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HomeMy WebLinkAboutLease Agreement• LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into as of the 11th day of June, 1997, by and between FIRST SECURITY BANK, Post Office Box 30006, Salt Lake City, Utah, hereinafter called "Landlord"; and BENITON CONSTRUCTION COMPANY, P.O. BOX 838, MERIDIAN, IDAHO, 83680-0838, hereinafter called "Tenant". W I T N E S S E T H: IN CONSIDERATION of the rents, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be observed and performed, the Landlord demises and leases to the Tenant, and the Tenant rents from Landlord, those certain premises in the First Security Building located at 536 South Meridian Rd., Meridian, ID 83642 hereinafter called the "Building". Term. This Lease shall be on a month to month basis. Rent. The Rent shall be $100 per month Late Payment of Rent. Landlord shall charge a late fee of five per cent (5%) of the payment due for any Rent which is paid after the 10th of the month. Maintenance of Premises. Tenant agrees to maintain the Premises in a clean and orderly condition, agrees to repair any damage to the Premises caused by Tenant or his agents, employees or invitees, and agrees to return the Premises to the Landlord at the expiration of this Lease in the same condition, normal wear and tear excepted. Real Property Taxes. Tenant shall pay all taxes and assessments levied and assessed against the Premises. Personal Property Taxes. Tenant shall pay all taxes, assessments, license fees and public charges levied, assessed or imposed upon or measured by the value of its business operation, including but not limited to the furniture, fixtures, leasehold improvements, equipment and other property of Tenant at any time situated on or installed in the Premises by Tenant. Tenant Improvements. Tenant is renting the Premises "as is" with the understanding that any tenant improvements to the Premises will be made by Tenant at Tenant's expense. No such improvements may be made until Tenant has received Landlord's approval and consent. Landlord's consent may include but is not limited to the approval of and bonding of any contractor who comes on the Premises. Tenant agrees to keep the Premises free from all liens, and in the event that a lien is filed against the Premises 2 as a result of Tenant's activities, Tenant shall cause such lien to be removed within thirty (30} days after the filing of such lien. Use. Tenant may use the Premises solely for the normal office purposes. Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which will in any way affect any fire or other insurance upon the Building. Tenant shall not use the Premises or permit anything to be done in or about the Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation or requirement of duly constituted public authorities now in force or which may hereafter be enacted or promulgated. Tenant agrees to be bound by and to comply with the rules and regulations established by the Landlord for the Building from time to time for any reason, but not limited to, ensure the safety, maintenance and cleanliness of the Building. Entrv By Landlord. Landlord and the authorized representatives of Landlord may enter the Premises at all reasonable times, upon reasonable notice, for the purposes of exhibiting the same to prospective tenants during the final sixty (60} days of the Term of this Lease and may exhibit the Premises for reletting in such manner as to not interfere unreasonably with Tenant's business. Landlord and its agents shall have free access to the Premises during all normal business hours for the purpose of examining the same to ascertain if they are in good repair, and to make reasonable repairs, and shall have access to the Premises at any time for purposes of making emergency repairs or to prevent continuation of damage to the Building or to the Premises. Fixtures. The Tenant shall take good care of the Premises and fixtures, make good any injury or breakage done by Tenant or Tenant's agents, clerks, servants, or visitors, and shall quite and surrender Premises at the end of term in as good condition as the reasonable use thereof will permit. Tenant shall not make any alterations, additions or improvements to Premises without the written consent of Landlord, and all alterations, additions or improvements which may be made by either of the parties hereto upon the Premises, except moveable office furniture put in at the expense of the Tenant, shall be the property of the Landlord, and shall remain upon and be surrendered with the Premises, as a part thereof, at the termination of this lease, without disturbance, moiestations, or injury; but injury caused by moving furniture in and out shall be repaired by the Tenant. 1n the event Tenant shall add fixtures or improvements to the Premises and the Landlord has agreed that said fixtures or improvements may be removed at the termination of the Lease Term then, provided Tenant is not in default, said fixtures or improvements may be removed at Tenant's expense as long as the Premises are restored and repaired to their prior condition. 