COMMERCIAL LEASE
Exhibit 10.16
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1.
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PARTIES
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XXXXX
XXXXXXXX of 0 Xxxxxx Xxxxx, Xxxxxx, XX 00000 and XXXXX X. XXXXXXXXXX of 00
Xxxxxxxxxxx Xxxxx, Xxxxx Xxxxxx, XX 00000, LESSOR, which expression shall
include its heirs, successors, and assigns where the context so admits, hereby
lease to HEATING AND AIR CONDITIONING SERVICES, INC. of 000 Xxxxxx Xxxxxx, Xxxx
Xxxxxxxxxxx, XX 00000, LESSEE, which expression shall include his successors,
executors, administrators, and assigns where the context so admits, and the
LESSEE hereby leases the following described premises:
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2.
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LEASED
PREMISES
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The
LESSOR leases the building and land located at and known as 000 Xxxxxx Xxxxxx
Xxxx Xxxxxxxxxxx, Xxxxxxxxxxxxx, said building contains approximately 12,000
square feet.
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3.
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TERM
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The
term of this lease shall be for five (5) years commencing on February 1, 2005
and ending on January 31, 2010. This lease may be extended by mutual consent of
the LESSOR and LESSEE.
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4.
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RENT
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The
LESSEE shall pay to the LESSOR rent at the rate of $90,000.00 dollars ,per year
payable in advance in monthly installments of $7,500.00. The LESSEE shall pay
first and last months rent prior to February 1, 2005. NET
LEASE.
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5.
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SECURITY
DEPOSIT
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Upon
the execution of this lease, the LESSEE shall pay to the LESSOR the amount of
$7,500.00 dollars, which shall be held as a security for the LESSEE'S
performance as herein provided and refunded to the LESSEE at the end of this
lease subject to the LESSEE'S satisfactory compliance with the conditions
hereof.
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6.
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UTILITIES
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The LESSOR shall provide and LESSOR
shall pay for LESSEE'S water use charges. LESSEE agrees to furnish reasonable
heat to the leased premises, the hallways, stairways and lavatories during normal
business hours on regular business days of the heating season of each year, to light
passageways and stairways during business hours, and to furnish such cleaning service as is
customary in similar buildings in said city or town, all subject to interruption due to the
making of repairs, alterations or improvements, to labor difficulties, to trouble in
obtaining fuel, electricity, service or supplies from the sources from which they are
usually obtained for said building, or to any cause beyond the LESSEE'S
control.
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7.
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USE
OF LEASED PREMISES
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The
LESSEE shall use the leased premises only for the purpose of operating a heating
and air conditioning business.
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8.
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COMPLIANCE
WITH LAWS
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The
LESSEE acknowledges that no trade or occupation shall be conducted in the leased
premises or use made thereof which will be unlawful, improper, noisy or
offensive, or contrary to any law or any municipal by-law or ordinance in force
in the city or town in which the premises are situated.
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9.
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FIRE
INSURANCE
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The
LESSEE shall not permit any use of the leased premises which will make voidable
any insurance on the property of which the leased premises are a part, or on the
contents of said property or which shall be contrary to any law or regulation
from time to time established by the New England Fire Insurance Rating
Association, or any similar body succeeding to its powers. The LESSEE shall on
demand reimburse the LESSOR, and all other tenants, all extra insurance premiums
caused by the LESSEE'S use of the premises.
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10.
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MAINTENANCE OF
PREMISES
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The
LESSEE agrees to maintain the leased premises, including but not limited to the
air conditioner, kitchenette and alarm system, in the same condition as they are
at the commencement of the term or as they may be put in during the term of this
lease, reasonable wear and tear, damage by fire and other casualty only
excepted, and whenever necessary, to replace plate glass and other glass
therein, acknowledging that the leased premises are now in good order and the
glass whole. LESSEE acknowledges that all costs associated with the maintenance
shall be the LESSEE'S responsibility. The LESSEE shall not permit the leased
premises to be overloaded, damaged, stripped, or defaced, nor suffer any waste.
LESSEE shall obtain written consent of LESSOR before erecting any sign on the
premises. The LESSEE agrees to remove snow and ice whenever necessary from all
walkways and steps leading to and from the premises. The LESSOR agrees to remove
snow within a reasonable time from the parking lot when the snow exceeds three
inches.
