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EXHIBIT 10.2
GREATER DALLAS ASSOCIATION OF REALTORS(R), INC.
SHORT FORM COMMERCIAL LEASE
State of Texas
County of ▇▇▇▇▇▇▇
This lease agreement made and entered into by and between
▇▇▇▇▇ ▇▇▇▇
▇.▇. ▇▇▇ ▇▇
▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
(hereinafter referred to as "Landlord"), and
Global Election Systems, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
(hereinafter referred to as "Tenant");
WITNESSETH:
Landlord hereby leases to Tenant, and Tenant hereby takes from Landlord the
following described premises situated within the County of ▇▇▇▇▇▇▇, State of
Texas:
5,000sf metal building located on ▇▇▇▇▇▇▇ ▇▇, ▇▇▇▇ side service road near FM 121
in Van Alstyne, Texas
together with all the rights, privileges, easements and appurtenances belonging
to or in any way pertaining to the demised premises for a term of one year
beginning the 1st day of August, 1999, and ending the 31st day of July, 2000,
to be occupied as warehouse space and not otherwise, paying therefor the sum of
Eighteen thousand and no/100-------------------- ($1500.00/month) ($18,000.00)
Dollars, payable upon the conditions and covenants following:
1. Each year during the term of this lease, Landlord shall pay real estate
taxes assessed against the demised premises in an amount equal to the total real
estate taxes assessed against the demised premises in the base year. Each year
during the term of the lease, Tenant shall pay as additional rental, upon
receipt of statement from landlord along with tax statements or verification
from proper authority, his pro rate share of any increase in real estate taxes
over the base year on the property of which the demised premises form a part.
Any increase in real estate taxes for a fractional year shall be prorated. The
base year shall be 1999. Tenant shall also pay all charges for utility services
to the demised premises.
2. Failure of Tenant to surrender the demised premises at the expiration
of the lease constitutes a holding over which shall be construed as a tenancy
from month to month at a rental of $2,500.00 per month.
3. Rent shall be paid in ▇▇▇▇▇▇▇ County, Texas, monthly in advance as the
same shall become due.
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4. Tenant has examined and accepts the premises, building, and each
appurtenance thereto in their present condition as suitable for the purposes for
which the same are leased, and agrees to accept the premises regardless of
reasonable deterioration between the date of this lease and the date Tenant
begins occupying the premises.
5. Landlord shall maintain in good repair the roof, foundation and
exterior walls of the building. Tenant agrees to give Landlord written notice of
defects and need for repairs of the roof, foundation or exterior walls. Landlord
shall not be liable to Tenant for damage caused by the premises being or
becoming out of repair until it has been notified of the necessity of repair by
the Tenant and has had reasonable opportunity to repair the same.
6. Tenant shall maintain the premises and equipment, including plate
glass, store front and entrances. Tenant shall, at its expense, keep the
interior of the building, including the plumbing, closets, pipes, fixtures and
air conditioning equipment, if any, in good repair and shall keep water pipes
and connections free from ice and other obstructions. Tenant shall take good
care of the premises and its fixtures and suffer no waste. If Tenant leases an
entire building unit, Tenant shall be responsible for keeping the roof clean and
downspouts open.
All alterations, additions and improvements, except trade fixtures and air
conditioning and heating equipment installed at expense of Tenant, shall become
the property of Landlord and shall remain upon and be surrendered with the
premises as a part thereof on the termination of the lease.
No cooling tower, equipment, or structure of any kind shall be placed on
the roof of the leased premises by Tenant without prior written permission of
Landlord. If such permission is granted, such work or installation shall be done
at Tenant's expense and in such a manner that the roof shall not be damaged
thereby. If it becomes necessary to remove such cooling tower, equipment or
structure, temporarily, so that repairs to the roof can be made, Tenant shall
promptly remove and reinstall the cooling tower, equipment or structure at
Tenant's expense and repair at Tenant's expense any damage resulting from such
removal or reinstallation. Upon termination of this lease, Tenant shall remove
or cause to be removed from the roof any such cooling tower, equipment or
structure, if directed to do so by Landlord or Landlord's agent. Tenant shall
promptly repair at its expense any damage resulting from such removal.
