LEASE AGREEMENT
This agreement, made and entered into this 1" day of June, 2000, by and between
Xxxxxxx X. Xxxx and Xxxx X. Xxxx, hereinafter referred to as Lessor, and Prime
Companies, Inc., having principal offices at 000 Xxxxxx Xx., Xxxx Xxxx, XX
00000, hereinafter referred to as Less.
WITNESSETH, that the said Lessor does by these presents lease and demise unto
said Lessee the following described property being situated in the City of Yuba
City in the County of Suffer, and the State of California:
DESCRIPTION OF THE PREMISES: Lessor leases to Lessee and Lessee leases from
Lessor a certain portion, equating to approximately 2240 square feet, of the
building located at 000 Xxxxxx Xxxxxx, in the City of Yuba City, County of
Suffer, State of California.
Terms: Lessor leases to the tenants the described real property for the term of
three (3) years from the 1st day of June, 2000 to the 31st day of May, 2003.
Rental: Lessee agrees to pay rent for the premises as follows:
(A) Rent payments in the amount of One Thousand Six Hundred Eighty Dollars
($1680.00) will be due the first of each month for the duration of the lease.
Conditions and Covenants:
1. That Lessee will pay said rents in manner and form hereinbefore specified
and will quietly deliver said premises on the day of the expiration of this
lease, and in as good condition as the same were in when received, except
for reasonable wear and tear.
2. That said promises shall be used for general office space in connection
with telecommunications.
3. Utility Charges: Lessee agrees to pay a prorate amount for Power and Gas.
Lessee agrees to pay for 100 per cent of telephone service. Lessor agrees
to provide water and garbage service. Less agrees to pay a prorate share of
the real property taxes assessed to land and buildings situated at 000
Xxxxxx Xxxxxx, Xxxx Xxxx, XX. Prorate amounts will be based on 2240 square
feet occupied by Prime Companies, Inc.
4. Destruction: If, during the term, the premises are totally or partially
destroyed from any cause, rendering the premises totally or partially
inaccessible or unusable, Lessor shall restore the premises to
substantially the same condition they were in immediately before
destruction If the restoration can be made under the existing laws and can
be completed within ninety (90) working days after the date of destruction.
Such destruction shall not terminate this Lease.
If the restoration cannot be made in the time stated in the Destruction
paragraph, then within fifteen (15) days after the parties determine that
the restoration cannot be made within the time stated in the Destruction
paragraph, Lessee can terminate this Lease immediately by giving notice to
the Lessor. If Lessee falls to terminate this Lease, and if at its
election, can ether terminate this Lease or restore the premises within a
reasonable fine, then this Lease shall continue in full force and effect.
If the existing laws do not permit the restoration, either party can
terminate this Lease immediately by giving notice to the other party.
Uncovered Destruction: If, during the term, the premises are totally or
partially destroyed from risks not covered by insurance described in this
Lease, rendering the premises totally or partially inaccessible or
unusable, Lessor shall have the option to either restore the premises to
their original condition or terminate the Lease.
Abatement of Rent: In case of destruction there shall be an abatement or
reduction of rent between the date of destruction and the date of
completion or restoration based on the extent to which the destruction
interferes with the Lessee's use of the premises.
5. Lessor agrees to permit the Lessee to peaceably and quietly have, had and
enjoy the use of the premises for the purpose and for the term aforesaid.
6. The maintenance and repair of the leased premises shall be as follows:
(A) Lessor shall maintain and keep in good repair the roof, outside walls,
foundation, sidewalks and drainage of the leased premises.
(B) Repairs to interior walls and ceilings, heating, plumbing, electrical
wiring and its operation, when: same becomes necessary through fair
wear and tear of through circumstances beyond the control of Lessee
shall be an obligation of the Lessor.
7. In the event Lessor shall break a clause in this Lease, omits to undertake
what is stated he will undertake, or acts in a manner in which the Lease
states he shag not act, Lessee's sole remedy for the failure of Lessor to
maintain the building shall be to institute suit. Lessee shall not have the
right to withhold from future rent any sum that Lessee has expended on
behalf of the Lessor.
