LEASE AGREEMENT
Exhibit
10.1
LEASE
AGREEMENT
THIS
OFFICE LEASE (the "lease") made as of 1st
day of
March, 2007, between Xxxxxxx
Xxxxxx Xxxxxxx, ("landlord"), and Southern Bella, Inc., a Delaware corporation
("tenant").
ARTICLE
I. Term
(A)
Premises
Landlord
hereby leases to tenant and tenant hereby leases from landlord that certain
space (the "premises") described or shown on exhibit A attached hereto, in
the
building located at 0000 Xxxxxxxx Xxx., Xxxxxxxxx, Xxxxxxxx 00000 (the
"property," as further described in Article XXVI), subject to the terms and
conditions more particularly hereinafter set forth.
(B)
Term
The
term
("term") of this lease shall commence on March 1, 2007 ("commencement date")
and
end on February 28, 2009 ("expiration date"), unless sooner terminated or
extended as provided herein. Tenant, at his sole option, may terminate this
Lease Agreement after
September 1, 2007, upon providing Landlord (60) days written notice of his
intention to terminate this Lease Agreement.
Landlord
and tenant agree that the rentable area of the premises is 3,000 square feet
and
that the rentable area of the property is 3,383 square feet. The parties agree
that such square footage shall be final for purposes of this lease, whether
such
areas shall be more or less as a result of variations in measurement or methods
of measurement.
(C)
Renewal
term
Tenant
shall have the right to extend the term of this lease for one consecutive
two-year period, beginning March 1, 2009 and ending February 28, 2011 on the
following conditions:
(1)
Tenant shall notify landlord in writing of its election to extend on or before
180 days prior to the expiration of the term, as extended if applicable, of
this
lease;
(2)
Tenant shall not, at the time of giving notice or at the commencement of the
respective extended term, be in default hereunder beyond the expiration of
the
applicable cure period; and
(3)
Each
extended period shall be upon the same terms, covenants, and conditions of
this
lease (including tax and expense stops) except the monthly base rent shall
be
increased as provided in article II.
As
used
herein, the word "term" shall include the extended period.
ARTICLE
II. Base Rent
(A)
From
the rent commencement date until February 28, 2009, tenant shall pay landlord
monthly base rent of THIRTEEN HUNDRED DOLLARS ($1,300.00 US).
(B)
If
tenant properly exercises its renewal option, from March 1, 2009 until February
28, 2011, tenant shall pay landlord monthly base rent of $1,400.
(C)
All
monthly base rent shall be paid in advance, on or before the first day of each
calendar month during the term. Any rent paid more than 10 days after due shall
accrue interest from the due date at the default rate (as defined in article
XXVI) until payment is received by landlord.
ARTICLE
III. Additional Rent
(A)
Taxes
Landlord
shall pay all taxes. The term "taxes" shall have the meanings specified in
article XXVI.
(B)
Operating expenses
Landlord
shall pay all operating expenses. The term "operating expenses" shall have
the
meaning specified in article XXVI.
Tenant
shall pay all utilities for the property, including, but not limited to,
electricity, power, gas, steam, oil, or other fuel, water, sewer, lighting,
heating, air conditioning, and ventilating.
ARTICLE
IV. Commencement of Rent and Possession
(A)
Rent
commencement
Rent
shall commence on March 1, 2007 If tenant shall commence occupying only a
portion of the premises prior to such time, rent shall be prorated based on
the
number of rentable square feet occupied by tenant. The date on which rent
commences is sometimes herein referred to as the "rent commencement
date."
(B)
Access to premises
Tenant
shall have unrestricted 24-hour access to the premises. In the case of a
casualty, repair, maintenance, or emergency situation, tenant's access may
be
restricted but not so as to unduly interfere with tenant's use and occupancy
of
the premises.
ARTICLE
V. Condition of Premises
Tenant
has inspected the premises and accepts the same "as is" without any agreements,
representations, understandings, or obligations on the part of landlord to
perform any alterations, repairs, or improvements except as otherwise provided
in this lease, or any warranty of habitability or representation in landlord
that the premises are fit for tenant's intended use.
ARTICLE
VI. Use and Rules
Tenant
shall use and occupy the premises for offices and for no other purpose
whatsoever, in compliance with all applicable laws, and without unreasonably
disturbing or interfering with any other tenant or occupant of the property.
Tenant shall comply with all of the rules which are set forth in Rider One
attached to this lease, as the same may be amended or supplemented hereunder
(the "rules"). Landlord shall have the right to reasonably amend such rules
and
supplement the same with other reasonable rules (neither inconsistent with
this
lease nor imposing any additional obligations on tenant to make payments to
landlord) relating to the property, or the promotion of safety, care,
cleanliness, or good order therein, and all such amendments or new rules after
notice thereof to tenant shall be binding upon tenant. All such rules shall
be
applied on a nondiscriminatory basis to all other tenants in the property,
but
nothing herein shall be construed to give tenant or any other person (as defined
in article XXVI) any claim, demand, or cause of action against landlord arising
out of the violation of such rules by any other tenant, lessee, occupant,
visitor, or user of the property, or out of the enforcement or waiver of the
rules by landlord in any particular instance.
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The
business known as Entrée Vous, shall have the right to occupy a portion of the
subject matter premises during any term, or renewal term, hereof, as the case
may be at no charge to Entrée Vous as long as Entrée Vous does not interfere
with any of the operations of the Tenant.
ARTICLE
VII. Services and Utilities
Landlord
shall provide the following services and utilities on all days during the term,
unless otherwise stated herein:
(A)
Payment for electricity
Notwithstanding
anything to the contrary contained herein, tenant shall pay landlord for all
electricity consumed on the premises during the term at a rate based on
landlord's direct cost. Tenant shall not be responsible for any electricity
consumed by Entrée Vous.
(B)
Metering and supplemental systems
Landlord
shall be entitled to install and operate meters or any other system for
monitoring any services or utilities used by tenant.
(C)
Common areas
Landlord
shall keep the plazas, sidewalks, curbs, driveways, entrances, and public areas
of the property clean and in good condition, free of accumulation of dirt and
rubbish and, as necessary, remove snow and ice therefrom. Tenant shall pay
Landlord for any reasonable cost incurred by Landlord for such services.
ARTICLE
VIII. Alterations and Liens
(A)
Alterations
Tenant
shall not, without the prior written consent of landlord, make any additions,
changes, alterations, or improvements ("alterations") to the premises. Landlord
may impose reasonable requirements as a condition of such consent including,
without limitation, the submission of drawings, plans, and specifications for
landlord's prior written approval, affidavits listing all contractors,
subcontractors, and suppliers, affidavits from engineers acceptable to landlord
stating that the alterations will not adversely affect the systems and equipment
or the structure of the property, and requirements as to the manner and times
in
which such alterations shall be done. Tenant shall give written notice to
landlord of any intent to make alterations, together with copies of the plans
and specifications, if any, for such alterations. Tenant agrees that alterations
shall be performed in a good and workmanlike manner, as coordinated and approved
by landlord, and all materials used shall be of a quality comparable to or
better than those in the premises and property and, where required, shall be
in
accordance with plans and specifications approved by landlord.
