EXHIBIT 10.6
LEASE
THIS AGREEMENT OF LEASE made and entered into on this 9th
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day of October , l996 by and between THE MINING EXCHANGE PARTNERS, LTD.,
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a Partnership organized under the laws of the State of Colorado, hereinafter
referred to as Landlord and
Communications Systems International (CSI)
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hereinafter referred to as Tenant,
WITNESSETH:
For and in consideration of the covenants and agreements herein contained,
Landlord does hereby lease to Tenant and Tenant does hereby lease from Landlord
the premises known and described as Suites 001/200/201 (5,128 Rentable Sq. Ft.)
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in the Mining Exchange Building at 0 Xxxxx Xxxxxx Xxx.
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---------------------------- in the City of Colorado Springs for such term
and such rental and subject to the convents and agreements set forth
hereinafter.
1. TERM:
The term of this lease shall be for a period of Two Years Four Months (2 1/3)
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year(s) commencing on September 1 , l996 and
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terminating on December 31 , l998.
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2. RENTAL:
Tenant agrees to pay to Landlord as rent for said premises for the full term
aforesaid the total sum of One Hundred Twelve Thousand Four Hundred and
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40/100 - - - - - - - - - - - - - - - - - - ($ 112,400.40) Dollars, payable as
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follows:
9/O1/96 - 11/30/96 $2,035.00 per month $6,105.00
12/01/96 - 12/31/97 4,047.00 per month 52,611.00
01/01/98 - 12/31/98 4,473.70 per month 53,684.40
which said sum shall be due and payable in advance on the First day of
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each and every calendar month during said term at the office of Landlord, or
such other place in the City of Colorado Springs, Colorado as the Landlord from
time to time in writing may designate.
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3. SERVICES:
Landlord agrees, during the period of this lease:
a. To heat the demised premises whenever necessary during reasonable
business hours or customary heating season.
b. To provide the use of the passenger elevators (if the building is so
equipped) at all time during reasonable business hours, Sundays and
Holidays excepted.
c. To provide janitor service for the demised premises (trash everyday,
vacuuming three days a week).
d. To cause to be supplied, during ordinary business hours, a reasonable
amount of electric current for lighting said premises and public halls,
during the time and in the manner customary in said building. Tenant agrees
to use only such electric current as shall be supplied by Landlord for
lighting, air conditioning, and business machines and shall pay on demand
for use of electric current after ordinary business hours (8:00 AM to 6:00
PM) for any other purpose, or for any waste of electric current.
Tenant agrees that Landlord shall not be held liable for failure to supply
such heating, elevator, janitor or lighting services, or any of them, when such
failure is not due to negligence on Landlord's part, it being understood that
Landlord reserves the right to temporarily discontinue such services, or any of
them, at such times as may be necessary by reason of accident, repairs,
alterations or improvements, or whenever, by reason of strikes, lockouts, riots,
acts of God, or any other happening, Landlord is unable to furnish such
services.
Tenant agrees that if any payment of rent as herein provided shall remain
unpaid for more than ten (10) days, after the same shall become due, Landlord
may, without notice to Tenant, discontinue furnishing lighting, heating and
janitor services, or any of them, until all areas of rent shall have the first
been paid and discharged, and that Landlord shall not be liable for damages and
that such action shall in no way operate to release Tenant from the obligations
hereunder.
4. CHARACTER OF OCCUPANCY
Tenant agrees:
a. That the demised premises shall be used and occupied only as General
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0ffices in a careful, safe and proper manner.
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b. That it will pay on demand for any damage to the premises
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caused by the misuse of same by it, or its agents or employees or invitees.
c. That it will not use or permit the demised premises to be used for any
purposes prohibited by the laws of the United States or the State of
Colorado, or the ordinances of the City of Colorado Springs.
d. That it will not use or keep any substance or material in or about the
demised premises which may vitiate or endanger the validity of the
insurance on said building or increase the hazard of the risk, or which may
prove of offensive or annoying to other Tenants of the building.
e. That it will not permit any nuisance in the demised premises.
5. ALTERATIONS:
a. Landlord shall have the right at any time to enter the demised premises
to examine and inspect the same, or to make such repairs, additions, or
alterations as it may deem necessary or proper for the safety, improvement
or preservation thereof, and shall at all times have the right, at its
election, to make such alterations or changes to other portions of said
building as it may from time to time deem necessary and desirable.
b. Tenant shall make no alterations in or additions to the demised premises
without first obtaining the written consent of Landlord, and all additions
or improvements made by Tenant (except only moveable office furniture)
shall be deemed a part of the real estate and the permanent structure
thereon and shall remain upon and be surrendered with said premises as a
part thereof at the end of the said term, by lapse of time, or otherwise,
or at the option of Landlord, shall be removed at Tenant's expense and the
premises restored to their original state.
6. SUBLETTING:
Tenant agrees that it will not sublet the demised premises, or any part
thereof, nor assign this lease, or any interest therein, without the written
consent of Landlord first had and obtained.
7. INSOLVENCY:
Any assignment for the benefit of creditors or by operation of law shall
not be effective to transfer any rights hereunder to the said assignee without
the written consent of Landlord first having been obtained.
It is further agreed between the parties hereto that if Tenant shall be
declared insolvent or bankrupt, or if any assignment of Tenant's property shall
be made for the
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benefit of creditors or otherwise, or if Tenant's leasehold interest herein
shall be levied upon under execution, or seized by virtue of any writ of any
court of law, or a Trustee in Bankruptcy or a Receiver be appointed for the
property of Tenant, whether under the operation of State or Federal statues,
then and in any such case, Landlord may, at its option, immediacy, with or
without notice (notice being expressly waived) terminate this lease and
immediately retake possession of said premises, using such force as may be
necessary without being guilty of any manner of trespass or forcible entry or
detainer, and without same working any forfeiture of the obligations of Tenant
hereunder.
8. DEFAULT:
a. The following events are referred to, collectively, as "events of
default" or, individually, as an "event of default":
(1) Tenant defaults in the due and punctual payment of rent, and such
default continues for five days after written notice from Landlord;
however, Tenant will not be entitled to more than one written notice
for monetary defaults during any 12-month period, and if after such
written notice any rent is not paid when due, an event of default will
be considered to have occurred without further notice;
(2) Tenant vacates or abandons the premises;
(3) This lease or the premises or any part of the premises are taken
upon execution or by other process of law directed against Tenant, or
are taken or subject to any attachment by any creditor of Tenant or
claimant against Tenant, and said attachment is not discharged or
disposed of within fifteen days after its levy;
(4) Tenant files a petition in bankruptcy or insolvency or for
reorganization or arrangement under the bankruptcy laws of the United
States or under any insolvency act of any state, or admits the
material allegations of any such petition by answer or other wise, or
is dissolved or makes an assignment for the benefit or creditors;
(5) Involuntary proceedings under any such bankruptcy law or
insolvency act or for the dissolution of Tenant are instituted against
Tenant, or a receiver or trustee is appointed for all or substantially
all of the property of Tenant, and such proceeding is not dismissed or
such receivership or trusteeship vacated within sixty days after such
institution or appointment;
(6) Tenant breaches any of the other agreements, terms, covenants, or
conditions that this lease requires Tenant to perform, and such breach
continues for a period of thirty days after written notice from
Landlord to Tenant or, if such breach cannot be cured reasonably
within such thirty day period, if Tenant fails to diligently
commence to cure such breach within
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thirty days after written notice from Landlord and to complete such
cure within a reasonable time thereafter.
