LEASE
THIS LEASE entered into this 18th day of October, 1994 by and between
XXXXXXXX SURVIVOR TRUST, Lessor, of 0000 Xxxxx Xxxxxxx Xxxx, Xxxxxx,
Xxxxxxxxxx 00000 and PAN AMERICAN UNDERWRITERS, INC., Lessee, of 000 Xxxxx
Xxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxx, 00000,
WITNESSETH
Lessor does lease Lessee that Real Property in the City of Fresno described as
follows:
Approximately 7,589 square feet of office space improved to Lessee's
specifications located at 0000 X. Xxxxxxx Xxxxxx, Xxxxx 000, Xxxxxx, Xxxxxxxxxx,
as shown on Exhibit A attached.
1. RENT
Lessee shall pay an annual basic rental of Ninety-Five Thousand Four
Hundred Seventy-four and 52/100 Dollars ($95,474.52). The annual basic
rental shall be paid in equal installments of Seven Thousand Nine Hundred
Fifty-six and 21/100 Dollars ($7,956.21) payable in advance on the First
Day (1st) of each calendar month commencing on the First Day (1st) day of
lease commencement.
2. TERM
The term of this Lease shall be Five (5) Years and two (2) months commencing
on the sixteenth (16th) day of January, 1995, and ending on the fifteenth
(15th) day of March, 2000.
3. REAL PROPERTY TAX PARTICIPATION
Lessor shall pay all Real Estate Taxes and assessments on the Leased
property.
4. USE OF PREMISES
The premises shall be used as an office for the conduct of Lessee's
Insurance Business, in and about the Leased premises. Lessee agrees to
observe and, promptly at Lessee's own cost and expense, to comply with all
orders, laws, ordinances and regulations of public authorities.
5. UTILITIES
Lessee shall pay for all charges for Gas, Electricity, Light, Heat, Power,
and Telephone or other communication service used, rendered, supplied upon
or in connection with the Leased property and shall indemnify Lessor
against any Liability or Damage of such account.
6. REPAIRS AND UPKEEP
A. Lessee, at Lessee's own expense, shall maintain the interior of the
Leased premises in a clean and sanitary state.
X. Xxxxxx shall be responsible for maintaining and repairing the Leased
premises and exterior common areas in all particulars. However, if
repairs are necessitated as a result of the acts of Lessee, licensees,
invitees, or guests of Lessee at the premises, then the cost of such
repairs shall be charged to Lessee.
7. ALTERATIONS AND IMPROVEMENTS
No alteration, addition or improvement to the Leased property shall be
made by Lessee without the written consent of the Lessor, such consent
shall not be unreasonably withheld. Any alteration, addition or
improvement made by Lessee after such consent shall have been given and
any fixtures installed as part thereof, shall at the Lessor's option
become the property of the Lessor upon expiration or other sooner
termination of this Lease.
8. SURRENDER OF LEASED PROPERTY
Lessee shall, on the last date of the term or upon the sooner termination
of the term, peaceably and quietly surrender the Leased property to Lessor
including all alterations, additions and improvements, placed by the
Lessee thereon (excepting moveable furniture, moveable personal property
or moveable trade fixtures put in at the expense of the Lessee) in as good
condition and repair as at the commencement of the Lease. All the property
removable by the Lessee pursuant to the provisions of this paragraph shall
be removed by the Lessee on or before the expiration of the Lease terms,
and all property not so removed shall be deemed abandoned by Lessee. If
the Lessor so elects, Lessor may remove such moveable furniture, personal
property or trade fixtures from the Leased Property and store them at
Lessee's risk and expense. Lessee shall repair and restore and save the
Lessor harmless from all damage to the Leased property caused by such
removal whether by the Lessee or by the Lessor.
9. LESSOR'S UNDERTAKING FOR INSURANCE
Lessor shall be responsible for providing property insurance on Leased
premises.
10. LIABILITY FOR ACCIDENT OR INJURY AND LIABILITY INSURANCE
Lessee shall carry and maintain at Lessee's own expense throughout the
term of this Lease any extension or renewal thereof public liability
insurance and damage to property in a combined single limit sum not less
than $1,000,000.00, all such insurance to insure both Lessor and Lessee as
their interest may appear with a responsible insurance company or
companies against loss or damage and claims of every kind and nature. From
time to time as such policies are obtained or renewed, Lessee shall
furnish Lessor written certificate of the insurance carrier stating the
principal terms of such policies. Lessor shall in no event be liable for
any accident of injury (including death) to persons or damage to property
which shall occur in any manner whatsoever in or about the Leased premises
as a result or any condition, matter or thing within the control of
Lessee, whether such condition, matter or thing shall exist with or
without the knowledge of Lessor, and Lessee hereby covenants and agrees to
indemnify and hold harmless Lessor from and against any and all liability
damages, suits, and claims of every kind of nature, including reasonable
attorney's fees, made or brought by or on behalf of any person or on
account of any such accident injury, death or damage.
ll. DESTRUCTION OF PREMISES
In case of damages by fire or other casualty to the Leased property
without the fault of the Lessor, if the damage is so extensive as to
amount practically to the total destruction of the Leased property or of
the building constructed thereon this Lease shall cease and the rent
shall be apportioned to the time of damage. In all other cases where the
Leased property is damaged by fire or other casualty without the fault of
the Lessee, Lessor shall repair the damage with reasonable dispatch, and
if the damage has rendered the Leased property untenantable in whole or
in part, there shall be an apportionment of the rent until the damage has
been repaired. In determining what constitutes reasonable dispatch,
consideration shall be given to delays caused by strikes, adjustment of
insurance, and other causes beyond Lessor's control. Lessee shall in no
event be entitled to compensation of damages on account of any
inconvenience or annoyance in making repairs on account of any such
damage.
