Exhibit 10.16
COMMERCIALLEASEfor2247FederalBlvd.Denver,CO80211
Parties:
This Commercial Lease Agreement (“Lease”) is entered into between MassRoots, Inc. and CannaBuild, LLC. (“Lessee”) and individually Isaac Dietrich and Zach Marburger (“Lessee”), whether one or more, and 2247 FEDERAL BOULEVARD, LLC. ("Lessor"). Each Lessee is jointly and severally liable for the payment of rent and performance of all other terms of this Agreement.
Premises:
LessorrentstoLessee,andLesseerentsfromLessorthefollowingdescribedpremises, initspresentstate andcondition,situatedat 2247 FederalBvd.in theCountyofDenver,State ofColorado.
Lessee'sAccessTo Premises:
UpontheexecutionofthisLease,LessorgrantstoLessee,Lessee'semployees,agentsandinviteesaccess toandfromthepremisesownedbyLessorandtouse those partsofthe buildingand property designatedbythisLeasefor useby Lessee.
Term:
ThetermofthisLeaseisforoneyear,commencingonthe23rddayofJuly2014and expiringonthe 22"d
dayofJuly,2015,unlessrenewedorextended pursuanttothetermsherein.
Use:
Lesseeshalluseandoccupythepremiseforthepurpose ofofficespace. Lesseecovenants:
| a. | Nottouse thepremises forlivingquartersorresidence. |
| b. | SurrenderthepremisestoLessorattheendoftheTermoranyrenewalperiodwithoutthe necessityof any notice fromeither Lessor orLessee to terminatethesame, andLessee hereby expressly waives all right to any notice respecting said surrender ofpremises. |
| c. | Lesseewill keepthepremisesclean,sanitaryandingoodconditionand,upon terminationofthe tenancy,returnthepremisestoLessorin acondition identical to thatwhichexistedwhenLesseetookoccupancy, except forordinarywearandtear andany additions oralterations authorized by Lessor. |
| d. | Tokeep thepremisesingoodrepairatLessee'sownexpensewiththeexceptionofthose repairs specificallydesignated asLessor'sresponsibility herein. |
| e. | Not tomake anyoccupancyoftheLeasedPremisescontrarytolaworcontraryto anydirections, rules, regulations,regulatory bodies, or officials havingjurisdictionorwhichshall beinjuriousto any person or property. |
| f. | Nottopermitanywasteor nuisance. |
| g. | Lesseeshallkeepthesidewalks, ifany,infrontof oradjoiningthe premisesclean,inacceptable appearance andsanitarycondition. |
Notwithstandingtheforgoing,Lesseeshallnotusethepremisesforthepurposesofstoring,manufacturing orsellinganyexplosives,flammablesorotherinherentlydangerous substance,chemical,thingor device.
Lessor's Responsibilityfor Repairs:
Allrepairs,exceptthosestipulatedbelow,whicharetheresponsibilityofLessor,shallbemadebyLesseeatLessee'sown expense. Ifthe Lessor pays forthe same oranypart thereof,such paymentshall constitute
AdditionalRent,ashereinafterdefmed,andpayablebyLesseeunderthisLease,duefromLesseetoLessor atthenextrentdayafter anysuch payment.
Lessorshallberesponsibleformakingonlythefollowingrepairsandgeneralmaintenance:(checkallthat apply)
• Theroofoverthepremises.
• Structuralrepairstoexteriorwalls;structuralcolumnsandstructuralfloors,whichcollectively
enclosethepremises..
•Heating,VentilationandAirConditioningsystems,if,andtotheextentinstalledbyLessor.
HazardousMaterial:
Lesseeherebyindemnifies andholdsLessorandLessor'sofficers,directors,shareholders,managers, members,agentsandemployeesharmlessfromandagainst,andshallreimburse LessorandLessor's officers, directors, shareholders, managers,members, agents and employees for, any and all"Losses" (as hereinafter defined) arisingfrom, outofor asa consequence, directly or indirectly, of the release or presence of any HazardousMaterials on the premises which first occursduring the Termof this Lease, whether foreseeable or unforeseeable, and whether or not known to Lessee, it being understood and agreed thatthe foregoing indemnity includes, but is not limited to, all costs of removal, remediation of any kind, detoxification,clean upand disposal of suchHazardous Materials and thepreparation ofanyclosureor other required plans, all costsofdeterminingwhetherthepremises isin compliance and causing the premises to bein compliancewith allapplicable Environmental Laws, allcosts and fees associated with claimsfordamagestopersons, property,or natural resources, and Lessor's reasonable attorneys' fees and consultants' fees and court costsin respect thereto whether or not litigation or administrative proceedings shall occur, including all costs and expensesincurred or suffered by Lessorby reason of any violation of any applicable Environmental Lawwhichoccurs, or hasoccurred, upon thepremises during the Term of thisLease, orbyreason oftheimposition ofanygovernmentallien for therecoveryof environmental clean-up costs expended by reason of such violation, itbeing expressly understood and agreed that to the extent Lessor and Lessor's officers, directors,shareholders, managers, members,agents and employees,or any of them are strictly liable under any applicable statute or regulation pertaining to the protection ofthe environment,thisindemnity shall likewise be without regard to fault on thepart of Lesseewithrespect to theviolation oflaw which resultsin suchliability. "Losses"shall mean anyand all loss, claim, liability, damages,injuries toperson, property ornatural resources, cost,expense, action or cause of action.
LesseeherebycovenantsandagreesthatallobligationsofLesseeunderthisSectionshallsurviveanyterminationoftheLease,itbeingfurther understood and agreed that the rights of Lessor under this Section shall bein addition to any other rights and remedies under this Lease or at lawor in equity.
LesseeshallcomplywithallEnvironmental LawsthroughouttheTerm
PaymentofRent:
LesseewillpaytoLessoranannualrentalof$41,400.00Dollars,payableinequal installments of
$3450.00Dollars(the"rent")inadvanceonthefustdayofeachmonth,exceptwhen that dayfallsona
weekendoralegalholiday,inwhichcaserentisdueonthenextbusiness day.
