LEASE
1. PARTIES. This Lease, dated October 18, 1999, is made by and between
XXXXXX XXXXXXX and XXXXXX XXXXXXX, Trustees of the Xxxxxxx Family Trust (herein
called "Landlord"), and XXXXXX COMPUTER, INC., (herein called "Tenant").
2. PREMISES. In consideration of the promises made by each Party herein,
Landlord hereby leases to Tenant, and Tenant leases from Landlord for the term,
at the rental, and upon all of the conditions set forth herein, that certain
real property situated in the City of Scottsdale, County of Xxxxxxxx, Xxxxx xx
Xxxxxxx, 00000, commonly known as: Xxxxx 000 of 0000 X. Xxxx Xxxxxx, Xxxxxxxxxx,
Xxxxxxx 00000.
3. TERM. This Lease is for a term of three years, commencing on November 1,
1999, and ending on October 31, 2002.
4. RENTAL.
A. Tenant shall pay to Landlord as rent for the leased premises, equal
monthly installments of four hundred and twenty dollars and no cents plus tax of
$7.98 dollars ($420.00 + 7.98, total of $427.98) in advance on the first day of
each and every month of the term hereof. (Plus the aggregate amount of all
privilege, excise, or sales taxes levied or imposed by any Federal, State,
County, Municipal, or other governmental authority during the term hereof, which
are measured by or payable on account of this Lease Agreement or the rentals
payable hereunder, or any part thereof, except Landlord's Income Tax).
B. Rent for any period during the term hereof which is for less than
one month shall be a prorata portion of the monthly installment. Rent shall be
payable without Notice or demand and without any deduction, offset or abatement,
in lawful money of the United States of America to Landlord at the address
stated herein or to such other persons or at such other places as Landlord may
designate in writing.
C. Tenant agrees to pay to Landlord at the time of execution of the
Lease, the sum of _______________________________________________________DOLLARS
($_____) representing the amount of the first and last month's rental as
security for the performance of the terms hereof by Tenant, which said security
deposit shall be returned to Tenant following termination of the lease if Tenant
has discharged all obligations to Landlord in full.
D. After the first year, there will be an annual rental adjustment
applied using the consumer price index ("CPI"). CPI refers to the Consumer Price
Index for All Urban Consumers, U.S. City Average, All Items, compiled by Bureau
of Labor Statistics, United States Department of Labor, using the index for
January, 1988 as a base of 100. The CPI rental adjustment is computed by
dividing the CPI for the calendar month immediately preceding the adjustment by
the CPI for the month immediately preceding the prior 12 month period, and
multiplying the quotient by the current rental rate. The maximum rental increase
of one year over the preceding shall not exceed 5%. There will be no decrease in
rent.
5. USE OF PREMISES. The leased premises are to be used and occupied by the
Tenant for Computer Business and for not other purpose.
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6. SIGNS. Any advertising or other signs erected or displayed by the Tenant
of the said premises must first be approved by the Landlord in writing. If the
consent of he Landlord is granted, such signs shall be installed, maintained and
removed at the Tenant's expense.
7. TENANT IMPROVEMENTS. Tenant may place partitions and fixtures (including
light fixtures) and make improvements and other alterations in the interior of
the leased premises at Tenant's own expense. Such improvements or alterations
installed or made by Tenant, other than those of a structural nature, shall
remain the property of the Tenant, provided, however, that prior to commencing
any such work, Tenant shall first obtain the written consent of Landlord to the
plans and specifications for proposed work. Landlord may require that said work
be done by Landlord's own employees or under Landlord's own direction, but at
the expense of Tenant, and Landlord may, as a condition to consenting to such
work, require that Tenant give security that the work will be completed free and
clear of liens and in a manner satisfactory to Landlord, and that the premises
will be repaired by Tenant or restored by Tenant to its former condition at the
termination of the Lease at Tenant's sole cost and expense. Tenant agrees that
at the termination of the Lease it will deliver up the premises to Landlord in
good condition and repair, reasonable use and wear excepted.
8. FIRE OR CASUALTY.
A. In the event the leased premises are wholly or partially destroyed
by fire or other casualty covered by the usual form of fire insurance with
extended coverage, rendering them untenantable, Landlord shall repair or restore
the leased premises to substantially the same condition as when the same were
furnished to Tenant, and Lease shall remain in effect during such period. In
such events, rent shall xxxxx during the period of reconstruction in the
proportion by which Tenant is deprived of the use of the lease premises. In the
event, however, that the building containing the leased premises is damaged or
destroyed to the extent of more than one-third (1/3) of its replacement cost,
Landlord may elect to terminate this Lease.
B. Tenant agrees to comply with all rules and regulations of the Board
of Fire Underwriters and the rules and regulations of City, County and State.
