Exhibit 10.11
COMMERCIAL RENTAL
AGREEMENT
Note: This is a contract and should be referred
to when questions arise concerning tenancy.
THIS IS A COMMERCIAL RENTAL
AGREEMENT
This agreement, entered into on this
21 st day of April, 2000 , between
INNUITY, INC. a Minnesota Corporation , hereinafter
referred to as LESSEE or TENANT, and R.I.N.
Corporation , hereinafter referred to as LESSOR or OWNER,
and Mountain Real Estate & Property Management,
Inc., hereinafter referred to as the AGENT.
WITNESSETH that is consideration of performance
of the covenants contained herein, on the part of the Lessee, the
Lessor does hereby demise and let into the Lessee and the Lessee
hires from the Lessor, to be used and occupied by said Lessee as a
and for no other purpose, those certain premises known as N.
1425 Washington, Suites 200, 300, 301 through 310, and legally
described as approximately 12,745 square feet located on the second
and third levels of the Mountain View Profession Building, State of
Washington and Spokane County for real purposes, Spokane,
Washington together with the use of Storage unit
#109(1 st
floor) and the
basement storage room, for a term of Three (3)
years , beginning on the earlier of when the call center is
operable and open for business of July 1
st
,
2000 and
ending on the last day of June 2003 , both
dates inclusive, to be used for an internet customer service
center and/or other purposes, as agreed upon by Lessor and
Lessee, Lessors permission not to be unreasonably
withheld.
I. RENT
In consideration whereof, the Lessee agrees to
pay rent for said premises in the amount of $10,974.00
monthly, payable as follows: $10,974.00 upon
execution of this document, and $10,974.00 to be paid in
advance without any previous demand therefore on the first day of
each month during the first 12 months of this lease, at the office
of the Mountain Real Estate N. 9505 Division, Suite 102, Spokane,
WA, 99218. During the second and third year of the least rents
shall increase as below:
Months 13 through 24 – July
2001 thru June 2002 - $11,240.00
Months 25 through 36 – July
2002 thru June 2003 - $11,505.00
II. LATE CHARGE
If said rent is not paid in full by the 5
th
day of the month in
which it is due, a late charge equal to 10% of the monthly rent
payment shall, become immediately due and payable. If said payment
is received after the 5 th day of the month and does not
include the late charge, said late charge shall be deducted from
the Lessee’s Security Deposit and notice shall be directed to
the Lessee, informing them that the deducted amount is to be
forwarded to Lessor, or his Agent, along with the next months rent,
when due, to replace the amount deducted from the Security Deposit.
If said deposit is not replaced as above, a “3” Day
Notice to Pay Rent or Vacate Premises” shall be delivered to
Lessee.
III. OPTION TO RENEW
On the condition that the Lessee and their
successors in interest have at all times faithfully and punctually
performed all of the covenants and conditions of this lease on the
part of the Lessee to be performed, Lessor grants that Lessee has
the right to renew this lease to two (2) additional like terms at a
rental rate to be which will be set a $.25 per square foot
additional each year. Said rental rates shall commence on the first
day of July each year. To effect such option, Lessee must tender
written notification to Lessor of their intention to renew at least
sixty (60) days prior in the expiration date of the then current
least, by registered or certified mail. In the event that the
Lessee shall fail to give Lessor written notice of their election
to exercise their option for said renewal of the lose, as above,
such option shall become call and void and of no further force and
effect. Upon election of option, Lessee shall continue to tender
monthly payments as above required.
IV. LEGAL FEES
In the event of litigation between the parties
in connection with this Lease, the prevailing party shall be
entitled to reasonable attorney fees as fixed by the Court on which
such litigation is prosecuted.
V. DEPOSIT
The Lessee has deposited with the Lessor, or his
Agent, the amount of $21,948.00 to be credited as
follows:
First months rent,
$10,974.00.
Last months rent,
$10,974.00
Holding deposit,
Security Deposit,
VI. ASSIGNMENT OF LEASE
The Lessee is subleasing portions of the space
to other groups but shall not assign this lease, nor sublet the
premises or any part thereof, nor use the same, or any part
thereof, nor permit the same or any part thereof, to be used for
any other purpose than as stipulated above, nor make any
alterations therein, without written permission from the Lessor or
his Agent. Such permission shall not be unreasonably withheld. All
additions, fixtures or improvements which may be made by the
Lessee, except movable office furniture, shall become property of
the Lessor and remain on the premises as part thereof, and be
surrendered with the premises at the termination of this
lease.
