HomeMy WebLinkAboutAgenda - 06-27-2006-5wORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 27, 2006
Action Agenda
Item No. 5-w
SUBJECT: Lease Approval: Parks Operations Base
DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No
Services
ATTACHMENT(S): INFORMATION CONTACT:
Current Lease Pam .)ones (919) 245-2652
PURPOSE: To authorize the extension of the lease for the Parks Operations base through
June 30, 2007, pursuant to the lease agreement.
BACKGROUND: The advent of parks development in the County has given rise to the need for
an operations base specifically for the parks fianction. Since August of 2004, Orange County
has leased a 4,000 square foot building with surrounding grounds (approximately 3,500 sq ft) at
503 Cornerstone Court, Hillsborough (close to the intersection of Highways 86 and 70A).
The shop space is used for carpentry (picnic tables, play structure repair, kiosk and sign
construction, painting) for equipment care and lubrication, and to allow for productivity during
inclement weather. County equipment assigned to the Parks division is secured in the fenced
yard surrounding the building.
Work crews are dispatched from this base daily to service Efland, Central, Fairview and
Northern Parks. Southern Human Services Center, New Hope, Blackwood and Twin Creeks
properties also receive regular attention and maintenance.
While options have been considered over the past year that would provide space far this
function on County-owned property, none have proven to be economically viable. The terms of
the lease approved by the Board in 2004 (attached) provides that the lease may be extended
for three one-year terms with a 3% escalation in the current lease amount (currently $33,990
per year going to $35,010 per year). All other terms remain the same. Should along-term
solution be identified for this lease within the renewal term, the County may provide notice as
provided in the lease and pursue the alternative location.
FINANCIAL IMPACT: $35,010 is included in the Parks Operating portion of the 2006-2007
Manager's Recommended Budget to support this lease payment.
RECOMMENDATION(S): The Manager recommends that the Board authorize the extension
of the current lease for the parks operations base through June 30, 2007 at a rental fee of
$35,010 per year, noting that the lease may be terminated earlier per mutual agreement
between the County and the Landlord.
a
REAL E S T A T E
COMMERCIAL LEASE AGREEMENT
lilts L-EASE, nmdc this 30th _., _„ _ _,_ _ day of _,,, July. _ , J-0 04 , by and benvrcn
JCBH Properties, LLC _ ("l:nndlord") whosz address is
510 Cornerstone CourY,_NifXsborough NC 27278„ and
__._
- County of Orange _,... _ „ , . _ ("Tenant") whose address is
AT7`N:. Purchasing Director, P.O. Box,8181, Hillsborough, NC 27278_._.,. ;
R'ITNESSETH:
PREMISES
1 Landlord, for and In consideration of the rents, covenants, agreements, and stipulations hereinafter mentioned, provided for
and covenanted to be paid, kept and perfornred by Tenant, leases and rents unto Tenant, and Tenant hereby leases and takes upon dtc
terms and conditions which hzreinaFler appear, the following described property (hereinafter called the "Premises"), to wit:
Addrzss: _ ___ __ _ 503 Cornerstone Courf_Hlllsborough, NC_27278___i__ _
Legal Descnpnon: Approximate1~4000SFOfspacelocafedln_a.commercialbuildingat __a
-- - .._
Cornerstone_Court !n Hillsborough,, NC„PIN 9874.40.4766, Deed Book 3046, page_258 _
Sec attached 13:xhibit A for Icgal description of premises.
'TERM
Z. The Tenant shall have and hold the Przmisas fbr' a term of _____ one (1J y_ear____
begim»ng on the 7st day of _ August*___ , ~0 04___, and ending nn the 31st day oT .._ . _ July
30 OS_, at midnight, unless sooner tenninoted vs hereinafter pros rdzd the first Lease Yzar Anniversary shall be the date nvclve (12)
calendar mmuhs afier the first day of tbz first lull month of the term hereof and successive Lease 1'car Anniversaries shall b2 the
date twelve (12) calendar mondrs from dte previous Lease Year Anniversary.
