Document:

EQUIPMENT AND LEASEHOLD IMPROVEMENTS

 
OPERATING LEASE AGREEMENT - EQUIPMENT
 

 

 This Equipment Lease Agreement (the “Agreement”) is effective January 1, 2009,

 
BETWEEN:
 JODY HANLEY (the "Lessor"), an individual located at:

 5229 Daywood Street, North Las Vegas, NV 89031

 
AND:
 NATIONAL AUTOMATION SERVICES (the "Lessee"), a company organized and existing under the laws of the State of Nevada, with its head office located at:

 2053 PABCO, HENDERSON, NV  89011

 NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

 
1.
 EQUIPMENT
 

 Lessor hereby leases to the Lessee, and the Lessee hereby rents from Lessor, for the term of this lease, the equipment detailed in Schedule A hereto (hereinafter called the “Equipment”), itemized in each case.

 
2.
 LOCATION AND IDENTIFICATION OF EQUIPMENT

 When not in active use, the Equipment shall be located at, and its movements shall at all times be controlled from, the address of each Location where it is currently found, as identified in Schedule A hereto [no Locations identified in Schedule A], and the Equipment shall not be removed from such Location without the prior written consent of Lessor. The Equipment shall not be located in leased premises (other than pursuant to the Premises Leases) unless the owner and any lessor thereof waive any right, title and interest they may have as such in the Equipment and Improvements in favor of Lessor. The Lessee will not change or remove any insignia or lettering which is on the Equipment or Improvements at the time of delivery thereof or which is thereafter placed thereon by Lessor, and at any time during the term of this lease, upon Lessor’s request, Lessee will affix to the Equipment or Improvements (as the case may be), in a prominent place and manner such markings as may be supplied by Lessor.

 
3.
 LESSEE’S INSPECTION, CONCLUSIVE PRESUMPTIONS

 Lessee acknowledges as between Lessor and the Lessee, that the Lessee has fully inspected the Equipment and that the Lessee is satisfied with and has accepted the Equipment. The taking of possession of the Equipment by the Lessee shall be conclusive evidence that they were in good order and condition.

 

 
4.
 USE AND MAINTENANCE, ALTERATIONS AND ADDITIONS

 Lessee shall use the Equipment solely in the conduct of the Nevada Business and in a careful and proper manner, and shall not part with possession of or enter into any sub-lease with respect to the Equipment or any part thereof or assign this lease or its interest hereunder without Lessor’s prior written consent. The Lessee at its own cost and expense shall keep the Equipment in good repair, condition and working order and shall furnish any and all parts and labor required for that purpose. The Lessee shall not make any material alterations to the Equipment without Lessor’s prior written consent. All accessories, parts and replacements for or which are added to or become attached to the Equipment shall immediately become the property of Lessor and shall be deemed incorporated in the Equipment and subject to the terms of this lease as if originally leased hereunder.

 
5.
 LOSS AND DAMAGE

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 Subject to the following, the Lessee hereby assumes and shall bear the entire risk of loss of and damage to the Equipment from any and every cause whatsoever, except where such loss or damage occurs while the Equipment are leased or have been sold to a third party pursuant to section 4 hereof. No reparable damage to the Equipment or any part thereof shall impair any obligation of Lessee under this lease, which shall continue in full force and effect. In the event of damage of any kind whatever to any item of the Equipment (unless the same is damaged beyond repair), Lessee shall at its own expense place the same in good repair condition and working order. If the Equipment are, or any item thereof is, determined by Lessor to be lost, stolen, destroyed or damaged beyond repair, Lessee shall immediately pay Lessor therefore in cash an amount equal to (i) the depreciated value of the Equipment (as the case may be) as of the date of such loss, theft or damage less (ii) any insurance proceeds or salvage value recovered by Lessor in respect of the Equipment. Upon such payment this lease shall terminate with respect to such item of the Equipment (as the case may be).

 
6.
 INDEMNITY
 

 Lessee shall indemnify and save Lessor harmless from any and all liability arising out of the ownership, selection, possession, leasing, renting, operation control, use, maintenance, delivery and/or return of the Equipment and Improvements, but shall be credited with any amounts received by Lessor with respect thereto from liability insurance procured by Lessee.

 
7.
 INSURANCE
 

 Lessee shall keep the Equipment insured against all risks of loss or damage from every cause whatsoever for not less than the replacement cost new of the said Equipment without consideration for depreciation and shall carry public liability insurance, both personal injury and property damage; covering the Equipment; and Lessee shall be liable for all deductible portions of all required insurance. 

