Exhibit 10(c)
LEASE of 2770, 2780 to SYTRON
LEASE OF 35040 sf approx. of 2770 & 0000 XXXXXXXXXX XX.,
XXXXXXXXXX, XX. to SYTRON INC.
This lease made and entered into this thirtieth day of June 1998, by and between
the Xxxxxx Xxx Family Trust, hereinafter referred to as "Landlord" and SYTRON
INC. of 0000 Xxxxxxxxxx Xxxx, Xxxxxxxxxx, XX. hereinafter referred to as
"Tenant."
1. PREMISES: Landlord for and in consideration of all rents, covenants,
agreements and conditions hereinafter set forth to be kept and performed by
Tenant has this day and by these presents rents, leases, and lets unto Tenant
the premises identified by FLOOR PLAN in Exhibit A attached hereto and
incorporated herein by this reference consisting of approximately 35,040 square
feet (the "Demised Premises") which are located in the building located at 2770
& 0000 Xxxxxxxxxx Xxxx, Xxxxxxxxxx, Xxxxxxxx ("the Building") . The Area
occupied is 43% of the total building.
2. TERMS OF LEASE: The term of this lease (the "Term") shall commence upon
signing & ending 12/31/2002. The Tenant will be leasing both spaces at the rent
schedule listed in item 3 below, 'RENT' . As a special consideration Sytron will
pay 1/2 rent on 2780 [18,000sf] for the first three months of this lease. The
Temporary tenant 'Fusion Specialties' will be allowed to stay in the space until
31 days after Sytron requests in writing to landlord that they be removed. All
rent paid by Fusion Specialties will be collected and retained by landlord.
3. RENT: Tenant agrees to pay as rent to Landlord at its address specified
in this Lease, or at such other place Landlord may from time to time designate
to Tenant in Writing, the following amounts for the periods indicated:
Period Rental Rate/sf/yr.
------ ------ -----------
7/1/98 to 12/31/2002 $15,768/mo. 5.40
In advance on the 1st day of each and every calendar month during the Term
hereof, starting the first day Tenant moves into new space. The 1st months rent
will be prorated if tenant moves in mid-month.
Rent is due on the first (1st) day of each calendar month. In the event
that rent is received by Landlord after the fifth day of the month for any
reason this will be a material breach of the lease and a 10% late fee(l0% of
monthly rent) will be assessed to be paid with the rent. Failure to pay this
late fee will also be a material breach of the lease. Further 1.5% per month
will be charged on all
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uncollected back charges. The Rent for any partial month to be paid hereunder
shall be prorated for the portion of the month the Demised Premises are occupied
by Tenant. The last month's Rent shall be due and Payable on or before
11/31/2003
3.5 TAXES:
Tenant shall pay, as additional rent hereunder, all prorated increases in
general property taxes and increases in insurance premiums of Landlord paid for
general liability, hazard, fire and extended coverage insurance under Paragraph
5 hereof, over the base year of 1998 for general property taxes ("Base Tax
Rate") and base year of 1998 for insurance, for therDemised Premises. Such
increases in general property taxes and insurance premiums shall be paid by
Tenant to Landlord each year within 30 days following receipt of Landlord's
notice to Tenant of such increases, prorated for Tenant's use of above stated
percentage of the total building.
4. LIMITATION of USE of PREMISES: During the term of this Lease, the
Demised Premises shall be used and operated only for the purposes of
engineering, development, marketing, sales, & manufacture of security devices
together with such other activities as tenant shall reasonably engage. Provided,
however, no change in the use of the Demised Premises from that set forth above
shall be made without the prior written approval and consent o4 the Landlord.
Tenant will not use or permit any person to use said Demised Premises or any
buildings situated upon the Demised Premises at any time, for any purpose in
violation of the laws of the United States, the State of Colorado, or the
Ordinances of the City of Broomfield, Colorado. Tenant shall keep said Demised
Premises and improvements at any time situated thereon, and every part thereof
in a clean condition and in a good state of repair, and shall comply fully with
all laws and regulations relating to health and safety, applicable to the real
property upon which the Demised Premise is located.
Tenant to have the right to park two storage trailers in a area designated
by the Landlord, provided that they put blocks under the front dollies of the
trailers to prevent damage to the asphalt. This trailer parking may have to come
out of the parking that is designated for Sytron.
