Document:

kl04016_ex10-1.htm

    
      

    

     

    Exhibit
10.1

     

    
 

    Agreement
of Lease, made as of this 13th day of
July, 1989, between MITCHMAR ATLANTA PROPERTIES, INC., a Delaware corporation,
with offices at 151 Sunnyside Boulevard, Plainview, New York 11803 party of
the first part, hereinafter referred to as OWNER, and SID TOOL CO., INC., a New
York corporation, with offices at 151 Sunnyside Boulevard, Plainview, New York
11803, party of
the second part, hereinafter referred to as TENANT,

     

    Witnesseth:  Owner hereby
leases to Tenant and Tenant hereby hires from Owner the land shown on the survey
annexed hereto as Exhibit A, together with all the rights and appurtenances that
pertain thereto and the approximately 236,738 square foot building and
improvements to be constructed thereon, for the term as provided at paragraph 42
of the attached rider, at an annual rental rate of set forth at paragraph 43
(“fixed rent”) of the attached rider, which
Tenant agrees to pay in lawful money of the United States which shall be legal
tender in payment of all debts and dues, public and private, at the time of
payment, in equal monthly installments in advance on the first day of each month
during said term, at the office of Owner or such other place as Owner may
designate, without any set off or deduction whatsoever.

     

    In the
event that, at the commencement of the term of this lease, or thereafter, Tenant
shall be in default in the payment of rent to Owner pursuant to the terms of
another lease with Owner or with Owner’s predecessor in interest, Owner may at
Owner’s option and without notice to Tenant add the amount of such arrears to
any monthly installment of rent payable hereunder and the same shall be payable
to Owner as additional rent.

     

    The
parties hereto, for themselves, their heirs, distributees, executors,
administrators, legal representatives, successors and assigns, hereby covenant
as follows:

     

    Occupancy:        1.  Tenant
shall pay the rent as above and as hereinafter provided.

     

    Use:                      2.  Tenant shall use
and occupy demised premises for warehouse, distribution and sale of tools and
equipment and offices therefor, provided such use is in accordance with the
Certificate of Occupancy for the building, if any, and for no other
purpose.

     

    Alterations:        3.  Tenant shall
make no changes in or to the demised premises of any nature without Owner’s
prior written consent.  Subject to the prior written consent of Owner,
and to the provisions of this article, Tenant at Tenant’s expense, may make
alterations, installations, additions or improvements which are non-structural
and which do not affect utility services or plumbing and electrical lines, in or
to the interior of the demised premises using contractors or mechanics first
approved by Owner.  Tenant shall, at its expense, before making any
alterations, additions, installations or improvements obtain all permits,
approval and certificates required by any governmental or quasi-governmental
bodies and (upon completion) certificates of final approval thereof and shall
deliver promptly duplicates of all such permits, approvals and certificates to
Owner.  Tenant agrees to carry and will cause Tenant’s contractors and
sub-contractors to carry such workman’s compensation, general liability,
personal and property damage insurance as Owner may require.  If any
mechanic’s lien is filed against the demised premises, or the building of which
the same forms a part, for work claimed to have been dome for, or materials
furnished to, Tenant, whether or not done pursuant to this article, the same
shall be discharged by Tenant within thirty days thereafter, at Tenant’s
expense, by filing the bond required by law or otherwise.  All
fixtures and all paneling, partitions, railings and like installations,
installed in the premises at any time, either by Tenant or Owner on Tenant’s
behalf, shall, upon installation, become the property of Owner and shall remain
upon and be surrendered with the demised premises unless Owner, by notice to
Tenant no later than twenty days prior to the dated fixed as the termination of
this lease, elects to relinquish Owner’s right thereto and to have them removed
by Tenant, in which event the same shall be removed from the demised premises by
Tenant prior to the expiration of the lease, at Tenant’s
expense.  Nothing in this Article shall be construed to give Owner
title to or to prevent Tenant’s removal of trade fixtures, moveable office
furniture and equipment, but upon removal of any such from the premises or upon
removal of other installations as may be required by Owner, Tenant shall
immediately and at its expense, repair and restore the premises to the condition
existing prior to installation and repair any damage to the demised premises or
the building due to such removal.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    4.             [Reserved]

     

    Window
Cleaning:  5.  Tenant will not clean nor require,
permit, suffer or allow any window in the demised premises to be cleaned from
the outside in violation of any applicable law or of the Rules of the Board of
Standards and Appeals, or of any other Board or body having or asserting
jurisdiction.

     

    Requirements of Law, Fire Insurance,
Floor Loads:  6.  Prior to the commencement of the
lease term, if Tenant is then in possession, and at all times thereafter, Tenant
shall, at Tenant’s sole cost and expense, promptly comply with all present and
future laws, orders and regulations of all state, federal, municipal and local
governments, departments, commissions and boards and any direction of any public
officer pursuant to law, and all orders, rules and regulations of the New York
Board of Fire Underwriters (or similar body in the jurisdiction in which the
demised premises lies) , or any similar body which shall impose any violation,
order or duty upon Owner or Tenant with respect to the demised premises, whether
or not arising out of Tenant’s use or manner of use thereof, or, with respect to
the building, if arising out of Tenant’s use or manner of use of the demised
premises or the building (including the use permitted under the lease). Except
as provided in Article 30 hereof, nothing herein shall require Tenant to make
structural repairs or alterations unless Tenant has, by its manner of use of the
demised premises or method of operation therein, violated any such laws,
ordinances, orders, rules, regulations or requirements with respect thereto.
Tenant shall not do or permit any act or thing
to be done in or to the demised premises which is contrary to law, or which will
invalidate or be in conflict with public liability, fire or other policies of
insurance at any time carried by or for the benefit of Owner, Tenant shall not
keep anything in the demised premises except as now or hereafter permitted by
the Fire Department, Board of Fire Underwriters, Fire Insurance Rating
Organization and other authority having jurisdiction, and then only in such
manner and quantity so as not to increase the rate for fire insurance applicable
to the building, nor use the premises in a manner which will increase the
insurance rate for the building or any property located therein over that in
effect prior to the commencement of Tenant’s occupancy.  If by reason
of failure to comply with the foregoing the fire insurance rate shall, at the
beginning of this lease or at any time thereafter, be higher than it otherwise
would be, then Tenant shall reimburse Owner, as additional rent hereunder, for
that portion of all fire insurance premiums thereafter paid by Owner which shall
have been charged because of such failure by Tenant.  In

     

    
       

    

     

     

    
      
        
        

      

      
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    any
action or proceeding wherein Owner and Tenant are parties, a schedule or
“make-up” or rate for the building or demised premises issued by a body making
fire insurance rates applicable to said premises shall be conclusive evidence of
the facts therein stated and of the several items and charges in the fire
insurance rates then applicable to said premises.  Tenant shall not
place a load upon any floor of the demised premises exceeding the floor load per
square foot area which it was designed to carry and which is allowed by
law.  Owner reserves the right to prescribe the weight and position of
all safes, business machines and mechanical equipment.  Such
installations shall be placed and maintained by Tenant, at Tenant’s expense, in
settings sufficient, in Owner’s judgement, to absorb and prevent vibration,
noise and annoyance.

     

    Subordination:  7.         This
lease is subject and subordinate to all ground or underlying leases and to all
first mortgages which may now or hereafter affect such leases or the real
property of which demised premises are a part and to all renewals,
modifications, consolidations, replacements and extensions of any such
underlying leases and first mortgages.  This clause shall be
self-operative and no further instrument or subordination shall be required by
any ground or underlying lessor or by any first mortgagee, affecting any lease
or the real property of which the demised premises are a part.  In
confirmation of such subordination, Tenant shall execute promptly any
certificate that Owner may request.

     

    Property – Loss, Damage,
Reimbursement, Indemnity:  8.  Owner or its agents
shall not be liable for any damage to property of Tenant or of others entrusted
to employees of the building, nor for loss of or damage to any property of
Tenant by theft or otherwise, nor for any injury or damage to persons or
property resulting from any cause of whatsoever nature, unless caused by or due
to the negligence of Owner, its agents, servants or employees; Owner or its
agents shall not be liable, for any
damage caused by other tenants or persons in, upon or about said building or
caused by operations in connection of any private, public or quasi public
work.  If at any time any windows of the demised premises are
temporarily closed, darkened or bricked up (or permanently closed, darkened or
bricked up, if required by law) for any reason whatsoever including, but not
limited to Owner’s own acts, Owner shall not be liable for any damage Tenant may
sustain thereby and Tenant shall not be entitled to any compensation therefor
nor abatement or diminution of rent nor shall the same release Tenant from its
obligations hereunder nor constitute an eviction.  Tenant shall
indemnify and save harmless Owner against and from all liabilities, obligations,
damages, penalties, claims, costs and expenses for which Owner shall not be
reimbursed by insurance, including reasonable attorney’s fees, paid, suffered or
incurred as a result of any breach by Tenant, Tenant’s agents, contractors,
employees, invitees, or licensees, of any covenant or condition of this lease,
or the carelessness, negligence or improper conduct of the Tenant, Tenant’s
agents, contractors, employees, invitees or licensees.  Tenant’s
liability under this lease extends to the acts and missions of any sub-tenant,
and any agent, contractor, employee, invitee or licensee of any
subtenant.  In case any action or proceeding is brought against Owner
by reason of any such claim, Tenant, upon written notice from Owner, will, at Tenant’s expense,
resist or defend such action or proceeding by counsel approved by Owner in
writing, such approval not to be unreasonably withheld.