At the termination of this lease, Tenant shall deliver the premises in
good order and condition, natural deterioration and damage by fire, or other
casualty only excepted. Any damage caused by the installation or removal of
Tenant's equipment, trade fixtures, air conditioning and heating equipment,
shall be repaired at Tenant's expense prior to the expiration of the lease term.
All alterations, improvements, additions and repairs made by Tenant shall
be made in a good and workmanlike manner.
7. Tenant shall comply with all ordinances of the municipal corporation or
other governmental authority applicable to such premises because of Tenant's use
of the premises. Tenant, at its expense, shall comply with all orders and
requirements imposed by such governmental authorities during the term of this
lease.
8. Tenant shall not assign this agreement or sublet the premises or any
part thereof or make any improvements or alterations in or to the demised
premises without the prior written consent of Landlord, which consent shall not
be unreasonably withheld. Tenant shall not occupy or allow the premises to be
occupied for any business or purpose deemed extra hazardous because of the
threat of fire or otherwise. If consent is granted to assign or sublet the
premises, Tenant shall remain principal obligor for the fulfillment of each and
every condition of this lease. If consent is granted for the making of
improvements or alterations to the premises, such improvements and alterations
shall not commence until Tenant has furnished to Landlord a certificate of an
insurance company showing coverage in an amount satisfactory to Landlord and
protecting Landlord from liability for injury to any person and damage to any
personal property, on or off the premises, in connection with the making of such
improvements or alterations.
9. In the event the demised premises are partially damaged or destroyed or
rendered partially unfit for occupancy by fire or tornado or other casualty,
Tenant shall give immediate notice to Landlord who may repair the damage and
restore the premises to substantially the condition in which they were
immediately prior to the occurrence of the casualty. Such repairs shall be made
at Landlord's expense. Landlord shall Tenant a fair reduction of rent during the
time the premises
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are partially unfit for occupancy. If the premises are totally destroyed or
deemed by the Landlord to be rendered wholly unfit for occupancy by fire,
tornado or other casualty, or if the Landlord shall decide not to repair or
rebuild, this lease shall terminate and the rent shall be paid to the time of
such destruction or casualty.
10. If Tenant defaults in the performance of any obligations or covenants
herein, Landlord may enforce the performance of this lease in any mode provided
by law. This lease may be terminated at Landlord's discretion if such default
continues for a period of 10 days after Landlord notifies Tenant of such default
and of its intention to declare the lease terminated. Such notice shall be sent
by Landlord to Tenant at the demised premises by mail or otherwise. If Tenant
has not completely removed or cured default within the 10 day period, this lease
shall terminate. Thereafter, Landlord or its agents shall have the right,
without further notice or demand, to enter the premises and remove all persons
and property therefrom without being deemed guilty of trespass and without
waiving any other remedies for arrears of rent or breach of covenant. Landlord
or Landlord's agents may resume possession of the premises and relet the same
for the remainder of the term at the best rent obtainable for the account of
Tenant, who shall make good any deficiency.
11. Landlord and its agents shall not be liable to Tenant or to Tenant's
employees, patrons, visitors, invitees, or any other persons for any injury to
any such persons or for any damage to personal property caused by any act,
omission, or neglect of Tenant or Tenant's agents or of any other tenant of the
premises of which demised premises are a part. Tenant agrees to indemnify and
hold Landlord and its agents harmless from any and all claims for such injury
and damage, whether the injury occurs on or off the demised premises.
12. Tenant shall not post or paint any signs at, on or about the premises
or paint the exterior walls of the building except with the prior written
approval of the Landlord. landlord shall have the right to remove any sign or
signs in order to paint the building or premises or to make any repairs or
alterations.
13. If Landlord herein is not the owner of the demised premises, but holds
the property by virtue of another lease, then this sublease is and shall remain
subject to all terms and conditions of such existing lease of the Landlord so
far as they shall be applicable to the demised premises.
14. If Tenant becomes bankrupt or makes a voluntary assignment for the
benefit of creditors or if a receiver is appointed for Tenant, Landlord may
terminate this lease by giving five (5) days written notice to the Tenant of its
intention to do so.
15. If the whole or any substantial part of the demised premises is taken
for any public or quasi-public use under any governmental law, ordinance or
regulation or by right of eminent domain or should the premises be sold to a
condemning authority under threat of condemnation, this lease shall terminate
and the rent shall be abated during the unexpired portion of the lease effective
from the date of the physical taking of the premises.
