Document:

ex_138942.htm

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

 

THIS AGREEMENT is made and entered into this 1st day of January, 2019, by and between Reliv' International, Inc., a Delaware corporation (the “Company”), and Carl W. Hastings (hereinafter referred to as the “Executive”).

 

WHEREAS, the Executive is presently, and for some time has been, employed as an Executive of the Company, pursuant to the terms of an Employment Agreement dated June 1, 1997, a Services Agreement dated July 1, 2002, an Employment Agreement dated July 7, 2007 and an Employment Agreement dated March 31, 2014 (“Prior Employment Agreements”);

 

WHEREAS, the Company desires to be assured of the continued association and services of Executive and Executive desires to continue in the employment of the Company on the terms provided herein.

 

NOW, THEREFORE, in consideration of the premises and of the terms, covenants and conditions hereinafter contained, the parties hereto agree as follows:

 

1.       Employment, Duties and Authority.

 

1.1     The Company hereby employs Executive and Executive hereby accepts employment by the Company on the terms, covenants and conditions herein contained.

 

1.2     The Executive is hereby employed by the Company as Chief Scientific Officer. The Executive shall have such duties, responsibilities and authority as the Chief Executive Officer, Board of Directors or Executive Committee of the Company shall determine from time to time. In general, it is anticipated that the services which Executive shall perform for the Company shall include: (i) research concerning product development for the Company, (ii) product formulation development, and (iii) attendance at, and participation in, distributor events of the Company as requested from time to time. With regard to travel, the Executive shall not be required to engage in travel outside of the United States. In addition, Executive shall not be required to attend more than four distributor events during any 12-month period of time.

 

1.3      Executive shall devote approximately one-half (approximately 85 hours per month) of his energies, interest, abilities and productive time to the performance of his duties and responsibilities hereunder. The Company shall maintain an office for Executive at its principal offices and Executive may perform services at such office; provided, that Executive shall be entitled to perform services hereunder at his home or other location as well.

 

1.4      The Company acknowledges and agrees that Executive will be permitted to provide the same or similar duties and services to Nutracom, LLC (“Nutracom”) or any successor in interest to Nutracom as a consultant while employed by the Company on the terms and conditions set forth herein.

 

 

 

 

2.        Compensation and Benefits.

 

2.1      Basic Salary.

 

2.1.1   During the Initial Term (as hereinafter defined), the Company shall pay to Executive a basic salary at the rate per month of $18,750. During each Renewal Term (as hereinafter defined), the Company shall pay to Executive a basic salary at the rate of $16,667 per month. Such basic salary shall be paid by the Company to Executive each month, less amounts which the Company may be required to withhold from such payments by applicable federal, state or local laws or regulations.

 

2.1.2   If the Executive shall be absent from work on account of personal injuries or sickness, he shall continue to receive the payments provided for in paragraph 2.1.1 hereof; provided, however, that any such payment may, at the Company's option, be reduced by the amount which the Executive may receive, for the period covered by any such payments, in disability payments (i) pursuant to any disability insurance which the Company, in its sole discretion, may maintain, or (ii) under any governmental program for disability compensation.

 

2.2      Benefits; Expense Reimbursement.

 

2.2.1   During the term of Executve’s employment hereunder, the Executive shall be entitled to, and shall receive, all other benefits of employment available to other employees of the Company generally, including participation in hospital, surgical, medical or other group health plans or accident benefits, pension or profit-sharing plans, or vacation plans as shall be instituted or maintained by the Company, in its sole discretion.

 

2.2.2   During the term hereof, the Company shall reimburse Executive for all reasonable and necessary expenses incurred by Executive in the performance of his duties hereunder, including without limitation, travel, meals, lodging, office supplies or equipment subject to such reasonable limitations, restrictions and reporting standards as the Board of Directors of the Company may from time to time establish. Executive shall provide to the Company promptly after incurring any such expenses a detailed report thereof and such information relating thereto as the Company shall from time to time require. Such information shall be sufficient to support the deductibility of all such expenses by the Company for federal income tax purposes.

 

2.2.3   Specific benefits to which Executive shall be entitled shall be set forth on Schedule A hereto.

 

2.3      Compensation Schedule. There is attached as Schedule A hereto a schedule of the basic compensation and benefits to which Executive shall be entitled during the employment term of this Agreement.

 

2

 

 

3.           Term.

 

The employment of Executive hereunder shall be for a term commencing on January 1, 2019 and expiring on December 31, 2019 (“Initial Term”). Upon the expiration of the Initial Term, the term of such employment automatically shall be renewed for an additional term of one year commencing on January 1st and expiring on the succeeding December 31st (a “Renewal Term”) unless Executive or the Company shall give notice of the termination of Executive's employment and this Agreement by written notice to the other more than 90 days prior to the date of expiration of the Initial Term or any Renewal Term. In the event that such notice of termination shall be given timely, subject to any accrued rights of Executive to compensation, including without limitation pursuant to the provisions of paragraph 4 hereof, this Agreement shall terminate on the date of expiration of such Initial Term or Renewal Term.

 

4.           Termination.

 

4.1        The Company shall be entitled to terminate this Agreement, and Executive’s employment with the Company, prior to the expiration of its Initial Term or any Renewal Term, on the occurrence of an event of default with respect to Executive as provided herein.

 

4.2         For purposes of this Agreement, an event of default with respect to Executive shall include:

 

4.2.1   Any failure by Executive to perform his duties, responsibilities or obligations hereunder in a faithful and diligent manner or with reasonable care and (if such failure can be cured) the failure by Executive to cure such failure within 10 days after written notice thereof shall have been given to Executive by the Company;

 

4.2.2   A violation by Executive of any provision of this Agreement and the failure by Executive to cure such violation (if such violation can be cured) within 10 days after written notice thereof shall have been given to Executive by the Company;

 

4.2.3   Commission by Executive of any material act of dishonesty as an employee of the Company or of disloyalty to the Company, or any wrongful or unauthorized appropriation, taking or misuse of funds, property or business opportunities of the Company.

 

4.3         The Company shall be entitled to terminate the employment term of this Agreement at any time by written notice to Executive in the event of, and at the time of, the permanent mental or physical disability of Executive as provided herein during the term of employment hereunder. Permanent mental or physical disability of Executive shall be deemed to have occurred when Executive shall have failed or been unable to perform his duties hereunder for an aggregate of 180 days in any one period of 210 consecutive days and with a certification from a licensed physician in the State of Missouri that Executive is permanently disabled from performing his duties hereunder.

 

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4.4        Executive shall be entitled to terminate his employment with the Company under this Agreement prior to the expiration of its term:

 

4.4.1    Upon the occurrence of an event of default with respect to the Company; or,

 

4.4.2    At any time upon 270 days prior written notice to the Company.

 

4.5        For purposes of this Agreement an event of default with respect to the Company shall include:

 

4.5.1    Any failure by the Company to perform its obligations to Executive under this Agreement and (if such failure can be cured) the failure by the Company to cure such failure within 10 days after written notice thereof shall have been given to the Company by Executive;

 

4.5.2    The Company shall:

 

(a)     admit in writing its inability to pay its debts generally as they become due,

 

(b)     file a petition for relief under any chapter of Title 11 of the United States Code or a petition to take advantage of any insolvency under the laws of the United States of America or any state thereof,

 

(c)     make an assignment for the benefit of its creditors,

 

(d)     consent to the appointment of a receiver of itself or of the whole or any substantial part of its property,

 

(e)     suffer the entry of an order for relief under any chapter of Title 11 of the United Sates Code, or

 

(f)     file a petition or answer seeking reorganization under the Federal Bankruptcy Laws or any other applicable law or statute of the United States of America or any state thereof.

 

4.6        In the event of termination of this Agreement and Executive's employment hereunder by the Company pursuant to paragraph 4.1 hereof, all rights and obligations of the Company and Executive hereunder shall terminate on the date of such termination, subject to the following:

 

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4.6.1   Executive shall be entitled to receive (subject to any rights of set off or counterclaim by the Company) all salary, fees, additional compensation or benefits which shall have accrued prior to the date of such termination and the obligation of the Company for the payment of salary, consultation fees, additional compensation or benefits shall terminate as at the date of such termination;

 

4.6.2   All rights of the Company or Executive which shall have accrued hereunder prior to the date of such termination, and all provisions of this Agreement provided herein to survive termination of employment of Executive hereunder, shall survive such termination and the Company and Executive shall continue to be bound by such provisions in accordance with the terms thereof;

 

4.7        In the event of termination of the Agreement by Executive in accordance with paragraph 4.4 hereof, all rights and obligations of the Company and Executive hereunder shall terminate on the date of such termination, subject to the following:

 

4.7.1    Executive shall be entitled to receive all salary, consultation fees, additional compensation or benefits which shall have accrued prior to the date of such termination and the Company's obligation for the payment of salary, consultation fees, additional compensation or benefits shall terminate as of the date of such termination;

 

4.7.2    All rights of the Company or Executive which shall have accrued hereunder prior to the date of such termination and the obligations of Executive pursuant to paragraphs 5, 6, and 7 provided herein to survive termination of employment of Executive hereunder shall survive such termination and the Executive shall continue to be bound by such provisions in accordance with their terms.

 

 

4.8        This Agreement and all rights and obligations of the parties hereunder shall terminate immediately upon the death of Executive except that (i) all rights of the Company or Executive which shall have accrued hereunder prior to the date of such termination, and all provisions of this Agreement provided herein to survive termination of employment of Executive hereunder, shall survive the death of Executive and the Company and heirs, legatees and legal representatives of Executive shall continue to be bound by such provisions in accordance with the terms thereof and (ii) the Company shall pay to the heirs, legatees or personal representative of Executive (a) all compensation or benefits hereunder accrued but not paid to the date of Executive's death, and (b) an amount equal to the total compensation which would have been payable to Executive hereunder, but for his death, for a period of six months from the date of his death.

