Exhibit 10(b)
INDUSTRIAL BUILDING LEASE
DATE OF LEASE April 10, 1996
TERM OF LEASE
BEGINNING June 1, 1996
ENDING May 31, 1999
MONTHLY RENT $68,705.04 per year
Payable $5,725.42 Per month
Location of Premises
3030 North River Road, River Grove, Illinois
Purposes:
Manufacturing, remodeling and repairing of goods, wares and
merchandise of all kinds and buying and selling of such
merchandise at wholesale and retail.
LESSEE
NAME Richardson Electronics, Ltd.
ADDRESS 40W267 Keslinger Road
LaFox, IL 60147
LESSOR
NAME AND BUSINESS ADDRESS
American National Bank and Trust Company of Chicago Trustee of
Trust #56120 dated 2/23/83
In consideration of the mutual covenants and agreements
herein stated, Lessor hereby leases to Lessee and Lessee hereby
leases from Lessor solely for the above purpose the premises
designated above (the "Premises"), together with the
appurtenances thereto, for the above Term.
RENT
1. Lessee shall pay Lessor or Lessor's agent as rent for the
Premises the sum stated above. monthly in advance, until
termination of this lease, at Lessor's address stated above or
such other address as Lessor may designate in writing.
CONDITION AND UPKEEP OF PREMISES
2. Lessee has examined and knows the condition of the Premises
and has received the same in good order and repair, and
acknowledges that no representations as to the condition and
repair thereof have been made by Lessor, or his agent, prior to
or at the execution of this lease that are not herein expressed;
Lessee will keep the Premises including all appurtenances, in
good repair, replacing all broken glass with glass of the same
size and quality as that broken, and will replace all damaged
plumbing fixtures with others of equal quality, and will keep the
Premises, including adjoining alleys, in a clean and healthful
condition according to the applicable municipal ordinances and
the direction of the proper public officers during the term of
this lease at Lessee's expense, and will without injury to the
roof, remove all snow and ice from the same when necessary, and
will remove the snow and ice from the sidewalk abutting the
Premises; and upon the termination of this lease, in any way,
will yield up the Premises to Lessor, in good condition and
repair, loss by fire and ordinary wear excepted, and will deliver
the keys therefor at the place of payment of said rent.
LESSEE NOT TO MISUSE; SUBLET; ASSIGNMENT
3. Lessee will not allow the Premises to be used for any
purpose that will increase the rate of insurance thereon, nor for
any purpose other than that hereinbefore specified, and will not
load floors with machinery or goods beyond the floor load rating
prescribed by applicable municipal ordinances, and will not allow
the Premises to be occupied in whole, or in part, by any other
person, and will not sublet the same or any part thereof, nor
assign this lease without in each case the written consent of the
Lessor first had, and Lessee will not permit any transfer by
operation of law of the interest in the Premises acquired through
this lease, and will not permit the Premises to be used for any
unlawful purpose, or for any purpose that will injure the
reputation of the building or increase the fire hazard of the
building, or disturb the tenants or the neighborhood, and will
not permit the same to remain vacant or unoccupied for more than
ten consecutive days; and will not allow any signs, cards or
placards to be posted, or placed thereon, nor permit any
alteration of or addition to any part of the Premises, except by
written consent of Lessor; all alterations and additions to the
Premises shall remain for the benefit of Lessor unless otherwise
provided in the consent aforesaid.
MECHANIC'S LIEN
4. Lessee will not permit any mechanic's lien or liens to be
placed upon the Premises or any building or improvement thereon
during the term hereof, and in case of the filing of such lien
Lessee will promptly pay same. If default in payment thereof
shall continue for thirty (30) days after written notice thereof
from Lessor to the Lessee, the Lessor shall have the right and
privilege at Lessor's option of paying the same or any portion
thereof without inquiry as to the validity thereof, and any
amounts so paid, including expenses and interest, shall be so
much additional indebtedness hereunder due from Lessee to Lessor
and shall be repaid to Lessor immediately on rendition of bill
therefor.
INDEMNITY FOR ACCIDENTS
5. Lessee covenants and agrees that he will protect and save
and keep the Lessor forever harmless and indemnified against and
from any penalty or damages or charges imposed for any violation
of any laws or ordinances whether occasioned by the neglect of
Lessee or those holding under Lessee, and that Lessee will at all
times protect, indemnify and save and keep harmless the Lessor
against and from any and all loss, cost, damage or expense,
arising out of or from any accident or other occurrence on or
about the Premises, causing injury to any person or property
whomsoever or whatsoever and will protect, indemnify and save and
keep harmless the Lessor against and from any and all claims and
against and from any and all loss, cost, damage or expense
arising out of any failure of Lessee in any respect to comply
with and perform all the requirements and provisions hereof.
