EXHIBIT 10.13
XXXXXXX' PROPERTIES INC.
0000 XXXXX XXXXXXX XXXXX
XXXXXXXXXX, XXXXXXXXX 00000
LEASE AGREEMENT
This lease agreement, made this 8th day of June, 1994, between Xxxxxxx'
Properties Inc. (hereinafter called "Lessor"), and Consumer Credit Corp.
(hereinafter called "Tenant");
WITNESSETH, THAT
1. DEMISED PREMISES. Lessor, subject to the terms and conditions
hereof, hereby leases to Tenant the premises (hereinafter referred to as the
"Demised Premises") addressed as 0000 Xxxxx Xxxxxxx Xxxxx, Xxxxxxxxxx,
Xxxxxxxxx comprising approximately 1731 square feet of area in the building
situated at 0000 Xxxxx Xxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxxxxx (hereinafter
referred to as the "building"), to be used by Tenant for general business and
other related activities and for no other use or purpose. The Building, the
land underlying and contiguous thereto and all improvements thereon are
hereinafter referred to as the "Project".
2. TERM. Tenant takes the Demised Premises from Lessor, upon the
terms and conditions herein contained, to have and to hold the same for the
term ("Lease Term") of five (5) years commencing on or before the first day
of August 1994, and ending on the last day of July 1999, unless sooner
terminated as herein provided.
3. BASE RENT. Tenant shall pay to Lessor during the Lease a monthly
base rent of Eight Hundred and No/100ths Dollars ($800.00) from August 1,
1994 to July 31, 1996. Beginning August 1, 1996 base rent shall increase to
Nine Hundred Thirty Three and No/100 Dollars to July 31, 1999. Base rent is
due the first day of each month in advance at the office of Lessor at 0000
Xxxxx Xxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxxxxx or at such other place as may from
time to time be designated by Lessor.
4. OPERATING COSTS. Tenant shall, for the entire lease term, pay to
Lessor as additional rent, without any set-off or deduction therefrom, a pro
rata share (as defined in paragraph 1 herein) of all costs which Lessor may
incur in owning, maintaining and operating the project. Said costs are
referred to herein as operating costs and are hereby defined to include: All
real estate taxes and annual installments of special assessments payable with
respect to the Project; maintenance, repair, replacement and care of all
heating lighting, plumbing and air conditioning fixtures, equipment and
systems serving the common areas; maintenance repair and care of parking and
landscape areas, signs, snow removal, nonstructural repair and maintenance of
the exterior of the building and insurance premiums, management fees, wages
and fringe benefits for personnel employed for such work. Operating costs
shall include the yearly amortization of capital costs incurred by Lessor for
improvements or structural repairs to the Project required to comply with any
change in the laws, rules or regulations of any governmental authority having
jurisdiction, or for purposes of reducing Operating Costs, which cost shall
be amortized over the useful life of such improvements or repairs, as
reasonably estimated by Lessor. As soon as reasonably practicable prior to
the commencement of each calendar year during the Lease Term, Lessor shall
furnish to Tenant an estimate of Tenant's share of Operating Costs, if any,
for the ensuing calendar year and Tenant shall pay, as additional rent
hereunder together with each installment of monthly base rent, one-twelfth
(1/12th) of its estimated annual share of such Operating Costs. As soon as
reasonably practicable after the end of each calendar year during the Lease
Term, Lessor shall furnish to Tenant a statement of the actual Operating
Costs for the previous calendar year, including Tenant's share of such
amount, and within thirty (30) days thereafter Tenant shall pay to Lessor, or
Lessor to Tenant as the case may be, the difference between the actual and
estimated Operating Costs paid by Tenant. Tenant's share of such
excess Operating Costs for the years in which this Lease commences and
terminates shall be prorated based on the dates of commencement and
termination of the Lease Term.
5. ADDITIONAL TAXES. Tenant shall pay as additional rent to Lessor,
together with each installment of monthly base rent, the amount of any gross
receipts tax, sales tax or similar tax (but excluding therefrom any income
tax) payable, or which will be payable, by Lessor, by reason of the receipt
of the monthly base rent and adjustments thereto. As of date of lease there
are no additional taxes in effect.
