DORSET REALTY GROUP
CANADA LIMITED
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Xxxxx 000 - 0000 Xxxxxxx Xxxx
Xxxxxxxx, X.X. X0X 319
Telephone (000) 000-0000
Fax (000) 000-0000
EXHIBIT 10.14
[DORSET REALTY GROUP CANADA LIMITED - LETTERHEAD]
December 8, 1998
MDU Communications Ltd.
000-00000 Xxxxxxxxxxx Xxx
Xxxxxxxx XX X0X 0X0
Dear Sirs:
RE: 133-11951 HAMMERSMITH WAY
LEASE PAYMENTS
We are writing as property managers for the Hammersmith Corporate Centre. We
hereby confirm your base rent is $1,000.00 per month effective January 1, 1999.
Your ESTIMATED ADDITIONAL RENT (operating cost), based on an annual basis is as
follows:
Maintenance Fees* $1,088.88
Property Taxes $2,400.00
Management Fee $ 600.00
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Total $4,088.88
The total divided by twelve months equals $340.74. Therefore your monthly rent
is:
January 1, 1999 February 1, 1999 On:
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Base Rent Deposit Base Rent $ 1,000.00
Additional Rent $ 340.74 Additional Rent $ 340.74
GST $ 23.85 GST $ 93.85
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Total $ 364.59 Total $ 1,434.59
Please make cheques payable to "Dorset Realty In Trust". If you have any
questions, please contact the writer. Thank you.
Yours truly,
/s/ Xxxx Xxxxxx
Xxxx Xxxxxx
Property Manager
* Includes building insurance, water/sewer, landscaping, general exterior
repair and maintenance outside electricity, garbage removal.
cc: X. Xxxxxx, Progressive Properties Ltd., Richmond, BC
OFFER TO LEASE
RE/MAX REAL ESTATE SERVICES LTD.
000 - 0000 Xxxxxxx Xxxxx
Xxxxxxx, X.X.
X0X 0X0
Progressive Properties Ltd.
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--------------------------------------------- Telephone:
Facsimile:
(as "Landlord")
MDU Communications Ltd.
000 - 00000 Xxxxxxxxxxx Xxx
Xxxxxxxx, X.X. Telephone:
Facsimile:
(as "Tenant")
1. The Tenant hereby offers to lease from the Landlord certain space (the
"Premises") described as follows:
Address of Premises: 000 - 00000 Xxxxxxxxxxx Xxx, Xxxxxxxx, X.X.
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Further Description (Sketch if necessary): 1538 sq. ft.
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Parking Spaces: 3
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2. The Lease for the Premises will be on the following terms and conditions:
a) Term of Lease: Jan. 1, 1999 to Dec. 31, 2001 Being 3 Years.
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b) Date of Occupancy: Upon Lease Execution for Storage
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c) Rental Rate: $1000 Year 1, $1025 Years 2 and 3 (-) DOLLARS per
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month payable monthly in advance on the First day of each
month and every month during the Term.
d) Rental Deposit: A deposit by way of Certified Cheque or Bank
Draft payable to "RE/MAX REAL ESTATE SERVICES LTD "in trust"
in the sum of $2300 (-) which sum includes applicable G.S.T.
shall be payable within TWENTY-FOUR (24) hours of acceptance
of this Offer and shall be retained and applied as the basic
rent and applicable G.S.T. for the FIRST (1st) month of this
Lease and the balance as a security deposit (not to bear
interest) or shall be returned to the Tenant if the
conditions precedent contained in Clause 3. are not
fulfilled.
e) Taxes and Operating Expenses:
This Offer to Lease shall be completely NET to the Landlord
except for structural repairs and the Tenant hereby agrees to
pay, in addition to the basic monthly rent their proportionate
share namely 100% of all costs, charges, expenses and outlays
of any nature whatsoever arising from or relating to the
Leased Premises, including without limitation, the following
terms (which are more fully detailed in the Lease)
*Real Property Taxes *Building Insurance
Good and Services Taxes *Building Maintenance
Hydro Utilities *Property Management
Water Rates Directory Signs
* Budgeted at 305 + G.S.T./mo. For 1998
f) Lease Form:
Upon acceptance of this Offer, a Formal Lease shall be
executed by the Landlord and Tenant by ________________ such
lease shall include all the terms and conditions outlined in
this Offer. The cost of preparing such Lease shall be for the
Landlord's account. If the Tenant wishes to register the Lease
the expense for survey and registration are to be for the
Tenant's account.
g) Renewal Option:
Tenant will have an option to renew this Lease for an
additional term of THREE (3) years under the same terms and
conditions except as rent and this option to renew. The rent
for the option period is to be the then prevailing fair market
rent for similar properties in the immediate area but in no
event shall the rent be less than that paid in the last month
of the initial Lease Term. Failing agreement, the rent is to
be fixed by arbitration under the commercial Arbitration Act
of British Columbia. Tenant must give written notice of
intention to exercise its option to renew on or before Four
(4) months prior to Lease expiry.
