EXHIBIT 10.3
MATERIAL CONTRACTS - OFFICE SPACE LEASE AGREEMENT
COMMERCIAL LEASE
This Lease is made between Regal Group, L.L.C. of 0000 Xxxxxxxx Xxxx.,
Xxxxx 000, Xxxxxxx Xxxxx, Xxxxxxxxxx 00000, herein called Lessor, and Millennium
Multi Xxxxx.xxx Corp. of Utah, herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the City
of Xxxxxxx Hills, County of Los Angeles, State of California, described as 0000
Xxxxxxxx Xxxx. Xxxxx 000 and Suite 202, upon the following TERMS and CONDITIONS:
1. Term and Rent. Lessor demises the above premises for a term of 2.5 years,
commencing November 1, 1999, and terminating on May 31, 2002, or sooner as
provided herein, at the annual rental of four thousand three hundred thirty four
Dollars and forty Cents ($4,334.40) for the first twelve months, increasing by
three percent (3%) per annum thereafter, payable in equal installments in
advance on the first day of each month for that month's rental, during the term
of this lease. All rental payments shall be made to Lessor, at the address
specified above.
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2. Use. Lessee shall occupy and use the premises for professional business. The
premises shall be used for no other purpose. Lessor represents that the premises
may lawfully be used for such purpose.
3. Care and Maintenance of Premises. Lessee acknowledges that the premises are
in good order and repair, unless otherwise indicated herein. Lessee shall, at
his own expense and at all times, maintain the premises in good and safe
condition, including plate glass, electrical wiring, plumbing and heating
installations and any other system or equipment upon the premises and shall
surrender the same, at termination hereof, in as good condition as received,
normal wear and tear excepted. Lessee shall be responsible for all repairs
required, excepting the roof, exterior walls, and structural foundations, which
shall be maintained by Lessor. Lessee shall also maintain in good condition such
portions adjacent to the premises, such as sidewalks, driveways, lawns and
shrubbery, which would otherwise be required to be maintained by Lessor.
4. Alterations. Lessee shall not, without first obtaining the written consent of
Lessor, make any alterations, additions, or improvements, in, to or about the
premises.
5. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances
and requirements of all municipal, state and federal authorities now in force,
or which may hereafter be in force, pertaining to the premises, occasioned by or
affecting the use thereof by Lessee.
6. Assignment and Subletting. Lessee shall not assign this lease or sublet any
portion of the premises without prior written consent of the Lessor, which shall
not be unreasonably withheld. Any such assignment or subletting without consent
shall be void and, at the option of the Lessor, may terminate this lease.
7. Utilities. All applications and connections for necessary utility services on
the demised premises shall be made in the name of the Lessee only, and Lessee
shall be solely liable for utility charges as they become due, including those
for sewer, water, gas, electricity, and telephone services.
8. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter
upon the premises at reasonable times and upon reasonable notice, for the
purpose of inspecting the same, and will permit Lessor at any time within sixty
(60) days prior to the expiration of this lease, to place upon the premises any
usual "To Let" or "For Lease" signs, and permit persons desiring to lease the
same to inspect the premises thereafter.
9. Possession. If Lessor is unable to deliver possession of the premises at the
commencement hereof, Lessor shall not be liable for any damage caused thereby,
nor shall this lease be void or voidable, but Lessee shall not be liable for any
rent until possession is delivered. Lessee may terminate this lease if
possession is not delivered within 30 days of the commencement of the term
hereof.
10. Indemnification of Lessor. Lessor shall not be liable for any damage or
injury to Lessee, or any other person, or to any property, occurring on the
demised premises or any part thereof, and Lessee agrees to hold Lessor harmless
form any claims for damages, no matter how caused.
11. Insurance. Lessee, at his expense, shall maintain plate glass and public
liability insurance including bodily injury and property damage insuring Lessee
and Lessor with minimum coverage as follows:
Lessee shall provide Lessor with a certificate of Insurance showing Lessor
as additional insured. The Certificate shall provide for a ten-day written
notice to Lessor in the event of cancellation or material change of coverage. To
the maximum extent permitted by insurance policies, which may be owned by Lessor
or Lessee, Lessee and Lessor for the benefit of each other, waive any and all
rights of subrogation which might otherwise exist.
12. Eminent Domain. If the premises or any part thereof or ant estate therein,
or any other part of the building materially affecting Lessee's use of premises,
shall be taken by eminent domain, this lease shall terminate on the date when
title vests pursuant to such taking. The rent, and any additional rent, shall be
apportioned as of the termination date, and any rent for any period beyond that
date shall be repaid to Lessee. Lessee shall not be entitled to any part of the
award for such taking or any payment in lieu thereof, but Lessee may file a
claim for taking of fixtures and improvements owned by Lessee, and for moving
expenses.
