EXHIBIT 10(v)
LEASE AGREEMENT
THIS AGREEMENT, entered into the 5th day of June 1997 by and between X.X. Xxxxx
Investments who, whether one or more, will hereinafter be designated as Lessor,
and Daisy Manufacturing Company, Inc., Brass Eagle Division who, whether one or
more, will hereinafter be designated as Lessee.
WITNESSETH:
The Lessor shall let and the Lessee shall lease all that certain tract and
parcel described as 6,400 S.F. =/- office space, 0000 Xxxxx 0xx Xxxxxx, Xxxxxx,
Xxxxxxxx 00000 (the "Premises"). The term of this lease shall commence on the
1st day of July, 1997 and the primary terms shall be for a period of 30 months
ending midnight the 31st day of December 1999.
Lessee shall pay as rent to the Lessor the sum of $3,733.33 per month on the 1st
day of each and every month during the term hereof. The parties hereto covenant
as follows:
1. (a) Lessor hereby leases to Lessee and Lessee hereby leases from Lessor,
the Premises subject to the terms and conditions contained in this Lease.
Lessor agrees so long as Lessee fully complies with all the terms, covenants and
conditions of this Lease, that Lessee may peaceably have, hold and enjoy the
Premises during the term.
(b) Lessor warrants that Lessor has good title to the Premises, and that
there is no legal impediment to Lessor's right to lease the Premises.
2. Lessee will promptly pay the stipulated rent at the place designated. The
leased premises will be used by the Lessee only for the following purpose, to
wit:
General Office
3. The Lessee will not do or permit anything to be done, in, upon, or about the
leased premises that increases the premiums for fire hazard. The premiums are
to be paid by the Lessor for the first year continuously until tenant vacates
property. Lessee will not do or permit to be done anything which will make
uninsurable the leased premises or any part thereof.
4. Lessee will not do or permit to be done anything in, about or upon the
leased premises that interferes with State or Municipal laws, or the regulations
of the Fire Department or Board of Health; that creates a nuisance; or that is
dangerous to persons or property.
5. Except for assignment to any newly created corporation engaged in
substantially the same business as the current Brass Eagle Division, this Lease
shall not be assigned or any part of the leased premises sublet without the
written consent of the Lessor first endorsed hereon, said consent shall not be
unreasonably withheld. If Lessor consents to an assignment of subletting the
Lessee shall remain liable for payment of specified rental and the due
performance of all agreements and conditions herein.
6. Lessor's interest in this Lease shall pass and vest in Lessor's heirs,
devisee, successors and assigns.
7. Lessee will not make any alterations, changes or improvements costing more
than five thousand ($5,000.00) dollars without Lessor's prior written consent,
which consent shall not be unreasonably withheld. If consent is given, then the
cost of such alterations, additions or improvements shall be paid by Lessee.
Upon termination of this Lease, Lessor shall have the right to retain the
premises as altered, changed or improved by Lessee, or Lessor may require the
Lessee to restore the premises to the conditions existing as of the date Lessee
went into possession of the leased premises under the terms of this Lease.
Should this Agreement be terminated, for any reason, any improvements not
required to be removed, shall be retained by Lessor.
8. Lessor shall keep the interior and exterior of the building, interior walls
and doors, wiring, plumbing and window and door glass in good repair, and shall
maintain the heating and air conditioning equipment. Lessor shall also be
responsible for the upkeep of the grounds and said grounds shall be kept in goo
[sic], neat order. In addition, Lessee shall maintain sidewalks and parking lot.
Lessee shall be responsible for snow removal. Above improvements to be in "as
is" condition at time of Lease commencement. Lessee shall have 14 days to notify
landlord of any mechanical, electrical or physical problems with property. If no
notice is received by landlord it shall be agreed all components of property are
in good working order and shall then become responsibility of Lessee. Lessee
shall cause property to be kept in a neat clean manner at all times or this
Lease may be voided by Lessor.
