                                                                          

Name:  Zsolt Rumy                                                                          

Title:  CEO                                                                                        

 

ZOLTEK CORPORATION

By:/s/ Zsolt Rumy                                                                          

Name:  Zsolt Rumy                                                                          

Title:  CEO                                                                                        

 

ENGINEERING TECHNOLOGY CORPORATION

By:/s/ Zsolt Rumy                                                                          

Name:  Zsolt Rumy                                                                          

Title:  CEO                                                                                         

 

ZOLTEK PROPERTIES, INC.

By:/s/ Zsolt Rumy                                                                          

Name:  Zsolt Rumy                                                                         

Title:   CEO                                                                                       

 

 

BANK:

 

 

BMO HARRIS BANK N.A.

 

By:/s/ Christian Jon Bugyis                                                               

Name:  Christian Jon Bugyis                                                              

Title:  Senior Vice President                                                                 

 

By:/s/ Stephen A. Mueller                                                                  

Name:  Stephen A. Mueller                                                                 

Title:  Assistant Vice President                                                           

 

Signature page to Sixth Amendment to Credit Agreement

 

  

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SECRETARY’S CERTIFICATE

 

Zoltek Companies, Inc.

 

I,       Andrew Whipple, being the duly elected and acting Secretary of Zoltek Companies, Inc., a Missouri corporation (the “Company”), pursuant to the Sixth Amendment to Credit Agreement of even date herewith (the “Amendment”) by and between the Company and BMO Harris Bank N.A., do hereby certify as follows:

 

	
  

	
1.

	
There have been no amendments to the Articles of Incorporation or Bylaws of the Company since December 21, 2006, and the copies of the Articles of Incorporation and Bylaws of the Company delivered with the Secretary’s Certificate dated December 21, 2006 remain true, complete and correct.

 

	
  

	
2.

	
Attached hereto as Exhibit A is a true and complete copy of the Resolutions that were duly adopted by the Board of Directors of the Company to be effective as of March 1, 2012 authorizing the Amendment and all transactions incident thereto, and that the Resolutions have not been rescinded and are presently in full force and effect.

 

	
  

	
2.

	
The person named below is duly elected, qualified and serving in the position set forth opposite such person’s name and that the signature set forth below is such person’s true and genuine signature.

 

	 
Name

	 
Position

	 
Signature

	 
	 	 	 	 
	Zsolt Rumy	CEO	/s/ Zsolt Rumy	 
	 	 	 	 
	Andrew Whipple	CFO	/s/ Andrew Whipple	 

 

 

IN WITNESS WHEREOF, the undersigned has hereto executed this certificate as of the 1st day of March, 2012.

 

  /s/ Andrew Whipple                                                                           

Andrew Whipple, Secretary

 

  

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SECRETARY’S CERTIFICATE

 

Zoltek Corporation

 

I,      Andrew Whipple, being the duly elected and acting Secretary of Zoltek Corporation, a Missouri corporation (the “Company”), pursuant to the Sixth Amendment to Credit Agreement of even date herewith (the “Amendment”) by and between the Company and BMO Harris Bank N.A., do hereby certify as follows:

 

	
  

	
1.

	
There have been no amendments to the Articles of Incorporation or Bylaws of the Company since December 21, 2006, and the copies of the Articles of Incorporation and Bylaws of the Company delivered with the Secretary’s Certificate dated December 21, 2006 remain true, complete and correct.

 

	
  

	
2.

	
Attached hereto as Exhibit A is a true and complete copy of the Resolutions that were duly adopted by the Board of Directors of the Company to be effective as of March 1, 2012 authorizing the Amendment and all transactions incident thereto, and that the Resolutions have not been rescinded and are presently in full force and effect.

 

	
  

	
2.

	
The person named below is duly elected, qualified and serving in the position set forth opposite such person’s name and that the signature set forth below is such person’s true and genuine signature.

 

	 
Name

	 
Position

	 
Signature

	 
	 	 	 	 
	Zsolt Rumy	CEO	/s/ Zsolt Rumy	 
	 	 	 	 
	Andrew Whipple	CFO	/s/ Andrew Whipple	 

 

IN WITNESS WHEREOF, the undersigned has hereto executed this certificate as of the 1st day of March, 2012.

