Industrial Building Lease Agreement between CenterPoint Properties Trust and The Knockout Group, Inc.

Summary

This lease agreement is between CenterPoint Properties Trust (landlord) and The Knockout Group, Inc. (tenant) for an industrial building located at 100 Whitehall, Northlake, Illinois. The lease term is 36 months, starting August 1, 2004, and ending July 31, 2007. The tenant will pay escalating base rent and security deposits, and the premises will be delivered in three phases. The tenant is allowed to use the property for contract packaging and related lawful uses. Both parties have specific obligations regarding rent, deposits, and compliance with property restrictions.

EX-10.3 6 ex10_3.txt Exhibit 10.3 INDUSTRIAL BUILDING LEASE THIS LEASE is made as of the l st day of August, 2004 between CENTERPOINT PROPERTIES TRUST,; a Maryland real estate investment trust ("LANDLORD"), and THE KNOCKOUT GROUP, INC., a corporation ("TENANT"). ARTICLE I- LEASE TERMS SECTION 1.1. DEFINITIONS. In addition to the other terms, which are elsewhere defined in this Lease, the following terms and phrases, whenever used in this Lease shall have the meanings set forth in this Section 1.1, and only such meanings, unless such meanings are expressly contradicted, limited or expanded elsewhere herein. - ------------------------------------------------------------------------------- PERIOD ANNUAL BASE RENT MONTHLY BASE RENT - ------------------------------------------------------------------------------- August 1, 2004 - September 30, 2004 Partial Year $20,625.00 - ------------------------------------------------------------------------------- October 1, 2004 - January 31, 2005 Partial Year $37,125.00 - ------------------------------------------------------------------------------- February 1, 2005 - July 31, 2005 Partial Year $66,720.64 - ------------------------------------------------------------------------------- August 1, 2005 - July 31, 2006 $820,663.84 $68,388.65 - ------------------------------------------------------------------------------- August 1,2006-- July 31, 2007 $841,180.44 $70,098.37 Y - ------------------------------------------------------------------------------- B. COMMENCEMENT DATE: August 1, 2004. C. INITIAL MONTHLY RENT ADJUSTMENT DEPOSIT: $6,583.34 ---------------------------------------- (i) Initial Tax Deposit: $5,166.67 (ii) Initial Expense Deposit: $1,416.67 D. LANDLORD'S BROKER: CB Richard Ellis. E. LANDLORD'S MAILING ADDRESS: 1808 Swift Road Oak Brook, Illinois 60523 Attention: Mr. Paul T. Ahern F. SECURITY DEPOSIT: $100,000.00. Tenant shall increase to $150,000.00 by October 1, 2004 and to $175,000.00 by February 1, 2005 G. TENANT'S BROKER: CB Richard Ellis. TENANT'S BROKER: CB Richard Ellis. TENANT'S MAILING ADDRESS: The Knockout Group 118 N. Halsted Street Chicago, Illinois 60661 Attention: Mr. John Bellamy TENANT'S PROPORTION: April 1, 2004 - September 30, 2004: 30.9% October 1, 2004 - January 31, 2005: 55.6% February 1, 2005 - Termination Date 100.00% J. Term: The thirty-six (36) month term, commencing as of the Commencement Date and ending on the Termination Date, unless sooner terminated by Landlord as provided hereunder. K. TERMINATION DATE: -(March) . [July] 31, 2007. Use: Contract packaging and related lawful uses. SECTION 1.2. - SIGNIFICANCE OF DEFINITIONS. Each reference in this Lease to any of the Definitions contained in Section 1.1 of this Article shall be deemed and construed to incorporate all of the terms provided under each such Definition. SECTION 1.3. ENUMERATION OF EXHIBITS. The exhibits in this Section and attached to this Lease are incorporated in this Lease by this reference and are to be construed as a part of this Lease. Exhibit "A" Premises Exhibit "B" Legal Description Exhibit "C" Form of Estoppel Certificate TENANT'S MAILING ADDRESS: ------------------------------------------------- The Knockout Group 118 N. Halsted Street Chicago, Illinois 60661 Attention: Mr. John Bellamy TENANT'S PROPORTION: ------------------------------------------------- April 1, 2004 - September 30, 2004: 30.9% October 1, 2004 - January 31, 2005: 55.6% February 1, 2005 - Termination Date 100.00% J. TERM: The thirty-six (36) month term, commencing as of the Commencement Date and ending on the Termination Date, unless sooner terminated by Landlord as provided hereunder.' K. Termination Date: July 31, 2007. L. Use: Contract packaging and related lawful uses. SECTION 1.1 SIGNIFICANCEOF DEFINITIONS. Each reference in this Lease to any of the Definitions contained in Section 1.1 of this Article shall be deemed and construed to incorporate all of the terms provided under each such Definition. SECTION 1.3. ENUMERATION OF EXHIBITS. The exhibits in this Section and attached to this Lease are incorporated in this Lease by this reference and are to be construed as a part of this Lease. Exhibit "A" Premises Exhibit "B" Legal Description Exhibit "C" Form of Estoppel Certificate ARTICLE II-- PREMISES SECTION 2.1. LEASE. Landlord, for and in consideration of the rents herein reserved and of the covenants and agreements herein contained on the part of Tenant to be kept, observed and performed, does by these presents, lease to Tenant, and Tenant hereby leases from Landlord, the demised premises ("PREMISES"), being depicted in the plan attached hereto as EXHIBIT "A" including the right to use the parking areas and loading docks shown on EXHIBIT "A The Premises shall be delivered to Tenant in three phases (i) that portion of the Premises marked as "Phase 1" on EXHIBIT "A" shall be delivered as of the Commencement Date; (ii) that portion of the Premises marked as "Phase 2" on EXHIBIT "A" shall be delivered on or before October 1, 2004; and (iii) an additional approximately 71,747 square feet shall be delivered on or before February 1, 2005. The Premises are located in the building ("BUILDING") located at 100, Whitehall, Northlake, Illinois, which Building is located on the land ("Land") legally described on EXHIBIT "B" attached hereto. The Land and Building are sometimes collectively referred to as the "Project". The lease of the Premises shall be subject to, and Tenant shall at all times during the Term comply with, all covenants, conditions, agreements, easements, encumbrances and restrictions of record as of the date hereof affecting the, Project (collectively "RESTRICTIONS"), provided Landlord has delivered to Tenant true, correct and complete copy; of any such LANDLORD: IN WITNESS WHEREOF, the parties have executed this Lease as of the date set forth above. BY: /S/ JOHN BELLAMY -------------------------- NAME: JOHN BELLAMY TITLE: CHAIRMAN/ CEO ATTEST: BY: /S/ KATIE GREEN -------------------------- NAME: KATIE GREEN TITLE: CHIEF ADMIN OFFICER LANDLORD: CENTERPOINT PROPERTIES TRUST, a Maryland real estate investment trust By: Name: Title: By:_______________________ Name