Document:

ex-4_16.htm

Lithium Technology Corporation 10-K/A

 

Exhibit 4.16

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION AVAILABLE UNDER SUCH ACT.

 

AMENDED AND RESTATED CONVERTIBLE PROMISSORY NOTE

 

As of November 15, 2010

FOR VALUE RECEIVED, the undersigned, LITHIUM TECHNOLOGY CORPORATION, a Delaware corporation, with an address at 5115 Campus Drive, 19642 Plymouth Meeting, PA, (the “Company”), hereby promises to pay to the order of ______________, with an address at ____________________ (together with its successors and permitted assigns, the “Holder”), in accordance with the terms hereinafter provided, the aggregate principal amount of € _________ together with all accrued but unpaid interest, all as provided in this Convertible Promissory Note (as the same may be supplemented, modified, amended or restated from time to time in the manner provided herein, the “Note”). As used herein, “$” and “Dollars” shall mean dollars in the lawful currency of the United States of America (the “U.S.”), and “€” and “Euros” shall mean euros in the lawful currency of the European Union.

 

This Note replaces that certain Convertible Promissory Note dated ___________ (the “Replaced Note”, issued by the Company in favor of the Holder. Upon the Issuance Date (as defined below), all of the terms and conditions set forth in the Replaced Note (including, without limitation, all representations and warranties, covenants, events of default thereunder and all the terms and amounts of indebtedness outstanding thereunder, and all repayment and interest provisions in respect thereof), as such terms exist immediately prior to giving effect to this Note, are amended and restated in their entirety hereby.

 

Beginning on the date of the Replaced Note, dated _____________ (the “Issuance Date”), the outstanding principal balance of this Note shall bear interest, in arrears, at a rate equal to 10.0% per annum; provided, however, that such rate shall increase to 18.0% at any time following the occurrence of any payment Event of Default (as hereinafter defined) with respect to such overdue amounts. Interest shall be computed on the basis of a 360-day year of twelve 30-day months and shall be payable in full on the Maturity Date (as hereinafter defined) and shall at any time , for avoidance of doubt, be capitalized, compounded or otherwise itself bear interest. Notwithstanding anything to the contrary set forth in this Note, the interest payable hereunder shall not exceed the maximum rate of interest permissible to be charged under any applicable law. Any amounts paid in excess of such rate shall automatically be considered to be a payment of principal and shall automatically be applied in reduction of the principal due hereunder.

 

The outstanding principal balance of this Note shall be due and payable in its entirety on June 30, 2013 or such earlier date as all amounts hereunder shall (i) be prepaid in full in accordance with this paragraph, (ii) become due and payable in full under Sections 2.2 or 2.3 (iii) be converted into Conversion Securities pursuant to Article III (such earliest date, the “Maturity Date”). Subject to the Company’s right to exercise the Conversion Option pursuant to any other provision hereof, principal amounts due hereunder shall be payable in Euros in immediately available funds, at the address of the Holder first set forth above or at such other place, or by wire transfer of funds to such account of the Holder, as the Holder may designate from time to time in writing to the Company. This Note may, without prior consent of the Holder, be prepaid by the Company at any time without premium or penalty.

 

  

  

  

 

XXVII.

Transfer; Replacement

 

A. Payment on Non-Business Days. Whenever any payment (whether of principal or interest) to be made hereunder shall be due on a date which is not a Business Day, such payment shall be due on the next succeeding Business Day and such next succeeding Business Day shall be included in the calculation of the amount of accrued interest hereunder. For purposes of this Note, “Business Day” shall mean any day, other than any Saturday, Sunday or a public holiday under the laws of the State of Pennsylvania, the State of Delaware or the State of New York.

 

B. Transfer. The Holder may at any time with the written consent of the Company assign, transfer or sell, or pledge, hypothecate or otherwise grant as security, this Note.

 

C. Replacement. Upon receipt of a duly executed and notarized written affidavit from the Holder (certified by a duly authorized and incumbent officer of the Holder) confirming the loss, theft or destruction of the original of this Note (or any replacement original hereof), and without requiring an indemnity bond or other security, or, in the case of the mutilation of such original Note, upon surrender and cancellation of such mutilated Note, the Company shall issue a replacement original Note in lieu of such lost, stolen, destroyed or mutilated Note, which replacement Note, for the avoidance of doubt, shall evidence the same (and not any additional or different) indebtedness as evidenced by such lost, stolen, destroyed or mutilated Note.

 

XXVIII.

Default; Acceleration

 

A. Events of Default. The occurrence of any of the following events shall be an “Event of Default” under this Note:

 

1. the Company shall fail to make any payment of principal or interest on the Maturity Date, subject to Section 1.1;

 

2. default shall be made in the performance or observance of any material covenant contained in this Note and such default shall continue unremedied for a period of ten Business Days after notice thereof from the Holder to the Company;

 

3. any representation or warranty made by the Company in this Note shall prove to have been false, incorrect or breached in any material respect on the date as of which made;

 

4. the Company shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or substantially all of its property or assets, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect), (iv) file a petition seeking to take advantage of any bankruptcy, insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally, (v) acquiesce in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or (vi) take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing;

 

5. a proceeding or case shall be commenced in respect of the Company, without its application or consent, in any court of competent jurisdiction, seeking (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any substantial part of its assets or (iii) similar relief in respect of it under any law providing for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in effect, for a period of 90 days or an order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) against the Company or action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Company and shall continue undismissed, or unstayed and in effect for a period of 90 days; or

 

  

  

  

 

B. Remedies Upon an Event of Default. If an Event of Default shall have occurred and shall be continuing, the Holder of this Note may at any time declare the entire unpaid principal balance of this Note, together with all interest accrued thereon, due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest or notice, all of which are hereby expressly, unconditionally and irrevocably waived by the Company; provided, however, that upon the occurrence of an Event of Default described in Sections 2.1(d) or 2.1(e), the outstanding principal balance and accrued interest and any other amounts due hereunder shall be automatically due and payable. No course of delay on the part of the Holder shall operate as a waiver thereof or otherwise prejudice any rights of the Holder. No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

C. Mandatory Prepayment of the Note.

 

1. In the event of the receipt by the Company of any proceeds from any Insurance/Condemnation Award (as defined below), the Company shall apply within thirty (30) Business Days after the receipt thereof the net after-tax proceeds therefrom to pay in cash the principal and all accrued but unpaid interest hereunder. Any such payment shall be applied first to the accrued but unpaid interest hereunder and then to the outstanding principal hereunder.

 

2. “Insurance/Condemnation Award” means the receipt by the Company of any proceeds received under any casualty insurance polity maintained by or for the benefit of the Company or as a result of the taking of any assets of the Company pursuant to the power of eminent domain or condemnation.

 

XXIX.