(B)
No
liens
Tenant
shall keep the property and premises free from any mechanic's, materialman's,
or
similar liens or other such encumbrances in connection with any alterations
on
or respecting the premises and shall indemnify and hold landlord harmless from
and against any claims, liabilities, judgments, or costs (including attorney
fees) arising out of the same or in connection therewith. Tenant shall give
landlord notice at least 20 days prior to the commencement of any alterations
on
the premises (or such additional time as may be necessary under applicable
laws)
to afford landlord the opportunity of posting and recording appropriate notices
of nonresponsibility. Tenant shall remove any such lien or encumbrance within
15
days after written notice by landlord, and if tenant shall fail to do so,
landlord may pay the amount necessary to remove such lien or encumbrance,
without being responsible for making any investigation as to the validity
thereof, and the amount so paid shall be deemed additional rent reserved under
this lease due and payable upon demand, without limitation as to other remedies
available to landlord under this lease. Any claim to a lien or encumbrance
upon
the property or premises arising in connection with any alterations on or
respecting the premises not performed by or at the request of landlord, shall
be
null and void, or at landlord's option shall attach only against tenant's
interest in the premises and shall in all respects be subordinate to landlord's
title to the property and premises.
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ARTICLE
IX. Repairs and Maintenance
(A)
Landlord's obligations
Landlord
shall keep and maintain the fire extinguishers, plumbing and other fixtures
which are not part of the systems and equipment, alterations and improvements
whether installed by landlord or tenant in good order and sanitary condition.
Tenant shall commit no waste on the premises or the property.
Landlord
shall keep the exterior of the premises roof, structural components, systems
and
equipment, and common areas of the property in good and sanitary condition
and
good working order and repair, and perform all maintenance thereto. In addition,
landlord shall make all repairs required inside the premises to the exclusion
of
(1) repairs made necessary as a result of misuse or neglect by tenant; or (2)
damage resulting from ordinary wear and tear.
In
the
event landlord fails to make the repairs inside the premises which it is
obligated to make within a reasonable time after tenant shall have notified
landlord in writing of such default, tenant may make or cause the repairs to
be
made. Landlord agrees to pay the cost thereof promptly upon receipt of a
statement for such expenses.
ARTICLE
X. Casualty Damage
(A)
Restoration of damage
If
the
premises or any part thereof shall be damaged by fire or other casualty, tenant
shall give prompt notice to landlord. In such event and within 120 days from
the
date of such casualty, landlord shall (at landlord's expense, and not as a
part
of operating expenses) commence to restore the premises and thereafter
diligently complete such restoration. Such repair shall substantially restore
the condition of the premises prior to the casualty, except for modifications
required by zoning and building codes and other laws, and except that landlord
shall not be required to repair or replace any of tenant's furniture,
furnishings, fixtures, or equipment. Landlord shall not be liable for any
inconvenience or annoyance to tenant or its visitors, or injury to tenant's
business resulting in any way from such damage or the repair thereof, except
that landlord shall allow tenant a proportionate abatement of rent during the
time and to the extent the premises are unfit for occupancy, and not occupied
by
tenant as a result of such damages.
(B)
Termination of lease for substantial damage
Notwithstanding
the foregoing to the contrary, if the property shall be damaged by fire or
other
casualty, landlord shall notify tenant within 90 days after the fire or other
casualty, and within 15 days after such notice, landlord or tenant may at
either's option, terminate, without liability to the other party, this lease
by
giving notice to the other of such termination in the event that any of the
following conditions occur:
(1)
In
landlord's reasonable opinion, repairs cannot be completed within 120 days
after
being commenced without the payment of overtime or other premiums;
(2)
In
landlord's reasonable opinion, more than 30% of the rentable area of the
property is damaged to any material extent (which shall include damage by smoke
or water) whether or not the premises shall have been damaged by such fire
or
other casualty;
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(3)
Any
holder (as defined in article XXVI) shall require that the insurance proceeds
or
any portion thereof be used to retire the mortgage debt (or shall terminate
the
ground lease, as the case may be); or
(4)
The
damage is not covered by landlord's insurance policies (provided landlord has
maintained the insurance coverage required hereunder).In the event said notice
to terminate is not given, landlord agrees to complete the required repairs
and
the restoration, replacement, and rebuilding of the property, subject to
unavoidable delay, within two years from the date of such casualty. Upon failure
of landlord to complete such work on or before such completion date as the
same
may be thus extended, tenant may, at its option, cancel this lease by written
notice to landlord.
ARTICLE
XI. Insurance, Subrogation, and Waiver of Claims
(A)
Landlord's insurance
Landlord
shall, as part of operating expenses, maintain during the term full
comprehensive public liability insurance. Landlord shall also, as part of
operating expenses, maintain during the term primary, noncontributory insurance
on the property against fire and extended coverage or "all-risk" insurance,
in
an amount equal to 100% of the full insurable value of the property (exclusive
of the costs of excavation, foundations, and footings), and such other coverage
as landlord shall deem appropriate or that may be required by any holder (as
defined in article XXVI).
(B)
Bearing of risk of loss
By
this
article, landlord and tenant intend that the risk of loss described above shall
be borne by responsible insurance carriers to the extent above provided, and
landlord and tenant hereby agree to look solely to, and seek recovery only
from,
their respective insurance carriers in the event of a loss to the extent that
such coverage is agreed to be provided hereunder. For this purpose, any
applicable deductible amount shall be treated as though it were recoverable
under such policies. The parties each hereby waive all rights and claims against
each other for such losses, and waive all rights of subrogation of their
respective insurers. The parties further agree that their respective insurance
policies are now, or shall be, endorsed such that said waiver of subrogation
shall in no way affect the validity of such policies or the right of the insured
to recover thereunder.
ARTICLE
XII. Condemnation
(A)
Condemnation proceeds to landlord
If
the
whole or any part of the premises or property shall be taken by power of eminent
domain or condemned by any competent authority for any public or quasi-public
use or purpose, or if landlord shall grant a deed or other instrument in lieu
of
such taking by eminent domain or condemnation, landlord (and if more than 10%
of
the rentable area of the premises is taken, or if access to the premises is
substantially impaired, tenant) shall have the option to terminate this lease
on
30 days' notice, provided such notice is given no later than 60 days after
the
date of such taking, condemnation, reconfiguration, vacation, deed, or other
instrument. Landlord shall be entitled to receive the entire award or payment
in
connection therewith ("condemnation proceeds") without any payment to tenant
(except as set forth in paragraph (B) below) and tenant hereby irrevocably
assigns to landlord its interest in such award or payment, except that tenant
shall have the right to file any separate claim available to tenant for any
taking of tenant's personal property and fixtures belonging to tenant and
removable by tenant upon expiration of the term, and for moving expenses (so
long as such claim does not diminish the award available to landlord or any
holder, and such claim is payable separately to tenant). All rent shall be
apportioned as of the date of such termination, or the date of such taking,
whichever shall first occur. If any part of the premises shall be taken and
this
lease shall not be so terminated, the rent shall be proportionately
abated.