REN'T'AL
3.7 enant agrees to pay Lmtdlord or its Agznt wrihout demand, deductiat or set off, an annual renml of S 33,000
payable in cyual monthly ius-htllutents of 5 , _ ___ 2,750.00 i__ in advance on the first day of oath calendar month
during the term hereof:. Uprnt execution of this Lease. Tenant shall pay Ur Landlord the first month's rent due hereunder Rental for
any period durine the Icrm hereof which is less thmr one month shall bz the pro-rated portion of (hc monthly rental due On
each I:ease Year Anniversary the annual rental payable hereunder (and accordingly the monthly installments) shall hr adjusted:
'~-~ by any change in the Consumer Price Index, Url>an Wagc Earners and Clerical Rrorkers, All Ciltes (CPI- W.. 198-I9&4=100)
("index") by multiplying the then effective annual rental by the value of said Index for the month nvo months prior to the Lzasc
Year Anniversary and dividing the product by the value of said Index for the month nvo months prior to dte previous L.easc
fear Anniversary (in the instance of the first Lease fear Anniversaq' the value of the tndex for the mo{nlt nco months prior to the
first full month of the term herrol)., In the event the huizs ceases to be published, there shall be substiuncd for the Index the measure
published by the US Department of Labor which most nearly approximates the Index;
x as fnu~l~t:s:
Increasing by 3/ annually baglnning Aug. 1, 2005 based on previous years rent Tenant can extend dre lease for addltlonal i yt. terms
_~_ .. ,_ . ._._ __.._.____ ~ _....._. ______.. a.__.__-__ _ _
!or up to 2 addrltanal years by g!ving 720 days wNffen notice to Landlord belore the entl or the preceding 1 yr, term "Landlord w7ll
allow Tenant to occupy the building as soon as INs available fn Jul """'~' -'" "'-" " "
y {at Tanan('s option) based on a daily rent or 590.00/day
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STANDAItU DORM 5!)0-'i
If this box is cbcckzd, Tenant shall pay all rental to 1_andlord's Agent at the following address:
N/A
I",A7Ji CHARGES
4. li' landlord fails to receive any rent payment within _ ." _ fifteen_f 1~__"_, days after it becomes due, Tenant shall pay Landlord,
as additional rental, a late charge equal to __ „_ five ,___ ____ percent ___ 5 „(%) of the overduz mneunt or
S _,",__„__ ,_N/A..,_,___`__ whichever is greater, plus any actual bank fees incurred for returned or dishonored checks The parties
agree that such a late charge represents a fair and reasonable cstimatz of the cost L.m+dlord will incur by reason of such late payment.
SECUR7Tl' DEPOSIT
5. Tenant shall deposit with Landlord or its Agent upon execution of this Lease $ ___ 0 .., __ as a security deposit
wfiich shall be held as security for the full and faithful pzrCorntance by Tenam of each and every teen, covenant and condition of
this [..ease If any of the rents or other charges or sums payablz by Tenant shalt be over-due and unpaid or should payments be
made on behalf of 7-errant, or should Tenant fail to perform any of the terms of this Lease, then Landlord or its Agent may, at
its option, appropriate and apply the security deposit, or so much thereof as may be necessary, to compensate toward the payment
of the rents, charges or otfter sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from
such default on the pare of t}te Tenant; and in such even Tenant shall upon demand restore the security deposit to the original Burn
dzposited In the event Tenant furnishes Landlord with proof that all utility 6i11s have been paid through the dmc of L,case
termination, and performs all of Tenant's other obligations under this Lease, the security deposit shall be returned in fill to Tenant
within thirty (30) days after the date of the expiration or sooner termination of the tann of this Lease and (he surrender of the
Premises by Truant in compliance wit)'i the provisions of this Lease The Security Deposit tray be placed in an interest bearing
account mui any interest thereon shall be the property of the party holding the same"
^ if this box is checked, Agcm shall hold the Security Deposit mtd shall be entitled to the interest thereon
UTILIT}' IItLL.S
6. (a) Tcnam shall pay the following utilities: Water setyer, electric and natura/gas (all,utifitieJ ,.
(b) L.mdlord shall pay the following uuhties: NIA
Responsibility to pay for a utility service shall include all metering, hook-up fees or other miscellaneous charges associ;ued with
the installation and maintenance of such utility in said party's name
COh7h7ON AILEA COST'S; RUI:ES AND REGULATIONS
i ]f the Premises ore part of a larger building or group of buildings, Tenant shall pa}' as additional rental monthly, in advance, its
pro rma share of common area maintenance costs as 6ereinaiter more particularly set forth in the Special Stipulations (see Paragraph
36) The Rules and Regulations, if any, nttachcd hereto ore mach a par oCihis Lcasz Tenant agrees to perlonn and abidz by these
P.ulcs and Regulations, if ally, and such ether Rules and Regulations, if any, as may be made from lime to time by 1: andlord..
