HomeMy WebLinkAboutMiscellaneous APPLICANT 7/6/2009
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REAL ESTATE AGREEMENT
THIS LEASE AGREEMENT, is made and entered into this _ day . by and between
John and Nancy Ash, hereinafter called Lessor, and ,
hereinafter called Lessee. In consideration of the covenants, agreements and stipulations herein contained on the part.of
Lessee to be paid, kept and faithfully performed, Lessor does hereby lease, demise and let unto the said Lessee those certain
premises, as if situated in the City of Springfield, County of Lane and State of Oregon, commonly known as 2187 South 'F'
Street and further described as; Unit(s) upon the following TERMS and CONDITIONS:
SECTION 1. OCCUPANCY
1.1 OriQinal Term. The term of this lease shall commence on
continue through
and
1.2 Possession. Lessee's rights to possession and obligations under this lease shall commence on
o
1.3 Renewal Option. If the lease is not then in default, Lessee shall have the option to renew this lease for
_ successive term(s) of _ years each, as follows:
(a) The renewal term shall commence on the day following the date of termination of the preceding term.
(b) The option must be exercised by written notice to Lessor not less than _ days prior to the
last day of the expiring term. The giving of such notice shall be sufficient to make the lease binding for the
renewal without further act of the parties who shall then be bound to take the steps required in connection with the
determination of rent as specified below.
(c) The basic rental rate of the lease for any term shall be the greater of (I) the ending rental date of the preceding
term, and (II) a reasonable rental rate for the enduring term, as mutually agreed to by the parties.
SECTION 2. RENT
2.1 Base Rent. Lessee shall pay to Lessor as beginning base monthly rent the sum of
month through , said rent shall be payable on the
month in advance at the address listed on page 11 of this contract; then beginning
monthly rent shall increase to through
said base monthly rent shall increase to
; then beginning
through
said monthly rent shall increase to
per
day of each
said base
; then beginning
through
said base monthly rent shall
; then beginning
through
increase to
2.2 Late Pavment CharQes. If Lessee fails to pay, within FIVE (5) days after the due date thereof, any rent Lessor
advance, or other charge payable by Lessee under this Lease, then Lessee shall be obligated to pay to Lessor (in addition to the
overdue principal amount of the rent, advance, or other charge) a late payment charge of $50.00 with said late payment charge
being compounded monthly, for each month or fraction of a month during which the overdue principal amount remains unpaid.
Payment date shall be that date on which Lessor receives said payment.
2.3 Securitv Deposit. To secure Lessee's compliance with all terms of this lease, Lessee has paid Lessor the sum of
deposit. The deposit shall be a debt from Lessor to Lessee, refundable within THIRTY (30) days following
expiration of the lease term or other termination not caused by Lessee's default, Lessor shall have the right to offset against the
deposit any sums owing from Lessee to Lessor and not paid when due, any damages caused by Lessee's default, the cost of
curing any default by Lessee should Lessor elect to do so, and the cost of performing any repair or cleanup that is Lessee's
responsibility under this lease. Offset against the deposit shall not be an exclusive remedy in any of the above cases, but may
be invoked by Lessor, as its option, in addition to any other remedy provided by law or this lease for Lessee's nonperformance.
Lessor shall give notice to Lessee each time an offset is claimed against the deposit, and, unless the lease is terminated, Lessee
shall within TEN (10) days following such notice deposit with Lessor a sum equal to the amount of the offset so that the total
deposit amount, net of offset, shall remain constant throughout the lease term. ~_'
Date Received: I
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2.4 Additional Rent. All taxes, insurance costs, utility charges, maintenance and other charges which Lessee is required
to pay by this lease, and any other sum which Lease is required to pay to Lessor or third parties shall be additional rent
SECTION 3. REPAIRS AND MAINTENANCE
3.1 Lessor's ObliQations. The following shall be the responsibility of Lessor:
(a) Repairs and maintenance of the roof and gutters, exterior walls (including painting), bearing walls, structural
members, and foundations.
(b) Repair of sidewalks, driveways, curbs, parking areas, and areas used in common by Lessee and Lessor or
Lessees of other portions of the same building.
(c) Repair and maintenance of exterior water, sewage, gas and eiectrical services up to the point of entry to the
leased premises.
(d) Repair of the heating and air conditioning system other than ordinary maintenance.
