Arkansas-Fort Smith-4407 South 16th Street Lease - James M. Creager Jr., Linda Creager and Transkrit Corp.
[LETTERHEAD]
REGISTERED MAIL
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RETURN RECEIPT REQUESTED
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January 18, 1994
The Prudential Jimmie Taylor, Realtors
P.O. Box 3409
Fort Smith, Arkansas 72913
Re: Lease Agreement between James M. Creager, Jr. and Linda Creager and
Transkrit Corporation - March 28, 1991
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Gentlemen:
In accordance with the Lease Agreement on the property known as 4407 South
16th Street, Fort Smith, Arkansas, this letter provides notice of Transkrit's
extending and renewing the lease for the 3-year period commencing May 15,
1994 under the same terms and conditions as set out within the present lease.
Accordingly the lease now has an expiration date of May 14, 1997.
Very truly yours,
Frank Neubauer, Chairman & CEO
FN/es
cc: Tony Catalano ) Please mark you date file for 12/96 that this
Dave Koval ) lease now expires on May 14, 1997 and a renewal
Dale Hixon ) would be required.
Jack Resnick )
1996 Date File )
P.S. If the owner is interested in selling the building at a price in the
range of $200,000, we would like to discuss this possibility.
[FOOTER]
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LEASE AGREEMENT
THIS AGREEMENT made and entered into in Fort Smith, Arkansas on this 26
day of March, 1987, by and between JAMES M. CREAGER, JR. AND LINDA CREAGER,
hereinafter referred to as "Lessors", and TRANSKRIT CORPORATION, a
corporation, hereinafter referred to as "Lessee".
The Lessors and Lessee, for and in consideration of the mutual covenants,
conditions, agreements, and stipulations hereinafter contained, hereby agree
as follows:
1. Description of Property: Lessors hereby lease to the Lessee property
located at 4407 South 16th Street, Fort Smith, Arkansas, more particularly
described as follows:
Lot Ten (10) and Lot Eleven (11) of Phoenix Industrial Park to
the City of Fort Smith, Sebastian County, Arkansas.
The Lessors shall permit the Lessee to use an air compressor located on the
leased premises, and this air compressor shall be considered a fixture to the
building and part of the leased premises.
2. Acceptance of the Property: At the commencement of the lease term,
the Lessee shall accept the building, improvements, equipment, and fixtures
on or in the leased premises, in their existing condition. No representation,
statement, or warranty, expressed or implied, has been made by or on behalf
of the Lessors as to such condition.
3. Term of Lease: The term of this lease shall be for two (2) years
commencing May 15, 1987, and shall terminate on May 14, 1989.
4. Option: The Lessee shall have an option to extend and renew this
lease for a period of two (2) years commencing on May 15, 1989, under the
same terms and conditions as set out within the present lease. Sixty day
notification of option required.
5. Rent: Lessee shall pay to the Lessors the sum of Two Thousand Five
Hundred Dollars ($2,500.00) per month, which shall
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LEASE AGREEMENT Page 2
be due and payable on the fifteenth (15th) day of each month, commencing
May 15, 1987. Lessee shall pay to the Lessors the first and last month's rent
prior to May 15, 1987. All payments of rent are to be made payable to Jimmie
Taylor Realtors, P.O. Box 3409, Fort Smith, Arkansas, 72913.
6. Taxes: The real property taxes on the leased premises shall be paid
by the Lessors, but all personal property taxes due on the contents of the
leased premises or the result of any business conducted by the Lessee in the
leased premises shall be paid by the Lessee. The Lessee shall not permit any
liens to be filed on the leased premises as a result of any tax liability
arising out of any business conducted by Lessee on the leased premises.
7. Insurance: Lessors shall keep and maintain a policy of insurance on
the structure of the leased premises covering fire and other coverage in the
amount of $150,000.00. If, during the term of the lease or any extensions
thereof, the Lessors' insurance premiums shall increase as a result of the
Lessee's use and occupancy of the premises, then the Lessee shall be
responsible to pay to the Lessors for the payment of this premium increase.
