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LEASE AGREEMENT

Lease Agreement

LEASE
AGREEMENT | Document Parties: MONRO MUFFLER BRAKE INC You are currently viewing:
This Lease Agreement involves

MONRO MUFFLER BRAKE INC

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Title: LEASE AGREEMENT
Governing Law: Maryland     Date: 6/10/2004
Industry: Business Services     Sector: Services

LEASE
AGREEMENT, Parties: monro muffler brake inc
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Exhibit 10.84

LEASE AGREEMENT

     THIS LEASE AGREEMENT is made this 2 nd day of September, 1999, by and between LPR ASSOCIATES, a Maryland Partnership, having an office at 1312 South Main Street, Suite 2, Mt. Airy, Maryland 21771 (hereinafter called “Landlord”) and MR. TIRE, INC., a Maryland corporation with office at 23 Walker Avenue, Baltimore, Maryland 21208 (hereinafter called “Tenant”).

     WITNESSETH: That in consideration of the rents, covenant and agreements herein contained, Landlord leases to Tenant, and Tenant rents from Landlord, the hereinafter described store premises (hereinafter called the “premises”).

 

 

 

Premises:

 

6,156 square feet of floor space as shown on the plan attached hereto as Exhibit “A” together with the right to use, in common with Landlord, other tenants of the Center and their patrons, the common areas of the Center.

 

 

 

Center:

 

The Food Lion Shopping Center on South Main Street in the Town of Mt. Airy, Frederick County, Maryland.

 

 

 

Minimum Annual Rent:

 

 

 

 

 

Initial Term:

 

Years 1-5 - $101,568.00; $8,464.00 per month

 

 

Years 6-10 - $116,840.88; $9,736.74 per month

 

 

 

Renewal Terms:

 

Years 11-15 - $134,323.92; $11,193.66 per month

 

 

Years 16-20 - $154,454.04; $12,871.17 per month

 

 

Years 21-25 - $177,662.16; $14,805.18 per month

 

 

Years 26-30 - $204,317.64; $17,026.47 per month

 

 

Years 31-35 - $234,974.52; $19,581.21 per month

 

 

Years 36-40 - $270,186.84; $22,515.57 per month

 

 

 

Taxes, Maintenance

 

 

Expenses and

 

 

Insurance:

 

Tenant shall reimburse Landlord for its share 7% of the annual real property taxes, common area expenses and insurance premiums for the Center.

 

 

 

 

 

 

 

 

 

Security Deposit:

 

$8,464.00

 

 

ARTICLE I

THE PREMISES

Section 1.1. Landlord shall perform all of the work set forth in Exhibit “B”; provided, however, if the cost thereof exceeds One Hundred Eighty-Eight Thousand Dollars ($188,000.00), Tenant shall, promptly, upon demand, pay the excess to Landlord. Tenant shall perform any other work necessary for it to conduct the business allowed by this Lease; provided, however, Tenant shall submit to Landlord, for its prior approval, plans for its work.

ARTICLE II

TERM

Section 2.1. Commencement Date and Length of Initial Term. The initial term of this Lease shall begin on the earlier to occur of (i) thirty (30) days from the date Landlord’s architect notifies Tenant that it has

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completed its work in the premises as set forth in Exhibit B in a manner sufficient to allow Tenant to obtain a certificate of use and occupancy after Tenant completes its work in the Premises or (ii) the day on which Tenant opens for business in the premises; and end ten (10) years after the first day of the first full calendar month of the term.

Section 2.2. Renewal Term. Tenant shall have the option to renew the term of this Lease for six (6) additional, successive terms of five (5) years each, provided that this Lease is in full force and effect and free of defaults by Tenant on the day a renewal option is exercised and on the day a renewal term begins. The renewal terms shall be on the same terms, covenants and conditions as the initial term, except that the rent shall be as hereinabove set forth, and there shall be no further right of renewal after the last renewal term provided for herein. Each right of renewal must be exercised by delivery to Landlord of an unequivocal written notice of election to renew at least twelve (12) months prior to the end of the initial term, or the then renewal term, as the case may be and upon the giving of notice and without any further instrument, this Lease shall be renewed.

