HomeMy WebLinkAboutAgreements/Contracts - Renew--- - ------- ----- ---- ....... . .. - -------- ---- ---- - - ----- ------ - ---------
Reference No. of related documents-,
Lessor: 1) SANDOVAL RENTALS LLC, a Washington limited liability company
.Lessee:1)
gRANT COUNTY DBA RENE
,a Washington limited liability company
Abbreviated Legal Descripbon:
I Address: 11Camelia St NE, Suite 4, Royal City, WA 99357
Complete legal description on Page 17 of this document. Exhibit "A"
Assessor's Tax Parcel ID No: 071616000
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COMMERCIAL LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease") is made and entered 'Into
OCTOBER17 12022, by and between SANDOVAL RENTALS
LLC, a Washington limited liability company, hereinafter referred to as "Lessor",
and GRANT COUNTY DBA RENEW
hereinafter referred to as tessee,," Lessor hereby agrees to lease to Lessee
and Lessee hereby agrees to lease from Lessor, the Premises, as defined below,
pursuant to all the terms and conditions set forth below.
COMMERCIAL LEASE
PG I
RECITALS
A. The Lessor owns real property located in Royal City, Grant County,
Washington which consists of abbreviated legal description:
Address: 114 Camelia St NE, Suite 4, Royal City, WA 99357
Commonly known as: Sandoval Plaza Royal City
and parcel number 071616000 . The full legal description "is
attached to this document and incorporated by reference as Exhibit A. Said
property will be referred to as the "Property."
B. Lessor desires to lease and Lessee desires to take possession of a
portion of said Property owned by Lessor
ARTICLE 1 - DEFINED TERMS, GENERAL CONDITIONS AND PREMISES
Section 1.1 DEFINED TERMS AND COVENANTS. The terms listed below
("Defined Terms") shall have the following meanings throughout this Lease, and
the covenants described in this Section I.1 shall have the same effect as the
terms and conditions of the Lease:
(a) Lessor: SANDOVAL RENTALS LLC, a Washington limited liability company.
(b) Lessee: GRANT COUNTY DBA RENEW
(c) Premises: The designated space specifically referred to as the building which
the Lessee conducts business in which is comprised of a portion of one (1)
building suite 4 on the property more particularly described in Exhibit "N which is
also attached hereto (the "Property"). Unless otherwise notified by Lessee within
thirty (30) days of taking possession, by entry hereunder Lessee accepts the
Premises as being in the condition in which Lessee is obligated to deliver the
Premises. Lessee shall at the end of the term and any extension herein
surrender to Lessor the Premises and all alterations, additions, and
improvements thereto in the same condition as when received; ordinary wear
and tear, damage by fire, earthquake, or act of God excepted. Lessor has no
liability and has made no representation to alter, improve, repair, or paint the
Premises or any part thereof.
(d) Rentable Area of the Prem'ises: 114 Camelia ST Suite 4
Royal City.
(e) Term: Three. (3) years following the Lease Commencement Date 01/01/2023
Rent may increase 6% per year.
COMMERCIAL LEASE
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LEASE BREACH: Lease shall pay the equivalent of two months rents to
terminate the lease prior to the end of the lease term. The security deposit will
not be considered a lease break fee,
(0 Lease Commencement Date,: 01/01/2023
(g) Base Rental: Base rent will be $1,500 per month. Rent is due the last day of
every month. Water and sewer are an additional $50.00 per month. Costs have
.3ant''.' BOTH PARTIES AGREE THAT THE
been estimated at
RENT FOR THE FIRST FOUR MONTHS WILL BE $1 1000 A MONTH AFTER
APRIL 2023 RENT WILL BE $1500.00 A MONTH.
(h) Deposit: $1500.00. See Article 5.
(i) Use-, Any other lawful use allowed in Washington. See Article 6.
0) Parking Privileges: Lessee Is authorized to use the area. This is an non-
exclusive right. Lessor also uses the same area forparking and equipment
storage.
(k) Normal Hours: Monday through Friday, from 7,30 a.m. to 6:30 p.m., excepting
state and/or federal holidays.
