EXHIBIT 10-a-11
LEASE
This Lease Agreement made as of the 28th day of July,
1995, by and between TRI-R Corporation, an Illinois
corporation, with its principal offices at 0000 Xxxxx 00,
Xxxxx X, Xxxxxxxxx, Xxxxxxxx 00000 (hereinafter referred to
as "Landlord") and A.H.C. STORE DEVELOPMENT CORP., an
Illinois corporation, with its principal offices at 0000
Xxxxxxxxxx Xxxxx, Xxx Xxxxx, Xxxxxxxx 00000 (hereinafter
referred to as "Tenant").
WITNESSETH:
Whereas, Landlord is the owner of a certain parcel of real
estate located at 0000 Xxxxx 00, Xxxxxxxxx, Xxxxxxx Xxxxxx,
Xxxxxxxx, more particularly described on Exhibit A attached
hereto, which includes a two story, 15,700 square foot
commercial building (the "Premises").
Whereas, Landlord desires to lease to Tenant or its
permitted assignee the retail store consisting of 12,500
square feet located on the first floor of the Premises, and
the existing parking areas adjacent to the north, west and
south sides of the building, but excluding ten (10) parking
spaces on the west side of the Premises which Landlord
reserves for the use of other tenants (the "Leased
Premises").
Now, Therefore, Landlord and Tenant hereby agree as follows:
1. LEASED PREMISES: Landlord hereby leases to Tenant and
Tenant hereby takes from Landlord, the Leased Premises,
together with all rights, privileges, easements and
appurtenances including the building and other
improvements now situated or to be erected upon the
Leased Premises. The Leased Premises shall exclude the
second floor offices of the Premises.
2. TERM AND RENEWAL OPTIONS: The initial term of this
Lease shall commence on August 1, 1995, (the
"Commencement Date") and shall terminate ten (10) years
thereafter. Tenant shall have the option of renewing
this Lease for one (1) additional renewal term of five
(5) years upon the same terms and conditions set forth
herein, except for rent, provided it shall give
Landlord written notice of its intention to do so not
less than six (6) months prior to the expiration of the
initial term.
3. RENT:
A. Minimum Rent: Tenant shall pay to Landlord at the
address set forth in Paragraph 28 hereof, or at such
other address as Landlord shall from time to time
designate in writing, without demand, except as in this
Lease otherwise specifically provided, in equal,
monthly installments in advance no later than the fifth
day of each and every month during the initial term and
renewal terms, if any, the minimum annual rent set
forth in the Rent Schedule attached hereto as Exhibit B
(the "Minimum Annual Rent").
B. Percentage Rent: In addition to the payment of the
Minimum Annual Rent, Tenant shall pay to the Landlord
as additional rent for each lease year, the amount, if
any, by which five percent (5%) of Tenant's gross sales
exceeds the Minimum Annual Rent. As used in this
paragraph, the term "lease year" shall mean the first
consecutive 12-month period beginning the first day of
the first full month hereunder, and each succeeding 12-
month period. The term "gross sales" shall mean the
gross amount of sales of merchandise at the Leased
Premises, either cash or credit, but excluding: (1)
credits, allowances and refunds from the return of
merchandise by Tenant's customers; (2) merchandise
discounts and xxxx xxxxx; (3) charges to customers for
credit service, extension of credit, deferred payments
and layaways; (4) proceeds from vending machines; (5)
sales taxes added to the price of the merchandise;
and, (6) sales of merchandise to Landlord.
C. Annual Adjustment and Audit: Tenant shall pay the
percentage rent due pursuant to paragraph 3B above, if
any, within thirty (30) days after the end of each
Lease year, and shall concurrently submit to Landlord a
statement of Tenant's gross and net sales during the
preceding Lease year. Landlord may, by giving written
demand within sixty (60) days after the end of each
Lease year, have Tenant's records of gross and net
sales for the preceding Lease year inspected at
Tenant's offices by a licensed accountant of Landlord's
choice. Landlord's failure to make a timely written
demand for inspection shall constitute an acceptance of
the accuracy of Tenant's statement. All sales figures
and other financial information disclosed to Landlord
by Tenant shall be kept confidential by Landlord.