Conversion

 

A. Voluntary Conversion Option.

 

1. The outstanding principal amount of this Note and any interest outstanding hereunder shall be convertible (in whole or in part), at the option (the “Voluntary Conversion Option”) of the Holder, at any time until the Maturity Date (the “Conversion Period”), into such number of the Company’s shares of common stock, $0.01 par value per share (the “Common Stock”), equal to the quotient (rounded upward to the nearest whole share of Common Stock) of (A) the amount of unpaid principal and interest outstanding hereunder being converted from Euros into Dollars based upon an exchange rate of 0.75455 Euros per one Dollar, the Issuance Date exchange rate, divided by (B) the Conversion Price (as hereinafter defined) per share of Common Stock then in effect (such shares of Common Stock being the “Conversion Securities”); provided, that the maximum number of Conversion Securities available under the Voluntary Conversion Option shall be as set forth in Exhibit A. For purposes hereof, “Conversion Price” shall mean $0.024, as such price shall be appropriately adjusted (as determined in good faith by the Chief Financial Officer, Chief Accounting Officer or equivalent officer of the Company) from time to time in the event of any equity split, dividend, recapitalization, reclassification or similar event by the Company with respect to its equity securities.

 

2. The Holder may, at any time and from time to time during the Conversion Period, may exercise the Voluntary Conversion Option. To convert this Note (in whole or in part) in accordance with Section 3.1(a), the Holder shall deliver written notice of such exercise, substantially in the form of Exhibit B to this Note, with appropriate insertions (the “Voluntary Conversion Notice”), to the Company at its address as set forth herein. The date upon which the conversion shall be effective (the “Conversion Date”) shall be deemed to be the date set forth therefore in the Voluntary Conversion Notice. Within five Business Days after the date of delivery of the Conversion Notice to the Holder, the Company shall deliver to the Holder (the date of such delivery, the “Delivery Date”) one or more certificates representing the Conversion Securities, such certificates being deemed to be issued and outstanding as of the Conversion Date.

 

  

  

  

 

3. The Company shall provide the Holder at least 5 days prior written notice of any anticipated repayment or prepayment of this Note.

 

B. Forced Conversion Option.

 

1. The outstanding principal amount of this Note and any interest outstanding hereunder shall be convertible (in whole or in part), at the option (the “Forced Conversion Option”) of the Company, at any time, into such number of the Company’s shares of common stock, $0.01 par value per share (the “Common Stock”), equal to the quotient (rounded upward to the nearest whole share of Common Stock) of (A) the amount of unpaid principal and interest outstanding hereunder being converted from Euros into Dollars based upon an exchange rate of 0.75455 Euros per one Dollar, the Issuance Date exchange rate, divided by (B) the Conversion Price (as hereinafter defined) per share of Common Stock then in effect (such shares of Common Stock being the “Conversion Securities”. For purposes hereof, “Conversion Price” shall mean $0.024, as such price shall be appropriately adjusted (as determined in good faith by the Chief Financial Officer, Chief Accounting Officer or equivalent officer of the Company) from time to time in the event of any equity split, dividend, recapitalization, reclassification or similar event by the Company with respect to its equity securities.

 

2. To exercise the Forced Conversion Option in accordance with Section 3.2(a), the Company shall deliver written notice of such exercise, substantially in the form of Exhibit C to this Note, with appropriate insertions (the “Forced Conversion Notice”), to the Holder at its address for notices as set forth herein. The date upon which the conversion shall be effective (the “Conversion Date”) shall be deemed to be the date set forth therefore in the Conversion Notice. Promptly after the date of delivery of the Conversion Notice to the Holder, the Company shall deliver to the Holder (the date of such delivery, the “Delivery Date”) one or more certificates representing the Conversion Securities, such certificates being deemed to be issued and outstanding as of the Conversion Date.

 

3. The Company shall provide the Holder at least 5 days prior written notice of any anticipated repayment or prepayment of this Note.

 

C. Certain Rights of the Holder. Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive distributions or to consent or to receive notice as a member or shareholder in respect of any meeting of members or shareholders for the election of directors (as the case may be) of the Company or of any other matter, or any other rights as a shareholder of the Company.

XXX.

Secured Nature of the Note

All obligations of the Company under this Note are and will be secured by the accounts receivable of the Company, the Company hereby represents and warrants to the Holder as follows:

A. A.The Company agrees to pledge in favor of all subscribers of this Note the accounts receivables it holds now or will hold in the future.

 

B.The Company agrees not to grant any security interest in any form or fashion in the pledged assets for any other Note or any other debt, without prior written consent from the Holder.

 

C.So long as no Event of Default (as defined in Article II of this Note) shall have occurred and be continuing:

 

  

  

  

 

(i) the Company shall be entitled to exercise any and all rights pertaining to the pledged assets or any part thereof for any purpose not inconsistent with the terms of this article and necessary for the normal course of business; and

 

(ii) the Company shall be entitled to receive and retain any and all payments paid or made in respect of the pledged assets for use in the normal course of business.

XXXI.

Representations and Warranties of the Company

 

The Company hereby represents and warrants to the Holder as follows:

 

A. Organization. The Company is a corporation duly organized and validly existing under the laws of the State of Delaware and has the power and authority to enter into this Note and to carry out the transactions contemplated hereby. The Company has the requisite corporate power and authority to own, lease and operate the properties used in its business and to carry on its business as currently conducted and currently contemplated to be conducted.

 

B. Authority. The Company has the corporate power and authority to enter into this Note and to perform its obligations hereunder. The execution, delivery and performance by the Company of this Note and the consummation by the Company of the transactions contemplated hereby have been duly authorized and approved by the Board of Directors of the Company and no other corporate proceedings on the part of the Company or any shareholder are necessary to authorize and approve this Note and the transactions contemplated hereby. This Note has been duly executed and delivered by the Company and constitutes the valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefore may be brought.

 

C. Consents and Approvals. There is no requirement applicable to the Company which has not already been satisfied to make any filing with, or to obtain any permit, authorization, consent, waiver or approval of, any person (including, but not limited, the Board of Directors and shareholders of the Company) or any governmental or regulatory authority as a condition to the lawful consummation by the Company of the issuance of the Conversion Securities or any other transaction contemplated by this Note, except for securities filings which can legally be made after such consummation(s).

 

D. No Violation. Neither the execution and delivery of this Note by the Company nor the consummation of the transactions contemplated hereby will (i) conflict with or result in any breach of any provision of the Company’s Restated Certificate of Incorporation, as amended through the Issuance Date, or Bylaws, as amended through the Issuance Date, (ii) result in a default or constitutes an event of default or a breach (or gives rise to any right of termination, cancellation or acceleration, or result in any Encumbrance (as hereinafter defined) upon any property or assets of the Company) under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, agreement, lease or other instrument or obligation to which the Company is a party or by which the Company any of its respective properties or assets is bound, or (iii) violate any order, writ, injunction, decree, statute or regulation or any other restriction of any kind or character applicable to the Company or any of its respective properties or assets.

