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AZREB.com | Real Estate Forms
LEASE AGREEMENT
DATE. The date of this
lease, for reference purposes only,
is
.
1.
PARTIES. This Lease is
by and between
(the "Lessor"), and
(the
"Lessee"). Lessee warrants that Lessee is acting for its own
account in this transaction and is not acting
as an agent, trustee, executor, or in any other representative capacity
whatsoever.
2.
PREMISES, PARKING AND COMMON AREAS.
2.1
Premises.
Lessor leases to Lessee and Lessee leases from Lessor, upon all of
the terms and conditions set forth in this Lease, the following described
property (the "Leased Premises") situated in ___________ County, State
of ________________
approximately
(
) square feet of space in
(the "Development"), now located at
,
herein
referred to as the "Premises", as may be outlined on an Exhibit
attached hereto, including rights to the Common Areas hereinafter specified but
not including any rights to the roof of the Premises or to any Building in the
Industrial Center. The Premises are
a portion of a building, herein referred to as the "Building".
The Premises, the Building, the Common Areas, the land upon the same are
located, along with all other buildings and improvements thereon, are herein
collectively referred to as the "Industrial Center".
2.2
Vehicle Parking.
Lessee shall be entitled to
vehicle parking spaces,
unreserved and unassigned, on those portions of the Common Areas designated by
Lessor for parking. Lessee shall
not use more parking spaces than said number.
Said parking spaces shall be used only for parking by vehicles no larger
than full size passenger automobiles or pick-up trucks, herein called
"Permitted Size Vehicles". Vehicles
other than Permitted Size Vehicles are herein referred to as "Oversized
Vehicles".
2.2.1
Lessee shall not permit or allow any vehicles that belong to or are
controlled by Lessee or Lessee's employees, suppliers, shippers, customers, or
invitees to be loaded, unloaded, or parked in areas other than those designated
by Lessor for such activities.
2.2.2
If Lessee permits or allows any of the prohibited activities described in
Paragraph 2.2 of the Lease, then Lessor shall have the right, without notice, in
addition to such other rights and remedies that it may have, to remove or tow
away the vehicle involved and charge the cost to Lessee, which cost shall be
immediately payable upon demand by Lessor.
2.2.3
Lessor shall at all times provide the parking facilities required by
applicable law and in no event shall the number of parking spaces that Lessee is
entitled to Under Paragraph 2.2 be reduced.
2.3
Common Areas - Definition.
The term "Common Areas" is defined as all areas and facilities
outside the Premises and within the exterior boundary line of the Industrial
Center that are provided and designated by the Lessor from time to time for the
general non-exclusive use of Lessor, Lessee and of other lessees of the
Industrial Center and their respective employees, suppliers, shippers, customers
and invitees, including parking areas, loading and unloading areas, trash areas,
roadway, sidewalks, walkways, parkways, driveways and landscaped areas
2.4
Common Areas - Lessee's Rights.
Lessor hereby grants to Lessee, for the benefit of Lessee and its
employees, suppliers, shippers, customers and invitees, during the term of this
Lease, the non-exclusive right to use, in common with others entitled to such
use, the Common Areas as they exist from time to time, subject to any rights,
powers, and privileges reserved by Lessor under the terms hereof or under the
terms of any rules and regulations or restrictions governing the use of the
Industrial Center. Under no
circumstances shall the right herein granted to use the Common Areas be deemed
to include the right to store any property, temporarily or permanently, in the
Common Areas. Any such storage
shall be permitted only by the prior written consent of Lessor or Lessor's
designated agent, which consent may be revoked at any time.
In the event that any unauthorized storage shall occur then Lessor shall
have the right, without notice, in addition to such other rights and remedies
that it may have, to remove the property and charge the cost to Lessee, which
cost shall be immediately payable upon demand by Lessor.
2.5
Common Areas - Rules and
Regulations. Lessor or such
other person(s) as Lessor may appoint shall have the exclusive control and
management of the Common Areas and shall have the right, from time to time, to
establish, modify, amend and enforce reasonable rules and regulations with
respect thereto. Lessee agrees to
abide by and conform to all such rules and regulations, and to cause its
employees, supplier, shippers, customers, and invitees to so abide and conform.
Lessor shall not be responsible to Lessee for the non-compliance with
said rules and regulations by other lessees of the Industrial Center.
2.6
Common Areas - Changes.
Lessor shall have the right, in Lessor's sole discretion, from time
to time:
2.6.1
To make changes to the Common Areas, including, without limitation,
changes in the location, size, shape and number of driveways, entrances, parking
spaces, parking areas, loading and unloading areas, ingress, egress, direction,
landscaped areas and walkways;
2.6.2
To close temporarily any of the Common Areas for maintenance purposes so
long as reasonable access to the Premises remains available;
2.6.3
To designate other land outside the boundaries of the Industrial Center
to be part of the Common Areas;
2.6.4
To add additional buildings and improvements to the Common Areas
2.6.5
To use the Common Areas while engaged in making additional improvements,
repairs or alterations to the Industrial Center or any portion thereof; and
2.6.6
To do and perform such other acts and make such other changes in, to or
with respect to the Common Areas and Industrial Center as Lessor may, in the
exercise of sound business judgment, deem to be appropriate.
3.
TERM.
3.1
Term.
The term of this Lease shall be for
months commencing on
("Commencement Date") and ending on
("Termination Date") unless sooner terminated
pursuant to any provision hereof.
3.2
Delay in Possession.
Notwithstanding said Commencement Date, if for any reason Lessor
cannot deliver possession of the Premises to Lessee on said date, Lessor shall
not be subject to any liability therefor, nor shall such failure affect the
validity of this Lease or the obligations of Lessee hereunder or extend the term
hereof, but in such case, Lessee shall not be obligated to pay rent or perform
any other obligation of Lessee under the terms of this Lease, except as may be
otherwise provided in this Lease, until possession of the Premises is tendered
to Lessee; provided, however, that if Lessor shall not have delivered possession
of the Premises within four (4) months from said Commencement Date, Lessee may,
at Lessee's option, by notice in writing to Lessor within ten (10) days
thereafter, cancel this Lease, in which event the parties shall be discharged
from all obligations hereunder; provided further, however, that if such written
notice of Lessee is not received by Lessor within said ten (10) day period,
Lessee's right to cancel this Lease hereunder shall terminate and be of no
further force or effect.
3.3
Early Possession.
If Lessee occupies the Premises prior to said Commencement Date, such
occupancy shall be subject to all provisions of this Lease, such occupancy shall
not advance the Termination Date, and Lessee shall pay rent for such period at
the initial monthly rates set forth below.
4.
RENT.
Base Rent. Lessee shall
pay to Lessor, as Base Rent for the Premises, without any offset or deduction,
except as may be otherwise expressly provided in this Lease, on the
day of each month of the
term hereof, monthly payments in advance of $
plus applicable rental taxes (presently
%)
. Lessee shall pay Lessor upon execution hereof $
as Base Rent for first month, including
% Rental Tax. Rent for
any period during the Term hereof which is for less than one month shall be pro
rata portion of the Base Rent. Rent
shall be payable in lawful money of the United States to Lessor at the address
stated herein or to such other persons or at such other places as Lessor may
designate in writing.
5.
SECURITY DEPOSIT. Lessor
shall deposit with Lessor upon execution hereof $
as security for Lessee's faithful performance of Lessee's obligations
hereunder. If Lessee fails to pay
rent or other charges due hereunder, or otherwise defaults with respect to any
provision of the Lease, Lessor may use, apply or retain all or any portion of
said deposit for the payment of any rent or other charge in default or for the
payment of any other sum to which Lessor may become obligated by reason of
Lessee's default of, to compensate Lessor for any loss or damage which Lessor
may suffer thereby. If Lessor so uses or applies all or any portion of said
deposit, Lessee shall within ten (10) days after written demand therefor deposit
cash with Lessor in an amount sufficient
to restore said deposit to the full amount then required of Lessee. If the monthly rent shall, from time to time, increase during
the term of this Lease, Lessee shall, at time of such increase, deposit with
Lessor additional money as a security deposit so that the total amount of the
security deposit held by Lessor shall at all times bear the same proportion to
the then current Base Rent as the initial security deposit bears to the initial
Base Rent set forth in Paragraph 4. Lessor
shall not be required to keep said security deposit separate from its general
accounts. If Lessee performs all of
Lessee's obligations hereunder, said deposit, or so much thereof as has not
theretofore been applied by Lessor, less a $50.00
non-refundable cleaning fee (per suite), or a $200.00 non-refundable cleaning
fee if an entire building is leased, shall be returned, without payment of
interest or other increment for its use, to Lessee (or, at Lessor's option, to
the last assignee, if any, of Lessee's interest hereunder) at the expiration of
the term hereof, and after Lessee has vacated the Premises.