3.2 Lessee's ObliQation. The following shall be the responsibility of Lessee:
(a) Repair of interior walls, ceilings, doors and windows and related hardware, light fixtures, switches, and wiring and
plumbing from the point of entry to the premises.
(b) Any repairs necessitated by the negligence of Lessee, its agents, employees and invitees, except as provided in
Paragraph 7.1 dealing with waivers of subrogation.
(cl Ordinary maintenance of the heating and air conditioning system and any repairs necessary because of improper
maintenance.
(d) Any repairs or alterations required under Lessee's obligation to comply with laws and regulation as set forth in
Paragraph 4.2 (a) below.
(e) All other repairs to the premises which Lessor is not required to make under Paragraph 3.1 above.
(~ Compliance with all reasonable rules and regulations respecting the use of the Leased Premises issued by Lessor
from time to time and communicated to lessee in writing. .
(g) Not commit waste, not suffer or permit waste to be committed, and not cause or permit any nuisance on or in the
Leased Premises.
3.3 lessor's Interference with lessee. Any repairs, replacements, alterations, or other work performed on or
around the leased premises by Lessor shall be done in such a way as to interfere as little as reasonably possible with the use of
the premises by lessee. Lessee shall have no right to an abatement of rent nor any claim against Lessor for any inconvenience
or disturbance resulting from Lessor's activities performed in conformance with the requirements of this provision,
3.4 Reimbursement for ReDairs Assumed. If either party fails or refuses to make repairs which are required by this
Section 3, the other party may make the repairs, and charge the actual costs of repairs to the first party. Such expenditures by
Lessor shall be reimbursed by lessee on demand, together with interest at the rate of TWELVE (12%) percent per annum from
the date of expenditure by Lessor Such expenditures by Lessee may be deducted from rent and other payments subsequently
becoming dues, or, at Lessee's election, collected directly from Lessor Except in an emergency creating an immediate risk of
personal injury or property damage, neither party may perform repairs which are the obligation of the other party, and charge the
other party for the resulting expenses unless at least THRITY (30) days before work is commenced, the defaulting party is given
notice in writing outlining with reasonable particularity the repairs required, and such party fails within that time to initiate such
. repairs in good faith.
3.5 InsDection of Premises. Lessor shall have the right to inspect the premises at any reasonable time or times to
determine the necessity of repair Whether or not such inspection in made, the duty of Lessor to make repairs shall not nature
until a reasonable time after Lessor has received from Lessee notice in writing of the repairs that are required.
SECTION 4. USE OF THE PREMISES
4.1 Permitted Use. The premises shall be used for operation of the business
and for no other purpose without the written consent of Lessor, which consent
shall not be unreasonably withheld. If the Lessee's use is prohibited by law or governmental regulation, this lease shall
automatically terminate.
Date ReceiVed:~
Planner: LM
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4.2 Restrictions on Use. In connection with use of the premises Lessee shall:
(a) Conform to all applicable laws and regulations of any public authority affection the premises, and the use,
including any requirements of any governmental agency relation to the use, storage, or spillage of any hazardous
waste or materials," and correct at Lessee's own expense any failure of compliance created through Lessee's fault
or by reason of Lessee's use, but Lessee shall not be required to make any structural changes to effect such
compliance unless such changes are required because of Lessee's specific use. Lessee shall indemnify and
hold Lessor harmless from any and all liability, including Lessor's reasonable attorney's fees, which Lessor may
incur by reason of any default of Lessee in compliance with this paragraph.
(b) Refrain from any activity which would make it impossible to insure the premises against casualty, would increase
the insurance rate, or would prevent Lessor from taking advantage of any ruling of the Oregon insurance Rating
Bureau or its successor allowing Lessor to obtain reduced premium rates for long-term fire insurance policies,
unless Lessee pays the additional cost of the insurance.
(c) Refrain from any use which would be reasonably offensive to other Lessees or owners or users of neighboring
premises or which would tend to create a nuisance or damage the reputation of the premises.
(d) Refrain from loading the fioors beyond the point considered safe by a competent engineer or architect selected by
Lessor.
4.3 Sians. Lessee is strictly forbidden from making any marks on or attaching any signs, antenna, aerial, or other device to
the exterior or interior walls, windows, or roof of the premises without the prior written consent of Lessor.
Should Lessor give consent for installation of any sign by Lessee, said consent would be subject to Lessor's approval of the
proposed sign placement, method of installation, design, size, color, wording and evidence of approval by the prevailing local
governmental authority.
