Document:

Exhibit 10.15

 

 

Great Lakes Dredge &
Dock Company

Summary of the 401(k) Lost Benefit Plan

 

 

The
401(k) Lost Benefit Plan (the “Plan”) is an additional bonus compensation plan
available to the executive officers of Great Lakes Dredge & Dock
Company  (the “Company”), to the extent they
qualify based on their annual compensation levels.  The Plan is intended to compensate the
executive officers for being unable to obtain the maximum tax-deferred benefits
allowed by the Company’s 401(k) Savings Plan, due to the various IRS employee
compensation and plan contribution limitations.EXHIBIT 10.36

 

SUB LEASE AGREEMENT

 

This
Lease Agreement is executed as of the 10th day of March, 2004 , between Kessler Industries, Inc.,
(“Landlord” or “Lessor”) and UFP Technologies, Inc. (“Tenant” or “Lessee”).

 

Whereas,
Landlord has executed a lease dated 1 January, 1996  leasing all of the land and buildings know as
8600 Gateway East or the Kessler Industrial Plaza further described below in
premises from the owners Calvin K. Kessler and Geraldine J. Kessler (“Owners”)
;and

 

Whereas,
Tenant desires to lease space and Landlord is willing to lease the same to
Tenant upon certain terms and conditions ; and

 

Now,
therefore, the parties hereto agree as follows:

 

1.                             Premises.  Landlord hereby leases to Tenant those
certain premises described as follows:

 

A portion
of land and building, consisting of approximately 24,698 square feet,  municipally numbered 8600 Gateway East, El
Paso, Texas, and the fenced lot located to the east of 8600 Gateway East,
bounded by Gateway East to the north and Kessler Drive to the west,
collectively referred to as Kessler Industrial Plaza, (the “Leased Premises”).  The property is further described in the
attached diagram (Exhibit “A” ). 
All of the above property being in the City of El Paso, El Paso County,
Texas, is referred to herein as the “Leased Premises”.

 

2.                             Term, Rental and Option.

 

2.1        Term.  This lease is for thirty six (36) on April 1,
2004 and ending on March 31, 2007, unless sooner terminated or extended as
set out hereafter.

 

2.1.a     Early Termination.  The Tenant may terminate this lease at any
point in time with 90 days written notice to the Landlord on the following
provisions. At the time of the written notice, the Tenant can not be in default
as defined below. Liquidated damages as described in Exhibit “B” and Exhibit “D”
will be due Landlord on early termination.

 

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2.2        Rental.   The tenant shall pay to the landlord monthly
rent during the three lease years of the term, without offset (except as noted
below), deduction or demand, payable in advance on or before the first day of
each and every calendar month the gross sum set forth in Exhibit “B”.

 

2.2.a     Payment Late Charges  If any amount due under this lease is not
received by the landlord by the fifth day of the month after the due date
thereof, Tenant shall pay to the Landlord an additional amount equal to 5% of
the amounts due.  If the amounts are not
received by the landlord by the 15th day following the first due date, the late
charge will be calculated as above except that the rate will be 10%. The
payment of penalty, and nothing in this paragraph should be construed as to
give the Tenant a grace period in which to pay rent.

 

2.2.b    No Offset. Tenant agrees that the
obligation to pay rent is an independent covenant of Tenant, and Tenant waives
any right of offset or other claim against property of Landlord.

 

2.3        Options.  So long as Lessee is not then in default,
Lessor grant to lessee an option to renew the Lease for two additional five
years in terms and conditions including rental as described below. Tenant is to
provide Lessor with written notice of his desire to exercise the option to
renew, which notice must be delivered by Tenant to Lessor no later than 5
months (150 days) prior to the end of the then existing term..

 

Rental
for the first option period shall be calculated as by taking the then existing
monthly rental and multiplying it by 1.075. The resulting rent will be the rent
for the entire first option period.