5. INSURANCE: Landlord shall maintain general liability insurance and
hazard, fire and extended coverage insurance on the Building throughout the Term
based on
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replacement value from a licensed casualty insurance company authorized to do
business in the State of Colorado and approved by Landlord in Landlord's sole
discretion. The general liability hazard, fire and extended coverage insurance
shall be at Landlord's expense except that Tenant shall pay for all prorated
increases in premiums for such coverage attributable to the Demised Premises as
occupied by Tenant as set forth in Paragraph 3. At the beginning of this lease
term, the insurance premium on the Demised Premises is 43% of $3014. Landlord
shall notify Tenant in writing of any increases in its insurance costs for the
Demised Premises by delivering to Tenant a copy of any notice of increase that
Landlord receives from its insurance carrier with the notice of Increases
provided for in paragraph 3 of this Lease. Such insurance to be obtained by
Landlord shall not cover the contents of the Demised Premises, and Tenant shall
be responsible for insuring such contents. The parties hereby waive all rights
of subrogation against one another, and agree to execute whatever other
documents are reasonably required to carry out this mutual waiver of
subrogation. Tenant shall at all times during the Term keep in effect public
liability insurance and property damage insurance with bodily injury coverage in
the names of and for the benefit of Tenant and Landlord (as an additional named
[insured] with limits as follows:
Bodily Injury: $1,000,000 each person
$3,000,000 each accident
Property Damage: $1,000,000 aggregate or each
occurrence
Such insurance may, at Tenant's election, be carried under any general blanket
coverage of Tenant. A certificate of insurance acceptable to Landlord shall be
tendered by Tenant and provided to Landlord not less than fifteen (15) days
after the execution of this lease. Each original policy or a certified copy
thereof, or a certificate of the insurer evidencing insurance carried with proof
of payment of the premium by Tenant will be deposited with Landlord within ten
(10) days after execution of the lease. Tenant shall have the right to settle
and adjust all liability claims and all claims against the insuring companies,
but without subjecting Landlord to any liability or obligation.
6. INDEMNIFICATION of LANDLORD: Tenant hereby agrees to indemnify and hold
harmless Landlord from any and all claims of any kind or nature arising from the
Tenant's use of the Demised Premises during the Term hereof. Tenant
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hereby waives all claims against Landlord for damage to goods, wares or
merchandise or for injury to persons in and upon the Demised Premises from any
cause whatsoever, except such as might result from the negligence of Landlord to
perform its obligations hereunder within a reasonable time after notice provided
to Landlord in writing by the Tenant requiring such performance by the Landlord.
Notice will be delivered to 0000 Xxxxxxx, Xxxxxxxxxx, XX, 00000 by certified
mail.
7. MAINTENANCE: Landlord agrees to maintain in good repair (i) the roof of
the Building. (ii) the asphalt paved parking lot, and (iii) the existing
landscaping adjacent to the parking lot. Tenant agrees to keep the exterior of
the Demised Premise (including but not limited to the overhead doors, lighting,
wall panels, windows, doors and dock assemblage) and all the interior(including
without limitation all lights, windows, doors, plumbing, electrical, and carpet)
of the Demised Premises, clean and in good repair at all times. Tenant shall
maintain all EVAC that is for the benefit of the demised premises whether
installed in the demised premises, on the roof, or outside the building. This
shall not be limited to ordinary maintenance, all repairs of above outlined
items are the responsibility of the tenant. Landlord shall not be obligated to
make any repairs until reasonable written notice of the need of repair shall
have been given to the Landlord by Tenant and after such notice is so given,
Landlord shall have fifteen [153 business days to commence such repairs. Tenant
agrees to replace all glass broken or damaged due to negligence of Tenant during
the term of this Lease with glass of the same quality as that broken or damaged.
Inspection of the demised premises may be made at any time deemed necessary
by the Landlord; inspection to be performed by the Landlord or his designee with
the tenant or his designee to make a list of all repairs required of the Tenant
to maintain the space in as near as original condition as possible normal wear
and tear accepted. The Tenant shall have thirty [30] days to complete these
repairs to the reasonable satisfaction of the Landlord in a mutually agreed upon
workmanlike manner. If the required repairs are not completed in the above time,
and in a workmanlike manner, the Landlord has the right to contract with an
outside contractor to effect the required repairs at the sole expense of the
Tenant.
a) All welding or noxious/toxic fume generation, if any, is to be done in
City of Broomfield approved ventilated hoods or rooms.
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b) All spray painting to be done in City of Broomfield approved ventilated
hoods or rooms.
c) The building shall be returned to the Landlord in as like ORIGINAL
CONDITION, excepting normal wear and tear, REGARDLESS of use to which the
building is put during occupation by the tenant. The Landlord shall furnish a
completed checklist of the specific condition of the demised premises to the
Tenant at the beginning of the lease. At the end of the lease it shall be the
sole responsibility of the tenant to return the demised premises to the landlord
in the original condition, as noted above, excepting normal wear and tear.
8. ERECTION and REMOVAL of SIGNS: Since Tenant already has signs for 0000
Xxxxxxxxxx Xxxx no additional signs will be allowed on building.
9. FIXTURES and EQUIPMENT: It is specifically understood and agreed that
Tenant shall own any and all equipment and machinery, or any other property
installed by Tenant, at its own expense, in or on said Demised Premises during
the Term of this Lease, whether or not attached to the Building, and that said
equipment or machinery may be removed from the Demised Premises by Tenant
provided that all sums due hereunder to the landlord shall have been paid in
full, and provided further that repairs necessary as the result of the removal
of said machinery and equipment are made to return the Building to substantially
the same condition it was in prior to the installation of said fixtures,
equipment and machinery. Tenant shall not exercise the rights and privileges
granted by this paragraph in such a manner as to damage or affect the structure
or structural integrity or qualities of the Building. At the end of the lease
period Tenant and landlord will go over building and agree as to what
improvements made by tenant are to be removed, provided the tenant shall be
solely responsible to return the premises to the Landlord in the same condition
as when entered upon.