     

    Destruction, Fire and Other
Casualty:  9.  (a)  If the demised premises
or any part thereof shall be damaged by fire or other casualty, Tenant shall
give immediate notice thereof to Owner and this lease shall continue in full
force and effect except as hereinafter set forth.  (b) If the demised
premises are partially damaged or rendered partially unusable by fire or other
casualty, the

     

     

    
      
        
        

      

      
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    damages
thereto shall be repaired by and at the expense of Owner and the rent, until
such repair shall be substantially completed, shall be apportioned from the day
following the casualty according to the part of the premises which is
usable.  (c) If the demised premises are totally damaged or rendered
wholly unusable by fire or other casualty, then the rent shall be
proportionately paid up to the time of the casualty and thenceforth shall cease
until the date when the premises shall have been repaired and restored by Owner,
subject to Owner’s right to elect not to restore the same as hereinafter
provided.  (d)  If the demised premises are rendered wholly
unusable or (whether or not the demised premises arc damaged in whole or in
part) if the building shall be so damaged that Owner shall decide to demolish it
or to rebuild it, then, in any of such events, Owner may elect to terminate this
lease by written notice to Tenant, given within 90 days after such fire or
casualty, specifying a date for the expiration of the lease, which date shall
not be more than 60 days after the giving of such notice, and upon the date
specified in such notice the term of this lease shall expire as fully and
completely as if
such date were the date set forth above for the termination of this lease and
Tenant shall forthwith quit, surrender and vacate the premises without prejudice
however, to Owner’s rights and remedies against Tenant under the lease
provisions in effect prior to such termination, and any rent owing shall be paid
up to such date and any payments of rent made by Tenant which were on account of
any period subsequent to such date shall be returned to
Tenant.  Unless Owner shall serve a termination notice as provided for
herein, Owner shall make the repairs and restorations under the conditions of
(b) and (c) hereof, with all reasonable expedition, subject to delays due to
adjustment of insurance chaims, labor troubles and causes beyond Owner's
control. After any such casualty, Tenant shall cooperate with Owner's
restoration by removing
from the premises as promptly as reasonably possible, all of Tenant’s
salvageable inventory and movable equipment, furniture, and other
property.  Tenant’s liability for rent shall resume five (5) days
after written notice from Owner that the premises are substantially ready for
Tenant’s occupancy.  (e) Nothing contained hereinabove shall relieve
Tenant from liability that may exist as a result of damage from fire or other
casualty.  Notwithstanding the foregoing, each party shall look first
to any insurance in its favor before making any claim against the other party
for recovery for loss or damage resulting from fire or other casualty, and to
the extent that such insurance is in force and collectible and to the extent
permitted by law, Owner and Tenant each hereby releases and waives all right of
recovery against the other or any one claiming through or under each of them by
way of subrogation or otherwise.  The foregoing release and waiver
shall be in force only if both releasors’ insurance policies contain a clause
providing that such a release or waiver shall not invalidate the
insurance.  If, and to the extent, that such waiver can be obtained
only by the payment of additional premiums, then the party benefitting from the
waiver shall pay such premium within ten days after written demand or shall be
deemed to have agreed that the party obtaining insurance coverage shall be free
of any further obligation under the provisions hereof with respect to waiver of
subrogation.  Tenant acknowledges that Owner will not carry insurance
on Tenant’s furniture and or furnishings or any fixtures or equipment,
improvements, or appurtenances removable by Tenant and agrees that Owner will
not be obligated to repair any damage thereto or replace the
same.  (f) Tenant hereby waives the provisions of Section 227 of the
Real Property Law and agrees that the provisions of this article shall govern
and control in lieu thereof.

     

    Eminent
Domain:  10.  If all or any material part of the
demised premises shall be acquired or condemned by Eminent Domain for any public
or quasi public use or purpose, then and in that event, the term of this lease
shall cease and terminate from the date of title vesting in such proceeding and
Tenant shall have no claim for the value of any unexpired term of said
lease.

     

     

    
      
        
        

      

      
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    Assignment, Mortgage,
Etc.  11.  Tenant, for itself, its heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, expressly covenants that it shall not assign, mortgage or encumber this
agreement, nor underlet, or suffer or permit the demised premises or any part
thereof to be used by others, without the prior written consent of Owner in each
instance.  Transfer of the majority of the stock of a corporate Tenant
shall be deemed an assignment.  If this lease be assigned, or if the
demised premises or any part thereof be underlet or occupied by anybody other
than Tenant, Owner may, after default by Tenant, collect rent from the assignee,
under-tenant or occupant, and apply the net amount collected to the rent herein
reserved, but no such assignment, underletting, occupancy or collection shall be
deemed a waiver of this covenant, or the acceptance of the assignee,
under-tenant or occupant as tenant, or a release of Tenant from the further
performance by Tenant of covenants on the part of Tenant herein
contained.  The consent by Owner to an assignment or underletting
shall not in any wise be construed to relieve Tenant from obtaining the express
consent in writing of Owner to any further assignment or
underletting.  The consent of Owner to an assignment or sublet shall
not be unreasonably withheld or delayed.

     

    12.  [Reserved]

     

    Access to
Premises:  13.  Owner or Owner’s agents shall have
the right (but shall not be obligated) to enter the demised premises in any
emergency at any time, and, at other reasonable times, to examine the same and
to make such repairs, replacements and improvements as Owner may deem necessary
and reasonably desirable to any portion of the building or which Owner may elect
to perform in the premises after Tenant’s failure to make repairs or perform any
work which Tenant is obligated to perform under this lease, or for the purpose
of complying with laws, regulations and other directions of governmental
authorities.  Tenant shall permit Owner to use and maintain and
replace pipes and conduits in and through the demised premises and to erect new
pipes and conduits therein provided, wherever possible, they are within walls or
otherwise concealed.  Owner may, during the progress of any work in
the demised premises, take all necessary materials and equipment into said
premises without the same constituting an eviction nor shall the Tenant be
entitled to any abatement of rent while such work is in progress nor to any
damages by reason of loss or interruption of business or
otherwise.  Throughout the term hereof Owner shall have the right to
enter the demised premises at reasonable hours for the purpose of showing the
same to prospective purchasers or mortgagees of the building, and during the
last six months of the term for the purpose of showing the same to prospective
tenants and may, during said six months period, place upon the premises the
usual notices “To Let” and “For Sale” which notices Tenant shall permit to
remain thereon without molestation.  If Tenant is not present to open
and permit an entry into the premises, Owner or Owner’s agents may enter the
same whenever such entry may be necessary or permissible by master key or
forcibly and provided reasonable care is exercised to safeguard Tenant’s
property, such entry shall not render Owner or its agents liable therefor, nor
in any event shall the obligations of Tenant hereunder be
affected.  If during the last month of the term Tenant shall have
removed all or substantially all of
Tenant’s property therefrom, Owner may immediately enter, alter, renovate or
redecorate the demised premises without limitation or abatement of rent, or
incurring liability to Tenant for any compensation and such act shall have no
effect on this lease or Tenant’s obligations hereunder.

     

    Vault, Vault Space, Area: 14.  No vaults,
vault space or area, whether or not enclosed or covered, not within the property
line of the building is leased hereunder, anything contained or indicated on any
sketch, blue print or plan, or anything contained elsewere in this lease to the
contrary not withstanding. Owner makes no representation as to the location of
the property line of the building.  All vaults and vault space and all
such areas not within the property line of the building, which Tenant may be
permitted to use and/or occupy, is to be used and/or occupied under a revocable
license, and if any such license be revoked, or if the amount of such space or
area be diminished or required by any federal, state or municipal authority or
public utility, Owner shall not be subject to any liability nor shall Tenant be
entitled to any compensation or diminution or abatement of rent, nor shall such
revocation, diminution or requisition be deemed constructive or actual
eviction.  Any tax, fee or charge of municipal authorities for such
vault or area shall be paid by Tenant, if used by Tenant, whether or not
specifically leased hereunder.

     

     

    
      
        
        

      

      
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    Occupancy:  15.
Tenant will not at any time use or occupy the demised premises in
violation of the certificate occupancy issued for the building of which the
demised premises are a part.  Tenant has inspected the premises and
accepts them as is, subject to the riders annexed hereto with respect to Owner’s
work, if any.  In any event, Owner makes no representation as to the
condition of the premises and Tenant agrees to accept the same subject to
violations, whether or not of record.  If any governmental license or
permit shall be required for the proper and lawful conduct of Tenant’s business,
Tenant shall be responsible for and shall procure and maintain such license or
permit.

     

    Bankruptcy:  16.  (a)  Anything
elsewhere in this lease to the contrary notwithstanding, this lease may be
cancelled by Owner by sending of a written notice to Tenant within a reasonable
time after the happening of any one or more of the following
events:  (1) the commencement of a case in bankruptcy or
under the laws of any state naming Tenant as the debtor; or (2) the making by
Tenant of an assignment or any other arrangement for the benefit of creditors
under any state statute.  Neither Tenant nor any person claiming
through or under Tenant, or by reason of any statute or order of court, shall
thereafter be entitled to possession of the premises demised but shall forthwith
quit and surrender the premises.  If this lease shall be assigned in
accordance with its terms, the provisions of this Article 16 shall be applicable
only to the party then owning Tenant’s interest in this lease.

     

    (b)           It
is stipulated and agreed that in the event of the termination of this lease
pursuant to (a) hereof, Owner shall forthwith, notwithstanding any other
provisions of this lease to the contrary, be entitled to recover from Tenant as
and for liquidated damages an amount equal to the difference between the rental
reserved hereunder for the unexpired portion of the term demised and the fair
and reasonable rental value of the demised premises for the same
period.  In the computation of such damages the difference between any
installment of rent becoming due hereunder after the date of termination and the
fair and reasonable rental value of the demised premises for the period for
which such installment was payable shall be discounted to the date of
termination at the rate of four percent (4%) per annum.  If such
premises or any part thereof be relet by the Owner for the unexpired term of
said lease, or any part thereof, before presentation of proof of such liquidated
damages to any court, commission or tribunal, the amount of rent reserved upon
such reletting shall be deemed to be the fair and reasonable rental value for
the part or the whole of the premises so re-let during the term of the
re-letting.  Nothing herein contained shall limit or prejudice the
right of the Owner to prove for and obtain as liquidated damages by reason of
such termination, an amount equal to the maximum allowed by any statute or rule
of law in effect at the time when, and governing the proceedings in which, such
damages are to be proved, whether or not such amount be greater, equal to, or
less than the amount of the difference referred to above.

     

     

    
      
        
        

      

      
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    Default:  17. (1)  If Tenant defaults in
fulfilling any of the covenants of this lease other than the covenants for the
payment of rent or additional rent; or if the demised premises becomes vacant or
deserted “or if this lease be rejected under § 235 of Title 11 of the U.S. Code
(bankruptcy code);” or if any execution or attachment shall be issued against
Tenant or any of Tenant’s property whereupon the demised premises shall be taken
or occupied by someone other than Tenant; or if Tenant shall make default with
respect to any other lease between Owner and Tenant; or if Tenant shall have
failed, after five (5) days written notice, to redeposit with Owner any portion
of the security deposited hereunder which Owner has applied to the payment of
any rent and additional rent due and payable hereunder or failed to move into or
take possession of the premises within fifteen (15) days after the commencement
of the term of this lease, of which fact Owner shall be the sole judge; then in
any one or more of such events, upon Owner serving a written five (5) days
notice upon Tenant specifying the nature of said default and upon the expiration
of said five (5) days, if Tenant shall have failed to comply with or remedy such
default, or if the said default or omission complained of shall be of a nature
that the same cannot be completely cured or remedied within said five (5) day
period, and if Tenant shall not have diligently commenced during such default
within such five (5) day period, and shall not thereafter with reasonable
diligence and in good faith, proceed to remedy or cure such default, then Owner
may serve a written three (3) days’ notice of cancellation of this lease upon
Tenant, and upon the expiration of said three (3) days this lease and the term
thereunder shall end and expire as fully and completely as if the expiration of
such three (3) day period were the day herein definitely fixed for the end and
expiration of this lease and the term thereof and Tenant shall then quit and
surrender the demised premises to Owner but Tenant shall remain liable as
hereinafter provided.