3. [THIS ITEM #3 HAS BEEN CROSSED OUT OF THIS AGREEMENT.] This Offer to
Lease is subject to the following Conditions Precedent which shall be
for the sole benefit of the _______. The Conditions Precedent are to be
removed in writing on or before ____________. Failing removal, this
Offer shall be null and void and all deposit monies are to be returned
to the _________.
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4. Further Conditions:
The Tenant shall have the right during first year of the rent to
purchase the premises for the price of $145,000.
5. Landlord to complete the following improvements, at its expense, by the
occupancy date or as soon thereafter as possible:
(1) To ______ front office included in allowance.
(2) To provide allowance of $6,000 to constitute Tenants' office.
The Tenant will provide Landlord a plan from Xxxx Xxxxxxx
which it will cost and approve. Tenant to pay costs above
$6,000 allowance.
6. Acceptance of this Offer by the Landlord is conditional upon the Tenant
providing the Landlord with information regarding the financial status of the
Tenant as the Landlord may reasonably require for the purposes of determining
the financial strength of the Tenant. Within five (5) business days of the date
of execution of this Offer by the Landlord the Tenant shall supply the Landlord
with the requested information. The Landlord shall have five (5) business days
from the date of receipt of the aforesaid information to determine whether or
not the Tenant is of sufficient financial strength. If the Landlord gives
written notice within the time limit specified that the Tenant is not of
sufficient financial strength then this offer shall become null and void and the
deposit returned to the Tenant immediately. If no written notice is given, the
financial strength will have been deemed satisfied.
7. Tenant's use of the premises shall be office, assembly, storage,
8. Tenant is solely responsible for obtaining any permits and licenses
associated with its occupancy of the Premises.
9. There are no warranties, representations or guarantees other than those
contained herein.
10. Any additional covenants set forth in writing and attached hereto as
Schedule "A" shall apply in addition to the above clauses.
11. Facsimile: The Tenant and the Landlord agree that this Offer/Counter
Offer when executed acceptance thereof may be communicated by facsimile
and that such agreements shall be legal and binding upon the parties
hereto.
THIS OFFER TO LEASE shall be open for acceptance up to 5 p.m. on the 24 day of
Nov. 1998.
DATED at Richmond this 24 day of Nov., 1998.
Upon acceptance by Landlord signing a copy of this Offer, same shall constitute
a binding agreement to lease on the terms and conditions herein set forth. If
the Tenant fails to execute and
deliver the lease to Re/Max Real Estate Services Ltd. by the date prescribed in
Clause 2 f), the Tenant shall forfeit the deposit as liquidated damages.
TENANT: MDU Communications, LTD
Per: /s/ Per: /s/
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Witness (Authorized Signatory)
Receipt of the above mentioned Deposit is hereby acknowledge by RE/MAX REAL
ESTATE SERVICES LTD.
RE/MAX REAL ESTATE SERVICES LTD. Per:
Leasing Broker -----------------------------------
RE/MAX REAL ESTATE SERVICES LTD. Per:
Listing Broker -----------------------------------
We hereby agree to lease the above described premises upon the terms and
conditions set forth. We also agree to pay our agent, the Listing Broker, a
commission equal to TWO (2) months' base rent along with any applicable Goods
and Services Tax (G.S.T.). Upon the date set for occupancy or upon execution of
the Lease, whichever occurs first, the commission and G.S.T. is then due and
payable and may be deducted from the deposit, with any remaining balance to be
paid forthwith to the Landlord. If the Lease agreement contains an Option to
Purchase and the Tenant purchases the building, the Landlord shall pay a
commission to the Listing Broker at closing in the amount of 7% on the first
$100,000.00 plus 2.5% on the balance less the lease commission paid with respect
to the Lease.
DATED at Richmond this 24th day of November, 1998.
LANDLORD:
Per: /s/ Per: /s/
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Witness (Authorized Signatory)