 All insurance policies shall provide that any breach of the conditions for insurance thereunder by the Lessee shall not be opposable to Lessor in its capacity as co-insured under the said policy. All said insurance should be in form and amount and with companies satisfactory to Lessor. All insurance for loss or damage shall provide that losses, if any, shall be payable to Lessor, and all such liability insurance shall be in the joint names of Lessor and Lessee. Lessee shall pay the premiums therefore and deliver to Lessor the policies of insurance or duplicates thereof, or other evidence satisfactory to Lessor of such insurance coverage. Each insurer shall agree by endorsement upon the policy or policies issued by it or by independent instrument furnished to Lessor, that it will give Lessor 30 days’ prior written notice of the effective date of any alteration or cancellation of such policy. The proceeds of such insurance payable as a result of loss of or damage to the Equipment or Improvements shall be applied, at the option of Lessor, (a) toward the replacement; restoration or repair of the Equipment or Improvements which may be lost, stolen, destroyed or damaged, or (b) toward payment of the obligations of Lessee hereunder. Lessee hereby irrevocably appoints Lessor as Lessee’s attorney-in-fact to make claim for, receive payment of, and execute and endorse all documents, check or drafts received in payment for loss or damage under any said insurance policy.

 In case of the failure of Lessee to procure or maintain said insurance or to comply with any other provision of this lease, Lessor shall have the right, but shall not be obligated, to affect such insurance or compliance on behalf of Lessee. In that event, all moneys spent by and expenses of Lessor in affecting such insurance or compliance shall be deemed to be additional rent, and shall be paid by Lessee to Lessor with the next monthly payment of rent.

 
8.
 COMPLIANCE WITH LAWS, PAYMENT OF TAXES

 Lessee shall comply with all laws and regulations relating to, and shall promptly pay when due, all license fees, registration fees, assessments, charges and taxes, municipal, state/provincial and federal, excluding, however, any taxes payable in respect to Lessor’s income which may now or hereafter be imposed upon the ownership, possession, leasing, renting operation, control, use, maintenance, delivery 

 Operating Lease Agreement Equipment                                       Page 2 of 13

 
 and or return of the Equipment and shall save Lessor harmless against actual or asserted violations and pay all costs and expenses of every character in connection therewith or arising therefrom.

 
9.
 TITLE OF LESSOR, RECORDING

 Title to the Equipment shall at all times remain in Lessor., Lessee shall at all times keep the Equipment free and clear from all levies, attachments, liens, encumbrances and charges or other judicial process of every kind whatsoever, shall give Lessor immediate written notice thereof and shall indemnify and save Lessor harmless from any loss or damage caused thereby. Lessee will cooperate with Lessor and take whatever action may be necessary, to enable Lessor to file, register or record, and refile, re-register or re-record, this lease in such offices as Lessor may determine and wherever required or permitted by law, for the proper protection of Lessor’s title to the Equipment. The Equipment are and shall remain movable property irrespective of their use, and Lessee will not cause or permit the Equipment to be used in such manner that they might become immovable in nature.

 
10.
 INSPECTION
 

 If the Equipment is removed, with the consent of Lessor pursuant to section 3 hereof, from the address specified above outside the ordinary course of the Lessee’s business, or if the Location from which its movements are controlled is changed, the Lessee shall, whenever requested, advise Lessor of its exact location or of the location from which such movements are controlled, as the case may be. Lessor may, for the purpose of inspection, at all reasonable times, enter upon any building or place where the Equipment is located. 

 
11.
 REMEDIES CUMULATIVE; NO WAIVER

 All remedies of Lessor hereunder are cumulative and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise of any other remedy. No failure on the part of Lessor to exercise and no delay in exercising any rights or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Lessor of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.

 
12.
 POSSESSION AND USE

 Lessor covenants to and with Lessee that Lessor is the lawful owner of the Equipment and Improvements, free from all liens, encumbrances, and that, upon Lessee’s paying the rents and performing the promises, terms and conditions hereof, Lessee shall peaceably and quietly hold, possess and use the Equipment and Improvements during the term of this lease without hindrance.

 
13.
 RE-DELIVERY

 On termination of this lease, Lessee shall, at its own cost and expense, return the Equipment and Improvements to Lessor at an address specified by Lessor in the same condition as received, reasonable wear and tear and normal depreciation excepted.

 
14.
 ASSIGNMENT BY LESSOR

 This lease or any Equipment or any rent or other sums due or to become due hereunder may be transferred or assigned by Lessor without notice, and in such event Lessor’s transferee or assignee shall have all the rights, powers, privileges and remedies of Lessor hereunder and Lessee’s obligations hereunder shall not be subject to any defense, offset or counterclaim available to Lessee against Lessor.

