Exhibit 10.8
LEASE AGREEMENT
This lease made this 15th of March, 2007 (the "EFFECTIVE DATE"), between WLLEY
PROPERTIES, INC, (herein referred to as "LESSOR" and HADCO METAL TRADING CO,
LLC(herein referred to as "LESSEE").
WITNESSETH:
That in consideration of the covenants and conditions contained herein, the
Parties agree as follows:
1. LEASE: Lessor hereby leases to Leases the Premises described herein. Leasee
hereby takes the Premises from Lessor for the term and upon the covenants and
conditions contained herein.
2. PREMISES: The Lease pertains to the Premises designated as Building 1,
situated at 00000 00xx Xxxxxx Xxxxx, Xxxxxxxxxx, XX 00000, consisting of
approximately 26,763 square feet together with appurtenant parking areas,
driveways, and landscaped areas, all being that area shown on the site plan
drawing attached hereto and by the reference incorporated herein as Addendum A
(the "PREMISES") and being a part of a commercial industrial project referred to
herein as the "PROJECT".
3. TERM:
a. INITIAL TERM. The initial term of this Lease (the "INITIAL TERM") shall
begin on March 15, 2007 (the "LEASE COMMENCEMENT DATE") and end on March
14, 2012 (the "TERMINATION DATE"). A "LEASE YEAR", within the meaning of
this Lease shall be each one-year period from March 15 of one calendar year
through and including March 14 of the succeeding calendar year of this
Lease.
b. RENEWAL; AUTOMATIC; ADJUSTMENT IN RENT: Upon the expiration of the
Initial Term of this Lease, provided this Lease has not been previously
terminated pursuant the provision of this Lease, and further provided that
an Event of Default shall not have occurred and remain uncured as of the
date on which renewal shall occur, the Leasse shall notify Lessor in
writing prior to each renewal term. Leases is givin the option for Two(2)
additional Five(5) year Renewal Term(s), unless on or before six(6) months
prior to the current Termination Date of this Lease. Lesses has given
written notice of Lessee's intention not to renew this Lease for such
additional Renewal Term. The foregoing provisions regarding automatic
renewal, terms of this Lease. In the event Lessee renews the Lease for a
Renewal Term, the Rent for the Renewal Term shall be adjusted in accordance
with the provisions of the Rental Rate Adjustment Addendum, which is
attached hereto and by this reference incorporated herein as Addendum B.
4. RENT: The rental payments due during the Initial Term of this Lease shall be
in the amount of $10,272.11 per month ("MONTHLY BASE RENT"), commencing with the
Rent Commencement Date (as hereinafter defined). Monthly Base Rent will be
adjusted in accordance with the Rental Rate Adjustment Addendum, which is
attached hereto and by this reference incorporated herein as Addendum B.
Additionally, Lessee shall pay monthly an amount equal to $1.43 per square foot
or $3,189.26 per month (the "OPERATING EXPENSES") commencing with the Rent
Commencement Date for reimbursement of expenses described in Section 5 below. At
the time of renewals the Base Rental amount should include the $500.00
additional rent taken as a discount for the initial term.
Monthly Base Rent, Operation Expenses (which together are referred to as "RENT")
and Sales Tax thereon shall be paid to Lessor at Lessor's place of business as
described herein, as follows:
a. INITIAL PAYMENT: Upon the execution of this Lease, Lessee shall make a
payment of $14,403.67(which consists of the Rent and Sales Tax thereon for
the first full calendar month after the Rent Commencement Date) together
with an additional payment of $14,403.67(which consists of an amount to be
applied for the last month's Rent for the Initial Term).
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b. FUTURE PAYMENT OF RENT AND SALES TAX: All future Rent and Sales Tax
shall be due and payable on the 1st day of each month, commencing on the
1st day of the first calendar month following the Rent Commencement Date.
c. DELINQUENCY CHARGE. A fifteen percent(15.0%) delinquency charge will be
applied to any payment not received by the 10th day of each month. All
delinquency charges shall be included by Lease in its deliquent Rent
payment when said deliquent Rent payment is subsequently paid. The
assesement and/or collection of any deliquency charges shall not in any way
be construed or deemed to be a waiver of the requirement of prompt payment
or a continuing waiver of any of the terms, provisions, covenants or
conditions of the Lease. Lessee acknowledges that Lessor shall incur
additional expenses in collecting and administering late rents and agrees
that the foregoing delinquency charge is a fair and reasonable charge and
not a penalty nor shall it be deemed interest on unpaid Rent.
d. ADJUSTMENTS TO RENT: The Base Rent set forth in this paragraph 4 shall
be subject to adjustments as otherwise provided in Addendum B of this
Lease.
e. RETURNED CHECK: Upon written notice by Lessor, provided a check issued
by Lessee has been returned to Lessor unpaid, for whatever reason, Lessor
may require Lessee to make all further rental payments in cash or by
cashier's check.
f. SALES TAX. All Rent and sums deemed Rent hereunder shall be subject to
applicable Florida slaes tax (the "Sales Tax), currently 7%.
5. OPERATING EXPENSES.
a. Lessee shall pay as Operating Expenses the amount of $1.43 per square
foot of floor area in the Premises for a total of $3,189.26 per month
representing Leasee's estimated monthly prorata shares of annual real
property taxes and assessment, premiums for liability and perils Insurance
in amounts and coverages deemed appropriate by Lessor, landscape
maintenance and other common area expenses typically incurred by single day
shall be one-thirtieth (1/30th) of Operating Expenses.
b. As of the Commencement Date of this Lease, Lessor has estimated Lessee's
Operating Expenses for the balance of the current calendar year. Lessee
shall pay Lessee's Operating Expenses. In advance, along with the payment
of Monthly Base Rent, Lessee shall continue to make said monthly payments
until notified by Lessor of a change. By April 1 of each year (or such
later date as may be practicable). Lessor shall give Lessee a statement
showing the expenses enumerated above for the previous year (or part year
as applicable) upon which Lessee's Operating Expenses amount is based, and
the calculation of Lessee's Operating Expenses. At the same time Lessor
shall provide Lessee with a calculation of Lessee's estimated Operating
Expenses for the current year. In the event the total of the monthly
payments of Operating Expenses which Lessee has made for the prior calendar
year shall be less than the Lessee's actual share of the expenses upon
which Operating Expenses amount is based, then Lessee shall pay the
difference in a lump sum within thirty (30) days after receipt of such
statement. Any overpayment by Lessee shall first be credited toward the
next installment of Operating Expenses and then credited toward the next
installment of Monthly Base Rent. Even though the Term of this Lease may
have expired and Lessee may have vacated the Premises, when the final
determination is made of Lessee's share of Operating Expenses for the year
in which this Lease terminates, Lessee shall timely pay any balance due
over the estimated Operating Expenses previously paid and, conversely, any
overpayment made shall be refunded by Lessor to Lessee.