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(B)
Payment to tenant
Notwithstanding
the foregoing, if this lease shall terminate pursuant to paragraph (A) above
or
paragraph (C) below, landlord agrees to pay tenant an amount calculated as
follows:
(1)
Landlord shall pay tenant that portion of the condemnation proceeds attributable
to the "value of tenant's leasehold improvements"; and
(2)
Landlord shall be entitled to receive and retain as its own property the entire
condemnation proceeds. To determine the value of tenant's leasehold
improvements, landlord and tenant shall each select a real estate appraiser
who
is a duly qualified member of the American Institute of Real Estate Appraisers
(or of comparable qualification) and such appraisers shall determine the fair
market value of the property (including the premises) so condemned or taken,
which appraisal is referred to herein as "land and improvements appraisal."
Such
appraiser shall then determine the fair market value of the improvements (other
than trade fixtures and personal property which tenant may remove from the
premises) tenant has made to the premises, which appraisal is referred to herein
as "tenant's improvements appraisal." If the two appraisers so appointed cannot
agree, they shall select a third appraiser similarly qualified, and the decision
of the majority shall constitute the decision of the appraisers.
In
the
event the condemnation proceeds shall equal the amount of the land and
improvements appraisal, the value of tenant's leasehold improvements shall
be
equal to the amount of tenant's improvements appraisal. In the event the
condemnation proceeds shall be less or more than the amount of the land and
improvements appraisal, the value of tenant's leasehold improvements shall
be
determined by multiplying the condemnation proceeds by a fraction, the
denominator of which shall be the land and improvements appraisal and the
numerator of which shall be the tenant's improvements appraisal and the
resulting amount shall constitute the value of tenant's leasehold
improvements.
(C)
Partial condemnation
If
the
space so taken or condemned, in the event that less than the whole or
substantially the whole of the property or the premises be condemned or taken,
is such that in the reasonable exercise of tenant's business judgment the area
of the premises remaining after the condemnation is insufficient for tenant
to
conduct its business in an efficient businesslike manner, tenant may, at its
option, terminate the lease and the term and estate hereby granted as of the
date of the taking of possession for such use or purpose by notifying landlord
in writing of such termination.
(D)
Rent
abatement
Upon
any
such condemnation or taking referred to in paragraph (C) above, if the lease
continues in force as to any part of the premises, the base rent and tenant's
pro rata share shall be diminished by an amount proportionate to the part of
the
premises which may be so condemned or taken. Landlord shall, at its expense,
proceed with reasonable diligence to repair, alter, and restore the remaining
part of the building and the premises to substantially their former condition
to
the extent that the same may be feasible.
ARTICLE
XIII. Return of Possession
(A)
Surrender of possession
At
the
termination of this lease by lapse of time or otherwise or upon termination
of
tenant's right of possession, whichever shall first occur, tenant shall
surrender possession of the premises and all keys therefor to landlord, and
advise landlord as to the combination of any locks or vaults then remaining
in
the premises. In such event, tenant shall return the premises and all additions,
changes, alterations, improvements, and fixtures in as good an order and
condition as when received except for ordinary wear and tear, landlord's repair
obligation, and casualty. All obligations of either party arising during or
attributable to the period ending on or before expiration or earlier termination
of this lease, and all terms and conditions expressly pertaining to obligations
of either party upon or following such expiration or earlier termination,
including, without limitation, the provisions of this article XIII, shall
survive such expiration or earlier termination.
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(B)
Removal of trade fixtures
Tenant
shall remove tenant's trade fixtures and personal property, including, without
limitation, furniture, machinery, equipment, and safes, prior to the end of
the
term or within 10 days following termination of tenant's right of possession
of
the premises, whichever shall first occur. All additions, changes, alterations,
improvements, and fixtures (except such trade fixtures and personal property
belonging to tenant) in or upon the premises, whether installed by tenant or
landlord, shall be landlord's property and shall remain upon the premises,
all
without compensation, allowance, or credit to tenant.
(C)
Landlord may perform tenant's duty to remove
If
tenant
shall fail to perform any repairs or restoration, or fail to remove any items
from the premises as required hereunder, landlord may do so, and tenant shall
pay landlord the cost thereof upon demand. All property removed from the
premises by landlord pursuant to any provisions of this lease or any law may
be
handled or stored by the landlord at the cost and expense of the tenant;
landlord shall, in no event, be responsible for the value, preservation, or
safekeeping thereof. Tenant shall pay landlord for all expenses incurred by
landlord in such handling and storage, including landlord's reasonable storage
charges for so long as the same shall be in landlord's possession or under
landlord's control. All property not removed from the premises or retaken from
storage by tenant within 30 days after the end of the term, or termination
of
tenant's right to possession, whichever shall first occur, shall, at landlord's
option, be conclusively deemed to have been conveyed by tenant to landlord
as by
xxxx of sale without further payment or credit by landlord to tenant. To the
extent permitted by applicable law, landlord shall have a lien against such
property for the costs incurred in removing and storing the same.
ARTICLE
XIV. Holding Over
Should
tenant retain possession of the premises or any part thereof after the
termination of this lease, whether by lapse of time or otherwise, tenant shall
be deemed to be a tenant from month to month only and subject to all other
terms
and conditions of this lease, except that monthly base rent and additional
rent
shall be increased to 150% of that payable in the month in which this lease
terminates. If such holding over shall not have been with landlord's express
written consent, tenant shall also pay all damages sustained by landlord on
account thereof. The foregoing provisions shall not serve to extend the term
(although tenant shall remain bound to comply with all provisions of this lease
until tenant vacates the premises, and shall be subject to the provisions of
article XIII), and landlord may freely pursue any right of re-entry without
further notice.
ARTICLE
XV. Waiver
No
provision of this lease will be deemed waived by either party unless expressly
waived in a writing signed by the waiving party. No waiver shall be implied
by
delay or any other act or omission of either party. No waiver by either party
of
any provision of this lease shall be deemed a waiver of such provision with
respect to any subsequent matter relating to such provision; landlord's consent
or approval respecting any action by tenant shall not constitute a waiver of
the
requirement for obtaining landlord's consent or approval respecting any
subsequent such action. Subsequent acceptance of rent or any other amounts
by
landlord or its employees or agents shall not reinstate or extend the term
or
tenant's right to possession after termination of either of the same and shall
not constitute a waiver of any breach by tenant of any term or condition of
this
lease, regardless of landlord's knowledge of such breach at the time such rent
is accepted. The acceptance of rent, or of the performance of any other term
or
condition by any person other than tenant, including any transferee, shall
not
constitute a waiver of landlord's right to approve any
transfer.
