MONTH-TO-MONTH RENTAL AGREEMENT (GROSS)
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This Month-to-Month Rental Agreement is entered into this sixth (6th) day of
January 1995, between ▇▇▇▇▇▇▇ ROAD ASSOCIATES, a California general partnership
("Lessor") and COST-U-LESS, INC., a Washington corporation ("Lessee"), for
approximately 40,000 square feet of space located at ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇
▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇. This Agreement shall be effective on January 15, 1995
or upon possession, whichever occurs first, and shall continue month-to-month
thereafter. The rental of this space is made in consideration of ELEVEN
THOUSAND AND NO/100 DOLLARS ($11,000.00) per month. All rental payments shall
be payable in advance on the first (1st) day of each month. If any installment
of rent or other sums due from lessee is not received by Lessor when due, Lessee
shall pay to Lessor an additional sum equal to ten percent (10%) of the amount
due as a late charge. The Premises shall be used for warehousing and
distribution of general merchandise and for other related functions and uses,
but only to the extent permitted by the City of Union City and any and all other
entities having jurisdiction and for no other purpose without Lessor's prior
written consent.
Upon execution of this Agreement, Lessee shall pay Lessor the first month's rent
in advance, plus one month's rent as a security deposit. Upon termination of
the lease, the deposit will be refunded once the space has been broom cleaned
and any damage repaired by Lessee.
It is specifically understood that Lessee is responsible for the care,
maintenance, and repair of the premises. Any damage to the doors and parking
areas are the responsibility of the Lessee.
Lessee shall pay for all gas, heat, light, power, telephone, and other utilities
and services supplied to the Lessee. If any such services are not separately
metered to Lessee, Lessee shall pay a one-third (1/3) share of the water,
landscaping, and fire sprinklered protection.
Lessor shall provide dock levelers on each dock door and a 12'x60' office
trailer. These two contracts will be let immediately upon full lease execution.
Lessee shall maintain comprehensive general liability insurance against
liability for: (1) bodily injury in an amount not less than THREE MILLION AND
NO/100 DOLLARS ($3,000,000) per occurrence, and (2) property damage in an amount
not less than THREE MILLION AND NO/100 DOLLARS ($3,000,000) per occurrence. All
insurance shall be with companies licensed to do business with the Insurance
Commissioner of the State of California. A certificate of all such insurance
shall be delivered to the Lessor prior to occupancy and shall certify that the
policy: (1) names Lessor as an Additional Insured, and (2) shall not be canceled
or altered without thirty (30) days' prior written notice to Lessor.
If Lessor sues Lessee due to the default of Lessee, Lessor shall be entitled to
its attorneys' fees.
Lessor shall have the right at any and all reasonable times to enter and inspect
the Premises.
Lessee shall not keep or store on the Premises, chemicals in quantities,
amounts, concentrations or type which are in excess of those permitted by local,
state or federal laws, regulations or ordinances.
Except for damage resulting from the sole active negligence or willful
misconduct of Lessor or its authorized representatives, Lessee shall save and
hold Lessor harmless and indemnify Lessor against all liabilities, charges,
expenses (including reasonable attorneys' fees, cost of court, and expenses
necessary in the prosecution or defense of any litigation) by reason of injury
to person or property, from whatever cause, while in or on the leased Premises,
or in any way connected with the leased Premises with the improvement or
personal property therein, including any liability for injury to person or
property of Lessee, his agents, and employees or third persons.
Lessee shall not assign or transfer this Lease, nor sublet all or any portion of
the Premises without the prior written consent of Lessor.
Lessor and Lessee hereby waive any rights each may have against the other on
account of any loss or damage occasioned to the Lessor or the Lessee or to the
Premises or its contents which may arise from any risk generally covered by fire
and extended coverage insurance in forms approved for use in California. The
parties shall obtain from their respective insurance companies insuring the
Premises and/or its contents a waiver of any right of subrogation which such
insurance company may have against the Lessor or the Lessee.
It is understood that either party must provide written notification to the
other thirty (30) days in advance of intent to cancel the Premises. Upon
vacating the Premises, Lessee hereby agrees to return same in good repair and
"broom cleaned" condition acceptable to Lessor.
IN WITNESS WHEREOF, this Month-to-Month Rental Agreement is executed on the
date and year first above written.
AGREED AND ACCEPTED:
LESSEE: LESSOR:
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Cost-U-Less, ▇▇▇▇▇▇▇ Road Associates
a Washington corporation a California general partnership
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ By: /s/ [SIGNATURE ILLEGIBLE]
Its: VP - CFO Its: Managing Partner
