Document:

evoa-ex10113_263.htm

Exhibit 10.113

 

 

 

 

 

 

 

 

 

 

 

 

 

LEASE

 

6925 SOUTH 6th STREET, SUITES 100 & 400

OAK CREEK, WISCONSIN

 

TENANT:  Ursa Major Corporation

 

DATE:  February 1, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

LEASE

6925 SOUTH 6TH STREET, SUITES 100 & 400

OAK CREEK, WISCONSIN

 

TENANT:  Ursa Major Corporation (dba Ursa Logistics),

a Wisconsin corporation

 

Introductory Article

 

	
Article 1 DEMISED PREMISES; TERM
	
 
	
2

	
ARTICLE 2 RENT; BASE RENT
	
 
	
2

	
ARTICLE 3 ADDITIONAL RENT
	
 
	
3

	
ARTICLE 4 USE
	
 
	
6

	
ARTICLE 5 SERVICES
	
 
	
8

	
ARTICLE 6 POSSESSION
	
 
	
9

	
ARTICLE 7 CONDITION OF PREMISES
	
 
	
9

	
ARTICLE 8 REPAIRS
	
 
	
9

	
ARTICLE 9 ALTERATIONS
	
 
	
10

	
ARTICLE 10 COVENANT AGAINST LIENS
	
 
	
12

	
ARTICLE 11 DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY
	
 
	
12

	
ARTICLE 12  INSURANCE
	
 
	
14

	
ARTICLE 13 LANDLORD’S LIEN
	
 
	
15

	
ARTICLE 14 CONDEMNATION
	
 
	
15

	
ARTICLE 15 WAIVER OF CLAIMS AND INDEMNITY
	
 
	
16

	
ARTICLE 16 NONWAIVER
	
 
	
16

	
ARTICLE 17 WAIVER OF NOTICE
	
 
	
16

	
ARTICLE 18 LANDLORD’S REMEDIES
	
 
	
17

	
ARTICLE 19 SURRENDER OF POSSESSION
	
 
	
18

	
ARTICLE 20 HOLDING OVER
	
 
	
19

	
ARTICLE 21 COSTS, EXPENSES AND ATTORNEYS’ FEES
	
 
	
19

	
ARTICLE 22 COMPLIANCE WITH LAWS
	
 
	
19

	
ARTICLE 23 CERTAIN RIGHTS RESERVED BY LANDLORD
	
 
	
20

	
ARTICLE 24 ESTOPPEL
	
 
	
21

	
ARTICLE 25 RULES AND REGULATIONS
	
 
	
21

	
ARTICLE 26 INTENTIONALLY DELETED
	
 
	
21

	
ARTICLE 27 ASSIGNMENT AND SUBLETTING
	
 
	
21

	
ARTICLE 28 NOTICE
	
 
	
24

	
ARTICLE 29 OPTION TO PURCHASE
	
 
	
24

	
ARTICLE 30 CONVEYANCE BY LANDLORD
	
 
	
27

	
ARTICLE 31 SUBORDINATION OF LEASE
	
 
	
28

	
ARTICLE 32 MISCELLANEOUS
	
 
	
28

	
ARTICLE 33 EXCULPATION
	
 
	
30

	
ARTICLE 34 LATE PAYMENT
	
 
	
30

 

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ARTICLE 35 COVENANT OF QUIET ENJOYMENT
	
 
	
31

	
ARTICLE 36 OPTION TO RENEW
	
 
	
31

	
ARTICLE 37 PARKING
	
 
	
31

	
ARTICLE 38 SIGNAGE
	
 
	
31

 

 

 

 

ii

 

 

LEASE

THIS LEASE, made as of February 1, 2019, between Ursa Oak Creek LLC, a limited liability company organized under the laws of the State of Wisconsin, (“Landlord”) and Ursa Major Corporation (dba Ursa Logistics), a corporation organized under the laws of the State of Wisconsin (“Tenant”).

WITNESSETH THAT, in consideration of the covenants and agreements hereafter set forth, Landlord hereby lets to Tenant and Tenant hereby leases from Landlord the Premises described herein, on the following terms and conditions contained in this Lease:

INTRODUCTORY ARTICLE:

BASIC LEASE PROVISIONS AND ENUMERATION OF EXHIBITS

 

A.Basic Lease Provisions.  The provisions of this Introductory Article are intended to be in outline form and are addressed in detail in other Articles of this Lease.  In the event of any conflict, inconsistency or disagreement, the most restrictive Article shall prevail.

TENANT’S NAME:  Ursa Major Corporation (dba Ursa Logistics)

LEASE TERM (Also see Article I):  Approximately Ten (10) years

OPTION TERM (Also see Article 36):  One (1) option to renew in favor of Tenant for one (1) five (5) year term, upon one (1) year advance written notice to Landlord.

COMMENCEMENT DATE (Also see Article 1):  The Commencement Date shall be February 1, 2019.

TERMINATION DATE (Also see Article 1):  January 31, 2029

PREMISES:  Suite 100 containing approximately 11,700 rentable square feet, and Suite 400 containing approximately 5,850 square feet, with a combined area of approximately 17,550 square feet, (hereinafter collectively referred to as the “Premises” and depicted on Exhibit A).

BASE RENT (Also See Article 2):

				
	
 
	
Period
	
Annual Base Rent
	
Monthly Installment of Base Rent

	
Yr 1
	
1/31/2019 — 1/31/2020
	
$     162,000.00
	
$     13,500.00

	
Yr 2
	
2/1/2020 — 1/31/2021
	
$     163,620.00
	
$     13,635.00

	
Yr 3
	
2/1/2021 — 1/31/2022
	
$     165,256.20
	
$     13,771.35

	
Yr 4
	
2/1/2022 — 1/31/2023
	
$     166,908.76
	
$     13,909.06

	
Yr 5
	
2/1/2023 — 1/31/2024
	
$     168,577.85
	
$     14,048.15

	
Yr 6
	
2/1/2024 — 1/31/2025
	
$     170,263.63
	
$     14,188.64

	
Yr 7
	
2/1/2025 — 1/31/2026
	
$     171,966.27
	
$     14,330.52

	
Yr 8
	
2/1/2026 — 1/31/2027
	
$     173,685.93
	
$     14,473.83

	
Yr 9
	
2/1/2027 — 1/31/2028
	
$     175,422.79
	
$     14,618.57

	
Yr 10
	
2/1/2028 — 1/31/2029
	
$     177,177.02
	
$     14,764.75

 

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(The rental amounts set forth above shall be hereinafter referred to as “Base Rent”.)

TENANT’S PROPORTIONATE SHARE (Also see Article 3):  50.21%

OFFSET PAYMENT:  $3,125.00 per month (Also see Article 3)

PERMITTED USE (See Article 4):  Tractor trailer vehicle parking and repairs and general office purposes to such use.

SECURITY DEPOSIT:  $13,500.00

B.Enumeration of Exhibits.  The following exhibits are attached hereto and incorporated herein by this reference, as though set forth in full herein.

EXHIBIT APlan of Premises (See Article 1)

EXHIBIT BOutdoor Space (See Article 1)

EXHIBIT CRules and Regulations (see Article 25)

 

Article 1
DEMISED PREMISES; TERM

 

Landlord does hereby demise and lease to Tenant, and Tenant hereby accepts, that certain space as shown on the plan attached hereto and made a part hereof as Exhibit A, designated as Suite 100 and Suite 400 and consisting of approximately 17,550 rentable square feet (the “Premises”) in the building known as 6925 South 6th Street (the “Building”), situated on certain property (including all easements appurtenant thereto) in Oak Creek, Wisconsin (the “Property”) and the exclusive use of that portion of the Property as depicted on Exhibit B (the “Outdoor Space”), for a term commencing on the Commencement Date pursuant to the Introductory Article and ending on the last day of ten (10) years from the Commencement Date, plus any partial month, (the “Term”), unless sooner terminated or extended as provided herein, subject to the terms, covenants, and agreements herein contained.

ARTICLE 2
RENT; BASE RENT

 

Tenant shall pay to Landlord or Landlord’s agent at the office of Landlord or at such other place as Landlord may from time to time designate annual Base Rent in the amount set forth in the Introductory Article, payable in advance in equal monthly installments on the first day of each and every calendar month during the Term.  If the Commencement Date falls on a day other than the first day of the month, Tenant shall pay such partial month Base Rent at the Commencement Date.  The initial Base Rent rate is Thirteen Thousand Five Hundred and 00/100 Dollars ($13,500.00).  Base Rent shall increase each year during the Term as set forth on the table of Base Rent contained in the Introductory Article.  If the Term ends on a day other than the last day of a calendar month, then the Base Rent for such fractional month shall be prorated on the basis of 1/365th of the annual Base Rent for each day of such fractional month.  Base Rent and Additional Rent (as hereinafter defined) shall be payable without any prior demand therefor and without any deductions or set-offs whatsoever.  Base Rent, Additional Rent and all other sums payable by Tenant hereunder are sometimes referred to herein collectively as “Rent”.

 

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ARTICLE 3
ADDITIONAL RENT

 

Tenant agrees that it shall pay the additional charges described below (“Additional Rent”) with respect to each calendar year of the Term (except as set forth below), or portion thereof, including the calendar year in which the Lease terminates.

(A)Tenant shall pay to Landlord an amount equal to Tenant’s Proportionate Share of the Ownership Taxes payable by Landlord during each calendar year of the Term.  Tenant’s Proportionate Share of such Ownership Taxes is agreed to be 50.21%, being the percentage calculated by dividing the rentable area contained in the Premises (17,550 SF) by the rentable area of the Building (34,954 SF).

Ownership Taxes shall mean all taxes and assessments of every kind and nature which Landlord shall be first obligated to pay during each calendar year of the Term or portion thereof because of or in any way connected with the ownership, leasing, and operation of the Building and the Property subject to the following:

(i)the amount of ad valorem real and personal property taxes against Landlord’s real and personal property to be included in Ownership Taxes shall be the amount levied for or during such calendar year, notwithstanding that such taxes are payable in a subsequent calendar year.  The amount of any tax refunds received by Landlord shall be deducted from Ownership Taxes for the calendar year during which such Ownership Taxes were payable;

(ii)the amount of special taxes and special assessments to be included shall be limited to the amount of the installments (plus any interest, other than penalty interest, payable thereon) of such special tax or special assessment payable during the calendar year in respect of which Ownership Taxes are being determined;

(iii)there shall be excluded from Ownership Taxes all income taxes, excess profits taxes, franchise, capital stock, and inheritance or estate taxes; and

(iv)Ownership Taxes shall also include Landlord’s reasonable costs and expenses (including attorneys’ fees) in contesting or attempting to reduce any Ownership Taxes for any calendar year.

(B)Tenant shall pay to Landlord an amount equal to Tenant’s Proportionate Share of Operating Expenses for each calendar year of the Term.  Tenant’s Proportionate Share of such Operating Expenses is agreed to be 50.21% (calculated as set forth in Article 3(A) herein).

Operating Expenses shall mean all expenses, incurred or paid on behalf of Landlord for the ownership, management, operation, maintenance and repair of, and necessary replacements in, the Building including the land on which it is located which, in accordance with generally accepted accounting practice as applied to the operation and maintenance of similar buildings, are properly chargeable to the ownership, management, operation, maintenance and repair of, and necessary replacements in, the Building including the land on which it is located.  Operating Expenses include, without limitation and except as limited elsewhere in this Article, the cost of 

 

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exterior window washing, snow removal, landscaping, repair or replacement of the roof and of any Building systems and improvements, expenditures required under any governmental law or regulation, installation, maintenance, inspection and repair of fire safety systems, including sprinkler and smoke detection systems, wages and union benefits of engineers and other employees (including the amount of any social security taxes, unemployment insurance contributions and “fringe benefits”), insurance premiums, fuel costs and utility costs, management fees, whether internal or paid to a third party, legal and accounting expenses, and amortization of the costs of any capital improvement to the Property, as reasonably amortized by Landlord, with interest at three percent (3%) over the prime rate of interest as published from time to time in The Wall Street Journal on the unamortized amount of such costs.  All such capital costs shall be amortized over the lesser of (i) the reasonable life of the capital improvement items or (ii) if applicable, the economic payback period of the items, with the reasonable life/economic payback period and amortization schedule being determined in accordance with sound management accounting principles.

Notwithstanding the foregoing, Operating Expenses shall not include:

(i)costs of alterations and decoration of tenant spaces;

(ii)depreciation, interest and principal payments on mortgages, and other debt costs, if any, ground rent or original construction costs of the Building;

(iii)costs of capital improvements, except for such costs including interest thereon, as reasonably determined and amortized over their payback period or useful life by Landlord, where (a) one of the purposes of such capital improvements was to reduce Operating Expenses, or (b) such capital improvement was required due to any regulation, ordinance or statute of any applicable governmental body;

(iv)real estate brokers’ leasing commissions or compensation;

(v)capital expenditures for expansion of the Building;

(vi)payments to affiliates of Landlord for goods and/or services in excess of what would be paid to non-affiliated parties for such goods and/or services in an arm’s length transaction;

(vii)legal, space planning, construction, and other expenses incurred in procuring tenants for the Building or renewing or amending leases with existing tenants or occupants of the Building;

(viii)costs of advertising and public relations and promotional costs and attorneys’ fees associated with the leasing of the Building;

(ix)any expense for which Landlord actually receives reimbursement from insurance, condemnation awards, other tenants or any other source;

 

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(x)interest and amortization of funds (except as expressly set forth above), costs incurred in connection with the sale, financing, refinancing, mortgaging, or other change of ownership of the Building; and

(xi)income, excess profits, franchise taxes or other taxes imposed on the income of Landlord from the Building, except future taxes on rent.

(C)In order to provide for current payments on account of Ownership Taxes and Operating Expenses payable for each calendar year during the Term of this Lease, Tenant agrees, at Landlord’s request, to pay, as Additional Rent, Tenant’s Proportionate Share of Ownership Taxes and Operating Expenses due for any calendar year, as reasonably estimated by Landlord from time to time, in twelve (12) monthly installments, each in an amount equal to I/12th of Tenant’s Proportionate Share so estimated by Landlord commencing on the first day of the month following the month in which Landlord notifies Tenant of the amount of such estimated Tenant’s Proportionate Share of Ownership Taxes and Operating Expenses.  If the Commencement Date falls on a day other than the first day of the month, Tenant shall pay Tenant’s Proportionate Share of such partial month Ownership Taxes and Operating Expenses at the Commencement Date.  If, as finally determined (whether in the succeeding calendar year at the time of delivery of the annual report provided for in subparagraph (D) hereof, or in the current calendar year when the final amount of any portion of Ownership Taxes for a calendar year becomes known to Landlord), Tenant’s Proportionate Share of Operating Expenses or Ownership Taxes shall be greater than or be less than the aggregate of all installments so paid on account to the Landlord (and which are applicable to such calendar year) prior to receipt of an invoice from Landlord, then Tenant upon receipt of such invoice shall pay to Landlord the amount of such underpayment, or the Landlord shall credit Tenant for the amount of such overpayment, as the case may be.  It is the intention hereunder to estimate the amount of Ownership Taxes and Operating Expenses from time to time for each year and then to adjust such estimate from time to time based on actual Ownership Taxes and Operating Expenses for such calendar year.  Landlord’s current estimate for Ownership Taxes and Operating Expenses for 2018 is $2.28 per square foot.