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ARTICLE
XVII. Attorney Fees
In
the
event of any litigation between the parties, the prevailing party shall be
entitled to recover from the other party all reasonable attorney fees, costs,
and expenses of the prevailing party incurred in connection with such
litigation, except as may be limited by applicable law.
ARTICLE
XVII. Personal Property Taxes
Tenant
shall pay prior to delinquency all taxes, charges, or other governmental
impositions assessed against or levied upon tenant's fixtures, furnishings,
equipment, and other personal property located in the premises.
ARTICLE
XVIII. Safety and Security Devices, Services, and Programs
Safety
and security devices, services, and programs provided by landlord, if any,
while
intended to deter crime and ensure safety, may not, in given instances, prevent
theft or other criminal acts, or ensure safety of person or property in the
event of casualty. Tenant hereby assumes the risk of such acts or occurrences
and shall maintain adequate insurance coverage therefor.
ARTICLE
XIX. Reasonable Approvals
Whenever
landlord's and/or tenant’s approval or consent is expressly required under this
lease, such shall not be withheld unreasonably.
ARTICLE
XX. Subordination, Attornment, and Mortgagee Protection
(A)
Subordination and nondisturbance
Tenant
agrees that this lease is and shall be subject and subordinate to all mortgages
(as defined in article XXVI) now or hereafter placed upon the property,
provided, however, that such subordination shall be subject to the express
condition that the holder of any mortgage shall have furnished to tenant a
nondisturbance agreement in recordable form reasonably satisfactory to tenant.
In the event, however, that any holder (as defined in article XXVI) shall elect
to make this lease prior to the lien of its mortgage, and shall give written
notice thereof to tenant, this lease shall be deemed prior to such mortgage.
Tenant shall execute such documentation as landlord may reasonably request
from
time to time, in order to confirm the matters set forth in this article XX,
in
recordable form.
(B)
Attornment
If
any
foreclosure proceedings are initiated by any holder (or if any ground lease
is
terminated), tenant agrees, upon written request of any such holder or any
purchaser at foreclosure sale, as the case may be, to attorn and pay rent to
such party and to execute and deliver any instruments necessary or appropriate
to evidence or effectuate such attornment.
(C)
Mortgagee protection
Tenant
agrees to give any holder, by registered or certified mail, a copy of any notice
of default served by tenant upon the landlord, provided that prior to such
notice tenant has been notified in writing (by way of service on tenant of
a
copy of an assignment of leases, or otherwise) of the address of such holder.
Tenant further agrees that if landlord shall have failed to cure such default
within the times permitted landlord for cure under this lease, any such holder
whose address has been provided to tenant shall have an additional period of
20
days in which to cure. Until the time allowed as aforesaid for such holder
to
cure such default has expired without cure, tenant shall have no right to
terminate this lease by virtue of landlord's default.
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ARTICLE
XXI. Estoppel Certificate
Tenant
shall, from time to time, within 20 days after reasonable written request from
landlord, execute, acknowledge, and deliver to landlord a statement in writing
which attests as follows:
(A)
That
this lease is unmodified and in full force and effect or, if modified, stating
the nature of such modification and certifying that this lease as so modified
is
in full force and effect (or if this lease is claimed not to be in force and
effect, specifying the ground therefor) and any dates to which the rent has
been
paid in advance;
(B)
That
there are not, to tenant's knowledge, any uncured defaults on the part of
landlord hereunder, or specifying such defaults if any are claimed;
and
(C)
Such
other matters as landlord may reasonably request, or as may be reasonably
requested by landlord's current or prospective holders, insurance carriers,
auditors, and prospective purchasers.
Any
such
statement may be relied upon by any such parties. If tenant shall fail to
execute and return such statement within the time required herein, tenant shall
be deemed to have agreed with the matters set forth therein, and landlord,
acting in good faith, shall be authorized, as tenant's attorney in fact, to
execute such statement on behalf of tenant.
ARTICLE
XXII. Assignment and Subletting
(A)
Transfers require consent
Tenant
shall not, without the prior written consent of landlord, take the following
actions:
(1)
Assign, mortgage, pledge, hypothecate, encumber, or otherwise transfer this
lease or any interest hereunder;
(2)
Permit any assignment or other such foregoing transfer of this lease or any
interest hereunder by operation of law;
(3)
Sublet the premises or any part thereof; or
(4)
Permit the use of the premises by any persons (as defined in article XXVI)
other
than tenant and its partners and employees (all of the foregoing are hereinafter
sometimes referred to collectively as "transfers" and any person to whom any
transfer is made or sought to be made is hereinafter sometimes referred to
as a
"transferee").
If
tenant
shall desire landlord's consent to any transfer, tenant shall notify landlord
in
writing, which notice shall include the following information:
(1)
The
proposed effective date (which shall not be less than 30 days nor more than
180
days after tenant's notice);
(2)
The
portion of the premises to be transferred (herein called the "subject
space");
(3)
All
of the terms of the proposed transfer and the consideration therefor, the name
and address of the proposed transferee, and a copy of all documentation
pertaining to the proposed transfer; and
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(4)
Any
other information to enable landlord to determine the financial responsibility,
character, and reputation of the proposed transferee, nature of such
transferee's business, proposed use of the subject space, and such other
information as landlord may reasonably require. Any transfer made without
landlord's prior written consent shall, at landlord's option, be null, void,
and
of no effect.
(B)
Reasonable approval
The
parties hereby agree that Tenant’s request to sublet or assign the premises is
subject to Landlord’s consent, which shall not be unreasonably denied. However,
any such consent to sublet or assign the premises shall not be construed to
release Tenant from any liability for any of its obligations and covenants
contained herein during the first seven months of the initial term.
(C)
Transfer premium
In
the
event landlord consents to any transfer, tenant shall pay landlord 50% of any
transfer premium derived by tenant from such transfer. "Transfer premium" shall
mean all rent, additional rent, or other consideration payable by such
transferee in excess of the rent payable by tenant under this lease (on a
monthly basis during the term, and on a per rentable square foot basis, if
less
than all of the premises is transferred), after deducting from such amounts
payable by the transferee the reasonable expenses incurred by tenant for any
changes, alterations, and improvements to the premises and any brokerage
commissions in connection with the transfer. If a part of the consideration
for
such transfer shall be payable other than in cash, tenant, at its option, shall
either deliver to landlord its share of such noncash consideration in such
form
as is reasonably satisfactory to landlord or make payment in cash. The
percentage of the transfer premium due landlord hereunder shall be paid as
tenant receives payments from such transferee in any calendar month in excess
of
the rent under this lease for such month, within 10 days after tenant receives
such payments.