     

    (2)  If
the notice provided for in (1) hereof shall have been given, and the term shall
expire as aforesaid: or if Tenant shall make default in the payment of the rent
reserved herein or any item of additional rent .herein
mentioned or any part of either or in making any other payment herein
required:  then and in any of such events Owner may without notice,
re-enter the demised premises either by force or otherwise, and dispossess
Tenant by summary proceedings or otherwise, and the legal representative of
Tenant or other occupant of demised premises and remove their effects and hold
the premises as if this lease had not been made, and Tenant hereby waives the
service of notice of intention to re-enter or to institute legal proceedings to
that end. If Tenant shall make default hereunder prior to the date fixed as the
commencement of any renewal or extension of this lease, Owner may cancel and
terminate such renewal or extension agreement by written notice.

     

    Remedies of Owner and Waiver of
Redemption:  18.  In case of any such default,
re-entry, expiration and/or dispossess by summary proceedings or otherwise, (a)
the rent, and additional rent, shall become due thereupon and be paid up to the
time of such re-entry, dispossess and/or expiration, (b) Owner may re-let the
premises or any part or parts thereof, either in the name of Owner or otherwise,
for a term or terms, which may at Owner’s option be less than or exceed the
period which would otherwise have constituted the balance of the term of this
lease and may grant concessions or free rent or charge a higher rental than that
in this lease, (c) Tenant or the legal representatives of Tenant shall also pay
Owner as liquidated damages for the failure of Tenant to observe and perform
said Tenant’s covenants herein contained, any deficiency between the rent hereby
reserved and or covenanted to be paid and the net amount, if any, of the rents
collected on account of the subsequent lease or leases of the demised premises
for each month of the period which would otherwise have constituted the balance
of the term of this lease.  The failure of Owner to re-let the
premises or any part or parts thereof shall not release or affect Tenant’s
liability for damages.  In computing such liquidated damages there
shall be added to the said deficiency such expenses as Owner may incur in
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    expenses,
attorneys’ fees, brokerage, advertising and for keeping the demised premises in
good order or for preparing the same for re-letting.  Any such
liquidated damages shall be paid in monthly installments by Tenant on the rent
day specified in this lease and any suit brought to collect the amount of the
deficiency for any month shall not prejudice in any way the rights of Owner to
collect the deficiency for any subsequent month by a similar
proceeding.  Owner, in putting the demised premises in good order or
preparing the same for re-rental may, at Owner’s option, make such alterations,
repairs, replacements, and/or decorations in the demised premises as Owner, in
Owner’s sole judgment, considers advisable and necessary for the purpose of
re-letting the demised premises, and the making of such alterations, repairs,
replacements, and/or decorations shall not operate or be construed to release
Tenant from liability hereunder as aforesaid.  Owner shall in no event
be liable in any way whatsoever for failure to re-let the demised premises, or
in the event that the demised premises are re-let, for failure to collect the
rent thereof under such re-letting, and in no event shall Tenant be entitled to
receive any excess, if any, of such net rents collected over the sums payable by
Tenant to Owner hereunder.  In the event of a breach or threatened
breach by Tenant of any of the covenants or provisions hereof, Owner shall have
the right of injunction and the right to invoke any remedy allowed at law or in
equity as if re-entry, summary proceedings and other remedies were not herein
provided for.  Mention in this lease of any particular remedy, shall
not preclude Owner from any other remedy, in law or in equity.  Tenant
hereby expressly waives any and all rights of redemption granted by or under any
present or future laws.

     

    Fees and
Expenses:  19.  If Tenant shall default in the
observance or performance of any term or covenant on Tenant’s part to be
observed or performed under or by virtue of any of the terms or provisions in
any article of this lease, then, unless otherwise provided elsewhere in this
lease, Owner may immediately or at any time thereafter and without notice
perform the obligation of Tenant thereunder.  If Owner, in connection
with the foregoing or in connection with any default by Tenant in the covenant
hereunder, makes any expenditures or incurs any obligations for the payment of
money, including but not limited to attorney’s fees, in instituting, prosecuting
or defending any action or proceedings, then Tenant will reimburse Owner for
such sums so paid or obligations incurred with interest and
costs.  The foregoing expenses incurred by reason of Tenant’s default
shall be deemed to be additional rent hereunder and shall be paid by Tenant to
Owner within five (5) days of rendition of any bill or statement to Tenant
therefor.  If Tenant’s lease term shall have expired at the time of
making of such expenditures or incurring of such obligations, such sums shall be
recoverable by Owner as damages.

     

    Building Alterations and
Management:  20.  Owner shall have the right at any
time without the same constituting an eviction and without incurring liability
to Tenant therefor to change the arrangement and or location of public
entrances, passageways, doors, doorways, corridors, elevators, stairs, toilets
or other public parts of the building and to change the name, number or
designation by which the building may be known.  There shall be no
allowance to Tenant for diminution of rental value and no liability on the part
of Owner by reason of inconvenience, annoyance or injury to business arising
from Owner or other Tenant making any repairs in the building or any such
alterations, additions and improvements.  Furthermore, Tenant shall
not have any claim against Owner by reason of Owner’s imposition of any controls
of the manner of access to the building by Tenant’s social or business visitors
as the Owner may deem necessary for the security of the building and its
occupants.

     

     

    
      
        
        

      

      
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    No Representations by
Owner:  21.  Neither Owner nor Owner’s agents have
made any representations or promises with respect to the physical condition of
the building, the land upon which it is erected or the demised premises, the
rents, leases, expenses of operation or any other matter or thing affecting or
related to the demised premises or the building except as herein expressly set
forth and no rights, easements or licenses are acquired by Tenant by implication
or otherwise except as expressly set forth in the provisions of this
lease.  Tenant has inspected the building and the demised premises and
is thoroughly acquainted with their condition and agrees to take the same “as
is” on the date possession is tendered and acknowledges that the taking of
possession of the demised premises by Tenant shall be conclusive evidence that
the said premises and the building of which the same form a part were in good
and satisfactory condition at the time such possession was so taken, except as
to latent defects.  All understandings and agreements heretofore made
between the parties hereto are merged in this contract, which alone fully and
completely expresses the agreement between Owner and Tenant and any executory
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of it in whole or in part, unless such executory agreement
is in writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

     

    End of
Term:  22.  Upon the expiration or other termination
of the term of this lease, Tenant shall quit and surrender to Owner the demised
premises, broom clean, in good order and condition, ordinary wear and damages
which Tenant is not required to repair as provided elsewhere in this lease
excepted, and Tenant shall remove all its property from the demised
premises.  Tenant’s obligation to observe or perform this covenant
shall survive the expiration or other termination of this lease.  If
the last day of the term of this Lease or any renewal thereof, falls on Sunday,
this lease shall expire at noon on the preceding Saturday unless it be a legal
holiday in which case it shall expire at noon on the preceding business
day.

     

    Quiet
Enjoyment:  23.  Owner covenants and agrees with
Tenant that upon Tenant paying the rent and additional rent and observing and
performing all the terms, covenants and conditions, on Tenant’s part to be
observed and performed, Tenant may peaceably and quietly enjoy the premises
hereby demised, subject, nevertheless, to the terms and conditions of this lease
including, but not limited to, Article 34 hereof and to the ground leases,
underlying leases and mortgages hereinbefore mentioned.

     

    Failure to Give
Possession:  24.  If Owner is unable to give
possession of the demised premises on the date of the commencement of the term
hereof, because of the holding-over or retention of possession of any tenant,
undertenant or occupants or if the demised premises are located in a building
being constructed, because such building has not been sufficiently completed to
make the premises ready for occupancy or because of the fact that a certificate
of occupancy has not been procured or if Owner has not completed any work
required to be performed by Owner, or for any other reason, Owner shall not be
subject to any liability for failure to give possessions on said date and the
validity of the lease shall not be impaired under such circumstances, nor shall
the same be construed in any wise to extend the term of this lease, but the rent
payable hereunder shall be abated (provided Tenant is not responsible for
Owner’s inability to obtain possession or complete any work required) until
after Owner shall have given Tenant notice that the premises arc substantially
ready for Tenant’s occupancy.  If permission is given to Tenant to
enter into the possession of the demised premises or to occupy premises other
than the demised premises prior to the date specified as the commencement of the
term of this lease, Tenant covenants and agrees that such occupancy shall be
deemed to be under all the terms, covenants, conditions and provisions of this
lease, except as to the covenant to pay rent.

     

     

    
      
        
        

      

      
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    No
Waiver.  25.  The failure of Owner to seek redress
for violation of, or to insist upon the strict performance of any covenant or
condition of this lease or of any of the Rules or Regulations, set forth or
hereafter adopted by Owner, shall not prevent a subsequent act which would have
originally constituted a violation from having all the force and effect of an
original violation.  The receipt by Owner of rent with knowledge of
the breach of any covenant of this lease shall not be deemed a waiver of such
breach and no provision of this lease shall be deemed to have been waived by
Owner unless such waiver be in writing signed by Owner.  No payment by
Tenant or receipt by Owner of a lesser amount than the monthly rent herein
stipulated shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement of any check or any
letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Owner may accept such check or payment without prejudice to
Owner’s right to recover the balance of such rent or pursue any other remedy in
this lease provided.  All checks tendered to Owner as and for the rent
of the demised premises shall be deemed payments for the account of
Tenant.  Acceptance by Owner of rent from anyone other than Tenant
shall not be deemed to operate as an attornment to Owner by the payor of such
rent or as a consent by Owner to an assignment or subletting by Tenant of the
demised premises to such payor, or as a modification of the provisions of this
lease.  No act or thing done by Owner or Owner’s agents during
the.
term hereby demised shall be deemed an acceptance of a surrender of said
premises and no agreement to accept such surrender shall be valid unless in
writing signed by Owner.  No employee of Owner or Owner’s agent shall
have any power to accept the keys of said premises prior to the termination of
the lease and the delivery of keys to any such agent or employee shall not
operate as a termination of the lease or a surrender of the
premises.

     

    Waiver of Trial by
Jury.  26.  It is mutually agreed by and between
Owner and Tenant that the respective parties hereto shall and they hereby do
waive trial by jury in any action, proceeding or counterclaim brought by either
of the parties hereto against the other (except for personal injury or property
damage) on any matters whatsoever arising out of or in any way connected with
this lease, the relationship of Owner and Tenant, Tenant’s use of or occupancy
of said premises, and any emergency statutory or any other statutory
remedy.  It is further mutually agreed that in the event Owner
commences any summary proceeding for possession of the premises, Tenant will not
interpose any counterclaim of whatever nature or description in any such
proceeding.

