EXHIBIT 10.5
COMMERCIAL LEASE
This lease is made between Xxxxxxx Xxxxxxx of Fort Lauderdale, herein
called the Lessor, and Video Boundaries, herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the
City of Pompano Beach, County of Broward, State of Florida, described as 00
Xxxxxxxxx 00xx Xxxxxx, Xxxxx 000, upon the following TERMS and CONDITIONS:
1. Term and Rent. Lessor demises the above premises for a term of 1 year,
commencing Mardh 1st, 2003 and terminating on February 28th, 2004 or
sooner as provided herein at the annual rental of Ten Thousand and Eight
Hundred Dollars ($10,800.00) plus 6% Sales Tax payable in equal
installments in advance on the first day of each month for that month's
rental, during the term of this lease. Paymetns received after the
fifth (5th) day of each month will incur a late fee in the amount of ten
percent (10%) of the monthly rental amount. All rental payments shall
be made to Xxxxx Realty Consultants, Inc. at 0000 XX 00xx Xxxxxx, Xxxxx
00, Xxxx Xxxxxxxxxx, XX 00000.
2. Use. Lessee shall use and occupy the premises for general offices. The
premises shall be used for no other purpose. Lessor represents that the
premises may lawfully be used for such purpose.
3. Care and Maintenance of Premises. Lessee acknowledges that the premises
are in good order and repair, unless otherwise indicated herein. Lessee
shall, at his own expense and at all times, maintain the premises in
good and safe condition, including plate glass, electrical wiring,
walls, carpet, window treatments, and shall surrender the same, at
termination hereof, in as good condition as received, normal wear and
tear excepted. Lessee shall be responsible for all repairs required,
excepting the roof, air conditioning, exterior walls, and structural
foundations, which shall be maintained by Lessor.
4. Alterations. Lessee shall not, without first obtaining the written
consent of Lessor, make any alterations, additions, or improvements, in,
to or about the premises.
5. Ordinances and Statutes. Lessee shall comply with all statutes,
ordinances and requirements of all municipal, state and federal
authorities now in force, or which may hereafter be in force, pertaining
to the premises, occasionally by or affecting the use thereof by Lessee.
6. Assignment and Subletting. Lessee shall not assign this lease or sublet
any portion of the premises without prior written consent of the Lessor,
which shall not be unreasonably withheld. Any such assignment or
subletting without consent shall be void and, at the option of the
Lessor, may terminate this lease.
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7. Entry and Inspection. Lessee shall permit Lessor or Lessors agents to
enter upon the premises at reasonable times and upon reasonable notice,
for the purpose of inspecting the same, and will permit Lessor at any
time within sixty (60) days prior to the expiration of this lease, to
place upon the premises any usual "to Let" or "For Lease" signs, and
permit persons desiring to lease the same to inspect the premises
thereafter.
8. Possession. If Lessor is unable to deliver possession of the premises
at the commencement hereof, Lessor shall not be liable for any damage
caused thereby, nor shall this lease be void or voidable, but Lessee
shall not be liable for any rent until possession is delivered. Lessee
may terminate this lease if possession is not delivered within ten (10)
days of the commencement of the term hereof.
9. Indemnification of Lessor. 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 claims for damages, no matter how caused.
10. Insurance. Lessee, at his expense, shall maintain plate glass and
public liability insurance including bodily injury and property damage
insuring Lessee.
11. Eminent Domain. If the premises or any part therof or any estate
herein, or any other part of the building materially affecting Lessee's
use of the premises, shall be taken by eminent domain, this lease shall
terminate on the date when title vests pursuant to such taking. The
rent, and any additional rent, shall be apportioned as of the
termination date, and any rent paid for any period beyond that date
shall be repaid to Lessee. Lessee shall not be entitled to any part of
the award for such taking or any payment in lieu thereof, but Lessee may
file a claim for any taking of fixtures and improvements owned by
Lessee, and for moving expenses.