(D)
Recapture
Tenant
agrees to give landlord notice of any intentions it may have to transfer as
soon
as tenant becomes aware of such intention. Notwithstanding anything to the
contrary contained in this article XXII, landlord shall have the option, by
giving written notice to tenant within 90 days after receipt of tenant's notice
of any intention to transfer, to recapture the subject space in the event such
intention is: (1) to sublease and tenant also gives notice to landlord that
tenant does not intend to reoccupy the subject space after termination of the
sublease, or (2) to make an assignment Such recapture notice shall cancel and
terminate this lease with respect to the subject space as of the date tenant
surrenders the subject space in accordance with the terms of this lease, but
in
no event more than 12 months from the date of the recapture notice. If this
lease shall be cancelled with respect to less than the entire premises, the
rent
reserved herein shall be prorated on the basis of the number of rentable square
feet retained by tenant in proportion to the number of rentable square feet
contained in the premises, this lease as so amended shall continue thereafter
in
full force and effect, and, upon request of either party, the parties shall
execute written confirmation of the same. Anything in the foregoing to the
contrary notwithstanding, the provisions of this paragraph shall not apply
to
transfers under paragraph (B) above.
(E)
Terms
of consent
If
landlord shall grant consent to a transfer, the following conditions
apply:
(1)
The
terms and conditions of this lease, including, among other things, tenant's
liability for the subject space, shall in no way be deemed to have been waived
or modified;
(2)
Such
consent shall not be deemed consent to any further transfer by either tenant
or
transferee;
10
(3)
No
transferee shall succeed to any rights provided in this lease or any amendment
hereto to extend the term of this lease, or to sublease or assign this lease,
any such rights being deemed personal to tenant, provided, however, nothing
in
the foregoing shall prevent tenant from exercising tenant's option to extend
the
term, including, without limitation, after a sublease by tenant, or to further
sublease or assign;
(4)
Tenant shall deliver to landlord promptly after execution an original executed
copy of all documentation pertaining to the transfer; and
(5)
Tenant shall furnish, upon landlord's request, a complete statement, certified
by tenant, setting forth in detail the computation of any transfer premium
tenant has derived and shall derive from such transfer.
Landlord
or its authorized representatives shall have the right at all reasonable times
to audit the books, records, and papers of tenant relating to any transfer,
and
shall have the right to make copies thereof. If the transfer premium respecting
any transfer shall be found to be understated, tenant shall, within 10 days
after demand, pay any additional share of the transfer premium owing to
landlord, and if understated by more than 5%, tenant shall also pay landlord's
cost of such audit and an additional 10% of the total transfer premium. Any
sublease hereunder shall be subordinate and subject to the provisions of this
lease; if this lease shall be terminated during the term of any sublease,
landlord shall have the right to either treat such sublease as cancelled and
repossess the subject space by any lawful means or require that such subtenant
attorn to and recognize landlord as its landlord under any such
sublease.
ARTICLE
XXIII. Rights Reserved by Landlord
(A)
In
general
Landlord
reserves full control over the property to the extent not inconsistent with
tenant's quiet enjoyment, use, and access to the premises as expressly provided
in this lease. Possession of areas necessary for utilities, services, safety,
and operation of the property, including the systems and equipment (as defined
in article XXVI), fire stairways, perimeter walls, space between the finished
ceiling of the premises and the slab of the floor or roof of the property
thereabove, and the use thereof, together with the right to install, maintain,
operate, repair, and replace the systems and equipment, including any of the
same in, through, under, or above the premises in locations that will not
materially interfere with tenant's use of the premises, are hereby excepted
and
reserved to landlord, and not demised to tenant. More particularly, but without
limitation, landlord shall have the rights enumerated in paragraphs (B) through
(F), unless such rights are expressly inconsistent with any other provision
of
this lease, exercisable with reasonable notice and without liability to tenant
for damage or injury to property, person, or business and without effecting
an
eviction, constructive or actual, or disturbance of tenant's use or possession
or giving rise to any claim for set-off or abatement of rent.
(B)
Changes in property
Landlord
reserves the following rights:
(1)
To
change the name or street address of the property;
(2)
To
install and maintain signs on the exterior and interior of the
property;
(3)
To
prescribe the location and style of the suite number and identification sign
or
lettering for the premises occupied by the tenant (which shall be prepared
and
installed by landlord at tenant's expense);
(4)
To
retain at all times, and use in appropriate instances, keys to all doors within
and into the premises;
11
(5)
To
grant to any person the right to conduct any business or render any service
at
the property, whether or not it is the same or similar to the use permitted
tenant by this lease;
(6)
To
have access for landlord and other tenants of the property to any mail deposits
located on the premises according to the rules of the United States Postal
Service;
(7)
To
grant easements and licenses to others; and
(8)
To
maintain or create ownership interests in the property separate from fee title
to the land underlying the same.
These
rights apply provided that all of the actions permitted of landlord under this
paragraph (B) shall be exercised in a reasonable, nondiscriminatory fashion
and
in a manner that will not unduly interfere with tenant's use or enjoyment of
the
premises.
(C)
Entry
of premises
Landlord
reserves the following rights:
(1)
To
enter the premises at reasonable hours for reasonable purposes, including
inspection and supplying janitor service or other services to be provided tenant
hereunder;
(2)
To
show the premises to current and prospective mortgage lenders, ground lessors,
insurers, and prospective purchasers and brokers at reasonable hours during
the
term;
(3)
To
show the premises to prospective tenants at reasonable hours during the last
6
months of the term; and
(4)
To
show, decorate, remodel, repair, alter, or otherwise prepare the premises,
if
tenant shall vacate the same, during the last three months of the
term.
(D)
Alterations and additions
Landlord
reserves the following rights:
(1)
To
decorate and to make alterations, additions, and new improvements, structural
or
otherwise, in or to the property or any part thereof, and any adjacent building,
structure, parking facility, land, street, or alley; and
(E)
Supplementary rights
In
connection with the matters described in paragraph (E), or with any other
repairs, maintenance, or replacement work in or about the property, or to the
systems and equipment, landlord may erect scaffolding and other structures
reasonably required; during such operations, landlord may enter upon the
premises and take into and upon or through any part of the property, including
the premises, all materials required to make such repairs, maintenance,
replacements, alterations, improvements, changes, or additions, and may close
public entry ways, other public areas, stairways, or corridors, and temporarily
interrupt any services or utilities, all without the same constituting an
eviction of tenant, in whole or in part, and without abatement of rent by reason
of loss or interruption to the business of tenant or otherwise, and without
in
any manner rendering landlord liable for damages or relieving tenant from
performance of tenant's obligation under this lease subject to the following
provisions:
(1)
Reasonable access to the premises shall be maintained;
(2)
The
business of tenant shall not be interfered with unreasonably; and
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(3)
Landlord shall provide reasonable advance written or oral notice before entering
the premises (except in emergencies).