ush: or PREnllsr:,s
h. The Premises shalt be used for Parks and Recreation oNices_and warehouse
----. _
purposes only and no other The I'rc.mises shall no( be used for any illel,al purposes, not man} manncrto create any nuisance or
nzspnss, uor in anv manner to vuiau the insurance or increase the rate of uisuranec nn the Premises In the event Tenant's use of
the Premises results in an increase in the rate of insurance on the Premises, Tenant shall pay to Landlord, upon demmid and as
additional rental, the amount of any such increase
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TAX ANU IN~UKANCii Y:SCALAT'tON
9 Tenant shall pay upon domand as additional rental during the term of this Lea>c. and :toy cx.tcnsion or renewal tbercotl
The emount by which all taxes (ineludin~ but not limited ro. ad valorem taxes special ~tssessmcnts ^nd ;my nthu
;~uvcmmcntul chnr._~cs) nn the Premises tar each ttx year exceed all taxes on the I'rcmiscs Inr the ux year NJA or
All axes (including, but not limited to, ad valorem taxes. special assessments and any o[har Governmental charges) nn thz
Pn:mi:;es for each tax year
In the event the Premises ate less than die entire property assessed for such taxes Ibr any such tax yea, then [he tax for auy such
year applicable to the Premi.acs shall be determined by proration on the basis th;rt Ute rentable 11eor area of the Premises hears
io the rentable flour :vea of the enire property asesvcJ~ II the final year of the lease form fails to coincide with die tax yeas
than any cscess for the tax. year during which the term ands shall be reduecJ by the pro Yam part u!' such tax year beyond the
Lcaso term If such taxes for the year in which the Lease terminates are not ascenainablc before payment of the last month's rentah
then the amount of ouch taxes assessed against the property for the previous tnx year shall be used as a basis for de[enninint~ the
nru rra share, if nny. to be paid by'fenant for that portion of the last !.case yrv. Tcnanl =hall further pay upon dcmnnd ~r, addiunnnl
rental ducin{; the term of this 1.case, and any cxtcnxion or renewal thereof:
the excess cost of fire and extended coverage insurance including, nny and all public li;tbiliry insurance nn the builduvt
over the cult of the f int yc:rr of the Loose term Inr c;mlr suhsryucnl year durinf, the icon ul`lhix !.case: or
all tiro and extended coverege insurance including any and all public liability insut:utce on the building.
In the cvem the Prerniscs aro Iesv than the ontire property, then the in,vuranec payable by ~Tenanl !br the Premises shall br:
dctcnnincd by proration on the b:tiis drat the rentable floor ;vea of the Promises boors w the rentable !loot area of die cntirr: prapcrty.
'tenant shall pay all taxes and insurance as provided herein within fifteen (IS) days after receipt of notice, fron{ Landlord as to the
amount due. Tenant shall be Solely responsible fur insuring l'cnuni s personal and business property and for paying any taxes or
;tovcrnmcntal assessments levied thereon
indemnity; Insurance
10 To the extent permitted by Iaw ;rnd inxumncc politics oovcrinlt die Tenam, "T'enanl ;rrrcuz to :md hereby dues indemnify and
save Landlord harmless again.! <dl claims fur damages to pcrsous or progeny by reason of 7un;utt's use of occupancy of the
Premises, and all cxpcnaes incurred by Landlord because thereof, including annrncy's ices and coup costa..
The County may in iu sole discretion and at its own expnrvse, aeyuin. carry :utd maintain comprehensive general liability
insurance in an amount nor less than 51,000.000 for personal injury or death and $1,0110,000 for prapcrty damage. Should die
County elect to prnvute covcrat~c, proof of insurance shall Ix: provided [n nc~ Landlord and nc~ landlord will be mmcd as ;m
additional insured for uxpoxurts created by dtc Lcasc.
Itlil'AIRS f3Y 1,,\NI)LOKll
I I Landlord agrees to kscp in gaud ropair the roof, loundaonn and zxturiur watts uYthc. 1'remucs (excluavc of ;dl ;;las and cxc u:rvc
of alt exterior doors) and under6rround utility and sewer pipes outside the exterior walls of the building, except repairs rendered
necessary by the noltligcncc nr intentional wronttful acts of Temmt, n5 agents. employees or invitoe5~ if the Pretniscs arc pare u( o
larger building or group of huitdin4t+, then to the extent that nc~ r;rounds arc common arms. Lendlnrd sh;dl nunnain the fgau,J.
surrounding the building, including paving, the mowing of yn'ass, Dare of shrubs and general landscaping Te:uwt shall promptly report
m writing to 1 andlnrd ony dekclivc condition known to it which l,andlurd is rcquireJ to rcp:ur and failure to report such conditions
shall nmkc'1"chant responsible to Landlord for any liability incurted by Lundlm~d by reason ul'such conditions.