 

Rental
for the second option period shall be increased to an amount equal to the
product obtained by multiplying the Monthly rent in effect just prior to the
option date by a fraction, the numerator of which shall be the Consumer Price
Index for the second month preceding the option date ( for example, if the
option date is October 1, 2011, then August 1, 2011) and the
denominator of which shall be the Consumer Price Index for the same month of
the prior option date(for example if the first option date October 1,
2006, August 1, 2006) which fraction is hereinafter referred to as the “CPI

 

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fraction”.  This is commonly referred to as a 100% CPI
increase.  In no event shall the monthly
rental for the second option period exceed 110% of monthly rental during the
first option period.  CPI is the same as
defined in Paragraph 2.2, above.

 

3.                                       Use of Leased Premises.  Tenant agrees that during any term hereof,
the Premises will be used and occupied solely for a general manufacturing and
warehousing facility, in the usual and customary manner of similar business in
the El Paso area.  Tenant shall comply
with all law, ordinances, rules and regulations of all governmental and
municipal agencies having jurisdiction over the Premises.  Tenant will not use, occupy or permit the use
or occupancy of the Premises for an unlawful, disreputable or extra hazardous
purpose, or maintain or permit the maintenance of any public or private
nuisance, or keep any substance or carry on or permit any operation which might
emit offensive odors or cause hazardous conditions to exist on or about the
Premises or use any apparatus which might make undue noise or create vibrations
in or about the Premises.  Tenant will
not allow smoking in any of the production areas of the premises.

 

4.                                       Alteration and Removals.  No alterations may be made without the prior
written consent of Landlord.  Unless
otherwise agreed, all fixtures permanently attached to the building shall be
deemed to have attached to the land and become the property of Landlord and
shall not be removed without the prior written consent of the Landlord.  Tenant shall promptly pay all contractors and
materialmen and avoid any liens, and should any such lien be filed, Tenant
shall bond against or discharge the same within 10 days after written request
by Landlord.  All alterations shall
conform to all applicable laws and regulations. 
If Tenant is not in default, Tenant may remove its personal property at
the termination of the term, plus any fixtures for which consent to remove has been
obtained; provided that Landlord must first be satisfied that such removal will
not damage the Premises, or, if some damage will occur, that Tenant at its
expense will repair the same to the satisfaction of Landlord.

 

5.                                       Maintenance and Repair.  Except as described in Exhibit “C”,
attached, the Tenant accepts the Premises in its present condition as a date
hereof.  It is Landlord’s responsibility
to maintain and repair the foundation, roof, permanent structures, exterior
walls (except doors and glass)

 

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and utility lines to
their exterior point of entry; provided, however, that Landlord shall not be
responsible for maintenance necessitated by the acts of Tenant, its agents or
invitees.  It is Tenant’s responsibility
to maintain and keep in good repair the interior of the Premises, including
fixtures, windows, doors, utilities, and all other repairs made necessary by
Tenant’s failure to so maintain; provided, however, Tenant shall not be
responsible for maintenance necessitated by the negligence or intentional
wrongful acts of Landlord or its agents. 
Tenant must deliver the Premises to Landlord upon termination in as good
condition as when leased, reasonable wear and tear excepted.

 

If
Tenant neglects to so maintain the Premises, Landlord shall have the right, at
Landlord’s option (but this clause shall not obligate Landlord so to do or
relieve Tenant from any obligation hereunder),after notice to Tenant at the
Premises, to act as deemed necessary by Landlord to maintain and repair the
Premises without liability for loss or damage to Tenant’s property, and charge
the reasonable cost thereof to Tenant, which sum shall be promptly paid as
additional rent.  If Tenant determines in
good faith that Landlord has neglected to maintain and repair, Tenant may elect
as its sole remedy to notify Landlord in writing in detail of the necessary
repairs, the estimated cost thereof and the intent of Tenant to complete the
same.  If Landlord (1) fails to give
adequate assurance of commencement within 30 days after receipt of notice,(2) fails
to respond, or (3) fails to question in good faith the necessity of all or
a part thereof, Tenant may (if not otherwise in default) complete such repairs
and deduct the reasonable cost thereof on a prorated basis from each rental
installment as it becomes due.