10. ALTERATIONS TO THE PREMISES: Tenant shall have the right, at its sole
expense, to make changes or alterations to the Demised Premises; subject to the
Landlord's prior written consent and provided, however, that in all cases any
such changes or alterations shall be made subject to the following conditions,
which the Tenant agrees to observe and perform:
a. No Structural Changes: No change or alteration shall at any time be made
which shall impair
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the structural integrity or soundness or diminish the value of the Building
or the Demised Premises or disturb or interfere with the quiet enjoyment of any
other tenants or lessees of the Building.
b. Notice to Landlord: Tenant shall give the Landlord at least seven (7]
days prior written notice of any proposed alteration and shall fully cooperate
with Landlord in either (i) notifying proposed contractors of the landlord's
non-liability therefor and, or (ii) posting notice of non-liability in a
conspicuous place on the Demised Premises in accordance with Colorado law.
c. Consent of Landlord: No changes or alteration shall be made inwolving an
expenditure in excess of $500.00 without the prior written consent of the
Landlord.
d. Permits: No change or alteration shall be undertaken on the Demised
Premises until Tenant shall have procured and paid for all required municipal
and other governmental permits and authorizations of the various municipal
departments and governmental subdivisions having jurisdiction. All plans and
specifications relating to any changes or alterations shall be submitted to the
Landlord for it's approval.
e. Compliance With The Law: All work done in connection with any changes or
alterations shall be done in a good and workmanlike manner and in compliance
with all applicable building and zoning laws, and with other laws, ordinances,
orders, rules, regulations, and requirements of all federal, state, and
municipal governments and the appropriate departments, boards and officers
thereof.
f. Insurance: At all times when any change or alterations are in progress,
there shall be maintained at tenants sole expense, adequate workers Compensation
Insurance in accordance with the law or laws now or hereafter enacted governing
all persons employed in connection with the contemplated change or alteration
and general liability insurance for the mutual benefit of Landlord and Tenant,
expressly covering the additional hazards due to the change or alterations in
amounts reasonably prudent by industry standards for similar construction
projects in the vicinity.
g. Security Against Liens: Prior to the construction of any improvements,
the repair or restoration of any improvements, or any work to be done upon the
Demised
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Premises, Tenant shall furnish to the Landlord a bond of insurance protecting
Landlord against mechanics' and materialmen's liens in an amount equal to the
work which is to be performed at the Demised Premises, together with a
performance and completion bond in an amount equal to the proposed cost of any
improvements and labor. Landlord retains the right at any time and from time to
time to enter upon the Demised Premises in order to inspect the progress of any
alterations being made thereto by Tenant and to post any signs or notices
disclaiming the Landlord's responsibility or liability for the payment of any
mechanics' or materialmen's fees, or the furnishing of any labor or services to
the Demised Premises. Tenant shall not permit any party to file any lien or
claim against Landlord or its interest in the Demieed Premises on account of any
such improvements or alteration for work done or supplies furnished to the
Demised Premises at the insistence of the Tenant. In the event a lien or claim
is filed against the Demised Premises, Tenant shall immediately cure and pay the
amount of such lien or claim (including any costs) or in good faith diligently
pursue the defense of any such lien or claim provided that Tenant shall first
post with the Landlord adequate security (in the landlord's sole judgment)
covering 125 percent of the amount of such lien or claim or, in the alternative,
post a bond with the appropriate court in compliance with the Colorado law then
in existence to cause the removal of the lien from such property.
h. Failure on the part of the tenant to comply with any or all of the above
mentioned conditions shall be deemed to be a material breech of this lease.
i. A penalty of $500 will be assessed 7 days after notification if not
cured for every violation of the above section 10 or any other infraction of
this lease by the Tenant that the Landlord deems minor enough to not cancel the
lease over.
11. RIGHT of ENTRY of LANDLORD: The Tenant, at any time during the Term,
shall permit inspection of the Demised Premises during reasonable business hours
and upon reasonable notice by Landlord or by the Landlord's agents or
representatives of the purpose of ascertaining the condition of the Demised
Premises and in order that Landlord may make such repairs as may be required to
be made by the Landlord under the terms of this Lease. Ninety (90) days prior to
the expiration of this Lease, Landlord may post suitable notice on the Demised
Premises that the same are "For Rent" and may show the Demised Premises to
prospective tenants at reasonable times and upon reasonable notice to Tenant.
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Landlord shall not, however, thereby unnecessarily interfere with the use
of the Demised Premises by the Tenant.
