LEASE-BUSINESS PROPERTY-SHORT TERM
Exhibit 10.15
LEASE-BUSINESS PROPERTY-SHORT TERM
THIS AGREEMENT, made and entered into this 14th day of December, 2005, by and
between Xxxxxx Rental (“Landlord”), whose address, for the purpose of this lease, is 0000 Xxxxx
Xxxxxx Xxxx, Xxxx X, Xxxxxx, Xxxx 00000; and Central Iowa Energy, LLC (CIE), 0000 0xx
Xxxxxx Xxxx, Xxxxx 0, Xxxxxx, Xxxx 00000 (“Tenant”).
The parties agree as follows:
1. PREMISES AND TERM. Landlord leases to Tenant the following real estate, situated in
Jasper County, Iowa:
Suite 1 and 2 of Xxxxxx True Value Plaza, approximately 2,800 square feet,
0000 Xxxxx Xxxxxx Xxxx, Xxxxxx, Xxxx 00000
0000 Xxxxx Xxxxxx Xxxx, Xxxxxx, Xxxx 00000
together with all improvements thereon, and all rights and easements, for a term beginning on the
1st day of August, 2005, and ending on the date CIE’s offices are constructed or sooner
is required by CIE.
2. RENT. Tenant agrees to pay Landlord as rent, two membership units in CIE per month during
the term of this lease. Rent for any partial month shall be prorated as additional rent. Tenant
shall, if not in default, have the option to lease premise for up to 18 months under this lease
agreement.
All sums shall be paid at the address of Landlord, or at such other places as Landlord may
designate in writing. Payment will be made once CIE terminates this lease. Payment will be in the
form of CIE membership units. Only at the time the lease
is terminated
3. POSSESION. Tenant shall be entitled to possession on the 1st day of August,
2005, and shall yield possession to Landlord at the termination of this lease.
4. USE. Tenant shall use the premises only for an office.
5. CARE AND MAINTENANCE.
(a) Tenant takes the premises as is.
(a) Tenant takes the premises as is.
(b) Tenant shall maintain the interior plumbing, sewer, electrical, and ventilation systems,
and keep all in good working order. Tenant shall be responsible for normal ongoing maintenance,
changing of filters, and routine servicing of the heating, cooling and ventilation systems. Tenant
shall maintain the interior of the property, including walls, ceiling, and floors, in good
condition.
(c) Landlord shall keep the following in good repair: roof, exterior walls, foundation,
exterior sewer, exterior plumbing, major HVAC component replacement, parking area, driveways,
sidewalks, and exterior decorating.
(d) Tenant shall be responsible for repair or replacement of HVAC up to $500.00 per
occurrence, maintain the premises in a reasonable safe, serviceable, clean and presentable
condition and, except for the repairs and replacements provided to be made by Landlord in
subparagraph (c) above, shall make all repairs, replacements and improvements to the premises,
INCLUDING ALL CHANGES, ALTERATIONS OR ADDTIONS ORDERED BY ANY LAWFULLY CONSTITUTED GOVERNMENT
AUTHORITY DIRECTLY RELATED TO TENANT’S USE OF THE PREMISES. Tenant shall make no structural
changes or alterations without the prior written consent of Landlord. All changes must meet ADA
requirements. Unless otherwise provided, tenant agrees to remove all snow and ice and other
obstructions from the sidewalk on or abutting the premises.
6. UTILITIES AND SERVICES. Tenant shall pay for all utilities and services which may be used
on the premises.
Landlord shall not be liable for damages for failure to perform as herein provided, or for any
stoppage for needed repairs or for improvements or arising from causes beyond the control of
Landlord, provided Landlord uses reasonable diligence to resume such services.
7. SIGNS. Tenant agrees to install a sign on front of premise to identify business.
8. SURRENDER. Upon the termination of this lease, Tenant will surrender the premises to
Landlord in good and clean condition, except for ordinary wear and tear or damage without fault or
liability of Tenant.
9. ASSIGNMENT AND SUBLETTING. No assignment or subletting, either voluntary or by operation
of law, shall be effective without the prior written consent of Landlord, which consent shall not
unreasonably be withheld.
10. INSURANCE.
A. PROPERTY INSURANCE. Landlord and Tenant agree to insure their respective real and
personal property for the full insurable value. Such insurance shall cover losses included in the
insurance Services Office Broad Form Causes of Loss (formally fire and extended coverage). To the
extent permitted by their policies, the Landlord and Tenant waive all rights of recovery against
each other.
B. LIABLITY INSURANCE. Tenant shall obtain commercial general liability insurance in the
amounts of $1,000,000.00 each occurrence and $ 1,000,000.00 annual aggregate per location. This
policy shall be endorsed to include the Landlord as an additional insured.