 

6.                                       Casualty to Premises.  In the event of substantial damage (as
hereinafter defined) to the Premises from fire or other cause, either party may
terminate this Lease by giving written notice to the other within 30 day after
the occurrence of such substantial damage. 
“Substantial damage” shall mean damage to or destruction of the
improvements leased to such extent that it will reasonably cost in excess of
40% of the then current replacement cost of all improvements leased to repair
or rebuild such improvement (to the extent only that such improvements were
demised on this date by Landlord) to substantially their condition as they
existed prior to such substantial damage.

 

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If the
improvements are materially damaged or destroyed (as hereafter defined) from a
cause which is not covered by insurance then maintained with respect thereto
and which could not at such time be insured against under standard fire and
extended coverage insurance policies available from companies licensed to do
business in Texas, then, in such event, at Landlord’s option, this Lease may be
terminated effective as of the date of such damage or destruction;  provided that notice of termination under
this paragraph must be given by Landlord to Tenant 30 days after such
occurrence.  “Materially damaged or
destroyed” shall mean damage or destruction to the improvements leased to such
extent that it will reasonably cost in excess of 40% of the then current
replacement cost of all improvements leased to repair or rebuild such
improvements to substantially their condition as they existed prior to such
damage or destruction.

 

Except
as above provided, this Lease shall continue in effect in the event of casualty
to Premises, and Landlord shall, subject to any unavoidable delay, repair or
rebuild the same (to the extent only that such improvements are demised on this
date by Landlord), to substantially the condition in which same were
immediately prior to the occurrence of such damage or destruction, at Landlord’s
cost and expense; provided, however, that in no event shall Landlord’s
obligation to repair or rebuild extend beyond the expenditure of a sum equal to
the total of all insurance proceeds actually received by Landlord from fire and
extended coverage insurance policies maintained with respect to the
Premises.  Should Landlord repair or
rebuild, then Tenant shall, at its sole cost and expense, replace or repair all
signs, fixtures, equipment, display cases and other equipment installed by
Tenant, so as to continue or resume operation of Tenant’s business in the
Premises.

 

Tenant
agrees during any period of reconstruction or repair that Tenant will continue
the operation of its business in the Premises to the extent reasonably
practicable.  Until completion hereunder,
fixed rent payable by Tenant shall be reduced proportionately during any period
in which there is substantial interference with the operation of its business.

 

7.                                       Landlord’s Non-Liability.  Tenant agrees to use and occupy the Premises
at its own risk and hereby releases, to the full extent permitted by law,
Landlord and Landlord’s agents, servants, contractors, and employees, from all
claims and demands of every kind resulting from any accident, damage or injury
occurring therein or thereon.  Landlord
shall not

 

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be liable to Tenant or to
Tenant’s employees, patrons or visitors for any damage to persons or property
caused by any act, omission or neglect of Tenant, its agents or employees.  Landlord shall not be responsible or liable
for any loss or damage to any property or person on the Premises occasioned by
theft, fire, water, acts of God, strike, court or administrative order, or any
other matter beyond Landlord’s control.

 

8.                                       Indemnification of Landlord.  Tenant agrees to indemnify and save harmless
Landlord from and against all claims of whatever nature arising from any act,
omission or negligence of Tenant, or Tenant’s contractors, licenses, invitees,
agents, servants or employees, or arising from any accident, injury or damage,
whatsoever, caused to any person, or to the property of any person occurring
during the term hereof in or about the Premises, where such accident, damage or
injury results or is claimed to have resulted from any act or omission on the
part of Tenant or Tenant’s contractors, agents, servants, or employees.  This indemnity and hold harmless agreement
shall include, without limitation, indemnity against all costs, expenses,
attorney’s fees and liabilities incurred on or in connection with any such
claim or proceedings brought thereon, and the investigation and defense
thereof.