4. USE OF PREMISES: The Leased Premises may be used and
occupied by Tenant for any lawful purpose (subject to
Section 12 hereof) including, but not limited to, the
operation of a hardware/home center/lumber/rental
store.
5. COMPLIANCE WITH LAW: Tenant shall comply with all
governmental laws, ordinances and regulations
applicable to the use of the Leased Premises, and
shall, subject to Section 7D. herein, promptly comply
with all governmental orders and directives for the
correction, prevention and abatement of nuisance in or
upon, or connected with the Leased Premises, all at the
Tenant's sole expense.
6. REAL ESTATE TAXES AND ASSESSMENTS:
A. In addition to the Rent, Tenant shall pay all real
estate taxes, governmental impositions, levies, and
special or general assessments (sometimes collectively,
the "Impositions") which are levied or assessed against
Leased Premises and the common areas of the Premises,
as defined in Section 9 hereof, when they shall
respectively become due and payable, up to a maximum of
$15,000.00 per year. If, during the term of the Lease
or any renewal term, the amount of the Impositions
increases above $15,000.00, then Landlord and Tenant
shall each pay 50% of such increase. All Impositions
assessed prior to but payable in whole or in
installments after the Commencement Date, and all
Impositions assessed during the term of this Lease but
payable in whole or in installments after the term of
this Lease, shall be adjusted and prorated so that the
Landlord shall pay its prorated share for the periods
preceding and following the term of this Lease, and
Tenant shall pay its prorated share for the term of
this Lease. Notwithstanding the foregoing, Tenant
shall not be chargeable with or nor obligated to pay
any income, inheritance, gift, franchise, corporate,
gross receipts (except as provided below), capital
levy, or estate tax, which may be at any time levied or
assessed against, or become a lien upon, Landlord's
parcel or the rents payable hereunder, but Landlord, at
its own cost and expense, shall discharge same so as to
keep the Leased Premises free of the liens of same, it
being the intent hereof that Tenant shall be required
to pay only such Impositions as are properly known as
real estate taxes or real estate assessments and are
assessed against the real estate, including the
buildings and improvements thereon, as such.
B. If there shall be any refunds or rebates on account of
any Imposition paid by Tenant, such proportionate share
of such refund or rebate shall belong to Tenant. Any
such refunds or rebates received by Landlord shall be
trust funds and shall be forthwith paid to Tenant.
Landlord shall, on request of Tenant, sign any receipt
which may be necessary to secure the payment of any
such refund or rebate, and shall pay over to Tenant
such refund or rebate as received by Landlord.
C. Special or general assessments for local improvements
or betterments which have become liens upon the
building on or before the Commencement Date, shall be
payable in full by Landlord and not be deemed
Impositions for the purpose of this Section.
D. Within forty-five (45) days following the end of each
year of this Lease, Landlord shall furnish Tenant a
statement covering the year just expired showing the
Impositions separately for land and improvements
payable by Tenant for such year and copies of receipts
evidencing payment thereof by Landlord. Within thirty
(30) days after receipt of such statement and receipts,
Tenant shall pay Landlord its proportionate share of
the Impositions.
E. Tenant may, in its own name or in the name of Landlord,
contest the validity or amount of any such taxes or the
assessments upon which the same are based, and Landlord
agrees to render to Tenant all assistance reasonably
possible, including joining in and signing any protest
or pleading which Tenant may deem advisable. If any
rebate of such taxes is made, the rebate shall belong
to Tenant, to the extent Tenant has so reimbursed
Landlord for the year from which such rebate is made.
Landlord shall from time to time furnish Tenant with a
copy of each receipted tax xxxx with respect to the
premises, together with a statement in reasonable
detail showing the amount, if any, due from Tenant
supported by evidence reasonably satisfactory to Tenant
with respect to the method of calculation of said
amount and the basis therefore. Subject to
verification by Tenant as to the amount due and payment
of such taxes, Tenant shall within thirty (30) days
after receipt of the applicable tax bills, statement
and evidence, remit to Landlord the amount due. If the
minimum rent abates or is apportioned for any reason,
the amounts due pursuant to this Section shall
similarly xxxxx or be apportioned.