 

  

  

  

 

E. SEC Reports; Financial Statements. The Company has filed all reports required to be filed by it under the Securities Act of 1933 as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or Section 15(d) of the Exchange Act, for the three years preceding the Issuance Date (or such shorter period as the Company was required by law to file such material) (the foregoing materials, including the exhibits thereto, being collectively referred to herein as the “SEC Reports”). The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. Amper, Politziner & Mattia P.C. (now EisnerAmper LLP), which have certified certain financial statements of the Company and its consolidated subsidiaries included in the SEC Reports, are independent public accountants as required by the Securities Act, the Exchange Act and the respective rules and regulations of the Commission thereunder and are registered and in good standing with the Public Company Accounting Oversight Board in accordance with the Sarbanes-Oxley Act of 2002.

 

F. Material Changes. Since December 31, 2009, other than as described in registration statements and reports filed with the Commission, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its holders of Common Stock or other capital stock, or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or affiliate, except pursuant to existing Company stock option plans. 

 

G. Certain Definitions. For purposes of this Note, the following terms shall have the respective definitions set forth below:

 

1. “Encumbrance” shall mean any lien, charge, claim, pledge, security interest, conditional sale agreement or other title retention agreement, lease, mortgage, security agreement, right of first refusal, option, restriction, tenancy, license, covenant, right-of-way, easement or other encumbrance (including the filing of, or agreement to give, any financing statement under the Uniform Commercial Code or any other law of any jurisdiction).

 

2. “Material Adverse Effect” shall mean any material adverse change in the business, operations or assets of the Company, financial or otherwise, taken as a whole with its Subsidiaries.

 

3. “Person” shall mean any individual, corporation, partnership, joint venture, trust, unincorporated organization, limited liability company, estate, association, joint stock company, company other form of business or legal entity or governmental authority.

 

4. “Subsidiary” shall have the meaning provided in Rule 12b-2 under the Exchange Act.

 

XXXII.

Covenants of the Company

 

A. The Company shall not declare or pay any dividend or other distribution to any of its shareholders until this Note has been paid in full or converted in full in accordance with the terms hereof.

 

B. The Company initially will take steps to reserve Common Stock a number of shares of Common Stock for the Note equal to 130% of the quotient of (i) the amount of unpaid principal and interest outstanding hereunder divided by (ii) the Conversion Price as of the Issuance Date. Thereafter, as long as the Note is outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of this Note, 130% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion at the then-effective Conversion Price of the Note (the “Required Reserve Amount”).

 

  

  

  

 

C. If at any time while this Note remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of this Note at least a number of shares of Common Stock equal to the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than 90 days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its shareholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each shareholder with a proxy statement and shall use its best efforts to solicit its shareholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the shareholders that they approve such proposal.

 

XXXIII.

Miscellaneous

 

A. Governing Law. This Note is being delivered as a sealed instrument in the State of Delaware and shall be governed by and construed and enforced in accordance with the laws of the State of New York (regardless of the laws that might otherwise govern under applicable principles of conflicts of law of such State).

 

B. Headings; Interpretation. Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose. The terms “hereof”, “hereunder” and similar expressions refer to this entire Note and not to any particular provision hereof. Unless otherwise specified, words importing the singular include the plural, words importing any gender include every gender and words importing persons include bodies corporate and unincorporate and (in each case) vice versa.

 

C. Costs and Expenses. Each of the Company, on the one hand, and the Holder, on the other hand, shall bear all of its own costs and expenses (including attorneys’ fees and expenses) incurred in connection with the negotiation, execution and delivery of this Note. In the event of litigation hereunder, the non-prevailing party shall pay all reasonable out-of-pocket costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by the prevailing party.

 

D. Binding Effect. The obligations of the Company and the Holder set forth herein shall be binding upon the successors and assigns of each such party, whether or not such successors or assigns are permitted by the terms hereof.

 

E. Amendments. This Note may not be modified or amended in any manner except in a writing executed by the Company and the Holder.

 

F. Compliance with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell or otherwise dispose of this Note or any securities acquired upon conversion of this Note in the absence of a registration statement in effect with respect thereto under the Securities Act except pursuant to an exemption from registration under the Securities Act and, if requested, delivery of an opinion of counsel reasonably satisfactory to the Company that such registration is not required. Any Note issued in substitution or replacement for this Note, as well as any securities acquired upon conversion thereof, shall be stamped or imprinted with a legend in substantially the following form:

 

  

  

  

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION AVAILABLE UNDER SUCH ACT.”

 

G. Jurisdiction. Each of the Company and the Holder hereby irrevocably consents and submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York in connection with any dispute arising out of or relating to this Note, waives any objection to venue in such District (unless such court lacks jurisdiction with respect to such dispute, in which case, each of the parties hereto irrevocably consents to the jurisdiction of the courts of the State of New York in connection with such dispute and waives any objection to venue in New York).

 

H. No Assignment by Company. The Company shall not be permitted to assign any of its rights or obligations under this Note, and any such assignment shall be null and void ab initio.

 

I. Company Waivers.

 

1. Except as otherwise specifically provided herein, the Company and all others that may become liable for all or any part of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement of this Note, and do hereby consent to any number of renewals of extensions of the time or payment hereof and agree that any such renewals or extensions may be made without notice to any such persons and without affecting their liability herein and do further consent to the release of any person liable hereon, all without affecting the liability of the other persons, firms or corporations liable for the payment of this Note AND DO HEREBY WAIVE TRIAL BY JURY.

 

2. No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto, shall operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights on any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

3. THE COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION AND, TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

J. Notices. All notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given upon receipt if personally delivered, mailed or transmitted by recognized international courier service (return receipt requested) or transmitted by telecopier (with receipt acknowledged by the recipient or confirmed electronically) to the respective addresses set forth on the first page hereof, or to such other address as the person to whom notice is to be given may have previously furnished to the other persons in writing in the manner set forth above.

 

K. Counterparts. This Note may be executed in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

  

  

  

 

IN WITNESS WHEREOF, this Convertible Promissory Note has been executed and delivered by the Company as of the date first written above.

