CommercialLease

 

            This lease is made between Jack Seay of 2809 West 15th Street, PanamaCity, Fla., 32401 herein called Lessor, and Fortis Enterprises, Inc., hereincalled Lessee.

 

             Lessee hereby offers to lease from Lessor the premises situated in the city ofPanama City, County of Bay, State of Florida, described as 2237 W. 24th 

Street, approximately 1450sq. ft. (+ -), upon the following terms andconditions: 

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1. Terms and Rent.  Lessor demises the above premises for a term of 1 yr. commencing July 1, 2004,  and terminating on 6/30/05, or sooner as       provided herein   at the annual rental of see addendum.

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2. Use. Lessee shall  use and occupy the premises for office. The premises shall be used for no  other purposes, Lessor represents that the premises may lawfully be used for  such purpose.

 

3. Care and  Maintenance of Premises. Lessee acknowledges that the premises are in good  order and repair, unless otherwise indicated herein Lessee shall, at his own  expense and at all times, maintain the premises in good and safe condition,  including plate glass, in as good condition as received, normal wear and tear  excepted, Lessee shall be responsible for all repairs required, excepting the  roof, exterior walls, structural foundations, and: electrical repairs, A/C  equipment and plumbing repairs, which shall be maintained by Lessor, Lessor  shall also maintain in good condition such portions adjacent to the premises,  such as sidewalks, driveways, lawns and shrubbery, which would otherwise be  required to be maintained by Lessor.

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4. Alternation.  Lessee shall not, without first obtaining the written consent of Lessor, make  any alternations, additions, or improvements, in, to or about the premises.

 

5. Ordinances and  Statutes. Lessee shall comply with all statutes, ordinances and requirements  of all municipal, state and federal authorities now in force, or which may  hereafter be in force, pertaining to the premises, occasioned by or affecting  the use thereof by Lessee.

 

6. Assignment and  Subletting. Lessee shall not assign this lease or sublet any portion of the  premises without prior written consent of the Lessor, which shall not be  unreasonable withheld. Any such assignment or subletting without consent shall  be void and, at the option of the Lessor, may terminate this lease.

 

7. Utilities. All  applications and connections for necessary utility services on the demised  premises shall be made in the name of Lessee only, and Lessee shall be solely  liable for utility charges as they become due, including those for sewer,  water, electricity, garbage pickup and phones.

 

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8. Entry and  Inspection. Lessee shall permit Lessor's agents to enter upon the premises  at reasonable times and upon reasonable notice, for the purpose of inspecting  the same, and will permit Lessor at any time within sixty (60) days prior to  the expiration of this lease, to place upon the premises any usual "to  let" or "for lease" signs, and permit persons desiring to lease  the same to inspect the premises thereafter.

 

9. Possession. If  Lessor is unable to deliver possession of the premises at the commencement  hereof, Lessor shall not be liable for any damage Lessee may terminate this  lease if possession is not delivered within fifteen (15) days of the  commencement of the term hereof.

 

10. Indemnification  of Lessor. Lessor shall not be liable for any damage or injury to Lessee, or  any other person, or to any property, occurring on the demised premises or any  part thereof, and Lessee agrees to hold Lessor harmless from any claims for  damages, no matter how caused.

 

11. Insurance.  Lessor, at his expense, shall maintain plate glass and public liability  insurance including bodily injury and property damage insuring Lessor with  minimum coverage as follows: $500,000. Lessee shall provide insurance for  their equipment.

 

12. Eminent Domain.  If the premises or any part thereof or any estate therein, or any part of the  building materially affecting Lessee's use of the premises, shall be taken  by eminent domain, this lease shall terminate on the date when title vests  pursuant of such taking, The rent, and any additional rent, shall be  apportioned as of the termination date, and any rent paid for any period  beyond that date shall be repaid to Lessee. Lessee shall not be entitled to  any part of the award for such taking or any payment in lieu thereof, but  Lessee may file a claim for any taking of fixtures and improvements owned by  Lessee, and for moving expenses.

