COMMERCIAL LEASE
THIS LEASE made and entered into this 1st date of October 2001, between
Covold Partners hereinafter called "Landlord" and US Patriot Inc
hereinafter called "Tenant".
WITNESSETH
In consideration of the covenants and agreements of the respective
parties herein contained, the parties hereto do hereby agree as
follows:
A. DEMISED PREMISES
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Landlord by these present does hereby demise and let unto Tenant,
and Tenant leases and hires from Landlord all these certain premised
hereinafter more fully described, together with and the buildings
and other improvements now and hereafter erected thereon for the
term and upon the rental and the covenants and agreements of the
respective parties herein set forth.
Said premises consist of a parcel of ground located in the State of
South Carolina, County of Richland, City of Columbia, address is
5401 Forest Drive.
B. TERMS
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The term of this lease shall be for three (3) years commencing
October 1, 2001 and terminating September 30, 2004.
C. COVENANTS AND CONDITION OF LEASE:
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This lease is made on the following covenants and conditions which
are expressly agreed to by the Landlord and the Tenant:
1. RENT: Tenant agrees to pay as rental to Landlord the
annual sum of Thirty Eight Thousand One Hundred
($38,100.00) Dollars, payable in equal monthly
installments of Three Thousand One Hundred Seventy Five
($3175.00) Dollars per month to Covold Partners,
Calendar Court, Suite 4, Columbia, SC 29206. Rent is
due on the last cay of the month and shall not be
withheld for any reason whatsoever.
In the event Tenant shall fail to pay each rental on the
due date or within ten (10) days thereafter, a late charge
of (2%) percent of the monthly rental shall be added to the
rental and paid to the Landlord for each late payment, and
the same shall be treated as additional rent.
2. CONDITION OF PREMISES: Tenant has inspected and
accepted leased premises in the same condition they are in
at the time of commencement of the term of this Lease.
Tenant agrees if, during said term, Tenant shall change the
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usual method of conducting Tenant's business on leased
premises, or should Tenant install thereon or therein any
new facilities, Tenant will at the cost and expense of
Tenant, make alterations or improvements in or to the
demised which may be required of Federal or State law, or
by any municipal ordinance, or regulation applicable
thereto.
3. REPAIR AND CARE OF BUILDING BY TENANT: Tenant shall,
throughout the initial term of this Lease and any renewals
thereof, as its own expense, maintain in food order and
repair the leased premises, including the building and
other improvements located thereon. Such repairs by Tenant
shall include as applicable but not limited to, repairs to
electrical and plumbing systems and fixtures, air-
conditioning and heating systems, loading doors, paved
parking areas and drives, mowing of grass and care of
shrubs. Tenant shall at its expense contract with a
reputable firm for periodic servicing of the heating, air-
conditioning and ventilation systems as recommended by the
manufacturer of such equipment and shall keep on file with
Landlord or its agent a copy of said contract or other
substantial proof of such servicing. Tenant shall be
responsible for all repairs to heating and air conditioning
equipment including parts and labor. Tenant shall also
maintain pest control (including termite) inspection and
treatment of the premises as required. Tenant agrees to
return said premises to Landlord at the expiration or prior
termination of this lease in as good condition and repair
as when received, natural wear and tear, damage by storm,
fire lightening, or other natural casualty excepted.
5. ALTERATION OF BUILDING AND INSTALLATION OF FIXTURES AND
OTHER APPURTENANCES: Tenant may, with prior written
consent of Landlord, but at its own cost and expense in a
good, workmanlike manner, make such alterations and
repairs in the building as Tenant may require for the
conduct of its business without, however, materially
altering the basic character of the building or
improvements, or weakening any structure on the demised
premises. Tenant shall have the right without the
permission of the Landlord to erect at Tenants sole cost
and expense, such temporary partitions, including office
partitions, as mat be necessary to facilitate the
handling of Tenant's business and to install electrical
fixtures, additional lights and wiring and other trade
appliances. Any alterations and improvements to the
leased premises, including but not limited to partitions,
all electrical fixtures, lights and wiring, shall at the
option of Landlord, become the property of Landlord, at
the expiration or sooner termination of this lease.
Should Landlord request Tenant to remove all or any part
of the above mentioned items, Tenant shall do so prior to
the expiration of this lease, or any extension thereof,
Tenant shall remove said shelves, bins and machinery, and
repair, in good and workmanlike manner, all damage done
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to the lease premises by such removal. Tenant shall not
exercise the right and privilege granted by this Article
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qualities of the building. Before any work is begun,
tenant agrees to furnish Landlord with hold harmless
agreements from all contractors protecting against
mechanics liens.
6. SUBORDINATION OF LEASE: Tenants rights under this lease
shall remain subordinate to any bona fide mortgage or
deed to secure debt, which is now, or may hereafter be
placed upon the premises by Landlord.