 

	 	

COMPANY:

	 
	 	 	 	 	 
	 	

LITHIUM TECHNOLOGY CORPORATION

	 
	 	 	 	 	 
	 	By:	 	 
	 	 	

Name:

	

Theo M.M. Kremers

	 
	 	 	

Title:

	

CEO

	 

 

 

	

Accepted and agreed:

	 
	 	 	 	 
	

HOLDER:

	 
	 	 	 	 
	 	 	 	 
	By:	 	 
	 	

Name:

	 	 
	 	

Title:

	

 

	 

 

 

 

 

 

 

EXHIBIT A : VOLUNTARY CONVERSION

	
Date

	
Principal

Amount (€)

	
Exercise Price

	
Maximum Number of Common

Shares

	 	
€

	
$0.024

	
  

	
Maturity in Years

	
Interest

Amount (€)

	
Exercise Price

	
Maximum Number of Common

Shares

	
2.49

	
€ 

	
$0.024

	
  

 

  

  

  

 

EXHIBIT B

 

NOTICE OF VOLUNTARY CONVERSION

 

(To be executed by the Holder in order to Convert the Convertible Promissory Note)

in whole / in part *

	
TO:

	
LITHIUM TECHNOLOGY CORPORATION

The undersigned hereby irrevocably elects to convert € ________ of the principal amount and accrued interest of the above Note into shares of Common Stock of Lithium Technology Corporation, according to the conditions stated therein, as of the Conversion Date written below.

 

	
Conversion Date:

	 	 
	
Applicable Conversion Price:

	 	
$0.024

	
Applicable Exchange Rate:

	 	
0.75455

	
Signature:

	 	 
	
Name:

	 	 
	
Address:

	 	 
	
Amount to be converted (Principal):

	 	
€ 

	
Amount to be converted (Interest):

	 	
€ 

	
Amount of Note unconverted (Principal):

	 	
€ 

	
Amount of Note unconverted (Interest):

	 	
€ 

	
Conversion Price per share:

	 	
$ 

	
Number of shares of Common Stock to be issued:

	 	 
	
Please issue the shares of Common Stock in the following name and to the following address:

	 	 
	
Issue to:

	 	 
	
Authorized Signature:

	 	 
	
Name:

	 	 
	
Title:

	 	 
	
Phone Number:

	 	 
	
Broker DTC Participant Code:

	 	 
	
Account Number:

	 	 

* elect what is applicable.

 

  

  

  

 

EXHIBIT C

 

NOTICE OF FORCED CONVERSION

 

(To be executed by the Company in order to Convert the Convertible Promissory Note)

in whole / in part *

	
TO:

	 

The undersigned hereby irrevocably elects to convert € ___________ of the principal amount and accrued interest of the above Note into shares of Common Stock of Lithium Technology Corporation, according to the conditions stated therein, as of the Conversion Date written below.

 

	
Conversion Date:

	 	 
	
Applicable Conversion Price:

	 	
$0.024

	
Applicable Exchange Rate:

	 	
0.75455

	
Signature:

	 	 
	
Name:

	 	 
	
Address:

	 	 
	
Amount to be converted (Principal):

	 	
€ 

	
Amount to be converted (Interest):

	 	
€ 

	
Amount of Note unconverted (Principal):

	 	
€ 

	
Amount of Note unconverted (Interest):

	 	
€ 

	
Conversion Price per share:

	 	
$ 

	
Number of shares of Common Stock to be issued:

	 	 
	
Please issue the shares of Common Stock in the following name and to the following address:

	 	 
	
Issue to:

	 	 
	
Authorized Signature:

	 	 
	
Name:

	 	 
	
Title:

	 	 
	
Phone Number:

	 	 
	
Broker DTC Participant Code:

	 	 
	
Account Number:

	 	 

* elect what is applicable.ex-10_41.htm

Lithium Technology Corporation 10-K/A

 

  

  

Exhibit 10.41

LEASE AGREEMENT

THIS AGREEMENT OF LEASE, made this 29th day of October, by and between Lithium Technology Corporation, as Lessee, and W&J Enterprises, a Virginia Limited Liability Company as Lessor;

 

WITNESSETH: Lessor does by these presents lease and demise unto the Lessee the following described property being situated in the City of Fairfax, Virginia, to-wit:

 

	
  

	
Approximately 2,000 square feet located at:

 

	
  

	
10379-B Democracy Lane, Fairfax VA 22030

 

The “Common Elements” shall be separate and apart therefrom, but Lessee shall enjoy the rights in the common elements shared by all the owners and tenants of the Office Condominium. Any areas in the Office Condominium Development that are not leased to Lessee or any other person or entity, and areas that are not included within any Condominium Unit (as defined in the Virginia Code) shall be denoted as “Common Elements”. The “Common Elements” shall be shared by Lessee with other lessees, or occupants, or any other person who, or entity that, may be entitled to the use thereof. Nothing in this lease shall be construed to prevent the Unit Owners Association from modifying such "Common Elements" or from adding to or changing any buildings solely at the Association’s discretion.

 

TERM. The initial term of the lease shall be 18 months, commencing January 1, 2011 and ending June 30, 2012, unless sooner terminated or extended pursuant to any provision hereof.

 

EARLY ACCESS. Provided that Lessee has paid its security deposit and first month’s rent in-full, transferred the utility accounts into its name, and delivered proof of insurance to Lessor in advance, Lessee shall be permitted access to the premises no earlier than December 1, 2010, at no additional charge.

 

1. MINIMUM RENT. The minimum rent for the lease term shall be $48,000.06 payable in eighteen installments of $2,666.67 in advance on or before the first day of each month. Rent for any period during the term hereof which is for less than one month shall be a prorata portion of the monthly rent. Time is of the essence for these payments.

 

2. CONDOMINIUM FEES: Lessor agrees to pay all condominium fees assessed by the applicable Condominium Association established, or to be established, within the Office Condominium Development, in strict accordance with any payment schedule that has, or may be prescribed by the Condominium Association, and any failure to make such payment shall constitute a default under this lease. Lessee shall reimburse Lessor for only the increase, if any, in the condominium fee over the Base Year 2011, which is currently $368.81 per month.

3. TAXES: Lessor agrees to pay all taxes assessed by the applicable municipality, in strict accordance with any payment schedule that has, or may be prescribed by the municipality, and any failure to make such payment shall constitute a default under this lease. Lessee shall reimburse Lessor for only the increase, if any, in the taxes over the Base Year 2011, which is currently $443.05 per month. Lessee shall pay all personal property and any other taxes that may be levied against Lessee.

 

4. UTILITIES. Lessee agrees to have the electricity transferred from Lessor to Lessee on or before the Lease Commencement Date and post all deposits or advanced payments. Lessee further agrees to pay all electric bills promptly. Lessor shall pay for the water and sewer for demised premises. Lessee shall be responsible for all telephone, computer network, and internet service, connections, maintenance and repairs.

