LEASE AGREEMENT
THIS AGREEMENT made and entered into this 1st day of December, 1996
by and between RAM Holding Corporation, Assignee of Colorado
Commercial Brokers, Inc., hereinafter "Landlord" and Eclipse
Corporation, Assignee of Columbine Home Sales, Limited Liability
Company, hereinafter "Tenant",
W I T N E S S E T H :
The Assignors of the parties having previously entered into a Lease
dated August 15, 1995, and the parties wishing to modify that lease
and agree upon new terms, Landlord does hereby lease to the Tenant
and the Tenant does hereby take and hire from the Landlord the
following described property in the County of El Paso and State of
Colorado, to wit:
See Attached.
TERM: The term of this lease shall commence on December 1, 1996
and continue for a period of thirty (30) months, expiring on May 1,
1999. Tenant has an option to extend this lease upon the same terms
and conditions, excepting the condition of rental, for an additional
term of twenty-four (24) months upon giving thirty (30) days' notice
to Landlord prior to the end of the initial term. The fixed annual
minimum rent during each year of the extended term shall be the sum
equal to the product resulting from multiplying the fixed annual
minimum rent for the final full lease year of the initial term by the
number - which shall in no event be less than one (1) - found by
dividing the index (as defined below) for the first full calendar
month in which falls the beginning of the extended term for which
such fixed annual minimum rent is being computed, by the index for
the first month of the initial term of this Lease. Such index shall
be defined as the Consumer Price Index for all urban consumers,
published by the United States Department of Labor, Bureau of Labor
Statistics (national average).
RENT: The Tenant agrees to pay to the Landlord as rent for the
leased premises the sum of $5000.00 per month, which shall be paid in
the following manner:
1) $5000.00 due and payable on the first day of each month
commencing December 1, 1996 and continuing thereafter during the
term of the lease.
2) Late Payment Fee. In the event rent set forth hereinabove
is not paid within five (5) days of its due date, a penalty of
ten (10%) percent will be added to the rent then due.
USE: The Tenant expressly covenants and agrees to use the
leased premises for the sale of modular homes and for no other
purpose whatsoever without the written prior consent of the Landlord
to such change in use, which consent however shall not be
unreasonably withheld. Tenant shall use the premises for no purpose
which is unlawful or contrary to any zoning regulations or ordinances
in effect.
PERSONAL PROPERTY TAXES: Tenant shall pay all personal property
taxes accruing under the terms of this lease for personal property
owned by Tenant and kept on the leased premises.
REAL PROPERTY TAXES: Landlord shall pay all real property taxes
on the subject real property.
UTILITIES: All utilities used on the leased premises during the
term of this lease shall be paid for by the Tenant.
INSURANCE: Tenant agrees to pay the premium for sufficient fire
and extended coverage insurance on the leased premises during the
term of this lease to cover the cost of rebuilding or repairing the
leased premises in the event of total or partial destruction thereof.
Tenant agrees to carry and maintain public liability insurance for
the leased premises in a minimum amount of $300,000. Tenant shall
furnish Landlord with appropriate certificates of insurance coverage.
MAINTENANCE: Tenant shall be responsible for the exterior and
interior maintenance of the leased premises during the term of this
lease. All repairs, alterations or additions to the interior of the
premises shall be made by the Tenant, provided however that all
replacements or major repairs to the plumbing, heating or electrical
systems on the leased premises which are not necessitated by the
negligence of the Tenant shall be paid for by the Landlord. All
other repairs not specifically listed herein are to be paid by the
Tenant.
INSPECTION: Landlord can enter upon and inspect the leased
premises at all reasonable times during the term hereof.
IMPROVEMENTS: All improvements placed upon the leased premises
of a permanent nature by the Tenant shall be and become the property
of Landlord at the expiration of this lease. The Landlord shall be
under no obligation to reimburse the Tenant for any sums of money so
expended in making permanent improvements on the leased premises.
DESTRUCTION OF PREMISES: Should the leased premises be
destroyed or rendered uninhabitable through no act or fault of the
Tenant, either by fire, act of God or otherwise, then this lease may
be forthwith terminated by the Tenant at its option unless the
parties agree that such premises shall be reconstructed from
insurance proceeds and if such reconstruction is performed, then rent
hereunder shall be suspended for a period of 90 days or until the re-
occupancy of the premises by Tenant, whichever shall first occur.