6. SECURITY DEPOSIT: Concurrently with Lessee's execution of this Lease, Lessee
shall deposit $10,272.11 with Lessor which shall be held by Lessor as security
for the performance by Lessee
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of its obligations under this Lease. The security deposit is not rent for the
last or any other month of the Term. If Lessee defaults with respect to any of
its obligation under this Agreement, Lessor may use or retain all or any part of
the security deposit for the payment of any amount due Lessor hereunder or for
any other amount, loss or damage which Lessor may incur or suffer by reason of
Lessee's default. Lessee shall not be entitled to interest on the security
deposit, and the security deposit is not a limit on Lessee's liability.
7. NOTICES: Unless provided to the contrary herein, notices hereunder may be
given by manual delivery or by registered or certified mail, return receipt
requested, or by overnight commercial courier service such as FedEx. Notice
shall be deemed received upon manual delivery; three (3) calendar days after
post marked, when property addressed and postage prepaid for return receipt
service; or, one (1) Business Day after deposited with an overnight commercial
courier service. As used in this Lesse, the term "BUSINESS DAY" shall mean any
day when federally-insured banks are open for business. Notice given by mail
shall be sent to the parties at their addresses shown herein below although
courier delivery to Lessee shall be made to its physical address. The parties to
this Lease may change their addresses for the purpose of receiving notices, but
no change shall be effective until written notice is actually received by the
other party. The provisions of this paragraph shall also apply to Rent
payments hereunder. The addresses of the parties for notice purposes are as
follows:
LESSOR'S ADDRESS:
Wiley Properties, Inc.
00000 Xxxxxxxxxx Xxxx. Xxxxx 000
Xxxxxxxxxx, XX 00000
LESSEE'S ADDRESS:
Hadco Metal Trading Co., LLC
000-00 Xxxxxxx Xxxx.
Xxxxxxx, XX 00000
8. USE OF AND OCCUPANCY OF THE PREMISES:
a. OCCUPANCY BEFORE RENT COMMENCEMENT DATE. Lessee shall be entitled to
take occupancy of the Premises at any time after Effective Date of this
Lease for the sole purpose of making preliminary arrangements for occupancy
as a warehouse facility with general office space related thereto (as
hereinafter discussed); provided, however, no construction may commence on
the Premises until after the Rent Commencement Date.
b. USE RESTRICTIONS. Lessee shall use and occupy the Premises as a
warehouse facility with general office space related thereto ("TENANT'S
PERMITTED USE"), and for no other purpose. No Lessee or any employee of
Lessee may at any time occupy any part of the Premises as sleeping or
lodging quarters. No birds, fowl, or animals shall be brought into or kept
in or about the buildings, without the prior written consent of Lessor. No
outside storage, which has not been approved by Lessor, shall be permitted
within any common areas servicing the leased Premises. All plate and other
glass not in the Premises, which is broken through cause attributable to
Lessee, its officers, agents, servants, employees, patrons, licensees,
customers, visitors or invitees shall be replaced by and at the expense of
the Lessee, under the direction of the Lessor. Lessor will not be
responsible for lost or stolen personal property, equipment or money from
the Premises regardless of whether such loss occurs when and area is locked
against entry or not.
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c. COMPLIANCE WITH LAWS. Lessee agrees to comply with all laws, orders,
rules, and regulations of any governmental body relating to the manner of
Lessee's use and occupancy of the Premises or any alterations made by
Lessee, and Lessee will pay all costs and expenses incidental to such
compliance, including any modification necessitated by the Americans with
Disabilities Act. Lessee agrees to indemnify and save Lessor harmless from
and against any claims, costs, liability or expenses related to Lessee's
failure to bring the Premises into such compliance. Should Lessee fail to
comply with any part of the provisions contained in this section, the
Lessor may, after ten (10) days notice to Lessee, comply therewith, and
the Lessor's cost and expense in so doing may be considered as additional
Rent due and shall be included in any lien for Rent due and unpaid.
d. PARKING. Lessor shall have the right to reasonably restrict the number
and location of truck/tractor trailers for the overall benefit of the
Premises and other properties in the vicinity of the Premises, it being
agreed that it is not the intent of this Lease to provide unrestricted
parking for automobiles or commercial vehicles. At no time shall the
parking of these or other vehicles be permitted in the fire lanes serving
the industrial project in which the Premises are located.
9. IMPROVEMENTS:
a. LESSOR CONSENT REQUIRED. Lessee will not make any alterations or
improvements to the Premises without written consent of Lessor, which will
not be unreasonably withheld or delayed. Notwithstanding the foregoing,
Lessor's consent is conditional on the following: (i) all work shall be
performed by duly licensed contractors and in accordance with applicable
governmental regulations and (ii) all exterior designs shall be subject to
the review and approval of Lessor, and (iii) without being deemed
arbitrary, Lessor may impose a standard of construction and design that is
consistent with that of Lessor's other property improvements in the
immediate area of the Premises. Preliminary work to be conducted by Lessee
that has been approved by Lessor is described in EXHIBIT C attached hereto
and made a part hereof.
b. REMOVAL OF PERSONAL PROPERTY. In any event, any such improvements or
alterations made by the Lessee shall, at Lessor's election, remain or
become part of the property of Lessor at the time of expiration or
termination of this Lease. Provided Lessee is not in default at the time of
expiration of this Lease, all personal property placed on the Premises by
Lessee, which are removable by Lessee without permanently damaging the
Premises, including shelving, telephone and other communications equipment,
computer equipment and tools and equipment associated with Lessee's
business operation, may be removed by Lessee upon the expiration of Lease,
provided Lessee repairs any damage caused by such removal. However, if
Lessee, at such time, is in default under the terms and conditions of this
Lease, Lessee may not remove said personal property without the express
consent of the Lessor. In the event Lessee improvements creates an
additional assessment in ad-valorem taxes, Lessee shall be required to
reimburse Lessor according to the amount of such an increase.
c. EQUIPMENT PLACEMENT. Lessor shall have the right to determine and
prescribe the maximum weight and proper placement of any heavy equipment
that is to be placed in the buildings, and only those which, in the opinion
of Lessor, will not do damage to the floors, building structures or
elevators, may be moved into the buildings. Such installations shall be
placed and maintained by the Lessee, at Lessee's expense, in settings
sufficient, in Lessor's Judgment, to absorb and prevent vibration, noise,
annoyance, deterioration of the floors, building structures or elevators,
if any, Lessor shall not be held responsible for any damage and/or
liability attributable to Lessee's equipment placement.
