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HomeMy WebLinkAbout2018-225 AMS - ISLA leaseSTATE OF NORTH CAROLINA COUNTY OF ORANGE LEASE THIS LEASE "Lease ", made and entered into as of the 1st day of July, 2018, by and between Orange County, hereinafter referred to as "County," and Immersion for Spanish Language Acquisition (ISLA), hereinafter referred to as "Tenant;" WITNESSETH- THAT FOR and in consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto do hereby agree as follows: 1. Premises. County does hereby lease and let unto Tenant and Tenant does hereby accept as Tenant those certain premises designated as Suite 200, 501 West Franklin Street, Chapel Hill, Orange County, North Carolina ( "Lease Premises" or "Leased Premises "), situated on that parcel having PIN 9788151996 and as more particularly shown on EXHIBIT A appended hereto. Premises are understood to include one assigned parking spaces identified within the parking area that do not interfere with marked Visitor's Bureau guest parking. Off -site parking in addition to these assigned spaces within the Premises is the responsibility of the Tenant. 2. Acceptance of Premises. The Tenant represents that the Leased Premises, the sidewalks and structures adjoining the same, any subsurface conditions thereof, and the present uses and non -uses thereof have been examined by the Tenant. The Tenant accepts the same in the condition in which they now are without representation or warranty, express or implied, in fact or by law, by the County, the nature, condition or usability thereof, or the uses to which the Leased Premises may be put. Provided, County shall be responsible for ensuring that the heating /air- conditioning, plumbing, and electrical systems are in good operating condition; the exterior walls and roof, the lighting system (excluding such additions as may be required for Tenant's business operation) and the exterior grounds are in good repair on the date of commencement of the Lease term. County represents and warrants to Tenant that it holds unencumbered fee title to the Lease Premises. The County shall not be responsible for any latent defect or change of condition in such building, improvements, and personalty, and the rent hereunder shall in no case be withheld or diminished because any defect in such property, any change in the condition thereof, any damage occurring thereto or the existence with respect thereof of any violations of the laws or regulations of any governmental authority, except as hereinafter provided. In addition, Tenant acknowledges that the Lease Premises is a smoke free building and grounds and tobacco use inside of the building or on the grounds is prohibited. 3. Term and Rental. (a) This Lease shall commence on July 1st, 2018, and shall continue for a term of twenty -four (24) months, ending on June 30th, 2020, both dates inclusive, unless sooner terminated as herein provided. Upon mutual written agreement, this Lease may be renewed for up to two (2) twelve (12) month terms. Any renewal may be for the entire Leased Premises. The first renewal option will match the initial lease rate; the second renewal option shall be subject to a mutually agreed upon increase in rent. (b) Tenant shall maintain with the County a deposit in the amount of Six Hundred Five Dollars ($605), which is the equivalent to the rent for one (1) month. Deposit shall be held as a security deposit against claims for damages. This money may be deposited for the Page 1 of 12 exclusive use of Orange County and will be returned to Tenant at the end of the Lease within 30 days provided there has been no damage to the Leased Premises. (c) The Tenant agrees to pay the County without demand at its office, or at such other place or places as County may from time to time designate in writing, the sum Six Hundred Five Dollars ($605) per month ($14,520) for the 24 month lease term, on or before the fifth day of each month of the term. (d) The extension of time for the payment of any installment of rent, or the acceptance by the County of any money other than of the kind herein specified, shall not be a waiver of the right of the County to insist on having all other payments of rent made in the manner and at the time herein specified. (e) If any installment of rent is not received by the fifth (5th) day of any month it is due, Tenant shall pay as additional rent a past due payment fee of Fifty Dollars ($50.00). This additional rent shall be due immediately without demand therefore and shall be added to and paid as a part of the installment payment of rent with respect to which it is incurred. 4. Holdover. If the Tenant shall remain in possession of the Leased Premises after the expiration of the original or renewal period as set out above, such possession shall be as a month -to -month tenant. During such month -to -month tenancy, rent shall be the rent in effect during the last month of the term immediately preceding. 5. Insurance. The County shall keep in force insurance to provide for property damage to the building for replacement cost purposes. The Tenant shall maintain fire and casualty insurance covering the Tenant's fixtures, equipment, and other property located in the demised premises. Tenant shall keep the Leased Premises insured, at its sole cost and expense, against claims for personal injury or property damage under a policy of public liability insurance, with limits of at least $1,000,000 for bodily injury and $100,000 for property damage. Such policies shall name the County as additional named insured under the policy. The Tenant shall provide the County certificates of such insurance at or prior to the commencement of the term of this Lease, and thereafter within ten (10) days prior to the expiration of such policies. Such policies shall provide that the same may not be canceled without at least ten (10) days prior written notice to County. 