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TRIPLE-NET LEASE AGREEMENT

Lease Agreement

TRIPLE-NET LEASE AGREEMENT | Document Parties: Eschelon Telecom, Inc | Sunwest Properties II, LLC You are currently viewing:
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Eschelon Telecom, Inc | Sunwest Properties II, LLC

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Title: TRIPLE-NET LEASE AGREEMENT
Governing Law: Oregon    

TRIPLE-NET LEASE AGREEMENT, Parties: eschelon telecom  inc , sunwest properties ii  llc
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EXHIBIT 10.24

 

TRIPLE-NET LEASE AGREEMENT

 

This LEASE AGREEMENT (this “Lease”) is entered into effective the 11 th day of March, 2005, by and among the following parties:

 

LANDLORD:                                        Sunwest Properties II, LLC
3723 Fairview Industrial Drive SE, Suite 270
PO Box 3006
Salem, Oregon 97302-0006
EIN: 93-1272486

 

TENANT:                                               Eschelon Telecom, Inc.
730 2nd Avenue South, Suite 900
Minneapolis, MN 55402
EIN: 41-1843131

 

Landlord leases to Tenant under the terms and conditions listed below:

 

1.             PROPERTY .  Certain portions, aggregating approximately 11,400 square feet of rentable interior space on the first floor and approximately 2,295 square feet rentable interior space on the second floor which will include the “computer room”, together with the non-exclusive right to use the outside deck area on the second level of the building and sufficient spaces (approximately 47) in the parking lot on a first come-first served basis, on the northwest side of the building, of the real property known as 3723 Fairview Industrial Drive SE, Salem, Oregon, more thoroughly described in the attached Exhibit A (the “Premises”), reserving, however, unto Landlord the non-exclusive use of the elevator for ingress and egress serving the remainder of the second floor of the building. Tenant may remove, at its expense and without damage to the Premises, upon expiration of this Lease or the last renewal term, as applicable, the property listed in the attached Exhibit B.

 

2.             TERM .        This Lease shall commence on the 1st day of May, 2005, (the “Commencement Date”), and shall continue through April 30, 2006, (the “Expiration Date”), unless earlier terminated in accordance with the provisions of this Lease.

 

3.             PAYMENT .           Tenant shall pay lease payments in the amount of $17,120.00 per month in advance on the first day of each month during the term of this Lease, beginning with the first such monthly payment on May 1, 2005, and the first and last lease payments shall be prorated if the Commencement Date is on a day other than the first day of the month.

 

4.             TRIPLE-NET LEASE .         This is a true triple-net lease. Tenant shall pay all costs relating to the Premises, including but not limited to real and personal property taxes, utilities, maintenance, repairs, interior and exterior structural repairs, interior and exterior nonstructural repairs, interior and exterior maintenance, insurance and all other expenses relating to the Premises.

 

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5.             SUBORDINATION .            Tenant shall subordinate Tenant’s interest in the Premises to secured financing obtained by Landlord in an amount not to exceed $5,361,600.00. Tenant shall sign all necessary documents reasonably acceptable to Tenant to complete such subordination.

 

6.             OPTION .               If Tenant shall not be in default, Tenant has the option to renew this Lease for two (2) successive one-year terms following expiration of the then current term of this Lease on identical terms, exercisable on ninety (90) days prior written notice from Tenant to Landlord, except the rent provided for in Section 3 hereof shall be increased by four percent (4%) for each renewal over the rent for the immediately preceding term.

 

7.             NOT A PARTNER .             Landlord is not a partner nor a joint venturer with Tenant in connection with the business carried on under this Lease, and shall have no obligations with respect to Tenant’s debts or other liabilities, and no interest in Tenant’s profits.

 

8.             USE OF THE PREMISES .  The Premises shall be used for office purposes and uses incidental thereto and for no other purpose without the consent of Landlord, which consent may be withheld in Landlord’s sole discretion.