 

  

  

  

 

5. DEPOSIT. In addition to the base rental specified above, Lessee shall tender a payment in the amount of ­­­­­­­­­­­­­­­$5,333.34, to Lessor on the date this lease is executed. Provided that Lessee remains in good-standing and is not in default of this lease, half of said payment ($2,666.67) shall be credited to Lessee’s last month’s rent for June 2012, and the remainder ($2,666.67) of said payment shall be as security for return of the demised premises in proper condition at the end of the lease term or on earlier termination or forfeiture of this lease, and shall not be considered to be in satisfaction of any installment of rent that may become due and payable by Lessee during the term (including option periods) of the lease, unless Lessee is expressly notified in writing, by Lessor. If the lease extension option is not exercised, then the full amount of the security deposit less any amounts that Lessor must apply to restore the demised premises to the same condition that existed prior to Lessee’s taking possession thereof, reasonable wear and tear excepted, shall be refunded to Lessee within sixty (60) days after expiration of the lease, including any option periods. Said deposit will be held in a non-interest bearing account. The use, application or retention of the security deposit or any portion thereof by Lessor shall not prevent Lessor from exercising any other right or remedy provided by this lease or by law and shall not operate as a limitation on any recovery to which Lessor may be entitled.

 

6. EXTENSION OPTION. Subject to Lessor’s approval and provided that Lessee is in possession of the demised premises and is in good-standing with all rental and other payments due under this lease, Lessee may elect to renew this lease at the expiration of the initial term at the current market rate. Lessor shall provide Lesee a written statement of the current renewal rate ninety (90) days prior to the expiration of the initial term. An election shall be made by Lessee’s serving written notice to Lessor no later than sixty (60) days prior to the expiration of the initial term, or a subsequently elected option period, unless a shorter or longer time is agreed to by the parties, of Lessee’s intent to so elect. Lessor shall notify Lessee of its acceptance of Lessee’s election in writing. Time is of the essence with regard to renewal.

 

If Lessee fails to properly elect its option to renew this lease and if Lessee continues to occupy the demised premises following such failure to properly elect, then Lessee shall become a hold-over tenant subject to the terms and conditions governing hold-over tenancies set forth in Paragraph 27.

 

7. USE. Lessee agrees to use and occupy said premises for the purpose of conducting business as general office. Lessee shall not use the same for any other purpose, without the written consent of the Lessor, and shall not use or allow said premises or any part thereof to be used for any disorderly or unlawful purpose. Lessee shall obtain, at its expense, all permits required for Lessee's use of said premises.

 

8. ASSIGNMENT. Lessee shall not transfer nor assign this Lease, nor let nor sublet the whole or any part of said premises without the prior written consent of the Lessor. Lessor may assign or transfer this lease without consent, obligation or notice to Lessee.

 

9. UNIT SPECIFICATIONS. Lessor shall repair any water damage to walls and/or carpet prior to Lessee’s occupancy. Lessor shall furnish and Tenant shall accept the premises in “as is” condition. Lessor shall deliver the premises with all HVAC, Mechanical and Electrical systems in good working order. Lessee shall be responsible for all consumables e.g. light bulbs, ballasts, paper products etc.

 

10. PROMULGATION OF RULES. Lessor and/or the Unit Owners Association reserves the right to make and promulgate such reasonable rules regarding use and occupancy of the property and/or “Common Elements” as it may, in its sole discretion, deem necessary. Lessor and/or the Unit Owners Association may amend such rules from time-to-time as it sees fit. Lessee agrees to abide by such rules and any amendments thereto.

 

  

  

  

 

11. SIGNS. Lessee may, at its own risk and expense and at the written approval of the Condominium Association, erect or place in a lawful manner, signs and/or lettering concerning its business on the exterior wall of the demised premises, provided such sign and/or lettering is uniform in size and/or style with others on the Building in order to present a satisfactory and harmonious appearance. Lessee may, under no circumstances, paint its name or any advertisement directly on any part of the building or front windows or the front door. Lessee shall maintain any and all of its signs in a good state of repair, and shall repair any damage that may have been done, or may subsequently occur to the demised premises by the erection, existence, maintenance, or removal of such signs, and further shall indemnify Lessor against any loss, cost, or damage resulting from the erection, maintenance, existence, or removal of such signs. At the end of the initial lease term or any properly elected option periods, or hold-over periods, Lessee shall remove all of its signs at its sole expense.

 

12. TRASH. Lessee agrees to maintain the demised premises and any “Common Elements”, if applicable, in a clean and sanitary manner and in compliance with any federal, state, and/or local government statutes, ordinances, or administrative codes and regulations governing maintenance, use, and occupancy of said premises. Lessee shall cause all refuse generated by its officers, employees, agents, or arising from the conduct of its business in general to be removed from the premises and deposited in the common area dumpster, and shall not chemically treat any refuse in the demised premises or in or on any “Common Elements”.

 

13. UNUSUAL RISK. Lessee shall not use or allow upon premises anything which will invalidate any policy of insurance now or hereinafter carried on said building or on any of the contents thereof, or which may place any person in imminent threat of injury or damage to their person or property, or that constitutes a public nuisance, or which will cause an increase in the rate of fire or any other insurance carried on the building or contents thereof, or in any other office located in the building, or in or on any “Common Elements”.

 

14. NUISANCE. Lessee shall not permit any objectionable noise, or offensive or noxious odors or sound to be emitted from the premises, nor do or permit anything tending to create a nuisance or to disturb any other tenant or occupant’s use or enjoyment of any property located within the building that any tenant or occupant may own or lease, or any “Common Element” situated within or without the building, nor do anything tending to injure the business reputation or good will of Lessor, or impair Lessor’s ability to lease or sell space situated within the Building in the future. Lessee shall not conduct nor allow to be conducted upon the premises any activities which are contrary to the laws of the United States, the Commonwealth of Virginia, the City of Fairfax, or any governmental authority that might be empowered to exercise its authority over the demised premises.

 

15. INSURANCE. Lessee shall indemnify and save Lessor harmless from and against any and all loss or damage to person or property on the demises premises or adjoining sidewalks occasioned by its use of said premises and shall keep in full force and effect a policy of comprehensive general public liability with respect to the premises and the business operated by Lessee, Lessee shall keep in force public liability insurance with respect to the demised premises. Lessor and Lessee shall be named as parties covered, and in which the limits of liability shall not be less than $1,000,000 per occurrence/$1,000,000 for bodily injury and $1,000,000 for property damage. Evidence that such insurance is in force shall be furnished to Lessor prior to occupancy and the beginning of the lease term. Lessor to be named as additional insured on Lessee's policy. Proof of insurance shall be delivered within thirty (30) days of lease signing. Time is of the essence.