 Operating Lease Agreement Equipment                                       Page 3 of 13

 
 

 
15.
 CONFLICT WITH APPLICABLE LAW

 If any provisions of this lease are in conflict with any statute or rule of law of any state, province or territory wherein it may be sought to be enforced, then such provisions shall be deemed null and void to the extent that they may conflict therewith, but without invalidating the remaining provisions hereof. This lease shall be governed by and interpreted in accordance with the laws of Nevada, and the parties agree that any disputes in connection herewith shall be referred to the Courts of the State of Nevada. This lease shall be binding upon Lessor and Lessee and their respective legal representatives, successors and assigns.

 
16.
 FIRST RIGHT OF REFUSAL

 Should Lessor decide to sell the Equipment at any time during the Term of the Lease, Lessor shall provide reasonable prior notice to Lessee and provide Lessee the right of first refusal to purchase the Equipment at the same offered by any third party

 
17.
 INTENT OF LEASE

 Intent of Lease - It is the intent of the parties to this lease that it be totally net to Lessor. Lessor shall not be liable for any costs or expenses of any nature whatsoever relating to the Leased Equipment or the Leasehold Improvements (as these terms are hereinafter defined) or the use thereof, or the contents thereof, or the business carried on therein, and the Lessee shall be solely responsible for any such costs, charges, expenses and outlays, including taxes, maintenance and repairs. Any obligation which is not expressly declared herein to be that of Lessor shall be deemed to be the obligation of the Lessee to be performed by and/or at the expense of the Lessee.

 
18.
 TERM OF LEASE

 Commencement Date - The term of the Lease shall commence on the 1 March 2009 (hereinafter referred to as the “Commencement Date”) and shall terminate on the 28 February 2014, unless sooner terminated in the manner hereinafter set forth (the “Term of the Lease”). 

 
19.
 NET RENT FOR THE LEASEHOLD IMPROVEMENTS

 19.1

Rental - During the Term of the Lease, the Lessee shall pay to Lessor the following Net Rent:

 19.2.

Commencing on 01 March 2009, the rent shall payable in advance in equal and consecutive monthly installments of $600, on or about the 5th day of each month.

 19.3

Place of payment - The Rent shall be paid by the Lessee in lawful money of United States of America to Lessor at the address 5229 Daywood Street, North Las Vegas, NV 89031 or at any other location indicated by written notice of Lessor to the Lessee, or to any agent or representative of Lessor in Nevada, as may be designated from time to time by written notice of Lessor to the Lessee.

 
20.
 USE, REPAIR AND MAINTENANCE OF EQUIPMENT AND IMPROVEMENTS

 20.1

Expenses with Respect to Equipment and Improvements - The Lessee shall assume and shall pay all expenses with respect to the use, repair and maintenance of the Equipment.

 20.2

Condition of Equipment - The Lessee undertakes, at the Lessee’s expense, to keep and maintain in good state of repair, of every description, and in good condition the Equipment and all alterations, improvements, facilities, additions and any other apparatus or services in use in the Locations. The Lessee undertakes to make use of the Equipment as a prudent administrator and to effect, without delay and at the Lessee’s 

 Operating Lease Agreement Equipment                                       Page 4 of 13

 
 expense, all repairs necessary to keep and maintain the Equipment in a good state of repair and in good condition, and at the expiration of this Lease shall surrender the Equipment to Lessor in the same condition, except for reasonable wear and tear.

 20.3

Default by Lessee - Should the Lessee fail to keep and maintain the Equipment and Improvements in a good state of repair and in good condition, and should the Lessee not conform, within a reasonable period of time in the given circumstances, to a notice to that effect given to the Lessee by Lessor, Lessor, and Lessor’s officers, employees, agents, contractors, workers and other representatives, shall be entitled, without another prior notice, to enter the Locations and to carry out, in the place of the Lessee and at the Lessee’s expenses, any repairs or other necessary action. The amount of such expenses plus a 5% administration fee thereon shall be paid by the Lessee, as Additional Rent, without prejudice to Lessor’s other rights and recourses hereunder.

 The Lessee hereby waives any claim against Lessor, Lessor’s officers, employees, agents, contractors, workers and other representatives, any compensation, indemnification, reduction of the rent or damages resulting directly or indirectly from any act of Lessor or Lessor’s representatives under this Article.

 
21.
 ALTERATIONS, REPAIRS, IMPROVEMENTS INSTALLATIONS AND ADDITIONS

 21.1

Improvements - All improvements in and to the Equipment shall be performed at the  Lessee’s sole cost and expense.

