Loading...
HomeMy WebLinkAboutAgenda - 05-04-2004-9dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 4, 2004 Action Agenda Item No. SUBJECT: Lease Approval: Parks Operations Base DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services, Recreation & Parks ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, (919) 245-2652 Lease Lori Taft, (919)245-2660 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving athree-year lease for space to be used as a parks operations base. BACKGROUND: The advent of parks development in the County has given rise to the need to develop an operations base specifically for the parks function, The approved 2003-2004 Recreation and Parks operating budget includes limited funding for this item. The building selected is currently under construction. If approved, occupancy could occur late in the month of .June, The facility will include two garage bays, a small office area, restrooms, and workshop space totaling 4,000 square feet. In addition, 3,500 square feet of exterior space will be included for secure overnight parking of the department's rolling stock and for short term storage of bulk items to be used in parks, such as mulch, compost, etc, The urgency of this need lies with the incoming equipment. Four pieces of equipment are currently housed at the Blackwood farm, There is no additional space available at this location, There is no opportunity at the Blackwood location to manage this equipment as needed. The parks services function requires that equipment be brought inside for lubrication and maintenance, and to allow far productivity during inclement weather, The tractor and attachments expected in the near future will also require the care and management that the garage bays in the proposed rental facility will allow. The shop space will be required for carpentry (picnic tables, play structure repair, kiosk and sign construction) and painting and machine work.. The office will be utilized for current full time employees, Staff has considered other County owned properties where this could be accomplished, but neither the Public Works facility nor any other location has been identified that can meet these needs, The current Recreation and Parks offices have no space of this kind whatsoever. A lease with terms as cited below has been negotiated for appropriate space at 503 Cornerstone Court, Hillsborough (close to the intersection of Highways 86 and 70A): • Term of lease: 3-years, beginning July 1, 2004 and ending ,June 30, 2007, The langer- term solution will involve constructing a building for this purpose on property already owned by the County; however, the specific location has yet to be determined. In the event such a structure is not available by .June 30, 2007, the lease also includes one three-year renewal, upon mutual agreement of both parties. • The building is currently under construction, Should it become available prior to July 1, 2004, the Landlord has agreed to allow early move in at the rate of $80 per day, • Lease amount: $32,640 annually for the three-year lease term. • County pays utilities and provides janitorial services. • Landlord assumes all other maintenance responsibilities for the leased premises. FINANCIAL IMPACT: Funds to support the lease beginning July 1, 2004 have been included in the Recreation and Parks Department 2004-2005 budget request. Funds to support early move-in ($80/day), if any, are available in the Department's current year operation budget, RECOMMENDATION(S): The Manager recommends that the Board approve athree-year lease with JCBH Properties, LLC for approximately 4,000 square feet of interior space and 3,500 square feet of exterior storage area at 503 Cornerstone Court, Hillsborough, per the terms and conditions herein cited; and authorize the Chair to sign on behalf of the Board, REAL E S T A T E THIS 1 EASE, made this _ day of Aprlt _ , 20 04 , by and between . JCBN Properties, LLC _ ("Landlord") whose address is 510 Cornerstone Court, Nillsborough, NC 27278 and County of Orange ("Tenant")whose address is ___ _. __ P.O. Box 8181 Hillsborough, NC 27278 _; WITNESSETH: 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 performed by Tenant, leases and rents unto Tenant, and Tenant hereby leases and takes upon the terms and conditions which hereinafter appear, the following described property (hereinafter called the "Premises"), to wit: Address: 503_Cornerstone Court, Hillsborough, NC 27278 .. __ __ Legal Description: Approximately 4000 SF of space located to a commercial building and rear -- outside storage at Cornerstone Court In Htllsborouglr,_NC, P/N 9874-40-4766 D8 3046/258 See attached Exhibit A for legal description of premises. TERM 2. The Tenant shall have and hold the Premises for a term of _ ,. three (3) veers' beginning on the 1st day of JuIV""' , 20. 