6. Rental Adjustment. In addition to the base rental, the Tenant shall assume and pay any additional fire insurance premium, hazard insurance premium, or other extended coverage insurance premium required because of any operation or use of said premises over and above the insurance premium required to be paid by County in the absence of said operation or use. 7. Signs. The Tenant reserves the right to install special signage it deems appropriate to properly direct the public to the services offered at the Leased Premises. Any special Tenant sign will be at the sole cost of the tenant but in the same styling, provided, however, that the County shall not unreasonably withhold approval of such signs as Tenant may desire. Signage must also be approved by the Town of Chapel Hill. Upon the termination of Page 2 of 12 this Lease the Tenant shall remove all special signs and repair any damage to the Leased Premises caused by the erection, maintenance, or removal of such special signs. 8. Repairs. The County shall be responsible for repairs and maintenance of the roof and outside walls and other external structural members, including the foundation of the Leased Premises. The County shall be responsible for maintenance of the electrical, plumbing, and the heating plant/air- conditioning systems in such condition as existed at the commencement of this Lease, which County warrants to be in good working condition as of the date of this Lease. The County shall be responsible for sweeping, cleaning and generally maintaining the entrance corridor breezeway and the removal of snow (in a timely manner) from the walkways and parking areas. In addition, County shall tend to any required landscaping on the Leased Premises. The Tenant shall not cause or permit any waste, damage or injury to the Leased Premises. The Tenant, at its sole expense, shall keep the Leased Premises clean and in good condition _(reasonable wear and tear excepted), and shall make all repairs, replacements and renewals, whether ordinary or extraordinary, seen or unseen, including all structural repairs, necessary to maintain the interiors of the Leased Premises. All repairs, replacements and renewals shall be at least equal in quality of materials and workmanship to that originally existing in the Leased Premises. Such repair and maintenance the Tenant shall be responsible for include wall and ceilings (including the painting thereof); maintenance of floors, and the cleaning of all buildings. The County shall in no event be required to make any repair, alteration or improvement to the interior of the Leased Premises, excepting obligations which are the responsibility of the County as noted above or which are made necessary because of fire and other unavoidable casualties covered by the County' fire and extended coverage insurance, and excepting reasonable wear and tear. The Tenant shall promptly notify Orange County Asset Management Services for notice of any needed repairs. The Tenant shall repair and maintain those things that are the responsibility of the County if repair and maintenance is necessary because of the fault, act, or negligence of the Tenant, its agents, subtenants, employees, or business invitees. Any equipment replaced by the Tenant shall belong to the Tenant, save equipment replaced in connection with Tenant's obligation to maintain the Leased Premises in the same condition as exists at the commencement of this Lease, and all proceeds from the disposition thereof may be retained by the Tenant. The Tenant shall indemnify the County against all costs, expenses, liabilities, losses, damages, suits, fines, penalties, claims and demands including responsible counsel fees, because of Tenant's failure to comply with the foregoing. 9. Improvements. Upon execution of the Lease, the Tenant may initially improve the interiors in a cosmetic manner to include flooring, painting of walls, and other cosmetic; improvements benefiting the County and Tenant according to the mutually agreed upon scope in exchange for the lease payments stated in paragraph 3. These content, means and methods of these improvements must be mutually agreed upon between the County and the Tenant. Other than this provision, no substantial alteration, addition, or improvement to the Leased Premises shall be made by the Tenant without the written consent of the County. Any alteration, addition, or improvement made by the Tenant after such consent shall have been given and any fixtures permanently installed as part thereof, shall, at the County's option, become the property of the County upon expiration of or other sooner termination of this Lease; provided however, that the County shall have the right to require the Tenant to remove such fixtures at the Tenant's cost upon such termination. This clause shall not preclude Tenant from decorating the interior of the Leased Premises from time to time in Tenant's discretion. 