b. If any one or more events of default set forth in Section "a." occurs
then Landlord has the right, at its election:
(1) To give Tenant one written notice of Landlord's intention to
terminate this lease on the earliest date permitted by law or on any
later date specified in such notice, in which case Tenant's right to
possession of the premises will cease and this lease will be
terminated, except as to Tenant's liability, as if the expiration of
the term fixed in such notice were the end of the term;
(2) Without further demand or notice, to reenter and take possession
of the premises or any part of the premises, repossess the same, expel
Tenant and those claiming through or under Tenant, and remove the
effects of both or either, using such force for such purposes as may
be necessary, without being liable for prosecution, without being
deemed guilty of any manner or trespass, and without prejudice to any
remedies for arrears of monthly rent or other amounts payable under
this lease or as a result of any preceding breach of covenants or
conditions; or
(3) Without further demand or notice to cure any event of default and
to charge Tenant for the cost of effecting such cure, including
without limitation reasonable attorneys' fees and interest on the
amount so advanced at the rate of eighteen percent (18%) per annum,
provided that Landlord will have no obligation to cure any such event
of default of Tenant.
Should Landlord elect to reenter as provided in subsection (2), or should
Landlord take possession pursuant to legal proceedings or pursuant to any
notice provide by law, Landlord may, from time to time, without terminating
this lease, relet the premises or any part of the premises in Landlord's or
Tenant's name, but for the account of Tenant, for such term or terms (which
may be greater or less than the period which would otherwise have
constituted the balance of the term) and on such conditions and upon such
other terms (which may include concessions of free rent and alteration and
repair of the premises) as Landlord, in its reasonable discretion, may
determine, and Landlord may collect and receive the rent. Landlord will in
no way be responsible or liable for any failure to relet the premises, or
any part of the premises, or for any failure to collect any rent due on
such reletting. No such reentry or taking possession of the premises by
Landlord will be construed as an election on Landlord's part to terminate
this lease unless a written notice of such intention is given to Tenant. No
written notice from Landlord under this Section or under a forcible or
unlawful entry and detainer
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statute or similar law will constitute an election by Landlord to terminate
this lease unless such notice specifically so states. Landlord reserves the
right following any such reentry or reletting to exercise its right to
terminate this lease by giving Tenant such written notice, in which event
this lease will terminate as specified in such notice.
c. In the event that Landlord does not elect to terminate this lease as
permitted in Section 8 b.(l), but on the contrary elects to take possession
as provided in Section 8 b.(2), Tenant will pay to Landlord monthly rent
and other sums as provided in this lease that would be payable under this
lease if such repossession had not occurred, less the net proceeds, if any,
of any reletting of the premises after deducting all of Landlord's
reasonable expenses in connection with such reletting, including without
limitation all repossession costs, brokerage commissions, attorneys' fees,
expenses of employees, alteration and repair costs, and expenses of
preparation for such reletting. If, in connection with any reletting, the
new lease term extends beyond the existing term, or part of the premises, a
fair apportionment of the rent received from such reletting and the
expenses incurred in connection with such reletting as provided in this
Section will be made in determining the net proceeds from such reletting,
and any rent concessions will be equally apportioned over the term of the
new lease. Tenant will pay such rent and other sums to Landlord monthly on
the day on which the monthly rent would have been payable under this lease
if possession had not been retaken, and Landlord will be entitled to
receive such rent and other sums from Tenant on each such day.
d. If this lease is terminated on account of the occurrence of an event of
default, Tenant will remain liable to Landlord for damages in an amount
equal to monthly rent and other amounts that would have been owing by
Tenant for the balance of the term, had this lease not been terminated,
less the net proceeds, if any, of any reletting of the premises by Landlord
subsequent to such termination, after deducting all of Landlord's expenses
in connection with such reletting, including without limitation the
expenses enumerated in Section c. (above). Landlord will be entitled to
collect such damages from Tenant monthly on the day on which monthly rent
and other amounts would have been payable under his lease if this lease had
not been terminated. Alternatively, at the option of Landlord, in the event
this lease is so terminated, Landlord will be entitled to recover against
Tenant as damages for loss of the bargain and not as penalty:
(1) The worth at the time of award of the unpaid rent that had been
earned at the time of termination;
(2) The worth at the time of award of the amount by which the unpaid
rent that would have been earned after termination until the time of
award exceeds the amount of such rental loss that Tenant proves could
have been reasonably avoided;
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(3) The worth at the time of award of the amount by which the unpaid
rent for the balance of the term of this lease (had the same not been
so terminated by Landlord) after the time of award exceeds the amount
of such rental loss that Tenant proves could be reasonably avoided;
(4) Any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its
obligations under this lease or which in the ordinary course of things
would be likely to result therefrom.
The "worth at the time of award" of the amounts referred to in clauses
(1) and (2) above is computed by adding interest at the per annum interest
rate described in Section 8 a. (3) (above) on the date on which this lease
terminated from the date of termination until the time of the award.
e. Any suit or suits for the recovery of the amounts and damages set forth
in Sections 8 c. and 8 d. may be brought by Landlord, from time to time, at
Landlord's election, and nothing in this lease will be deemed to require
Landlord to await the date upon which this lease or the term would have
expired had there occurred no event of default. Each right and remedy
provided for in this lease is cumulative and is in addition to every other
right or remedy for in this lease or now or after the lease date existing
at law or in equity or by statute or otherwise, and the exercise or
beginning of the exercise by Landlord of any one or more of the rights or
remedies provided for in this lease or now or after the lease date
existing at law or in equity or by statute or otherwise will not preclude
the simultaneous or later exercise Landlord of any or all other rights or
remedies provided for in this lease or now or after the lease date
existing at law or in equity or by statute or otherwise. All costs incurred
by Landlord in collecting any amounts and damages owing by Tenant pursuant
to the provisions of this lease or to enforce any provision of this lease,
including reasonable attorneys' fees from the date any such matter is
turned over to an attorney, whether or not one or more actions are
commenced by Landlord, will also be recoverable by Landlord from Tenant.
f. Tenant waives any right of redemption arising as a result of Landlord's
exercise of its remedies under this Article 8.
g. Any rent that is not paid when due will accrue interest at the rate of
eighteen percent (18%) per annum (but in no event in an amount in excess
of the maximum rate allowed by applicable law) from the date on which it
was due until the date on which it is paid in full with accrued interest.
In addition, in the event any payment due under this lease is not received
on or before the tenth day after the due date, Tenant shall pay to Landlord
a late charge equal to five percent (5%) of the past due amount, which
charge will help compensate Landlord for the administrative and other
expenses incurred by Landlord as a result of the late payment.