NON-LIABILITY OF LESSOR
6. Except as provided by Illinois statute, Lessor shall not be
liable for any damage occasioned by failure to keep the Premises
in repair, nor for any damage done or occasioned by or from
plumbing, gas, water, sprinkler, steam or other pipes or sewerage
or the bursting, leaking or running of any pipes, tank or
plumbing fixtures, in, above, upon or about Premises or any
building or improvement thereon nor for any damage occasioned by
water, snow or ice being upon or coming through the roof,
skylights, trap door or otherwise, nor for any damages arising
from acts or neglect of any owners or occupants of adjacent or
contiguous property.
WATER, GAS AND ELECTRIC CHARGES
7. Lessee will pay, in addition to the rent above specified,
all water rents, gas and electric light and power bills taxed,
levied or charged on the Premises, for and during the time for
which this lease is granted, and in case said water rents and
bills for gas, electric light and power shall not be paid when
due, Lessor shall have the right to pay the same, which amounts
so paid, together with any sums paid by Lessor to keep the
Premises in a clean and healthy condition, as above specified,
are declared to be so much additional rent and payable with the
installment of rent next due thereafter.
KEEP PREMISES IN REPAIR
8. Lessor shall not be obliged to incur any expense for
repairing any improvements upon said demised premises or
connected therewith and the Lessee at his own expense will keep
all improvements in good repair (injury by fire, or other causes
beyond Lessee's control excepted) as well as in a good tenantable
and wholesome condition, and will comply with all local or
general regulations, laws and ordinances applicable thereto, as
well as lawful requirements of all competent authorities in that
behalf. Lessee will, as far as possible, keep said improvements
from deterioration due to ordinary wear and from falling
temporarily out of repair. If Lessee does not make repairs as
required hereunder promptly and adequately, Lessor may but need
not make such repairs and pay the costs thereof, and such costs
shall be so much additional rent immediately due from and payable
by Lessee to Lessor.
ACCESS TO PREMISES
9. Lessee will allow Lessor free access to the Premises for the
purpose of examining or exhibiting the same, or to make any
needful repairs, or alterations thereof which Lessor may see fit
to make and will allow to have placed upon the Premises at all
times notice of "For Sale" and "To Rent ", and will not interfere
with the same.
ABANDONMENT AND RELETTING
10. If Lessee shall abandon or vacate the Premises, or if
Lessee's right to occupy the Premises be terminated by Lessor by
reason of Lessee's breach of any of the covenants herein, the
same may be re-let by Lessor for such rent and upon such terms as
Lessor may deem fit, subject to Illinois statute; and if a
sufficient sum shall not thus be realized monthly, after paying
the expenses of such re-letting and collecting to satisfy the
rent hereby reserved, Lessee agrees to satisfy and pay all
deficiency monthly during the remaining period of this lease.
HOLDING OVER
11. Lessee will, at the termination of this lease by lapse of
time or otherwise, yield up immediate possession to Lessor, and
failing so to do, will pay as liquidated damages, for the whole
time such possession is withheld, the sum of _____________
Dollars ($____) per day; but the provisions of this clause shall
not be held as a waiver by Lessor of any right of re-entry as
hereinafter set forth; nor shall the receipt of said rent or any
part thereof, or any other act in apparent affirmance of tenancy,
operate as a waiver of the right to forfeit this lease and the
term hereby granted for the period still unexpired, for a breach
of any of the covenants herein.
EXTRA FIRE HAZARD
12. There shall not be allowed, kept, or used on the Premises
any inflammable or explosive liquids or materials save such as
may be necessary for use in the business of the Lessee, and in
such case, any such substances shall be delivered and stored in
amount, and used, in accordance with the rules of the applicable
Board of Underwriters and statutes and ordinances now or
hereafter in force.
DEFAULT BY LESSEE
13. If default be made in the payment of the above rent, or any
part thereof, or in any of the covenants herein contained to be
kept by the Lessee, Lessor may at any time thereafter at his
election declare said term ended and reenter the Premises or any
part thereof, with or (to the extent permitted by law) without
notice or process of law, and remove Lessee or any persons
occupying the same, without prejudice to any remedies which might
otherwise be used for arrears of rent, and Lessor shall have at
all times the right to distrain for rent due, and shall have a
valid and first lien upon all personal property which Lessee now
owns, or may hereafter acquire or have an interest in, which is
by law subject to such distraint, as security for payment of the
rent herein reserved.
NO RENT DEDUCTION OR SET OFF
14. Lessee's covenant to pay rent is and shall be independent of
each and every other covenant of this lease. Lessee agrees that
any claim by Lessee against Lessor shall not be deducted from
rent nor set off against any claim for rent in any action.
RENT AFTER NOTICE OR SUIT
15. It is further agreed, by the parties hereto, that after the
service of notice, or the commencement of a suit or after final
judgment for possession of the Premises, Lessor may receive and
collect any rent due, and the payment of said rent shall not
waive or affect said notice, said suit, or said judgment.
PAYMENT OF COSTS
16. Lessee will pay and discharge all reasonable costs,
attorney's fees and expenses that shall be made and incurred by
Lessor in enforcing the covenants and agreements of this lease.