 

9.             NO UNLAWFUL USE .        In connection with the use of the Premises, the Tenant shall conform to all applicable laws and ordinances of any public agency affecting the Premises and their use and shall correct, at Tenant’s own expense, any failure of compliance where such failure is by fault of Tenant or by reason of Tenant’s use. Tenant will also refrain from any use which would be reasonably offensive to owners or users of neighboring premises or which would tend to create a nuisance or damage the reputation of the Premises.

 

10.          COMPLIANCE WITH LENDER OBLIGATIONS .       Landlord may obtain a loan to be secured by Landlord’s interest in the Premises. As a condition to the loan, Landlord’s lender may impose certain requirements regarding the possession and use of the Premises, all of which will be consistent with the use of the Premises for Tenant’s offices (the “Lender Requirements”). Tenant agrees that, so long as the Lender Requirements remain in force and do not adversely affect any right, benefit or privilege of Tenant or increase Tenant’s obligations under this Lease in any material respect, including, without limitation, any monetary obligations, Tenant shall possess and use the Premises in full compliance with the Lender Requirements.

 

11.          TENANT RESPONSIBILITY .           The Premises are being leased in an “as is” condition and Landlord shall not be liable for repairs or maintenance of the Premises or other charges. Landlord shall not bear any responsibility for any costs, tax, fee or other expense relating to the Premises since this is a true triple-net lease and all such costs, fees, taxes and expenses shall be paid by Tenant, including but not limited to real and personal property taxes; utility costs; costs of repair and maintenance of the roof and gutters, exterior walls (including painting), bearing walls, structural members, and foundation; repair of sidewalks, driveways, curbs and parking areas; repair and maintenance of water, sewage, gas and electrical services; repair of the heating and air conditioning system, including ordinary maintenance; repair of interior walls, ceilings, doors and windows and related hardware, light fixtures, switches, and wiring and plumbing; any repairs necessitated by the negligence of Tenant, its agents, employees

 

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and invitees; and any repairs or alterations required under Tenant’s obligation to comply with laws and regulations as set forth above, with the right to offset rent hereunder for Landlord’s share of such costs, as reasonably approved by Landlord. To the extent any of Tenant’s obligations pursuant to this paragraph are a part of obligations of the property of which the Premises are a part, Landlord and Tenant shall divide the costs pro-rata on the basis of Tenant’s occupancy as a percentage of the rentable space in the entire building.

 

12.          RIGHT OF INSPECTION . Landlord shall have the right to inspect the Premises at any reasonable time or times upon reasonable notice to determine the necessity of repairs.

 

13.          ALTERATIONS . Tenant shall make no improvements or alterations on the Premises without first obtaining Landlord’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed. All improvements and alterations performed on the Premises by either Landlord or Tenant shall be the property of Landlord when installed unless the applicable Landlord’s consent provides otherwise.

 

14.          TENANT’S INSURANCE . Tenant shall pay Landlord Tenant’s pro-rata share for Landlord to maintain a standard fire and hazard insurance policy covering any improvements to the property of which the Premises are a part, which policy shall consist of property insurance providing a limit equal to the full insurable value naming Landlord and Tenant as insureds. In addition, Tenant shall maintain liability insurance, which policy shall consist of a general liability policy with a limit of no less than $1,000,000 per occurrence, protecting both Landlord and Tenant against any claim, loss or liability arising out of or relating to any activity of Tenant upon the Premises, or any condition of the Premises in the possession or under the control of Tenant, including any such claim, loss or liability which may be caused or contributed to in whole or in part by Landlord’s own negligence or failure to effect any repair or maintenance required by this Lease, and Tenant shall also indemnify and defend Landlord from any such claim. Each shall obtain from its respective insurance carrier waivers of subrogation against the other party, agents, employees and, as to Tenant, invitees. The liability policy shall also contain a provision requiring thirty (30) days’ written notice to Landlord prior to any change or cancellation of such insurance.

 

15.          LIABILITY AND INDEMNITY .










 
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