BUSINESS LEASE
for
PDC Innovative Industries, Inc.
This agreement, entered into this day, October 14, 2002 between
CORAL CENTER
hereinafter called the LESSOR, party of the first part, and
PDC Innovative Industries, Inc.
of Broward County, Florida, hereinafter called the LESSEE, party of the
second part:
Witnesseth, That the said LESSOR does this day lease unto said LESSEE,
and said LESSEE does hire and take as tenant under said LESSOR the space 3838 &
0000 X. X. 000 Xxx., Xxxxx Xxxxxxx, Xxxxxxx 00000 consisting of approximately
2,000 square feet situated in Broward County, Florida, to be used and occupied
by the LESSEE as offices, workshop and storage warehouse and for no other
purposes or uses whatsoever, for the term of 24 months beginning the first day
of November 2002 and ending on the last day of October 2004 at and for the
agreed total rental of $40,800.00 payable as follows: $3,400.00 plus Florida
Sales Tax upon execution of this Lease, which payment represents the rental
payment for the first and last months of the Lease and monthly payments of $
1,700.00 plus any costs from the following stipulations and conditions including
any applicable sales taxes for the remaining term of the Lease.
All payments are to be made to the LESSOR on the first day of each and
every month in advance without notice or demand at the office of Coral Center
Properties, 0000 X. X. 00 Xx., Xxxxxxxxxx Xxxxx, Xxxxxxx 00000, or at such place
and too such other person, as the LESSOR may from time to time designate in
writing.
The following express stipulations and conditions are made a part of
this lease and are hereby assented to by the LESSEE:
LATE PAYMENTS: If the rent is not received within ten days after the
due date, a penalty of ten percent of the month's rent will be assessed by the
LESSOR.
SECURITY DEPOSIT: The LESSEE shall deposit with the LESSOR $1,700.00.
This deposit shall be held by the LESSOR as security for the performance by the
LESSEE of all the terms, conditions, covenants, promises and agreements of this
Lease. In the event of a default by the LESSEE under this Lease, the LESSOR
shall not be required to return any part or portion of said security deposit.
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However, under no circumstances shall the LESSOR be deprived of any other remedy
as the law may furnish or as agreed upon in this Lease. In the event that the
damages exceed the amount of the security deposit, the LESSOR shall have the
right to proceed against the LESSEE to recover the excess amount. In the event
that there is no default of any kind by the LESSEE, upon expiration of the full
term of this Lease, said security deposit shall be returned by the LESSOR to the
LESSEE, less any expense, loss or damage suffered by the LESSOR as a result of
any act or omission on the part of the LESSEE, his agents, employees or
licensees. When the LESSEE is entitled to the return of the security deposit,
the LESSOR shall have 15 days from the date of the expiration of this Lease in
which to refund the security deposit. The LESSEE shall not have the right to
apply all or any of the deposit as payment for rent.
PROPERTY TAX AND INSURANCE: The LESSEE shall pay their prorata share of
any increases in Property Tax and building insurance over the current levels ($
39,555.00 Property Tax and $ 7,287.64 insurance). LESSEE'S portion shall be
7.25% of the above. Should the basic insurance rate on the building be increased
due to the nature of the LESSEE'S business, the LESSEE shall be responsible for
any increases over and above the base rate for the entire building; provided the
LESSEE shall not be responsible for any prorata increases due to the nature of
other tenant's businesses.
COST OF LIVING INCREASE: On October 1, 2003 and each year thereafter
for this Lease and any renewals or extensions of this Lease the rent shall be
calculated as follows:
The first year's monthly rent multiplied by the CPI for
January of the year in question divided by the CPI for
January 2002. CPI shall be "The Consumer Price Index for Wage
Earners and Clerical Workers" as set forth in the Bureau of
Labor Statistics of the United States Government for the
United States.
LOCKS: Any changes in the locks for the leased space must be made
through the Landlord with all costs to be paid by the LESSEE. If the locks are
found to have been changed without the Landlords permission they will be
restored at the LESSEE'S expense.
UTILITIES: The LESSEE agrees to pay promptly when due all charges for
utilities. The cost for normal use of water is included in the rent charge.
DUMPSTER: The LESSEE will be billed for their prorata share of the cost
of maintaining and dumping the common trash DUMPSTER. If the LESSEE'S use of the
DUMPSTER is excessive in the opinion of the LESSOR the added cost will be billed
to the LESSEE. (Minimum charge $75 per month)
ASSIGNMENT: The LESSEE covenants that without the prior written consent
of the LESSOR, the term herein demised shall not be assigned or transferred by
operation of law or otherwise: and the LESSEE shall not, without the like
written consent, let, underlet, permit or suffer to be used by others, the
leased premises or any part thereof. LESSOR shall not unreasonably withhold
permission.