C. CERTIFICATE. Tenant to provide certificate of insurance upon possession, and annually
thereafter.
11. LIABLITY FOR DAMAGE. Each party shall be liable to the other for all damages to the
property of the other negligently, recklessly or intentionally caused by that party (or their
agents, employees or invitees), except to the extent the loss is insured and subrogation is waived
under the owner’s policy.
12. INDEMNITY. Except for any negligence of Landlord, Tenant will protect, defend, and
indemnify Landlord from and against and all loss, costs, damage and expenses occasioned by, or
arising out of, any accident or other occurrence causing or inflicting injury or damage to any
person or property, happening or done in, upon or about the premises, or due directly or indirectly
to the tenancy, use or occupancy thereof, or any part thereof by Tenant or any person claiming
through or under Tenant.
13. DAMAGE. In the event of damage to the premises, so that Tenant is unable to conduct
business on the premises, this lease may be terminated at the option of either party. Such
termination shall be effected by notice of one party to the other within thirty days after such
notice; and both parties shall thereafter be released from all future obligations hereunder.
14. MECHANIC’S LIENS. Neither Tenant, nor anyone claiming by, through, or under Tenant,
shall have the right to file any mechanic’s lien against the premises. Tenant shall give notice in
advance to all contractors and subcontractors who may furnish, or agree to furnish, any material,
service or labor for any improvement on the premises.
15. DEFAULT, NOTICE OR DEFAULT AND REMEDIES.
EVENTS OF DEFAULT
A. Each of the following shall constitute an event of default by Tenant: (1) Failure to pay
rent when due; (2) failure to observe or perform any duties, obligations, agreements, or conditions
imposed on Tenant pursuant to the terms of the lease; (3) abandonment of the premises.
“Abandonment” means the Tenant has failed to engage in its usual and customary business activities
on the premises for more than fifteen (15) consecutive business days; (4) institution of voluntary
bankruptcy proceedings by Tenant; institution of involuntary bankruptcy proceedings in which the
Tenant thereafter is adjudged a bankruptcy; assignment for the benefit of creditors of the
interest of Tenant under this lease agreement; appointment of a receiver for the property of
affairs of Tenant, where the receivership is not vacated within ten (10) days after the
appointment of the receiver; (5) imposition of a lien of any type on the premises will constitute
a default.
NOTICE OF DEFAULT
B. Landlord shall give Tenant a written notice specifying the default and giving the Tenant
ten days in which to correct the default. If there is a default (other than for nonpayment of a
monetary obligation of Tenant, including rent) that cannot be remedied in ten (10) days by diligent
efforts of the Tenant, Tenant shall propose an additional period of time in which to remedy the
default. Consent to additional time shall not be unreasonably withheld by Landlord. Landlord
shall not be required to give Tenant any more than three notices for the same default within any
365 day period.
REMEDIES
C. In the event Tenant has not remedied a default in a timely manner following a Notice of
Default, Landlord may proceed with all available remedies at law or in equity, including but not
limited to the following: (1) Termination. Landlord may declare this lease to be terminated and
shall give Tenant a written notice of such termination. In the event of termination of this lease,
Landlord shall be entitled to prove claim for and obtain judgment against Tenant for the balance of
the rent agreed to be paid for the term herein provided, plus all expenses of Landlord in regaining
possession of the premises and the reletting thereof, including attorney’s fees and court costs,
crediting against such claim, however, any amount obtained by reason of such reletting; (2)
Forfeiture. If a default is not remedied in a timely manner, Landlord may then declare this lease
to be forfeited and shall give Tenant a written notice of such forfeiture, and may, at the time,
give Tenant the notice to quit provided for in Chapter 648 the code of Iowa.
16. NOTICES AND DEMANDS. All notices shall be given to the partied hereto at the addresses
designated unless either party notifies the other, in writing, of a different address. Without
prejudice to any other method of notifying a party in writing or making a demand or other
communication, such notice shall be considered given under the terms of this lease when it is
deposited in the U.S. Mail, registered or certified, properly addressed, return receipt requested,
and postage prepaid.
17. PROVISIONS BINDING. Each and every covenant and agreement herein contained shall extend
to and be binding upon the respective successors, heirs, administrators, executers and assigns of
the parties hereto.