 21.2 

Consent of Lessor - The Lessee shall not, without the prior written consent of Lessor carry out any change, repair, improvement, installation or addition to the Equipment, either prior to or throughout the Term of the Lease

 21.3 

Changes Belonging to Lessor - The Lessee may not remove any alterations, repairs, improvements, installations and additions without the prior written consent of Lessor, at any time during the Term of the Lease. All alterations, repairs, improvements, installations and additions shall form part of the Locations, become the property of Lessor, and be returned by the Lessee along with the premises leased pursuant to the Premises Leases at their expiration, with no compensation or indemnification whatsoever owed by Lessor to the Lessee. However, should Lessor so require, the Lessee shall, at the expiration of the Premises Lease, remove in whole or in part such alterations, repairs, improvements, installations and additions, and the Lessee shall be required to surrender the Locations in the same condition as when they were received except for normal wear and tear.

 
22.
 ACCESS BY LESSOR TO LEASED PREMISES

 22.1

 Inspection and Repairs - Lessor shall have access to the “Location” at any time, without liability toward the Lessee, to examine and verify the Equipment for the purpose of making therein any repairs, replacements, alterations or improvements Lessor deems necessary or desirable for the operation and proper maintenance thereof, subject to the provisions of this Lease.

 22.2

Visiting the Leased Premises - The Lessee shall permit Lessor or any other person designated by Lessor to visit the “Location”, during normal business hours. The Lessee shall also permit Lessor, at any time during normal business hours, to show the Equipment to any broker, purchase or assessor.

 
23.
 DAMAGE AND DESTRUCTION

 23.1

Destruction of Equipment - Should the Equipment be destroyed or damaged by fire or other casualty insured against by Lessor, then:

 Operating Lease Agreement Equipment                                       Page 5 of 13

 
 

 23.1.1

if Lessor is of the opinion that the damage or destruction is such that the Equipment are rendered wholly unfit for use, or it is impossible or hazardous to use them, and if in either event Lessor is of the opinion (which Lessor shall signify to the Lessee in writing within 30 days following the damage or destruction) that the damage cannot be repaired with reasonable diligence within 180 days following the giving of such notice, either party may, within 30 days following the receipt of this notice, terminate the Lease by written notice to that effect, in which case the Lease shall terminate on the day of the damage or destruction, and the rent and all other amounts payable by the Lessee under the Lease shall be calculated and paid in full up to the date of the damage or destruction. In the event that neither Lessor nor the Lessee terminates this Lease, the rent shall abate from the date of the damage until the date on which the Equipment have been repaired to the extent of enabling Lessee to use them;

 23.1.2

if the damage be such as to render the Equipment and Improvements wholly unfit for use, or if it is impossible or unsafe to use them, or if their utilization is impossible or hazardous, but if, in either case, Lessor is of the opinion (which Lessor shall signify to the Lessee in writing within __ days wholly unfit for use, or it is __ days following the damage) that the damage can be repaired with reasonable diligence within 90 days wholly unfit for use, or it is 30 days following the giving of such notice, the rent shall abate from the date of the damage until the date on which the Equipment and Improvements have been repaired to the extent of enabling Lessee to use them;

 23.1.3

if Lessor is of the opinion that the damage can be repaired as described above within 30 days following the giving of such notice, and that the nature of the damage is such as to render the Equipment only partially fit for use for the purpose for which it was leased, the rent shall abate in the proportion that the part of the Equipment rendered unfit for use bears to the whole thereof, until the damage has been repaired.

 23.2

Proceeds of Insurance - In the event of a termination of this Lease as described above, all proceeds of insurance policies, except for those amounts pertaining to the Lessee’s property, and to the extent that the Lessee owes no debt to Lessor under this Lease, shall be and remain the sole property of Lessor.

 23.3

Destruction Caused by Lessee - If any damage or destruction is caused to the Equipment, either partial or total, by fire or other casualty is due to the fault or negligence of the Lessee or the Lessee’s officers, agents, employees, servants, visitors or authorized persons, in such case, without prejudice to Lessor’s other rights and recourses or to any subrogation rights of Lessor’s insurer:

 23.3.1

the Lessee shall be liable for all costs and damages;

 23.3.2

the damages may be repaired by Lessor, at the Lessee’s expenses;

 23.3.3

the Lessee shall forfeit its right to terminate the Lease, as provided for under Article 26.1.1; and

 23.3.4

the Lessee shall not be entitled to any abatement or postponement of the rent in virtue of this Article.

 
24.
 EXPROPRIATION
 

 24.1

Termination of Lease - In the event the whole or any part of the Equipment shall be expropriated or taken possession of by any competent authority, so that it is no longer 

 Operating Lease Agreement Equipment                                       Page 6 of 13

 
 feasible for the Lessee to continue to operate in the Locations, Lessor shall terminate the Lease from the date of said expropriation or taking of possession, by notifying the Lessee in writing to this effect, and Lessor shall have no liability toward the Lessee for any reason whatsoever.