ARTICLE III

QUIET ENJOYMENT, SUBORDINATION,
COMMENCEMENT AND ESTOPPEL CERTIFICATES

Section 3.1. Quiet Enjoyment. So long as Tenant complies with the terms, covenants and conditions of this Lease on Tenant’s part, Tenant shall have the peaceful and quiet use of the premises, subject to the terms, covenants and conditions of this Lease, without interference by Landlord or anyone claiming by, through or under Landlord.

Section 3.2. Mortgage Subordination and Seniority. The holder of any mortgage or deed of trust hereafter placed upon the Center shall have the right to elect, at any time, whether this Lease shall be subordinate to the operation and effect of the mortgage or deed of trust. Tenant shall, upon request, execute a subordination agreement in form satisfactory to the holder; provided that the Agreement stipulates that Tenant’s possession shall not be disturbed so long as it is not in default of its obligations hereunder.

Section 3.3. Commencement and Estoppel Certificates. When the term begins, Tenant shall promptly enter into a written agreement with Landlord stipulating the beginning and ending dates of the initial term. Within three (3) days after a written request from time to time made by Landlord, Tenant shall deliver to Landlord a signed and acknowledged statement setting forth: (i) that this Lease is unmodified, in full force and effect, free of existing defaults of landlord and free of defenses against enforceability (or if there have been modifications or defaults, or if Tenant claims defenses against the enforceability hereof, then stating the modifications, defaults and/or defenses), (ii) the dates to which rent and additional rent have been paid, and the amount of any advance rentals paid, (iii) the beginning and ending dates of the initial term, (iv) whether Tenant has given notice exercising the right to renew this Lease, and if so, the renewal terms so opted, (v) that Tenant has no outstanding claims against Landlord (or if there are any claims, then stating the nature and amount of such claims) and (vi) the status of any other obligation of either party under or with respect to this Lease; it being intended that any such statement may be relied upon by any purchaser or mortgagee of Landlord’s interest in the premises, or any prospective purchaser or mortgagee.

ARTICLE IV

RENT

Section 4.1. Minimum Rent. The minimum rent shall be paid in advance, on the first day of each calendar month.

Section 4.2. Additional Rent. Whenever under the terms of this Lease any sum is required to be paid by Tenant in addition to minimum rent, whether or not such sum is herein designated as “additional rent” or provision is made for collection additional rent, it shall, nevertheless, be deemed to be additional rent, and shall be collectible as rent. All minimum rent and additional rent shall be paid without set off, abatement, deduction or recoupment, except as expressly set forth in this Lease. Any payment by Tenant of a lesser amount

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of minimum or additional rental than is then due shall be applied to such category of arrearage as Landlord may designate irrespective of any contrary designation by Tenant and to the oldest, most recent or other portion of the sum due as Landlord may determine; and Landlord’s acceptance of any partial payment shall not be deemed an accord and satisfaction and shall be without prejudice to Landlord’s right to pursue other remedies.

Section 4.3. Payment. All rent payable and all statements due by Tenant to Landlord shall be paid and mailed to Landlord at P. O. Box 128, Mt. Airy, Maryland 21771 or at such other address as Landlord may designate in writing to Tenant.

Section 4.4. Net Rent. The rent reserved hereunder shall be net, net, net to Landlord and all costs, charges, expense and obligations of every kind relating to the premises and its use and occupancy, which may arise or become due during the term of this Lease, shall be paid by Tenant.