10. IDENTIFICATIONS SIGNS: All identification signs, awnings, and/or other signs
on the Premises shall be erected by Lessee. The location, number, size and
design of all signs of Lessee shall be subject to approval of Lessor, in
Lessor's sole discretion, and shall be consistent with applicable governmental
requirements. Lessee shall promptly apply for and take all action as is
reasonably necessary to secure the requisite government approvals for
installation of signs approved by Lessor.
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11. UTILITIES: Leasee agrees to pay all charges for separately-metered water,
sewer, gas, electricity, telephone and cable, garbage collection and for
replacement of celling light bulbs and tubes and all other illumination. Any
utility charges that are not separately metered shall be included in Operating
Expenses and paid to Lessor as provided in this Lease. Lessor shall have no
liability for interruptions in utility services, unless such interruptions are
caused by the willful actions or gross negligence of Lessor. If any such
services are billed to Lessor, Lessee agrees to pay all such charges not more
than fifteen (15) days after receipt of an invoice from Lessor.
12. MAINTENANCE: Lessee agrees to keep the lessed Premises and appurtenances in
good order and repair and in a clean, safe, and healthy condition (excluding,
however, the roof and structural members of the building of which the Premises
form a part and all repairs made necessary by reason of fire or other
unavoidable casualties). Lessor shall also be responsible for permanently
embedded in walls or floors, electrical and plumbing systems and fixtures as
long as the damages were not incurred by the tenants neglect or wrong doing. At
Lessee's own cost and expense, including all mechanical equipment furnished by
Lessor and any electrical lines, HAVC, or condults not imbedded in the walls or
floors Lessee shall promptly make or cause to be made all repairs, interior and
non-structural exterior, ordinary and extraordinary, foreseen and unforeseen,
necessary to keep the Premises in good and lawful order and condition. Lessee
shall maintain garbage containers in good order and repair. Material repairs or
replacement of any mechanical equipment or utility lines or condults shall be
subject to Lessor's prior approval, which shall not be unreasonably withheld,
conditioned or delayed.
13. TAXES. Lessee shall pay all personal property taxes which are assessed
against any property of Lessee located on the Premises no later than twenty-five
(25) days prior to the same becoming delinquent. Lessee shall furnish Lessor
evidence of payment of such taxes within three (3) business days after payment
of same.
14. INSPECTIONS: Lessor may at reasonable times, inspect, alter or repair the
Premises when necessary for its safety or preservation. Lessor may show the
Premises to others at any reasonable time within six (6) months immediately
preceding the expiration of any Term of this Lease, provided the Lease has not
then been renewed as provided for herein, and may affix a notice for letting or
selling the Premises on any suitable part of the Premises, except windows or
entrances.
15. SUBORDINATION TO MORTGAGE: Lessee agrees that this Lease is and shall be
subordinate to any first mortgage or blanket mortgage placed upon the Premises
or the Project, provided that for so long as Lessee faithfully discharges its
obligations of the terms of this Lease and is not in default hereunder. (a) its
tenancy will not be disturbed nor this Lesse affected by any default under such
mortgage; (b) the right of tenancy thereunder shall expressly survive and shall
not be cut off; (c) this Lesse shall, in all respects, continue in full force
and effect; and (d) Lesses agrees to and does attom to the foreclosing lender
or other party taking title to the Premises as a consequence of a foreclosure or
transfer of title in lieu thereof.
16. ESTOPPEL CERTIFICATE: Lessee will execute and deliver to Lessor, within ten
(10) business days of Lessor's written demand, a statement in writing certifying
that this Lesse is in full force and effect, and that the Base Monthly Rent and
Operating Expenses payable hereunder is unmodified and in full force and effect
(or, if modified, stating the nature of such modification) and the date to which
rent and other charges are paid, if any, and acknowledging that there are not,
to Lessee's knowledge, any uncured defaults on the part of Lessor hereunder or
specifying such defaults if they are claimed and such other matters as Lessor
may reasonably request. Any such statement may be conclusively relied upon
by any prospective purchaser or encumbrancer of the Premises. Lessee's failure
to deliver such statement within such time shall be conclusive upon Lessee that
(1) this Lease is in full force and effect, without modification except as may
be represented by Lessor, (2) there are no uncured defaults in Lessor's
performance and (3) not more than one (1) month's rent has been paid in advance.
17. INDEMNIFICATION: Lessee shall protect and indemnify Lessor and hold Lessor
harmless from and against all claims, suits and actions by third-persons by
reason of personal injury, death, or property damage occurring on or about the
Premises, while this Lesse remains in force, arising out of Lessee's use and
occupancy of the Premises.
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18. INSURANCE:
a. Except as expressly provided as Lessee's Permitted Use, or as otherwise
consented to by Lessor in writing. Lessee shall not do or permit anything
to be done within or about the Premises which will increase the existing
rate of insurance on the Project and shall, at its sole cost and expense,
comply with any requirements, pertaining to the Premises, of any insurance
organization insuring the Project. Lessee agrees to pay to Lessor, as
Additional Rent, any increases in premiums on policies directly resulting
from Lessee's Permitted Use or other use consented to by Lessor which
increases Lessor's premiums or requires extended coverage by Lessor to
insure the Premises.
b. Lessee, at all times during the term of this Lease and at Lessee's sole
expense, will maintain a policy of standard fire and extended coverage
insurance with "all risk" coverage on all Lessee's improvements and
alterations in or about the Premises and on all of Lessee's personal
property and equipment to the extent of at least ninety percent (90%) of
their full replacement value. The proceeds from this policy will be used by
Lessee for the replacement of personal property and equipment and the
restoration of Lessee's improvements and/or alterations. This policy will
contain an express waiver, in favor of Lessor, of any right of subrogation
by the insurer.
c. Lessee, at all times during the term on this Lease and at Lessee's sole
expense, will maintain a policy of commercial general liability coverage
with limits of not less than $2,000,000 combined single limit for bodily
injury and property damage insuring against all liability of Lessee and its
authorized representatives arising out of or in connection with Lessees's
use or occupancy of the Premises.
