|
Exhibit 10.53
LEASE
THIS LEASE is made and
entered into effective as of May 30, 2007, by and between
JFS Desert Fountain Properties, LLC,
(“Landlord”), a Minnesota limited liability company,
and Classic Affairs, Inc. (“Tenant”), a
Minnesota corporation.
Landlord, in consideration of
the rents, terms, covenants, conditions and agreements hereinafter
provided and described on the part of Tenant to be paid, kept and
performed, hereby leases and lets unto Tenant, and Tenant hereby
takes and hires from Landlord, the Property described in Article I
hereof, and Landlord and Tenant hereby covenant, promise and agree
as follows:
ARTICLE I.
THE
PROPERTY
The Property consists of real
property located at 115 4 th Street South,
Minneapolis, Minnesota, 55402 and legally described as set forth in
Exhibit A hereto, together with all buildings and improvements
thereon and all appurtenances belonging thereto.
ARTICLE II.
TERM
The term of this Lease
(“Term”) shall be approximately one (1) month,
commencing on May 30, 2007 (the “Commencement
Date”), and ending on June 30, 2007. In the event Tenant
holds over at the end of the Term, Tenant’s occupancy of the
Property shall be on a month-to-month basis only and shall not
constitute a renewal or extension of this Lease.
ARTICLE
III.
BASE RENT
Tenant shall pay to Landlord,
at 60 South Sixth Street, Suite 2540, Minneapolis, MN 55402 or at
such other place as Landlord may from time to time designate in
writing, minimum rent (“Base Rent”) in the amount of
eight-hundred thirty-three dollars and no/100 ($833.00) per day and
payable in advance on the Commencement Date and on the first day of
each and every calendar month during the Term. If the Commencement
Date occurs other than on the first day of a calendar month, the
monthly installment of Base Rent payable for the calendar month
during which the Commencement Date occurs shall be prorated, based
on the number of days during such calendar month from and including
the Commencement Date through the end of such calendar month. In
the event Tenant or an affiliate of Tenant purchases the property,
any Base Rent paid, but not yet earned, shall be refunded to
Tenant.
This Lease is a net lease,
and all rents and other sums payable under this Lease by Tenant,
whether denominated as rents or otherwise, shall be considered rent
as between Landlord and Tenant and shall be paid without offset,
counterclaim, abatement or defense, and this Lease shall not be
subject to termination by Tenant by reason of any cause whatever,
unless such right to terminate is expressly set forth in this
Lease.
ARTICLE IV.
TAXES
Tenant agrees to pay, as
additional rent, before the same would be delinquent, all real
estate taxes and installments of special assessments against the
Property due and payable in each year during the Term, including,
without limitation, one hundred eighty-eight dollars and 15/100
($188.15) in real estate taxes per day. The amount of such taxes
and assessments payable by Tenant during any partial calendar year
in the Term shall be prorated, based on the number of days during
such calendar year which are within the Term.
ARTICLE V.
ACCEPTANCE OF PROPERTY;
REPAIRS AND MAINTENANCE
By taking occupancy of the
Property, Tenant shall be deemed to have acknowledged that it has
inspected the Property and accepts it in an “as is”
condition. It is the intention of the parties that Landlord shall
have no obligation of repair under this Lease and that Tenant shall
be responsible for all maintenance, repairs, replacements and
renewals.
Tenant covenants and agrees
to keep and maintain the Property in good order, condition and
repair, including without limitation the interior and exterior
portions of all doors, doorchecks and operators, windows, plate
glass, plumbing, water and sewage facilities, fixtures, electrical
equipment, interior and exterior walls, ceilings and roofs, signs,
interior and exterior building appliances and similar equipment
used for the Property, and heating and air conditioning equipment,
and Tenant further agrees to replace any of said equipment when
necessary. Tenant shall keep the Property and the fixtures and
equipment therein in a clean, safe and sanitary condition; will
take good care thereof; will suffer no waste or injury thereto;
will neither do nor permit to be done therein anything which is in
violation of the terms of any mortgage or insurance policy on or
relating to the Property; will neither do nor permit to be done on
the Property anything in violation of any law or ordinance
applicable thereto; and will at the expiration or other termination
of the Term, surrender the same, broom clean, in the same order and
condition in which they are on the Commencement Date, ordinary wear
and tear excepted. Tenant also shall be responsible for snow
removal from stoops, walkways, parking lots and driveways on or
adjoining the Property.
