EXHIBIT 10(q)
LEASE AGREEMENT
This lease agreement, made and entered into by and between Keypac Leasing,
hereinafter referred to as "Lessor" and Credit Concepts L.L.C., hereinafter
referred to as "Lessee", WITNESSETH:
Lessor leases to Lessee an office building commonly known as
0000 Xxxxxxxxxx Xxxxx, Xxxxxx, Xxxxxx 00000. The office space which is the
subject of this lease consists of approximately 1,310 square feet.
1. TERM: This lease shall run for a period of three (3) years commencing
upon the 1st day of November 1997, and terminating on the 31st day of October,
2000.
2. Purpose: Lessee shall use and occupy the leased premises for the purpose
of general office duties and for no other business or purpose without the
written consent of Lessor.
3. Rent: The Lessee shall pay to Lessor as rent the sum of:
Year 1 ($1,244.50 per month) (first month free)
Year 2 ($1,269.39 per month)
Year 3 ($1,320.16 per month)
Rent shall be payable on the first day of each month in advance at such
place as may be designated by Lessor.
4. Utilities: Utilities used by Lessee shall be paid for by Lessor as
follows: Water, Gas, Electricity, Janitor (three times each week), Sewer and
Garbage. All other utilities shall be supplied and paid for by Lessee.
5. Possession: Lessee's right to possession and obligations under this lease
shall begin on commencement of the term of this lease, or on such other date as
the premises are available.
6. Compliance With Law: Lessee agrees to conform with all applicable laws
and regulations of a public authority affecting the premises and its use, and
to correct at Lessee's own expense any failure of compliance created through
Lessee's faults or by reason of Lessee's use. Lessee agrees to comply with any
reasonable rules respecting the use of the premises promulgated by Lessor from
time to time and communicated to the Lessee in writing, including, but not
limited to, rules governing signs and outdoor advertising.
7. Repairs: Lessor shall maintain the outside of the building in good order
and repair during the terms of the Lease and shall make all repairs to the
building required by any act of God or damage from weather. Lessor's
obligation to repair shall not commence until it has received notice from
Lessee of any necessary repair. It shall be Lessor's duty to make repairs
relating to the interior of the premises, including, but not limited to all
glass, doors, (including exterior glass and doors), heat, air conditioning,
electrical (including lamps and bulbs) and plumbing unless such repairs are
made necessary by Lessee's willful or negligent act. Lessee shall make no
improvements, remodeling or redecorating without first obtaining Lessor's
written consent, which may not be unreasonably withheld. Lessee may place one
sign on the door or outside wall of Lessee's rental space and one sign on the
S.W. corner of the building under the existing attorneys sign, size and exact
location to be determined with Lessor prior to installation.
8. Parking: Lessor agrees to provide 3 reserved parking spaces and one
designated "visitor" which is not to be used for employee parking to serve the
leased premises.
9. Assignment and Sublease: No part of the leased premises may be assigned,
mortgaged, or subleased, nor may a right of use of any portion of any property
be conferred on any third person by any other means, without the prior written
consent of Lessor.
10. Insurance: Lessor's insurance obligations are fire and extended coverage
on building only. Lessee agrees to provide fire insurance in an amount
sufficient to protect the Lessee's improvements, equipment and fixtures on the
leased premises. Lessee further covenants to carry sufficient insurance to
save Lessor harmless from and to indemnify Lessor for any loss or damages
resulting from the Lessee's use of the leased premises or for any use in
connection therewith. The coverage shall be $2,000,000 for each occurrence.
Lessee shall be responsible for the condition of the leased premises, including
any entryway, during the term of this lease, and any damage or injury to
property or persons resulting from the condition of the premises or the
activities of the Lessee or its agents, employees, guests, business invitee, or
independent contractors thereon, and Lessee agrees to indemnify Lessor against
any loss therefrom. Certificates evidencing such insurance and bearing
endorsements requiring ten (10) days written notice to Lessor prior to any
change or cancellation shall be furnished to Lessor prior to Lessee's occupancy
of the property. There shall be no other insurance obligations required by
Lessor.
11. Waiver of Subrogation: Lessor and Lessee waive any and all claims for
recovery from the other party for any loss or damage to any of its property
insured under valid and collectible fire and extended coverage insurance
policies to the extent of any recovery collectible under such insurance. Each
party hereto agrees to notify its fire and extended coverage insurance
companies of the conditions of this agreement and have its insurance policies
properly endorsed, if necessary, so that insurance coverage will not be
invalidated by reason of the above waiver, and when necessary, to obtain a
certificate acknowledging waver of subrogation rights by respective insurance
carriers.