7. CONDEMNATION: In the event any part of the premises
shall be taken or condemned at any time during the term
hereof through the exercise of power of eminent domain,
with or without litigation, and Tenant shall determine
that the remaining portion of premises are not reasonably
suitable for it's use and occupation of premises are
giving written notice to Landlord within ninety (90) days
after the date of such taking, terminate this lease and
Landlord shall refund any unearned rent paid in advance
by Tenant. If Tenant does not terminate this lease as
provided above, this lease shall continue in force as to
the remaining portion of the demised premises and in such
event the monthly rental thereafter payable by Tenant
hereunder shall be adjusted and prorated in the exact
ratio which the value or the premises remaining after
such condemnation bears to the value of the premises
immediately preceding the condemnation, and Landlord
shall, at its own expense, make any repairs or
alterations to said premises which may be necessary to
restore the premises, in so far as possible, to their
condition prior to condemnation.
In the event of the taking of all or any
portion of the premises if the Tenant terminates the lease
as provided above, Landlord and Tenant shall together
pursue the claim against the condemning or taking authority
for the value of the property taken and tenant shall
receive from the condemnation award the value of his
improvements, of any, so taken; Tenant shall receive no
other part of the condemnation award. If the lease is not
terminated, Landlord shall receive the entire award in the
condemnation proceeding.
8. ERECTION AND REMOVAL OF SIGNS: Tenant shall place
suitable signs on the leased premises for the purpose of
the indicating the nature of the business carried on by
the Tenant in said premises; provided, they shall not
damage the leased premises in any manner. At the
termination of this, Landlord may require that the Tenant
remove his sign and any damage to the premises caused by
the removal shall be promptly repaired by the Tenant.
Tenant shall be responsible for applying for and paying
for any and all licenses or fees which may be required by
any governmental authority as it pertains to signage. And
further, Tenant shall adhere to all local sign ordinances
as it pertains to the erection of the signs on the
premises.
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9. GLASS BREAKAGE AND VANDALISM: Tenant agrees to
immediately replace all broken or damaged glass with
glass of a comparable quality and characteristics which
meets appropriate agence building code requirements,
excepting breakage covered under Landlord's normal fire
and extended coverage insurance policy. Tenant shall make
any repairs or replacements caused by vandalism to the
premises or any part thereof, if said damage is not
covered by Landlord's insurance.
10. RIGHT OF ENTRY OF LANDLORD: Tenant at any time during
this lease term shall permit inspection of the demised
premises during reasonable business hours by Landlord or
Landlord's agents or representatives for the purpose of
ascertaining the condition of the demised premises and in
order that the Landlord may make such repairs as may be
required to be made by the Landlord under the terms of
this lease. Sixty (60) days prior to the expiration of
this lease, Landlord may post suitable notice on the
demised premises that the same are "For Rent" and may
show the premises to prospective tenants at reasonable
times. Landlord may not, however, thereby unnecessarily
interfere with the use of demised premises by Tenant.
11. PAYMENT OF UTILITIES: Tenant shall contract for and
pay all charges for sewage, water, gas, electricity and
other public utilities used on the leased premises,
including all replacements of light bulbs, tubes,
ballasts and starters. Landlord may pay any delinquent
bills incurred by the Tenant during the lease term which
bills may create a lien on the demised premises and shall
upon demand be immediately reimbursed by Tenant. Said
payments shall be treated as additional rental even
though the lease term may have expired.
12. ASSINGNMENT AND SUBLETTING: Neither this lease nor any
interest herein may be assigned by the Tenant voluntarily
or involuntarily, by operation of law, and neither all
not any part of the leased premises shall be sublet by
Tenant without the written consent of Landlord first had
and obtained; however, Landlord agrees not to withhold
it's consent unreasonably for Tenant to sublet the
demised premises.
13. DAMAGE OR DESTRUCTION: If the demised premises or any
part thereof shall be damaged or destroyed by fire or
other casualty, Landlord shall promptly repair all such
damage and restore the demised premises without expense
to Tenant, subject to delays due to adjustment of
insurance claims, strikes and other causes beyond
Landlord's control. If such damage or destruction shall
render the premises untenantable in whole or in part, the
rent shall be abated wholly or proportionately as the
case may be until the damage shall be repaired and the
premises restored. If the damage or destruction shall be
so extensive as to require the substantial rebuilding
(i.e., expenditure of fifty (50%) percent or more of
replacement costs) of the building or buildings on the
demised premises, Landlord or Tenant may elect to
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terminate this lease by written notice to the other given
thirty (30) days after the occurrence of such damage or
destruction.