No trust relationship is created herein between Lessor and Lessee with
respect to said Security D deposit. If
Lessor sells or otherwise transfers Lessor's rights or interests under this
Lease, Lessor may deliver the security deposit to the transferee, whereupon
Lessor shall be released from any further liability to Lessee with respect to
the security deposit.
6.
USE.
6.1
Use.
The Premises shall be used and occupied only for
or any other use which is reasonably comparable and for no
other purpose.
6.2
Compliance with Law; Disturbance.
Lessee shall, at Lessee's expense, promptly comply with all
applicable statutes, ordinances, rules, regulations, orders, covenants and
restrictions of record, and requirements of any fire insurance underwriters or
rating bureaus, now in effect or which may hereafter come into effect, whether
or not they reflect a change in policy from that now existing, during the term
or any part of the term hereof, relating in any manner to the Premises and the
occupation and use by Lessee of the Premises and of the Common Areas. Lessee shall not use nor permit the use of the Premises or
the Common Areas in any manner that will tend to create waste or a nuisance or
shall tend to disturb other occupants of the Industrial Center, whether
visually, by smell, noise or other means.
6.3
Condition of Premises.
6.3.1
Lessor shall deliver the Premises to Lessee clean and free of debris on
the Lease Commencement Date (unless Lessee is already in possession) and Lessor
warrants to Lessee that the plumbing, lighting, air conditioning, heating and
loading doors in the Premises shall be in good operating condition on the Lease
C commencement Date. In the event
that it is determined that this warranty has been violated, then it shall be the
obligation of Lessor, after receipt of written notice from Lessee setting forth
with specificity the nature of the violation, to promptly, at Lessor's sole
cost, rectify such violation. Lessee's
failure to give such written notice to Lessor within thirty (30) days after the
Lease Commencement Date shall cause the conclusive presumption that Lessor has
complied with all of Lessor's obligations hereunder.
The warranty contained in this paragraph 6.3.1 shall be of no force or
effect if, prior to the date of this Lease, Lessee was an owner or occupant of
the Premises.
6.3.2
Except as otherwise provided in this Lease, Lessee hereby accepts the
Premises in their condition existing as of the Lease Commencement Date or the
date that Lessee takes possession of the Premises, whichever is earlier, subject
to all applicable zoning, municipal, county and state laws, ordinances and
regulations governing and regulating the use of the Premises, and any covenants
or restrictions of record, and accepts this Lease subject thereto and to all
matters disclosed thereby and by any exhibits attached hereto.
Lessee acknowledges that neither Lessor nor Lessor's agent has made any
representation or warranty as to the present or future suitability of the
Premises for the conduct of Lessee's business.
6.4
Hazardous Waste.
6.4.1
Lessee shall not produce, dispose, transport, treat or store on the
Premises any hazardous waste or toxic substance which is subject to:
(a) regulation under the Arizona Hazardous Waste Management Act,
A.R.S. § 36-2821 et seq.;
(b) the Resource Conservation and Recovery Act, 42 U.S.C. § 6901
et seq.; or
(c) regulation
under the Toxic Substance Control Act, 15 U.S.C. § 2601 et
seq.
6.4.2
No activity may occur on the Premises which could have toxic results.
6.4.3
The Premises may not be used for the production, treatment, collection,
storage, or disposal of any refuse, objectionable waste or any material:
(a) in any manner inconsistent
with the regulations issued by the Arizona
Department of Health Services, ACR R9-8-401, et
seq.;
(b) so as to require a permit or approval from the Arizona
Department of
Health Services, pursuant to ACR R9-8-401, et
seq., or
(c) in a manner which would cause the County Department of Health
Services to inspect the Premises or issue orders pursuant to Chapter
II of the County Health Code.
6.4.4
Lessee hereby agrees to indemnify and hold harmless Lessor for its
failure by reason of any breach of this covenant, including any and all costs,
fees, penalties and any other liabilities incurred by Lessor resulting from such
violation of this covenant.
7.
MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREA SERVICES.
7.1
Lessor's Obligations.
Subject to the provisions of Paragraphs 6 (Use), 7.2 (Lessee's
Obligations) and 9 (Damage or Destruction) and except for damage caused by any
negligent or intentional act or omission of Lessee, Lessee's agents, employees,
or invitees, Lessor, at Lessor's expense, shall keep in good order, condition
and repair the foundations, exterior walls and the exterior roof of the
Premises. Lessor shall not,
however, be obligated to paint such exterior, nor shall Lessor be required to
maintain the interior surface of exterior walls, windows, doors or plate glass.
Lessor shall have no obligation to make repairs under this Paragraph 7.1
until a reasonable time after receipt of written notice of the need of such
repairs. Lessee expressly waives
the benefits of any statute now or hereafter in effect which would otherwise
afford Lessee the right to make repairs at Lessor's expense, allow an offset
against rent, or to terminate this
Lease because of Lessor's failure to keep the Premises in good order, condition
and repair.
7.2
Lessee's Obligations.
7.2.1
Subject to the provisions of Paragraphs 6 (Use), 7.1 (Lessor's
Obligations), and 9 (Damage or Destruction), Lessee, at Lessee's expense, shall
keep in good order, condition and repair the Premises and every part thereof
(whether or not the damaged portion of the Premises or the means of repairing
the same are reasonably or readily accessible to Lessee) including, without
limiting the generality of the foregoing, all plumbing, heating, ventilating and
air conditioning systems (Lessee
shall procure and maintain, at Lessee's expense, a ventilating and air
conditioning system maintenance contract), electrical and lighting facilities
and equipment within the Premises, fixtures, interior walls and interior
surfaces of exterior walls, ceilings, windows, door, plate glass, and skylights
located within the Premises. Lessor
reserves the right to procure and maintain the ventilating and air conditioning
system maintenance contract and, if Lessor so elects, Lessee shall reimburse
Lessor, upon demand, for the cost thereof.
7.2.2
If Lessee fails to perform Lessee's obligations under this Paragraph 7.2
or under any other paragraph of this Lease, Lessor may enter upon the Premises
after ten (10) days prior written notice to Lessee (except in the case of
emergency, in which no notice shall be required), perform such obligations on
Lessee's behalf and put the Premises in good order, condition and repair, and
the cost thereof together with interest thereon at eighteen percent (18%) per
annum, which shall be due and payable as additional rent to Lessor together with
Lessee's next Base Rent installment
7.2.3
On the last day of the term hereof, or on any sooner termination, Lessee
shall surrender the Premises to Lessor in the same condition as received,
ordinary wear and tear excepted, clean and free of debris.
Any damage or deterioration of the Premises shall not be deemed ordinary
wear and tear if the same could have been prevented by good maintenance
practices. Lessee shall repair any
damage to the Premises occasioned by the installation or removal of Lessee's
trade fixtures, alterations, furnishings and equipment.
Notwithstanding anything to the contrary otherwise stated in this Lease,
Lessee shall leave the air lines, power panels, electrical distribution systems,
lighting fixtures, space heaters, air conditioning, plumbing and fencing on the
Premises in good operating condition.
7.3
Alterations and Additions.
7.3.1
Lessee shall not, without Lessor's prior written consent, make any
alterations, improvements, additions, or Utility Installations in, on or about
the Premises, or the Industrial Center, except for nonstructural alterations to
the Premises, exceeding $2,500.00 in cumulative costs, during the term of this
Lease. In any event, whether or not in excess of $2,500.00 in
cumulative costs, Lessee shall make no change or alteration to the exterior of
the Premises nor the exterior of the Building nor the Industrial Center without
Lessor's prior written consent. As
used in this Paragraph 7.3, the term "Utility Installation" shall mean
carpeting, window coverings, air lines, power panels, electrical distribution
systems, lighting fixtures, space heaters, air conditioning, plumbing, and
fencing. Lessor may require that
Lessee remove any or all of said alterations, improvements, additions or Utility
Installations at the expiration of the term, and restore the Premises and the
Industrial Center to their prior condition.
Lessor may require Lessee to provide Lessor, at Lessee's sole cost and
expense, a lien and completion bond in an amount equal to one and one-half times
the estimated cost of such improvements, to insure Lessor against any liability
for mechanic's and materialmen's liens and to insure completion of the work.
Should Lessee make any alterations, improvements, additions or Utility
Installations without the prior approval of Lessor, Lessor may, at any time
during the term of this Lease, require the Lessee to remove any or all of the
same.
7.3.2
Any alterations, improvements, additions or Utility Installations in or
about the Premises or the Industrial Center that Lessee shall desire to make and
which requires the consent of the Lessor shall be presented to Lessor in written
form, with proposed detailed plans. If
Lessor shall give its consent, the consent shall be deemed conditioned upon
Lessee acquiring a permit to do so from appropriate governmental agencies, the
furnishing of a copy thereof to Lessor prior to the commencement of the work and
the compliance by Lessee of all conditions of said permit in a prompt and
expeditious manner.