     

    Inability to
Perform:  27.  This Lease and the obligation of
Tenant to pay rent hereunder and perform all of the other covenants and
agreements hereunder on part of Tenant to be performed shall in no wise be
affected, impaired or excused because Owner is unable to fulfill any of its
obligations under this lease or to supply or is delayed in supplying any service
expressly or impliedly to be supplied or is unable to make, or is delayed in
making any repair, additions, alterations or decorations or is unable to
supply or is delayed in supplying any equipment or fixtures if Owner is
prevented or delayed from so doing by reason of strike or labor troubles or any
cause whatsover beyond Owner's sole control including, but not limited to,
government preemption in connection with a National Emergency or by reason of
any rule order or regulation of any department or subdivision thereof of any
government agency or by reason of the conditions of supply and demand which have
been or are affected by war or other emergency.

     

    Bills and
Notices:  28.  Except as otherwise in this lease
provided, a bill, statement, notice or communication which Owner may desire
or be required to give to Tenant, shall be deemed sufficiently given or rendered
it, in writing, delivered to Tenant personally or sent by registered or
certified mail addressed to Tenant at the building of which the demised premises
form a part or at the last known residence address or business address of Tenant
or left at any of the aforesaid premises addressed to Tenant, and the time of
the rendition of such bill or statement and of the giving of such notice or
communication shall be deemed to be the time when the same is delivered to
Tenant, mailed, or left at the premises as herein provided.  Any
notice by Tenant to Owner must be served by registered or certified mail
addressed to Owner at the address first hereinabove given or at such other
address as Owner shall designate by written notice.

     

     

    
      
        
        

      

      
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    29.  [Reserved]

     

    Sprinklers:  30.  Anything
elsewhere in this lease to the contrary notwithstanding, or any bureau,
department or official of the federal, state or city government recommend or
require the installation of a sprinkler system or that any changes,
modifications, alterations, or additional sprinkler heads or other equipment be
made or supplied in an existing sprinkler system by reason of Tenant’s business,
or the location of partitions, trade fixtures, or other contents of the demised
premises, or for any other reason, or if any such sprinkler system
installations, modifications, alterations, additional sprinkler heads or other
such equipment, become necessary to prevent the imposition of a penalty or
charge against the full allowance for a sprinkler system in the fire insurance
rate set by any said Exchange or by any fire insurance company, Tenant shall, at
Tenant’s expense, promptly make such sprinkler system installations, changes,
modifications, alterations, and supply additional sprinkler heads or other
equipment as required whether the work involved shall be structural or
non-structural in nature.

     

    31.  [Reserved]

     

    Security:    32. Tenant has deposited with
Owner the sum of
$                     as
security for the faithful performance and observance by Tenant of the terms,
provisions and conditions of this lease; it is agreed that in the event Tenant
defaults in respect of any of the terms, provisions and conditions of this
lease, including, but not limited to, the payment of rent and additional rent,
Owner may use, aptly or retain the whole or any part of the security so
deposited to the extent required for the payment of any rent and additional rent
or any other sum as to which tenant is in default or for any stun which Owner
may expend or may be required to expend by reason of Tenant’s default in respect
of any of the terms, covenants and conditions of this lease, including but not
limited to, any damages or deficiency in the reletting of the premises, whether
such damages or deficiency accrued before or after summary proceedings or other
re-entry by Owner. In the event that Tenant shall fully and faithfully comply
with all of the terms, provisions, covenants and conditions of this lease, the
security shall be returned to Tenant after the date fixed at the end of the Leak
and after delivery of entire possession of the demised premises to Owner. In the
event of a sale of the land and building or leasing of the building, of which
the demised premises form a part, Owner shall have the right to transfer the
security to the vendee or lessee and Owner shall thereupon be released by Tenant
from all liability for the return of such security; and Tenant agrees to look to
the new Owner solely for the return of said security, and it is agreed that the
provisions hereof shall apply to every transfer or assignment made of the
security to a new Owner. Tenant further covenants that it will not assign or
encumber or attempt to assign or encumber the monies deposited herein as
security and that neither Owner nor its successors or assigns shall be bound by
any such assignment. encumbrance, attempted assignment or attempted
encumbrance.

     

    Captions:    33.   The
Captions are inserted only as a matter of convenience and for reference and in
no way define, limit or describe the scope of this lease nor the intent of any
provision thereof.

     

     

     

    
      
        
        

      

      
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    Definitions:    34.   The term
“Owner” as used in this lease means only the owner of the fee or of the
leasehold of the building, or the mortgagee in possession, for the time being of
the land and building (or the owner of a lease of the building or of the land
and building) of which the demised premises form a part, so that in the event of
any sale or sales of said land and building or of said lease, or in the event of
a lease of said building, or of the land and building, the said Owner shall be
and hereby is entirely freed and relieved of all covenants and obligations of
Owner hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, at any such sale, or the said lessee of the building, or of the
land and building, that the purchaser or the lessee of the building has assumed
and agreed to carry out any and all covenants and obligations of Owner
hereunder. The words “re-enter” and “re-entry” as used in this lease are not
restricted to their technical legal meaning. The term “rent” includes the annual
rental rate whether so-expressed or expressed in monthly installments, and
“additional rent.” “Additional rent” means all sums which shall be due to new
Owner from Tenant under this lease, in addition to the annual rental rate. The
term “business days” as used in this lease, shall exclude Saturdays (except such
portion thereof as is covered by specific hours in Article 31 hereof) Sundays
and all days observed by the State or Federal Government as legal holidays and
those designated as holidays by the applicable building service union employees
service contract or by the applicable Operating Engineers contract with respect
to HYAC service.

     

    Adjacent
Excavation—Shoring   35.  If an
excavation shall be made upon land adjacent o the demised premises, or shall be
authorized to be made, Tenant shall afford to the person causing or authorized
to cause such excavation, license to enter upon the demised premises for the
purpose of doing such work as said person shall deem necessary to preserve the
wall or the building of which demised premises form a part from injury or damage
and to support the same by proper foundation without any claim for damages or
indemnity against Owner, or diminution or abate of rent.

     

    Rules and
Regulations   36.  Tenant and
Tenant’s servants, employees, agents, visitors, and licensees shall observe
faithfully, and comply strictly with, the Rules and Regulations annexed hereto
and such other and further reasonable Rules and Regulations as Owner or Owner’s
agents may from time to time adopt.  Notice of any additional rules or
regulations shall be given in such manner as Owner may eject.  In case
Tenant disputes the reasonableness of any additional Rules and Regulation
hereafter made or adopted by Owner or Owner’s agents, the parties hereto agree
to submit the question of the reasonableness of such Rules and Regulation for
decision to the New York office of the American Arbitration Association (or
similar body in the jurisdiction in which the demised premises lies), whose
determination shall be final and conclusive upon the parties
hereto.  The right to dispute the reasonableness of any additional
rule or Regulation upon Tenant’s part shall be deemed waived unless, the same
shall be asserted by service of a notice, in writing upon Owner within ten (10)
days after the giving of notice thereof.  Nothing in this lease
contained shall be construed to impose upon owner any duty or obligation to
enforce the Rules and Regulations or terms, covenant or conditions in any other
lease, as against any other tenant and Owner shall not be liable to Tenant for
violation of the same by any other tenant, its servants, employees, agents,
visitors or licensees.

     

     

     

    
      
        
        

      

      
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    Glass:    37.  Owner shall
replace, at the expense of the Tenant, any and all place and other glass damaged
or broker from any cause whatsoever in and about the demised
premises.  owner may insure, and keep insured, at Tenant’s expense,
all plate and other glass in the demised premises for and in the name of
Owner.  Bills for the premiums therefor shall be rendered by Owner to
tenant at such time as Owner may elect, and shall be due from, and payable by,
Tenant when rendered, and the amount thereof shall be deemed to be, and be paid,
as additional rent.

    

    Estoppel
Certificate:  38.  Tenant, at any time, and from time
to time, upon at least 10 days’ prior notice by Owner, shall execute,
acknowledge and deliver to Owner, and/or to any other person, firm or
corporation specified by Owner, a statement certifying that this Lease is
unmodified in full force and effect (or, it’ there have been modifications, that
the same is in full force and effect as modified and stating the modifications),
stating the dates to which the rent and additional rent have been paid, and
stating whether or not there exists any default by Owner under this Lease, and,
if so, specifying each such default.

     

    Directory Board
Listing:   39.  If, at the
request of and as accommodation to Tenant, and Owner shall place the directory
board in the lobby of the building, one or more names of persons other than
Tenant, such directory board listing shall not be construed as the consent by
Owner to an assignment or subletting by Tenant to such person or
persons.

     

    Successor and
Assigns:   40.  The covenants,
conditions and agreements contained in this lease shall bind and inure to the
benefit of Owner and Tenant and their respective heirs, distributees, executors,
administrators, successors, and except as otherwise provided in this lease,
their assigns.

    

    SEE RIDER
ANNEXED HERETO AND MADE A PART HEREOF.

     

     

     

    
      
        
        

      

      
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    In
Witness Whereof, Owner and Tenant shave respectively signed and sealed
this lease as of the day and year first above written.

    

     

    
      	
              Witness
      for Owner:

            	
              MITCHMAR ATLANTA
      PROPERTIES, INC.

            

    

    

     

     

    ________________________________                        __________________________________

     

     

    
 

    Witness
for
Tenant:                                                                                SID TOOL CO.,
INC.,                                                                

     

     

     

    ________________________________                        By:
___________________________________

                                                      
Its:____________________________________   

     

     

     

     

     

    
      
         

      

      
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    STATE OF
NEW YORK

    

    County
of

    

    On
this      day
of                       ,
19                 ,
before me personally
came               to
me known, who being by me duly sworn, did depose and say that he
resides

     

    in

     

    that he
is
the                                        of

     

    the
corporation described in and which executed the foregoing instrument, as
TENANT:  that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation, and that he signed his name
thereto by like order.

     

    

     

    

     

    

     

    STATE OF
NEW YORK

    

    County
of

    

    On
this      day
of                       ,
19                 ,
before me personally
came            to
me known and known to me to be the individual described in and who, as TENANT,
executed the foregoing instrument and acknowledged to me
that                          he
executed the same.

     

    

     

     

    
      
         

      

      
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    IMPORTANT
— PLEASE READ

     

    RULES
AND REGULATIONS ATTACHED TO AND

     

    MADE
A PART OF THIS LEASE IN ACCORDANCE WITH ARTICLE 36.