7. MAINTENANCE BY LANDLORD:
A. Landlord shall, at its expense, maintain the structural
portions of the Premises and the Leased Premises
including, but not limited to, the roof, foundation,
underground or otherwise concealed plumbing and
exterior walls (excluding all windows, window glass,
plate glass and all doors) of the building in good
repair and condition. Tenant shall give immediate
written notice to Landlord of the need for repairs or
corrections and Landlord shall proceed promptly to make
such repairs or corrections.
B. Landlord represents that, as of the Commencement Date,
the plumbing, heating and air conditioning system and
equipment are in good operating condition, and were
built in accordance with applicable building codes in
existence at the time of construction.
C. Landlord agrees, at its expense, to re-seal and
restripe the parking areas and to repair all existing
roof leaks no later than thirty (30) days after the
Commencement Date. Landlord agrees to be liable for
maintaining the stairway leading up to the second floor
offices.
D. Landlord agrees that if any federal, state or municipal
government, or any department or division thereof,
subsequent to Tenant's occupancy of the Leased
Premises, requires any rebuilding, alterations, repairs
or installations to the interior of Tenant's Leased
Premises so as to put the Leased Premises in conformity
with the laws, regulations or ordinances relating to
the use, occupancy and construction thereof, Landlord
shall immediately, at its own cost and expense, rebuild
or make such alterations, installations and repairs as
may be necessary to comply with such laws, ordinances
or requirements. Said rebuilding, alterations or
repairs to the interior also includes but is not
limited to all entrances and exits to the Leased
Premises.
8. MAINTENANCE BY TENANT:
A. Tenant shall, at its expense and risk, maintain all
other parts of the building and other improvements on
the Leased Premises in good repair and condition,
including, but not limited to, repairs (including all
necessary replacements) to the interior plumbing,
windows, window glass, plate glass, doors, heating
system, air conditioning equipment and the interior of
the Leased Premises in general. Should Tenant be
required to replace any of the aforementioned items,
then Landlord and Tenant agree to prorate the cost
thereof based on the value of the unused portion of the
useful life of the item and the length remaining under
the term of the Lease. The useful life of each major
component of the heating and air conditioning equipment
shall be agreed to in writing on or before the
Commencement Date. Tenant must obtain Landlord's
approval of the replacement of the item before
incurring the cost thereof. The Tenant shall be
responsible for usual and customary maintenance of the
septic system. The Landlord shall be liable for repair
or replacement of the septic system. Tenant shall
maintain the landscaping and the parking area (sealing
and patching, when necessary).
B. Tenant shall throughout the Lease term take good care
of the Leased Premises and other improvements and keep
them free from waste or nuisance, and properly service
and maintain the heating and air conditioning equipment
and shall deliver up the premises broom clean at the
termination of this Lease in good repair and condition
(reasonable wear and tear excepted).
C. In the event Tenant or Landlord should neglect to
fulfill their respective maintenance obligations
hereunder after written notice from the other party,
then the other party shall have the right (but not the
obligation) to cause repairs or corrections to be made
and any reasonable costs therefore shall be payable by
Tenant or offset against rent by Tenant, as the case
may be, on the next rental installment date.
9. ALTERATIONS, ADDITIONS AND IMPROVEMENTS: Tenant shall
not create any openings in roof or exterior walls nor
make any alterations, additions or improvements to the
Leased Premises without prior written consent of
Landlord. Consent for nonstructural alterations,
additions or improvements shall not be unreasonably
withheld by Landlord. Tenant shall have the right at
all times to erect or install shelves, bins, machinery,
air conditioning or heating equipment, and trade
fixtures, provided that Tenant complies with all
applicable governmental laws, ordinances and
regulations. Tenant shall have the right to remove at
the termination of this Lease such items so installed,
however, Tenant shall, prior to the termination of his
Lease, repair any damages caused by such removal.
Tenant shall indemnify Landlord from any mechanic's
liens and shall within fifteen (15) days of completion
of said work, provide Landlord with copies of validly
executed waivers of liens and sworn contractor's
affidavits. All alterations, additions or improvements
made by Tenant shall become the property of the
Landlord at the termination of this Lease. Tenant has
the right to make alterations to the interior of the
Leased Premises provided the cost of which does not
exceed an amount equal to three (3) months' rent
without prior consent of Landlord, at Tenant's sole
expense.
10. SIGNS: Tenant shall have the right to erect signs on
any of the four exterior facias of the building
securely attached to and parallel to said facia,
subject to applicable laws, regulations, ordinances of
the governmental authorities having jurisdiction.