If Tenant refuses or neglects
promptly and adequately to commence or complete any repairs to or
maintenance of the Property in the condition required above,
Landlord may, but shall not be required to, do so, in which event
Tenant shall pay the cost thereof to Landlord upon
demand.
Landlord has made no
representation as to any particular zoning or permitted use of the
Property, and Tenant is taking the Property without reliance upon
any representation of Landlord as to the use to which Tenant
intends to put the Property.
2
ARTICLE VI.
INSURANCE AND
INDEMNITY
Throughout the Term, Tenant
at its expense shall procure and maintain public liability
insurance with respect to the use and occupancy of the Property,
with combined limits of at least $1,000,000, and Landlord of the
Property shall at all times be named as an additional insured
thereon. Each such liability policy shall provide that it cannot be
canceled without thirty (30) days’ prior written notice
to Landlord and each such mortgagee.
Landlord reserves the right
to place rent insurance on the Property, insuring against the loss
of rental income from this Lease in an amount not to exceed one
year’s rent. Tenant shall reimburse Landlord for the cost of
all such policies of insurance placed by Landlord. The cost of such
insurance shall be additional rent due under this Lease and shall
be paid by Tenant, either in equal monthly installments or on the
anniversary date of such policy, at Landlord’s
option.
Throughout the Term, Tenant
at its expense shall procure and maintain insurance, naming
Landlord and its mortgagee(s) as insured parties, which covers the
Property against fire, windstorm and such other risks as may be
included in all risk type insurance as may from time to time be
available, in the amount of the full insurable value of the
Property, and with such endorsements as Landlord deems appropriate
in the exercise of its reasonable business judgment. Such insurance
shall be issued so as to be in compliance with the requirements of
any mortgage encumbering the Property. Throughout the Term, Tenant
at its expense also shall procure and maintain adequate hazard
insurance covering its personal property located at the Property,
and Landlord and its mortgagee(s) shall be additional insureds
under said policy. Tenant shall provide to Landlord and its
mortgagee(s), not later than ten (10) days before the
Commencement Date and each subsequent expiration date of each such
policy, a copy or other evidence acceptable to Landlord in its
reasonable discretion, of each such policy and the renewal or
replacement thereof.
All policies of insurance
shall carry a waiver of subrogation clause in favor of Landlord,
and Tenant hereby releases Landlord and covenants that Landlord
shall not be liable to Tenant, Tenant’s insurance carrier or
carriers, or anyone claiming under or through Tenant, for any
liability for loss or damage whatsoever occasioned to property
owned by Tenant or others which is caused by or might be incident
to or may be the result of fire or any other casualty insured under
the above policies, regardless of the cause or origin of such loss
or damage, specifically including the negligence of Landlord, its
agents, employees, invitees or guests, it being the intent of the
parties that as to insured loss, Tenant shall be limited to
recovery from any insurance which it carries or shall have assumed
the risk of such loss.
Tenant shall defend,
indemnify and hold Landlord harmless against any and all claims,
damages and lawsuits and any orders, decrees or judgments which may
be entered therein, brought for damages or alleged damages
resulting from any injury to person or property or from loss of
life sustained in or about the Property, and Tenant agrees to save
Landlord harmless from, and indemnify Landlord against, any and all
injury, loss or damage, of whatever nature, to any person or
property caused by or resulting from any act, omission or
negligence of Tenant or any employee or agent of Tenant.
3
Landlord shall not be liable
to Tenant or to any other person or persons for or on account of
any injury or damage to person or property arising on or occurring
on the Property or resulting from falling ceilings or walls or wall
coverings, gas leakage, electrical malfunction, plumbing
malfunction, dampness, water or rain which may leak from any part
of the Property, from pipes, appliances or plumbing works therein
or from the roof, street or subsurface or from any other place, or
resulting from any other cause whatsoever, or from loss of or
damage to property caused by theft or burglary or any other
cause.
Notwithstanding the
foregoing, to the extent that any mortgage placed on the Property
by Landlord requires insurance coverage exceeding, in policy limits
or scope, the provisions of this Article, Tenant shall provide the
insurance required by such mortgage unless and until such mortgage
shall have been fully paid and satisfied or until the Term shall
have expired or otherwise ended.
ARTICLE
VII.
UTILITIES
Tenant shall be liable for
and agrees to pay before delinquent the charges for all utility
services rendered or furnished to the Property, including heat,
water, natural gas, electricity, sewer, sewage treatment facilities
and the like, which may be levied, imposed or assessed against the
Property during the Term.
ARTICLE
VIII.
SUBLEASING OR
ASSIGNMENT
Tenant may not
suble
|