04 ,and ending on the 302h day of June 20 07 , at midnight, unless sooner terminated as hereinater provided.. The first Lease Year Anniversary shat] be the date twelve (12) calendar months after the first day ofthe first full month of the term hereof and successive Lease Year Anniversaries shall be the date twelve (12) calendar months from the previous Lease Yeaz Anniversary. RENTAL 3. Tenant agrees to pay Landlord or its Agent without demand, deduction or set off, an annual rental of $ 32,640.00 payable in equal monthly installments of $ 2,720.00 in advance on the first day of each calendar month during the term hereof. Llpon execution of this Lease, Tenant shall pay to Landlord the first month's rent due hereunder. Rental for any period during the term hereof which is less than one month shall be the pro-rated portion of the monthly rental due. On each Lease Year Anniversary the annual rental payable hereunder (and accordingly the monthly installments) shalt be adjusted: L by any change in the Consumer Price Index, Urban Wage Earners and Clerical Workers, All Cities (CPI-W, 1982-1984=100) ("Index") by multiplying the then effective annual rental by the value of said Index for the month two months prior to the Lease Year Anniversary and dividing the product by the value of said Index for the month two months prior to the previous Lease Year Anniversary (in the instance of the first Lease Year Anniversary the value of the Index for the month rivo months prior to the first full month of the term hereof).. In the event the Index ceases to be published, there shall be substituted for the Index the measure published by the US Depaztment of Labor which most nearly approximates the Index; r as follows: 'Tenant shalt have the right fo renew the lease for three addltlonaf years with 90 tice at an annual rate of $35,000 or as soon as It Is available In June (at Tenant's opdon} based on a daily rent Page I of 8 ® North Carolina Association of REALTORS®, Inc, ~a~ran• Tenant Initials Landlord Initials COMMERCIAL LEASE AGREEMENT STANDARD EORM 590-T ~'o µ~:" © 7/2002 Tivs loan paducea6y FOr/IIU/`7tO1'Fams Sdtwam A0a-37&1027 ^ [f this box is checked, Tenant shall pay all rental [o Landlord's Agent ai the following address: N/A_._ - LATE CHARGES 4. If Landlord faits [o receive any rent payment within _, fifteen (1~-days after it becomes due, Tenant shall pay Landlord, as additional rental, a late charge equal to __ . five percent 5 _ (%) of the overdue amount or $ _ _ N/A _ whichever is greater, plus any actual bank Pecs incurred for returned or dishonored checks. The parties agree that such a late charge represents a fair and reasonable estimate of the cost Landlord will incur by reason of such late payment. SECURITY DEPOSIT 5. Tenant shall deposit with Landlord or its Agent upon execution of this Lease $ - -_0 as a security deposit which shall be held as security for the fall and faithful performance by Tenant of each and every term, covenant and condition of this Lease. If any of the rents or other charges or sums payable by Tenant shall be over-due and unpaid or should payments be made on behalf of Tenant, or should Tenant fait to perform any of the terms of this Lease, then t andlord 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 other sums due from Tenant, or towards any toss, damage or expense sustained by Landlord resulting from such default on the part of'the Tenant; and in such event Tenant shall upon demand restore the security deposit to [he original sum deposited. In the event Tenant furnishes Landlord with proof that all utility bills have been paid through the date of Lease termination, and performs all of Tenant's other obligations under this Lease, the security deposit shall be returned in full to Tenant within thirty (.30) days after the date of the expiration or sooner termination of the term of this Lease and the surrender of the Premises by Tenant in compliance with the provisions of this i.ease, The Security Deposit may be placed in nn interest bearing account and any interest thereon shall be the property of the party holding the same, ^ If this box is checked, Agent shall hold [he Security Deposit and shalt be entitled to the interest thereon. UTiL1TY BILLS 6. (a) Tenant shall pay the following utilities: Wafer, sewer,_electric and natufal gas (elf utilitiesZ_ __ -- .. - (b) Landlord shall pay the following utilities: N/A _ - Responsibility to pay for a utility service shall include all metering, hook-up fees or other miscellaneous charges associated with the installation and maintenance of such utility