 

  /s/ Andrew Whipple                                                                   

Andrew Whipple, Secretary

 

  

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SECRETARY’S CERTIFICATE

 

Zoltek Properties, Inc.

 

I,      Andrew Whipple, being the duly elected and acting Secretary of Zoltek Properties, Inc., a Missouri corporation (the “Company”), pursuant to the Sixth Amendment to Credit Agreement of even date herewith (the “Amendment”) by and between the Company and BMO Harris Bank N.A., do hereby certify as follows:

 

	
  

	
1.

	
There have been no amendments to the Articles of Incorporation or Bylaws of the Company since December 21, 2006, and the copies of the Articles of Incorporation and Bylaws of the Company delivered with the Secretary’s Certificate dated December 21, 2006 remain true, complete and correct.

 

	
  

	
2.

	
Attached hereto as Exhibit A is a true and complete copy of the Resolutions that were duly adopted by the Board of Directors of the Company to be effective as of March 1, 2012 authorizing the Amendment and all transactions incident thereto, and that the Resolutions have not been rescinded and are presently in full force and effect.

 

	
  

	
2.

	
The person named below is duly elected, qualified and serving in the position set forth opposite such person’s name and that the signature set forth below is such person’s true and genuine signature.

 

	 
Name

	 
Position

	 
Signature

	 
	 	 	 	 
	Zsolt Rumy	CEO	/s/ Zsolt Rumy	 
	 	 	 	 
	Andrew Whipple	CFO	/s/ Andrew Whipple	 

 

IN WITNESS WHEREOF, the undersigned has hereto executed this certificate as of the 1st day of March, 2012.

 

  /s/ Andrew Whipple                                                                   

Andrew Whipple, Secretary

 

  

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SECRETARY’S CERTIFICATE

 

Engineering Technology Corporation

 

I,      Andrew Whipple, being the duly elected and acting Secretary of Engineering Technology Corporation, a Missouri corporation (the “Company”), pursuant to the Sixth Amendment to Credit Agreement of even date herewith (the “Amendment”) by and between the Company and BMO Harris Bank N.A., do hereby certify as follows:

 

	
  

	
1.

	
There have been no amendments to the Articles of Incorporation or Bylaws of the Company since December 21, 2006, and the copies of the Articles of Incorporation and Bylaws of the Company delivered with the Secretary’s Certificate dated December 21, 2006 remain true, complete and correct.

 

	
  

	
2.

	
Attached hereto as Exhibit A is a true and complete copy of the Resolutions that were duly adopted by the Board of Directors of the Company to be effective as of March 1, 2012 authorizing the Amendment and all transactions incident thereto, and that the Resolutions have not been rescinded and are presently in full force and effect.

 

	
  

	
2.

	
The person named below is duly elected, qualified and serving in the position set forth opposite such person’s name and that the signature set forth below is such person’s true and genuine signature.

 

	 
Name

	 
Position

	 
Signature

	 
	 	 	 	 
	Zsolt Rumy	CEO	/s/ Zsolt Rumy	 
	 	 	 	 
	Andrew Whipple	CFO	/s/ Andrew Whipple	 

 

IN WITNESS WHEREOF, the undersigned has hereto executed this certificate as of the 1st day of March, 2012.

 

  /s/ Andrew Whipple                                                                   

Andrew Whipple, Secretary

 

  

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Exhibit A - Sixth Amendment to Credit Agreement

           WHEREAS, the Company is party to that certain Credit Agreement dated as of May 11, 2001, as amended by that certain First Amendment to Credit Agreement dated as of February 13, 2003, by that certain Second Amendment to Credit Agreement dated as of January 13, 2004, by that certain Third Amendment to Credit Agreement dated as of December 21, 2006, and by the certain Fourth Amendment to Credit Agreement dated as of January 1, 2011, and by the certain Fifth Amendment to Credit Agreement dated as of January 1, 2012 (as amended, the “Credit Agreement”), by and among Zoltek Companies, Inc., Zoltek Corporation, Engineering Technology Corporation, and Zoltek Properties, Inc. (collectively, the “Borrowers”), and BMO Harris Bank N.A., successor-by-merger to M&I Marshall & Ilsley Bank (the “Bank”), and other related agreements, documents and instruments, which provided for the Bank to lend to the Borrowers in the form of revolving credit loans; and

           WHEREAS, the Board of Directors has determined that it is advisable and in the best interest of the Company to amend the Credit Agreement and has presented to the Board a Sixth Amendment to Credit Agreement by and among the Borrowers and the Bank, and other related agreements, documents and instruments, pursuant to which, among other things, the Credit Agreement will be amended to extend the Revolving Loan Maturity Date to April 15, 2012.