Lesseecovenantstopaytherentwhendueandpayable,without any setoff, deduction or priordemand whatsoever. Any payment by Lessee or acceptance by Lessor of alesser amount than shallbe due from Lessee to Lessor shall be treated as payment on account. Theacceptance by Lessor of acheck, or other instrument, for a lesseramount with an endorsement orstatement thereon, or uponany letteraccompanying such check orotherinstrument, that suchlesser amount is payment in full, shallbe given no effect,andLessor may acceptsuch checkor other instrument withoutprejudice to any other rights or remedies whichLessor mayhave against Lessee.
RentwillbepaidinthefollowingmannerunlessLessordesignatesotherwise: Rentshallbeplacedindrop boxlocatedat2247FederalBlvd.Denver80211
Prorated FirstMonth'sRent:
FortheperiodfromLessee'smove-indateorbeginningdateofthisagreement,whicheverisearlier, throughtheendofthe month, Lessee will pay to Lessor a prorated monthly rent $890.32. This amount will be paid onor before the date the Lessee moves in.
ReturnedCheckandStopPayment:
Ineachinstance thatacheckorotheracceptableinstrumentofferedbyLesseetoLessorforanyamount dueunderthis Agreement or in paymentof rent is returned for lackof sufficient funds, a "stop payment" or anyother reason,a service chargeof $50.00,whichdoes not exceedthe maximumamountallowed by applicable Coloradolaw, will be assessed.
LateCharges:
IfLesseefailstopaytherentinfullbeforetheendofthe3rddayafterit'sdue, Lesseewillbeassesseda latechargeof$50.00,and$50.00 everyadditionaldayafterthefourthday, for the handlingof such late payment, asallowed byapplicable Coloradolaw. Lessorreserves andinnowaywaives therighttoinsist on payment of the rentinfull on the date itisdue.This latepaymentcharge isinaddition to anyother rights orremedies ofthe Lessor.
Utilities:
UnlessotherwiseprovidedinthisLease,allapplicationsandconnectionsfornecessaryutilityserviceson thedemisedpremisesshallbemade inthe nameof Lesseeonly.In addition, unlessotherwiseprovidedin this Lease, Lessee shall be solely liable for utility charges as they becomedue, includingthose for gas, electricity, and telephoneservices, except for the following, which will be paid byLessor:water,sewer, andtrash.
IntheeventLesseefailstopayutilitiesasdue,Lessorhastherighttoenforceandshallenforce paymentin thesame manneras in rentin arrears or default.
Lessee'sExaminationandAcceptanceofPremises:
LesseeacknowledgesthatLesseehas examinedthepremisesandLessee'sacceptanceofthisagreementis conclusiveevidencethatsaidleasedpremises areingoodandsatisfactoryorder andrepairunless otherwise specified herein;and Lesseeagrees that no representations as to the conditionof the premises have been madeandthat no agreement hasbeen made to redecorate,repair or improve thepremises unless hereinafter set forth specifically in writing. Lessor will deliver the leased premises and all common areas in a habitable condition,pursuanttoapplicablestate law. Lesseetakespremises initsAS-IS condition. Lessee agreesnotto damagethepremises through any act or omission,and to beresponsiblefor any damages sustained throughthe acts or omissions of Lessee,Lessee's employees or Lessee's invitees, licensees,and/or guests. Ifsuch damages areincurred,Lesseeis requiredto payforanyresultingrepairs at thesame time and in additionto the next month'srent payment,with consequencesfor nonpayment identical to those for nonpayment ofrent describedherein.
SecurityDeposit:
UponexecutionofthisLease,LesseewilldepositwithLessorthesumof$3450.00Dollars("Security Deposit")assecurityfor theperformance of Lessee's obligations under thislease,including without limitationthesurrender of possession of the premises toLessor as herein provided. It is expressly understood that the Security Deposit shall not be considered anadvancepayment of rental or ameasureofLessor's damages in case of default by Lessee.
TheSecurityDepositshallbeheld,appliedtodamagesorrentandreturnedtoLesseeallinaccordance with the laws of the state where the premises are located andin force at the time of execution ofthis lease.
Lessor may, from time to time, to the extent permitted by the laws of the state where the premises are
located,withoutprejudicetoanyotherremedy,usetheSecurityDeposittotheextentnecessarytomake
goodanyarrearagesofrentortosatisfYanyothercovenant,obligationordefaultofLesseehereunder, includingLessee'sobligationstoothersdueto bepaid byLessee underthe provisions of this Lease. Following any such application of the Security Deposit, Lessee shall pay to Lessor on demand the amount so applied in order to restore the Security Deposit toits original amount.
IfLessortransfersLessor'sinterestinthepremises duringthetermofthisLease,Lessormayassignthe Security Deposittothetransfereeandthereafter shallhave nofurtherliabilityforthereturnof such Security Deposit.
AdditionalSecurityandLienByLessor:
Asadditionalsecurity,Lesseeacknowledges,to theextentallowedbyapplicablelaw,Lessor'srighttohold andsell,withduelegalnotice,allpropertyon or to be brought onthe premises in order to satisfY unpaid rent, expenses, and utilities. As long as Lessee is in default in the terms of this lease,Lessee shall not removeanypropertybrought onto the premises otherthanin theordinarycourseof business.
Lessor'sRighttoPayLessee'sObligationstoOthers:
Lessorreserves theright,butnottheobligation,inadditiontoanyotherrightorremedy,topayLessee's obligationstoothersduetobepaid by Lessee under theprovisions ofthis Lease, including, butnot limited to, utilities, afterfive(5) days noticeof Lessor's intentionto do so toLessee. In theeventof any such payment by Lessor,such payment shallconstitute Additional Rent payable by Lessee under this Lease, due from Lesseeto Lessor at the next rent day afteranysuch payment.
Liens:
LesseeshallnotdoanyactwhichshallinanywayencumberthetitleofLessorinandtothepremises,nor shallLesseecreateorpermittobe created,and shall promptlydischarge, anysuch lien (including, butnot limited to,any mechanic's, contractor's,subcontractor's or material man's lien orany lien, encumbrance or chargearisingout of anyconditional sale,title retentionagreement,chattel mortgage, securityagreement, financing statement or otherwise) upon the premises or any part thereof or the incometherefrom, and Lessee shall notsufferanyother matter or thing wherebythe estate, rightsand interestof Lessor in the premises oranypart thereofmightbeimpaired.
