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HomeMy WebLinkAboutVerve Kombucha - Lease Termination Agmnt - 11.6.2023LEASE TERMINATION AGREEMENT This Agreement is entered into on ! V by � , 2023 by and between City of Waterloo, Iowa ("Lessor") and Verve Kombucha, LLC ("Lessee"). WHEREAS, Lessor and Lessee are parties to a certain Lease Agreement dated May 29, 2018 (the "Lease"), for premises at 327 W. 3`d Street, Waterloo, Iowa (the "Premises"), and WHEREAS, the parties desire to terminate the Lease before the scheduled expiration date, and Lessor is willing to allow such termination on the terms set forth herein. NOW, THEREFORE, in consideration of the mutual promises exchanged herein and for other consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Termination. The Lease will end on November 7, 2023, and except as set forth in Section 2 Lessee shall surrender possession of the Premises to Lessor on such date, shall cease all activities on the Premises, and thereafter shall enter the Premises only for purposes of inspecting and removing its equipment. Lessee shall deliver to Lessor all keys and key copies possessed by Lessee, its owners, managers, and employees, but until removal of its equipment as provided in Section 2 may keep one (1) key to facilitate such removal. Upon and after Lease termination, after any entry by Lessee or its agents, Lessee shall lock the Premises and keep the Premises secure against unauthorized entry. After its equipment is removed, Lessee shall promptly deliver to Lessor any remaining keys in Lessee's possession. 2. Removal of Equipment. All furniture, fixtures and equipment shall remain upon the Premises, and Lessee hereby surrenders any claim to ownership or possession of same and waives any claim for compensation. Lessee shall remove its brewing equipment from the Premises as soon as it is able to do so, but in any event within thirty (30) days of written notice from Lessor. 3. Financial Responsibilities. (a) Lessee will terminate its utilities account as of the last day of the Lease term, but will pay before delinquency all bills for utilities provided to the Premises through the Lease termination date. (b) The parties acknowledge that Lessee owes to Lessor current and past -due rent in the total amount of no less than $77,163.00, excluding interest or fees, and Lessor hereby forgives such amount and waives any claim for payment or recovery of same. (c) No later than December 31, 2023, Lessee shall pay to Lessor the sum of $17,034.00 in guaranteed funds, which is reimbursement to Lessor for real estate taxes that were Lessee's duty to pay under the Lease for tax installments due through September 30, 2022, plus accrued interest. The parties acknowledge that Lessee is also responsible under the Lease to pay tax installments due March 31, 2023, plus interest accrued on delinquent payments, all of which payments and interest Lessor hereby forgives and further waives any claim for payment or recovery of same. 4. Waiver and Release by Lessee. As of the termination date, Lessee waives, releases and forever discharges any and all claim, right, title or interest in or to the Premises, and agrees to indemnify and hold harmless the Lessor, its officials, employees and agents, from and against any and all claims, demands, causes of action, costs, expenses, fines, fees, penalties, or liabilities of any type or nature whatsoever, including but not limited to reasonable attorneys' fees and expenses, arising from or in connection with the Lease or the Premises. 5. Waiver by Lessor. Subject to the foregoing covenants, promises, representations, and waivers of Lessee, Lessor agrees to terminate and cancel the Lease with respect to each and every duty of performance that is past due, presently due, or to come due in the future. 6. General Terms. This Agreement represents the entire agreement of the parties with respect to the subject matter hereof. It may not be amended or altered except by a written instrument signed by the parties. This Agreement is binding on the parties and the respective successors and assigns of each. IN WITNESS WHEREOF, the parties have executed this Lease Termination Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA VERVE By: By: Quentin Hart, Mayoruchtman, an `'' Attest: Xef(ey <FeCcFiCe DIGITAEY Kelley Felchle, City Clerk 2