1
EXHIBIT 10.16
COMMERCIAL LEASE AND DEPOSIT RECEIPT
Received from A-55 Limited Partnership, hereinafter referred to as LESSEE, the
sum of $_________________ (None dollars), evidenced by ________________, as a
deposit which shall belong to Lessor and shall be applied as follows:
TOTAL RECEIVED BALANCE DUE
PRIOR TO
OCCUPANCY
Rent for the period from May 1, 1997 to May 30, 1997........ $61,346.60 $ None $61,346.60
Security deposit (not applicable toward last month's rent).. $_________ $__________ $__________
Other....................................................... $_________ $__________ $__________
Total....................................................... $61,346.60 $ None $61,346.60
In the event this Lease is not accepted by the Lessor within N/A days, the total
deposit received will be refunded.
Lessee offers to lease from Lessor the premises situated in the City of Reno,
County of Washoe, State of Nevada, described as 0000 Xxxx Xxxx, upon the
following conditions:
1. TERM: The term will commence on May 1, 1997 and end on
May 1, 2000.
2. RENT: The total rent will be $61,346.60 payable as follows: paid on the
1st day of each month. All rents will be paid to Lessor or his/her
authorized agent, at the following address:____________________________
_______________________________________________________________________
or at such other places as may be designated by Lessor from time to
time. In the event rent is not paid within 10 days after due date,
Xxxxxx agrees to pay a late charge of $1.00 plus interest at 9% per
annum on the delinquent amount. Xxxxxx further agrees to pay $1.00 for
each dishonored bank check. The late charge period is not a grace
period, and Xxxxxx is entitled to make written demand for any rent if
not paid when due.
3. USE: The premises are to be used for the operation of Corporate Office
Headquarters and for no other purpose, without prior written consent of
Lessor. Lessee will not commit any waste upon the premises, or any
nuisance or act which may disturb the quiet enjoyment of any tenant in
the building.
4. USES PROHIBITED: Lessee will not use any portion of the premises for
purposes other than those specified. No use will be made or permitted
to be made upon the premises, nor acts done, which will increase the
existing rate of insurance upon the property, or cause cancellation of
insurance policies covering the property. Lessee will not conduct or
permit any sale by auction on the premises.
5. ASSIGNMENT AND SUBLETTING: Lessee will not assign this Lease or sublet
any portion of the premises without prior written consent of the Lessor,
which will not be
-2-
2
unreasonably withheld. Any such assignment or subletting without consent
will be void and, at the option of the Lessor, will terminate this
Lease.
6. ORDINANCES AND STATUTES: Lessee will comply with all statutes,
ordinances, and requirements of all municipal, state and federal
authorities now in force, or which may later be in force, regarding the
use of the premises. The commencement or pendency of any state or
federal court abatement proceeding affecting the use of the premises
will, at the option of the Lessor, be deemed a breach of this Lease.
7. MAINTENANCE, REPAIRS, ALTERATIONS: Unless otherwise indicated, Lessee
acknowledges that the premises are in good order and repair. Lessee
shall, at his/her own expense, maintain the premises in a good and safe
condition, including plate glass, electrical wiring, plumbing and
heating and air conditioning installations, and any other system or
equipment. The premises will be surrendered, at termination of the
Lease, in as good condition as received, normal wear and tear excepted.
Lessee will be responsible for all repairs required, except the
following which will be maintained by Lessor: roof, exterior walls,
structural foundations (including any retrofitting required by
governmental authorities) and: _______________________________________.
Lessee will also maintain in good condition property adjacent to the
premises, such as sidewalks, driveways, lawns, and shrubbery, which
would otherwise be maintained by Lessor.
No improvement or alteration of the premises will be made without
the prior written consent of the Lessor. Prior to the commencement of
any substantial repair, improvement, or alteration, Lessee will give
Lessor at last two (2) days written notice in order that Lessor may post
appropriate notices to avoid any liability for liens.
8. ENTRY AND INSPECTION: Lessee will permit Lessor or Lessor's agents to
enter the premises at reasonable times and upon reasonable notice for
the purpose of inspecting the premises, 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 "For Lease" signs, and permit persons
desiring to lease the premises to inspect the premises at reasonable
times.