10. Liens for Improvements by Tenant. The Tenant shall not permit any mechanic's lien to be filed against the fee of the property because of work, labor, services, or Page 3 of 12 materials supplied or claimed to have been supplied, whether prior or after the commencement of the term hereof, to the Tenant or anyone holding the Leased Premises, through or under the Tenant. If any such mechanic's lien shall at any time- be filed against the Leased Premises, the Tenant shall, within 30 days after notice of the filing thereof, cause such lien to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction, or otherwise. If the Tenant shall fail to cause such lien to be discharged within such 30 day period, then, in addition to any other right or remedy of the County, the County may, but shall not be obligated to, discharge such lien either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or by bonding proceedings, and in any such event the County shall be entitled, if the County so elects, to compel the prosecution of an action for the foreclosure of such mechanic's lien by the lienor and to pay the amount of the judgment for and in favor of the lienor, with interest, costs and all other allowances. Any amount paid by the County for any such purposes, shall be repaid by the Tenant to the County on demand, with interest thereon at the rate of 6% per annum from the date of payment, and if unpaid may be treated as additional rent as provided for elsewhere in this Lease. Nothing in this Lease shall be construed in any way as constituting the consent or request of the County, express or implied, by inference or otherwise, to any contractor, subcontractor, laborer or materialmen for the performance of any labor or the furnishing of any materials for any property or as giving the Tenant the right, power of authority to contract for or permit the rendering of any service or the furnishing of any material that would give rise to the filing of any mechanic's lien against the fee of the Leased Premises. 11. Tenant's Warranty of Non - Disturbance. Tenant hereby expressly covenants and agrees that the Tenant shall be responsible for controlling the noise level emanating from the Tenant's use of the demised premises in such a way that other occupants of the building of which the demised premises are a part shall not be disturbed. Tenant shall be responsible for and pay for the installation of any special padding for other noise suppression devices that may be required for control of the level of sound emanating from the demised premises. 12. Tenant's Obligation to Comply with Applicable Laws and Compliance with Requirements of Insurance Policies. The Tenant shall, throughout the term of this Lease at its sole expense, promptly comply with all laws and regulations of all federal, state, and municipal governments and appropriate departments, commissions, boards and officers thereof, and the orders and regulations of the National Board of Fire Underwriters, or any other body now or hereafter exercising similar function, which may be applicable to the Leased Premises, the fixtures, and equipment therein, and the sidewalks and curbs adjoining the Leased Premises, The Tenant shall comply with the requirements of all policies of public liability, fire and all other types of insurance at any time in force with respect to the building and other improvements on the Leased Premises. 13. Utilities. The Tenant shall pay charges for gas, electricity, light, rendered, or supplied upon the Leased Premises. The County shall provide water for the Leased Premises. 14. Condition of Premises. The Tenant shall, during the term of this Lease and any renewal or extension hereof, at its sole expense, cause the Leased Premises to be kept clean and in a manner satisfactory to the County. 15. Surrender in Same Good Order and Condition. The Tenant shall vacate. the Leased Premises in the good order and repair in which such property now is, ordinary wear and tear excepted, and shall remove all its property therefrom so that the County can repossess the Leased Premises no later than Noon on the day upon which this Lease ends, whether upon Page 4 of 12 notice or by holdover or otherwise. The County shall have the same rights to enforce this covenant by ejectment and for damages or otherwise as for the breach of any other condition or covenant of this Lease. Tenant may at any time prior to or upon the termination of this Lease or any renewal or extension thereof remove from the Leased Premises all materials, equipment, and property of every other sort or nature installed by the Tenant thereon, provided that such property is removed without substantial injury to the Leased Premises. No injury shall be considered substantial if it is promptly corrected by restoration to the condition prior to the installation of such property, if so requested by the County. Any such property not removed shall become the property of the County. 16. Prohibition Against Unlawful or Extra - Hazardous Use and Enforcement Against Subtenants. The Tenant may use and occupy the Leased Premises for general office uses and for no other purpose without the prior written consent of County. Tenant shall not use or occupy nor permit the Leased Premises or any part thereof to be used or occupied for any unlawful business, use or purpose, nor for any business, use, or purpose deemed extra - hazardous, nor for any purpose or in any manner which is in violation of any present or future governmental laws or regulations. The Tenant shall promptly, after the discovery of any such unlawful or extra - hazardous use, take all necessary steps, legal and equitable, to compel the discontinuance of such use and to oust and remove any subtenants, occupants, or other persons guilty of such unlawful or extra- hazardous use. The Tenant shall indemnify the County against all costs, expenses, liabilities, losses, damages, injunctions, suits, fines, penalties, claims, and demands, including reasonable counsel fees, arising out of any violation of or default in these covenants. 