d. All insurance required to be maintained by Lessee will name Lessor
and/or Lessor's designated partners and affiliates as an additional insured
and will include an expense waiver of subrogation by the insurer in favor
of Lessor and Lessee and will release Lessor from any claims for damage to
any person, to the Premises, and to the Project, and to Lessee's personal
property, equipment, improvements and alterations in or on the Premises of
the Project, caused by or resulting from risks which are to be insured
against by Lessee under the Lease, except matters arising from the gross
negligence or willful misconduct of Lessor, its employees, officers,
agents. All insurance required to be provided by Lessee under this Lease
will (a) be issued by an insurance company authorized to do business in the
state in which the Premises are located and which has and maintains a
rating of A/X in the Best's insurance Reports or the equivalent. (b) be
primary and noncontributing with any insurance carried by Lessor, and. (c)
contain an endorsement requiring at least thirty (30) days prior written
notice of cancellation to Lessor before cancellation or change in coverage,
scope or limit of any policy. Lessee will deliver a certificate of
insurance or a copy of the policy to Lessor within thirty (30) days of
execution of this Lease and will provide evidence of renewed insurance
coverage at each anniversary, and prior to the expiration of any current
policies; however, in no event will Lessee be allowed to occupy the
Premises before providing adequate and acceptable proof of insurance as
stated above. Lessee's failure to provide evidence of this coverage to
Lessor may, in Lessor's sole discretion, constitute a default under this
Lease.
x. Xxxxxx agrees to purchase and keep in full force and effect during the
Lease Term insurance under policies issued by insurrers authorized to do
business in the State of Florida and which maintain a rating of A/VIII in
the Best's Insurance Reports or the equivalent, (i) of standard commercial
general liability with a limit of not less than Two Million Dollars
($2,000,000) combined single limit for bodily injury, and (ii) on the
Project in amounts not less than the full replacement costs of the Projectr
(above foundations) insuring against fire and other such risks as may be
included in standard forms of fire and extended coverage insurance
available from time to time. Lessor agrees to deliver certificates to
insurance to Lessee within thirty (30) days of
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execution of this Lease and will provide evidence of renewed insurance
coverage upon request by Lessee, but not more frequently than annually. The
cost of such insurance shall be considered an Operating Expenses of the
Project pursuant to Section 4 above. Such property insurance required to be
provided by Lessor will include an express waiver of subrogation by the
insurer in favor of Lessee
19. ASSIGNMENT/SUBLETTING: This Lease may not be assigned nor may Lessee sublet
the Premises, without Lessor's prior written consent, which shall not be
unreasonably witheld. As a condition to consent, Lessor may require that any
assignee or sub-Lessee shall affirmatively assume all subsequent obligations of
Lessee thereunder. Notwithstanding the foregoing, the assignment this Lease or
the subletting of the Premises or any part thereof to a wholly owned subsidiary
of Lessee's parent corporation (an "Affiliate") shall not be prohibited and
shall not require the consent of Lessor. Assignment or subletting shall not,
however, abrogate or lesson Lessee's obligations thereunder nor constitute a
release therefrom, and any dealings or communications between Lessor and a
sub-Lessee or assignee shall not be deemed a waiver of Lessee's obligations
thereunder.
20. LESSEE'S DEFAULT: The occurrence of any of the following shall constitute an
event of default on the part of Lessee hereunder ("Event of Default")
a. RENT PAYMENT DEFAULT: The failure to pay any Rent or other sum deemed as
additional Rent hereunder, within ten (10) calendar days after the due
date;
b. OTHER PAYMENT DEFAULT: The failure to pay and provide to Lessor within
ten (10) calendar days after a written request by Lessor, with evidence of
payment of any tax, assessment, water rate or other public dues, charge,
levy, fee or imposition of every kind and nature, which have become
due and payable out of or in respect of, or become a lien on the Premises
or any part thereof, which are payable by the Lessee hereunder, Unless such
non-payment is otherwise allowable hereunder;
c. OTHER DEFAULT: If Lessee shall have failed to cure a default in the
performance of any obligation of Lessee under the Lease (except the payment
of Rent and sums deemed additional Rent) within twenty (20) days after
written notice thereof from Lessor, but notwithstanding the foregoing, if
the nature of any default, other than a default in the payment of Rent or
the obligation to maintain casualty and liability insurance, is such that
said default can not be cured within twenty (20) days, despite the exercise
of reasonable diligence in the prosecution of the curing of such default,
then, in that event, Lessee shall have such period as is reasonably
required to cure such default using reasonable diligence in the prosecution
of the curing of such default, provided Lessee commences the curing of such
default within such twenty (20) day period and proceeds thereafter, with
reasonable diligence to cure such default;
d. ASSIGNMENT FOR BENEFIT OF CREDITORS: An assignment by Lessee of all or
substantially all of its property for the benefit of creditors;
e. APPOINTMENT OF RECEIVER, TRUSTEE OR LIQUIDATOR: The appointment of a
receiver, trustee, or liquidator for Lessee, or any of the property of
Lessee, If within five (5) business days of such appointment Lessee does
not inform Lessor in writing that Lessee intends to cause such appointment
to be discharged or Lessee does not thereafter diligently prosecute such
discharge to completion within sixty(60) days after the date of such
appointment;
f. PETITION IN BANKRUPTCY: The filling by Lessee of a voluntary petition
under any federal bankruptcy law or under the law of any state to be
adjudicated as bankrupt or for any arrangement or other debtor's relief, or
in the alternative, if any such petition is involuntarily filed against
Lessee by any other party and Lessee does not within five (5) business days
of any such filling inform Lessor in writing of the intent by Lessee or to
cause such petition to be dismissed, if Lessee does not thereafter
diligently prosecute such dismissal, or if such filling is not dismissed
within sixty (60) days after filling thereof.
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g. FAILURE REGARDING INSURANCE: The failure to obtain and keep in force the
insurance required by Sections 18 and 19, or to timely deliver evidence
thereof to Lessor within ten (10) days after Lessor has made a written
demand for evidence thereof;
h. ASSIGNMENT OR SUBLET WITHOUT CONSENT: If the Premises or any portion
thereof is assigned or sublet, without the prior written consent of Lessor.
Except as otherwise provided in Section 19.
