Form of Sublease Agreement
EX-10.2 8 ex10-2.htm ORANGE AVENUE LEASE ex10-2.htm
Exhibit 10.2
SUBLEASE AGREEMENT
THIS SUBLEASE AGREEMENT (this "Agreement") is dated to be effective as of the 11th day of APRIL 2008, and is made and entered by and among AMARIS DEVELOPMENT LC the ("Landlord"), SILVER STAR ENDEAVORS, LLC ("Sublandlord") and SILVER STAR CAPITAL HOLDINGS, INC. ("Subtenant").
INTRODUCTORY PROVISIONS
The following form the basis of and are a part of this Agreement:
A. | AMARIS DEVELOPMENT LC as Landlord, and SILVER STAR ENDEAVORS, LLC, as Sublandlord, entered into an Agreement of Lease dated July 1st, 2004, ("Lease"), a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes. |
B. | The Lease covers certain demised premises (the “Premises") comprising approximately 4,500 square feet known as 116 South Orange Avenue, Orlando, Florida 32801. |
C. | Subject to the terms and provisions of this Agreement, Sublandlord desires to sublet to Subtenant, in accordance with the term of this Agreement, approximately 2,000 square feet of the Premises ("Subleased Premises"), the Subleased Premises being more particularly described by drawing on Exhibit "B" attached hereto and made a part hereof for all purposes, and the leasehold interest with respect to the Subleased Premises being hereinafter referred to as the "Subleased Leasehold"; and Sublessee desires to assume all of Sublessor's obligations with respect to the Subleased leasehold for the Sublease Term. The Subleased Leasehold, together with all of Sublessor's interest in and to the Subleased Premises, are collectively referred to herein as the "Subleasehold Estate." |
NOW, THEREFORE, for the mutual covenants contained herein and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Landlord, Sublandlord and Subtenant hereby agree as follows:
AGREEMENTS
I. | Grant and Assumption of Subleasehold Estate. As of and from the commencement of the Sublease Term, Sublandlord hereby sublets to Subtenant, and Subtenant hereby sublets from Sublandlord, the Subleasehold Estate, subject to the terms and provisions contained herein, and Subtenant assumes all of the obligations as tenant under the Lease with respect to the Subleasehold Estate and agrees to perform and comply with the terms and provisions of the Lease as tenant with respect to the Subleasehold Estate to be performed and complied with by the tenant under the Lease, subject to the provisions of this Agreement. |
2. | Rental. The obligations of Subtenant to consideration set forth in section 3 by the tenant to Sublandlord under the Lease attributable to the Subleased Premises (collectively referred to as "Rental") shall run solely to Sublandlord and Subtenant agrees to pay to Sublandlord, in accordance with the payment set below. Subtenant's obligation to pay Rental is an independent obligation and not subject to any offset or defense on account of any act of Landlord or Sublandlord. In the event of a failure by Subtenant to pay the transfer of shares as consideration for the Rental as provided herein in accordance with the terms of this Agreement, Sublandlord, in addition to any rights and remedies which arise at law or in equity, shall be entitled to exercise any and all of the rights and remedies that would be available to Landlord under the Lease in the event of a similar failure by Sublandlord and specified in paragraph 19. |
3. | Rent Schedule. |
Rent:
Year One: Subtenant shall remit to Sublandlord 2,000,000 shares to be paid on or before April 14, 2008 to Sublandlord’s subsidiary company “PROVINCIAL VENTURES LLC” delivered in certificate form. Such shares must be valid certificates of SILVER STAR CAPITAL HOLDINGS, INC. and will be considered fully tendered when Sublandlord receives the 2,000,000 shares from the Subtenant’s transfer agent First American Stock Transfer in Phoenix, Arizona. Sublandlord will register the Initial Statement of Beneficial Ownership of Securities with EDGAR and Subtenant will provide assistance and guidance in doing such. No rent shall be due until one year from the date of receipt of stock certificates. Stock certificates are expected by April 14th. Subtenant may then proceed to build out and obtain its certificate of occupancy as provided in Section 7. The valuation of the one-year lease as consideration is as follows.
Year rent: $48,000.00
Deposit: $10,000.00
Build out not to exceed: $30,000.00
Landlord and Sublandlord acknowledge and agree that upon payment by Subtenant as set forth in the first paragraph, Subtenant will have paid all Rentals due under this Section.