ARTICLE
XXIV. Landlord's Remedies
(A)
Default
The
occurrence of any one or more of the following events shall constitute a
"default" by tenant, which, if not cured within any applicable time permitted
for cure below, shall give rise to landlord's remedies set forth in paragraph
(B):
(1)
Failure by tenant to make, when due, any payment of rent, unless such failure
is
cured within 10 days after written notice thereof by landlord to
tenant;
(2)
Failure by tenant to observe or perform any of the terms or conditions of this
lease to be observed or performed by tenant other than the payment of rent,
or
as provided below, unless such failure is cured within 30 days after written
notice thereof by landlord to tenant sufficiently describing such failure to
enable tenant to determine an appropriate cure;
(3)
Abandonment of the premises, or vacation of all or a substantial portion of
the
premises, for more than 10 consecutive days, without landlord's written
consent;
(4)
Any
of the following conditions:
(a)
Making by tenant of any general assignment for the benefit of
creditors;
(b)
Filing by or against tenant of a petition to have tenant adjudged bankrupt
or a
petition for reorganization or arrangement under any law relating to bankruptcy
(unless, in the case of a petition filed against tenant, the same is dismissed
within 60 days);
(c)
Attachment, execution, or other judicial seizure of substantially all of
tenant's assets located on the premises or of tenant's interest in this
lease;
(d)
Tenant's convening of a meeting of its creditors or any class thereof for the
purpose of effecting a moratorium upon or composition of its debts;
(e)
Tenant's insolvency or admission of an inability to pay its debts as they
mature;
(f)
The
filing of any lien against the premises as a result of any work performed at
Tenant’s request
The
notice and cure periods provided herein are in lieu of, and not in addition
to,
any notice and cure period provided by law.
(B)
Remedies
If
a
default occurs and is not cured within any applicable time permitted under
paragraph (A), landlord shall have all of the rights and remedies allowed by
law, including the right, without notice, to re-enter the premises and
dispossess tenant and the legal representative of tenant or other occupant
of
the premises by summary proceedings or otherwise and remove their effects and
hold the premises as if this lease had not been made; tenant hereby waives
the
service of notice of intention to re-enter or to institute legal proceedings
to
that end. If tenant shall make default hereunder prior to the date fixed as
the
commencement of any extension of the term of this lease, and shall fail to
cure
such default within the time provided therefor and landlord shall thereby become
entitled to and shall terminate this lease or re-enter and dispossess tenant,
then landlord may cancel and terminate such extension by written notice. Tenant
further agrees that in case of any termination, tenant will indemnify landlord
against all loss of rents and other damage which landlord may incur by reason
of
such termination, including, but not limited to, costs of restoring and
repairing the premises and putting the same into rentable condition, costs
of
renting the premises to another tenant, loss or diminution of rents and other
damage which landlord may incur by reason of such termination, and, to the
extent permitted under the then applicable law, all reasonable attorney fees
and
expenses incurred in enforcing any of the terms of this lease or any other
rights or remedies of landlord. Neither acceptance of rent by landlord, with
or
without knowledge of breach, nor failure of landlord to take action on account
of any breach hereof or to enforce its rights hereunder shall be deemed a waiver
of any breach. Absent written notice or consent, said breach shall be a
continuing one. The words "re-enter" and "re-entry" as used in this lease are
not restricted to their technical legal meaning. Tenant hereby expressly waives
any and all rights to recover or regain possession of the premises or to
reinstate or to redeem this lease as permitted or provided by or under any
statute, law, or decision now or hereafter in force and effect.
13
(C)
Other
matters
No
re-entry or repossession, repairs, changes, alterations and additions,
reletting, acceptance of keys from tenant, or any other action or omission
by
landlord shall be construed as an election by landlord to terminate this lease
or accept a surrender of the premises, nor shall the same operate to release
the
tenant, in whole or in part, from any of the tenant's obligations hereunder,
unless express written notice of such intention is sent by landlord or its
agent
to tenant. Notices sent pursuant to this article XXIV shall be in lieu of any
notices required by law. The times set forth herein for the curing of defaults
by tenant and landlord are of the essence of this lease. Tenant hereby
irrevocably waives any right otherwise available under any law to redeem or
reinstate this lease.
ARTICLE
XXV. Right To Cure
(A)
Default by landlord
If
landlord shall fail to perform any term or condition under this lease required
to be performed by landlord, landlord shall not be deemed to be in default
hereunder nor subject to any claims for damages of any kind, unless such failure
shall have continued for a period of 30 days after written notice thereof by
tenant to landlord sufficiently describing such failure to enable landlord
to
determine an appropriate cure.
(B)
Extended period to cure default
The
aforementioned periods of time permitted for landlord to cure and the periods
of
time permitted for tenant to cure hereunder shall be extended if the default
cannot be cured within the time period allowed herein, so long as such party
is
diligently and continuously attempting to cure. The cure periods shall also
be
extended for any period of time during which the defaulting party is delayed
in,
or prevented from, curing due to fire or other casualty, or acts of God,
strikes, lockouts, or other labor troubles, shortages of labor or other
personnel, shortages of equipment or materials, power shortages or outages,
enactment, adoption, or promulgation of new laws, or the application or
enforcement of laws, conflicts or other difficulties in scheduling work or
other
matters, acts, or omissions by the defaulting party or other persons, and other
causes beyond the defaulting party's reasonable control, provided that the
defaulting party commences to cure such failure to completion. Notwithstanding
the foregoing, there shall be no extended period in which to cure a monetary
default.
(C)
When
deemed to have commenced to cure
Landlord
and tenant shall be deemed to have commenced to cure any such failure if
landlord or tenant shall, in good faith, have taken such actions as would be
taken by a reasonably prudent person under similar circumstances in its ordinary
course of business, such as arranging for inspections, investigations, or
consultations and arranging for service, repair, or other contracts to be
entered, whether or not any physical work has been commenced at the property.
Landlord and tenant shall be deemed to have reasonably sought to cure any such
failure to completion if such party shall, in good faith, have taken such
actions as would be taken by a reasonably prudent person under similar
circumstances in its ordinary course of business in order to complete such
cure.
Under no circumstances shall such party have any obligation to engage in
litigation, offer or accept bribes, kickbacks, or other such fees, gifts, or
gratuities, or require or pay for overtime labor or premiums for the performance
of services or contractual agreements, in order to cure hereunder.
