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EXHIBIT 10.1
M.D. PROPERTIES
Business Property Lease
THIS LEASE is entered into this
7th day of
January, 2004
, between M.D.
Properties, L.L.C. , Landlord, and
Gabriel Technologies,
LLC, Tenant.
PREMISES
1. Landlord leases
to Tenant at 4538 South 140th Street,
68137, Omaha, Douglas County. Nebraska.
(the "Premises"), containing approximately
10,356 square feet of’ area
as shown on Exhibit "A", on the following terms and
condition.
TERM
2. This lease shall
be for a term of 62 months ,
beginning on the first day
of February, 2004 and the work as hereinafter defined have
been completed to Tenant’s reasonable satisfaction by January
31, 2004, subject to Landlord’s completion of punch list
items described in Exhibit "C", and ending
on the 28th
day of February, 2009
, unless terminated earlier as provided in this
Lease.
If for any reason the Premises are delivered to
Tenant on any date
before or after the term commencement date, rental for the period
between the date of possession and the term commencement date shall
be adjusted on a pro rata basis. Such earlier or later taking of
possession shall not change the termination date of this Lease.
This Lease shall not be void or voidable in the event of a late
delivery by Landlord, nor shall Landlord be liable to Tenant for
any resulting loss or damage.
USE OF PREMISES
3. The Premises are
leased to Tenant, and are to be used by Tenant, for the purpose
of office, service and warehouse incidental to
Tenant’s business which is the selling, fulfilling and keying
of specia1ized locking systems and for no
other purpose. Tenant agrees to use the Premises in such a manner as to not interfere
with the rights of other tenants in the Real Estate, to comply with
all applicable governmental laws, ordinances, and regulations in
connection with its use of the Premises, to keep the Premises in a
clean and sanitary condition, and to use all reasonable precaution
to prevent waste, damage, or injury to the Premises.
RENT
4.(a) Base Rent.
The total Base Rent under this Lease is
Two Hundred
Sixty Nine Thousand, Two Hundred Fifty Six
and 00/100
Dollars ($269,256.00)
. Tenant agrees to pay rent to Landlord at
10612 Bondesson Circle, Omaha, NE 68122
, or at any other place Landlord may designate in
writing, in lawful money of the United States, in monthly
installments in advance, on the first (lay of each month, in the
following chart, which includes additional rental costs:
Amortization:
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Amount
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$ 25,000.00
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Term-months
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62
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Interest rate
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8.00%
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Monthly Pmt
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($493.61)
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|
|
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Gabriel Technologies
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4538 S. 140th Street
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5-year
term
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Square footage
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10,356
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|
|
|
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(Estimates)
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|
|
|
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Total
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# Mo.
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Base PSF
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TI Amount PSF
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CAM PSF
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Total Rent PSF
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Monthly
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Base Rent Only
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2/1/04 thru 3/31/04
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2
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$
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-
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$
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0.57
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$
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1.25
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$
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1.62
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$
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1,572.36
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|
$
-
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4/1/04 thru 3/31/06
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24
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$
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5.00
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$
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0.57
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$
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1.25
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$
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6.82
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$
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5,887.36
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$
103,560.00
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|
4/1/06 thru 3/31/08
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24
|
$
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5.25
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$
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0.57
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$
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1.25
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$
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7.07
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$
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6,103.11
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$
108,738.00
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4/1/08 thru 3/31/09
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12
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$
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5.50
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$
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0.57
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$
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1.25
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$
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7.32
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$
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6,318.86
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$
56,958.00
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Totals
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62
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$
269,256.00
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(b) Operating
Expenses . In addition to the Base Rent,
Tenant shall pay a pro rata share of operating expenses of the real
estate of which the Premises are part, parking areas, and grounds
("Real Estate"). "Operating expenses" shall mean all costs
of’ maintaining and operating the Real Estate, including but
not limited to all taxes and special assessments levied upon the
Real Estate, fixtures, and personal property used by Landlord at.
the Real Estate, all insurance costs, all costs of labor, material
and supplies for maintenance, repair, replacement, and operation of
the Real Estate, including but not limited to line painting,
lighting, snow removal, landscaping, cleaning, depreciation of
machinery and equipment used in such
maintenance, repair and replacement, and management
costs, including building superintendents. Operating Expenses shall
not: include property additions and capital improvements to the
real estate, alterations made for specific tenants, depreciation of
the Real Estate, debt: service on long-term debt: or income taxes
paid by Landlord.
