LEASE AGREEMENT
THIS LEASE AGREEMENT is made at Charleston, South Carolina, on this 19th
day of November , 1996, by and between Xxxxxxxx & Xxxxxx Xxxxxxxx hereinafter
referred to as "Landlord") and Envirometrics Products Company (hereinafter
referred to as "Tenant").
1. PREMISES:
(a) Landlord does hereby lease to Tenant and Tenant hereby leases from
Landlord that certain space (hereinafter referred to as the "Premises"),
consisting of approximately 1,800 square feet of floor area. The location and
dimensions of said Premises are delineated in red on Exhibit "A", which is
attached hereto and incorporated herein by reference. Said Premises are part of
that certain retail/office complex known as Oakbrook Center, in the County of
Dorchester, City of Summerville , South Carolina (hereinafter said complex is
referred to as "Shopping Center").
(b) This lease is subject to the terms, covenants and conditions herein set
forth, and the Tenant covenants as material part of the consideration for this
lease to keep and perform each and all of said terms, covenants and conditions
by it to be kept and performed.
2. USE OF PREMISES:
(a) Tenant shall use the premises for light assembly
(b) Tenant agrees that the premises shall be open for business for the
purpose described herein, operating during usual business hours, within one
hundred twenty (120) days of the date of this Lease, or otherwise as shall be
mutually agreed upon by the parties. In the event that Tenant shall not comply
with this subparagraph, Landlord shall have the sole option to terminate this
Lease upon five (5) days written notification to Tenant, and thereafter the
parties shall be returned to their original status as if the Lease had never
been executed. In the event that the Landlord shall exercise its option
hereunder, Landlord shall have the right to retain all sums which Tenant has
paid hereunder as liquidated damages, it being agreed by the parties that said
sum is a fair and equitable estimate as to the amount of damages which Landlord
shall suffer as a result of Tenant's breach hereof.
3. TERM:
This lease shall be for a term of eight months, 15 days commencing December
1. 1996 and ending August 14, 1997
4. MINIMUM RENT:
(a) Tenant agrees to pay Landlord as a Minimum Rent, without notice or
demand, the monthly sum of six hundred dollars (S600) GROSS LEASE ($4.00 per sq.
ft) .
Rent is payable on the first (St.) day of each month.
5. CONSIDERATION:
Concurrently with the execution of this Lease, Tenant shall deposit with
Landlord a sum equivalent to the first ($ n/a ) months rent and the last ($ n/a)
months rent. 0.0 -($ 0.0 shall be held by Landlord as security for the faithful
performance by Tenant of all the terms, covenants and conditions of this Lease
to be kept and performed by Tenant during the term hereof - If Tenant defaults
with respect to any provision of this Lease, including, but not limited to, the
provisions relating to the payment of rent, Landlord may, but shall not be
required to use, apply or retain all or any part of this security deposit for
the payment of any rent or any other sum in default, or for the payment of any
amount which Landlord may spend or become obligated to spend by reason of
Tenant's default, or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default. If any portion of said
deposit is so used or applied, Tenant shall, within five(5)days after written
demand therefor, deposit cash with Landlord in an amount sufficient to restore
the security deposit to its original amount, and Tenant's failure to do shall be
a default under this Lease.
6. CONDITION OF PREMISES:
Tenant shall not make any repairs, alterations, or additions to Premises or
enter into any contract for repairs, alterations, or additions without first
procuring Landlord's written consent and delivering to Landlord plans and
specifications prepared by licensed architect as well as copies satisfactory to
Landlord of indemnification against liens, costs, damages, and expenses as may
be required by Landlord. At it's own expense tenant shall obtain all requisite
building and other permits before starting any work in or upon the premises.
Tenant shall, in all events, provide Landlord with professionally prepared
drawings bearing the seal of an architect or engineer currently licensed in and
by the State of South Carolina before -Tenant, its representative, agent, or
contractor starts any work in or upon the premises. The aforesaid drawing shall
include plumbing, electrical, climate control, insulation, wall structure,
finish, materials and all other specifications intended to be included in
improving and/or completing the premises. Landlord shall have the right of final
approval of any such plans for improving and/or completing the premises.