IfLesseeshallfailtocause anysuchlientobedischargedofrecord,thenLessor,afterfive(5)daysnotice ofitsintentionto doso,shallhavethe right,butnot theobligation,in addition to anyother right orremedy, todischarge suchlien eitherby paying the amountclaimedtobedueor byprocuring thedischargeofsuch lien by deposit or bonding proceedings,and inany such event Lessor shall be entitled if it so elects to compel the prosecution of an action for foreclosure of such lien bythe lienor and to paythe amount of judgmentinfavor of thelien owner withinterest, costsand allowances.Anyamountso paidby Lessorand all costs and expenses (including reasonable attorneys' fees) incurred by Lessor inconnection therewith shall constitute Additional Rent payablebyLesseeunder this Lease, duefrom Lessee to Lessoratthenext rentdayafter anysuchpayment.
ThisLeaseshallconstitutenoticethatLessorshall notbeliableforanyworkperformedortobeperformed, oranymaterialsfurnishedortobefurnished, at thepremisesforLessee upon credit, andthatno mechanic's orother lienforsuch work or materialsshall attachto or affectthe estateor interest ofLessorinand to the premises,unlessspecifically orderedbyLessorinwriting.
Lesseeshallhavenopowertodoanyactormakeanycontractthatmaycreateorbethefoundationforany lien,mortgageorotherencumbranceupontheestateofLessor,orany other interest of Lessor in the premises,theBuilding or theother Improvementsorany part thereof.
(c) Taking by any person of Lessee's interest in this Lease upon execution, attachment or other processof laworequity.
IntheeventofDefaultonthepartofLessee,Lessor,atitsoption,withoutfurthernoticeordemandto Lessee,may,inadditiontoallother rightsand remedies providedin thisLease,at law or in equity: (a) terminate thisLeaseandLessee'sright ofpossessionofthePremises, and recover all damages to which Lessor isentitledat law,specifically including, without limitation, the excessofthe aggregaterent that would have accruedfor the balanceof the Term, together with all of Lessor's expenses of re-leasing (including repairs, alterations, improvements,additions, decorations, legal fees and brokerage commissions) or(b) terminate Lessee's right of possession of thePremiseswithout terminating thisLease. Inall events, Lessor may re-lease thepremises, or any part thereof for the account of Lessee, for such rent andterm and upon such terms andconditions as are acceptable to Lessor. If Lessor shall have elected topursue its right toterminateLessee'sright ofpossession ofthepremises withoutterminating theLease, thenLessorshall havethe furtherrightand remedyto subsequently rescindsuch electionandterminatethe Lease.For purposes of any such re-leasing, Lessoris authorized to decorate, repair, alter andimprove thePremises to the extent deemed necessaryby Lessor,in itsreasonable discretion, allat Lessee's expense. If Lessor fails to re-lease thepremises, or if thepremises are re-leased and a sufficient sum is notrealized therefrom after paymentof all Lessor's expenses of re-leasing (includingwithout limitation repairs, alterations, improvements,additions, decorations, legal fees and brokerage commissions) to satisfy the payment, when due, of rent reserved under this Lease for anymonthly period, then Lessee shallpay Lessor a sum equal to the amountof rent due under thisLease for each suchmonthlyperiod, orifthe premiseshavebeen re leased,Lesseeshall pay any such deficiencyonthe rent day applicabletosuch month. Nothingin the foregoing sentence, however, shallbe deemedtomean thatLessor can onlycollect damages fromLessee hereunderinmonthly installments,it beingexpresslyacknowledged byLessee thatLessorshall always have the righttocollect,in alump sum,fromLessee,damages equaltotheexcess of therentthat would have accrued for the balance of the Term. Lessee agrees that Lessor may file suit to recover any sums due to Lessorhereunder atanytimeorfromtimeto timeandthatsuchsuitor recoveryof any amount due Lessor hereunder shallnot be anydefense to any subsequent action brought for any amount nottheretofore reduced to judgment in favor of Lessor. In the event Lessor elects to terminate Lessee's right ofpossession only, withoutterminating this Lease, Lessor may, at Lessor's option, enter into the premises, remove Lessee's signs,Lessee's property, andotherevidences of tenancy,and takeandhold possessionthereof; provided, however, that such entry and possession shall not terminate this Lease or release Lessee, in whole orin part, fromLessee's obligation to pay the rent reserved hereunder forthe fullTerm orfrom anyother obligation ofLessee under this Lease. Any and all property which maybe removed from thepremises by the Lessor pursuant to the authority of the Lease or of law, towhich theLessee is or maybe entitled, may behandled,removed orstored bytheLessor atthe risk, cost and expenseof the Lessee, and theLessor shallinno event beresponsible forthe value, preservation or safekeeping thereof. Lessee shallpay tothe Lessor,upondemand, any and allreasonable expensesincurredin suchremovalandall storagecharges against suchproperty so long as the same shall be in the Lessor's possession or under the Lessor's control.
Tothefullestextentallowedbyapplicable statelaw,intheeventLessorexercisesanyremedyprovided underthisSection,all deposits theretofore madebyLesseewithutilitycompanies orunder thisLease, all unearned insurance premiums and all rights ofLessee under all insurance policies required under this Lease, any pending insurance claimsorcondemnation awards,and allfuel andsupplies onthePremises shall be deemedto be andare herebyassignedto andtransferredtoLessor,to be applied in payment of Lessee's liability under this Lease.
UponoccurrenceofanyEventofDefault,andafterpropernoticeofdefault hasbeengiven,Lessormay,at itsoption,inadditionto any other remedyor rightgivenhereunder or bylaw, give notice toLesseethatthis lease shallterminateupon thedatespecifiedin the notice,which dateshallnot be earlierthanthree(3) days aftermailingor delivery ofsuch notice.
NowaiverofanydefaultofLesseehereundershallbeimplied fromanyomissiontotakeanyactionon accountofsuch default if such default persists oris repeated, and no expresswaiver shall affectany default otherthanthedefault specifiedintheexpresswaiver andthat only forthetimeandtotheextenttherein
stated.OneormorewaiversbyLessororLesseeshallnotbeconstruedasawaiverofasubsequentbreach ofthe samecovenant, term or condition.
Anyprovisionsfortheterminationofthisleaseshallnotoperatetoexcludeorsuspendanyotherremedyof theLessorfor breach,orfortherecoveryofsaidrentforthefull term.