 

16. REPAIRS, MUNICIPAL REQUIREMENTS. Lessor shall keep the foundation, roof and the outer walls (excluding, doors, windows, glass) of Lessee's premises in good repair, except that Lessor shall not be called on to make any repairs occasioned by the act or negligence of Lessee, its agents, invitees, customers or employees. Lessee is responsible for any other repairs, including, but not limited to: lights, ballasts, bulbs, hot water heaters, electrical outlets, etc. Lessee shall promptly notify Lessor of any defects or repairs requiring Lessor's attention. Lessor shall not be liable to make any other improvements, repairs or replacements of any kind upon said premises. If fire extinguishers, fire alarms or fire suppression systems are required by the Fire Underwriting Bureau, or other government authority, said extinguishers, alarms and/or systems shall be installed and maintained by Lessee at its sole cost. Lessee covenants: (i) not to place (or suffer to be placed) any debris on the roof or attic of the building, (ii) not to cut into or drive nails into or otherwise mutilate said roof, and (iii) to make no use of the roof or attic without Lessor's prior written consent. Lessee, at its own expense, shall at all times maintain said premises and its equipment, including doors, windows, glass, in good condition and repair, and also in a clean, sanitary and safe condition in accordance with all directions, rules, and regulations of the health officer, fire marshal, insurance inspectors, building inspector or other proper officers of governmental agencies having jurisdiction. Lessee shall comply with all requirements of law, ordinances, insurance company, condominium by-laws, covenants and regulations and otherwise, affecting the premises, and shall permit no waste, damage or injury to said premises. Broken or cracked glass in windows and doors shall be immediately replaced with comparable or upgraded quality glass at the expense of Lessee.

 

  

  

  

 

17. DAMAGE BY FIRE. If the premises is damaged by fire, casualty, or other cause insured by Lessor, Lessor may, solely in its discretion, elect to cancel the lease and refund any prepaid rent and security deposit to Lessee, or affirm the lease and restore the demised premises to good repair. Lessee shall be notified in writing of Lessor’s election within fourteen (14) calendar days of the occurrence of the event giving rise to the demised premises being damaged. If the option to restore is elected by Lessor, the demised premises shall be put back into good repair as soon as commercially feasible, and until so restored, Lessee’s obligation to pay base rent only under this lease shall be suspended until such time as the property is repaired to the extent that Lessee may continue to utilize the demised premises for the purposes stated in Section 8 of this lease. If the premises is damaged and Lessor elects to affirm this lease, the expiration date of the initial term, or properly elected option term should the parties agree to extend the lease beyond its initial term, shall be extended by the amount of time for which Lessee’s obligation to pay rent is suspended under this Section. If said premises are condemned by lawful authority as unsafe or unfit for use, for reason other than Lessee’s use thereof, then Lessor shall repair premises within a reasonable time during which period that rent shall be likewise suspended and the expiration date of the lease extended as described above. If the condemnation is caused by Lessee’s use of the demised premises, then it shall be solely Lessee’s responsibility to put the demised premises in good repair or otherwise abate the problem cited by lawful authority, and Lessee’s obligation to pay rent, including any additional rent, shall not be suspended.

 

18. SUBLETTING. Lessee may not assign or encumber this lease, or sublet any portion of the premises without Lessor’s prior written consent. Such assignment, encumbrance or subletting, even if consented to by Lessor, shall not relieve Lessee from its responsibility for the performance of all terms, covenants, and conditions of this lease.

 

19. LIENS. If any lien or encumbrance upon Lessor’s title results from any intentional or negligent act or omission of Lessee, Lessee shall remove said lien or encumbrance within ten (10) days after Lessee knows, or should have known of the existence of the lien, or encumbrance, solely at Lessee’s cost and expense. Should Lessee fail to remove said lien or encumbrance from Lessor’s title within the ten (10) day period prescribed above, then Lessor may, solely at its option, institute any proceeding at law or in equity that it or its agents, in their sole discretion, deem necessary, and Lessee shall be obligated to reimburse Lessor for any costs and expenses, including reasonable attorney’s fees, Lessor incurs in attempting to have said lien or encumbrance removed. Should Lessee fail to reimburse Lessor for its expenses, including reasonable attorney’s fees (including internal attorney fees) at $700.00 per hour (indexed for inflation as provided in section 2), within ten (10) calendar days of Lessor’s providing Lessee written notice of the amount of those expenses, then Lessee shall be in default of this lease.

 

20. LATE CHARGE, PAYMENTS BY LESSOR. The rental and other payments called for in this Lease are due and payable, in advance, on the first day of each month of the term. In the event said payments are not received by the Lessor by the 5th day of the month in which said payments are due, then Lessee agrees to pay Lessor, upon demand, a late charge fee of $100.00 per day or portion of a day for which said payment remains unpaid from the first day of the month. Lessee shall pay a fee of $500.00 for any check returned to Lessor by Lessee's bank.

 

Lessee will promptly pay all rentals and other payments called for herein when and as the same become due and payable. If Lessor shall pay any monies, or incur any expenses in connection with any violation of the covenants herein set forth, including but not limited to reasonable attorney’s fees (including internal attorney fees) at $700.00 per hour (indexed for inflation as provided in section 2), broker fees, collection fees, and the like, the amounts so paid or incurred shall, at Lessor's option, and on notice to Lessee, be considered additional rentals payable by Lessee with the first installment of minimum rent thereafter to become due and payable, and may be collected and enforced by Lessor. Any payment of monies called for herein to be made by Lessee to Lessor is deemed additional rent and shall be collectable as additional rent.

 

  

  

  

 

21. MUNICIPAL REGULATIONS. Lessee shall abide by and faithfully observe all ordinances relating to the use and occupancy of said premises and traffic rules now or hereafter to be enforced in the municipality in which said premises are located, insofar as said ordinances and rules are applicable to said premises.

 

22. LESSOR'S ENTRY. Lessor, his agents or representatives shall have the right to enter said premises during usual business hours to view and inspect and to make such repairs, additions and alterations as Lessor may deem necessary from time to time for the safety, improvement or preservation of said building, but no such additions or alterations shall unreasonably interfere with Lessee's use of said premises and any such work, except in the case of an emergency, shall be done at such times as not to unreasonably interfere with the operation of Lessee's business. Lessor shall give Lessee reasonable notice of Lessor’s intention to enter into said premises.

 

23. DAMAGE TO LESSEE'S PROPERTY. All personal property in said premises shall be and remain at Lessee's sole risk, and Lessor shall not be liable for any damage to, or loss of such personal property, nor to any loss, injury or damage to, or claimed to be occasioned to the conduct, pursuit and/or operation of Lessee's business upon said premises, arising from any acts of the Lessor, his agents, servants or employees, or of any other persons, nor from rain, snow or water, nor from the leaking of the roof, or from the bursting, leaking or overflowing of water, sewer or steam pipes, or from heating or plumbing fixtures, or from electric wires or fixtures, or from any other cause whatsoever, nor shall the Lessor be liable for any injury to the person of the Lessee or other persons in and about said premises; the Lessee expressly agreeing to save the Lessor harmless in all such cases.