9. WASTE, NUISANCE OR UNLAWFUL USE:
Tenant shall not commit, or allow to be committed, any waste on the
Premises, create or allow any nuisance to exist on the Premises, or use or allow
the Premises to be used for any unlawful purpose.
10. PAYMENT OF UTILITIES:
Tenant shall pay for and be liable for all utilities furnished the Premises
during the term of this Lease, or any extension thereof, including, but not
limited to, electricity, gas, water and telephone service. In the event that
utilities are not separately metered, Tenant agrees to pay his proportionate
share of such utilities based upon the formula set forth in paragraph 7 (b)
hereof.
1. REPAIRS AND MAINTENANCE:
Tenant shall at it's own expense, maintain and keep the Premises,
including, but not limited to, the windows, doors, skylights, storefront, air
conditioners or heaters, and all interior walls in good repair. The same shall
not be altered, repaired or changed without he written consent of the Landlord,
which shall not be reasonably withheld. Landlord shall maintain the building
roof and all exterior walls in good condition, subject to the terms of Paragraph
7 hereof. All alterations, improvements and changes that may be done with the
consent of the Landlord, and shall remain upon and be surrendered with the
Premises at the termination of the Lease herein. HVAC replacement, due to age,
Landlord's responsibility.
12. DELIVERY, ACCEPTANCE, & SURRENDER OF PREMISES:
Landlord represents that the Premises are in a condition fit for the uses
hereinabove described. Tenant agrees to accept the Premises on possession as
being in a good state of repair and in sanitary condition. At the termination of
this Lease, by the expiration thereof, or otherwise, the Tenant shall deliver up
the Premises to the Landlord, reasonable wear and tear and casualty excepted.
Tenant agrees to pay for all damages to the appurtenances thereto during the
term of this Lease.
13. TOTAL OR PARTIAL DESTRUCTION OF PREMISES:
Partial destruction of the Premises shall not render this Lease void or
voidable, or terminate it, except as herein provided. If the Premises are
partially destroyed during the term of this Lease, Landlord shall repair them,
when such repairs can be made in conformity with Local, State and Federal laws
and regulations, within sixty (60) days of the partial destruction. Rent for the
Premises will be reduced proportionately to the extent to which the repair
operations interfere with the normal conduct of the said time limit, Landlord
may, at its option, make them at a reasonable time and continue this Lease in
effect, with proportional rent rebate to he Tenant, as herein provided. If the
repairs cannot be made within the time period allowed, and Landlord elects not
to make them in a reasonable time, either party hereto has the option to
terminate this Lease, in accordance with the termination provisions herein.
14. LANDLORD'S ENTRY FOR INSPECTION AND MAINTENANCE:
Landlord reserves the right to enter upon the Premises at reasonable times
to inspect them, to perform required maintenance and repair, and to make
additions and alterations to any part of the building of which the Premises is
located, and Tenant agrees to permit Landlord to do the same. Landlord may, in
connection with such alterations, additions, or repairs, erect scaffolding,
fences, and similar structures, post the relevant notices, and place moveable
equipment without any obligation to reduce Tenant's rent for the Premises during
such period, and without incurring liability to Tenant for disturbance of their
quiet enjoyment of the Premises or their loss of occupation thereof.
15. TRADE FIXTURES:
Tenant may install and maintain, during the term of this Lease, trade
fixtures and other equipment necessary for Tenant' use of the building, as
hereinabove provided; provided that such fixtures, by reason of the manner in
which they are affixed, do not become an integral part of the Shopping Center or
of the Premises herein. Tenant may, if not in default hereunder, and from time
to time during the term hereof, alter or remove any such trade fixtures so
installed by them. Said trade fixtures or equipment of the Tenant shall be
removed at the termination or expiration of this Lease, by the Tenant in an
expeditious manner. Any damage to the Premises caused by any such installation,
alteration, or removal of any such trade fixture or equipment shall be promptly
repaired by the Tenant at their own expense.
16. POSTING OF SIGNS:
Landlord reserves the right to place any and all signs reasonable necessary
for the sale of the Shopping Center upon said Shopping Center during the term of
the Lease, provided however, that no such signs may be posted in the Premises,
or to place any and all reasonable signs on the Premises at any time within
ninety (90) days of the expiration of this Lease, for rental or lease of said
Premises.