The entire cost related to any approved sign, design, construction and installation shall be the sold obligation of the Lessee.
Immediately upon termination of Lessee's tenancy all signs previously installed by Lessee shall be removed by Lessee, at
Lessee's expense, and the area where the sign was installed or attached, repaired to its original condition.
4.4 Parkina. Lessee agrees to promptly comply with all parking instructions and restrictions as Lessor may, from time to
time, impose for purposes of achieving the orderly and reasonable allocation of available on site parking amongst the Lessee
and other occupants, customers, employees, and agents of the subject properly. Exhibit 'A'. (Highlighted area.)
SECTION 5. HAZARDOUS MATERIALS. Lessee shall not cause or permit any Hazardous Material (as defined in
Section 5.3) to be brought upon, kept or used in or about the Leased Premises without the express prior written consent of
Lessor (which Lessor shall not unreasonably withhold, provided that Lessee demonstrates to Lessor" reasonable satisfaction
that such Hazardous Material is necessary or useful to Lessee's business, and that such Hazardous Material will be used, kept
and stored in a manner that complies with all laws, rules, ordinances and regulations relating to the storage and use of the
Hazardous Material). Lessors consent shall not be deemed to be a waiver by Lessor of its rights to indemnification by Lessee
as stated in Section 5.1. If Lessee breaches the obligations stated herein, or if the presence of hazardous Material on the
Leased Premises caused or permitted by Lessee at any time after June 23, 1978, results in any contamination of the Leased
Premises by Hazardous Material otherwise occurs for which Lessee is legally liable to Lessor or to any third party for damages
resulting therefrom, then:
5.1 Lessee shall indemnify, defend and hold Lessor harmless from and against any and all claims, judgments,
damages, penalties, fines, costs, expenses, liabilities and losses (including, without limitation, diminution in value of the Leased
Premises, damages for the loss or restriction on use of the Leased Premises, and sums paid in settlement of claims, attorneys'
fees, consultant fees and expert fees) that arise during or after the term of this Lease, as a result of or in connection with such
contamination. The foregoing indemnification of Lessor by Lessee includes, without limitation, costs incurred in connection with
any investigation of city conditions or any clean-up, remedial, removal or restoration work required or recommended by any
federal, state or local governmental agency or political subdivision because of Hazardous Material present in the soil or
groundwater on or under the Leased Premises or any public facilities.
Date Received:
Planner: LM
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5.2 Lessee shall promptly take any and all actions, at its sole cost and expense, as are necessary or appropriate
to return the Leased Premises or other private or public facilities to the condition existing prior to the introduction of any
Hazardous Material to the Leased Premises, provided that Lessor's approval of such actions shall first be obtained, which
approval shall not be unreasonably withheld if such actions would not potentially have any material adverse effect on the Leased
Premises or other private or public facilities. All contractors, laboratories and engineering firms (hereinafter "Consultants")
chosen by Lessee to undertake any remedial action that may be necessary or appropriate on or about the Leased Premises or
other private or public facilities shall be approved by Lessor prior to their employment by Lessee, which approval will not be
unreasonably withheld. If Lessor disapproves of Lessee's choice of Consultants, Lessor may select its own Consultants and
employ them at Lessee's expense. Duplicate copies of all reports and findings made by Consultants with regard to the condition
of the Leased Premises or other private or public facilities shall be delivered to Lessor concurrently with their delivery to Lessee.
Lessee shall have the work done by the Consultants at Lessee's sole risk and shall indemnify and hold Lessor and Lessor's
agents and employees harmless from and against any and all loss, costs, liability, damage and expense relating to or arising
from any damage or injury to Lessee, the Consultants, or the agents of either of them, for any third-party liability incurred by and
of them, and for any claim by Lessor, or Lessor's agents or employees by reason of any such work conducted by Consultants.
5.3 As used herein, the temn "Hazardous Material" means any hazardous or toxic substance, material or waste that is or
becomes regulated by any local governmental authority, the State of Oregon, or the United States Government. The term
"Hazardous Material" includes, without limitation, any material or substance which is designated as a hazardous substance
pursuant to the Water Pollution Control Act (33 U.S.C. section 1317); or defined as hazardous waste pursuant to the Resource
Conservation and Recovery Act (42 U.s.C. Section 6901 et seq.); or defined as a hazardous substance pursuant to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et
seq.); or defined as a hazardous material pursuant to Article 90 of the Uniform Fire Code, as adopted by the City or County in
which the subject property is located and, as amended from time to time.