in said party's name. COMMON AREA COSTS; RULES AND RGCULATIONS 7. If the Premises aze part of a larger building or group of buildings, Tenant shall p¢y as additional rental monthly, in advance, its pro rata share of common area maintenance costs as heremafler more pazticularly set forth in the Special Stipulations (see Paragraph 38) The Rules and Regulations, if any, attached hereto are made a part of this Lease. Tenant agrees to perfomt and abide by these Rules and Regulations, if any, and such other Rules and Regulations, if any, as may be made from time to time by Landlord. USE OT PREMISES 8. The Premises shall be used for Parks and Recreation offices and warehouse _- . . purposes only and no other.. The Premises shall not 6e u~-for any illegal purposes, nor in any manner to create any nuisance or trespass, nor in any manner to vitiate the insurance or increase the rate of insurance on 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 demand and as additional rental, the amount of any such increase. Page 2 of 8 STANDARD FORM 590-7 © 712002 Tenant Initials Landlord Initials Ttnsfwm piaducad byFOlrrrtll[?COl~Fame S°Ilware 8003]8-10tT 5~ TAX AND INSURANCE ESCALATION 9. Tenant shall pay upon demand as additional rental during the term of this Lease, and any extension or renewal thereof; The amount by which all taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for ench tax year' exceed alt taxes on the Premises for the tax year _ N/A ; or (": All [axes (including, but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for each tax year. in the event the Premises are less than the entire property assessed f'or such taxes for any such tax year, then the tax for any such year applicable to the Premises shall be determined by proration on the basis that the rentable floor area of the Premises bears to the rentable toor area of the entire property assessed- If the final yeaz of the Lease term faits to coincide with the tax year, then any excess for the tax year during which the term ends shall be reduced by the pro rata part of such tax year beyond the Lease term. If such taxes for the year in which the Lease terminates are not ascertainable before payment of the Iasl month's rental, then the amount of such taxes assessed against the property for the previous tax year shall be used as a basis for determining the pro rata share, if any, to be paid by Tenant for that portion of the last Lease year. Tenant shall further pay upon demand as additional rental during the term of this Lease, and any extension or renewal thereof: the excess cost of fire and extended coverage insurance including any and all public liability insurance on the building over the cost of the first year ofthe Lease term fot each subsequent year during the term of this Lease; or O all fue and extended coverage insurance including any and all public liability insurance on the building.. In the event the Prernises ate less than [he entire property, then the insurance payable by Tenant for the Premises shall be determined by proration on the basis that the rentable floor area of the Premises bears to [he rentable floor area of the entire property. Tenant shall pay alt taxes and insurance as provided herein within fifteen (15) days aRer receipt of notice from Landlord as to the amount due. Tenant shall be solely responsible for insuring'I'enant's personal and business property and far paying any taxes or govemmentat assessments levied thereon 70. To the extent permitted by North Carotins law and the insurance policies owned by/ 1NDEMNITY;INSURANCE covering the Tenant, 48r Tenant agrees to and hereby does indemnify and save Landlord harmless against all claims for damages to persons or property by reason of Tenant's use or occupancy of the Premises, and all expenses incurred by Landlord because thereof, including attorney's fees and court costs. Supplementing the foregoing and in addition thereto, Tenant shall during the term of this Lease and any extension or renewal thereof, and at Tenant's expense, maintain in full force and effect comprehensive general liability insurance with limits of $ 1,OOD,000 per person and $ 1.000,000 per accident, and property damage limits of $ __ inClUded in peI pgrsorr limtt ,which insurance shall contain a special endorsement recognizmg and insuring any liability accruing to Tenant under the first sentence of this paragraph and naming Landlord as additional insured. Tenant shall provide evidence of such insurance to Landlord prior to the commencement of the term of this Lease. Landlord and Tenant each hereby release and relieve the other, and waive any right of recovery, for loss or damage arising out of or incident to the perils insured against