ARTICLE V

SECURITY DEPOSIT

Section 5.1. Landlord hereby acknowledges receipt from Tenant of Eight Thousand Four Hundred Sixty-Four Dollars ($8,464.00) to be held by Landlord as security for the payment of rent and the performance of Tenant’s other obligations under this Lease. This deposit shall be returned to Tenant at the end of the tenancy, so long as all rent and additional rent payable to that date has been received by Landlord and Tenant is not otherwise in default of any of its obligations hereunder. If Tenant defaults in the payment of rent or in the performance or observance of any other obligation its part under this Lease, Landlord may apply the deposit to payment of the rent in default or other money arrearage and/or to the damages and costs incurred by Landlord as a result of any default, and/or to costs incurred by Landlord in rectifying any default, and/or to the prepayment of minimum rent for any subsequent period of the term and/or to any amount to which Landlord may be entitled under this Lease; and Tenant shall promptly thereafter restore the deposit to the original amount. The right of Landlord to apply the security deposit as above specified shall not be construed as a limitation upon Landlord’s right to invoke any other remedy available under this Lease or at law or equity for breach of this Lease, or to collect the full amount of damages owing by Tenant on account of any breach.

ARTICLE VI

PERMITTED USE AND CONTINUED OCCUPANCY

Section 6.1. (a) Permitted Use. The premises shall be used and occupied solely as an auto service center and Allstate Rent-A-Car. The premises may not be used for any other purpose.

     (b) Special Restrictions. Without any intention to diminish the efficacy of Section 6.1(a), but in order to specify particular uses and practices which, if engaged in by Tenant, would be in violation of other leases, or recorded agreements pertaining to the Center, or of exclusive use privileges which Landlord has, will or may desire to grant or which constitute businesses or practices which Landlord may desire to prohibit or control, Tenant shall not, at any time: operate a second hand store, general merchandise or discount department store, “Army Navy” or “surplus” store, nor may the premises be utilized for the sale of health and/or beauty aids, automobiles, trucks, trailers, or other motor vehicles, pornographic materials or merchandise normally used or associated with illegal or unlawful activities, nor may the premises be used as a food supermarket, dairy store, ice cream store, hardware store, convenience store, drug store or pharmacy, or as a pool hall, bowling alley, funeral parlor, movies or live theater or peep show, arcade (for video games, pinball machines, or other amusement devices), massage parlor, cocktail lounge, tavern, bar, flea market, health spa, child center, skating rink, establishment which sells alcoholic beverages for on-premises consumption or other health, recreational or entertainment type activity. No vending machines may be placed anywhere outside of the premises.

Section 6.3. Permitted Name. Tenant shall conduct business on the premises in the name of “MR. TIRE-Allstate Rent-A-Car” and under no other name or trade name unless the use of another name is approved in writing by Landlord.

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Section 6.4. Restrictions on Landlord. So long as Tenant is continuously conducting its automotive service business in the premises, Landlord shall not lease any space in the Center (other than the premises) for the primary purpose of operating an automotive service center. In order to satisfy the requirements hereof, leases of space in the Shopping Center hereafter made may require the lessee thereunder to covenant either that it will not use its premises for the aforesaid prohibited purpose or that such lessee shall use its premises only for some specific purpose or purposes specified in such lease (and not prohibited hereby). Landlord shall not be liable in damages or otherwise if any lessee in the Center violates any such covenant in the lease between Landlord and such lessee; and Tenant shall not be entitled to cancel this Lease by reason of other lessee’s violation of any such covenant. Tenant may, however, at its expense, bring an action at law or in equity in its own name or in Landlord’s name, against any lessee to enforce any such covenant or to enjoin the violation thereof; Tenant shall save Landlord harmless from any liability or expense that Landlord might suffer or incur by reason of the filing of such action by Tenant in Landlord’s name.

     The parties acknowledge that the foregoing restriction has been imposed at the request of Tenant and for the sole benefit of Tenant. Accordingly, Tenant agrees to indemnify and hold Landlord harmless from all damages, costs, and liabilities whatever, including but not limited to Landlord’s attorneys’ fees and any award of damages incurred by Landlord as a result of legal proceedings, either threatened or instituted, as a result of the imposition of the foregoing restrictions.

     The foregoing restriction shall not apply to the premises presently occupied by “Food Lion” and “Southern States”; and shall be subject to right of the hardware store in the Center to sell any or all of items that Tenant may sell from the premises.