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9. PREMISES VACATED DURING TERM OF LEASE:
If Tenant shall abandon or vacate said premises before the end of the term
of this lease, Landlord may, at its option and without notice, enter said
premises, remove any signs of Tenant therefrom, and re-let the same, or any part
of thereof, as it may see fit, without thereby voiding or terminating this
lease, and, for the purpose of such re-letting, Landlord is authorized to make
any repairs, changes, alterations or additions in or to said premises, as may,
in the option of Landlord, be necessary or desirable for the purpose of such re-
letting, all at the cost of Tenant, and if a sufficient sum shall not be
realized from said re-letting (after payment of all costs and expenses of such
repairs, changes or alterations, and the expense of said re-letting and the
collection of rent accruing therefrom), each month to equal the monthly rental
agreed to be paid by Tenant under the provisions of this lease, then Tenant
agrees to pay such deficiency each month upon demand therefor.
10. REMOVAL OF TENANTS PROPERTY:
If Tenant shall fail to remove all effects from said premises upon the
abandonment thereof or upon the termination of this lease for any cause
whatsoever, Landlord, at its option, may remove the same in any manner that it
shall choose and store the said effects without liability to Tenant for loss
thereof, and Tenant agrees to pay Landlord on demand, any and all expenses
incurred in such removal, including court costs and attorney's fees and storage
charges on such effects for any length of time the same shall be in Landlords
possession; or Landlord, at its option, without notice, may sell said effects,
or any of the same, at private sale and without legal process, for such prices
as Landlord may obtain, and apply the proceeds of such sale upon any amounts due
under this lease from Tenant to Landlord and upon the expense incident to the
removal and sale of said effects, rendering the surplus if any, to Tenant.
11. LOSS OR DAMAGE TO TENANTS PROPERTY:
All personal property or leasehold improvements of any kind or description
whatsoever in the demised premises shall be at Tenant's sole risk, and Landlord
shall not be held liable for any damage done to or loss of such personal
property, or for damage or loss suffered by the business or occupation of Tenant
arising from any act or neglect of covenants or other occupants of the building,
or of their employees or the employees of the Landlord or of other persons, or
from fire of other casualty, bursting, overflowing or leaking of water, sewer or
steam pipes, or from heating or plumbing fixtures, or from electric wires, or
from gases, or odors, or caused in any other manner whatsoever, except in the
case of willful neglect on the part of Landlord.
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12. LIEN ON TENANT'S FURNISHINGS:
Tenant hereby conveys to Landlord all of the personal property situated on
the leases premises as security for the payment of all rentals due or to become
due hereunder. Said property shall not be removed therefrom without the consent
of Landlord until all rentals due or to become due hereunder shall have first
been paid and discharged. It is intended by the parties hereto that this
instrument shall have the effect of a mortgage and lien upon such property, and
Landlord, upon default of Tenant in the payment of rent, may take possession of
said property either to its own use or to sell the same for the best price that
can be obtained at public or private sale, and out of the money arising
therefrom pay the amount due to Landlord, and all costs growing out of the
execution of the provisions hereof, paying the surplus, if any, to Tenant. If
said property, or any portion thereof, shall be offered at public auction,
Landlord may become the purchaser thereof.
13. SURRENDER OF POSSESSION:
Tenant agrees to deliver up and surrender to Landlord possession of said
premises at the expiration or termination of this lease, by lapse of time or
otherwise, in as good repair as when Tenant obtained the same at the
commencement of said term, excepting only ordinarily wear and decay.
14. ACCEPTANCE OF PREMISES BY TENANT:
The taking possession of said premises by Tenant shall be conclusive
evidence as against Tenant that said premises were in good and satisfactory
conditions when possession of the same was taken.
15. WAIVER:
No waiver of any breach of any one or more of the conditions or covenants
of this lease by Landlord shall be deemed to imply or constitute a waiver of any
succeeding or other breach hereunder.
16. AMENDMENT OR MODIFICATION:
Tenant acknowledges and agrees that it has not relied upon any statements,
representations, agreements or warranties, except such as are expressed herein,
and that no amendment or modifications of this lease shall be valid or binding
unless expressed in writing and executed by the parties hereto in the same
manner as the execution of this lease.
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17. PAYMENTS AFTER TERMINATION:
No payments of money by Tenant to Landlord after the termination of this
lease, in any manner, or after the giving of any notice (other than a demand
for the payment of money) by Landlord to Tenant shall reinstate, continue or
extend the term of this lease or affect any notice given to Tenant prior to the
payment of such money, it being agreed that after the service of notice or the
commencement of a suit or after final judgment granting Landlord possession of
said premises, Landlord may receive and collect any sums of rent due, or any
other sums of money due under the terms of this lease, and the payment of such
sums of money whether as rent of otherwise, shall not waive said notice, or in
any manner affect any pending suit or any judgment therefore.
18. HOLDING AFTER TERMINATION:
It is mutually agreed that if, after the expiration of this lease, Tenant
shall remain in possession of said premises without a written agreement as to
such holding, then such holding over shall be deemed and taken to be a holding
upon a tenancy from month to month at a monthly rental equivalent to one and
one-half times the last monthly payment hereinbefore provided for, payable in
advance on the same day of each month as above provided, all other terms and
conditions of this lease remaining the same.
19. RULES AND REGULATIONS:
Landlord reserves the right to adopt rules and regulations from time to
time governing the management of the building and use thereof by Tenants. Tenant
agrees that its employees and agents, or any others permitted by Tenant, to
occupy or enter said premises, will at all times abide by said rules and
regulations as they may be amended from time to time, and that a default in the
performance and observance thereof shall operate the same as any other defaults
herein.
Attached hereto as Exhibit "A" is the current list of rules and regulations
presently in force and effect. At such time as Landlord adopts any amendments to
such rules and regulations, Landlord shall provide Tenant with copy thereof at
least ten (10) days prior to the enforcement of the provisions of any such
amendments.
20. SECURITY DEPOSITS:
It is agreed that Tenant, concurrently with the execution of this lease,
has deposited with Landlord, and will keep $680.00, as security for the
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payment by Tenant of the rent and other charges herein agreed to be paid, and
for the performance of all the terms, conditions and covenants of this lease.
If, at any time during the term of this lease, Tenant shall be in default in the
performance of any provision of this lease, Landlord shall have the right to use
said deposit, or so much thereof as necessary, in payment of any rental in
default as aforesaid and in reimbursement of any expense incurred by Landlord
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and in payment of any damages incurred by Landlord by reason or Tenant's
default, or at the option of Landlord, the same may be retained by Landlord, and
applied in Liquidation or any damages suffered by it by reason of Tenant's
default. In such event, Tenant shall, on written demand of Landlord, forwith
remit to Landlord a sufficient amount in cash to restore said deposit to its
original amount. In the event said deposit has not been utilized as aforesaid,
said deposit, or so much thereof as has not been utilized for said purposes,
shall be refunded to Tenant, without interest, upon full performance of this
lease by Tenant. Said return shall be made within 60 days after the termination
date of this lease. Landlord shall have the right to commingle said deposit with
other funds or Landlord. Landlord shall deliver the balance of said funds, if
any, deposited herein by Tenant to the purchaser or Landlord's interest in the
leased premises in the event such interest be sold and, thereupon, Landlord
shall be discharged from further liability with respect to such deposit.
21. QUIET POSSESSION:
Provided Tenant is not in default under this lease, Landlord shall warrant
and defend Tenant in the enjoyment and peaceful possession of the premises
during the term aforesaid and all terms, conditions and convenience to be
observed and performed by the parties hereto shall be applicable to and binding
upon their heirs, administrator, executors, successors or assigns.