which perils occur in, on or about the Premises, whether due to the negligence of Landlord or Tenant or [heir agents, employees, contractors and/or invitees, to the extent that such loss or damage is within the policy limits of said comprehensive genera! liability insurance Landlord and Tenant shall, upon obtaining the policies of insurance required, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease, REPAIRS BY LANDLORD 71.. L,and(ord agrees to keep in good repair the roof, foundation and exterior walls of the Premises (exclusive of alt glass and exclusive of all exterior doors) and underground utility and sewer pipes outside the exterior walls of the building, except repairs rendered necessary by the negligence or intentional wrongful acts of Tenant, its agents, employees or invitees, If the Premises are part of a larger building or group of buildings, then to the extent that the grounds are common areas, Landlord shall maintain the grounds surrounding the building, including paving, the mowing of grass, care of shrubs and general landscaping. Tenant shall promptly report in writing to Landlord any defective condition known to it which Landlord is required to repair and failure to report such conditions shall make Tenant responsible to Landlord for any liability incurred by Landlord by reason of such conditions. Page 3 of A STANDARD FORM 590-T O 7/2002 Tenant Initials Landlord Initials TNs lampciYSOtl tr/Farmu/Htor"Fomis So+lvrere eoo-aae~totr REPAIRS 13Y'I'ENANT Landlord L2, Tenant accepts the Premises in their present condition and as suited for the uses intended by Tenant.' bshall, throughout the initial teen of this Lease, and any extensron or renewal thereof, at its expense, maintain in good order and repair the Premises, including the building, heating and air conditioning equipment (including but no[ limited to replacement of parts, compressors, air handling units and heating unrts) and other improvements located thereon, o ~ ' .Tenant agrees to return the Premises to L~andlord~at the expiration or prior termination of'this Lease, in as good condition and repair as when first received, natural wear and tear, damage by storm, fire, lightning, earthquake or other casualty atone excepted. Tenant, Tenant's employees, agents, contractors or subcontractors shall take no action which may void any manufacturers or installers warranty with tetatton to the Premises Tenon[ shall indemnify and hold Landlord harmless from any liability, claim, demand or cause of action arising on account of Tenant's breach of the provisions of this paragraph. ALTERATIONS 1.3. Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord's prior written consent, Tenant shall promp8y remove any alterations, additions, or improvements consvucted in violation of this Paragraph upon Landlord's written request. All approved alterations, additions,and improvements witl be accomplished in a good and workmanlike manner, in conformity will all applicable laws and regulations, and by a contractor approved by Landlord, free of any liens or encumbrances. Landlord may require Tenant [o remove any alterations, addthons or improvements (whether or not made with Landlord's consent) at the termination of the Lease and to restore the Premises to its prior condition, all at Tenant's expense. Alt alterations, additions and improvements which Landlord has not required Tenant to remove shall become Landlord's property and shall be surrendered to Landlord upon the termination 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 shalt repair, at Tenant's expense, any damage to the Premises caused by the removal of any such machinery or equipment. REMOVAL OF FIXTURES 14. Tenant may (if not in default hereunder) prior to the expiration of this Lease, or any extension or renewal thereof, remove alt fixtures and equipment which it has placed in the Premises, provided Tenant repairs all damage to the Premises caused by such removal. DESTRUCTION OF OR DAMAGE 70 PREMISES 15. If the Premises are totally destroyed by storm, fire, lightning, earthquake or 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. [f the premises are damaged but not wholly destroyed by any such casu¢lties, rental shall abate in such proportion as effective use of the Premises has been affected and Landlord shalt restore Premises to substantially the same condition as before damage as speedily as is practicable, whereupon full rental shall recommence. GOVERNMENTAL ORDF,RS 1G. Tenant agrees, at its own expense, to comply promptly with all requirements of any legally constituted public authority made necessary by mason of Tenant's occupancy of [he Premises.. Landlord agrees to comply promptly wtth any such requirements