 

5

 

 

5.         Confidential Information.

 

5.1       “Confidential Information” means information disclosed by the Company to Executive, or developed or obtained by Executive during his employment by the Company, either before the date or during the term of this Agreement, provided that such information is not generally known in the business and industry in which the Company is or may subsequently become engaged, relating to or concerning the business, projects, products, processes, formulas, know-how, techniques, designs or methods of the Company, whether relating to research, development, manufacture, purchasing, accounting, engineering, marketing, merchandising, selling or otherwise. Without limitation, Confidential Information shall include all know-how, technical information, inventions, ideas, concepts, processes and designs relating to products of the Company, whether now existing or hereafter developed, and all prices, customer or distributor names, customer or distributor lists, marketing and other relationships, whether contractual or not, between the Company, its suppliers, customers, distributors, employees, agents, consultants and independent contractors but shall exclude the names of customers or distributors known to Executive prior to the effective date hereof.

 

5.2       Executive agrees that, during the term hereof or while Executive shall receive compensation hereunder and after termination of his employment with the Company for so long as the Confidential Information shall not be generally known or generally disclosed (except by Executive or by means of wrongful use or disclosure), Executive shall not use any Confidential Information, except on behalf of the Company, or disclose any Confidential Information to any person, firm, partnership, company, corporation or other entity, except as authorized by the President or the Board of Directors of the Company.

 

5.3       Notwithstanding the foregoing, the Company and Executive agree that any and all products, processes, formulas, know-how, techniques, designs or methods, whether relating to research, development, manufacture, purchasing, accounting, engineering, marketing, merchandising, selling or otherwise, including without limitation the products and concepts listed on Schedule B, developed by Executive prior to or during the term of this Agreement for Nutracom shall be the sole and exclusive property of Nutracom and shall not constitute Confidential Information for purposes of this Agreement.

 

6.         Inventions.

 

6.1       “ Reliv Inventions” shall mean discoveries, concepts, ideas, designs, methods, formulas, know-how, techniques or any improvements thereon, whether patentable or not, made, conceived or developed, in whole or in part, by Executive upon the request of Reliv, but excluding any inventions made, conceived or developed for customers of Nutracom other than Reliv.

 

6.2       Executive covenants and agrees to communicate and fully disclose to the Board of Directors of the Company any and all Reliv Inventions made or conceived by him during the term hereof or while receiving any compensation or payment from the Company and further agrees that any and all such Reliv Inventions which he may conceive or make, during the term hereof or while receiving any compensation or payments from the Company, shall be at all times and for all purposes regarded as acquired and held by him in a fiduciary capacity and solely for the benefit of the Company and shall be the sole and exclusive property of the Company. The provisions of this subparagraph shall not apply to an invention developed for Nutracom or for which no trade secret information of the Company was used.     

 

6

 

 

6.3       Executive also covenants and agrees that he will assist the Company in every proper way upon request to obtain for its benefit patents for any and all inventions referred to in paragraph 6.2 hereof in any and all countries. All such patents and patent applications are to be, and remain, the exclusive property of the Company for the full term thereof and to that end, the Executive covenants and agrees that he will, whenever so requested by the Company or its duly authorized agent, make, execute and deliver to the Company, its successors, assigns or nominees, without charge to the Company, any all applications, applications for divisions, renewals, reissues, specifications, oaths, assignments and all other instruments which the Company shall deem necessary or appropriate in order to apply for and obtain patents of the United States or foreign countries for any and all Reliv Inventions referred to in paragraph 6.2 hereof or in order to assign and convey to the Company, its successors, assigns or nominees, the sole and exclusive right, title and interest in and to such Reliv Inventions, applications or patents. Executive likewise covenants and agrees that his obligations to execute any such instruments or papers shall continue after the expiration or termination of this Agreement with respect to any and all such Reliv Inventions, and such obligations shall be binding upon his heirs, executors, assigns, administrators or other legal representatives.

 

7.         Writings and Working Papers.

 

Executive covenants and agrees that any and all books, textbooks, letters, pamphlets, drafts, memoranda or other writings of any kind written by him for or on behalf of the Company or in the performance of Executive's duties hereunder, Confidential Information referred to in paragraph 5.1 hereof and all notes, records and drawings made or kept by him of work performed for the benefit of the Company shall be and are the sole and exclusive property of the Company and the Company shall be entitled to any and all copyrights thereon or other rights relating thereto. Executive agrees to execute any and all documents or papers of any nature which the Company or its successors, assigns or nominees deem necessary or appropriate to acquire, enhance, protect, perfect, assign, sell or transfer its rights under this paragraph. Executive also agrees that upon request he will place all such notes, records and drawings in the Company's possession and will not take with him without the written consent of a duly authorized officer of the Company any notes, records, drawings, blueprints or other reproductions relating or pertaining to or connected with his employment of the business, books, textbooks, pamphlets, documents work or investigations of the Company. The obligations of this paragraph shall survive the term of employment hereunder or the termination or expiration of the Initial Term or any Renewal Term hereof.

 

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8.         Specific Enforcement.

 

Executive is obligated under this Agreement to render service of a special, unique, unusual, extraordinary and intellectual character, thereby giving this Agreement peculiar value so that the loss of such service or violation by Executive of this Agreement could not reasonably or adequately be compensated in damages in an action at law. Therefore, in addition to other remedies provided by law, the Company shall have the right during the Initial Term or any Renewal Term of this Agreement (or thereafter with respect to obligations continuing after the expiration or termination of this Agreement) to compel specific performance hereof by Executive or to obtain injunctive relief against violations hereof by Executive, and if the Company prevails in any proceeding therefor, it will also be entitled to recover all costs and expenses incurred by the Company in connection therewith, including attorneys' fees.

 

9.         Name, Image and Likeness; Endorsement

 

9.1       During the term of the employment of Executive hereunder, the Company shall be entitled to use the name, image and likeness of Executive, and to reproduce, copy and disseminate, video and audio recordings of Executive, without additional charge or payment to Executive, in connection with promotional materials and activities of the Company. From and after the date of the expiration of the Initial Term or any Renewal Term of this Agreement, or of the earlier termination of this Agreement in accordance with Paragraph 4 hereof, the Company shall be entitled to use the name, image and likeness of Executive, and to reproduce, copy and disseminate, video and audio recordings of Executive; provided, however, that for each calendar year during which the Company shall so utilize such items, the Company shall pay to Executive, or to his heirs, representatives, or assigns a fee in the amount of $10,000. The right of the Company provided herein shall survive the expiration of the Initial Term or any Renewal Term of this Agreement, or its termination, for any reason, for a period of 20 years.

 

9.2       During the term of the employment of Executive hereunder, Executive shall not use his name, image or likeness to endorse any products other than Reliv products; provided, however, Nutracom shall be permitted to use the name, image and likeness of Executive for its promotional and marketing materials intended for specific customers of Nutracom and for Nutracom business development in general, but will not promote Executive’s name, image and likeness on its website or social media advertising and other publicly accessible media during the term of Executive’s employment.

 

10.       Assignment.

 

The rights and duties of a party hereunder shall not be assignable by that party, except that the Company may assign this Agreement and all rights and obligations hereunder to, and may require the assumption thereof by, any corporation or any other business entity which succeeds to all or substantially all the business of the Company through merger, consolidation or corporate reorganization or by acquisition of all or substantially all of the assets of the Company.

 

11.       Binding Effect.     This Agreement shall be binding upon the parties hereto and their respective successors in interest, heirs and personal representatives and, to the extent permitted herein, the assigns of the Company.

 

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12.       Severability.

 

If any provision of this Agreement or any part hereof or application hereof to any person or circumstance shall be finally determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the remainder of such provision or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, shall not be affected thereby and each provision of this Agreement shall remain in full force and effect to the fullest extent permitted by law. The parties also agree that, if any portion of this Agreement, or any part hereof or application hereof, to any person or circumstance shall be finally determined by a court of competent jurisdiction to be invalid or unenforceable to any extent, any court may so modify the objectionable provision so as to make it valid, reasonable and enforceable.

 

13.       Notices.

 

All notices, or other communications required or permitted to be given hereunder shall be in writing and shall be delivered personally or mailed, certified mail, return receipt requested, postage prepaid, to the parties as follows:

 

	If to the Company: 	Ryan A. Montgomery
	 	
			Chief Executive Officer

			Reliv' International, Inc.

			P. O. Box 405

			Chesterfield, MO 63006-0405

			
	 	 
	If to Executive: 	Carl W. Hastings
	 	
			19 Grand Meridien Court

			Wildwood, MO 63005

			

             

Any notice mailed in accordance with the terms hereof shall be deemed received on the third day following the date of mailing. Either party may change the address to which notices to such party may be given hereunder by serving a proper notice of such change of address to the other party.

 

14.       Entire Agreement.

 

This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior written or oral negotiations, representations, agreements, commitments, contracts or understandings with respect thereto and no modification, alteration or amendment to this Agreement may be made unless the same shall be in writing and signed by both of the parties hereto.

 

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15.       Waivers.

 

No failure by either party to exercise any of such party's rights hereunder or to insist upon strict compliance with respect to any obligation hereunder, and no custom or practice of the parties at variance with the terms hereof, shall constitute a waiver by either party to demand exact compliance with the terms hereof. Waiver by either party of any particular default by the other party shall not affect or impair such party's rights in respect to any subsequent default of the same or a different nature, nor shall any delay or omission of either party to exercise any rights arising from any default by the other party affect or impair such party's rights as to such default or any subsequent default.