     

    1.           The
sidewalks, entrances, driveways, passages, courts, elevators, vestibules,
stairways, corridors or halls shall not be obstructed or encumbered by any
Tenant or used for any purpose other than for ingress or egress from the demised
premises and for delivery of merchandise and equipment in a prompt and efficient
manner using elevators and passageways designated for such delivery by
Owner.  There shall not be used in any space, or in the public hall of
the building, either by any Tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and sideguards.  If said premises are situated on the ground floor of
the building, Tenant thereof shall further, at Tenant’s expense, keep the
sidewalk and curb in front of said premises clean and free from ice, snow, dirt
and rubbish.

     

    2.           The
water and wash closets and plumbing fixtures shall not be used for any purposes
other than those for which they were designed of constructed and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any breakage, stoppage, or damage resulting from the violation of
this rule shall be borne by the Tenant who, or whose clerks, agents, employees
or visitors, shall have caused it,

     

    3.           No
carpet, rug or other article shall be hung or shaken out of any window of the
building; and no Tenant shall sweep or throw or permit to be swept or thrown
from the demised premises any dirt or other substances into any of the corridors
or halls, elevators, or out of the doors or windows or stairways of the building
and Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance in the demised premises, or permit or suffer the demised
premises to be occupied or used in a manner offensive or objectionable to Owner
or other occupants of the buildings by reason of noise, odors, and or
vibrations, or interfere in any way, with other Tenants or those having business
therein, nor shall any animals or birds be kept in or about the
building.  Smoking or carrying lighted cigars or cigarettes in the
elevators of the building is prohibited.

     

    4.           No
awnings or other projections shall be attached to the outside walls of the
building without the prior written consent of Owner.

     

    5.           No
sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by any Tenant on any part of any outside of the demised
premises or the building or on the inside of the demised premises if the same is
visible from the outside of the premises without the prior written consent of
Owner, except that the name of Tenant may appear on the entrance door of the
premises.  In the event of the violation of the foregoing by any
Tenant, Owner may remove same without any liability and may charge the expense
incurred by such removal to Tenant or Tenants violating this
rule.  Interior signs on doors and directory tablet shall be
inscribed, painted or affixed for each Tenant by Owner at the expense of such
Tenant, and shall be of a size, color and style acceptable to
Owner.

     

     

    
      
        
        

      

      
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    6.           No
Tenant shall mark, paint, drill into, or in any way deface any part of the
demised premises or the building of which they form a part.  No
boring, cutting or stringing of wires shall be permitted, except with the prior
written consent of Owner, and as Owner may direct.  No Tenant shall
lay linoleum, or other similar floor covering, so that the same shall come in
direct contact with the floor of the demised premises, and, if linoleum or other
similar floor covering is desired to be used an interlining of builder’s
deadening felt shall be first affixed to the floor, by a paste or other
material, soluble in water, the use of cement or other similar adhesive material
being expressly prohibited.

     

    7.           [Reserved]

     

    8.           Freight,
furniture, business equipment, merchandise and bulky matter of any description
shall be delivered to and removed from the premises only on the freight
elevators and through the service entrances and corridors, and only during hours
and in a manner approved by Owner.  Owner reserves the right to
inspect all freight to be brought into the building and to exclude from the
building all freight which violates any of these Rules and Regulations of the
lease of which these Rules and Regulations are a part.

     

    9.           No
Tenant shall obtain for use upon the demised premises ice, drinking water, towel
and other similar services, or accept barbering or bootblacking services in the
demised premises, except from persons authorized by Owner, and at hours and
under regulations fixed by Owner.  Canvasing, soliciting and peddling
in the building is prohibited and each Tenant shall cooperate to prevent the
same.

     

    10.           [Reserved]

     

    11.           Owner
shall have the right to prohibit any advertising by any Tenant which in Owner’s
opinion, tends to impair the reputation of the building or its desirability as a
loft building, and upon written notice from Owner, Tenant shall refrain from or
discontinue such advertising.

     

    12.           Tenant
shall not bring or permit to be brought or kept in or on the demised premises,
any inflammable, combustable or explosive fluid, material, chemical or
substance, or cause or permit any odors of cooking or other processes, or any
unusual or other objectionable odors to permeate in or emanate from the demised
premises.

     

    13.           Tenant
shall not use the demised premises in a manner which disturbs or interferes with
other Tenants in the beneficial use of their premises.

     

     

     

    
      
        
        

      

      
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    Rider to
the Lease dated as of July 13, 1989, by and between Mitchmar Atlanta Properties,
Inc., as Owner, and Sid Tool Co., Inc., as Tenant.

     

    41.           Inconsistencies.

     

    In the
event of any conflict or inconsistency between the provisions of this Rider and
the printed from of this Lease, the provisions of this Rider shall govern and
control.  Nevertheless, to the greatest extent possible, the
provisions of this Rider shall be construed to be in addition to, and not in
limitation of, the provisions of the printed form of this Lease.

     

    42.           Term;
Commencement Date.

     

    (a)           The
term of this Lease shall commence on a date (the “Commencement Date”) which
shall be the earlier of (i) the date on which Owner’s Work with respect to the
demised premises has been substantially complete or (ii) the date on which
Tenant shall first occupy the demised premises, and shall expire on July 31,
2010 unless sooner terminated pursuant to this Lease.

     

    (b)           Owner’s
Work shall be deemed substantially completed when the demised premises may be
occupied and used by Tenant for the purposes and uses intended by this Lease,
but in any event no earlier than the date on which a certificate of occupancy or
equivalent permitting the demised premises to be occupied for the purposes and
uses intended by this Lease shall have been issued by governmental authorities
having jurisdiction.

     

    (c)           When
the Commencement Date shall have been determined, Owner and Tenant shall, upon
request of either of them, execute and deliver a statement prepared by Owner
setting forth the Commencement Date.  Any failure of Owner or Tenant
to execute such shall not affect the determination of the Commencement
Date.

     

    (d)           From
time to time the Owner shall have the privilege of including within the demised
premises additional lands adjacent thereto upon the conveyance thereof to the
Owner; from and after such date, such additional lands shall be part of the
demised premises under this Lease.

     

    43.           Rent.

     

    (a)           Tenant
shall pay fixed rent at an annual rate of Nine Hundred Sixteen Thousand Three
Hundred and 00/100 Dollars ($916,300.00), payable in equal monthly installments
of Seventy Six Thousand Three Hundred Fifty Eight and 33/100 Dollars
($76,358.33), except if the Commencement Date shall occur on a day other than
the first day of a calendar month, the monthly installment of fixed rent for the
unexpired portion of the month in which the Commencement Date occurs shall be
prorated on the basis of the actual number of days in such month.

     

    (b)           All
payments of rent shall be made by Tenant to Owner without notice or demand, at
such place as Owner may from time to time designate in writing.  The
extension of time for payment of any installment of rent, or the acceptance by
Owner of any money other than current legal tender of the United States of
America shall not be deemed a waiver of the rights of Owner to insist upon
having all other payments of rent made in the manner and at the time herein
specified.

     

     

    
      
        
        

      

      
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    (c)           All
charges, taxes and assessments, together with such other sums as are payable by
Tenant pursuant to the terms of this Lease, shall constitute additional rent,
shall be due and payable as rent under this Lease at the time and in the manner
herein provided, and in the event of the nonpayment of same by Tenant, Owner
shall have all the rights and remedies with respect thereto as Owner has for the
nonpayment of the rent herein.

     

    (d)           It
is the intention of Owner and Tenant that the rent herein specified shall be net
to Owner in each year during the term of this Lease, that all costs, expenses
and obligations of every kind relating to the demised premises which may arise
or become due during the term of this Lease shall be paid by Tenant (except as
may otherwise specifically be provided for in this Lease) and that Owner shall
be indemnified by Tenant as against any such costs, expenses, obligations and/or
liabilities;

     

    (e)           In
the event Tenant shall not have paid the net rent or any additional rent on or
before the tenth (10th) day of the month during which same is due, in order to
partially defray Owner’s administration expenses resulting therefrom which
Tenant acknowledges shall be difficult to measure, Tenant shall pay Owner a late
charge of Twenty-five & 00/100 ($25.00) Dollars per day computed from the
first (1st) day of the month in which said rent or additional rent shall be due
to the date on which payment is made.  This late charge shall be
deemed additional rent and shall, at Owner’s option, be added to the rent for
the month in which the rent shall be due.  The demand for and
collection of the aforesaid late charges shall in no way be construed as a
waiver of any and all remedies that Owner may have under the terms of the within
Lease, either by summary proceedings or otherwise in the event of a default in
payment of rent.

     

    (f)           All
items of additional rents and other such additional costs required to be paid by
Tenant pursuant to the terms of this Lease shall be payable when billed by Owner
to Tenant.  Owner may, at Owner’s election, bill Tenant monthly for
one-twelfth (1/12th) of such amounts estimated to be due based on the
calculations for the prior year, and upon calculation of the actual amount due
for the current period, Tenant shall pay such additional sums as may then be
due.  The obligation to pay the additional amount accrued during the
last year of the term of this Lease shall be payable even though the
calculations thereof are not made until after the termination of the
Lease.

     

    44.           Use
and Occupancy.

     

    (a)           Tenant
represents that it will not at any time use or occupy the demised premises in
violation of the Certificate of Occupancy issued for the demised premises or for
the building of which the demised premises is a part, nor will Tenant use or
permit the use of the demised premises contrary to any covenants, easements or
restrictions now of record affecting the demised premises, to any covenants,
easements or restrictions hereafter of record affecting the demised premises
(provided same do not prohibit the use of the demised premises by Tenant for the
purposes expressly permitted under this Lease) or to any applicable statute,
ordinance or regulation of any federal, state, county or municipal authority
having jurisdiction thereover.

     

     

    
      
        
        

      

      
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    (b)           Tenant
accepts the demised premises and this Lease is subject and subordinate to (1)
any covenants, easements, restrictions and agreements of record and zoning
regulations of the municipality within which the demised premises lies, and (2)
to any covenants, easements, restrictions and agreements hereafter granted
provided same do not unreasonably interfere with Tenant’s use or enjoyment of
the demised premises.  Tenant further agrees at the request of Owner
at any time during the term hereof to execute any and all instruments to effect
subordination to any such encumbrances.

     

    45.           Owner’s
Work; Condition of Demised Premises.

     

    (a)           Prior
to the Commencement Date, at its sole cost and expense, Owner shall construct
the approximately 236,738 square foot building, and the appurtenances thereto,
substantially as shown on the plans prepared by Sanford Epstein and Associates,
P.C., identified on Exhibit B annexed hereto, with such changes and
modifications as Owner shall determine with the consent of Tenant, which consent
shall not be unreasonably withheld or delayed.  Tenant shall, to the
extent available, receive the benefit of all warranties and guarantees received
in connection with the construction of the demised premises.

