COMMERCIAL OFFICE LEASE
This Lease Agreement ("Lease") is entered into this 14th day of June 1996 ("Effective Date") by and between the 12/31/87 Trusts of Susan Y., David D., and John T. Kim, c/o Amkor Electronics, Inc., 1345 Enterprise Drive, West Chester,
Pennsylvania 19380 ("Lessors") and Amkor Electronics, Inc., a Pennsylvania corporation, with its principal office at 1345 Enterprise Drive, West Chester, Pennsylvania 19380 ("Lessee").
1. PREMISES
a. Lessors do hereby lease to Lessee and Lessee does hereby lease
from Lessors those certain premises located at 1900 South New
Price Road, Chandler, Arizona and consisting of approximately
42,682 square feet (the "Premises").
b. Said letting is upon and subject to the terms, covenants and
conditions herein set forth, and Lessors and Lessee covenant
as a material part of the consideration for this Lease to keep
and perform each and all of said terms, covenants and
conditions by it to be kept and performed and that this Lease
is made upon the condition of such performance.
2. PURPOSE
The Premises are to be used for conducting Lessee's lawful business
activities and for no other purposes without the written consent of
3. TERM
The initial term of this Lease shall be for a period of 10 (ten) years
beginning on the first (1st) day of June 1996 and ending on the
thirty-first (31st) day of May 2006. The Lease may thereafter be
extended pursuant to paragraph 20 herein.
4. RENT
a. Guaranteed Minimum Monthly Rental
Lessee shall pay to Lessors during the term of this Lease,
beginning June 1, 1996 (or upon such date as the Premises are
available for Lessee's occupancy) and continuing through the
expiration of this Lease ending May 31, 2006, the annual
rental of Six Hundred Forty Thousand Two Hundred Thirty
Dollars ($640,230) paid in equal monthly installments of Fifty
Three Thousand Three Hundred Fifty Two Dollars and Fifty Cents
($53,352.50) in advance on the first day of each and every
month during the term of this Lease. If the Guaranteed Monthly
Rental is not received by Lessors within ten (10) days of its
due date, it is in default. Any Guaranteed Minimum
Monthly Rent in default may be subject, at Lessors'
discretion, to an additional charge of five percent (5%) per
month on the unpaid balance thereof as a late charge. In
addition to Guaranteed Rent, Lessee agrees to pay any excise,
privilege or sales taxes or any tax levied on the rental or
the receipt thereof, except Lessors' income tax.
Said rental shall be paid to Lessors by check or wire transfer
in equal amounts to Susan Y. Kim as Trustee for the 12/31/87
Trust of Susan Y. Kim; David D. Yjm as Trustee for the
12/31/87 Trust of David D. Yjm; and John T. Kim as Trustee for
the 12/31/87 Trust of John T. Kim, in lawful money of the
United States of America at 1345 Enterprise Drive, West
Chester, Pennsylvania 19380, or to such other person or at
such other place as Lessors may from time to time designate in
b. Rental Adjustments
Effective January 1, 1998 and on January I ("Adjustment Date")
of each year during the term of this Lease and any extension
hereto, the Guaranteed Minimum Monthly Rental shall be
adjusted in accordance with the increase in the Consumer Price
Index ("CPI") as published by the Bureau of Labor statistics
of the U.S. Department of Labor. The CPI published for the
month nearest (but preceding) the month in which the term
commences shall be the Base Index. The Base Rent shall be
adjusted by multiplying the Base Rent by a factor computed by
adding one (1) to fifty percent (50%) of a fraction, the
numerator of which shall be the difference between the CPI for
the month nearest (but preceding) the Adjustment Date and the
Base Index and the denominator of which shall be the Base
5. ADDITIONAL EXPENSES
Lessee shall pay all local, state, and federal taxes, charges,
assessments, government fees of any kind, or like expenses, imposed
upon the Premises during the term of the Lease. Lessee shall further
pay all other expenses including, but not limited to management,
utilities, janitorial, maintenance of building, grounds, insurance,
6. CARE OF PREMISES, ALTERATIONS, ETC.
Lessee shall take good care of the Premises and shall, at Lessee's own
cost and expense make all repairs to the Premises and fixtures other
than structural repairs. At the end of the term of this Lease, Lessee
shall deliver the Premises in good order and condition, damages by
ordinary wear and tear excepted.
a. The Lessee shall promptly execute and comply with all
statutes, ordinances, rules, orders, regulations and
requirements of any governmental or quasi-governmental
authority, including departments, bureaus and the like, having
jurisdiction applicable to the Premises, for the correction,
prevention, and abatement of
violations, nuisances or other grievances, in, upon, or
connected with the Premises during the term of this Lease, at
the Lessee's own cost and expense.
b. Lessee, Lessee's successors, heirs, executors or
administrators shall not make any alterations to the Premises
without the Lessors' consent in writing, or occupy, or permit
or suffer the same to be occupied for any business or purpose
deemed disreputable or extra-hazardous on account of fire,
under the penalty of damages and forfeiture, and in the event
of a breach thereof, the term herein shall immediately cease
and terminate at the option of the Lessors as if it were the
expiration of the original term.
c. Lessee will not do anything in or to the Premises, or bring
anything into the Premises, or permit anything to be done or
brought into or kept in the Premises, which will in any way
increase the rate of insurance on said Premises, nor use the
Premises or any part thereof, nor allow or permit its use for
any business or purpose which would cause an increase in the
rate of insurance on said building, and the Lessee agrees to
pay as additional rent the cost of any increase in insurance
on demand by Lessors.
7. REAL ESTATE TAXES
Lessee acknowledges that the Premises comprise one hundred percent
(100%) of the building, and Lessee shall be responsible for the payment
of all real estate taxes assessed against the Premises. In the event
that real estate taxes due and owing by Lessors for the building shall
be increased above those charges during the base year (which is defined
as the tax or fiscal year used by the governmental authority assessing
such taxes in effect on the commencement date of this Lease), Lessee
agrees to pay as additional rent within thirty (30) days of receipt of
notice from Lessors, an amount equal to such additional real estate
8. SERVICES AND UTILITIES
Lessee shall pay for all telephone and other such services for the
leased Premises as contracted for by Lessee.
9. PERSONAL PROPERTY TAXES
Lessee agrees to pay or cause to be paid, before delinquency, any and
all taxes levied or assessed and which become payable during the term
hereof upon all equipment, furniture, fixtures, and other personal
property located in the Premises.
10. DAMAGE TO THE PREMISES
Lessee must give Lessors prompt notice of fire, accident, casualty,
damage or dangerous or defective conditions with respect to the
Premises. Lessors shall only be responsible for the damaged structural
parts of the Premises. Lessors are not required to repair or replace
any equipment, fixtures, furnishings or decorations unless originally
installed by Lessors. Lessors are not responsible for delays due to
settling insurance claims, obtaining estimates, labor and supply
problems or any other cause not fully under Lessors' control.
a. If the fire or other casualty is caused by an act or neglect
of Lessee, Lessee's employees or persons on the Premises with
permission of Lessee, or at the time of the fire or casualty
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