TENANT LEASE
This Lease entered into the 16th day of March, 1998, between Xxxxxxx X.
Xxxxxxxxx, Lessor, and Value America, Inc., Lessee. Lessee agrees to pay a
prorated portion of rent, amounting to $34.38 per day from date of move in to
end of March.
That the Lessor does hereby rent and demise unto the Lessee the following
premises to-wit 0000 Xxxxxxxxxxxx Xxxxx, Xxxxxx 000 and 103 approximately 1125
square feet, and Suite B-1 approximately 1125 square feet including common area,
Xxxxxxxxxxxxxxx, Xxxxxxxx 00000 (hereinafter referred to as the "Premises").
1. The term of the Lease shall be for one (1) year commencing on March 16,
1998 and terminating on March 16, 1999, unless notice by Lessor or Lessee within
sixty (60) days prior to the expiration of the Lease agreement shall notify the
other party of its intention to renew the Lease as hereinafter provided.
The Lessee shall notify the Lessor in writing, sixty (60) days prior to the
expiration of this Lease or any renewal thereof, of its intention to renew this
Lease, which renewal shall be on terms and conditions which shall be
substantially similar to those stated herein and provided further, that the rent
shall not exceed the rent for the preceding year by more than ten percent (10%)
and that any renewal term shall not be less than one (1) year not more than
three (3) years, at the option of the Lessee.
1. Rent is to be paid by the Lessee to the Lessor as follows:
(A) Base Rent;
(1) The rent for the first year of this Lease shall be twenty four
thousand seven hundred fifty dollars and no cent, ($24,750.00) payable in
monthly installments. The first installment of two thousand sixty two dollars
and fifty cents, ($2,062.50) payable on the first day of the term as set forth
herein and each succeeding installment of two thousand sixty-two dollars and
fifty cents, due on the first day of each calendar month thereafter. Rent
includes electric utilities
(B) Late Charges: The Lessee agrees that payments not received by the
Lessor in a timely fashion in accordance with subparagraph 2a shall be subject
to the following Late Charges.
Day of Month
1st to 5th No Penalty
6th to 10th $50.00
11th to 15th $75.00
16th Default
(c)Contemporaneously with the execution of this agreement, Lessee will
deposit with Lessor a security deposit in the amount of two thousand sixty two
dollars and fifty cent, ($2,062.50).
(D) The Lessor may reenter for default of fifteen days in the payment of
any installment of rent, or for the breach of any material covenant herein
contained.
3. The Lessor covenants that he will, in a timely fashion and all at his
sole cost and expense, make such structural repairs as may be required by
natural wear and tear during the period of this Lease, and keep the plumbing,
heating, air conditioning, and electrical systems in proper working condition
and that he will maintain the exterior of the Premises.
4. The Lessee will be responsible for upkeep and repairs to the interior of
the Premises, and may make such alterations therein as he deems necessary at
his own expense. Any shelving, fixture and other personal property which Lessee
installs at his own expense may be removed by him at the termination of this
Lease; however, Lessee agrees to pay Lessor for any damages occasioned by such
removal.
5. The Lessor agrees to furnish at its own expense water, required on the
Premises.
6. Lessor shall pay all real estate taxes assessed against said property.
7. In the event of destruction or damage to the Premises, by fire or
otherwise, rendering same unfit for the carrying on of Lessee's business, the
rent shall xxxxx until said destruction or damage is repaired, provided,
however, if said repairs are not completed within one hundred twenty (120) days
after such destruction or damage, the Lessee at its option may terminate the
Lease. Nothing herein, however, shall be construed as requiring Lessor to
rebuild or to repair.
8. The Premises may be sublet or assigned only upon written notice to the
Lessor, provided however, that the Lessor shall have the right to reject any
sublease or assignee where the Lessor can demonstrate said sublessee's or
assignee's inability to assume the obligations of this Lease.
9. Lessee agrees to surrender the Premises in as good a condition as they
are at the beginning of the period of this Lease, reasonable wear and tear
excepted.
10. The said Lessee also covenants and agrees that the Lessor may show the
Premises to prospective purchasers or renters at any time upon reasonable
notice, and that it may placard the aforementioned property "FOR SALE" and/or
"FOR RENT" in one or more conspicuous places at any time, but only after notice
shall have been given by the Lessee of its intention not to renew the Lease.
11. Lessor shall carry fire and extended coverage insurance on the
buildings and improvements on the Premises, with a provision that said policy
may not be canceled until after thirty (30) days written notice to the Lessee,
and that it will cause its insurer to furnish the Lessee a certificate to that
effect.
12. Notices. Official notices or communications given or required under
this Lease shall be in writing and shall be deemed given when deposited in the
United States mail postage prepaid and addressed as follows:
If to the Lessor: If to the Lessee:
Xxxxxxx X. Xxxxxxxxx Value America, Inc.
X.X. Xxx 0000 0000 Xxxxxxxxxxxx Xxxxx
Xxxxxxxxxxxxxxx, XX 00000 Xxxxxxxxxxxxxxx, XX 00000
13. This Lease is entered into and shall be construed under the laws of the
State of Virginia.
14. The Lessor, including its executors, administrators, heirs, successors
and assigns, agrees that the Lessee, upon paying the rental herein reserved and
upon the performance of the covenants and agreements herein provided, shall
peaceably and quietly hold and enjoy the demised Premises for and during the
entire term of this Lease, including any extension(s) thereof.
WITNESS THE FOLLOWING SIGNATURES:
Value America, Inc. /s/Xxxx X. Xxxxxxx Witness: /s/Xxx Xxxxxxx
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Xxxxxxx Xxxxxxxxx: /s/Xxxxxxx Xxxxxxxxx/CDS Witness:
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The Lessor may raise the rent by four percent (4%) for a renewal beginning
March 16, 1999.