 

16.       Governing Law; Jurisdiction.

 

16.1    For purposes of construction, interpretation and enforcement, this Agreement shall be deemed to have been entered into under the laws of the State of Missouri and its validity, effect, performance, interpretation, construction and enforcement shall be governed by and subject to the laws of the State of Missouri.

 

16.2    Any and all suits for any and every breach of this Agreement may be instituted and maintained in any court of competent jurisdiction in the State of Missouri and the parties hereto consent to the jurisdiction and venue in such court and the service of process by certified mail to the addresses for the parties provided for notices herein.

 

[THE BALANCE OF THIS PAGE IS INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

 

	 	
			RELIV INTERNATIONAL, INC.

			 

			 

			 

			By: /s/ Ryan A. Montgomery                                   

			      Authorized Officer

			

 

 

 

Attest:

 

 

                                                  

Secretary

 

 

	 	
			EXECUTIVE:

			 

			 

			/s/ Carl W. Hastings                                                  

			Carl W. Hastings

			

 

 

11

 

 

	
			SCHEDULE A

				 	 	 	 	 	 	 
	
			Carl W. Hastings

				 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
			 

				
			 

				
			Comments

				
			 

				
			Monthly

				
			 

				
			Annual

				 
	 	 	 	 	 	 	 	 
	
			Initial Term Base Salary

				
			 

				
			Per Contract

				
			 

				
			$18,750 

				
			 

				
			$225,000

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Renewal Term Base Salary

				
			 

				
			Per Contract

				
			 

				
			 $16,667 

				
			 

				
			 $200,000

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Health and Dental Insurance

				
			(1)

				
			Standard Company Plan

				
			 

				
			$473.48

				
			 

				
			$5,681.76

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Life Insurance-$10,000 in coverage

				
			 

				
			Standard Company Plan

				
			 

				
			 

				
			 

				
			$187

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Long and Short Term

				
			 

				 	
			 

				
			 

				
			 

				
			 

				 
	
			Disability Insurance

				
			 

				
			Standard Company Plan

				
			 

				
			 

				
			 

				
			$2,379

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Supplemental Disability-Equitable

				
			 

				
			Actual Premium

				
			 

				
			 

				
			 

				
			$4,491

				 
	
			Policy # 229571332503

				
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			401(k) Matching Contribution*

				
			 

				
			Standard Company Plan

				
			 

				
			 

				
			 

				
			 

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			ESOP Contribution*

				
			 

				
			Standard Company Plan

				
			 

				
			 

				
			 

				
			 

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Automobile Allowance

				
			 

				
			Per Contract

				
			 

				
			$800

				
			 

				
			$9,600

				 
	 	
			 

				
			 

				
			 

				
			 

				
			 

				
			 

				 
	
			Total

				
			 

				
			 

				
			 

				
			 

				
			 

				
			$247,339** 

				 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
			*Estimated value will be adjusted to actual at end of each calendar year

			 

			**Initial Term compensation total. Renewal term(s) total of $222,339.

				 	 	 
	 	 	 	 	 	 	 	 
	
			(1)  Monthly amount represents net Company contribution after employee contribution.

				 
	 	 

12

 

 

	
			SCHEDULE B – Nutracom 

			Products and Concepts

				 	 	 	 	 	 	 

 

Any and all formulas, product concepts and product ideas formulated at the request of, or for promotion to, customers, potential customers and brands of Nutracom and/or its partners and affiliates, including, but not limited to, the following (provided no such formulas are identical or substantially similar to any product of Reliv):

 

Toddler Daily Essentials

Tween Daily Essentials

Adult Daily Essentials

Senior Daily Essentials

Adult Digestion Essentials

Youth Digestion Essentials

Adult Protect Capsules

Infant Formula

Infant Cereal

Keto Salts

Keto Protein

Inner Beauty

Hair, Skin & Nails Capsules

Weight Loss Formula

Ensure-Equivalent Products

Collagen Products

Reds Products

Beets Products

Greens Products

Hydration/Electrolyte

Pre-Workout

Post-Workout

Branch Chain Amino Acids

Essential Amino Acids

Sleep Aid

Sexual Performance Aid

Protein Pancakes

Protein Oats

CBD Capsules/Powdered Formulas

 

Formulas developed to match an existing product of a potential or existing customer of Nutracom

 

13ex_138959.htm

Exhibit 10.26

 

 

 

 

 

 

 

 

 

 

 

 

LEASE

To

 

Nutracom, LLC

138 Chesterfield Industrial Boulevard

Chesterfield, MO 63005

 

January 1, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 1 of 22

 

 

REFERENCE PAGE OF LEASE

 

	
			DATE OF LEASE:

				
			January 1, 2019

			
	
			BUILDING:

				
			as shown on Exhibit “A”

			
	 	 	 
	 	 	 
	
			LESSOR:

				
			Reliv International, Inc.

			
	
			LESSOR’S ADDRESS:

				
			136 Chesterfield Industrial Boulevard

			
	
			 

				Chesterfield, MO 63005
	
			LESSOR’S PHONE:

				
			(636) 733-1410

			
	
			LESSOR’S CONTACT:

				
			Ryan A. Montgomery, Chief Executive Officer

			
	
			LESSOR’S E-MAIL ADDRESS

				
			ramontgomery@relivinc.com

			
	 	 	 
	 	 	 
	
			LESSEE:

				
			Nutracom, LLC

			
	
			LESSEE'S ADDRESS:

				
			138 Chesterfield Industrial Boulevard

			
	
			 

				Chesterfield, MO 63005
	
			LESSEE’S PHONE:

				
			(636) 733-1315

			
	
			LESSEE’S CONTACT:

				
			Brett Hastings, President

			
	
			LESSEE’S E-MAIL ADDRESS

				
			bhastings@nutracom.us

			
	 	 	 
	
			PREMISES:

				
			136 Chesterfield Industrial Boulevard

			
	
			 

				Chesterfield, MO 63005
	
			TERM OF LEASE:

				 	 
	
			Occupancy Date:

				
			1/1/2019

				 
	
			Commencement Date:

				
			1/1/2019

				 
	
			Termination Date:

				
			12/31/2025

				 
	 	 	 
	
			RENT:

				 	 
	
			Minimum Annual Rent:

				
			1/1/2019 - 12/31/19

				
			$250,000.00

			
	
			 

				
			1/1/2020 - 12/31/20

				$192,900.00
	
			 

				
			1/1/2021 - 12/31/21

				$385,800.00
	
			 

				
			1/1/2022 - 12/31/22

				$385,800.00
	
			 

				
			1/1/2023 - 12/31/23

				$385,800.00
	
			 

				
			1/1/2024 - 12/31/24

				$409,912.50
	
			 

				
			1/1/2025 - 12/31/25

				$409,912.50
	 	 	 
	 	 	 
	
			PERMITTED USE:

				
			Light manufacturing of food and food supplements;

			
	
			 

				Warehousing; Office
	 	 	 
	
			EXHIBITS TO LEASE:

				
			Exhibit “A”    (Site Plan)

			
	
			 

				Exhibit “B”     (Estoppel Certificate)
	 	 	 
	
			SQUARE FEET:

				 	 
	 	 	 
	
			Building Leased Premises

				
			96,450 sq. ft.

				 
	
			Building Total Premises

				
			126,273 sq. ft.

				 
	
			Building Pro Rata Share

				
			76%

				 
	 	 	 
	
			Leased Premises and Lot

				
			138,244 sq. ft.

				 
	
			Total Premises and Lot

				
			230,367sq. ft.

				 
	
			Premises and Lot Pro Rata Share

				
			60%

				 

 

 

 

Page 2 of 22

 

 

This Agreement of Lease is made this 1st day of January, 2019 by and between RELIV INTERNATIONAL, INC., a Delaware corporation, hereinafter called "Lessor" and NUTRACOM, LLC, a Missouri limited liability company, hereinafter called "Lessee".

 

WITNESSETH:

 

Lessor, in consideration of the rents and covenants hereinafter set forth, hereby leases to Lessee, and Lessee hereby leases from Lessor, the property, outlined in red on Exhibit "A" attached hereto and incorporated herein, commonly known as 138 Chesterfield Industrial Boulevard, in the City of Chesterfield, County of St. Louis, State of Missouri, which is hereinafter referred to as the "Premises".

 

TO HAVE AND TO HOLD the Premises unto the Lessee for a term which shall begin on the "Occupancy Date" as shown on the Reference Page and hereinafter defined, and shall continue for a period of seven (7) years following the "Commencement Date" as shown on the reference page, plus an additional five (5) years if Lessee shall exercise its option to renew thie Lease, on the following terms and conditions:

 

 

RENTAL: ARTICLE I.

 

Lessee agrees to pay Lessor, at Lessor’s address set forth on the Reference Page hereof, or such other place as Lessor may from time to time designate, rental for the Premises as follows:

 

Lessee agrees for the period of 01/01/19 to 12/31/19 to pay a guaranteed and “fixed minimum annual rent” of two hundred fifty thousand dollars and no cents ($250,000.00), in advance, in the form of a promissory note of Lessee in the amount of at least $250,000, of which Lessor hereby acknowledges.

 

Lessee agrees for the period of 01/01/20 to 12/31/20 to pay a guaranteed and “fixed minimum annual rent” of one hundred ninety-two thousand nine hundred dollars ($192,900.00) for each twelve (12) month period payable in advance in successive monthly installments of sixteen thousand seventy-five dollars and no cents ($16,075.00) each, on or before the first day of each consecutive calendar month during said period.