4. | Renewal Options. Subtenant shall have the right to exercise one one-year renewal option at the end of lease term. Said option must be exercised by written notice not less than 120 days prior to the expiration of the then current lease term. Should Subtenant exercise such option, rental rates shall reflect the following: Subtenant shall remit to Sublandlord $4,000.00 to be paid on or before the first day of each month beginning April 14,2009. The Sublandlord agrees that the foregoing renewal option is independent of Sublandlord’s obligations to Landlord and specifically granting this renewal option to Subtenant if the following conditions are met: |
SILVER STAR CAPITAL HOLDINGS, INC. is:
| a) | A registered corporation and actively trading with volume |
| b) | Subtenant is a fully reporting corporation to the SEC and is current in its reports |
| c) | All above consideration has been met and no terms of this lease have been defaulted |
| d) | The primary operations of the leasehold premises are for SSTA operations |
5. | Use of Premises. Subtenant may use the Premises for the following purposes: the operations of SSTA as a publicly traded company, and the predominate activities needed to execute SSTA business. By execution of this document by Sublandlord and Subtenant, they hereby amend and control the original provision stated in paragraph 6 of the Exhibit A. This amendment hereby narrows the permitted use. |
6. | Sublease Term. The term of this Agreement shall be the period commencing on April 14th, 2008 and ending on April 13th, 2009 (the "Sublease Term"). The actual lease commencement date shall occur on the first day after receipt of stock certificates to Sublandlord’s subsidiary company “PROVINCIAL VENTURES LLC” in certificate form. Lease is considered fully executed and paid when valid stock certificates are delivered to Sublandlord and the shares are registered on Edgar. The certificate of occupancy and the initial lease term shall end exactly 12 months after the lease commencement date. It is understood that while Sublandlord is building out the space the lease will still run concurrently for Sublandlord will be allowing Subtenant use of its adjacent leasehold. This shall continue for an estimated three months and is not limited to longer, if needed. |
7. | Operating Expenses. Subtenant shall be responsible for all utility expenses including any deposits owed to the respective utility companies for the Subleased Premises. Sublandlord represents that the Subleased Premises are separately metered for all utilities. Subtenant shall also be responsible for all other expenses related to the operation of the business, including but not limited to janitorial, cleaning and trash removal, excluding maintenance of alley and entrance |
8. | Terms of Lease Binding on Sublease. Except as specifically set forth in this Agreement to the contrary, the rights and obligations of Sublandlord and Subtenant under this Agreement shall be determined by the rights and obligations of the Landlord and Tenant under the Lease, the terms of which Lease are hereby incorporated herein by reference as if set forth herein in their entirety; and for purposes of incorporating such terms into this Agreement, the terms "Landlord” or “Lessor" shall mean and refer to Sublandlord, the terms "Tenant” or “Lessee" shall mean and refer to Subtenant, the term “Demised Premises” shall mean and refer to the Subleased Premises and the term “Lease Agreement” shall mean and refer to this Agreement. In the event of any conflict between the Lease and this Agreement, the provisions of this Agreement will prevail. |
9. | Indemnity. |
| A. | Subtenant agrees to hold Sublandlord and Landlord harmless and to indemnify Sublandlord and Landlord from and against all liability, loss, cost, expense or damage (including reasonable attorneys’ fees and court costs) which Sublandlord and Landlord incur with respect to the Subleased Premises arising from or in connection with (i) Subtenant’s occupancy of the Subleased Premises; (ii) the negligence or misconduct of Subtenant or any Person acting at the instance of Subtenant; or (iii) any breach or default in the performance of any obligation to be performed by Subtenant under the terms of this Agreement. |
| B. | Sublandlord agrees to hold Subtenant harmless and to indemnify Subtenant from and against all liability, loss, cost, expense or damage (including reasonable attorneys’ fees and court costs) which Subtenant incurs with respect to the Demised Premises arising from or in connection with (i) Subtenant’s occupancy of the Demised Premises; (ii) the negligence or misconduct of Sublandlord or Landlord or any person acting at the instance of Sublandlord or Landlord; or (iii) any breach or default in the performance of any obligation to be performed by Sublandlord or Landlord under the terms of this Agreement or the Lease. |
