Exhibit 10.19
COMMERCIAL LEASE
DATED: 9-1-96
BETWEEN: KLAMATH COLD STORAGE, INC. 0000 XXXX XXXXXX
XXXXXXX XXXXX, XX 00000
LANDLORD
AND: THE NEW EARTH COMPANY 0000 XXXX XXXXXX
XXXXXXX XXXXX, XX 00000
TENANT
Landlord leases to Tenant the following described property on the terms and
conditions stated below:
Buildings (including units 16-22, 27-31), at 000 xxxxxx xxxxxx and Buildings
(including Units 65-67) at 000 Xxxxxx Xxxxxx, both in Klamath Falls, Oregon.
This lease includes approximately 9 Forklifts on the subject property.
I. OCCUPANCY
a) Original Term: The term of this Lease shall commence October 1,
1996, and continue for a term of one year. This lease will
automatically renew for terms of one year each unless and until
either party notifies the other of termination at least 30 days
prior to the end of the original or renewal term.
b) Possession: Tenant's right to possession and obligations under this
Lease shall commence on June I, 1996.
II. RENT
Basic Rent: Tenant shall pay to Landlord as rent the sum of Fifty-Five
Thousand Dollars ($55,000.00) per month. Rent shall be payable on the 1st day of
each month in advance at such place as may be designated by Landlord.
III. USE OF THE PREMISES
a) Restrictions on-use: In connection with the use of the premises, Tenant
shall:
(I) Conform to all applicable laws and regulations of any public
authority affecting the premises and the use, and shall correct at
Tenant's own expense any failure of compliance created through
Tenant's fault or by reason of Tenant's use or as otherwise required
from Tenant by the terms of this lease.
(2) Refrain from any activity which would make it impossible to insure
the premises against casualty, would increase the insurance rate, or
would prevent Landlord
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from taking advantage of any ruling of the Oregon Insurance Rating
Bureau or its successor allowing Landlord to obtain reduced premium
rates for long-term fire insurance policies, unless Tenant pays the
additional cost of the insurance.
(3) Refrain from any use which would be reasonably offensive to other
tenants or owners or users of neighboring premises or which would
tend to create a nuisance or damage the reputation of the premises.
(4) Refrain from loading the floors beyond the point considered safe by
a competent engineer or architect selected by Landlord. (5) Refrain
from making any marks on or attaching any sign, insignia, antenna,
aerial, or other device to the exterior or interior walls, windows,
or roof of the premises without the written consent of Landlord.
c) Construction of Improvements:
Tenant shall be entitled to construct such improvements as it shall elect
but at its sole expense.
IV. REPAIRS AND MAINTENANCE
a) Landlord's Obligations: The following shall be the responsibility of
Landlord:
(I) All utilities (including telephone).
(2) Repair of sidewalks, driveways, curbs, parking areas, and areas used
in common by Tenant and Landlord or tenants of other portions of the
same building.
(3) Repair and maintenance of exterior water, sewage, gas, and
electrical services up to the point of entry to the leased premises.
(4) Major repairs, maintenance and upgrades to the buildings and
equipment and including all refrigeration maintenance.
b) Tenant's Obligations: The following shall be the responsibility of
Tenant:
(1) Basic repairs and maintenance to the buildings, property and
forklifts and other equipment used by Lessee.
(2) Maintain the subject premises in a clean and orderly condition.
(3) Any improvements made for Tenant's convenience.
c) Inspection of Premises: Landlord shall have the right to inspect the
premises at any reasonable time or times to determine the necessity of
repair. Whether or not such inspection is made, the duty-of Landlord to
make repairs shall not mature until a reasonable time after Landlord has
received from Tenant notice in writing of the repairs that are required.
V. INSURANCE
a) Insurance Required: Landlord shall keep the leased premises insured at
Landlord's expense against fire and other risks covered by a standard
all-risk insurance policy with an endorsement for extended coverage.
Tenant shall bear the expense of any insurance insuring the products and
equipment of Tenant on the premises.
b) Waiver of Subrogation: Neither party shall be liable to the other (or to
the other's successors
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or assigns) for any loss or damage caused by fire or any of the risks
enumerated in a standard all-risk fire insurance policy with an extended
coverage endorsement, and in the event of insured loss neither party's
insurance company shall have a subrogated claim against the other.
VI. TAXES
a) Property Taxes: Tenant shall pay as due all taxes on Tenant's personal
property located on the leased premises. Landlord shall pay as due all
real property taxes and special assessments levied against the leased
premises.
b) Special Assessments: If an assessment for a public improvement is made
against the leased premises, Landlord may elect to cause such assessment
to be paid in installments, in which case all of the installments payable
with respect to the Lease term shall be treated the same as real property
taxes as set forth above.
THE NEW EARTH COMPANY KLAMATH COLD STORAGE, INC.
Xxx Xxxxxxx Xxxxx X. Xxxxxxx
Tenant Landlord
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