 

Lessee agrees for the period of 01/01/21 to 12/31/21 to pay a guaranteed and “fixed minimum annual rent” of three hundred eighty-five thousand eight hundred dollars and no cents ($385,800.00) for each twelve (12) month period payable in advance in successive monthly installments of thirty-two thousand one hundred fifty dollars and no cents ($32,150.00) each, on or before the first day of each consecutive calendar month during said period.

 

Lessee agrees for the period of 01/01/22 to 12/31/22 to pay a guaranteed and “fixed minimum annual rent” of three hundred eighty-five thousand eight hundred dollars and no cents ($385,800.00) for each twelve (12) month period payable in advance in successive monthly installments of thirty-two thousand one hundred fifty dollars and no cents ($32,150.00) each, on or before the first day of each consecutive calendar month during said period.

 

Page 3 of 22

 

 

Lessee agrees for the period of 01/01/23 to 12/31/23 to pay a guaranteed and “fixed minimum annual rent” of three hundred eighty-five thousand eight hundred dollars and no cents ($385,800.00) for each twelve (12) month period payable in advance in successive monthly installments of thirty-two thousand one hundred fifty dollars and no cents ($32,150.00) each, on or before the first day of each consecutive calendar month during said period.

 

Lessee agrees for the period of 01/01/24 to 12/31/24 to pay a guaranteed and “fixed minimum annual rent” of four hundred nine thousand nine hundred twelve dollars and fifty cents ($409,912.50) for each twelve (12) month period payable in advance in successive monthly installments of thirty-four thousand one hundred fifty-nine dollars and thirty-eight cents ($34,159.38) each, on or before the first day of each consecutive calendar month during said period.

 

Lessee agrees for the period of 01/01/25 to 12/31/25 to pay a guaranteed and “fixed minimum annual rent” of four hundred nine thousand nine hundred twelve dollars and fifty cents ($409,912.50) for each twelve (12) month period payable in advance in successive monthly installments of thirty-four thousand one hundred fifty-nine dollars and thirty-eight cents ($34,159.38) each, on or before the first day of each consecutive calendar month during said period.

 

The term "Lease Year" shall mean a period of twelve consecutive calendar months, the first of which Lease Years shall commence on the Commencement Date. The words "Occupancy Date" whenever used in this Lease shall be deemed to refer to the date as shown on the reference page of this Lease at which time the terms of this Lease shall become effective except as set forth below. The words "Commencement Date" whenever used in this Lease shall be deemed to refer to the date as shown on the reference page of this Lease as the commencement of minimum rent being due and owing.

 

It is anticipated that Lessor and Lessee will review on a monthly basis all charges owed by one party to the other under the terms of this Lease and the agreements and commitments set forth in that certain Purchase Agreement of even date herewith by and between Lessor and Lessee (the “Purchase Agreement”). Accordingly, rent due under this Lease may be offset against those amounts owed by Lessor to Lessee pursuant to the transactions contemplated by the Purchase Agreement, as agreed upon by Lessor and Lessee. In such case, any rent offset between the parties shall be considered paid when due hereunder.

 

 

USE: ARTICLE II.

 

The Premises shall be used and occupied by Lessee for the permitted use shown on the reference page of this lease and for no other purpose. The permitted use is sometimes referred to herein as a “use or Lessee’s use”. Lessee's use and occupancy shall be in compliance with all applicable laws, ordinances, rules, and government regulations. Lessee shall not store, display, distribute or sell any alcohol, liquors or intoxicating beverages without first receiving Lessor’s written consent at its sole discretion.

 

Lessee at its sole cost shall procure any and all licenses, permits and the like and maintain same in good standing, as may be required for Lessee to lawfully conduct its business and occupy the Premises according to any and all applicable laws, rules, regulations and/or ordinances.

 

Lessee covenants not to do or suffer any waste or damage, disfigurement or injury to any improvements now or hereafter forming a part of the Premises and indemnifies and holds Lessor harmless from any and all costs, fees including but not limited to reasonable attorneys fees and/or expenses associated with same. Lessee shall, during the entire term, continuously use the Premises for the purpose stated in this Lease carrying on therein Lessee’s business undertaking in a reputable manner, diligently and energetically.

 

Page 4 of 22

 

 

CONDITION ON POSSESSION : ARTICLE III.

 

Lessor agrees to provide Lessee with the Premises in an “as is” condition.

 

Lessee has examined and knows the condition of the Premises and has received the same in good order and repair, and acknowledges that Lessee is accepting same in “as is” condition, and no agreements or promises to decorate, alter, repair or improve the Premises, have been made by Lessor or its agent(s) if any, prior to or at the execution of this Lease.

 

Lessee agrees that on or before taking possession of the Premises it will comply with all the terms and conditions of this Lease and Lessee’s obligation for Real Estate Tax Reimbursement and Proof of Insurance shall begin as of the Occupancy Date. Lessor reserves the right to withhold Lessee’s right to occupancy if any or all conditions required of Lessee prior to or after its occupancy are not timely met without changing the dates, terms, conditions and/or obligations of this Lease.

 

 

CERTIFICATE OF ESTOPPEL: ARTICLE IV.

 

Lessor and Lessee agree at the commencement of the term hereof, and thereafter, at any time during the term hereof, upon notice as defined herein, to execute, acknowledge and deliver the certificate of estoppel attached hereto as Exhibit “B” within five (5) days of such notice without charge or fee.

 

 

TAXES: ARTICLE V.

 

As of and following the Occupancy Date. Lessee shall pay as additional rent, an amount equal to one-twelfth (1/12) of Lessee’s Premises and Lot Pro Rata Share (as set forth on the Reference Page) of Lessor's estimation of real property taxes, assessments, and similar charges, " impositions" which may be levied or assessed by taxing authorities against the land and building and all other improvements (hereinafter collectively called "taxes") against the Premises. If the actual taxes and impositions exceed the sum already paid by Lessee, Lessee shall pay the excess to Lessor within (30) days after receipt of an invoice therefore and documentation of the actual amount paid by Lessor. If the actual taxes and impositions are less than that already paid by Lessee, Lessor shall, at Lessee's option, credit the difference to future payments of taxes and impositions owed by Lessee hereunder or refund it to Lessee.

 

If at any time during the Term of this Lease the method of taxation prevailing at the commencement of the Term hereof shall be altered so that any new tax, assessment, levy, imposition, or charge, or any part thereof, shall be measured by or be based in whole or in part upon the Lease or Premises, or the rent, additional rent or other income therefrom and shall be imposed upon the Lessor, then all such taxes, assessments, levies, impositions or charges, or the part thereof, to the extent that they are so measured or based, shall be deemed to be included within the term impositions for the purposes hereof, to the extent that such impositions would be payable if the Premises were the only property of Lessor subject to such impositions. There shall be excluded from impositions all federal, state, and local income taxes, federal excess profit taxes, franchise, capital stock and federal or state estate or inheritance taxes of Lessor. 

 

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LANDSCAPING:  ARTICLE VI.

 

The parking areas, drives, walkways and landscaped areas (all the foregoing being hereinafter referred to as "Landscaping"), as shown on Exhibit A as included in the leased premises shall be available to Lessee and its employees, customers and invitees, subject to the following:

 

Lessee shall not make any alterations or additions to the Landscaping without first procuring Lessor’s written consent, which in Lessor’s sole discretion may be withheld. All work and/or alterations shall fully comply with all applicable laws, ordinances, rules and regulations as well as drawings submitted to and approved by Lessor and shall be performed in a good and workmanlike manner.

 

As of and following the Occupancy Date. Lessee shall maintain the Landscaping for the entire property (including the leased premises and the portion of the building and premises retained by the Lessor) in a good, clean, orderly and workmanlike first class manner using new materials and or healthy plantings of first rate quality (as applicable) and cause all driveways and sidewalks to be snow plowed and kept free of debris and snow and ice. All costs incurred in the operation and maintenance of all Landscaping, including, without limiting the generality of the foregoing; the cost of lighting, cleaning, security, removing snow and ice, maintenance, care and replacement of trees, shrubbery, policing, repairing, and insuring Lessee, and Lessee's agents and employees for activities relating to the Leased Premises and Landscaping shall be incurred initially by Lessee but shall be allocated and shared among Lessor and Lessee generally in accordance with the Premises and Lot Pro Rata Share. Lessor shall promptly reimburse Lessee for Lessor’s share of all such expenses.

 

If Lessee fails to comply with the terms of this provision, Lessor may, after thirty (30) days written notice, undertake the maintenance and charge Lessee the costs thereof plus an additional 10% for the management of such maintenance and upkeep, repairs and replacements.

 

 

UTILITIES: ARTICLE VII.

 

As of and following the Occupancy Date. Lessee shall pay for all utility services used by Lessee including but not limited to heat, gas, water, sewer, electricity, data lines and telephone used in the Premises, said services are hereinafter referred to as "utilities". Lessee shall at all times keep the Premises at a temperature sufficiently high to prevent the freezing of water in pipes and fixtures. Lessee shall pay directly any sums which are due to any utility company or governmental body furnishing utilities to the Premises, throughout the term of this Lease; provided that, if Lessor shall pay any utility charges for the entire building of which the Premises are part, Lessee shall reimburse Lessor for its Building Pro Rata Share. Lessee shall indemnify Lessor and save it harmless against any costs, liability or damages on any utilities accounts for which Lessee shall be responsible.

 

 

CARE AND MAINTENANCE OF THE PREMISES: ARTICLE VIII.

 

Lessee covenants not to perform any acts which may suffer any waste, damage, disfigure, injure any improvements now or hereinafter forming a part of the Premises, or any invitees, or persons at, in or around, the Premises, or be a nuisance or menace to nearby businesses and/or neighboring property owners.