3 ! ~ Indemnitv. Tenant shall indemnify and hold harmless and defend Landlord, its officers, directors, ernplayees, clients or customers from and against any and all liabilities, damage, lasses, claims and expenses {including attorneys fees} arising from Tenant's use of the Premises or the conduct of its business or from any activity, work or thing done, permitted or suffered by Tenant in or about Tenant's Premises, including without limitation, claims caused by the concurrent negligent acts or omissions of Landlord or its agents; provided however, the Tenant shall have no obligation to defend, indemnify or protect Landlord from claims caused by the sole negligence or willful misconduct of Landlord. Landlord shall not be liable for any injury to any person {including death} or loss or damage to property sustained by Tenant or other persons, which ;may be caused by theft, or any act or negligence of Tenant or any other tenant or occupant of the Building by any third parties. Tenant waives claims relating to damage caused by water, snow, frost, steam, gas, sewer gas or odors, or by the bursting of or leaking of pipes or plumbing works, electrical or mechanical equipment or the failure of any appurtenant equipment. General Liability and Property Damacre. Tenant shall at all times during the term hereof and at its own cost and expense procure and continue in force Workmen's Compensation Insurance and a Commercial General Liability Policy of Insurance with limits of $500,000 per occurrence and annual aggregate limit of $1,000,000, and naming Landlord as an additional insured in the commercial General Liability Policy against liability for injury or death of any person in connection with the use, operation or condition of the Premises. Insurers issuing all policies shall have a Best rating of A+ or higher and be rated by Moodys or S&P as having "excellent claims-paying ability". Tenant shall provide Landlord with certificates evidencing said insurance prior to taking possession of the Premises. Landlord must be named as an additional insured under said insurance policies. Failure to maintain insurance may be deemed as a material default under this Lease. Fire And Extended Coverage. Tenant shall maintain at its own expense during the term of this Lease Fire, Windstorm and Extended Coverage Insuranoe on the Building. Tenant shall procure insurance at its own expense to insure its own property and leasehold improvements. Waiver of Subrogation. Landlord and Tenant each hereby waives any and all rights of recovery against the officers, employees, agents and representatives of such other party for loss of or damage to such waiving party of its property or the property of others under the standard form of fire insurance policy with all permissible extension endorsements covering additional perils or under any other policy of insurance carried by such waiving party in lieu thereof. 4 • Damage. If at any time during the term hereof the Premises are destroyed or damaged, Landlord shall have the option to terminate this Lease upon 15 days written notice to Tenant or to repair such damage at Landlord's expense. In the event Landlord shall elect to repair or rebuild the Building, this Lease shall continue to be in full force and effect, provided, however, Tenant shall not be required to pay rent during the period of construction. In the event that such reconstruction requires more than 30 days, Tenant shall have the right to terminate this Lease either upon the passage of the 30 days or upon receiving notice from Landlord that the repairs will require more than 30 days. Eminent Domain. If the entire Premises, or so much thereof as to make the balance not reasonably adequate for the conduct of Tenant's business, shall be taken under the power of eminent domain, this Lease shall automatically terminate as of the date on which the condemning authority takes title or possession, whichever first occurs. In the event of any lesser taking of the Premises under the power of eminent domain, Landlord shall have the right at its election to terminate this Lease or to allow the Tenant at his election to remain in possession of the reduced portion of the Premises under the terms of this Lease, with the Rent, however, being proportionately adjusted. Awards. Any award for any taking of all or any part of the Premises under the power of eminent domain shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee. Assignment or Sublease. Tenant may not sublease or assign this Lease without the prior written consent of the Landlord. Ouiet Enjovment. Landlord agrees that Tenant, upon paying the Rent and other monetary sums due under this Lease and performing the covenants and conditions of this Lease, may quietly have, hold and enjoy the Premises during the term hereof or any extension thereof.. Default. The occurrence of any of the following shall constitute a material default and breach of this Lease by Tenant: 1. Any failure by Tenant to pay Rent or any other monetary sums required to be paid hereunder, where such failure continues for five (5) days after written notice by Landlord to Tenant; or 2. A failure by Tenant to observe and perform any other provisions of this Lease to be observed or performed by Tenant, where such failure continues for thirty (30) days after written notice thereof by Landlord to Tenant; 5 provided, however, that if tY~e nature of the default is such that it cannot reasonably be cured within thirty (30} days, Tenant shall not be deemed to be in default if Tenant commences such cure within the thirty (30) day period and thereafter diligently prosecutes the same to completion. Remedies. In the event of any such default or breach by Tenant, Landlord may, at any time thereafter, without limiting Landlord in the exercise of any right of remedy at law or in equity with Landlord may have by reason of such default or breach: 1. Maintain this Lease in full force and effect and recover the Rent and other monetary charges as they become due (or alternatively, if Landlord exercises the acceleration option set forth in paragraph 3 below, recover all rent and other monetary charges due as a result of acceleration} without terminating Tenant's right to possession irrespective of whether