5.4 Property lies in a drinking water protection overlay zone (DWP) overlay zone and tenants are hereby notified that
the property to be leased lies within a drinking water protection overlay zone and special restrictions apply. Tenant shall verify
requirements of storage, handling, and disposal of materials and substances stored on site with the City of Springfield prior to
execution on the lease.
5.5 DWP zone application and permit or exemption veriication required prior to ocupancy of each individual lease
space. Tenants shall submit a hazardous materials inventory statement to the Springfield Utility Board Water Quality Protection
Coordiantion and to the City of Springfield Development Services Department to determine whether or not a drinking water
protection application will be required. Prior to execution of a lease on the property, all prospective tenants shall complete a
DWP permit application accoriding to article17 of the Springfield Development Code. As allowed by the code, an exemption
may be requested prior to submittal of the DWP application.
5.6 Certain substances are prohibited from use or storage on this property. No tenant may store or use Dense
Non-Aqueous Phase Liquie (DNAPL) materials at this site.
5.7 Secondary containment required for certain chemical substances. No tenant may store any chemical regulated
under Springfield Development Code Article 17 on site unless secondary containment is provided that meets City of Springfield
requirements.
SECTION 6. ALTERATIONS
6.1 Alterations Prohibited. Lessee shall make no improvements or alterations to the leased premises of any kind
without first obtaining Lessor's written consent.
6.2 Alterations Required. The improvements delineated on the work sheet, if any, attached hereto and made part of this
lease shall be periomned by the party designated and within the time stated on the work sheet.
6.3 Ownership of Alterations. All improvements and alterations periomned on the leased premises by either Lessor or
Lessee shall be the property of Lessor when installed unless the applicable Lessor's consent specifically provides otherwise.
. Date Received: 1/0/ [ff
Planner: LM
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SECTION 7. INSURANCE
7.1 Insurance Reauired. Lessor shall be responsible for insuring the premises, land Lessee for insuring its personal
property and trade fixtures located on the premises. Neither party shall be liable to the other for any loss of damage caused by
water damage, sprinkler leakage, or any of the risks covered by a standard fire insurance policy with an extended coverage
endorsement, and there shall be no subjugated claim by one party's insurance carrier against the other arising out of any such
loss.
7.2 Liability Insurance. Before taking possession of the premises, Lessee shall procure and thereafter during the term of
the lease shall conunue to carry the following insurance at Lessee's costs. Public liability and property damage insurance in a
responsible company with limit of not less than 500,000.00 dollars for injury to one person, 1,000,000.00 dollars for injury to two
or more persons, and 500,000.00 dollars for damage to property. Such insurance shall cover all risks arising directly or
indirectly out of Lessee's activities on or any condition of the leased premises whether or not related to an occurrence caused or
contributed to by Lessor's negligence, shall protect Lessee against the claims of Lessor on account of the obligations assumed
by Lessee under Paragraph 7.1, and shall protect Lessor and Lessee against claims of third persons. Certificates evidencing
such insurance, and bearing endorsements requiring TEN (10) days' written notice to Lessor prior to any change or cancellation
shall be furnished to Lessor prior to Lessee's occupancy of the property. Insurance binder from agent to be mailed to Lessor.
SECTION 8. UTILITIES AND SERVICES
8.1 Utility and Service Charaes. Utilities and services shall be paid by:
Utility and Service
Lessor Lessee
REMARKS
Telephone. ....................
Electric Service............ .......
( )
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Natural Gas Service.............
Municipal Water Service........
() ( )
Sewer Service..................... ,(
Refuse Collection.................. (
Interior Janitorial Service.........
Storm Water Charges............
Other...........
SECTION 9. TAXES
9.1 Personal Property Taxes. Lessee shall pay all property taxes assessed against Lessee's inventory, equipment,
appliances and other personal property.
9.2 Real Property Taxes. Lessor.
SECTION 10. DAMAGE AND DESTRUCTION
10.1 Partial Damaae. If the leased premises are 'partiy damaged, and Paragraph 10.2 below does not apply, the property
shall be repaired by Lessor at Lessor's expense. Repairs shall be accomplished with all reasonable dispatch subject 0
Date Received:
Planner: LM
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09
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interruptions and delays from labor disputes, and matters beyond the controi of Lessor, and shali be performed in accordance
with the provisions of Paragraph 3.3 above.