(1) Improvements: : Lessor will make improvements requested by lessee at
$10,000 cost payment is due upon receipt. -
(m) Broker: Lessor and Lessee each hereby represent and warrant to the of
that 'it has not engaged or dealt with any real estate brokers, salesperson,
finders, or other persons entitled to any compensation relating to this Lease.
(n) Notices: All notices, requests, consents, approvals, payments in connection
with this Lease, or communications that either party desires or is required or
permitted to give or make to the other party under this Lease, shall only be
deemed to have been given, made and delivered, when made or given inwritinq
and personally served, or deposited in the United States mail, certified or
registered mail, return receipt requested, postage prepaid to the respective
addresses of Lessee or Lessor as set forth below. Lessor or Lessee may from
time to time designate other addresses for notice purposes by written notice to
the other 'in accordance herewith.
Lessee's Address for'Notices: 840 E Plum St, Moses Lake, WA 98837
Lessee's Address for Billing Purposes: 840 E Plum St, Moses Lake, WA 98837
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Lessor's Address for Notices: 14005 Dodson Rd S, Royal City, WA 99357
Copy to: Toni Meacham, Attorney at Law, 1420 Scooteney Rd, Connell, WA
99326.
Lessor's Address For Payment of Rent: 14005 Dodson Rd S, Royal City, WA
99357
(o) Recitals: The recitals stated above are incorporated by this reference as
though the same were set fourth in full. Said recitals are incorporated as part of
the Lease agreement between the parties and are binding on same.
(p) Parties: The parties herein are Lessor and Lessee and Lessor has no
ownership 'in Lessee's enterprise. The parties are not partners, nor joint
venturers, nor owners of any kind.
(q) Waiver: Any waiver by Lessor of any breach of any part of the Lease
agreement shall not be deemed to be nor considered a waiver of the rights and
remedies granted in said Lease agreement nor a waiver of any rights or
remedies under law.
(r) Hold Over: At the expiration of the Lease agreement, Lessee shall not hold
over, or continue in possession of the property. Such action, hold over, shall not
be construed as a renewal nor extension of this Lease. Said hold over may only
be construed as to create a month to month tenancy which may be terminated by
the Lessor at any time.
(s) Lessor Liability: The Lessor in this Lease shall not be liable to Lessee nor any
other person for any damage arising from any acts or negligence of third parties
or the public, nor for any damages that might arise by acts of God, labor
disputes, or any causes beyond the control of the Lessor.
Section 1.2 GENERAL CONDITIONS.
(a) Unless this Lease provides for a contrary standard, whenever in this Lease
the consent or approval of the Lessor or Lessee is required, such consent or
approval shall not be unreasonably withheld or delayed (except, however, with
respect to any Lessor consent, for matters which could possibly have an adverse
effect on the Building's plumbing, heating, mechanical, life safety, ventilation, air
conditioning or electrical systems, which could affect the structural integrity of the
Building, or which could affect the exterior appearance of the Building, Lessor
may withhold such consent or approval in its sole discretion but shall act in good
faith); and
COMMERCIAL LEASE
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(b) Unless a contrary standard or right is set forth in this Lease, whenever the
Lessor or Lessee 'is granted a right to take action, exercise discretion, or make
an allocation, judgment or other determination, Lessor or Lessee shall act
reasonably and in good faith and take no action which might result in the
frustration of the reasonable expectations of a sophisticated Lessee and a
sophisticated Lessor concerning the benefits to be enjoyed under this Lease.
Section 1.3 LEASE OF PREMISES. Lessor leases to Lessee, and Lessee
leases from Lessor, 114 Camelia St NE , Suite 4, Royal City, a portion of the
described Premises, in their current condition and to pay all rentals as stated in
said Lease at the times and in the manner required in the Lease agreement.
ARTICLE 2 - TERM
Section 2.1 EFFECTIVE DATE. This Lease will become effective on January 1st.
2023...
Section 2,2 COMMENCEMENT DATE. The Term of this Lease and the Rent
shall commence on the date that is shown in Section 1 - 1(f) of this Lease
Agreement ("Commencement Date"). In the event the Commencement Date
should occur on a date other than that indicated in Section 1.1
( g then Lessor
shall send Lessee notice of the occurrence of the Commencement Date, which
notice Lessee shall acknowledge by executing a copy of the notice and returning
it to Lessor. If Lessee fails to sign and return the notice to Lessor within ten (1 0)
days of receipt of the notice from Lessor, the notice as sent by Lessor shall be
deemed to have correctly set forth the Commencement Date. Failure of Lessor to
send such notice shall have no effect on the Commencement Date.