(D)Landlord shall deliver to Tenant after the close of each calendar year (including the calendar year in which this Lease terminates), a statement containing the following:

(i)the amount of the Operating Expenses and Ownership Taxes for such calendar year; and

(ii)the estimate of Tenant’s Proportionate Share of Ownership Taxes and Operating Expenses for the current calendar year.

In the event that any additional charge results in a net increase in the amount of Additional Rent due Landlord, Tenant shall and hereby agrees to pay to Landlord within ten (10) days following Tenant’s receipt of an invoice from time to time from Landlord an amount equal to such additional charge for such prior calendar year, or portion thereof.  Failure or delay in delivering any such statement or invoice, or failure or delay in computing the Additional Rent pursuant to this Article 3, shall not be deemed a waiver by Landlord of its right to deliver such items nor shall any such failure or delay be deemed a release of Tenant’s obligations with respect to any such statement or invoice, or constitute a default hereunder.  All Additional Rent payable hereunder shall be made without any deductions or set-offs whatsoever.

 

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(E)The obligation of the Tenant with respect to the payment of Rent due hereunder, including, without limitation, Additional Rent and the obligation of Landlord to credit Tenant for any overpayment of Additional Rent shall survive the expiration or termination of this Lease.  Any payment, refund, or credit made pursuant to this Article shall be made without prejudice to any right of the Landlord to correct any items as billed pursuant to the provisions hereof.  In the event that this Lease shall have been in effect for less than the full calendar year immediately preceding Tenant’s receipt of the invoices provided for in subparagraphs (D) and (E) hereof, the Additional Rent shall be pro rata.  In no event shall any rent adjustment result in a decrease in the Base Rent payable hereunder.

(F)Landlord shall maintain books and records showing Ownership Taxes and Operating Expenses in accordance with accounting principles, which are consistently applied, and its customary management practices.  Tenant or its acceptable representative (as described below) shall have the right to examine Landlord’s books and records showing Ownership Taxes and Operating Expenses upon reasonable prior notice provided to Landlord, during Landlord’s normal business hours, at Landlord’s normal place of business, at any time within sixty (60) days following the furnishing by Landlord to Tenant of Landlord’s statement provided for in Section 3(D) above.  Unless, within sixty (60) days of receipt of any such Landlord’s statement, Tenant shall provide Landlord with notice of its intention to inspect Landlord’s books and records pursuant to this Section and provide Landlord with a written statement of its objection to any item in such Landlord’s statement, Landlord’s statement shall be considered as final and conclusively binding on Tenant.  Tenant agrees and acknowledges that any representative retained by Tenant for the purpose of examining Landlord’s books and records shall be a nationally or regionally recognized accounting firm and that such representative shall not be compensated for its services on a contingency basis.  Notwithstanding anything set forth to the contrary above, in the event that the parties agree, or it is determined by a court of competent jurisdiction, that Tenant has overpaid Tenant’s Proportionate Share of Operating Expenses or Tenant’s Proportionate Share of Ownership Taxes with respect to a calendar year by more than five percent (5%), and there then exists no default by Tenant or any event which, with notice or the passage of time, or both, would constitute such a default, then Landlord shall reimburse Tenant for the reasonable out-of-pocket costs of such review of the books and records.

(G)Tenant shall pay to Landlord on the first day of each and every calendar month during the Term the amount of $3,125.00 per month (“Offset Payment”) until the later of (a) the date that the JB Lease Note as identified in the Stock Purchase Agreement between EVO Equipment Leasing, LLC and Ursula and John Lampsa is paid in full, (b) the date that John Lampsa is no longer employed by Tenant, or (c) the first anniversary of this Lease.

ARTICLE 4
USE

 

(A)Tenant shall use and occupy the Premises for tractor trailer vehicle parking and repairs and general office purposes related to such use as specified in the Introductory Article and for no other purpose whatsoever.  Tenant shall not use or permit upon the Premises anything that will invalidate any policies of insurance now or hereafter carried on the Building or that will increase the rate of insurance on the Premises or on the Building.  Tenant will pay all extra insurance premiums which may be caused by the use which Tenant shall make of the Premises.  

 

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Tenant will not use or permit upon the Premises anything that may be dangerous to life or limb.  Tenant will not in any manner deface or injure the Building or any part thereof or overload the floors of the Premises.  Tenant will not do anything or permit anything to be done upon the Premises in any way tending to create a nuisance or tending to disturb any other tenant in the Building or the occupants of neighboring property or tending to injure the reputation of the Building.  Tenant will promptly and fully comply with all governmental, health and police requirements and regulations respecting the Premises.  Tenant will not use the Premises for any immoral or illegal purposes.  Tenant shall not conduct nor permit to be conducted on the Premises any business which is contrary to any of the laws of the United States of America or of the State of Wisconsin or which is contrary to the ordinances of the City of Oak Creek.  Tenant shall be solely responsible for procuring and maintaining any and all permits necessary for Tenant’s use.

(B)Tenant agrees that it will not use, handle, generate, treat, store or dispose of, or permit the handling, generation, treatment, storage or disposal of any Hazardous Materials in, on, under, around or above the Premises now or at any future time and will indemnify, defend and save Landlord harmless from any and all actions, proceedings, claims, costs, expenses and losses of any kind, including, but not limited to, those arising from injury to any person, including death, damage to or loss of use or value of real or personal property, and costs of investigation and cleanup associated with the existence of Hazardous Materials on the Premises during the Term hereof.  The term “Hazardous Materials”, when used herein, shall include, but shall not be limited to, any substances, materials or wastes to the extent quantities thereof are regulated by the City of Oak Creek or any other local governmental authority, the State of Wisconsin, or the United States of America because of toxic, flammable, explosive, corrosive, reactive, radioactive or other properties that may be hazardous to human health or the environment, including asbestos and including any materials or substances that are listed in the United States Department of Transportation Hazardous Materials Table, as amended, 49 C.F.R.  172.101, or in the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C.  subsections 9601 et seq., or the Resources Conservation and Recovery Act, as amended, 42 U.S.C.  subsections 6901 et seq., or any other applicable governmental regulation imposing liability or standards of conduct concerning any hazardous, toxic or dangerous substances, waste or material, now or hereafter in effect.  Tenant does hereby indemnify, defend and hold harmless the Landlord and its agents and their respective officers, directors, beneficiaries, shareholders, partners, agents and employees from all fines, suits, procedures, claims and actions of every kind, and all costs associated therewith (including attorneys’ and consultants’ fees) arising by, through or under Tenant, its agents, employees, contractors, servants and invitees and out of or in any way connected with any deposit, spill, discharge or other release of Hazardous Materials that occurs during the Term of this Lease, at or from the Premises, or which arises at any time from Tenant’s use or occupancy of the Premises, or from Tenant’s failure to provide all information, make all submissions, and take all steps required by all applicable governmental authorities.  Tenant’s obligations and liabilities under this paragraph shall survive the expiration of the Term of this Lease.  Notwithstanding the foregoing, Tenant shall be permitted to use such materials as are customarily used in the ordinary course of Tenant’s business, provided that such materials are used and stored in accordance with all applicable laws.

 

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ARTICLE 5
SERVICES

 

Landlord shall provide, as part of the Operating Expenses hereunder, except as otherwise provided and subject to applicable government codes, rules, regulations, and guidelines applicable thereto, whether mandatory or voluntary, the following services:

(a)Water from City of Oak Creek mains for drinking, lavatory and toilet purposes drawn through fixtures installed by Landlord, or by Tenant with Landlord’s written consent, from regular Building supply at the prevailing temperature.  Tenant shall pay for all water used or consumed by Tenant and billed by Landlord at rates fixed by the water utility and as measured by a deduct or sub meter.  All water charges shall be billed and paid as Additional Rent.  Tenant shall not waste or permit the waste of water.

(b)Electrical service to the Premises shall not be furnished by Landlord but shall be furnished by the electric utility company servicing the Building.  Tenant shall make all necessary arrangements with the electric utility company for paying for electric current provided by it to Tenant, and Tenant shall pay all charges for electric current consumed on the Premises during the Term or any other period of occupancy.

(c)Natural gas service to the Premises shall not be furnished by Landlord but shall be furnished by the natural gas utility company servicing the Building.  Tenant shall make all necessary arrangements with the natural gas utility company for paying for natural gas provided by it to Tenant, and Tenant shall pay all charges for natural gas consumed on the Premises during the Term or any other period of occupancy.

(d)Such additional services on such terms and conditions as may be mutually agreed upon by Landlord and Tenant.

All charges for any services provided by Landlord to Tenant but not provided to all tenants of the Building or provided to Tenant on other than a proportionate basis shall be paid by Tenant from time to time hereunder together with a reasonable Landlord administrative fee shall be deemed Rent reserved under this Lease and shall be due and payable at the same time as the installment of Base Rent with which they are billed, or, if billed separately, shall be due and payable within ten (10) days after such billing.  hi the event Tenant shall fail to make payment for such additional services Landlord may, in addition to all other remedies which Landlord may have for the non-payment of Rent and without notice to Tenant, discontinue any or all such services, and such discontinuance shall not be held or pleaded as an eviction or as a disturbance in any manner whatsoever of Tenant’s possession, or relieve Tenant from the payment of Rent when due, or vary or change any other provision of this Lease or render Landlord liable for damages of any kind whatsoever.

Tenant agrees that neither Landlord nor any of its respective agents or employees shall be liable to Tenant, or any of Tenant’s employees, agents, customers or invitees or anyone claiming through, by or under Tenant, for any damages, injuries, losses, expenses, claims or causes of action, because of any interruption, diminution, delay or discontinuance at any time for any reason in the furnishing of any of the above services, except solely for personal injury if caused by the 

 

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negligence of Landlord or its agents; nor shall any such interruption, diminution, delay or discontinuance be deemed an eviction or disturbance of Tenant’s use or possession of the Premises or any part thereof; nor shall any such interruption, diminution, delay or discontinuance relieve Tenant from full performance of Tenant’s obligations under this Lease.  Notwithstanding the foregoing, in the event that any such interruption or discontinuance, which interruption or discontinuance is solely within Landlord’s control, continues beyond thirty (30) consecutive days, except if such interruption or discontinuance is for water, then for more than two (2) days, after written notice to Landlord and materially and adversely affects Tenant’s ability to conduct business in the Premises, or any portion thereof, and on account of such interruption or disturbance Tenant ceases doing business in the affected portion of the Premises, Base Rent and Additional Rent shall abate proportionately from and after said thirty (30) day period and for so long thereafter as Tenant remains unable to conduct its business in the Premises or such portion thereof as Tenant’s sole remedy.

ARTICLE 6
POSSESSION

 

Landlord hereby leases, and Tenant hereby accepts the Premises in “as-is” condition.  No representations have been made by Landlord with respect to the Premises or the Building except as may be expressly contained in this Lease.  If Tenant shall enter possession of the Premises prior to the Commencement Date, all of the covenants and conditions of this Lease shall be binding upon the parties hereto in respect of such possession the same as if the first day of the Term had been fixed as of the date when Tenant entered such possession.

ARTICLE 7
CONDITION OF PREMISES

 

Tenant’s taking possession of any portion of the Premises shall be conclusive evidence as against Tenant that such portion of the Premises were in good order and satisfactory condition when Tenant took possession, except as to any mutually agreed upon punchlist items and any latent defects (which exception shall be effective for a thirty (30) day period following the date the Premises are ready for occupancy, excluding items of damage caused by Tenant, its agents, contractors and suppliers).  No promise of Landlord to alter, remodel, repair or improve the Premises or the Building and no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, other than as may be contained herein, if any.

ARTICLE 8
REPAIRS

 

Except as otherwise provided in Article 11 of this Lease, and subject to the provisions of Article 9 of this Lease, Tenant shall, at its sole cost and expense, keep the Premises in good order, repair and tenantable condition at all times during the Term, and Tenant shall promptly repair, at Tenant’s sole cost and expense, all systems and mechanicals within the Premises, including the HVAC system (an annual maintenance contract with Conditioned Air Design, Inc., or similar company designated by Landlord, is required throughout the Term), plumbing and electrical, all doors, including exterior and overhead doors, all damages to the Premises and for the replacement or repair of all damaged or broken glass, fixtures and appurtenances within any reasonable period 

 

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of time specified by Landlord, provided, however, that Tenant shall not be required to repair or replace broken or damaged exterior window glass unless such replacement or repair is necessitated by the negligence or intentional act of Tenant, its servants, employees, agents, invitees or guests.  If Tenant does not make such arrangements promptly after its receipt of written or verbal notice therefor from Landlord (except that no prior notice shall be required in cases of emergency), Landlord may, but need not, make such repairs and replacements and the costs paid or incurred by Landlord for such repairs and replacements (including Landlord’s overhead and profit, and the cost of general conditions) shall be deemed additional Rent reserved under this Lease due and payable forthwith.  Landlord may, upon reasonable prior written or verbal notice to Tenant, when reasonably possible, (except that no advance notice shall be required in cases of emergency), but shall not be required so to do, enter the Premises at all reasonable times to make any repairs, alterations, improvements or additions, including, but not limited to, ducts and all other facilities for heating and air conditioning service, water meters, sprinkler system, roof and other Building systems, controls or components, as Landlord shall desire or deem necessary for the safety, maintenance, repair, preservation or improvement of the Building, or as Landlord may be required or requested to do by the City of Oak Creek or by the order or decree of any court or by any other proper authority.  Landlord shall use reasonable efforts to minimize disruption to Tenant’s normal business activities in exercising its rights under this Article 8.