22. DEMOLITION NOTICE:
It is agreed that at any time during the terms of this lease, Lessor,
(Landlord) shall have the right to terminate this lease if it or it's assignees,
grantees or any successor in interest should desire to demolish the building
containing the demised premises. Termination shall be made by delivering written
notice to Lessee of such intention to demolish, which notice shall require
Lessee to vacate said premises no sooner than ninety (90) days from the date of
said notice. Lessor or it's assignees, grantees or any successor in interest may
commence the demolition of said building at any time subsequent to the date
Lessee is required to vacate the premises.
23. OTHER PROVISIONS:
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IN WITNESS WHEREOF, the said Landlord and Tenant have caused their
respective names and seals to be affixed hereto in triplicate the day and year
first above written.
LANDLORD
ATTEST: THE MINING EXCHANGE PARTNERS, LTD.
By: /s/ signature illegible
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MANAGER
TENANT
By: /s/ signature illegible
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Exhibit A
RULES AND REGULATIONS
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1. The sidewalks, entries, passages, stairways and elevators shall not be
obstructed by the Tenant, or its agents, or used by them for any purpose
other than ingress and egress to and from their offices.
2. a. Furniture, equipment or supplies shall be moved in or out of the
building only during such hours and in such manner as may be
prescribed by Landlord.
b. No safe or article, the weight of which may constitute a hazard or
danger to the building or its equipment shall be moved into the
premises.
c. Safes and other equipment, the weight of which is not excessive, shall
be moved into, from or about the building only during such hours and
in such manner as shall be prescribed by Landlord, and Landlord shall
have the right to designate the location of such articles in the space
hereby demised.
3. Signs, notices, advertisements or other inscriptions shall not be placed
upon any part of the building except in such locations and by such sign
writers, and of such size, form and color, as shall be first specified by
Landlord.
4. Water closets and other water fixtures shall not be used for any purpose
other than that for which the same are intended, and any damage resulting
to the same from misuse on the part of Tenant, its agents or employees,
shall be paid for by Tenant, no person shall waste water by tying back or
wedging the faucets, or in any other manner.
5. No animals, except handicap aid dogs, shall be allowed in the offices,
halls, corridors and elevators in the building.
6. Bicycles or other vehicles shall not be permitted in the offices, halls,
corridors and elevators in the building, nor shall any obstruction of
sidewalks or entrances of the building by such be permitted.
7. No person shall disturb the occupants of this or adjoining buildings or
premises by the use of any radio or musical instrument or by the making of
loud or improper noises.
8. No additional lock or locks shall be placed by Tenant on any door in the
building unless written consent of the Landlord shall first have been
obtained. A reasonable number of keys to the demised premises and to the
toilet rooms will be furnished by Landlord, and neither Tenant, its agents
or employees, shall have any duplicate key made. At the termination of this
tenancy, Tenant shall promptly return to Landlord all keys to offices,
toilet rooms or vaults.
9. No equipment, awnings, or any other items shall be placed on the exterior
of the building or on any window ledge without written consent from the
Landlord.
10. Tenant, before closing and leaving the demised premises at any time, shall
see that all windows are closed, in order to avoid possible damage from
fire, storm or freezing, and shall re-lock all outside building doors if
used during non-business hours.
11. Tenant shall not install or operate any steam or gas engine or boiler, or
carry on any mechanical business in the demised premises. The use of oil,
gas or flammable liquids for heating, lighting or any other purpose is
expressly prohibited. Explosives or other articles deemed extra hazardous
shall not be brought in to the building.
12. Any painting or decorating as may be agreed to be done by and at the
expense of Landlord shall be done during regular working hours, should
Tenant desire such work done on Sundays, holidays or outside of regular
working hours, Tenant shall pay for the extra cost thereof.
13. Tenant shall not xxxx upon, paint signs upon, cut drill into, drive nails
or screws into, or in any way deface the walls, ceilings, partitions or
floors of the demised premises or of the building, and any defacement,
damage or injury caused by Tenant, its agents or employees, shall be paid
for by Tenant.
14. No parking is permitted in the alleys except for deliveries and workmen.
15. All requests for service, repair or other maintenance shall be made
directly to the office of Landlord.
16. Smoking is not permitted in any area of the building, including individual
offices.
17. Landlord shall at all times have the right, by its officer or agents, to
enter the demised premises to inspect and examine the same, and to show the
same to persons wishing to lease them, and may at any time within fifteen
days next preceding the termination of this tenancy, place upon the doors
and windows of the premises the notice "For Rent", which said notice shall
not be removed by Tenant.
18. Landlord reserves the right to make such other and further reasonable rules
and regulations as, in its judgment, may from time to time be needful and
desirable for the safety, care and cleanliness of premises and for the
preservation of good order therein.
LEASE
THIS AGREEMENT OF LEASE made and entered into on this 9th day of October, 1996,
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by and between THE MINING EXCHANGE PARTNERS, LTD., a Partnership organized under
the laws of the State of Colorado,
hereinafter
referred to as Landlord and
Communications Systems International (CSI)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
hereinafter referred to as Tenant,
WITNESSETH:
For and in consideration of the covenants and agreements herein contained,
Landlord does hereby lease to Tenant and Tenant does hereby lease from Landlord
the premises known end described as Suites 001/200/201 (5,128 Rentable Sq. Ft.)
-------------------------------------------
in the Mining Exchange Building at 0 Xxxxx Xxxxxx Xxx. in the City of Colorado
--------------- -------------------
Springs for such term and such rental and subject to the convents and agreements
set forth hereinafter.
1. TERM:
The terms of this lease shall be for a period of Two Years Four Months (2 1/3)
-----------------------------
year(s) commencing on September 1, 1996 and terminating on December 31, 1998.
----------- -- ----------- --
2. RENTAL:
Tenant agrees to pay to Landlord as rent for said premises for the full term
aforesaid the total sum of One Hundred Twelve Thousand Four Hundred and
-----------------------------------------------------
40/100 - - - - - - - -($ 112,400.40 Dollars, payable as follows:
----------------------
9/01/96 - 11/30/96 $2,035.00 per month $6,105.00
12/01/96 - 12/31/97 4,047.00 per month 52,611.00
01/01/98 - 12/31/98 4,473.70 per month 53,684.40
which said sum shall be due and payable in advance on the First day of each and
-----
every calendar month during said term at the office of Landlord, or such other
place in the City of Colorado Springs, Colorado as the Landlord from time to
time in writing may designate.
1
MINING EXCHANGE PARTNERS, LTD.
000 Xxxx Xxxxx Xxxx, Xxxxx 000
Xxxxxxxx Xxxxxxx, XX 00000
(000) 000-0000
(Fax) 000-0000
March 31, 1997
ADDENDUM TO LEASE
This addendum to the lease dated October 9, 1996 between the Mining
Exchange Partners, Ltd., Landlord, and Communications Systems International
(CSI), Tenant is for the purpose to add Vault No. 2B on the second floor through
the term of the lease (December 31, 1998) and the voice mail unit currently
under a master lease with Union Federal Savings, Indianapolis, Indiana which
extends through September 5, 1998. The lease for the mail unit, carries a buy-
out option at the end of the lease at the then current market value.
The additional rent is a follows: Vault 2B 25.00 per Month
Voice Mail Unit 130.00 per Month
Mining Exchange Partners, Ltd.
