EXHIBIT 10.4
COMMERCIAL LEASE
THIS LEASE is made on the 14th day of December 2001.
------ --------
The Landlord hereby agrees to lease to the Tenant, and the Tenant hereby agrees
to hire and take from the Landlord, the Leased Premises described below pursuant
to the terms and conditions specified herein:
LANDLORD: Xxxxxx X. Xxxxxxx TENANT (S): Xxxxx Xxxxx
--------------------- -----------------------------
Address: X.X. Xxx 00 Address: 195 Xxxxx Ridge-Mt. Air/Road
--------------------- -----------------------------
Xxx Xxxx, XX 00000 Xxxxxxxx, XX 00000
--------------------- -----------------------------
Phone: 000-000-0000 Phone: 000-000-0000
--------------------- -----------------------------
1, Leased Premises. The Leased Premises are those premises described as:
A portion of the premises described as 000 Xxxxx Xxxx Xxxxxx, Xxx Xxxx, XX and
consisting of the front (south side) 1st floor office, and the right to use
adjoining parking at the south side of building (see Paragraph 22v), sidewalks,
and means of ingress and egress of which the leased promises are a part ________
_____________________________.
2. Term. The term of the Lease shall be for a period of 1 year(s) commencing on
the 1st day of January 2002 .and ending on the 31st day of December , 2002
unless sooner terminated as hereinafter provided. If Tenant remains in
possession of the Leased Premises with the written consent of the Landlord after
the lease expiration date stated above, this Lease will be converted to a
month-to-month Lease and each party shall have the right to terminate the Lease
by giving at least one (1) month's prior written notice to the other party.
3. Renewal Option. Tenant shall have the option to renew this Lease for 1 year,
provided Tenant is in full compliance with all terms and condition of the Lease.
Such option must be exercises by written by written notice from Tenant to
Landlord given at lease ninety (90) days prior to the expiration of the first
year term. Rent shall increase 5% per year for the renewal term of the Lease.
4. Rent. The Tenant agrees to pay the ANNUAL RENT of TWELVE THOUSAND Dollars
($12,000.00) payable in equal installments $1,000.00 in advance on the first day
of each and every calendar month during the full term of this Lease.
5. Security Deposit. The sum of ONE THOUSAND Dollars ($1,000.00) is deposited by
the Tenant with the Landlord as security for the faithful performance of all the
covenants and conditions on his part to be performed, then the sum deposited
shall be returned to the Tenant.
6. Delivery of Possession. If for any reason the Landlord cannot deliver
possession of the leased property to the Tenant when the lease term commences,
this Lease shall not be void or voidable, nor shall the Landlord be liable to
the Tenant for any loss or damage resulting therefrom. However, there shall be
an abatement of rent for the period between the commencement of the lease term
and the time when the Landlord delivers possession.
7. Use of Leased Premises. The Leased Premises may be used only for the
following purpose(s):
Professional Business Office
--------------------------------------
8. Utilities. Except as specified below, the Tenant shall be responsible for all
utilities and services that are furnished to the Leased Premises. The
application for and connecting of utilities, as well as all services, shall be
made by and only in the name of the Tenant: (List exceptions, if any)
Telephone/Internet Service: Interior office cleaning
----------------------------------------------------------------
9. Condition of the Lease Premise; Maintenance and Repair. The Tenant
acknowledges that the Leased Premises are in good order and repair. The Tenant
agrees to take good care of and maintain the Leased Premises in good condition
throughout the term of the Lease.
The Tenant, at his expense, shall make all necessary repairs and replacements to
the Leased Premises, including the repair and replacement of pipes, electrical
wiring, heating and plumbing systems, fixtures and all other systems and
appliances and their appurtenances. The quality and class of all repairs and
replacements shall be equal to or greater than the original worth. If Tenant
defaults in making such repairs or replacements, Landlord may make them for
Tenant's account, and such expenses will be considered additional rent.
10. Compliance with Laws and Regulations. Tenant, at its expense, shall promptly
comply with all Federal, State and Municipal laws, orders, and regulations, and
with all lawful directives of public officers, which impose any duty upon it or
Landlord with respect to the Leased Premises. The Tenant at its expense, shall
obtain all required licenses or permits for the conduct of its business within
the terms of this lease, or for the making of repairs, alterations,
improvements, or additions. Landlord, when necessary, will join with the Tenant
in applying for all such permits or licenses.
11. Alterations and Improvements. Tenant shall not make any alterations,
additions or improvements to, or install any fixtures on, the Leased Premises
without Landlord's prior written consent. If such consent is given, all
alterations, additions, and improvements made, and fixtures installed by Tenant
shall become Landlord's property at the end of the Lease/term. Landlord may,
however, require Tenant to remove such fixtures, at Tenant's expense, at the end
of the Lease Term.
12. Assignment/Subletting Restrictions. Tenant may not assign this agreement or
sublet the Leased Premises without the prior written consent of the Landlord.
Any assignment, sublease or other purported license to use the Leased Premises
by Tenant without the Landlord's consent shall be void and shall (at Landlord's
option) terminate this Lease.