Section 2,3 DELAY IN DELIVERY OF PREMISES. If Lessor is unable to deliver
possession of the Premises to Lessee on or before the Commencement Date,
Lessor shall not be subject to any liability for its failure to do so. This failure shall
not affect the validity of this Lease or the obligations of Lessee under it, but the
Lease Term shall commence on the date on which Lessor delivers possession of
the Premises to Lessee. The Lease Expiration Date shall be extended for a like
period plus any additional period required to make the Lease Expiration Date the
last day of the calendar month. Lessor shall use its commercially reasonable
efforts to enforce its rights to possession of the Premises against any holdover
Lessee. If Lessor is unable to deliver possession of the Premises to Lessee by
January 1, 2023, then either party shall have the right to terminate this Lease by
providing the other party with written notice thereof within five (5) business days
following said Outside Date.
Section 2.4 TOTAL TERM AND RENEWAL. If Lessee wishes to renew the term
of the lease at the end of the three (3) year term, notice shall be given to Lessor
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to begin lease negotiations. If Lessee does not notify Lessor, Lessor will begin
advertising the space for rent and has every right to do so.
Section 3.1 PAYMENT OF BASE RENTAL. Lessee shall pay the Base Rental, in
advance, without prior notice, demand or billing statement, on or before the first
day of each calendar month during the entire Term. Concurrently with Lessee's
execution of this Lease and the submission thereof for Lessor's execution,
Lessee shall pay to Lessor the Base Rental payable hereunder for one full
calendar month of the Term as set forth in Section 1.1(g k On the
Commencement Date, Lessee shall pay to Lessor the prorated Base Rental
attributable to the month in which the Commencement Date occurs if the
Commencement Date occurs on a date other than the first day of a calendar
month. Rent shall not include electricity, taxes, nor insurance which shall be the
responsibility of the Lessee.
Section 3.2 GOVERNMENTAL ASSESSMENTS. In addition to the Base Rental,
Lessee shall pay, prior to delinquency, all personal property taxes, charges,
rates, duties and license fees assessed against or levied upon Lessee's
occupancy of the Premises, or upon any Lessee Improvements, trade fixtures,
furnishings, equipment or other personal property contained in the Premises
(collectively, "Personal Property"). Lessee shall cause such assessments upon
Personal Property to be billed separately from the property of Lessor. Lessee
hereby agrees to indemnify, defend and hold Lessor harmless from and against
the payment of all such assessments. Lessee shall also pay electricity, taxes,
and insurance under the triple net system.
Section 13 SPECIAL CHARGES FOR SPECIAL SERVICES. Lessee agrees to
pay to Lessor, within ten (10) days following written demand, all charges for any
services, goods and/or materials, which shall include Lessor's 15% administrative
cost surcharge thereon, furnished by Lessor at Lessee's request which are not
otherwise required to be furnished by Lessor under this Lease without separate
charge or reimbursement.
Section 3.4 DEFINITION OF RENT. Any and all payments of Base Rental
(including any and all increases thereof) and any and all taxes, fees, charges,
costs, expenses, insurance obligations, late charges, interest, and all other
payments, disbursements or reimbursements (collectively, "Rent") which are
attributable to, payable by or the responsibility of Lessee under this Lease,
constitute "rent" within the meaning of applicable law. Any Rent payable to
Lessor by Lessee for any fractional month shall be prorated based on a three
hundred sixty-five (365) day year. All payments owed by Lessee under this
COMMERCIAL LEASE
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Lease shall be paid to Lessor in lawful money of the United States of America at
the Lessor's Address for Payment of Rent set forth in Section 1.1(n} or such
other address as Lessor notifies Lessee in writing from time to time. All payments
shall be paid without deduction, setoff, or counterclaim.