12. PAYMENT of UTILITIES: Tenant shall pay all charges for heat, gas,
electricity, snow removal, and other public utilities used on the Demised
Premises. Water and sewer used in processing manufacturing will be charged to
Tenant. Landlord is to pay domestic water and sewer usage.
13. PAYMENT of TAXES and OTHER ASSESSMENTS: Landlord shall pay, when they
are due, the general real estate property taxes on the Demised Premises except
that Tenant shall be responsible for increases over the Base Tax Rate as set
forth in Paragraph 3. Tenant shall pay when due all general ad valorem personal
property taxes upon Tenant's personal property or fixtures located upon the
Demised Premises. Tenant shall further pay all other taxes, assessments, license
fees or other charges during the Term of this Lease which may be imposed by any
governmental authority by reason of Tenant's business within the Demised
Premises during the Term. In the event that Tenant shall fail to pay any of said
taxes when due, Landlord may pay the same pursuant to the provisions of
Paragraph 14 hereinafter set forth. Tenant shall have the right, at Tenant's
expense, in its or landlord's name, to contest the validity of any tax
assessment which Tenant is required to bear, pay and discharge hereunder by
appropriate legal proceedings instituted at least ten (10) days before the tax
or assessment complained of shall become delinquent, if and provided Tenant,
before instituting any such contest, gives Landlord written notice of its
intention so to do, and if and provided further Tenant shall prosecute any such
contest, tenant shall at all times effectually stay or prevent any official or
judicial sale thereof, under execution or otherwise, and shall pay any final
judgment enforcing the tax or assessment so contested and thereafter promptly
procure and record satisfaction thereof.
14. ASSIGNMENT and SUBLETTING: Neither this Lease nor any interest herein
may be assigned by the Tenant voluntarily or involuntarily, or by operation of
law, and neither all nor any part of the Demised Premises shall be sublet by the
Tenant without the written consent of the Landlord. If Tenant is a corporation,
the merger, consolidation, sale of substantially all of the assets, and sale of
all or substantially all of the stock of Tenant shall constitute an assignment
of this Lease foOthe purposes of this paragraph. If the Tenant is a partnership,
sale or other transfer of 50 percent or more of partnership assets shall
constitute an assignment of this lease for
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purposes of this paragraph. Any consent to assignment or subletting given by
Landlord shall not constitute a waiver of the necessity for such consent to any
subsequent assignment or subletting. If the Demised Premises is assigned or
sublet by the Tenant, Tenant shall remain fully liable for this Lease and shall
not be released from performing the terms, covenants and conditions set forth
herein.
15. NON-MONETARY DEFAULT: If Tenant shall default in the fulfillment of any
of the covenants and conditions hereof, except default in payment of Rent or
other monetary amounts due to Landlord hereunder, Landlord may, at its option,
after five (5) days prior written notice to Tenant, make performance for Tenant
and for that purpose advance such amounts as may be necessary to preserve or
protect the Demised Premises. Any amounts so advanced or any expense incurred or
sum of money paid by Landlord by reason of the failure of Tenant to comply with
any covenant, agreement, obligation or provision of this Lease or in defending
any action to which Landlord may be subject by reason of any such failure or for
any reason, shall be deemed to be additional rent for the Demised Premises and
shall be due and payable to Landlord on demand. The receipt and acceptance by
Landlord of any installment of Rent or of any additional rent hereunder shall
not be a waiver of any other rent then due to Landlord. If Tenant shall default
in fulfillment of any of the covenants or conditions of this Lease (other that
the covenants for the payment of Rent additional rent or other amounts) and any
such default shall continue for a period of five (5) days after written notice
provided to Tenant by Landlord, then Landlord may, at its option, terminate this
Lease by giving Tenant notice of such termination and, thereupon, this Lease
shall expire as fully and completely as if that day were the day definitely
fixed for the expiration of the Term and the Tenant shall then quit and
surrender the Demised Premises.
16. INSOLVENCY of LEASE:
a) Default in Rent: If tenant shall default in the payment of the Rent
or additional rent as set forth in Paragraph 3 of this Lease or any provision
thereof, or in making any other payment herein provided for, and any such
default shall continue for 5 days, or if the Demised Premises or any part
thereof shall be abandoned or vacated (except as a result of a casualty
contemplated inParagraph 17), or if Tenant shall be dispossessed therefrom by or
under any authority other than the Landlord the Tenant shall quit and surrender
the Demised premises and a late charge of additional 10% of the payment will be
paid by the tenant.
