Sample Business Contracts

California-Corona-27 Railroad Street Sublease - Hansen Beverage Co. and US Continental Packaging Inc.

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  • Commercial Lease. Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
  • Commercial Sublease. When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
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  • Triple Net Lease. Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
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    This Sublease, dated April 25, 1997, is made between Hansen Beverage
    Company ("Sublessor") and U.S. Continental Packaging, Inc. ("Sublessee").

    Sublessor is the lessee under a written lease dated April 25, 1997, wherein
    27 Railroad Partnership LP, a California Limited Partnership leased to
    Sublessor the real property measuring approximately 66,700 square feet in
    aggregate and situated at 2378 Railroad Street, Corona, California 91720,
    as indicated on Exhibit A (the "Master Premises"). Said lease is herein
    referred to as the "Master Lease" and is attached hereto as Exhibit B.

    Sublessor hereby sublets to the Sublessee on the terms and conditions set
    forth in this Sublease, a portion of the Master Premises measuring
    approximately 10,000 square feet and being the area identified in red on
    Exhibit A hereto (the "Premises"). It is recorded that the Master Premises
    is the Facility contemplated in clause 3(a) of the Packaging Agreement
    between the Sublessor and Sublessee dated April 14, 1997 (the "Packaging
4.  TERM

    The Term of this Sublease shall commence on the commencement date of the
    Master Lease and continue for a period of twenty-four (24) months
    thereafter (the "Term") unless sooner terminated in accordance with the
    provisions of this Sublease. Possession of the Premises ("Possession")
    shall be delivered to the Sublessee on the commencement of the Term. If,
    for any reason, Sublessor does not deliver Possession to Sublessee on the
    commencement of the Term, Sublessor shall not be subject to any liability
    for such failure or delay.
    Notwithstanding anything to the contrary contained or implied in this
    sublease and, in particular, clause 4, the Sublessor shall have the right
    at any time to terminate this Sublease on sixty (60) days written notice to
    the Sublessee and which notice may be given by the Sublessor at any time,
    in the event that the Premises are required for the Sublessor's products.
5.  RENT

    5.1 MINIMUM RENT. Sublessee shall pay to Sublessor as Minimum Rent, without
    deduction, setoff, notice, or demand, at the Premises or at such other
    place as Sublessor shall designate from time to time by notice to
    Sublessee, a sum calculated by dividing the area of the Premises occupied
    by the Sublessee by the total area of the Master Premises and by
    multiplying the result by the monthly Rent for the Master Premises. The
    monthly rent for the Master Premises shall


    include all additional costs and charges for which the Sublessor is liable
    in terms of the Master Lease and which constitute additional rent and which
    shall be taken into account for the purposes of determining the Minimum
    Rent payable by the Sublessee to the Sublessor in terms hereof. In
    determining the monthly rent for the Master Premises the rent waiver
    contemplated in Clause 42 of the Master Lease shall not constitute a
    reduction in the rent payable for the months in which it is deducted or
    waived but shall be amortized over the entire term of the Master Lease
    namely, eighty-nine (89) months. Consequently, in calculating the monthly
    rent for the Master Premises for the purposes of this clause, such rental
    shall be deemed to be reduced by $674 per month in consequence of the rent
    waiver contemplated in Clause 42 of the Master Lease. Sublessee's
    entitlement to a reduction in the Minimum Rent through its proportionate
    share of the rent waiver calculated in accordance with the foregoing shall
    be subject to Sublessee not defaulting in any of its obligations in terms
    of this Sublease. For the first six (6) months of this sublease the Minimum
    Rent calculated in terms of the above shall be increased by $700 per month.
    The Minimum Rent shall be paid in advance on the first day of each month of
    the Term. If the Term begins or ends on a day other than the first or last
    day of a month, the rent for the partial month shall be prorated on a per
    day basis.
    5.2 OPERATING COSTS. As the Master Lease requires the Sublessor to pay to
    Lessor certain expenses of operating the building and/or the project of
    which the Premises are a part ("Operating Costs"), including but not
    limited to taxes, utilities, and insurance, the Sublessee hereby agrees to
    and shall pay to the Sublessor as additional rent its proportionate share
    of all amounts payable by Sublessor for Operating Costs during the Term.
    Such additional rent shall be payable as and when the Operating Costs are
    payable by Sublessor to Lessor. As the Master Lease provides for payment by
    Sublessor to Lessor of Operating Costs from month to month on the basis of
    estimates thereof, as and when adjustments are made between estimated and
    actual Operating Costs under the Master Lease, the obligations of Sublessee
    hereunder shall be adjusted appropriately and if any such adjustment shall
    occur after the expiration or earlier termination of the Term, then the
    obligations of Sublessee under this Subsection 5.2 shall survive such
    expiration or termination. Sublessor shall, upon request by Sublessee,
    furnish Sublessee with copies of all statements submitted by Lessor of
    actual or estimated Operating Costs during the Term.

    The Premises shall be used and occupied only for warehousing, packaging 
    and distribution of consumer products and corporate offices, and for no 
    other use or purpose.