Section 15 LATE CHARGE. Lessee acknowledges that the late payment of
Rent will cause Lessor to incur damages, including administrative costs, loss of
use of the overdue funds and other costs, the exact amount of which would be
impractical and extremely difficult to ascertain. Lessor and Lessee agree that if
Lessor does not receive a payment of Rent within five (5) days after the date that
such payment is due, Lessee shall pay to Lessor a late charge equal to ten
percent (10%) of the delinquent amount, as liquidated damages for the damages
which Lessor is likely to incur for the thirty (30) day period following the due date
of such payment. Further, all portions of Rent not paid within thirty (30) days
following its due date and all late charges associated therewith shall bear interest
at the Interest Rate (as defined below) beginning on the thirty-first (31st) day
following the due date of such Rent and continuing until such Rent, late charges
and interest are paid in full. Acceptance of the late charge, and/or interest by
Lessor shall not cure or waive Lessee's default, nor prevent Lessor from
exercising, before or after such acceptance, any and all of the rights and
remedies for a default provided by this Lease or at law or in equity. Payment of
the late charge and/or interest is not an alternative means of performance of
Lessee's obligation to pay Rent at the times specified in this Lease. Lessee will
be liable for the late charge regardless of whether Lessee's failure to pay the
Rent when due constitutes a default under this Lease. The term "Interest Rate"
shall mean the maximum interest rate permitted by law or twelve (12) percent,
whichever is greater.
Section 3,6 ACCELERATION OF BASE RENTAL PAYMENTS. In the event a
late charge becomes payable pursuant to Section 3.5 of this Lease for three (3)
payments of any one or more elements of Rent within a twelve(12) month
period, then all subsequent Rent payments shall immediately and automatically
become payable by Lessee quarterly, in advance, instead of monthly. After one
(1) year of quarterly rent payments being made in a timely manner, the monthly
rent payment date shall be reinstated.
Section 17 DISPUTES AS TO PAYMENTS OF RENT. Lessee agrees to pay
the Rent required under this Lease within the time limits set forth in this Lease. If
Lessee receives from Lessor an invoice or statement, which invoice or statement
is sent by Lessor in good faith, and Lessee in good faith disputes whether all or
any part of such Rent is due and owing, Lessee shall nevertheless pay to Lessor
the amount of the Rent indicated on the invoice or statement until Lessee
receives a final judgment from Grant County Superior Court or when arbitration
is permitted or required, receives a final award from an arbitrator) relieving or
COMMERCIAL LEASE
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mitigating Lessee's obligation to pay such Rent. In such instance where Lessee
disputes its obligations to pay all or part of the Rent 'Indicated on such invoice or
statement, Lessee shall, concurrently with the payment of such Rent, provide
Lessor with a letter or notice entitled "Payment Under Protest," specifying in
detail why Lessee is not required to pay all or part of such Rent. Lessee will be
deemed to have waived its right to contest any past payment of Rent unless it
has filed a lawsuit against Lessor in Grant County Court (or when arbitration is
permitted or required, filed for arbitration and has served Lessor with notice of
such filing), and has served a summons on Lessor, within one (1) year of such
payment. Until an Event of Default by Lessee occurs, Lessor shall continue to
provide the services and utilities required by this Lease.
ARTICLE 4 - SECURITY DEPOSIT
Section 4.1 SECURITY DEPOSIT. $1,500 security deposit was required, without
waiving any other remedy available to Lessor, Lessee will not have said Security
Deposit necessary to cure or remedy such failure or to compensate Lessor for
any or all damages sustained by Lessor resulting from Lessee's failure to comply
fully and timely with its obligations pursuant to this Lease. Lessee shall
immediately pay to Lessor on demand the amount required in the event Lessee
has caused harm to the Premises or Lessor.
Section 6.1 RESTRICTION ON USE. Lessee shall not do or permit to be done in
or about the Property, nor bring, keep or permit to be brought or kept therein,
anything which is prohibited by Washington state law or by any standard form fire
insurance policy or which will in any way, increase the existing rate of, or affect,
any fire or other insurance upon the Building or its contents, or which will cause a
weight load or stress on the floor or any other portion of the Premises in excess
of the weight load or stress which the floor or other portion of the Premises is
designed to bear. Lessee, at Lessee's sole cost, shall comply with all laws of the
State of Washington, and all Grant County Code affecting the Premises, and with
the requirements of any Board of Fire Underwriters or other similar body now or
hereafter instituted, and shall also comply with any order, directive or certificate
of occupancy issued pursuant to any Laws, which affect the condition, use or
occupancy of the Premises, including, but not limited to, any requirements of
structural changes related to or affected by Lessee's acts, occupancy or use of
the Premises. The judgment of an Grant County Court or the admission of
Lessee in any action against nst Lessee, whether or not Lessor is a party to such
action, shall be conclusive as between Lessor and Lessee in establishing such
violation. Lessee shall not conduct uses other than which are permissible by
Lessor of its other Lessees in the Building.