7.3.3
Lessee shall pay, when due, all claims for labor or materials furnished
or alleged to have been furnished to or for Lessee at or for use in the
Premises, which claims are or may be secured by any mechanic's or materialmen's
lien against the Premises, or the Industrial Center, or any interest therein.
Lessee shall give Lessor not less than ten (10) days notice prior to the
commencement of any work in the
Premises, and Lessor shall have the right to post notices of non-responsibility
in or on the Premises or the Building as provided by law.
If Lessee shall, in good faith, contest the validity of any such lien,
claim or demand, then Lessee shall, at its sole expense, defend itself and
Lessor against the same and shall pay and satisfy any such adverse judgment that
may be rendered thereon before the enforcement thereof against the Lessor or the
Premises or the Industrial Center, upon the condition that if Lessor shall
require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in
an amount equal to such contested lien claim or demand indemnifying Lessor
against liability for the same and holding the Premises and the Industrial
Center free from the effect of such lien or claim.
In addition, Lessor may require Lessee to pay Lessor's attorneys' fees
and costs in participating in such action if Lessor shall decide it is in the
Lessor's best interest to do so.
7.3.4
All alterations, improvements, additions and Utility Installations
(whether or not such Utility Installations constitute trade fixtures of Lessee),
which may be made on the Premises, shall be the property of Lessor and shall
remain upon and be surrendered with the Premises at the expiration of the Lease
term, unless Lessor requires their removal pursuant to paragraph 7.3.1.
Notwithstanding the provisions of this
paragraph 7.3.4, Lessee's machinery and equipment, other than that which is
affixed to the Premises so that it cannot be removed without material damage to
the Premises, and other than Utility Installations, shall remain the property of
Lessee and may be removed by Lessee subject to the provisions of paragraph 7.2
7.4
Utility Additions.
Lessor reserves the right to install new or additional utility
facilities throughout the Building and the Common Areas for the benefit of
Lessor or Lessee, or any other lessee of the Industrial Center, including, but
not by way of limitation, such utilities as plumbing, electrical systems,
security systems, communication systems, and fire protection and detection
systems, so long as such installations do not unreasonably interfere with
Lessee's use of the Premises.
8.
INSURANCE; INDEMNITY.
8.1
Liability Insurance - Lessee.
Lessee shall, at Lessee's expense, obtain and keep in force during
the term of this Lease a policy of Combined Single Limit Bodily Injury and
Property Damage insurance insuring Lessee and Lessor (as additional insured)
against any liability arising out of the use, occupancy or maintenance of the
Premises and the Industrial Center. Such
insurance shall be in an amount not less than $1,000,000.00 per occurrence.
The policy shall insure performance by Lessee of the indemnity provisions
of this Paragraph 8. The limits of
said insurance shall not, however, limit the liability of Lessee hereunder.
8.2
Property Insurance.
Lessor shall obtain and keep in force during the term of this Lease a
policy or policies of insurance covering loss or damage to the Premises, in the
amount of the full replacement value thereof, providing protection against all
perils included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk) and rental abatement
insurance (in an amount equal to one year of rent payable by Lessee).
Lessee shall pay on a monthly basis, during the term hereof, in
addition to rent, the amount of any increase in premiums for the insurance
required under this Paragraph 8.2 over and above such premiums paid by Lessor
during the first full year of the term of this Lease in which Lessor shall have
maintained the insurance required under this Paragraph 8.2, whether such premium
increase shall be the result of the nature of Lessee's occupancy, any act or
omission of Lessee, requirements of the holder of a mortgage or deed of trust
covering the Premises, or increased valuation of the Premises.
Lessee shall pay any such premium increases to Lessor within thirty (30)
days after receipt by Lessee of a copy of the premium statement or other
satisfactory evidence of the amount due. If
the insurance policies maintained hereunder cover other improvements in addition
to the Premises, Lessor shall also deliver to Lessee a statement of the amount
of such increase attributable to the Premises and showing in reasonable detail
the manner in which such amount was computed.
If the term of this Lease shall not expire concurrently with the
expiration of the period covered by such insurance, Lessee's liability for
premium increases shall be prorated on an annual basis.
Lessee shall maintain and hereby acknowledges that Lessee shall
possess the sole responsibility for obtaining property insurance providing
protection against all perils including within the classification of fire,
extended coverage, vandalism, malicious mischief and special extended perils, on
any fixtures, equipment, tenant improvements including plate glass, owned by
Lessor or other personal property of any nature in the premises; Lessor shall
under no circumstances have any liability for such items.
The amount of full replacement value of
Tenant Improvements is now $
. If the Lessee fails to procure and maintain such insurance on
any fixture or Tenant Improvement owned by Lessor, Lessor may
procure and maintain said insurance, but
at the expense of Lessee. If
such insurance coverage has a deductible clause, the deductible amount shall not
exceed $5,000.00 per occurrence and Lessee shall be liable for such deductible
amount.
8.3
Insurance Policies.
Insurance required hereunder shall be in companies holding a
"General Policyholders Rating" of at least B plus, or such other
rating as may be required by a lender having a lien on the Premises, as set
forth in the most current issue of "Best's Insurance Guide".
Lessee shall not do or permit to be done anything which shall invalidate
the insurance policies carried by Lessor. Lessee
shall deliver to Lessor copies of liability insurance policies required under
paragraph 8.1 or certificates evidencing the existence and amounts of such
insurance within seven (7) days after the commencement date of this Lease.
No such policy shall be cancellable or subject
to reduction of coverage or other modification except after thirty (30)
days prior written notice to Lessor. Lessee
shall, at least thirty (30) days prior to the expiration of such policies,
furnish Lessor with renewals or "binders" thereof.
Lessor, Lessor's successors and assigns, and any nominee of Lessor
holding any interest in the Premises, including, without limitation, the holder
of any fee mortgage, shall be named as insureds under each policy of insurance
maintained by Lessee.
8.4
Waiver of Subrogation.
Lessee and Lessor each hereby release and relieve the other, and
waive their entire right of recovery against the other for loss or damage
arising out of incident to the perils insured against
which perils occur in or about the Premises, whether due to the
negligence of Lessor or Lessee; or their agents, employees, contractors and/or
invitees. Lessee and Lessor shall, upon obtaining the policies of
insurance required, give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease, except acts
of Lessee or Lessor arising out of gross negligence, willful or reckless
misconduct.
8.5
Indemnity.
Lessee shall indemnify and hold harmless Lessor from and against any
and all claims arising from Lessee's use of the Industrial Center, or from the
conduct of Lessee's business or from any activity, work or things done,
permitted or suffered by Lessee in or about the Premises or elsewhere and shall
further indemnify and hold harmless Lessor from and against any and all claims
arising from any breach or default in the performance of any obligation of
Lessee's part to be performed under the terms of this Lease, or arising from any
act or omission of Lessee, or any of Lessee's agents, contractors, or employees,
and from and against all costs, attorneys' fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought
thereon; and in case any action or proceeding be brought against Lessor by
reason of any such claim, Lessee upon notice from Lessor shall defend the same
at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor
shall cooperate with Lessee in such defense.
Lessee, as a material part of the consideration to Lessor, hereby assumes
all risk of damage to property of Lessee or injury
to persons in, upon or about the Industrial Center arising from any cause
and Lessee hereby waives all claims in respect thereof against Lessor.
8.6
Exemption of Lessor from
Liability. Lessee hereby agrees
that Lessor shall not be liable for injury to Lessee's business or any loss of
income therefrom or for damage to the goods, wares, merchandise or other
property of Lessee, Lessee's employees, invitees, customers, or any other person
in or about the Premises or the Industrial Center, nor shall Lessor be liable
for injury to the person of Lessee, Lessee's employees, agents or contractors,
whether such damage or injury is caused by or results from fire, steam,
electricity, gas, water or rain, or from the breakage, leakage, obstruction or
other defects of pipes, sprinklers, wires, appliances, plumbing, air
conditioning or lighting fixture, or from any other cause, whether said damage
or injury results from conditions arising upon the Premises or upon other
portions of the Industrial Center, or from other sources or places and
regardless of whether the cause of such damage or injury or the means of
repairing the same are inaccessible
to Lessee. Lessor shall not be
liable for any damages arising from any act or neglect of any other lessee,
occupant or user of the Industrial Center, nor from the failure of Lessor to
enforce the provisions of any other lease of the Industrial Center.
8.7
Failure.
If Lessee fails to maintain any insurance required in this Lease,
Lessee shall be liable for all losses and costs resulting from said failure.
Nothing herein shall be a waiver of any of Lessor's rights and remedies
under any other article of this Lease or at law or equity.
8.8
Earthquake; Flood.
Lessor, if required, may maintain with respect to the Building a
policy of earthquake/volcanic action and flood and/or surface water insurance,
including rental value insurance against abatement or loss of rent in the case
of damage or loss covered under such earthquake/volcanic and flood and/or
surface water insurance in an amount at least equal to the amount of rent
payable by Lessee during the one (1) year next ensuing, as reasonably determined
by Lessor.
9.
DAMAGE OR DESTRUCTION.
9.1
Definitions.
9.1.1
"Premises Partial Damage" shall mean if the Premises are
damaged or destroyed to the extent that the cost of repair is less than fifty
percent (50%) of the then replacement cost of the Premises.
9.1.2
"Premises Total Destruction" shall mean if the Premises
are damaged or destroyed to the extent that the cost of repair if fifty percent
(50%) or more of the then replacement cost of the Premises.
9.1.3
"Premises Building Partial Damage" shall mean if the
Building of which the Premises are a part is damaged or destroyed to the extent
that the cost of repair is less than fifty percent (50%) of the then replacement
cost of the Building.
9.1.4
"Premises Building Total Destruction" shall mean if the
Building of which the Premises are a part is damaged or destroyed to the extent
that the cost of repair if fifty percent or more of the then replacement cost of
the Building.
9.1.5
"Industrial Center Buildings" shall mean all of the
buildings on the Industrial Center site.
9.1.6
"Industrial Center Buildings Total Destruction" shall mean
if the Industrial Center buildings are damaged or destroyed to the extent that
the cost of repair if fifty percent (50%) or more of the then replacement cost
of the Industrial Center Buildings.
9.1.7
"Insured Loss" shall mean damage or destruction which was
covered by an event required to be covered by the insurance described in
Paragraph 8. The fact that an
Insured Loss has a deductible amount shall not make the loss an uninsured loss.
9.1.8
"Replacement Cost" shall mean the amount of money
necessary to be spent in order to repair or rebuild the damaged area to the
condition that existed immediately prior to the damage occurring excluding all
improvements made by lessees.
9.1.9
"Tenant Improvements" shall mean those improvements
installed wholly at Lessee's expense.
9.1.10
"Abandonment" shall mean failure to be open for business
for a period of thirty (30) days.
9.2
Premises Partial Damage; Premises
Building Partial Damage.
9.2.1
Insured Loss: Subject
to the provisions of Paragraphs 9.4 and 9.5, if at any time during the term of
this Lease there is damage which is an Insured Loss and which falls into the
classification of either Premises Partial Damage or Premises Building Partial
Damage, then Lessor shall, at Lessor's expense, repair such damage to the
Premises, but not Lessee's fixtures, equipment or Tenant Improvements, as soon
as reasonably possible after receipt of insurance proceeds, and this Lease shall
continue in full force and effect.
9.2.2
Uninsured Loss: Subject
to the provisions of Paragraphs 9.4 and 9.5, if at any time during the term of
this Lease there is damage which is not an Insured Loss and which falls within
the classification of Premises Partial Damage or Premises Building Partial
Damage, unless caused by a negligent or willful act of Lessee (in which event
Lessee shall make the repairs at Lessee's expense), which damage prevents Lessee
from using the Premises, Lessor may, at Lessor's option, either (i) repair such
damage as soon as reasonably possible at Lessor's expense, in which event this
Lease shall continue in full force and effect, or (ii) give written notice to
Lessee within thirty (30) days after the date of the occurrence of such damage
of Lessor's intention to cancel and terminate this Lease as of the date of the
occurrence of such damage. In the
event Lessor elects to give such notice of Lessor's intention to cancel and
terminate this Lease, Lessee shall have the right within ten (10) days after the
receipt of such notice to give
written notice to Lessor of Lessee's intention to repair such damage at Lessee's
expense, without reimbursement from Lessor, in which event this Lease shall
continue in full force and effect, and Lessee shall proceed to make such repairs
as soon as reasonably possible. If
Lessee does not give such notice within such ten (10) day
period this Lease shall be cancelled and terminated as of the date of the
occurrence of such damage.
9.3
Premises Total Destruction;
Premises Building Total Destruction; Industrial Center Buildings Total
Destruction. Subject to the
provisions of Paragraphs 9.4 and 9.5, if at any time during the term of this
Lease there is damage, whether or not it is an Insured Loss and which falls into
the classifications of either (i) Premises Total Destruction, or (ii) Premises
Building Total Destruction, or (iii) Industrial Center Buildings Total
Destruction,, then Lessor may at Lessor's option either (a) repair such damage
or destruction, but not Lessee's fixtures, equipment or tenant improvements, as
soon as reasonably possible after receipt of insurance proceeds, at Lessor's
expense, and this Lease shall continue in full force and effect, or (b) give
written notice to Lessee within thirty (30) days after the date of occurrence of
such damage of Lessor's intention to cancel and terminate this Lease, in which
case this Lease shall be cancelled and terminated as of the date of the
occurrence of such damage.
9.4
Damage Near End of Term.
9.4.1
Subject to Paragraph 9.4.2, if at any time during the last twelve months
of the term of this Lease there is substantial damage, whether or not an Insured
Loss, which falls within the classification of Premises Partial Damage, Lessor
may at Lessor's option cancel and terminate this Lease as of the date of
occurrence of such damage by giving written notice to Lessee of Lessor's
election to do so within thirty (30) days after the date of occurrence of such
damage.
9.4.2
Notwithstanding Paragraph 9.4.1, in the event that Lessee has an option
to extend or renew this Lease, and the time within which said option may be
exercised has not yet expired, Lessee shall exercise such option, if it is to be
exercised at all, no later than twenty (20) days after the occurrence of an
Insured Loss falling within the classification of
Premises Partial Damage during the last twelve months of the term of this
Lease. If Lessee duly exercises
such option during said twenty (20) day period, Lessor shall, at Lessor's
expense, repair such damage, but not Lessee's fixtures, equipment or Tenant
Improvements, as soon as reasonably possible and this Lease shall continue in
full force and effect. If Lessee
fails to exercise such option during said twenty (20) day
period, then Lessor may at Lessor's option terminate and cancel this
Lease as of the expiration of said twenty (20) day period by giving written
notice to Lessee of Lessor's election to do so within ten (10) days after the
expiration of said twenty (20) day period, notwithstanding any term or provision
in the grant of option to the contrary.
9.5
Abatement of Rent; Lessee's
Remedies.
9.5.1
In the event Lessor repairs or restores the Premises pursuant to the
provisions of this Paragraph 9, the rent payable hereunder for the period during
which such damage, repair or restoration continues shall be abated in proportion
to the degree to which Lessee's use of the Premises is impaired.
Except for abatement of rent, if any, Lessee shall have no claim against
Lessor for any damage suffered by reason of any such damage, destruction, repair
or restoration.
9.5.2
If Lessor shall be obligated to repair or restore the Premises under the
provisions of this Paragraph 9, and shall not commence such repair or
restoration within ninety (90) days after such obligation shall accrue, Lessee
may, at Lessee's option, cancel and terminate this Lease by giving Lessor
written notice of Lessee's election to do so at any time prior to the
commencement of such repair or restoration.
In such event, this Lease shall terminate as of the date of such notice.
9.6
Termination - Advance Payments.
Upon termination of this Lease pursuant to this Paragraph 9, an
equitable adjustment shall be made concerning advance rent and any advance
payments made by Lessee to Lessor. Lessor
shall, in addition, return to Lessee so much of Lessee's security deposit as has
not theretofore been applied by Lessor.
9.7
Waiver.
Lessor and Lessee waive the provisions of A.R.S. § 33-343 which
relate to termination of leases when leased property is destroyed and agree that
such event shall be governed by the terms of this Lease.
10.
REAL PROPERTY TAXES.
10.1
Payment of Tax Increase.
Lessor shall pay all real property taxes applicable to the Premises;
provided, however, that Lessee shall pay, in addition to rent, the amount, if
any, by which real property taxes applicable to the Premises increase over the
fiscal tax years 19
. Such payment shall be made by Lessee on a monthly basis as
noted in Paragraph 44 after receipt of Lessor's written statement setting forth
the amount of such increase and the reasonable computation thereof.
If the term of this Lease shall not expire concurrently with the
expiration of the fiscal tax year, Lessee's liability for increased taxes for
the last partial lease year shall be prorated on an annual basis.
10.2
Definition of "Real Property
Tax". As used herein, the
term "real property tax" shall include any form of real estate tax or
assessment, general, special, ordinary or extraordinary, and any license fee,
commercial rental tax, improvement bond or bonds, levy or tax (other than
inheritance, personal income or estate taxes) imposed on the Industrial Center
or any portion thereof by any authority having the direct or indirect power to
tax, including any city, county, state or federal government, or any school,
agricultural, sanitary, fire, street, drainage or other improvement district
thereof, as against any legal or equitable interest of Lessor in the Industrial
Center or any portion thereof, as against Lessor's right to rent or other income
therefrom, and as against Lessor's business of leasing the Industrial Center.