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tit ANDAIZD FORM 590-i
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RE.I'A112S I1T T1'sN:AN"I' Landlord
1?. Tenant accepts the Premises in their present condition and as suited for the uses intended by Tennnl '~emmi-shall, throughout thr.
initial lean of this Lease, mrd any extension or renewal thereof, at its expense, maintain in goad order and repair the Premises,
including the building, heating and air conditioning equipment (including but not limited m replacement of pans, compressors, air
handling writs and heating units) and other improvements located thereon, _ _. ,
' b, ' ~, ~, ~, b 5 - ~,. Tenant agrees to
return the Premises toyl.,andlord of the expiration or prior termination of this Lease, in as good condition and repair as when first
received, nantral wear and tear, damage by storm, fire, lightning, earthquake or other casualty alone excepted. Tenaut, TenanPs
emphyces, agents, contractors or subcontractors shall take no action which may void any manufacturers or installers warranty with
relation to rho Premises Tenant shall indemnify and hold Landlord harmless from any liability, claim, demand or cause of action
arising on account of Tenant's breach v(the provisions of this paragraph
A LTERA'IIONS
13 Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord's prior tvriiten consent.
Tenant shall promptly remove any alterations, additions, or improvements constricted in violation of this Paragraph upon l.:mrdlord's
written request. All approved alterations, additions,and improvements will be accomplished in a good and workmanlike manner, in
conforntity will all applicable laws and regulations, and by a contractor approved by Landlord, free many liens or encumbrances.
Landlord may require Tenant to remove any alterations, addtnons or improvements (whether or not made with L,andlord's consent) at
the tannination of the Lease and to restore the Premises to its prior condition, all at Tenant's expense. All alterations. additiars mrd
improvements which Landlord has not required Tenant to remove shall become Landlord's properly and shall be surrendered to
Landlord upon the tcrntination of this Lease, except that Tenant may remove any of Tenant's machinery or equipment which can be
removed without material damage to the Premises Tenant shall repair, at Tenant's expense, any damage to the Premises caused by the
removal of any such machinery or equipment.
REMOVAL OF FIXTURES
1A..1'cnant may (if not in default hereunder) prior to the expiration of this t.casc, or any extension or renewal Ihcreof, remove all
fixtures and equipment which it has placed in the Premises, provided Twiant repairs all damage to the Premises caused by such
removal
DF,ST12UC7lON OF Oli DA14fAGE TO PREMISES
lj, tithe Premises are totally destroyed by storm, tire, lightning, earthquake o other casualty, this Lease shall terminate
as of the date of such destruction and rental shall be accounted for as between Landlord and Tenant as of that date. if the
premises are damaged but not wholly destroyed by any such casualties, rental shall abate in such propoiiou as e[fective use of the
Premises has been atlected and Landlord shall restore Premises to substantially the same condition as before damage as speedily
as is practiu~ble, whereupon toll rental shall reconunence.
GOVEI2NMBNTAL ORDERS
16. Ten;tnt agrees, at its own expense, to comply promptly with all requirements of any legally constituted public authority
made necessary by reason of'Ienant's occupancy of the }'remises. landlord agrees to comply prompt]}' with any such
requirements if not made necessary by reason of~l'enant's occupancy. It is mutually agreed, however, bchveen Landlord mrd
Tenant, that if in order to comply with such requirements, the cost [o Landlord or Tenant, as the case may be, shall exceed a sum
equal to one year's rent, Uten Landlord or Tenant, whichever is obligated to comply with such requirements, may terniinatc
this Lease b} giving written notice of termination to the other party by registered mail, which termination shall become effective
sixty (C,U) days after receipt of such notice and which notice shall eliminate the necessity of compliance with such requh~emcnts by
giving such notice unless the party giving such notice of termination shall befnre termination becomes effective, pay to the party
giving notice all cost of compliance in excess of one year's rent, ur secure payment of said sum in manner satisfactory to the parry
giving notice
C'ONllEM1INATI l)N
17. ff the a•holc of the Premises, or such portion thereof as will make the Premises unusable for the punwscs Bcrein leased, is
condemned by any legally constituted authority for any public use or purpose, then in either of said events the term hereby granted
shall cease fiom the date when possession thereof is taken by public authorilics, and rental shall be accounted for as behvicen Landlord
and pcn;uu as of said date Such temtination, however, shall be without prejudice to the rights of either Landlord or Tenant to recover
compensation and damage caused by condemnation from the condemnor. It is further understood and agreed that I cram shall not
have any rights in any award made to landlord by any condemnation authority
Page 4 of S
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STANDARD FORM 590-i
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ASS]GNMEN7 AND SIJRLE7"TING
18 Tenant shall not, without the prior written consent of Landlord, which shall nut be unreasonably withheld, assign this Lease or
any intcrest hereunder, or sublet the Premises or mty part thereof, or pcmtit the use oC the I'remiscs by any party other than thc'fenant.