           NOW, THEREFORE, BE IT RESOLVED, that the Sixth Amendment to Credit Agreement and each other related agreement, document or instrument referenced or contemplated therein, and any collateral or security documents required to be executed by any one or more of the Borrowers in connection therewith are hereby authorized and approved in all respects, including all of the terms, provisions, conditions, agreements, covenants, representations and warranties contained therein; and be it

           FURTHER RESOLVED, that, in connection with the foregoing resolutions, any of the President and Chief Executive Officer, the Chief Financial Officer and Secretary, or any Vice President, and each of them acting alone (the “Authorized Officers”), are hereby authorized and empowered for and in behalf and in the name of the Company:

                      (a)           to borrow money and obtain other financial accommodations in any form from Bank and/or any assignee of Bank in the amounts set forth above, for such periods of time and upon such terms and conditions as such officer(s) may deem desirable, and to negotiate, enter into, execute, perform and deliver to Bank and/or any assignee of Bank such notes, credit agreements, loan agreements, drafts, acceptances and such other agreements, documents, instruments and certificates as Bank and/or any assignee of Bank may from time to time require in connection therewith;

 

  

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                      (b)           to guarantee to Bank and/or any assignee of Bank the payment and performance of any and all indebtedness, liabilities and obligations of any individual, sole proprietorship, partnership, limited liability company, corporation, trust, association (incorporated or unincorporated) or other entity to Bank and/or any assignee of Bank, whether now existing or hereafter incurred or arising, upon such terms and conditions as Bank and/or any assignee of Bank may require, and to negotiate, enter into, execute, perform and deliver to Bank and/or any assignee of Bank such guaranties and such other agreements, documents, instruments and certificates as Bank and/or any assignee of Bank may from time to time require in connection therewith;

                      (c)           to pledge with, or assign, endorse, negotiate and guarantee to, Bank and/or any assignee of Bank and/or any agent for Bank or to grant to Bank and/or any assignee of Bank and/or any agent for Bank a lien, mortgage, deed of trust or other encumbrance upon or a security interest in, such present and future assets and property of the Company, real or personal, tangible or intangible, or any interest therein, as may now or hereafter be required by Bank and/or any assignee of Bank and/or any agent for Bank, including, without limitation, present and future accounts, accounts receivable, contract rights, instruments, documents, chattel paper, notes, stocks, bonds, certificates of deposit, bills of lading, warehouse receipts, insurance policies, inventory, machinery, equipment, furniture, furnishings, fixtures, real estate, improvements and general intangibles, as security for any and all indebtedness, liabilities and obligations of the Company or any other individual, sole proprietorship, partnership, limited liability company, corporation, trust, association (incorporated or unincorporated) or other entity to Bank and/or any assignee of Bank and/or any agent for Bank, and to negotiate, enter into, execute, perform and deliver to Bank and/or any assignee of Bank and/or any agent for Bank such pledge agreements, security agreements, mortgages, deeds of trust, assignments, agreements of pledge, hypothecation agreements and financing statements and such other agreements, documents, instruments and certificates as Bank and/or any assignee of Bank and/or any agent for Bank may from time to time require in connection therewith;