     

    (b)           Except
as provided at subparagraph (a) above, Tenant has examined the demised premises
and is familiar with the physical condition thereof.  Owner, and
anyone in Owner’s behalf, has not made and does not make any representations
about the demised premises as to the physical condition, expenses, operations,
taxes, water, sewer charges, or the amounts thereof or any other
matters.  Tenant accepts the demised premises in an “AS IS” physical
condition.  Owner shall not be liable or bound by any verbal or
written statements, representations, real estate broker set-ups, or information
pertaining to the demised premises furnished by any real estate broker, agent,
employee, servant or any other person, firm or corporation, unless same are
herein specifically set forth.

     

    46.           Utilities.

     

    (a)           Tenant
shall bear all costs for all electricity, fuel and like utilities used or
consumed in or upon the demised premises during the term of this
Lease.  Tenant shall keep all utility meters measuring utility
services consumed at the demised premises or by the Tenant in good
repair.  Tenant shall arrange to open accounts (in Tenant’s name) with
the utility companies responsible for supplying such utilities, and Tenant shall
be responsible for all deposits required by the utility companies to open such
accounts.  Tenant shall pay the charges made by such utility companies
as and when bills are rendered.

     

    (b)           Owner
reserves the right to interrupt the supply of water, gas, electric, sewer
service, and any other similar utilities for the demised premises, when required
by reason of accident, repairs, alterations, or improvements, until such
repairs, alterations or improvements shall have been completed.  Owner
shall have no responsibility for any failure in the supply of water, fuel,
electricity or other utility, and there shall be no abatement in rent or any
liability on the part of Owner for any failure in the supply of water, fuel,
electricity or other utility.

     

     

    
      
        
        

      

      
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    47.           Taxes.

     

    (a)           For
purposes of the within Lease, the following terms shall have the following
meanings:

     

    (1)           “Taxes”
shall mean all real estate taxes, assessments, special or otherwise, sewer
rents, rates and charges, water charges, county taxes, school taxes or any other
governmental charge of a similar or dissimilar nature, whether general, special,
ordinary or extraordinary, foreseen or unforeseen, which may be levied or
assessed upon or with respect to all or any part of the building of which the
demised premises is a part and the tax lots on which the building, parking lots
and appurtenances are located, by any taxing authority having jurisdiction
thereover, and all payments made in lieu of any of the foregoing.  The
foregoing shall not include the federal or state income taxes of the Owner
(except as provided hereinbelow due to a change in the method of taxation or
taxing authority).  If at any time during the term of this Lease the
methods of taxation shall be altered so that in lieu of or as an addition to the
whole or any part of the taxes, assessments, levies, impositions or charges now
or hereafter levied, assessed or imposed there shall be levied, assessed or
imposed a tax, assessment, levy, imposition, charge or license fee however
described or imposed, then all such taxes, assessments, levies, impositions,
charges or license fees shall be deemed to be Taxes.  “Taxes” shall
also include all taxes and assessments levied, assessed or imposed at any time
by any governmental authority in connection with the receipt of income or rents
from the building of which the demised premises is a part to the extent same
shall be in lieu of, in addition to, or a substitute for, all or a portion of
any of the aforesaid taxes or assessments upon or against the building of which
the demised premises is a part.

     

    If, due
to a future change in the method of taxation or in the taxing authority, a
franchise, license, income, transit, profit or other tax, fee, or governmental
imposition, however, designated, shall be levied, assessed or imposed against
Owner, the land or building, or the rent or profit therefrom, in lieu of, or in
addition to, or as a substitute for, all or any part of said Taxes, then such
franchise, license, income, transit, profit, or other tax, fee, or governmental
imposition shall be deemed to be included within the definition of Taxes for the
purpose hereof.

     

    (2)           “Tax”
shall mean any of the Taxes.

     

    (3)           “Tax
Year” shall mean the fiscal period for which each tax is assessed.

     

    (b)           Tenant
shall pay to Owner upon demand all Taxes payable in any Tax Year falling wholly
or partially within the term of this Lease; Taxes payable for any period not
wholly within the term of this Lease shall be apportioned.

     

    (c)           Tenant
shall not file or prosecute any action, proceeding or claim which, in effect,
seeks to reduce the amount of Taxes, without the written consent of Owner in
each instance.

     

    (d)           In
addition to the foregoing, at Owner’s option, Tenant shall pay to Owner,
together with each monthly installment of fixed rent, commencing with each
monthly installment of fixed rent, one-twelfth (1/12) of the Taxes most recently
determined to be due under the immediately preceding paragraph, which sums shall
be applied to Tenant’s liabilities next coming due thereunder.

     

     

    
      
        
        

      

      
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    48.           Operating
Expenses.

     

    (a)           For
purposes this Lease,

     

    (1)           “Operating
Expenses” shall mean any and all costs and expenses (excluding Taxes) paid or
incurred by Owner, in its sole discretion, in connection with the operation,
servicing, maintenance and repair of the building (or any part thereof) of which
the demised premises is part and the land and the parking lots and other
facilities appurtenant thereto or used in connection therewith (collectively,
the “Facility”).  Operating Expenses shall include, without
limitation, the following:

     

    (i)           All
wages, contract costs and benefits of employees engaged in the operation,
servicing, repair and maintenance of the Facility, such as salaries, wages,
medical, surgical and general welfare benefits (including group life, health,
accident or other types of insurance), pension payments, retirement benefits,
vacation pay, social security taxes, unemployment insurance taxes, payroll
taxes, worker’s compensation, and other charges or benefits payable under law or
under the law or under the terms of any collective bargaining
agreement;

     

    (ii)           The
cost of providing electricity, gas, fuel oil, steam, (or other energy source),
and water, including taxes thereon;

     

    (iii)           The
cost of fire and extended coverage, rent, casualty, liability, war risk, boiler,
sprinkler and other insurance;

     

    (iv)           Charges
under cleaning contracts and other service contracts pertaining to the
operation, servicing, repair, and maintenance of the facility, including without
limitation, grounds maintenance, elevator maintenance, HVAC service contracts
and maintenance, rubbish removal, window cleaning service, security services,
music service, exterminating service, and sanitary control;

     

    (v)           The
cost of repairs and maintenance supplies;

     

    (vi)           Usual
and ordinary professional fees, including without limitation, engineering
consultants, architects, attorneys and accountants; and

     

    (vii)           Management
fees (including amounts paid or allocated to subsidiaries or affiliates of Owner
for such services), provided that the amounts so allocated are reasonable and do
not exceed prevailing rates in the immediate area;

     

    (2)           “Operating
Year” shall mean each calendar year which includes any part of the term of this
Lease.

     

    (b)           Tenant
shall pay, upon demand, for each Operating Year, the amount of the Operating
Expenses for such Operating Year.

     

     

    
      
        
        

      

      
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    49.           Repairs,
Changes and Alterations.

     

    (a)           At
its sole cost and expense, Tenant shall, throughout the term of this Lease, take
good care of the demised premises and the fixtures and appurtenances therein and
sidewalks and loading docks and parking areas about the demised premises, and
make all repairs and replacements thereto (except structural repairs to the
roof, foundation and load bearing walls, which shall, be the responsibility of
Owner unless such repairs or replacements are due to negligence of Tenant, its
agents, servants, employees or invitees, in which event Tenant shall promptly
effect such repairs and replacements to the satisfaction of the Owner) as and
when needed to preserve same in good working order and condition; such repairs
and replacements include, without limitation, repairing the roof, repairing the
parking and loading areas, maintaining in good working order and repairing all
electrical, plumbing, ventilation, air conditioning and heating systems and
replacing all broken glass.  All repairs shall be of quality or class
equal to the original work or condition.  Tenant represents that all
electrical repair and electrical installations shall be done by a reliable and
licensed electrical contractor who shall provide general liability and personal
injury and property damage insurance certificates, in form and substance
satisfactory to Owner, for the mutual benefit of Owner and such other persons as
Owner may designate from time to time, and Tenant, prior to the commencement of
any such electrical work.  In connection therewith, no electrical work
shall be commenced by Tenant or its contractor without the submission to Owner
of a detailed plan with specifications thereon showing the contemplated, repair,
and without receiving the express advance written consent of Owner
thereto.

     

    (b)           Tenant
shall make or suffer no changes and alterations in and to the demised premises
without the prior written consent of Owner.

     

    (c)           Any
change or alteration shall, when completed, be of such a character so as not to
reduce the value of the demised premises below its value immediately before such
change or alteration, and no change or alteration shall at any time be made
which shall impair the structural soundness of the building or diminish the
value thereof, or render it unfit for its intended use.

     

    (d)           Any
repair, change or alteration shall be completed promptly (unavoidable delays
excepted) and in good and workmanlike manner and in compliance with all
applicable permits, ordinances, orders, rules and regulations and requirements
of all federal, state and municipal and local governments, departments,
commissions, boards and officers, and in accordance with the orders, rules and
regulations of the National and State of New York Board of Fire Underwriters or
any other body hereafter exercising similar functions, and Tenant shall procure,
at its own cost and expense, all certificates as required by law and will
deliver copies of same to Owner prior to making any such change or
alteration.

     

    (e)           Tenant
shall not commence any change or alteration, whether or not consented to by
Owner, until Tenant shall have furnished and delivered to Owner a completion
bond or other security satisfactory to Owner, which bond or other security shall
be in an aggregate amount equal to and conditioned for and upon payment of the
entire cost of such alteration or change, and that the same will be fully paid
off by Tenant so that Owner and the demised premises shall be held free from all
claims of every nature and description whatsoever arising out of the
construction of such alteration or change, including payment of all work and
materials connected therewith.

     

     

    
      
        
        

      

      
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    (f)           Tenant
shall maintain, at its own cost and expense, all portions of the demised
premises and the fixtures and appurtenances therein and sidewalks and loading
docks and parking areas about the demised premises, in a clean and orderly
condition, free of vermin, dirt, rubbish, and unlawful obstructions, and shall
remove snow and ice from the parking and loading areas and the sidewalks about
the demised premises.

     

    50.           Additional
Responsibilities of Tenant.

     

    (a)           Tenant
shall maintain the landscaping in good condition, including without limitation,
cutting the lawn at least once each week during the growing season, and
regularly watering the lawn.

     

    (b)           Tenant
shall obtain garbage bin receptacles, be responsible for its own garbage
removal, and shall obtain a contract with a garbage and refuse company as shall
be acceptable to Owner.  Tenant represents that it will not allow
garbage or refuse to accumulate outside or inside of the demised
premises.