 

9.                                       Condemnation.  If the whole or any part of the Premises
shall be taken by any public authority under the power of eminent domain, then
the terms of this Lease shall cease in the part so taken from the date the
possession of that part shall be acquired for any public purpose, and the rent
shall be paid up to that day. If a portion of the Leased Premises is so taken
as to destroy the usefulness of the Premises for the purpose for which the
Premises were leased, then from that day, the Tenant shall have the right
either to terminate this Lease or to continue in the possession of the
remainder of the same under the terms herein provided, in which latter event
the rental shall be reduced in proportion to the area of the Premises
taken.  All damage awarded for such
taking shall belong to the Landlord except that the Landlord shall not be
entitled to any portion of the award made to the Tenant for loss of its
business or removal of its stock and fixtures.

 

10.                                 Insurance.  Landlord at its expense shall insure the
premises against loss or damage by fire and other casualty as deemed best by
Landlord.  Tenant shall not do anything
which willing way tend to increase insurance rates,

 

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and Tenant shall pay as
additional rental any increase in premiums caused by Tenant’s actions.

 

Tenant
shall it its own expense, during the term of this Lease, keep Tenant’s
merchandise, trade fixtures, furnishings, equipment, and personal property on
the Leased Premises insured against loss or damage by fire, windstorm hail, explosion,
riot, riot attending strike, civil commotion, aircraft, vehicles and smoke for
90% of the replacement value and Tenant shall be responsible for obtaining
adequate plate glass insurance.

 

Tenant
shall obtain at its expense a comprehensive public liability policy with
coverage for bodily injury, property damage liability and personal injury, in a
amount equal to but not less than $1,000,000.00 for any one occurrence and
$2,000,000.00 in aggregate.  An
endorsement showing Landlord as additional insurance shall be attached to the
insurance policy and shown on the certificate of insurance.  Such policies and all certificates of
insurance shall specifically recognize the contractual provisions of this Lease
to include the “waiver of subrogation” and “hold harmless” by endorsement and
written statement.

 

Landlord
agrees to use its best efforts to obtain an endorsement waiving any right of
subrogation against Tenant on insurance which Landlord carries on any claim
that Landlord may have against Tenant.

 

Tenant
shall purchase and maintain, during the terms of the Lease approved statutory
Worker’s Compensation Insurance to include coverage for all active owners or to
obtain an agreed upon substitute where the employees would be covered for their
occupational (on the job) injuries.

 

Tenant
shall provide the Landlord with a certificate of insurance promising
notification to Landlord of cancellation on material or material change to said
policy or policies at least fifteen days prior to the effective date.  All such insurance required to be maintained
by the Tenant shall be carried with one or more responsible insurance companies
duly authorized to transact business in Texas and shall be subject to review by
Landlord or Landlord’s agent upon demand.

 

Landlord
and Tenant and all parties claiming under them mutually release and discharge
each other form all claims and liabilities arising from or caused by any
casualty or hazard covered or required hereunder to the covered in whole or in

 

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part by insurance on the
Leased Premises or in connection with property on or activities conducted on
the Leased Premises and waive any right of subrogation which might otherwise
exist in or accrue to any person on account thereof, provided that such release
shall not operate in any case where the affect is to invalidate or increase the
cost of such insurance coverage.

 

11.                                 Taxes and Utilities.  Landlord shall pay all real property taxes
and assessments and Tenant shall pay any and all taxes on its personal property
before delinquency. Landlord shall similarly pay before delinquency for
electricity.

 

The
tenant acknowledges that he has been advised that there is no gas service to
the premises.  Tenant may at his own
expense cause gas service to be reinstalled either as an adjunct to the
Landlord’s system in which case the Landlord will bill for gas service based on
an internal meter or Tenant may contract directly for the service.