In the event Landlord or its agents or contractors shall elect or be required to make repairs, alterations, improvements or additions to the Premises or the Building, Landlord shall be allowed to take into and upon the Premises all material that may be required to make such repairs, alterations, improvements or additions and, during the continuance of any of said work, to temporarily close doors, entryways, public space and corridors in the Building or on the Property and to interrupt or temporarily suspend any services and facilities without being deemed or held guilty of an eviction of Tenant or for damages to Tenant’s property, business or person, and the Rent reserved herein shall in no way abate while said repairs, alterations, improvements or additions are being made, and Tenant shall not be entitled to maintain any set-off or counterclaim for damages of any kind against Landlord by reason thereof.  Landlord shall use reasonable efforts to provide prior notice of any interruption to the electrical or mechanical service to the Premises (except in cases of emergency).  Landlord shall use reasonable efforts to minimize disruption to Tenant’s normal business activities in connection with any repairs, alterations, improvements or additions to the Premises or the Building undertaken by Landlord as set forth in this paragraph.  Landlord may, at its option, make all such repairs, alterations, improvements or additions in and about the Building and the Premises during ordinary business hours, but if Tenant desires to have the same done at any other time, Tenant shall pay for all overtime and additional expenses resulting therefrom.

ARTICLE 9
ALTERATIONS

 

Tenant shall not, without the prior written consent of Landlord, and, in the case of any work affecting any structural components or members of the Building (including, without limiting the foregoing, any work involving floor loading and floor coring), without the prior written approval of the structural engineer designated by Landlord for the Building, in each instance obtained, make (i) any structural repairs, replacements, alterations, improvements or additions to the Premises (including, without limiting the foregoing, any work involving floor loading and floor coring), (ii) 

 

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any alterations, improvements, additions or repairs which affect the mechanical or operating systems of the Building, or (iii) any alterations, improvements, additions, repairs or replacements the costs of which exceed Five Thousand Dollars ($5,000.00).  In the event Tenant is not required to obtain Landlord’s prior written consent for any alterations, additions or repairs, Tenant shall nonetheless provide Landlord at least twenty (20) days prior written notice thereof.  In the event Tenant desires to make any alterations, improvements or additions pursuant to this Article 9, or any repairs or replacements pursuant to Article 8 of this Lease, Tenant shall prior to commencing any such work:

(a)Submit to Landlord for review by it and its engineers plans and specifications showing such work in reasonable detail and obtain Landlord’s prior written approval (Tenant shall pay to Landlord all costs incurred by Landlord in connection with such review of such plans and specifications);

(b)Furnish Landlord with the names and addresses of all contractors and copies of all contracts with such contractors and obtain Landlord’s prior written approval;

(c)Provide Landlord, at Tenant’s sole cost and expense, with such security as Landlord may reasonably require, as well as all necessary permits evidencing compliance with all ordinances and regulations of the city or any department or agency thereof, and with the requirements of all statutes and regulations of the state or any department or agency thereof;

(d)Provide Landlord with certificates of insurance in forms and amounts satisfactory to Landlord including Landlord as an additional insured where required by Landlord; and

(e)Comply, at Tenant’s sole cost and expense, with such other requests as Landlord may make in connection with such work (supervision fee shall not apply to Tenant’s initial build out work).

Tenant hereby agrees to protect, defend, indemnify and hold Landlord, the Building and the Property harmless from and against any and all liabilities of every kind and description which may arise out of or in connection with such repairs, replacements, alterations, improvements or additions.

Upon completing any of such repairs, replacements, alterations, improvements or additions, Tenant shall furnish Landlord with contractors’ affidavits, sworn statements, full and final waivers of lien and receipted bills covering all labor and material expended and used and two (2) sets of final as-built plans and specifications.  All repairs, replacements, alterations, improvements and additions shall comply with all insurance requirements and with all ordinances and regulations of the City of Oak Creek or any department or agency thereof and with the requirements of all statutes and regulations of the State of Wisconsin or of any department or agency thereof.  All repairs, replacements, alterations, improvements and additions shall be constructed in a good and workmanlike manner and only good grades of material shall be used.

 

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All alterations, improvements, additions, repairs, or replacements, whether temporary or permanent in character, including, without limitation, wall coverings, carpeting and other floor coverings, special lighting installations, built-in or attached shelving, cabinetry, and mirrors, made by Landlord or Tenant in or upon the Premises shall become Landlord’s property and shall remain upon the Premises at the termination of this Lease by lapse of time or otherwise without compensation to Tenant (excepting only Tenant’s movable office furniture, trade fixtures, and office equipment); provided, however, that Landlord shall have the right to require Tenant to remove such alterations, improvements, additions, repairs or replacements at Tenant’s sole cost and expense in accordance with the provisions of Article 19 of this Lease.

ARTICLE 10
COVENANT AGAINST LIENS

 

Nothing contained in this Lease shall authorize or empower Tenant to do any act which shall in any way encumber Landlord’s title to the Building, Property or Premises, nor in any way subject Landlord’s title to any claims by way of lien or encumbrance whether claimed by operation of law or by virtue of any expressed or implied contract of Tenant, and any claim to a lien upon the Building, Property or Premises arising from any act or omission of Tenant shall attach only against Tenant’s interest and shall in all respects be subordinate to Landlord’s title to the Building, Property and Premises.  If Tenant has not removed any such lien or encumbrance upon the Building, Property or Premises within ten (10) days after written notice to Tenant by Landlord, Landlord may, after providing written notice to Tenant, but shall not be obligated to, pay the amount necessary to remove such lien or encumbrance, without being responsible for making any investigation as to the validity or accuracy thereof, and the amount so paid, together with all costs and expenses (including attorneys’ fees) incurred by Landlord in connection therewith, shall be deemed additional Rent reserved under this Lease due and payable forthwith.

ARTICLE 11 
DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY

 

(A)If the Premises or any part of the Building shall be damaged by fire or other casualty and if such damage does not render all or a substantial portion of the Premises or the Building untenantable, then Landlord shall proceed to repair and restore the same to its prior existing condition with reasonable promptness, subject to reasonable delays for insurance adjustments and delays caused by matters beyond Landlord’s control.  If any such damage renders all or a substantial portion of the Premises or the Building untenantable, Landlord shall, with reasonable promptness after the occurrence of such damage and in good faith, estimate the length of time that will be required to substantially complete the repair and restoration of such damage and shall by notice advise Tenant of such estimate.  If it is so estimated that the amount of time required to substantially complete such repair and restoration will exceed two hundred seventy (270) days from the date such damage occurred, then either Landlord or Tenant shall have the right to terminate this Lease as of the date of such damage upon giving notice to the other at any time within fifteen (15) days after Landlord gives Tenant the notice containing said estimate (it being understood that Landlord may, if it elects to do so, also give such notice of termination together with the notice containing said estimate).  Unless this Lease is terminated as provided in the preceding sentence, Landlord shall proceed with reasonable promptness and all due diligence to repair and restore the Premises, subject to reasonable delays for insurance adjustments and delays 

 

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caused by matters beyond Landlord’s control, and also subject to zoning laws and building codes then in effect.  Landlord shall have no liability to Tenant, and Tenant shall not be entitled to terminate this Lease (except as hereinafter provided) if such repairs and restoration are not in fact completed within the time period estimated by Landlord, as aforesaid, or within said two hundred seventy (270) days, so long as Landlord shall proceed with reasonable promptness and due diligence.  Notwithstanding anything to the contrary herein set forth:  (i) if any such damage rendering all or a substantial portion of the Premises or Building untenantable shall occur during the last twenty-four (24) months of the Term, then Landlord shall have the option to terminate this Lease by written notice to Tenant within fifteen (15) days after the date such damage occurred, and if such option is so exercised, this Lease shall terminate as of the date of such damage; (ii) Landlord shall have no duty pursuant to this Article 11 to repair or restore any portion of alterations, additions or improvements made by or on behalf of Tenant in the Premises or improvements which are not then building standard improvements; (iii) Landlord shall not be required to commence repair and restoration hereunder until receipt of insurance proceeds; (iv) Landlord shall not be required to expend more than the amount of available insurance proceeds in such repair and restoration; (v) Landlord shall not be obligated (but may, at its option, so elect) to repair or restore the Premises or Building if any mortgagee applies proceeds of insurance to reduce its loan balance, and the remaining proceeds, if any, available to Landlord are not sufficient to pay for such repair or restoration; and (vi) Tenant shall not have the right to terminate this Lease pursuant to this Article 11 if the damage or destruction was caused by the intentional or negligent act of Tenant, its agents or employees.

(B)In the event any such fire or casualty damage not caused by the intentional or negligent act of Tenant, its agents or employees, renders the Premises substantially untenantable and Tenant is not occupying the Premises and if this Lease shall not be terminated pursuant to the foregoing provisions of this Article 11 by reason of such damage, then Base Rent and Additional Rent shall abate during the period beginning with the date of such damage and ending with the date when Landlord substantially completes its repair and restoration work.  Such abatement shall be in an amount bearing the same ratio to the total amount of Base Rent for such period as the portion of the Premises being repaired and restored by Landlord and not heretofore delivered to Tenant from time to time bears to the entire Premises.  In the event of termination of this Lease pursuant to this Article 11, Rent shall be apportioned on a per diem basis and be paid to the date of such fire or other casualty.

(C)In the event of any such fire or other casualty, and if this Lease is not terminated pursuant to the foregoing provisions of this Lease, Tenant shall repair and restore any portion of alterations, additions or improvements made by or on behalf of Tenant in the Premises, and during any such period of Tenant’s repair and restoration following substantial completion of Landlord’s repair and restoration work, Rent shall be payable as if said fire or other casualty had not occurred.

 

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ARTICLE 12 
INSURANCE

 

In consideration of the leasing of the Premises at the rental stated in Article 2, Landlord and Tenant agree to provide insurance and allocate the risk of loss as follows:

(a)Tenant, at its sole cost and expense but for the mutual benefit of Landlord, the grantees of any mortgages now or hereafter in force against the Building or the Property (“Mortgagees”) and Tenant (when used in this Article the term “Landlord” shall include Landlord and its officers, agents, servants and employees and the term “Tenant” shall include Tenant’s agents, servants and employees), shall purchase and keep and maintain in force and effect during the Term hereof, insurance under policies issued by insurers of recognized responsibility on its fixtures and tenant improvements including, but not limited to, wall and floor coverings, lighting fixtures, built-in cabinets and bookshelves and on its inventory, contents, furniture, equipment or other personal property located in the Premises protecting Landlord and Tenant from damage or other loss caused by fire or other casualty including, but not limited to, vandalism and malicious mischief, perils covered by all risk and extended coverage, theft, sprinkler leakage, water damage (however caused), explosion, malfunction or failure of heating and cooling or other apparatus, and other similar risks in amounts not less than the full insurable replacement value of such property.  Such insurance shall provide that it is primary and non-contributory and shall include Landlord and Mortgagees as additional insured parties, to the extent of their interest, and shall contain a replacement cost endorsement and a clause pursuant to which the insurance carriers waive all rights of subrogation against Landlord and Mortgagees with respect to losses payable under such policies.  Tenant shall deliver certificates of insurance evidencing such coverage upon execution hereof and ‘thereafter not less than thirty (30) days prior to the expiration date of any such policy.

(b)During the term of this Lease or any renewal thereof, Tenant shall obtain and promptly pay all premiums for Commercial General Liability Insurance with broad form extended coverage including Contractual Liability Insurance against claims occurring upon in or about the Premises with a minimum coverage of a combined single limit of$ 1,000,000.00 with excess or umbrella coverage of an additional $2,000,000.00, and all such policies and renewals thereof shall name Landlord, Landlord’s agents, Mortgagees and Tenant as additional insured parties.  All policies of insurance shall provide (i) that no material change or cancellation of said policies shall be made without thirty (30) days prior written notice to Landlord, Mortgagees and Tenant (ten (10) day notice for failure to pay premiums), and (ii) that any loss shall be payable notwithstanding any act or negligence of Tenant or Landlord or Mortgagees which might otherwise result in the forfeiture of said insurance.  On or before the Commencement Date of the term of this Lease, and thereafter not less than thirty (30) days prior to the expiration dates of said policy or policies, Tenant shall provide copies of policies or certificates of insurance, at Landlord’s option, evidencing coverages required by this Lease.

(c)Tenant shall purchase and keep in force business interruption insurance covering a period of not less than twelve (12) months.

 

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All the insurance required of Tenant under this Lease shall be issued by insurance companies authorized to do business in the State of Wisconsin with a financial rating of at least a A+ as rated in the most recent edition of Best’s Insurance Reports and in business for the past five years.  The aforesaid insurance limits may be reasonably increased from time to time by Landlord.

Landlord agrees to purchase and keep in force and effect insurance on the Building against fire and such other risks as may be included in extended coverage insurance from time-to-time available in an amount not less than the greater of 80% of the full insurable value of the Building or the amount sufficient to prevent Landlord from becoming a co-insurer under the terms of the applicable policies.  Such policies shall contain a replacement cost endorsement and a clause pursuant to which the insurance carriers waive all rights of subrogation against the Tenant with respect to losses payable under such policies.

By this section, Landlord and Tenant intend that the risk of loss or damage as described above be borne by responsible insurance carriers to the extent above provided, and Landlord and Tenant hereby release each other and agree to look solely to, and to seek recovery only from, their respective insurance carriers in the event of a loss of a type described above to the extent that such coverage is agreed to be provided hereunder.  For this purpose, any applicable deductible amount shall be treated as though it were recoverable under such policies.  Landlord and Tenant agree that applicable portions of all monies collected from such insurance shall be used toward the full compliance of the obligations of Landlord and Tenant under this Lease in connection with damage resulting from fire or other casualty.

ARTICLE 13
LANDLORD’S LIEN

 

Intentionally Deleted.

ARTICLE 14
CONDEMNATION

 

If the whole or any part of the Premises, Building or Property, other than a part which does not interfere with the maintenance or operation thereof in Landlord’s reasonable opinion, shall be taken or condemned by any competent authority for any public or quasi-public use or purpose or if any adjacent property or street shall be condemned or improved in such manner as to require the use of any part of the Premises or of the Building, other than a part which does not interfere with the maintenance or operation thereof in Landlord’s reasonable opinion, or a conveyance is made in lieu of such a taking, the Term, at the option of Landlord, shall end upon the date when the possession of the part so taken shall be required for such use or purpose and Landlord shall be entitled to receive the entire award including all income, rents, any interest thereon and any other compensation for any taking or conveyance without any payment to Tenant, the Tenant hereby assigning to the Landlord the Tenant’s interest therein, if any, excluding any award Tenant shall be entitled to claim, prove and receive in the condemnation proceeding but only if such award or compensation shall be made by the condemning authority in addition to, and shall not result in a reduction of the award and compensation paid by it to Landlord.  Current Base Rent and Additional Rent shall be apportioned as of the date of such termination.