17. RESTRICTIONS ON POSITION OF SIGNS:
Tenant will not construct or place, or permit to be constructed or placed,
any signs, awnings, marquees, or other structures projecting from the exterior
of the Premises without the written consent of the Landlord thereto and subject
to all governmental law or regulations for the posting of said signs. Tenant
further agrees to remove all signs, displays, advertisements, or decoration
which they have placed, or permitted to be placed on the Premises which, in the
opinion of the Landlord are offensive or otherwise objectionable. If Tenant
fails to remove such signs, displays, advertisements, or decorations within
sixty (60) days of receiving written notice from Landlord to do the same,
Landlord reserves the right to enter the Premises and remove the same, at
Tenant's expense.
18. HOLD HARMLESS AND NON-LIABILITY:
Landlord shall not be liable for any loss, damage, or injury, or for any
liability or damage claims for injury to persons, including Tenant, or any
officer, agent, employee, independent contractor, invitee or guest of Tenant, or
any other persons acting at their direction or in concert with them; or for any
property damage form any cause whatsoever related to Tenant's occupancy of the
Premises, including those arising out of damages or losses occurring on
sidewalks or other common areas of the Shopping Center arising out of any act or
negligence of Tenant, or any officer, agent, employee, independent contractor,
guest or invitee of Tenant, as well as any damages resulting form Tenant's use
of the premises during the term of this Lease, or any extension thereof.
Tenant hereby agrees to indemnify and hold harmless Landlord against any
and all such claims for damages, including all costs, attorney's fees and
liabilities incurred in the defense of any such claim or claims. In case any
such action is brought against Landlord, or any officer, agent or employee of
Landlord, Tenant agrees to defend Landlord from any and all such claim or claims
made by any persons whatsoever resulting from or arising out of Tenant's use and
occupancy of the Premises herein, at Tenant's sole expense.
19. ASSIGNMENT OR SUBLEASE:
Tenant agrees not to assign or sublease the premises herein, or any part
thereof, without first obtaining the written consent of the Landlord hereto.
Landlord expressly covenants that such consent shall not be unreasonably or
arbitrarily refused. One consent by the Landlord shall not be a consent to a
subsequent assignment, sublease, or occupation by any other persons. Tenant's
unauthorized assignment, sublease, or license to occupy the Premises herein
shall be void and shall terminate the Lease, at the option of Landlord. Tenant's
interest in this lease is not assignable to operation of law, nor is any
assignment of their interest herein, without the written consent of the
Landlord.
20. DEFAULTS:
The occurrences of any of the following shall constitute a material default
and breach of this Lease.
(a) The vacation or abandonment of the Premises herein by Tenant.
(b) The failure by Tenant to pay installment of rent, or to make any other
payments required under this Lease, where such failure continued for a period of
ten (10) days after written notice thereof by the Landlord to the Tenant.
(c ) Failure by Tenant to observe or perform any of the provisions of this
Lease to be observed or performed by the Tenant, except the Provision concerning
the payment of rent, where such failure continues for a period of thirty (30)
days after written notice thereof by the Landlord to the Tenant; provided,
however, that if the nature of such default is such that the same cannot
reasonably be cured within such thirty (30) day period, Tenant shall not be
deemed to be in default if Tenant shall, within such period, commence such cure,
and thereafter diligently 'prosecute the same to completion.
(d) The making by Tenant of any general assignment for the benefit of
creditors; the filing be or against Tenant of a petition to have Tenant adjudged
a bankrupt, or of a petition for reorganization or arrangement, under any law
relating to bankruptcy, unless the same is dismissed within ninety (90) days;
the appointment of a trustee or receiver to take possession of substantially all
of Tenant's assets located at the Premises or of Tenant's interest in this
Lease, where possession is not restored to the Tenant within ninety (90) days;
or the attachment, execution, or other judicial seizure of substantially all of
Tenant's assets located on the Premises, or of Tenant's interest in this Lease,
where such seizure is not discharged within ninety (90) days.