     

    (c)           Tenant
shall not (1) install, operate or maintain in the demised premises any
electrical equipment which will overload the electrical system therein, or any
part thereof, beyond its reasonable capacity for proper and safe operation as
determined by Owner in light of the over-all system and requirements therefor,
or which does not bear underwriters’ approval; (2) suffer, allow or permit
any offensive or obnoxious vibration, noise, odor or other undesirable effect to
emanate from the demised premises or the building of which the demised premises
is part.

     

    (d)           Tenant
covenants not to discharge or suffer the discharge of, or to store or suffer the
storage of, any contaminated materials or any other material prohibited by, or
in amounts in excess of those permitted or recommended by, any governmental
authority having jurisdiction thereof or any materials determined by Owner in
its sole and arbitrary discretion to be detrimental to the demised premises, or
the sewage disposal system or drainage systems servicing
same.  Tenant’s operations shall comply with all health, safety and
environmental laws, rule and regulations pertaining thereto and all directions
and orders issued by any governmental authority.  Tenant shall
immediately, upon request, provide unhampered access to all portions of the
demised premises to all governmental authorities charged with inspecting the
demised premises or charged with enforcing or concerned with environmental,
health or safety laws, ordinances, rules or regulations, and Owner and provide a
detailed list of all substances stored or used in or about the demised premises,
together with a description of the amounts, frequency and manner of use
thereof.  Tenant shall promptly take any and all action deemed
necessary by any governmental authority or Owner to properly “clean up” any
spill or discharge of such materials.  Tenant shall hold harmless and
indemnify Owner against all liability arising out of, in connection with, or as
a consequence of, any materials stored, used or present in or about the demised
premises.  As used herein, “materials” shall include, but is not
limited to, chemicals of any kind or nature.

     

    (e)           In
the event the demised premises become infested with vermin, rodents, mice, ants,
silverfish, roaches, waterbugs, pill bugs, termites, beetles, birds, squirrels,
earwigs, clover mites, bees, wasps, or other bug or animal as a result of
Tenant’s use of the premises, in the sole and absolute discretion of Owner, then
and in that event, Tenant agrees to hire, at its own cost and expense, an
exterminating service to remedy the situation.  Upon the failure or
omission of Tenant to remedy the condition as aforesaid within five (5) days
after notice of such condition given by Owner to Tenant or the occurrence of
such a condition on two or more occasions during any twelve month period as
determined by Owner in its sole and arbitrary discretion, Owner may elect to
correct the situation and charge the cost thereof to Tenant plus twenty (20%)
percent profit and overhead, which total amount shall be due and payable to
Owner as additional rent hereunder.  This paragraph shall form a
material term and condition of the within Lease.

     

     

    
      
        
        

      

      
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    51.           Tenant
Certification Required By Lending Institution.

     

    Tenant
agrees that at the request of Owner, and if requested by any lending institution
having or placing a mortgage upon the building of which the demised premises is
a part, within ten (10) days of any such request, Tenant will execute and
deliver a certificate in recordable form, at no charge to Owner, certifying that
at the time of the execution thereof, provided that the aforesaid statements are
true at the time Tenant is requested to provide such certification, the
following: the Lease is unmodified and in full force and effect (or if there
have been modifications, that the same is in full force and effect as modified
and identifying the modifications); that Tenant has accepted possession of the
demised premises; the dates to which the rent and other charges have been paid;
that so far as the person making the certificate knows, Owner is not in default
under any provisions of this Lease.  Tenant shall also certify any
other statements regarding such Lease required by the lending institution,
provided the same are true at the time such certification is
requested.

     

    52.           Mortgagee’s
and Others’ Requirements.

     

    (a)           Tenant
will promptly furnish to Owner and any holder of a mortgage on the premises all
financial information and other information concerning Tenant reasonably
required by Owner or Owner’s mortgagee, and Tenant will execute any documents
reasonably required by Owner or the mortgagee in connection
therewith.

     

    (b)           In
the event of any act or omission by Owner which would give Tenant the right to
terminate this Lease or to claim a partial or total eviction, Tenant shall not
exercise any such right (1) until it shall have given written notice by
certified or registered mail, return receipt requested, of such act or omission
to any such mortgagee whose name and addresses shall have been furnished to
Tenant in writing, at the last addresses so furnished and (2) until a reasonable
period of time for remedying such act or omission shall have elapsed following
the giving of such notice not to exceed sixty (60) business days, provided that
following the giving of such notice, Owner or any such mortgagee, shall with
reasonable diligence, have commenced and continued to remedy such act or
omission or to cause the same to be remedied.

     

    (e)           In
the event a Receiver in a foreclosure action or a purchaser at a sale in an
action to foreclose a mortgage to which this Lease is subordinate, or their
successors or assigns, shall become Owner of the demised premises, then such
Owner shall not be obligated to repair, rebuild or restore the demised premises
after fire or other casualty, or after a partial “taking”, anything to the
contrary contained in this Lease notwithstanding, provided that such Owner gives
notice to Tenant within forty-five (45) days after such action.

     

     

    
      
        
        

      

      
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    53.           Mortgage
of Fee and Subordination of Lease.

     

    (a)           This
Lease is made with the understanding that Owner has and hereafter may from time
to time desire to encumber Owner’s interest in the demised premises with a
permanent mortgage or mortgages or security interest or security interests
granted to a mortgagee (including without limitation, individuals, partnerships,
banks, trust companies, insurance companies, pension trusts, etc.) and may
desire, in connection with the creation of such mortgage or mortgages or
security interest or security interests, to cause the within Lease to be made
subordinate to such mortgage or mortgages or security interest or security
interests.

     

    (b)           Tenant
covenants and agrees with Owner that Tenant will, from time to time, at the
request of Owner and at no charge to Owner, execute an instrument or instruments
in such form as may be required by Owner or by any mortgagee or any other person
holding an interest in the demised premises, so as to entitle it to record the
subordination of the within Lease, and the rights of Tenant thereunder to said
Lease and to the lien of such mortgage or mortgages or security interest or
security interests.  In the event of a foreclosure of such mortgage or
security interest, Tenant shall attorn to the mortgagee or its assigns and shall
execute such instruments evidencing such attornment as requested by such
mortgagee.  The respective parties acknowledge and agree that Tenant’s
refusal to execute any and all such instruments as hereinabove provided shall be
a material breach of this Lease.

     

    (c)           Notwithstanding
reference being made herein to the fact that, under the circumstances herein set
forth, Owner may require Tenant to execute an instrument which will subordinate
the Lease to any and all such mortgages or security interests, nevertheless, the
parties understand and agree that this paragraph constitutes, under the
circumstances referred to herein, the subordination by Tenant of the Lease to
any and all of such mortgages or security interests; the parties hereto intend
that the provisions of this paragraph shall be self-executing and that any
mortgagee may rely upon this paragraph constituting the within Lease subordinate
and inferior to such mortgages or security interests.

     

    54.           Assignment,
Mortgaging, Sublease.

     

    If
Tenant’s interest in this Lease is assigned, whether or not in violation of the
provisions of this Lease, Owner may collect rent from the assignee; if the
demised premises or any part thereof are sublet to, or occupied by, or used by
any person other than Tenant, whether or not in violation of this Lease, Owner,
after default by Tenant under this Lease, may collect rent from the subtenant,
user or occupant.  In either case, Owner shall apply the net amount
collected to the rent reserved in this Lease, but neither any such assignment,
subletting, occupancy, nor use, whether with or without Owner’s prior consent,
nor any such collection, or application, shall be deemed a waiver of any term,
covenant or condition of this Lease or the acceptance by Owner of such assignee,
subtenant, occupant and no such subletting, occupancy or use shall relieve
Tenant from its obligation to obtain the express prior consent of Owner to any
further assignment, subletting occupancy or use.  Tenant agrees to pay
Owner a processing fee and the reasonable attorneys’ fees and disbursements
incurred by Owner in connection with any proposed assignment of Tenant’s
interest in this Lease or any proposed subletting of the demised premises or any
part thereof.  Neither any assignment of Tenant’s interest in this
Lease nor any subletting, occupancy or use of the Premises or any part thereof
by any person other than Tenant, nor any collection or rent by Owner from any
person other than Tenant as provided in this subsection, nor any application of
any such rent as provided in this subsection shall, in any circumstances,
relieve Tenant of its obligation to fully observe and perform the terms,
covenants and conditions of this Lease on Tenant’s part to be observed and
performed.

     

     

    
      
        
        

      

      
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    55.           Insurance.

     

    (a)           Tenant
covenants and represents that during the entire term of this Lease it will
provide and keep in force for the benefit of Owner and others hereafter named by
Owner from time to time general accident and public liability insurance fully
protecting and naming Owner, such other persons as Owner may designate from time
to time and Tenant against any and all liability occasioned by accident,
disaster or incident of negligence, in the amount of not less than One Million
Dollars ($1,000,000.00) Dollars in respect to all injuries in any one accident
or disaster, and in the amount of not less than One Million Dollars
($1,000,000.00) in the event of any damage to property, such insurance to cover
the entire demised premises as well as the sidewalks in front of and adjacent
thereto and parking areas utilized in conjunction therewith.

     

    (b)           All
of said policies shall be obtained by Tenant and such policies or certificates
evidencing same shall be delivered to Owner upon the commencement of the term
hereof together with evidence of the payment of premiums by stamping or
otherwise.  Upon request of Owner from time to time, Tenant, shall
deliver to Owner true, accurate and complete copies of each such
policy.

     

    (c)           All
policies shall be taken in the amounts herein provided with such responsible
companies authorized to do business in the State of Georgia, shall provide that
such coverage may not be amended, modified or terminated without thirty (30)
days prior notice, and shall be of such form and content as Owner may
approve.

     

    (d)           Thirty
(30) days prior to the expiration of any policy or policies of such insurance,
Tenant shall pay the premium of renewal insurance and shall deliver to Owner,
within the said period of time, the certificates of said renewal policies with
evidence of payment of premiums by stamping or otherwise.  If such
premiums or any of them shall not be so paid and the policies or certificates
shall not be so delivered to Owner, Owner may, upon five (5) business days
written notice, procure and/or pay for the same, and the amount so paid by
Owner, with interest thereon at the maximum legal rate of interest per annum
from the date of payment, shall become due and payable by Tenant immediately as
additional rent, it being agreed that payment by Owner of any such premium shall
not be deemed to waive or release the default in payment thereof by Tenant or
the right of Owner to take such action as may be permissible hereunder as in the
case of default in the payment of rent.

     

    (e)           Tenant
shall not violate or permit to be violated any of the conditions or provisions
of any said policies and Tenant shall comply with the requirements of any
company issuing said insurance in order to keep said insurance in full force and
effect.  In the event that any policy shall be cancelled for
non-compliance by Tenant, Tenant shall procure forthwith a substitute policy in
form and content reasonably satisfactory to Owner.