21. LESSOR REMEDIES ON LESSEE'S DEFAULT: If an Event of Default occurs, Lessor
shall have the rights and remedies hereinafter set forth.
a. TERMINATE LEASE: Lessor may terminate this Lease by giving to Lessee
notice of Lessor's election to do so, in which event the Term of this Lease
shall end, and all right, title and interest of Lessee hereunder shall
expire on the date stated in such notice. In the event of termination of
the Lease as a result of Lessee's default, Lessee shall nonetheless remain
liable for performance of its obligations herein.
b. TERMINATE POSSESSION: Lessor may terminate that right of Lessee to
possession of the Premises without terminating this Lease by giving notice
to Lessee that Lessee's right of possession shall end on the date stated in
such notice, whereupon the right of Lessee to possession of the Premises or
any part thereof shall cease on the date stated in such notice.
c. EXERCISING OF REMEDIES: If Lessor exercises any of the remedies provided
for in subsections a or b above, Lessee shall surrender possession and
vacate the Premises and Immediately deliver possession thereof to Lessor,
and Lessor may re-enter and take complete and peaceful possession of the
Premises, with or without process of law, full and complete license so to
do being hereby granted to Lessor, and Lessor may remove all occupants and
property therefrom, using such force as may be necessary, without being
deemed in any manner guilty of trespass, eviction or forcible entry and
detainer and without relinquishing Lessor's right to Rent or any other
right given to Lessor hereunder or by operation of law.
d. ENFORCEMENT OF RIGHTS: Lessor may enforce the provisions of this Lease
and may enforce and protect the rights of Lessor hereunder by a suit or
suits in equity or at law for the specific performance of any covenant or
agreement contained herein, or for the enforcement of any other appropriate
legal or equitable remedy, including recovery of all moneys due or to
become due from Lessee under any of the provisions of this Lease.
e. RECOVERY OF AMOUNTS DUE; REENTRY OR REPOSSESSION: If Lessor terminates
the right of Lessee to possession of the Premises without terminating this
Lease; Lessor shall have the right to immediate recovery of all amounts
then due hereunder. Such termination of possession shall not release Lessee
or any other party obligated therefor. In whole or in part, form Lessee's
obligation to pay the Rent hereunder for the full Term, and Lessor shall
have the right, from time to time, to recovery from Lessee, and Lessee
shall remain liable for, all Rent, sums deemed additional Rent, and any
other sums accruing as they become due under this Lease during the period
from the date of such notice of termination of possession to the stated and
of the Term, in any such case Lessor may relet the Premises or any part
thereof for the account of Lessee for such rent, for such time (which may
be for a term extending beyond the Term of this Lease) and upon such terms
as Lessor shall determine and collect the rents from such reletting. Lessor
may make reasonable repairs, alterations and additions in or to the
Premises to the extent deemed necessary or desirable by Xxxxxx. The rents
from any such reletting shall be applied first to the payment of the
expenses of reentry, repair and alterations and the reasonable expenses of
reletting (including customary brokers' commission and reasonable
attorney's fees), and second to the payment of Rent herein provided to be
paid by Lessee. Any excess or residue shall operate only as an offsetting
credit against the amount of the Rent due and owing as the same thereafter
becomes due and payable hereunder, and the use of such offsetting credit to
reduce the amount of Rent due Lessor. If any, shall not be deemed to give
Lessee any right, title or interest in or to such excess or residue, and
any such excess or residue shall belong to Lessor solely, and in no
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event shall Lessee be entitled to a credit on its obligations to Lessor in
excess of the aggregate sum which would have been paid by Lessee for the
period for which the credit to Lessee is being determined, had no Event of
Default occurred. No such reentry or repossession, repairs, alterations and
additions, or reletting shall be construed as an eviction or ouster of
lessee or as an election on Lessor's part to terminate this Lease, unless a
written notice of such intention shall be given to Lessee, or shall operate
to release Lessee in whole or in part from any of Lessee's obligations
hereunder, and Lessor may, at any time and from time to time, xxx and
recover judgment for any deficiencies from time to time remaining after the
application from time to time of the proceeds of any such reletting.
22. CUMULATIVE REMEDIES: The rights and remedies provided in this Lease are
cumulative and the use of any one right or remedy by any party shall not
preclude or waive its right to use any or all other remedies. Said rights and
remedies are given in addition to any other rights the parties may have by law,
statute, ordinance or otherwise.
23. TIME IS OF THE ESSENCE: It is understood and agreed between the parties
hereto, that time is of the essence in this Lease and this applies to all terms
and contained herein.
24. SURRENDER OF POSSESSION BY LESSEE: Upon the expiration or termination of
this Lease, Lessee will deliver up and surrender to the Lessor possession of the
Premises together with all fixtures, alterations, additions and improvements,
which may have been made in, on or to the Premises upon the expiration or
termination of this Lease, in as good condition and repair as the same shall be
at the commencement of said term (loss by fire and ordinary wear and decay
excepted) and all air condition, heating, and other mechanical equipment of
every nature, whether or not installed by Lessee, shall be in good working
order. Lessee shall ascertain from Lessor at least thirty (30) days before the
end of the then term of this Lease whether Lessor desires to have the Premises
or any part thereof restored to the condition in which it was originally
delivered to Lessee (reasonable wear and tear excepted) and if Lessor shall so
desire, then Lessee at its own cost and expense, shall restore the same and/or
make the necessary repairs before the end of the term. If Lessee is not in
default under the terms of this Lease, all trade fixtures and equipment owned by
the Lessee and installed or placed by it upon the Premises or other property
specifically removable pursuant to Paragraph 9 herein, may be removed by the
Lessee at any time during the term or on the expiration thereof. Lessee agrees
to repair any damage to the building occasioned by such removal, Lessee shall,
upon termination of its tenancy, return to the Lessor, all keys to the demised
Premises, either furnished to or otherwise procured by Lessee.
25. HOLDOVER BY LESSEE: If Lessee refuses to give up possession of the Premises,
upon the termination of this Lease, Lessor, pursuant to Section 83.08 of the
Florida Statutes, shall be entitled to double the monthly rental installment and
the acceptance of the aforesaid sum as and for use and occupancy of the Premises
shall not be deemed to have waived any of the rights, remedies or privileges of
Lessor provided elsewhere in this Lease or by virtue of law. Lessee shall
indemnity Lessor against loss or liability resulting from the delay by Lessee in
surrendering the Premises including, without limitation, any claims made by any
succeeding occupancy founded on such delay.
