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EXHIBIT 10.3
LEASE OF BUSINESS PREMISES
Lease made this the 22nd day of March, 2000, between Xxxxxxx X.
Xxxxxxxx and Xxxxxx Xxxxxxxx, Palm Beach County, Florida, herein referred to
together as "Lessor'" and BBC Graphics of Palm Beach, Inc., having its principal
place of business in Palm Beach County, Florida, herein referred to as "Lessee."
In consideration of the mutual covenants contained herein, the parties
agree as follows:
SECTION ONE
DESCRIPTION OF PREMISES
Lessor leases to Lessee the premises located at 0000 Xxx Xxxxxx, Xxxxx
00, Xxxx Xxxxx, Xxxx Xxxxx Xxxxxx, Florida, consisting of 1000 square feet.
SECTION TWO
TERM
The term of this lease is for three years, beginning on April 7, 2000,
and terminating on April 6, 2003, at twelve o'clock p.m.
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SECTION THREE
RENT
The rent under this lease is $31,500.00. Lessee shall pay Lessor the
rent in installments of $850 plus sales tax and condominium maintenance fee on
the seventh day of each month beginning on April 7,2000 through April 6, 2001,
$875.00 plus sales tax and condominium maintenance fee an the seventh day of
each month beginning on April 7, 2001 through April 6, 2002 and $900.00 plus
sales tax and condominium maintenance fee on the seventh day of each month
beginning on April 7, 2002 through April 6, 2003. Initially, the sales tax is 6%
($51.00) and the monthly maintenance fee is $98.00 for a total initial monthly
payment of $999.00. In addition to the rental provided for herein, Lessee shall
pay $1,896.00 upon the signing of this Lease as a security deposit. In addition
to the rental provided for in the original term and extensions thereof, there
shall be an adjustment made in the rental based on any increase in real estate
taxes and condominium maintenance pertaining to said premises so that to the
extent that real estate taxes and condominium maintenance increase over the
current assessments, Lessees shall pay additional rental to Lessor in the amount
of said increase. Said adjustment for taxes to be made in November of each year
when actual real estate taxes for said year are known and may be compared with
taxes for the prior year and for assessments, when they occur. Lessor will
provide copies of tax bills and condominium fee notices if requested by lessee.
SECTION FOUR
USE OF PREMISES
The premises are to be used for the purposes of a graphic studio and
office. Lessee shall restrict its use to such purposes, and shall not use or
permit the use of the premises for any other purpose without the written consent
of Lessor, or Lessor's authorized agent.
SECTION FIVE
RESTRICTIONS ON USE
Lessee shall not use the premises in any manner that will increase
risks covered by insurance on the premises and result in an increase in the rate
of insurance or a cancellation of any insurance policy, even if such use may be
in furtherance of Lessee's business purposes. Lessee shall not keep, use, or
sell anything prohibited by any policy of fire insurance covering the premises,
and shall comply with all requirements of the insurers applicable to the
premises necessary to keep in force the fire and liability insurance.
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SECTION SIX
WASTE, NUISANCE, OR UNLAWFUL ACTIVITY
Lessee shall not allow any waste or nuisance on the premises, or use or
allow the premises to be used for any unlawful purpose.
SECTION SEVEN
UTILITIES
Lessee shall arrange and pay for all utilities furnished to the
premises for the term of this lease, including electricity, and telephone
service. Water, sewer, and normal trash collection is included with the
condominium maintenance fee pass- through.
SECTION EIGHT
REPAIRS AND MAINTENANCE
Lessee shall maintain the premises and keep them in good repair at its
expense, except that the exterior walls and roof will be maintained in good
condition by Lessor. Lessee shall maintain and repair interior and shall be
responsible for maintenance and repair of fixtures, including external motorized
storm shutters. Lessor will warrant the Heating/Air Conditioning system for 90
days. After 90 days, Lessee will pay one third and Lessor will pay two thirds of
the cost of any repairs to the Heating/Air Conditioning system and external
motorized storm shutters required for the balance of the term of the lease. In
the event of a threat or warning of any hurricane or topical storm, Lessee shall
use his best efforts to protect the premises including the activation of storm
shutters provided by Lessor. In addition, Lessee shell keep the sidewalk and
parking area adjacent to the premium in a clean and unobstructed condition.
SECTION NINE
DELIVERY, ACCEPTANCE AND SURRENDER OE PREMISES
Lessor represents that the premises are in fit condition for use by
Lessee. Acceptance of the premises by Lessee shall be construed as recognition
that the premises are in a good state of repair and in sanitary condition.
Lessee shall surrender the premises at the end of the lease term, or any renewal
thereof, in the same condition as when Lessee took possession, allowing for
reasonable use and wear, and damage by acts of God, including fires and storms.