 

12.                                 Events of Default.  It shall be an event of default by Tenant
hereunder if (a)Tenant shall fail to pay rent or other sums agreed to be paid
by Tenant or Landlord as herein required; or (b) Tenant shall fail to
observe or perform any of its obligations hereunder; or (c) at any time
during the term of this Lease (I) the Tenant (Tenant’s assignee or sublessee;
any such person being referred to in this article as the “tenant”)who is
then the holder of this Lease shall file in any court a petition or the
issuance of an order for relief under any section or chapter of the
Bankruptcy Code of 1978, as amended, or under an similar laws or statutes of
the United States of or any state thereof, or for the appointment of a receiver
or trustee of all or a portion of such tenant’s property, or (ii)an involuntary
petition of the kind referred to in the preceding subdivision (I) of this subsection shall
be filed against such Tenant, and such petition shall not be acted or withdrawn
within sixty days after the date of filing thereof, or (iii) the Tenant
shall make a general assignment for benefit of creditors, or (iv) such
tenant shall be adjudicated a bankrupt, or (v) a receiver shall be
appointed for the property of such tenant by the order of a court or competent
jurisdiction (except where such receiver shall be appointed in an involuntary
proceeding, if he shall be withdrawn within sixty days from the date of this
appointment).

 

Landlord
and Tenant acknowledge and agree that this is a Lease for nonresidential real
property, and in the event

 

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that an order for relief
is entered against Tenant under Federal bankruptcy law, the parties agree that “adequate
assurance of future performance” as that term is defined in Section 365 of
the Bankruptcy Reform Act of 1978, as amended, shall required (i)an immediate cash
deposit to Landlord equal to six months payment of monthly rent; or (ii) the
granting of a first lien on the property of Tenant to secure an amount equal to
six months payment of rent Said cash or lien under shall not affect in any way
the continuing requirements of Tenant under this Lease including payment of
rent and performance of all obligations hereunder.  Said adequate assurance of future performance
shall be and remain the property of Landlord until termination of this Lease.

 

13.                                 Landlord’s Remedies.  Upon the occurrence of an event of default
enumerated in subsection (a) or (b) of Paragraph 12 above,
should such default remain uncured after ten days written notice of default to
Tenant in the case of an event of default enumerated in subsection (a) or
after thirty days written notice of default to Tenant in the case of an event
of default enumerated in subsection (b), Landlord may at once thereafter
or at any time subsequent during the existence of such breach or default, enter
into and upon the Leased Premises or any part thereof and repossess the same,
expelling and removing therefrom all persons and property (which property may
be removed and stored at the cost, and for the account of Tenant), using such
force as may be necessary, and either (I) breach, or (ii) without
terminating this Lease, relet the leased premises or any part thereof upon such
terms and conditions as possession of the Leased Premises or the making of
alterations and/or improvements thereto or the reletting thereof shall be construed
as an election on the part of Landlord to terminate this Lease unless written
notice of such intention is given to Tenant. 
If Landlord shall proceed in accordance with the last mentioned
alternative (ii), should the net amount received from reletting the Premises
during any month or part thereof be less than the rent due and owing from
Tenant during such month or part thereof under the terms of this Lease, Tenant
shall pay such deficiency immediately upon calculation thereof and demand
therefore by Landlord.

 

Upon
the occurrence of an event of default enumerated in subsection (c) of
Paragraph 12 above, Landlord may, if Landlord so elects, at any time thereafter
terminate the Lease and the term hereof, upon giving to Tenant ten days’ notice
in writing of Landlord’s intention so to do and this lease and the term hereof
shall expire and come to an end on

 

9

 

the date fixed in such
notice as if said date were the date originally fixed in this Lease for the expiration
hereof.