10.2 Destruction. If the leased premises are destroyed or damaged such that the cost of repair exceeds FIFTY (50%)
percent of the value of the structure before the damage, either party may elect to terminate the lease as of the date of the
damage or destruction by notice given to the other in writing not more than FORTY-FIVE (45) days foliowing the date of the
damage. In such event ali rights and obligations of the parties shali cease as of the date of termination, and Lessee shali be
entitled to any prepaid amounts previously paid by Lessee, and attributed to the anticipated term. If neither party elects to
terminate, Lessor shali proceed to restore the leased premises to substantialiy the same form as prior to the damage or
destruction. Work shall be commenced as soon as reasonable possible, and thereafter shali proceed without interruption
except for work stoppages on account of labor disputes, and matters beyond the controi of the Lessor.
10.3 Rent Abatement. Rent shali be abated during the repair of any damage to the extent the premises are un-Ieaseable,
except that there shali be not rent abatement where the damage occurred as the result of the fault of Lessee, their agents,
employees or invitees.
10.4 Damaoe Late in Term. If damage or destruction to which Paragraph 11.2 would apply occurs within ONE (1) year
prior to the end of the then current lease term, Lessee may elect to terminate the lease by notice in wriUng to Lessor given within
THIRTY (30) days after the date of the damage.
SECTION 11. EMINENT DOMAIN
11.1 Partial TakinQ. If a portion of the leased premises is condemned, and Paragraph 11.2 does not apply, the lease shali
continue on the foliowing terms:
(a) Lessor shali be entitled to ali of the proceeds of condemnation, and Lessee shali have no claim against Lessor as
a result of the condemnation.
(b) Lessor shali proceed as soon as reasonably possible to make such repairs and alterations to the premises as are
necessary to restore the remaining premises to a condition as comparable as reasonably practicable to that
existing at the time of the condemnation.
(c) After the date on which title vests in the condemning authority or an earlier date on which alterations or repairs are
commenced by Lessee to restore the balance of the property in anticipating of taking, the rent shali be reduced in
proportion to the reduction in value of the leased premises as economic unit on account of the partial taking. If
the parties are unable to agree upon the amount of the reduction of rent, the amount shali be determined by
arbitration in the manner as is provided in Section 20.
(d) If a portion of Lessor's property not included in the leased premises is taken, and severance damages are
awarded on account of the leased premises, or an award is made for detriment to the leased premises as a result
of activity by a public body not involving? physical taking of any portion of the premises, ,this shali be regarded as
a partial condemnation to which subparagraph 11,1 (a) and (c) apply, and the rent shali be reduced to the extent
of reduction in rental value of the premises as though a portion had been physicaliy taken,
11.2 Total Takino. If a condemning authority takes ali of the leased premises or a portion sufficient to render
the remaining premises reasonably unsuitable for the use which Lessee was then making of the premises, the lease shali
terminate as of the date the title vests in the condemning authorities. Such termination shali have the same effect as
termination under Paragraph 11,1 (a) above. Lessor shali be entitled to ali of the proceeds of condemnation, and Lessee shali
have no claim against Lessor as a result of the condemnation,
11.3 Sale in Lieu on Condemnation. Sale of ali or part of the leased premises to a purchaser with the power of eminent
domain in the face of a threat or probability of the exercises of the power shali be treated for the purposes of this Section 11 as a
taking by condemnation,
SECTION 12. LIABILITY AND INDEMNITY
Date Received:
Planner: LM
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12.1 Liens:
(a) Except with respect to activities for which Lessor is responsible, Lessee shall pay as due all claims for work done
on and for services rendered or material furnished to the leased premises, and shall keep the premises free from
any liens. If Lessee fails to pay any such claims or to discharge any lien, Lessor may do so, and collect the cost
as additional rent. MY amount so added shall bear interest at the rate of TWELVE (12%) percent per annum
from the date expended by Lessor, and shall be payable on demand. Such action by Lessor shall not constitute
a waiver of any right or remedy which Lessor may have on account of Lessee's default.
(b) Lessee may withhold payment of any claim in connection with a good-faith dispute over the obligation to
pay, so long as Lessor's property interests are not jeopardized. If a lien in filed as a result of nonpayment,
Lessee shall, within TEN (10) days deposit with Lessor cash or sufficient corporate surety bond or other surety
satisfactory to Lessor in an amount sufficient of discharge the lien, plus any costs, attorney's fees, and other
charges that could accrue as a result of a foreclosure or sale under the lien.
