LEASE AGREEMENT
This commercial lease is entered into between Industrial Management &
Engineering, Inc. ("Landlord") and Covol Technologies, Inc., ("Tenant"). The
Landlord hereby leases the below described commercial property to the Tenant.
The Tenant hereby accepts the lease. The terms of the lease are as follows:
1. The lease pertains to the property, including the building and the adjacent
paved parking area located at 0000 Xxxxx Xxxxxxxx Xxxx, Xxxx, Xxxx 00000, but
excluding the currently fenced off portion on the north of the property (the
"Premises").
2. The initial term of the lease shall be for a period of three years,
commencing on the 1st day of August, 1997 and ending on the 31st day of July
2000. Thereafter, the lease shall automatically extend for successive one-year
periods unless prior to the end of any lease year, Tenant shall give Landlord
60-days written notice of it intent to terminate the lease.
3. The Tenant shall pay Landlord, the monthly rent of $5,000.00 payable on the
first day of every month. There will be a late fee of $100 if the rent is not
paid by the 5th of the month, plus $10 for each additional day until paid. After
the initial term of the lease, the amount of the rent will increase by 5% per
annum. If Landlord builds additional commercial rental space on the fenced
portion of the Premises and Tenant desires to lease those structures, the terms
for such additional space shall be agreed upon by the parties.
4. The Tenant shall be responsible for providing all utilities, property taxes,
and maintenance of the Premises.
5. The Landlord shall provide such additional parking space as Tenant may
require, at no additional cost to the Tenant.
6. The Tenant agrees to return possession of the Premises at the conclusion of
the lease in its present condition, except for normal wear and tear.
7. The Premises shall be used for the purpose of conducting the proper business
activities of Tenant which include but are not limited to the development and
world-wide commercialization of its patented agglomeration technology.
8. The Tenant shall not assign or sublease the Premises without written
permission of the Landlord.
9. No material or structural alterations of the Premises will be made without
the prior written permission of the Landlord.
10. The Tenant will comply with all zoning, health, environmental and use
ordinances.
11. In the event that legal action is necessary to enforce any provisions of
this contract, attorney fees may be recovered by the prevailing party.
12. This lease is subject to the formal transfer of ownership of the Premises
from Tenant to Landlord.
Signed this 7th day of November, 1997.
Landlord Tenant
IME COVOL TECHNOLOGIES, INC.
By: /s/ Xxxxxx Xxxxxx By:/s/ Xxxxxxx Xxxxxxx
----------------------- ---------------------
Its: Director Its: CFO