Landlord also agrees to give Tenant permission to alter
the existing pylon sign. This would include removal of
the existing reader board sign, thereby allowing the
installation of a larger, two-sided illuminated Ace or
Ace Hardware sign on top of pylon. Tenant shall assume
all expenses and responsibilities relative to the
maintenance and use of pylon sign, provided, however,
that Landlord shall, at its expense, ensure that the
pylon sign and wiring comply with applicable building
and electrical codes. Tenant shall remove all signs at
the termination of this Lease, and shall repair any
damage and close any holes caused by such removal.
11. INCREASING PREMIUMS OR CAUSING SUSPENSION OR
CANCELLATION OF LANDLORD'S INSURANCE POLICY: Tenant
shall not permit any operation to be conducted in the
Leased Premises that would cause suspension or
cancellation of the fire and extended coverage
insurance policy carried by Landlord. Any insurance
which may be carried by Landlord or Tenant against loss
or damage to the building and other improvements
situated on Leased Premises shall be for the sole
benefit of the party carrying such insurance and under
its sole control.
12. WAIVER OF SUBROGATION: Each party hereto waives
(insofar as it is possible to do so without impairing
or invalidating that party's insurance coverage) any
and every claim which arises or may arise in its favor
and against the other party hereto during the term of
this Lease or any renewal or extension thereof for any
and all loss of, or damage to, any of its property
located within or upon, or constituting a part of, the
premises leased to Tenant hereunder, which loss or
damage is covered by valid and collectible fire and
extended coverage insurance policies, to the extent
that such loss or damage is recoverable under said
insurance policies. Said mutual waivers shall be in
addition to, and not in limitation or derogation or,
any other waiver or release contained in this Lease
with respect to any loss of, or damage to, property to
the parties hereto. Inasmuch as the above mutual
waivers preclude the assignment of any aforesaid claim
by way of subrogation (or otherwise) to an insurance
company (or for any other person), each party hereto
hereby agrees immediately to give to each insurance
company which has issued to it policies of fire and
extended coverage insurance, written notice of the
terms of said mutual waivers, and to have said
insurance policies properly endorsed, if necessary, to
prevent the invalidation of said insurance coverages by
reason of said waivers.
13. LANDLORD'S RIGHT OF ENTRY: Landlord and its authorized
agents shall have the right to enter the Leased
Premises during normal working hours and upon
reasonable prior notice for the following purposes:
(a) inspecting the general conditions and state of
repair of the premises; (b) the making of repairs
required of Landlord; (c) the showing of the premises
to any prospective purchaser; (d) or for any other
reasonable purpose. If Tenant shall not have renewed
or extended this Lease prior to the final one hundred
eighty (180) day period of the Lease term, Landlord and
its authorized agents shall have the right to erect on
or about the Leased Premises a customary sign
advertising the property for lease or for sale.
14. UTILITY SERVICES: Landlord shall provide at the
beginning date of this Lease the normal and customary
utility service connections in the Leased Premises.
The Leased Premises are presently serviced by a private
well and septic system, which Landlord represents are
in good working order as of the Commencement Date. If,
during the term of this Lease or any renewal term, the
Leased Premises are to be connected to the municipal
water and sewer systems, the Landlord shall pay any
required hook up costs and fees. Tenant shall pay all
charges for gas, water and electricity used on the
Premises, and for all electric light lamps or tubes
used on the Leased Premises.
15. ASSIGNMENT AND SUBLEASING: The Tenant may not, without
the written consent of the Landlord, assign or sublet
this Lease. The consent of Landlord shall not be
unreasonably withheld if such consent is requested, but
Tenant may in no event assign this Lease or sublet the
premises for a use which is more hazardous or more
destructive to the premises than the use permitted
hereunder. Landlord will not withhold its consent to
an assignment or sublease from Tenant to another entity
in which Tenant holds the majority interest. In the
event of any assignment agreed upon between Landlord
and Tenant, the Tenant shall not be released from any
liability under this Lease or other related agreements
signed among the parties.
