EXHIBIT 10.1
LEASE (Carolantic Realty Logo Appears here)
STATE OF NORTH CAROLINA Carolantic Realty, Inc.
COUNTY OF WAKE X.X. Xxxxxx 0000
Xxxxxxx, XX 00000
THIS LEASE, made this the 19th day of December, 1995, by and between:
X.X. XXXXXXX, XX., having a notice address of:
Xxxx Xxxxxx Xxx 0000
Xxxxxxx, Xxxxx Xxxxxxxx 00000, hereinafter called "Landlord", and
KENMAR BUSINESS GROUPS, INC., having a notice address of:
0000 Xxx Xxxx Xxxxxx Xxxx
Xxxxxxx, Xxxxx Xxxxxxxx 00000, hereafter "Tenant";
WITNESSETH:
Upon the terms and conditions hereinafter set forth, the Landlord leases to
Tenant and the Tenant leases from Landlord, the property hereinafter described:
1. DEMISED PREMISES. The property hereby leased to Tenant (the "Demised
Premises") is that area shown on Exhibit A hereto attached, which consists of
approximately 21,000 square feet, located at 0000 Xxx Xxxx Xxxxxx Xxxx Raleigh,
(27604) , North Carolina, together with the common areas, if any, in the
building(s) and on the lot(s) where the Demised Premises are located (said
building(s) and lot(s), including the Demised Premises, being hereafter called
the "Landlord Property") described on Exhibit A attached hereto.
2. TERM
2.1 INITIAL TERM. The Commencement Date of this Lease shall be the
earlier of the date that Tenant opens for business in any part of the Demised
Premises, or January 1, 1996. This Lease shall terminate (unless extended as
herein provided) at midnight on August 31, 1997.
2.2 OPTION PERIODS. Tenant may, by written notice delivered to Landlord
not more than one hundred twenty (120) days, nor less than sixty (60) days,
prior to the commencement of the applicable extension period, extend this Lease
for one (1) additional periods of one (1) years each (a separate notice being
required for each extension period), upon the same terms and conditions as are
set forth in this Lease for the initial term, and at the rental rate or rates
hereafter set forth. Tenant's right to extend this Lease is subject to the
further condition that no unsecured Default (as hereafter defined in Section 15)
by Tenant shall exist, either at the time Tenant's notice of extension is given,
or at the commencement of the applicable extension period.
2.3 YEAR. The initial term of this Lease and any properly exercised
extension periods are hereafter together called the "Lease Term". The first
"Calendar Year" of this Lease shall begin on January 1 of the year of the
Commencement date, and end December 31 of that same year.
3.USE. Tenant shall occupy the Demised Premises on commencement of the
Lease Term and thereafter continuously use the Demised Premises only for
office/warehouse/electronic assembly purposes, but for none other without
Landlord's prior written consent. Tenant shall remain open for business during
normal business hours for other businesses of a similar nature during the full
Lease Term. In no event shall Tenant make any use of the Demised Premises which:
(a.) violates any governmental laws, rules or regulations: (b.) violates any
recorded restrictive covenants applicable to the Demised Premises; (c.) is or
might constitute a nuisance; or (d.) makes hazard, liability, casualty,
property, or other required insurance unavailable to Landlord on Landlord's
property. Tenant shall not permit its agents, employees, contractors, or
invitees to place damaging loads on the parking lots and drives located thereon.
4. RENT
4.1 MINIMUM RENT. For the purposes of this Lease, all Minimum Rent
Payable under sections 4. and 5. of this Lease and all Additional Rent payable
under Section 6. of this Lease are hereafter together called "Rent". All Rent
payable by Tenant shall be paid without previous demand by Landlord, and without
setoff or deduction. Subject to any adjustments provided in Section 5. hereof,
Tenant shall pay Minimum Rent during the Lease Term in the amount of $8,055.00
per month, payable in advance on or before the first day of each calendar month
during the Lease Term, unless the Lease Term commences other than on the first
day of the month, in which event Minimum Rent at the above rate prorated until
the end of the first calendar month of the Lease Term, shall be due and payable
on the Commencement Date, and on the first day of each month thereafter.