RIGHTS CUMULATIVE
17. The rights and remedies of Lessor under this lease are
cumulative. The exercise or use of any one or more thereof shall
not bar Lessor from exercise or use of any other right or remedy
provided herein or otherwise provided by law, nor shall exercise
nor use of any right or remedy by Lessor waive any other right or
remedy.
FIRE AND CASUALTY
18. In case the Premises shall be rendered untenantable during
the term of this lease by fire or other casualty, Lessor at his
option may terminate the lease or repair the Premises within 60
days thereafter. If Lessor elects to repair, this lease shall
remain in effect provided such repairs are completed within said
time. If Lessor shall not have repaired the Premises within said
time, then at the end of such time the term hereby created shall
terminate. If this lease is terminated by reason of fire or
casualty as herein specified, rent shall be apportioned and paid
to the day of such fire or other casualty.
SUBORDINATION
19. This lease is subordinate to all mortgages which may now or
hereafter affect the Premises.
PLURALS; SUCCESSORS
20. The words "Lessor" and "Lessee" wherever herein occurring
and used shall be construed to mean "Lessors" and "Lessees" in
case more than one person constitutes either party to this lease;
and all the covenants and agreements contained shall be binding
upon, and inure to, their respective successors, heirs,
executors, administrators and assigns and may be exercised by his
or their attorney or agent.
SEVERABILITY
21. Wherever possible each provision of this lease shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this lease shall be
prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision
or the remaining provisions of this lease.
22. This Lease is executed by the AMERICAN NATIONAL BANK AND
TRUST COMPANY OF CHICAGO, not personally or individually but
solely as Trustee as aforesaid and it is expressly understood and
agreed by and between the parties hereto, anything in this Lease
to the contrary notwithstanding, that each and all of the
covenants, undertakings and agreements in this Lease contained
are made and intended not as personal covenants, undertakings and
agreements of the AMERICAN NATIONAL BANK AND TRUST COMPANY OF
CHICAGO, or any of its officers, agents or employees, but this
Lease is executed and delivered by the undersigned Lessor solely
as Trustee as aforesaid and no personal liability or personal
responsibility is assumed by, or shall at any time be asserted or
enforced against, the AMERICAN NATIONAL BANK AND TRUST COMPANY OF
CHICAGO, its officers, agents, or employees, on account of any
covenants, representations, undertakings or agreements in this
Lease contained, or otherwise, either express or implied, all
such personal liability, if any, being hereby expressly waived
and released, it being understood that the Lessee or anyone
claiming by, through or under the Lessee shall look solely to the
trust property for the enforcement or collection of any such
liability. By way of illustration only and without limitation of
the foregoing, it is further understood and agreed that the said
AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO individually
shall have no duty whatsoever with reference to the upkeep,
maintenance or repair of said premises and makes no
representations with reference to the condition of, or to the
title to, said premises. It is further expressly understood and
agreed that this Lease is signed by the undersigned Lessor solely
for the purpose of subjecting the title to the trust property to
the terms of this Lease and for no other purpose whatsoever. Any
conveyance of the demised premises by the undersigned Lessee
shall operate to release the AMERICAN NATIONAL BANK AND TRUST
COMPANY OF CHICAGO in every capacity from any and all
obligations, if any, under this Lease. It is further expressly
understood and agreed that no duty shall rest upon the AMERICAN
NATIONAL BANK AND TRUST COMPANY OF CHICAGO to sequester the trust
property or the rents, issues and profits arising therefrom, or
the profits arising from any sale or other disposition thereof.
23. It is hereby expressly agreed by and between Lessor and
Lessee that:
(a) Lessee shall pay the real estate taxes and any special
assessments.
(b) Lessee shall pay for all upkeep on the said building, and
for all repairs and remodeling, both interior and exterior and
shall provide all heating and any and all insurance.
24. Lessee has deposited with beneficiaries of the Lessor the
sum of TWENTY FOUR THOUSAND DOLLARS ($24,000.00), which said
deposit is hereby acknowledged, which shall be held by
beneficiaries of the Lessor as and for security on said Lease.
When said Lease shall expire, if the Lessee shall not be in
default under the terms and conditions thereof, then said deposit
of $24,000.00 shall be returned to Lessee by the beneficiaries of
the Lessor. If, at the time of the expiration of this Lease,
Lessee shall be indebted to the Lessor, beneficiaries of the
Lessor shall deduct such indebtedness from the security deposit
moneys and return the balance to Lessee.
If this instrument is executed by a corporation, such
execution has been authorized by a duly adopted resolution of the
Board of Directors of such corporation.
This lease consists of ___ pages numbered 1 to __, including
a rider consisting of __ pages, identified by Lessor and Lessee.
IN WITNESS WHEREOF, the parties hereto have executed this
instrument as of the Date of Lease stated above.
LESSEE: LESSOR:
RICHARDSON ELECTRONICS, LTD. AMERICAN NATIONAL BANK AND
TRUST COMPANY
OF CHICAGO AS TRUSTEE OF TRUST
#56120
DTD 2/23/83
By: /s/ Edward J. Richardson By: /s/ authorized signature
ATTEST:
/s/ William G. Seils
Secretary