6626-ISA lease
COMMERCIAL LEASE
Persons and Premises
▇▇▇▇▇▇ ▇▇▇, hereinafter referred to as "Lessor", hereby leases to ISA
Internationale INC. Guarantor, hereinafter referred to as "Lessee, those
certain premises, hereinafter referred to as "said premises," and further
described as ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇, ▇▇▇▇▇ CONTAINING
APPROXIMATELY 17,800 Square Foot and shown on exhibit A and exhibit B on the
following terms and conditions: of this lease.
Right of first refusal
▇▇▇▇▇▇ agrees to give lessee a right of first refusal option on an additional
5,000 square feet at ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇, when such
space becomes available.
Term of Lease
The term of this lease shall be commencing at 12:01 A.M. on OCT 1,
1998 and ending at 12:01 A.M. on OCT 1 2003 unless sooner terminated as provided
herein. Rent to begin on completion of building space.
Option to Renew
An additional 5 year term with a 5% annual inflation factor will be
added to the lease if lessee notifies lessors of intent to renew within 60 days
of expiration date.
Rent
▇▇▇▇▇▇ agrees to pay and lessors agree to accept, as rent for the use
and occupancy of said premises the total amount of $112,896.00 for the first
year of this lease, with a 5% increase annually. Rent is payable in advance on
the 1st day of each and every month in the discounted amount of $6,303.36 for
the first year of the lease, and the discounted amount of $8,396.64 for the
second year, $10,372 for the third year, $10,890.93 for the fourth year and
$11,435.48 for the fifth year paid monthly. Payment shall be made at the address
specified in this lease for the service of notices to lessors or at such other
addresses as served upon lessee.
Real tax and insurance
This is a net lease lessor pays real estate tax and fire insurance on
building with all other expenses paid by the tenant with liability insurance in
amounts of 1,000,000 with Lessors named as additional insured and certificates
provided to Lessors.
Deposit
On execution of this lease, Lessee deposits with Lessors the sum of
$9408.00 (CK# 5033) plus the first months rental of $6,303.36 The deposit is
used as security for the faithful
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performance of the provisions of this lease relating to rent, repairs, or
cleaning, and to be returned to Lessee on the full performance of those
provisions following the termination of this lease. Nothing contained in this
paragraph shall give Lessee the right to withhold the rent, or shall prohibit
Lessors from exercising any of the rights hereunder in respect to the
non-payment of rent.
Condition and Maintenance of Premises
▇▇▇▇▇▇ acknowledges that the plans have been examined as well as all
the equipment and personal property subject to this lease and that said
premises, equipment and personal property are in good, safe, and clean condition
and repair. ▇▇▇▇▇▇ further agrees to:
(a) Keep inside premises in good order and outside in a clean, no
outside storage, condition and on expiration or sooner termination of this lease
to surrender them to Lessors in as good condition as they are on the date of
this lease, reasonable wear and tear or damage by the elements excepted
(b) Immediately notify Lessors of any defects, dilapidations, or
dangerous conditions;
(c) The obligation with respect to maintenance of the premises and
repairs is that ▇▇▇▇▇▇ agrees to maintain and repair the outside structural
walls of the building existing on the premises and maintain and repair the roof
with drains and waterspouts, provided that no damage is occasioned by the
activities of lessee, and or agents, customers, guests, invitees, employees, or
others engaged in business or other activities with lessee,. No glass surfaces
or windows or doors shall be maintained by lessor, but is the responsibility of
lessee. All other maintenance and repairs-shall be the responsibility of the
lessee. The lessee shall promptly reimburse lessors for the cost of any repairs
to the premises or equipment or personal property subject to the lease,
undertaken by lessor that are not the responsibility of the lessor. Lessee is
liable for expenses caused by lessees negligence or misuse, or the negligence or
misuse of any of lessees invitees, licensees or guests use. and
(d) Lessee shall not permit the demised premises or any part thereof
to be used for (1) the conduct of any offensive, noisy, or dangerous activity
that would increase the premiums for fire insurance on the demised premises; (2)
the creation or maintenance of a public nuisance; (3) anything which is against
the laws or rules and regulations of any public authority including county codes
at any time applicable to the demised premises; or (4) any purpose or in any
manner which will obstruct, interfere with, or infringe on the rights of other
tenants of the Lessors. Building space shall be finished according to lessee
requirements shown in (Build out) section of this lease.
utilities
Lessee shall pay all charges incurred for the furnishing of public
utilities , Gas, Water, Sewer, and electricity to said premises, including any
deposits required for any utilities.
