EXHIBIT 10.25
LEASE AGREEMENT
THIS LEASE is made and entered into by and between TOWNSQUARE L.L.C., a
Missouri Limited Liability Corporation (hereafter "Lessors") and Infinite
Graphics, Incorporated, a Minnesota Corporation (hereafter "Lessee").
WITNESSETH:
Lessors hereby lease unto Lessee, and Lessee leases from Lessors a
portion of building located in Townsquare Hallsville, 000 Xx. X., Xxxxxxxxxx,
Xxxxxxxx, 00000, containing approximately 1335 square feet of the southwest wing
(hereafter "the premises") along with shared use of restrooms, coffee area and
waiting room of Xxxxxxxxxx Xxxxxx Xxxxxx xx 000 Xx. X, together with adjacent
parking stalls for two automobiles, under the following terms and conditions.
1. Term. The term of this lease shall be for thirty-eight months
commencing on December 1, 1998 and continuing through January 31, 2001. Such
lease shall automatically renew for three (3) successive one (1) year terms;
provided, however, Lessee may terminate this lease without liability or cause,
at the end of any lease term by giving not less than sixty (60) days prior
written notice of it's intent to terminate.
2. Rent. Lessee agrees to pay to lessors as rent for the premises the
sum of Twenty-Seven Hundred Dollars per month, payable in advance on the first
day of each month throughout the term of this lease with exception to the
initial 60 days of this lease which will be charged at a rate of Eight Hundred
Ninety Dollars per month for construction purposes unless lessor finishes
construction early at which time the full lease amount of $2,700.00 per month
will commence. One year renewal terms shall be charged as follows: Immediate
successive year (1st) $1,420.00 per month. Second successive year $1,485.00 per
month. Third successive year $1,550.00 per month.
Build Out. Lessee is entering into this lease on the condition that the
premises are built out under the terms and conditions set forth under the
Construction Agreement, a copy of which is attached as Exhibit A. Should Lessor
fail to complete the construction within sixty (60) days of the commencement of
this lease, Lessee shall have the right to make no further payment to Lessor
until the construction is completed per the Construction Agreement.
Build Out Change Order. All change orders shall be approved by both
Lessee and Lessor before the change order work is begun. Costs of change orders
shall be added to the monthly lease cost by amortizing over thirty-six (36) at
an interest rate of ten (10) percent.
3. Quiet Enjoyment. Lessors covenant that on paying rent and performing
the covenants herein, the Lessee shall peacefully hold and enjoy the premises
for the purposes of conducting Lessee's service bureau/plotting and printing
business. Lessor understands that the lease premises must be vibration-free in
order for the Lessee to conduct its business. Acceptable
levels of vibration are more specifically set forth in Exhibit B, attached
hereto. Should Lessor fail to maintain the premises at an acceptable level of
vibration as identified in Exhibit B, Lessee must notify Lessor in writing of
excessive vibration from which time Lessor shall have 15 days to correct the
excessive vibration problem. Should the problem remain, Lessee shall have the
right to terminate this lease upon thirty (30) days written notice to Lessor.
4. Use of Premises. Lessee shall exclusively use the premises for the
purpose of operating a service bureau/plotting & printing business and other
related business operations without the written consent of the Lessor.
5. Alterations and Improvements. Lessee may make no alterations or
improvements to the premises without written consent of the Lessors. Any such
improvements, unless otherwise provided by written agreement between the
parties, shall be the property of Lessors and remain on the premises at the
termination of this lease.
6. Damage to Property. If the premises leased by the Lessor shall be
partially damaged by fire or other casualty the damage shall, at Lessors option,
be promptly repaired or replaced. Such option must be exercised in writing,
within ten (10) days. If the Lessor does elect to repair and replace the damaged
property, Lessor shall be obligated to complete such repairs within one hundred
twenty (120) days of the damage. Failure to complete repairs within the 120 days
shall give Lessee the right to terminate this lease. There shall be an abatement
of rent corresponding with the time during which, and to the extent which, the
portion of the premises leased by Lessee may have been untenantable. If the
damage be such that Lessors elect not to repair or replace, the term of this
lease shall end and any rentals due hereunder shall be prorated up to the time
of damage.
7. Maintenance and Repair. Lessee shall at Lessee's expense, keep and
maintain the premises in a clean and sanitary condition. Lessee shall be
responsible for maintaining extra "build-out" items including central vacuum and
extra HVAC and exhaust system. Lessors shall at Lessors expense otherwise
maintain the exterior of the premises and all common facilities located at 000
Xxxxx B.
8. Utilities. Lessee shall be responsible for payment of any utility
costs necessitated by its occupancy of the premises. Lessor will provide and pay
for water, sewage and trash pick-up. Lessor covenants that it shall install
electrical requirements per Exhibit A. Lessor shall be required to dispose of
all trash, with exception to hazardous wastes, in conformance with all local
ordinances, state and federal rules and regulations.
9. Assignment and Subletting. Without the prior written consent of
Lessors, Lessee shall not assign this lease or sublet or grant any concession or
license to use the premises or any part thereof. Any assignment, subletting,
concession or license without the prior written consent of Lessors, or an
assignment or subletting by operation of law, shall be void and, at Lessors
option, shall terminate this lease.
10. Right to Inspect. Lessors shall have the right to enter premises
for inspection purposes at reasonable times and after reasonable notice to
Lessee.
11. Default. If any default is made in the payment of rent or any part
thereof, or if any default is made in the performance of or compliance with any
other term or condition of this lease, at the option of Lessors, this lease may
be terminated and forfeited and Lessors, in addition to any other remedies
available under this lease or law, may re-enter the premises and remove all
persons and property therefrom.
12. Persons Bound and Choice of Law. All of the provisions of this
lease shall extend to and inure to the benefit of and be binding on the parties
hereto, their heirs, successors, personal representatives and assigns. This
lease is made under and governed by the laws of the State of Missouri.
13. Notices. Any notices to be provided herein shall be delivered by
personal service or by U.S. Mail, first class prepaid, addressed as follows:
If to Lessors:
Townsquare Hallsville Manager
000 Xxxxx X Xxx
Xxxxxxxxxx, Xxxxxxxx 00000
If to Lessee:
Xxx Xxxxxx
Infinite Graphics, Incorporated
0000 Xxxx Xxxx Xxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
or to such other addresses as the parties may designate in writing from time to
time.
IN WITNESS WHEREOF, the parties have executed this lease by their duly
authorized representatives as of the dates below their respective signatures.
INFINITE GRAPHICS, INC.
/S/ Xxxxxxxx X. Xxxxxxx
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Signature
11/23/98
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Date
TOWNSQUARE L.L.C.
/S/ Xxxx X. [last name not decipherable]
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Signature
President
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Title
11/23/98
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Date