     

     

    
      
        
        

      

      
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    56.           Owner’s
Consent.

     

    Except as
expressly provided in this Lease to the contrary, with respect to any provision
of this Lease which provides, in effect, that Owner shall not unreasonably
withhold or unreasonably delay any consent or any approval, Tenant shall in no
event be entitled to make, nor shall Tenant make, any claim for, and Tenant
hereby waives any claim for, money damages; nor shall Tenant claim any money
damages by way of set-off, counterclaim or defense based upon any claim or
assertion by Tenant that Owner has unreasonably withheld or unreasonably delayed
any consent or approval; Tenant’s sole remedy, except as otherwise expressly
provided in this Lease, shall be an action or proceeding to enforce any such
provision, or for specific performance, injunction or declaratory
judgment.

     

    57.           Failure
To Perform.

     

    Owner
shall in no event be charged with default in the performance of its obligations
hereunder unless and until Owner shall have failed to perform any obligations
within a reasonable time after written notice by Tenant to Owner properly
specifying wherein Owner has failed to perform any such
obligations.  Notwithstanding anything in the Lease herein to the
contrary, Owner shall in no event be charged with or liable for any direct or
consequential damages suffered by Tenant as a result of Owner’s failure to
perform any of its obligations under this Lease, unless such failure shall be
willful.

     

    58.           Parking.

     

    (a)           All
parking spaces and any other parking and loading areas, roadways and driveways
used by Tenant, its personnel and visitors, will be at their own risk and Owner
shall not be liable for any injury to person or property, or for loss or damage
to any automobile or its contents, resulting from theft, collision, vandalism or
any other cause whatsoever.  Owner shall have no obligation whatsoever
to provide a guard or any other personnel or device to patrol, monitor, guard or
secure any parking and loading areas; if Owner does so provide, it shall be
solely for Owner’s convenience, and Owner shall in no way whatsoever be liable
for any acts or omissions of such personnel or device in failing to prevent any
such theft, vandalism, or loss or damage by other cause.

     

    (b)           Owner
reserves the unconditional right to: change any existing or future roads,
driveways, parking and loading and adjacent areas or any parts thereof,
including but not limited to the creation of additional or substituted roads,
driveways, parking and loading or new surface or elevated levels, grades or
structures; make any repairs or alterations it deems necessary in any of the
adjacent and parking and loading areas and to temporarily revoke or modify the
parking and loading rights granted to Tenant for such purposes; discourage
non-tenant parking and loading and do such acts in those areas and improvements
as in the exercise of good business judgment Owner shall deem
advisable.  None of the foregoing acts or events occasioned by Owner
shall create any obligation or liability to Tenant, nor shall Tenant be entitled
to any abatement or reduction for rent by reason thereof, and no such acts or
events shall operate as or be deemed a constructive, express or partial eviction
of Tenant or in any way serve to terminate, modify, diminish or abate the
obligation of Tenant to perform each and every covenant and condition of this
Lease.

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

     

    59.           Signs.

     

    (a)           Tenant
may erect and maintain, at its sole cost and expense, a sign with the prior
approval of Owner, which such approval may be based, in part, upon the location,
size, type, coloring, material composition and overall aesthetics of such sign,
taking into consideration other tenants’ signs or proposed or contemplated
signs.  In addition, Tenant shall be subject to, and shall comply
with, the laws and ordinances of, the governmental authorities having
jurisdiction thereof and the covenants, restriction and agreements affecting the
demised premises.

     

    (b)           Throughout
the term of this Lease, Tenant shall maintain such sign in good
repair.

     

    (c)           Upon
termination of the term of this Lease, Tenant shall, at its sole cost and
expense, remove the sign and repair any damage caused by erection, maintenance
or removal of the sign.

     

    60.           Independent
Provisions.

     

    If any
term or provision of this Lease shall, to any extent, be invalid or
unenforceable, the remainder of this Lease shall not be affected thereby and the
balance of the terms and provisions of this Lease shall be valid and enforceable
to the fullest extent either hereunder or as permitted by law.

     

    61.           Georgia
Law and Non-recording of Lease.

     

    This
Lease shall be construed and enforced in accordance with the laws of the State
of Georgia.  Tenant expressly warrants and represents that it will not
record this Lease.

     

    62.           Interest
on Late Payment of Rent.

     

    Interest
shall accrue at the maximum legal rate as allowed by law on any payment of rent
or additional rent due under this lease if said rent or additional rent is not
paid within ten (10) days after the due date of such payment.  Said
interest, however, shall accrue from the date that the monthly installment of
rent, or the item of additional rent, is due until the date of receipt of same
by Owner.  Said interest charge is intended to compensate Owner for
additional expenses incurred by Owner in processing such late rent payments and
shall be construed as additional rent and shall be due and payable upon
demand.  The payment of the aforesaid interest on the part of Tenant
shall not be deemed a waiver of any or all other remedies available to Owner
under the provisions of the within Lease.

     

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    63.           Restriction
on Rent.

     

    If the
fixed rent or any additional rent shall be or become uncollectible, reduced or
required to be refunded by virtue of any law, governmental order or regulation,
or direction of any public officer of any governmental body pursuant to law (of
the nature of a rent freeze or rent restriction), then Tenant shall enter into
such agreement(s) and take such other action (without additional expense to
Owner) as Owner may reasonably request, and as may be legally permissible, to
permit Owner to collect the maximum fixed rent and additional rent which may,
from time to time during the continuance of such legal rent restriction, be
legally permissible, but not in excess of the amounts of fixed rent or
additional rent payable under this Lease.  Upon the termination of
such rent restriction prior to the expiration date, (a) the fixed rent and
additional rent shall become and thereafter be payable under this lease in the
amount of the fixed rent and additional rent set forth in this Lease for the
period following such termination, and (b) Tenant shall pay to Owner, to the
maximum extent legally permissible, an amount equal to (1) the fixed rent and
additional rent which would have been payable pursuant to this Lease, but for
such legal rent restriction, less (2) the fixed rent and additional rent paid by
Tenant during the period that such legal rent restriction was in
effect.

     

    64.           Broker.

     

    Owner
represents that it has not dealt with any broker in connection with this
Lease.  Tenant represents that this Lease was not brought about by any
broker.  Tenant agrees that if any claim is made for commissions by
any other broker by, through or on account of any acts of Tenant, Tenant will
hold Owner free and harmless from any and all liabilities and expenses in
connection therewith, including Owner’s reasonable attorney’s fees.

     

    65.           Entire
Agreement.

     

    This
Lease constitutes the entire agreement between the parties and contains all the
agreements, conditions, representations or warranties made between the parties
hereto.  No representations other than those herein expressly
contained have been made by either party to the other.  This Lease may
not be modified, altered, amended, changed or added to except in writing and
signed by both parties.

     

    66.           Captions.

     

    The
paragraph captions contained in the within Lease are inserted only as a matter
of convenience and reference, and in no way define, limit or describe the scope
of this Lease, nor the intent of any provision thereof.

     

    67.           Non-liability
of Owner.

     

    (a)           Owner
and its respective agents shall not be liable for any injury or damage to
persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water, rain, snow or leaks from any part of said building of which
the demised premises is a part or from the pipes, appliances or plumbing works
or from the roof, street or sub-surface, or from any other place or by dampness
or by any other cause of whatsoever nature, unless caused by or due to the
negligence of Owner, its agents, servants or employees.  Tenant shall
give immediate notice to Owner in case of fire or accidents in the demised
premises, or of defects therein or in any fixtures or equipment.

     

    (b)           Neither
Owner, nor anyone through whom Owner derives its interest in the demised
premises, nor a successor in interest to any of the foregoing, shall be under
any personal liability with respect to any of the provisions of this Lease, and
if any of the foregoing is in breach or default with respect to its obligations
under this Lease, Tenant shall look solely to the equity of such person or
entity in the land and building for the satisfaction of Tenant’s remedies and in
no event shall Tenant attempt to secure any personal judgment against Owner, or
person or entity through whom Owner derives its interest, or successors thereto,
or any partner, employee or agent of any of them by reason of such
default.

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

     

    70.           Miscellaneous.

     

    (a)           Upon
the commencement of, and at all times during, the term of this Lease, Tenant
shall leave in possession of Owner (or its agents) all keys necessary to obtain
entry to the demised premises and portions thereof.

     

    (b)           It
is understood that in the event of strikes, lockouts, fire and other unavoidable
and unusual shortages or delays in transportation of materials, Acts of God,
National Emergency, war or delays occasioned by other similar causes beyond the
control of Owner, the time by Owner for performance shall be extended for a
period equal to the period of such delay.

     

    (c)           All
obligations of Tenant under this Lease shall survive termination of this
Lease.

     

    (d)           Submission
of this document for examination or signature by Tenant does not constitute an
offer for a lease, and it is not to be effective as a lease or otherwise until
execution and delivery by both Owner and Tenant.

     

    (e)           Each
of the parties hereto, without cost to the other, shall at any time and from
time to time hereafter execute and deliver any and all further instruments and
assurances and perform any acts that the other party may reasonably request for
the purpose of giving full force and effect to the provisions of this
Lease.

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the 13th day of
July, 1989.

     

                    OWNER:

                    MITCHMAR ATLANTA
PROPERTIES, INC.

     

                    By:______________________________________                                                                      

     

                    TENANT:

                    SID TOOL CO.,
INC.

     

                    By:______________________________________                                                                      

     

    

     

     

     

     

     

    31kl04016_ex10-2.htm

    
      

    

     

    Exhibit
10.2

     

     

    
 

    MITCHMAR
ATLANTA PROPERTIES, INC.

     

    151
Sunnyside Boulevard

    Plainview,
New York 11803

    (516)
349-7100

     

    
      

    

     

    First
amendment to the lease dated July 13, 1989 between Mitchmar Delaware Properties,
Inc. and Sid Tool Co., Inc. covering the property located at 6700 Discovery
Boulevard, Mableton, GA.

     

    First,
the size of the building is increased from 236,738 sq. ft. to approximately
376,738 sq. ft. by virtue of a 140,000 sq. ft. warehouse additional constructed
by the owner.

     

    Second,
by virtue of the increase in size of the building paragraph 43 of the rider to
the lease is amended effective September 1, 1996 as follows:

     

    The
annual rent is increased to $1,220,292.00 in equal monthly installments of
$101,691.00.

     

    All other
terms and conditions of the lease remain the same.

     

     

    Mitchmar Properties, Inc.                               Sid Tool Company,
Inc.

     

     

    by:___________________________________                by:___________________________________  

       T.R. Eccleston                                     Shelley
Boxer

    
      Vice
President                                    Vice
President

       

       

      Date: 8/10/1996                                                                    Date: Aug. 10,
1996

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