/s/ Xxxxxxx X. Xxxxx
----------------------------------
Xxxxxxx X. Xxxxx
Property Manager
Acknowledged and Accepted:
/s/ SIGNATURE ILLEGIBLE
---------------------------
CS International, Tenant
MINING EXCHANGE PARTNERS, LTD.
000 Xxxx Xxxxx Xxxx, Xxxxx 000
Xxxxxxxx Xxxxxxx, XX 00000
(000) 000-0000
(Fax) 000-0000
January 24, 1997
ADDENDUM TO LEASE
This addendum to the lease between Mining Exchange Partners, Ltd.,
Landlord, and Communications Systems International, (CSI), Tenant, dated October
9, 1996, is for the purpose to add 517 rentable square feet adjacent to the
leased area known as Suite 200/202 in the Mining Exchange Building.
This additional lease space will increase the above noted lease payments as
follows:
February 1, 1997 - December 31, 1997 $4,477.80 per month
January 1, 1998 - December 31, 1998 4,947.60 per month
All other conditions of the lease will remain in effect.
Mining Exchange Partners, Ltd.
/s/ Xxxxxxx X. Xxxxx
-------------------------------
Xxxxxxx X. Xxxxx
Property Manager
Acknowledged and Accepted:
SIGNATURE ILLEGIBLE
------------------------------
CS International, Tenant
MINING EXCHANGE PARTNERS, LTD.
000 XXXX XXXXX XXXX XXXXXX, XXXXX 000
Xxxxxxxx Xxxxxxx, XX 00000
(000) 000-0000
Fax 000-0000
November 11, 1996
Xx. Xxx Xxxxxxx
CS International
0 Xxxxx Xxxxxx Xxxxxx, #000
Xxxxxxxx Xxxxxx, XX 00000
Dear Xxx,
According to the lease dated December 1, 1994 between the Mining Exchange
Partners, Ltd. and CSI, CSI has the option to extend the lease for three (3)
years at the following rates:
Jan. 1, 1997 - Dec. 1997 $5,528.00 per month
Jan. 1, 1998 - Dec. 1998 6,449.00 per month
Jan. 1, 1999 - Dec. 1999 7,371.00 per month
If you intend to exercise this option please acknowledge this letter by
signing in the appropriate place. Thanks for your attention.
Mining Exchange Partners, Ltd.
/s/ Xxxxxxx X. Xxxxx
------------------------------
Property Manager
Acknowledged and Accepted
SIGNATURE ILLEGIBLE
------------------------------
CS International
LEASE
THIS AGREEMENT OF LEASE made and entered into on this 1 (first) day of
---------
December , 1994, by and between THE MINING EXCHANGE PARTNERS, LTD., a
----------------
Partnership organized under the laws of the State of Colorado, hereinafter
referred to as Landlord and Communication Systems International (CSI)
-----------------------------------------
hereinafter referred to as Tenant,
WITNESSETH:
For and in consideration of the covenants and agreements herein contained,
Landlord does hereby lease to Tenant and Tenant does hereby lease from Landlord
the premises known and described as Suite 101 in the Mining Exchange Building at
--------- --------------
8 S. Nevada in the City of Colorado Springs for such term and such rental and
-----------
subject to the convents and agreements set forth hereinafter.
1. TERM:
The term of this lease shall be for a period of 2 (two) year(s) commencing on
-------
December 1, 1994 and terminating on December 31, 1996.
---------------- -----------------
2. RENTAL:
Tenant agrees to pay to Landlord as rent for said premises for the full term
aforesaid the total sum of $105,794.00 (One hundred thousand five, seven hundred
-----------------------------------------------------
ninety-four dollars. ($ ) Dollars, payable as follows:
--------------------
$3300/Month x 4 = $13,200 = $7.16/sq. ft. 12-1-94 through 3-31-95
$4146/Month x 9 = $37,314 = $9.00/sq. ft. 4-1-95 through 12-31-95
$4606/Month x 12 = $55,280 = $10.00/sq. ft. 1-1-96 through 12-31-96
Total of 5528 sq.ft.
which said sum shall be due and payable in advance on the 1 (first) day of
---------
each and every calendar month during said term at the office of Landlord, or
such other place in the City of Colorado Springs, Colorado as the Landlord from
time to time in writing may designate.
1
3. SERVICES:
Landlord agrees, during the period of this lease:
a. To heat the demised premises whenever necessary during reasonable
business hours or customary heating season.
b. To provide the use of the passenger elevators (if the building is so
equipped) at all time during reasonable business hours, Sundays and
Holidays excepted.
c. To provide janitor service for the demised premises (trash everyday,
vacuuming three days a week).
Tenant agrees that Landlord shall not be held liable for failure to supply
such heating, elevator, janitor or lighting services, or any of them, when such
failure is not due to negligence on Landlord's part, it being understood that
Landlord reserves the right to temporarily discontinue such services, or any of
them, at such times as may be necessary by reason of accident, repairs,
alterations or improvements, or whenever, by reason of strikes, lockouts, riots,
acts of God, or any other happening, Landlord is unable to furnish such
services.
Tenant agrees that if any payment of rent as herein provided shall remain
unpaid for more than ten (10) days, after the same shall become due, Landlord
may, without notice to Tenant, discontinue furnishing lighting, heating and
janitor services, or any of them, until all areas of rent shall have the first
been paid and discharged, and that Landlord shall not be liable for damages and
that such action shall in no way operate to release Tenant from the obligations
hereunder.
4. CHARACTER OF OCCUPANCY
Tenant agrees:
a. That the demised premises shall be used and occupied only as general
-------
offices in a careful, safe and proper manner.
-------
b. That it will pay on demand for any damage to the premises
2
caused by the misuse of same by it, or its agents or employees or invitees.
c. That it will not use or permit the demised premises to be used for any
purposes prohibited by the laws of the United States or the State of
Colorado, or the ordinances of the City of Colorado Springs.
d. That it will not use or keep any substance or material in or about the
demised premises which may vitiate or endanger the validity of the
insurance on said building or increase the hazard of the risk, or which may
prove offensive or annoying to other Tenants of the building.
e. That it will not permit any nuisance in the demised premises.
5. ALTERATIONS:
a. Landlord shall have the right at any time to enter the demised premises
to examine and inspect the same, or to make such repairs, additions, or
alterations as it may deem necessary or proper for the safety, improvement
or preservation thereof, and shall at all times have the right, at its
election, to make such alterations or changes to other portions of said
building as it may from time to time deem necessary and desirable.
b. Tenant shall make no alterations in or additions to the demised premises
without first obtaining the written consent of Landlord, and all additions
or improvements made by Tenant (except only moveable office furniture)
shall be deemed a part of the real estate and the permanent structure
thereon and shall remain upon and be surrendered with said premises as a
part thereof at the end of the said term, by lapse of time, or otherwise,
or at the option of Landlord, shall be removed at Tenant's expense and the
premises restored to their original state.
6. SUBLETTING:
Tenant agrees that it will not sublet the demised premises, or any part
thereof, nor assign this lease, or any interest therein, without the written
consent of Landlord first had and obtained.
7. INSOLVENCY:
Any assignment for the benefit of creditors or by operation of law shall
not be effective to transfer any rights hereunder to the said assignee without
the written consent of Landlord first having been obtained.