4.2 LATE FEES-BAD CHECK FEES. In addition to such remedies as may be
provided under Section 15. of this Lease, Landlord shall be entitled to a late
charge for each monthly Minimum Rent payment which is past due more than ten
(10) days, equal to the greater of FIFTY DOLLARS ($50.00) or five percent (5%)
of such past due Minimum rent payment. In addition to paid late charge, Landlord
shall be entitled to receive a service charge of five percent (5%) of the amount
of any rent check given by Tenant to Landlord which is not honored when first
presented for payment by Landlord.
5. RENT ADJUSTMENTS. The Minimum Rent shall be increased on the
anniversary of the Commencement Date each year of the Lease Term (hereafter
called an "Adjustment Date") to reflect the increase in the numerical index
of the "Consumer Price Index, All Urban Consumers (1982-84=100) Consumer Price
Index" published by the Bureau of Labor Statistics of the United States
Department of Labor (the "Index") from the Commencement Date to that date
which is ninety (90) days prior to the applicable Adjustment Date. In the
manner hereafter provided, if the Department of Labor discontinues publication
of the Index, any comparable consumer price index which shall be subsequently
published to supersede the Index shall be used, and if none is published, then
the Consumer Price Index published by the United States Department of Commerce
(with proper adjustment) shall be used to determine the applicable Additional
Rent. At least fifteen (15) days prior to each requested rent adjustment,
Landlord shall furnish to Tenant a written statement of the additional Minimum
Rent payable from said Adjustment Date through the day immediately prior to
the following Adjustment Date, or the end of the Lease Term, as applicable.
The amount of such additional monthly Minimum Rent shall be determined by
multiplying the amount of monthly Minimum Rent payable on the Commencement
Date by a fraction, the numerator
1
refusal to accept delivery or inability to deliver due to the
recipient having failed to keep the sender informed of the recipient address.
26. SECURITY DEPOSIT. Landlord acknowledges receipt from Tenant of the
sum of $9,175.00, which sum Landlord shall retain, without any interest payable
to the Tenant, as security for the performance by Tenant of each of its
obligations hereunder. After a Default by Tenant under this Lease, Landlord may,
at its option, apply said deposit to cure Tenant's Default; but if prior to the
termination of this Lease, Landlord depletes said deposit, Tenant shall
immediately restore the amount so used by Landlord. Unless the Landlord uses the
same to cure a Default of Tenant, or at the conclusion of the Lease Term to
restore the Demised Premises to its condition on the Commencement Date,
reasonable wear and tear excepted, Landlord shall, within thirty (30) days of
the termination of the Lease, refund to Tenant the balance of the deposit that
the Landlord holds.
27. PAYMENTS. All Rent and other charges (which total $8,055.00 per
month as of the first full regular month's payment called for in this lease)
shall be payable by Tenant to and addressed to:
XXXXXXX SPACE CENTER
Post office Xxx 0000
Xxxxxxx, Xxxxx Xxxxxxxx 00000, or to such other payee and such
other address as Landlord shall designate by prior written notice to Tenant.
28.OTHER PROVISIONS. The following additional provisions are attached
hereto and by this reference made a part hereof (if none, insert "None" in the
blank space which follows):
5. RENT ADJUSTMENTS. The Minimum Rent is calculated as follows: 18,000
square feet at $4.87 psf and 3,000 square feet at $3.00 psf, for a total of
$8,055.00 per month. This monthly amount of $8,055.00 shall be adjusted on
August 31, 1996, based on the Consumer Price Index (CPI).
25. COMMISSIONS. No commission shall be payable by Tenant in
connection with this Lease. Landlord shall pay to Carolantic Realty, Inc.,
quarterly during the term of this Lease, of any Option Periods therof, or of any
Holding Over Periods thereof, a commission of six percent (6%) of the Rent
collected each quarter.
26. SECURITY DEPOSIT. This Security Deposit of $9,175.00, is currently
being held by Landlord for lease dated August 5, 1993, between X.X. Xxxxxxx, Xx.
and Kenmar-TSI Business Groups, Inc., and will be transferred to apply to this
Lease.
IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly
executed in duplicate originals, all as of the day and year first above written.
TENANT: LANDLORD:
(By:) Signature: Xxxxxxx X. Xxxxx, President (By:) Signature: X.X. Xxxxxxx, Xx.
(By:) Signature: (By:) Signature:
Printed Name: Xxxxxxx X. Xxxxx, President Printed Name:
