EXHIBIT 10.10
LEASE AGREEMENT
This agreement made by and between NORTH ▇▇▇▇▇▇ HOLDINGS, INC., a New
Hampshire corporation duly organized and existing, with its principal place of
business at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇, sometimes
hereinafter referred to as "Owner" on the one part and DOVER SADDLERY INC., a
corporation duly organized and existing under the laws of the Commonwealth of
Massachusetts, whose mailing address is: ▇.▇. ▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇, sometimes hereinafter called "Tenant" on the other part.
WITNESSETH:
WHEREAS, the Owner has certain real estate located at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, in North Conway, New Hampshire, with a building thereon, a portion of
which the Tenant is desirous of leasing; and
WHEREAS, the parties wish to establish their respective rights and
obligations regarding the terms and conditions of this leasehold agreement;
NOW THEREFORE, by these presents and in consideration of One Dollar and
other valuable consideration including the mutual promises hereunder made, the
parties hereby agree as follows:
1. Tenant agrees to lease and Owner to let in accordance with the terms
and conditions hereof, Unit #7 of said building, together with the
right of access to and use of the present common parking area
located adjacent to said building. The leased premises shall include
office space the area of which is approximately 1800 square feet.
Said portion of building and lot constitute the entire leasehold
premises and are located on said White Mountain Highway, North
▇▇▇▇▇▇, in the town of ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ County, New Hampshire.
2. This lease shall hold for a term of three years, commencing October
1, 2003 and ending on September 30, 2006. Provided that the Tenant
shall have the option to renew this lease for three (3) additional
three (3) year terms consecutively following the initial term
provided such option is exercised in writing at least two months
prior to the expiration of the initial term or any subsequent
renewal term, and Tenant is not then in material breach of any term
or condition hereunder.
3. Tenant agrees to pay and Owner to accept monthly rent of Twenty-Two
Hundred Dollars ($2,200.00) payable in advance commencing October 1,
2003, and thereafter for the next eleven months hereof. At the end
of said period, and annually thereafter on the anniversary date of
this Lease, the monthly rental payable shall be increased at the
rate of two and one-half percent (2.5%) per year for the term of
this Lease Agreement. The monthly rental for each year of any
subsequent renewal term shall be increased at the rate of two and
one-half percent (2.5%) per year.
In addition, Tenant shall pay to Owner as General Maintenance fee,
the sum of Eighteen Hundred Dollars ($1800.00) annually. This fee
shall represent the Tenant's share of the annual cost of maintenance
of parking areas, snow removal and maintenance of common access
areas. Said fee shall include the cost of trash removal. Said
General Maintenance fee shall be paid in monthly installments of One
Hundred Fifty Dollars ($150.00) commencing October 1, 2003, and
thereafter on the first of each month for the next eleven months
hereof. The General Maintenance fee for each successive year of this
lease agreement or any subsequent renewal term hereof shall be
reviewed and established on the anniversary date of this lease
agreement. Such review shall include a summary provided by Owner to
Tenant of all applicable fees and assessments used to arrive at the
adjusted rate so established.
Further, Tenant shall pay his prorated share of all real estate
taxes assessed against the subject premises and real estate taxes
assessed against the site which is the subject of this leasehold.
Computation of the Tenant's share of real estate taxes shall be
based upon the percentage of the total area occupied by the Tenant
multiplied by the total real estate tax ▇▇▇▇. Once the ▇▇▇▇ is
received by Owner, Owner shall deliver a copy thereof with any
allocation necessary to determine the amount payable by Tenant and
Tenant shall forthwith reimburse Owner in full.
4. In addition to the above rentals payable, Tenant agrees to pay the
sum of Twenty Two Hundred Dollars ($2200.00) as security deposit to
be held by Owner until the termination of this Lease Agreement. At
such time, Owner shall inspect the leased premises and, should there
be no damage resulting during the Tenant's occupation of the leased
premises, said security deposit shall forthwith be returned to
tenant.
5. Tenant further agrees to pay all costs of electricity, telephone,
heat, water, sewer, and other expenses of operation of the leased
premises and access to the same and shall keep the leased premises
in usual maintenance and repair reasonably necessary and appropriate
in the normal operation thereof. Such maintenance shall include
glass breakage.
6. Tenant agrees to conduct no business which will increase the
casualty insurance premium payable on the building by Owner, of if
such insurance premium is increased due to the type of business
operated the Tenant, Tenant agrees to immediately reimburse Owner
the increased costs of such insurance due to the Tenant's operation
for each year such additional insurance premium is charged during
the Tenant's occupancy.
7. Tenant agrees that there shall be no pets allowed on or about the
leased premises and all adjacent common areas and parking areas.
8. Tenant shall provide and maintain public liability and property
damage insurance with a company or companies approved by owner in
the minimum amount of $1,000,000 per occurrence and $500,000 per
individual, and $50,000 property damage naming Owner as coinsured
with no right of subrogation over against said Owner by any insurer
hereunder. A certificate evidencing such insurance and naming the
Owner as coinsured thereunder shall be delivered to Owner at or
prior to the execution hereof with no right of cancellation thereof
without written notice to said Owner.