Consent to any assignment or subicase shall not impair this provision and all later assignments or subh:ases shall be made likewise
only on the prior written consent of Landlord. The Assignee of Tenant, at option of Landlord, shall become directly liable to Landlord
for all oblications of Tenant hereunder, Uut no subicase or assignnent by Tenant shall relieve 7"errant of any liability hereunder.
EVENTS OF DEFAULT
19 The happening of anv one or more of the following events (hereinafter any one of which may be referred to as an 'T.vent of
Default") during the term of this Lease, or any renewal or extension thereof, shall constitute a breach of this Lease on the purl ol'the
Tenant (a) Tenant fails to pay the rental as provided for herein; (hj Tenant abandons or vacates the Premises-, (c) Ienant fails to
comply with or abide by and perfomt any other obligation imposed upon Tenant under Otis Lease; (d) Tenant is adjudicated barilirupt;
(e) A permanent receiver is appointed Cur ?enanPs property and such receiver is not removed within silty (GO) days afar written
notice from Landlord to Tenmtt to obtain such removal; (f) I'enan[, either voluntarily or invohmtarily, takes advantage of any debt or
relief proceedings under any present or future law, whereby the rent or any part thereof is, or is proposed to he, reduced or payment
thereof deferred; (g) Tenant makes au assignment for benef t oCcreditors; or (h) Tenants effects arc levied upon or attached under
process against Tenant, which is not satisfied or dissolved within thirty (3D) days after wri[[en notice from Landlord to Tenant to
obtain satisfaction thereof
REMEDIES t1POiV DI?.f ALIL.T
20. Upon the occurrence of L"•vent of Default, L.andtord may pursue any one or more of the following remedies separately or
concurrently, without prejudice to any other remedy herein provided or provided by law: (a) if the Gvenl oCDefault involves
nonpayment of rental and Tenant fails to cure such default within five (5) days after receipt of written notice thereof from landlord, or
if the Event of Dcftult involves a dciaul[ in pcrfomting any of the terms or provisions of this L.case other than the payment of rental
and 'I'cnant fails to cure such default within [iftecn (I S) days after receipt of written notice of default from Landlord, Landlord may
terminate this 1. ease by giving written nonce to Tenant and upon such temrination shall be entitled to recover from Tenant dantages as
may be permiaed under npphcablc law; or (b) if the Event of Default involves any matter other than those set forth in item (a) of iltis
paranraph, Landlord may terminate this L-case by giving written notice m Tenant and, upon such termination, shall be entitled to
recover from the Tenant damages in an amount equal to all rental which is due and all rental which svnuld otherwise have become due
throughout the remaining tcnn uC this Lease, or any renewal or cxtcnsion thereof (as if this Lease had not been terminated); or (c)
upon any Fvent oC C?efault, Landlord, as Tenant's agent, without terminating this Lease, may enter upon and rent the Premises, in
whale or in psri, at the best ln-ice obtainable by reasonable efion, without advertisement and by private ncgoiiations and Cor any tern
Landlord deems proper, ttdth Tenant being liable to Landlord for the deficievcy, if any, between Tenant's rent hereunder and the prioo
obtained by Landlord on reletting, provided however, that Landlord shall not be considered to be under any duty by mason of this
provision to take any action to rnitiGate damages by rcasnn of ] cnant's default In the event Landlord hires ml attorney to enforce its
rigids upon default. Tenant shall in addition be liable for reasonable attorney's fees and alt costs of collection
EaTERIOR SIGNS
21 7"errant shall plncc no signs upon the outside +valls or roof of the Premises, except with the express written consent of"lhc
Landlord. Any and all signs placed on the Premises by Tenant shall be tvaintained in compliance with govcrnmenml rules and
regulations governing such signs and I errant shall be responsible to Landlord for any damage caused by installation, use or
maintenance of said signs, and all damage incident to removal thereof
LANDLORD'S IiNTRY OF PREMISES
22 Landlord may advertise the Premises "fbr Renl" or "Poe Salc" ______180_ .. days before the termination of this I.case.