 

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ARTICLE 15
WAIVER OF CLAIMS AND INDEMNITY

 

Tenant agrees that, to the extent not expressly prohibited by law, and except as set forth below, Landlord and its officers, agents, servants and employees shall not be liable for (nor shall Rent abate as a result of) any direct or consequential damage (including damage claimed for actual or constructive eviction) either to person or property sustained by Tenant, its servants, employees, agents, invitees or guests due to the Building or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening of any accident in or about the Building or property, or due to any act or neglect of any tenant or occupant of said Building or of any other person.  Tenant further agrees that all of Tenant’s personal property in the Premises or the Building shall be at the risk of Tenant only and that Landlord shall not be liable for any loss or damage thereto or theft thereof.  Notwithstanding the foregoing, Landlord shall not hereby be exculpated from any liability for personal injury arising from its own or its agents’ negligence.  Tenant shall protect, indemnify and save Landlord and its officers, agents, servants and employees harmless from and against any and all obligations, liabilities, costs, damages, claims and expenses of whatever nature arising from injury to persons or damage to property on the Premises, in or about the Building, or upon the property arising out of or in connection with Tenant’s use or occupancy of the Premises or Tenant’s activities in the Building, or arising from any act or negligence of Tenant, or its agents, contractors, servants, employees, or invitees and Tenant shall not be liable for personal injury arising from Landlord’s or Landlord’s agents’ negligence.

ARTICLE 16
NONWAIVER

 

No waiver of any condition expressed in this Lease shall be implied by any neglect of Landlord to enforce any remedy on account of the violation of such condition if such violation be continued or repeated subsequently, and no express waiver shall affect any condition other than the one specified in such waiver and that one only for the time and in the manner specifically stated.  No receipt of moneys by Landlord from Tenant after the termination in any way of the Term or of Tenant’s right of possession hereunder or after the giving of any notice shall reinstate, continue or extend the Term or affect any notice given to Tenant prior to the receipt of such moneys, it being agreed that after the service of notice or the commencement of a suit or after final judgment for possession of the Premises Landlord may receive and collect any Rent due, and such payment shall not waive or affect said notice, suit or judgment.

ARTICLE 17
WAIVER OF NOTICE

 

Except as provided in Article 18 hereof, Tenant hereby expressly waives the service of any notice of intention to terminate this Lease or to re-enter the Premises and waives the service of any demand for payment of Rent or for possession and waives the service of any other notice or demand prescribed by any statute or other law.

 

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ARTICLE 18
LANDLORD’S REMEDIES

 

If (a) default shall be made in the payment of the Rent when due, including, without limitation, any installment of Base Rent or Additional Rent, or in the payment of any other sum required to be paid by Tenant under the terms of any other agreement between Landlord and Tenant, including, but not limited to, any other lease between Landlord and Tenant, and (with respect to the first two (2) of such defaults in any twelve-month period) such default shall continue for five (5) days, or (b) default shall be made in the full and prompt performance of any of the other covenants or conditions which Tenant is required to observe and perform and such default shall continue for fifteen (15) days after written notice to Tenant (or if such default involves a hazardous condition and is not cured by Tenant immediately upon written notice to Tenant), or (c) the interest of Tenant in this Lease shall be levied on under execution or other legal process, or (d) any petition shall be filed by or against Tenant to declare Tenant bankrupt or to delay, reduce or modify Tenant’s debts or obligations, or (e) Tenant be declared insolvent according to law or if any assignment of Tenant’s property shall be made for the benefit of creditors, or (f) a receiver or trustee is appointed for Tenant or its property, or (g) Tenant shall abandon or vacate the Premises during the Term of this Lease, then Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this Lease, and thereupon at its option may, without notice or demand of any kind to Tenant or any other person, have any one or more of the following de- scribed remedies in addition to all other rights and remedies provided at law or in equity:

(a)Landlord may terminate this Lease and the Term created hereby, in which event Landlord may forthwith repossess the Premises and be entitled to recover forthwith as damages a sum of money equal to the value of the (a) Landlord’s Work, (b) the amount of any real estate broker’s commission paid due to this Lease, (c) amounts currently due and owing to Landlord, and (d) the Rent provided to be paid by Tenant for the balance of the stated Term of the Lease, and any other sum of money and damages owed by Tenant to Landlord.

(b)Landlord may terminate Tenant’s right of possession and may repossess the Premises by forcible entry and detainer suit or otherwise, without demand or notice of any kind to Tenant and without terminating this Lease, in which event Landlord may, but shall not be obligated to, relet all or any part of the Premises, for such rent and upon such terms as shall be satisfactory to Landlord (including the right to relet the Premises for a term greater or lesser than that remaining under the Term of this Lease and the right to relet the Premises as a part of a larger area and the right to change the character or use made of the Premises), provided, however, Landlord shall attempt to mitigate its damages to the extent required under applicable law.  For the purpose of such reletting, Landlord is authorized to decorate or to make any repairs, changes, alterations or additions in or to the Premises that may be necessary or convenient, and if Landlord shall fail or refuse to relet the Premises or if the Premises are relet and a sufficient sum shall not be realized from such reletting after paying all of the costs and expenses of such decorations, repairs, changes, alterations and additions and the expenses of such reletting and of the collection of the rent accruing therefrom to satisfy the Rent provided for in this Lease to be paid, then Tenant shall pay to Landlord as damages a sum equal to the amount of the Rent reserved in this Lease for such period or periods, together with the cost of Landlord’s Work and real estate broker’s 

 

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commission paid due to this Lease, or if the Premises have been relet, Tenant shall satisfy and pay any such deficiency upon demand therefor from time to time, and Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this paragraph and any other sums due under this Lease from time to time and that no suit or recovery of any portion due Landlord hereunder shall be any defense to any subsequent action brought for any amount not theretofore reduced to judgment in favor of Landlord.

Tenant hereby waives trial by jury in any action or proceeding brought by, through or under Landlord, under or in connection with this Lease.

In addition to and without limitation of the foregoing, in the event Tenant fails to perform any covenant of Tenant hereunder, subject to any applicable grace period (except in the event such failure involves a hazardous condition), Landlord shall have the right to cause such covenant to be performed and Tenant shall pay the cost thereof, together with Landlord’s administrative fee, as additional Rent hereunder within three (3) days after notice hereof.

ARTICLE 19
SURRENDER OF POSSESSION

 

(A)On or before the date this Lease and the Term hereby created terminates, or on or before the date Tenant’s right of possession terminates, whether by lapse of time or at the option of Landlord, Tenant shall:

(i)restore the Premises to the same condition as they were in at the beginning of the Term (except as otherwise provided in Article 11 of this Lease) and remove those alterations, improvements or additions installed for or during Tenant’s occupancy, whether installed by Landlord or Tenant, or acquired by Tenant from former tenants, including, without limitation, any cabling installed in the Premises, if Landlord so requests Tenant to remove;

(ii)remove from the Premises and the Building all of Tenant’s personal property; and

(iii)surrender possession of the Premises to Landlord in a clean condition free of all rubbish and debris.

(B)If Tenant shall fail or refuse to restore the Premises to the above-described condition on or before the above-specified date, Landlord may enter into and upon the Premises and put the Premises in such condition and recover from Tenant Landlord’s cost of so doing.  If Tenant shall fail or refuse to comply with Tenant’s duty to remove all personal property from the Premises and the Building on or before the above-specified date, the parties hereto agree and stipulate that Landlord may enter into and upon the Premises and may, at its election:

(i)treat such failure or refusal as an offer by Tenant to transfer title to such personal property to Landlord, in which event title thereto shall thereupon pass under this Lease as a bill of sale to and vest in Landlord absolutely without any cost either by set-off, credit allowance or otherwise, and Landlord may retain, remove, sell, donate, destroy, 

 

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store, discard, or otherwise dispose of all or any part of said personal property in any manner that Landlord shall choose;

(b)treat such failure or refusal as conclusive evidence, on which Landlord or any third party shall be entitled absolutely to rely and act, that Tenant has forever abandoned such personal property, and without accepting title thereto, Landlord may, at Tenant’s expense, remove, store, destroy, discard or otherwise dispose of all or any part thereof in any manner that Landlord shall choose without incurring liability to Tenant or to any other person.  In no event shall Landlord ever become or accept or be charged with the duties of a bailee (either voluntary or involuntary) of any personal property, and the failure of Tenant to remove all personal property from the Premises and the Building shall forever bar Tenant from bringing any action or from asserting any liability against Landlord with respect to any such property which Tenant fails to remove.

ARTICLE 20
HOLDING OVER

 

Tenant shall pay to Landlord one hundred fifty percent (150%) of the Base Rent plus one hundred fifty percent (150%) of the Additional Rent then applicable for the first month or portions thereof Tenant shall retain possession of the Premises or any portion thereof after the termination of this Lease, whether by lapse of time or otherwise and double the Base Rent plus double the Additional Rent then applicable any time thereafter during which Tenant shall retain possession of the Premises or any part thereof.  In addition, Tenant shall pay all damages sustained by Landlord, whether direct or consequential, on account thereof.  At the option of Landlord, expressed in a written notice to Tenant and not otherwise, such holding over shall constitute a renewal of this Lease at the rental rates then prevailing for similar space in the Building for a period of one (1) year.  The provisions of this Article shall not operate as a waiver by Landlord of any right of re-entry hereinbefore provided.

ARTICLE 21
COSTS, EXPENSES AND ATTORNEYS’ FEES

 

In case Landlord shall, without fault on its part, be made a party to any litigation commenced by or against Tenant, then Tenant shall pay all reasonable costs, expenses and attorneys’ fees incurred or paid by Landlord in connection with such litigation.  Tenant shall also pay all reasonable costs, expenses and attorneys’ fees that may be incurred or paid by Landlord in enforcing any of Tenant’s covenants and agreements in this Lease.  In case Tenant shall, without fault on its part, be made a party to any litigation commenced by or against Landlord, then Landlord shall pay all reasonable costs, expenses and attorneys’ fees incurred or paid by Tenant in connection with such litigation.

ARTICLE 22
COMPLIANCE WITH LAWS

 

Tenant shall operate the Premises and its business respectively in compliance with all applicable federal, state, and municipal laws, ordinances and regulations, including the payment 

 

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of all taxes owing as a result of Tenant’s business, and shall not directly or indirectly, make any use of the Premises or Property which is prohibited by any such laws, ordinances or regulations.

ARTICLE 23
CERTAIN RIGHTS RESERVED BY LANDLORD

 

Landlord shall have the following rights, exercisable without notice and without liability to Tenant for damage or injury to property, person or business and without effecting an eviction, constructive or actual, or disturbance of Tenant’s use or possession or giving rise to any claim for setoff or abatement of Rent:

(a)To designate and approve, prior to installation, all types of window shades, blinds, drapes, and other similar equipment, and to control all internal lighting that may be visible from the exterior of the Building.

(b)On reasonable prior notice to Tenant, to show the Premises to (i) prospective tenants at reasonable hours during the last twelve (12) months of the Term and, if vacated during such period to decorate, remodel, repair or otherwise prepare the Premises for re-occupancy without affecting Tenant’s obligation to pay Rent, and (ii) others having a legitimate interest at any time during the Term of this Lease.

(c)To retain at all times, and to use in appropriate instances, keys to all doors within and into the Premises.  No locks shall be changed without the prior written consent of Landlord(d) To decorate or to make repairs and/or replacement of windows, Building facade or any components of the Building envelope or other Building systems (in Landlord’s sole discretion) or any other repairs, alterations, additions, or improvements, whether structural or otherwise, in and about the Building or Property, or any part thereof, and for such purposes to enter upon the Premises and, during the continuance of any of said work, to temporarily close doors, entryways, public space and corridors in the Building and to interrupt or temporarily suspend Building services and facilities, all without abatement of Rent or affecting any of Tenant’s obligations hereunder, so long as the Premises are reasonably accessible.

(d)To have and retain a paramount title to the Premises free and clear of any act of Tenant purporting to burden or encumber it.

(e)To have access to the Premises, with its agents and contractors, for the purpose of reading, maintaining, servicing, installing or replacing the Building’s water meter(s), deduct meter(s) and Building services, such as sprinkler system(s).

(f)To have access to the Premises, with its agents and contractors, for the purpose of accessing, repairing and maintaining the Building’s roof access points.

Landlord may enter upon the Premises and may exercise any or all of the foregoing rights hereby reserved without being deemed guilty of an eviction or disturbance of Tenant’s use or possession and without being liable in any manner to Tenant.

 

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ARTICLE 24
ESTOPPEL

 

Tenant agrees that from time to time upon not less than ten (10) days prior request by Landlord, Tenant or Tenant’s duly authorized representative having knowledge of the following facts shall deliver to Landlord a statement in writing certifying (a) that this Lease is unmodified and in full force and effect (or if there have been modifications that the Lease as modified is in full force and effect); (b) the dates to which the Base Rent and Additional Rent have been paid; (c) that neither Landlord, to the best of Tenant’s knowledge, nor Tenant is in default under any provision of this Lease, or, if in default, the nature thereof in detail; (d) that there are no offsets or defenses to the payment of Base Rent, Additional Rent or any other sums payable under this Lease or, if there are any such offsets or defenses, specifying such in detail; and (e) such further matters as are reasonably set forth on the form of estoppel certificate, or as may be reasonably requested by Landlord.

ARTICLE 25
RULES AND REGULATIONS

 

Tenant agrees to observe the reservations to Landlord in Article 23 hereof and agrees, for itself, its employees, agents, servants, clients, customers, invitees, licensees and guests to observe and comply at all times with the rules and regulations set forth on Exhibit C and such other rules and regulations as Landlord may from time-to-time make for the Premises or the Building, provided that such modifications and additions do not materially adversely affect Tenant’s rights hereunder and that failure to observe and comply with such reservations, rules and regulations shall constitute a default under this Lease.

Landlord reserves the right to make such reasonable rules and regulations as in Landlord’s judgment may from time to time be desirable for the safety, care, cleanliness and good operation of the Building and Premises and for the preservation of good order therein.  Landlord shall not be liable to Tenant for violation of any such rules and regulations, or terms, covenants and conditions by any other tenant, its employees, agents, invitees, or by any other person.

ARTICLE 26 
INTENTIONALLY DELETED

 

ARTICLE 27 
ASSIGNMENT AND SUBLETTING

 

Tenant shall not, without the prior written consent of Landlord, (i) assign, convey, mortgage, pledge or otherwise transfer this Lease, or any part thereof, or any interest hereunder; (ii) permit any assignment of this Lease, or any part thereof, by operation of law; (iii) sublet the Premises or any part thereof; or (iv) permit the use of the Premises, or any part thereof, by any parties other than Tenant, its agents and employees.  Tenant shall, by notice in writing, advise Landlord of its intention from, on and after a stated date (which shall not be less than thirty (30) days after date of Tenant’s notice), to assign this Lease, or any part thereof, or to sublet any part or all of the Premises for the balance or any part of the Term.  Tenant’s notice shall include all of the terms of the proposed assignment or sublease (whether contained in such assignment or 

 

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sublease or in separate agreements) and shall state the consideration therefor.  Tenant’s notice shall state the name and address of the proposed assignee or subtenant and a true and complete and fully-executed copy of the proposed assignment or sublease and any and all other agreements relating thereto shall be delivered to Landlord with Tenant’s notice.  Tenant shall pay all of Landlord’s costs and expenses, including reasonable attorney fees, related to evaluating any such request.