 24.2

No Obligation to Contest - Lessor and the Lessee hereby reserve all their rights to claim future damages against the expropriating authority. The Lessee acknowledges that Lessor shall have no obligation to contest any expropriation proceedings.

 
25.
 INDEMNIFICATION

 25.1

Non-Liability of Lessor - Lessor shall not be liable for any material or bodily damage occurring to the Equipment or Improvements at any time and for any reason whatsoever, except when such damage or injury results directly from the gross fault or negligence of Lessor.

 25.2

No Reduction of the Rent - The Lessee acknowledges that it shall not be entitled to any abatement or reduction of the rent, nor to any right to terminate the Lease for any reason whatsoever, save as specifically set out in this contract.

 25.3

Notice of Defect - The Lessee shall notify Lessor without delay of any accident, defect or fault in the Equipment or Improvements and shall cause same to be repaired or replaced at Lessee’s expense.

 
26.
 COMPLIANCE WITH LAWS AND INDEMNIFICATION 

 26.1

Compliance with United States of America – Lessor represents that, to its knowledge, the Equipment currently complies with the requirements of all laws, regulations, ordinances, orders and by-laws in effect for the authorities mentioned below.  The Lessee shall, at its own expense, comply with the requirements of all laws, regulations, ordinances, orders and by-laws in effect for the municipality where the Equipment is located, the state/provincial and federal governments and each of their respective departments, commissions and agencies, as the case may be, and any other governmental authority having jurisdiction over the Equipment, or the use of said Equipment by the Lessee. The Lessee shall further waive any claim for reduction of the Rent or for any damage the Lessee may suffer by reason of the application to the Lessee of such legislative or regulatory provisions.

 Without limiting the generality of the foregoing, the Lessee shall carry out all alterations or changes to the Equipment, to the Leasehold Improvements or to the Lessee’s utilization thereof which may be required by the above-mentioned authorities, and prior to effecting such alterations or changes shall submit to Lessor plans and specifications for Lessor’s written approval. Should the Lessee fail to effect within the required time the alterations or changes required by the authorities having jurisdiction, Lessor, following written notice to the Lessee requiring, the Lessee to carry out the required work within a reasonable period of time, may effect said work of alteration or change required by the authorities having jurisdiction and shall immediately be entitled to claim repayment from the Lessee

 26.1

Indemnification of Lessor - The Lessee agrees to indemnify Lessor and to save it harmless against any fine, penalty, indictment or damage whatsoever resulting from any violation by the Lessee or the Lessee’s employees, agents or mandatories of the United States of America, ordinances or regulations in force. The Lessee also agrees to indemnify Lessor and save it harmless against any damage and/or any expense resulting from any failure by the Lessee or its employees to comply with any of the terms and conditions of the Lease.

 
27.
 SUBLET AND ASSIGNMENT

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 27.1

 Consent of Lessor - The Lessee shall not at any time have the right to sublet all or any part of the Equipment or Improvements or to assign its rights in the Lease, or allow the Equipment or Improvements or any part thereof to be used by another, nor hypothecate or encumber this Lease or the Equipment or Improvements or any part thereof without prior written consent of Lessor, which consent shall not be unreasonably withheld.

 27.2

Presumed Sublet and Assignment - Any of the following shall be deemed to be a sublet or assignment of this Lease:

 27..2.1

any transfer, sale or issuance involving, in all, 50% or more of the voting shares of the Lessee’s share capital, where the Lessee is a company whose shares are not listed on any recognized stock exchange;

 27.2.2

any transfer, sale or assignment involving, in all 50% or more of the interest in the partnership, where the Lessee is a partnership;

 27.2.3

the exercising of a right of occupancy, management or control with respect to the whole or to any part of the Equipment, or with respect to the business conducted thereby, by any person other than the Lessee, whether or not said person is directly under the control or supervision of the Lessee; and

 27.2.4

the acquisition or exercise of effective control of the Lessee’s business by any other person not having such effective control on the date of signature of the Lease.