Before delivery, Lessee shall remove all business signs placed on the premises
by Lessee and restore the portion of the premises on which they were placed in
the same condition as when received.
SECTION TEN
PARTIAL DESTRUCTION OF PREMISES
Partial destruction of the leased premises shall not render this lease
void or voidable, nor terminate it except as herein provided. If the premises
are partially
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destroyed during the term of this lease, Lessor shall repair them when such
repairs can be made in conformity with governmental laws and regulations, within
90 days of the partial destruction. Written notice of the intention of Lessor to
repair shall be given to Lessee within 30 days after the partial destruction.
Rent will be reduced proportionately to the extent to which the partial
destruction interferes with the business conducted on the premises by Lessee. If
the repairs cannot be made within the time specified above, Lessor shall have
the option to make them within a reasonable time and continue this lease in
effect with proportional rent rebate to Lessee as provided for herein. If the
repairs cannot be made in 90 days, or if Lessor does not give notice within 30
days or partial destruction, either party shall have the option to terminate
this lease.
SECTION ELEVEN
ENTRY ON PREMISES BY LESSOR
Lessor reserves the right to enter on the premises at reasonable times
to inspect them, perform required maintenance and repairs, or make additions,
additions, or modifications to any part of the building in which the premises
are located, and Lessee shall permit Lessor to do so. Lessor may erect
scaffolding fences, and similar structures, post relevant notices, and place
moveable equipment in connection with making alterations, additions, or repairs.
SECTION TWELVE
SIGNS, AWNINGS, AND MARQUEES INSTALLED BY LESSEE
Lessee shall not construct or place signs, awnings, marquees, or other
structures projecting from the exterior of the premises without the written
consent of Lessor. Lessee shall remove signs, displays, advertisements, or
decorations it has placed on the premises without permission. If Lessee fails to
remove such signs, displays, advertisements, or decorations within 30 days after
receiving written notice from Lessor to remove them, Lessor reserves the right
to enter the premises and remove them at the expense of Lessee. Lessor agrees
that the existing signs, awnings and other displays on the premises at the
commencement of this lease are acceptable.
SECTION THIRTEEN
NONLIABILITY OF LESSOR FOR DAMAGES
Lessor shall not be liable for liability or damage, claims for injury
to persons or property from any cause relating to the occupancy of the premises
by Lessee, including
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those arising out of damages or losses occurring on sidewalks and other areas
adjacent to the leased premises during the term of this lease or any extension
thereof. Lessee shall indemnify Lessor from all liability, loss, or other damage
claims or obligations resulting from any injuries or losses of this nature.
Lessee further agrees to pay to Lessor any and all attorney's fees expended by
Lessor as a result of Lessor being involuntarily made a party defendant to any
litigation concerning this lease or the rented property.
SECTION FOURTEEN
INSURANCE
Lessee agrees that during the term of this lease or any extensions
hereof to keep the interior of the building and improvements insured against
fire, casualty, and liability. Lessee further agrees to keep all plate glass
insured against damage. Said insurance shall include liability amounts of at
least $50,000/$100,000 and Lessee shall be required to produce proof of such
coverage upon request of Lessor.
SECTION FIFTEEN
ASSIGNMENT, SUBLEASE, OR LICENSE
Lessee shall not assign or sublease the premises, or any right or
privilege connected therewith, or allow any other person except agents and
employees of Lessee to occupy the premises or any part thereof without first
obtaining the written consent of Lessor which shall not unreasonably be
withhold. A consent by Lessor shall not be a consent to a subsequent assignment,
sublease, or occupation by other persons. An unauthorized assignment, sublease,
or license to occupy by Lessee shall be void and shall terminate the lease at
the option of Lessor. The interest of Lessee in this lease is not assignable by
operation of law without the written consent of Lessor.
SECTION SIXTEEN
BREACH
The appointment of a receiver to take possession of the assets of
Lessee, a general assignment for the benefit of the creditors of Lessee, any
action taken or allowed to be taken by Lessee under any bankruptcy act, or the
failure of Lessee to comply with each and every term and condition of this lease
shall constitute a breach of this lease. Lessee shall have 30 days after receipt
of written notice from Lessor of any breach to correct the conditions specified
in the notice, or if the corrections cannot be made within the 30 day period,
Lessee shall have a reasonable time to correct the default if action is
commenced by Lessee within 30 days after receipt of the notice. This section
shall not apply to payment of rent in a timely manner.
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SECTION SEVENTEEN
REMEDIES OF LESSOR FOR BREACH BY LESSEE
Lessor shall have the following remedies in addition to its other
rights and remedies in the event Lessee breaches this lease agreement and fails
to make corrections as set forth in Section Sixteen:
1. Lessor may re-enter the premises immediately and remove the property
and personnel of Lessee, store the property in a public warehouse or at
a place selected by Lessor, at the expense of Lessee.