10.3
Joint Assessment. If
the Industrial Center is not separately assessed, Lessee's share of the real
property tax liability shall be an equitable proportion of the real property
taxes for all of the land and improvements included within the tax parcel
assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's
reasonable determination thereof, in good faith, shall be conclusive.
10.4
Personal Property Taxes.
10.4.1
Lessee shall pay, prior to delinquency, all taxes assessed against and
levied upon trade fixtures, furnishings, equipment and all other personal
property of Lessee contained in the Premises or elsewhere.
When possible, Lessee shall cause said trade fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately
from the real property of Lessor.
10.4.2
If any of Lessee's said personal property shall be assessed with lessor's
real property, Lessee shall pay to Lessor the taxes attributable to Lessee with
ten (10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property.
10.5
Transaction Privilege Tax.
Lessee shall pay to Lessor, in addition to and along with the rental
otherwise payable hereunder, any excise, transaction, sales or privilege tax now
or hereafter imposed by any government or governmental agency upon Lessor and
attributed to or measured by rent, property tax, security deposit, other charges
or prorations payable by Lessee.
10.6
Tax Consultant Fees.
Each year, at Lessor's election, Lessor may protest real property tax
assessments. In the event Lessor
elects to protest a real property tax assessment, Lessor may utilize the
services of a tax consultant to protest the real property tax assessment.
If, as a result of the protest, the real property taxes are lowered, and
a tax consultant has been utilized in connection with the protest, Lessee
acknowledges that a fee will be payable to the tax consultant.
Lessee agrees to pay, as additional rent during the Lease term, its pro
rata share of all fees payable to tax consultants in the manner set forth in
paragraph 44 of this Lease.
11.
UTILITIES. Lessee shall
pay for all gas, heat, light, power, water, telephone and other utilities and
services supplied to the Premises, together with any taxes thereon.
If any such services are not separately metered to the Premises, Lessee
shall pay at Lessor's option, either Lessee's share or a reasonable proportion
to be determined by Lessor of all charges jointly metered with other premises in
the Building or Industrial Center.
12.
ASSIGNMENT AND SUBLETTING.
12.1
Lessor's Consent Required.
Lessee shall not voluntarily or by operation of law assign, transfer,
mortgage, sublet, or otherwise transfer or encumber all or any part of Lessee's
interest in the Lease or in the Premises without Lessor's prior written consent,
which Lessor shall not unreasonably withhold.
Lessor shall respond to Lessee's request for consent hereunder in a
timely manner and any attempted assignment, transfer, mortgage, encumbrance or
subletting without such consent shall be void and shall constitute a breach of
this Lease without the need for notice to Lessee under Paragraph 13.1.
12.2
Terms and Conditions of
Assignment. Regardless of
Lessor's consent, no assignment shall release Lessee of Lessee's obligations
hereunder or alter the primary liability of Lessee to pay the Base Rent and
Lessee's share of expenses, and to perform all other obligations to be performed
by Lessee hereunder. Lessor may
accept rent from any person other than Lessee pending approval or disapproval of
such assignment. Neither a delay in
the approval or disapproval of such assignment nor the acceptance of rent shall
constitute a waiver or estoppel of Lessor's right to exercise its remedies for
the breach of any of the terms or conditions of this Paragraph 12 of this Lease.
Consent to one assignment shall not be deemed consent to any subsequent
assignment. In the event of default
by any assignee of Lessee or any successor of Lessee, in the performance of any
of the terms hereof, Lessor may proceed directly against Lessee without the
necessity of exhausting remedies against said assignee.
Lessor may consent to subsequent assignments of this Lease or amendments
or modifications to this Lease with assignees of Lessee without notifying
Lessee, or any successor of Lessee, and without obtaining its or their consent
thereto and such action shall not relieve Lessee of liability under this Lease.
12.3
Attorneys' Fees.
In the event Lessee shall assign or sublet the Premises or request
the consent of Lessor to any assignment or subletting or if Lessee shall request
the consent of Lessor for any act Lessee proposes to do, then Lessee shall pay
Lessor's reasonable attorneys' fees incurred in connection therewith, such
attorneys' fees not to exceed $500.00 for each such request.
12.4
Bonus Rental.
If Lessee receives rent or other consideration for any assignment or
sublease in excess of the rent, or in case of the sublease of a portion of the
Premises, in excess of such rent that is fairly allocable to such portion, as
determined by Lessor, after appropriate adjustments to assure that all other
payments required hereunder are appropriately taken into account, Lessee shall
pay Lessor seventy-five percent (75%) of the difference between each such
payment of rent or other consideration and the rent required hereunder.
12.5
Release.
Whenever Lessor conveys any interest in the Premises, Lessor shall be
automatically released from further performance of the covenants of this Lease,
and from all further liabilities, obligations, costs, expenses, demands, causes
of action, claims and judgments connected with this Lease.
The effective date of Lessor's release shall be the date the assignee
executes an assumption of such assignment.
If requested, Lessee shall execute a form of release and such other
documentation as may be required to further effect the provisions of this
section. This Lease and each of the
Lease's covenants and conditions shall be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, successors, assignees
and legal representatives, subject to the provisions hereof.
Any successor or assignee of Lessee who accepts an assignment of this
Lease or enters into possession hereunder shall thereby be bound by the
covenants and conditions hereof. Nothing
herein contained shall be deemed to give a right of assignment to Lessee without
the prior written consent of Lessor.
13.
DEFAULT; REMEDIES.
13.1
Default.
The occurrence of any one or more of the following events shall
constitute a material default of this Lease by Lessee:
13.1.1
The vacating or abandonment of the Premises by Lessee;
13.1.2
The failure by Lessee to make any payment of rent or any other payment
required to be made by Lessee hereunder, as and when due, where such failure
shall continue for a period of five (5) days after written notice thereof from
lessor to Lessee. In the event that
Lessor serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable
Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also
constitute the notice required by this subparagraph;
13.1.3
Except as otherwise provided in this Lease, the failure by Lessee to
observe or perform any of the covenants, conditions or provisions of this Lease
to be observed or performed by Lessee, other than described in Paragraph 13.1.2
above, where such failure shall continue for a period of thirty (30) days after
written notice thereof from Lessor to Lessee; provided, however, that if the
nature of Lessee's noncompliance is such that more than thirty (30) days are
reasonably required for its cure, then Lessee shall not be deemed to be in
default if Lessee commenced such cure within said thirty (30) day period and
thereafter diligently prosecutes such cure to completion.
To the extent permitted by law, such thirty (30) day notice shall
constitute the sole and exclusive notice required to be given to Lessee under
applicable Unlawful Detainer statutes;
13.1.4
(i) The making by Lessee of any general arrangement or general assignment
for the benefit of creditors; (ii) Lessee becomes a "debtor" as
defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the
case of petition filed against Lessee, the same is dismissed within sixty (60)
days); (iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where possession is not restored to Lessee within thirty
(30) days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Lessee's assets, unless by Lessor located at the Premises
or of Lessee's interest in this Lease, where such seizure is not discharged
within thirty (30) days. In the
event that any provision of this Paragraph 13.1.4 is contrary to any applicable
law, such provision shall be of no force or effect; or
13.1.5
The discovery by Lessor that any financial statement given to Lessor by
Lessee, any assignee of Lessee, any subtenant of Lessee, any successor in
interest of Lessee or any guarantor of Lessee's obligation hereunder, was false.
13.2
Remedies.
In the event of any such default by Lessee, Lessor may at any time
thereafter, with or without notice or demand and without limiting Lessor in the
exercise of any right or remedy which
Lessor may have by reason of such default:
13.2.1
The right to declare the term hereof ended and to re-enter and take
possession of the premises and remove all persons therefrom, and Lessee shall
have no further claim thereon or hereunder; or
13.2.2
The right without declaring this Lease ended to re-enter the Premises and
occupy or lease the whole or any part thereof for and and account of Lessee and
upon such terms and conditions and for such rent as Lessor may deem proper and
to collect said rent and any other rent that may thereafter become payable and
apply the same toward the amount due or thereafter to become due from Lessee and
on account of such expense of such subletting and other damages sustained by
Lessor; and should such rental be less than that herein agreed to be paid by
Lessee, Lessee agrees to pay such deficiency to Lessor in advance on the first
day of each month and to pay to the Lessor forthwith upon any such reletting the
costs and expenses Lessor may incur by reason thereof and should such rental be
more than that herein agreed to be paid by Lessee, Lessor shall hold said sums
free to be applied to future damages; or
13.2.3
The right, even though it may have relet said Premises, to thereafter
elect to terminate this Lease and all of the rights of Lessee in or to the
Premises.
