LEASE AMENDMENT
This Lease Amendment, made and entered into this 29th day of January,
1998, by and between XXXXX X. XXXXX and XXXXX X. XXXXX, whose address is 0000
Xxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxx 00000, hereafter referred to as the ("LESSOR,")
and AMERICAN QUANTUM CYCLES, INC., whose address is 000 Xxxxxxxx Xxxx,
Xxxxxxxxx, Xxxxxxx 00000, hereafter referred to as the ("LESSEE").
W I T N E S S E T H
That for and in consideration of the covenants and agreements herein
contained and in consideration of the rents herein reserved to be paid by the
Lessee to the Lessor, the parties do hereby mutually covenant and agree as
follows:
1. This Lease Amendment is an amendment to the lease signed by the
Lessee and the Lessor on May 1, 1997.
2. Premises. Lessor does hereby lease and demise unto Lessee the
premises known as 000-000 Xxxxxxxx Xxxx, Xxxxxxxxx, Xxxxxxx, which include
warehouses with square footage of approximately 22,000 square feet and
offices/restrooms/showroom square footage of approximately 6,500 square feet.
3. Term and Occupancy. Said premises shall hereafter sometimes be
referred to as the "Leased premises" or "Premises". Lessor does hereby lease and
demise unto Lessee said premises to have and to hold the same for a period of
four (4) years. Said term shall commence on March 1, 1998, and terminate at
midnight on February 28, 2002: The Lessee has the option of terminating the
lease after the first full two (2) years of occupancy provided the Lessee gives
the Lessor written notice six (6) months prior to the termination of said lease
and vacancy of said premises. The occupancy may commence with partial occupancy
of space not occupied by the Lessee on or before January 1, 1998 the said
additional space will be available as follows: The 2,500 square feet on the
second level of the warehouse (known as the show room) is available as of
January 1, 1998 at the monthly rate of $300.00. The portion of the warehouse
(known as the middle warehouse) consisting of 6,250 square feet will be
available no later than February 1, 1998 at the rate of 1,825.00 per month. The
remaining warehouse (known as the rear warehouse) is available no later than
March 1, 1998. The effective date of this lease amendment for payment and
accrual of rent is March 1, 1998.
4. Rental. Lessee hereby covenants and agrees to pay Lessor as rental
for the demised premises the following amounts plus Florida sales tax, per
month: an amount equal to the monthly mortgage payment due to the Huntington
Bank for 000 Xxxxxxxx Xxxx, Plus tax. This payment is based on a variable rate
mortgage. The
January 1998 amount was $ 4,286.81. The interest on the loan decreases resulting
in payments reducing to approximately $3,400.00 per month in four (4) years. See
Attached Exhibit " A" I of 2 .
An amount equal to the monthly mortgage payment due to the mortgage
holder for 000 Xxxxxxxx Xxxx, Plus tax. This payment is currently fixed at
$1,526.35 per month. This amount will change to a variable rate interest
mortgage in 1999, resulting in slightly varying monthly amounts. See attached
Exhibit "A" 2 of 2.
5. Lessee covenants and agrees to purchase property insurance for said
premises naming the Lessor the payee and additionally insured for any claims for
damages. Said insurance policy shall be reviewed and accepted by the Lessor
before March 1, 1998 and remain in effect during the term of this Agreement. The
value for the building located at 000 Xxxxxxxx Xxxx is $750,000 and for 000
Xxxxxxxx Xxxx $210,000.
6. Lessee covenants and agrees to pay the real estate taxes on said
premises on an annual basis on or before December 31st of each year starting
with March 12, 1998. The 1997 taxes were $7,096.00 for 000 Xxxxxxxx Xxxx and
$2,670.00 for 000 Xxxxxxxx Xxxx. See attached Exhibit "B" and "C."
7. Lessee covenants and agrees to pay Lessor an additional security
deposit over and above the security deposit paid at the time of the original
lease dated May 1, 1997, of $5,000 on March 1, 1998.
8. Lessee covenants and agrees to pay to Lessor an additional last
month rent deposit over and above the last months rent deposit paid at time of
the original lease dated May 1, 1997 of $2,000 dollars on March 1, 1998.
9. Lessee covenants and agrees to assume responsibility for any cost
associated with the general maintenance and repairs to the said premises
exterior and interior, and mechanical, all such repairs and General maintenance
shall be done in a timely manner and return the premises to an equal or better
condition than at the time of the commencement of this Agreement.
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10. Lessee and Lessor will conduct an inspection of said premises no
later than February 27, 1998. The Lessor will provide documents listing items to
be inspected.
LESSOR: LESSEE:
AMERICAN QUANTUM CYCLES, INC.
____________________________ By: ________________________________
Xxxxx X. Xxxxx Xxxxxx X. Guess
____________________________
Xxxxx X. Xxxxx
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