 

Page 6 of 22

 

 

Lessee shall keep the Premises and the entire building and area of which the Premises is part, including the roof, sidewalks, parking areas, drives, service and delivery areas of the Premises, clean and free from rubbish, dirt, ice and snow at all times, keeping the Premises in a good clean and healthy condition and free from any and all refuse discharged by Lessee in the operation of its business and store all trash and garbage as directed by Lessor and/or applicable governmental statute, code, rule, or regulation and arrange for the regular removal thereof at Lessee’s cost.

 

Lessee at all times during the term of this Lease shall have and keep in force a maintenance contract (in form and with a contractor reasonably satisfactory to Lessor) providing for inspection and necessary repairs at least once each calendar quarter of the heating, air conditioning and ventilating equipment. The inspection shall include a check of the performance of major components, lubricating moving parts, check of refrigerant charges, inspect for oil and refrigerant leaks, check operating and safety controls, check pressures and temperatures, inspect condensers, inspect fans, motors and starters, check electrical connections amperages, and voltages, check belts and drives and change oil, filters, or dryers. Said contract shall not be cancelable by either contractor and/or Lessee without a prior thirty (30) day written notice to Lessor.

 

Lessee at all times during the term of this Lease shall have and keep in force a maintenance contract (in form and with a contractor reasonably satisfactory to Lessor) providing for inspection and necessary repairs, not less than once each calendar quarter, of the sprinkler and "fire suppression" systems, keeping the fire suppression systems in good working order, code, regulation and ordinance compliant. Lessee shall provide any and all required inspection and performance reports to the Insurance company and or governmental agency requiring same with copies to Lessor. Said contract shall not be cancelable by either contractor and/or Lessee without a prior thirty (30) day written notice to Lessor.

 

Lessee shall not burn any trash or garbage nor shall Lessee dispose of and/or store any toxic and/or hazardous materials in, on, or about the Premises. Lessee shall not obstruct the sidewalks, fire lanes or areaways of the Premises.

 

The Lessee at its sole cost and expense shall regularly clean all waste, and garbage from the Premises which shall be thrown away in receptacles appropriate for the handling of such refuse and the Lessee shall keep the Premises in a good clean and healthy condition and free from any and all refuse discharged by Lessee in the operation of its business.

 

The costs of maintenance of the building of which the Premises is part shall be paid initially by Lessee but shall be shared and allocated among Lessor and Lessee generally in accordance with the Building Pro Rata Share.

 

 

REPAIRS: ARTICLE IX.

 

Lessee shall at all times, at its own cost and expense, keep the Premises, including, but not limited to, all interior and/or exterior, nonstructural, plumbing, electrical, building fixtures, walls, ceilings, floors, lighting, doors, windows, foundations, downspouts, gutters, heating, air conditioning, signs and any and all other building systems, in good order, condition, and repair; provided any such maintenance and repairs are of an ordinary nature or general and routine maintenance. If Lessee fails to maintain, replace, portions of the Premises requiring same promptly and/or properly, and if such failure is not cured within thirty (30) days after Lessees receipt of Lessors written notice, Lessor may at its option perform such maintenance, repairs, and/or replacements on behalf of Lessee and Lessee will upon demand, pay to Lessor, as rent, the cost plus ten percent (10%) thereof for Lessor’s administrative costs associated with same.

 

Page 7 of 22

 

 

Lessor shall be responsible at its own cost and expense for any extraordinary repairs or maintenance related to the structural, plumbing, electrical, heating, air conditioning, foundation and roof portions of the Premises. Lessee shall immediately give Lessor written notice of any defect or need for repairs, after which Lessor shall have a reasonable opportunity to repair the same or cure such defect.

 

Lessor's liability with respect to any defects, repairs or maintenance for which Lessor is responsible under any of the provisions of this Lease shall be limited to the cost of such repairs or maintenance or the curing of such defect, provided however, that if such repairs, replacements, or maintenance become necessary by reason of any act of negligence or construction by Lessee, its agents, contractors, or employees, then Lessee shall pay the total cost of such repairs, replacements or maintenance.

 

At all times all such maintenance, repairs, and/or replacements shall be performed in a good and workmanlike manner using new materials of high quality.

 

 

ALTERATIONS AND INSTALLATIONS: ARTICLE X.

 

Lessee shall not make any alterations in or additions to the Premises without first procuring Lessor's prior written consent. All alterations, additions and improvements, shall remain and be surrendered with the Premises at the termination of the Term of this Lease, whether by lapse of time or otherwise, all without credit to Lessee, unless such removal has been consented to or required at the time of Lessor's consent to the alteration.

 

Lessee shall make all of the alterations and installations at Lessee's sole cost and expense. All work and materials shall be furnished and conducted in a good and workmanlike manner. If a permit is required for any alteration and/or installation Lessee agrees to give Lessor copies of any all applications, inspection reports and approvals.

 

If Lessor shall not allow an alteration or improvement to remain after termination, Lessee shall remove the alterations, improvements and installations placed in the Premises by Lessee and repair any damage occasioned by such removals. All removals and repairs are to be performed in a good and workmanlike manner, no less than 10 days prior to the termination of this Lease, all at Lessee's sole cost and expense.

 

The foregoing shall not apply to any of Lessee's personal property, furniture, trade fixtures, machinery, equipment or production facilities, all of which shall at all times remain the property of Lessee and Lessee shall have the right to install and/or remove all of Lessee’s trade fixtures, machinery, equipment, and production facilities without Lessor’s written consent. For any installations and/or removals Lessee agrees that all work will be compliant with all applicable laws, ordinances, rules and regulations and that any adverse condition “Damage” will be repaired and the premises restored by Lessee at the termination of the Lease, at Lessee’s sole cost and expense.

 

 

UNTENANTABILITY: ARTICLE XI.

 

In the event the Premises shall be destroyed, or so damaged by fire, explosion, windstorm or other casualty so as to be untenantable, Lessor may restore the Premises within a reasonable time after such destruction or damage, or may terminate the Lease and the term demised as of the date of the destruction or damage, in either case by giving Lessee notice within one hundred eighty (180) days after the date of the destruction or damage, and rent shall abate on a per diem basis during the period of restoration.

 

Page 8 of 22

 

 

In the event the Premises shall be damaged as aforesaid but are not thereby rendered untenantable, Lessor shall restore the Premises with reasonable dispatch, and while such damage is being repaired, Lessee shall be entitled to an equitable abatement of rent as reasonably and equitably determined by Lessor. Lessor shall not be liable or responsible for any delays in rebuilding or repairing due to labor controversies, riots, acts of God, national emergency, acts of a public enemy, government laws or regulations, inability to procure materials or labor, or any other cause or causes beyond its control.

 

If Lessee is inconvenienced but its business is not interrupted, there shall be no abatement of rent.

 

 

EMINENT DOMAIN: ARTICLE XII.

 

In case all of the Premises is taken by the exercise of the power of eminent domain, this Lease shall terminate as of the date possession is taken, and Lessor shall refund any rent paid in advance in the ratio of thirty days to the number of days between the date possession is so taken and the first day of the next calendar month.

 

If thirty five per cent (35%) or more of the Premises is so taken, further provided that the taking of the portion of said Premises does materially affect the operation and conduct of Lessee’s business, then this Lease shall terminate at the election of either party upon notice to the other within thirty (30) days after the payment, or the deposit with the appropriate public officer, of the compensation awarded to Lessor, and in that event the term shall terminate on the date possession of the part condemned is taken by the condemning authority and the rent shall be paid to that date. In the event of a partial taking, rent shall equitably abate as of the effective date the government takes possession and/or such possession by Lessee is lost.

 

If the Lease and term are not terminated, Lessor, at its expense and within thirty days after the payment or deposit of the compensation as aforesaid, shall commence to reconstruct the Premises not affected by the taking and with reasonable diligence proceed with such construction, and during the reconstruction and thereafter, the minimum rent shall be reduced in the proportion that the part taken bears to the Leased Premises.

 

In any event, the entire compensation awarded shall belong to Lessor without any deduction there from for any present or future estate or interest of Lessee, and Lessee hereby assigns to Lessor all of its right, title and interest in and to any and all such compensation together with any and all rights, estate and interest of Lessee now existing or hereafter arising in and to the same or any part thereof.

 

 

SIGNS: ARTICLE XIII. 

 

Lessee shall have the right at its sole cost to use sign "Standards" or structures presently existing on the Premises and to erect signs identifying Lessee's business. All such signs shall have Lessor’s prior written consent and be in conformance with all applicable laws, ordinances, rules and regulations applicable thereto. Lessee shall give Lessor copies of all applications, approvals and permits required for any signage. Lessee shall not use any advertising medium that shall be deemed objectionable to Lessor in its reasonable discretion.

 

Page 9 of 22

 

 

Lessee shall remove all signage it has installed, repairing any damage caused by such removals returning the sign standards and the Premises to its original “blank” condition at its sole cost and expense at the end or termination of this Lease.

 

 

ASSIGNMENT OR SUBLETTING: ARTICLE XIV.

 

Lessee shall not sublet, assign or permit the use or occupancy of the Premises or any part or parts thereof by anyone other than Lessee without the prior written consent of Lessor, which may be withheld at its sole discretion.

 

Should any Sublease, assignment, use or occupancy be consented to, all future subleases, assignments, uses or occupancies will still require Lessor's prior written consent. In the event of any subletting, assignment, use or occupancy Lessee shall remain liable for all the terms and conditions of this Lease.