14
(D)
Failure to cure
If
landlord or tenant shall fail to cure within the times permitted for cure
herein, landlord and tenant, respectively, shall be subject to such claims
for
damages and remedies as may be available (subject to the other provisions of
this lease), provided, however, that tenant shall have no right of self-help
to
perform repairs (except as otherwise allowed herein) or any other obligation
of
landlord, and shall have no right to withhold, set-off, or xxxxx
rent.
ARTICLE
XXVI. Captions, Severability, and Definitions
(A)
Captions
The
captions of the articles and paragraphs of this lease are for convenience and
easy reference only and shall not be considered or referred to in resolving
questions of construction.
(B)
Severability
If
any
provision of this lease shall be found invalid, void, illegal, or unenforceable
with respect to any particular person by a court of competent jurisdiction,
it
shall in no way affect, impair, or invalidate any other provisions hereof,
or
its enforceability with respect to any other person, the parties hereto agreeing
that they would have entered into the remaining portion of this lease
notwithstanding the omission of the portion or portions adjudged invalid, void,
illegal, or unenforceable with respect to such person.
(C)
Definitions
The
following terms when used herein shall have the meanings set forth
below:
(1)
"Landlord" and "tenant" shall be applicable to one or more persons as the case
may be. The singular shall include the plural, and the neuter shall include
the
masculine and feminine; if there be more than one, the obligations thereof
shall
be joint and several, and the word "tenant" shall include tenant's assignees,
subtenants, concessionaires, licensees, and other transferees as the context
may
require;
(2)
"Person" shall mean individuals, trusts, partnerships, joint ventures,
associations, corporations, and any other entities;
(3)
"Law"
shall mean all federal, state, county, and local governmental and municipal
laws, statutes, ordinances, rules, regulations, codes, decrees, orders, and
other such requirements, applicable equitable remedies and decisions by courts
in cases where such decisions are considered binding precedents in the
Commonwealth of Kentucky, and decisions of federal courts applying the laws
of
Kentucky;
(4)
"Mortgage" shall mean all mortgages, deeds of trust, ground leases, and other
such encumbrances now, heretofore, or hereafter placed upon the property or
building, or any part thereof, and all renewals, modifications, consolidations,
replacements or extensions thereof, and all indebtedness now or hereafter
secured thereby and all interest thereon;
(5)
"Holder" shall mean the holder of any mortgage at the time in question, and
where such mortgage is a ground lease, such term shall refer to the ground
lessor;
15
(6)
"Holidays" shall mean New Year's Day, Memorial Day, Independence Day, Labor
Day,
Thanksgiving Day and Christmas Day;
(7)
"Default rate" shall mean 18% per annum, or the highest rate permitted by
applicable law, whichever shall be less;
(8)
"Property" shall mean the building, and any common or public areas or
facilities, easements, corridors, lobbies, sidewalks, loading areas, driveways,
landscaped areas, skywalks, parking garages and lots, and any and all other
structures or facilities operated or maintained in connection with, or for
the
benefit of, the building, and all parcels or tracts of land on which all or
any
portion of the building or any of the other foregoing items are located, and
any
fixtures, machinery, equipment, apparatus, systems and equipment, furniture,
and
other personal property located thereon or therein and used in connection
therewith, whether title is held by landlord or its affiliates;
(9)
"Systems and equipment" shall mean any plant, machinery, transformers, duct
work, cable, wires, and other equipment, facilities, and systems designed to
supply heat, ventilation, air conditioning, and humidity or any other services
or utilities, or comprising or serving as any component or portion of the
electrical, gas, steam, plumbing, sprinkler, communications, alarm, security,
or
fire/life/safety systems or equipment, or any other mechanical, electrical,
electronic, computer, or other systems or equipment for the
property;
(10)
"Taxes" shall mean all federal, state, county, or local governmental or
municipal taxes, fees, charges, or other impositions of every kind and nature,
whether general, special, ordinary, or extraordinary, including without
limitation, real estate taxes, general and special assessments, sewer and water
rents, rates, and charges, transit taxes, taxes based upon the receipt of rent,
including gross receipts or sales taxes applicable to the receipt of rent
(unless required to be paid by tenant under article III(F)), personal property
taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and
equipment, appurtenances, furniture, and other personal property used in
connection with the property which landlord shall pay during any calendar year,
any portion of which occurs during the term (without regard to any different
fiscal year used by such government or municipal authority) because of or in
connection with the ownership, leasing, and operation of the property.
Notwithstanding the foregoing, there shall be excluded from taxes all excess
profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance
and
succession taxes, estate taxes, federal, state, and local income taxes, and
other taxes to the extent applicable to landlord's general or net income (as
opposed to rents, receipts, or income attributable to operations at the
property). If the method of taxation of real estate prevailing at the time
of
execution hereof shall be, or has been, altered so as to cause the whole or
any
part of the taxes now, hereafter, or heretofore levied, assessed, or imposed
on
real estate to be levied, assessed, or imposed on landlord, wholly or partially,
as a capital levy or otherwise, or on or measured by the rents received
therefrom, then such new or altered taxes attributable to the property shall
be
included within the term "taxes," except that the same shall not include any
enhancement of said tax attributable to other income of landlord. Any expenses
incurred by landlord in attempting to protest, reduce, or minimize taxes shall
be included in taxes in the calendar year such expenses are paid. Tax refunds
shall be deducted from taxes in the year they are received by landlord, but
if
such refund shall relate to taxes paid in a prior year of the term, and the
lease shall have expired, landlord shall mail tenant's pro rata share of such
net refund (after deducting expenses and attorney fees), up to the amount tenant
paid towards taxes during such year, to tenant's last known address. If taxes
for any period shall be increased after payment thereof by landlord, for any
reason including, without limitation, error or reassessment by applicable
governmental or municipal authorities, tenant shall pay landlord, upon demand,
tenant's pro rata share of such increased taxes. Landlord shall pay all taxes
in
a timely manner so as to benefit from any discount which is available for early
payment;
(11)
"Operating expenses" shall mean all expenses, costs, and amounts (other than
taxes) of every kind and nature which landlord shall pay during any calendar
year, any portion of which occurs during the term, because of or in connection
with the ownership, management, repair, replacement, restoration, and operation
of the property, including, without limitation, any amounts paid for the
following items:
(b)
Permits, licenses, and certificates necessary to operate, manage, and lease
the
property;
16
(c)
Insurance applicable to the property, not limited to the amount of coverage
landlord is required to provide under this lease;
(d)
Supplies, tools, equipment, and materials used in the operation, repair, and
maintenance of the property;
(e)
Accounting, legal, and professional services (including inspection and
consultation);
(f)
Any
equipment rental agreements or management agreements (including the cost of
any
customary management fee and the fair rental value of any office space provided
thereunder), provided such is reasonable and customary in the city of Lexington,
Kentucky;
(g)
Wages, salaries, and other compensation and benefits of all persons engaged
in
the operation, maintenance, or security of the property, and employer's social
security taxes, unemployment taxes, or insurance, and any other taxes which
may
be levied on such wages, salaries, compensation, and benefits; and
(h)
Repair, maintenance, and replacement of all systems and equipment and components
thereof, janitorial service, alarm and security service, window cleaning, trash
removal, cleaning of walks, parking facilities, and building walls, removal
of
ice and snow, replacement of wall and floor coverings, corridors, restrooms,
and
other common or public areas or facilities, maintenance, and replacement of
shrubs, trees, grass, sod, and other landscaped items, irrigation systems,
drainage facilities, fences, curbs, and walkways, repaving and restriping
parking facilities, repairs to roofs and reroofing.