VII. LIABILITY
All personal property placed on or moved in the
premises above described shall be at the risk of the Lessee or the
owner thereof, and the Lessor and/or his Agent shall not be liable
for any damage to said personal property, or to the Lessee, arising
from the bursting or leaking of water pipes, or from any act of
negligence of any co-tenant or occupants of the building, or of any
other person whomsoever. Lessor further recommends that the Lessee
purchase his own insurance policy to insure against such damage or
loss.
VIII. RULES & REGULATIONS
The Lessee shall promptly execute and comply
with all statutes and ordinance, rules, regulations and
requirements of the Federal, State and City Governments and of any
or all other departments or bureaus which may have jurisdiction
over said premises, for the correction, prevention, and abatement
of nuisances or other grievances, in, upon or connected with said
premises during said term.
IX. DESTRUCTION BY FIRE
In the event the premises shall be destroyed or
so damaged or injured by fire or other casualty during the life of
this agreement, whereby the same shall be rendered untenantable,
then the Lessor shall have the right to render said premises
tenantable by repairs within ninety (90) days therefrom. If said
premises are not rendered tenantable within said time, it shall be
optional with either party hereto, to cancel the lease, and in the
event of such cancellation, the rent shall be paid only to the date
of such fire or casualty. The cancellation herein mentioned shall
be evidenced in writing.
X. PROMPT PAYMENT
The prompt payment of the rent for said premises
upon the dates named, and the faithful observance of the rules and
regulations printed upon this lease, and which are hereby made part
of this covenant and of such other and further rules and
regulations as may be hereinafter made by the Lessor and agreed
upon by the Lessee, are the conditions upon which the lease is made
and accepted, and any failure on the part of the Lessee to comply
with the terms of said lease, or of any said rules and regulations
now in existence, or which may be hereinafter prescribed by the
Lessor, shall at the option of the Lessor, work a forfeiture of
this contract, and all rights of the Lessee hereunder, and
thereupon the Lessor, his Agents or Attorneys, shall have the right
to enter said premises and remove all persons therefrom, forcibly
or otherwise, and the Lessee expressly waives any and all notice
required by law to terminate tenancy.
Page 2
Lessee also waives any and all legal proceedings
to recover possession. aid premises, and expressly agrees that in
the event of a violation of any of said rules and regulations, now
in existence, or which may be hereinafter made, said Lessor, his
Agents or Attorneys, may immediately re-enter said premises and
dispossess Lessee without legal notice or the institution of any
legal proceedings whatsoever. If such default were to occur and
tenant abandons any personal property or business property on the
premises, the Lessor shall have the right to store such abandoned
property, at the expense of the Lessee, and if said properties are
not claimed by the Lessee after a period of 30 days, the Lessor
shall have the right to sell said abandoned property and apply such
proceeds to pay any or all deficiencies, after storage fees are
paid. In the event there are no deficiencies, the Lessor, or his
Agent, has the right to dispose of the property after a period of
30 days.
XI. VACATIONS
If the Lessee shall abandon or vacate the
premises before the end of the term of this lease, or shall suffer
the rent to be in arrears, the Lessor or his Agent may, at his
option, forthwith cancel this lease and he may enter said premises,
by force or otherwise, without being liable in any way therefore,
and relet the premises, with or without any furniture which may be
therein, at such price and upon such terms and for such a duration
of time as the Lessor may determine and receive the rent therefore,
applying the same to the payment of the rent due by those presents,
and if the full rental herein provided shall not be realized by the
Lessor, over and above the expenses to the Lessor in such
reletting, the said Lessee shall pay any deficiency, and if more
than the full rental is realized, the Lessor shall not be required
to pay such excess to the Lessee, but shall keep excess as
liquidated damages.
XII. TAXES AND INSURANCE
This lease is negotiated based upon the current
taxes and insurance costs at this property. Should costs of taxes
and insurance be increased during the renewal periods of this
lease, Lessor has the right and option to increase the monthly
rents a prorated portion of those increases equalling 37.8% of
those amounts divided by 12 months.
XIII. UTILITIES/SERVICES
City utility and Avista Utility invoices shall
be paid by the Lessor. Should costs of electricity, gas, and city
utilities be increased during the renewal periods of this lease,
Lessor has the right and option to increase the monthly rents a
prorated portion of those increases equalling 37.8% of those
amounts divided by 12 months. Janitorial service to be provided by
Lessor on a 3 day per week basis. A