Landlord and Tenant hereby release each
other from liability for loss or damage occurring on or to
the leased premises or the premises of which they are a
part or to the contents of either thereof, caused by fire
or other hazards ordinarily covered by fire and extended
coverage insurance policies and each waives all rights of
recovery against the other for such loss or damage. Willful
misconduct lawfully attributable to either part, whether in
whole or in part a contributing cause of the casualty
giving rise to the loss or damage, shall not be excused
under the foregoing release and waiver.
14. INJURIES AND PROPERTY DAMAGE: Tenant agrees to
indemnify and hold Landlord harmless of and from any and
all claims of any kind or nature arising from Tenant's use
of the demised premises during the term hereof, and tenant
hereby waives all claims against Landlord for damage to
goods, wares, or merchandise of for injury to persons in
and upon the premises from any cause whatsoever, except
such as might result from the negligence of Landlord or
Landlord's representatives or from failure of Landlord to
perform it's obligation herunder within a reasonable within
a reasonable time after notice in writing by Tenant
requiring such performance by Landlord. Tenant shall at all
times during the term hereof keep in effect in responsible
companies liability insurance in the names of and for the
benefit of Tenant and Landlord with limits as follows:
Bodily Injury .$ 100,000 each person
$ 300,000 each accident
Property Damage . $ 100,000
Such insurance may, at Tenant's election, be
carried under any general blanket coverage of Tenant. A renewal policy
shall be procured not less than ten (10) days prior to the expiration
of any policy. Each original policy or a certified copy thereof, or a
satisfactory certificate of the insurer evidencing insurance carried
with proof of payment of the premium shall be deposited with Landlord.
Tenant shall have the right to settle and adjust all liability claims
and all claims against the insuring companies, but without subjecting
Landlord to any liability or obligation.
15. SURRENDER OF PREMISES: Tenant agrees to deliver all
keys and to surrender the leased premises at the
expiration, or sooner termination, of this lease, or any
extension thereof, broom-clean in the same condition as
said when premises were delivered to Tenant, or as
altered, pursuant to the provisions of this lease,
ordinary wear, tear and damage by the elements excepted,
and Tenant shall remove all of it's property. Tenant
agrees to pay a reasonable cleaning charge should it be
necessary for Landlord to restore or cause to the
restored the premises to the same condition as when said
premises were delivered to Tenant.
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16. QUIET ENJOYMENT: If and so long as Tenant pays the
rents reserved by this lease and performs and observes
all the covenants and provisions hereof, Tenant shall
quietly enjoy the demised premises, subject, however, to
the terms of this lease, and the Landlord will warrant
and defend Tenant in the enjoyment and peaceful
possession of the demised premises throughout the term of
the lease.
17. WAIVER OF COVENANTS: It is agreed that the waiving of
any of the covenants of this lease agreement by either
party shall be limited to the particular instance and
shall not be deemed to waive any other breaches of such
covenant or any provision herein contained.
18. DEFAULT: If Tenant shall make default in the
fulfillment of any of the covenants and conditions hereof
except default in payment of rent, Landlord may, at it's
option, after fifteen (15) days prior to notice to
Tenant, make performance for Tenant and for the purpose
advance such amounts as may be necessary. Any amounts so
advanced or any reasonable expence incurred or sum of
money paid by Landlord by reason of the failure of Tenant
to comply with any covenant, agreement, obligation, or
provision of this lease shall be deemed to be additional
rent for the leased premises and shall be dire and
payable to Landlord on demand. The acceptance by Landlord
or any installment of fixed rent or of any additional
rent hereunder shall not be a waiver of any other rent
than due.
If Tenant shall make default in
fulfillment of any of the covenants or conditions of this lease (other
then the covenants for the payment of rent or other amounts) and any
such default shall continue for a period of thirty (30) days after
notice, then Landlord may, at it's option, terminate this lease by
giving Tenant notice of such termination and, thereupon, this lease
shall expire as fully and completely as if that day were the date
definitely fixed for the expiration of the term of this lease and
Tenant shall then quit and surrender the leased premises.
