Exhibit 10.5
[LETTERHEAD]
March 25, 1998
Mr. Thomas C. Dinolfo
JL French Corporation
3101 South Taylor Drive
PO Box 1024
Sheboygan, WI 53082-1024
Dear Tom:
As you are aware the offices in Dearborn are nearly ready for us to move in.
Accordingly, this provides you information related to the cost of your
leasehold improvements as well as my calculation of your pro-rata share of
monthly expenses.
1. I have attached a schedule provided by Ford Motor Land Development
Corporation which provides detail supporting the $102,677 expended
for improvements to the JL French section of the offices. The 2,569
square feet shown on this schedule represents usable square footage
and equates to 2,954 total rentable square feet (115% of useable
square footage per Ford). The original allowance for improvements was
$20 per rentable square foot or $59,080 dollars. The total overrun
for which you will be responsible is $43,597.
2. As shown in the enclosed Term Sheet, the total rentable square feet
under the lease is approximately 17,272. Your share based on 2,954
rentable square feet is 17.1%. Accordingly, your share of expenses
associated with the leased facility is as follows:
TOTAL JL FRENCH SHARE
DESCRIPTION ANNUAL EXPENSE OF MONTHLY EXPENSE
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Operating Expenses $ 86,357.40 $ 1,230,59
Property Taxes 24,130.07 344.57
Base Rent 284,988.00 4,061.08
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Total Monthly
Lease Charges $ 5,636.24
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I have been advised that we currently anticipate taking possession of the
leased premises on April 3, 1998. Accordingly, I am not requesting that you
forward payment at this time. Once we have been required to remit the payment
for improvements to Ford, I will notify you that the payment described under
paragraph 1 above is due. Also, once possession has been formally granted, I
will advise you of the prorated lease charges due for the month of April.
Thereafter, the total monthly lease charges will be due on or before the
first day of each successive calendar month during the five year term of the
lease.
If you have any questions or would like any additional information please
don't hesitate to call.
Sincerely,
/s/ Edward D. Corlett
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Edward D. Corlett
Vice President of Finance
CC: Robert Barton
TERM SHEET
BASIC LEASE PROVISIONS
1. Date: March , 1998
2. Landlord: Ford Motor Land Development Corporation
One Parklane Boulevard
Suite 1500 East
Dearborn, Michigan 48126
3. Tenant: American Bumper & Mfg. Co.
4. Section 1(c) Building: 500 Town Center Drive
Dearborn, Michigan 48126
5. Section 1(d) Premises: Approximately 17,272 Square Feet at
500 Town Center Drive
Suite 400
Dearborn, Michigan 48126
6. Estimated First Year Operating Expenses: $326,000.00
Tenant's Percentage Share of estimated
Operating Expenses: $ 86,357.40
7. Estimated First Year Property Taxes: $ 91,280.00
Tenant's Percentage Share of estimated
Operating Expenses: $ 24,180.07
8. Section 1(g) Tenant's Percentage Share: 26.49% of 65,200 Rental Square Feet
9. Section 2(a) Tenant's Commencement Date: April 1, 1998
10. Section 2(a) Term Expiration Date: March 31, 2003
11. Section 3(a) Base Rent:
YEAR PER SQUARE FOOT YEARLY MONTHLY
04/01/1998- $16.50 $284,988.00 $23,749.00
03/31/1999
04/01/1999- $16.50 $284,988.00 $23,749.00
03/31/2000
04/01/2000- $16.50 $284,988.00 $23,749.00
03/31/2001
04/01/2001- $17.00 $283,624.00 $24,468.67
03/31/2002
04/01/2002- $17.50 $302,260.00 $25,188.33
03/31/2003
12. Section 4 Permitted Use: Sales and Administrative
Purposes
13. Section 32 Security Deposit: None
14. Section 34 Landlord's Address for Notices:
Ford Motor Land Development
Corporation
One Parklane Boulevard
Suite 1500 East
Dearborn, Michigan 48126
Tenant's Address for Notices:
American Bumper & Mfg. Co.
141 N. Beardsley Road
Ionia, MI 48846
Attn: Edward D. Corlett
Chief Financial Officer
15. Section 39 Broker or Agent: None
Additional Provisions:
16. Section 42 (a) Provided Tenant shall not be in default
of any terms or conditions of this Lease.
Tenant shall have one option to extend the
Lease Term (such extension being called the
"Extended Term") for three (3) years by
giving Landlord written notice of its
intention to do so at least six (6) months
prior to the end of the Initial Term upon
the same terms and conditions as herein
stated and at the rental rate specified
below. Tenant's failure to give notice
shall be deemed a waiver of Tenant's right
to extend.
(b) Within thirty (30) days following
Tenant's notice to Landlord to extend the
term of this Lease, Landlord shall notify
Tenant of the proposed Extended Term Rent
which shall be equal to the then Fair Market
Rental Value of the Demised Premises. Fair
Market Rental Value shall be delined as the
annual rental (projected from the date of
the commencement of the payment of the
annual rental to which it applies) which
Tenant would expect to pay and Landlord
would expect to receive under leases of
space of comparable size and quality to the
Premises and as provided for in, and on
terms and conditions to, this lease
covering premises similar to the Premises
(without regard to free rent and other
inducements that Tenant might be able to
receive if Tenant relocated from the
Building.) Tenant shall have thirty (30)
days following the receipt of Landlord's
notice of the determination of the proposed
Extended Term Rent in which to:
(i) accept such determination; or
(ii) elect to have such determination
made by appraisal as described
below; or
(iii) withdraw its notice of exercise
of option to extend
IN WITNESS WHEREOF, Landlord and Tenant have executed the Lease to which
this Term Sheet is attached by signing and dating this Term Sheet and by
initialing the first page of the Lease.
Landlord: Tenant:
Ford Motor Land Development AMERICAN BUMPER & MFG. CO.,
Corporation, A Delaware corporation a Michigan corporation
By: By:
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Its: Its:
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Dated: Dated:
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