 

13. Destruction of  Premises. In the event of a partial destruction of the premises during the  term hereof, from any cause, Lessor shall forth with repair the same, provided  that such repairs can be made within sixty (60) days under existing  governmental laws and regulations, but such partial destruction shall not  terminate this lease, except that Lessee shall be entitled to a proportionate  reduction of rent while such repairs are being made, based upon the extent to  which the making of such repairs shall interfere with the business of Lessee  on the premises. If such repairs cannot be made within said sixty (60) days,  Lessor at his option, may make the same within a reasonable time, this lease  continuing in effect with the rent proportionately abated as aforesaid, and in  the event that Lessor shall not elect to make such repairs which cannot be  made within sixty (60) days, this lease may be terminated at the option of  either party. In the event that the building in which the demised premises may  be situated is destroyed in an extent of not less than one-third of the  replacement costs thereof, Lessor may elect to terminate this lease whether  the demised premises be injured or not. A total destruction of the building in  which the premises may be situated shall terminate this lease.

 

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14. Lessor's  Remedies on Default. If Lessee defaults in the payment of rent, or any  additional rent, or defaults in the performance of any of the other covenants  or conditions hereof, Lessor may give Lessee notice of such default and if  Lessee does not cure any such default within 15 days, after the giving of such  notice (or if such other default is of such nature that it cannot be  completely cured within such period, if Lessee does not commence such curing  within such 10 days and thereafter proceed with reasonable diligence and in  good faith to cure such default), then Lessor may terminate this lease on not  less than 30 days' notice to Lessee, on the date specified in such notice  the term of this lease shall terminate, and Lessee shall then quit and  surrender the premises to Lessor, have been so terminated by Lessor, Lessor  may be any time thereafter resume possession of the premises by any lawful  means and remove Lessee or other occupants and their effects. No failure to  enforce any term shall be deemed a waiver.

 

15. Security Deposit.  Lessee shall deposit with Lessor on the signing of this lease the sum of  $7565, which is first: one months rent, as security for the performance of  Lessee's obligations under this lease, including without limitation the  surrender of possession of the premises to Lessor as herein provided. If  Lessor applies any part of the deposit to cure any default of Lessee, Lessee  shall on demand deposit with Lessor the amount so applied so that Lessor shall  have the full deposit on hand at all times during the term of this lease.

 

16. Attorney's  fees. In case suit should be brought for recovery of the premised, or for any  sum due, hereunder, or because of any act which may arise out of the  possession of the premises, by either party, the prevailing party shall be  entitled to all costs incurred in connection with such action including a  reasonable attorney's fee.

 

17. Waiver. No  failure of Lessor to enforce any term hereof shall be deemed to be a waiver.

 

18. Notices. Any  notice which either party may or is required to give, shall be given by  mailing the same, postage prepaid, to Lessee at the premises, or Lessor at the  address specified above, or at such other places as may be designated by the  parties from time to time.

 

19. Heirs, Assigns,  Successors. This lease is binding upon and inures to the benefit of the heirs,  assigns and successors in interest to the parties.

 

20. Option to Renew.  Provided that Lessee is not in default in the performance of this lease,  Lessee shall have the option to renew the lease for an additional term of 12  months commencing at the expiration of the initial lease term. All the terms  and conditions of the lease shall apply during the renewal term except that  the monthly rent shall be the sum of see addendum. The option shall be  exercised by written notice given to Lessor not less than 90 days prior to the  expiration of the initial lease term. If notice is not given in the manner  provided herein within the time specified, this option shall expire. If option  is exercised rent will be $1300.

 

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21. Subordination.  This lease is and shall be subordinated to all existing and future liens and  encumbrances against the property.

 

22. Entire Agreement.  The foregoing constitutes the entire agreement between the parties and may be  modified only by a writing signed by both parties. The following Exhibits, if  any, have been made a part of this lease before the parties' execution  hereof:

 

Signed this 4th    day of June, 2004

 

         By: /s/ Stephen W. Carnes                                            By: /s/ Jack Seay                
               Lessee                                                                          Lessor

 

         Rent $1,000

         Tax $65

         Security Deposit $500

         Rent includes water, garbage and electricity