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Alterations and Improvements
Everything accepted subject to build-out in an "as-is" condition.
Lessee shall make no alterations or improvements to said premises nor do any
painting or redecorating of said premises without the express written consent of
▇▇▇▇▇▇▇ first had and obtained. Should Lessee make any alterations or
improvements to said premises or do any painting or redecorating of said
premises without the express written consent of Lessors first had and obtained,
or should Lessee damage or depreciate said premises, when the full cost of
restoring said premises to their prior condition shall be borne by ▇▇▇▇▇▇ and
promptly paid, on written demand, to Lessors. Any and all alterations and
improvements made to said premises by ▇▇▇▇▇▇ with the consent of Lessors,
including any wall-to-wall carpeting and draperies installed by Lessee, shall
become the property of Lessors and remain on said premises on the expiration or
sooner termination of this lease, unless otherwise agreed upon by the parties
hereto.
Hold-Harmless Clause
▇▇▇▇▇▇ agrees to indemnify and hold Lessors and the property of
Lessors, including said premises free and harmless from any and all liability,
claims, loss, damages, or expenses, including any attorney's fees and/or costs,
arising by reason of the death or injury of any person, including Lessee or any
person who is an employee or agent of Lessee, or by reason of damage to or
destruction of any property, including property owned by Lessee or any person
who is an employee or agent of ▇▇▇▇▇▇, caused or allegedly caused by some
condition of said premises, the fault of ▇▇▇▇▇▇, or some act or omission,
whether or not negligent or intentional, of Lessee or any person in, on, or
about said premises as a guest, licensee or invitee of Lessee. This section
shall not apply in area of build-out until lessee occupies said area.
Assignment and Subletting
Lessee shall not assign this lease or sublet all or any portion of
said premises without the prior written consent of Lessors. Any assignment or
subletting without the prior written consent of Lessors shall be void and shall,
at the option of Lessors, terminate this lease. Lessors' consent to any such
assignment of this lease or subletting of said premises by ▇▇▇▇▇▇ shall not be
unreasonably withheld, but the consent of Lessors to any one such assignment or
subletting shall not be deemed a consent by Lessors to any subsequent assignment
or subletting.
Destruction of Premises
Should any part of said premises be destroyed by fire, casualty, or
other cause not the fault of Lessee, Lessors shall promptly repair and restore
said premises to their former condition at Lessors' sole cost and expense.
During the making of the repairs and the restoration work, the rent payable
under this lease shall be abated for the time and to the extent that ▇▇▇▇▇▇ is
prevented from
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fully occupying and enjoying said premises under this lease in ▇▇▇▇▇▇'s usual
and normal manner. However, in lieu of making such repairs and performing such
restoration work, Lessors may terminate this lease where either;
(a) the necessary repair or restoration work cannot reasonably be
completed under applicable laws and regulations within 30 working days after it
is commenced, or
(b) the loss is not covered by Lessors' then existing fire and
extended coverage insurance policies, provided that such policies are of an
adequate and reasonable nature. If Lessors chooses to terminate this lease under
the provisions of this paragraph, any security deposits and/or unused rent shall
promptly be returned to the Lessee. ;; if the premises should be damaged or
destroyed by fire or other casualty so as to cause a material alteration in the
character of the premises and prevent the lessee from using it in substantially
the manner theretofore used, and such condition can not be repaired for a period
of more than thirty (30) days. either lessor or lessee may terminate this lease
upon giving notice to the other within fifteen (15) days after the casualty
occurs.
Multiple Occupancy
Should more than one person execute this lease as Lessee, all such
persons shall be jointly and severally liable for all of the terms, condition,
covenants, and provisions of this lease; provided, however, that any act or
signature of one or more of the persons executing this lease as Lessee and any
notice or refund given to or served on one of the persons executing this lease
as Lessee shall be fully binding on each and all of the persons executing this
lease as Lessee.
Default by Lessee
Should Lessee be in default for a period of more than 10 days in the
payment of any rent payable under this lease or in the performance of any other
provision of this lease, Lessors may terminate this lease and regain possession
of the demised premises in the manner provided by the laws of unlawful detainer
of this state in effect at the date of such default.