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Section 5.2 COMPLIANCE BY OTHER LESSEES. Lessor shall not be liable to
Lessee for any other occupant's or Lessee's failure to conduct itself in
accordance with the provisions of this Article 6, and Lessee shall not be released
or excused from the performance of any of its obligations under this Lease in the
event of any such failure.
Section 5.3 ASSIGNMENT AND SUBLETTING. Lessee shall not assign this
lease without prior written consent of the Lessor, which shall not be unreasonably
withheld. Lessee shall be allowed to sublet any portion of the premises Lessee
desires to sublet. Notice of said subletting shall be given to Lessorprior to
subletting. Subletting will not increase the rental rate. Any such assignment or
subletting without consent shall be void and, at the option of the Lessor, may
terminate this lease. Assignment nor subletting will release the Lessee in any
way from the terms of this Lease agreement. Said Lease agreement will continue
to be binding without the express written release of the Lessor.
ARTICLE 6 - ALTERATIONS AND ADDITIONS
Section 6.1 ADDITIONS OR IMPROVEMENTS TO THE PREMISES. Lessee
shall not have the right to make any alterations additions or improvements to the
Premises without the Lessor's express prior written consent. In,the event Lessee
requests Lessor's consent to make Alterations, such consent shall be, without
exception, and at a minimum conditioned on Lessor's standard rules and
regulations regarding Alterations.
Section 6.2 FIXTURES. All Lessee Improvements upon the Premises and any
replacements therefor, including all air-conditioning or heating systemspanelin
,g,
decorations, partitions and railings affixed to the realty, except furniture or
movable trade fixtures *installed at the expense of Lessee, shall become the
property of the Lessor and shall remain upon, and be surrendered with, the
Premises as a part thereof at the termination of this Lease, without compensation
to Lessee; unless, Lessor, by notice given to Lessee prior to the end of the Term,
shall elect to have Lessee remove any or all such Lessee Improvements.
Thereupon Lessee shall accomplish such removal at its sole cost, repair any
damage caused by such removal, and restore the Premises to their former
condition.
ARTICLE 7 - REPAIRS AND REENTRY.
Section 7,1 REPAIRS. Lessee will, at Lessee's own cost and expense, maintain
and keep the Premises and any alterations and additions thereto in sound
condition and good repair, and shall pay for the repair of any damage or injury
done to the Building or any part thereof by Lessee or Lessee's agents,
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employees and invitees; provided, however, that Lessee shall make no repairs to
the Premises without the prior written consent of Lessor. The performance by
Lessee of its obligation to maintain and make repairs shall be conducted only by
contractors approved by Lessor after plans and specifications have been
approved by Lessor. Lessee will not commit or allow any waste or damage to be
committed on any portion of the Premises, and upon the termination of this
Lease by lapse of time or otherwise, Lessee shall deliver up the Premises to
Lessor in as good condition as at date of possession, ordinary wear and tear
excepted. Upon such termination of this Lease, Lessor shall have the right to
reenter and resume possession of the Premises. Notwithstanding the foregoing
provisions of this Paragraph 8, any repairs to the Premises or the Building that
are necessitated because of any damage caused by fire or other casualty shall
be governed by theprovisions below. Lessee shall also be responsible for
maintenance to the exterior, structural and common areas of the Building, as well
as the maintenance on the temporary easement as discussed above.
Section 7.2 Ili DEMNIFIATION. Lessor shall not be liable for any damage or
injury to Lessee, or any other person, or to any property, occurring on the
demised premises or any part thereof, and Lessee agrees to hold Lessor
harmless from any claim for damages, no matter how caused, inclusive of
Lessee's failure to maintain and repair the property and premises.