                      (d)           to subordinate the payment and performance of any and all indebtedness, liabilities and obligations of any individual, sole proprietorship, partnership, limited liability company, corporation, trust, association (incorporated or unincorporated) or other entity to the Company, whether now existing or hereafter incurred or arising, to the payment and performance of any and all indebtedness, liabilities and obligations of such individual, sole proprietorship, partnership, limited liability company, corporation, trust, association (incorporated or unincorporated) or other entity to Bank and/or any assignee of Bank, whether now existing or hereafter incurred or arising, upon such terms and conditions as Bank and/or any assignee of Bank may require, and to negotiate, enter into, execute, perform and deliver to Bank and/or any assignee of Bank such subordination agreements and such other agreements, documents, instruments and certificates as Bank and/or any assignee of Bank may from time to time require in connection therewith;

 

  

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                      (e)           to withdraw from Bank and/or any assignee of Bank and/or any agent for Bank and give receipts therefor, and to authorize and request Bank and/or any assignee of Bank and/or any agent for Bank to sell and deliver for the account of the Company, any of the assets and property of the Company at any time pledged, assigned or endorsed to Bank and/or any assignee of Bank and/or any agent for Bank or upon which Bank and/or any assignee of Bank and/or any agent for Bank has a lien, mortgage, deed of trust, security interest or other encumbrance;

                      (f)           from time to time to amend, modify, restructure, supplement, extend, renew or terminate any arrangements or agreements with Bank and/or any assignee of Bank and/or any agent for Bank upon such terms and conditions as such officer(s) of the Company may deem desirable, and to negotiate, enter into, execute, perform and deliver to Bank and/or any assignee of Bank and/or any agent for Bank such agreements, documents, instruments and certificates as Bank and/or any assignee of Bank and/or any agent for Bank may from time to time require in connection therewith; and

                      (g)           to take any and all other actions and execute, perform and deliver to Bank and/or any assignee of Bank and/or any agent for Bank any and all other agreements, documents, instruments and certificates (including, without limitation,  borrowing notices, borrowing requests, borrowing base certificates, collateral reports and compliance certificates) as may be necessary or appropriate to consummate the transactions authorized by these resolutions and to perform all of the terms, provisions and conditions of each of the agreements, documents, instruments and certificates referred to in these resolutions; and be it

           FURTHER RESOLVED, that the execution by any such officer(s) of the Company of any agreement, document, instrument or certificate referred to in these resolutions shall be prima facie evidence and proof of the approval thereof and of all of the terms, provisions and conditions contained therein and that any and all acts and things which any such officer(s) of the Company may do or perform in conformity with the powers conferred upon them by these resolutions are hereby expressly authorized, approved, ratified and confirmed; and be it

           FURTHER RESOLVED, that the Secretary and each other officer of the Company be, and hereby is, authorized and empowered to certify to Bank and/or any assignee of Bank and/or any agent for Bank the names of the present officers of the Company and the offices, respectively, held by them, together with specimens of their signatures, and in case of any change of any office holder, the fact of such change and the name of any new officer together with a specimen of his or her signature; and Bank and any assignee of Bank and any agent for Bank are hereby authorized to honor any instrument signed by any new officer or officers in respect of whom it has received any such certificate or certificates, with the same force and effect as if said officer or officers were named in the foregoing resolutions; and be it

 

  

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           FURTHER RESOLVED, that Bank and any assignee of Bank and any agent for Bank shall be indemnified and held harmless by the Company from and against any and all damages, losses, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred by Bank and/or any assignee of Bank and/or any agent for Bank in acting pursuant to these resolutions, and until Bank, each assignee of Bank and each agent for Bank has actually received notice in writing from the Secretary or any other officer of the Company of any change in these resolutions, Bank, each assignee of Bank and each agent for Bank is authorized to act in pursuance hereof.

 

 

 

 

12ex_10-71.htm

Exhibit 10.7.1

 

AMENDMENT TO OFFICE LEASE

 

THIS AMENDMENT (this “Amendment”) is entered into as of February 11, 2010, by and between MS LPC MALIBU PROPERTY HOLDINGS, LLC, a Delaware limited liability company (“Landlord”), and IXIA, a California corporation (“Tenant”).

 

Recitals

 

A           Landlord and Tenant entered into that certain Office Lease (the “Lease”) dated as of September 14, 2007, pursuant to which Tenant leased from Landlord approximately 84,124 rentable square feet of space (the “Premises”) in three buildings located at 26601, 26701 and 26677 West Agoura Road, Calabasas, CA, which are part of an office project known as “Corporate Center Calabasas” (the “Project”).

