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HomeMy WebLinkAboutIndustrial Lease Agreement - OT General - 12/9/2015 NG INDUSTRIAL LEASE AGREEMENT RECEIVED DEC 0 9 2015 f� 26 W. CEDAR ST, THIS INDUSTRIAL LEASE (this "Lease") dated this Yday of October,2015 BETWEEN: Canopy Park LLC of 3800 Jester Ct SW, Olympia,WA 98502 Telephone: 3 60-867-115 7 (the "Landlord") -AND— OGZ Fireweed LLC of 2525 Alaska Ave,Port Orchard,WA 98366 Telephone: 360-865-1135 (the "Tenant") IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows: 1. DESCRIPTION OF PREMISES. Landlord hereby leases to Tenant, and Tenant hereby hires from Landlord, on the terms and conditions hereinafter set forth, those certain premises described in Exhibit"A" hereto, commonly known as Building E Canopy Park, 450 W Dayton Airport Road, Shelton, Mason County, Washington("Premises"). 2. TERM. The term of this lease is five (5) years commencing the day Landlord delivers the building to Tenant ("Commencement Date") and ending five (5) years from the date possession is given to Tenant unless sooner terminated pursuant to any provision set forth below. All rents will start on the day Landlord delivers possession of the building. 3. EXTENDED TERM. This lease will automatically extend for three (3) additional independent five (5) year terms ("Extended Term") following expiration of the initial term, unless Tenant gives written notice by registered mail prior to one (1) year before the expiration of the current term, but not more than two (2) years before expiration of the current term, that Tenant intends not to exercise its option for an extended term. Provided that, if Tenant is in default on the date written notice is required, such Extended Term option shall be completely ineffective, and if Tenant is in default on the date the extended term is to commence, the extended term shall not commence and this lease shall expire at the end of the initial term. Tenant shall have no other right to extend the term beyond the extended term. AK CIEUVED Nov 3 0 2015 426 W. CEDAR S7 4. RENT. (a) Monthly base rent amount: $1.33/sq ft per month for each square foot in the building leased under this Lease. (b) Additional Rent: This Lease Agreement is a "triple net" Lease under which Tenant agrees to pay all costs and expenses related to the Premises including the costs of utilities,taxes and assessments,the costs of maintenance and repairs of the Premises. Accordingly, it is understood and agreed that the Base Rent set forth in paragraph(a)is net of these costs and expenses. Any portion of these charges that are paid by the Landlord will be subject to the Tenant's obligation to reimburse as set forth in this Lease Agreement. Any of these reimbursable costs and expenses will be paid by Tenant as"Additional Rent." As soon as reasonably possible following the end of each year of the lease term, Landlord shall determine and provide to Tenant a statement setting forth the amounts actually incurred for reimbursable costs and expenses. If the expense exceeds the amount paid in Additional Rent, Tenant shall pay to Landlord the difference within thirty (30) days following receipt of said statement. If the figure is less than the amount paid in Additional Rent, the difference shall be credited against the next monthly Additional Rent payment(s) until satisfied. (c) Rent Increases: The base rent will increase by 3% per year on an annual basis throughout the term of this lease. The first increase will occur January 01, 2017 and on all subsequent January firsts thereafter. (d) The monthly Base Rent and Additional Rent and any other amounts due under the terms of this Lease shall be due and payable on the I" day of each month and will be considered late if paid after the 7th of the month. (e) If Tenant fails to pay any monthly Base Rent or Additional Rent payment or other amount owed to Landlord when it is due, Tenant shall pay as Additional Rent a sum equal to $100 per day for each day in arrears. (f) Proration: If the Commencement Date is on any other than the first day of a month, the first month's rent shall be the base rent divided by the number of days in that month, multiplied by the number of days in that month that Tenant occupies the Premises. Such prorated amount shall be payable on the first day of occupancy. Definitions 1. When used in this Lease, the following expressions will have the meanings indicated: a. "Additional Rent" means all amounts payable by the Tenant under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease; b. 