 

Should Lessee attempt to sublease, assign or permit the use or occupancy, by anyone other than Lessee without Lessor's written consent, such sublease, assignment, use or occupancy shall be null and void and any options granted under this Lease shall be null and void.

 

 

REMEDIES: ARTICLE XV.

 

Lessor may terminate Lessee's right of possession and repossess the Premises without terminating this Lease and/or terminate the estate and term demised by giving ten (10) days written notice to Lessee upon the happening of one or more of the following events which are not cured within said period:

 

a) the making by Lessee of an assignment for the benefit of its creditors;

 

b) the levying of a writ of execution or attachment on or against the property of Lessee;

 

c) the taking of any action for the voluntary dissolution of Lessee or of consolidation with or merger into another corporation;

 

d) the doing, or permitting to be done by Lessee of any act which creates a mechanic's lien or claim therefore against the Premises;

 

e) the failure of Lessee to pay an installment of rent when due, subject to any right of offset on the part of Lessee;

 

f) if proceedings are instituted in a court of competent jurisdiction for the reorganization, liquidation or involuntary dissolution of Lessee, or for its adjudication as bankrupt or insolvent, or for the appointment of a receiver of the property of Lessee, and said proceedings are not dismissed, and any receiver, trustee or liquidator appointed therein discharged within thirty days after the institution of said proceedings;

 

g) the recording of any document against Lessor’s title without, first receiving Lessor’s written consent;

 

h) the failure of Lessee to perform any other of its covenants under this Lease for thirty (30) days or more after receipt of written notice of such failure.

 

Page 10 of 22

 

 

Lessee shall not do any act which shall in any way encumber the title of Lessor in and to the Premises, nor shall the interest or estate of Lessor in the Premises be in any way subject to any claim by way of lien or encumbrance, whether by operation of law or by virtue of any express or implied contract by Lessee. Any claim to, or lien upon, the Premises arising from any act or omission of Lessee shall accrue only against the leasehold estate of Lessee and shall be subject and subordinate to the paramount title and rights of Lessor in and to the premises. Any lien or encumbrance caused by Lessee or its agents to Lessor's title which is not removed within the notice period set forth above shall constitute a default hereunder.

 

Upon the termination of the estate or Lessee's right to possession, Lessor may re-enter the Premises with process of law using such force as may be necessary, and remove all persons and chattels therefrom and Lessor shall not be liable for damages or otherwise by reason of re-entry or termination of the term of the Lease. Notwithstanding such termination, the liability of Lessee for the rent provided for hereinabove shall not be extinguished for the balance of the term remaining after said termination, and Lessor shall be entitled to recover immediately as liquidated damages an amount equal to the minimum rent for the said balance of the term less the fair rental value of the Premises for the said balance of the term. Upon and after entry into possession without termination of this Lease, Lessor may, but need not, relet the Premises or any part thereof for the account of Lessee for such rent, for such time and upon such terms as Lessor, in Lessor's sole discretion, shall determine, and Lessee shall be responsible for any resulting deficiency along with all costs of reletting including but not limited to brokerage commissions, decorating and/or rehabilitation of the Premises. At Lessor's election, Lessor may sue the Lessee for rent due and owing Lessor by Lessee under this Lease, as many times as is necessary to recover all rents and sums due hereunder, if the Premises are not relet or if eventually relet, for any deficiency which results by virtue of the default by Lessee and Lessor reletting the Premises for rental which is less than that which Lessee was required to pay hereunder. Lessee waives any defense of Res Judicata concerning any successive suits which are brought by Lessor pursuant to this provision unless Lessor has specifically received a judgment for the identical amount for an identical period in a previous suit of Lessor. Lessor and Lessee acknowledge and agree that all rent, common area maintenance charges and taxes, fees, expenses, penalties and/or any other sum payable hereunder or pursuant to the terms of this Lease sometimes referred to as "rent" shall be deemed rent which is due and payable as required under this Lease.

 

In the event of any breach by Lessee of any of the provisions of this Lease, Lessor may immediately or at any time thereafter, without additional notice, cure such breach for the account of and at the expense of Lessee such expense to constitute additional rent. If Lessor at any time, by reason of such breach, is compelled to pay any sum of money or do any act which will require the payment of any sum of money, or incurs any expense, including but not limited to reasonable attorney fees, in instituting or prosecuting any action or proceeding to enforce Lessor's rights hereunder, the sum or sums so paid by Lessor, with interest thereon at the rate set forth below from the date of payment thereof, shall be deemed to be additional rent hereunder and shall be due from Lessee to Lessor on the first day of the month following the payment of such respective sums or expenses by Lessor.

 

Subject to any right of offset on the part of Lessee, if Lessee shall fail to pay to Lessor, when due, any installment of rent or other payment due hereunder, Lessee shall pay to Lessor interest on such rent or other payment at the rate of the greater of the prime rate ("prime rate" is defined as the monthly average of the daily rate published in the Wall Street Journal [eastern edition] or if none or said publication ceases to exist the monthly average of the daily interest rate announced by the Federal Reserve Bank with jurisdiction in New York, New York being the rate charged by the Federal Reserve to the banks and generally thought of as their cost of money) established and in force by the Federal Reserve plus three percent (3%) per annum.

 

Page 11 of 22

 

 

Lessee will, at the expiration or termination of this Lease, yield up possession to Lessor, and failing so to do, at Lessor's option Lessee will pay as liquidated damages for each day possession is withheld, an amount equal to double the amount of the daily rent, computed on a thirty day month basis; provided, however, that Lessor's right to recover such liquidated damages shall not preclude Lessor from recovering any greater amount of damages sustained by it or as otherwise allowed by law.

 

No receipt of money by Lessor from Lessee after breach by Lessee or after the termination of this Lease or after the service of any notice or after the commencement of any suit, or after final judgment for possession of the Premises shall operate to waive any breach or to reinstate, continue or extend the term of this Lease or affect any such notice, demand or suit.

 

No waiver by one party of any default of the other party under this lease or any provision hereof shall be implied from any omission by a party to take any action on account of such default if such default persists or is repeated and no express waiver shall affect any default other than the default specified in the express waiver, and that only for the time and to the extent therein stated. One or more waivers of any condition of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term, or condition or as an amendment to this Lease’s terms, covenants and conditions.

 

Upon a breach hereof by Lessee which results in a judgment for possession and/or rent in a court of competent jurisdiction, and when, after the entrance of such judgment Lessee remains in possession or control of the Premises as a tenant at sufferance, then Lessee shall also be liable for all rent, damages, costs, and expense which Lessor incurs during such period after judgment and Lessor shall be entitled to file an additional lawsuit for recovery of same without Lessee offering a defense of Res Judicata and such recovery and/or law suit shall not operate as a renewal of this Lease or Lessee's right of possession.

 

All rights and remedies of Lessor herein enumerated shall be cumulative and none shall exclude any other right or remedy allowed by law and/or in equity, and said rights and remedies may be exercised and enforced concurrently and whenever and as often as occasion therefore arises.

 

 

SURRENDER: ARTICLE XVI.

 

Upon the termination of this Lease, whether by forfeiture, lapse of time or otherwise, or upon termination of Lessee's right to possession of the Premises, Lessee will at once surrender and deliver up the Premises, together with all improvements thereon, to Lessor in a fully operational, clean, safe, good condition and repair, reasonable wear and tear excepted. All improvements shall include but not be limited to all landscaping, plumbing, lighting, electrical, and affixed equipment and other articles or personal property used in the operation of the Premises, but shall not include Lessee's personal property, furniture, trade fixtures, machinery, equipment or production facilities, all of which shall at all times remain the property of Lessee. Lessee shall also surrender all keys and inform Lessor of any combinations on any locks, safes and vaults, if any, on the Premises.

 

Lessee shall remove all of Lessee's personal property, equipment and signs other than such personal property and equipment as are referred to above; provided,

 

Page 12 of 22

 

 

a) that Lessee at its sole cost shall repair any injury or damage to the Premises which may result from such removals

 

b) If Lessee does not remove Lessee's furniture, machinery, signs, and all other items of personal property of every kind and description from the Premises prior to the end of the term, however ended, Lessor may, at its option, remove the same and consider same to be abandoned and dispose of such property. Lessee shall pay to Lessor on demand the cost of removal, repair of any damage resulting from the removal and for disposal. Lessor may treat such property as having been conveyed to Lessor with the Lease as a Bill of Sale, without further payment or credit by Lessor to Lessee.

 

If Lessee retains possession of the Premises or any part thereof after the termination of the term by lapse of time or otherwise that such holding over constitutes renewal of this Lease on a month to month basis at a monthly rate equal to 150% of the monthly rental then in effect for the last month of the lease term. Lessee shall also pay all damages, consequential as well as direct, sustained by Lessor by reason of such retention.

 

All other additions, hardware, non-trade fixtures and all improvements, temporary or permanent, in or upon the Premises placed there by Lessee shall become Lessor's property and shall remain upon the Premises upon such termination of this Lease by lapse of time or otherwise, without compensation or allowance or credit to Lessee.

 

If prior to said termination, or within fifteen days thereafter, Lessor so directs by written notice to Lessee, Lessee shall, at its sole cost, promptly remove the additions, improvements, fixtures, trade fixtures and installations which were placed in the Premises by Lessee, and repair any damage occasioned by such removals and should Lessee not remove all alteration as directed by Lessor, Lessee upon demand shall pay as rent all costs of removal and restoration of such alterations and additions together with and a management fee equal to 10% of such costs to Lessor.

 

 

INSURANCE: ARTICLE XVII. 