 

Notwithstanding
the foregoing, and event of default (except the failure to pay the rent or any
other amount due hereunder), the curing of which shall actually require more
than thirty days because of any cause beyond Tenant’s control, shall be deemed
cured by Tenant if Tenant shall have commenced to cure said default within the
thirty day period and shall thereafter have successfully prosecuted the
curation of said default with due diligence.

 

14.                                 Non-waiver.  Any waiver by Landlord hereunder, express or
implied, or any breach of any term, covenant or condition hereof, shall not be
deemed a waiver of such term, condition or covenant for any subsequent breach
of the same, or of any other term, covenant or condition hereof.  Acceptance of rent by the Landlord from the
Tenant or any assignee, subtenant or other successor in interest of Tenant
shall never be construed as a waiver of any breach of any term, condition or
covenant of this lease.

 

15.                                 Insolvency.  If any insolvency proceedings of any kind are
started by or against Tenant, no rights hereunder, at Landlord’s option, shall
accrue to any custodian, receiver or trustee in bankruptcy, assignee, receiver
or officer of a court, or any individual representing the Tenant or the
creditors, and in the event of any of the above contingencies, Landlord, at
Landlord’s option, may cancel this Lease and terminate the contract as of the
date of the happening of such contingency.

 

16.                                 Hold-over Tenant.  In the event Tenant shall hold over after the
expiration of any term hereunder, such holding over shall be a forcible
detainer without consent or shall be construed to be a month to month tenancy
at a monthly rental of double the amount of the rental under Lease per month,
at Landlord’s option.

 

17.                                 Assignment.  Tenant shall have the no right to assign or
sublet the Premises in whole or in part during the Lease term without the prior
written consent of Landlord.   Written
consent of the Landlord will not be unreasonably withheld.  Any merger, consolidation or transfer of
corporate shares of tenant, if tenant is a corporation, so as to result in a
change in the present voting control of the Tenant by the person or persons
owning the majority of said corporation shares in the date of this Lease shall
constitute an 

 

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assignment and be subject
to the conditions of this paragraph. 
Landlord shall have the right to assign or transfer, in whole or in
part, Landlord’s interest herein and in the Premises subject to this Lease, to
any party, and Tenant shall recognize and respect the same.

 

This
lease is and shall always be subject to any mortgages which are now validly
existing on the Premises or which shall at any time hereafter be placed on the
Premises by Landlord, and Tenant agrees to execute and deliver any instrument
deemed necessary to effect the subordination of this Lease to any such
mortgage.  Notwithstanding the foregoing,
so long as Tenant is not in default in the payment of rent provided hereunder,
no action under or pursuant to any mortgagee shall adversely affect this Lease
or the rights of Tenant to continue in possession of the Premises, subject to
the terms of this Lease.

 

19.                                 Inspection.  Landlord shall at all times during reasonable
business hours have the right to enter on the Premises for the purpose of
inspecting and observing the same and to make repairs.

 

20.                                 Quiet Enjoyment & Non-Disturbance.  Landlord and Owners covenants that Tenant,
paying the rents and observing and keeping all of the covenants of this Lease
on his part to be kept and performed, shall lawfully, peaceably and quietly
occupy and enjoy said Premises without any objection or molestation by Landlord
or any other person.

 

21.                                 Amendments.  This lease contains the entire agreement
between the parties hereto and no provision hereof may be changed unless the
parties hereto agree to the same in writing.

 

22.                                 Additional Documents.  The parties hereto will execute and deliver
such additional documents as may be reasonably necessary to further the intent
hereof, including but not limited to memorandum of Lease for recording
purposes, estoppe, certificates and financing statements.

 

23.                                 Notices.  All notices to be given hereunder by either
party shall be in writing and shall be mailed to the other party as the address
indicated with the signatures below, certified, return receipt requested.