21. LANDLORD'S REMEDIES ON TENANT BREACH:
If Tenant shall breach this Lease, pursuant to the terms of Paragraph 20
above, Landlord shall have the following remedies, in addition to any other
rights or remedies they may have either by law or otherwise:
(a) Landlord may re-enter the Premises immediately, and remove therefrom
all Tenant's personal property. Landlord may store said property at a public
warehouse at Tenant's expense, or for Tenant's account.
(b) After re-entry, Landlord may terminate the Lease upon giving thirty
(30) days prior written notice of such termination to Tenant. Re-entry only,
without notice of termination, will not terminate this Lease.
( c) After re-entry upon the Premises, Landlord may re-Lease the Premises,
or any part thereof, for any term, without terminating the Lease, upon such rent
and upon such terms and conditions as they may choose. Landlord may make any
alterations and repairs to the Premises that are necessary to the Premises, as
herein provided, Tenant shall be liable for, in addition to any other liability
for breach of this Lease, all expenses incurred to restore unit to its original
condition, which is incurred by the Landlord. In addition, Tenant shall be
liable to Landlord for the difference between rent received by Landlord - during
the reorganization or arrangement, under any law relating to period of
re-leasing, and the monthly installment of rent that are due by Tenant during
the term of this Lease.
(d) In the event that Landlord chooses to re-lease the Premises, pursuant
to Subparagraph C above, the Landlord may, at their option, apply any rent
received as a result thereof, in the following manner:
(1) Reduce indebtedness of the Tenant to the Landlord under this Lease, not
including indebtedness for rent;
(2) For expenses of the re-leasing, including any expenses of alterations
and repairs made as a result thereof;
(3) Rental installments due under this Lease;
(4) Payment of any future rent due under this Lease, as it becomes due.
(e) Landlord may, at any time after such re-leasing, terminate the Lease
for the breach because of which they have reentered and re-lease the Premises.
Upon terminating this Lease for Tenant's breach hereof, Landlord may recover all
damages proximately resulting from the breach, including the cost of recovering
the Premises, any rental installments not paid by the new Tenant, and the work f
or the balance of this Lease over the reasonable rental value of the Premises
will remain during the lease term.
(f) Upon re-entry, Landlord may procure the appointment of a receiver to
take possession of and collect rents and profits from Tenant's business. If
necessary to collect such rents and profits, the receiver may carry on Tenant's
business and take possession of Tenant's personal property used in the business,
including inventory, equipment, trade fixtures, and furnishings, and use them in
the business without compensating the Tenant therefor. Proceedings for
appointment of a receiver, and the conducting by him of Tenant's businesses,
shall not terminate this Lease unless Landlord has given written notice of such
termination, as provided herein.
(g) Tenant hereby waives all claims for damages, which may be caused by
Landlord's re-entry, taking possession of the Premises herein and will save
Landlord harmless from loss,costs or damages occasioned by Landlord thereby. Any
such re-entry or retaking of possession of the premises shall not be considered
or construed to be a forcible entry.
22. PARKING AN COMMON AREAS:
(a) Landlord covenants that an area approximately equal to the common and
parking areas as shown on the attached Exhibit "A" shall be at all times
available for the nonexclusive use of Tenant during the full term of this Lease,
or any extension thereof, provided that the condemnation or other taking by any
public authority, or sale in lieu of condemnation, of any or all of such common
and parking area shall not constitute a violation of this covenant. Landlord
reserves the right to change the entrances, exits, traffic lanes and the
boundaries and locations of such parking area or areas, provided however, that
anything to the contrary notwithstanding, said parking area or areas shall at
all times be substantially equal or equivalent to that shown on the attached
Exhibit "A".
(b) Landlord shall keep said parking and common areas in a neat, clean and
orderly condition, and shall repair any damage to the facilities thereof, but
all such expenses in connection with said parking and common areas shall be
charged and prorated as addition rent as set forth in Paragraph 7 hereof.
( c) Tenant shall, for its use and benefit, and for the use and benefit of
its agents, customers, licensees, and subtenants, have the nonexclusive right in
common with Landlord, and other present and future owners, tenants, and their
agents, customers, licensees and subtenants, to use said common and parking
areas during the entire term of this Lease, or any extension thereof, for
ingress and egress, and automobile parking only.
