EXHIBIT 10.1
NET LEASE
1. NAMES
This lease is made by Blythe Metals Sources, Inc., an Alabama corporation
(Landlord), and Oretech, Inc., a Nevada corporation (Tenant).
2. PREMISES BEING LEASED
Landlord is leasing to Tenant, and Tenant is leasing from Landlord, the
following premises:
000 Xxxxx Xxxxx Xx.
Which includes a 5000 Sq. Ft. Building situated on 18 acres. Formerly
known as Xxxxxx Machine Works.
Xxxxxx Xxxx, Xxxxxxx 00000
3. TERM OF LEASE
This lease begins on August 1, 2003 and ends on August 31, 2004.
4. RENT
Tenant will pay rent in advance on the first day of each month.
Tenant's first rent payment will be on August 1, 2003. Tenant will pay rent of
$3,500 per month for the entire term of the lease. Rent will remain the same for
the entire term of the lease.
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5. OPTION TO EXTEND LEASE
Landlord grants Tenant the option to extend this lease for an additional year on
the same terms except as follows:
In the event the Tenant exercises its option to extend the lease for
this one year period, the monthly rent will increase to $3700.00.
Tenant may exercise this option only if Tenant is in substantial compliance with
the terms of this lease. To exercise this option, Tenant must give Landlord
written notice on or before June 1, 2004.
6. IMPROVEMENTS BY LANDLORD
Tenant accepts the premises in "as is" condition. Landlord need not provide any
repairs or improvements before the lease term begins.
7. IMPROVEMENTS BY TENANT
Tenant may make alterations and improvements to the premises after obtaining the
Landlord's written consent, which will not be unreasonably withheld. At any time
before this lease ends, Tenant may remove any of Tenant's alterations and
improvements, as long as Tenant repairs any damage caused by attaching the items
to or removing them from the premises.
8. TENANT'S USE OF PREMISES
Tenant will use the premises for the following business purposes:
Processing of ore, and Research & Development
Tenant will also use the premises for purposes reasonably related to the main
use.
9. LANDLORD'S REPRESENTATIONS
Landlord represents that:
A. At the beginning of the lease term, the premises will be properly zoned
for Tenant's stated use and will be in compliance with all applicable
laws and regulations.
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B. The premises have not been used for the storage or disposal of any
toxic or hazardous substance and Landlord has received no notice from
any governmental authority concerning removal of any toxic or hazardous
substance from the property.
10. UTILITIES AND SERVICES
Tenant will pay for all utilities and services, including water, electricity and
gas. This includes the electricity or gas needed for heating and air
conditioning.
11. MAINTENANCE AND REPAIRS
A. Tenant will maintain and make all necessary repairs to: (1) the roof,
structural components, exterior walls and interior walls of the
premises, and (2) the plumbing, electrical, heating, ventilating and
air-conditioning systems.
B. Tenant will clean and maintain (including snow removal) the parking
areas, yards and exterior of the premises so that the premises will be
kept in a safe and attractive condition.
11. INSURANCE
A. Tenant will carry fire and extended coverage insurance on the building
in the amount of at least $500,000; this insurance will include
Landlord as an additional insured party.
B. Tenant will carry public liability insurance, which will include
Landlord as an additional insured. The public liability coverage for
personal injury will be in at least the following amounts:
o $100,000 per occurrence, and
o $1,000,000 in any one year.
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C. Landlord and Tenant release each other from any liability to the other
for any property loss, property damage or personal injury to the extent
covered by insurance carried by the party suffering the loss, damage or
injury.
D. Tenant will give Landlord a certificate of insurance covering all
insurance policies that this lease requires Tenant to obtain.
12. TAXES
A. Landlord will pay all real property taxes levied but not assessed
against the premises.
B. Tenant will pay all personal property taxes levied and assessed against
Tenant's personal property.