10. | Permitted Exceptions. This sublease, assignment and conveyance is made subject to any and all matters whether of record or not, which affect or relate to the Sublease Estate and any and all facts or circumstances which a detailed and thorough inspection of the Subleased Premises and the Building would reveal. |
11. | Acceptance of Subleased Premises. By acceptance of this Agreement, Subtenant acknowledges that Sublandlord has not made and does not hereby make any express or implied representations or warranties whatsoever with respect to the conditions thereof, including without limitation any representation or warranty regarding merchantability or fitness for any purpose, and Sublessee accepts the Subleased Premises and Subleasehold Estate “AS IS." Notwithstanding the foregoing, Sublandlord represents and warrants that the air conditioning unit, electrical outlets and wiring are in good operating condition and repair. In addition, the Subtenant has the right to have the Subleased Premises inspected following execution of this Agreement. |
12. | Security Deposit. Subtenant as part of consideration with the stock transfer with Sublandlord has valid consideration as set forth in section 3 as security for the performance of all of Subtenant's obligations under this Agreement. Upon expiration of the Sublease Term and upon satisfaction of all obligations under this Agreement by Subtenant, the deposit is retained by Sublandlord as it will have completed performance of its obligation for a full years rent for the shares transferred in consideration of one years rent and such deposit is deemed as compensatory for such. |
13. | Subtenant Improvements. |
| A. | Subtenant shall be responsible for and bear all expenses for performing all interior alterations to the Subleased Premises in excess of $30,000.00. When said amount has been exceeded, Sublandlord has met its obligation pursuant to this lease and may at its discretion wait on additional funds without violating any terms of this agreement. Furthermore, after 6 m months if the build out is not complete due to lack of funding beyond the documented $30,000.00 spent by Sublandlord for the build out, the Sublandlord has the right to give a 30-day notice to Subtenant to leave Sublandlord’s adjacent leasehold. This lease is in no way a sublease to the adjacent leasehold. |
| B. | Any and all alterations, additions and fixtures, other than trade fixtures and equipment, which as a matter of law have become a part of the realty and which in any manner are attached to the floors, walls or ceilings shall, upon the expiration or termination of this Agreement become the property of Sublandlord without any payment by Landlord therefor, provided that Sublandlord may at its option require Subtenant to remove from the Premises at Subtenant's expense all or any portion hereto specified at the expiration of this Agreement. |
14. | Right to Assign or Sublet. Subtenant's interest in the Subleasehold Estate is not assignable in whole or in part without the prior written permission of Landlord and Sublandlord. Subtenant may not sublet the Demised Premises for any reason without approval of the Landlord and Sublandlord. Landlord and Sublandlord’s written permission and approval are required. |
15. | Repairs and Maintenance of Subleased Premises. Sublandlord shall be responsible for the repair and maintenance of the roof and general structure of the Subleasehold Estate unless Subtenant makes alterations to the roof, at which time Subtenant will become responsible for the repair and maintenance of the roof. Subtenant shall be responsible for the maintenance and repair of the remainder of the Subleased Premises including, but not limited to: electrical, plumbing, air conditioning equipment, fixtures, interior wall and wall coverings, flooring, fire extinguishing and warning systems, alarm system, plate glass and other systems. Subtenant shall obtain an annual maintenance agreement for the heating and air conditioning units and provide a copy to the Sublandlord. |
16. | Review of Lease. Subtenant represents that it has read, is familiar with and approves all of the provisions of the Lease. |
17. | Notices. For the purpose of this Agreement, all notices required to be given in writing shall be deemed delivered to Subtenant if directed through the United States Mail, registered or certified mail, return receipt requested, at the address specified herein below or at the address of the Subleased Premises or hand delivered to the Subleased Premises. Said correspondence shall be addressed to Sublandlord and Landlord at the address stipulated below: |
LANDLORD: AMARIS DEVELOPMENT LC
c/o Jerrod Thompson, Partner
110 S. Orange Ave
Orlando, FL 32801
SUBLANDLORD: SILVER STAR ENDEAVORS LLC
c/o Jeffrey Gitto, Partner
5508 Miami Ave
Tampa, FL 33604
SUBTENANT: SILVER STAR CAPITAL HOLDINGS, INC.,