    Sublessee shall not assign the Sublease or further sublet all or any part 
    of the Premises without the prior written consent of Sublessor (and the 
    consent of Lessor, if such is required under the terms of the Master 




    All applicable terms and conditions of the Master Lease and any subsequent
    amendment or change in the provisions thereof, are incorporated into and
    made a part of this Sublease as if Sublessor were the lessor thereunder and
    Sublessee the lessee thereunder, and the Premises the Master Premises.
    Sublessee assumes and agrees to perform the lessee's obligations under the
    Master Lease during the Term to the extent that such obligations are
    applicable to the Premises, except that the obligation to pay rent to the
    Lessor under the Master Lease shall be considered performed by Sublessee
    for purposes of this Sublease to the extent and in the amount rent is paid
    to Sublessor in accordance with Section 5 of this Sublease. Neither
    Sublessor nor Sublessee shall commit or suffer any act or omission that
    will violate any of the provisions of the Master Lease. Sublessor shall
    exercise due diligence in attempting to cause Lessor to perform its
    obligations under the Master Lease for the benefit of Sublessee. If the
    Master Lease terminates, this Sublease shall terminate and the Sublessee
    shall have no further occupancy or other rights to the Premises and shall
    immediately vacate the Premises. Upon such vacation of the Premises, the
    parties shall be relieved of any further liability or obligation under this
    Sublease, provided however, that if the Master Lease terminates as a result
    of a default or breach by Sublessor or Sublessee under this Sublease and/or
    the Master Lease, then the defaulting party shall be liable to the
    nondefaulting party for the damage suffered as a result of such
    termination. Notwithstanding the foregoing, if the Master Lease gives
    Sublessor any right to terminate the Master Lease in the event of the
    partial or total damage, destruction, or condemnation of the Master
    Premises or the building or project of which the Master Premises are a
    part, the exercise of such right by Sublessor shall not constitute a
    default or breach hereunder. This Sublease shall at all times be subject
    and subordinate to the Master Lease and any other instruments which the
    Master Lease is or may become subordinate to.
9.  It is expressly recorded that all electrical and other costs of operating 
    all and any equipment for the activities of the Sublessee in the 
    Premises, including activities performed by it for and on behalf of or 
    for the benefit of the Sublessor, shall be borne and paid for in full by 
    the Sublessee. The Sublessee shall procure that such electrical costs are 
    separately metered. It is further expressly recorded that all the terms 
    of the Packaging Agreement between the Sublessor and the Sublessee, 
    excluding the provisions of paragraph 3 thereof which are dealt with in 
    this Sublease and shall be governed hereby, shall continue to apply as 
    between the parties and be of full force and effect. In the event of the 
    termination of the Packaging Agreement at any time, the Sublessor or 
    Sublessee shall have the right to summarily terminate this Sublease 
    irrespective of whether or not there shall have been any breach by the 
    Sublessor or Sublessee under this Sublease, the intention of the parties 
    being that if the Packaging Agreement between the parties is no longer 
    operative or of force and effect, then this Sublease shall simultaneously 
    no longer be operative or of force or effect.



    If Sublessor or Sublessee shall commence an action against the other 
    arising out of or in connection with this Sublease, the prevailing party 
    shall be entitled to recover its costs of suit and reasonable attorney's 


    All notices and demands which may or are to be required or permitted to be
    given by either party on the other hereunder shall be in writing. All
    notices and demands by the Sublessor to the Sublessee shall be sent by
    United States Mail, postage prepaid, addressed to the Sublessee at the
    Premises or delivered by hand. All notices by the Sublessee to the
    Sublessor shall be sent by United States Mail, postage prepaid, addressed
    to the Sublessor at the Master Premises or delivered by hand or to such
    other address as the Sublessor may from time to time advise the Sublessor
    by written notice.


    The parties hereto agree to comply with all applicable federal, state and
    local laws, regulations, codes ordinances and administrative orders having
    jurisdiction over the parties, property or the subject matter of this
    Agreement, including, but not limited to, the 1965 Civil Rights Act and all
    amendments thereto, the Foreign Investment In Real Property Tax Act, the
    Comprehensive Environmental Response Compensation and Liability Act, and
    The Americans With Disabilities Act.
Sublessor:                              Sublessee: 
          ---------------------------             --------------------------
By: /s/ Rodney Sacks                    By: /s/ David Williams
   ----------------------------------      ---------------------------------

Title: Chairman                         Title: President
      -------------------------------         ------------------------------

By:                                     By:
   ----------------------------------      ---------------------------------

Title:                                  Title:
      -------------------------------         ------------------------------

Date:  4/25/97                          Date:  4/25/97
     --------------------------------        -------------------------------


                          LESSOR'S CONSENT TO SUBLEASE

The undersigned ("Lessor"), landlord under the Master Lease, hereby consents to
the foregoing Sublease without waiver of any restriction in the Master Lease
concerning further assignment or subletting. Lessor certifies that, as of the
date of Lessor's execution hereof, Sublessor is not in default or breach of any
of the provisions of the Master Lease, and that the Master Lease has not been
amended or modified except as expressly set forth in the foregoing Sublease. 

          27 Railroad Partnership L.P., 
          a California partnership
          By: Investment Building Group, 
              a California corporation, 
              General Partner
          By: /s/ Jack M. Langson
             Jack M. Langson, President
CONSULT YOUR ADVISORS - This document has been prepared for approval by your
attorney. No representation or recommendation is made by Broker or any party as
to the legal sufficiency or tax consequences of this document or the transaction
to which it relates. These are questions for your attorney.

In any real estate transaction, it is recommended that you consult with a
professional, such as a civil engineer, industrial hygienist or other person,
with experience in evaluating the condition of the property, including the
possible presence of asbestos, hazardous materials and underground storage


                            EXHIBIT "A" - PREMISES


* Exact separation wall                  OWNER/DEVELOPER
  location subject to minor              Investment Building Group 
  adjustment.                            500 N. State College Boulevard
                                         Suite 525
                                         Orange, California  92668
                                         (714) 634-1111