12. Damage or Destruction of Premises: If the leased premises are partly
damaged (less than 50%) not usable by Lessee), and if the damages are caused by
a risk which would be covered by insurance required to be obtained by Lessor,
repairs shall be at the expense of the Lessor, whether or not the damage
occurred as a result or fault on the part of the Lessee. If the damage
occurred from a peril which would not be covered by insurance required of
Lessor, repairs shall be at the expense of the Lessor unless the damage was the
result of fault by Lessee, his licenses, or invitees, in which case, Lessee
shall have the obligation and burden of repair. Rent shall be abated to the
extent the premises are untenable subsequent to damage and during the period of
repair except where damage occurs because of the fault of Lessee. If the
leased premises are destroyed or damaged by and act of God, by fire or other
casualty to the extent that premises become at least 50% not usable for
Lessee's purposes, either party may terminate this Lease upon written notice of
such decision to the other party with Fifteen (15) days following destruction
or damage. If neither party decided to terminate the Lease, Lessor shall
repair and reconstruct the premises with due diligence and this Lease shall
continue in full force and effect except the Lessee shall be entitled to a
reduction of rent from the date of the destruction or damage until the repair
or reconstruction is completed in an amount proportionate to whatever extent
damage or destruction and making of repairs interferes with Lessee's occupancy.
Rent shall not be abated from the date of damage when the damage occurred
because of fault by Lessee and Lessor elects to rebuild.
13. Liens: Except with respect to activities for which the Lessor is
responsible, the Lessee shall pay as due all claims for work done on or for
services rendered or material furnished to the leased premises and shall keep
the premises free from any liens.
14. Default: If the rent reserved by the Lease or any part thereof shall be
in default ten (10) days after payment is due, or if Lessee shall fail to
perform any other obligation created hereunder, or if Lessee shall be adjudged
a bankruptcy or insolvent by any court, or if a receiver or trustee in
bankruptcy or a receiver of the property of the Lessee shall be appointed in
any suit or proceeding brought by or against Lessee, or if Lessee shall make an
assignment for the benefit of creditors, or if an execution shall be issued
against Lessee, or if this Lease shall by operation of law pass to any person
other than Lessee, then, and in each and every such case, Lessor may, at any
subsequent time, after once notifying Lessee in writing of such default and if
such default shall continue for thirty (30) days after written notice thereof
by Lessor to Lessee (unless within ten (10) days after such notice Lessee
commences and diligently prosecutes the curing of any default other than
default in the payment of rent), declare the Lease terminated, re-enter the
premises, or any part thereof, with or without legal process, remove Lessee or
any other occupant, using such force as may be necessary, and fully repossess
said premises. Lessor shall also have the right to collect by summary
proceedings or otherwise any overdue rent, and the further right, at any time,
to collect and receive commencement of suit, or any final judgment of the
premises. If the property is abandoned by Lessee, termination shall be
automatic without notice. If the Lease is terminated for any reason, Lessee's
liability to Lessor for damages shall survive such termination. The rights and
the obligations of the parties in the event of termination shall be as follows:
a. Lessee shall vacate the property immediately, remove any property of
Lessee including any fixtures which Lessee is required to remove at the end of
the Lease term, provided however, Lessee hereby expressly grants to Lessor a
lien on any of the Lessee's property located on the premises, including
Fixtures, for any overdue rent, or other damages, for which the Lessee is
liable as of the date of termination of the Lease. Lessee also agrees to
perform a cleanup, alteration or any other work required to leave the property
in the required condition at the end of the term and the deliver all keys to
the Lessor. Lessee shall remove all of Lessee's fixtures requested by Lessor,
but in no event shall Lessee's fixtures be removed without Lessor's written
consent. All interior walls and partitions constructed by Lessee shall become
the property of Lessor and shall not be removed.
b. In the event of termination, Lessor shall be entitled to recover
immediately without waiting to the due date for any future rent or until the
date fixed for expiration of the Lease term, the following amounts as damages:
1. Any excess of (a) the value of all of Lessee's obligations under
this Lease, including the obligation to pay rent, from the date of default
until the end of the term, over (b) the reasonable rental value of the property
for the same period figured as the date of default, the net result to be
discounted to the date of default at a reasonable rate not exceeding 4% per
annum.
2. The reasonable costs of reentry and reletting including without
limitation the costs of any cleanup, refurbishing, removal of Lessee's property
and fixtures, or any other expenses occasioned by Lessee's failure to quit the
premises upon termination and to leave them in the required condition, any
remodeling costs, attorney's fees, court costs, broker commissions and
advertising costs.
3. The loss of reasonable rental value from the date of default
until a new tenant has been secured.
4. The foregoing remedies shall be in addition to and shall not
exclude any other remedy available to Lessor under applicable law.
15. Condition of Premises: At the expiration of the Lease term, Lessee shall
surrender the leased property in as good condition as it was at the beginning
of the term, reasonable use and wear and damage by the elements excepted.