9. At the expiration of this lease, the Tenant shall be entitled to
remove any shelving or other equipment placed within the building by
the Tenant provided that all walls, floors and ceilings shall be
refinished and all holes plugged and/or filled and repainted at the
sole expense of Tenant. If there are no holes or other damage to
walls, ceilings or floors by Tenant during his occupancy, then
repainting shall not be required by Tenant, but if such holes have
been made and are refilled and/or plugged, refinishing to walls,
ceilings and floors, as appropriate, shall be completed by painting
where appropriate and other refinishing consistent with the surface
to be refinished, all at the expense of the Tenant.
10. Tenant agrees that there shall be no assignment or subletting of
this lease without the prior written consent of the Owner.
11. Owner shall have the right to enter upon the leased premises or any
part thereof without charge at all reasonable times and in case of
emergency, at any time, to inspect the same, to show the leased
premises to prospective purchasers or tenants, to make or facilitate
any repairs, alterations, additions, or improvements to the leased
premises, or any part of the entire premises, including, without
limitation, to install or maintain in and remove from the leased
premises, the pipes, wires and other conduits (but nothing in this
provision shall obligate Owner to make any repairs, alterations,
additions or improvements other than as specified explicitly
hereunder) and Tenant shall not be entitled to any abatement or any
reduction of rent or damages by reason of any of the foregoing.
However, Owner shall at all
times make no such entry or repairs or improvements to the property
in the manner so as to substantially interfere with the business
then conducted on the premises by Tenant, save as necessary in an
emergency.
12. In the event the premises is destroyed by fire or other casualty
during the term of this Lease Agreement, Owner shall cause the
property to be repaired and restored to its former condition
forthwith at their sole expense and during such term the rental
payable hereunder by Tenant shall be abated. There shall be no
extension to the end of the leasehold of this agreement. However, in
the event such repair and/or restoration cannot reasonably be
accomplished within thirty days after such loss by fire or other
casualty, then in such event, Tenant and/or Owner shall be entitled
to terminate this lease by written notice to the other and
thereafter the parties shall be relieved from all further
responsibilities hereunder. However, a loss by fire or other
casualty which may be reasonably repaired and or restored within
said thirty days after such incident shall be so repaired and
restored by Owner forthwith and only during the term hereof in which
the Tenant's business is required to cease operation, shall the rent
be abated as otherwise payable hereunder.
13. Owner shall maintain such fire or other casualty insurance on the
building and its mechanical systems, with Tenant to maintain its own
fire or other casualty insurance covering the equipment and property
of Tenant kept within the premises. Neither of the parties or any
insurer thereof shall have any right of subrogation over against the
other.
14. In the event all or any portion of the leasehold premises is taken
by eminent domain or other government proceeding in an area so as to
render the balance thereof unusable by Tenant, then in such event,
this leasehold shall forthwith terminate on the taking thereof, and
all damages arising by reason of such taking shall accrue solely to
the benefit of the Owner. However, in the event such taking does not
render the premises unusable by the Tenant, this leasehold shall
otherwise continue without diminution of the leasehold payments or
other payments hereunder due by Tenant to Owner.
15. Waiver or breach of any term or condition hereunder by Owner shall
not be deemed a waiver of any subsequent breach of any term of
condition hereunder. If Tenant, or any person claiming under him
shall remain in possession of the leased premises or any part
thereof after the expiration of the term hereof, the person
remaining in possession shall be deemed a tenant at sufferance, and
during such holding over, all rentals hereunder shall be payable at
twice the rate then in effect immediately prior to the expiration of
his term. No payment by Tenant or acceptance by Owner of a lesser
amount than shall be due from Tenant to Owner shall be deemed to be
anything buy payment on account, and the acceptance by Owner of a
check for a lesser amount with an endorsement or statement thereon,
or upon a letter accompanying said check that said lesser amount is
payment in full, shall not be deemed an accord in satisfaction, and
Owner may accept said check without prejudice to recover the balance
due or pursue any other remedy.
16. Tenant further agrees to pay all expenses, including reasonable
attorney's fees, as may be determined by the court having
jurisdiction hereover, incurred by owner on occasion of any action
prompted by breach of this lease agreement by Tenant. Moreover,
Owner agrees to pay all expenses including reasonable attorney's
fees as may be determined by the court having jurisdiction hereover,
incurred by Tenant on occasion of any action prompted by breach of
this agreement by Owner.
17. This Lease agreement shall be binding on the heirs, successors and
assigns of the parties hereto respectively.
IN WITNESS WHEREOF, the parties have interchangeably set their hands this
24th day of November, 2003.
In the presence of:
NORTH ▇▇▇▇▇▇ HOLDINGS, INC.
(Owner)
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ By: /s/ [ILLEGIBLE]
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Witness Its President
DOVER SADDLERY, INC.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇
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Witness Tenant ▇▇▇▇▇▇▇ ▇▇▇▇▇
Controller