13. SUBLETTING AND ASSIGNMENT
Tenant will not assign this lease or sublet any part of the premises without the
written consent of Landlord. Landlord will not unreasonably withhold such
consent.
14. DAMAGE TO PREMISES
A. If the premises are damaged through fire or other cause not the fault
of Tenant, Tenant will owe no rent for any period during which Tenant
is substantially deprived of the use of the premises.
B. If Tenant is substantially deprived of the use of the premises for more
than 90 days because of such damage, Tenant may terminate this lease by
delivering written notice of termination to Landlord.
15. NOTICE OF DEFAULT
Before starting a legal action to recover possession of the premises based on
Tenant's default, Landlord will notify Tenant in writing of the default.
Landlord will take legal action only if Tenant does not correct the default
within ten days after written notice is given or mailed to Tenant.
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16. QUIET ENJOYMENT
As long as Tenant is not in default under the terms of this lease, Tenant will
have the right to occupy the premises peacefully and without interference.
17. EMINENT DOMAIN
This lease will become void if any part of the leased premises or the building
in which the leased premises are located are taken by eminent domain. Tenant has
the right to receive and keep any amount of money that the agency taking the
premises by eminent domain pays for the value of Tenant's lease, Tenant's loss
of business and for moving and relocation expenses.
18. HOLDING OVER
If Tenant remains in possession after this lease ends, the continuing tenancy
will be from month to month.
19. DISPUTES
If a dispute arises, either party may take the matter to court.
20. ADDITIONAL AGREEMENTS
There are no additional agreements.
21. ENTIRE AGREEMENT
This is the entire agreement between the parties. It replaces and supersedes any
and all oral agreements between the parties, as well as any prior writings.
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22. SUCCESSORS AND ASSIGNEES
This lease binds and benefits the heirs, successors and assignees of the
parties.
23. NOTICES
All notices must be in writing. A notice may be delivered to a party at the
address that follows a party's signature or to a new address that a party
designates in writing. A notice may be delivered:
o in person
o by certified mail, or
o by overnight courier.
24. GOVERNING LAW
This lease will be governed by and construed in accordance with the laws of the
state of Alabama.
25. COUNTERPARTS
The parties may sign several identical counterparts of this lease. Any fully
signed counterpart shall be treated as an original.
26. MODIFICATION
This agreement may be modified only by a writing signed by the party against
whom such modification is sought to be enforced.
27. WAIVER
If one party waives any term or provision of this lease at any time, that waiver
will be effective only for the specific instance and specific purpose for which
the waiver was given. If either party fails to exercise or delays exercising any
of its rights or remedies under this lease, that party retains the right to
enforce that term or provision at a later time.
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28. SEVERABILITY
If any court determines that any provision of this lease is invalid or
unenforceable, any invalidity or unenforceability will affect only that
provision and will not make any other provision of this lease invalid or
unenforceable and shall be modified, amended or limited only to the extent
necessary to render it valid and enforceable.
29. OPTION TO PURCHASE
Blythe Metals Sources, Inc. agrees to extend an option to purchase the
aforementioned property as described in Paragraph 2 above. Oretech, Inc. will
have up to twelve months from August 1st, 2003 to exercise this option at a
price to be determined between Oretech, Inc. and Blythe Metals Sources, Inc.
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LANDLORD
Blythe Metals Sources, Inc.,
an Alabama corporation
000 Xxxxx Xxxxx Xxxx
Xxxxxx Xxxx, Xxxxxxx 00000
Dated: July 18th 2003
By: /s/ Xxxxxx X. Xxxxxx
----------------------
Xxxxxx X. Xxxxxx
President
TENANT
Oretech, Inc.,
a Nevada corporation
000 Xxxxxxx Xxx.
Xxxxxxxx, Xxxxxxx 00000
Dated: July 18th, 2003
/s/ Xxxxxxx X. Xxxxxxxxx
By: ------------------------
Xxxxxxx X. Xxxxxxxxx
President
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