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If the payment is late beyond 30 days from the due date (1st of the month) the
total balance, including late charges will be charged a 1.5% a month until the
balance is paid in full.
b) If the Tenant shall file a voluntary petition in bankruptcy, or if
the Tenant shall file any petition or institute any bankruptcy act (or any
amendment thereto hereafter made) seeking to affect its reorganization or a
composition with its creditors, or if (in any bankruptcy proceedings) a receiver
or trustee shall be appointed for Tenant or for the Demised Premises and not be
discharged within thirty (30) days of such date of appointment, or if any
proceeding shall be commenced for the reorganization of Tenant and be not
dismissed within thirty (30) days from such date of such commencement, or if the
lease hold estate created hereby shall be taken on execution or by any process
of law, or if Tenant shall admit in writing its inability to pay its obligations
generally as they become due, then Landlord may, at its option, terminate this
Lease. Landlord or Landlord's agents and servants may immediately, or at any
time thereafter, reenter the Demised Premises and remove all persons and
property therefrom, pursuant to the Colorado Forcible Entry and Detainer Statue,
without being, liable to indictment, prosecution or damage, therefor, Landlord
may, in addition to any other remedy provided by law or permitted herein, at its
option re-lease said Demised Premised on behalf of the Tenant, applying any
moneys collected first to the payment of expenses of resuming or obtaining
possession, and second to the payment of costs of placing the Demised Premises
in rentable condition, and third to the payment of Rent or additional rent due
hereunder, and any other charges due the Landlord as set forth in this lease.
Any surplus remaining thereafter shall be paid to Tenant. Tenant shall remain
liable for any deficiency in Rent or additional rent which shall be paid to
Tenant upon demand therefor to Landlord. In the event that the Tenant breaches
this lease by default for nonpayment or failure to comply with any other terms
or conditions of this lease, then Landlord shall be entitled to recover costs
including costs and reasonable attorney's fees, damages, injunctive or
declaratory relief in addition to all other remedies otherwise provided by this
agreement or Colorado law. In the event of termination of this Lease, Tenant
shall be liable to the Landlord for the balance of the Rent due hereunder for
the remaining term; however, Landlord shall make reasonable efforts to re-lease
the Demised Premises and to mitigate its damages.
17. FIRE or OTHER CASUALTY: Tf the Demised Premises or any part thereof
shall be damaged or destroyed by fire or other casualty, Landlord shall promptly
repair such damage
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and restore the Demised Premises without expense to Tenant, subject to delays
due to adjustment of insurance claims, strikes, and other causes beyond
Landlord's control. If such damage or destruction shall render the Demised
Premises untenantable in whole or in part, the Rent shall be abated wholly or
proportionately, as the case may be, until the damage shall be repaired and the
Demised Premises restored and made tenantable. If the damage, destruction or
taking shall be so extensive as to require the substantial rebuilding (i.e.,
cannot be made tenantable within 75 days from the damage or casualty) of the
Demised Premises, Landlord or Tenant may elect to terminate this Lease by
written notice given to the other party within ninety (90) days after the
occurrence of such damage or destruction.
18. SURRENDER of PREMISES: Tenant agrees to surrender the Demised Premises
at the expiration or sooner termination of this Lease, or any extension thereof,
in the same condition as at the commencement of this Lease, or as altered,
pursuant to the provisions of this Lease. Nothing contained in this paragraph
shall be deemed to alter or abridge Tenant's obligations under Paragraph 7
hereof.
19. HOLDOVER: Should Tenant hold over the Demised Premises or any part
thereof after the expiration of the Term of this Lease, unless otherwise agreed
in writing such holding over shall constitute a tenancy from month to month
only, and Tenant shall pay as monthly rental the then reasonable value of the
use and occupation of the Demised Premises which shall not be less, however,
than the Rent to be paid for the last month under this Lease plus 50%.
20. QUIET ENJOYMENT: If and so long as the Tenant pays the Rent reserved by
this Lease and performs and observes all covenants and provisions hereof, Tenant
shall quietly enjoy the Demised Premises, subject however, to the terms of this
Lease, and Landlord will warrant and defend the Tenant in the quite enjoyment
and peaceful possession of the Demised Premises throughout the Term of this
Lease.
21. WAIVER of COVENANTS: It is agreed that the waiving of any of the
covenants of this Lease Agreement by either party shall be limited to each
particular instance and shall not be deemed to waive any, other or fwther breach
of such covenant or any other provision herein contained in the lease.
22. RIGHTS of SUCCESSORS and ASSIGNS: The covenants and agreements
contained in this Lease shall apply to, inure to the benefit of, and be binding
upon the parties hereto
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and upon their respective successors in interest, legal representatives and
permitted assigns, except as expressly otherwise herein before provided.
23. TIME: Time is of the essence of this Lease, and every term, covenant
and condition herein contained.
24. RECORDING: Either party to this Lease may record this Lease or a
summary thereof, in the records of the office of The Clerk and Recorder of the
County of Boulder, State of Colorado with the prior written consent of the other
party. It is the Tenants responsibility to obtain and execute a release of any
recorded documents as a prerequisite to the return by Landlord of Tenants
security and/or damage deposit/s.
25. NOTICES: All notices required to be given or desired to be given
hereunder shall be in writing and shall be deemed duly served for all purposes
by being mailed by registered or certified mail, return receipt requested,
postage prepaid, and addressed as follows:
Landlord:
Xxxxxx Xxx, Trustee
Xxxxxx Xxx Family Trust
0000 Xxxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Tenant:
Sytron, Inc.