 
28.
 DEFAULT AND RECOURSE

 28.1

Events of Default - The Lessee shall be in default hereunder in the following events:

 28.1.1

if the Lessee fails to pay to Lessor any amount due under this Lease;

 28.1.2

if the Lessee fails to pay any taxes on the Equipment when due;

 28.1.3

if the Lessee or any other person using the Equipment becomes insolvent in whole or in part, or makes any assignment of property for the benefit of creditors; if the Lessee is placed in bankruptcy or liquidation, or takes the benefit of any legislation relating to bankruptcy or insolvency, or attempts to do so, if a receiver or a sequestrator is appointed for the Lessee’s property or any part of such property, or if a writ of execution or seizure is issued against the Lessee;

 28.1.4

if the Lessee’s property is transferred, transmitted or otherwise passed to any other physical person or moral person, by mutual agreement or by the operation of the law, except where such physical person or moral person has, in writing, assumed this Lease toward Lessor and where the conditions described in Article 32 herein below have been observed;

 28.1.5

if the Lessee fails to take possession of the Equipment, or, after taking possession, abandons the Equipment for any reason whatsoever, or if said Equipment is used by any physical person or moral person not so authorized under this Lease;

 28.1.6

if the Lessee alters or modifies the use of the Equipment;

 28.1.7

if the Lessee is in default under the Premises Leases or under the Asset Purchase Agreement executed on this date between the Parties to this Lease;

 

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 28.1.8

if any application is made or action taken for the winding-up or dissolution or liquidation of the Lessee or the Lessee’s assets;

 28.1.9

if the Lessee is in default in fulfilling any other term, condition or obligation of this Lease.

 28.2

Termination of Lease - Subject to an event of default described in Article 31.1.3 above, in which event termination of the Lease shall be automatic, in the event of any default by the Lessee as defined in this Article 31, Lessor may give the Lessee written notice of Lessor’s intentions to terminate the Lease, and the Term of the Lease shall end automatically on (i) the 30th day after this notice, in the case of default of any provisions relating to the payment of any amount of money, or (ii) the 60th day after the notice in all other events of default; this termination shall have the same effect and the same force as if it were the date of expiration of the Term of the Lease, without any legal action being required and subject in any case to the Lessee’s obligation to pay to Lessor all amounts due to Lessor and all damages resulting from the default.

 The Lessee hereby irrevocably waives his right to repudiate this Lease pursuant to the Bankruptcy and Insolvency Act or any section passed to amend or replace such provisions.

 28.3

Lessee’s Right to Cure Default - In all cases, save an event of default described in Article 31.1.3 above, the Lessee may cure the default, following notice from Lessor, provided that the default is cured within the period of time referred in the preceding paragraph.

 28.4

Return of Leased Equipment - In the event of termination of the Lease under the provisions of this Article 31, the Lessee shall immediately return the Leased Equipment to Lessor, or, if the Lessee has not yet taken possession thereof, the Lessee shall abandon its rights to possession thereof. 

 28.5

Damages - In the event of termination of the Lease under the provisions of this Article 31, Lessor shall immediately be entitled to payment of all arrears together with the equivalent of the Net Rent payable on a monthly basis for the current month plus the next ensuing 3 months; Lessor may claim immediate payment of this amount and of any other amount past due, and any other amount owed by the Lessee to Lessor at that time, subject to Lessor’s rights and recourses.  Furthermore, Lessor may claim the cost of any expenses incurred, including legal fees and disbursements, to enforce its rights hereunder.

 Should termination of the Lease result from the Lessee’s bankruptcy or insolvency or be based upon such bankruptcy or insolvency, Lessor may, in addition to the other rights and recourses available to it, require payment of all arrears together with the equivalent of 3 months’ Net Rent.

 28.6

Absence of Waiver – No indulgence or oversight on the part of either of the parties with respect to a default by the other party in the performance of any of its obligations under this Lease shall be considered to be a waiver of Lessor’s rights or of the Lessee’s rights hereunder with regard to the default or to any subsequent default; neither shall it affect or modify in any manner whatsoever Lessor’s rights or the Lessee’s rights hereunder with regard to the subsequent default; and no waiver may be inferred from any act or omission by Lessor or by the Lessee, unless the waiver is in writing.

 28.7

Remedies Generally - Mention in this Lease of any particular remedy or remedies of Lessor in respect of any default by the Lessee shall not preclude Lessor from any other remedy in respect thereof, whether provided herein or available in Nevada law. No remedy shall be exclusive or dependent upon any other remedy, and Lessor may from time to time exercise any one or more of such remedies separately or in combination, such remedies being cumulative and not alternative
.
 

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29.
 NOTICE

 29.1

Procedure and Addresses - Any notice which is required to be given under this Lease or in connection therewith shall be deemed to have been legally given if it is delivered in person or sent by registered mail or transmitted electronically (in which case, any notice thus transmitted shall be confirmed in writing and sent by registered mail or delivered in person) to the following addresses:

 29.1.1

If to Lessor:
 5229 Daywood Street

North Las Vegas, NV 89031

Attention: Jody Hanley

 29..1.2

If to the Lessee:
 National Automation Services

2053 Pabco
 Henderson, NV  89011

or such other place as either of the parties may designate to the other party, by written notice given as described above.