"Tenant’s pro rata share" shall mean the
percentage (determined by dividing the square feet of the Premises
as shown in Paragraph 1, by the square feet of building area of the
Real Estate, as defined by the American National Standard published
by Building Owners and Managers Associations which at the date
hereof is agreed to be 29,708 square feet.
Tenant’s pro rata share of the Operating
Expenses shall be determined on an annual basis for each calendar
year ending on December 31 and shall be pro rated for the number of
months Tenant occupied the Premises if Tenant did not occupy the
Premises the full year. Tenant shall pay
$1,078.75 Dollars per month,
including February and March, 2004, during the period of waived
base rental, on the first of each month in
advance with rent for Tenant’s estimated pro
rata share of the Operating
Expenses, Landlord may change this amount at any time upon written
notice to Tenant. At the end of each year, an analysis of the total
year’s Operating Expenses shall be presented to Tenant and
Tenant shall pay the amount, if any, by which the Tenant’s
pro rata share of the Operating Expenses for the year exceeded the
amount of the Operating Expenses paid by Tenant. Tenant shall pay
any such excess charge to the Landlord within thirty (30) days
after receiving the statement. In the event this Lease terminates
at any time other than the last day of the year the excess
Operating Expenses shall be determined as of the date of
termination. Upon termination of this Lease, any overpayment of
Operating Expenses by Tenant shall be applied to the amounts due
Landlord from Tenant under this Lease and any remaining overpayment
shall be refunded to Tenant. Tenant may have the right, to audit
expenses.
(c) Payment
of Rent. Tenant agrees to pay the Base Rent as and when due, together
with Tenant’s share of the Operating Expenses and all
other’ amounts required to be paid by Tenant under this
Lease. In the event of nonpayment of any amounts due under this
Lease, whether or not designated as rent, Landlord shall have all
the rights and remedies provided in this Lease or by law for
failure to pay rent.
(d) Late Charge
. If the Tenant fails to pay the
Base Rent together with the Tenant’s share of the Operating
Expenses and all other amounts required to be paid by Tenant under
this Lease, on or before the third day after such payments are due,
Tenant agrees to pay Landlord a late charge of 5% of
the base rental amount for each month the
payment: is late.
(e) Security
Deposit . As partial consideration for the
execution of the Lease, the Tenant has delivered to Landlord the
sum of $4,315.00 as a
Security Deposit. The Security Deposit will be returned to Tenant
at the expiration of this Lease if Tenant has fully complied with
all covenants and conditions of
this Lease.
SERVICES
5. Tenant shall pay
when due, all water, gas, electricity, sewer use fees, incurred at
or chargeable to the Premises.
ASSIGNMENT OR SUBLEASE
6. Tenant shall not
assign this Lease or sublet the whole or any part of the Premises,
transfer this Lease by operation of law or otherwise, or permit any
other person except agents and employees of Tenant to occupy the
Premises, or any part thereof without the prior written consent of
Landlord. Landlord may consider the following in determining
whether to withhold consent: (a) financial responsibility of the
new Tenant, (b) identity and business character of the new tenant,
(c) nature and legality of the proposed use of the
Premises.
Landlord shall have the right to assign its
interest, under this Lease or the rent reserved
hereunder.
TENANT’S IMPROVEMENTS
7. Tenant shall have
the right to place partitions and fixtures and make improvements or
other alterations in the interior of the Premises at its own
expense. Prior to commencing any such work, Tenant shall first
obtain the written consent of Landlord for the proposed work.
Landlord may, as a condition to its consent, require that the work
be done by Landlord’s own employees and/or under
Landlord’s supervision, but at the expense of
Tenant, and that Tenant give
sufficient security that the Premises will be completed free and
clear of liens and in a manner satisfactory to Landlord. Any new
Tenant improvements done by Landlord will include a one year
warranty for material and labor. Upon termination of this Lease, at
Landlord’s option, Tenant will repair and restore the
Premises to its former condition, at Tenant’s expense, or any
such improvements, additions, or alterations installed or made by
Tenant, except Tenant’s trade fixtures, shall become part of
the Premises and the property of the Landlord. Tenant may remove
its trade fixtures at the termination of this Lease provided Tenant
is not then in default and provided further that Tenant repairs any
damage caused by such removal.
REPAIRS
8. Landlord agrees
to maintain in good condition, and repair as necessary the
foundations, exterior walls and the roof of the
Premises.
Tenant agrees that it will make, at its own cost.
and expense, all repairs and replacements to the Premises not
required to be made by Landlord, including, but not limited to, all
interior and exterior doors, door frames, windows, plate glass, and
the heating, air conditioning, plumbing and electrical systems
servicing the Premises. Tenant agrees to do all redecorating,
remodeling, alteration, and painting required by it during the term
of the Lease at its own cost
and expense, to pay for any repairs to the Premises
or the Real Estate made necessary by any negligence or carelessness
of Tenant or any of its agents or employees or persons permitted on
the Real Estate by Tenant, and to maintain
the Premises in a safe,
clean, neat, arid sanitary condition. Tenant shall be entitled to
no compensation for inconvenience, injury, or loss of business
arising ‘from the making of any repairs by Landlord, Tenant
or other tenants to the Premises or the Real Estate.
CONDITION OF PREMISES
9. Except as
provided herein, Tenant agrees that no promises, representations,
statements, or warranties have been made on behalf of Landlord to
Tenant respecting the condition of the Premises, or the manner of
operating the Real Estate, or the making of any repairs to the
Premises. A walk thru will be made before taking possession of the
Premises. Tenant will acknowledge that the Premises were in good
and satisfactory condition when possession was taken, except for
punch list items, which will be noted. Tenant shall, at the
termination of this Lease, by lapse of time or otherwise, remove
all of Tenant’s property and surrender the Premises to
Landlord in as good condition as when Tenant took possession,
normal wear excepted. Additionally, Landlord will construct or
install in the Premises the improvements according to the work
letter attached hereto, marked Exhibit "B" and "C", and by this
reference made a part hereof.
PERSONAL PROPERTY AT RISK OF
TENANT
10. All personal
property in the Premises shall be at the risk of Tenant only.
Landlord shall not be liable for any damage to any property of
Tenant or its agents or employees in the Premises caused by steam,
electricity sewage, gas or odors, or from water, rain, or snow
which may leak into, issue or flow into the Premises from any part
of the Real Estate,
or from any other place, on for any damage done to Tenant’s
property in moving same to or from the Real Estate or the Premises.
Tenant shall give Landlord, or its agents, prompt written notice of
any damage to or defects in water pipes, gas or warming or cooling
apparatus in the Premises.
LANDLORD’S RESERVED
RIGHTS
11. Without notice
to Tenant, without liability to Tenant for damage or injury to
properly, person or business, and without effecting an eviction of Tenant or a
disturbance of Tenant’s use or possession or giving rise to
any claim for setoff or abatement of rent, Landlord shall have the
right to:
(a) Change the name
or street address of the Real Estate.
(b) Install and
maintain signs on the Real Estate.
(c) Have access to
all mail chutes according to the rules of the United States Post
Office Department.
(d) At reasonable
times, to decorate, and to make, at its own expense, repairs,
alterations, additions, and improvements, structural or otherwise,
in or to the Premises, the Real Estate, or part thereof, and any
adjacent building, land, street or alley, and during such
operations to take into and through the Premises or
any part of the Real Estate
all materials required, and to temporarily close or suspend
operation of entrances, doors, corridors, elevators, or other
facilities to do so; provided that Landlord shall not interfere
with Tenant’s business operations.
(e) Possess passkeys
to the Premises for emergency access during non-normal business
hours.
(f) Show the
Premises to prospective tenants at reasonable times, during the
last six (6) months of the Lease.
(g) Take any and all
reasonable measures, including inspections or the making of
repairs, alterations, and additions and improvements to the
Premises or to the Real Estate, which Landlord deems necessary
or’ desirable for the safety, protection, operation, or
preservation of’ the Premises or the Real Estate.
(h) Approve all
sources furnishing signs, painting, and/on lettering to the
Premises, and approve all signs on the Premises prior to
installation thereof.
(i) Landlord will warrant HVAC systems for
the first 12 months of the initial lease term.
INSURANCE
12. Tenant shall not
use or occupy the Premises or any part thereof in any manner which
could invalidate any policies of insurance now or hereafter placed
on Real Estate or increase the risks covered by insurance on the
Real Estate or necessitate additional insurance premiums or
policies of insurance, even if such use may be in furtherance of
Tenant’s business purposes. In the event any policies of
insurance are invalidated by acts or omissions of Tenant, Landlord
shall have the right to terminate this Lease or, at
Landlord’s option, to charge Tenant for extra insurance
premiums required on the Real Estate on account of the increased
risk caused by Tenant’s use and occupancy of the
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