16. FIRE AND CASUALTY DAMAGE: Should the building or other
structures be damaged or destroyed by fire, tornado or
other casualty which can be reasonably insured against,
Tenant shall give immediate written notice thereof to
the Landlord. If the building is substantially or
totally destroyed, Landlord shall either rebuild the
same to substantially the same condition which it was
in immediately preceding the destruction, and there
shall be an abatement of rent for the period of time
during which the Leased Premises are unusable by
Tenant, or Landlord may terminate this Lease. If the
damage as a result of the casualty to the building is
substantial but renders the Leased Premises unusable
only in part, Landlord shall rebuild the same to
substantially the conditions in which they were
immediately preceding the damage, and there shall be an
abatement of rent in the proportion that the part of
the Leased Premises rendered unusable by the Tenant
bears to the total usable area included in the premises
immediately prior to the damage. If the Landlord has
not repaired such damage within one hundred eighty
(180) working days after the occurrence of the
casualty, then Tenant may proceed to rebuild or repair
the casualty damage to said building and other
improvements to substantially the condition in which
they existed prior to such casualty and may offset the
cost thereof against rental then becoming next due.
17. HOLD HARMLESS: Landlord shall not be liable to Tenant
or Tenant's employees, agents or invitees or to any
other person whomsoever, for any injury to person or
damage to property on or about the Leased Premises
caused by negligence or misconduct of Tenant, its
employees, or agents. Tenant agrees to indemnify
Landlord and hold it harmless from any loss, expenses
or claims arising out of any such damage or injury,
unless such damage or injury results from Landlord's
negligent or intentional acts or omissions.
18. CONDEMNATION: If, during the term of this Lease or any
extension or renewal thereof , all or a substantial
part of the Leased Premises should be taken for any
public or quasi-public use under any governmental law,
regulation, ordinance or by right of eminent domain, or
should be sold to the condemning authority under threat
of condemnation, this Lease shall terminate and the
rent shall be abated during the unexpired portion of
this Lease, effective as of the date of taking of said
premises by the condemning authority. If less than
twenty-five percent (25%) of the Leased Premises shall
be taken for any public or quasi-public use under any
governmental law, regulation, ordinance or by right of
eminent domain, or should be sold to the condemning
authority under threat of condemnation, this Lease
shall not terminate but Landlord shall forthwith at its
sole expense restore and reconstruct the building and
other improvements situated on the Leased Premises
provided such restoration and reconstruction shall make
the same reasonably Tenantable and suitable for the
uses for which the premises are leased as defined in
Section 4 above. The rent payable hereunder during the
unexpired portion of this Lease shall be adjusted
equitably on a pro rata basis. Landlord and Tenant
shall each be entitled to receive and retain such
separate awards as may be allocated to their respective
interests in any condemnation proceedings. The
termination of this Lease shall not affect the rights
of the respective parties to such awards.
Notwithstanding anything in this Section to the
contrary, if any government taking contemplated herein
renders the Leased Premises unusable for its intended
purpose, then either party may terminate this Lease by
written notice to the other and the parties will have
no further obligations hereunder.
19. DEFAULT BY TENANT: The following events shall be deemed
to be events of default by Tenant under this Lease:
A. Tenant shall fail to pay any installment of the rent on
the date that same is due and such failure shall
continue for a period of five (5) days after written
notice from Landlord.
B. Tenant shall fail to comply with any term, condition or
covenant of this Lease, other than the payment of rent
and shall not cure such default within thirty (30) days
after written notice thereof to the Tenant, or if such
default cannot reasonably be cured within the said
thirty (30) days and Tenant shall not have commenced to
cure such default within thirty (30) days after written
notice thereof to Tenant, or if such default cannot
reasonably be cured within the said thirty (30) days
and Tenant shall not thereafter with reasonable
diligence and good faith proceed to cure such default.
C. Tenant shall become insolvent, or shall make a transfer
in fraud of creditors, or shall make an assignment for
the benefit of creditors.
D. Tenant shall file a petition under any Section or
Chapter of the National Bankruptcy Act, as amended, or
under any similar law or statute of the United States
or any State thereof; or Tenant shall be adjudged
bankrupt or insolvent in proceedings filed against the
Tenant thereunder.
E. A receiver or trustee shall be appointed for all or
substantially all of the assets of Tenant.
F. Upon the occurrence of any of such events of default,
Landlord shall have the option to pursue any one or
more of the following remedies without any notice or
demand whatsoever.