 

Prior to the Commencement Date of this Lease, Lessee shall procure from companies reasonably satisfactory to Lessor and maintain at Lessee’s own cost and expense, for the benefit of Lessee, its agents, employees and contractors, and Lessor, its beneficiaries, agents, employees, contractors and mortgagee, the following insurance:

 

a) public liability covering the Leased Premises and the use and operation thereof in broad form with limits of not less than $1,000,000.00 combined single limit per occurrence/aggregate for each person and $2,000,000.00 for each accident or bodily injury and $500,000.00 for property damage.

 

b) workman’s compensation in accordance with statutorily required limits.

 

c) fire and extended coverage insurance covering Lessee’s fixtures, personal property and contents of Lessee located in the Leased Premises in an amount equal to the 100% replacement cost of such property.

 

Page 13 of 22

 

 

d) if directed by Lessor fire and extended coverage insurance covering the building in the Leased Premises against loss from the risks normally covered by a policy with fire and extended coverage, loss or damage by boiler or internal explosion by boiler equal to one hundred percent (100%) of its replacement cost under Standard Fire and Extended Coverage Policy and all other risks of direct physical loss as insured against under Special Form (“all risk”) coverage. Such insurance shall be primary to and non-contributing to any insurance carried by Lessor. Endorsements for inflation and ordinance changes shall be included with such coverage. Loss by explosion will be covered. Loss of rents for up to one year will be provided to Lessor. Lessor may procure this coverage and have Lessee pay 100% of the cost thereof if Lessor does not request Lessee to procure this coverage. Where Lessor Permits Lessee to procure such coverage Lessor shall be a named insured.

 

If at any time during the term of this Lease, Lessee owns or rents more than one location, the policy shall contain an endorsement to the effect that the aggregate limit in the policy shall apply separately to each location owned or rented by Lessee. Lessee shall cause its liability insurance to include contractual liability coverage fully covering the indemnity hereinabove set forth. All of the aforesaid insurance shall be in responsible companies and written on an “occurrence” basis and not on a “claims made” basis.

 

Lessee at its sole cost and expense agrees to furnish certificates evidencing the insurance Lessee is required to procure and deliver them to Lessor without delay. Certificates for the renewal of such insurance shall be delivered by Lessee to Lessor at least thirty (30) days prior to their respective expiration dates.

 

Lessor, Lessor’s agent, and mortgagee (if the name of any such mortgagee is provided to Lessee) shall be named as an additional insured on the above mentioned policies called for in paragraph a and c of this article. Any insurance required hereunder shall not be subject to cancellation except after 30 days prior written notice to Lessor.

 

Lessee shall not do anything which will in any way impair the obligation of any policy of insurance covering the Leased Premises or any part thereof nor shall Lessee take any action either by omission or commission which directly or indirectly causes the insurance costs to materially increase, and should Lessee take such action it shall be solely responsible for any and all excess or extraordinary premium or cost resulting therefrom.

 

Lessee shall cause each insurance policy carried to be written in a manner so as to provide that the insurance company waives all right of recovery by way of subrogation in connection with any loss or damage covered by any such policies. Neither party shall be liable to the other for any loss or damage caused by fire or any of the risks enumerated in the standard extended coverage insurance to the extent same is covered by insurance which actually pays the entire claim in question.

 

Companies having an A.M. Bests’ or Standard and Poors rating of A+ or better will be utilized. A certificate of insurance evidencing coverage is in place without disclaimer that such certificate is not evidence of in force coverage shall be furnished to Lessor prior to the Commencement Date and thereafter a current certificate of insurance evidencing coverage is in place without disclaimer that such certificate is not evidence of in force coverage shall be deposited with Lessor.

 

Lessee shall maintain at Lessee’s own cost and expense, for the benefit of Lessee, its agents, employees and contractors, and Lessor, its beneficiaries, agents, employees contractors and mortgagee the insurance called for herein.

 

Any moneys paid out from the standard fire and extended coverage policy on the building shall first be utilized to repair or replace the damaged portion of the Leased Premises or paid to Lessor, unless Lessor otherwise elects in writing.

 

Page 14 of 22

 

 

ENVIRONMENTAL MATTERS: ARTICLE XVIII.

 

In the event Lessee shall conduct or authorize the generation, transportation, storage, treatment, or disposal at the Premises of any substance regulated under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1986, the Federal Water Pollution Control Act and all other federal, state, and local laws relating to emissions, discharges, releases, or threatened releases of industrial, toxic, or hazardous substances or wastes of other pollutants, contaminants, petroleum products or chemicals (collectively “Hazardous Substances”) into the environment (including, without limitation, ambient air, surface water, ground water, land surface, or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of Hazardous Substances (the “Environmental Laws”):

 

(a) Lessee shall, at its own cost, comply with all Environmental Laws.

 

(b) Lessee shall promptly provide Landlord with copies of all communications, permits, or agreements with any governmental authority or agency (federal, state, or local) or any private entity relating in any way to the presence, release, threat of release, placement on or in the Premises, or the generation, transportation, storage, treatment, or disposal at the Premises, of any Hazardous Substance.

 

(c) Lessor and Lessor's agents and employees shall have the right to enter the Premises and/or conduct appropriate tests for the purpose of ascertaining that Lessee complies with all Environmental Laws relating in any way to the presence of Hazardous Substances on the Premises.

 

(d) Upon written request by Lessor, Lessee shall provide Lessor with the results of appropriate tests of air, water, or soil to demonstrate that Lessee complies with all Environmental Laws relating in any way to the presence of Hazardous Substances on the Premises.

 

If, as a result of Lessee's action, or the actions of Lessee's agents, employees, guests, invitees, or independent contractors, the presence, release, threat of release, placement on or in the Premises, or the generation, transportation, storage, treatment, or disposal at the Premises of any Hazardous Substance: (i) gives rise to liability (including, but not limited to, a response action, remedial action, or removal action) under RCRA, CERCLA, the IEPA, or any common law theory based on nuisance or strict liability, (ii) causes a significant public health effect, or (iii) pollutes or threatens to pollute the environment, Lessee shall promptly take any and all remedial and removal action necessary to clean up the Premises and mitigate exposure to liability arising from the Hazardous Substance, whether or not required by law.

 

Lessee hereby represents that the intended operation of Lessee's business on the Premises is not currently subject to reporting under Section 312 of the Federal Emergency Planning and Community Right-To-Know Act of 1986, and federal regulations promulgated thereunder , and in event Lessee's business at any time becomes subject to the afore-described Act and regulations, Lessee shall fully comply therewith and shall promptly provide Lessor with copies of all reporting materials filed or submitted under such Act and regulations.

 

Page 15 of 22

 

 

Lessee shall indemnify, defend, and hold Lessor harmless from all damages, costs, losses, expenses (including, but not limited to, reasonable attorney's fees and engineering fees) arising from or attributable to any breach by Lessee of any of the provisions of this Section. Lessee's obligations hereunder shall survive the termination of this Lease.

 

 

SUBORDINATION TO MORTGAGE: ARTICLE XIX.

 

Lessee will, upon written demand by Lessor, execute such instruments as may be required to subordinate the rights and interest of Lessee under this Lease to the lien of any mortgage at any time placed on the Premises provided that such subordination shall not affect Lessee's right to the possession of the Premises so long as Lessee is not in default hereunder.

 

 

NOTICES: ARTICLE XX.

 

Any notice under this Lease shall be deemed sufficiently given if sent by registered mail, or certified return receipt mail, to Lessee, and/or to Lessor at the address as shown on the reference page of this Lease, and either party may by like notice designate a different address to which notices shall be sent. Notices shall be deemed received three (3) days from the date when mailed. Notice may also be given by overnight messenger service effective upon delivery with proof of delivery being available.

 

Notices may also be given via electronic transmission including by e-mail and by facsimile transmission "fax". In the event of an e-mail or a fax transmission, notice shall be effective on the day of the e-mail or fax notification is received during normal business hours on a business day or if notice is sent at a time other than during normal business hours on a business day on the next business day immediately following the day of transmission. Copies of all electronic transmission including by e-mail and by fax transmissions shall also be forwarded on the same day by regular first class mail.

 

 

INSPECTION AND MARKETING: ARTICLE XXI.

 

Lessor, or Lessor’s agent, may enter the Premises upon reasonable advance notice for the purpose of making its repairs or repairs which Lessee may neglect or refuse to make in accordance with the covenants and agreements of this Lease without being deemed guilty of any eviction or disturbance of Lessee’s use or possession of the Premises, and without being liable in any manner to Lessee.

 

Lessor, or Lessor’s agent may upon reasonable advance notice during normal business hours with a phone notice to Lessee, to the person and number shown on the reference page of this Lease, enter the Premises for the purpose of inspecting, marketing, and/or showing the Premises.

 

Lessor, or Lessor’s agent within twelve (12) months prior to the expiration of the lease term, may place the usual notice or sign of “For Sale” or “For Rent” on the Premises, such signs to remain thereon without molestation. Lessor, or Lessor’s agent may upon reasonable advance notice during normal business hours with a phone notice to Lessee, to the person and number shown on the reference page of this Lease, enter the Premises for the purpose of inspecting, marketing, and/or showing the Premises to persons or representatives of entities wishing to Lease same.

 

Page 16 of 22

 

 

OPTIONS:  ARTICLE XXII.

 

Lessor hereby grants to Lessee an option to renew this Lease for one additional term of five (5) years, beginning at the expiration of the original term of this Lease, on the same terms and conditions provided herein, except that the annual minimum rental will be four hundred nine thousand nine hundred twelve dollars and fifty cents ($409,912.50).

 

This option may be exercised once and no subsequent options shall be implied once exercised.