0000 Xxxxxxxxxx Xxxx
Xxxxxxxxxx, Xx.
00000
26. CONDITION of the PREMISES: Tenant accepts the Demised Premises in its
condition as of the date of occupancy in accordance with the terms hereof.
Tenant agrees that if during said Term the Tenant shall change the usual method
of conducting Tenants business on the Demised Premises, or should Tenant install
thereon or th4rein any new facilities, Tenant shall at the cost and expense of
the Tenant, make any and all alterations or improvements in or to the Demised
Premises which may be required by reason of any federal or state law or by any
municipal ordinance or regulation applicable thereto.
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27. EMINENT DOMAIN: In the event the Demised Premises or any part thereof,
shall be taken under the power of eminent domain by any public or quasi-public
authority, the rights and duties of the parties hereto with respect to this
Lease in and to the aggregate award for such taking shall be as follows:
a. If the entire Demised Premises is taken, this Lease shall terminate
and expire as of the date of such taking, and Tenant thereupon shall be released
from any liability thereafter accruing hereunder, and all awards shall be sought
and received by the tenant and landlord separately according to their respective
interests.
b. If only parts of the Demised Premises is taken, and, if in the
reasonable judgment of the Tenant, the part remaining is of such shape or size
as to prevent its being reasonably used by Tenant for the purposes for which the
Demised Premises were being used at the time of such taking, this Lease shall
terminate with the same effect as the total taking, and all awards shall be
sought and received by the tenant and landlord separately according to their
respective interests.
c. If only part of the Demised Premises is taken, and, if in the
reasonable judgment of the Tenant and Landlord, the part remaining is of such
size and shape as to permit its being reasonably used by Tenant for the purpose
for which the Demised Premises were being used at the time of such taking, this
Lease shall continue in full force and effect as to the said remaining portion,
but the rent shall be reduced equitably in proportion to the amount of the
Demised Premised lost by the taking and all awards shall be sought and received
by the tenant and landlord separately according to their respective interests.
28. SUBORDINATION of LEASE to MORTGAGE: This Lease is made with the
understanding that the Landlord may, from time to time, desire to encumber
Landlord's interest in the Property of which the Demised Premises is a part with
a mortgage, deed of trust, or similar security interest ("the Mortgage"), and
may desire, in connection with the execution of such Mortgage to cause this
Lease to be made subordinate in lien, dignity, priority and claim to the lien or
liens of the Mortgage. Tenant therefore, covenants and agrees with Landlord that
Tenant will, from time to time, at the request of Landlord execute an instrument
or instruments in such form as may be reasonably required by Landlord or by the
mortgagee of any such Mortgage, which instrument or instruments will be executed
in such fashion as to entitle
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it to recording, and will subordinate this Lease and the rights of the Tenant
hereunder to the lien, priority and dignity of such Mortgage.
29. ESTOPPEL CERTIFICATE: Tenant shall, after twenty(20) days prior written
notice by Landlord execute, acknowledge, and deliver to Landlord a written
statement certifying that this Lease continues unmodified and in full force and
effect (or if there have been modifications, that this Lease continues in full
force and effect as modified and stating the modifications); the dates to which
the Rent and the additional rent have been paid and stating whether Landlord
and/or Tenant is in default in performing any covenant of this Lease, and should
Landlord or Tenant be in default, specifying each and every such default. It
being intended that any such statement delivered pursuant to this paragraph may
be relied on by Landlord or any prospective purchaser or mortgagee of the fee
interest or any assignee of any mortgagee. Tenant's failure to execute and
deliver to Landlord the above described certification within the time specified
shall be deemed the equivalent of the delivery of the certification by Tenant to
Landlord to the effect that the Lease is in effect and continues unmodified.
30. INTEGRATION: This agreement contains the entire agreement of the
parties. This agreement supersedes any prior written or oral agreements or
representations of the parties and all such prior written agreements or
representations are merged into this agreement. This agreement shall be
controlled by Colorado law.
31. STORAGE of HAZARDOUS MATERIAL: Tenant shall indemnify and hold Landlord
harmless from and against all claims, liabilities, damages or losses that
Landlord may incur, directly, or indirectly, arising from Tenant's (or its
agents, employees or business associates) transportation, storage, use or other
handling of any harmful or hazardous or potentially harmful or hazardous
materials on the Demised Premises or in the surrounding area. Such indemnity
shall include without limitation, liability of any nature to Landlord whether
arising from damage to the Demised Premises the Building othe4 tenants or
persons, or property located in the Building or in the surrounding area.
Further, upon demand tenant shall give Landlord a complete list of all
hazardous material stored or used on the Demised Premises within 10 working days
of written demand.
14
/s/ RL RH
LEASE of 2770, 2780 to SYTRON
32. MOVING TENANT OPTION: In the event that the lessor has the opportunity
to rent the premises to a long term tenant, he has the option of moving this
tenant to an equivalent space with a dock high door and a equal number of doors.