16. Landlord agrees to pay the within named Principal REALTOR(R) a
commission in cash equal to Four and one-half percent (4.5%) per cent of the
total gross rental for negotiating this lease, payable as per agreement with
Owner. If any options are granted to Tenant, Landlord agrees to pay to Principal
REALTOR(R) an additional commission on the date such options are exercised by
Tenant, even if with changes. Should the term of the primary lease be for a
shorter period than five (5) years, Landlord agrees to pay an additional
commission on all hold-overs, renewals, new leases or rental agreements made by
Landlord with Tenant relative to Tenant's first five year occupancy of the
demised premises from this date. The commission due for each renewal will be
calculated as if a new lease had been made for such period of time. If the
premises are sold to the Tenant during the term of this lease or any renewal or
extension thereof, or within 180 days following the expiration date of this
lease, or any renewal or extension, Landlord will pay to Principal
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REALTOR(R) a sales commission in cash equal to 4.5 (4.5%) per cent of the
selling price of said property. All commissions are payable in ▇▇▇▇▇▇▇ County,
Texas.
If this lease is assigned or the premises are sold prior to the
termination of this lease, Landlord, its assigns, successors, and heirs shall be
jointly and severally liable for all REALTOR(R)'S commissions due or to become
due hereunder. Landlord will not transfer, convey or sell the premises without
specific written agreement with the purchaser that all commissions due or to
become due will be paid to Principal REALTOR(R) when due by purchaser in
connection with existing leases on the premises at the time the sale occurs.
If, on account of any breach or default by any party hereto in his or its
obligation to Principal REALTOR(R), it shall become necessary for Principal
REALTOR(R) to employ an attorney to enforce or defend any of Principal
REALTOR(R)'S rights or remedies hereunder and should Principal REALTOR(R)
prevail, such parties agree to pay Principal REALTOR(R) reasonable attorney fees
in connection herewith.
17. No waiver by Landlord of any default or breach of any term, covenant,
condition, agreement, provision, or stipulation herein contained shall
constitute a waiver of any subsequent default or breach of the same or any other
term, covenant, condition, agreement, provision or stipulation hereof.
18. This lease constitutes the full and final expression of the agreement
between the parties and it may not be amended except by written instrument
signed by all the parties.
19. SPECIAL CONDITIONS:
19.1 Tenant shall be responsible for electric utility payment for
building.
19.2 Tenant shall be responsible for propane expense associated with
heating located in warehouse.
19.3 Provided Tenant is not in, nor has been in default, tenant to have
right to vacate property on January 31, 2000. Should tenant exercise
the option to vacate property, tenant to pay landlord $3000.00 prior
to vacating property.
19.4 Tenant to notify landlord in writing of intent to vacate property,
should tenant exercise such option, no later than thirty days prior
to January 31, 2000.
19.5 Upon execution of lease agreement by tenant, tenant to pay security
deposit of $1500.00 to Landlord.
19.6 Landlord to deliver property free of roof leaks.
19.7 Landlord to deliver property with HVAC system in good working
condition at time of occupancy.
19.8 Landlord to remove debris from West side of building.
19.9 Landlord to remove paving machine from South side of building.
19.10 Landlord to deliver property with toilets and plumbing system in
good working condition at time of occupancy.
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EXECUTED the 6th day of August, 1999
LANDLORD: ▇▇▇▇▇ ▇▇▇▇
▇.▇. ▇▇▇ ▇▇
▇▇▇▇▇▇: ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
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By
owner
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Title
TENANT: GLOBAL ELECTION SYSTEMS, INC.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇: ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇ ▇▇▇ ▇▇▇▇
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By
President
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Title
REALTORS(R)
▇▇▇▇▇ ▇▇▇ COMPANY
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Principal REALTOR(R), Member of the
GREATER DALLAS BOARD OF REALTORS(R), INC.
RUS
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By
N/A
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Cooperating REALTOR(R)*
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By
* NOTE: If this lease agreement is negotiated by Principal REALTOR(R) in
cooperation with another REALTOR(R), Landlord shall be liable for payment of al
commissions to Principal REALTOR(R) only, whereupon it shall be protected from
any claims from said Cooperating REALTOR(R).