12.2 Indemnification. Lessee shall indemnify and defend Lessor from any claim, loss, or liability arising out of or related
to any activity of Lessee on the leased premises or any condition of the leased premises in the possession or under the control of
Lessee. Lessor shall have no liability to Lessee for any loss of damage caused by third.parties or by any condition of the
premises.
SECTION 13. QUIET ENJOYMENT; MORTGAGE PRIORITY
13.1 Lessor's Warrantv. Lessor warrants that it is the owner of the leased premises, and has the right to lease them.
Lessor will defend Lessee's right to quiet enjoyment of the leased premises from the lawiul claims of all persons during the lease
term.
13.2 Mortoaoe Prioritv. This lease is and shall be prior to any mortgage or deed of trust ("Encumbrance") recorded after
the date of this lease and affection the premises. However, if any lender holding such an encumbrance requires that this lease
be subordinate to the Encumbrance, then Lessee agrees that the lease shall be subordinate to the Encumbrance if the holder
thereof agrees in writing with Lessee that so long as Lessee performs its obligations under this lease no foreclosure, deed given
in Lieu of foreclosure, or sale, pursuant to the terms of the Encumbrance, or other steps or procedures taken under the
Encumbrance shall affect Lessee's rights under this lease. If the foregoing condition in met, Lessee shall execute the written
agreement, and any other documents required by the holder of the Encumbrance to accomplish the purpose of this paragraph.
If the premises are sold as a result of foreclosure of any encumbrance thereon, or otherwise transferred by Lessor or any
successor, Lessee shall attorn to the purchaser or transferee.
13.3 EstoDDel Certificate. Either party will within TWENTY (20) days after notice from the other, execute and deliver to
the other party a certificate stating whether or not this lease has been modified, and is in full force and effect, and specifying any
modifications or alleged breaches by the other party.. The Certificate shall also state the amount of monthly base rent, the dates
to which rent has been paid in advance, and the amount of any security deposit or prepaid rent. Failure to deliver the certificate
within the specified time shall be conclusive upon the party of whom the certificate was requested, that the lease is in full force
and effect, and has not been modified except as may be represented by the party requesting the certificate.
SECTION 14. ASSIGNMENT AND SUBLEASE
No part of the leased property may be assigned, mortgaged, or subleased, nor may a right of use of any portion of the
property be conferred on any third person by other means, without the prior written consent of Lessor. This provision shall apply
to all transfers by operation of law. If Lessee is a corporation, this provision shall apply to any sale of a controlling interest in the
stock of the corporation. No consent in one instance shall prevent the provision from applying to a subsequent instance.
Lessor shall consent to a transaction covered by this provision when withholding such consent would be unreasonable in the
circumstance. In determining whether to consent to assignment, Lessor may consider the following factors: Financial" ability of
assignee, business experience of assignee, and credit worthiness of assignee. However, Lessor agrees not to unreasonably
withhold such consent.
SECTION 15. DEFAULT
Date Received:! I if (11
Planner: LM
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15.1 Default in Rent. Failure of Lessee to pay any rent or other charge within FIVE (5) days after it is due.
15.2 Default in Other Covenants. Failure of Lessee to comply with any term or condition, to fulfill any obligation of the
lease (other than the payment of rent or other charges) within TWENTY (20) days after written notice by Lessor specifying the
nature of the default with reasonable particularity. If the default is as such a nature that it cannot be completely remedied within
the twenty (20) day period, this provision shall be complied with if Lessee begins correction of the default within the TWENTY
(20) day period, and thereafter proceeds with, reasonable diligence, and in good-faith to effect the remedy as soon as practicabie.
15.3 Insolvencv. Insolvency of Lessee; an assignmentby Lessee for the benefit of creditors; the filling by Lessee of a
voluntary petition in bankruptcy; an adjudication that Lessee is bankrupt or the appointment of a receiver of the properties of
Lessee; the filing of any involuntary petition or bankruptcy, and failure of Lessee to secure a dismissal of the petition within
THIRTY (30) days after filing; attachment of or the levying of execution of the leasehold interest, and failure of Lessee to secure
discharge of the attachment or release of the levy of execution within TEN (10) days. If Lessee consists of two or more
individuals or business entities, the events of default specified in this Paragraph 16.3 shall apply to each individual or business
entities, unless within TEN (10) days after an event of default occurs, the remaining individuals produce evidence satisfactory to
Lessor that they have unconditionally acquired the interest of the one causing the default. If the lease has been assigned, the
events of default so specified shall apply only with respect to the one then exercising the rights of Lessee under the lease.