13. Insurance.
(i) By Landlord. Landlord shall at all times during the term of this Lease, at
its expense, insure and keep in effect on the building in which the Leased
Premises are located fire insurance with extended coverage. The Tenant
shall not permit any use of the Leased Premises which will make voidable
any insurance on the property of which the Leased Premises are a part, or
on the contents of said property or which shall be contrary to any law or
regulation from time to time established by the applicable fire insurance
rating association. Tenant shall on demand reimburse the Landlord, and all
other tenants, the full amount of any increase in insurance premiums caused
by the Tenant's use of the premises.
(ii) By Tenant. Tenant shall, at its expense, during the term hereof, maintain
and deliver to Landlord public liability and property damage and plate
glass insurance policies with respect to the Leased Premises. Such policies
shall name the Landlord and Tenant as insureds, and have limits of at least
$500,000 for injury or death to any one person and $500,000 for any one
accident, and $500,000 with respect to damage to property and with full
coverage for plate glass. Such policies shall be in whatever form and with
such insurance companies as are reasonably satisfactory to Landlord, shall
name the Landlord as additional insured, and shall provide for at least ten
(10) days' prior notice to Landlord of Cancellation.
14. Indemnification of Landlord. Tenant shall defend, indemnify, and hold
Landlord harmless from and against any claim, loss, expense or damage to any
person or property in or upon the Leased Premises, arising out of Tenant's use
or occupancy of the Leased Premises, or arising out of any act or neglect of
Tenant or its servants, employees, agents, or invites.
15. Condemnation. If all or any part of the Leased Premises is taken by eminent
domain, this lease shall expire on the date of such taking, and the rent shall
be apportioned as of that date. No part of any such award shall belong to
Tenant.
16. Destruction of Premises. If the building in which the Leased Premises is
located id damaged by fire or other casualty, without Tenant's fault, and the
damage is so extensive as to effectively constitute a total destruction of the
property or building, this Lease shall terminate and the rent shall be
apportioned to the time of the damage. In all other cases of damage without
Tenant's fault, Landlord shall repair the damage with reasonable dispatch, and
if the damage has rendered the Leased Premises wholly or partially untenantable,
the rent shall be apportioned until the damage is repaired. In determining what
constitutes reasonable dispatch, consideration shall be given to delays caused
by strikes, adjustment of insurance, and other causes beyond the Landlord's
control.
17. Landlord's Rights upon Default. In the event of any breach of this lease by
the Tenant, which shall not have been cured within TEN (10) DAYS, then the
Landlord, besides other rights or remedies it may have, shall have the immediate
right of reentry and may remove all persons and property from the Leased
Premises; such property may be removed and stored in a public warehouse or
elsewhere at the cost of, and for the account of, the Tenant. If the Landlord
elects to reenter as herein provided, or should it take possession pursuant to
any notice provided for by law, it may either terminate this Lease or may, from
time to time, without terminating this lease, relet the Leased Premises or any
part thereof, for such term or terms and at such rental or rentals and upon such
other terms and conditions as the Landlord in Landlord's own discretion may deem
advisable. Should rentals received from such reletting during any month be less
than that agreed to be paid during the month by the Tenant hereunder, the Tenant
shall pay such deficiency to the Landlord monthly. The Tenant shall also pay to
the Landlord, as soon as ascertained, the cost and expenses incurred by the
Landlord, including reasonable attorneys fees, relating to such letting.
18. Quiet Enjoyment. The Landlord agrees that if the Tenant shall pay the rent
as aforesaid and perform the covenants and agreements herein contained on its
part to be performed, the Tenant shall peaceably hold and enjoy the said rented
premises without hindrance or interruption by the Landlord or by any other
person or persons acting under or through the Landlord.
19. Landlord's Right to Enter. Landlord may, at reasonable times, enter the
Leased Premises to inspect it, to make repairs or alterations, and to show it to
potential buyers, lenders or tenants.
20. Surrender upon Termination. At the end of the lease term the Tenant shall
surrender the leased property in as good condition as it was in at the beginning
of the term, reasonable use and wear expected.
21. Subordination. This lease, and the Tenant's leasehold interest, is and shall
be subordinate, subject and inferior to any and all liens and encumbrances now
and thereafter placed on the Leased Premises by Landlord, any and all extensions
of such liens and encumbrances and all advances paid under such liens and
encumbrances.
22. Additional Provisions:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
23. Miscellaneous Terms.
(i) Notices. Any notice, statement, demand or other communication by one party
to the other, shall be given by personal delivery or by mailing the same,
postage prepaid, addressed to the Tenant at the premises, or to the
Landlord at the address set forth above.
(ii) Severability. If any clause or provision herein shall be adjudged invalid
or unenforceable by a court of competent jurisdiction or by operation of
any applicable law, it shall not affect the validity of any other clause or
provision, which shall remain in full force and effect.
(iii)Waiver. The failure of either party to enforce any of the provisions of
this lease shall not be considered a waiver of that provision or the right
of the party to thereafter enforce the provision.
(iv) Complete Agreement. This Lease constitutes the entire understanding of the
parties with respect to the subject matter hereof and may not be modified
except by an instrument in writing and signed by the parties. (v)
Successors. This Lease is binding on all parties who lawfully succeed to
the rights or take the place of the Landlord or Tenant.
IN WITNESS WHEREOF the parties have set their hands and seals on this 27th day
of December, 2001.
/s/ Xxxxxx X. Xxxxxxxxxxx /s/Xxxxx Xxxxx
-------------------------------------- ------------------
Landlord or Landlord's Authorized Agent Tenant