26. DESTRUCTION OR DAMAGE TO PREMISES: If through no fault, neglect or design of
Lessee, the Premises are destroyed by fire of other casualty or damage to such
an extent as to render them unfit for occupancy, and the same are incapable of
being reconstructed within one hundred twenty (120) days from the date of such
fire or other casualty, then this Lease shall be canceled. If, however, the
Premises can be repaired within one hundred twenty (120) days from the date of
such fire or other casualty, then, at the option of the Lessor and if casualty
insurance proceeds are available to do so and are released to Lessor by the
insurer, this Lease shall not be canceled and Lessor shall notify Lessee within
thirty (30) days from the date of fire or casualty, of Lessor's election. In the
event Lessor so elects to repair and/or restore the Premises, Lessor shall
thereafter commence the repair and restoration of the Premises as soon as is
reasonably practicable and shall thereafter prosecute such repair and
restoration with reasonable diligence, Lessee shall be entitled to such
reduction or remission of rent during the period from the date of such casualty
until the Premises are repaired and reconstructed that shall be proportional,
based on the amount of unusable, damaged space as a fraction of the square
footage in the Premises. If, however, Lessor elects not to restore the Premises,
or the reconstruction and restoration of
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the Premise may exceed a period of one hundred twenty (120) days from the date
of such fire or casualty, Lessee may, at Lessee's option, avoid such lease
cancellation and reconstruct the Premises and repair the damage to the same, by
agreeing to pay any sums beyond the proceeds of insurance available for
reconstruction. In such event, Lessee may rebuild the destroyed improvements and
Lessor shall deliver the insurance proceeds to Lessee for such purpose on a
monthly basis, upon receipt of reasonable proof of the incurring of expenses by
Lessee in the reconstruction of the damaged or destroyed improvements and the
payment therefore by Lessee. Lessee shall also be entitled to such reduction or
remission of Rent during the period from the date of such casualty until the
Premises are repaired and reconstructed that is proportional to the square
footage of the Premises destroyed and rendered wholly unusable by such casualty
and reconstruction. Notwithstanding the foregoing, in the event the Premises are
encumbered by a mortgage, then the determination of the mortgages with respect
to rebuilding and use of insurance proceeds shall prevail.
27. CONDEMNATION: If the Premises shall be taken by or pursuant to governmental
authority or through exercise of the power of eminent domain, either totally or
such part as renders that remainder inadequate and unsuitable for the purpose
describe herein, this Lease shall terminate as of the date of taking. In
consideration of the loss of Lease rights and benefits by Lessor, Lessee shall
have no claim against Lessor for the value of any unexpired term. Nothing in
this provision shall be construed to diminish Lessor's rights to full
compensation for the loss of any value associated with the remaining term of the
Lease. If only part of the Premises is so taken and the remainder is adequate
and suitable for the continued business activities and operations of Lessee, or
can be rendered adequate and suitable for such continued business activities and
operations by reasonable expenditure, this Lease shall continue in force except
that the Rent shall be reduced to reflect any loss in space. The decision as to
whether such partial condemnation leaves the remaining Premises adequate and
suitable for the continued business activities of Lessee shall be in Lessee's
sole judgment and total discretion. In the event that the Lease is not
terminated, Lessor shall bear the reasonable expense of restoration necessary to
make the Premises adequate and suitable, provided Lessee and Lessor reach
agreement upon the scope of any such restoration, and agree upon other
amendments to the Lease that relate to the taking. Lessor shall be entitled to
receive all compensation, damages, or awards for the taking except that Lessee's
business damages and except that any compensation or awards for the taking of a
fixture or other improvement installed by Lessee at Lessee's expense which
constitutes an improvement to the real estate, shall be prorated between Lessor
and Lessee, so the Lessee receives the percentage that the remaining portion of
the Lease term bears to the remaining useful life of the fixture. If the fixture
is to be restored, as provided above, both Lessor's and Lessee shares shall be
applied to the cost thereof.
28. MECHANIC'S LIENS: Notice is hereby given that Lessor shall not be liable for
any work, labor, or materials furnished, or to be furnished, upon credit to or
for Lessee or anyone claiming under Lessee, and that no mechanic's or other lien
for any such work, labor or materials shall attach to or affect the title or
interest of Lessor in and to the Premises. Lessee shall not do or suffer
anything to be done whereby the Premises may be encumbered by any mechanic's
lien. If any mechanic's lien or notice of claim thereof is filed against the
Premises with respect to work, labor, or materials furnished or to be furnished
to Lessee or anyone claiming under Lessee, Lessee shall, within thirty (30) days
from date of filing, cause the same to be withdrawn, discharged, or removed, by
deposit, bonding proceeding or otherwise. If Lessee fails to do so, Lessor may
do so, and may pay any judgment recovered by any such lienor. Lessee shall
immediately reimburse Lessor for all amounts paid (including expenses) pursuant
to this paragraph, which amount shall be additional Rent and immediately due,
Lessee agrees to execute a memorandum of lease setting forth the foregoing
provision and to permit the recordation of same in the Public Records of
Pinellas County, Florida, In accordance with the provisions of Section 713.10,
Florida Statutes.
THE INTEREST OF THE LESSOR SHALL NOT, UNDER ANY CIRCUMSTANCES, BE SUBJECT
TO LIENS FOR IMPROVEMENTS MADE BY THE LESSEE.
29. LESSOR'S LIEN. In additional to the statutory lien provided by Florida law,
all personal property, equipment and/or inventory, of the Lessee ("LESSEE'S
PROPERTY"), which may at any time be upon the Premises, whether exempt from
execution or not, shall, in the event of a default by Lessee, under the
Page 10 of 16 Pages.
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Provisions of this Lease, be subject to a lien in favour of Lessor for payment
of the rental herein reserved or any amount required to be paid herein, and for
any damages arising from any breach by Lessee or any of the covenants, or
agreements of this Lease to be by these performed, and Lessee hereby grants a
security interest in said Lessee's Property as security for same.
Notwithstanding the foregoing, such lien shall be secondary and inferior to any
purchase money lien and any lien granted or placed by Lessee on said Lessee's
Property, in favor of any institutional or purchase money lender, with respect
to any debt or other obligation of Lessee incurred by Lessee in the financing of
its business operations. To the extent required by any such institutional or
purchase money lender. Lessor agrees that property purchased by funds loaned by
an institutional or purchase money lender shall be exempt from Lessor's lien.
Property sold by Lessee in the ordinary course of its business will likewise be
exempt from the landlord's lien upon the sale of such property. Lessee agrees,
upon request of Lessee, to execute a written acknowledgement of the
subordination and/or exemption of any of the foregoing property from such Lessor
lien. Lessee further authorizes Lessor to file an appropriate financing
statement in the state of Lessee's incorporation as well as a notice of such
filling in the State of Florida as evidence of the security interest granted
herein.