Should Lessor have relet the Premises under the provisions of
subparagraph 13.2.2 above, it may execute any such lease in its own name, and
the Lessee therein named shall be under no obligation whatsoever to see to the
application by Lessor of any rent collected by Lessor from such Lessee, nor
shall Lessee hereunder have any right or authority whatever to collect any rent
from such Lessee. Lessor shall not
be deemed to have terminated this Lease or the liability of Lessee to pay rent
thereafter to accrue or Lessee's such re-entry or by any action in unlawful
detainer or otherwise to obtain possession of the Premises, unless Lessor shall
have notified Lessee in writing that it has so elected to terminate this Lease.
Nothing herein contained shall be construed as obligating Lessor to relet
the whole or part of the Premises. In
the event of any entry or taking possession of the Premises as aforesaid, Lessor
shall have the right, but not the obligation, to remove therefrom all or any
part of the personal property located therein and may place the same in storage
at a public warehouse at the expense and risk of the owner or owners thereof.
In the event of Lessor's default and Lessor's retaking of possession of
the Premises, whether this Lease is terminated by Lessor or not, Lessee agrees
to pay to Lessor as an additional item of damages the cost of repairs,
alterations, redecorating, leasing commissions and Lessor's other expenses
incurred in reletting the Premises to a new Lessee.
Should Lessor elect to terminate this Lease under the provisions of
subparagraphs 13.2.1 or 13.2.3 above, Lessor shall thereupon, without waiting
for the end of the terms hereof, be entitled to recover from Lessee as damages
the amount, if any, by which the aggregate of rental and other charges payable
by Lessee for the balance of the term of this Lease, shall exceed the then
reasonable rental value of the Premises for the remainder of the term of this
Lease, in addition to recovering the rent then unpaid, if any.
Lessee agrees that Lessor shall have a landlord's lien on and against all
personal property of Lessee from time to time situated on the Premises, which
lien shall secure the payment of all rental and additional charges payable by
Lessee to Lessor under the terms hereof.
13.2.4
All rights and remedies of Lessor herein enumerated shall be cumulative
and none shall exclude any other right or remedy allowed.
13.3
Late Charges. Lessee
hereby acknowledges that late payment by Lessee to Lessor of Base Rent, or other
sums due hereunder, will cause Lessor 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 on Lessor by the terms
of any mortgage or trust deed covering the Property.
Accordingly, if any installment of Base Rent, or any other sum due from
Lessee shall not be received by Lessor or Lessor's designee within five (5) days
after such amount shall be due, then, without any requirement for notice to
Lessee, Lessee shall pay to Lessor a late charge equal to ten percent (10%) of
such overdue amount (base rent and/or other charges due to Lessor plus
transaction privilege tax). The
parties hereby agree that such late charge represents a fair and reasonable
estimate of the costs Lessor will incur by reason of late payment by Lessee.
Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's default with respect to such overdue amount, nor prevent
Lessor from exercising any of the other rights and remedies granted hereunder.
In the event that a late charge is payable hereunder, whether or not
collected, for three (3) consecutive installments of any of the aforesaid
monetary obligations of Lessee, than Base Rent shall automatically become due
and payable quarterly in advance, rather than monthly, notwithstanding Paragraph
4 or any other provision of this Lease to the contrary.
All delinquent payments and late charges should be paid by cashier's
check or certified funds.
14.
CONDEMNATION.
14.1
Condemnation.
If the Premises or any portion thereof of the Industrial Center are
taken under the power of eminent domain, or sold under the threat of the
exercise of said power (all of which
are herein called "Condemnation"), this Lease shall terminate as to
the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If
more than ten percent (10%) of the floor area of the Premises, or more than
twenty-five percent (25%) of that portion of the Common Areas designated as
parking for the Industrial Center is taken by Condemnation, Lessee may, at
Lessee's option, to be exercised in writing only within ten (10) days after
Lessor shall have given Lessee written notice of such taking (or in the absence
of such notice, within ten (10) days after the condemning authority shall have
taken possession), terminate this Lease as of the date the condemning authority
takes such possession. If Lessee
does not terminate this Lease in accordance with the foregoing, this Lease shall
remain in full force and effect as to the portion of the Premises remaining,
except that the rent shall be reduced in the proportion that the floor area of
the Premises taken bears to the total floor area of the Premises.
No reduction of rent shall occur if the only area taken is that which
does not have the Premises located thereon.
Any award for the taking of all or any part of the Premises under the
power of eminent domain or any payment made under threat of the exercise of such
power shall be the property of Lessor, whether such award shall be made as
compensation or diminution in value of the leasehold or for the taking of the
fee, or severance damages; provided, however, that Lessee shall be entitled to
any award for loss of or damage to Lessee's trade fixtures and removable
personal property. In the event
that this Lease is not terminated by reason of such Condemnation, Lessor shall,
to the extent of severance damages received by lessor in connection with such
condemnation, repair any damage to the Premises caused by such Condemnation
except to the extent that Lessee has been reimbursed therefor by the condemning
authority. Lessee shall pay any
amount in excess of such severance damages required to complete such repair.
14.2
Temporary Condemnation.
In the event of a temporary Condemnation of the Premises, this Lease
shall remain in effect and lessor shall receive any award made for such
Condemnation. If a temporary
Condemnation remains in effect at the expiration or earlier termination of this
Lease, Lessee shall pay Lessor the reasonable costs of performing any
obligations required of Lessee by this Lease with respect to the surrender of
the Premises and upon such payment Lessee shall be excused from such
obligations. If a temporary
Condemnation is for a period which extends beyond the term of the Lease, this
Lease shall terminate as of the date of occupancy by the condemning authority.
Lessor shall be entitled to the entire award paid for such Condemnation,
except Lessee shall have the right to recovery from the condemning authority,
but not from Lessor, such compensation as may be separately awarded to lessee in
connection with costs in removing Lessee's merchandise, furniture, fixtures,
leasehold improvements and equipment to a new location; and subject to the
foregoing, Lessee waives any claim to any part of the award from Lessor or the
condemning authority. Upon any such
temporary Condemnation, rent shall
be adjusted to the date of such occupancy.
15.
CORPORATE OR PARTNERSHIP LESSEE.
15.1
If Lessee is a corporation, Lessee
shall, if requested by Lessor, at the time of execution of this Lease, deliver
to Lessor a certified resolution of its board of directors authorizing the
execution of this Lease on behalf of Lessee.
If, at any time during the term of this Lease, any part or all of the
corporate shares of Lessee shall be transferred by sale, assignment, bequest,
inheritance, operation of law or other disposition, or new shares shall be
issued, so as to result in a change in the present effective voting control of
Lessee by the person or persons having such control as of the date of this
Lease, Lessee shall promptly notify Lessor in writing of such change, and Lessor
may terminate this Lease at any time within ninety (90) days after receipt of
such notice by giving Lessee not less than thirty (30) days prior written notice
of such termination.
15.2
If lessee is a partnership, Lessee
shall, at the time of execution of this Lease, if requested by Lessor, deliver
to Lessor a copy of the partnership agreement, together with any amendments,
establishing the partnership, designating all of the partners therein,
evidencing the authority of the partnership to enter into this Lease,
designating the person or persons authorized to execute this Lease on behalf of
the partnership and indicating the persons having effective operating control of
the partnership. If, at any time
during the term of this Lease, more than twenty-five percent (25%) of the
general partnership interests in Lessee are transferred by sale, assignment,
bequest, inheritance, operation of law or other disposition, or if new partners
shall be admitted so as to result in a change in the effective operating control
of Lessee by the person or persons having such control as of the date of this
Lease, Lessee shall promptly notify Lessor in writing of such change, and Lessor
may terminate this Lease within ninety (90) days after receipt of such notice by
giving Lessee not less than thirty (30) days prior written notice of such
termination.
16.
ESTOPPEL CERTIFICATE.
16.1
Each party (as "responding party") shall at any time upon not
less than ten (10) days prior written notice from the other party
("requesting party") execute, acknowledge and deliver to the
requesting party a statement in writing (i) 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 rent and other charges are paid in
advance, if any; (ii) acknowledging that there are not, to the responding
party's knowledge, any uncured defaults on the part of the Lessor specifying
such defaults if any are claimed; and (iii) acknowledging the truth of other
such statements as the requesting party may specify, concerning the Lease. Any such statement may be conclusively relied upon by the
requesting party or by any prospective purchaser or encumbrancer of the Premises
or of the business of the requesting party.
16.2
If Lessor desires to finance, refinance, or sell the Property, or any
part thereof, Lessee hereby agrees to deliver to any lender or purchaser
designated by Lessor such financial statements of Lessee as may be reasonably
required by such lender or purchaser. Such statements shall include the past three (3) years
financial statements of Lessee. All
such financial statements shall be received by Lessor and such lender or
purchaser in confidence and shall be used only for the purpose herein set forth.