(d) Tenant shall, in the use of said common and parking areas, comply with
such reasonable rules, regulations and charges for parking as the Landlord may
adopt from time to time of the orderly and proper operation of said common and
parking areas. Such rules may include, but shall not be limited to, the
following:
(I) The prohibition of employee parking in the common area and parking
areas; and
MERCHANT'S ASSOCIATION:N/A
24. PERSONAL PROPERTY TAXES:
Tenant shall pay before they become delinquent all taxes and assessments
imposed on any personal property or trade fixtures belonging to Tenant and
located on said Premises.
25. ATTORNEY'S FEES:
If Landlord shall file an action to enforce any covenant of this Lease, or
for breach of any covenant herein, including any action for recovery of rent
herein, Tenant agrees to pay Landlord the reasonable sum for accrued from the
commencement of such action and shall be paid whether or not such action is
prosecuted to judgment.
26. NOTICE:
Notice is given pursuant to the provisions of this Lease, when necessary to
carry out the provisions, shall be in writing, and delivered personally to the
person to whom the notice is to be given, and mailed postage prepaid, addressed
to such person(s). Landlord's address for the purpose of such notice shall be:
Atlantic International
0000 Xxxxxxxxx Xxxxx
Xxxxx 0-X
Xxxxx Xxxxxxxxxx, XX 00000
or at such other address or addresses as Landlord may designate to Tenant in
writing from time to time.
Tenant's address for the purpose of such notice shall be the Premises
herein, or : ENVIROMETRICS PRODUCTS CO., 0000 XXXXXXXXXX XXXX., XXXXXXXXXX, XX
00000 OFFICE:553-9554
27. HEIRS, SUCCESSORS AND ASSIGNS:
This Lease, and the covenant s and conditions hereof, apply to and are
binding upon the heirs, successors, legal representatives, and assigns of the
parties.
28. SALE OF PREMISES BY LANDLORD:
In the event of any sale of the Premises by Landlord, Landlord shall be and
is hereby entirely freed and relieved of all liability under any and all of its
covenants and obligations contained in or derived rom this Lease arising out of
any act, occurrence or omission occurring after the consummation of such sale;
and the purchase, at such sale or any subsequent sale of the Premises shall be
deemed, without further agreement between the parties and any such purchaser, to
have assumed and agreed to carry out any and all of the covenants and
obligations of the Landlord under this Lease.
29. LATE CHARGES:
Tenant hereby acknowledges that late payment by Tenant to Landlord of rent
or other sums due hereunder will cause Landlord to incur costs not contemplated
by this Lease, the exact amount of which will be extremely difficult to
ascertain. Such costs include, but are not limited to, processing and accounting
charges, and late charges which may be imposed upon Landlord by terms of any
mortgage or deed of trust covering the Shopping Center. Accordingly, if any
installment of rent or any sum due from Tenant shall not be received by
Landlord, or Landlord's agent, within five (5) days after the due date set forth
herein, then Tenant shall pay to Landlord a late charge in the amount of ten
(10%) percent of such overdue amount, plus any attorney's fees and/or costs
incurred by Landlord by reason of Tenant's failure to pay rent and/or other
charges when due. The parties hereby agree that such late charges represent a
fair and reasonable estimate of the cost that Landlord will incur by reason of
the late payment by Tenant. Acceptance of such late charges of the Landlord
shall in no event constitute a waiver of Tenant's default with respect to such
overdue amount, nor prevent Landlord from exercising any other rights and
remedies granted hereunder.
30. COMPLETE AGREEMENT:
This Lease contains all of the agreements of their parties hereto with
respect to any matter covered or mentioned in this Lease, and there are not
prior agreements or understandings which have not been incorporated herein. No
provision of this Lease may be amended or added to except by the agreement in
writing signed by all the parties hereto or their respective successors in
interest.
31. CHOICE OF LAW:
This Lease shall be governed by the Laws of the State of South Carolina.