19. DEFAULT IN RENT, INSOLVENCY OF TENANT: If Tenant shall
make default in the payment of the rent reserved
hereunder, or any part thereof, or making nay other
payment herein provided for , and any such default shall
continure for a period of fifteen (15) days, after
written notice to Tenant, or if the leased premises or
any part thereof shall be abandoned or vacated or if the
Tenant shall be dismissed therefrom by or under any
authority other than Landlord, or if Tenant shall file a
voluntary petition in bankruptcy or if Tenant shall file
any petition or institute any proceedings under any
Insolvency or Bankruptcy Act or any amendment therto
hereafter made, made seeking to effect it's
reorganization or a composition with it's creditors or
if, in any proceedings based on the insolvency of the
Tenants or relation to bankruptcy proceedings, a receiver
or trustee shall be appointed for Tenant or the leased
premises or if any proceedings shall be commenved for the
reorganization of Tenant or if the leasehold estate
created hereby shall admit in writing it's inability to
pay it's obligations generally as they become due, then
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Landlord may, at it's option, terminate this lease,
without notice, and Landlord or Landlord's agents and
servants may immediately, or at any time thereafter, re-
enter said premises by force, summary proceedings or
otherwise, and remove all persons and property therein,
without being liable to indictment, prosecution or damage
therefore, and Tenant herby expressly waives the service
of any notice in writing of intention to re-enter said
premises. Landlord may in addition to any other remedy
provided by law or permitted herein, at it's option
re-let said premises on behalf of Tenant, applying any
moneys collected first to the payment of expenses of
resuming or obtaining permission, and second to the
payment of costs of placing the leased premises in
rentable condition, including leasing commission, and
third to the payment of rent due hereunder, and any other
charges due to the Landlord. Any surplus remaining
thereafter shall be paid to Tenant and Tenant shall
remain liable for any deficiency in rental which shall
be paid upon demand therefore to Landlord.
20. ENFORCEMENT: In the even either party shall enforce
the terms of this lese by suit or otherwise, the party at
fault shall pay the costs and expenses incident thereto,
including a reasonable attorneys fee.
21. FAILURE TO PERFORM COVENANT: Any failure on the part
of either party to theis lease to perform any obligation
hereunder, and any delay in doing any act required hereby
shall be excused if such failure or delay is caused by
any other similar caused by any strike, lockout,
governmental restriction or any other similar cause
beyond the control of the party so failing to perform, to
the extent and for the period that such continues, save
and except that the provisions of this paragraph shall
not excuse a non-payment fo rent or other sums due
hereunder on it's due day.
22. RIGHTS TO SUCCESSORS AND ASSIGNS: The covenants and
agreements contained in the within lease shall apply to,
inure to the benefit of, and be binding upon the parties
hereto, their heirs, distributes, executors,
administrators, legal representatives, assigns and upon
their respective successors in interest, except as
expressly otherwise hereinbefore provided.
23. LIENS: Tenant agrees not to permit any lien for moneys
owing by Tenant to remain against the leased premises for
a period of more then thirty (30) days following
discovery of the same by Tenant; provided, however, that
nothing herin contained shall prevent Tenant, in good
faith and for good cause, from contesting in the courts
the claim or claims of any person, firm or corporation
growing out of Tenants operation of the demised premises
or costs of improvements by Tenant on the said premises,
and the postponement of payment of such claim or claims,
until such contest shall finally be decided by the courts
shall not be a violation of this agreement or any
covenant thereof. Should any such lien be filed and not
released or discharged or action not commenced to declare
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the same by Tenant, Landlord may at Landlord's option
(but without any obligation so to do) pay and discharge
such lien and may likewise pay and discharge any taxes,
assessments or other charges against the leased premises
which Tenant is obligated hereunder to pay and which may
or might become a lien on said premises. Tenant agrees to
repay any sums so paid by Landlord upon demand therefore,
together with interest at the rate of ten (10%) percent
per annum for the date any such payment is made.
24. CONSTRUCTION OF LEASE: The word " Landlord" as used
herein shall refer to the individual, individuals,
partnership, or corporation called "Tenant". Word of any
gender used in this lease shall be held to include any
other gender, and words in a singular number shall be
held to include plural when the sense requires.
25. NOTICES: It is agreed that the legal address of the
parties for all notices required or permitted to give
hereunder, or for all purposes of billing, process,
correspondence, and any other legal purposes whatsoever,
shall be deemed sufficient, if given by communication in
writing by United States mail, postage prepaid and
certified, and address as follows: To the Landlord at the
following address: Covold Partners, 17 Calender Ct
Suite 4 Columbia, SC 29206. To the Tenant at the
following address: U.S. Patriot, 5401 Forest Drive,
Columbia, SC 29206.
26. ADDITIONAL PROVISIONS: Insofar as the following
provisions conflict with other provisions of the lease,
the following shall control.
A. INSURANCE: Tenant shall maintain suitable fire and
extended coverage insurance upon the building during the
term of this lease and any renewals thereof, and agrees
to name the Mortgage as additional named on the policy.
Such insurance will be to the full extent of the
insurable replacement value of the building improvements.
Tenant agrees to provide the Landlord with written proof
of such insurance protection. It is further understood
that Tenant shall be responsible for maintaining it's own
fire and extended coverage insurance on it's contents.
Such insurance may be carried under a blanket policy by
Tenant.
B. REAL ESTATE TAXES: To be paid by Landlord.
27. SECURITY DEPOSIT: Security deposit of Three thousand
three hundred seventy five Dollars ( $3375)
WITNESS: LANDLORD: Covold Partners
____________________ By:______________________
Mike Arnold
____________________ By:______________________
Tenant U.S. Patriot
____________________ By:____________________
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