15.4 Abandonment. Failure of Lessee for TEN (10) days or more to occupy the property for one or more of the purposes
permitted under this lease unless such failure is excused under other provisions of this lease shall be an abandonment of the
property. .
SECTION 16. REMEDIES ON DEFAULT
16.1 Termination. In the event of a default the lease may be terminated at the option of the Lessor by notice in writing to
Lessee. If the lease is not terminated by election of Lessor or otherwise, Lessor shall be entitled to recover damages from
Lessee for the default. If the lease is terminated, Lessee's liability to Lessor for damages shall survive such termination, and
Lessor may re-enter, take possession of the premises, and remove any persons or property by legal action or by self-help with
the use of reasonable force, and without liability for damage.
16.2 RelellinQ. Following re-entry or abandonment, Lessor may relet the premises, and in that connection may make any
suitable alterations or refurbish the premises, or both, or change the character or use of the premises, but Lessor may
reasonably consider injurious to the premises, or to any Lessee which Lessor may reasonably consider objectionable. Lessor
may relet all or part of the premises, alone or in conjunction with other properties, for a term longer or shorter than the term of
this lease, upon any reasonable terms and conditions, including the granting of some rent-free occupancy or other rent
concession.
16.3 DamaQes. In the event of termination on default. Lessor shall be entitled to recover immediateiy, without waiting until
the due date of any future rent or until the date fixed for expiration of the lease term, the following amounts as damages:
(al The loss of reasonable rental value from the date of default until a new Lessee has been, or with the exercise of
reasonable efforts could have been secured.
. (b) The reasonable costs of re-entry and reletting, including without limitation the cost of any clean up, refurbishing,
removal of Lessee's property and fixtures, or any other expense occasioned by Lessee's failure to quit the
premises upon termination, and to leave them in the required conditioning, any remodeling costs, attomey's fees,
court costs, Agency commissions, and advertising costs.
(c) Any excess of the value of the rent and all of Lessee's other obligations under this lease over the reasonable
expected return from the premises for the period commencing on the earlier of the date of trial or the date the
premises or relet and continuing through the end of the term. The present value of future amounts will be
computed using a discount rate equal to the prime loan rate of major Oregon banks in the effect on the date of
trial.
16.4 RiQht to Sue More Than Once. Lessor may sue periodically to recover damages during the period corresponding to
the remainder of the lease term, and no action for damages shall bar a later action for damages subsequently accruing.
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16.5 Remedies Cumulative. The foregoing remedies shall be in addition to, and shall not exclude any other remedy
available to lessor under applicable law.
SECTION 17. SURRENDER AT EXPIRATION
17.1 Condition of Premises. Upon expiration of the lease term or earlier termination on account of default, lessee shall
deliver all keys to lessor, and surrender the leased premises in first-class condition, and broom clean. Alterations constructed
by lessee with permission from lessor shall not be removed or restored to original condition, unless the terms of permission for
the alteration so require. lessee's obligation under this paragraph shall be subordinate to the provisions of Section 10 related to
destruction.
17.2 Fixtures.
(a) All fixture, improvements or additions placed upon the leased premises during the lease term, other than
lessee's trade fixtures, shall, at lessor's option, become the property of lessor. If lessor so elects, lessee shall
remove any or all fixtures which would otherwise remain the property of lessor, and shall repair any physical
damage resulting from the removal. if Lessee faiis to remove such fixtures, Lessor may do so, and charge the
cost to Lessee, with interest ~t the rate of TWELVE (12%) percent per annum, from the date of expenditure.
(b) Prior to expiration or termination of the lease term, Lessee shall remove all furnishings, furniture, and
trade fixtures which remain its property. If Lessee fails to do so, this shall be an abandonment of the property,
and Lessor may retain the property, and all rights of Lessee with respect to it shall cease, or, by notice in writing
given to Lessee within TWENTY (20) days after removal was required, Lessor may elect to hold Lessee to its
obligation or removal. If Lessor elects to require Lessee to remove, Lessor may effect aTemoval, and place the
property in public storage for Lessee's account. Lessee shall be liable to Lessor for the cost or removal,
transportation to storage, and storage costs, plus interest at the rate of TWELVE (12%) percent per annum, on all
such expenses from the date of expenditure by Lessor.