In the event that Tenant desires to sublease the entire Premises for the remainder of the Term, Landlord shall have the right, by giving written notice to Tenant within thirty (30) days after receipt of Tenant’s notice, to recapture the Premises and such recapture notice shall, if given, cancel and terminate this Lease with respect to the space therein described as of the date stated in Tenant’s notice.

If Tenant’s notice shall cover all of the Premises, and Landlord shall have exercised its foregoing recapture right, the Term of this Lease shall expire and end on the date stated in Tenant’s notice as fully and completely as if that date had been herein definitely fixed for the expiration of the Term.  If Landlord, upon receiving Tenant’s notice with respect to any such space, shall not exercise its right to recapture as aforesaid, and if Tenant is not in default under the terms of this Lease, Landlord will not unreasonably withhold its consent to Tenant’s assignment of the Lease or subletting such space to the party identified in Tenant’s notice, provided, however, that in the event Landlord consents to any such assignment or subletting, and as a condition thereto, Tenant shall pay to Landlord fifty percent (50%) of all profit derived by Tenant from such assignment or subletting.  For purposes of the foregoing, profit shall be deemed to include, but shall not be limited to, the amount paid or payable to Tenant to effect or to induce Tenant to enter into any such transaction, and the amount of all rent and other consideration of whatever nature payable by such assignee or sublessee in excess of the Base Rent and Additional Rent payable by Tenant under this Lease.  If a part of the consideration for such assignment or subletting shall be payable other than in cash, the payment to Landlord of its share of such non-cash consideration shall be in such form as is satisfactory to Landlord.  Tenant agrees that the withholding by Landlord of its consent to a proposed assignment or sublease will not be deemed “unreasonable” if, among other reasonable criteria to be examined by Landlord:

(a)the proposed subtenant or assignee is not creditworthy and financially responsible 

(b)the proposed subtenant or assignee does not, in Landlord’s discretion, have a good business reputation;

(c)the intended use of the Premises by the proposed subtenant or assignee is different from the permitted use stated in Article 4;

(d)the managerial and operational skills of the proposed subtenant or assignee are not as good as those of Tenant;

(e)the proposed subtenant or assignee is a tenant in the Building or an entity with which Landlord or its agents are in discussions regarding a possible tenancy; or

(f)Tenant is or has been in default under the Lease.

 

22

 

Notwithstanding anything contained herein to the contrary, an action for declaratory judgment or specific performance shall be Tenant’s sole right and remedy in any dispute as to whether Landlord unreasonably withheld its consent to any proposed assignment or sublease and Tenant shall not be entitled to recover (and hereby waives) any damages from Landlord if Landlord is adjudicated to have unreasonably withheld such consent.

Tenant shall and hereby agrees that it will furnish to Landlord upon request from Landlord a complete statement, certified by an independent certified public accountant, setting forth in detail the computation of all profit derived and to be derived from such assignment or subletting, such computation to be made in accordance with generally accepted accounting principles.  Tenant agrees that Landlord or its authorized representatives shall be given access at all reasonable times to the books, records and papers of Tenant relating to any such assignment or subletting, and Landlord shall have the right to make copies thereof.  The percentage of Tenant’s profit due Landlord hereunder shall be paid to Landlord within five (5) days of receipt by Tenant of all payments made from time to time by such assignee or sublessee to Tenant.

For purposes of the foregoing, any change in the partners of Tenant, if Tenant is a partnership, or, if Tenant is a corporation or limited liability company, any transfer of any or all of the shares of stock or membership interests of Tenant by sale, assignment, operation of law or otherwise resulting in a change in the present control of such corporation or limited liability company by the person or persons owning a majority of such shares or membership interests as of the date of this Lease, shall be deemed to be an assignment within the meaning of this Article 27.

Any subletting or assignment hereunder shall not release or discharge Tenant or any guarantor(s) of or from any liability, whether past, present or future, under this Lease, and Tenant and guarantor(s) shall continue fully liable thereunder.  Any subtenant or assignee shall agree in a form satisfactory to Landlord to comply with and be bound by all of the terms, covenants, conditions, provisions and agreements of this Lease to the extent of the space sublet or assigned, and Tenant shall deliver to Landlord promptly after execution, an executed copy of each such sublease or assignment and an agreement of compliance by each such subtenant or assignee.  Tenant agrees to pay to Landlord, on demand, all reasonable costs incurred by Landlord (including fees paid to consultants and attorneys) in connection with any request by Tenant for Landlord to consent to any assignment or subletting by Tenant.  Any sale, assignment, mortgage, transfer, or subletting of this Lease which is not in compliance with the provisions of this Article shall be of no effect and void.

Notwithstanding anything to the contrary contained herein, Landlord may withhold consent to a sublease or assignment unless Landlord is provided with waivers from any brokers involved in such subleasing or assignment of all lien rights of any such brokers under Wisconsin law.  Landlord also may withhold consent to a sublease or assignment if the proposed assignee or sublessee or its business is subject to compliance with additional requirements of any law (including related regulations) beyond those requirements which are applicable to Tenant on or prior to the said assignment or sublease unless the proposed assignee or sublessee shall:

(a)first deliver plans and specifications for complying with such additional requirements and obtain Landlord’s consent thereto, and

 

23

 

(b)comply with all Landlord’s conditions therefor or contained in such consent, including without limitation, requirements for security to assure the lien free completion of the transaction.

ARTICLE 28
NOTICE

 

All notices, demands, approvals and consents which may or are required to be given by one party to the other under this Lease shall be in writing and shall be delivered personally or by a nationally-recognized air courier service or mailed by United States certified or registered mail, postage prepaid, (a) if for Tenant, addressed to Tenant at the Premises, with copies to:

Ursa Major Corporation

6925 South 6th Street, Suite 1 00

Oak Creek, WI 53154

Attention:  ____________________

or at such other place as Tenant may from time to time designate by notice to Landlord, or (b) if for Landlord, addressed to:

Ursa Oak Creek LLC

Attention:  Mr. John Lampsa

245 Legend Heights

Wales, WI 53183

With copies to:

SBR Law Group LLC

675 N. Barker Road, Suite 300

Brookfield, WI 53045

Attention:  Susan C. Sorrentino

or at such other place as Landlord may from time to time designate by notice to Tenant.  Notices shall be deemed given (i) if mailed, three (3) days after posting in the United States mails in accordance with the provisions of this Article 28, (ii) if hand delivered, upon receipt of delivery, and (iii) if delivered by a nationally recognized overnight air courier services, one (1) business day after delivery to such service.

ARTICLE 29 
OPTION TO PURCHASE

 

Subject to the terms and conditions set forth herein, Tenant shall have the right to purchase all of the Landlord’s interest in the Property (“Option to Purchase”).  Tenant may exercise the Option to Purchase by giving Landlord written notice of Tenant’s intent to exercise during the time period commencing October 1, 2024 through November 30, 2024 (“Exercise Date”) and the Closing shall be held between the dates of December 1, 2024 through January 31, 2025; provided, however, this Lease shall not have been terminated and Tenant is not in default of this Lease at the time the option to purchase is exercised through the date of Closing.  Tenant’s Option to Purchase shall terminate upon termination of this Lease.  The Closing shall take place at a time and place mutually agreed by Landlord and Tenant.

 

24

 

The purchase price shall be the fair market value as determined by the parties, or if the parties fail to agree on the fair market value of the Property, the purchase price shall be the greater of (a) Four Million, Two Hundred Fifty Thousand Dollars ($4,250,000) or (b) the fair market value as determined by the following appraisal process.

Appraisal Process.  Each party shall select an experienced, qualified Member of the Appraisal Institute (“MAI”) appraiser specializing in commercial properties in the metropolitan area in which the Property is located to determine the fair market value of the Property and each party shall advise the other party in writing of the appraiser selected.  The two appraisers so appointed shall be instructed to each prepare a written appraisal which will show the fair market value of the Property.  Each appraiser shall then notify both parties, simultaneously and in writing, of their determination within 30 days or such other date as the parties shall agree.  Provided that if the difference of the two appraisals is less than or equal to ten percent (10%), then the arithmetic average of the two appraisals shall be the fair market value for the Property and such determination shall be conclusive and binding upon the parties.

If the difference between the two appraisals is more than ten percent (10%), then within ten (10) days after the date that the parties are notified of such appraisals, the two appraisers previously retained shall jointly appoint a third similarly qualified and experienced MAI appraiser and shall advise the parties in writing of the name of said appraiser.  If such two appraisers are unable to agree upon the appointment of a third appraiser within such ten (10) day period, they will give written notice of such failure to agree to the parties, and thereafter, if the parties fail to agree upon the selection of a third appraiser within ten (10) additional days after they are so advised, then either party may make application to the then acting senior judge of the circuit court for the county in which the Property is located to designate or appoint such third appraiser.

The third appraiser shall then be instructed as the initial two appraisers were previously instructed to prepare an appraisal showing the fair market value for the Property.  The third appraiser shall notify both parties, simultaneously and in writing of its determination as described herein within thirty (30) days after his appointment, and his appraisal shall be final.  The cost of all appraisals shall be paid by Tenant.  The time for closing shall be extended as necessary to complete such appraisals.  In no event shall Landlord be required to sell the Property for less than $4,250,000.

This Option to Purchase shall automatically terminate upon the earlier of (i) the date that notice of termination of this Lease is given; or (ii) the deadline for Tenant to exercise the option pursuant to each Exercise Date.

(a)Title Evidence.  Within thirty (30) days after the Exercise Date, Landlord shall at Landlord’s cost deliver or cause to be delivered to Tenant a current written commitment from a title company determined by Landlord in its reasonable discretion (the “Title Company”) for issuance at Closing of an ALTA owner’s policy of title insurance covering the Property in the amount of the Purchase Price (the “Title Commitment”), together with copies of all exception documents referenced therein.  The final Title Policy issued pursuant to the Title Commitment shall show title to the property as of the date of 

 

25

 

closing to be subject only to the following:  (i) municipal and zoning ordinances and agreements entered under them, (ii) recorded easements for utility and municipal services, (iii) recorded building and use restrictions and covenants, (iv) general taxes levied in the year of closing, not yet due and payable; and (v) title matters acceptable to Tenant (collectively, the “Permitted Exceptions”).  Tenant shall have ten (10) days after receipt of the Title Commitment to object in writing to any condition of title that is not a Permitted Exception under this agreement.  Tenant’s failure to so object shall constitute a waiver of any objections.  Matters specifically stated in the Title Commitment and not objected to by Tenant shall become Permitted Exceptions.  If any objection is made, Landlord shall have until Closing to correct the condition.  If the condition of title is not or cannot be corrected using Landlord’s reasonable efforts on or prior to Closing, Tenant may, at its option, either (i) declare Tenant’s election to purchase null and void, with this Lease continuing in full force and effect, or (ii) proceed to Closing.

(b)Closing.

(i)Landlord’s Closing Obligations.  At Closing, Landlord shall execute and deliver (in a form reasonably acceptable to Tenant and the Title Company, if applicable):

	
 
	
a.
	
A Special Warranty Deed conveying the Property to Tenant free and clear of all liens and encumbrances except for the Permitted Exceptions;

	
 
	
b.
	
The Title Company’s standard Owner’s Affidavit as to liens and possession with respect to the Property and GAP endorsement, if applicable;

	
 
	
c.
	
A closing statement for purchase and sale of the Property as the case may be (the “Closing Statement”);

	
 
	
d.
	
A corporate resolution authorizing said transaction; and

	
 
	
e.
	
Such other documentation as Tenant may reasonably request to enable Tenant to consummate the transaction contemplated in this agreement, provided that no such additional documentation imposes any cost or obligation on Landlord not otherwise expressly imposed on Landlord under this agreement, and any other documentation as may be required by law or by the Title Company, if applicable.

(ii)Tenant’s Closing Obligations.  At Closing, Tenant shall deliver, in immediately available funds, an amount equal to the purchase price net of all closing proration’s, adjustments and credits.  In addition, at Closing Tenant shall execute and deliver (in a form reasonably acceptable to Landlord and the Title Company, if applicable):

	
 
	
a.
	
A counterpart of the Closing Statement;

	
 
	
b.
	
A corporate resolution authorizing said transaction; and;

 

26

 

	
 
		

	
 
	
c.
	
Such other documentation as Landlord may reasonably request to enable Landlord to consummate the transaction contemplated in this agreement; provided that no such additional documentation imposes any cost or obligation on Tenant not otherwise expressly imposed on Tenant under this agreement and any other documentation as may be required by law or the Title Company, if applicable;

(c)Fees.  If applicable, Tenant shall pay all costs charged by the Title Company for closing the transaction contemplated in this Agreement.

(d)Real Estate Transfer Fees.  At Closing, Tenant shall pay all real estate transfer fees/tax stamps associated with the conveyance of the Property that may be required by Wisconsin Laws, if applicable.

(e)Recording Fees.  At Closing, Tenant shall pay all recording fees in connection with the purchase and sale of the Property, and Tenant shall pay the recording fees for documents that are required to be recorded in order for title to the Property to be in the condition required under this agreement, if applicable.

(f)Additional Documents.  Without limiting any other provisions in this agreement, at Closing, Tenant and Landlord shall execute documents normally executed by Tenant and Landlord for a real estate transfer in the State of Wisconsin.

(g)Failure to Close.  Should Tenant’s purchase of the Property under the Option to Purchase fail to close for any reason, Tenant shall reimburse Landlord for any and all costs (i.e., travel expenses, reasonable attorney’s fees, title company expenses, loan fees, etc.) associated with Landlord’s good faith effort to close the transaction and Tenant’s Option to Purchase shall automatically terminate.

In addition, Landlord agrees that if, during the term of this Lease and prior to the Exercise Date referenced above, Landlord intends to list the Property for sale with a real estate broker, Landlord will notify Tenant of Landlord’s intention to list the Property for sale and Landlord will postpone/delay the commencement of the listing agreement for 30 days to allow Tenant to submit an offer to purchase the Property (or waive the right to submit an offer to purchase, as applicable) during such 30-day period.