33. DAMAGE DEPOSIT: Tenant shall pay a damage deposit, as outlined
below, in the amount equal to one month's rent.
0000 Xxxxxxxxxx Xxxx $7,750 has been paid
0000 Xxxxxxxxxx Xxxx $1,000 on 6/30/98
$1,000 on 811/98
$1,000 on 9/1/98
$2,000 on 10/1/98
$2,000 on 11/1/98
$1,100 on 12/1/98
Total $8,100
This damage deposit will be refunded if the premises is returned to the Landlord
in good condition according to the terms of this lease. The damage deposit will
not be used as the last month's rent.
34. OPTION of TENANT to RENEW LEASE: Tenant is hereby given one 5 year
option to renew the Term of this Lease upon expiration of the initial Term
hereof (said renewal period being hereinafter sometimes referred to as the
"Renewal Period") provided that this Lease shall be in full force and effect,
that tenant has been on time and current with rent payments for eighteen months
prior to the renewing of the lease, and that no other violations of lease have
occurred for eighteen months prior to the renewing of the lease. If Tenant
desires to exercise the option herein granted to renew the Lease for the Renewal
Period, Tenant shall give Landlord written notice of its intention to do so on
or before ninety (90) days prior to the expiration of this Lease. The Renewal
Period shall be on the same terms, covenants and conditions as in this Lease
provided, except that: (a) there shall be no provision for the renewal of the
Term of this Lease beyond the renewal period set forth herein, and the monthly
rental shall be mutually agreed to by the parties hereto on or before 180 days
prior to the then existing lease expiration date.
35. EXPIRATION OF OFFER: This offer to lease 2770, 0000 Xxxxxxxxxx Xxxx is
expressly subject to and conditioned upon tenant being current and in full
compliance with previous lease dated August 8th 1996 and said offer expires on
and is void on June 30th 1998 at 12:00 Noon. Time is of the essence.
15
/s/ RL RH
LEASE of 2770, 2780 to SYTRON
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and
year first above written.
LANDLORD: TENANT:
Xxxxxx Xxx Family Trust Sytron Inc.
By By
------------------------- ----------------------------
Trustee an Authorized agent of
Sytron Inc.
16
/s/ RH
10/29/98
ADDENDUM #1 TO THE LEASE BETWEEN XXXXXX XXX FAMILY TRUST
AND SYTRON INC. SIGNED JUNE 13, 1998
STATEMENT: The purpose of this addendum is to change the amount of space
rented by Sytron Inc. (Tenant) from 35,040sf back to the original 17,040sf. This
Addendum was requested by Sytron Inc. (x 5.40 divided by 12 = 7668/mo till
2-1-99.
This addendum to the current lease dated June 13th 1996 between Sytron (the
Tenant) and Xxxxxx Xxx Family Trust (the Landlord) for the space whose address
is 2770 and 0000 Xxxxxxxxxx Xxxx. This addendum takes precedence over any
conflicting language in the lease.
1. Sytron will pay the commission incurred with the COLORADO GROUP when the
Landlord and Tenant signed the current lease on 0000 Xxxxxxxxxx Xxxx space. The
Landlord is in the process of paying this to THE COLORADO GROUP & have paid them
$5000.00 so far. This $5000.00 will be reimbursed to the landlord. This
$5,000.00 will not come out of the damage deposit. The Landlord also requires a
letter from THE COLORADO GROUP stating that all obligations to them have been
satisfied. This will be done by 12/1/98.
2. The Landlord lowered the rent to the Tenant to $4050/mo for the first three
months in consideration of Tenants signing a five year lease. This $12,150 will
be paid to the landlord at the rate of $1,012.50 a month for 12 months starting
on 2/1/99. This money will not come out of the damage deposit.
3. In 0000 Xxxxxxxxxx Xxxx, Xxxxxx is to frame in the hole between the two
offices.
Sytron is to frame, sheetrock(with 5/8x sheetrock), and tape the doorway
above the offices between 0000 Xxxxxxxxxx Xxxx and 0000 Xxxxxxxxxx Xxxx. The man
door between 0000 Xxxxxxxxxx Xxxx & 0000 Xxxxxxxxxx Xxxx on the ground floor
needs a 1 hour fire rated door that is lockable from both sides.
The double doors between the two spaces Sytron will either repair to
original condition or drywall up. This decision will be the Landlords.
Sytron is to install a high quality 36" steel door frame, & 36" steel door
with panic bar hardware in the
/s/ RL RL
hole cut into the back exterior wall of 0000 Xxxxxxxxxx Xxxx.
All of section 3 will be done by 12/1/98 except the double dotra which will
be done by 12/31/98. If section 3 is not completed in a quality manor by 12/1/98
Landlord will have it done and take the cost out of the damage deposit of 2780.
4. Sytron's lease of 0000 Xxxxxxxxxx Xxxx will expire on 1/31/99, but Sytron
will have the space vacated and ready to rent by 12/31/98. The Landlord has the
option to rent the space at any time after 12/31/98. Re-renting and showings
will begin immediately. The damage deposit will not be used for any rent.