12. ATTORNEYS' FEE
In the event any suit is brought by either part against the other to
enforce any of the terms or provisions of this Lease, then it is agreed
that successful party to such suit shall be entitled to attorney's fees
to be fixed by the court in such action.
13. NOTICES
Any notice may be given by either party to the other by delivering the
same personally to such party in writing or by mailing the same by
United States Registered Mail in an envelope with sufficient postage,
prepaid thereon, addressed to such party as set forth in the first
paragraph of this Lease, or such other place as either party may
designate.
14. TIME OF ESSENCE
Time and exact performance and each thereon are of the essence of this
Lease and parts and paragraphs thereof.
15. ARBITRATION OF ALL CONTROVERSIES; APPLICATION OF STATE LAW
Any controversy which shall arise between Lessor and Lessee regarding
rights, duties or liabilities hereunder of either party shall be settled
by arbitration. Such arbitration shall be before one (1) disinterested
arbitrator, if one can be agreed upon, otherwise before three (3)
disinterested arbitrators, one (1) named by the Lessee and one (1) by the
two thus chosen. The arbitrator or arbitrators shall determine the
controversy in accordance with the laws of the State of California as
applied to the facts found by him or them.
16. SUCCESSORS AND ASSIGNS
The covenants and conditions herein contained shall, subject to the
provisions as to assignment, apply to and bind the successors, heirs,
executors, administrators and assigns of the parties hereto.
17. LESSEE OPTION
A. The Lessee shall have an option to renew this Lease for an additional
Five (5) year term at then prevailing market rental for comparable
space in the Fresno area.
B. The Lessee agrees to notify the Lessor not later than Ninety (90) days
prior to expiration of the initial Lease term in order to exercise this
Option.
18. ESCALATIONS
Lessee shall pay, as additional rent, Lessee's prorata share, if any, of
the amount by which the recurring operating costs of the building, in
which the Leased premises are located, exceed such expenses for the first
full lease year following the commencement of this Lease. Building
operating costs shall include, but are not limited to; water, sewer and
garbage charges, common gas, electricity and utility charges, parts,
supplies and labor charges for maintenance of the building, its roof,
attachments and common areas, plumbing, electrical, heating, cooling and
air conditioning units, ducting, lighting, sweeping and security,
gardening maintenance and supplies, property taxes and assessments on the
building and common areas, building and public liability insurance
premiums, and the management fee, if any, paid to a third party to
oversee any or all of the building operations. Lessees prorata share
shall be sixty-two percent (62%) of the total for 1780 X. Xxxxxxx. In no
case shall Lessee's liability for it's share of increased costs in any
one year be more than four percent (4%) greater than the previous year.
19. TENANT IMPROVEMENTS
Lessor shall contract to create the improvements and floorplan shown on
Exhibit "A", including associated exterior frontage work, prior to
Lessee's occupancy. That contract shall be for no more than $135,713. Any
work required in excess of that amount shall be contracted and paid for
directly by the Lessee. Additionally, Lessor shall pay for all plans,
permits and fees associated with the total improvement package.
20. PARKING
Lessor shall provide five (5) parking stalls in front of Lessee's
entrance marked "45 MINUTE" to encourage client use. Lessor shall not
lease to another Tenant in 1780 X. Xxxxxxx whose parking requirements
exceed 4.5 stalls per 1,000 square feet of leased space.
21. SIGNAGE
Lessee shall be permitted to install, at their expense, either a monument
sign on the northwest corner of Cedar and Bullard or signs on the
existing wall on the Xxxxxxx frontage. Any signs will conform to City and
Association ordinances in effect.
22. FIRST RIGHT OF REFUSAL: At any time during Lessee's tenancy that the approx.
1,661 square feet of space adjacent to theirs in the southeast corner at
0000 X. Xxxxxxx, currently addressed as Suite 115, is vacant, Lessee
shall have the first right of refusal to lease it. Should Lessor receive
an acceptable offer to lease the space, they shall notify Lessee in
writing of such. Lessee shall have five (5) business days from receipt of
that notice to notify Lessor that they wish to lease the additional space
on a term concurrent with the term of their lease in effect at that time
and at a rate and with improvements to be negotiated.
23. ALL AGREEMENTS CONTAINED HEREIN
This Lease contains all of the covenants, conditions, stipulations,
agreements and provisions agreed upon between the parties hereto in
relation to the Leased premises, and this Lease supersedes and cancels
each and every other agreement, promise and/or negotiation between the
parties with reference to the Leased premises; and no employee, agent or
representative of the Lessor or the Lessee has authority to change,
modify or alter the terms hereof, and neither party shall be bound by any
inducement, statement, representation, promise or agreement not in
conformity herewith.
IN WITNESS WHEREOF the parties hereof have set their hand.
LESSOR:
XXXXXXXX SURVIVOR TRUST
11/16/94 By: /s/ Xxxxxx Xxxxxxxx, Trustee
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Date Xxxxxx Xxxxxxxx, Trustee
LESSEE:
PAN AMERICAN UNDERWRITERS, INC.
11/07/94 By: /s/ [ILLEGIBLE]
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Date
(4)
EXHIBIT A
[FLOOR PLAN]