Notices-AgentsandAuthoritytoReceiveLegalPapers:
Anynotice,whicheitherpartymayorisrequiredtogive,beitfordefaultofthetermsandcovenantsof this Lease oranyother reason, may begiven by mailingthe same, by certified mail,to Lessee atthepremises. TheLessor, any person managing the premises andanyone designated by the Lessor asagentare authorized to acceptservice ofprocessandreceiveothernoticesand demands, whichmaybedeliveredto:
TheLessor,atthefollowingaddress:
CenterLandProperties
1550E.73rdAvenue
2247FederalBlvd. Denver,CO80211
DropBox
Acceleration:
UponLessor'sterminationofthis,Lesseeexpresslyagreesandunderstandsthatunlessprohibitedby applicableStatelaw,theentireremaining balanceof unpaidrentfortheremaining termof thisLeaseshallACCELERATE,whereby the entire sum shall become immediately due, payable, andcollectible. Lessor may hold the portion of Lessee's security deposit remaining after reasonablecleaning andrepairs as a partial offsettosatisfaction of the acceleratedrent.
Lessor'sDefault:
Lesseeherebyagrees,intheeventofanydefaultbyLessor,Lesseeshall,beforeexercisinganyrightsthat Lessee may haveatlaw to cancelthis lease,first sendnotice byregisteredorcertifiedmail,or hand delivery, toLessor,andshallhave offeredLessorthirty (30) days in whichtocorrectandcurethe defaultor commencea good faitheffortto cure such default.
OptionToRenew:
ProvidedthatLesseeisnotindefaultintheperformanceofthislease,Lesseeshallhavetheoption to renew theleasefor one additional termof oneyear,(12) months, commencing attheexpirationoftheinitial lease term. ALI of the terms,conditionsandcovenantsof the lease shallapply duringthe renewaltermexceptthat the monthly rentshallbe thesumof $3450 Dollars. Theoptionshallbeexercisedbywritten noticegiventoLessornotlessthan 60 daysprior tothe expiration ofthe initial lease term. If notice is not givenin the mannerprovidedhereinwithinthe timespecified, this optionshall expire.
Lessee'sFailuretoTakePossession:
If,aftersigningthisAgreement,Lesseefailstotakepossessionofthepremises,Lesseewillstillbe responsibleforpayingrentandcomplyingwithallothertermsof thisAgreement.
Lessor'sFailuretoDeliverPossession:
IfLessorisunabletodeliverpossessionof thepremisestoLesseeforanyreasonnotwithinLessor'scontrol,including but notlimitedto partialor completedestructionof thepremises,Lesseewill have the righttoterminate thisAgreementupon proper noticeasrequired by law.In such event, Lessor'sliability toLessee willbelimitedto thereturnof all sumspreviouslypaidbyLesseetoLessor. Lessee agrees to holdLessorand Lessor'sagents harmlessforloss or damageforany reason not withinLessor'scontrol.In any
ReturnofSecurityDeposit:
Asprovidedbyapplicablestatelaw,within30daysafterLesseehasvacatedthepremises,returnedkeys andprovidedLessor with a forwarding address,Lessor will return thedeposit infull or give Lessee an itemizedwritten statement of the reasons for,and thedollar amount of, anyof thesecurity depositretained by Lessor, along with a check for any deposit balance.
DefaultandTerminationforDefault:
Eachof thefollowingshall bean"EventofDefault":
1.Lesseeshallfailtopayrentwhendue, theLessor,athisoption,mayterminateallrightsofthe Lesseehereinanddemand surrenderof the premises, afternot Jessthan three (3)days,ora lesser time if allowed by applicable law,writtennotice ofsuch default,given ina manner requiredby law unless Lessee rectifies or curesthe default within the said time.
| 2. | IfLesseeshallfailtopayanyotherpaymentofmoney,costsorexpensestobepaidbyLessee under thisLease, whendue,andthe continuance ofsuchfailure for a period of ten(10) days, or lesser time if allowed by applicable law,afterwritten notice from Lessor specifying such failure; |
| 3. | IntheeventofadefaultmadebyLesseeinanyoftheothercovenantsorconditionstobekept, observedandperformed by Lessee, Lessee shall have thirty (30)days, orlesser timeif allowed by applicablelaw,after receipt of writtennotice thereofto curesuch default.In the eventthat the Lesseeshall fail to cure any default withinthetime allowed underthis paragraph, Lessor may declare theterm of this Lease ended and terminated by giving Lessee written notice of such intention,andif possession ofthe premises is not surrendered, Lessormayreenter saidpremises.Lessor shall have, in addition to the remedy above provided, any other right or remedy available to Lessor on account of any Lessee default,either in Jaw or equity. Lessorshall use reasonable efforts to mitigate its damages. |
| 4. | Thefilingorexecutionoroccurrenceofanyofthefollowingwillbe consideredaDefault onthe partofLessee: |
(a)ApetitioninbankruptcybyoragainstLessee;
(b)ApetitionagainstoranswerbyLesseeseekingareorganization,arrangement, composition,readjustment,liquidation, dissolution or other reliefof the sameor different kind underany provision ofany bankruptcylaws;
(c)AdjudicationofLesseeasabankruptorinsolvent;
(d)AnassignmentbyLesseeforthebenefitofcreditors;
(e)ApetitionagainstorproceedingbyLesseefor,ortheappointmentof,atrustee, receiver,guardian,conservatororliquidator of Lessee with respectto the premisesorwith respect to all or substantially all ofLessee's property;or
(f)Apetitionagainst orproceedingbyoragainstLesseeforitsdissolutionorliquidationor thetakingofpossession of Lessee's property by any governmental authority inconnection with dissolution orliquidation.
WhereinthecaseofapetitionfiledagainstLesseeunder(a),(b),(e)or(f)above,such petition is not dismissed within ninety(90) daysafterthe filingthereof;
(a)Entryofanorder,judgmentordecreebyanycourtofcompetentjurisdictiongrantinganyprayer or demandcontained in anypetition under(a),(b),(e) or (f) above,which order,judgment or decreeisnotreversedorvacated within ninety (90)days after itisentered;
(b)Vacationorabandonmentofthepremises;or
case, Lessor'sliabilitytoLesseewillbelimitedtothereturnofallsumspreviouslypaidbyLesseeto Lessor.
TerminationofLease-HoldOver:
EitherLessororLesseemayterminatethis leaseat theexpirationofsaidLeaseoranyextensionthereofby givingtheotherthirty(30)days writtennoticepriortothe due date.