ARTICLE 30
CONVEYANCE BY LANDLORD

 

In case Landlord or any successor owner of the Property or the Building shall convey or otherwise dispose of any portion thereof to another person, such other person shall in its own name thereupon be and become Landlord hereunder and shall assume fully in writing and be liable upon all liabilities and obligations of this Lease to be performed by Landlord which first arise after the date of conveyance, and such original Landlord or successor owner shall, from and after the date of conveyance, be free of all liabilities and obligations not then incurred.

 

27

 

ARTICLE 31 
SUBORDINATION OF LEASE

 

The rights of Tenant under this Lease shall be and are subject and subordinate at all times to the lien of any mortgages now or hereafter in force against the Property or the Building, or all of them, and to all advances made or hereafter to be made upon the security thereof, and to all renewals, modifications, amendments, consolidations, replacements and extensions thereof.  This Article is self-operative, and no further instrument of subordination shall be required.  Any mortgagee may, however, elect to have this Lease be superior to its mortgage.  At Landlord’s request, Tenant shall execute a document in recordable form confirming that this Lease is subordinate (or at the mortgagee’s or beneficiary’s election, superior) to any mortgage or deed of trust.  Tenant, at the option of any mortgagee, agrees to attorn to such mortgagee in the event of a foreclosure sale or deed in lieu thereof.

ARTICLE 32 
MISCELLANEOUS

 

Landlord and Tenant further covenant with each other that:

(a)All rights and remedies of Landlord under this Lease shall be cumulative, and none shall exclude any other rights and remedies allowed by law.

(b)All payments becoming due under this Lease or under any work order or other agreement relating to the Premises shall be considered as Rent, and if unpaid when due shall bear interest from such date until paid at the rate of three percent (3%) per annum in excess of the prime rate of interest as published from time to time in The Wall Street Journal (unless a lesser rate shall then be the maximum rate permissible by law with respect thereto, in which event such lesser rate shall be charged).

(c)The word “Tenant” wherever used herein shall be construed to mean Tenants in all cases where there is more than one Tenant, and the necessary grammatical changes required to make the provisions hereof apply either to corporations or individuals, men or women, shall in all cases be assumed as though in each case fully expressed.

(d)Each of the provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit, not only of Landlord and of Tenant, but also of their respective heirs, legal representatives, successors and assigns, provided this clause shall not permit any assignment contrary to the provisions of Article 27 hereof.

(e)All of the representations and obligations of Landlord are contained herein, and no modification, waiver or amendment of this Lease or of any of its conditions or provisions shall be binding upon the Landlord unless in writing signed by Landlord.

(f)Submission of this instrument for examination shall not bind Landlord in any manner, and no lease or obligation on Landlord shall arise until this instrument is signed and delivered by Landlord and Tenant.

 

28

 

(g)No rights to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease.

(h)Sectional headings in this Lease are solely for convenience of reference and shall not in any way limit or amplify the terms and provisions hereof

(i)The laws of the State of Wisconsin shall govern the validity, performance and enforcement of this Lease.  The invalidity or unenforceability of any provision of this Lease shall not offset or impair any other provision.  If any provision of this Lease is capable of two constructions, one of which would render the provision invalid and the other of which would make the provision valid, then the provision shall have the meaning which renders it valid.

(j)Landlord’s title is and always shall be paramount to the title of Tenant.  Nothing herein contained shall empower Tenant to commit or engage in any act which can, shall or may encumber the title of Landlord.

(k)Neither this Lease, nor any memorandum, affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord’s election.

(l)Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venture or any association between Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of landlord and tenant.

(m)Landlord shall have the right to apply payments received from Tenant pursuant to this Lease (regardless of Tenant’s designation of such payments) to satisfy any obligations of Tenant hereunder, in such order and amounts, as Landlord in its sole discretion, may elect.

(n)All indemnities, covenants and agreements of Tenant contained herein which inure to the benefit of Landlord shall be construed to also inure to the benefit of Landlord’s partners, members, managers, officers, agents and employees.

(o)Within sixty (60) days of the end of each fiscal year of Tenant during the Term, Tenant shall deliver to Landlord the annual financial statements of Tenant for its most recent fiscal year and the personal financial statements of any guarantor(s).

 

29

 

(p)If Landlord fails to perform any of its obligations hereunder and such failure is due in whole or in part to any strike, lockout, labor trouble, civil disorder, failure of power, restrictive governmental laws and regulations, riots, insurrections, war, fuel shortages, accidents, casualties, acts of God, acts caused directly or indirectly by the other party (or its agents, employees, contractors, licensees or invitees) or any other cause beyond the reasonable control of Landlord, then Landlord shall not be deemed in default under this Lease as a result of such failure and the time for performance provided for herein shall be extended by the period of delay resulting from such cause.

(q)Landlord shall not be liable to Tenant or to Tenant’s agents, employees, guests or invitees for security at the Premises.  To the extent that Tenant procures a security system which is installed in the Premises, any such system shall be at Tenant’s sole cost and expense and Tenant shall provide Landlord with all security and pass codes (and any revisions to same).

(r)Landlord and Tenant each shall and hereby does waive trial by jury in any action, proceeding or counterclaim brought by Landlord against Tenant or by Tenant against Landlord on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises or any claim of injury or damage.

ARTICLE 33
EXCULPATION

 

Any obligation of Landlord, or its agent, under or with respect to this Lease or the Building shall be enforceable only against and payable out of Landlord’s interest in the Building and Property, and Tenant hereby agrees that neither Tenant nor any other person shall have or may assert any right, recourse or remedy to or against Landlord or its agent or any assets of Landlord, except to the extent (if any) of their respective interests in the Building and the Property; and no officer, shareholder, director, employee, partner, trustee or beneficiary of Landlord or its agent assumes or shall have any personal liability of any kind whatsoever hereunder.  In no event shall Landlord be liable for consequential or punitive damages with respect to this Lease.

ARTICLE 34
LATE PAYMENT

 

Tenant hereby acknowledges that late payment by Tenant to Landlord of Base Rent, Additional Rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact number of which will be extremely difficult to ascertain.  Such costs include, but are not limited to processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage covering the Premises.  Accordingly, if any installment of Base Rent, Additional Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after such amount shall be due, Tenant shall pay to Landlord a monthly late charge equal to ten percent (10%) of such overdue amount or the maximum allowed by Law, whichever is less.  The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.  Acceptance of such late charge by Landlord shall in no event constitute waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

 

30

 

ARTICLE 35
COVENANT OF QUIET ENJOYMENT

 

Landlord agrees that Tenant, on paying the Base Rent, Additional Rent and other charges and payments herein reserved and on keeping, observing and performing all of the other terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during the Term of this Lease, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, provisions and agreements hereof, free from hindrance by Landlord or any other person claiming by, through or under Landlord.

ARTICLE 36
OPTION TO RENEW

 

Landlord grants Tenant (but not to any successor or assign of Tenant) one (1) option to extend the Term of the Lease for one term of five (5) years (the “Extension Term”).  The Term and Extension Term, if properly exercised, shall be known as the Term.  This option to renew must be exercised by Tenant no sooner than twenty-four (24) months and no later than twelve (12) months prior to the Termination Date, by giving Landlord written notice thereof.  Time shall be of the essence with respect to the exercise of the option to extend hereunder, and, if not timely exercised by Tenant, Tenant shall have no right to extend the Term as set forth herein or otherwise.  Notwithstanding anything set forth herein, at Landlord’s sole discretion, Tenant’s election to extend the Term hereunder may not be effective if, on the date of such exercise or between said date and the Termination Date, there shall exist any default by Tenant or any event which, with notice or the passage of time or both, would constitute such a default.  The extension of the Term shall be subject to all terms and conditions of this Lease, except that the Base Rent shall be three percent (3%) greater than the final year of the Term and shall increase three percent (3%) each year of the Extension Term.  This Article 36 shall not be applicable to the Extension Term.  Article 29 shall not apply to, nor be operative, during the Extension Term.

ARTICLE 37
PARKING

 

Tenant shall have the right to use, in common with all other tenants of the Building, the parking area on the south side of the Building.  Such parking spaces shall be available to Tenant’s guests, customers and office employees on a first come, first serve basis.  No overnight parking shall be permitted on the south side of the Building.  Parking for all non-office employees and all service vehicles shall be on the north side of the Building.

ARTICLE 38
SIGNAGE

 

Tenant may erect and maintain, at Tenant’s sole cost, subject to Landlord’s placement, review and written approval, signage on Tenant’s front door and name placement on the Building’s existing monument sign.  Tenant may erect and maintain, at Tenant’s sole cost, subject to Landlord’s placement, review and written approval, “No Truck Parking” signs along the common driveway and directional signage at the rear of the Building.  Tenant will insure and maintain any 

 

31

 

sign in good condition, repair and operating order at all times, and will remove same at the end of the Lease Term.  If Tenant’s sign is damaged or inoperative, Tenant will commence to repair such sign within five (5) days after receipt of notice from Landlord.  Landlord, at Landlord’s option, may repair such sign at Tenant’s expense upon the failure of Tenant to commence such repairs timely.  Tenant will not place or maintain any decoration, lettering, or advertising matter, on the glass of any window or door of the Premises without first obtaining Landlord’s written consent.  All interior signs, decorations, displays or advertising of Tenant visible from the exterior of the Premises will be in good taste and will conform to the standards of design, motif, and decor established from time to time by Landlord for the Building, and shall conform to all applicable laws, rules and regulations.

[SIGNATURE PAGE TO FOLLOW]

 

32

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first set forth above.

 

	
LANDLORD:

	
 
	
 

	
Ursa Oak Creek LLC

	
 
	
 

	
By:
	
/s/ John Lampsa

	
 
	
John Lampsa

	
 
	
 

	
 
	
 

	
TENANT:

	
 
	
 

	
Ursa Major Corporation (dba Ursa Logistics)

	
 
	
 

	
By:
	
/s/ Damon Cuzick

	
 
	
 

	
Name:
	
Damon Cuzick

	
 
	
 

	
Its:
	
President

 

 

33

 

 

EXHIBIT A

 

PLAN OF PREMISES

 

 

34

 

 

EXHIBIT B

 

OUTDOOR SPACE

 

 

35

 

 

EXHIBIT C

 

RULES AND REGULATIONS

 

BUILDING RULES AND REGULATIONS

 

	
 
	
1.
	
The Property, including the Building and the Premises, is smoke free except for immediately north of the Building.  Tenants should provide acceptable butt receptacles near the north mandoor of their suite.  Tenants should inform employees and customers of this rule.

	
 
	
2.
	
Parking is limited to the marked stalls in the south parking lot.  Parking in the roadway is prohibited.  Overnight parking in the south parking lot is prohibited.

	
 
	
3.
	
Tenants and guests are asked to maintain slow speeds on the common roadway.

	
 
	
4.
	
Tenants are required to maintain clean interior windows.

	
 
	
5.
	
Tenants shall notify landlord as soon as possible, and in any event, within 24 hours, of any damage to common areas.

 

36evoa-ex10114_268.htm

Exhibit 10.114

 

LEASE AGREEMENT

 

THIS AGREEMENT AND LEASE, made and entered into this    30th   day of September, 2018, by and between ST Equity Properties, LLC whose address is 2849 Switzer Rd, Columbus, OH 43219, hereinafter called “Lessor” or “Landlord”, and Thunder Ridge Transport, Inc. whose address is 873 Wheat Ridge Road, West Union, Ohio 45693, hereinafter called “Lessee” or “Tenant”.

 

WITNESSETH In consideration of the rents and covenants herein contained, it is mutually agreed as follows:

 

	
PREMISES
	
 
	
Lessor does hereby lease, and Lessee does hereby lease from Lessor the following described premises to wit 3115 E. 17th Ave., Columbus, Ohio 43219 and 3122 Lamb Ave, Columbus, Ohio 43219 and hereinafter collectively referred to as “demised premises”, “premises”, or “leased premises”.

	
 
	
 
	
 

	
TERM
	
 
	
The term of this lease shall be for a period of forty-five months, commencing on the 1st day of October, 2018. Tenant will have one (1) option to renew the Lease Term for an additional four and a half years (54 months). Tenant will notify Landlord in writing ninety (90) days before the end of the initial term.

	
 
	
 
	
 

	
RENT
	
 
	
A. During the lease term, Lessee shall pay to the Lesser as rent the sum:

 

	
 
	
Term
	
Monthly
	
Annually

	
 
	
October 1, 2018 — June 30, 2022
	
$2,900.00 per month
	
$34,800.00

 

	
 
	
June 30, 2022 — December 31, 2026 *Optional Renewal*
	
$3,045.00 per month
	
$36,540.00 yearly

 

	
 
	
 
	
Rent is payable in advance on the first day of every calendar month of the term, at the office of Lessor may hereafter direct, all of which Lessee hereby covenants and agrees to pay without notice or demand. In the event Lessee shall fail to pay any rent or other moneys due thereunder within four (4) days after the same become due and payable, there shall be chargeable a late fee of Twenty-live Dollars ($25.00) per day until said amounts are paid in full. Rent is personally guaranteed by Lessee. Lessee is personally liable for any unpaid rent through the term of the Lease.

	
 
	
 
	
 

	
 
	
 
	
B. Lessee shall pay before delinquency any and all taxes and assessments, and license, sales, business, occupation or other taxes, fees or charges levied, assessed or imposed upon its business operations in the Premises.

 

 

	
 
	
 
	
 

	
 
	
 
	
C. Lessee shall pay before delinquency any and all taxes and assessments levied, assessed or imposed upon its trade fixtures, leasehold improvements, merchandise and other personal property in, on or upon the Premises. In the event that Lessee fails to make any such payments, Lessor, at its option, may make such payments and Lessee agrees to reimburse Lessor for any amounts so advanced plus costs and interest.

	
 
	
 
	
 

	
 
	
 
	
D. In the event any taxes, fees or charges referred to in the preceding Paragraph B and/or Paragraph C shall be assessed, levied or imposed upon or with the business or property of Lessor, such assessment, fees or charges shall be paid by Lessee upon Lessor’s demand for such payment.

	
 
	
 
	
 

	
 
	
 
	
E. Any and all such amounts as may be due from Lessee to Lessor pursuant to this Section will be deemed to rental due and failure to make such payments shall constitute non-payment of rent.

	
 
	
 
	
 

	
 
	
 
	
F. Any payment by Lessee or acceptance by Lessor of a lesser amount than shall be due from Lessee to Lessor shall be treated as a payment on account. The acceptance by Lessor of a payment for a lesser amount with an endorsement or statement thereon, or upon any letter accompanying such check, that such lesser amount is payment in full, shall be given no effect, and Lessor may accept such check without prejudice to any other rights or remedies which Lessor may have against Lessee.

	
 
	
 
	
 

	
PARKING
	
 
	
Lessor agrees to provide Lessee with the right to use, in common with others, the parking areas located adjacent to the Premises, unless a 24-hour notice is given by Lessor.