DEFAULT: The Tenant promises and agrees that if default be made
in the payments of rent or in the performance of any of the
conditions of this lease, that this lease may be forthwith terminated
at the election of the Landlord and the Tenant will immediately
surrender and deliver up possession of the leased premises to the
Landlord upon receiving written notice from the Landlord of the
breach of the conditions of this lease and the election of the
Landlord to so terminate this lease. In the event of such default by
Tenant then the Landlord, besides other rights and remedies which it
may have, shall have the immediate right of re-entry and the right to
remove all persons and property from the leased premises at the
expense of the Tenant. Should the Landlord elect to re-enter as
herein provided or should it take possession pursuant to legal
proceedings or pursuant to any notice provided for by law, it may
either terminate this lease or it may, from time to time, without
terminating this lease, re-let or release the leased premises or any
part thereof for such amount of rental and upon such terms and
conditions as Landlord in its sole discretion and judgment may deem
advisable. Landlord may make such alterations, improvements and
repairs to the leased premises as it may deem advisable. No such re-
letting or releasing of the leased premises by Landlord under the
circumstances set forth in this paragraph shall be construed as the
election on Landlord's part to terminate or cancel this lease unless
a written notice of such termination or cancellation is mailed by the
Landlord to the Tenant at the address of the leased premises nor
shall such re-letting release the Tenant from liability to the
Landlord for any and all damages of whatsoever type or nature which
the Landlord may have or will suffer or incur as a result of Tenant's
breach of any of the terms, covenants, provisions and conditions
herein contained. Notwithstanding any such re-letting or releasing
without termination of this lease by the Landlord, Landlord may at
any time thereafter elect to terminate the lease for such previous
breach by the Tenant. In the event it should become necessary for
Landlord to employ an attorney to enforce any of the provisions
hereof, Landlord shall be entitled to recovery from Tenant for his
costs in such behalf expended plus a reasonable attorney's fee.
In the event this lease is terminated by reason of the default of
Tenant, it is understood and agreed that the Landlord shall be
entitled to retain any advance rental or deposit herein made, to
partially compensate Landlord for damages suffered by reason of such
default. Nothing herein contained shall be construed however as
precluding the Landlord from recovering from Tenant any further or
additional damages which it may have suffered by reason of such
default of the Tenant as provided herein.
SURRENDER AND HOLDING OVER: Upon expiration of the term of this
lease, or any extension thereof, the Tenant agrees to surrender and
deliver up possession of the leased premises to the Landlord in as
good condition and repair as the same are at this time, ordinary wear
and tear excepted. In the event the leased premises shall be damaged
beyond reasonable wear and tear, the Tenant agrees to immediately pay
Landlord such sum of money as shall be reasonable expended by the
Landlord in restoring the leased premises to its former condition.
Should the Tenant continue in possession of the leased premises after
the expiration of this lease without a written extension or renewal
hereof, such possession shall be on a month-to-month basis only and
then at a monthly rate herein specified.
NO WAIVER: The failure of Landlord to insist in any one or more
instances upon a strict performance of any of the obligations,
covenants or agreements herein contained shall in no wise be
construed to constitute a waiver, relinquishment or release of such
obligations, covenants or agreements, and no forbearance by the
Landlord of any default hereunder shall in any manner be construed as
constituting a waiver of such default.
TENANT'S DUTIES RE SIDEWALK OR WALKWAYS: The Tenant shall keep
the sidewalks and walkways in front of and around the leased premises
free and clear of ice and snow and free from litter, dirt, debris and
obstructions.
BANKRUPTCY: If the Tenant shall be declared insolvent or
bankrupt or if any assignment of his property shall be made for the
benefit of his creditors or others or if the Tenant's leasehold
interest herein shall be levied upon under execution or taken by
virtue of any writ of any Court of Law or if the Trustee in
Bankruptcy or a Receiver is appointed for the property of the Tenant,
then and upon the happening of any one of these events the Landlord
may, at its option, immediately and with or without notice terminate
and cancel this lease and immediately retake possession of the leased
premises without thereby occasioning any forfeiture of the
obligations of the Tenant previously accrued under this lease.
EMINENT DOMAIN: In the event all or any part of the leased
premises shall be taken by right of eminent domain, or in the event
the Landlord makes a conveyance of all or any part of the leased
premises in lieu of taking by right of eminent domain, then this
lease shall, at the option of the Landlord, cease and terminate. In
such event the Tenant shall not be required to make any further
rental payments to the Landlord and the Tenant shall have the right
to remove from the leased premises any and all furniture, machinery
and fixtures set forth herein. In such event of a taking of all or
part of the leased premises by right of eminent domain or a
conveyance in lieu of such taking, the Landlord shall receive the
entire award or price with the condemning or taking governmental
authority will pay for the leased premises.
MISCELLANEOUS:
This lease agreement is further subject to any and all
special conditions which are contained in this lease in the
appropriate space provided therefor.
Wherever used herein the singular shall include the plural
and the use of any gender shall be applicable to all genders.
This lease shall bind and benefit alike the heirs,
successors and assigns of the parties hereto.
IN WITNESS WHEREOF the parties hereto have set their hands and
affixed their seals on the day and year first above written.
DATED this _____ day of _________________, 1996.
RAM HOLDING CORPORATION
BY: _________________________________
Xxxx Xxxxxxxxx, President
ECLIPSE CORPORATION
BY: __________________________________
ATTACHMENT
TO
LEASE AGREEMENT DATED DECEMBER 1, 1996
BETWEEN
RAM HOLDING CORPORATION and ECLIPSE CORPORATION
LEGAL DESCRIPTIONS.
0000 X. Xxxxxx, Xxxxxxxx Xxxxxxx, Xxxxxxxx, 00000:
Parcel 1: Approximately 100 feet of frontage x 175 depth
for a sales lot for modular homes.
Parcel 2: Approximately 200 feet x 175 feet depth for
sales office for modular homes.
