COMMERCIAL LEASE AGREEMENT
THIS COMMERCIAL LEASE AGREEMENT ("Lease") is made and entered into as of December 16, 1997, by and between Wendell H. Burns ("Lessor"), and Premier Graphics, Inc., a Tennessee corporation
1. Term and Premises. Subject to the terms and conditions set forth herein, Lessor hereby leases and lets to Lessee, and Lessee leases and accepts from Lessor, for a term of ten (10) years, commencing on December 16, 1997, and expiring on December 5, 2007 (the "Original Term"), that certain real property with a municipal address of 1907 Crutch field Street, Chattanooga, Tennessee and that certain real property with a municipal address of 2205 Dodson Avenue, Chattanooga, Tennessee, both of which are more particularly described in Exhibit A hereto (the "Premises").
2. Basic Rent. Lessee shall pay Lessor, at the address of Lessor indicated herein, the sum of One Hundred Thirty-Three Thousand Two Hundred and No/l00ths Dollars ($133,200.00) per year as rent for the Premises (the "Basic Rent"). The Basic Rent shall be paid to Lessor in monthly installments of Eleven Thousand One Hundred and No/l00ths Dollars per month ($11,100.00), which monthly rental payments shall be paid in advance on the first day of each calendar month during the term of this Lease. If the Original Term does not commence on the first day of a calendar month, Lessee will pay in advance, on the first day of the Original Term, a pro rata part of the regular monthly rent installment, based on the number of days of the Original Term occurring within the calendar month in which the Original Term commences; and the rent installment due on the first day of the last calendar month occurring during the Original Term shall be similarly prorated. All rental payments are to be considered "past due" on the fifteenth (15th) of the month in which they are due, and if said payment has not been received by the Lessor by such date there will be a late charge of five percent (5.0%) of the monthly rental on all such "past due rentals," it being agreed that such is the reasonable additional expense incurred by Lessor in handling such late payments. All rental payments and other payments by Lessee to Lessor shall be mailed or delivered to Lessor at the address of Lessor indicated herein or to such other person or address in such city as Lessor may direct by written notices to Lessee. Lessee hereby waives any and all notices and demands for payment of the monthly rental payments of Basic Rent due under this Lease to Lessor.
3. Additional Rent. In addition to the payment of Basic Rent, Lessee shall pay all of the following costs arising from or related to the Premises, which costs shall be collectively referred to herein as additional rent ("Additional Rent"):
(a) Maintenance of Premises. Lessee shall, at its sole expense, take good care of the Premises and any building now or hereafter erected thereon, both inside and outside, and keep the same and all parts thereof, including, without limitation, the roof and appurtenances thereof, together with any and all alterations, additions, and improvements therein or thereto, in good order and condition, suffering no waste or injury, and shall, at Lessee's sole expense, promptly make all needed repairs and replacements, in and to any building or structure or equipment now or hereafter erected upon the Premises, including vaults, sidewalks, water, sewer and gas connections, pipes and mains, and all other fixtures, machinery and equipment now or hereafter belonging to or connected with the Premises or used in their operation. All such repairs and replacements shall be of first class quality sufficient for the proper maintenance and operation of the Premises. If any item of repair or replacement will cost more than Ten thousand Dollars ($10,000), then Lessee shall first submit plans and specifications therefor to Lessor for Lessor's approval, and Lessor shall not unreasonably withhold such approval. Lessee shall not obstruct or permit the obstruction of the street or sidewalk and shall keep the sidewalk and curb adjoining the Premises clean and free of snow and ice. If Lessee fails to make such repairs, replacements or maintenance promptly, or within fifteen (15) days of occurrence, Lessor may, at its option, make them, and Lessee shall repay the cost thereof to Lessor on demand. Notwithstanding anything to the contrary contained herein, Lessor shall be required to make all structural repairs to the Premises.
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