12. Destruction of Premises. In the event of a partial destruction of the
premises during the term hereof, from any cause, Lessor shall forthwith
repair the same, provided that such repairs can be made within sixty
(60) days under existing governmental laws and regulations, but such
partial destruction shall not terminate this lease, except that Lessee
shall be entitled to a proportionate reduction of rent while such
repairs are being made, based upon the extent to which the making of
such repairs shall interfere with the business of Lessee in the
premises. If such repairs cannot be made within said sixty (60) days,
Lessor, at his option, may make the same within a reasonable time, this
lease containing 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 demised premises may be situated is destroyed to
an extent of not less than one-third of the replacement costs thereof,
Lessor may elect to terminate this lease whether the demised premises be
injured or not. A total destruction of the building in which the
premises may be situated shall terminate this lease.
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13. Lessor's Remedies on Default. If Lessee defaults in the payment of
rent, or any additional rent, or defaults in the performance of any of
the other covenants or conditions hereof, Lessor may give Lessee notice
of such default and if Lessee does not cure any such default within
three (3) days, after 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 three (3) 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
three (3) day's 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 shll remain liable as
hereinafter provided. If this Lease shall have been so terminated by
Lessor, Lessor may at any time thereafter resume possession 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.
14. Security Deposit. Lessee shall deposit with Lessor on the signing of
this lease the sum of Nine Hundred Dollars ($900.00) as security for the
performance of Lessee's obligations under this lease, including without
limitation the surrender of possession of the premises to Lessor as
herein provided. If Lessor applies any part of the deposit to cure any
default of Lessee, Lessee shall on demand deposit with Lessor the amount
so applied so that Lessor shall have the full deposit on hand at all
times during the term of this lease.
15. First and Last Month's Rent. Lessor will collect from Lessee, before or
upon signing of this lease, an amount equal to two months rent plus
applicable sales tax, to be applied toward the first and last rental
months. This Sum is in addition to the security deposit sighted in
Paragraph 15.
16. Attorney's Fees. In case suit should be brought for recovery of the
premises, or for any sum due hereunder, or because of any act which may
arise out of the possession of the premises, by either party, the
prevailing party shall be entitled to all costs incurred in connection
with such action, including a reasonable attorney's fee.
17. Waiver. No failure of Lessor to enforce any term hereof shall be deemed
to be a waiver.
18. Notices. Any notice which either party may or is required to give,
shall be given by mailing the same, postage prepaid, to Lessee at the
premises, or Lessor at the address specified above, or at such other
places as may be designated by the parties from time to time.
19. Heirs, Assigns, Successors. This lease is binding upon and inures to
the benefit of the heirs, assigns ansd successors in interest to the
parties.
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20. Option to Renew. Provided that Lessee is not in default in the
performance of this lease, Lessee shall have the option to renew the
lease for an additional term of one year commencing at the expiration of
the initial lease term. All of the terms and conditions of the lease
shall apply during the renewal term except that the monthly rental rate
on the first extension will be Eleven Thousand, Eight Hundred and Eighty
Dollars ($11,880.00), plus applicable State Sales Tax, and will increase
to Thirteen Thousand and Sixty Eight Dollars ($13,068.00) plus sales tax
for the second one (1) year term. The option shall be exercised in
written notice given to Lessor not less than ninety (90) days prior to
the year term. The option shall be exercised in written notice given to
Lessor not less than ninety (90) days prior to the expiration of the
initial lease term. If notice is not given in the manner provided
herein within the time specified, this option shall expire.
21. Subordination. This lease is and shall be subordinated to all existing
and future liens and encumberances against the property.
22. Suite Alterations. It is understood that all suite alterations will be
at Lessee expense with prior written approval from Landlord.
23. Radon Gas Disclosure. As required by law, (Landlord) makes the
following disclosure: "Radon Gas" is a naturally occurring radioactive
gas that, when it has accumulated in a building in sufficient
quantities, may present health risks to persons who are exposed to it
over time. Levels of radon that exceed federal and state guidelines
have been found in building in 00 XX 00xx Xxxxxx, Xxxxxxx Xxxxx,
Xxxxxxx. Additional information regarding radon and radon testing may
be obtained from your county public health unit.
24. Entire Agreement. The foregoing constitutes the entire agreement
between the parties and may be modified only by a writing signed by both
parties. The following Exhibits, if any have been made a part of this
lease before the parties' execution hereof:
Signed this 7th day of February, 2003
By: /s/ Xxxxxxx Xxxxxxx By:
Lessee Video Without Boundaries Lessor
President & CEO