9. Upon the expiration of this Lease, in course or by breach of any of its
provisions, Lessee will restore the leased premises to Lessor in as good
condition as when possession was taken by Lessee, ordinary wear and tear
excepted.
10. Lessee will pay all utility bills in the amount of $500.00 per month.
11. Lessee shall be allowed to display such sign or advertisement on the
premises as shall comply with all municipal, county and state building and
zoning codes. Upon termination of this Lease, Lessee will remove any sign,
advertisement or notice painted on or affixed to the leased premises, and
restore that place it occupied to the condition which existed as of the date
this Lease takes effect.
12. Lessee shall be responsible for risk of and liability for damages to person
or property during the term of this Lease arising from its occupancy of the
premises. Lessee shall provide Lessor with a copy of said liability policy
showing Lessor as "also insured." Said policy shall show limits of not less than
$1,000,000 for any one occurrence. Lessor shall insure building against fire
damage. Lessee shall be responsible to insure Lessee's personal property.
13. In the event of a substantial destruction (substantial destruction as
herein used means destruction which will cost 30% of more of the value of the
improvements prior to destruction to restore such improvements) of the lease
premises by fire, cyclone or act of God, this Lease may be terminated on notice
by the Lessor or by the Lessee, or the parties shall agree to rebuild for the
use of the Lessee, and in that event, the parties shall agree whether to rebuild
within
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thirty (30) days after said destruction, and the Lessor shall then proceed with
all reasonable diligence, delay due to adjustment or insurance loss and other
unavoidable delays excepted, to restore the said premises; and this Lease shall
continue in full force and effect, except that, as the sole and exclusive remedy
of the Lessee, there shall be an abatement of the rent payable by Lessee during
the time the said premises are untenantable or in party untenantable. In the
event of a partial destruction (partial destruction as herein used means
destruction which will cost 30% of the value of the improvements prior to
destruction to restore such improvements) of the leased premises by fire,
cyclone, or act of God, the Lessee may terminate or the Lessor will repair said
leased premiums for use of the Lessee, and the Lease shall continue in full
force and effect, except that, as the remedy of the Lessee, there shall be an
abatement in the rent payable by the Lessee during the time the leased premises
are untenantable or in part untenantable.
14. The Lessee hereby subordinates this Lease to any mortgage, deed of trust or
encumbrance which the Lessor may have placed, or may hereafter place, on the
premises. Lessee agrees to execute, on demand, any instrument which may be
deemed necessary or desirable to render such mortgage, deed of trust or
encumbrance, whenever made, superior and prior to this Lease.
15. In the event of a breach of any other terms or conditions hereof by Lessee,
Lessor may: (a) take possession of the leased premises and lease the same for
the amount of the Lessee upon such terms as may be acceptable to Lessor, and
apply the proceeds received from such leasing, after paying the expenses
thereof, toward the payment of the rent which the Lessee herein is obligated to
pay and collect the balance thereof from the Lessee; or (b) to take possession
of the leased premises and collect from the Lessee all damages sustained by
reasons of such breach; or (c) to pursue any remedy or remedies which may be
available at law or in equity.
16. Should bankruptcy, insolvency or receivership proceedings of any kind by
instituted by or against Lessee, or any part of the Lessees if more than one are
included in the designation "Lessee" herein, or should Lessee's interest in the
Lease, or the interest of any one of the Lessees, if more than one are included
under the designation "lessee" herein, dissolve or pass by operation of law to
any other person or corporation, then at the option of Lessor, that shall be
considered a breach of the terms and conditions of this Lease, and Lessor may
pursue the remedies provided in paragraph 15 hereof.
17. On termination of this Lease, in due course Lessee agrees to surrender
possession of the Lease premises without demand. Failing to do so, Lessee will,
in addition to the damages generally recoverable, be liable to Lessor for all
damages Lessor may sustain, including claims made by any succeeding tenant
against Lessor which are found upon delay or failure in delivering possession of
the lease premises to the succeeding tenant.