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11.
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ALTERATIONS-ADDITIONS
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The LESSEE shall not make
structural alterations or additions to the leased premises, but may make non-structural alterations
provided the LESSOR consents thereto in writing, which consent shall not be
unreasonably withheld or delayed. All such allowed alternations shall be at LESSEE'S
expense and shall be in quality at least equal to the present
construction. LESSEE shall not permit any mechanics' liens, or similar liens, to
remain upon the leased premises for labor and material furnished to LESSEE or
claimed to have been furnished to LESSEE in connection with work of any
character performed or claimed to have been performed at the direction of LESSEE
and shall cause any such lien to be released of record forthwith without cost to
LESSOR. Any alterations or improvements made by the LESSEE shall become the
property of the LESSOR at the termination of occupancy as provided
herein.
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12.
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SUBORDINATION
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This
lease shall be subject and subordinate to any and all mortgages, deeds of trust
and other instruments in the nature of a mortgage, now or at any time hereafter,
a lien or liens on the property of which the leased premises are a part and the
LESSEE shall, when requested, promptly execute and deliver such written
instruments as shall be necessary to show the subordination of this lease to
said mortgages, deeds of trust or other such instruments in the nature of a
mortgage.
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13.
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LESSOR'S
ACCE$$
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The
LESSOR or agents of the LESSOR may, at reasonable times, enter to view the
leased premises and may remove placards and signs not approved and affixed as
herein provided, and make repairs and alterations as LESSOR should elect to do
and may show the leased premises to others, and at any time within three (3)
months before the expiration of the term, may affix to any suitable part of the
leased premises a notice for letting or selling the leased premises or property
of which the leased premises are a part and keep the same so affixed without
hindrance or molestation.
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14.
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INDEMNIFICATION
AND LIABILITY
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The
LESSEE shall save the LESSOR harmless from all loss and damage occasioned by the
use or escape of water or by the bursting of pipes, as well as from any claim or
damage resulting from neglect in not removing snow and ice from the roof of the
building or from the sidewalks bordering upon the premises so leased, or by any
nuisance made or suffered on the leased premises, unless such loss is caused by
the neglect of the LESSOR
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15.
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LESSEE'S
LIABILITY INSURANCE
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The LESSEE shall maintain with
respect to the leased premises comprehensive public liability insurance in the amount
of $1,000,000.00 with property damage insurance in limits of $300,000.00 in
responsible companies qualified to do business in Massachusetts and in good standing therein
insuring the LESSOR as well as LESSEE against injury to persons or damage to property as
provided. Such policies shall name the LESSOR and at the request of LESSOR its mortgagee
as an additional insured. The LESSEE shall deposit with the LESSOR
certificates for such insurance at or prior to the commencement of the term, thereafter within
thirty (30) days prior to the expiration of any such policies. All such
insurance certificates shall provide that such policies shall not be canceled
without at least ten (10) days prior written notice to each assured named
therein.
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16.
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FIRE
CASUALTY-EMINENT
DOMAIN
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Should
a substantial portion of the leased premises, or of the property of which they
are a part, be substantially damaged by fire or other casualty, or be taken by
eminent domain, the LESSOR may elect to terminate this lease. When such fire,
casualty, or taking renders the leased premises substantially unsuitable for
their intended use, a just and proportionate abatement of rent shall be made,
and the LESSEE may elect to terminate this lease if
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(a)
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The
LESSOR fails to give written notice within thirty (30) days of intention
to restore
leased premises, or
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(b)
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The
LESSOR fails to restore the leased premises to a condition substantially
suitable
for their intended use within ninety (90) days of said fire, casualty, or
taking.
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The
LESSOR reserves, and the LESSEE grants to the LESSOR, all rights which the
LESSEE may have for damages or injury to the leased premises for any taking by
eminent domain, except for damage to the LESSEE'S fixtures, property, or
equipment.
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17.