(i) Terminate this Lease, in which event Tenant shall
immediately surrender the Leased Premises to
Landlord, and if Tenant fails to do so, Landlord
may, without prejudice to any other remedy which
it may have for possession or arrearages in rent,
enter upon and take possession of the Leased
Premises, and relet the premises and receive the
rent therefor; and Tenant agrees to pay to
Landlord on demand any deficiency that may arise
by reason of such reletting.
(ii) Enter upon and take possession of the Leased
Premises, without being liable for prosecution or
any claim for damages therefor, and do whatever
Tenant is obliged to do under the terms of this
Lease, and Tenant agrees to reimburse Landlord
on demand for expenses which Landlord may incur in
thus effecting compliance with Tenant's obligation
under this Lease.
Pursuit of any of the foregoing remedies shall not
preclude pursuit of any of the other remedies herein
provided or any other remedies provided by law, nor
shall pursuit of any remedy herein provided constitute
a forfeiture or waiver of any rent due to Landlord
hereunder or of any damages accruing to Landlord by
reason of the violation of any of the terms, conditions
and covenants herein contained.
20. RIGHT OF FIRST REFUSAL: If at any time during any term
of this Lease, Landlord receives and is willing to
accept a bona fide offer from a third party to purchase
the Premises, other than an offer to purchase it at any
sale incidental to the exercise of a remedy provided
for in a mortgage or other security instrument creating
a lien on the Premises, or if Landlord offers to sell
the Premises to a third party, Landlord shall promptly
transmit to Tenant its offer to sell the Premises to
Tenant upon terms and conditions substantially similar
to those offered by or to the third party, together
with a true copy of such original offer. If Tenant
does not accept such offer within thirty (30) days
after it is made, Landlord may, within one hundred
eighty (180) days after the thirty (30) day period
expires, sell the interest to a third party upon terms
and conditions substantially similar to those offered
to Tenant. If Tenant accepts such offer by notice to
Landlord within the time permitted, the offer and
acceptance shall constitute a contract for the sale by
Landlord and the purchase by Tenant of the Premises at
a closing to be held within thirty (30) days following
the receipt by Landlord of Tenant's notice of
acceptance. On the date of such purchase, Landlord
shall convey marketable title to the Premises to Tenant
against payment of the purchase price therefor.
21. ATTORNEY'S FEES: If, on account of any breach or
default by Landlord or Tenant of their obligations to
any of the parties hereto, under the terms, conditions
and covenants of this Lease, it shall become necessary
for any of the parties hereto to employ an attorney to
enforce or defend any of its rights or remedies
hereunder and should such party prevail, it shall be
entitled to any reasonable attorney's fees incurred in
such connection.
22. QUIET ENJOYMENT: Landlord warrants that it has full
right and power to execute and perform this Lease and
to grant the estate leased herein and that Tenant, on
payment of the rent and performing the covenants herein
contained, shall peaceably and quietly have, hold and
enjoy the Leased Premises during the full term of this
Lease and any renewal thereof. Tenant's interest in
the Leased Premises is subordinate to any mortgage or
deed of trust granted by the Landlord and Tenant agrees
upon demand to execute such further instruments,
subordinating this Lease as Landlord may request,
provided such further subordination shall be upon the
express condition that this Lease shall be recognized
by the mortgagee and that the rights of Tenant shall
remain in full force and effect during the term of this
Lease so long as Tenant shall continue to perform all
of the covenants of this Lease.
23. WAIVER OF DEFAULT: No waiver by the parties hereto of
any default or breach of any term, condition, or
covenant of this Lease shall be deemed to be waiver of
any subsequent covenant contained herein.
24. CAPTIONS: The captions or headings of paragraphs in
this Lease are inserted for convenience only, and shall
not be considered in construing the provisions hereof
if any question of intent should arise.
25. SUCCESSORS: The terms, conditions and covenants
contained in this Lease shall apply to, inure to the
benefit of, and be binding upon the parties hereto and
their respective successors in interest and legal
representatives except as otherwise herein expressly
provided. All rights, powers, privileges, immunities
and duties of Landlord under this Lease, including but
not limited to any notices required or permitted to be
delivered by Landlord to Tenant hereunder, may, at
Landlord's option, be exercised or performed by
Landlord's agent or attorney.