 

B.           Tenant has requested the right to use approximately 1,200 rentable square feet of additional space in the Project, consisting of a portion of Suite 100 on the ground floor of Building “B” within the Project, located at 26707 West Agoura Road, as shown on the site plan attached to this Amendment as Exhibit A (the “Storage Space”) for storage, and Landlord has agreed to allow such use, on the terms and conditions set forth in this Amendment.

 

C.           All capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Lease.

 

Agreement

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which arc acknowledged, Landlord and Tenant agree as follows:

 

	
  

	
1.

	
Storage Space.

 

1.1           Right to Use Storage Space.  Subject to all of the terms and conditions of this Amendment, Landlord grants to Tenant a license (the “Storage Space License”) to use the Storage Space solely for the purposes described in Section 1.3 below.  The Storage Space License shall commence on February 11, 2010, and shall remain in effect until May 10, 2010.  Thereafter, the term of the Storage Space License shall automatically renew for successive one-month terms unless and until either party provides at least 30 days’ written notice of termination to the other party.  If the Storage Space License has not earlier been terminated, the term of the Storage Space License shall automatically terminate upon the termination or expiration of the Lease.

 

1.2           Rent.  For the period between February 11 , 2010, and May 10, 2010, Tenant shall not be required to pay any rent for the use of the Storage Space.  If the Storage Space License has not been terminated and Tenant has not vacated the Storage Space in the manner required by this Amendment on or before May 10, 2010, Tenant shall pay to Landlord as additional Base Rent under the Lease the amount of One Thousand Five Hundred Dollars and zero cents ($1,500.00) per month for the use of the Storage Space, payable at the same time and in the same manner as the payment of Base Rent under the Lease.  Tenant shall not be required to pay any share of Direct Expenses, Tax Expenses or Tenant’s Facilities Share with respect to the Storage Space.

 

AMENDMENT TO LEASE

- 1 -

  

Exhibit 10.7.1

 

 

1.3           Permitted Use.  Tenant shall be permitted to use the Storage Space solely for the purpose of storing office supplies, files and furnishings, and Tenant shall not use the Storage Space for any other purpose or purposes whatsoever without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion.  Tenant shall not use or store any Hazardous Materials in the Storage Space.  Tenant agrees that it shall not conduct any business operations in the Storage Space.  In addition, Tenant agrees that it shall comply with Article 5 of the Lease with respect to the Storage Space.

 

	
  

	
2.

	
Terms and Conditions Relating to Storage Space.

 

2.1           Condition of Space; Surrender Upon Expiration.  Tenant agrees that it has inspected the Storage Space (which is referred to herein as an “Additional Space”), and has determined that the Additional Space is suitable for Tenant’s purposes.  Accordingly, Tenant shall accept the Additional Space in its “as is” condition, and Landlord shall have no obligation whatsoever to install or supply any improvements, furniture or equipment, or make any repairs, to either Additional Space.  While the Storage Space License (is referred to herein as an “Additional Space License”) is in effect, Tenant shall maintain the relevant Additional Space in good, clean and working order.  Landlord shall have no obligation to repair or maintain either Additional Space or any portion thereof, and Landlord’s sole repair obligations shall be as stated in Article 7 of the Lease.  At the end of the period that the Additional Space License is effective, Tenant shall remove all of its personal property from the Additional Space and shall surrender possession of the Additional Space to Landlord in the same condition as when possession of such Additional Space was provided to Tenant, in broom clean condition.  If Tenant fails to remove all personal property stored in such Additional Space or to surrender possession of such Additional Space on or before the date required by this Amendment, Tenant shall pay to Landlord rent for such Additional Space in an amount equal to 200% of the rent described in Section 1.2 above until possession is surrendered in the required condition and all items of persona] property are removed.  Except as stated in the previous sentence, Article 16 of the Lease shall apply to any such holding over.

 

2.2           Utilities and Services.  Landlord shall provide without charge the electrical and HVAC utilities presently existing in each Additional Space.  Tenant agrees only to use building-standard levels of electrical and HVAC service in the Additional Space.  Tenant agrees that no janitorial service will be provided for the Storage Space.