It is further agreed between the parties hereto that if Tenant shall be
declared insolvent or bankrupt, or if any assignment of Tenant's property shall
be made for the
3
benefit of creditors or otherwise, or if Tenant's leasehold interest herein
shall be levied upon under execution, or seized by virtue of any writ of any
court of law, or a Trustee in Bankruptcy or a Receiver be appointed for the
property of Tenant, whether under the operation of State or Federal statues,
then and in any such case, Landlord may, at its option, immediacy, with or
without notice (notice being expressly waived) terminate this lease and
immediately retake possession of said premises, using such force as may be
necessary without being guilty of any manner of trespass or forcible entry or
detainer, and without same working any forfeiture of the obligations of Tenant
hereunder.
8. DEFAULT:
a. The following events are referred to, collectively, as "events of
default" or, individually, as an "event of default":
(1) Tenant defaults in the due and punctual payment of rent, and such
default continues for five days after written notice from Landlord;
however, Tenant will not be entitled to more than one written notice
for monetary defaults during any 12-month period, and if after such
written notice any rent is not paid when due, an event of default will
be considered to have occurred without further notice;
(2) Tenant vacates or abandons the premises;
(3) This lease or the premises or any part of the premises are taken
upon execution or by other process of law directed against Tenant, or
are taken or subject to any attachment by any creditor of Tenant or
claimant against Tenant, and said attachment is not discharged or
disposed of within fifteen days after its levy;
(4) Tenant files a petition in bankruptcy or insolvency or for
reorganization or arrangement under the bankruptcy laws of the United
States or under any insolvency act of any state, or admits the material
allegations of any such petition by answer or other wise, or is
dissolved or makes an assignment for the benefit or creditors;
(5) Involuntary proceedings under any such bankruptcy law or insolvency
act or for the dissolution of Tenant are instituted against Tenant, or
a receiver or trustee is appointed for all or substantially all of the
property of Tenant, and such proceeding is not dismissed or such
receivership or trusteeship vacated within sixty days after such
institution or appointment;
(6) Tenant breaches any of the other agreements, terms, covenants, or
conditions that this lease requires Tenant to perform, and such breach
continues for a period of thirty days after written notice from
Landlord to Tenant or, if such breach cannot be cured reasonably within
such thirty day period, if Tenant fails to diligently commence to
cure such breach within
4
thirty days after written notice from Landlord and to complete such
cure within a reasonable time thereafter.
b. If any one or more events of default set forth in Section "a." occurs
then Landlord has the right, at its election:
(1) To give Tenant one written notice of Landlord's intention to
terminate this lease on the earliest date permitted by law or on any
later date specified in such notice, in which case Tenant's right to
possession of the premises will cease and this lease will be
terminated, except as to Tenant's liability, as if the expiration of
the term fixed in such notice were the end of the term;
(2) Without further demand or notice, to reenter and take possession of
the premises or any part of the premises, repossess the same, expel
Tenant and those claiming through or under Tenant, and remove the
effects of both or either, using such force for such purposes as may be
necessary, without being liable for prosecution, without being
deemed guilty of any manner or trespass, and without prejudice to any
remedies for arrears of monthly rent or other amounts payable under
this lease or as a result of any preceding breach of covenants or
conditions; or
(3) Without further demand or notice to cure any event of default and
to charge Tenant for the cost of effecting such cure, including without
limitation reasonable attorneys' fees and interest on the amount so
advanced at the rate of eighteen percent (18%) per annum, provided
that Landlord will have no obligation to cure any such event of default
of Tenant.
Should Landlord elect to reenter as provided in subsection (2), or should
Landlord take possession pursuant to legal proceedings or pursuant to any
notice provide by law, Landlord may, from time to time, without terminating
this lease, relet the premises or any part of the premises in Landlord's or
Tenant's name, but for the account of Tenant, for such term or terms (which
may be greater or less than the period which would otherwise have
constituted the balance of the term) and on such conditions and upon such
other terms (which may include concessions of free rent and alteration and
repair of the premises) as Landlord, in its reasonable discretion, may
determine, and Landlord may collect and receive the rent. Landlord will in
no way be responsible or liable for any failure to relet the premises, or
any part of the premises, or for any failure to collect any rent due on
such reletting. No such reentry or taking possession of the premises by
Landlord will be construed as an election on Landlord's part to terminate
this lease unless a written notice of such intention is given to Tenant. No
written notice from Landlord under this Section or under a forcible or
unlawful entry and detainer
5
statute or similar law will constitute an election by Landlord to terminate
this lease unless such notice specifically so states. Landlord reserves the
right following any such reentry or reletting to exercise its right to
terminate this lease by giving Tenant such written notice, in which event
this lease will terminate as specified in such notice.
c. In the event that Landlord does not elect to terminate this lease as
permitted in Section 8 b.(1), but on the contrary elects to take possession
as provided in Section 8 b.(2), Tenant will pay to Landlord monthly rent
and other sums as provided in this lease that would be payable under this
lease if such repossession had not occurred, less the net proceeds, if any,
of any reletting of the premises after deducting all of Landlord's
reasonable expenses in connection with such reletting, including without
limitation all repossession costs, brokerage commissions, attorneys' fees,
expenses of employees, alteration and repair costs, and expenses of
preparation for such reletting. If, in connection with any reletting, the
new lease term extends beyond the existing term, or part of the premises, a
fair apportionment of the rent received from such reletting and the
expenses incurred in connection with such reletting as provided in this
Section will be made in determining the net proceeds from such reletting,
and any rent concessions will be equally apportioned over the term of the
new lease. Tenant will pay such rent and other sums to Landlord monthly on
the day on which the monthly rent would have been payable under this lease
if possession had not been retaken, and Landlord will be entitled to
receive such rent and other sums from tenant on each such day.
d. If this lease is terminated on account of the occurrence of an event of
default, Tenant will remain liable to Landlord for damages in an amount
equal to monthly rent and other amounts that would have been owing by
Tenant for the balance of the term, had this lease not been terminated,
less the net proceeds, if any, of any reletting of the premises by Landlord
subsequent to such termination, after deducting all of Landlord's expenses
in connection with such reletting, including without limitation the
expenses enumerated in Section c. (above). Landlord will be entitled to
collect such damages from Tenant monthly on the day on which monthly rent
and other amounts would have been payable under his lease if this lease had
not been terminated. Alternatively, at the option of Landlord, in the event
this lease is so terminated, Landlord will be entitled to recover against
Tenant as damages for loss of the bargain and not as penalty:
(1) The worth at the time of award of the unpaid rent that had been
earned at the time of termination;
(2) The worth at the time of award of the amount by which the unpaid
rent that would have been earned after termination until the time of
award exceeds the amount of such rental loss that Tenant proves could
have been reasonably avoided;
6
(3) The worth at the time of award of the amount by which the unpaid rent
for the balance of the term of this lease (had the same not been so
terminated by Landlord) after the time of award exceeds the amount of such
rental loss that Tenant proves could be reasonably avoided;
(4) Any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under
this lease or which in the ordinary course of things would be likely to
result therefrom.