2. After re-entry, Lessor may terminate the lease on giving 30 days
written notice of termination to Lessee. Without such notice, re-entry
will not terminate the lease. On termination Lessor may recover from
Lessee all damages resulting from the breach, including the cost of
recovering the premises and the worth of the balance of this lease over
the reasonable rental value of the premises for the remainder of the
lease term, which sum shall be immediately due Lessor from Lessee.
3. After re-entering, Lessor may relet the premises or any part thereof
for any term without terminating the lease, at such rent and on such
term as it may choose. Lessor may make alterations and repairs to the
premises. The duties and liabilities of the parties if the premises are
relet as provided herein shall be as follows:
a. In addition to Lessee's liability to Lessor for breach of the
lease, Lessee shall be liable for all expenses of the
reletting, for the alterations and repairs made, and for the
difference between the rent received by Lessor under the new
lease agreement and the rent installments that are due for the
same period under this lease.
x. Xxxxxx at its option shall have the right to apply the rent
received from reletting the premises.
i. to reduce Lessee's indebtedness to Lessor under the
lease, not including indebtedness for rent,
ii. to expenses of the reletting and alterations and
repairs made,
iii. to rent due under this lease, or
iv. to payment of future rent under this lease as it
becomes due.
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If the new Lessee does not pay a rent installment promptly to Lessor, and the
rent installment has been credited in advance of payment to the indebtedness of
Lessee other than rent, or if rentals from the new Lessee have been otherwise
applied by Lessor as provided for herein, and during any rent installment
period, are less than the rent payable for the corresponding installment period
under this lease, Lessee shall pay Lessor the deficiency, separately for each
rent installment deficiency period, and before the end of that period. Lessor
may at any time after such reletting terminate the lease for the breach on which
Lessor based the re-entry and relet the premises.
4. After re-entry, Lessor may procure the appointment of a receiver to
take possession and collect rents and profit of the business of Lessee,
and if necessary, to collect the rents and profits the receiver may
carry on the business of Lessee and take possession of the personal
property used in the business of Lessee, including inventory, trade
fixtures, and furnishings and use them in the business without
compensating Lessee. Proceedings for appointment of a receiver and the
conduct of the business of Lessee by the receiver, shall not terminate
and forfeit this lease unless Lessor has given written notice of
termination to Lessee as provided herein.
SECTION EIGHTEEN
ATTORNEY'S FEES
If an action is filed to enforce any agreement contained in this lease,
or for breach of any covenant or condition, the losing party shall pay tot he
prevailing party reasonable attorney's fees for the services of such party's
attorney in the action, all fees to be fixed by the Court.
SECTION NINETEEN
CONDEMNATION
Eminent domain proceedings resulting in the condemnation of a part of
the premises leased herein, but leaving the remaining premises usable by Lessee
for the purposes of its business, will not terminate this lease unless Lessor,
at its option, terminates the lease by giving written notice of termination to
Lessee. The effect of any condemnation, where the option to terminate is
exercised, will be to terminate to lease as to the portion of the premises
condemned, and the lease of the remainder of the lease term shall be reduced by
the amount that the usefulness of the premises has been reduced for the business
purposes of Lessee. Lessee hereby assigns and transfers to Lessor any claim he
may have to compensation for damages as a result of any condemnation.
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SECTION TWENTY
LESSOR IMPROVEMENTS
Prior to Lessee's occupancy, Lessor will paint entire suite, install
new carpet or provide clean, spot free carpet in good condition throughout
premises, deodorize premises, and turn over premises with no gas, oil smells or
residue on the floor, pressure clean floors and remove oil stains. Lessor will
remove all of former tenant's items excluding cabinet. All fixtures and blinds
will be in good working order. Lessor will provide new mini-blinds at front
door.
SECTION TWENTY-ONE
OPTION TO RENEW
Lessee shall have an option to renew this lease for two additional
terms of one year at the current market price to be determined by Lessor, but in
any event not less than $900.00 per month. If Lessee is not in default under any
of the terms and conditions of this lease at the conclusion of the initial
lease. The option may be exercised by notifying Lessor in writing not later than
ninety (90) days prior to the termination of the lease period of Lessee's intent
to exercise the option whereupon the parties shall execute a new lease with the
same terms and conditions as the existing lease.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day
and year above first written.
WITNESSES:
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxx Xxxxxxx Xxxxxxx X. Xxxxxxxx, Lessor
/s/ Xxxxxx Xxxxxxxx
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Xxxxxx Xxxxxxxx, Lessor
/s/ Xxxxxx Xxxxxxx /s/ Xxxxxxx Xxxxx
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Xxxxxx Xxxxxxx Xxxxxxx Xxxxx,
President, BBC Graphics of Palm
Beach, Inc.
/s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx
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