17. County's Right to Cause Expiration or Termination upon Listed Defaults (a) The occurrence of any of the following shall constitute an event of default: 1. Delinquency in the punctual payment of any rent or additional rent payable under this Lease when such rent shall become payable. Should such rent payment not be made when due then upon the expiration of five days after the due date, such rent payment shall be delinquent. 2. Delinquency by the Tenant in the performance of or compliance with any of the conditions contained in this Lease other than those referred to in the foregoing subparagraph 1, for a period of 30 days after written notice thereof from the County to the Tenant. In the event, Tenant is incapable of curing the default within such thirty (30) day period, the County may in its discretion extend the time for as long as the County deems necessary to cure such default. Provided, however, the Tenant shall promptly and diligently commence action to cure such default and provide County with evidence of Tenant's intent to cure the default. Any additional period beyond thirty (30) days granted to Tenant to cure any default shall not be extended to jeopardize the interest of the County in this Lease or to subject the County to any civil or criminal liabilities. 3. Filing by the Tenant in any court pursuant to any statute, either of the United States or any state, or a petition in bankruptcy or insolvency or for reorganization, or for the appointment of a receiver or trustee of all or a portion of the Tenant's property, or an assignment by the Tenant for the benefit of creditors. 4. Filing against the Tenant in any court pursuant to any statute, either of the United States or of any state, of a petition in bankruptcy or insolvency, or for reorganization, or for appointment of a receiver or trustee of all or a portion of the Tenant's property, if within 180 Page 5 of 12 days after the commencement of any such proceeding against the Tenant such petition shall not have been dismissed. (b) Upon the expiration or termination of this Lease, the Tenant shall peacefully surrender the Leased Premises to the County, and the County, upon or at any time after such expiration or termination, County may, without further notice, reenter the Leased Premises and repossess it by force, summary proceedings, ejectment, or otherwise, and may dispossess the Tenant and remove the Tenant and all other persons and property from the Leased Premises and the right to receive all rental income therefrom. (c) At any time after such expiration, the County may relet the Leased Premises or any part thereof, in the name of the County or otherwise, for such term (which may be greater or less than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions (which may include concessions or free rent) as the County, in its uncontrolled discretion, may determine, and may collect and receive the rent thereof. (d) No such expiration or termination of this Lease shall relieve the Tenant of its liability or obligations under this Lease, and such liability and obligations shall survive any such expiration or termination. In the event of any such expiration or termination, whether or not the Leased Premises or any part any part thereof shall have been relet, the Tenant shall pay to the County the rent and additional rent required to be paid by the Tenant up to the time of such expiration, and thereafter the Tenant, until the end of what would have been the term of this Lease in the absence of such expiration, shall be liable to the County for, and shall pay to the County, as and for liquidated and agreed current damages for the Tenant's default: 1. The equivalent of the amount of the rent and additional rent which would be payable under this Lease by the Tenant if this Lease were still in effect, less 2. The greater of: (a) The fair rental value of the Leased Premises for the remaining term of the Lease, after deducting all the County's reasonable expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage Commissions, legal expenses, reasonable attorney's fees, alteration costs, and expenses of preparation for such reletting. (b) The net proceeds of any reletting effected pursuant to the provisions of paragraph d. of this article, after deducting the County's reasonable expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, legal expenses, reasonable attorney's fees, alteration costs, and expenses of preparation for such reletting. (e) The Tenant shall pay such current damages (herein called "deficiency ") to the County monthly on the days on which the rent and additional rent would have been payable under this Lease if this Lease were still in effect, and the County shall be entitled to recover from the Tenant each monthly deficiency as such deficiency shall arise. At any time after any such expiration, whether the County shall have collected any monthly deficiency, the County shall be entitled to recover from the Tenant, and the Tenant shall pay to the County, on demand, as and for liquidated and agreed final damages for the Tenant's default, an amount equal to the difference between the rent and additional rent reserved hereunder for the expired portion of the Lease of the Leased Premises for the same period. In the computation of such damages the Page 6 of 12 difference between any installment of rent becoming due hereunder after the date of termination and the fair and reasonable rental value of the Leased Premises for the period for which such installment was payable shall be discontinued to the date of termination at the rate-of four percent per annum. (f) The terms "enter ", "reenter ", "entry ", or "reentry" as used in this Lease are not restricted to their technical meaning. 