5. 0000 Xxxxxxxxxx Xxxx will be vacated on 12/31/98 in as clean & as rentable
condition as it was when Sytron moved in, otherwise the landlord will fix it up
and take the cost out of the damage deposit.
6. If returned in good condition as stated in item 5, Landlord will credit any
damage deposit Sytron paid in. The damage deposit payments for 0000 Xxxxxxxxxx
Xxxx will continue to be paid until December 31, 1998.
7. Section 10 of the lease will read as follows:
10. ALTERATIONS TO THE PREMISES: Tenant shall have the right, at its
sole expense, to make changes or alterations to the Demised Premises;
subject to the Landlord's prior xxxxxx consent and provided, however, that
in all cases any such changes or alterations shall be made subject to the
following conditions, which the Tenant agrees to observe and perform:
a. No Structural Changes: No change or alteration shall at any time be
made which shall impair the structural integrity or soundness or diminish
the value of the Building or the Demised Premises or disturb or interfere
with the quiet enjoyment of any other tenants or lessees of the Building.
b. Notice to Landlord: Tenant shall give the Landlord at least seven
fl days prior written notice of any proposed alteration end shall fully
cooperate with Landlord in either (i) notifying proposed contractors of the
landlord's non-liability therefor and, or (ii) posting
/s/ RL RL
notice of non-liability in a conspicuous place on the Demised Premises in
accordance with Colorado law.
c. Consent of Landlord: No changes or alteration shall be made
involving an expenditure in excess of $500.00 without the prior written
consent of the Landlord.
d. Permits: No change or alteration 9hall be undertaken on the Demised
Premises until Tenant shall have procured and paid for all required
municipal and other governmental permits and authorizations of the various
municipal departments end governmental subdivisions having jurisdiction.
All plans and specifications relating to any changes or alterations shall
be submitted to the Landlord for its approval.
e. Complianbe With The Law: All work done in connection with any
changes or alterations shall be done in a good and workmanlike manner and
in compliance with all applicable building and zoning laws, and with other
laws, ordinances, orders, wigs, regulations, end requirements of all
federal, state, and municipal governments and the appropriate departments,
boards and officers thereof.
f. Insurance: At all times when any change or alterations are in
progress, there shall be maintained at tenants sole expense, adequate
Workers Compensation Insurance in accordance with the law or laws now or
hereafter enacted governing all persons employed in connection with the
contemplated change or alteration and general liability insurance for the
mutual benefit of Landlord and Tenant, expressly covering the additional
hazards due to the change or alterations in amounts reasonably prudent by
industry standards for similar construction projects in the vicinity.
g. Security Against Liens: Prior to the construction of any
improvements, the repair or restoration of any improvements, or any work to
be done upon the Demised Premises, Tenant shall furnish to the Landlord a
bond of insurance protecting Landlord against mechanics' and materialmen's
liens in an amount equal to the work which is to be performed at the
Demised Premises, together with a performance and completion bond in an
amount equal to the proposed cost of any improvements and labor. Landlord
retains the right at any time and from time to time to enter upon the
Demised Premises in order to inspect the progress of any alterations being
made thereto by tenant and to post any signs or notices disclsiming the
Landlord's responsibility or liability for the payment of any mechanics' or
materialmen's fees, or the furnishing of any labor or
/s/ RL RL
services to the Demised Premises. Tenant shall not permit any party to file
any lien or claim against Landlord or its interest in the Demised Premises
on account of any such improvements or alteratIon for work done or supplies
furnished to the Demised Premises at the Insistence of the Tenant. In the
event a lien or claim is filed against the Demised Premises, Tenant shall
immediately cure and pay the amount of such lien or claim (including any
costs) or in good faith diligently pursue the defense of any such lien or
claim provided that Tenant shall first post with the Landlord adequate
security (in the landlord's sole judgment) covering 125 percent of the
amount of such lien or claim or, in the alternative, post a bond with the
appropriate court in compliance with the Colorado law then in existence to
cause the removal of the lien from such property.
h. Failure on the part of the tenant to comply with any or all of the
above mentioned conditions shall be deemed to be a material breech of this
lease.
i. A penalty of $500 will be assessed for every violation of the above
section 10 or any other infraction of this lease by the Tenant that the
Landlord deems minor enough to not cancel the lease over.
8. The price per square foot will change to $5.70/sf/yr on 2/1/99. Therefore the
monthly rent on 17,040 SF (2770 Industrial Lane) will be $8,094.00.
9. Tenant and Landlord mutually agree that failure to comply with any of the
terms or conditions of this addendum will be deemed to be a breach of the entire
lease on the part of the tenant.
Signing this document will signify Sytron's acceptance of these additions and
changes to the lease.
LANDLORD: TENANT:
Xxxxxx Xxx Family Trust Sytron Inc.
By /s/ /s/
---------------------------- --------------------------------
Trustee an Authorized Agent of
Sytron Inc.