 

If Lessee elects to exercise said option, it shall do so by giving Lessor notice in writing of such election at least six (6) months prior to the expiration of the original term of this Lease, or this Lease as extended. Lessee agrees to give Lessor peaceful possession of said premises at the end of the term of this Lease or any renewal thereof in accordance with the terms of the Lease.

 

In the event of a sublease, and/or a failure to timely notify Lessor as called for herein and/or a breach of this agreement then this option(s) shall be deemed terminated and shall be null and void.

 

Lessor hereby grants to Lessee a right of first offer with respect to the sale of the building and property of which the Premises is part (the “Property”) on the following terms:

 

a)         If Lessor shall determine to sell the Property during the term of this Lease or any renewal term, Lessor shall first notify Lessee of such intent by written notice to Lessee.

 

b)        Lessee shall have the option and right, to be given to Lessor within thirty (30) days of the receipt of the notice of intent to sell from Lessor, to make an offer for the Property specifying the price and terms of sale including without limitation the description of the Property to be purchased (the “Offer”). 

 

c)          Lessor may either accept or reject the Offer within a period of thirty (30) days.

 

d)         If Lessor rejects the Offer, Lessor shall be free to sell the Property to third parties;

 

provided, however, that the foregoing right of first offer shall not apply to a sale-leaseback or financing transaction with respect to the Property by Lessor.

 

 

COVENANT TO HOLD HARMLESS: ARTICLE XXIII.

 

Lessee indemnifies and agrees to save Lessor harmless against any and all claims, liability, damages, costs and expenses of whatever nature, including but not limited to reasonable attorney's and accountant's fees, and/or costs of other consultants or experts arising from the conduct of the business and/or operation by Lessee or from any default on the part of Lessee in the performance or failure to perform any agreement, obligation and/or covenant to be performed pursuant to the terms of this Lease, or from any act of negligence whether by omission or commission of Lessee, its agent, contractor, employee, sublessee, concessionaire, licensee or invitee in or about the Premises or arising from or by virtue of Lessee's possession, use and/or control over the Premises or the conduct of its business in or therefrom. In the event Lessee has insurance, Lessor shall first look to Lessee’s insurance and to the extent Lessor is able to recover entirely under Lessee’s insurance, Lessee shall have no personal liability. However, to the extent Lessee’s insurance is inadequate (for any reason including the insurance company’s refusal to pay) to reimburse Lessor for Lessor’s damages, Lessee shall be liable for same.

 

Page 17 of 22

 

 

Except to the extent directly caused by the negligence of Lessor and/or its agents and/or resulting from Lessor or its agents failure to perform an act required of Lessor under this Lease, if any action, claim or proceeding is brought against Lessor by reason of any such action, claim or proceeding, Lessee covenants to defend such action, claim or proceeding at Lessee's sole cost and expense. Lessor shall not be liable, and Lessee waives and releases all claims for damage to person or property sustained by Lessee, Lessee's employees, invitees and customers, resulting from the Premises, or any equipment or appurtenance, becoming out of repair, or resulting from any accident in or about said building or the Premises. Lessor shall have the right to choose and appoint legal counsel should same become necessary as a result of the provisions hereof.

 

Lessor indemnifies and agrees to hold Lessee harmless against any claims, liability, damages, costs and expenses of whatsoever nature, including but not limited to, reasonable attorneys’ fees and/or costs of other consultants or experts arising from the negligent conduct of Lessor in connection with the Premises. In the event of a claim against Lessor, Lessee shall first look to Lessor’s insurance and to the extent Lessee is able to recover entirely under Lessor’s insurance, Lessor shall have no personal liability. However, to the extent Lessor’s insurance is inadequate to reimburse Lessee for Lessee’s damages, Lessor shall be liable for same. Any liability of the Lessor shall be limited to Lessor's interest in the Premises.

 

 

LESSOR'S LIEN: ARTICLE XXIV.

 

Lessor shall have a first lien upon the interest of Lessee under this Lease, to secure payment of all rent or monies due under this Lease, which lien may be foreclosed in equity at any time when rent or money are overdue under this Lease; and the Lessor shall be entitled to name a receiver of said leasehold interest, to be appointed in any such foreclosure proceeding, who shall take possession of said Premises and who may relet the same under the orders of the court appointing him.

 

 

GENERAL: ARTICLE XXV.

 

Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third person to create a principal and agent relationship, a partnership, a joint venture, or any other association between Lessor and Lessee, it being expressly understood and agreed that neither the method of computation of rent nor any other provisions contained in this Lease nor any act of the parties hereto shall be deemed to create any relationship between Lessor and Lessee other than the relationship of Lessor and Lessee.

 

The consent or approval by Lessor to or of any act by Lessee requiring Lessor's consent or approval shall not be deemed to waive or render unnecessary Lessor's consent or approval to or of any subsequent similar act by Lessee.

 

The invalidity or unenforceability of any provision hereof shall not affect or impair any other provisions. The necessary grammatical changes required to make the provisions of this Lease apply in the plural sense where there is more than one Lessee and to either corporations, associations, partnerships, sole proprietorship or individuals, males or females, shall in all instances be assumed as though in each case fully expressed. The headings of the articles contained herein are for convenience only and do not define, limit or construe the contents of such articles.

 

Page 18 of 22

 

 

MISCELLANEOUS:  ARTICLE XXVI.

 

a) This Lease may not be altered, changed or amended except by an instrument in writing signed by both parties hereto.

 

b) The Individuals executing the terms of this Lease certify that they have authority to enter into this Lease, that it is binding and enforceable upon the party upon whose behalf they have signed and that the terms of this agreement do not and will not violate any other agreement between either of the parties and any third party.

 

c) All covenants, promises, representations and agreements herein contained shall be binding upon, apply and inure to the benefit of Lessor and Lessee and their respective heirs, legal representatives, successors and assigns.

 

d) Time is of the essence of this Lease, and all provisions herein relating thereto shall be strictly construed.

 

e) The words "Lessor" and "Lessee" wherever used in this Lease shall be construed to mean Lessors or Lessees in all cases where there is more than one Lessor or Lessee, and to apply to individuals, male or female, or to firms or corporations, as the same may be described as Lessor or Lessee herein, and the necessary grammatical changes shall be assumed in each case as though fully expressed.

 

f) Whenever any sum due hereunder, including but not limited to rent for a period of less than either or both a lease year or calendar month, then all such sums shall be prorated on a per diem basis, and shall be payable in accordance with the terms of this Lease.

 

g) Neither party shall record this Lease or a memorandum hereof without the prior written consent of the other party and the party seeking the recording shall pay all charges and taxes incident thereto. Recording this Lease without the prior written consent of Lessor shall be a default of this lease.

 

h) Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease except as designated on the Reference Page, and agrees to defend, indemnify and hold, the other completely harmless and free from any and all loss, liability, costs, damages or expenses (including but not limited to attorneys' fees) incurred as a result of any breach of the foregoing warranty. Lessor agrees to pay the broker, if any, listed above in accordance with its listing agreement.

 

i) The submission of this document for examination and negotiation does not constitute an offer to Lease, or a reservation of, or option for, the Leased Premises and this document shall become effective and binding only upon execution and delivery hereof by Lessor and by Lessee. All negotiations, considerations, representations and understandings between Lessor and Lessee are incorporated herein.

 

j) This Lease shall be construed and enforced in accordance with the laws of the state where the Leased Premises are located.

 

k) Where more than one lessee is executing this Lease all Lessees shall be joint and severally liable.

 

Page 19 of 22

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written.

 

LESSEE:

 

NUTRACOM, L.L.C.

 

 

 

By:_/s/ Brett Hastings__________________________ Dated: January 1, 2019

      Brett Hastings, President          

 

 

 

LESSOR:

 

RELIV INTERNATIONAL, INC

 

 

 

By: /s/ Ryan A. Montgomery____________________ Dated: January 1, 2019

       Ryan A. Montgomery

       Chief Executive Officer

 

Page 20 of 22

 

 

Exhibit “A”

Site Plan

 

See Attached.

 

Page 21 of 22

 

 

EXHIBIT “B”

Estoppel Certificate

 

 

Lessee and Lessor, hereby state, represent and certified the following:

 

1. The undersigned are the Lessee and Lessor under that certain Lease dated January 1, 2019 for the Premises commonly known as 138 Chesterfield Industrial Boulevard, Chesterfield, MO 63005;

 

2. Lessee has accepted delivery of the premises and has entered into occupancy thereof;

 

3. The Lease represents the entire agreement between the parties as to the leasing, is in full force and effect and has not been assigned, modified, supplemented or amended in any way; except as follows (if none, so state);

 

4. The primary term of the Lease commenced on January 1, 2019 and continues to December 31, 2025, and contains a five (5) year renewal option(s);

 

5. The monthly base rental and other charges are current and have not been paid more than one month in advance;

 

6. Except as stated below, as of this date neither Lessee nor Lessor is in default under any of the terms, conditions, provisions or agreements of the Lease and neither Lessee nor Lessor has any offsets, claims, defenses against the other with respect to the Lease:                                                                                                                                                                                                                                                                                                                                                                                                      

 

The foregoing statements, representations, and certifications are delivered pursuant to Article IV of the Lease agreement, and may be relied upon by a prospective purchaser or mortgagee of the Leased Premises or their respective successors and assigns. The undersigned certifies that he or she has the authority to execute this Estoppel Certificate on behalf of Lessee and/or Lessor.

 

 

	Lessee: 	Lessor:
	NUTRACOM, L.L.C.	RELIV INTERNATIONAL, INC.
	 	 
	 	 
	 	 
	By  /s/ Brett Hastings                                	By  /s/ Ryan A. Mongtomery                        
	     Brett Hastings, President	      Ryan A. Montgomery, CEO

 

Page 22 of 22

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