 Any notice sent by mail shall be deemed to take effect on the 10
th business day following the date of mailing. Any notice sent electronically should be presumed to have been given and received on the day following the date of transmission. If the day following the date of transmission is not a business day, the notice shall be presumed to have been given and received on the following business day.

 29.2

Election of Domicile - The Lessee elects domicile in the Leased Premises for the purposes of delivery of any procedure or any other document of a legal nature in connection with any action of any nature whatsoever taken by Lessor for the purpose of enforcing Lessor’s rights hereunder.

 
30.
 UNAVOIDABLE DELAY

 30.1

Unavoidable Delay - Except for the payment of an amount of money, each time that the Lease provides for the performance of an obligation, the obligation shall be performed subject to any delay caused by an act of God, superior force, strike, lockout, labor conflict, inability to procure materials, restrictive government restrictions or orders, bankruptcy of a contractor or any other condition of a like nature or not (except for the financial situation of either parties, which is reasonably beyond the control of Lessor or the Lessee, as the case may be (an “Unavoidable Delay”).

 30.2

The Lessee and Lessor shall be deemed not to be in default in the performance of any obligation under this Lease if they are prevented from so doing by Unavoidable Delay, and any period of time for the performance of such obligation shall be extended accordingly. The Lessee and Lessor shall notify each other respectively without delay at the outset of the cause, the duration and the effect, to their knowledge, of any Unavoidable Delay.

 
31.
 OPTION TO PURCHASE

 31.1

During the course of the operating lease, the Lessee has first rights of refusal on the potential purchase of the equipment, subject to a third party inspector’s assessment of the fair market value of the equipment.

 
32.
 MODIFICATION OF LEASE AND PERFORMANCE BY THIRD PARTY

 

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 32.1

Modification of Lease - Any alteration, waiver or modification of the terms and conditions of the Lease shall be valid only if expressly provided in writing.

 32.2

Performance by Third Party - The Lessee, including any person claiming to be a sub-Lessee or assignee of the Lessee, agrees that the payment of rent or the performance of any obligation by any person other than the Lessee shall not constitute an acknowledgment of rights other than those expressly granted hereunder or a waiver of any of Lessor’s rights and recourses.

 Lessor may at any time accept the Rent from the Lessee or from any physical person or moral person using the Equipment and Improvements, without in any way waiving any of Lessor’s rights and recourses under this Lease.

 
33.
 MISCELLANEOUS
 

 33.1

Successors and Assignees - This Lease shall bind the successors and assignees of Lessor and those of the Lessee.

 33.2

Intentionally omitted.

 33.4

No Partnership - parties to this Lease expressly declare that no provision of this Lease and no act on their part shall be intended or shall be interpreted as establishing between them a relationship other than that of lessor and lessee.

 33.5

Solidarity Liability - Should this Lease be signed by more than one person as Lessee and/or Guarantor, each of them shall be solidarily liable to Lessor for payment of rent and the performance and observance of the terms and conditions of this Lease, without the benefit of division, discussion and subrogation.

 33.6

Brokerage Commission - Any brokerage commission with respect to this transaction, including the Option to Purchase (including any offer or agreement preceding this Lease) shall be borne exclusively by the Lessee, and the Lessee shall indemnify Lessor against any claim with respect thereto, except in the case where Lessor has given specific written authorization to a broker or an agent with respect to this transaction.

 33.7

Governing Laws - This Lease shall be interpreted according to the laws of Nevada.

 33.8

Headings and numbers - The headings, captions, article numbers, section numbers, subsection numbers, and table of contents appearing in this Lease are inserted only as a matter of convenience, and in no way define, limit, construe or describe the scope of intent of the parties to this Lease nor in any way affect this Lease.

 33.9

Interpretation - The words “hereinabove”, “herein”, “above-mentioned”, “hereunder” and similar expressions used in any article, section or subsection of this Lease refer to the whole of the Lease and not to that article, section or subsection only, unless otherwise stipulated. Where required by the context hereof, the singular shall include the plural and the neuter gender the masculine and feminine.

 

 

 Operating Lease Agreement Equipment                                       Page 11 of 13

 
 

 IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at 2053 Pabco, Henderson, Nevada on the date indicated above.