Tenant shall have abandoned the Premises. In the event Landlord elects not to terminate this Lease, Landlord shall have the right to attempt to re-let the Premises at such rent and upon such conditions and for such a term, and to do all acts necessary to maintain or preserve the Premises as Landlord deems reasonable and necessary without being deemed to have elected to terminate the Lease, including removal of all persons and property from the Premises. Such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant, and if Tenant fails to pay for storage, such property may be sold or otherwise disposed of at Landlord's discretion. The obligations of Tenant under this Lease shall terminate automatically upon the new tenant taking possession of the Premises, but Tenant shall, nevertheless, be responsible for damages, including, without limitation, the difference, if any, in rental rates between this Lease and such reletting, the cost or reletting, and the cost of making the Premises ready for the new tenant. Notwithstanding that Landlord fails to elect to terminate the Lease initially, Landlord, at any time during the term of this Lease may elect to terminate this Lease by virtue of any previous default of Tenant which has not be cured. 2. Terminate Tenant's right to possession by any lawful means, in which case Tenant's right under this Lease shall terminate and Tenant shall .immediately surrender possession of the Premises to Landlord. In such event, Landlord shall be entitled to recover from Tenant all 6 • damages incurred by Landlord by reason of Tenant's default. 3. In the event of any material default or breach by Tenant, Landlord may, at its election and without limiting Landlord's other rights and remedies, accelerate the payment of all Rent and other monetary sums payable to Tenant for the balance of the term. Upon such election such sums shall be immediately due and payable in full. 4. In the exercise of any or all of the above remedies, if Landlord shall engage the services of an attorney in connection with any default of Tenant arising out of this Lease, including any suit by Landlord for the recovery or rent or possession of the Premises, Tenant, in additional to the payment all other costs expended by Landlord arising out of said default, shall pay Landlord's reasonable attorney's fees. i~aiver. No covenant, term or condition of the breach thereof shall be deemed waived, except by written consent of the part against whom the waiver is claimed, and any waiver or the breach of any covenant, term or condition shall not be deemed to be a waiver of. any covenant, term or condition. Acceptance by Landlord of any performance by Tenant after the time the same shall have become due shall not constitute a waiver by Landlord of the breach or default of any covenant, term or condition unless otherwise expressly agreed to by Landlord in writing. Severability. If any term or provision of this Lease shall, to any extent be determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforceable to the fullest extent permitted by law; and it is the intention of the parties hereto that if any provision of this Lease is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. Time• Joint and Several Liability. Time is of the essence of this Lease and each and every provision hereof. All the terms, covenants and conditions contained in this lease to be performed by either party, if such party shall consist of more than one person or organization, shall be deemed to be joint and several, and all rights and remedies of the parties shall be cumulative and non-exclusive of any other remedy at law or in equity. Binding Effect; Choice of Law. The parties agree that all the provisions hereof are to be construed as both covenants and conditions as though the words importing such covenants and 7 ,~ conditions were used in each separate paragraph. All of the provisions hereof shall bind the inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. This Lease shall be governed by the laws of the State of Idaho. Entire Aare m n This instrument, along with any exhibits and attachments hereto, constitutes the entire agreement between Landlord and Tenant relative to the Premises. This agreement and the exhibits and attachments may be altered, amended or revoked only by an instrument in writing signed by both Landlord and Tenant. Notices. All notices or demands of any kind required or desired to be given by Landlord or Tenant hereunder shall be in writing and shall be deemed delivered forty-eight (48) hours after depositing the notice or demand in the United States mail, certified or registered, postage prepaid, addressed to the Landlord or Tenant respectively at the addresses set forth under the summary above. Brokers. Landlord and Tenant represent and warrant to each other that no real estate broker participated in the agreement to enter into this Lease. Landlord and Tenant agree to indemnify each other from claims asserted by any such agents. American's With Disabilities Act. Tenant agrees to comply with all provisions of the ADA in its use and occupancy of the Premises. Specifically, and by way of illustration and not by limitation, Tenant assumes the sole responsibility and coat to provide "reasonable accommodations" as defined under the ADA within the Premises to its employees who are disabled as defined under the ADA. The failure of Tenant to comply with the provisions of this paragraph shall constitute an Event of Default under this Lease. IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the day and year first above written. I,ANDI.,ORD TENANT BENITON CONSTRUCTION COMPANY Matt Newton Doug Nichols FIRST SECURITY BANK