18. Lien on Tenant's Improvements and Personal Property. The County shall have first lien paramount to all others on every right and interest of the Tenant in and to this Lease, and on any building or improvement on or hereafter placed on the Leased Premises, and on any furnishings, equipment, fixtures, or other personal property of any kind belonging to the Tenant, or the equity of the Tenant therein, on the Leased Premises. Such lien is granted for the purpose of covenanted to be paid by the Tenant, and for the purpose of securing the performance of all the Tenant's obligations under this Lease. Such liens shall be in addition to all rights of the County given under statutes of this state, which are now or shall hereinafter be in effect. The provisions of this paragraph shall not be applicable to liens existing at the commencement of this Lease. Provided, that County may, at his option, agree to subordinate this lien to liens arising about purchased of equipment or leasehold improvement financing by Tenant, which agreement County covenants not to unreasonably withhold. 19. County's Right to Receiver upon Tenant's Default. In addition to any other security for the performance of this Lease, the Tenant hereby assigns to the County all the rents and profits which might otherwise accrue to the Tenant from the use, enjoyment, and operation of the Leased Premises, such assignment to become effective, however, only after default by the Tenant in the performance of its obligations under this Lease. If the County, upon default of the Tenant, elects to file a suit in equity to enforce the Lease and protect the County's right hereunder, the County may upon notice to the Tenant, as ancillary to such suit, apply to any court having jurisdiction for the appointment of a receiver of the Leased Premises, the improvements and buildings located thereon, the personal property located therein, and thereupon the court may forthwith appoint a receiver with the usual powers and duties of receivers in like cases. Such appointment shall be made by such court as a matter of strict right to the County and without consideration of the adequacy of the value of the Tenant's interest in the Lease, or of the value of the property, or the commission of waste thereon, or the deterioration thereof. Nothing herein shall prevent the enforcement of the County's lien for rent in any court or by proceeding authorized to the laws of this state, or the institution by the County of a separate proceeding in equity for the appointment of a receiver as an ancillary remedy to protect the rights and interest of the County. Any and all remedies or proceedings are considered cumulative and not exclusive. 20. Waiver of County's Rights Only by Written Instrument. No failure by the County to insist upon the strict performance of any item or condition of this Lease or to exercise any right or remedy available on a breach thereof, and no acceptance of full or partial rent during the continuance of any such breach shall constitute a waiver of any claim, breach, or of any such term or condition. No term or condition of this Lease required to be performed by the Tenant, and no breach thereof, shall be waived, altered or modified, except by a written instrument executed by the County. No waiver of any breach shall affect or alter any term or condition in this Lease, and each such term or condition shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. Page 7 of 12 21. Performance of Tenant's Obligations - Unpaid Insurance Premiums (a) If the Tenant shall at any time fail to pay any amount in accordance with the provisions of this Lease, or shall fail to take out, keep in force, or shall fail to perform any of its other obligations under this Lease, then the County may after notice and opportunity to cure in accordance with the provisions of Section 17(a)2, or without notice if any emergency exists, and without releasing the Tenant from any obligation of the Tenant contained in this Lease, may (but shall be under no obligation to) pay any amount payable by the Tenant hereunder, and perform any other act required to be performed by the Tenant hereunder. The County may enter upon the Leased Premises for such purposes and take any action necessary therefore. (b) All sums so paid by the County and all costs and expenses incurred by the County in connection with the performance of any such act, together with interest thereon at the rate of 6% per annum from the respective dates of each such payment and such costs and expenses, shall constitute additional rent payable by the Tenant under this Lease and shall be paid by the Tenant to the County on demand. (c) Notwithstanding anything in this Lease to the contrary, the County shall not be limited, in the proof any damages which the County may claim against the Tenant by reason of the Tenant's failure to provide and keep insurance in force, to the amount of the insurance premiums not paid or incurred by the Tenant. The County shall also be entitled to recover as damages for such breach the uninsured amount of any loss, together with damages, costs, and expenses of any suit offered or incurred by reason of damage to the Leased Premises occurring during any period when the Tenant shall have failed to provide and keep such insurance in force. 