Section 7.3 DESTRUCTION OF PREMISES. In the event of a partial destruction
of thep remises during the term hereof, from any cause, Lessor shall forthwith
repair the same, after receiving insurance proceeds for said repair, provided that
such repairs can be made within sixty (60) days under existing governmental
laws and regulations, but suchpartial destruction shall not terminate this lease,
excet that Lessee shall be entitled to a proportionate reduction of rent while
p
such repairs are being made, based upon the extent to which making the repairs
cannot be made within sixty (60) days, Lessor, at his option, may make the same
within a reasonable time, this lease continuing in effect with the rent
proportionately abated as aforesaid, and in the event that Lessor shall not elect
to make such repairs which cannot be made within sixty (60) days, this lease
may be terminated at the option of either party. In the event that the building in
which the dernised premises may be situated is destroyed to an extent of not less
than one-third of the replacement cost, Lessor may elect to terminate this lease
whether the demised premises be injured or not. A total destruction of the
building in which thepremises may be situated shall terminate this lease.
Section 7.4 LIENS. Lessee will not permit any lien of any kind to be
placed on the Premises or Property for which said Lessee is leasing from Lessor.
Liens for improvements or repairs placed on the property must be remedied
within thirty (30) days or will be considered a default under this Lease agreement.
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Section 7.5 WEATHER. Lessee shall keep the Premises, inclusive of the
temporary easement, free of all snow, ice, rubbish, debris, and obstructions. This
includes all walkways, public areas, roofing, gutters, and other improvements on
the Premises. Said weather may cause damage to the Premises or may lead to
damage to persons or property. Lessee agrees to accept and hold Lessor
harmless against any injury or damage, whether to Lessor, Lessor's property, or
a third party over which Lessor has no control.
ARTICLE 8 - ENTRY FOR REPAIRS AND INSPECTION. Lessor and its agents
and representatives shall have the right to enter into and upon any and all parts
of the Premises at all reasonable hours (or, in any emergency, at any hour) to
inspect same or clean or make repairs or alterations or additions as Lessor may
deem necessary, and Lessee shall not be entitled to any abatement or reduction
of rent by reason thereof. During the period of one hundred {1 o) days prior to
the expiration date of this Lease, Lessor and Lessor's agents may exhibit the
Premises to prospective Lessees at reasonable hours and upon prior notice to
Lessee.
Section 9.1 FIRE DAMAGE, Lessor shall maintain fire and extended coverage
insurance on the Building and the Leased Premises in such amounts as Lessor
shall deem appropriate. Lessee shall be responsible, at its expense, for fire and
extended coverage insurance on all of its personal property, including removable
trade fixtures, located in the Leased Premises. Lessor shall be an additional
insured under said policy and Lessee will maintain that the policy is for no less
than,$750,000.00 for the Leased Premises. The contents and otherproperty of
Lessee shall be in additional amounts.
Section 9,2 POLICIES. Lessee shall, at its own expense, maintain a policy or
policies of comprehensive general liability insurance with respect to the
respective activities in the building with the premiums thereon fully paid on or
before due date, issued by and binding upon some insurance company approved
by Lessor, such insurance to afford minimum protection of not less than
$1,000,000 combined single limit coverage of bodily injury, property damage or
combination thereof. Lessor shall be listed as an additional insured on Lessee's
policy or policies of comprehensive general liability insurance, and Lessee shall
provide Lessor with current Certificates of Insurance evidencing Lessee's
compliance with this Paragraph. Lessee shall obtain the agreement of Lessee's
insurers to notify Lessor that a policy is due to expire at least (10) days prior to
such expiration. Lessor shall not be required to maintain insurance for the
Leased Premises nor the Building. Lessee agrees to pay Lessor for all of the
insurance premiums paid by Lessor for the insurance policies identified above in
the event that Lessee fails to show proof of insurance to Lessor OR falls to
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provide a new policy at least 48 hours prier or to the expiration of the previous
policy. Lessee shall pay the insurance premiums paid by Lessor within ten (10)
days of receiving the statement or receipt from Lessor for said payment of the
premium.