26. NOTICES: Any notice or document required or permitted
to be delivered hereunder shall be deemed to be
delivered when deposited in the United States mail,
postage prepaid, registered or certified mail, return
receipt requested, addressed to the parties hereto at
the respective addresses set opposite their names
below, or at such other addresses as they have
therefore specified by written notice delivered in
accordance herewith:
Landlord: Tenant:
TRI-R Corporation A.H.C. Store Development Corp.
0000 Xxxxx 00 0000 Xxxxxxxxxx Xxxxx
Xxxxx X Xxx Xxxxx, Xxxxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
60560
Attn: Xxxxxx Xxxxxxxxx Attn: Xxxxxxx Xxxxxx
27. INSURANCE: During the entire term of this Lease, the
Tenant shall, at Tenant's sole cost and expense,
furnish, maintain and provide the following insurance
coverage for benefit of Landlord and Tenant:
A. General public liability insurance against claims for
personal injury, death or property damage occurring in,
upon or about the leased premises and on any sidewalks
directly adjacent to the Leased Premises. The
limitation of liability of such insurance shall be not
less than Five Hundred Thousand Dollars ($500,000) in
respect to injury or death of one person and a
limitation of One Million Dollars ($1,000,000) in
respect of any one accident, and a limitation of One
Hundred Thousand Dollars ($100,000) in respect of
property damage, or a combined single limit covering
bodily injury and property damage in the amount of
$1,000,000. Such policies may be blanket policies
covering other locations and evidence of such insurance
shall be delivered to Landlord upon demand. If Tenant
fails to obtain such insurance or to maintain same in
effect or to furnish Landlord with such evidence,
Landlord shall have the right to obtain such insurance
and to add the cost thereof to the rent then due or to
grow due hereunder.
B. At all times during the term hereof keep in force at
its own expense plate glass insurance in companies
acceptable to Landlord and naming Landlord as an
additional insured party.
C. At all times during the term hereof keep in force at
its own expense property insurance with extended
coverage in companies acceptable to Landlord, equal to
the replacement cost of the Premises, naming Landlord
as an additional insured party.
D. Prior to occupying the Leased Premises, Tenant shall
provide Landlord with a duly executed Certificate of
Insurance showing that the insurance required herein is
in full force and effect. Said certificate shall
provide that Landlord shall be given ten (10) days
notice of any cancellation or change in the insurance
set forth on said certificate.
28. SEVERABILITY: If any provisions of this Lease shall be
determined to be void by any court of competent
jurisdiction, then such determination shall not affect
any other provision hereof, all of which other
provisions shall remain in full force and effect.
29. ENVIRONMENTAL: Landlord represents and warrants that,
as of the Commencement Date, the Premises are in
compliance with all federal, state or local
environmental laws, rules and regulations including,
without limitation, laws, rules and regulations
pertaining to the transportation, treatment, storage
and disposal of hazardous materials and hazardous
wastes. Landlord shall defend, indemnify and hold
harmless Tenant, its officers, agents, employees and
assignees from any against any liability arising out of
a breach of the foregoing representation.
30. EXCLUSIVITY: Landlord agrees that during any period
that this Lease is in full force and effect, it shall
not create or lease space at the Premises to anyone
other than Tenant for the sale of hardware, paint,
wallpaper, automotive supplies, rental items or live
plants without Tenant's consent.
31. ARBITRATION: Landlord and Tenant agree that all
disputes that may arise under this Lease shall be
submitted to arbitration under the rules of the
American Arbitration Association. Such arbitration
shall take place in Chicago, Illinois.
IN WITNESS WHEREOF, the parties have executed this Lease on
the date first set forth above.
Tenant: Landlord:
A.H.C. STORE DEVELOPMENT CORP. TRI-R CORPORATION
By: XXXXXXX X. XXXXXX By: XXX XXXXXX
Xxxxxxx X. Xxxxxx, President Title: PRESIDENT
ATTEST: ATTEST:
XXXXXXX X. XXXXXXXX XXXXXX X. XXXXXXXXX V.P.
EXHIBIT A
[Insert Legal Description]
EXHIBIT B
RENT SCHEDULE
YEAR MINIMUM ANNUAL RENT
1. REDACTED
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