18. Lessee shall pay a security deposit of $1,000 at time of occupancy.
19. The failure of the Lessor to insist upon performance of any of the
agreements and conditions herein in any one or more instances shall not be a
waiver of the right thereafter to insist upon full and complete performance of
such agreements and conditions. Receipt by the Lessor of rent with knowledge of
the breach of any of the agreements and conditions hereof shall not be deemed a
waiver of such breach.
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20. Any notice provided for herein will be deemed to have been give Lessee when
deposited in registered mail and addressed to Lessee, as follows:
Attention: President
Daisy Manufacturing Company, Inc.
Brass Eagle Division
0000 Xxxxx 0xx Xxxxxx
Xxxxxx, Xxxxxxxx 00000
21. Upon termination of this Lease in course or for breach of any of its terms
or conditions, Lessee agrees to restore the leased premises to Lessor in as good
condition as when possession is delivered to Lessee, ordinary wear and tear
excepted.
22. Lessor may place a "for rent" sign or signs on the leased premises during
the last 30 days this Lease is in force.
23. In the event any changes, alterations or additions are required by any law,
ordinance, or regulation of the Fire Department or Board of Health, as a direct
result of Lessee's occupancy, then the cost of such change, alterations or
additions required by any such law, ordinance or regulation should be paid by
Lessor.
24. If the leased premises be subjected to any eminent domain proceedings, the
Lease shall terminate if all the leased premises are taken or if the portion
taken renders the premises wholly inadequate for Lessee's purposes, as set out
in paragraph 2 hereof. In such condemnation proceedings, Lessee may claim
compensation for the taking of any removable installations which by the terms of
this Lease Lessee would be permitted to remove at the expiration of this Lease,
but Lessee shall be entitled to no additional award, it being agreed that all
damages allocable to full fee simple owners.
25. Lessor or his agents may, by prior appointment during regular business
hours, enter the leased premises for inspection purposes.
26. Lessor shall pay the amount of general taxes assessed and levied against
the leased premises and any improvements thereon.
27. Lessee shall have the option to renew Lease for three (3) one (1) year
rental periods at the same rental rate as the original term.
28. It is understood that Xxxx XxXxxxx of Xxxxxxx and Associates, Inc. shall be
paid by Landlord a leasing fee of 6% of gross rent as collected on a monthly
basis for the terms of this Lease and all extensions. Should Lessee purchase
said property, Xxxxxxx and Associates, Inc. will be paid a sales fee of 6% of
gross sales price at closing.
29. Prior to July 01, 1997, Lessor shall replace damaged ceiling tiles, repair
damaged carpet and replace carpet in the conference room along with repair
lattice work outside the conference area. Lessor shall allow Lessee access to
the premises to commence preparations for moving in.
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30. Lessee shall have the parking area designated for Lessee use having a
minimum of 40 parking spaces along with handicapped spaces as called for in the
Xxxxxx City ordinances.
Witness the hand and seals of the parties this ____ day of ____________________,
1997.
ATTEST:
Daisy Manufacturing Company, Inc.
Brass Eagle Division
/s/ Xxxx Xxxxx By: /s/ Xxxx Xxxxx
--------------------------- ----------------------------------
Lessor:
By: /s/ Xxxxxx Xxxxx
--------------------------- ----------------------------------
31. Lessee agrees to pay increases on gas, electricity, water and sewer on a
prorata basis to lessor as follows: Basis cost for utilities shall be $500.
Lessee shall not be charged for lessee's gross consumption so long as lessee is
not abusive by using unreasonable amounts of utilities. Increased utility cost
that are a result of increases for unit cost not for the number of units used
will be passed through to Daisy. The formula will be: Daisy will pay basis for
electricity $305 per month times the change in unit cost; basis for water and
sewer $13.00 per month times the percentage change in the unit cost; basis for
gas $182.00 per month times the percentage change in the unit cost.
Cost shall be in addition to the $500.00 basis.
Example: A 10% increase in electricity would be 10% of $305.00 or $30.50
increase above the basis or $530.50 per month.
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