Arkansas-Fort Smith-5721 South Zero Street Lease - Buhrke Co. and Label Art Inc.
[LETTERHEAD]
June 23, 1995
David M. Lajoie, Vice President Finance
LABEL ART
One Riverside Way
Wilton, New Hampshire, 03086
RE: Lease Agreement for 20,000 square feet
5721 South Zero Street
Fort Smith, Arkansas
Dear Mr. Lajoie:
After reviewing your proposal regarding the continued lease of the above
property, we are renewing the above lease, which has an end date (as amended)
of December 31, 1995, with the option to renew for an additional two years
through December 31, 1997. Renewal will be based on renegotiation of the
existing terms. Total square footage leased remains 20,000 and monthly rent
is $2,400.
If this arrangement is acceptable to you, please sign the original of
this letter and return it to us.
If there are any questions, please do not hesitate to give me a call.
Sincerely,
/s/ PAUL W. STIEGLER, JR.
Paul W. Stiegler, Jr.
Vice President & General Manager
Fort Smith
PWSJr/crm
By: /s/ DAVID M. LAJOIE
Label Art
Date: 7/11/95
[FOOTER]
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[LETTERHEAD]
November 14, 1988
Paul W. Stiegler, Jr., President
R. H. Buhrke Co., Inc.
Division of Klein Tools, Inc.
c/o Jimmie Taylor, Realtors
P. O. Box 3409
Fort Smith, Arkansas 72913
Dear Paul:
In connection with our Lease Agreement for property at 5721 South Zero Street
dated September 1, 1988, we understand that the 2,500 square feet (not
currently covered under the lease) have become available for use. We wish to
lease this additional place.
We propose to amend the Lease Agreement, effective November 1, 1988, to
incorporate the additional 2,500 square feet, bringing the total square
footage to 20,000 and the monthly rent to $2,400. All other terms of the
Lease Agreement will remain unchanged.
If this arrangement is acceptable to you, please sign the original of this
letter and return to us, at which time we will send a check covering the
additional rent from November 1, 1988.
Very truly yours,
/s/ DONALD L. CRANE
Donald L. Crane
Vice President of Finance
DLC:ED
R. H. Buhrke Company, Inc.
Division of Klein Tools, Inc.
By /s/
Its President
Date 11/17/88
<PAGE>
LEASE AGREEMENT
THIS AGREEMENT made and entered into in Fort Smith, Arkansas, on this 1st
day of September, 1988, by and between Buhrke Co. - Division of Klein Tools,
hereinafter referred to as "Lessors", and Label Art, Inc., 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 the Property: Lessors hereby lease to the Lessee
property located at 5721 South Zero, Fort Smith, Arkansas, more particularly
described as follows: This is the building that is on the East side of
entrance. The Lessee is to get 17,500 sq. ft. and the Lessor is keeping
2,500 sq. ft. in the Southeast corner of said building and Lessor is to
install a wire cage around this area. Access to this 2,500 sq. ft. area will
be limited to its own entry way from outside of the building if the Lessee so
desires at any time during the term of the lease.
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. The Lessor has given Lessee
permission to build a dock in front of the sixteen foot door and extend a
turn-around into the ball park. Also at the Southwest Corner the Lessee will
be permitted to install a concrete pad for a compactor.
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 Twenty-five (25)
months commencing September 1, 1988 and shall terminate on October 1, 1990.
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LEASE AGREEMENT Page 2
4. Option: The Lessee shall have the right of first refusal if the
Lessor decides to lease the building after the initial term.
5. Rent: Lessee shall pay to the Lessors the sum of Two Thousand One
Hundred Dollars ($2,100.00) per month, which shall be due and payable on the
first (1st) day of each month, commencing September 1, 1988. Lessee shall
pay to the Lessors the first and last month's rent prior to September 1,
1988. 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 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 all-risk property
insurance on the structure of the leased premises in the amount of at least
90% of the replacement cost of the building. 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 business in the state of Arkansas, covering its
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LEASE AGREEMENT Page 3
employees on said premises and shall provide the Lessors with a certificate
of said coverage 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 purposes of
printing and packaging products and related warehouse and office use. 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 and Untenantability: 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. If the premises, or any
portion thereof, are made untenantable by fire, the elements, or other
casualty, rent for the leased premises, or affected portion thereof, shall
abate from the date of such casualty to restoration of tenantability. Lessor
shall restore same with all reasonable speed, and if Lessor does not restore
the premises or the affected portion thereof to tenantability within sixty
(60) days thereafter, Lessee may then terminate this lease. If the premises
are more than fifty percent (50%) destroyed by such casualty, either Lessor
or Lessee may terminate this lease unless Lessor is able to rebuild and
restore the Premises within ninety (90) days of such casualty. Rent shall
abate during such period of untenantability. 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, and that lessor shall cause the
relevant insurance policies to contain a waiver of subrogation clause to
evidence this release.
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LEASE AGREEMENT Page 4
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
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 by 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 nonpayment 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
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LEASE AGREEMENT Page 5
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 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 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 9
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 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
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LEASE AGREEMENT Page 6
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 renter or of instituting legal proceedings to that end. "The Lessee
waives and will waive all right to trial by jury in any 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 Label Art,
Inc., 1 Riverside Way, Wilton, New Hampshire, 03086, by Mr. Thomas J. Cobery,
President. Label Art, Inc. shall provide the Lessors with a copy of a
corporation resolution executed by two (2) officers of the corporation,
authorizing this lease to be entered into and all the terms thereof by Thomas
J. Cobery. 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". Thomas J. Cobery further represents that he has the authority
to enter into this lease on behalf of of Label Art, Inc. 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
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LEASE AGREEMENT Page 7
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.
WITNESS: Buhrke Co. - Division of Klein Tools
/s/ By /s/ PAUL W. STIEGLER, JR.
Its President
WITNESS: Label Art, Inc.
A Delaware Corporation
/s/ Evelyn B. Dudley By /s/ THOMAS J. COBERY
Its President