9. INDEMNIFICATION OF LESSOR: Lessor will not be liable for any damage or
injury to Lessee, or any other person, or to any property, occurring on
the premises. Xxxxxx agrees to hold Lessor harmless from any claims for
damages arising out of Xxxxxx's use of the premises, and to indemnify
Lessor for any expense incurred by Xxxxxx in defending any such claims.
-3-
3
10. POSSESSION: If Lessor is unable to deliver possession of the premises
at the commencement date set forth above, Lessor will not be liable for
any damage caused by the delay, nor will this Lease be void or voidable,
but Lessee will not be liable for any rent until possession is
delivered. Lessee may terminate this Lease if possession in not
delivered within N/A days of the commencement term in Item 1.
11. LESSEE'S INSURANCE: Lessee, at his/her expense, will maintain plate
glass, public liability, and property damage insurance insuring Lessee
and Lessor with minimum coverage as follows: $1,000,000.
Lessee will provide Lessor with a Certificate of Insurance
showing Lessor as additional insured. The policy will require ten (10)
day's written notice to Lessor prior to cancellation or material change
of coverage.
12. LESSOR'S INSURANCE: Lessor will maintain hazard insurance covering one
hundred percent (100%) actual cash value of the improvements throughout
the Lease term. Lessor's insurance will not insure Lessee's personal
property, leasehold improvements, or trade fixtures.
13. SUBROGATION: To the maximum extent permitted by insurance policies which
may be owned by the parties, Lessor and Lessee waive any and all rights
of subrogation which might otherwise exist.
14. UTILITIES: Xxxxxx agrees that he/she will be responsible for the payment
of all utilities, including water, gas, electricity, heat and other
services delivered to the premises, except: None.
15. SIGNS: Lessee will not place, maintain, nor permit any sign or awning on
any exterior door, wall, or window of the premises without the express
written consent of Lessor, which will not be unreasonably withheld.
16. ABANDONMENT OF PREMISES: Lessee will not vacate or abandon the promises
[sic] at any time during the term of this Lease. If Xxxxxx does abandon
or vacate the premises, or is dispossessed by process of law, or
otherwise, any personal property belonging to Xxxxxx left on the
premises will be deemed to be abandoned, at the option of Lessor.
17. CONDEMNATION: If any part of the premises is condemned for public use,
and a part remains which is susceptible of occupation by Xxxxxx, this
Lease will, as to the part taken, terminate as of the date the condemnor
acquires possession. Lessee will be required to pay such proportion of
the rent for the remaining term as the value of the premises remaining
bears to the total value of the premises at the date of condemnation;
provided, however, that Lessor may at his/her option, terminate this
Lease as of the date the condemnor acquires
-4-
4
possession. In the event that the premises are condemned in whole, or
the remainder is not susceptible for use by the Lessee, this Lease will
terminate upon the date which the condemnor acquires possession. All
sums which may be payable on account of any condemnation will belong
solely to the Lessor; except that Xxxxxx will be entitled to retain any
amount awarded to him/her for his/her trade fixtures or moving expenses.
18. TRADE FIXTURES: Any and all improvements made to the premises during the
term will belong to the Lessor, except trade fixtures of the Lessee.
Lessee may, upon termination, remove all his/her trade fixtures, but
will pay for all costs necessary to repair any damage to the premises
occasioned by the removal.
19. DESTRUCTION OF PREMISES: In the event of a partial destruction of the
premises during the term, from any cause, Lessor will promptly repair
the premises, provided that such repairs can be reasonably made within
sixty (60) days. Such partial destruction will not terminate this
Lease, except that Lessee will be entitled to a proportionate reduction
of rent while such repairs are being made, based upon the extent to
which the making of such repairs interferes with the business of Lessee
on the premises. If the repairs cannot be made within sixty (60) days,
this Lease may be terminated at the option of either party by giving
written notice to the other party within the sixty (60) day period.
20. HAZARDOUS MATERIALS: Lessee will not use, store, or dispose of any
hazardous substances upon the premises, except the use and storage of
such substances that are customarily used in Lessee's business, and are
in compliance with all environmental laws. Hazardous substances means
any hazardous waste, substance or toxic materials regulated under any
environmental laws or regulations applicable to the property. Lessee
will be responsible for the cost of removal of any toxic contamination
caused by xxxxxx's use of the premises.
21. INSOLVENCY: The appointment of a receiver, an assignment for the
benefits of creditors, or the filing of a petition in bankruptcy by or
against Lessee, will constitute a breach of this Lease by Xxxxxx.
-5-