 

24.                                 Attorney’s Fees.  Should either party employ an attorney to
preserve, protect or enforce its rights under

 

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this Lease, or with
respect to the Premises, in any court proceedings (administrative or
otherwise), because of the filing of court or other proceedings by the other
party hereto or by third parties, or because of the failure of the other party
to comply fully with the terms hereof, then the party who obtains a order
preserving, protecting or enforcing its rights hereunder (including an order
for termination, rejection or assumption of the Lease, or for adequate
assurance, in any bankruptcy proceedings involving a part or its successors and
assigns) shall be entitled to recover reasonable attorney’s expenses, and
damages incurred, an any equitable relief to which it may be entitled.

 

25.                                 Binding Effect.  This Lease shall be binding upon and inure to
the benefit of the parties hereto, and their respective heirs, personal
representatives, successors and assigns. 
This Lease is performable in El Paso County, Texas and shall be
construed in accordance with the laws of the State of Texas.

 

26.                               Other
Agreements.  The Landlord and Tenant
agree as follows:

 

Security: Landlord maintains
the entire premises under 24 hour security. 
Tenant shall provide to the Landlord and the Security Company a
typewritten list of all persons and vehicles that are to be admitted to the
premises during other than normal business hours.  Any changes in this authorization (additions
or deletions) must be submitted to the guards in writing, in advance.  The list must also designate who is
authorized to change the authorizations and provide copies of their signatures.
An after hours contact number must also be provided to the Security Company.

 

All employees of Tenant accessing the facility on foot
or by vehicle through the manned guard gates must have a standard photo id that
is to be presented to the guard.  A copy
of the format will be provided by the Tenant to the Guard.  The human resources department of the
Landlord will badge the employees of the Tenant with a standard yellow
contractor/tenant badge at no cost for each of the Tenant’s employees.  Replacement badges are billed at $10.00
each.  The Tenant is free to have badges
done somewhere else, but they must be standard and three examples (one for each
gate, and one for human resources) must be provided to the Landlord.

 

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Parking: Due to the limited
amount of parking available inside the fenced area to the West of Kessler Drive
as well as the volume of traffic through the gate, the Landlord will provide
parking for Tenant employees in the fenced parking area to the east of Kessler
Drive.  There is also limited parking
available to Tenant employees and guests in the fenced lot in front of the
Tenant’s office door off of Kessler Drive. 
Tenant may decide who can park in this lot.  All other employees must park east of Kessler
Drive and walk onto the premises.

 

Additional Space: The
Landlord and Tenant agree that if the Tenant requires additional space for his
business, the landlord will make every reasonable effort to accommodate the
Tenant’s needs with additional adjacent space under the same terms and
conditions of this lease at a rental rate to be mutually agreed.

 

Alternate Space: The
Landlord and Tenant agree that Landlord has an obligation to make the best use
of the entire building and property for not only the Landlord’s business, but
for that of all Tenants.  In this regard,
the Landlord and Tenant agree that the Landlord can at its sole expense move
the Tenant to comparable or better space within the building.  Comparable or better shall be defined as
contiguous space that is of comparable or better quality than the leased
premises and provides the Tenant comparable or better work flow and production
efficiency.  Tenant and Landlord will
agree in writing that the space is at least comparable, but neither the
Landlord nor the Tenant will unreasonably withhold their approval of the plan.

 

Exhibit “C”:  Exhibit “C”, attached hereto consists of
a list of specific points and commitments of the Landlord and the Tenant.  It is hereby specifically made a part of this
lease.  If any part of Exhibit “C”
is in conflict with the terms and provisions of this Lease then it is
specifically agreed that Exhibit “C” shall prevail.

 

27.                               Whole
Agreement.  The Landlord and
Tenant agree that this lease represents the whole agreement between the parties
and that there are no verbal agreements or understandings that exist as they
relate to the leased premises.

 

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28.                               Service
Addresses:   All notifications to
either party required or necessitated under this agreement are to be made to:

 

Landlord:

 

Calvin
K. Kessler, President

Kessler Industries, Inc.

P.O. Box 17549

El Paso, Tx. 79917

 

Or By
Federal Express at:

 

Calvin
K. Kessler, President

Kessler Industries, Inc.