Lessee, at its cost shall maintain, in good condition, all portions of the
premises. including, without limitation, all Lessees' personal property,
signs, store fronts, plate glass, and show windows.
8. Lessee agrees to indemnify and hold harmless Lessor for any risk of loss,
injury or damage of any kind or nature that results from the negligence or
knowledge of Lessee.
9. Notwithstanding anything to the contrary contained elsewhere in the
Agreement, it is expressly understood and agreed between the parties hereto
the Lessee is granted an option to cancel this Lease upon thirty (30) days
written notice to Lessor at any time prior to the stated maturity of the
Lease. In the event Lessee exercises said option prior to maturity of said
Lease, then Lessee shall pay to Lessor as liquidated damages a sum
equivalent to two months rent and a termination fee of Two Thousand dollars
($2000).
Upon Payment of aforesaid sums, Lessor shall hold harmless and relieve
Lessee from any further liability or obligation under this agreement.
10. If this lease reverts to a month to month agreement upon expiration of the
lease term, then a ninety (90) day notice by either party would be required
to terminate this agreement. Upon expiration of the ninety (90) day period,
the Lessee agrees to vacate the premises. All other terms and conditions of
the original Lease would remain in effect during this month to month
agreement.
11. Alterations: Lessee shell not make any alterations to premises without the
Lessor's consent, including signs. Any alterations made shall remain on and
be surrendered with the premises on expiration or termination of the term.
If Lessee makes any alterations to the premises as provided in the
Alterations paragraph, the alterations shall not be commenced until two
days after Lessor has received notice so that Lessor can post and record an
appropriate note of non-responsibility.
12. Signs: Lessee at its own cost shall have the right to place, construct and
maintain an exterior sign, advertising its business on the premises. Prior
to installation of any signs, Lessee must first obtain -approval from
Lessor.
Any sign the Lessee places, constructs and/or maintains shall comply with
all laws, and Lessee shall obtain any approval required by law. Lessor
makes no representation with respect to Lessee's ability to obtain such
approval.
13. Attorney's Fees: If either party commences any action against the other
party arising out of or in connection with this Lease, the prevailing party
shall be entitled to have and recover from the losing party reasonable
attorney's fees and costs of suit, including fees and costs incurred in the
event of an appeal.
14. Public Liability and Pro Damage Insurance: Lessee, at its own rest, shall
maintain public liability and properly damage insurance with liability
limit of not less $500,000.00 per occurrence, and property damage limits of
not less than $500,000.00 per occurrence, insuring against all liability of
Lessee and its authorized representatives wising out of and in connection
with Lessee's use or occupancy of the premises. All public liability
insurance and property' damage insurance shall insure performance by Lessee
of the indemnity provisions of the paragraph contained in this Lease
entitled "indemnity"'. Both parties shall be named as coinsureds, and the
policies shall contain cross-liability endorsements.
Indemnity: Lessee agrees that it will indemnify and save Lessor harmless
from any and all liability, damage, expense, cause of action, suits,
claims, or judgements arising from injury to persons or property on the
leased premises, which arise out of the act, failure to act, or negligence
of the Lessee, its agents, or employees, whether said claim, lawsuit, or
judgement is founded or unfounded. The Lessee's obligation under this
paragraph to indemnify and hold the Lessor harmless shall not be limited to
the sum that equals the amount of any insurance proceeds, if any, received
by the parties being indemnified.
IN WITNESS WHEREOF, the said panties have hereunto set their hands the day
and year above written.
LESSOR: XXXXXXX X. AND XXXX X. XXXX LESSEE: PRIME COMPANIES, INC.
BY: /s/ Xxxxxxx X. Xxxx BY: /s/ Xxxxxxx X. Xxxx
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Xxxxxxx X. Xxxx Xxxxxxx X. Xxxx
Date: 5/31/00 Date: 5/31/00