ARTICLE VII

COMMON AREAS

Section 7.1. (a) Tenant’s Right to Use Common Areas. Tenant and its customers shall be entitled to the non-exclusive use, free of charge, but in common with others, of (1) the automobile parking areas (herein called “parking areas”) from time to time made available by Landlord in the Center, for parking of vehicle only; (2) the entrances and exits thereto and the driveways thereon, for vehicular and pedestrian ingress and egress only (which parking areas, entrances, exits thereto and the driveways thereon, for vehicular and pedestrian ingress and egress only (which parking areas, entrances, exits and driveways are sometimes herein collectively called “vehicle areas”); and (3) the pedestrian walkways in the Center, for pedestrian ingress and egress only. All of the facilities described in (1), (2) and (3) are herein sometimes collectively called “common areas”. Tenant and its contractors, agents (other than premises employees), licensees, invitees and suppliers may use any of the vehicle areas for ingress and egress and may use the parking areas for parking of noncommercial vehicles and may load and unload commercial vehicles in the parking area at the service door to the premises and shall thereafter promptly remove such vehicles; and may use any delivery driveway designated by Landlord for access to the premises for deliveries, pickups and other services to the premises, but no other driveways. All such uses shall be subject to rules and regulations prescribed from time to time by Landlord; and Landlord shall have exclusive management and control over the common areas. The common areas shall only be used as herein set forth. The storage or placing of tires or any other items or the sale of any item, or the placement of vending machines outside the premises or anywhere in the common areas or in the corridor or loading area is prohibited. Parking in any driveway or other area of the Center not specifically designed for parking is prohibited.

     (b) Employee Parking. Tenant and its employees shall have the right, in common with others, to park vehicles in the areas that Landlord designates as employee parking areas and in no other areas and may use the other vehicle areas for ingress and egress only. Tenant shall promptly furnish to Landlord, on request, license numbers of vehicles used by Tenant and its employees. If for employee of Tenant parks a vehicle in an area other than that designated for parking of employees, Tenant shall pay Landlord Ten Dollars ($10.00) per day or partial day for each vehicle so parked, and Landlord shall have the right to remove such vehicle to the designate employee parking area at Tenant’s expense, if Landlord gives the manager of the premises oral or written notice of such employee’s current or past parking violations at least two (2) days prior to removal. Tenant shall defend, indemnify and save Landlord harmless from any claims for damages which may be made against Landlord by any employee of Tenant on account of or arising out of removal of a vehicle belonging to an employee of Tenant.

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     (c) Control of Parking Areas. In order to preserve the parking areas for the use of patrons of the Center, Landlord may exact parking charges (by meters or otherwise) provided that provision is made for free parking ticket validation for Tenant’s customers, may close temporarily all or any portion of the common areas as may be required for proper maintenance and/or repair or to avoid areas as may be required for proper maintenance and/or repair or to avoid deduction to public use, and take such other action as it deems advisable in its business judgment in order to secure or improve the convenience and use thereof by the tenants of the Center and their customers. Landlord may from time to time change the location, layout and arrangement of the parking areas, driveways and walkways and erect buildings or other temporary or permanent structures or improvements thereon, provided that Landlord maintains sufficient automobile parking facilities for the Center to comply with legal requirements, and does not deprive Tenant of access to the premises.

     (d) No Public Use. Nothing herein contained shall be deemed to be a dedication of the common areas to public use, it being Landlord’s intention that the common areas may be used only by Tenant and the other permitted users mentioned in this Section, and then only for the limited purposes specified as to each user.

Section 7.2. Maintenance of Common Areas. Landlord shall provide illumination of the common areas during such after dark hours as Landlord shall determine, and shall keep the common areas in reasonable repair, substantially clear of ice and snow to allow substantial use thereof for the intended purpose, with reasonable diligence under the circumstances.