30. HAZARDOUS MATERIALS: Lessee's handling and disposal of Hazardous Waste shall
be in compliance with Industrial standards, and all applicable State, Federal,
City and County regulations and codes. As used in this section, the term
"Hazardous Waste" means:
a. Those substances defined as "hazardous substances," "hazardous
materials," "toxic substances," "regulated substances," or "solid waste" in
the Toxic Substance Control Act, 15 U.S.C. Section 2601 et. seq., as now
existing or hereafter amended ("TSCA"), the Comprehensive Environmental
Response, Compensating, and Liability Act of 1980, 42 U.S.C. section 9801
et. seq., as now existing or hereafter amended ("CERCLA"), the Resource,
Conservation and Recovery Act of 1978, 42 U.S.C. Section 6901 et. seq., as
now existing or hereafter amended ("RCRA"), the Federal Hazardous
Substances Act, 15 U.S.C. section 1261 et. seq., as now existing or
hereafter amended ("FHSA"), the Occupational Safety and Health Act of 1970,
29 U.S.C. section 661 et. seq., as now existing or hereafter amended
("OSHA"), the Hazardous Materials Transportation Act, 49 U.S.C. section
1801 et. seq., as now existing or hereafter amended ("HMTA"), and the rules
and regulations now in effect or promulgated hereafter pursuant to each law
referenced above;
b. Such other substances, mixtures, materials and waste which are regulated
under applicable local, state or federal law, or which are classified as
hazardous or toxic under federal, state or local laws or regulations (all
of the foregoing collectively referred to as "Environmental Laws").
31. ENVIRONMENTAL INDEMNIFICATION: Lessee for itself and its successors and
assigns undertakes to protect, indemnify, save and defend Lessor its agents,
employees, directors, officers, shareholders, affiliates, consultants,
independent contractors, successors and assigns (collectively, the
"Indemnitees") harmless from any and all liability, loss, damage and expense,
including reasonable attorneys' fees, claims, suits and judgments that Lessor or
any other Indemnitee, whether as Lessor or otherwise, may incur as a result of:
a. The violation by Lessee or Lessee's agents, employees, invitees,
licensees or contractors of any Environmental Law, including the assertion
of any lien thereunder and any suit brought or judgment rendered regardless
of whether the action was commenced by a citizen (as authorized under the
Environmental Laws) or by a government agency but only to the extent any
such violation was the direct cause of liability to the indemnitee(s);
b. To the extent caused directly or indirectly by Lessee or Lessee's
agents, employees, invitees, licensees or contractors, any spill or
release of or the presence of any Hazardous Waste in violation of
applicable law affecting the Project whether or not the same originates or
emanates from the Project or any contiguous real estate, including any
loss of value of the Project as a result of a spill or release of or
the presence of any Hazardous Waste;
c. To the extent caused, directly or indirectly by Lessee or Lessee's
agents, employees, invitees, licensees or contractors, any other matter
affecting the Project within the jurisdiction of
Page 11 of 16 Pages.
LEASE AGREEMENT
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the United States Environmental Protection Agency, any governmental agency
of the State of Florida having jurisdiction, including costs of
investigations, remedial action, or other response costs whether such costs
are incurred by the United States Government, the State of Florida, or any
indemnitee;
d. To the extent caused, directly or indirectly by Lessee or Lessee's
agents, employees, invitees, licensees or contractors, liability for
clean-up costs, fines, damages or penalties incurred pursuant to the
provisions of any applicable Environmental Law; and
e. To the extent caused, directly or indirectly by Lessee or Lessee's
agents, employees, invitees, licensees or contractors, liability for
personal injury or property damage arising under any statutory or
common-law tort theory, including, without limitation, damages
assessed for the maintenance of a public or private nuisance, or for the
carrying of an abnormally dangerous activity, and response costs.
32. RULES AND REGULATIONS
a. Lessee will faithfully observe and comply with any Rules and Regulations
promulgated by Lessor for the Project and Lessor reserves the right to
modify and amend them as it reasonably deems necessary. Current Rules and
Regulations, if any, are attached hereto and made a part hereof as
Addendum D.
b. In the event that Lessee fails to cure any violations of such Rules and
Regulations following fifteen (15) days written notice by Lessor (of if
such cure cannot be effected in said fifteen (15) day period, if Lessee
fails to commence and diligently cure said violation), such failure to cure
shall be deemed a material breach of this Lease by Lessee.
33. FEES AND EXPENSES OF ACTIONS: If any arbitration proceeding, administrative
proceeding or any legal action, at law or in equity (an "ACTION"), is commenced,
including an Action for declaratory relief, to enforce or interpret the terms of
this Lease, or any document or instrument executed in connection with or
pursuant to this Lease, or involving any controversy or claim between or among
the parties to this Lease, whether sounding in contract, tort or
statute, whether through arbitration, process bankruptcy, receivership or
other judicial or administrative proceeding, the prevailing party in such Action
(the "PREVAILING PARTY") shall be entitled to recover reasonable attorney's
fees, paralegal's costs, expert witness and consulting expert fees and costs,
and other expenses costs and necessary disbursements incurred by such Prevailing
Party in the investigation, preparation, pursuit or defence of any claim
asserted by any party in such Action (including allocated costs for in-house
legal services), in addition to any other relief to which the Prevailing Party
may be otherwise entitled, at law or hereunder, in the amount determined by the
fact-finder(s) or arbitrator(s).
34. WAIVER: Failure to strictly and promptly enforce the terms and/or conditions
of this Lease shall not operate as a waiver of the either party's rights, both
party's expressly reserving the right to always enforce any or all of the terms
and/or conditions of this Lease, regardless or any indulgences or extensions
previously granted. The receiving by Lessor or Lessor's representative of any
rent in arrears or after notice or institution of any suit for possession,
or for cancellation of this Lessee, will not be considered as a waiver of such
notice of suit, or of any of the rights of Lessor.
35. SURVIVORSHIP: All of the provisions hereof shall bind and to inure to the
benefit of parties hereto their respective heirs, legal representatives,
successor, and assigns. If more than one person firm, corporation, or other
entity is executing, this Lease as Lessee, then all of said entities shall be
jointly and severally liable thereunder.
36. SECTION CAPTIONS: The captions appearing under the section numbers
designations of this Lease are for convenience only and are not a part of
this Lease and do not in any way limit or amplify the terms and provisions of
this Lease.
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37. LEASE EXECUTION: If Leasee shall be a corporation, the authorized officers
must sign on behalf of the corporation. The Lease must be executed by the
president, vice-president, secretary or assistant secretary, unless the by-laws
or a resolution of the board of directors shall otherwise provide, in which
event, the by-laws or a certified copy of the resolution, as the case may be,
must be furnished.
38. COUNTERPARTS: This Lease may be executed in any number of counterparts, each
of which when so executed and delivered shall be an original, but such
counterparts shall be construed together and shall constitute one instrument.
This Lease shall be binding when one or more counterparts hereof, individually
or taken together, shall bear the signatures of the parties reflected hereon as
signatories.