LIENS: LESSEE covenants and agrees that it has no power to incur any
indebtedness giving a right to a lien of any kind or character upon the right,
title and interest of the LESSOR in and to the land covered by this lease, and
that no person shall ever be entitled to any lien directly or indirectly derived
through or under it or its agents or servants, or because of any act or omission
of said LESSEE, which lien shall be superior to the lien of this Lease reserved
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to the LESSOR upon the leased premises. All persons contracting with said
LESSEE, or furnishing materials or labor to said LESSEE or its agents or
servants, as well as all persons whosoever, shall be bound by this provision of
this Lease. Should any such lien be filed, LESSEE shall discharge the same by
paying the same or by filing a bond or otherwise as permitted by law.
INDEMNIFICATION AGAINST COSTS AND CHARGES: In the event the LESSOR is
compelled to incur any expense in collecting any sum of money due under this
Lease for rent or otherwise, or in the event suit shall be brought by the LESSOR
for the purpose of evicting the LESSEE from the leased premises, or if suit be
brought by the LESSOR for the purpose of compelling the payment of any other sum
which should be paid by the LESSEE under the terms hereof, or for the purpose of
enforcing performance by the LESSEE of any of the several agreements, conditions
and covenants contained herein, the LESSEE covenants and agrees to pay to LESSOR
all expenses and costs of litigation, including a reasonable attorney's fee for
LESSOR'S attorney, provided such suit terminates in favor of the LESSOR. Any
such sums due under the terms and provisions of this paragraph shall constitute
a lien against the interest of the LESSEE in the premises and its property
thereon, to the same extent and on the same conditions as rent would constitute
a lien upon said premises and property. If such suit terminates in favor of the
LESSEE, LESSOR covenants and agrees to pay to LESSEE all expenses and costs of
litigation's, including a reasonable attorney's fee for the LESSEE'S attorney.
INTEREST: Any unpaid amounts due under this Lease shall earn interest
at the rate of 1.5% per month.
INDEMNIFICATION AGAINST CLAIMS: The LESSEE shall indemnify and save
harmless the said LESSOR from and against any and all claims, suits, actions,
damages, and/or causes of action arising during the term of this Lease for any
personal injury, loss of life and/or damage to property sustained in or about
the demised premises, or the buildings and improvements thereon or the
appurtenances thereto, or upon the adjacent sidewalks and streets, and from and
against all costs, counsel fees, expenses and liabilities incurred in and about
any such claim, the investigation thereof, or the defense of any action or
proceeding brought thereon, and from and against any orders, judgments and/or
decrees which may be entered therein.
POLLUTION: It is understood and agreed that it shall be the
responsibility of the LESSEE to comply with all pollution control laws and
regulations.
DEFAULT AND TERMINATION: If the LESSEE shall fail to keep and perform
any of the covenants, conditions and agreements herein provided to be performed
by said LESSEE, and such default shall continue for a period of 30 days, the
LESSOR shall serve upon said LESSEE notice in writing of such default; and if
such default shall then continue without being wholly remedied for a period of
10 days after the service of such notice, the LESSOR may at its option without
further notice, declare this Lease ended and null and void. Thereupon the LESSOR
is authorized to re-enter and repossess the leased premises and the building and
improvements thereon, either with or without legal process, and the LESSEE does
in such event hereby waive any demand for possession of the leased premises, and
agrees to surrender and deliver up said above described premises and property
peaceably to said LESSOR. In the event of such forfeiture, the LESSEE shall have
no claim whatsoever against the LESSOR by reason of improvements made upon the
premises, rents paid, or from any other cause whatsoever. The provisions of this
paragraph shall not be construed so as to divest the LESSOR, in the event of
such default, of any legal right and remedy which they may have by statutory or
common law, enforceable at law or in equity, it being intended that the
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provisions of this paragraph shall afford to the LESSOR a cumulative remedy in
addition too such other remedy or remedies as the law affords lessors when the
terms of a lease have been broken by the LESSEE. The LESSEE recognizes the
validity and applicability of the summary remedies provided by the statutes of
the State of Florida for the protection of landlords and enforcement of
landlords' rights.
INSPECTION OF PREMISES: The LESSEE shall permit the LESSOR or its
agents to enter the said demised premises at all reasonable hours, for the
purpose of inspecting the leased property, or of making repairs that the LESSEE
may neglect or refuse to make in accordance with the agreements, conditions,
covenants and terms hereof, and also for the purpose of showing the premises to
persons wishing to purchase the same.