if not made necessary by reason of 7enan['s occupancy. It is mutually agreed, however, between Landlord and Tenant, that if in order to comply with such requirements, the cost to Landlord or Tenant, as [he case maybe, shall exceed a sum equal to one year's rent, then Landlord or Tenant, whichever is obligated to comply with such requirements, may terminate this Lease by giving written notice of termination to the other party by registered mail, which terrninahon shall become effective sixty (GO) days after receipt of such notice and which notice shall eliminate the necessity of compliance with such requirements by giving such notice unless the party giving such notice of termination shall, before terminatwn becomes effective, pay to rho party giving notice all cost of compliance in excess of one year's rent, or secure payment of said sum in manner satisfactory to the party giving notice. CONDEMNATION 17 If the whole of the Premises, or such portion thereof as will make the Premises unusable for the purposes herein teased, is condemned by any legally constituted authority for any public use or purpose, [hen in either of said events the term hereby granted shall cease from the date when possession thereof is taken by public authorities, and rental shad be accounted for as between Landlord and Tenant as of'said date, Such termination, however, shall be without prejudice [o 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 Tenant shall not have any rights in any award made to Landlord by any condemnation authority. Page 4 of 8 STANDARD FORM 590-T ~ 7/2002 Tenant Initials Landlord Initials TNSfam ptalirsd q•FOl?!7U/HL'OlfFam+sollwara 800330-1027 ASSIGNMENT AND SUBLETTING 18 Tenant shall not, without the prior written consent of Landlord, which shall not be unreasonably withheld, assign this Lease or any interest hereunder, or sublet the Premises or any part thereof, or permit the use of the Premises by any party other than the Tenant Consent to any assignment or sublease shall not impair this provision and all later assignments or subleases shall be made likewise only on the prior written consent of Landlord. The Assignee of Tenant, at option of Landlord, shalt become directly liable to Landlord for all obligations of Tenant hereunder, but no sublease or assignment by Tenant shall relieve Tenant of any liability hereunder. EVENTS OF DEFAULT 19 The happening of any one or more of the following events (hereinafter any one of which may be referred to as an "Event of Default") during the term of'this Lease, or any renewal or extension thereof; shall constitute a breach of [his Lease on the part of the Tonant: (a) Tenant fails to pay the rental as provided for herein; (b) Tenant abandons or vacates the Premises; (c) Tenant Fails to comply with or abide by and perform any other obligation imposed upon Tenant under this Lease; (d) Tenant is adjudicated bankrupt; (e) A permanent receiver is appointed for Tenant's property and such receiver is not removed within sixty (60) days after written notice from Landlord to Tenant to obtain such removal; (t) Tenant, either voluntarily or involuntarily, takes advantage of any debt or relief proceedings under any present or future law, whereby the rent or any part Utereof'is, or is proposed to be, reduced or payment thereof deferred; (g) Tenant makes an assignment for benefit of creditors; or (h) Tenant's effects are levied upon or attached under process against Tenant, which is not satisfied or dissolved within thirty (30) days after written notice from Landlord to Tenant to obtain satisfaction thereof. REMEDIES UPON DEFAULT 20. Upon the occurrence of Event of Default, Landlord 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 Event of Default involves nonpayment ofrenta] and Tenant fails to cure such default within five (5) days after receipt of written notice thereof from Landlord, or if the Event of Default involves a default in performing any of the terms or provisions of this Lease other than [he payment of rental and Tenant fails to cure such default within fifteen (IS) days aRer receipt of written notice of default from Landlord, Landlord may terminate this Lease by giving written notice to Tenant and upon such termination shall be entitled to recover from Tenant damages as may be permitted under applicable law; or (b) if the Event of Default involves any matter other than those set forth in item (a) of this paragraph, Landlord may terminate this Lease by giving written notice to 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 would otherwise have become due throughout the remaining term of this Lease, or any renewnl or extension thereof (as if this Lease had not been terminated); or (c) upon any Event of Default, Landlord, as Tenant's agent, without terminating this Lease, may enter upon and rent the Premises, in whole or in pari, at the best price obtainable by reasonable effort, without advertisement and by private negotiations and for any term Landlord deems proper, with Tenant being liable to Landlord for the deficiency, if any, between Tenant's rent hereunder and the price obtained by Landlord on relet[ing, provided however, that Landlord shall not be considered [o be under any duty by reason of this provision to take any action to mitigate damages by reason of Tenant's default. In the event Landlord hires an atiomey to enforce its rights upon default, Tenant shall in addition be liable fm'reasonable attorney's fees and all costs of collection- EX7ERIORSIGNS 21. ~fenant shall place no signs upon the outside walls or roof of the Premises, except with the express written consent of the Landlord. Any and al] signs placed on the Premises by Tenant shall be maintained in compliance with governmental rules and regulations governing such signs and Tenant 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 ENTRY OF PREMISES 22. Landlord may advertise the Premises "For Rent" or "For Sale" 180 _ days before the termination of this Lease. Landlord may enter the Premises at reasonable hours to exhibit snme to prospective purchasers or tenants and to make repairs required of Landlord under the terms hereof or to make repairs to Landlord's adjoining property, if any EFFECT OF TERMINATION OF [.EASE 2:3. No termination of this Lease prior to the normal ending thereof, by lapse of time or otherwise, shall affect Landlord's right to collect rent for the period prior to termination thereof MORTGAGEE'S RIGHTS 24. Tenant's righu shall be subject to any bona fide mortgage, deed of trust or other security interest which is now or may hereafter be placed upon the Premises by Landlord. Tenant shall, if requested by Landlord, execute a separate agreement reflecting such subordination, and shall be obligated [o execute such documentation as may facilitate Landlord's sale or refinancing of the Premises, including, but not limited to, estoppel certificates, subordination or attornment agreements. Page 5 of 8 STANDARD FORM 590-T ® 7!2002 Tenant Initials Landlord Initials msro~mProo,~dcvFormu/ator"r~ssoino~ 8003761917 QUIET ENJOYMENT 25. So long as Tenant observes and performs the covenants and agreements contained herein, i[ shall at all times during the Lease term peacefully and quietly have and enjoy possession of the Premises, but always subject to the terms hereof Provided, however, that in the event Landlord shall sell or otherwise transfer its interest in the Premises, Tenant agrees to attorn to any new owner or interest holder and shall, if requested by Landlord, execute a sepaza[e agreement reflecting such attornment, provided that said agreement requires the new owner or interest holder to recognize its obligations and Tenant's rights hereunder. HOLDING OVER 26 H Tenant remains in possession of the Premises after expiration of the term hereof, with Landlord's acquiescence and without any express agreement of the parties, Tenant shalt be a tenant at will at the rental rate which is in effect at end of this Lease and there shall be no renewal of this Lease by operation of law. if Tenant remains in possession of the Premises after expiration of the term hereof without Landlord's acquiescence, Tenant shall be a tenant at sufferance and commencing on the date following the date of such expiration, the monthly rental 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 above, ATTORNEY'S FEES 27 In the event that any action or proceeding is brought to enforce any term, covenant or condition of this Lease on the part of Landlord or Tenant, the prevailing party in such IitigaNon shall be entitled to recover reasonable atomey's fees and costs. RIGHTS CUMULATIVE 28 All rights, powers and privileges conferred hereunder upon parties hereto shall be cumulative and not restrictive of those given by taw,. WAIVER OF RIGHTS 29. No failure of Landlord to exercise any power given Landlord hereunder or to insist upon strict compliance by Tenant of'its obligations hereunder and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Landlord's right to demand exact compliance with the terms hereof. ENVIRONMENTAL LAWS 30. (a) Tenant shall not bring onto the Premises any Hazardous Materials (as defined below) without 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 covenants that it will (1) comply with all requirements of any constituted public authority and all federnl, state, and local codes, statutes, rules and regulations, and laws, whether now in