18. ADDITIONAL PROVISIONS.
A. Tenant agrees to pay for all improvements to the premises.
B. ENVIRONMENTAL MATTERS. Tenant shall comply at all times during the term of this Lease
with all applicable federal, state, and local laws, ordinances, regulations or policies relating to
environmental protection and public health and safety “Environmental Regulations”. Tenant shall
indemnify Landlord against and hold Landlord harmless from any and all claims, penalties, fines,
liabilities, settlements, damages, or expenses of whatever kind or nature (including but not
limited to attorney fees, fees of environmental consultants, and laboratory fees,) known or
unknown, contingent or otherwise, arising out of or in any way related to the presence, release,
threatened release, or disposal of any hazardous substance (as defined in any Environmental
Regulation) in, upon or from the premises or arising out of or in any way related to the violation
by Tenant or the Premises of any Environmental Regulation during the term of this Lease and any
other period of Tenant’s occupancy of the Premises. The obligations of Tenant under this paragraph
shall survive the termination of this Lease and Tenant’s occupancy of the Premises.
C. SUBORDINATION. Landlord may assign its rights under this Lease to the holder of one or
more mortgages (which term shall include a mortgage, deed of trust, or other encumbrance) now or
hereafter in force against the Premises or the Shopping Center. Upon the request of Landlord ,
Tenant agrees to subordinate its rights under this Lease to the lien of one or more mortgages
(which term shall include a mortgage, deed of trust, or other encumbrance) now or hereafter in
force against the Premises or Shopping Center and to all advances made or hereafter to be made upon
the security thereof. Tenant shall provide a customary form of estoppels affidavit or certificate
to the lender, prospective lender, or prospective purchaser upon Landlord’s request. In the event
of a sale or transfer of all or any portion of the Shopping Center, the transferor thereafter shall
be entirely relieved of all obligations to be performed by Landlord under this lease to the extent
of the interest in or portion of the Shopping Center so sold or transferred.
D. LANLORD’S RIGHT TO CURE. Landlord may, but shall not be obligated to, cure any default
by Tenant in the performance of any of Tenant’s obligations under this Lease, including but not
limited to Tenant’s failure to pay any taxes, obtain any insurance, make any repairs, or satisfy
any lien claims; in the event that Landlord elects to so cure any default by Tenant, then all costs
and expenses paid immediately after such payment by Landlord, together with interest thereon
(except in the case of such attorneys’ fees) at 18% per annum from the date of such payment by
Landlord to the date of repayment by Tenant to Landlord.
E. NO PERSONAL LIABILITY. Notwithstanding any other provision of this Lease, Tenant agrees
that it will look solely to the equity, estate, and property of Landlord in the land and buildings
comprising the Shopping Center (subject to prior rights of the holder of any mortgage or deed of
trust thereon) for the collection of any judgment requiring the payment of money by Landlord; and
Tenant understands and agrees that no other assets of Landlord shall be subject to levy, execution
or other process for the satisfaction of any such judgment or for the enforcement of any rights of
remedies of Tenant.
F. MISCELLANEOUS. One or more waivers by Landlord or Tenant of a breach of any covenant or
condition by the other of them shall not be construed as a waiver of a subsequent breach of the
same covenant or condition, and the consent or approval by Landlord or Tenant to or of any act by
either requiring the other’s consent or approval shall not be deemed to waive or render unnecessary
either party’s consent to or approval of any subsequent similar act by the other party. Each
and every covenant and agreement therein contained shall extend to and be binding upon the
respective successors, heir, administrators, executers, and assigns of the partied hereto. The
rights, options, elections, and remedies of Landlord and Tenant contained in this Lease shall be
cumulative and may be exercised on one or more occasions; and none of them shall be construed as
excluding any other or additional right, priority, or remedy allowed or provided by law. If any
provision of this Lease shall be declared legally invalid or unenforceable, then the remaining
provisions of this Lease nerveless shall continue in full force and effect and shall be enforceable
to the fullest extent permitted by law.
19. ENTIRE AGREEMENT.
This Lease constitutes the entire agreement between Landlord and Tenant relative to the
Premises. There are no promises, agreement, understandings, inducements, warranties or
representations, oral or written, other than as set forth in the Lease. No broker was involved
with this Lease, and no brokerage commission is payable regarding this Lease. This Lease may be
modified or amended only by a written document duly executed by both parties.
| LANDLORD: | TENANT: | |||||||||
| Xxxxxx Rental | Central Iowa Energy, LLC. | |||||||||
| An Iowa Partnership | An Iowa Corporation | |||||||||
By:
|
/s/ Xxxxxxx X. Xxxxxx | By: | /s/ Xxxxx Xxxxxxxx | |||||||
| Xxxxxxx Xxxx Xxxxxx, Partner | Xxx Xxxxxxxx, Chairman | |||||||||
Date:
|
Dec 14, 2005 | Date: | 12-14-05 | |||||||