16.3
Lessee agrees to execute any documents required in subparagraph 16.1 and
16.2 and failure to do so within ten (10) days after written demand does hereby
make, constitute and irrevocably appoint Lessor as Lessee's attorney in fact and
in Lessee's name, place and stead, to do so.
17.
LESSOR'S LIABILITY. The
term "Lessor" as used herein shall mean only the owner or owners, at
the time in question, of the fee title or a tenant's interest in a ground lease
of the Industrial Center. In the
event of any transfer of such title or interest, Lessor herein named (and in
case of any subsequent transfers, the grantor) shall be relieved from and after
the date of such transfer of all liability as respects Lessor's obligations
thereafter to be performed, provided that any funds in the hands of Lessor or
the then grantor at the time of such transfer, in which Lessee has an interest,
shall be delivered to the grantee. The
obligations contained in this this Lease to be performed by Lessor shall,
subject as aforesaid, be binding on Lessor's successors and assigns, only during
their respective periods of ownership.
18.
SEVERABILITY. The
invalidity of any provision of this Lease as determined by a court of competent
jurisdiction, shall in no way affect the validity of any other provision hereof.
19
INTEREST ON PAST-DUE OBLIGATIONS. Except
as expressly herein provided, any amount due to Lessor not paid when due shall
bear interest at eighteen percent (18%) from the date due.
Payment of such interest shall not excuse or cure any default by Lessee
under this Lease; provided, however, that interest shall not be payable on late
charges incurred by Lessee nor on any amounts upon which late charges are paid
by Lessee.
20.
TIME OF ESSENCE.
Time is of the essence with respect to the obligations to be
performed under this Lease.
21.
ADDITIONAL RENT. All
monetary obligations of Lessee to Lessor under the terms of this Lease,
including but not limited, Lessee's share of insurance, tax and common area
maintenance expenses payable, shall be deemed to be rent.
22.
INCORPORATION OF PRIOR AGREEMENTS; REPRESENTATIONS.
This Lease contains all agreements of the parties with respect to any
matter mentioned herein. No prior
or contemporaneous agreement or understanding pertaining to any such matter
shall be effective. This Lease may
be modified in writing only, signed by the parties in interest at the time of
the modification. Except as
otherwise stated in this Lease, Lessee hereby acknowledges that neither the real
estate broker hereof nor any cooperating broker on this transaction nor the
Lessor or any employee or agents of any such persons has made any oral or
written warranties or representations to Lessee relative to the condition or use
by Lessee of the Premises or the Property and Lessee acknowledges that Lessee
assumes all responsibility regarding the Occupational Safety Health Act, the
legal use and adaptability of the Premises and the compliance thereof with all
applicable laws and regulations in effect during the terms of this Lease except
as otherwise specifically stated in this Lease.
23.
NOTICES. Wherever in
this Lease it shall be required or permitted that Notice or demand be given or
served by Lessor or Lessee to or on the other, such notice or demand shall be in
writing and shall be deemed to be given or served at the time of mailing by
certified or registered mail, postage prepaid, addressed to the address of the
addressee specified herein. Either
party may, by notice to the other, specify a different address for notice
purposes, except that upon Lessee's taking possession of the Premises, the
Premises shall constitute Lessee's address for notice purposes.
A copy of all notices required or permitted to be given to Lessor
hereunder shall be concurrently transmitted to such party or parties at such
address as Lessor may from time to time hereafter designate by notice to Lessee.
24.
WAIVERS. No waiver by
Lessor or any provision hereof shall be deemed a waiver of
any other provision hereof or of any subsequent breach by Lessee of the
same or any other provision. Lessor's
consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Lessor's consent or approval of any subsequent act by Lessee.
The acceptance of rent hereunder by Lessor shall not be a waiver of any
preceding breach by Lessee of any provision hereof, other than the failure of
Lessee to pay the particular rent so accepted, regardless of Lessor's knowledge
of such preceding breach at the time of acceptance of such rent.
25.
RECORDING. Lessee
shall, upon request of Lessor, execute, acknowledge and deliver to Lessor a
"short form" Memorandum of (this) Lease for recording purposes.
26.
HOLDING OVER. If
Lessee, with Lessor's consent, remains in possession of the Premises or any part
thereof after the expiration of the term hereof, such occupancy shall be a
tenancy from month to month upon all the provisions of this Lease pertaining to
the obligations of Lessee, but all Options, if any, granted under the terms of
this Lease shall be deemed terminated and be of no further effect during said
month to month tenancy. The monthly
rental amount to be paid in this Holding Over Period shall be determined by
multiplying the Base Rent (the rent in effect immediately prior to such Holding
Over) by one hundred fifty percent (150%) plus applicable Transaction Privilege
Tax and shall be paid on the first day following the expiration of this Lease.
27.
CUMULATIVE REMEDIES. No
remedy or election hereunder shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies at law or in equity.
28.
COVENANTS AND CONDITIONS. Each
provision of this Lease performable by Lessee shall be deemed both a covenant
and a condition.
29.
BINDING EFFECT; CHOICE OF LAW. Subject
to any provisions hereof restricting assignment or subletting by Lessee and
subject to the provisions of Paragraph 17, this Lease shall bind the parties,
their personal representatives, successors and assigns.
This Lease shall be governed by the laws of the State where the
Industrial Center is located and any litigation concerning this Lease between
the parties hereto shall be initiated in the county in which the Industrial
Center is located.
30.
SUBORDINATION.
30.1
This Lease and any Option granted hereby, at Lessor's option, shall be
subordinate to any ground lease, mortgage, deed of trust, or any other
hypothecation or security now or hereafter placed upon the Industrial Center and
to any and all advances made on the security thereof and to all renewals,
modifications, consolidations, replacements and extensions thereof.
Notwithstanding such subordination, Lessee's right to quiet possession of
the Premises shall not be disturbed if Lessee is not in default and so long as
Lessee 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 and any Options granted hereby prior to the lien of its mortgage, deed of
trust or ground lease, and shall give written notice thereof to Lessee, this
Lease and such Options shall be deemed prior to such mortgage, deed of trust or
ground lease, whether this Lease or such Options are dated prior or subsequent
to the date of said mortgage, deed of trust or ground lease or the date of
recording thereof. Lessee shall be
required to execute said written subordination agreements that any mortgagee,
trustee, or ground lessor shall so require.
30.2
Attornment.
In the event any proceedings are brought for default under any ground
or underlying lease or in the event of foreclosure or the exercise of the power
of sale under any mortgage or deed of trust made by the Lessor covering the
Premises, the Lessee shall attorn to the purchaser upon any such foreclosure or
sale and recognize such purchaser as the Lessor under this Lease; provided said
purchaser expressly agrees in writing to be bound by the terms of the Lease.
31.
ATTORNEYS' FEES.
31.1
If either party named herein brings an action to enforce the terms
hereof, declare rights hereunder, or makes demand without bringing an action,
the prevailing party in any action, on trial or appeal, shall be entitled to his
reasonable attorneys' fees to be paid by the losing party as fixed by the court.
31.2
If Lessor has to resort to using the services of an attorney to enforce
any of the provisions of this Lease, including but not limited to collection of
rent or other monies due Lessor from Lessee, Lessee shall reimburse Lessor
immediately upon presentation of a copy of
an attorney's invoice for such services incurred.
Lessor need not bring action upon Lessee to enforce this provision 31.2.
32
LESSOR'S ACCESS. Lessor
and Lessor's agents shall have the right to enter the Premise at reasonable
times for the purpose of inspecting the same, showing the same to prospective
purchasers, lenders, or lessees, and making such alterations, repairs,
improvements or additions to the Premises or to the building of which they are
part as Lessor may deem necessary or desirable. Lessor may at any time place on or about the Premises or the
Building any ordinary "For Sale" signs and Lessor may at any time
during the last one hundred twenty (120) days of the term hereof place on or
about the Premises any ordinary "For Lease" signs.
All activities of Lessor pursuant to this paragraph shall be without
abatement of rent, nor shall Lessor have any liability to Lessee for the same.
33.
AUCTIONS. Lessee shall
not conduct, nor permit to be conducted, wither voluntarily or involuntarily,
any auction upon the Premises or the Common Areas without first having obtained
Lessor's prior written consent. Notwithstanding
anything to the contrary in this Lease, Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to grant such
consent.
34.
MERGER. The voluntary
or other surrender of this Lease by Lessee, or a mutual cancellation thereof, or
a termination by Lessor, shall not work a merger, and shall, at the option of
Lessor, terminate all or any existing subtenancies or may, at the option of
Lessor, operate as an assignment to Lessor of any or all of such subtenancies.
35.
CONSENTS. Except for
Paragraph 33 hereof, wherever in this Lease the consent of one party is required
to an act of the other party, such consent shall not be unreasonably withheld or
delayed.
36.
GUARANTOR. In the event
that there is a guarantor of this Lease, said guarantor shall have the same
obligations as Lessee under this Lease.
