Exhibit 10.1
LEASE AGREEMENT
This Lease Agreement is hereby
executed by JH Realty LLC of Scottsdale, Arizona, hereinafter
referred to as “Lessor” and Spheric Technology, Inc.,
an Arizona corporation, hereinafter referred to as
“Lessee.”
Lessor hereby leases to Lessee the
property located at 4708 East Van Buren Street, Phoenix,
Arizona, 85008 (hereinafter “the property”) on the
following terms and conditions:
1. Term . This Lease shall be
for a term of three (3) years, commencing on November 15,
2004, but may be renewed by the Lessee as provided
herein.
2. Rent . The total rent to
be paid for the term of the lease shall be as follows:
Year 1 - $24,000.00
Year 2 - $24,000.00
Year 3 - $24,000.00
Each year’s rent shall be
payable in equal monthly installments of $2,000.00. Rent is due on
the fifteenth day of each month, beginning November 15, 2004
and if a payment is not made on or before the first day of the
following month, there shall be a 2% late charge in addition to the
monthly rental.
3. Use of Property . Lessee
agrees to accept the leased premises in their “as is”
condition. The parties acknowledge that the original intended use
of the premises is for office and laboratory space and residential
occupancy.
4. Repairs and Maintenance .
Lessee agrees to maintain the leased premises and other
improvements on the leased premises in as good condition as
presently exist and to make all repairs promptly when needed. At
termination of the Lease, the Lessee agrees to deliver the leased
premises to Lessor in as good condition as presently exists,
reasonable wear and tear excepted.
5. Utilities . The Lessee
shall pay all electric, water utility bills, and other utility
expenses for the leased premises.
6. Real Property Taxes and
Assessments . Lessor shall be responsible and shall pay all
taxes related to the subject property.
7. Alterations and
Improvements . Lessee shall not be authorized to make
alterations and improvements on the leased premises without the
prior written consent of the Lessor. The Lessee shall at all times
keep the leased premises free and clear of all liens and
encumbrances. In the event the tenant desires to expand the size of
any building or add buildings, the Lessee shall do so only upon
written approval of Lessor and the renegotiation of the rental on
the property and the increase in fire insurance
coverage.
8. Fixtures and Equipment .
Lessee is authorized to install fixtures and equipment for
operation of its business, but such fixtures and equipment shall be
installed in a manner which will not damage buildings or
structures. All such fixtures and equipment may be removed by
Lessee at the time of termination of the Lease, but Lessee agrees
to repair buildings in a good and workmanlike manner where any
fixtures or equipment have been removed.
9. Signs . Lessee shall be
authorized to install and maintain signs and lighting effects on
the exterior of the building in a good and workmanlike manner and
in conformity with the law and with the regulations of all public
authorities having jurisdiction.
10. Fire and Extended Coverage
Insurance . The Lessee shall obtain and pay premiums for fire
and casualty coverage insurance on the property, buildings and
facilities of the leased property in the amount of the appraised
value. The Lessor shall be named as an additional insured on said
policy, and a copy of said insurance policy shall be delivered to
the Lessor.
All proceeds which may be paid by
reason of any casualty loss related to the premises shall be paid
to Lessor except that, in the event Lessor should elect not to use
such insurance proceeds to restore the premises after a fire and
other casualty loss, then in such event Lessee shall be entitled to
such portion of such insurance proceeds as the insurance company
may determine to be allowable for damage or destruction of fixtures
installed by Lessee.
11. Restoration of Damaged
Improvements . If any part or all of the improvements on the
leased premises should be damaged or destroyed in whole or in part
by fire or other casualty, Lessee shall give prompt notice to
Lessor, and Lessor shall at its expense promptly repair such damage
and rebuild and restore the improvements, subject to such changes
as Lessee may reasonably request. All of the proceeds of the
insurance covering the premises shall be applied to such purposes.
Notwithstanding the foregoing, if improvements should be damaged to
such an extent that Lessor concludes that the improvements cannot
be restored within 120 days after such casualty or loss or that
such restoration will probably cost more than $10,000.00 in excess
of the insurance proceeds, or if such casualty loss occurs within
12 months of the end of the term of the Lease, then Lessor shall
have an option to refrain from making such restoration and
terminate the Lease as of the date of such casualty loss. Lessee
shall be entitled to a complete abatement of rent for the period
during which the entire premises are rendered unsuitable for its
uses. In the event only part of the improvements are rendered
unsuitable for use by Lessee, the rent for the period during which
such part is rende