force or hereafter ¢dopted relating to Tenant's use of the Premises, or relating to [he storage, use, disposal, processing, distribution, shipping or sales of any hazazdous, 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 of either Landlord or Tenant relating to the use by Tenant on the Premises of such Hazardous Materials; (3) refrain from unlawfully disposing of or allowing the disposal of any Hazardous Materials upon, within, about or under 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) Tenant shall be responsible for obtaining all necessary permits in connection with its use, storage and disposal of Hazardous Materials, and shall develop and maintain, and where necessary file with the appropriate authorities, all reports, receipts, manifests, filings, lists and invoices covering those Hazardous Materials and Tenant shall provide Landlord with copies of all such items upon request.. Tenant shall provide within five (5) days aRer receipt thereof, copies ot'all notices, orders, claims or other correspondence from any federal, state or local government or agency alleging any violation of any environmental law or regulntion by Tenant, or related in any manner to Hazardous Materials.. In addition, Tenant shall provide Landlord with copies of all responses to such correspondence at the time of the response. (c) To the extent permitted by North Carolina law and the insurance policies owned by/covering the Tenant, {ej Tenant hereby indemnifies and holds harmless Landlord, its successors and assigns from and against any and alt losses, liabilities, damages, injuries, penalties, fines, costs, expenses and claims of any and every kind whatsoever (including attorney's Fees and costs, expenses or claims asserted or arising under the Comprehensive Environmental Response, Compensation and L~iabihty Acl of 1980, as amended, from time to time, and regulations promulgated thereunder, any so-called state or local "Superfund" or "Superlien" law, or any other federal, state or local statute, law or ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Materials) paid, incurred or suffered 6y, or asserted against, Landlord as a result of any claim, demand or judicial or administrative action by any person or entity (including governmental Page 6 of 8 STANDARD FORM 590-T o vzooz Tenant Initials L,aadlord Initials rre:mm,pmdu~mrryFormula[ar"ram,sdwao eooaas.tov or private entities) for, with respect to, or as a direct or indirect result of, [Ire presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release from the Premises ofany Hazardous Materials caused by Tenant or Tenant's agents, employees, invitees or successors in interest- This indemnity shall also apply to any release of Hazardous Materials caused by a fire or other casualty to the premises if such Hazardous Materials were stored on the Premises by Tenant, its agents, employees, invitees or successors in interest. (d) If Tenant fails to comply with the Covenants [o be performed hereunder with respect to Hazardous materials, or if an environmental protection lion is tiled against the premises as a result of the actions of Tenant, its agents, employees or invitees, then the occurrence of any such events shall be considered a default hereunder. (e) Tenant will give Landlord prompt notice of any release of Hazardous Materials, reportable ornon-reportable, to federal, state or' local authorities, of any fire, or any damage occurring on or to the Premises.. (f) Tenant will use and occupy the Premises and conduct its business in such a manner that [he Premises are neat, clean and orderly a[ all times with all chemicals or Hazardous Materials marked for easy identification and stored according to al] codes as outlined above- (g) The warranties and indemnities contained in this Paragraph shall survive the termination of this Lease. TIME OF ESSENCE 31. Time is of the essence in this Lease ABANDONMENT 32. Tenant shall not abandon the Premises at any time during the Lease term. If Tenant shall abandon the premises or be dispossessed by process of law, any Personal Property belonging to Tenant and leR on the Premises shall, at the option of Landlord, be deemed abandoned, and available to Landlord to use or Boll to offset any rent due or any expanses incurred by removing same and restoring the Premises. DEFINITIONS 33. "Landlord" as used in this Lease shall include the undersigned, its heirs, representatives, assigns and successors in title to the Premises. "Agent" as used in this Lease shall mean the party designated as same in Paragraph 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 also Tenant's assignees or sublessees as to the Premises covered by such assignment or sublease. "Landlord", "Tenant", and "Agent" include male and female, singular and plural, corporation, partnership or individual, as may fit the particular parties. NOTICES 34. All notices required or permitted under this Lease shall be in writing and shall be personalty delivered or sent by U.S. certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered or sent to the address shown at the beginning of this Lease, except that upon Tenant taking possession of the Premises, then the Premises shall be Tenant's address for such purposes. Notices to Landlord shalt be delivered or sent to the address shown at the beginning of this Lease and notices to Agent, if any, shall be delivered or sent to the address set forth in Paragraph 3 hereof. All notices shall be efjectlve upon delivery. Any potty Wray change 1(s rmrice nddress upon wrlllen narlce rn tke oAier parties, given as provided herein. ENTIRE AGREEMENT 35.. This Lease 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 be of any force or effect. This Lease may not be modified except by a writing signed by all the parties hereto. AUTHORIZED LEASE EXECUTION 36. Each 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 Lease on behalf of such corporation, hmtted liability company, or partnership. Page 7 of 8 STANDARD FORM S90-T © 7/2002 Tenant Initials Landlord Initials This tram piod,wdby FOrlillllOtO!"Fwm, SalNraro 000~~138.1a27 id TRANSFER OF LANDLORD'S tNTERF.5T 37. In the even[ of the sale, assignment or transfer' by Landlord of its interest in the Premises or in this Lease (other than a collateral assignment to secure a debt of Landlord) to a successor in interest who expressly assumes the obligations of Landlord under this Lease, Landlord shall thereupon be released and discharged i}om all its covenants and obligations under this Lease, except those obligations that have accrued prior to such sale, assigtmrent or transfer; and Tenant agrees to look solely to [he successor in interest of Landlord for the performance of those covenants accruing after such sale, assignment or transfer Landlord's assignment of this Lease, or of any or all of its rights in this Lease, shall not affect Tenant's obligations hereunder, and Tenant shall attorn and look to the assignee as Landlord, provided Tenant has first received written notice of the assignment of Landlord's interest.. SPECIAL STIPULATIONS 38. Any special stipulations are set forth in the attached Exhibit _ A Insofar as said Special Stipulations conFlict with any of the foregoing provisions, said Special Stipulations shall control. MEMORANDUM OF LEASE 39. Upon request by either Landlord or Tenant, the parties hereto shall execute a short form lease (Memorandum of Lease) in recordable form, setting forth such provisions hereof (other'than the amount of Base Monthly Rent and other sums due) as either party may wish to incorporate. The cost ofrecording such memorandum of lease shall be borne by the party requesting execution of same. THIS DOCUMEN7 IS A LEGAL DOCUMENT. EXECUTION OF TITIS DOCUMENT HAS LEGAL CONSEQUENCES THAT COULD BE ENFORCEABLE IN A COl1RT OF LAW. 7HE NORTtI CAROLINA ASSOCIATION OF REALTORS® MAKES NO REPRESENTATIONS CONCL•RN[NG THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT OR THE TRANSACTION TO WHICH IT RELATES AND RECOMMENDS THAT YOU CONSULT YOUR ATTORNEY. IN WITNESS WFIEREOF, the parties hereto have hereunto set tltcir hands and seals, the date and year first above written. LANDLORD: Individual Business Entity (SEAL) _ ._JQBH Plonerties, LLC_. _ _ (Name of Fran) {SEAL) By: ^ ,_ (SEAL) JIm R. Cates Title: _ _ -Member-Manager __ ._ TENANT: [odividual Business Entity (SEAL) _ County of Oran _ - (Name of Firnr) (SEAL) By: (SEAL) Barry Jacobs Title: _ Chairperson _ . Page 8 of 8 STANDARD FORM 590-T © 7!2002 rNslam produced by F077rIt//~iCO~'Foms soinroro 800-73&A02r If oafs ~~ ~' AREA- S foR ~ 9 EXIIIBIT A ~~.. ,. ~i _ .: . ~ _ •. . ~ ., • .. :.. .. ,- ... ., ~,. ,... ,. ^ r r i ... M ~ , i ~ 1'• RI tt .a ~•. .. • 1 K'• .. •. a» ~.~ • ... .. .'.. •, .• .. •. .. ~. .. ., .. s ~~/`,` ~. .. ~~ ., ..• ..~.~ t q. :;. : r .: . - °. .. °. .. .. .: r.,, ~. - .. ..,. ..: • .• -:. r., • <.;. ..` ~. '. .- . . .. .. .: . 1 . ~ •` r t. .'i .. .. . S~ ~ .. c ` ,.. .~ ., .;. i . .. '. .. .. • a .. ~`~ i }~ ~ '~ ~ '~' ' ~. +J~ M1 Y }t taro ." s ~ ~Mi • tr ~- . . ..' La 4, O~ I~ °', ~1 uX~ ~ :. - _N~' _ .., ~ \. ' ~ ',. :.. {. ~ .. 1 o ~ . ... .. ,~ ~ I • i' • ~ p c~ ^4 _ !.. • ii'! .VT. ~~yy :; .• .~ .~ .. ~ 1 4 .. .. .: •. . ~.. ,. ' ~, ~. - u 1 .. , a •. .. ,..~ ..: •_ ~} .. .. . ' 4 G i .. " 1 .., Jll r. ., i' 1 ..._ -~ . :.~ -. .. .t • -~ ' ( ' :+ ' ~' ~, ,.. .~ ' .. :. < . :, ~ - .. ., .. 1.. f ti ~ ro. ,, b • . ~. - -- ~ ' ~# .: ~\ .s ~ ~.. .. :~