8600 Gateway East

El Paso, Texas 79907

 

Tenant:

George
Metcalfe

UFP Technologies, Inc

2175 Partin Settlement Road

Kissimmee,  Florida 34744

 

Or By
Federal Express at the same address

 

 

	
  Property
  Owners:

  	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/  Calvin K.
  Kessler

  	
   

  	
  /s/  Geraldine J.
  Kessler

  	
   

  
	
  Calvin K.
  Kessler

  	
   

  	
  Geraldine J.
  Kessler,

  	
   

  
	
   

  	
   

  	
  Secretary/Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kessler
  Industries, Inc.

  	
   

  
	
  /s/  Geraldine J.
  Kessler

  	
   

  	
  8600 Gateway
  East

  	
   

  
	
  Geraldine J.
  Kessler

  	
   

  	
  El Paso, Texas  79907

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   UFP
  Technologies, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Ronald J.
  Lataille

  	
   

  
	
   

  	
   

  	
  Chief Financial
  Officer

  	
   

  

 

14

 

Exhibit “A” -  Description of Property

 

15

 

Exhibit “B”
-  Rent

 

16

 

Exhibit “C”
-  Repairs and Maintenance to Be Provided
by Kessler and Other Agreements

 

Landlord will assist the
Tenant in moving from its present location to the Leased Premises. This will
include, but not be limited to moving equipment, setting up equipment, and
moving and setting inventory and racks. 
Landlord has personnel available who are qualified and capable of
performing these services.

 

It is specifically agreed
that the Tenant will provide sufficient supervisory personnel to direct the
Kessler employees and will provide a floor plan of where each piece of
equipment, rack and the inventory are to be placed.  Landlord will keep track of the man hours by
person and day and will include the actual cost of the installation labor as
part of the rent that will be subject to the liquidated Damages provisions in Exhibit “B”.

 

Materials required to
install the equipment and/or make other modifications directed by the Tenant
will be accumulated and copies of the tickets as well as the times, above, will
be provided to the Tenant and will be included in the rent that will be subject
to the liquidated Damages provisions in Exhibit “B”.

 

The three offices will be
carpeted using commercial grade glue down carpet.  The carpet will be provided by the Landlord
at its expense.  The labor to install the
carpet will be billed at actual and will be included in the rent that that will
be subject to the liquidated Damages provisions in Exhibit “B”.

 

After moving the
equipment and inventory of the Tenant, Landlord shall place sheet metal around
the exterior of the leased space that is adjacent to the leased space of IOS
(the Box Company) to separate the spaces and to provide a cleaner working
environment.

 

It is agreed that
Landlord will, at its own expense remove the wall, suspended ceiling, and dryer
from the area that that Tenant has designated as “the receiving area”.  This wall is on the east side of the dock
door.  Further,  Landlord and Tenant agree that the area
immediately to the west of the dock door contains the compressor used by
Landlord and is not part of the leased premises and shall be left alone by the
Tenant and his employees.

 

17

 

It is agreed that if the
Tenant desires, the Landlord will provide the personnel and materials to
install additional equipment or make additional modifications to the leased
space as directed by the Tenant.  Any
work requested will be done on a time and materials basis and will be billed to
the Tenant.  All invoices of this nature
are due in 30 days from the date of the invoice.

 

If Tenant desires a
monthly invoice for rent, Landlord will provide it at the local address, or
will fax it to the location designated by the Tenant.  If Tenant does not desire an invoice, then
none will be sent, but in any case, the due dates of the rent are unchanged.

 

Exterior Signage.  Landlord reserves the right to approve all
signs and placards placed on the exterior of the building by any Tenant.  Any exterior signage must be approved in
writing prior to its installation.

 

Security Deposit.  The Landlord does not require a security
deposit.

 

18

 

Exhibit “D” -  Amortization of Moving Expenses

 

19

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