	
 
	
 
	
 

	
UTILITIES
	
 
	
Lessee shall pay all utilities. Lessee shall get all utilities put in Lessee’s name. This includes gas, electric, phone, data, janitorial services, etc.

	
 
	
 
	
 

	
USE
	
 
	
Lessee shall use the Premises for logistics services.

	
 
	
 
	
 

	
PERMIT CONTINGENCY
	
 
	
Lessee covenants to apply for all governmental permits, licenses, and approvals (collectively, the “Approvals”) no later than sixty (60) days after the date of the Lease, and thereafter to diligently and in good faith pursue obtaining the Approvals no later than ninety (90) days after the date of the Lease (the “Permitting Period”). If the Approvals have not been obtained by Lessee within the Permitting Period, then Lessee may terminate the Lease.

 

2

 

	
 
	
 
	
 

	
SERVICES BY LESSOR
	
 
	
Lessor shall maintain the roof and exterior walls of the premises in good repair except for reasonable wear and tear and except for such repairs as may be required by reason of the acts of Lessee or its agents or invitees (either directly or indirectly): Lessor further agrees to maintain the exterior walls of the leased premises (but not the exterior doors and windows thereon) in good repair, except for those repairs as may be required by reason of Lessee or its agents or invitees (either directly or indirectly); Lessee agrees to give Lessor and any mortgagees of Lessor as specified by Lessor, written notice of the necessity for repairs or required maintenance to the leased premises. Failure to so notify Lessor will entitle Lessor to recover from Lessee any damage done or liability incurred as a result of such need for repairs and/or maintenance.

	
 
	
 
	
 

	
SPACE IMPROVEMENTS
	
 
	
Lessor, at its sole cost and expense, shall complete the following space improvements consistent with the Lessee’s site needs:

	
 
	
 
	
 

	
 
	
 
	
•          All lighting on the site/buildings including security lighting on poles to be in good working order including all light bulbs.

•          All building interiors to be cleaned. This includes restrooms and floors.

•          Repair and/all broken windows

•          Bathroom in building #1 and #2 to be in good working order. The bathroom in building #3 to be winterized as it will not be used by Lessee. Building #3 may not be heated by Lessee but healing source be in good working order should Lessee want to use it.

•          Magnetic sweep the lot to remove nails.

•          All HVAC systems and and/all other mechanicals in good working order

•          Fence to be repaired where falling.

	
 
	
 
	
 

	
REPAIRS

 
	
 
	
Lessee shall keep, maintain and make replacements to the interior of the leased premises in order to keep and maintain the interior of the leased premises, including, but not limited to ventilation, plumbing and sewer systems, electrical and healing and air conditioning fixtures located within the leased premises, in good condition and repair. In the event Lessee refuses or neglects to commence or complete repairs promptly and adequately, Lessor may make or complete said repairs and lessee shall pay the cost thereof to Lessor on demand. Any such amounts shall be deemed to be part of the next rental payment and failure to include such amounts in the next rental payment shall be tantamount to nonpayment of rent. Lessee shall comply with the directions of proper public officers as to the maintenance of the leased premises and shall comply with all health and police regulations applicable to or affecting the interior of the leased premises.

 

The plumbing facilities shall not be used for any other purpose than for which they are constructed and no foreign substance of any kind shall be thrown therein. The expense of any breakage, stoppage, or damage resulting from a violation of this provision by Lessee, its employees, agents, customers, invitees, subtenants, or licensees shall be paid by Lessee.

 

In the event Lessee refuses or neglects to commence or complete repairs promptly and adequately, Lessor may make or complete said repairs and Lessee shall pay the cost thereof to Lessor on demand.

 

Lessor agrees to maintain exterior doors and windows in good repair, so long as damage is not caused directly by Lessee. Lessor shall maintain the roof and exterior walls of the Premises in good repair except for the reasonable wear and tear, and except for such repairs as may be required by reason of the acts of Lessee or its agents (directly or indirectly)

 

 

3

 

	
ALTERATIONS
	
 
	
Tenant, at its sole cost and expense, may complete the following space improvements:

	
 
	
 
	
 

	
 
	
 
	
•          Install electric security gates

•          Install security systems and cameras

•          Install 15-25-4’ high electric posts to allow trucks to plug in

	
 
	
 
	
 

	
 
	
 
	
No other alteration, addition, improvement, or other change in or to the Premises, (hereinafter collectively called an “alteration”) shall be made by Tenant except under the following circumstances:

	
 
	
 
	
 

	
 
	
 
	
A. No alteration shall be commenced without first obtaining the written consent of Landlord to the specific alteration and the proposed contractor.

 

B. No alteration shall be commenced until Tenant has first obtained and paid for all required permits and authorizations of all governmental authorities having jurisdiction over the premises.

 

C. Any alteration shall be made promptly and in good workmanlike manner and in compliance with all applicable permits, authorizations, building and zoning laws, and all other laws; ordinances, regulations, and requirements of all governmental authorities and in accordance with the requirements of the National Board of Fire Underwriters and other bodies hereafter exercising similar functions.

 

D. The cost of any such alterations shall be paid by Tenant in cash or its equivalent, so that the Premises, the building, and the Mall shall at all times be free of liens and claims for work, labor, or materials supplied or claimed to have been supplied to the Premises and, if Landlord at any time so requests, no alteration shall commence or proceed unless Tenant gives evidence satisfactory to Landlord that the alteration will be paid for upon completion and that appropriate lien waivers will be received.

 

E. Any alteration shall immediately become and remain the property of Landlord. Landlord waives their rights to written consent of the initial alteration to be completed in accordance with the initial plans of Tenant.

 

F. Landlord hereby reserves the right at any time and from time to time, to make alterations or additions to the building in which the Premises are located and to build adjoining the same, and to reduce, increase, alter or rearrange any parking areas adjacent hereto. Tenant accepts the Premises in an “as is” condition and acknowledges that Landlord has made no warranty or representations with respect to the condition or suitability thereof.

 

G. Tenant shall promptly pay all contractors and materialmen, so as to minimize the possibility of a lien attaching to the Premises, and should any lien be made or filed, Tenant shall bond against or discharge the same within ten (10) days after written request by Landlord. Nothing in this Lease shall be construed as a consent on the part of Landlord to subject the Landlord’s estate in the Premises to any lien or liability under the lien laws of the State of Ohio.

 

4

 

	
 
	
 
	
 

	
SIGNS AND FIXTURES
	
 
	
SIGNS. Tenant, at its sole cost and expense, shall have the opportunity to place signage on the building it they choose so. All sign age shall be approved by Landlord prior to installation, and shall comply with all local ordinances and permitting. Otherwise, Tenant shall not place, suffer or erect signs, awnings, canopies, advertising matter, decoration or lettering on the interior or exterior of any door, window, marquee, roof or walls of the demised premises without the written approval of Landlord. Tenant shall submit to Landlord for approval drawings showing all proposed sign work to be erected in connection with Tenant’s Premises. When so approved, such sign shall contain the name and business of Tenant and Tenant agrees to maintain such sign in good condition and repair, as well as to save and defend Landlord free of all cost, expense, loss or damage which may result from the erection, maintenance, existence or removal of the same. Upon vacating the Premises, Tenant agrees to remove all such signs and to repair all damage caused or resulting from such removal.

 

FIXTURES. At Tenant’s own expense, Tenant may supply and install in the Premises furnishings, equipment and fixtures relating to Tenant’s use of the Premises. Subject to the provisions herein, such furnishings, equipment and fixtures shall remain the property of Tenant provided that, upon termination of this Lease for any reason, Tenant shall remove same (unless this requirement is specifically waived by Landlord in writing or such removal will prevent restoration of the Premises to their original condition), repair any damage to the Premises caused by such installations or their removal, and restore the Premises to the same condition as they were in before any such installations were made.

 

LANDLORD’S LIEN. If Tenant fails to remove all its equipment, furniture, fixtures or property from the Premises at the termination of this Lease, then Landlord may at its option remove all or part of such property in any manner that Landlord may choose and store same without liability to Tenant for loss or damage thereof, and Tenant shall be liable to Landlord for all expenses incurred in such removal and storage. All fixtures or property of Tenant located on the Premises at the termination of this Lease (by default or otherwise) shall secure the payment of any and all amounts due and owing to Landlord upon termination of this Lease. Landlord may, at their option, and after proper notice to Tenant as provided for herein, sell such property at private or public sale for such price as they may deem best and apply the proceeds of any such sale first

to the costs and expenses of the removal, storage and sale of the property, second to the repair of the Premises to their condition prior to the commencement of this Lease (ordinary wear and tear excepted), and third to the payment of any and all amounts due and owing to Landlord from Tenant under this Lease. The balance, if any, of personal property not removed from the Premises within two (2) days after termination of this Lease shall thereupon be conclusively presumed to have been abandoned by Tenant and forthwith become Landlord’s property.

 

 

5

 

	
LIABILITY
	
 
	
Lessor shall not be liable for any damage done or occasioned by or from the electrical system, the heating or air conditioning system, the plumbing and sewer systems in, upon or about the leased premises or the building of which the leased premises form a part, nor for damages occasioned by water, snow or ice being upon or coming through the roof, walls, window, co-tenants or other occupants of the building or buildings of which the leased premises form a part, or the acts of any owners or occupants of adjoining or contiguous property, and furthermore, Lessor shall not be liable for any other damage occasioned by reason of the construction of the leased premises or for failure to keep the leased premises in repair, unless notice for the need for repairs has been given to Lessor and a reasonable time has elapsed and Lessor has failed to make such repairs.

 

Further, Lessor shall not be liable for any damage to Lessee’s leasehold improvements, fixtures, business operations or merchandise regardless of the cause thereof, it being the intent of the parties hereto that Lessee shall fully and adequately insure against such loss.

 

Lessee will be liable for any city/state code violations caused by Lessee. This includes but is not limited to grease traps, maximum seating, and fire prevention.

 

 

6

 

	
GRASS
	
 
	
Lessee agrees to cut grass regularly, weed the Premises regularly, and keep landscaping of Premises in reasonable condition.

 

	
USE AND CARE OF LEASED
	
 
	
(I) Lessee shall use and occupy the leased promises in a careful, safe and proper Manner and shall keep the leased premises in a clean and safe condition, all in accordance with local ordinances and lawful direction of proper public officers.

(II) Lessee shall not use or allow the leased premises to be used for any purpose other than Office Space. Specifically, Lessee shall not use or allow the leased premises to be used in such a manner as to cause a breach of Lessor’s duty pursuant to any other lease agreements and to indemnify Lessor in the event that it fails to comply with this provision.

(III) Lessee agrees that it will not do or permit anything in, upon or about the leased premises which will contravene Lessor’s insurance policies or which will prevent Lessor from procuring such policies from companies acceptable to Lessor: and if anything done, omitted to be done or permitted to be done by Lessee, in, upon, or about the leased premises shall cause the rate of fire or other insurance on the leased premises to be increased beyond the minimum rate, from time to time, applicable to the leased premises for use for the purposes permitted under this Lease, Lessee shall forthwith pay the amount of such increase upon demand by Lessor.

(IV) Lessee shall promptly comply with all laws, ordinances and regulations affecting the leased premises or Lessee’s business therein, plus insurance company requirements affecting the cleanliness, safety, use, and occupation of the leased premises.

 

	
INSURANCE
	
 
	
Lessee agrees to carry at its own expense, throughout the term of this Lease, public liability insurance covering the leased premises and Lessee’s use thereof, in companies and in a form satisfactory to Lessor, with minimums of $500,000 on account of bodily injuries to or death of any one person, and $1,000,000 on account of bodily injuries to or death of more than one person as a result of any one accident or disaster, and with $100,000 coverage for property damage in any one accident, and to deposit said policy or policies (or certificates thereof) with Lessor prior to the date of occupancy by Lessee. Said policies shall name and protect Lessor and Lessee as their respective interests may appear. Lessee further agrees to carry casualty insurance with extended coverage endorsements on its fixtures, equipment and merchandise for the full insurable value thereof. Proceeds from any such policy or policies for damage to the building shall be payable to Lessor, who shall use such proceeds to make repairs.

 

 

7

 

	
LOSS OR DAMAGE TO PERSONAL PROPERTY
	
 
	
All personal property of the Lessee located in or about the building or demised premises shall be there at the sole risk of Lessee, and Lessor shall not be liable for any damage done to or loss of such personal property.

 

	
PERSONAL PROPERTY TAX
	
 
	
Lessee shall be liable for taxes levied against personal property and trade fixtures placed by Lessee in, on or about the premises, and if any such taxes on Lessee’s property or trade fixtures are levied against Lessor’s property, and if Lessor pays these taxes, Lessee, upon demand, shall repay to Lessor the taxes so levied and paid by Lessor.

 

	
ASSIGNMENT OF LEASE
	
 
	
Lessee shall not assign, sublet, or otherwise encumber or dispose of all or any part of this lease without the prior written consent of Lessor.

 

	
INDEMNITY
	
 
	
The Lessee agrees to indemnify and save harmless the Lessor against and from all claims by or on behalf of any persons, firm or corporation arising out of Lessee’s use, occupancy, conduct or management of the premises or from any work or thing whatsoever done, directly or indirectly, by Lessee in or about the demised premises, or of any vaults, passageways or spaces therein appurtenant thereto which is created by or through the act or failure to act of Lessee, or any and all claims arising from any breach or default on the part of the Lessee in the performance of any covenant or agreement on the part of the Lessee to be performed, pursuant to the terms of this lease, or arising from any act of the Lessee, or any of its agents, contractors, servants, employees or Licensees or arising from any accident, injury or damage whatsoever caused other than by negligence of the Lessor, its agents, contractors, servants, employees or licensees, to any person, firm or corporation occurring in or about the demised premises, or upon any sidewalks and land adjacent thereto , and from and against all costs, counsel fees, expenses, liabilities. incurred in or about any such claim or action or proceeding brought thereon; and in case any action or proceeding be brought against Lessor by reason of any such claim, the Lessee, upon notice from Lessor, covenants to resist or defend such action or proceeding by counsel satisfactory to Lessor. Lessee further agrees to keep in force, during the term of this Lease, at Lessee’s expense, public liability insurance as set forth in this Lease.