22. Performance of Tenant's Obligations- Taxes. If the Tenant shall default in the performance of any tax obligation under this Lease, the County may, after notice and opportunity to cure in accordance with Section 17(a)2 or without notice if any emergency exists, perform such obligation for the account and at the expense (including reasonable counsel fees) of the Tenant. The amount of any payment made or expense incurred by the County for such purpose, with interest thereon at the rate of 6% per annum, shall be deemed additional rent and forthwith shall be repaid by the Tenant to the County, or, at the County's election, may be added to any subsequent installment of rent due and payable under this Lease. Nothing herein contained shall be deemed to waive any right of the County to sue for and recover by action at law any sums of which the County may have incurred under the provisions of this paragraph. The provisions of this paragraph shall survive the termination of this Lease. 23. Right of Entry. The County or its agent shall within twenty -four (24) hours notice have the right to enter the Leased Premises at reasonable times in order to examine it, to show it to prospective purchasers or lessees, or to make such decorations, repairs, alterations, improvements or additions as the County may deem necessary or desirable. The County shall be allowed to take all material into and upon the Leased Premises that may be required therefore without the same constituting an eviction of the Tenant in whole or in part: The rent reserved shall not abate while decorations, repairs, alterations, improvements, or additions are being made, whether by reason of loss or interruption of the business of the Tenant or otherwise. During the last month prior to the expiration of the term of this lease, the County may place upon the Leased Premises the usual notices "To Let" or "For Sale ", which notices the Tenant shall permit to remain thereon without molestation. If during the last month of the term the Tenant shall have removed all or substantially all of the Tenant's property therefrom, the County may, with the Tenant's permission, immediately enter and later, renovate and redecorate, the Leased Premises without elimination of abatement of rent and without liability to Page 8 of 12 the Tenant for any compensation, and such acts shall have no effect upon this Lease. If the Tenant or its employees shall not be personally present to permit entry at any time when an entry therein shall be immediately necessary,-as herein provided, the County may enter the premises by such means as may be appropriate, including forcible entry, without rendering the County or such agents liable therefore (if during such entry the County or his agents shall accord reasonable care to the Tenant's property), and without in any manner affecting the obligations and covenants of this Lease. The County's right of reentry shall not be deemed to impose upon the County any obligation, responsibility or liability for the care, supervision or repair of the Leased Premises other than as herein provided. In the event that it becomes necessary for County to replace or repair any major component or any structural or other system in the Leased Premises, the County shall have full and unrestricted access to the building and the Leased Premises. The County reserves the right temporarily to interrupt, curtail, stop or suspend air - conditioning and heating service, and all other utility or other services, because of accident or emergency or for repairs, alterations, additions, or improvements, or because of the County's inability to obtain, or difficulty or delay in obtaining, labor or materials necessary therefore or compliance with governmental restrictions in connection therewith, or because of any other cause beyond the County's reasonable control, provided that, except in cases of emergency, the County will use its best efforts to limit such stoppage to after - business hours, will notify the Tenant in advance, if possible, of any such stoppage, and, if ascertainable, its estimated duration, and will proceed diligently with the work necessary to resume such service as promptly as possible and in a manner and at times as will not materially interfere with or impair the Tenant's use of the Leased Premises. No diminution or abatement of fixed rent or other compensation shall be claimed by the Tenant, nor shall this Lease or any of the obligations of the Tenant hereunder be affected or reduced by reason of such interruption, stoppage, or curtailment, nor shall the same give rise to a claim in the Tenant's favor that such failure constitutes total or partial eviction from the Leased Premises, provided that if the Leased Premises shall be unreasonably untenantable for a continuous period of more than four business days by reason of any such stoppage, the fixed rent payable by the Tenant shall abate until the Tenant shall be again able to use the Leased Premises. 24. Destruction by Fire or Other Casualty. In the event the premises or any substantial portion thereof are destroyed by fire or other casualty during the term of this Lease, it is understood and agreed that County shall have no obligation to rebuild and, at the election of County or Tenant, the Lease may be terminated. 25. Condemnation. If the whole of the Leased Premises, or such portion thereof as will make the Leased Premises unsuitable for the purposes herein leased, is condemned for any public use or purpose by any legally constituted authority, then in either of such events this Lease shall cease from the time when possession is taken by such public authority and rental shall be accounted for between the County and the Tenant as of the date of the surrender of possession. Such termination shall be without prejudice to the rights of either the County or the Tenant to recover compensation from the condemning authority for any loss or damage caused by such condemnation. Neither the County nor the Tenant shall have any rights in or to any award made to the other by the condemning authority. 