LEASE AGREEMENT
THIS AGREEMENT is made and entered into this 20th day of August, 1996,
by and between XXXXXX X. XXXXXXXX of 000 Xxxxxx Xxxx, Xxxxxxxxx, Xxxxxxx
00000, hereinafter referred to as LESSOR; and XXX XXXXXX, of Xxxxxx Arms,
Inc., hereinafter referred to as LESSEE.
W I T N E S S E T H
WHEREAS, LESSOR is the owner of certain real property located in Ravalli
County, described as 0000 Xxxxxxx 00 with improvements thereon;
WHEREAS, LESSEE is desirous of leasing a portion of said property;
NOW, THEREFORE, in exchange for good and valuable consideration paid by
LESSEE to LESSOR, the legal sufficiency and receipt of which is hereby
acknowledged, and covenants to be performed, all as more particularly
hereinafter set forth, the parties agree as follows:
1. DESCRIPTION OF LEASED PROPERTY:
LESSOR by these presents does hereby lease unto LESSEE the
following real property located in Ravalli County, Montana:
5200 sq. metal building at 0000 Xxxxxxx 00 and land 20' north and south
of said building with 40' near yard and frontage to Highway 93 to the east.
TO HAVE AND TO HOLD the said premises unto LESSEE, its successors
and assigns, for the term of this lease as hereinafter set forth.
2. TERM AND PAYMENTS:
The primary term of this lease shall be for a period of three years
commencing September 1, 1996 and shall terminate on September 1, 1999. It is
expressly understood and agreed by the parties that the length of this lease
is a material term and that LESSOR would not have entered into this lease
agreement without the term of the lease agreed to herein.
LESSEE shall pay, prior to taking possession of the leased
premises, the nonrefundable sum of $4,000, which shall represent payment for
the first month of the lease agreement and prepayment of the last one
month(s) of the lease agreement. Thereafter, LESSEE shall pay as rental
payment for the leased premises the sum of $2,000 per month, said payment to
be made by LESSEE to LESSOR on the ______ day of each month. Said monthly
rent payment to
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be made by LESSEE to LESSOR at its address set forth above, unless LESSOR
subsequently designates a different address in writing. The parties expressly
understand and agree that timely rent payments are required herein and that
there shall accrue a late fee penalty of Fifteen Dollars ($15.00) per day
after the __________ of each month until payment in full is made hereunder.
Additionally, prior to taking possession of the leased premises, the LESSEE
shall pay to LESSOR the sum of -0- as a cleaning and security deposit.
3. ASSIGNMENT OF LEASE:
It is expressly understood, agreed and part of the consideration
given hereunder that LESSEE may not assign or transfer any part of this Lease
or LESSEE's interest hereunder and nor may LESSEE sublet or sublease any part
or all of the leased premises without the express written consent of the
LESSOR.
4. POSSESSION, MAINTENANCE AND USE OF PROPERTY:
LESSEE shall be entitled to possession on the first day of the term
of this Lease provided the payments required hereunder have been made to
LESSOR, and shall yield possession to LESSOR on the last day of the term of
the Lease, unless otherwise agreed to by both parties in writing.
LESSEE shall maintain the premises in a clean, safe and sanitary
condition.
LESSEE shall not permit any use of the premises, or any part
thereof, which is in violation of any national, state, country or municipal
law, ordinance or regulation. LESSEE shall be responsible for cleaning the
leased premises and will be responsible for damage caused to the leased
premises by LESSEE. LESSEE expressly agrees and understands that LESSEE is
responsible for maintaining the real property surrounding the improvements
and that there shall be no old cars, junk, garbage, etc. on the real property
and further that there shall be no outside storage without the express
written consent of the LESSOR. LESSEE understands and agrees that LESSEE
shall be responsible for all utilities, waste disposal, garbage disposal etc.
LESSEE understands and agrees that neither the use of nor storage of any
toxic materials is allowed on the leased premises without EPA approval.
5. DEVELOPMENT AND IMPROVEMENT OF PROPERTY:
LESSEE shall be responsible to provide all necessary improvements
to leased premises in connection with the activities LESSEE will conduct on
the leased premises. LESSEE shall obtain LESSOR's advance permission in
writing prior to altering or improving the leased premises.
6. TAXES:
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LESSOR agrees to pay all taxes, assessments, and other charges
levied upon the real property during the term of the lease.
7. INSURANCE:
LESSOR shall maintain fire and extended coverage insurance upon the
premises herein demised. LESSEE and LESSOR shall each be responsible to
maintain appropriate insurance for their respective interests and activities
in the leased premises.
8. DEFAULT:
In the event the LESSEE shall be in default in the performance or
observance of any covenant or agreement or condition of this lease and in the
event of such default or condition, then LESSOR may give LESSEE written
notice of such default or condition. Said notice shall be deemed delivered
when deposited in the United States mail, registered or certified with return
receipt request, properly sealed, stamped and addressed to LESSEE at the
address set forth for LESSEE at the beginning of this lease.
In the event the default or defaults are not cured in their
entirety within thirty (30) days after the delivery of said notice, the
LESSOR may reenter the demised property and take and hold full and complete
possession thereof. Thereafter, LESSOR may recover from LESSEE such damages
as LESSOR may have suffered by reason of such default, together with
attorneys' fees and other costs. In the event that LESSEE vacates, abandons
or terminates this lease agreement prior to the end of the term of this lease
agreement, then said damages shall include, but are not limited to, all of
the monthly rental/lease payments due hereunder up to the end of the term of
this lease agreement. LESSOR agrees, however, to take all reasonable steps to
minimize the damages.
In the event the above default or defaults are not cured within the
thirty (3) day period, LESSOR may, at its option and sole discretion and
without any further notice, reenter the demised property and cancel and
terminate this lease or may seek any other rights or remedies allowed by law.
LESSOR may, in the alternative, elect to cure any default and the cost of
such action shall be added to LESSEE's financial obligations under this Lease.
The provisions of this paragraph shall similarly govern should
LESSOR be in default. Any default by the LESSOR, not cured within the
applicable thirty (30) day time period, shall entitle LESSEE to recover all
damages suffered by reason of such default, together with attorney's fees and
other costs and LESSEE may cancel and terminate this lease.
9. TIME OF ESSENCE:
Time shall be of the essence of this lease and all the terms,
covenants and conditions hereof shall be performed at or before the times
herein set forth. Any forbearance on the
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part of LESSOR or LESSEE in the enforcement of the terms and conditions of
this lease shall in no way be construed as a waiver of default thereof or
waiver of the obligatory effect of such provision.
10. CONSTRUCTION AND VENUE:
This lease shall be construed under the laws of the State of
Montana and the parties agree that venue for any legal proceedings hereunder
shall be in the Twenty-First Judicial District in and for Xxxxxxx County.
11. ENTIRE AGREEMENT AND MODIFICATION:
The parties hereto expressly declare that this Agreement contains
the entire agreement and understanding of the parties and supersedes any
prior oral agreements and understandings. This Agreement may be modified only
in writing, signed by both of the parties.
12. BINDING EFFECT:
This Agreement shall be binding upon the parties' assigns and
successors.
13. NOTICES:
Notices under this Lease shall not be deemed valid unless given or
served in writing. Said notices shall be deemed delivered when deposited in
the United States mail, registered or certified with return receipt request,
properly sealed, stamped and addressed to LESSEE or LESSOR at the addresses
set forth above, unless notice of another address is subsequently provided.
14. SAVE HARMLESS:
LESSEE shall save LESSOR harmless from any and all liability,
damages, or claims of damages of any nature or description for injuries
arising out of or in connection with the operation of LESSEE'S business on
the leased premises.
15. SEVERABILITY:
If any portion of this Lease shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue to be
valid and enforceable. If a Court finds that any provision of this Lease is
invalid or unenforceable, but that by limiting such provision, it would
become valid and enforceable, then such provision shall be deemed to be
written, construed, and enforced as so limited.
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16. WAIVER:
The failure of either party to enforce any provisions of this Lease
shall not be constructed as a waiver or limitation of that party's right to
subsequently enforce and compel strict compliance with every provision of
this Lease.
17. OTHER:
All three phase electric needs to be supplied by LESSEE. No smoking
in the office area. LESSEE has right of first refusal at time of sale.
IN WITNESS WHEREOF, LESSOR and LESSEE have caused this agreement to
be executed on this 20th day of August, 1996.
LESSOR:
By: /s/ Xxxxxx Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
LESSEE:
By: /s/ Xxxxxx Xxxxxx
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Xxxxxx Xxxxxx
President
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