Notwithstanding
the foregoing, operating expenses shall not, however, include the following
items:
(a)
Depreciation, interest, and amortization on mortgages, and other debt costs
or
ground lease payments, if any;
(b)
Legal
fees for rent collection and lease negotiation;
(c)
Real
estate brokers and leasing commissions;
(d)
Improvements or alterations to tenant spaces;
(e)
The
cost of providing any service directly to and paid directly by any
tenant;
(f)
Any
costs expressly excluded from operating expenses elsewhere in this
lease;
(g)
Costs
of repairs or restoration to the extent landlord receives reimbursement from
insurance proceeds or from a third party (such proceeds to be deducted from
operating expenses in the year in which received); and
(h)
Capital expenditures, except those (i) made primarily to reduce operating
expenses; (ii) made primarily to comply with any laws or other governmental
requirements; or (iii) made for items constituting replacements (as opposed
to
additions or new improvements) of items in the common areas of the property.
All
such excluded capital expenditures shall be amortized for purposes of this
lease
(even if landlord pays the entire cost when the work is performed) over their
useful lives, not to exceed three years.
17
ARTICLE
XXVII. Conveyance by Landlord and Liability
(A)
Conveyance by landlord
In
case
landlord or any successor owner of the property or the building shall convey
or
otherwise dispose of any portion thereof in which the premises are located
to
another person (and nothing herein shall be construed to restrict or prevent
such conveyance or disposition), such other person shall, thereupon, be and
become landlord hereunder and shall be deemed to have fully assumed and be
liable for all obligations of this lease to be performed by landlord which
first
arise after the date of conveyance. Tenant shall attorn to such other person
and
landlord or such successor owner shall, from and after the date of conveyance,
be free of all liabilities and obligations hereunder not then
incurred.
(B)
Liability of landlord
The
liability of landlord to tenant for any default by landlord under this lease
or
arising in connection herewith or with landlord's operation, management,
leasing, repair, renovation, alteration, or any other matter relating to the
property or the premises shall be limited to the interest of landlord in the
property. Tenant agrees to look solely to landlord's interest in the property
for the recovery of any judgment against landlord; landlord shall not be
personally liable for any such judgment or deficiency after execution thereon.
The limitations of liability contained in this article shall apply equally
and
inure to the benefit of landlord, and its respective, present, and future
beneficiaries, officers, directors, trustees, shareholders, agents, and
employees, and their respective heirs, successors, and assigns. The limitation
on landlord's liability contained in this article shall be effective only if
landlord's "equity interest" in the property is not less than 20% of the fair
market value of the property. For purposes hereof, "equity interest" shall
mean
the fair market value of the property less the amount of any
mortgage.
ARTICLE
XXVIII. Miscellaneous
(A)
Parties affected
Each
of
the covenants and obligations of this lease shall be binding upon and inure
to
the benefit of the parties hereto, their respective heirs, executors,
administrators, guardians, custodians, successors, and assigns, subject to
the
provisions of article XXII respecting transfers of this lease or tenant's
interest herein.
(B)
Short
form lease
At
the
request of either party, a memorandum of lease or short form lease will be
executed and recorded.
(C)
Governing law
This
lease shall be construed in accordance with the laws of the Commonwealth of
Kentucky.
(D)
Quiet
enjoyment
Landlord
covenants that upon tenant's timely payment of the rent and performance of
the
terms, covenants, and conditions to be performed by it hereunder, tenant shall
peaceably and quietly have, hold, and enjoy the premises during the term subject
to the terms hereof.
ARTICLE
XXIX. Offer
The
submission of this lease to tenant shall not be deemed an offer to enter the
same by landlord.
18
ARTICLE
XXX. Notices
Except
as
expressly provided to the contrary in this lease, every notice or other
communication to be given by either party to the other with respect hereto
or to
the premises or property shall be in writing and shall not be effective for
any
purpose unless the same shall be served personally, or by national air courier
service, or United States certified or registered mail, return receipt
requested, postage prepaid, addressed, if to tenant, at the premises, and if
to
landlord, at the address at which the last payment of rent was made or required
to be made or such other address or addresses as tenant or landlord may from
time to time designate by notice given as above provided. Every notice or other
communication hereunder shall be deemed to have been given as of the third
business day following the date of such mailing, or immediately if personally
delivered. Notices not sent in accordance with the foregoing shall be of no
force or effect until received by the parties at such addresses required
herein.
ARTICLE
XXXI. Real Estate Brokers
Each
party represents to the other that it has not dealt with any broker in
connection with this lease and agrees to indemnify and hold the other party
harmless from all damages, judgments, liabilities, and expenses (including
reasonable attorney fees) arising from any claims or demands of any broker
or
finder with whom it has dealt for any commission or fee alleged to be due such
broker or finder in connection with its participation in the procurement or
negotiation of this lease.
ARTICLE
XXXII. Entire Agreement
This
lease, together with all exhibits and rider (WHICH COLLECTIVELY ARE HEREBY
INCORPORATED WHERE REFERRED TO HEREIN AND MADE A PART HEREOF AS THOUGH FULLY
SET
FORTH), contain all the terms and conditions between landlord and tenant
relating to the matters set forth herein and no prior or contemporaneous
agreement or understanding pertaining to the same shall be of any force or
effect, except any such contemporaneous agreement specifically referring to
and
modifying this lease signed by both parties. This lease may not be modified
except in writing signed by both parties.
ARTICLE
XXXIII. Prior Agreements
All
leases, amendments, side letters, licenses, and any other agreements or
understandings of any kind existing prior to the date hereof, by and between
tenant and either landlord or landlord's predecessor in interest, are hereby
terminated.
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IN
TESTIMONY WHEREOF, witness the signatures of the parties hereto by their duly
authorized representatives on the day and year first above written.
LANDLORD:
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Xxxxxxx
Xxxxxx Xxxxxxx
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/s/
Xxxxxxx Xxxxxx Xxxxxxx
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TENANT:
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Southern
Bella, Inc.
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a
Delaware corporation
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/s/
Xxxxx X. Xxxxx
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