32. ATTORNMENT:
This Lease may at Landlord's option, be subordinate to any ground lease,
mortgage, deed of trust or other hypothecation or security now or hereafter
placed upon the real property of which the Premises are a part, and to any and
all advances made on a security thereof, and to all renewals, modifications,
consolidations, replacements, and extensions thereof. Notwithstanding such
subordination, Tenant's right to quiet possession of the Premises shall not be
disturbed if Tenant is not in default and so long as Tenant shall pay the rent
and observe and perform all of the provisions of this Lease, unless this Lease
is otherwise terminated pursuant to its terms. If any mortgagee, trustee or
ground lessor shall elect to have this Lease prior to the lien of its mortgage,
deed of trust, or ground lease, and shall give written notice thereof to Tenant,
this Lease shall be deemed prior to such mortgage, deed of trust or ground
lease, whether this Lease is dated prior to or subsequent to the date of said
mortgage, deed of trust or ground lease, or the date of recording thereof.
Tenant agrees to execute any and all documents required to effectuate an
attornment, a subordination or to make this lease subsequent to the lien of any
mortgage, deed of trust or ground lease, as the case may be. Tenant's failure to
execute such documents within ten (10) days after written demand by Landlord
shall constitute a material default by Tenant hereunder, or, at Landlord's
option, Landlord shall execute such documents on behalf of Tenant as Tenant's
attorney in fact. For that purpose, Tenant does hereby make, constitute and
irrevocable appoint Landlord as Tenant's attorney in fact and in Tenant's name,
place and stead, to execute such documents in accordance with this paragraph.
33. OPTION TO RENEW: (See Attached Addendum)
(a) Landlord hereby grants to tenant an option to renew this Lease for ONE
additional period(s) of ONE years each after the expiration of the term of this
Lease, under the same terms, conditions and covenants so far as is applicable,
as in this Lease, except that any rents payable for the first Option Period
shall be calculated in the same manner as set forth in Paragraph 4 hereof;
except that any percentage limitations on the increase in rent to be effective
during the first and/or second Option Periods shall be negotiated by the parties
at the time any such Option Period takes effect, and shall be mutually agreed
upon by the parties. If Tenant exercises the options for the first and/or second
Option Periods, and if at the commencement of the second and/or third Option
Periods, Landlord and Tenant have not reached an agreement, despite their best
efforts and good faith to do so, as to the applicable percentage limitations non
the increases in the rental to be paid during such Option Periods, or if there
shall then be a dispute between Landlord and Tenant as to the good faith of the
other party to so negotiate, Tenant shall have the obligation to pay the rental
during such Option Periods as the same would be calculated pursuant to Paragraph
4 hereof, without reference to any percentage limitations contained therein. In
the event percentage eliminatio's shall be agreed upon at any time after Tenant
shall have exercised its option for the second and/or third Option Periods, any
overpayment or underpayment by Tenant shall be immediately adjusted.
(b) Each option provided for herein shall be exercised by written notice
form the Tenant to the Landlord setting forth the Tenant's election to exercise
the option, and delivered to the Landlord in person or by registered or
certified mail at least ninety (90) days prior to the expiration of the term of
this Lease, or any prior option Period.
34. EMINENT DOMAIN:
Eminent domain proceedings resulting in the condemnation of a part of the
Premises leased herein, the rest usable by Tenant for the purpose of the
business of which the Premises are leased herein, will not terminate this Lease
unless Landlord, at this option, terminates it by giving written notice of
termination to Tenant. The effect of such condemnation, should such option not
be exercised, will be to terminate the Lease as to the portion of the premises
condemned, and the Lease shall remain in effect as to the remainder of the
Premises. Tenant's rental for the remainder of the Lease term shall, in such
case, be reduced by the amount of the usefulness of the Premises to him for such
business purposes is reduced. All compensation awarded in the eminent domain
proceedings as the result of such condemnation shall be the Landlords. Tenant
hereby assigns and transfers to Landlord any claim that they may have for
compensation for damages as a result of such condemnation.
35. AUTHORITY OF TENANT
If Tenant is a corporation, each individual executing this Lease on behalf
of said corporation, represents and warrants that he is duly authorized to
exercise and deliver this Lease on behalf of said corporation, in accordance
with the By-Laws of said corporation, and that this Lease is binding upon said
corporation.