 

24. INSURANCE & RATES - REMAINDER OF BUILDING. Lessor will procure and maintain adequate fire and extended coverage insurance on said premises. Lessee shall not permit nor do anything which would increase the rate of fire insurance as initially established for the building and should the rate for the portion of the building not occupied by Lessee be increased by reason of Lessee's use of the demised premises, Lessee shall pay to Lessor the difference in the fire insurance premiums charged for the remainder of the building over and above said standard rate, when and as the same become due and payable.

 

25. POSSESSION AT END OF TERM. Lessee shall, upon the termination of the term hereof and without further notice, surrender and deliver possession of said premises to Lessor in the same condition in which they were received, usual wear and tear and damage by fire or other casualty excepted, and reserves the right to remove any of his equipment or stock at the termination of the lease.

 

26. HOLDING OVER. In the event Lessee remains in possession of the premises after the expiration of the term hereof without written permission of Lessor and without the execution of extension agreements or a new lease, Lessee shall be deemed occupying the premises as a Lessee from month-to-month, subject to all the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month-to-month tenancy. In this event the base rent and any other monthly payments will be at 150% of current rates.

 

27. TERMINATION BY DEFAULT. If Lessee shall fail to pay said rental in advance as aforesaid, although there shall have been no legal or formal demand made, or shall break or violate any of the within covenants, conditions or agreements, then and in either of said events, this Lease and all things herein contained shall, at the option of Lessor, cease and determine and such failure or violation shall operate as a Notice To Quit, any other Notice To Quit being hereby expressly waived, and Lessor may proceed to recover possession of said premises under and by virtue of the provisions of the Code of Virginia, or by such process as may be in operation and force in like cases relating to proceedings between Lessors and Lessees. When such possession is obtained, Lessor may re-rent the demised premises at the risk and cost of the defaulting Lessee, whose default in no instance shall relieve him of liability for the difference between the rent herein reserved and the rent actually received by Lessor during the term remaining after the default occurs. In any such event, Lessee signed hereto shall remain responsible for the payment of all rent due, late fees and rental for the remaining term of this Lease and for such reasonable expenses as Lessor may incur for attorney's fees (including internal attorney fees) at $700.00 per hour (indexed for inflation as provided in section 2), broker's fees and repairs for placing said premises in good rentable condition. Any rent, condo fees and taxes due on the remaining lease shall be accelerated and due upon default.

 

  

  

  

 

28. BREACH OF LEASE. Lessee’s sole remedy against Lessor for breach of this lease shall be an action for damages, and Lessee expressly renounces any other claims, and agrees not to bring any other action other than one for damages against Lessee for any claims Lessee may have arising from this lease.

 

29. INSOLVENCY. In the event Lessee shall fail in business, make an assignment, or other conveyance in trust for the benefit of his creditors or be adjudged a bankrupt, or if he shall file a petition in any court for a debtor's arrangement, or compound his debts or suffer or permit a final judgment or decree for the payment of money to be entered against him and execution to issue thereon and be levied upon his interests under this lease, or if a receiver shall be appointed of or for his property and assets, then upon the happening of any such event, the term hereby demised shall at the option of Lessor, his successors or assigns, cease and determine and said leased premises shall be surrendered to said Lessor who hereby reserves the right in any of the said events to forthwith re-enter and repossess said premises. The provisions of this paragraph shall be without prejudice to any other rights that Lessor has and may desire to exercise.

 

301. CONFESSION OF JUDGMENT; POWER OF ATTORNEY. LESSEE HEREBY IRREVOCABLY AUTHORIZES, APPOINTS AND EMPOWERS AJAY JAGTIANI, ESQ. OF VEDDER PRICE P.C., AS LESSEE 'S ATTORNEY-IN-FACT (WHICH POWER SHALL BE DEEMED COUPLED WITH AN INTEREST), WITH FULL POWER AND AUTHORITY TO APPEAR AND PRESENT THIS LEASE BEFORE THE CLERK OF THE CIRCUIT COURT OF FAIRFAX COUNTY, VIRGINIA THIRTY (30) DAYS AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT UNDER THIS LEASE, TO WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND TO CONFESS JUDGMENT AGAINST LESSEE IN FAVOR OF LESSOR, AS EVIDENCED BY AN AFFIDAVIT SIGNED BY AN OFFICER OF LESSOR, FOR THE AMOUNT OF MONEY DUE HEREUNDER, INCLUDING INTEREST AND COSTS ACTUALLY INCURRED, LESS CREDIT FOR ANY AND ALL PAYMENTS MADE. IF A COPY OF THIS LEASE , VERIFIED BY AN AFFIDAVIT, SHALL HAVE BEEN FILED IN THE PROCEEDING, IT WILL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY. LESSEE HEREBY WAIVES AND RELEASES ANY ERRORS THAT MAY OCCUR IN ANY SUCH ACTION AND CONSENTS TO IMMEDIATE EXECUTION UPON SAID JUDGMENT. NOTICE UNDER THIS CONFESSION OF JUDGMENT PROVISION, PURSUANT TO SECTION 8.01-438, CODE OF VIRGINIA, 1950 AS AMENDED, SHALL BE SERVED ON LESSEE AT THE ADDRESS SHOWN AT THE TOP OF THIS LEASE.

 

31. ALTERATIONS, IMPROVEMENTS BY LESSEE. Any additions, alterations, and/or remodeling on or to the demised premises, begun after the commencement of the lease, desired by Lessee shall be made solely by the Lessee at Lessee’s expense. Lessee is prohibited from effecting any structural changes to the demised premises, or any “Common Element”. At the expiration of the lease, Lessee shall restore the premises to the same condition that existed at lease signing, reasonable wear and tear excepted, unless Lessor and Lessee agree to other terms in writing. Any trade or lighting fixtures and/or equipment or other personal property placed in or upon the premises by Lessee, other than curtains or other decorations that Lessee is required to have installed under Section 5 of this lease, shall remain the property of the Lessee, and Lessee shall have the right to remove and/or replace any such property at any time provided that s(he) shall repair any damage to the demised premises occasioned by such removal. Lessee’s right to remove its personal property shall be suspended should Lessee default on any of its obligations arising under this lease, or should Lessor be entitled to prevent said property’s removal as a matter of law. Lessee will not alter the exterior of the premises and will not make any structural alterations to the exterior or interior of the premises or any part thereof without first obtaining Lessor's written approval. Lessee further will not cut or drill into or secure any fixture, apparatus, or equipment of any kind to any part of the premises without first obtaining Lessor's written consent.

 

  

  

  

 

Lessee shall have no right to encumber or subject the interest of the Lessor in the demised premises to any mechanics, material men's or other liens of any nature whatsoever, and upon the filing of any such lien, the failure of the Lessee to have the same removed from record promptly shall constitute a violation of this agreement and entitle Lessor, at his option, to take any legal action elsewhere in this agreement reserved to said Lessor.

 

At any time during the term of this agreement or any extension or renewal thereof, should Lessee desire to install air conditioning equipment in said premises or install other equipment using an unusual amount of water or electricity, Lessee shall obtain written approval from the Lessor prior to installation of said equipment.