c/o Jack Owens
2731 Silver Star Road
Orlando, Florida 32808
18. | Entire Agreement. This Agreement, together with the Lease, constitutes the sole agreement of the parties with respect to the Subleased Premises and supersedes any prior understandings or written or oral agreements between the parties respecting thereto. |
19. | Event of Default: Remedies. If Subtenant shall be in default with respect to its obligations to Sublandlord under this Agreement, Sublandlord shall have the right to pursue all of its legal rights and remedies against Subtenant and subject to eviction pursuant to Fla. Stat. 83.20. Payment per Section 3 is a condition precedent necessary for completion of this lease agreement. If Subtenant fails to transfer the shares as per Section 3, within 14 days of execution of this lease agreement, the lease will be considered in default and invalid and no notice of eviction will be necessary. Subtenant will be liable for all cash monies paid to that point and subject to venue in Orange County, Florida. If the company files bankruptcy or uses the premises in a manner not set forth, the lease will be considered in default and Subtenant will be subject to immediate eviction. |
20. | Parties Bound. All of the covenants, terms and conditions set forth herein shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. |
21. | Counterparts. The parties, which counterparts together when executed by all of the parties shall for all purposes be deemed an original, but all of which together shall constitute one and the same instrument, may execute this Agreement concurrently in one or more counterparts. |
22. | Governing Law. The parties hereby agree that this Agreement shall be construed, enforced and governed by the laws of the State of Florida with venue in Orange County, Florida. In the event of a dispute between any of the parties to this Agreement, the prevailing party shall be entitled to recover its reasonable attorney fees and court costs, both at a trial court level and the appellate court level. |
23. | Insurance. Subtenant shall maintain any and all insurance policies in the type and amount required by Sublandlord, accordingly, Subtenant will obtain general liability insurance of not less than $1,000,000.00 and shall name both Landlord and Sublandlord as additional insureds. The Certificate of Insurance shall name both Landlord and Sublandlord as additional insured and a copy of said Policy/Certificate of Insurance shall be delivered on or before 30 days following Subtenant obtaining a certificate of occupancy for the Subleased Premises. |
24. | Environmental Matters. Subtenant shall indemnify and hold Sublandlord harmless for the following matters arising during the term of this Agreement to the extent that such matters relate to the Subleased Premises and to the activities of Subtenant on the Subleased Premises during the term of this Agreement: any and all claims, liabilities, losses, dam ages or costs including, without limitation, reasonable attorneys’, environmental consultant’s, engineer’s or expert’s fees incurred by Sublandlord in connection with the violation of any environmental law by Subtenant affecting the Subleased Premises, any generation, processing, handling transportation, storage, treatment or disposal of solid waste or hazardous waste by Subtenant relating to the Subleased Premises; and any releases (as defined under the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended) by Subtenant with respect to its operations on the Subleased Premises. These provisions supersede any other provisions of this Agreement or the Lease that relate to compliance with environmental laws or Subtenant’s liability therefor. |
25. | Signage. Sublandlord and the City of Orlando Historic District Department must both approve any signage for which Subtenant wishes to use. |
26. | Drafting. The parties agree that each reviewed the complete document prior to executing the same, and neither party is presumed to have any advantage in drafting or choice of language for this document. |
IN WITNESS WHEREOF, Landlord, Sublessor and Subtenant have executed this Agreement on the date or dates set forth below, however this Agreement shall be effective for all purposes as of the date first above written.
Witness: | LANDLORD: | |||||
AMARIS DEVELOPMENT LC | ||||||
Printed Name: | ||||||
By: | /s/ Jerrod Thompson | |||||
Jerrod Thompson | ||||||
Title: | Partner | |||||
Date: | April 14, 2008 | |||||
Witness: | SUBLANDLORD: | |||||
SILVER STAR ENDEAVORS LLC | ||||||
Printed Name: | ||||||
By: | /s/ Jeffrey Gitto | |||||
Jeffrey Gitto | ||||||
Title: | Partner | |||||
Date: | April 14, 2008 | |||||
Witness: | SUBTENANT: | |||||
SILVER STAR CAPITAL HOLDINGS, INC. | ||||||
Printed Name: | ||||||
By: | /s/ Cliffe Bodden | |||||
Cliffe Bodden | ||||||
Title: | President | |||||
Date: | April 14, 2008 |