Lesseeexpresslyagreestothefollowing:
| a. | If Lessee, withtheconsentofLessor,expressedorimplied,shallholdoveraftertheexpirationof thetermofthisLease,Lesseeshall,intheabsenceof anywrittenagreement tothe contrary, such tenancy from month tomonth only, andnotrenewalhereof. Lesseeshall be entitled to possession until Lessor has givenLessee seven (7) days notice that such month-to-monthtenancy shall be terminated.Onlynotice ofdefault, as hereinafterprovided, shallbe required. |
| b. | If Lessee,withouttheconsentofLessor,expressedorimplied,shallholdoveraftertheexpiration ofthetermofthisLease,Lessee shall be consideredatenant at sufferanceat double the rent herein provided,proratedby the dayuntil possessionisreturned to Lessor. |
| c. | LesseesholdingoverafterorbeyondtheexpirationofthenoticeperiodofalawfulNoticeof Termination shall be Lessee holding over without the consent oftheLessor,and Lessee shall be considered atenant atsufferance,atdoubletherenthereinprovided, prorated by theday until possession isreturned to Lessor. Thisshall inno way limit anyotherremediesandrightsof recovery that Lessor may have under applicable law. |
Condemnation:
Ifanylegally,constitutedauthoritycondemnsthepremisesorsuchpartthereofwhichshallmakethe premisesunsuitablefor leasing,this Leaseshallcease whenthe publicauthoritytakes possession, and Lessor and Lessee shall account for rental as of that date. Such termination shall be without prejudice to the rightsof eitherpartyto recover compensation from the condemningauthority for any lossor damage caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority.
EminentDomain:
Ifthepremisesoranypartthereoforanyestatetherein,oranyotherpartofthebuildingmaterially affectingLessee'suseof the premise, shall be taken by eminent domain, this lease shallterminate on the date when title vests pursuant to such taking.Therent shall be apportioned as of the termination date, and any rent paid for and period beyond that dateshallbe repaid to Lessee. Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but Lessee may file a claim for any taking of fixtures and improvements owned by Lessee, and for moving expenses.
AssignmentofAgreementandSubletting:
LesseeshallhavetherightwithoutLessor'sconsent,toassignthisLeasetoacorporationwithwhich Lessee may merge or consolidate, to any subsidiary of Lessee, to any corporation under common control withLessee, or to a purchaser of substantially all of Lessee's assets provided that (a) the net worth ofsuch assignee after such merger, reorganizationor consolidation shall be noless than that of Lessee immediately prior to such merger, reorganization or consolidation,(b) Lessee is not at such time in Default hereunder,and(c)such successorshall executeaninstrument inwriting fullyassuming alloftheobligations and liabilities imposeduponLesseehereunderanddeliverthe same to Lessor;whereupon Lesseeshall be discharged from any furtherliability hereunder.
Exceptasset forthabove,Lessee willnotsubletanypartofthepremisesorassign thisAgreementwithout thepriorwrittenconsent ofLessor.Anysuchassignmentorsublettingwithoutconsentshallbevoidand, at theoptionofthe Lessor,may terminate thislease.
NoassignmentortransferofthisLeasebyLesseeconsentedtobyLessorshallbeeffective,unlessthe assignee or transferee shall, at the time of such assignment or transfer,assume all the terms, covenants and conditions of this Leasethereafter to beperformedby Lesseeandshallagreeto be bound thereby. Notwithstanding such assignment or transfer or the acceptance by Lessor from such assignee of any rent or other monies orotherperformance oftheobligations ofLessee hereunder, Lessee shall remainliable and obligated as a principal (and not as a surety or guarantor) to perform all the terms,conditions and covenants, including the payment of rent and other monies,herein provided tobe performed by Lessee.
ViolationofLaws:
Lessee,guestsandinviteesofeitherLesseeorguestswillnotusethepremisesinsuchamannerthat violatesanylaw,ordinance, statutes or requirement of anymunicipal, state orfederal authoritynow in force,or whichmayhereafter be in force,pertaining to the premises,occasioned byor affectingthe use thereof by Lessee.
Lessorshallcomplywithalllaws,orders,ordinances, statutesorrequirementsnoworhereafteraffecting thepremises.
Insurance:
WhilethisAgreementisineffect,Lessorshallkeepthepremises insuredagainstlossbyfireand windstorm,in suchamountsasLessorshalldeem appropriate. Lessee shallberesponsible, at its expense, for fire andextended coverageinsurance on allofitspersonal property,including removable trade fixtures, located in the premises.
IfthepremisesisdamagedbyfireorothercasualtyresultingfromanyactornegligenceofLesseeoranyof Lessee'sagents,employeesor invitees, rentshallnotbediminishedorabatedwhilesuchdamagesareunder repair,andLesseeshall beresponsiblefor thecostsofrepairnotcoveredbyinsurance.
LesseeandLessorshall,eachatitsownexpense,maintainapolicyorpoliciesofcomprehensivegeneral liabilityinsurance withrespect to the respectiveactivities ofeach in and onthe premises with the premiums thereon fully paid on or before the due date, by companiesreasonably satisfactory to Lessor and any mortgagee of Lessor andlicensed to do business intheState of Colorado,such insurancetoafford minimumprotectionof not less than OneMillion Dollars ($1,000,000) combinedsinglelimit coverage of bodilyinjury, property damage or combination thereof.Lessor andsuchother persons orentities asLessor may designate,as theirinterestsmayappear, shallbe listedas an additional insured onLessee's policy or policiesof comprehensivegeneral liability insurance,and suchpoliciesshallprovide that losses shallbe paid to such insureds as theirinterests mayappear. LesseeshallprovideLessor with current Certificatesof Insuranceevidencing Lessee's compliancewith thisParagraphalongwith receiptsor otherevidencethat the premiums thereon have been paidfor at least one (1) year.Lessee shall obtain the agreement of Lessee'sinsurersto notifY Lessor of a material change of coverage or that apolicy isdueto expireatleast thirty(30)dayspriortothe implementation of such change orexpiration. Certificates evidencing renewals ofeach policy of insurance shall bedeliveredto Lessorat least twenty (20) days priorto the expiration dates ofthe respectivepolicies. To the maximum extent permitted by insurance policies owned byLessor orLessee,Lessee andLessor,for the benefitof each other, waiveany andall rights of subrogation that mightotherwiseexist.