The "worth at the time of award" of the amounts referred to in clauses (1)
and (2) above is computed by adding interest at the per annum interest rate
described in Section 8 a.(3) (above) on the date on which this lease terminated
from the date of termination until the time of the award.
e. Any suit or suits for the recovery of the amounts and damages set forth in
Sections 8 c. and 8 d. may be brought by Landlord, from time to time, at
Landlord's election, and nothing in this lease will be deemed to require
Landlord to await the date upon which this lease or the term would have expired
had there occurred no event of default. Each right and remedy provided for in
this lease is cumulative and is in addition to every other right or remedy for
in this lease or now or after the lease date existing at law or in equity or by
statute or otherwise, and the exercise or beginning of the exercise by Landlord
of any one or more of the rights or remedies provided for in this lease or now
or after the lease date existing at law or in equity or by statute or otherwise
will not preclude the simultaneous or later exercise Landlord of any or all
other rights or remedies provided for in this lease or now or after the lease
date existing at law or in equity or by statute or otherwise. All costs incurred
by Landlord in collecting any amounts and damages owing by Tenant pursuant to
the provisions of this lease or to enforce any provision of this lease,
including reasonable attorney's fees from the date any such matter is turned
over to an attorney, whether or not one or more actions are commenced by
Landlord, will also be recoverable by Landlord from Tenant.
f. Tenant waives any right of redemption arising as a result of Landlord's
exercise of its remedies under this Article 8.
g. Any rent that is not paid when due will accrue interest at the rate of
eighteen percent (18%) per annum (but in no event in an amount in excess of the
maximum rate allowed by applicable law) from the date on which it was due until
the date on which it is paid in full with accrued interest. In addition, in the
event any payment due under this lease is not received on or before the tenth
day after the due date, Tenant shall pay to Landlord a late charge equal to five
percent (5%) of the past due amount, which charge will help compensate Landlord
for the administrative and other expenses incurred by Landlord as a result of
the late payment.
7
9. PREMISES VACATED DURING TERM OF LEASE:
If Tenant shall abandon or vacate said premises before the end of the term
of this lease, Landlord may, at its option and without notice, enter said
premises, remove any signs of Tenant therefrom, and re-let the same, or any part
of thereof, as it may see fit, without thereby voiding or terminating this
lease, and, for the purpose of such re-letting, Landlord is authorized to make
any repairs, changes, alterations or additions in or to said premises, as may,
in the option of Landlord, be necessary or desirable for the purpose of such re-
letting, all at the cost of Tenant, and if a sufficient sum shall not be
realized from said re-letting (after payment of all costs and expenses of such
repairs, changes or alterations, and the expense of said re-letting and the
collection of rent accruing therefrom), each month to equal the monthly rental
agreed to be paid by Tenant under the provisions of this lease, then Tenant
agrees to pay such deficiency each month upon demand therefor.
10. REMOVAL OF TENANTS PROPERTY:
If Tenant shall fail to remove all effects from said premises upon the
abandonment thereof or upon the termination of this lease for any cause
whatsoever, Landlord, at its option, may remove the same in any manner that it
shall choose and store the said effects without liability to Tenant for loss
thereof, and Tenant agrees to pay Landlord on demand, any and all expenses
incurred in such removal, including court costs and attorney's fees and storage
charges on such effects for any length of time the same shall be in Landlords
possession; or Landlord, at its option, without notice, may sell said effects,
or any of the same, at private sale and without legal process, for such prices
as Landlord may obtain, and apply the proceeds of such sale upon any amounts due
under this lease from Tenant to Landlord and upon the expense incident to the
removal and sale of said effects, rendering the surplus if any, to Tenant.
11. LOSS OR DAMAGE TO TENANTS PROPERTY:
All personal property or leasehold improvements of any kind or description
whatsoever in the demised premises shall be at Tenant's sole risk, and Landlord
shall not be held liable for any damage done to or loss of such personal
property, or for damage or loss suffered by the business or occupation of
Tenant arising from any act or neglect of covenants or other occupants of the
building, or of their employees or the employees of the Landlord or of other
persons, or from fire of other casualty, bursting, overflowing or leaking of
water, sewer or steam pipes, or from heating or plumbing fixtures, or from
electric wires, or from gases, or odors, or caused in any other manner
whatsoever, except in the case of willful neglect on the part of Landlord.
8
12. LIEN ON TENANT'S FURNISHINGS:
Tenant hereby conveys to Landlord all of the personal property situated on
the leases premises as security for the payment of all rentals due or to become
due hereunder. Said property shall not be removed therefrom without the consent
of Landlord until all rentals due or to become due hereunder shall have first
been paid and discharged. It is intended by the parties hereto that this
instrument shall have the effect of a mortgage and lien upon such property, and
Landlord, upon default of Tenant in the payment of rent, may take possession of
said property either to its own use or to sell the same for the best price that
can be obtained at public or private sale, and out of the money arising
therefrom pay the amount due to Landlord, and all costs growing out of the
execution of the provisions hereof, paying the surplus, if any, to Tenant. If
said property, or any portion thereof, shall be offered at public auction,
Landlord may become the purchaser thereof.
13. SURRENDER OF POSSESSION:
Tenant agrees to deliver up and surrender to Landlord possession of said
premises at the expiration or termination of this lease, by lapse of time or
otherwise, in as good repair as when Tenant obtained the same at the
commencement of said term, excepting only ordinarily wear and decay.
14. ACCEPTANCE OF PREMISES BY TENANT:
The taking possession of said premises by Tenant shall be conclusive
evidence as against Tenant that said premises were in good and satisfactory
conditions when possession of the same was taken.
15. WAIVER:
No waiver of any breach of any one or more of the conditions or covenants
of this lease by Landlord shall be deemed to imply or constitute a waiver of any
succeeding or other breach hereunder.
16. AMENDMENT OR MODIFICATION:
Tenant acknowledges and agrees that it has not relied upon any statements,
representations, agreements or warranties, except such as are expressed herein,
and that no amendment or modifications of this lease shall be valid or binding
unless expressed in writing and executed by the parties hereto in the same
manner as the execution of this lease.
9
17. PAYMENTS AFTER TERMINATION:
No payments of money by Tenant to Landlord after the termination of this
lease, in any manner, or after the giving of any notice (other than a demand for
the payment of money) by Landlord to Tenant shall reinstate, continue or extend
the term of this lease or affect any notice given to Tenant prior to the
payment of such money, it being agreed that after the service of notice or the
commencement of a suit or after final judgment granting Landlord possession of
said premises, Landlord may receive and collect any sums of rent due, or any
other sums of money due under the terms of this lease, and the payment of such
sums of money whether as rent of otherwise, shall not waive said notice, or in
any manner affect any pending suit or any judgment therefore.
18. HOLDING AFTER TERMINATION:
It is mutually agreed that if, after the expiration of this lease, Tenant
shall remain in possession of said premises without a written agreement as to
such holding, then such holding over shall be deemed and taken to be a holding
upon a tenancy from month to month at a monthly rental equivalent to one and
one-half times the last monthly payment hereinbefore provided for, payable in
advance on the same day of each month as above provided, all other terms and
conditions of this lease remaining the same.
19. RULES AND REGULATIONS:
Landlord reserves the right to adopt rules and regulations from time to
time governing the management of the building and use thereof by Tenants. Tenant
agrees that its employees and agents, or any others permitted by Tenant, to
occupy or enter said premises, will at all times abide by said rules and
regulations as they may be amended from time to time, and that a default in the
performance and observance thereof shall operate the same as any other defaults
herein.