 

 

8

 

	
BANKRUPTCY
	
 
	
If any voluntary or involuntary petition under any insolvency or bankruptcy act shall be filed by or against Lessee (and, if an involuntary petition it is not dismissed in thirty (30) days) or should Lessee make any assignment for the benefit of creditors, or should a receiver or trustee be appointed by any court for all or part of Lessee’s property then and in any such event, Lessor may, if it so elects, with or without notice of such election and with or without entry or other action, forth terminate this lease, and Lessor, in addition to any and all rights .and remedies allowed by law and equity shall upon termination be entitled to recover damages in an amount equal to the then present value of the rent reserved in this Lease for the entire residue of the stated term hereof less the fair rental value of the premises for the residue of the stated term hereof and neither Lessee nor any person claiming through Lessee or under Lessee or by virtue of arty statute or order of any court shall be entitled to possession of the demised premises but shall forthwith quit and surrender the demised premises to Lessor.

 

	
MECHANIC’S LIENS
	
 
	
If, because of any act or omission of Lessee or any tenant or subtenant of Lessee or anyone claiming through or under Lessee, any mechanic’s lien or other lien shall be filed against the demised premises or the building of Lessor, Lessee shall, at Lessee’s own cost and expense, cause the same to be canceled and discharged of record within sixty days after the date of filing thereof, and shall also indemnify and save harmless Lessor from and against any and all costs, expenses, claims, losses or damages, including reasonable attorney fees resulting therefrom or by reason thereof.

 

	
EMINENT DOMAIN
	
 
	
If the whole, or substantial part, of the premises hereby leased shall be taken by any public authority under the power of eminent domain, then the term of this Lease shall cease as of the day possession shall be taken by such public authority; and the rent shall be paid up to that day with a proportionate refund by Lessor of such rent as may have been paid in advance for a period subsequent to the date of the taking. All damages awarded for such taking under the power of eminent domain, whether for the whole or a part of the leased premises, shall belong to and be the property of Lessor whether such damages shall be awarded as compensation for diminution in value to the leasehold or to the fee of the premises and Lessee shall have no claims against either Lessor or the condemning authority with respect thereto; provided, however, that Lessor shall not be entitled to the award made for depreciation to, and cost of removal of, Lessee’s stock and fixtures.

 

Lessor agrees to inform Tenant of any discussions, which are not confidential or privileged, at to which Lessor is aware regarding Eminent Domain, upon request by the Lessee.

 

 

9

 

	
ABANDONMENT
	
 
	
Lessee shall not vacate or abandon the premises at any time during the term; and if Lessee shall abandon, vacate or surrender said premises, or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee and left on the premises shall be deemed to be abandoned, at the option of Lessor, except such property as may be mortgaged by Lessee. Failure of Lessee to occupy or use the leased premises for a period often (10) days or longer shall constitute abandonment by Lessee. Additionally, any of the following will create a conclusive presumption that Lessee has vacated and abandoned the leased property:

(1) failure of Lessee to keep, maintain and pay for all utility services; or

(2) failure of Lessee to return all keys at the end of this lease term, or; (3) failure of Lessee to remove all personal property from the premises at the end of this lease term.

Failure of Lessee to remove any and all personal property at the end of this lease term does not create any liability upon Lessor to safeguard, store, or in any other way protect said personal property, and further Lessee hereby waives any claim which he may have against Lessor in any way.

 

	
RE-ENTRY BY LESSOR
	
 
	
Lessee shall permit Lessor and its agents to enter said premises at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining and repairing the building in which the said premises are situated, without any rebate of rent to Lessee for any loss of occupation or quiet enjoyment of the premises thereby occasioned, with twenty-four hours’ notice. Lessor may at any time within ninety (90) days prior to the expiration of this lease enter said premises for the purpose of exhibiting the leased premises to prospective tenants.

 

	
LOSS OF USE
	
 
	
In the event that Tenant loses the use of the Premises, through no fault of its own, for ‘reasons such as fire, storms, and acts of God, for five (5) consecutive days or longer, Tenant’s rent shall be rebated pro rata until Tenant regains use of the Premises. If Tenant should lose use of the Premises for four (4) consecutive days or less, Tenant shall continue to be responsible for rent.

 

	
UNTENANTABILITY
	
 
	
If the Premises or the building are made unfit by the elements, fire or other cause, Landlord may elect to terminate this Lease as of the time when the Premises or buildings are made unfit for occupancy, by notice to Tenant within thirty (30) days after this date, or Landlord, at its option, may elect to repair, restore or rehabilitate the building or the Premises, at Landlord’s expense, within one hundred twenty (120) days after the later of (a) the date of Landlord’s election or (b) the date Landlord is able to take possession of the damaged areas and undertake reconstruction or repairs. In the event Landlord elects to repair, restore, or rehabilitate, this Lease shall not terminate but rent shall be abated on a per diem basis, pro-rata, for the portion of the Premises rendered unfit for occupancy. If Landlord so elects to repair, restore or rehabilitate the building or premises and does not substantially complete the work within said one hundred twenty (120) day period, excluding from said period loss of time caused by any delay beyond the control of Landlord, then either party may terminate this Lease as of the expiration of such period, by notice to the other party delivered not later than ten (10) days after expiration of said one hundred twenty day (120) period. In the event of termination of the Lease pursuant to this paragraph, rent shall be apportioned on a per diem basis and shall be paid to the date of termination.

 

 

10

 

	
DEFAULT
	
 
	
If Lessee defaults in the payment of rent or any additional charge or cost to be paid by Lessee as provided in this lease and if Lessee defaults in the prompt and full performance and observance of any of the terms and conditions of this lease, other than nonpayment of rent, and such default shall continue uncorrected for a period often (10) days after receipt of written notice thereof from Lessor, then, in addition to any other rights and remedies it may have, Lessor may, at its option, with or without further notice, void this lease and enter into possession of the demised premises and sue for and recover all the rent due, at the rate aforesaid, up to the time of such entry, without releasing the Lessee from liability for the rent for the unexpired term. In the event Lessor shall enter into possession of the demised premises after default, Lessor shall make every reasonable effort to rent the demised premises for the unexpired term on behalf of the Lessee, applying any moneys collected first to the reasonable expenses of resuming or obtaining possession, second to restoring the premises to a reasonable rentable condition and to all related costs or re-renting and then to the payment of rent. Lessee shall remain liable for any deficiency between such balance applicable to payment of rent and the rental provided in this Lease for the unexpired term.

 

	
HOLDOVER TENANCY
	
 
	
Should Tenant hold over the Premises, without Landlord permission, after termination of this Lease by lapse of time or otherwise, Tenant shall pay, as liquidated damages for each month of such holding over one and one-half (1 1/2) times the amount above stipulated as monthly rental unless Landlord and Tenant are negotiating in good faith a new Lease. No receipt of money by Landlord from Tenant after termination of this Lease shall reinstate or extend this Lease, or affect any prior notice given by Landlord to Tenant, and no extension of this Lease shall be valid unless in writing, signed by Landlord and Tenant In all respects other than the duration of the term, the provisions of this T ease shall govern the rights and liabilities of Landlord and Tenant during such hold-over tenancy.

 

 

11

 

	
SECURITY DEPOSIT
	
 
	
Lessee has paid to Lessor upon execution of this Lease the sum of $2,900.00 as security for the performance of Lessee’s obligations hereunder, including the payment of rentals. In the event of a default by Lessee, Lessor at its option may apply such part of the deposit as may be deemed necessary to cure the default, and if Lessor does so, Lessee shall upon demand redeposit with the Lessor an amount equal to that so applied so that Lessor will have the full security deposit or (had at all times during the term of this Lease. Upon the termination of this lease (provided Lessee is not in default hereunder) Lessor shall refund to Lessee any then remaining balance of the deposit without interest. In the event of a sale of the land and building or leasing of the building of which the demised premises are a part, Lessor shall have the right to transfer the deposit to the vendee of Lessee and Lessor shall thereupon be released by Lessee from the liability for the return of such deposit; and Lessee agrees to look to the new Lessor solely for the return of said deposit; and it is agreed that the provision hereof shall apply to every transfer or assignment made of the deposit to a new Lessor.

 

	
MORTGAGE PRIORITY
	
 
	
The lease shall be subordinate to the lien of any mortgage or mortgages which have been or hereafter may be placed upon the premises in order to finance or refinance the building in which the premises are located, and the Lessee shall execute and deliver upon demand, such further instruments of subordination as may reasonably be required to carry out the intent and purpose of this paragraph. Lessee may obtain from every mortgagee of the aforesaid building a written commitment that the Lessee’s possession of such building shall not be disturbed as long as the Lessee is not in default under the provisions of this lease if such mortgagees are willing to do so.

 

	
OTHER COVENANTS
	
 
	
A. Lessor shall warrant and defend the Lessee in enjoyment and peaceable possession of the premises during the term of this lease. B. All notices and demands required by either party shall be served by certified mail - return receipt requested - to the address of the party shown above.

C. All terms and covenants of this lease shall be applicable to and binding upon heirs, executors, administrators, successors and permitted assigns of the parties.

D. Either party, may at its option and expense, record this lease or a Memorandum of this lease.

E. Failure of Lessor in any situation to insist upon strict adherence to any provision or rule of this lease shall not serve as or be construed as a future waiver of any provision or rule by Lessor.

F. The invalidity or unenforceability of any provision of this lease shall have no effect on the validity or enforceability of any other provision of this lease.

G. Lessee shall consult and conform to the rules governing the building and to any reasonable alteration therein that Lessor may deem necessary. Lessee shall receive a copy of any rules which Lessor shall impose.

 

 

12

 

	
CHANGES AND ADDITIONS 
	
 
	
Lessor hereby reserves the right at any time and from time to time, to make alterations or additions to the Premises in which the leased premises are located and to build adjoining the same, and to reduce, increase, alter or rearrange any parking areas adjacent hereto. Lessee accepts the leased premises in an “as is” condition and acknowledges that Lessor has made no warranty or representation with respect to the condition or suitability thereof.

 

	
REMOVAL OF APPROVED ASSETS
	
 
	
Except as otherwise provided, all movable furnishing, trade fixtures, (but not including carpeting or combination heating and air conditioning equipment or ducts), and other equipment installed in the leased premises by the Lessee and paid for by it, shall remain the property of Lessee and may be removed by Lessee upon the termination of this lease; provided (a) that any such furnishings and fixtures as are affixed to the leased premises and which require sewerage may be removed by Lessee only if Lessee shall repair any damage caused by such removal, and (b) that Lessee shall have fully performed all the covenants and agreements to be performed by it under the provisions of this Lease; provided, however, that upon the failure of Lessee to remove any of its trade fixtures or furnishings shall become the property of Lessor and Lessee shall reimburse Lessor for cost of removal and repair of any damage caused by removal.

 

	
NON-WAIVER
	
 
	
No waiver of any covenant or condition or the breach of any covenant or condition of this Lease shall be taken to constitute a waiver of any subsequent breach of such covenant or condition nor to justify or authorize the nonobservance on any other occasion of the same or of any other covenant or condition hereof, nor shall the acceptance of rent by Landlord at any time when Tenant is in default under any covenant or condition hereof be construed as a waiver of such default.

 

	
SURRENDER OF PREMISES 
	
 
	
Tenant agrees that when it vacates the Premises for any reason whatsoever whether by abandonment, termination of the specified term herein, or termination or re-entry by Landlord, the Premises shall be returned in a dean, safe and tenantable condition, reasonable wear and tear excepted.

 

 

13

 

	
SUBORDINATION
	
 
	
This Lease and Tenant’s rights hereunder shall be subject and subordinate to any mortgages upon the building heretofore or hereafter executed and delivered as security for any loan made to Landlord by any lending institution from time to time, and in the event Landlord’s interest in the building is terminated, Tenant shall recognize such new holder as Tenant’s landlord under this Lease. The subordination of this Lease and Tenant’s rights hereunder shall be automatic and self-operative, and no separate instrument of subordination shall be necessary.

 

	
APPLICABILITY
	
 
	
All terms and covenants of this Lease shall be applicable to and binding upon heirs, executors, administrators, successors and permitted assigns of the parties.

 

	
RULES AND REGULATIONS
	
 
	
Tenant shall comply with the rules and regulations, as well as all reasonable changes therein and additions thereto, that may from time to time be made by Landlord for the operation and protection of the building and the protection and welfare of Landlord’s tenants and invitees. Such rules and regulations, and changes and additions thereto, shall become effective and a part of this Lease upon delivery of a copy to Tenant.

 

	
NOTICES
	
 
	
Any notice or demand required or desired to be given to Landlord hereto shall be deemed given when deposited in the United States mail, first-class postage prepaid, addressed to Landlord at 2849 Switzer Rd. Columbus, Ohio 43219 or at such other address that may hereafter be specified in notice given by Landlord to Tenant.

 

Any notice or demand required or desired to be given to Tenant hereto shall be deemed given when deposited in the United States mail, first-class postage prepaid, II addressed to Tenant at is 873 Wheat Ridge Road, West Union, Ohio 45693 or at any other address that may hereafter be specified in notice given by Tenant to Landlord.

 

	
COUNTERPARTS
	
 
	
This Amendment may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but both of which together shall constitute one and the same instrument.

 

	
GOVERNING LAW
	
 
	
The validity, interpretation, and performance of this Amendment and each of its provisions shall be governed by the laws of the State of Ohio, without regard to the principles and conflict of laws thereof.

 

 

14

 

 

IN WITNESS WHEREOF, the parties hereto have set their hands on the day and year first above written:

 

	
WITNESSES
	
 
	
LESSOR

	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
ST Equity Properties, LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 

	
 
	
 
	
Its:
	
 

	
 
	
 
	
 
	
 

	
WITNESSES
	
 
	
LESSEE

	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Anthony Yoder, individually

	
 
	
 
	
 
	
 

	
 
	
 
	
/s/ Trey Peck

	
 
	
 
	
Thunder Ridge Transport, Inc.

	
 
	
 
	
By:
	
Trey Peck

	
 
	
 
	
Its:
	
CEO, President

 

 

 

15

 

 

STATE OF OHIO

COUNTY OF FRANKLIN ss:

 

On this _______ of ___________________________, 20___, before me appeared ______________________________, who, on behalf of the ST Equity Properties, LLC executed the within and foregoing instrument, with the authority of Lessor and who acknowledged that said instrument was signed by him/her and that he/she did so by their free act and deed.

 

	
	
 

	
Notary Public

 

 

STATE OF OHIO

COUNTY OF FRANKLIN ss:

 

On this ___________ day of _________________________, 20___, before me appeared Anthony Yoder, Lessee(s) herein, who in their individual capacity did execute the foregoing instrument by their free act(s) and voluntary deed(s).

 

	
	
 

	
Notary Public

 

 

STATE OF OHIO

COUNTY OF FRANKLIN ss:

 

On this _________ day of ____________________________, 2018 before me appeared ________________________________________ who, on behalf of the Thunder Ridge Transport, LLC, herein, who in their individual capacity did execute the foregoing instrument by their free act(s) and voluntary deed(s).

 

 

 

	
	
 

	
Notary Public

 

 

16

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