 

2.3           Insurance.  At least five business days before the first day on which Tenant occupies Additional Space, Tenant shall provide Landlord with a certificate of insurance showing that Tenant has expanded its policies of insurance carried pursuant to Section 10.3 of the Lease to include the Additional Space, and Tenant shall comply with all of the requirements of Article 10 of the Lease with respect to such insurance.

 

2.4           Licenses and Permits.  It is the responsibility of Tenant to obtain, at its sole cost and expense, any and all licenses, permits or other authorizations that may be required by any governmental agency or authority in connection with Tenant’s use of the Additional Space.  Tenant shall obtain such licenses, permits and authorizations prior to the first day on which the License becomes effective and shall maintain them in effect throughout the term of this Amendment.  Tenant shall strictly comply with all terms and conditions of such licenses, permits and authorizations.  Tenant shall comply with all Applicable Laws in connection with its use of the Additional Space.

 

AMENDMENT TO LEASE

- 2 -

  

Exhibit 10.7.1

 

 

2.5           Waiver, Release and Indemnification.  Landlord shall not provide any security services in connection with Tenant’s use of the Additional Space.  Tenant accepts any and all risk of loss, vandalism, theft, injury or property damage resulting from or in connection with Tenant’s use of the Additional Space, and Tenant knowingly and willingly waives any Claims (defined below) against Landlord and/or Landlord Parties in connection with Tenant’s use of the Additional Space, and Tenant releases Landlord and Landlord Parties from any and all Claims, whether direct or indirect, whether known or unknown, and whether arising now or in the future.  Tenant agrees that neither Landlord, nor any of Landlord Parties, shall be liable in any way for any Claims, and Tenant hereby agrees to indemnify, hold harmless and defend Landlord and Landlord Parties with competent counsel reasonable acceptable to Landlord from and against any Claims.  As used in this paragraph, “Claims” means any and all damage, injury, losses, claims, actions, causes of action, penalties, fees, expenses, costs (including reasonable attorneys’ fees) or any other liability whatsoever resulting from or arising out of Tenant’s use of the Additional Space or failure to comply with the terms and conditions of this Amendment.  Tenant warrants and represents that it is familiar with the provisions of California Civil Code Section 1542 and expressly waives and relinquishes any rights or benefits that it has or may have pursuant to that statute; provided, however, that the foregoing release and indemnification shall not apply to any Claims that may arise solely as a result of Landlord’s gross negligence or intentional misconduct which reads as follows:

 

Section 1542:  A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.

 

	
  

	
3.

	
Miscellaneous.

 

3.1           Assignment.  Tenant may not assign its rights to use the Additional Space under this Amendment, and any assignment or sublease of the Lease which may be agreed to by Landlord shall not include the rights of Tenant under this Amendment.

 

3.2           Default.  If Tenant defaults in the performance of any of its obligations under this Amendment, Landlord shall have all rights and remedies described in the Lease.  The failure of Landlord to exercise any right or remedy shall not be deemed a waiver of the right to exercise such right or remedy in the future or a waiver of any other right or remedy available under the Lease, at law or in equity.

 

3.3           Incorporation of Lease.  Except as expressly stated in this Amendment, all of the terms, conditions and covenants of the Lease shall apply to Tenant’s use of the Additional Space.  Except as expressly stated in this Amendment, the Lease remains in full force and effect without modification.

 

AMENDMENT TO LEASE

- 3 -

  

Exhibit 10.7.1

 

 

IN WITNESS WHEREOF, Tenant and Landlord have caused this Amendment to be executed by their duly authorized representatives as of the date set forth above.

 

	 	
MS LPC MALIBU PROPERTY HOLDINGS,

LLC, a Delaware limited liability company

 

	 
	 	 	 	 
	 	
By: 

	/s/ David Binswanger	 
	 	Name:	David Binswanger	 
	 	Title:	Vice President	 
	 	 	 	 
	 	 	 	 
	 	
IX1A, a California corporation

 

	 
	 	 	 	 
	 	By:	/s/ Thomas B. Miller	 
	 	Name:	Tom Miller	 
	 	Title:	CFO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00200-of-00352.parquet"}]]