Section 7.3. Maintenance Contribution. As a contribution to Landlord’s costs of operating and maintaining the common areas and the facilities thereon, Tenant shall pay Landlord, beginning on the commencement date, 7% of the cost of maintaining and operating the common areas and facilities of the Center. Tenant shall be billed quarterly for its contribution to Common Area Costs. This year, Tenant’s quarterly contribution would be $525.00. Contributions shall be adjusted within thirty (30) days after Landlord determines its actual costs for any fiscal period to reflect Tenant’s actual share of costs, at which time Landlord shall provide Tenant with detailed breakdown of the costs and expenses, and, if requested, copies of bills for items included thereon. Tenant shall pay any balance owing for the period, or shall be refunded any excess, as the case may be, and the monthly payments shall also be adjusted to conform to the cost projection adopted by Landlord.

ARTICLE VIII

ASSIGNMENT AND SUBLETTING

Section 8.1. Restrictions on Assignment. Tenant shall not assign this Lease or sublease any of the premises, without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed. Any assignment by operation of law, attachment or assignment for the benefit of creditors shall constitute a default hereunder.

Section 8.2. No Waiver. If Landlord consents to any assignment or sublease as defined in and prohibited by Section 8.1, any rent in excess of the rent reserved herein shall be paid to Landlord and, in addition to any other consideration that may pass between the parties in connection therewith, Tenant and any assignee or sublessee shall be deemed to have covenanted not to make any further assignment or sublease contrary to the provisions of Section 8.1. and such covenant shall be deemed to have been made as of the date of consent and shall take effect prospectively from the date thereof.

ARTICLE IX

REPAIRS

Section 9.1. Tenant shall make all necessary repairs to the sprinkler system, heating, ventilating and air conditioning systems and all other machinery, equipment, facilities and systems in and servicing the premises and Tenant shall keep the premises, including the store front, windows, doors and signs, in good condition and repair, and shall make all replacements required to maintain said status of repair. Tenant shall maintain a service

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contract for the heating, ventilating and air conditioning systems servicing the premises with companies acceptable to Landlord. At the beginning of the term of copy of the contract shall be given to Landlord and copies of renewals thereof given to Landlord prior to expiration. Tenant shall also keep in good condition and repair the common areas within fifteen feet of the wall of the premises service door, and Tenant shall keep said area clean. Landlord shall maintain and repair the roof, walls and other structural portions, excluding the overhead doors and adjacent areas of the premises. All repairs and replacements shall be equal in quality to original construction.

ARTICLE X

UTILITIES

Section 10.1. Payment for Utilities. Beginning on the date Tenant enters the premises, Tenant shall pay all charges for water and sewer service furnished to the premises based on the usage shown by utility company meters exclusively for the premises. Tenant shall also pay, when due, all consumption charges for all other services furnished to the premises, including, but without limitation, heat, air conditioning, electricity and telephone. Charges billed by utility companies shall be paid by Tenant directly to the companies.

     Landlord shall not be liable to Tenant for damages because of any interruption in utility services, and Tenant shall not be entitled to claim a constructive eviction due to such interruption, but Landlord shall proceed with reasonable diligence to restore such service to the extent that it is within Landlord’s control.

ARTICLE XI

TENANT’S OPERATIONS, ALTERATIONS, MACHINES, SIGNS AND COMPLIANCE

Section 11.1. Rules and Regulations. Tenant shall comply with the rules and regulations set forth on Exhibit “C” attached hereto, and with any additions and modifications adopted from time to time by Landlord, and each rule and regulation shall be deemed a covenant of this Lease to be performed and observed by Tenant.

Section 11.2. Garbage Collection Service. Landlord has provided a dumpster near the rear of the premises in which Tenant shall place all garbage and trash generated on site. Tenant may not, however, place any tires, lubricants or any other hazardous materials therein. Tenant shall provide for removal of such items. Tenant may not, however, place any garbage or trash generated off site and all such refuse may not be brought to the Center. Tenant shall insure that all of its refuse is placed in the dumpster and that the area surrounding the dumpster is clean and neat.

Section 11.3. Alterations. Tenant shall not make any alterations, additions or improvements to the store front of the premises or any alterations, additions or improvements affecting structural or support elements of or in the building of which premises are a part, or affecting any utility system servicing the which the premises or other parts of the Center. Any alterations, additions or improvements by Tenant which are permitted hereunder or hereafter approved by Landlord shall immedia


 
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