These monies shall be paid on or before the date that the Lessors' insurance
premiums are due. Lessee shall obtain and keep in force during the entire
term of the lease, at their expense, a policy of general public liability
insurance, to which the Lessors shall be named as co-insureds, with minimum
limits of $250,000.00-$500,000.00. The Lessee shall provide the Lessors with
proof of insurance within thirty (30) days after the execution of this lease
agreement. The Lessee shall be responsible for obtaining insurance, if it
desires, covering its own equipment or other personal property which may be
stored on the leased premises. The Lessee shall obtain a policy of workers'
compensation insurance issued by a company authorized to do
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LEASE AGREEMENT Page 3
business in the state of Arkansas, covering its employees on said premises
and shall provide the Lessors with a copy of said policy within thirty (30)
days after execution of this lease agreement.
8. Use of the Premises: The Lessee should satisfy itself that the use of
these premises is in conformance with all zoning regulations of the City of
Fort Smith, Arkansas, and the Lessors make no representation as to their
conforming use. The Lessee shall use these premises for the purpose of
assembling and manufacturing products used in the printing industry. The
Lessee shall keep the entire leased premises, including walls, floors,
ceilings, and fixtures broom clean. ALL flammable material shall be stored so
as to reasonably avoid the risk of fire or explosion.
9. Damage or Destruction of Leased Premises: In the event the leased
premises are damaged or destroyed, the Lessors shall, with the proceeds of
such insurance as it has on the leased premises, promptly repair and rebuild
the demised premises. Damage or the destruction of the building shall not
relieve Lessee from the obligation due during this primary term, so long as
Lessors or their successors or assigns undertake a rebuilding of the damaged
structure, unless the parties hereto or their successors and assigns agree to
some relief in writing. The Lessors hereby agree that no action shall be
maintained by the Lessors or the Lessors' insurance company against the
Lessee in the event of said loss regardless of the cause thereof, including
Lessee's negligence.
10. Repairs and Maintenance: The Lessors shall be responsible for the
maintenance of the roof on the building and for any major maintenance
required to the outside of the structure or upon the electrical, plumbing,
gas, or air conditioning systems during the lease term, unless caused by the
fault of the Lessee. The Lessee shall give written notice to the Lessors of
the need of repairs specifying such repairs. The Lessee shall be responsible
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LEASE AGREEMENT Page 4
for any and all minor maintenance necessary within the leased premises,
including the electrical, plumbing, gas, or air conditioning systems, or any
damage caused by the negligence or want of care of it, its employees, or the
public which it serves, and shall further be responsible for all janitorial
work required therein, as well as the maintenance of any glass which is
permanently a part of the leased premises. Lessee shall maintain the leased
premises in good condition, less ordinary wear and tear.
11. Utilities: The Lessee shall bear all utility expenses attributable
to the leased property and shall be responsible for all deposits required
thereby. The Lessee shall not permit any liens to be filed on the leased
property as a result of the non-payment of any utility charges.
12. Assignment or Subletting: The Lessee shall not assign, mortgage, or
encumber this lease, nor sublet nor permit the lease of the property or any
part thereof to be used by others, without the prior written consent of the
Lessors in each instance, which shall not be unreasonably withheld.
13. Indemnification by Lessee: The Lessee covenants and agrees with the
Lessors that during the entire term of the lease and any extensions or
renewals thereof, the Lessee will indemnify and save harmless the Lessors
against any and all claims, debts, demands, or obligations which may be made
against the Lessors or against the Lessors' title in the premises, arising by
reason of or in connection with, any alleged act or omission of the Lessee or
any person claiming under, by, or through the Lessee; and if it becomes
necessary for the Lessors to defend any action seeking to impose any such
liability, the Lessee will pay the Lessors all costs of court and attorneys'
fees incurred by the Lessors in affecting such defense in addition to any
other sums which the Lessors may be called upon to pay by reason of the entry
of a
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LEASE AGREEMENT Page 5
judgment against the Lessors in the litigation of which such claim is
asserted. Except, however, this article shall be subject to the provisions of
article 11 concerning the non-liability of Lessee.