LesseeshallperformandsatisfYallrequirementsofthecompanieswritinganyinsurancepoliciesreferred tointhisLeasesothatatalltimescompaniesof goodstanding, satisfactory to Lessor,shall bewillingto writesuch insurance.
IncaseLesseeshallatanytimefail,neglectorrefusetoprocureorrenewanyinsurance hereinabove provided, thenLessor shallhave the right, but not the obligation, toprocure or renew such insurance and anyamountspaid therefore by Lessorshallbe so muchAdditionalRent dueatthenext rent dayafterany such payment.
Lessorshallnot berequiredtomaintaininsuranceagainsttheftsonorwithinthepremises.
TaxIncrease:
Lessorshallpay,priortodelinquency,allgeneralreal estatetaxesandinstallmentsofspecialassessmentscomingdueduringtheLeaseterm onthepremises,and allpersonal propertytaxeswithrespecttoLessor'spersonalproperty,if any, on the premises.Lesseeshall beresponsible for payingall personal property taxes withrespect toLessee'spersonal property at the premises.
Intheeventthereisanyincreaseduringanyyearoftheterm ofthisleaseintheCity,CountyorStatereal estatetaxes overandabovetheamountof suchtaxes assessedforthetaxyearduringwhichthe term ofthislease commences,whetherbecauseofincreased rate orvaluation:
| • | LesseeshallpaytoLessoruponpresentationofpaidtaxbillsanamountequalto100%ofLessees pro-ratashare of the increaseintaxes upon the land and building inwhichthe premises are situated. In the eventthat suchtaxes areassessedforatax year extending beyondthe termof the lease, the obligation ofLessee shallbe proportionatetotheportionoftheleaseterm included insuch year. |
PropertyDamageAndDestruction:
Atotaldestructionofthebuildinginwhichthepremisesmaybesituatedshallterminatethis lease.
Ifthepremisesoranypartthereoforanyappurtenancetheretoissodamaged byfire,casualtyor structural defects thatthesamecannotbe usedforLessee'spurposes,thenLessee shallhavetherightwithin ninety(90)daysfollowingdamage toelect bynoticetoLessor to terminatethis Lease asof the dateof such damage.
Intheeventofapartialdestructionofthepremisesduringthetermhereof,whichisbeyondLessee'sreasonablecontrol,from anyothercause, exceptin the casewherethepremisesis damaged by fireor othercasualtyresulting from anyactor negligenceof Lesseeor anyof Lessee's agents, employeesor invitees,aspreviouslydiscussed,Lessor shall forthwith repairthesame,provided that suchrepairs can bemade within sixty(60)daysunderexisting governmentallawsandregulations, butsuchpartialdestructionshallnotterminate thislease.Lessee shall be relieved from payingrentandothercharges during anyportionoftheLease term that thepremises are inoperable or unfitfor occupancy,oruse,inwhole or inpart,for Lessee'spurposes,exceptin thecase wherethe premises is damaged by fire orothercasualty resultingfromanyactor negligence ofLessee or anyofLessee's agents, employeesor invitees,aspreviously discussed. Rentalsand other chargespaidin advanceforany such periods shallbecreditedonthenextensuingpayment(s),ifany,but if no further paymentsare tobemade, any such advancepayments shallberefundedtoLessee. Inmakingtherepairscalled for inthisparagraph, Lessorshallnotbe liablefor anydelaysresulting from strikes, governmental restrictions,inabilityto obtain necessarymaterials or laboror·othermatterswhich arebeyond thereasonable control of Lessor.
Intheeventsaidrepairscannotbemadewithinsixty(60)daysorLessorshallnotelecttomakesuchrepairsthatcannot bemade within sixty (60)days,thislease may beterminated at the option of eitherparty.
Intheeventthatthebuildinginwhichthedemisedpremisesmaybesituatedisdestroyedtoanextent ofnotlessthan one-third ofthe replacement cost,Lessormayelect to terminatethisleasewhether thedemisedpremisesbeinjuredornot.
AlterationsandRepairsbyLessee:
Lessee shallnot,withoutfirstobtainingthewrittenconsentofLessor,makeanyalteration(s),addition(s), orimprovement(s), in,tooraboutthepremises.
DuringtheLeaseterm,Lesseeshallmake,atLessee'sexpense,followingLessor'swrittenconsent,all necessaryrepairstothepremises. Repairsshallincludesuch items as routine repairsof floors,walls, ceilings,and otherparts ofthepremises damaged orwornthrough normal occupancy, except formajor mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease.
Unlessauthorizedbylaw,Lesseewillnot,withoutLessor'spriorwrittenconsent,alter,re-keyorinstallany lockstothepremisesor installor alterany burglar alarm system.Lessee will provideLessor with akey or keys capable of unlocking all such re-keyedor new locks as well as instructions on how to disarm any altered or new burglar alarm system. Except as provided by law or as authorized by the prior written consentofLessor.
Lessee,atLessee'sexpense,shallhavetherightfollowing Lessor'swrittenconsent,toremodel,redecorate, andmakeadditions,improvementsandreplacementsofandtoallorany partof the premises fromtimeto time as Lessee may deemdesirable,provided thesame are madein a workmanlike manner and utilizing good quality materials.Lesseeshall have the right to place and install personalproperty, trade fixtures, equipment andother temporaryinstallationsinanduponthe premises,and fasten the sametothe premises. All personal property, equipment, machinery, tradefixtures andtemporary installations,whether acquired by Lessee at the commencement of the Lease term or placed or installed on the premises by Lessee thereafter, shallremainLessee's property freeand clear ofany claimbyLessor. Lessee shall havetheright to remove the same at any time during the term of thisLease providedremovalof such improvement(s) willnotcausematerial injuryto the premises. Allimprovements madeby Lessee to thePremises whichare so attached to the Premises that they cannot be removed without material injury to the Premises, shall become the property of Lessoruponinstallation.Not later than the lastdayof the Term, Lessee shall,at Lessee's expense,removeallofLessee's personal propertyandthoseimprovementsmade by Lesseewhich havenot become the property ofLessor, includingtradefixtures, cabinetwork, movablepaneling,partitions,andthelike; repair all injury done by or inconnectionwith theinstallation orremoval ofsuchproperty and improvements;and surrenderthe Premises inas good condition asthey wereat the beginningof the Term,reasonable wear,anddamagebyfire,theelements, casualty, orothercausenotduetothemisuseor neglect by LesseeorLessee'sagents,employees,visitors,or licensees,excepted.