17.3 Holdover.
(a) If Lessee does not vacate the leased premises at the time required, Lessor shall have the option to treat
Lessee as a Lessee from month-ta-month, subject to all of the provisions of this lease except the provisions for
term and renewal. Failure of Lessee to remove fixtures, furniture, fumishing or trade fixtures which under this
lease shall constitute a failure to vacate to which this paragraph shall apply if the property not removed will
substantially inteliere with occupancy of the premises by another Lessee or with occupancy by Lessor for any
purpose, including preparation for a new Lessee. Lessee's monthly rent shall automatically increase to an
amount equal to 150% of the last month's rental rate during the specified lease term, for any holdover period.
(b) If a month-to-month tenancy results from a holdover by Lessee under this Paragraph 17.3, the tenancy
shall be terminated at the end of any monthly rental period on written notice from Lessor, given not less
than TEN (10) days prior to the termination date which shall be specified in the notice. Lessee waives
any notice which would otherwise be provided by law with respect to a month-ta-month tenancy.
SECTION 18. MISCELLANEOUS
18.1 Nonwaiver. Waiver by either party of strict peliormance of any provision of this lease shall not be a wavier of or
prejudice the party's right to require strict peliormance of the same provision in the future or of any other provision.
18.2 Attornev Fees. If suit or action is instituted in connection with any controversy arising out of this lease, the prevailing
party shall be entitled to recover, in addition to costs, such sum as the court may adjudge reasonable as attorney's fees,
including fees on appeal.
18.3 Notices. Any notice required or permitted under this lease shall be given when actually deliver or FORTY-EIGHT (48)
hours after deposited in United States mail as certified mail addresses to the address first given in this lease, or to such other
address as may b e specified from time to time by either of the parties in writing.
18.4 Succession. Subject to the above-stated limitations on transfer of Lessee's interest, this lease sh II be binding upon
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and inure to the benefit of the parties, their respective successors, and assigns.
18.5 Lessor's RiQht to Cure Defaults. If Lessee fails to perform any obligation under this lease, Lessor shall have the
option to do so after THIRTY (30) days' written notice to Lessee. All of Lessor's expenditures to correct the default shall be
reimbursed by Lessee on demand, with interest at the rate of TWELVE (12%) percent per annum from the due date until paid.
18.6 Recordation. This lease shall not be recorded without the prior written consent of the Lessor. Lessor shall execute
and acknowledge an memorandum of this lease in a form suitable for recording, and Lessee may record the memorandum.
18.7 Entry for Inspection. Lessor shall have the right to enter upon the promises at any time to determine Lessee's
compliance with this lease, to make necessary repairs to the building or to the premises, or to show the premises to any
prospective Lessee or purchase, and, in addition, shall have the right, at any time during the last four months of the term of this
14ease, to place and maintain upon the premises notices for leasing or selling the premises.
18.8 Interest on Rent or Other CharQes. Any rent or other payment required of Lessee by this lease shall, if not paid
within FIVE (5) days after it is due, bear interest at the rate of TWELVE (12%) percent per annum from the due date until paid.
18.9 Proration of Rent. In the event of commencement or tenmination of this lease at a time other than the beginning or
end of one of the specified rental periods, then the rent shall be prorated as the date of commencement or termination, and in the
event of termination for reasons other than default, all prepaid rent shall be refunded to Lessee or paid on its account.
SECTION 19. OTHER AGREEMENTS BETWEEN LESSEE AND LESSOR
19.1 Gate. The gate shall be closed and iocked except from the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday.
19.2 Outside StoraQe. There is no storage outside of buildings allowed.
19.3 No WashinQ of Vehicle. There is NO washing of vehicles of any sort allowed on the premises.
SECTION 20. ADDENDUM
An addendum signed by both the Lessor and the Lessee ( ) is attached, ( ) is not attached hereto, and if attached
becomes a part of this Lease Agreement.
THIS IS A LEGALLY BINDING AGREEMENT. IF NOT UNDERSTOOD BY ANY PARTIES HERETO, THEY SHOULD SEEK
COMPETENT LEGAL AND/OR ACCOUNTING ADVICE PRIOR TO SIGNING.
LESSOR:
LESSEE:
By:
By:
By:
By:
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pate RecelV .
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Date:
Address: Date:
City: Address:
State: City:
Zip:
Phone: ( State:
Fax: ( Phone: ( Zip:
Fax: (
Date Received:JlW1
Planner: LM