'Building" means the Lands together with the numbered buildings, improvements, equipment, fixtures, property and facilities from time to time thereon, as from time to time altered, expanded or reduced by the Landlord in its sole discretion; c. "Common Areas and Facilities" mean: those portions of the Building areas, buildings, improvements, facilities, utilities, equipment and installations in or forming part of the Building which from time to time are not designated or intended by the Landlord to be leased to tenants of the Building including, without limitation, exterior weather walls, roofs, entrances and exits, parking areas and driveways. d. "Leasable Area" means with respect to any rentable premises, the area expressed in square feet of all floor space determined, calculated and certified by the Landlord and measured from the exterior face of all exterior walls, doors and windows, There will be no deduction or exclusion for any space occupied by or used for columns, ducts or other structural elements; e. "Premises" means the warehouse space which is located approximately as shown in red on Schedule 'B' attached to and incorporated in the Lease and comprises a Leasable Area of 12,000 square feet (actual square footage); Leased Premises 2. The Landlord agrees to rent to the Tenant the warehouse space municipally described as Building E which is located approximately as shown in red on Schedule "B" attached to and incorporated in the Lease and comprises a Leasable Area of 12,000 actual square footage. The Premises are more particularly described as follows: The Premises will be used for only the following permitted use (the Permitted Use"): any and all lawful uses as provided in the laws of the State of Washington. Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by Tenant for any purpose other than the Permitted Use. If any changes are planned, they are to be approved by the Landlord. 3. Subject to the provisions of this Lease, the Tenant is entitled to the use of parking (the 'Parking') on or about the Premises— five stalls per building and 1 handicap parking stall per building. 4. The Premises are provided to the Tenant As Is. Tenant will finish the interior to Tenant's specifications at Tenant's sole expense and will become Landlord's property when Lease ceases. Term 5. Upon 10 days' notice, the Landlord may terminate the tenancy under this Lease if the Tenant fails to observe, perform and keep each and every of the covenants, agreements, stipulations, obligations, conditions and other provisions of this Lease to be observed, performed and kept by the Tenant and the Tenant persists in such default beyond the said 10 days' notice. 6. Should the Tenant remain in possession of the Premises with the consent of the Landlord after the natural expiration of this Lease, a new tenancy from month to month will be created between the Landlord and the Tenant which will be subject to all the terms and conditions of this Lease but will be terminable upon either party giving one month's notice to the other party- Rent 7. Subject to the provisions of this Lease, the Tenant will pay a base rent of$1.33 per square foot (approximately $1.33), payable per month, for the Premises (the "Base Rent"),In addition to the Base Rent, the Tenant will pay the following taxes to the Landlord: all real property taxes and assessments as apportioned to Tenant's rented property. 8. Rent must be received no later than the 7b of each month at PO Box 3795, Lacey, WA 98509, or at such other place as the Landlord designates. A late charge of$100.00 per day will be assessed for rent that is late. 9. The Base Rent for the Premises will increase over the Term of the Lease as follows: yearly based on the Federal Cost of Living index for the Puget Sound Area. Landlord Responsibilities 10. Tenant is not responsible for the following: a. any increase in insurance premiums to the center as a result of business activities of other Tenants; b. the costs of any capital replacements; c. the costs incurred or accrued due to the willful act or negligence of the Landlord or anyone acting on behalf of the Landlord; d. structural repairs; e. costs for which the Landlord is reimbursed by insurers or covered by warranties; f. costs incurred for repairs or maintenance for the direct account of a specific Tenant or vacant space; g. costs recovered directly from any Tenant for separate charges such as heating, ventilating, and air conditioning relating to that Tenant's leased premises, and in respect of any act, omission, neglect or default of any Tenant of its obligations under its Lease. Guarantees 11. The personal guarantee by the Guarantor will be attached as a schedule to this Lease and will serve as a form of guarantee to this Lease. 12. The Guarantor (individually and collectively the "Guarantor") is the person who has agreed to execute the Personal Guarantee of the Tenant's obligations and covenants in this Lease in the form attached to this Lease as Exhibit "C". Initial Pavment 13. On execution of this Lease, The Tenant will pay the Landlord the non-refundable sum of $25,000.00 as consideration for Landlord to enter into this Lease. Quiet Enioyment 14. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the Tenant will peacefully and quietly have, hold, and enjoy the Premises for the agreed term. Additional Rights on Reentry 15. If the Landlord reenters the Premises or terminates this Lease,then: a. notwithstanding any such termination or the term thereby becoming forfeited and void, the provisions of this Lease relating to the consequences of termination will survive; b. the Landlord may use such reasonable force as it may deem necessary for the purpose of gaining admittance to and retaking possession of the Premises and the Tenant hereby releases the Landlord from all actions,proceedings, claims and demands whatsoever for and in respect of any such forcible entry or any loss or damage in connection therewith or consequential thereupon; c. the Landlord may expel and remove, forcibly, if necessary,the Tenant,those claiming under the Tenant and their effects, as allowed by law,without being taken or deemed to be guilty of any manner of trespass; d. in the event that the Landlord has removed the property of the Tenant, the Landlord may store such property in a public warehouse or at a place selected by the Landlord, at the expense of the Tenant. If the Landlord feels that it is not worth storing such property given its value and the cost to store it,then the Landlord may dispose of such property in its sole discretion and use such funds, if any,towards any indebtedness of the Tenant to the Landlord. The Landlord will not be responsible to the Tenant for the disposal of such property other than to provide any balance of the proceeds to the Tenant after paying any storage costs and any amounts owed by the Tenant to the Landlord; e. the Landlord may re-let the Premises or any part of the Premises for a term or terms which may be less or greater than the balance of the term of this Lease remaining and may grant reasonable concessions in connection with such reletting including any alterations and improvements to the Premises; f. after re-entry,the Landlord may terminate the Lease on giving 5 days written notice of termination to the Tenant. Without this notice,reentry of the Premises by the Landlord or its agents will not terminate this Lease; �I g. the Tenant will pay to the Landlord on demand: i. all rent, Additional Rent and other amounts payable under this Lease up to the time of reentry or termination, whichever is later; ii. reasonable expenses as the Landlord incurs or has incurred in connection with the reentering, terminating, reletting, collecting sums due or payable by the Tenant, realizing upon assets seized; including without limitation, brokerage, fees and expenses and legal fees and disbursements and the expenses of keeping the Premises in good order, repairing the same and preparing them for reletting; and iii. as liquidated damages for the loss of rent and other income of the Landlord expected to be derived from this Lease during the period which would have constituted the unexpired portion of the term had it not been terminated, at the option of the Landlord, either: Landlord Improvements 16. The Landlord will make no addtional improvements to the Premises. Utilities and Other Costs 17. The Landlord is responsible for the payment of the following utilities and other charges in relation to the Premises: septic and retention ponds. 18. The Tenant will also directly pay for the following utilities and other charges in relation to the Premises: any and all cost of doing business expenses specifically incurred by Tenant. Release of Liability and Indemnity 19. Tenant agrees that Landlord shall not be held liable to Tenant, Tenant's employees or agent, or any invitee or licensee of Tenant for death or injury to persons or damages to or destruction of property sustained by Tenant or any invitee or licensee of Tenant, including but not limited to patent or dangerous conditions of the Premises caused by Tenant and those of its invitees and licensees. Tenant further agrees to indemnify, defend and hold Landlord harmless from an against all claims, losses, costs and damages, including but not limited to attorney's fees, and actions pertaining to the Tenant's occupancy and use of the Premises and arising out of bodily injury, disease, death or property damages, including loss of use, whether it is caused in whole or in part by the negligence of Landlord. Liability Insurance 20. Tenant, at its sole expenses, shall procure and maintain in full force and effect, commercial general liability insurance in responsible companies qualified to do business in the State of Washington, which shall insure Tenant and his agents and employees against all claims for injuries or death to persons occurring in or about the leased Premises in a combined single limit amount of not less than $1,000,000.00. Tenant agrees to furnish Landlord with policies or endorsements of such insurance naming Landlord as an additional insured prior to the commencement of the term hereof. Each policy shall be non-cancelable without at least thirty (30 s written notice to Landlord. Such ) days policies endorsements shall e r nacl claims po cies or endorseme s s a b payable on an occurrence basis rather than o ai s made basis. Attorney Fees 21. In the event that any action is filed in relation to this Lease, the unsuccessful parry in the action will pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees. Governing Law 22. It is the intention of the Parties to this Lease that the tenancy created by this Lease and the performance under this Lease, and all suits and special proceedings under this Lease,be construed in accordance with and governed,to the exclusion of the law of any other forum, by the laws of the State of Washington,without regard to the jurisdiction in which any action or special proceeding may be instituted. Severability 23. If there is a conflict between any provision of this Lease and the applicable legislation of the State of Washington(the 'Act'),the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Lease. Assignment and Subletting 24. Tenant may sublet leased premises at any time with Landlord's prior written approval. Landlord will approve subletting to all qualified persons. Upon this occurrence, Landlord, Tenant, and proposed Tenant will enter into a written novation agreement terminating Tenant's obligation under this Lease providing original Tenant is current on all lease obligations up to such time with the proposed Tenant assuming all Tenant's future lease obligations. Care and Use of Premises 25. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises. 26. Vehicles which the Landlord reasonably considers unsightly, noisy, dangerous, improperly insured, inoperable or unlicensed are not permitted in the Tenant's parking stall(s), and such vehicles may be towed away at the Tenant's expense. Parking facilities are provided at the Tenant's own risk. The Tenant is required to park in only the space allotted to them. 27. The Tenant will not make (or allow to be made) any noise or nuisance which, in the reasonable opinion of the Landlord, disturbs the comfort or convenience of other tenants. 28. The Tenant will not engage in any trade or activity on or about the Premises which is illegal under Washington State Law. 29. The Landlord and Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law. Surrender of Premises 30. At the expiration of the lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements excepted. Hazardous Materials 31. The Tenant will not keep or have on the Premises any article or thing of a dangerous, flammable , or explosive character that might unreasonably increase the danger of fire on the Premises, that are not necessary to the Tenant's operation or that might be considered hazardous by any responsible insurance company. Rules and Regulations 32. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Building, parking lot, and other common facilities that are provided for the use of the Tenant in and around the Building on the Premises. General Provisions 33. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord's rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord's rights in respect of any subsequent default or breach. 34. This Lease will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be construed as conditions of this Lease. 35. Where there is more than one Tenant executing this Lease, all Tenants are jointly and severally liable for each other's acts,omissions and liabilities pursuant to this Lease. Tenant's Right to Termination 36. Tenant may terminate this Lease if it has completed all State Liquor Board requirements and through no fault of its own,the State Liquor Board denies to issue Tenant a 502 License in which case, Landlord keeps any deposits and/or payments made by Tenant that are non- refundable. 37. If for any reason during the pendency of this Lease, Mason County, the State of Washington and/or the United States Federal Government outlaws "i-502 grows" this Lease will be terminated and Landlord will keep any deposits and/or payments made by Tenant that are nonrefundable. IN WITNESS WHEREOF the Parties to this Lease have duly affixed their si atures under hand and seal, or a duly authorized officer under this seal, on thist day of do , 20 ►5 ti Canopy ark LLC OGZ Fireweed LLC Daniel Kirby,Managing Member Kristopher A Lundquist,Man 'ng Member State of Washington County of "Q'C�:On On this day personally appeared before me Canopy Park LLC, to me known to be the individual or individuals described in and who execute the within and foregoing instrument, and acknowledged that he (she or they) signed the same as his (her or their) free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal this.Bday of 20A-'-2--. Date: Q� 5 Signa4,4=fA Title: 10\"Ij My Appointment Expires: 161r) l 1 �� (Seal) (Notary Seal) S�"' . State of Was ' gton ,,.�;pNN•••• sF.o County of cajj N p T A q Y•: Jan 192019 State of Washington y P U 8 L 1 G ;;�0 County of '••,,OF WAs�r�• On this day personally appeared before me `r gaTenant, to me known to be the individual or individuals described in and who execute the within and foregoing instrument, and acknowledged that he (she or they) signed the same as his (her or their) free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal thisbday of 20 jc . E Date: B , ac) I5 Signature: Title: �� My Appointment Expires: AM l o� 9 (Seal)