Lessors' Election to Continue During Breach
At Lessors' option, if Lessee has breached this lease and abandoned
the property, this lease shall continue in effect for so long as Lessors does
not terminate ▇▇▇▇▇▇'s right to possession, and Lessors may enforce all of the
available rights and remedies under this lease, including the right to recover
the rent as it becomes due.
Holdover by Lessee
Should Lessee remain in possession of the demised premises with the
consent of Lessors after the natural expiration of this lease, a
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new tenancy from month-to-month shall be created between Lessors and Lessee
which shall be subject to all of the terms and conditions of this lease but
shall be terminable by thirty days written notice served by either the Lessors
or the Lessee on the other party to this lease.
Acts Constituting Breach by ▇▇▇▇▇▇
Lessee shall be guilty of a material breach of this lease should Lessee:
(a) Fail to pay any rent or other sum becoming payable under this lease
on the date it becomes due;
(b) Default in the performance of or breach any provision, term,
covenant, or condition of this lease;
(c) Breach this lease and abandon said premises before expiration of the
full term of this lease;
(▇) ▇▇▇▇▇ a receiver to be appointed to take possession of all or
substantially all of ▇▇▇▇▇▇'s property unless the receiver is discharged within
30 days after his appointment; or
(e) Allow any judgment against the Lessee to remain unsatisfied and
unbonded for a period of more than 60 days.
Lessors' Remedies for Breach of Lease
Should Lessee be guilty of a material breach of this lease as defined
herein, Lessors, in addition to any other remedies given Lessors by law or
equity, may:
(a) Continue this lease in effect by not terminating ▇▇▇▇▇▇'s right to
possession of said premises and thereby be entitled to enforce all of Lessors'
rights and remedies under this lease including the right to recover the rent
specified in this lease as it becomes due under this lease; or
(b) Terminate this lease and ▇▇▇▇▇▇'s right to possession of said
premises and commence action against Lessee to recover from Lessee: (1) The
worth of the unpaid rent which had been earned at the time of termination of
this lease; (2) The worth of the amount by which the unpaid rent which would
have been earned but for termination of this lease exceeds the amount of
rental loss that Lessee proves could have been reasonably avoided; (3) Any
other amount necessary to compensate the Lessors for all detriment
proximately caused by ▇▇▇▇▇▇'s failure to perform ▇▇▇▇▇▇'s obligations under
this Lease; or
(c) Commence, in lieu of or in addition to the action described in above,
an action to reenter and regain possession of said premises in the manner
provided by the laws of unlawful detainer of this state.
Notices
Except as otherwise expressly provided by law, any and all notices or
other communications required or permitted by this lease
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or by law to be served on or given to either party hereto by the other party
hereto shall be in writing and shall be deemed duly served and given when
personally delivered to the party, Lessors or Lessee, to whom it is directed or,
in lieu of such personal service, when deposited in the United States mail,
first-class postage prepaid, addressed to Lessee at the address of said premises
or to Lessors at the addresses specified below. Either party, Lessors or Lessee,
may change their address for purposes of this paragraph by giving written notice
of the change to the other party in the manner provided in this paragraph.
Attorney's Fees
Should any litigation be commenced between the parties to this lease
concerning said premises, this lease, or the rights and duties of either in
relation thereto, the party, Lessors or Lessee, prevailing in such litigation
shall be entitled to, in addition to such other relief as may be granted, a
reasonable sum as and for attorney's fees to be determined by the court in such
litigation or in a separate action brought for that purpose.
Binding on Heirs and Successors
This lease shall be binding on and shall inure to the benefit of the
heirs, executors, administrators, and successors of the parties, Lessors and
Lessee, hereto, but nothing in this paragraph shall be construed as a consent by
Lessors to any assignment of this lease by ▇▇▇▇▇▇.
Time of the Essence
Time is expressly declared to be of the essence for all purposes of this
lease.
Waiver
The waiver of any breach of any of the provisions of this lease by
Lessors or Lessee shall not constitute a continuing waiver or a waiver of any
subsequent breach by Lessors or Lessee either of the same or of another
provision of this lease.