26. Assignment of Lease. The Tenant shall not assign, mortgage, or encumber this Lease, nor sublet or permit the Leased Premises or any part thereof to be used by others, without the prior written consent of the County in each instance. Tenant may request an assignment authority from County. Such authority may only be granted in a written instrument approved by County. If this Lease is assigned, or if the Leased Premises or any part thereof, is sublet, or occupied by anybody other than the Tenant, the County may, after an event of default, Page 9 of 12 as hereinabove defined, by the Tenant, collect rent for the assignee, subtenant, or occupant and apply the net amount collected to the rent herein reserved. No such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of this assignee, subtenant, or occupant as tenant, or a release or amendment of covenants in this Lease. The consent by the County to an assignment or subletting shall not be construed to relieve the Tenant from obtaining the consent in writing of the County to any further assignment or subletting. 27. Assignment of Interest in Rents. The County shall have the right, without selling its fee interest in the Leased Premises or assigning its interest in this Lease, to assign from time to time the whole of the net rent at any time payable hereunder to persons, firms, corporations, trusts or other entities designated by the County in a written notice to the Tenant, and in any such case the Tenant shall pay the net rent, subject to the terms of this Lease, to the County's designee at the address mentioned in any such notice for the period covered by such assignment. 28. Exoneration from Liability. The County shall not be liable and Tenant shall indemnify and defend County for any personal injury to the Tenant or to its officers, agents and employees, or to any other occupant of or invitee to any part of the Leased Premises, regardless of how such injury or damage may be caused, whether from action of the elements or acts of negligence of the occupants of adjacent properties, or any other persons; provided that nothing contained herein shall relieve the County of the consequences of its own negligence. 29. Reimbursement of Expenses. The Tenant shall defend and indemnify the County against all legal costs and charges, including counsel fees lawfully and reasonably incurred, in obtaining possession of the Leased Premises after default of the Tenant or after the Tenant's default in surrendering possession upon the expiration or earlier termination of the term of the Lease or enforcing any covenant of the Tenant herein contained. The Tenant further covenants that in case the County shall be made party to any litigation commenced against the Tenant, due to act or omission on the part of the Tenant alone, then the Tenant shall pay all expenses, costs, and reasonable attorney's fees incurred by or imposed on the County in connection with such litigation, and such expenses, costs, and attorney's fees shall be additional rent due on the last day after services of notice of such payment or payments, together with interest at a rate of 9% per annum from the date of payment, and shall be collected as any other rent specifically reserved herein. Provided that this claim shall not be .applicable where the County shall be made a party by reason of any independent liability of the County caused by some act or omission on the part of the County or resulting from any act or omission on the part of both Tenant and County. 30. Smoke Free Facility. Tenant acknowledges that County buildings are smoke - free. Tenant shall ensure that employees, customers or invitees of the Tenant abide by the County's ordinances and Board of Health Rules which prohibit smoking. 31. Weapons Prohibited. Tenant acknowledges that by law weapons are prohibited in County facilities. Tenant will ensure that employees, customers, or invitees of the Tenant abide by the County's ordinance that prohibits weapons in the facility. 32. Notice by Registered or Certified Mail. Any notice under this Lease must be in writing and must be sent by registered or certified mail to the last address of the party to Page 10 of 12 whom the notice is to be given, as designated by such party in writing. The County hereby designates its address as: Orange County Attn: Director of Asset Management 131 West Margaret Lane; Suite 301 PO Box 8181 Hillsborough, NC 27278 919- 245 -2658 The Tenant hereby designates his address as: Immersion for Spanish Language Acquisition (ISLA) Attn : Executive Director 501 W. Franklin Boulevard Suite 200 Chapel Hill, NC 27516 Telephone — 919- 644 -2507 33. Grammatical Usage. In construing this Lease feminine or neuter pronouns shall be substituted for those masculine in form and vice versa, and plural terms shall be substituted for singular and singular for plural in any place in which the context so requires. 34. Memorandum of Lease. In lieu of recording this Lease County and Tenant may execute a Memorandum of Lease for recordation. Such Memorandum of Lease shall comply with Article 8 of Chapter 47 of the North Carolina General Statutes. 