6. SECURITY DEPOSIT. On the date of execution of the Lease by Tenant,
there shall be due and payable by Tenant a security deposit in the amount of
Eight Hundred Dollars ($800.00) to be held for the performance by Tenant of
Tenant's covenant's and obligations under this Lease, it being expressly
understood that the deposit shall not be considered an advance payment of
rent or a measure of Lessor's damage in case of default by Tenant. Upon the
occurrence of any event of default by Tenant or breach by Tenant of Tenant's
covenants under this Lease, Lessor may, from time to time, without prejudice
to any other remedy, use the security deposit to the extent necessary to make
good any arrears of rent and/or damage, injury, expense or liability caused
to Lessor by the event of default or breach of covenant, any remaining
balance of the security deposit to be returned by Lessor to Tenant upon
termination of this Lease.
7. UTILITIES. Lessor shall provide mains and conduits to supply
water, gas, electricity and sanitary sewage to the Demised Premises. Tenant
shall pay, when due, all charges for sewer usage or rental, garbage disposal,
refuse removal, water, electricity, gas, telephone and/or other utility
services or energy source furnished to the Demised Premises during the term
of this Lease, or any renewal or extension thereof. If Lessor elects to
furnish any of the foregoing, utility services or other services furnished or
cause to be furnished by Lessor shall not exceed the rate Tenant would be
required to pay to a utility company or service company furnishing any of the
foregoing utilities or services. The charges thereof shall be deemed
additional rent in accordance with Section 4. Landlord shall at his sole cost
and expense, cause all utilities to be separately metered for the exclusive
use of the demised premises prior to occupancy. All utilities are part of
3/net charges except electricity and gas.
8. CARE AND REPAIR OF DEMISED PREMISES. Tenant shall, at all times
throughout the terms of this Lease, including renewals and extensions, and at
its sole expense, keep and maintain the Demised Premises in a clean, safe,
sanitary and first class condition and in compliance with all applicable
laws, codes, ordinances, rules and regulations. Tenant's obligations
hereunder shall include but not be limited to the maintenance, repair and
replacement if necessary, of all lighting and plumbing fixtures and
equipment, fixtures, motors and machinery, all interior walls, partitions,
doors and windows, including the regular painting thereof, all exterior
entrances, windows, doors and docks and the replacement of all broken glass.
When used in this provision, the term "repairs" shall include replacements or
renewals when necessary, and all such repairs made by the Tenant shall be
equal in quality and class to the original work. The Tenant shall keep and
maintain all portions of the Demised Premises and the sidewalk in a clean and
orderly condition, free of accumulation of dirt, rubbish, snow and ice.
Notwithstanding, Lessor shall have sole responsibility for compliance with
any directives from jurisdictional authorities regarding fire sprinkler
systems.
If Tenant fails, refuses, or neglects to maintain or repair the Demised
Premises as required in this Lease after notice shall have been given Tenant,
Lessor may make such repairs without liability to Tenant for any loss or damage
that may accrue to Tenant's merchandise, fixtures, or other property or to
Tenant's business by reason thereof, and upon completion thereof, Tenant shall
pay to Lessor all costs plus 15% for overhead incurred by Lessor in making such
repairs upon presentation to Tenant of xxxx therefor. Lessor shall keep all
structural portions of the premises to include the foundation, exterior walls
(except plate glass or glass or other breakable materials used in structural
portions) and roof in good repair, and if necessary or required by proper
governmental authority, make modifications or replacements thereof, except that
Lessor shall not be required to make any such repairs, modifications or
replacements which become necessary or desirable by reason of the negligence of
Tenant, its agents, servants, or employees.
The Lessor shall manage all outside maintenance of the Demised Premises,
including grounds and parking areas. The cost of said maintenance shall be
prorated in accordance with Section 4 of this lease. All such maintenance
which is provided by Lessor shall be provided as reasonably necessary for the
comfortable use of occupancy of Demised Premises during business hours,
except Saturdays, Sunday, and holidays, upon the condition that the Lessor
shall not be liable for damages for failure to do so due to causes beyond its
control. Lessor shall use due diligence in the completion of all maintenance
and repairs.
9. COVENANTS OF TENANT. Tenant agrees that it shall:
A. Observe such reasonable rules and regulations as from time to
time may be put in effect by Lessor for the general safety, comfort and
convenience of Lessor, occupants and tenants of said Building.
B. Give Lessor access to the Demised Premises at all reasonable
times, without change or diminution of rent, to enable Lessor to examine the
same and to make such repairs, additions and alterations as Lessor may deem
advisable so long as said access does not substantially disrupt tenant's
business operation, and during the ninety (90) days prior to the expiration of
the term, to exhibit the premises to prospective tenants and to place upon the
door or in the windows of the Demised Premises any usual or ordinary "For Lease"
signs.
C. Keep the Demised Premises in good order and condition and
replace all glass broken by Tenant with glass of the same quality as that
broken, save only glass broken by fire and extended coverage risks, and
commit no waste on the Demised Premises.
D. Pay for all electric lamps, starters and ballasts used in the
Demised Premises.
E. Upon the termination of this Lease in any manner whatsoever,
remove Tenant's goods and effects and those of any other person claiming
under Tenant, and quit and deliver up the Demised Premises to Lessor
peaceably and quietly in as good order and condition as the same are now in
or hereafter may be put in by Lessor or Tenant, reasonable use and wear
thereof and repairs which are Lessor's obligation excepted. Goods and
effects not removed by Tenant at the termination of the Lease, however
terminated, shall be stored in the name, account and cost of tenant.
F. Except for an assignment or subletting to an affiliate or a
wholly owned subsidiary of Tenant, the Tenant may not assign this Lease, or
sublet all or any part of said Demised Premises, without the Lessor's prior
written consent, which consent shall not be unreasonably withheld. The
Lessor reserves the right, should the Tenant request such assignment or
subletting, to release the Tenant from the terms and provisions of this Lease
and the Lessor shall have (30) days to make such determination. Should the
Lessor exercise this right, the Lease shall terminate. Until termination
hereof, the Tenant will, however, still remain liable for the performance of
all the terms and conditions hereof.
G. Do not place signs on or about the demised premises without
first obtaining Lessor's written consent thereto. Landlord shall permit a
sign on the front of the building and shall permit a temporary sign to be
erected in front of the building.
H. Not overload, damage or deface the Demised Premises or do any
act which may make void or voidable any insurance on the Demised Premises or
the building, or which may render an increased or extra premium payable for
insurance.
I. Tenant may install its own lock and shall provide Lessor with
(2) keys.
J. Not make any alterations or additions to the Demised Premises
without obtaining the prior written approval of the Lessor thereto, and all
alterations, additions or improvements (including carpeting or other floor
covering which has been glued or otherwise affixed to the floor) which may be
made by either of the parties hereto upon the Demised Premises, except
movable office furniture and equipment, shall be the property of Lessor, and
shall remain upon and be surrendered with the Demised Premises, as a part
thereof, at the termination of the Lease. All fixtures and equipment
installed by Lessee may be removed by the Lessee including special
connections for plumbing and electrical work.
K. Cause to be performed by a competent service company,
preventative maintenance of all HVAC units and warehouse unit heaters serving
the Demised Premises, as recommended by the equipment manufacturer.
Tenant's obligations under this paragraph number 9 to do or not to do a
specified act shall extend to and include Tenant's obligations to see to it
that Tenant's employees, agents and invitees shall do or shall not do such
acts, as the case may be.
10. PARKING AND DRIVES. The Tenant, its employees, and invitees shall
have the nonexclusive right to use the common driveways and parking lots
along with the other tenants and customers of the building. The use of such
driveways and parking facilities are subject to such reasonable rules and
regulations as the Lessor may impose. Tenant may use maximum of three (3)
parking spaces in rear of building for repossessed vehicles for a maximum of
thirty (30) days for each vehicle.
11. CASUALTY LOSS. In case of damage to the Demised Premises or the
Building by fire or other casualty, Tenant shall give notice as soon as
possible to Lessor, who shall thereupon cause the damage to be repaired with
reasonable speed, at the expense of the Lessor subject to delays which may
arise by reason of adjustment of loss under insurance policies and for delays
beyond the reasonable control of Lessor, and to the extent that the Demised
Premises are rendered untenantable, the rent shall proportionately xxxxx,
except in the event such damage resulted from negligence of Tenant, Tenant's
employees or agents, in which event there shall be no abatement of rent. In
the event the damage shall be so extensive that the Lessor shall decide not
to repair or rebuild, this Lease shall, at the option of Lessor, be
terminated within ninety days of the date of such damage by written notice,
and the rent shall be adjusted to the date of such damage and Tenant shall
thereupon promptly vacate the Demised Premises.
12. CONDEMNATION. If the entire Demised Premises are taken by eminent
domain, this Lease shall automatically terminate as of the date of taking.
If a portion of the Demised Premises are taken by eminent domain, Lessee
shall have the right to terminate the Lease as of the date of taking by
giving written notice thereof to Lessor within ninety (90) days after such
date of taking. If Lessee does not elect to terminate this Lease, Lessor
shall, at its expense, restore the Demised Premises, exclusive of any
improvements or other changes made therein by Tenant, to as near the
condition which existed immediately prior to the date of taking as reasonably
possible, and to the extent that the Demised Premises are rendered
untenantable, the rent shall proportionately xxxxx. All damages awarded for
a taking under the power of eminent domain shall belong to and be the
exclusive property of Lessor, whether such damages be awarded as compensation
for diminution in value of the leasehold estate hereby created or to the fee
of the Demised Premises; provided, however, that Lessor shall not be entitled
to any separate award made to Tenant for the value and cost of removal of its
personal property and fixtures.
13. DELAY IN POSSESSION. If the Demised Premises shall on the
scheduled date of commencement of the Lease Term not be ready for occupancy
by the Tenant due to the possession or occupancy thereof by any person not
lawfully entitled thereto, or because construction has not yet been
completed, or by reason of any building operations, repair or remodeling to
be done by Lessor, Lessor shall use due diligence to complete such
construction, building operations, repair or remodeling and to deliver
possession of the Demised Premises to Tenant. The Lessor, using such due
diligence, shall not in any way be liable for failure to obtain possession of
the Demised Premises for Tenant or to timely complete such construction,
building operations, repair or remodeling, but the rental and other charges
payable by Tenant hereunder shall be abated until the Demised Premises shall,
on Lessor's part, be ready for the occupancy of Tenant, this Lease remaining
in all other respects in full force and effect and the Lease Term not thereby
extended.
14. MUTUAL RELEASE/WAIVER OF SUBROGATION. Lessor and Tenant each
hereby release the other from any and all liability or responsibility for any
direct or consequential loss, injury or damage to the Demised Premises, or
its contents, caused by fire or any other casualty, during the term of this
Lease, even if such fire or other casualty may have been caused by the
negligence (but not the willful act) of the other party or one for whom such
party may be responsible. Inasmuch as the above mutual waivers will preclude
the assignment of any aforesaid claim by way of subrogation (or otherwise) to
an insurance company (or any other person), each party hereto agrees if
required by said policies to give to each insurance company which has issued
to it fire and other property 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 coverage by reason of said waivers.
Tenant shall not carry any stock of goods or do anything in or about said
leased premises which will increase insurance rates on said leased premises
or the building in which the same are located. If lessor shall consent to
such use, Tenant agrees to pay as additional rental any increase in premiums
for insurance against loss by fire or extended coverage risks resulting from
the business carried on in the leased premises by Tenant. Tenant shall, at
its own expense, comply with the requirements of insurance underwriters and
insurance rating bureaus and governmental authorities having jurisdiction.
The Tenant shall maintain in full force and effect during the term
hereof, a policy of public liability insurance under which Lessor and Tenant
are named insured. The minimum limits of liability of such insurance shall
be $500,000.00 combined single limit as to bodily injury and property damage.
Tenant agrees to deliver a duplicate copy of said policy, or a certificate
of insurance evidencing such coverage, to Lessor. Such policy shall contain
a provision requiring the (10) days written notice to Lessor before
cancellation of the policy can be effected.
15. DEFAULT. Tenant hereby agrees that in case Tenant shall default in
making its payments ten days after due date or any of them or in performing
any of the other agreements, terms and conditions of this Lease, then, in any
such event, Lessor, in addition to all other rights and remedies available to
Lessor by Law or by other provisions hereof, may after ten days written
notice, with due process, reenter immediately into the Demised Premises and
remove all persons and property therefrom, and, at Lessor's option, annul and
cancel this Lease as to all future rights of Tenant. Tenant further agrees
that in case of any such termination Tenant will indemnify the Lessor against
all loss of rents and other damage which Lessor incurs by reason of such
termination, including, but not being limited to, costs of restoring and
repairing the Demised Premises and putting the same in rentable condition,
costs or renting the Demised Premises to another Tenant, loss or diminution
of rents and other damage which Lessor may incur by reason of such
termination, and all reasonable attorney's fees and expenses incurred in
enforcing any of the terms of the Lease. Neither acceptance of rent by
Lessor, with or without knowledge of breach, nor failure of Lessor to take
action on account of any breach hereof or to enforce its rights hereunder
shall be deemed a waiver of any breach, and absent written notice or consent,
said breach shall be a continuing one.
16. NOTICE. All bills, statements, notices of communications which
Lessor may desire or be required to give to Tenant shall be deemed
sufficiently given or rendered if in writing and either delivered to Tenant
personally or sent by registered or certified mail addressed to Tenant at the
demised premise and the time of rendition thereof of the giving of such
notice or communication shall be deemed to be the time when the same is
delivered to Tenant or deposited in the mail as herein provided. Any notice
by Tenant to Lessor must be served by registered or certified mail addressed
to Lessor at the address where the last previous rental hereunder was
payable, or in case of subsequent change upon notice given, to the latest
address furnished.
17. HOLDING OVER. Should Tenant continue to occupy the Demised
Premises after expiration of the Lease term or any renewal or renewals
thereof, or after a forfeiture incurred, such tenancy shall be from month to
month and in no event from year to year or for any longer terms.
18. SUBORDINATION. The rights of Tenant shall be and are subject and
subordinate at all times to the lien of any first mortgage now or hereafter
in force against the project, and Tenant shall execute such further
instruments subordinating this Lease to the lien of any such first mortgage
as shall be requested by Lessor.
19. ESTOPPEL CERTIFICATE. Tenant shall at any time and from time to
time, upon not less than twenty (20) days prior written notice from Lessor,
execute, acknowledge and deliver to Lessor and any other parties designated
by Lessor, a statement in writing certifying (a) that this Lease is in full
force and effect and is unmodified (or, if modified, stating the nature of
such modifications), (b) the date to which the rental and other
charges payable hereunder have been paid in advance, if any, and (c) that
there are, to Tenant's knowledge, no uncured defaults on the part of Lessor
hereunder (or specifying such defaults if any are claimed). Any such
statement may be furnished to and relied upon by any prospective purchaser,
Tenant or encumbrancer of all or any portion of the Project.
20. SERVICE CHARGE. Tenant agrees to pay a service charge equal to one
percent (1%) per month or any portion thereof of any payment of monthly base
rent or additional charge payable by Tenant hereunder which is not paid
within ten (10) days from the date due, or of $5.00 per month or portion
thereof, whichever is greater.
21. BINDING EFFECT. The word "Tenant", wherever used in this Lease,
shall be construed to mean tenants in all cases where there is more than one
tenant, and the necessary grammatical changes required to make the provisions
hereof apply to corporations, partnerships or individuals, men or women,
shall in all cases be assumed as though in each case fully expressed. Each
provision hereof shall extend to and shall, as the case may require, bind and
inure to the benefit of Lessor and Tenant and their respective heirs, legal
representatives, successors, and assigns, provided that this Lease shall not
inure to the benefit of any heir, legal representative, transferee or
successor of Tenant except upon the express written consent or election of
Lessor. The Lessor may assign its right, title, and interest in this Lease,
and such assignment shall thence terminate all the Lessor's obligations.
22. OPTION. Lessee grants Tenant the option to extend this Lease for
an additional (5) five year period under the same terms and conditions that
were in effect at the end of the initial term. Said Option must be exercised
in writing (60) sixty days before start of option period.
23. IMPROVEMENTS. Lessee shall at no cost to Tenant provide 1 rest
room and a temporary dividing wall in main area.
IN WITNESS WHEREOF, the respective parties hereto have cause this Lease to be
executed the day and year first above written.
LESSOR: Xxxxxxx' Properties Inc.
By /s/
Xxxxx X. Xxxxxxx
Its President
TENANT: Consumer Credit Corp.
By /s/
Xxxxx X. Xxxxxxxx, Director
Addendum to lease agreement:
Item number 10 PARKING AND DRIVES:
This should include boat, motor, and trailer, camper, snowmobile, and
motorcycles for repossessed items.
Item number 22:
OPTION:
The lease can be extended for a period up to five years but not less than one
at a time.
Item number 23:
IMPROVEMENTS:
The temporary dividing wall should include a door space.