9. MAINTENANCE. The Landlord agrees to keep the roof, exterior walls,
sidewalks and parking areas of said building clean and in good order and repair
during the term of this Lease. The Tenant agrees to repair and maintain interior
of leased premises for conditions caused by the Tenant or its employees or its
invitees, except for normal wear or tear. The Tenant agrees that it will do at
its own expense, all redecorating, remodeling, alterations and painting required
by it during the term of the Lease, and that it will maintain the leased
premises in a safe, clean, neat and sanitary condition. (See paragraph 18.B.)
10. ASSIGNMENT. It is agreed that Tenant will not assign or sublet, in
whole or part, this Lease or any portion of the leased premises without the
prior written consent of the Landlord. Consent to an assignment by Landlord
shall not relieve the Tenant herein form any of its obligations assumed under
this Lease.
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11. INJURY AND LOSS.
A. Landlord shall not be responsible for any loss, theft or damage to
the property or injury to or death of any person on or about the premises, and
Tenant agrees to indemnify and hold Landlord harmless therefrom.
B. Tenant agrees to obtain and carry at all times during the lease
term, public liability insurance with reputable, financially-responsible
insurance carrier, insuring both Tenant and Landlord, with limits of not less
than $_____*__ for injury or accident to any person and $___________ for
property damage, Upon request, Tenant will furnish to Landlord certificates of
such insurance, disclosing Landlord as a named insured. *(See paragraph 18.C.)
12. EMINENT DOMAIN. In the event any portion of the leased premises is
taken from Tenant under eminent domain proceedings, Tenant shall have no right,
title or interest to any award made for such taking, except for fixtures or
improvements installed by Tenant.
13. WAIVER. No exemption or consent to any waiver of any of the provisions
hereof by Landlord shall be deemed to have been made unless the same is
expressed in writing.
14, SERVICE.
A. Tenant agrees to pay its prorated share of electricity and gas each
month based on square feet leased. Total leasable building being 4,006 square
feet.
B. Tenant agrees to provide its own janitorial and cleaning of the
lease space.
C. Landlord agrees to provide water and year maintenance for the
building.
15. BUILDING RULES AND REGULATIONS. Tenant agrees to abide by all the rules
and regulations of the building imposed by Landlord with regard to cleanliness,
good appearance, proper maintenance, good order and reasonable use of the
premises, and the building, and as may be necessary for the proper enjoyment of
the building by all tenants and their clients, customers and employees. Such
rules and regulations may be changed from time to time upon reasonable notice to
Tenant.
16. NOTICES. For all purposes relating to this Lease, the address of the
Landlord is: X.X. Xxx 00000, Xxxxxx, Xxxxxx 00000-0000, and the address of the
Tenant is: Suite 600 of 0000 X. Xxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxx 00000. Notices
relating to this Lease shall be deemed to have been received by addressee on the
fifth day following depositing the notice in the U.S. mail, properly addressed
and postage prepaid.
17. DEFAULT.
A. If Tenant fails to pay the rent or other sums herein provide when
due, or if Tenant fails to keep or perform any of the other terms and conditions
hereof and such failure shall continue for more than ten (10) days after notice
to Tenant, Tenant shall be deemed in default hereunder.
B. Upon default hereunder by Tenant, Landlord may terminate this
Lease, re-enter the leased premises, and distrain for rent due or remove
therefrom property not belonging to Landlord, all without liability or
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obligation of any kind to Tenant. It is expressly understood that (1) time is of
the essence, (2) the failure to Landlord to exercise any right hereunder shall
not constitute a waiver of any other or further default of Tenant, including any
other or further default in the payment of sums owing hereunder when due, and
(3) the enumeration of express rights and options herein shall not limit the
Landlord thereto nor deprive Landlord of any other remedy or combination of
remedies provided by law, including the right to recover from Tenant any
deficiency upon re-renting.
C. Tenant shall pay Landlord for all costs and expenses, including
reasonable attorneys' fees, incurred by Landlord in connection with any default
hereunder by Tenant, whether or not legal action is commenced and whether or not
such action shall proceed to judgment.
18. MISCELLANEOUS PROVISIONS.
A. Each and all of the agreements herein contained shall inure to the
benefit of, and shall bind not only the parties hereto, but each and all of the
heirs, legal representatives, executors and assigns of the Landlord and of the
Tenant, and wherever reference is made to the Landlord or to the Tenant herein,
such reference shall be deemed to include the respective successors and assigns
of the Landlord and of the Tenant, as the case may be.
B. (Paragraph 9 Cont'd). Landlord will maintain all electrical,
plumbing, air conditioning and heating requiring repair resulting from ordinary
use; provided, however Tenant will replace interior air filter every three
months. Landlord also agrees to provide two covered parking spaces at no extra
charge.
C. Tenant shall cause Landlord to be named insured on policy
1-75274125 for coverage provided by National Fire Insurance Company of Hartford.
IN WITNESS WHEREOF, the parties have duly executed this lease at
Scottsdale, Arizona, as o f the day and year first above written.
LANDLORD:
TENANT: XXXXXXX FAMILY TRUST
/s/ /s/
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Telephone No. Trustee Telephone No.
/s/
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Telephone No. Trustee Telephone No.
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