35. Entire Agreement. This Lease contains the entire agreement between the parties, and any executory agreement hereafter made shall be ineffective to change, modify, or discharge it in whole or in part, unless such executory agreement is in writing and signed by the party against whom enforcement of the change, modification or discharge is sought. [Signature Page to Follow] Page 11 of 12 IN TESTIMONY WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. 00 /600t!.�.,St (N STATE OF NORTH CAROLINA ORANGE COUNTY WITNESS: Acquisition (ISLA) a Notary Public for said County and State, do hereby certify that Donna S. Baker personally appeared before me this date and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by sealed with its official seal, and attested by herself as its Clerk. iA� lwxr n Witness my hand and official seal, this the +� day of �� , 42W 2-01 a ILA Notary Public My Commission expires: t? �L SEAL North Carolinra STATE OF NORTH CAROLINA COUNTY HUR1T COUNTY OF ORANGE I, ll-kwi Ll!;z 6L. , a Notary Public, do hereby certify that ,C e I&II'veL, personally appeared befo a me this day and acknowledged the due exe tion of the foregoing Lease Agreement. Y WITNESS my hand and official seal this the Z day of �L No ry Public My commission expires: 3 �••... ALLISON ELY COOPER (� Notary Public " North Carolina Alamance County Page 12 of 12 t,,)RA GE COUNT Y NORTH C1AROLINA 591 Zest Franklin Street (PIN 9788151998) R MiE COUN NOWIII CAROLINA t� 40 L!, /lD 531 'Y V. FRANKLIN 'SHEET SECOND FLOOR STE. 20D 1RXES -2018 -041 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION LEASING PROPERTY UP TO TEN YEARS Whereas, Orange County owns Suite 200 located at 501 West Franklin Street, Chapel Hill, NC 27516, comprising approximately 800 conditioned square feet (the "Premises "); and Whereas, Immersion for Spanish Language Acquisition, Incorporated, a North Carolina Corporation, desires to lease the Premises; and Whereas, Immersion for Spanish Language Acquisition, Incorporated provides valuable services to the citizens and residents of Orange County valued at $605 per month and the lease and any renewal will reflect an in -kind payment; and Whereas, Immersion for Spanish Language Acquisition, Incorporated supports the Social Justice goals of the Board of Orange County Commissioners and wishes to continue to grow its operation within Orange County; and Whereas, North Carolina General Statute 160A -272 authorizes the lease of County - owned properties for terms of up to ten years upon resolution of the Board of Commissioners at a regular meeting after thirty days' public notice; and Whereas, in consideration of the valuable services provided to the citizens and residents of Orange County by Immersion for Spanish Language Acquisition, Incorporated valued at $605 per month, the Board of Commissioners of Orange County desires to lease the Premises to Immersion for Spanish Language Acquisition, Incorporated, the required notice has been published and the Board of Commissioners is convened at a regular meeting. THEREFORE BE IT RESOLVED, that Board of County Commissioners hereby approves the lease of the County property described _above to Immersion for Spanish Language Acquisition, Incorporated for a term of two years commencing July 1, 2018 with two potential and consecutive renewal terms of one year each, ratifies the signed lease, and directs the execution, registration, and filing of all necessary instruments accordingly. This the 5th Day of June, 2018. Mark Dorosin, Chas Orange County Board of Commissioners ISLA -01 OP ID- JB ACORO" CERTIFICATE OF LIABILITY INSURANCE DA04 /16 /2018 ) 04/16/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on .this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 773- 754 -0849 S. Wolf and Associates, Inc. 2338 W. Morse Chicago, IL 60645 Polly Kosyla CONTACT NAME: PHONE 773- 754 -0849 FAX (A /C, No, Ext): (A /C, No): ADDRESS: LIMITS A X INSURERS AFFORDING COVERAGE NAIC # INSURER A: Great American 16691 09/05/2017 INSURED I.S.L.A. Chapel Hill, NC PO Box 16278 INSURER B: $ 1,000,000 INSURER C: DAMAGE TO R NT D ce PREMISES Chapel Hill, NC 27516 INSURER D: MED EXP (Any one person) $ 5,000 INSURER E: INSURER F: COVFRAGFS r;=PTIFIrATF KII IMQP:P- MCI /! ff!r% THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE DDL UBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE FX] OCCUR Y GLP1138542 09/05/2017 09/05/2018 EACH OCCURRENCE $ 1,000,000 DAMAGE TO R NT D ce PREMISES $ 100,000 MED EXP (Any one person) $ 5,000 PERSONAL & ADV INJURY $ 1,000,000 AGGREGATE LIMIT APPLIES PER: POLICY 0 jpo 7 LOC GENERAL AGGREGATE $ 2,000,000 GEN'L PRODUCTS - COMP /OP AGG $ 1,000,000 OTHER: AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT accident) $ BODILY INJURY Per person) $ ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY Per accident $ AUTOS ONLY AUUTNOS ONLY R ( OPER_ent AMAGE dd $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAR CLAIMS -MADE DED RETENTION $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE FICERR/M�MBE EXCLUDED? andatory m NH) If yes, describe under N / A STERTUTE OTH- A ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYE $ E.L. DISEASE - POLICY LIMIT DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Orange County is an additional insured with respects to General Liability when required by written contract or agreement, but solely with respect to that organizations liability arising out of the named insured's operations or premises owned by the named insured. In regards to 501 West Franklin St. #200 Chapel Hill, NC 27516 Orange County PO Box 8181 Hillsborough, NC 27278 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE AL;URD 25 (2016/03) ©1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD