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Exhibit 10.16
COMMERCIAL LEASE AGREEMENT
This Commercial Lease Agreement ("Lease") is made and effective
April 1,
2007 by and between Bruce Building Company LLC ("Landlord") and
Ecology Coating,
Inc. ("Tenant").
WHEREAS, Landlord is the lessee pursuant to a lease between
landlord as
lessee and 950 Hunter Associates, Inc., as amended of 35980
Woodward Avenue,
Suite 200, Bloomfield Hills, Michigan 48304 (the "Leased
Premises");
WHEREAS, Landlord makes available for lease a portion of the
suite
designated as office no. 1, office no. 4, office no. 5, office
no. 6 and the
reception desk in common with Landlord;
WHEREAS, Landlord desires to lease the Leased Premises to
Tenant, and
Tenant desires to lease the Leased Premises from Landlord for
the term, at the
rental and upon the covenants, conditions and provisions herein
set forth.
NOW, THEREFORE, in consideration of the mutual promises herein,
contained
and other good and valuable consideration, it is agreed:
1. TERM.
A. Landlord hereby leases the Leased Premises to Tenant, and
Tenant hereby
leases the same from Landlord beginning April 1, 2007 and
continuing on a
month-to-month basis. Tenant shall provide Landlord with notice
of its intent to
vacate no less than thirty (30) days in advance. Landlord shall
provide Tenant
with notice of intent to terminate the Lease no less than thirty
(30) days in
advance.
2. RENTAL.
A. Tenant shall pay to Landlord installments of 3,200 per month.
Each
installment payment shall be due in advance on the first day of
each calendar
month during the lease term to Landlord at 35980 Woodward
Avenue, Suite 200,
Bloomfield Hills, Michigan 48304 or at such other place
designated by written
notice from Landlord or Tenant. The rental payment amount for
any partial
calendar months included in the lease term shall be prorated on
a daily basis.
3. USE
A. The Leased Premises shall be used for office purposes
only.
Notwithstanding the forgoing, Tenant shall not use the Leased
Premises for the
purposes of storing, manufacturing or selling any explosives,
flammables or
other inherently dangerous substance, chemical, thing or
device.
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4. SUBLEASE AND ASSIGNMENT.
A. Tenant shall have the right without Landlord's consent, to
assign this
Lease to a corporation with which Tenant may merge or
consolidate, to any
subsidiary of Tenant, to any corporation under common control
with Tenant, or to
a purchaser of substantially all of Tenant's assets. Except as
set forth above,
Tenant shall not sublease all or any part of the Leased
Premises, or assign this
Lease in whole or in part without Landlord's consent, such
consent not to be
unreasonably withheld or delayed.
5. REPAIRS.
A. During the Lease term, Tenant shall make, at Tenant's
expense, all
necessary repairs to the Leased Premises. Repairs shall include
such items as
routine repairs of floors, walls, ceilings, and other parts of
the Leased
Premises damaged or worn through normal occupancy, except for
major mechanical
systems or the roof, subject to the obligations of the parties
otherwise set
forth in this Lease.
6. ALTERATIONS AND IMPROVEMENTS.
A. Tenant, at Tenant's expense, shall have the right following
Landlord's
consent to remodel, redecorate, and make additions, improvements
and
replacements of and to all or any part of the Leased Premises
from time to time
as Tenant may deem desirable, provided the same are made in a
workmanlike manner
and utilizing good quality materials. Tenant shall not, however,
enact
structural changes to the Leased Premises or add moving walls.
Tenant shall have
the right to place and install personal property, trade
fixtures, equipment and
other temporary installations in and upon the Leased Premises,
and fasten the
same to the premises. All personal property, equipment,
machinery, trade
fixtures and temporary installations, whether acquired by Tenant
at the
commencement of the Lease term or placed or installed on the
Leased Premises by
Tenant thereafter, shall remain Tenant's property free and clear
of any claim by
Landlord. Tenant shall have the right to remove the same at any
time during the
term of this Lease provided that all damage to the Leased
Premises caused by
such removal shall be repaired by Tenant at Tenant's
expense.
7. PROPERTY TAXES.
A. Landlord shall pay, prior to delinquency, all general real
estate taxes
and installments of special assessments coming due during the
Lease term on the
Leased Premises, and all personal property taxes with respect to
Landlord's
personal property, if any, on the Leased Premises. Tenant shall
be responsible
for paying all personal property taxes with respect to Tenant's
personal
property at the Leased Premises.
8. INSURANCE.
A. If the Leased Premises or any other part of the Building is
damaged by
fire or other casualty resulting from any act or negligence of
Tenant or any of
Tenant's
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agents, employees or invitees, rent shall not be diminished or
abated while such
damages are under repair, and Tenant shall be responsible for
the costs of
repair not covered by insurance.
B. Landlord shall maintain, or cause to be maintained, fire and
extended
coverage insurance on the Building and the Leased Premises in
such amounts as
Landlord shall deem appropriate. Tenant shall be responsible, at
its expense,
for fire and extended coverage insurance on all of its personal
property,
including removable trade fixtures, located in the Leased
Premises.
C. Tenant and Landlord, or Landlord's landlord, shall, each at
its own
expense, maintain a policy or policies of comprehensive general
liability
insurance with respect to the respective activities of each in
the Building with
the premiums thereon fully paid on or before due date, issued by
and binding
upon some insurance company approved by Landlord, such insurance
to afford
minimum protection of not less than $1,000,000 combined single
limit coverage of
bodily injury, property damage or combination thereof. Landlord
shall be listed
as an additional insured on Tenant's policy or policies of
comprehensive general
liability insurance, and Tenant shall provide Landlord with
current Certificates
of Insurance evidencing Tenant's compliance with this Paragraph.
Tenant shall
obtain the agreement of Tenant's insurers to notify Landlord
that a policy is
due to expire at least (10) days prior to such expiration.
Landlord shall not be
required to maintain insurance against thefts within the Leased
Premises or the
Building.
9. UTILITIES.
A. Tenant shall pay all charges for water, sewer, gas,
electricity,
telephone and other services and utilities used by Tenant on the
Leased Premises
during the term of this Lease unless otherwise expressly agreed
in writing by
Landlord. In the event that any utility or service provided to
the Leased
Premises is not separately metered, Landlord shall pay the
amount due and
separately invoice Tenant for Tenant's pro rata share of the
charges. Tenant
shall pay such amounts within fifteen (15) days of invoice.
Tenant acknowledges
that the Leased Premises are designed to provide standard office
use electrical
facilities and standard office lighting. Tenant shall not use
any equipment or
devices that utilizes excessive electrical energy or which may,
in Landlord's
reasonable opinion, overload the wiring or interfere with
electrical services to
other tenants.
10. SIGNS.
A. Following Landlord's consent, Tenant shall have the right to
place on
the Leased Premises, at locations selected by Tenant, any signs
which are
permitted by applicable zoning ordinances and private
restrictions. Landlord may
refuse consent to any proposed signage that is in Landlord's
opinion too large,
deceptive, unattractive or otherwise inconsistent with or
inappropriate to the
Leased Premi
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