Inanyevent,allpropertyofLesseeremainingonthepremisesafterthelast dayoftheTermof thislease shall be conclusively deemed abandoned and may be removedby Lessor, and Lessee shall reimburse Lessor for the cost of suchremoval.
Lessor'sRighttoAccess:
Intheeventofanemergency,tomakerepairsorimprovementsortoshowthepremisesto prospective buyers or Lessees or to conduct an annual inspection or to address asafety or maintenance problem,for the purposes of inspecting thesame,Lessoror Lessor's agentsmay enterthe premises at reasonablehours,provided Lessorshall not therebyunreasonablyinterferewith Lessee'sbusiness on the premises. Except in cases of emergency,Lessee's abandonment ofthe premises,court order or where itisimpracticalto do so, Lessor shall give Lessee24 hours notice before entering.
LesseewillpermitLessoratanytimewithinsixty(60)daysprior totheexpirationofthislease,toplace uponthepremisesanyusual"To Let" or "For Lease" signs,and permit personsdesiringtolease the same to inspectthe premises thereafter.
Lessee'sMaintenance:
ByexecutingthisLease,Lesseeacknowledgesthatthepremises areingood order and repair,unless otherwiseindicated herein.Lesseeshall,at hisownexpense and at alltimes,maintain the premises ingood andsafecondition,including·,.unless otherwisespecified herein,plateglass,electrical wiring,plumbingand
heatinginstallationsandanyothersystemorequipmentuponthepremises,and shallsurrenderthe sameatterminationhereof,inasgoodconditionasreceived, normal wear and tearexcepted. Lessee shall be responsiblefor allrepairsrequired, excepting the roof, exterior walls, structural foundations, and major mechanicalsystems, subject tothe obligationsof the parties otherwise setforth inthis Lease.Lesseeisresponsiblefor all snow removal in walk ways as well as parking area.
NoticeoflnjuriesonPremises
IntheeventofanysignificantinjuryordamagetoLessee,Lessee'semployees,orLessee'sinvitees,licensees,and/orguests, or any personal property, sufferedinthe leased premises or inany common area, written noticeofsameshall beprovided byLesseeto Lessor attheaddressdesignatedfor deliveryof notices assoon aspossible but notlaterthanfive (5) days of said injury or damage. Failure to provide such notice shall constitute a breach of this Lease.
Parking:
DuringthetermofthisLease,Lesseeshallhavetheexclusiveuseofthenon-reservedcommonautomobile parkingareas,anddriveways,subjecttorules andregulations fortheusethereof as prescribedfromtime to timebyLessor.
Subordination:
ThisLease shallbesubjectand subordinateatalltimestothelienofallmortgagesandtrustdeedsinany amountoramounts whatsoever now orhereafter placed on oragainsttheBuilding orthepremises or on or againstLessor'sinterest orestate therein, all without thenecessity of havingfurther instruments executed onthe part of Lesseeto effectuatesuchsubordination; providedthat inthe eventof aforeclosureof any such mortgage ortrustdeedor anyotheraction or proceeding forthe enforcement thereof, orof anysale thereunder,this Leasewillnot be barred,terminated,cut off or foreclosed nor will the rights and possession ofLesseehereunder be disturbed if thereshallexistnoEventof Defaultwith respecttothepayment ofrentoranyotherEventof Defaulthereunder.Lesseeshallattorntothepurchaser atanysuchforeclosure,saleor otheractionorproceeding or, ifrequested,enterintoanewleaseforthebalance of the Term then remaining upon the same termsandprovisionsasarein thisLease contained. Lessee agrees to execute anddeliverupondemand such furtherinstrumentsevidencingsuchsubordination ofthisLease to the lien of any suchmortgages or trust deedsasmaybe required byLessor.
Notwithstandingtheforegoing,Lesseeshallfrom timetotimeonrequestfromLessorexecuteanddeliveranydocumentsorinstrumentsthatmay be required byanylendertoeffectuatesuch subordination.If Lesseefailsto execute anddeliveranydocuments orinstruments,Lessee irrevocably constitutes and appoints Lessor as Lessee's attorneyin factto execute and deliver such documents orinstruments
BrokerageFees,Commissions:
LesseerepresentsthatLesseewasnotshownthepremisesbyanyrealestatebrokeroragentandthatLesseehasnototherwiseengagedin,anyactivity whichcould formthebasisfor aclaim forrealestate commission,brokeragefee,finder's feeor othersimilar charge,inconnection withthisLease.
MemorandumofLease:
ThepartiesheretocontemplatethatthisLeaseshouldnotandshallnotbefiledforrecord.EstoppelCertificate:
Atanytimeandfromtimetotimebutonnotlessthanten(10)dayspriorwrittenrequestbyeitherparty hereto,theother partyshall execute,acknowledge and deliver tothe requestingparty,promptly upon
request,acertificatecertifYing(a)thatthisLeaseisunmodifiedandinfullforceandeffect(or,iftherehave beenmodifications,that this Lease isinfull forceandeffect, asmodified,and statingthedate and nature of each modification),(b)the date, ifany,towhichrent andothersumspayable hereunder havebeenpaid, (c) that no notice has been received by suchparty of any Default whichhas notbeen cured, except as to Defaults specifiedin the certificate,and (d) such other mattersas may be reasonably requestedby the requesting party. Any such certificate may berelied upon byany prospective purchaser, mortgagee or beneficiary under any trust deed of the premises or any part thereof and by any collateral assignee of this Lease.
IndemnificationofLessor:
LessorshallnotbeliableforanydamageorinjurytoLessee,oranyotherperson,ortoanyproperty, occurringonthedemisedpremises or any part thereof, and Lessee agrees to hold Lessor harmless from any claim for damages, during the
Termofthis LeaseoranyextensionofthisLease,nomatterhowcaused.
Lesseeagreestopay,andtoindemnityLessoragainst,allcostsandexpenses(including,butnotlimitedto, Lessor'sreasonableattorneys'fees) incurred by or imposedupon Lessor byor in connectionwith any litigation to which Lessor becomes or ismade aparty withoutfault in itspart,whether commenced byor against Lessee, or that maybeincurred byLessorinenforcing any of the covenants andagreements of this Lease (with or withoutthe institution of anyaction or proceeding relating tothe premises or this Lease) or in obtaining possession of the PremisesafteranEvent ofDefault oruponexpiration or earlier termination of this Lease.