16. Waiver: Waiver by Lessor of strict performance of any provision of this
Lease shall not be a waiver of or prejudice to the Lessor's right to require
strict performance of the same provision in the future or of any other
provision.
17. Attorney's Fees: If suit or action is instituted in connection with any
controversy arising out of this Lease, the prevailing party shall be entitled
to recover in addition to costs such sum as the court may adjudge reasonable as
attorney's fees, including attorney's fees for any appeals herein.
18. Representations: The Lessee acknowledges that this Lease is accepted and
executed on the basis of the Lessee's own examination and personal knowledge of
the value and condition of the premises; that no representation as to the
value, condition or repair of said premises has been made by Lessor or Lessor's
agents.
19. Notice: Any notice required or permitted under this Lease shall be given
when actually delivered or when deposited in the United States mail as
Certified Mail addressed as follows:
To Lessor: Xxxx Xxxxxx
0000 Xxxxx Xxxxx
Xxxxxx, Xxxxxx 00000
To Lessee: Credit Concepts L.L.C.
0000 Xxxxxxxxxx Xxxxx
Xxxxxx, Xxxxxx 00000
or to such other address as may be specified from time to time by either of the
parties in writing.
20. Holding Over: Any holding over after the expiration of the term of this
Lease, with consent of Lessor, shall be construed to be a tenancy from month to
month upon the terms, covenants and conditions in effect prior to such holding
over and terminable by either party giving to the other party thirty (30) days
notice of the termination of the tenancy.
21. Improvements: Lessor to replace existing carpet, construct a wall and
rear exit door and install a new relight as diagrammed in option "B" (see
attached). Lessee to install signage and mail slot.
22. Options to Renew: Lessee shall have the option of renewing this Lease for
an additional five (5) year period on the same terms and conditions except as
to rent, providing that the lease is not in default at the time the option is
exercised. Future rent shall be set at the discretion of the Lessor. In the
event Lessee desires to renew this Lease, Lessee must give Lessor notice of
intent to renew not more than one year nor less than six months prior to the
expiration of the original term of this Lease. (see Exhibit A, Addendum to
Options)
23. Deposit: A check in the amount of $2,489.00 is due with the signing of
this lease of which $1,244.50 is used as the second months rent and the
remaining $1,244.50 is to be used as a security deposit.
In Witness Whereof, the parties hereto have executed this instrument this
14th day of October, 1997.
Lessor: /s/ Xxxx Xxxxxx for Keypac Leasing
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Lessee: /s/ Xxxxxx X. Xxxxxx for Credit Concepts L.L.C.
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EXHIBIT "A"
Addendum to "Options to Renew"
Lessor to notify lessee of proposed rent schedule for the five year renewal
period within 10 days of the lessee's written notification of intent to renew
the lease. Lessee shall have the sole right to accept or reject the lessor's
proposed rent schedule. In the event the lessee rejects the proposed rent
schooled, the notification to renew the lease shall be considered null and
void.
Lessor: /s/ Xxxx Xxxxxx for Keypac Leasing
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Lessee: /s/ Xxxxxx X. Xxxxxx for Credit Concepts L.L.C.
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LIMITED GUARANTY
This Agreement made and entered into this 14th day of October 1997, by and
between Keypac Leasing, as Landlord by and between Keypac Leasing, as Landlord
by and between Xxxxxx X. Xxxxxx & Xxxxxx X. Xxxxxx, hereinafter referred to as
"Guarantors" which agreement is set forth below as follows:
IN consideration for the Landlord's agreement to lease a certain portion of
real property described in the lease attached hereto and by reference
incorporated herein, to Credit Concepts L.L.C., the undersigned as Guarantors
hereby agree to enter into this Guarantee Agreement.
The undersigned Guarantors hereby jointly and severally agree to guarantee to
the Landlord, that Credit Concepts L.L.C. will pay to the Landlord all sums
required of Credit Concepts L.L.C. under the terms of the Lease Agreement. In
the event Credit Concepts L.L.C. fails to pay any sum due and owing to the
Landlord the Guarantors jointly and severally agree to pay all sums due within
thirty days notice thereof.
IN the event Credit Concepts L.L.C. fails to comply with any of the terms and
conditions of the lease agreement, then, the owner shall provide to the
Guarantors written notice of such breach and provide to the Guarantors 30 days
to remedy such breach prior to commencing any action on this Guaranty
Agreement. In the event the Guarantors fail to remedy such default within the
30 day notice, then, in such event, the Landlord shall be entitled to commence
an action on this guarantee agreement for all sums due and owing.
Landlord Guarantors
/s/ Xxxx Xxxxxx /s/ Xxxxxx X. Xxxxxx
------------------------- ----------------------------
Xxxx Xxxxxx Xxxxxx X. Xxxxxx
Keypac Leasing
/s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