PERFORMANCE OF COVENANTS AND CONDITIONS: Failure of the LESSOR to
insist upon the strict performance of any of the covenants, conditions and
agreements of this lease in any one or more instance shall not be construed as a
waiver or relinquishment in the future of any such covenants, conditions and
agreements. LESSEE covenants that no surrender or abandonment of the demised
premises or of the remainder of the term herein shall be valid unless accepted
by the LESSOR in writing. The LESSOR shall be under no duty to re-let the said
premises in the event of an abandonment or surrender or attempted surrender of
the leased premises by the LESSEE. Upon the LESSEE'S abandonment or surrender or
attempted surrender of the leased premises, the LESSOR shall have the right to
re-take possession of the leased premises or any part thereof, and such
re-taking of possession shall not constitute an acceptance of the LESSEE'S
abandonment or surrender thereof. It is not intended by the provisions of this
paragraph to relieve the LESSOR, in the event of such re-taking of possession of
the premises, of the duty imposed upon it by law of making a reasonable effort
to mitigate damages resulting from default by the LESSEE. The prompt and
punctual performance by the LESSEE of the term and provisions of this lease is
of the very essence of this agreement.
BANKRUPTCY OF LESSEE; Should the LESSEE be adjudged bankrupt, or make
voluntary assignment for the benefit of creditors, or if a receiver or trustee
in bankruptcy be appointed for the property of LESSEE, and such receiver or
trustee is not discharged within sixty (60) days after date of appointment, then
the LESSOR shall have the right, at its option, of terminating the lease upon
giving LESSEE thirty (30) days written notice of LESSOR'S election to exercise
said option, and upon the expiration of such period of thirty (30) days this
lease shall cease and terminate.
NOTICE OF NON-PAYMENT OF RENT: Notice to be given for defaults
heretofore mentioned by the LESSEE does not refer to non-payment of rent. Should
the LESSEE permit the rent to be in arrears and unpaid for thirty (30) days
after the same shall become due and payable, then it is mutually agreed and
covenanted that in such violation of the lease, the LESSOR may terminate the
lease after giving written notice of non-payment of rent for an additional
period of ten (10) days.
DAMAGES, ETC.: It is expressly agreed and understood by and between the
parties to this agreement that the landlord shall not be liable for any damage
or injury by water, which may be sustained by the said tenant or other person or
for any other damage or injury resulting from the carelessness, negligence, or
improper conduct on the part of any other tenant or agents, or employees, or by
reason of the breakage, leakage, or obstruction of the water, sewer or soil
pipes, or other leakage in or about the said building.
REMOVAL OF SPECIAL USE FIXTURES; The LESSOR agrees that LESSEE shall
have the peaceable possession of the herein demised premises during the term of
this lease and that all special use fixtures erected in or attached to the
premises by the LESSEE may be removed by the LESSEE at the termination of this
lease; provided: (a) the LESSEE shall not then be in default in the performance
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of any of its agreements herein, (b) that such removal shall not permanently
injure the building and if area of removal is restored to LESSOR'S
specifications, and (c) that the removal shall be made before the expiration of
this lease or any extension thereof.
PERSONAL PROPERTY; All personal property placed or moved in the
premises above described shall be at the risk of the LESSEE or owner thereof,
and the LESSOR shall not be liable for any damage to said personal property, or
to the LESSEE arising from the bursting or leaking of water pipes, or from any
act of negligence of any co-tenant of the building or any other person
whomsoever.
CONDITION OF PREMISES; LESSEE acknowledges that the premises have been
received in thoroughly good order, tenable condition and repair, of which the
execution of this lease and taking possession thereunder shall be conclusive
evidence and that no representation as to the condition of said premises has
been made by the LESSOR, and that no obligation as to the repairing, adding to,
or improving said premises has been made by the LESSOR, and no oral arrangements
have been entered into in consideration of making this lease, and that said
lease contains a full statement of the obligations of both parties hereto.
FIRE, HURRICANE, CONDEMNATION; There shall in no event attach any
liability to or upon the LESSOR herein nor shall it be responsible for any
damage caused by water or hurricane or for any other cause to the leased
premises or to the personal property in same. In case said premises or building
or any part thereof shall be destroyed or so damaged by windstorm, flood, fire
or other cause as to be unfit for use, said LESSOR shall have the option to
terminate this lease or to repair and rebuild the said premises, remitting the
rents hereby reserved or a fair and just proportion thereof, according to the
damage sustained, until the said premises are reinstated and made fit for
occupancy and use, it being understood that LESSOR shall have a maximum of
ninety (90) days to reinstate and make said premises fit for occupancy and use.
If the whole or any part of the demised premises shall be taken or condemned by
any competent authority for any public or quasi-public use or purpose by the
exercise of the power of eminent domain, then and in that event the term of this
lease shall cease and terminate from the date when possession of the part so
taken shall be required for such purpose and without apportionment of the award.