39. EXECUTION AND DELIVERY BY FACSIMILE TRANSMISSION: If this Lease or any
document executed in connection with the Lease is delivered by facsimile or
similar instanteneous electronic transmission device pursuant to which the
signature of or on behalf of such party can be seen (a "fax"), such execution
and delivery shall be considered valid, binding and effective for all purposes
as an original document. Additionally, the signature of any party on this
document transmitted by way of a facsimile machine shall be considered for all
purposes as an original signature. Any such faxed document shall be considered
to have the same binding legal effect as an original document. At the request of
any party, any faxed document shall be re-executed by each signatory party in an
original form.
40. EXECUTION OF OTHER DOCUMENTS; FURTHER ACTION: Each party shall, on demand,
execute or obtain such other documents or instruments and corrective filings or
instruments and use all commercially reasonable efforts to do or cause such
other things as may be reasonably necessary or desirable to effect the
provisions and purposes of this Lease.
41. ENTIRE AGREEMENT: This Lease, together with any schedules and other
documents to which it refers, supersedes any and all other agreements, either
oral or in writing, between or among the parties hereto with respect to the
subject matter hereof and contains all of the covenants and agreements between
the parties with respect to said matter. Each party to this Lease acknowledges
that no representations, inducements, promises or agreement, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party,
which are not invited herein and that no other agreement, statement or promise
not contained in this Lease shall be valid or binding.
42. AMENDMENT: This Lease shall not be amended, modified, superseded or
cancelled unless in writing and signed by the parties referring to this Lease
and demonstrating intent to so amend, modify, supersede or cancel it.
43. FORCE MAJEURE: To the extent that a party's performance is prevented or
delayed, either totally or in part, for reasons beyond that party's control,
then that party will not be liable, so long as such party resumes performance as
soon as is practicable after the reason preventing performance no longer exists.
The financial condition of Lessor or Lessee shall not be considered a condition
beyond control of the applicable party.
44. GENDER AND NUMBER: Unless otherwise required by context, the genders shall
include each other and the singular shall include the plural and the plural the
singular.
45. SCHEDULES, ADDENDA, EXHIBITS AND ATTACHMENTS: All schedules, addenda,
exhibits and attachments and other documents or items identified as being
attached hereto (the "Attachments") shall be a part of this Lease for all
purposes. Attachments may be changed from time to time as the parties may agree.
When Attachments are changed, they shall be redrafted in accordance with agreed
changes, dated as of the effective date of such change and signed by the
parties. Copies of changed Attachments shall be furnished to each party and such
changed Attachments shall become a part of this Lease for all purposes. An
Attachment, which has been changed, shall cease to be a part of this Lease, and
the most recently dated Attachment signed by all parties, shall govern.
46. APPLICABLE LAW. This Lease shall be governed by and construed in accordance
with the internal laws of the State of Florida without regard to the conflict of
laws of such State. Venue for any action brought in connection with this Lease,
including any action against any Guarantor in the event of
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Lessee's default, shall be brought in the appropriate state court in and for
Pinellas County, Florida, and the Lessee and any Guarantors hereby submit to the
jurisdiction of said courts.
47. RADON. Radon gas is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present health risks to
persons who are exposed to it over time. Levels of Radon that exceed State and
Federal guidelines have been found in buildings in Florida. Additional
Information regarding radon and radon testing may be obtained from your county
public health unit.
In Witness Whereof, the parties hereto have executed this instrument for the
purpose herein expressed, the day and year above written.
WITNESSES: LESSOR:
/s/ Xxxxxx Xxx WILEY PROPERTIES, INC.
-------------------------------------
Printed Name: Xxxxxx Xxx
/s/ Xxxxx Xxxxxx By: /s/ Xxxxxx X Xxxxx
------------------------------------- ------------------------------------
Printed Name: Xxxxx Xxxxxx Printed Name: Xxxxxx X Xxxxx
Its: Pres.
LESSEE:
------------------------------------- HADCO METAL TRADING CO., LLC
Printed Name: _______________________
/s/ Xxxxxx Xxxxxxxx By: /s/ Glad Xxxxxxx
------------------------------------- ------------------------------------
Printed Name: XXXXXX XXXXXXXX Printed Name: Glad Xxxxxxx
Its: CEO
Page 14 of 18 Pages.
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ADDENDUM A
SITE PLAN SKETCH
[GRAPHIC OMITTED]
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ADDENDUM B
RENT ADJUSTMENT RIDER
This is a Rent Adjustment Rider to that certain Lease having a Commencement Date
of March 15, 2007, (the "LEASE") between Wiley Properties, Inc. ("LESSOR") and
Hadco Metal Trading Co., LLC ("LESSEE").
All words and phrases used herein shall have the same meaning and context and
shall be given the same Interpretation as such words and phrases are used. In
the Lease and all Defined Terms and Definitions set forth therein shall apply to
such words and phrases when used herein.
RENT ADJUSTMENT. The Base Monthly Rent shall be adjusted annually, on each
anniversary of the Lease Commencement Date (the "ADJUSTMENT DATE"), to reflect
increases in the Consumer Price index for "All Urban Consumers, U.S. City
Average, All items," issued by the Bureau of Labor Statistics of the United
States Department of Labor (the "INDEX"), unless a comparable index issued by
the Bureau of Labor Statistics of the United States Department of Labor is
available for Pinellas County, Florida (the "COUNTY INDEX"), in which event, the
Pinellas index shall be used.
a. The adjustments in the Base Monthly Rent shall be determined by multiplying
the Rent specified in the Lease (without respect to any sums deemed
additional rent) ("INITIAL BASE RENT") by a fraction, the numerator of
which is the most recently published index available one month prior to the
adjustment (the "CURRENT INDEX") and the denominator of which is the index
number for the first month of the first year of the Initial Term (the "BASE
INDEX"). If the producet is greater than the Initial Base Rent Leases shall
pay this greater amount as Rent from the Adjustment Date until the next
rental adjustment. Rent shall never be less than the Initial Base Rent.
x. Xxxxxx shall notify Lessee of each adjustment to Rent no later than thirty
(30) days after the Adjustment Date. Any increased Rent due as a result of
such adjustment, which has accrued prior to such notification, shall be due
on the next regularly scheduled Rent payment date.
If the United States Department of Labor cease to publish such index for
whatever reason, then the parties will use the most comparable index for
measuring the periodic increases in costs of consumer goods. If the parties
cannot agree as to a comparable index, the parties shall submit the issue to the
accounting firm of Ernst & Young, LLP, whose decision with respect to such issue
shall be final and binding upon the parties and whose costs charged in
connection with making such determination shall become equally by the parties
hereto. Any adjustment resulting from the decision of Ernst & Young shall acorue
as of the applicable Adjustment Date.
/s/ GF
------------------------------ -------------------------
(Lessor's Initials) (Lessee's Initials)
Page 16 of 16 Pages