13. Destruction of Premises. In the event of a partial destruction of the
premises during the term hereof, form any cause, Lessor shall forthwith repair
the same, provided that such repairs can be made within sixty (60) days under
existing governmental laws and regulations, but such partial destruction shall
not terminate this lease, except that Lessee shall be entitled to a
proportionate reduction of rent while such repairs are being made based upon the
extent to which the making of
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such repairs shall interfere with the business of Lessee on the premises. If
such repairs cannot be made within said sixty (60) days, Lessor, at his opinion,
may make the same within a reasonable time, this lease continuing in effect with
the rent proportionately abated as aforesaid, and in the event that Lessor shall
not elect to make such repairs which cannot be made within sixty (60) days, this
lease may be terminated at the option of either party. In the event that the
building in which the demised premises may be situated is destroyed to an extent
of not less than one-third of the replacement costs thereof, Lessor may elect to
terminate this lease whether the demised premises be injured or not. A total
destruction of the building in which the premises may be situated shall
terminate this lease.
14. Lessor's Remedies and Default. If lessee defaults in the payment of rent, or
any additional rent, or defaults in the performance of any other covenants or
conditions hereof, Lessor may give Lessee notice of such default and if Lessee
does not cure any such default within 30 days, after the giving of such notice
(or if such other default is of such nature that it cannot be completely cured
within such period, if Lessee does not commence such curing within such 30 days
and thereafter proceed with reasonable diligence and in good faith to cure such
default), then Lessor may terminate this lease on not less than 15 days' notice
to Lessee. On the date specified in such notice the term of this lease shall
terminate, and Lessee shall then quit and surrender the premises to Lessor, but
Lessee shall remain liable as hereinafter provided. If this lease shall have
been so terminated by Lessor, Lessor may at any time thereafter resume
possession of the premises by any lawful means and remove Lessee or other
occupants and their effects. No failure to enforce any term shall be deemed a
waiver.
15. Security Deposit. Lessee shall deposit with Lessor on the signing of this
lease the sum of two thousand sixty seven Dollars and forty eight Cents
($2,067.48) as security for the performance of Lessee's obligation under this
lease, including without limitation the surrender of possession of the premises
to Lessor as herein provided. If Lessor applies any part of the deposit to cure
any default of Lessee, Lessee shall on demand deposit with Lessor the amount so
applied so that Lessor shall have the full deposit on hand at all times during
the term of the lease.
16. Tax Increase. In the event there is any increase during any year of the term
of this lease in the City, County or State real estate taxes over and above the
amount of such taxes assessed for the tax year during which the term of this
lease commences, whether because of increased rate or valuation, Lessee shall
pay to Lessor upon presentation of paid tax bills an amount equal to 0% of the
increase in taxes upon the land and building in which the leased premises are
situated. In the event that such taxes are assessed for a tax year extending
beyond the term of the lease, the obligation of Lessee shall be proportionate to
the portion of the lease term included in such year.
17. Common Area Expense. In the event the demised premises are situated in a
shopping center or in a commercial building in which there are common areas,
Lessee agrees to pay his pro-rate share of maintenance, taxes, and insurance for
the common area.
18. Attorney's Fees. In case suit should be brought for recovery of the
premises, or for any sum due hereunder, or because of any act which may arise
out of the possession of the premises, by either party, the prevailing party
shall be entitled to all costs incurred in connection with such action,
including a reasonable attorney's fee.
19. Waiver. No failure of Lessor to enforce any term hereof shall be deemed to
be a waiver.
20. Notices. Any notice which either party may or is required to give, shall be
given by mailing the same, postage prepaid, to Lessee at the premises, or Lessor
at the address shown below, or at such other places as may be designated by the
parties form time to time.
21. Heirs, Assigns, Successors. This lease is binding upon and inures to the
benefit of the heirs, assigns and successors in interest to the parties.
22. Subordination. This lease is and shall be subordinated to all existing and
future liens and encumbrances against the property.
23. Entire Agreement. The foregoing constitutes the entire agreement between the
parties and may be modified only by a writing signed by both parties.
Signed this 25th day of October, 1999
/s/ Xxxxx Xxxx /s/ Xxxxxx Xxxxxx
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By: Xxxxx Xxxx By: Xxxxxx Xxxxxx
Lessee Lessor
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