Lessee agrees and shall hold Lessor harmless against, any and all claims
or damages arising out of negligence of the Lessee, its officers, agents, invitees,
employees, as well as those arising due to Lessee's failure to comply with the
Lease agreement, and Lessee shall, at Lessee's expense, defend Lessor against
any and all suits, actions, or demands arising out of said actions or negligence,
actual or alleged, and all further appeals or judgments which may be awarded.
Section 9.3 WAIVER AND SUBROGATION OF RIGHTS. Neither party shall be
liable to the other for the loss arising out of damages to, or destruction of, the
leased Premises, building, or improvements, when such loss is caused by any of
the perils which are not nor could be 'Included in an extended policy claim, such
as an "Act of God." Both parties agree to release any interest or claim in the
others policy or proceeds, unless specifically covered as a joint insured, or
should be listed as a joint insured. Both parties shall give notice to its respective
insurance carriers.
ARTICLE 10 — UTILITIES. Lessee shall pay all charges for water, sewer, gas,
electricity, telephone and other services and utilities used by Lessee on the
Premises during the term of this Lease unless otherwise expressly agreed in
writing by Lessor. In the event that any utility or service provided to the Leased
Premises is not separately metered, Lessor shall pay the amount due and
separately invoice Lessee for Lessee's pro rata share of the charges. Lessee
shall pay such amounts within fifteen (15) days of 'Invoice. Lessee acknowledges
that the Leased Premises are designed to provide standard electrical facilities
and standard lighting. Lessee shall not use any equipment or devices that utilizes
excessive electrical energy or which may, in Lessor's reasonable opinion,
overload the wiring or interfere with electrical services to other Lessees.
ARTICLE 11 — QUIET POSSESSION. Lessor covenants and warrants that upon
performance by Lessee of its obligations hereunder, Lessor will keep and
maintain Lessee in exclusive, quiet, peaceable and undisturbed and
uninterrupted possession of the Leased Premises during the term of this Lease.
ARTICLE 12 — CONDEMNATION. If any legally, constituted authority condemns
the Building or such part thereof which shall make the Leased Premises
unsuitable for leasing, this Lease shall cease when the public authority takes
possession, and Lessor and Lessee shall account for rental as of that date. Such
termination shall be without prejudice to the rights of either party to recover
compensation from the condemning authority for any loss or damage caused by
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the condemnation. Neither party shall have any rights in or to any award made to
the other by the condemning authority.
ARTICLE 13 — SUBORDINATION. Lessee accepts this Lease subject and
subordinate to any mortgage, deed of trust or other lien presently existing or
hereafter arising upon the Leased Premises, or upon the Building and to any
renewals, refinancing and extensions thereof, but Lessee agrees that any such
mortgagee shall have the right at any time to subordinate such mortgage, deed
of trust or other lien to this Lease on such terms and subject to such conditions
as such mortgagee may deem appropriate in its discretion. Lessor is hereby
irrevocably vested with full power and authority to subordinate this Lease to any
mortgage, deed of trust or other lien now existing stinq or hereafter placed upon the
Leased Premises of the Building, and Lessee ag-rees upon demand to execute
such further Instruments subordinating this Lease or attorning to the holder of
any such liens as Lessor may request. In the event that Lessee should fail to
execute any instrument of subordination herein require d to be executed by
Lessee promptly as requested, Lessee hereby irrevocably constitutes Lessor as
its attorney-in-fact to execute such instrument In Lessee's name, place and
stead, it being agreed that such power is one coupled with an interest. Lessee
agrees that it will from time to time upon request by Lessor execute and deliver to
such persons as Lessor shall request a statement in recordable formcertifying
that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified), stating the
dates to which rent and other charges payable under this Lease have beenpaid,
stating that Lessor is not in default hereunder (or if Lessee alleges a default
stating the nature of such alleged default) and further stating such other matters
as Lessor shall reasonably require.
ARTICLE 14 — MEMORANDUM OF LEASE. The parties hereto contemplate
that this Lease shall not be filed of record with the Adams County Auditors office,
however, the form of the lease has been drafted in such a way oin
to allow fr filg
should the need arise.
'ARTICLE 16 — SUCCESSORS. The provisions of this Lease shall extend to and
be binding upon Lessor and Lessee and their respective legal representatives,
successors and assigns.
ARTICLE 16 — FINAL AGREEMENT. This Agreement terminates and
supersedes all prior understandings or agreements on the subject matter hereof.