The then current rent, however, shall in such case be equitably reduced in
direct proportion with the amount of floor space taken. Provided, however, that
should the part taken be such as to render the balance of leased property leased
unfit for use by the LESSEE, then this lease shall forthwith terminate upon the
taking of physical possession by the condemnor.
GOVERNMENT; UNDERWRITERS; COMPLIANCE; The tenant shall promptly execute
and comply with all statutes, ordinances, rules, orders, regulations, and
requirements of Federal, State and City Government and of any and all their
departments and bureaus applicable to said premises, for the corrections,
prevention, and abatement of nuisances or other grievances in, upon, or
connected with said premises during said term: and shall also promptly comply
with and execute all rules, orders, and regulations of the Southern Underwriters
Association for the prevention of fires, at tenant's own cost and expense.
NO JANITOR SERVICE; It is further understood and agreed by and between
the parties hereto that the LESSOR shall not be required to furnish any janitor
services to or for the premises.
CHARGES; It is understood and agreed between the parties hereto that
any charges against the LESSEE by the LESSOR for services or for work done on
the premises by order of the LESSEE or otherwise accruing under this contract
shall be considered as rent due and shall be included in any lien for rent due
and unpaid.
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MAINTAIN PREMISES; LESSEE hereby accepts the premises in the condition
they are in at the beginning of this lease , and agree to maintain said premises
in the same condition, order and repair as they are at the commencement of said
term, excepting only reasonable wear and tear arising from the use thereof under
this agreement, and to make good to said LESSOR immediately upon demand any
damage to plumbing, electrical, air-conditioning, other equipment, other
fixtures, or of the building, caused by any act or neglect of LESSEE, or of any
person or persons in the employ or under the control of LESSEE. The LESSEE shall
be responsible for all maintenance and repair of the air conditioning, exterior
doors, garage doors, electrical wiring, lights, emergency lighting, windows and
toilets. The LESSEE at its own expense shall at all times keep the paved area
located in front and to the rear of the leased premises broom clean and free of
encumbrances, merchandise, dirt, trash and rubbish. There will be no outside
storage, permanent or temporary. In the event that this condition is violated,
LESSEE agrees that the LESSOR is to have the right to have any such supplies or
equipment taken away and stored at a location of the LESSOR'S choice at the cost
of the LESSEE and with no liability to the LESSOR. No parking will be permitted
on the landscaped areas or grass.
LEASEHOLD IMPROVEMENTS: Any leasehold improvements made by the LESSEE,
including air conditioning shall become the property of the LESSOR at the
termination of this Lease. No leasehold improvements shall be removed from this
property without prior written approval from the LESSOR. For the purposes
herein, leasehold improvements shall not include movable office furniture,
equipment, records, stored goods or any other items not attached to the
building.
NO RECORDING; This lease shall not be recorded by the LESSEE and if it
is recorded it shall be considered null and void and shall not constitute notice
to third parties, but such recording shall not relieve the LESSEE, its
successors and assigns, of any obligation hereunto.
NOTICE; It is understood and agreed between the parties hereto that
written notice mailed or delivered to the premises leased thereunder shall
constitute sufficient notice to the LESSEE and written notice mailed or
delivered to the office of the LESSOR shall constitute sufficient notice to the
LESSOR, to comply with the terms of this contract.
ACCELERATION; If LESSEE shall fail to pay any month's installment of
rent for a period of thirty (30) day after the same becomes due and payable then
all the installments of rent for the whole term hereof shall, at the option of
the LESSOR, or its assigns become due and payable upon the expiration of mailing
of ten (10) days written notice of acceleration if the delinquent rent is not
received by the LESSOR during said ten (10) day period.
TIME IS OF THE ESSENCE; Time of performance by the LESSEE of each and
every foregoing provision and covenant herein contained is and shall be forever
construed as of the very essence of this lease. This lease shall be binding upon
the parties hereto, their heirs, executors, administrators, successors and
assigns, respectively.
TENANT CAPITAL IMPROVEMENTS; LESSOR shall at its own expense make the
following improvements to the said premises:
To Be Determined
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IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
the day, month and year first above written.
Signed, Sealed and Lessor:
Delivered in the By: /s/ Xxxxxxxxx Xxxxxx
---------------------------------------
Xxxxxxxxx Xxxxxx, Property Manager
Presence of: Coral Center
_________________________ Lessee:
By: /s/ Xxxxxx Xxxxxx
---------------------------------------
_________________________ PDC Innovative Industries, Inc.
Xxxxxx Xxxxxx, President
By: /s/ Xxxxxxx X. Xxxxx
---------------------------------------
PDC Innovative Industries, Inc.
Xxxxxxx X. Xxxxx, C. E. O.