Sole and Only Agreement
This instrument constitutes the sole and only agreement between Lessors
and Lessee respecting said premises or the leasing of said premises and any
equipment or personal property subject to this lease to Lessee by Lessors. It
correctly sets forth the obligations of Lessors and Lessee to each other as of
its date, and any agreements or representations respecting said premises, the
equipment or personal property subject to this lease, or their leasing by
Lessors to Lessee not expressly set forth herein are null and void.
Late payment penalty
A 5% of the monthly amount penalty will be added monthly if rental is not
received by Lessors within 10 days of due date of payment.
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Build-out
▇▇▇▇▇▇ and lessor agree that changes and additions need to be done for
the operation of lessee business. See exhibit (A) for locations of same. ▇▇▇▇▇▇
agrees to pay for this work, ▇▇▇▇▇▇ agrees to do the work, estimated cost of the
work is $23,000.00 paid in advance and non refundable and paid at the time the
lease is signed. work to be done is as follows; Double Door are eliminated and
add door from room 11 to 12, paint staff and laundry room, steel bars and or
frame and drywall at all adjoining doors, and stick built walls. 2 each 5 ton
and 1 each 4 ton air conditioning units installed in rooms 1,2,3,4,5
6,7,8,9,10,11,12,14 area including duct work and electrical hook ups.
Cooler and freezer, plus laundry and all other storage materials will be removed
from the building. Items requested to be left will be a list and it will be an
addendum part of the lease before occupancy at no charge to lessee on loan to
lessee for the term of the lease.
1) wall between room 1 and 2 taken out and disposed of.
2) ceiling, lighting, and plugs in room 2 removed, install lighting ceiling and
plugs in room 6,7, 14, and hall way.
3) floor tile and base trim added to room 5, 7, 14, and hall. carpet and base to
room 6,
4) Steel bar secure and or remove and wall up all adjoining doors.
5) Install 4 commodes and a sink with towel and tissue holders, hot water
heater, lighting and doors on stalls installed. ceiling and floor completed.
6) painting on room 14, 7,6, staff laundry and hallway.
7) sprinklers added rooms 6,7, 14, and hall, low pipes removed in room 2
8) finish high wall in studio, and remove wall between reception in main
entrance.
9) install door from room 11 to 12, also exit light if needed.
10) Remove door in hall way between room 1 and room 2.
ADDENDUM
1) One Silent knight - Ranger 8900 DL Security Control center plus Fire Control
Communications, and in additional consisting of airphone Communications system
2) One N.E.C. Dterm Series 11 Telephone system, including ▇▇▇▇▇ P.A. System and
all communications office units.
3) One 1 SDN line 4 conversion boxes
4) One Generac 20 KVA Stand-by Generator
These items 1 thru 4 are as is on loan to lessee during term of this lease and
can only be removed by lessor
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Executed on 8-14-98, at
LESSORS: /s/ ▇▇▇▇▇▇ ▇▇▇
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▇▇▇▇▇▇ ▇▇▇ Guarantor
▇ ▇▇▇ ▇▇▇-▇▇▇▇ ▇▇▇ ▇▇▇
SS: ###-##-#### ▇▇▇▇▇▇ ▇▇▇ and Associates
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
LESSEE: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ S.S. OR ▇▇▇▇#.▇▇-▇▇▇▇▇▇▇
----------------------
ISA Internationale Inc. (ISAI)
▇ ▇▇▇ ▇▇▇ ▇▇▇▇ office fax ▇ ▇▇▇ ▇▇▇ ▇▇▇▇ ph ▇ ▇▇▇ ▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇. st 111
Faribault Minn. 55021
State of Tennessee
County of ▇▇▇▇
On August 14, 1998, before me, ▇▇▇▇▇ ▇▇▇▇▇▇ a notary public for the State of
Tennessee, personally appeared ▇▇▇▇▇▇ ▇▇▇, known to me or proved to me to be the
person whose name is subscribed to the within commercial lease, and acknowledged
to me that he or she executed the same.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------- Notary Public for the State of Tennessee
(seal)
State of Minnesota
County of Rice
On August 13, 1998, before me, a notary public for the State of Minnesota,
personally appeared ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, known to me or proved to me to be the
person whose name is subscribed to the within commercial lease, and acknowledged
to me that he or she executed the same.
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
--------------------- Notary Public for the State of Minnesota
(seal)
[STAMP]
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
NOTARY PUBLIC - MINNESOTA
My Commission Expires Jan. 31, 2000
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