36. TENANT'S STATEMENT:
Tenant shall, at any time f rom time to time, upon not less than ten (10)
days prior written notice from Landlord, execute, acknowledge and deliver to
Landlord a statement in writing:
(a) Certifying that this Lease is unmodified and in full force and effect
(or, if modified, stating the nature of such modification and certifying that
this Lease as so modified is in full force and effect), and the date to which
the rental and other charges are paid in advance, if any and
(b) Acknowledging that their are not, to Tenant's knowledge, any incurred
defaults on the part of Landlord hereunder, or specifying such defaults if any
are claimed, and
(c) Setting forth the date of commencement of rents and expiration of the
term hereof. And any such statement may be relied upon by the prospective
purchaser or encumbrancer of all or any portion of the Shopping Center.
37. HOLDING OVER:
It is expressly understood by all parties that Tenant shall not be
permitted to holdover at the end of the lease term. It is further understood by
all parties that failure to re-negotiate or otherwise enter into a new lease
agreement before ten (10) days from the expiration of this lease constitutes
termination of this lease at the end of the lease period, and as such, Tenant
understands that it shall vacate the demised premises at the exact end of the
lease term. In addition, tenant will pay a 10% surcharge for each month is in
default.
38. INSURANCE REQUIREMENTS:
(a) Tenant shall, at Tenant's expense, obtain and keep in force during the
term of this Lease a policy or Bodily Injury and Property Damage Insurance with
a company or companies approved by Landlord insuring tenant and Landlord against
any liability arising out of the use, occupancy or maintenance of the Premises
an all other areas appurtenant thereto. Such insurance shall be in an amount not
less than $1,000,000, combined single limit. Tenant shall name Landlord as an
addition insured, and shall provide Landlord with a certificate of insurance
within thirty (30) days hereof. Notwithstanding anything herein to the contrary,
the limits of said insurance shall not limit the liability of Tenant hereunder.
(b) Landlord shall obtain and keep in force during the term of this Lease a
policy of Bodily Injury and Property Damage Insurance, insuring Landlord, but
not Tenant, against any liability arising out of the ownership, use, occupancy
of maintenance of the Shopping Center in an amount not less than $1,000,000,
combined single limit. The premiums for such insurance shall be paid by
Landlord, but shall be a part of the additional rent paid by Tenant provided for
in Paragraph 7 hereof.
c In addition to the insurance set forth in Subparagraph (b) hereof,
Landlord shall obtain and keep in force during the term of this Lease a policy
or policies of insurance covering loss or damage to the Shopping Center, but not
Tenant's fixtures, equipment, or tenant improvements in an amount not to exceed
the full replacement value thereof, as the same may exist from time to time,
providing protection against all perils included within the classification of
fire, extended coverage, vandalism, malicious mischief, flood (in the event same
is required by lender having a lien on the insurance industry), but not plate
glass insurance. In addition, the Lessor shall obtain and keep in force, during
the term of this Lease, a policy of rental value insurance covering a period of
one (1) year, with loss payable to Lessor, which insurance shall also cover all
real estate taxes and insurance costs for said period. The premiums for such
insurance shall be paid by Landlord, but shall be part of the additional rent
paid by Tenant as provided in Paragraph 7 hereof.
39. OTHER CONTINGENCIES:
1. TENANT WILL ACCEPT PREMISE "AS IS".
2. TENANT WILL BE ALLOWED TO CONSTRUCT PASSTHROUGH/DOORWAY IN DEMISING WALL
FROM UNIT 102 INTO UNIT 103 AND CONSTRUCT OFFICE SPACE. TENANT WILL RETURN UNIT
TO ORIGINAL CONDITION WHEN VACATED.
3.THIS LEASE IS TO EXPIRE IN CONJUNCTION WITH CURRENT LEASE FOR UNIT 102.
40. TIME: Time is of the essence in this Lease.
IN WITNESS WHEREOF, the above parties have executed this Lease on the date
first written above.
WITNESS: _____________
LANDLORD: XXXXXX XXXX AGENT FOR LANDLORD
WITNESS: _____________
TENANT(S) XXXXXX XXXXXXX, PRESIDENT