Landlord stay enter the Premises at reasonable hours to exhibit same to prospective purchasers or tenants and to make repairs required
of Landlord under the terms hereof or m mnke repairs to Landlord's adjoining property, if any
IiPFECT OF TIiILMINATION OP LEASF,
23 No termination of this Lease prior to the normal ending thereof, by lapse of time or othewise, shall artier Landlord's right to
collect rent for Otc period prior to termination thereof
MORTGAGEE'S RIGHTS
24, Tenant's rights shall be subject to any bona fide morn>,age, deed oftmst or other security intcrest which is now or may hercallcr
be placed upon the Premises by Landlord. Tenant shall, it requested by Landlord, execute a separate agreement reFlccting such
subordination, snit shall be oblig;ued to execute such documentation as may frcititate Landlord's sale or refinancing of Oro Premises,
including; but not limited io, estilppcl certificates, subordinaion or atmrnment agreements
Page 5 of S
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Qur3~.T EN.roS'n7ErvT
2S So long as l'enant observes and performs the covenants and agreements contained herein, it shall at all times during the Lease
term peacefully and gitietly have and enjoy possession of the Premises, but always subject to the feints hereof. Provided, however, that
in the event Landlord shall sell or othenvrse transfer its interest in the Premises, Tenant agrees to a(torn to any new owner or interest
holder and shall, i(requested by Landlord, execute a separate agreement reflecting such attornment, provided that said agrccrnent
requires the new owner or interest holder to recoGnize its obligations and 1'cnant's rights hereunder
IlO3;D7NG OVER
26 If Tenant remains iu possession of the Premises after expiration of the taint hereof, with ],andlord's acquiescence and without
any express agreement of the parties, Tenant shall be a tenant at will at the rental rate which is in effect at end of this Lease and there
shall be no renews] v(' this Lease by operation of Jaw. If Teaani remains in possession of the Premises after aspiration of the term
hereof without Landlord's acquiescence, Tenant shall be a tenant at sufferance and commencing on the dart following the date of such
expiration, the monthly rents] payable under Paragraph 3 above shall for each month, or fraction thereof during which Tenant so
remains in possession of the premises, be twice the monthly rental otherwise payable under Paragraph 3 alcove.
ATTORNEY''S FEES
27. In the event that any action or proceeding is brought to enforce any terns, covenant or condition of this Lease on the part of
landlord or Tenant, the prevailing party in such litigation shall be entitled to recover reasonable attorney's fees and costs-
RIGHTS CUML)LATIVE
2S All rights, powers and privileges conferzed hereunder upon parties hereto shall be cumulative and not restrictive of these given
by law,
~VAIVL',12 Or RIG137S
29. No failure of Landlord to exercise any power given Landlord hereunder or to insist upon strict compliance try Tenant of its
obligations hereunder and no custom or practice of the parties at variance with the terms hereof shat) constitute a waiver of Landlord's
right to demand exact cvmpliance with dte terms hereof
ENVIRONMENTAL. LAWS
30 (a) Tenant shall not bring Dote the Premises mr,y hazardous Materials (as defined below) withmtt the prior written approval by
landlord. Any approval must be preceded by submission to Landlord of appropriate Material Safety Data Sheets (MSD Sheets). In the
event of approval by Landlord, Tenant coveuants that it will (1) comply with all requirements of any constituted public aulhorin and
all federal, state, and local cedes, statutes, odes and regulations, and laws, whether now in force or hereafter adopted relating to
1"enant's use of the Premises, or relating to the storage, use, disposal, processing, distribution, shipping or sates of any hazardous,
flammable, toxic, or dangerous materials, waste or substance, the presence of which is regulated by a federal, state, or local law,
ruling, rule or regulation (hereafter collectively referred to as "Hazardous Materials"); (2) comply with any reasonable
recommendations by the insurance carrier oCeither Landlord or Tenant relating to the use by Tenant nn the Premises of such
1lazardous Materials; (3) refrain from unlawfully disposing of or allowing the disposal of any Hazardous 1`9aterials upon, within,
about or tinder the Premises; and (4) remove all hazardous Materials from the Premises, either after their use by Tenant or upon the
expiration or earlier termination of this lease, in compliance with all applicable laws