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DEFAULT
AND BANKRUPTCY
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In
the event that:
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(a)
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The
LESSEE shall default in the payment of any installment of rent or other
sum herein specified
and such default shall continue for ten (10) days after written
notice thereof,
or
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(b)
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The
LESSEE shall default in the observance or performance of any other of the
LESSEE'S covenants,
agreements, or obligations hereunder and such default shall not be corrected within
thirty (30) days after written notice thereof;
or
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(c)
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The
LESSEE shall be declared bankrupt or insolvent according to law, or, if
any assignment shall be made of LESSEE'S property for the benefit
of creditors,
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then
the LESSOR shall have the right thereafter, while such default continues, to
re-enter and take complete possession of the leased premises, to declare the
term of this lease ended, and remove the LESSEE'S effects, without prejudice to
any remedies which might be otherwise used for wears of rent or other default.
The LESSEE shall indemnify the LESSOR against all loss of rent and other
payments which the LESSOR may incur by reason of such termination during the
residue of the term. If the LESSEE shall default, after reasonable notice
thereof; in the observance or performance of any conditions or covenants on
LESSEE'S part to be observed or performed under or by virtue of any of the
provisions in any article of this lease, the LESSOR, without being under any
obligation to do so and without thereby waiving such default, may remedy such
default for the account and at the expenses of the LESSEE. If the LESSOR makes
any expenditures or incurs any obligations for the payment of money in
connection therewith, including but not limited to, reasonable attorney's fees
in instituting, prosecuting or defending any action or proceeding, such sums
paid or obligations insured, with interest at the rate of six (6) per cent per
annum and costs, shall be paid to the LESSOR by the LESSEE as additional
rent.
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18.
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NOTICE
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Any
notice from the LESSOR to the LESSEE relating to the leased premises or to the
occupancy thereat shall be deemed duly served, if left at the leased premises
addressed to the LESSEE, or, if mailed to the leased premises, registered or
certified mail, return receipt requested, postage prepaid, addressed to the
LESSEE. Any notice from the LESSEE to the LESSOR relating to the leased premises
or to the occupancy thereof, shall be deemed duly served, if mailed to the
LESSOR by registered or certified mail, return receipt requested, postage
prepaid, addressed to the LESSOR at 000 Xxxxxx Xxxxxx, Xxxx Xxxxxxxxxxx, XX
00000 or such address as the LESSOR may from time to time advise in writing. All
rent and notices shall be paid and sent to the LESSOR at 000 Xxxxxx Xxxxxx, Xxxx
Xxxxxxxxxxx, XX 00000
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19.
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SURRENDER
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The
LESSEE shall at the expiration or other termination of this lease remove all
LESSEE's goods and effects from the leased premises, (including, without hereby
limiting the generality of the foregoing, all signs and lettering affixed or
painted by the LESSEE, either inside or outside the leased premises). LESSEE
shall deliver to the LESSOR the leased premises and all keys, locks thereto, and
other fixtures connected therewith and all alterations and additions made to or
upon the leased premises, in the same condition as they were at the commencement
of the term, or as they were put in during the term hereof, reasonable wear and
tear and damage by fire or other casualty only excepted. In the event of the
LESSEE's failure to remove any of LESSEE's property from the premises, LESSOR is
hereby authorized, without liability to LESSEE for loss or damage thereto, and
at the sole risk of LESSEE, to remove and store any of the property at LESSEE's
expense, or to retain same under LESSOR's control or to sell at public or
private sale, without notice any or all of the property not so removed and to
apply the net proceeds of such sale to the payment of any sum due hereunder, or
to destroy such property.
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20.
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ASSIGNMENT-SUBLEASING
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The LESSEE shall not assign or
sublet the whole or any part of the leased premises without LESSOR's prior
written consent, which consent shall not be unreasonably withheld or delayed.
Notwithstanding such consent, LESSEE shall remain liable to LESSOR for
the payment of all rent and for the full performance of the
convenants and conditions of this lease.
IN
WITNESS WHEREOF, the LESSOR and LESSEE have hereunto set their hands
and common seals this 26th
day of January, 2005.
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/s/
Xxxxx
Xxxxxxxx
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/s/
Xxxxx X.
Xxxxxxxxxx
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LESSOR
– Xxxxx Xxxxxxxx
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LESSEE
– Heating and Air Conditioning Services, Inc.
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By: Xxxxx
X. Xxxxxxxxxx,
Location
President/General Manager
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/s/
Xxxxx X.
Xxxxxxxxxx
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LESSOR
– Xxxxx Xxxxxxxxxx
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