37.
QUIET POSSESSION.
Upon Lessee paying the rent for the Premises and observing and
performing all of the covenants, conditions and provisions on Lessee's part to
be observed and performed hereunder, Lessee shall have quiet possession of the
Premises for the entire term hereof subject to all of the provisions of this
Lease. The individuals executing
this Lease on behalf of Lessor represent and warrant to Lessee that they are
fully authorized and legally capable of executing this Lease on behalf of Lessor
and that such execution is binding upon all parties holding an ownership
interest in the Property.
38.
SECURITY MEASURES. Lessee
hereby acknowledges that Lessor shall have no obligation whatsoever to provide
guard service or other security measures for the benefit of the Premises or the
Industrial Center. Lessee assumes
all responsibility for the protection of Lessee, its agents, and invitees and
the property of Lessee and of Lessee's agents and invitees from acts of third
parties.
39.
EASEMENTS. Lessor
reserves to itself the rights, from time to time, to grant such easements,
rights and dedications that Lessor deems necessary or desirable, and to cause
the recordation of Parcel Maps and restrictions, so long as such easements,
rights, dedications, Maps and restrictions do not unreasonably interfere with
the use of the Premises by Lessee. Lessee
shall sign any of the aforementioned documents upon request of Lessor and
failure to do so shall constitute a material default of this Lease without the
need for further notice to Lessee.
40.
PERFORMANCE UNDER PROTEST. If
at any time a dispute shall arise as to any amount or sum of money to be paid by
one party to the other under the provisions hereof, the party against whom the
obligation to pay the money is asserted shall have the right to make payment
"under protest" and such payment shall not be regarded as a voluntary
payment, and there shall survive the right on the part of said party to
institute suit for recovery of such sum. If
it shall be adjudged that there was no legal obligation on the part of said
party to pay such sum or any part thereof, said party shall be entitled to
recover such sum or so much thereof as it was not legally required to pay under
the provisions of this Lease.
41.
CONFLICT. Any conflict
between the printed provisions of this Lease and the typewritten or handwritten
provisions, if any shall be controlled by the typewritten or handwritten
provisions.
42.
OFFER.
Preparation of this Lease by Lessor or Lessor's agent and submission
of same to Lessee shall not be deemed an offer or a reservation of or option for
the Premises, to lease. This Lease
shall become binding upon Lessor and Lessee only when fully executed and
delivered by Lessor and Lessee.
43.
INITIAL RENTAL PAYMENT.
In the vent Lessee tenders a check as its initial payment of rent,
security deposit or other charges and any such check is returned to Lessor
unpaid for any reason whatsoever, this Lease shall automatically terminate
without notice and Lessee shall have no right to remain in possession of the
Premises. Lessor, in addition to
all rights and remedies which it may have under this Lease and the law, may
immediately lock the Premises without notice and prevent Lessee from reentering
or removing any of his property located herein.
44.
MULTIPLE TENANT OR MULTIPLE COMPLEX BUILDING. In the event that the Premises are part of a larger
building or group of buildings, then Lessee agrees that it will abide by, keep
and observe all reasonable rules and regulations which Lessor may make from time
to time for the management, safety, care, and cleanliness of the building and
grounds, the parking of vehicles and the preservation of good order therein as
well as for the convenience of other occupants and tenants of the building.
Lessee agrees to pay, as additional rent during the Lease term, its pro
rata share of Lessor's cost of operating, maintaining and repairing such portion
of the Premises or such portion of the property of which the Premises are a
part, which are common areas or used or shared by Lessee and other occupants
thereof, including but not limited to all parking areas, roadways, walkways,
truckways, stairways, roofing areas, loading docks, delivery areas, landscaped
areas, maintenance areas and all other facilities provided for the convenience
and use of Lessee, its agents, employees and customers.
Such costs shall include but not be limited to all costs for utilities,
cleaning, garbage and refuse disposal, sweeping, landscaping, policing, wages,
management fees not to exceed five percent (5%) of total monthly rental,
supplies and small tools. The
proportionate share of the common area costs which Lessee is obligated to pay
shall be based upon the ration that the floor area in the Premises bears to the
total floor area in the building or group of buildings of which the Premises are
a part. At the beginning of each
lease years, Lessor will supply Lessee with an estimate of the common area
maintenance costs, including property taxes and insurance, which are payable by
Lessee on a monthly basis, in addition to the rent provided for hereunder.
Landlord will provide Lessee with a statement for the actual common area
costs, including property taxes and insurance at the end of each year.
Any costs paid by Lessee in excess of those actually incurred will be
refunded by Lessor, and any expenses actually incurred by Lessor and not
previously paid by Lessee shall be immediately due and payable.
The violation of any such rules and regulations or the failure to pay
such pro rata share of costs, shall be deemed a material breach of this Lease by
Lessee.
45.
OUTSIDE STORAGE; TRASH. No
storage will be allowed outside the building on the Premises or on any of the
common areas. This includes but is
not limited to supplies, materials, goods, pallets, dunnage, equipment, vehicles
and boats. All trash must be placed
in trash receptacles. If Lessee
creates more trash than is considered reasonable for the amount of the Premises
leased, at the Lessor's request Lessee shall procure and pay for additional
trash receptacle(s) and collection thereof.
A violation of this paragraph shall constitute an event of default by
Lessee under Paragraph 13.1.
46.
OUTSIDE WORK. No work
by Lessee shall be permitted on sidewalks, roofs, streets, driveways, parking or
landscaped areas surrounding the Premises.
This includes but is not limited to assembly, construction, mechanical
work, painting, drying, layout, cleaning or repair of goods or materials.
A violation of this paragraph shall constitute an event of default by
Lessee under Paragraph 13.1.
47.
SIGNS.
Within sixty (60) days after execution of this Lease, Lessee shall
provide, at his sole costs and expense, a Lessee identification sign in
conformance with Lessor's overall sign program.
Such sign shall only set forth Lessee's name, as written on this Lease,
and logo. Such sign is subject to
lessor's written approval which shall not be unreasonably withheld.
48.
ACCORD AND SATISFACTION. No
payment by Lessee of a lesser amount than the rent nor any endorsement on any
check or letter accompanying any check or payment as Rent shall be deemed an
accord and satisfaction of full payment of rent, and Lessor may accept such
payment without prejudice to Lessor's right to recover the balance of such Rent
or to pursue other remedies.
49.
LIMITATION OF LESSOR'S LIABILITY. The
obligations of Lessor under this Lease are not personal obligations of the
individual partners, directors, officers and shareholders of Lessor, and Lessee
shall look solely to the Premises for satisfaction of any liability and shall
not look to other assets of Lessor nor seek recourse against the assets of the
individual partners, directors, officers and shareholders of Lessor.
50.
RELOCATION. At any time
after Lessee's execution of this Lease, Lessor shall have the right, upon
providing Lessee thirty (30) days notice in writing, to provide Lessee with
reasonably similar space elsewhere in the Building or Industrial Center of
approximately the same size as the Premises and to move Lessee to said space.
In the event that Lessor shall exercise such right subsequent to actual
occupancy of the Premises by Lessee, Lessor shall be responsible for moving
Lessee and shall pay the cost of moving Lessee to such new space and all other
reasonable expenses related to such relocation.
In the event Lessor moves Lessee to such new space, then this Lease and
each and all of the terms and covenants and conditions hereof shall remain in
full force and effect and thereupon be deemed applicable to such new space. Should Lessee refuse to permit Lessor to move Lessee to such
new space at the end of the thirty (30) day period, Lessor shall have the right
to terminate this Lease by notice given to Lessee in writing within ten (10)
days following the end of said thirty (30) day period, which termination shall
be effective sixty (60) days after the date of the original notice of relocation
by Lessor.
51.
LESSEE'S PROPORTIONATE SHARE. Lessee's
proportionate share of total rentable area in the Industrial Center is
square feet divided by
total Industrial Center square feet or
percent (
%).
52.
ADDENDUM. Attached
hereto is an addendum or addenda containing paragraphs through
which constitute a part of this Lease.
LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERMS AND
PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED
AND VOLUNTARY CONSENT THERETO. THE
PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS
LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF
LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.
LESSOR
SUGGESTS THAT IF LESSEE IS UNCLEAR OR UNCERTAIN AS TO THE MEANING AND EFFECT OF
ANY OF THE PROVISIONS OF THIS LEASE, LESSEE SHOULD SUBMIT THIS LEASE TO LESSEE'S
ATTORNEY FOR CLARIFICATION.
The
parties hereto have executed this Lease at the place and on the dates specified
immediately adjacent to their respective signatures.
LESSOR
LESSEE
By:
By:
Its:
Its:
By:
By:
Its:
Its:
Executed
on:
Executed on:
(Date)
(Corporate Seal)
(Date)
(Corporate Seal)
ADDRESS:
ADDRESS:
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