14. Default by Lessee: If the leased property shall be deserted or
vacated, or if proceedings are commenced against the Lessee in any Court
under a bankruptcy act or for the appointment of a trustee or receiver of the
Lessee's property either before or after the commencement of the lease term,
or if there shall be a default in the payment of rent or any part thereof for
more than fifteen (15) days after written notice of such default by the
Lessors, or if there shall be a default in the performance of any other
covenant, agreement, condition, rule or regulation herein contained or
hereafter established on the part of the Lessee for more than fifteen (15)
days after written notice of such default by the Lessors, this lease (if the
Lessors so elect) shall thereupon become null and void, and the Lessors shall
have the right to reenter or repossess the leased property, either by force,
summary proceedings, surrender, or otherwise, and disposes and removes
therefrom the Lessee, or other occupants thereof, and their effects, without
being liable to any prosecution therefore. In such case, the Lessors may, at
their option, relet the leased property or any part thereof, as the agent of
the Lessee, and the Lessee shall pay the Lessors the difference between the
rent hereby reserved and agreed to be paid by the Lessee for the portion of
the term remaining at the time of reentry or repossession and the amount, if
any, received or to be received under such reletting for such portion of the
term. The Lessees hereby expressly waive the service of notice of intention
to reenter or of instituting legal proceedings to that end. The Lessee waives
and will waive all right to trial by jury in any
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LEASE AGREEMENT Page 6
summary proceeding hereafter instituted by the Lessor against the Lessee in
respect to the leased property.
15. Corporate Resolution: This Lease shall be executed by TRANSKRIT
CORPORATION, P. O. Box 500, Brewster, New York, 10509, by Mr. Frank Neubauer,
President. TRANSKRIT CORPORATION shall provide the Lessors with a copy of a
corporate resolution executed by two (2) officers of the corporation,
authorizing this lease to be entered into and all the terms thereof by Frank
Neubauer. This shall be a condition precedent to the execution of the Lease.
A copy of the corporate resolution shall be attached to this lease as
Exhibit "A". Frank Neubauer further represents that he has the authority to
enter into this lease on behalf of TRANSKRIT CORPORATION and to bind the
corporation to the provisions enumerated herein.
16. Indemnification by Lessors: Lessors shall covenant and agree with
the Lessee that they are the owners of the property described herein and that
they have good right and title to lease and let same unto the Lessee and that
the building and other improvements of Lessors do not encroach on adjacent
property. Lessors covenant and agree that during the term hereof, so long as
Lessee shall not be in default herein, Lessee shall have and enjoy peaceful
and quiet possession of the property described herein. In the event the
property described herein is subject to any mortgage at the commencement of
the term hereof, the Lessors shall cause the mortgagee to deliver to the
Lessee a written agreement whereby the said mortgagee agrees to permit the
Lessees to remain in possession during the term hereof so long as the Lessee
is not in default and further agreeing to and acknowledging the rights of
Lessee under this Lease Agreement.
/s/ JAMES M. CREAGER, JR.
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James M. Creager, Jr.
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LEASE AGREEMENT Page 7
/s/ LINDA CREAGER
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Linda Creager
LESSORS
TRANSKRIT CORPORATION
/s/ FRANK NEUBAUER
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Frank Neubauer, President
LESSEE
<PAGE>
[LETTERHEAD]
April 24, 1987
Mr. James L. Taylor
Jimmie Taylor Realtors
P. O. Box 3409
Fort Smith, AR 72913
Dear Mr. Taylor:
Per our discussion on the property at 4407 South 16th Street, please refer
to the attached sketch. The fire department inspector is requesting Transkrit
to install a 1-hour fire wall in the facility in the position shown. This is
a requirement to separate the production machine area from the open warehouse
area. Also, another outside man-door exit is required as indicated.
When the lease term is complete Transkrit would remove the internal fire
wall if requested, but would prefer to leave the new exit door in place.
If you would please get Mr. Jim Creager, the owner, to accept this
proposal, the lease agreement could be finalized. If you have any questions,
please call me as soon as possible.
Regards,
Dale Hixon
Plant Manager
attachment
[FOOTER]
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[SKETCH]
FLOOR LAYOUT (11,500 sf)
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4407 SOUTH 16TH STREET, FORT SMITH, ARK.