Lessormay,butshallnotbeobligatedto,cureanyDefaultbyLesseehereunder.Allsums expended and all costs and expenses (including, but not limited to, reasonable attorneys' fees) incurred by Lessor pursuant to the provisions of this Lease or on account of anyDefaultbyLessee under this Lease and all suchsums shallbecome Additional Rent under thisLease,payable byLesseeto Lessor on the nextrent dateafter such expenditure.
AllrentandotheramountspayablebyLesseeunderthisLeaseshallbeandareherebydeclared tobea valid andfirst lien upon Lessee's interest inthePremises andupon therents,issues and profits inany manner arisingor growingout of the same, and upon Lessee's interest in this Lease.
IntheeventofanybreachorthreatenedbreachbyLesseeofanyofthecovenants,agreements,termsor conditionscontained in this Lease,Lessorshallbe entitledto enjoinsuchbreachor threatened breach and shall have the right to invoke any right and remedy allowedat law or inequityor by statute or otherwise as thoughre-entry,summaryproceedings and other remedieswerenot providedfor in this Lease.
NoreceiptofmoniesbyLessorfromLesseeafterterminationofthisLeaseorafter thegiving ofanynotice of termination ofthis Lease shall reinstate,continue or extend the Term or affectanynotice theretofore given toLessee,or operate as a waiver of Lessor'sright to enforce the payment of rent and any other paymentsor chargesherein reserved andagreedto be paid by Lessee then or thereafter falling due,or operate as a waiver of Lessor's right to recoverpossession of the premises, it being agreed thatafter theservice ofnotice to terminate this Lease orthe commencementof suit or summary proceedings,or after final order or judgmentfor the possessionofthe premises,Lessormaydemand,receive andcollectany monies due orthereafter fallingduewithout,in any manner, affectingsuch notice,proceeding,order,suit or judgment, all such monies collected being deemed payments on accountof the useand occupation of the premises orat Lessor's election onaccount of Lessee's liability hereunder.
Waiver:
Anywaiverofadefault hereundershallnotbedeemedawaiverof thisagreementor ofanysubsequent default. Acquiescenceinadefaultshall not operateas a waiver of suchdefault, even though such acquiescence continues foran extendedperiod oftime.
Lessor'sgrantingofany consentunderthisLease,orLessor'sfailuretoobjecttoanyactiontakenbyLessee withoutLessor'sconsentrequiredunderthis Lease,shall not bedeemed a waiver byLessorof its rights to requiresuchconsentforany furthersimilaract byLessee.No waiver by Lessorof any other breachof the covenantsof this Lease shall be construed,taken or held to be a waiver of any other breach or to be a waiver, acquiescence in or consent to any further or succeeding breach of the same covenant. None of Lessee's covenantsunderthisLease,and nobreachthereof, shall be waived,altered or modified except by awritteninstrumentexecuted byLessor.
Remedies-Cumulative:
NoremedyconferreduponorreservedtoLessorunderthisLeaseorunderlawshallbeconsidered exclusiveof any otherremedy,but suchremedies shall be cumulative and shallbe in addition to every other remedy given hereunder or noworhereafter existingat lawor in equity or by statuteor otherwise, and every power and remedy given by this Lease to Lessor may be exercised from time to time and as often as occasion may arise oras may be deemedexpedient, without precluding Lessor'ssimultaneous or later exercise ofanyor all other rights or remedies. No delay or omission of Lessor toexercise any right or power arising from anyDefaultorEventof Default shall impair anysuch rightto power orshall be construed tobe a waiver of any such Default or Event of Default or acquiescence therein.
ParagraphHeadings:
Theheadingsofparticularparagraphsandsubparagraphs areinsertedonlyfor convenienceandarenotpart ofthisAgreementandarenottoact as a limitationonthe scope ofthe particularparagraph towhichthe heading refers.
CourtCostsandAttorneysFees:
InanyactionorlegalproceedingtoenforceanypartofthisAgreement,theprevailingpartyshallrecover reasonableattorneys'feesandcourtcosts.
BindingonSuccessors:
Thisleaseisbindinguponandinurestothebenefitof theheirs,successorsininteresttotheparties.EntireAgreement:
This documentandanyAttachments constitutestheentireAgreementbetweentheparties,andnopromises orrepresentations,otherthanthosecontainedhereandthoseimpliedby law,havebeenmadebyLessoror Lessee. Anymodificationsto thisAgreement mustbeinwritingandsignedbyLessor andLessee.
Severability:
TheprovisionsofthisLeaseareseverableandintheeventanyprovision,clause,sentence,sectionorpart thereofisheld tobe invalid, illegal, unconstitutional, inapplicable or unenforceable to any person or circumstances,such invalidity,illegality, unconstitutionality,inapplicabilityor unenforceability shall not affect or impairany of the remaining provisions, sentences,clauses,sections, parts of the lease or their application to Tenant or other persons or circumstances. It isunderstoodand agreed thatthe terms, conditions and covenants of this Lease would have been made by both partiesif such invalid, illegal, unconstitutional,inapplicableor unenforceable provision,sentence, clause, section or part had not been included thereintotheextent that portion ofthis agreementmay beinvalid by strikingofcertainwords or phrases, suchwords orphrasesshallbe deemedto be strickenandtheremainderof the provisions and the remainder of the other portionsof thisLease agreementshall remainin fullforce andeffect.It isfurther agreed that this Lease may be executed in counterparts, each of which when considered together shall constitutethe original contract.
LesseeasCorporateEntity:
IfLesseeisacorporation, eachpersonexecutingthisleaserepresentsandwarrants thatheorsheisduly authorized toexecuteanddeliver thisleaseonbehalfofthecorporation.Thosepersons further represent that the terms ofthislease are binding upon the corporation.
Lessor’s/Agent’s Signature:/s/ James Herron/
Title: Managing Member
Date 7/22/14
Address: 2247 Federal Blvd.,
Denver, CO 80211
Dropbox
Phone:
Lessee: MassRoots, Inc.
By (signature):/s/ Isaac Dietrich
Title: CEO
Print Name: Isaac Dietrich
Date: 7/22/14
Lessee: CannaBuild, LLC
By (signature):/s/ Zach Marburger/
Title: CEO
Print Name: Zach Marburger
Date: 7/22/14