Thi's Agreement may be modified only by a further writing that is duly executed
by both parties.
ARTICLE 17 — GOVERNING LAW.
COMMERCIAL LEASE
PG 13
Section 17.1 ARBITRATION. All matters pertaining to this agreement (including
its interpretation, application, validity, performance and breach) in whatever
jurisdiction action may be brought, shall be governed by, construed and enforced
in accordance with the laws of the State of Washington, County of Grant The
parties herein waive trial by jury and agree to submit any controversy or claim
arising out of or relating to this lease agreement, or the breach thereof, shall be
settled by arbitration administered by the American Arbitration Association under
its Commercial Arbitration Rules, and judgment on the award rendered by the
arbitrator(s) may be entered in Grant County Washington. In the event that
litigation and/or arbitration results from or arises out of this Agreement or the
performance thereof, the parties agree to reimburse the prevailing party's
reasonable attorney's fees, court costs, and all other expenses, whether or not
taxable by the court as costs, in addition to any other relief to which the prevailing
party may be entitled. In such event, no action shall be entertained by said court
or any court of competent jurisdiction if filed more than one year subsequent to
the date the cause(s) of action actually accrued regardless of whether damages
were otherwise as of said time calculable.
Section 17,2 DEFAULT. If Lessee defaults: (a) in the payment of rent, (b) or any
additional rent, (c) or' defaults in the performance of any of the other covenants or
conditions hereof, or (d) or declares bankruptcy or insolvency, (e) or abandons
theproperty for more than fifteen (15) days, (f) or a receiver or assignment of
property occurs with the Lessee, (g) or at the expiration of the Lease, Lessee
fails to surrender possession, Lessor may give Lessee notice of such default and
if Lessee does not cure any such default within seven (7) days, after the giving of
such notice or if such other default is of such nature that it cannot be completely
cured within such period, if Lessee does not commence such curing within such
seven (7) days and thereafter proceed with reasonable diligence and in good
faith to cure such default), then Lessor may terminate this lease on not less than
thirty (30) days' notice to Lessee. On the date specified in such notice the term of
this lease shall terminate, and Lessee shall then quit and surrender the premises
to Lessor, but Lessee shall remain liable as hereinafter provided. If this lease
shall have been so terminated by Lessor, Lessor may at any time thereafter
resumepossession of the premises by any lawful means and remove Lessee or
other occupants and their effects. No failure to enforce any term shall be deemed
a waiver. In the event of a default on the contract all legal action will be brought
in Adams County, Washington.
Default under this Lease and the necessity of termination of the Lease and
repossession of the Premises does not waive nor forfeit Lessor's rights and
remedies under Washington state law. Lessor retains all actions, rights,
remedies, rent or damage, and right to possession as allowed under the Lease
and law.
COMMERCIAL LEASE
PG 14
In the event that Lessor does take possession, Lessor is allowed to relet
or lease the Premises in whole or in part to any lessee able, willing, and deemed
appropriate by Lessor to take possession of the Premises and under the terms
and conditions that Lessor may obtain. Lessor shall apply said subsequent rents
received from the new lessee first to of costs of repossession and remedies
and second to rent in arrears as well as future rents owned under the Lease.
Lessee shall remain liable for any deficiency payments not obtained, as well as
other expenses, costs, and attorney's fees which are allowed to be recovered
under this lease.
ARTICLE 18- SIGNAGE. Lessee shall obtain Lessor's written permission for any
additional signage, Lessee already has in place signage that is acceptable to
Lessor. Said signage may not change without written permission from Lessor.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written.
[Lds'5or] 61
Manager SANDOVAL RENTALS LLC
[Lessee] V
Danny E Stone, BOCC Chair
[Lessee]
Rob Jonq�s, Viii Chair
[Lessee]
Cindy Caherl Member
ober Manager
Member Manager
, Member Manager
and
both, jointly and severally, personally guarantee all conditions and requirements
under this Lease agreement. This guaranty is binding upon all successors, heirs,
assigns, and said guarantee will not be released nor discharged until all
conditions and/or requirements under the Lease have been met in full and the
Lease is terminated in good standing.
COMMERCIAL LEASE
PG 15