(b)'I'enant shall be responsible for obtaining all necessary permits in connection with its use, storage and disposal oCl-lazardous
Materials, and shall develop and maintain, and where necessary file with the appropriate authorities, all reports, receipts, manifests,
filings, lists and invoices covering chose hazardous Materials and Tenant shall provide 1"andlord with copies of all such items upon
request Tenant shall provide within five (5) days after receipt thereof, copies of all notices, orders, claims or ether correspondence
from env federate state or local government or agency alleging any violation of any environmental law or regulation by Tenant, or
related in any manner to Hazardous Materials to addition, Tenant shall provide Landlord with copies of aH responses to such
corespondence at the time o1'the response
(c) To Che extent permitted by North Carolina law and the insurance policies owned 6y/covering the Tenant,
{rj Tenant hereby indenmifies and holds harmless Landlord, its successors and assigns from and against any and all losses,
liabilities, damages, ivjuries, penalties, fines, costs, expenses and claims of any and every kind whatsoever (including attomcy's fees
and costs, expenses or claims asserted or arising under the C:mnprehensive Environmental Response, Compensation and I..iabilily Act
oi• 1980, as amended, from time to lime, and regulations promulgated thereunder, any so-called state or ]Deal "Superftrnd" or
"Superlien" law, or any other federal, stale or local statute, law or ordinance, code, ode, regulation, order or decree regulating, relating
to, or imposing liability or standards of conduct concerning any hazardous Materials) paid, incurred or suffered by, nr asserted
against, Landlord as a result of any claim, demand orjudicial or administrative action by any person or entity (including governmental
Page G of 8
STANDARD GO12M ,y0=1'
~ ~ ! ~' ( C? 7/2002
l'en;un Initials ~_ ~ __., L.andlrn~d Initials _~1 ~)._
---- - ~ -
or private entities) for, with respect to, or as a direct or indirect result of, the presence on or tinder or the escape, seepage, leakage,
spillage, discharge, emission or release from the Premises of any Hazardous Materials caused by Tenant or Tenant's agents,
ernployces, invitees or successors in interest. Phis indemnity shall also apply to any release of Hazardous Materials caused by a f ire or
other casualty ro the premises if such Hazardous Materials were stored on the Po~emises b,y Tenant, its agents, employees, invitees or
successors in interest.
(el) If Tenant fails to comply with the Covenants to b¢ perfornted hereunder with respect to Hazardous materials, or if an
environmental protection lien is filed against the premises as a result of the anions of Tenant, its agents, employees or im~itaes, then
the occurrence of any such events shall be considered a dcfnult hereunder.
(e) Tenant will give Landlord prompt notice of any release of Hazardous Materials, reportable or non-reportable, to federnl,
state or local authorities, of any fire, or mty damage occurring on or to the Premises.
(f) Tenant will use and occupy the Premises and conduct its business in such a manner that the Premises arc neat, clean and
orderly at all times with all chemicals or Hazardous Materials marked for easy identi6catiou and stored according to all codes as
outlined above
(g) The vvananties and indemnities contained in this Paragraph shall survive the (erntination of this Lease.
TIME Ot• ESSENCE
31 Timt: is of are essence in this 1. ease
ABANDONMENT
32. Tonant shall not abandon the Premises at any time during the Lease term. If Tenant shall abmtdon the premises or he dispossessed
by process of law, any Personal Property belonging to Tenant and left on the Premises shall, at the option of Landlord, be deemed
abandoned, and available to Landlord to use or sell io offset any rent due or any expenses incurred by removing same and restoring
ate Premises..
DEr1Nlnorls
33 "Landlord" as used in this ]:ease shall include the undersigned, its heirs, representatives, assigns and successors in title to the
Premises "Agent" as uszd in this Lease shall mean the party designated as same in Paagraph 34, its heirs, representatives, assigns and
successors. ""tenant" shall include the undersigned and its heirs, representatives, assigns and successors, and if this Lease shall be
validly assigned or sublet, shall include alsn Tenant's assignees ur sublessees as to the Premises covered by such assignment or
sublease "L-andlord", "Tenant", and "Agent" include male and female, singular and plural, corporation, partnership or individual, as
may fit the particular parties.