 

32. MORTGAGE. Lessee agrees that this Lease shall be subject and subordinate at all times to the lien of any mortgage, deed of trust, or other encumbrance now on said land and building, and subject and subordinate to the lien of any mortgage, deed of trust, or other encumbrance which may at any time hereafter be made a lien on said land and building. Upon written request by Lessor, Lessee shall execute and deliver to Lessor such further instrument or instruments subordinating this lease to the lien of any such mortgage, deed of trust, or other encumbrance which shall be desired or required by any mortgagee or party secured, or proposed mortgagee or party proposed to be secured. Notwithstanding such subordination, Lessee's right to quiet possession of the premises shall not be disturbed if Lessee is not in default and so long as Lessee shall pay the rent and observe and perform all of the provisions of this lease unless the lease is otherwise terminated pursuant to its terms

 

33. WAIVER. The covenants, conditions and agreements contained herein shall be binding upon and may be legally enforced by the parties hereto, their successors and assigns respectively, and no waiver of any covenant, condition or agreement contained herein shall be construed to be a waiver of that covenant, condition or agreement, or of any subsequent breach thereof, or of this lease.

 

34. EMINENT DOMAIN. If the demised premises or any part thereof shall be taken by any governmental or quasi-governmental authority pursuant to the power of eminent domain, Lessee agrees to make no claim against Lessor for compensation in the proceedings, and hereby assigns to Lessor any rights which Lessee may have to any portion of any award made to Lessor as a result of such taking and this Lease shall terminate as to the portion of premises taken when title to that portion of the leased premises is taken by the condemning authority and rental shall be adjusted to that date. Lessee does not surrender any rights it has to seek compensation from any governmental or quasi-governmental authority for loss or damages sustained by it by virtue of such taking.

 

35. NOTICE AT TERMINATION. Lessee shall give Lessor no less than ninety (90) days written notice prior to the termination of this Lease of its intention to vacate the premises. Lessee shall give Lessor no less than sixty (60) days prior written notice of Lessee’s intent to renew this Lease at the existing rate or the then current market rental rate, whichever is greater.

 

36. ACCESS. For a period of ninety (90) days prior to the expiration of this lease, including any properly elected option periods, Lessor shall have access to the demised premises at reasonable times for the purpose of exhibiting them to prospective tenants, and shall have the right to hang a lockbox on the premises and post reasonable advertisements indicating that such premises is for rent.

 

37. DELAY IN COMMENCEMENT. Notwithstanding said commencement date, if for any reason Lessor cannot deliver possession of the premises to Lessee on said date, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this lease or the obligation of Lessee hereunder or extend the term hereof, but in such case Lessee shall not be obligated to pay rent until possession of the premises is tendered to Lessee; provided, however, that if Lessor shall not have delivered possession of the premises within ninety (90) days from said commencement date, Lessee may, at Lessee's option, by notice in writing to Lessor within ten (10) days thereafter, cancel this lease, in which event the parties shall be discharged from all obligations hereunder.

 

  

  

  

 

38. ACCORD AND SATISFACTION. No payment by Lessee or receipt by Lessor of a lesser amount than the rent provided for in this lease shall be deemed to be other than on account of the earliest due rent, nor shall any endorsement or statement on any check or letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Lessor may accept such check or payment without prejudice to Lessor's right to recover the balance of the rent or pursue any other remedy provided for in this lease. In connection with the foregoing, Lessor shall have the absolute right in its sole discretion to apply any payment received from Lessee to any account or other payment of Lessee then not current and due or delinquent.

 

39. EXECUTION OF LEASE NOT OPTION. The submission of this Lease to Lessee shall be for examination purposes only, and does not and shall not constitute a reservation of or option for Lessee to lease, or otherwise create any interest of Lessee in the premises or any other premises within the building or project. Execution of this Lease by Lessee and its return to Lessor shall not be binding on Lessor notwithstanding any time interval, until Lessor has in fact signed and delivered this Lease to Lessee.

 

40. QUIET ENJOYMENT. If the Lessee shall perform all and singular the covenants herein imposed upon it, the Lessor will warrant and defend the Lessee in the quiet enjoyment and peaceful possession of the premises during the term hereof.

41. NOTICES. All notices and other communications authorized or required hereunder shall be in writing and shall be given by mailing the same by U.S first class mail, facsimile, electronic distribution, and any such notice or other communication shall be deemed to have been given when received by the party to whom such notice of other communication shall be addressed. If intended for Lessor, the same shall be mailed to Lessor:

 

Alice K. Jagtiani, General Partner

 

W&J Enterprises, LLC

 

13673 Union Village Circle

 

Clifton, VA 20124

 

or at other such address as Lessor may hereafter designate by notice to Lessee; and if intended for Lessee, the same shall be transmitted to Lessee at the designated business address of said above described leased premises at the location of the leased premise, or at other address or addresses as Lessee may hereafter designate by notice in writing to Lessor.

 

42. BROKERAGE. The parties to this lease recognize Questor Realty, Inc., as the Broker negotiating this lease: Jennifer Neel represents the Lessor/Landlord and the Lessee/Tenant. The Landlord agrees to pay Questor Realty, Inc., for its services a commission equal to six percent (6%) of the total value of this lease. Said commission shall be due and payable in cash upon execution of this Lease.

 

43. ENTIRE AGREEMENT. This instrument contains the entire and only agreement between the parties, and no oral statements or representations or prior written matter not contained in this instrument shall have any force or effect. This Lease shall not be modified in any way except by a writing executed by both parties. The rights of the Lessor under the forgoing shall be cumulative and failure on the part of the Lessor to exercise promptly any rights given hereunder shall not operate to forfeit any of the said rights.

 

It is further understood and agreed between the parties hereto that any charges against the Lessee by the Lessor for services or for work done on the premises by order of the Lessee or otherwise accruing under this contract shall be considered as rent due and shall be included in any lien for rent due and unpaid. This contract shall bind the Lessor and its assigns or successors and the heirs, assigns, administrators, legal representatives, executors and the heirs, assigns, administrators, legal representatives executors or successors as the case may be to the Lessee.

 

  

  

  

 

44. SPECIAL PROVISIONS. There shall also convey for tenant’s use one reserved parking spot marked with the unit number.

 

IN WITNESS WHEREOF, Lessor and Lessee have signed and sealed this presents the day and year first hereinbefore written. Undersigned Lessee hereby guarantees performance of its obligations hereunder.

LESSOR:

W&J Enterprises, LLC

 

By: Alice K. Jagtiani, General Partner 

By:_________________________________ (SEAL)

LESSEE:

Lithium Technology Corporation

By: Timothy J. Ryder, Chief Financial Officer and General Manager

By:_________________________________(SEAL)

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