Attached hereto as Exhibit "A" is the current list of rules and regulations
presently in force and effect. At such time as Landlord adopts any amendments to
such rules and regulations, Landlord shall provide Tenant with copy thereof at
least ten (10) days prior to the enforcement of the provisions of any such
amendments.
20. SECURITY DEPOSITS:
It is agreed that Tenant, concurrently with the execution of this lease,
has deposited with Landlord, and will keep $______________, as security for the
payment by Tenant of the rent and other charges herein agreed to be paid, and
for the performance of all the terms, conditions and covenants of this lease.
If, at any time during the term of this lease, Tenant shall be in default in the
performance of any provision of this lease, Landlord shall have the right to use
said deposit, or so much thereof as necessary, in payment of any rental in
default as aforesaid and in reimbursement of any expense incurred by Landlord
10
and in payment of any damages incurred by Landlord by reason of Tenant's
default, or at the option of Landlord, the same may be retained by Landlord, and
applied in liquidation of any damages suffered by it by reason of Tenant's
default. In such event, Tenant shall, on written demand of Landlord, forwith
remit to Landlord a sufficient amount in cash to restore said deposit to its
original amount. In the event said deposit has not been utilized as aforesaid,
said deposit, or so much thereof as has not been utilized for said purposes,
shall be refunded to Tenant, without interest, upon full performance of this
lease by Tenant. Said return shall be made within 60 days after the termination
date of this lease. Landlord shall have the right to commingle said deposit
with other funds of Landlord. Landlord shall deliver the balance of said funds,
if any, deposited herein by Tenant to the purchaser of Landlord's interest in
the leased premises in the event such interest be sold and, thereupon, Landlord
shall be discharged from further liability with respect to such deposit.
21. QUIET POSSESSION:
Provided Tenant is not in default under this lease, Landlord shall warrant
and defend Tenant in the enjoyment and peaceful possession of the premises
during the term aforesaid and all terms, conditions and convenience to be
observed and performed by the parties hereto shall be applicable to and binding
upon their heirs, administrator, executors, successors or assigns.
22. DEMOLITION NOTICE:
It is agreed that at any time during the terms of this lease, Lessor,
(Landlord) shall have the right to terminate this lease if it or it's assignees,
grantees or any successor in interest should desire to demolish the building
containing the demised premises. Termination shall be made by delivering written
notice to Lessee of such intention to demolish, which notice shall require
Lessee to vacate said premises no sooner than ninety (90) days from the date of
said notice. Lessor or it's assignees, grantees or any successor in interest may
commence the demolition of said building at any time subsequent to the date
Lessee is required to vacate the premises.
23. OTHER PROVISIONS:
Tenant has the option to renew lease per the following:
Three year option:
$5528/Month x 12 = $66,336 = $12.00/sq.ft. 1-1-97 through 12-31-97
$6449/Month x 12 = $77,392 = $14.00/sq.ft. 1-1-98 through 12-31-98
$7371/Month x 12 = $88,448 = $16.00/sq.ft. 1-1-99 through 12-31-99
11
IN WITNESS WHEREOF, the said Landlord and Tenant have caused their
respective names and seals to be affixed hereto in triplicate the day and year
first above written.
LANDLORD
ATTEST: THE MINING EXCHANGE PARTNERS, LTD.
BY: /s/ signature illegible
------------------------ -------------------------------
PROPERTY MANAGER
TENANT
BY: /s/ signature illegible
------------------------ -------------------------------
12
Exhibit A
RULES AND REGULATIONS
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1. The sidewalks, entries, passages, stairways and elevator shall not be
obstructed by the Tenant or its agents or used by them for any purpose
other than ingress and egress to and from their offices.
2. Furniture, equipment or supplies shall be moved in or out of the building
only during such hours and in such manner as may be prescribed by Landlord.
b. No safe or article, the weight of which may constitute a hazard or
danger to the building or its equipment shall be moved into the
premises.
c. Safes and other equipment, the weight of which is not excessive, shall
be moved into. from or about the building only during such hours and
in such manner as shall be prescribed by Landlord, and Landlord shall
have the right to designate the location of such articles in the space
hereby demised.
3. Signs, notices, advertisements or other inscriptions shall not be placed
upon any part or the building except in such locations and by such sign
writers, and of such size, form and color, as shall be first specified by
Landlord.
4. Water closets and other water fixtures shall not be used for any purpose
other than the for which the same are intended, and any damage resulting to
the same from misuse on the part of Tenant, its agents or employees, shall
be paid for by Tenant, no person shall waste water by tying back or wedging
the faucets, or in any other manner.
5. No animals, except handicap aid dogs, shall be allowed in the office halls,
corridors and elevators in the building.
6. Bicycles or other vehicles shall not be permitted in the office halls
corridors and elevators in the building, nor shall any obstruction of
sidewalks or entrances of the building by such be permitted.
7. No person shall disturb the occupants of this or adjoining buildings or
premises by the use of any radio or musical instrument or by the making of
loud or improper noises.
8. No additional lock or locks shall be placed by Tenant on any door in the
building unless written consent of the Landlord shall first have been
obtained. A reasonable number of keys to the demised premises and to the
toilet rooms will be furnished by Landlord, and neither Tenant, its agents
or employees, shall have any duplicate key made. At the termination of this
tenancy, Tenant shall promptly return to Landlord all keys to offices,
toilet rooms or vaults.
9. No equipment, awnings, or any other items shall be placed on the exterior
of the building or on any window ledge without written consent from the
Landlord.
10. Tenant, before closing and leaving the demised premises at any time, shall
see that all windows are closed, in order to avoid possible damage from
fire, storm or freezing, and shall re-lock all outside building doors if
used during non-business hours.
11. Tenant shall not install or operate any steam or gas engine or boiler, or
carry on any mechanical business in the demised premises. The use of oil,
gas or flammable liquids for heating, lighting or any other purpose is
expressly prohibited. Explosives or other articles deemed extra hazardous
shall not be brought in to the building.
12. Any painting or decorating as may be agreed to be done by and at the
expense of Landlord shall be done during regular working hours, should
Tenant desire such work done on Sundays, holidays or outside of regular
working hours, Tenant shall pay for the extra cost thereof.
13. Tenant shall not xxxx upon, paint signs upon, cut drill into, drive nails
or screws into, or in any way deface the walls, ceilings, partitions or
floors of the demised premises or of the building, and any defacement,
damage or injury caused by Tenant, its agents or employees, shall be paid
for by Tenant.
14. No parking is permitted in the alleys except for deliveries and workmen.
15. All requests for service, repair or other maintenance shall be made
directly to the office of Landlord.
16. Smoking is not permitted in any area of the building, including individual
offices.
17. Landlord shall at all times have the right, by its officer or agents, to
enter the demised premises to inspect and examine the same, and to show the
same to persons wishing to lease them, and may at any time within fifteen
days next preceding the termination of this tenancy, place upon the doors
and windows of the premises the notice "For Rent", which said notice shall
not be removed by Tenant.
18. Landlord reserves the right to make such other and further reasonable rules
and regulations as, in its judgment, may from time to time be needful and
desirable for the safety, care and cleanliness of premises and for the
preservation of good order therein.