NOTICF,S
34. All notices required or petntitted under this Lease shall be in writing and shall be personahy delivered or sent by U S certified
mail, return receipt requested, postage prepaid. Notices to Tenant shall he delivered or sent to the address shown at the beginning of
this ]..ease, -
Nutices to I: andlord shall be delivered or sent to the address shrnvn at the beginning o1'atis Lease and notices to Agent, if any, shall be
delivered or sent to the address set forth in Paragraph 3 hereof
All notices shall 6a afferrive upon delPoerl'. Arr,p parry may change i!s noricu address upon written nnlice !o rlre otlrer parties, given
as provided kerein.
IiN77t2E AGREEMENT
35 This L.easc contains the entire agreement of the parties hereto, and no representations, inducements, promises or
agreements, oral or otherwise, between the parties, not embodied herein shall he of any force or effect. This Lease may not be
modified except by a writing signed by all the parties hereto.
ALITHOI2121,D LEASE EXECUTION
3(i. Lach individual executing this Lease as director, officer, partner, member or agent of a corporation, limited liability company, or
partnership represents and warrants that he is duly authorized to execute and deliver this ]case on bclmllbCsuch corporation, tootled
liability company, or pnrmcrship
I'agc 7 of 8
n ~ '
'(roam Initials ~ - _._„ _._ landlord lnitinls .,_`~iL)~_
/ ~ 'I
STAND:1 t2D 1'r012M 5)0-T
rr 7/?0a?
na6,m,rvn~.cW Oy Fa6TiaardatoB'~Fan,: Sdinom eooa)6-0oP
I"I2ANSPER OIr LAN DL,012D'S fNTEREST
.i7 ht the event of the sale, assignrncnt or transfer by Landlord of its interest in the Premises or in this Lc:ise (other than a collateral
assignment to secure a debt of Landlord) to a snrceessm in interest who esprss)y assumes the obligations of Landlord under this
Lease, l.:andlord shall thereupon be released and discharged from nll its covenants and obligations under this Lease, except those
obligations that have accrued prior to such sale, assignment or Ir+nsfer; and Tenant agrees to loop solely to the successor in interest oC
Landlord for the perfomtnnce of those covenants accruing after such salt, assignmem or transfer. L,andlnrcPs assignment of this ]..ease,
or of any nr all of its rights in this Lease, shall not afi~ecl Tenant's obligations hereunder, and '1'mmnl shall atiorn and loo}: to tltc
assicnee as 1 andlord, provided Tenant has first received u~ritien notice of the nssigmnc•nt oCl. andlord's in4_rest
SPECIAL STLPl1LAT70NS
:iS Any special stipulations are set fnn6 in the attached Exhibit = . _~A_,_._,,,_„~~„ ]nsotar as ;:aid SpeciaV Stipulations
conflict with an} ol'the Torel;oing provisions, said Special Stipulations shall control.
14tit,MORANllU15t Oi LEASE
39.. Upon request by either Landlord or'fenant, the parties hereto shall execute a short form ]rase (Memorandum of L.casc) in
recordable loon, setting fot'lh such provisions hereof (ot)ter than the amount of Base Mnnddy Rent .cod other sums due) as either party
may wish to incor)torrte 7hc cost of recording such memorandum of tense shall be borne ny the party requesting execution of scone.
THIS DOCUMENT 1S A L.F.GAL DOCUMENT. EXECI1T70N OF THIS DOCtIhtEN'I HAS Ll?CAI. CONSPQCtGNCL^S T1-lA"f
COUL-DBE ENhOP.CL^.ABLB IN A COURT OF LA15~ 1"HP. NPlii7i C:AROL.INA ASSOCIATION OF I2FA1.•TO]2Si5) MAKGS NO
REPRlSENTA770N5 CONCLI2NING THE LEGA7: SUFFICIENCY, LEGAL. EFFECT OP. 7 AX CONSEQUENCES CIF THIS
DOCLiMENT OR THE TRANSAC7JON 10 WH1CH )T RELATfiS AND RF.GOMMENllS THAT YOII CUNSLILT POUR
AT'JORNEY.
IN WITNESS R'Hi:REOP, the pariirs hereto haec hereunto sot their hands and scats, the dote and year first above written
h-ANDI,ORD:
Individual
Business lrntily
(Sf?.Al:) _._ ,_JCBH Pro/Rettes,-LLC _........_._.._.
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Jim R. Cates
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TENANT:
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