 

 
LESSOR 
 LESSEE

 

 

/s/ Jody Hanley
 
/s/ Robert Chance
 Authorized Signature

Authorized Signature
 

 1/20/09
 1/20/09

 

 Jody Hanley

National Automation Services

 

 

 

 Operating Lease Agreement Equipment                                       Page 12 of 13

 
 
Schedule A
 

 

 						
	
 
	 
Asset Description
	  
	
Asset Number
	
 
	 
Asset Value

	 1
	 Yam Lathe
	  
	 -
	  
	 $   12,000.00

	 2
	
Cadilliac Lathe
	
 
	 -
	  
	 17,000.00

	 3
	
Bridgeport Mill
	
 
	 -
	  
	 10,000.00

	 4
	
Lagun Mill
	
 
	 -
	  
	 10,000.00

	 5
	
Chiciago Break
	
 
	 -
	  
	 3,000.00

	 6
	
Sheet Metal Shear
	
 
	 -
	  
	 9,000.00

	 7
	
Vertical Band Saw
	
 
	 -
	  
	 7,000.00

	 8
	
Horizontal Band Saw
	
 
	 -
	  
	 6,000.00

	 9
	
Manual Press
	
 
	 -
	  
	 750.00

	 10
	
Electric Press
	
 
	 -
	  
	 750.00

	 11
	
Tooling for Mill
	
 
	 -
	  
	 5,000.00

	 12
	
Tooling for Lathe's
	
 
	 -
	  
	 7,500.00

	 13
	
Miller Wire Welder
	
 
	 -
	  
	 5,500.00

	 14
	
Bench w/2 Grinders
	
 
	 -
	  
	 300.00

	 15
	
Sheet Metal Rack
	
 
	 -
	  
	 500.00

	 16
	
Nut & Bolt Rack
	
 
	 -
	  
	 2,500.00

	 17
	
Steel Rack
	
 
	 -
	  
	 300.00

	 18
	
Misc. Tools
	
 
	 -
	  
	 7,600.00

	 19
	
Belt Sander
	
 
	 -
	  
	 1,000.00

	 20
	
Chop Saw
	  
	 -
	
 
	 200.00

	 21
	
Small Belt Sander
	
 
	 -
	  
	 600.00

	 22
	
Glass Beader
	
 
	  
	  
	 1,500.00

	  
	  
	
 
	  
	  
	 
$   108,000.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Operating Lease Agreement Equipment                                       Page 13 of 13JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt

THIS LEASE is made between the JAMES J.GRIES SUPPLEMENTAL TRUST FUND, 9
 
CALIFORNIA STREET, HICKSVILLE, NEW YORK, 11801.
 DATED 2-01-08 herein called “Lessor” and INTUITIVE SYSTEMS SOLUTIONS INC., 5229

DAYWOOD STREET, N. LAS VEGAS, NEVADA, 89031 herein called “Lessee”.

Lessee hereby offers to lease from Lessor the premises situated in the City of Henderson, County of Clark, State of Nevada, described as:

2053 PABCO ROAD, HENDERSON, NV. 89015 upon the following TERMS and CONDITIONS:

1. Term and Rent. Lessor demises the above premises for a term of six (6) Months, commencing on 2-01-08 through 7 -31-08, at a monthly rental of $3,000.00 payable in advance on the first day of each month for that month’s rental, during the term of this Lease. All rental payments shall be made to lessor, at the address specified above. Lessee shall pay rent for. February 1,2008 upon lease signing. Lessee may occupy premises upon execution of this lease and all conditions of this lease will apply at such time.

2. Rent Increases. The base rent for six (6) months will be $3,000.00.
 
3. Use. The premises will be used primarily as offices with some warehousing for the business known as INTUITIVE SYSTEM SOLUTIONS INC.

Type of Business: Control System Integrator.
 The premises shall be used for no other purpose. Lessor represents that the premises may lawfully be used for such purpose stated hereinabove.

4. Vehicle Parking Spaces. Lessee shall be entitled to use for lease purposes the total number of four (4) parking spaces on the premises.

5. Care and Maintenance of Premises. Lessee acknowledges that the premises are in good order and repair, unless otherwise indicated in writing herein.

Lessee shall, at his own expense and at all times, maintain the premises in good and safe working condition, including plate glass, electrical wiring, lighting, plumbing and heating installations and any other system or equipment upon the premises and shall surrender the same, at termination hereof, in as good a condition as received, normal wear and tear expected. Lessee shall be responsible for all repairs required, excepting the roof, exterior walls, and structural foundations which shall be maintained by Lessor. Lessee shall also maintain in good condition such portions adjacent to the premises, including but not limited to, sidewalks, driveways, lawns and shrubbery, as would otherwise be required to be maintained by Lessor.

6. Alterations. Lessee agrees not to make any alternations or additions to the premises or any contract therefor without first submitting the plans and specifications for the proposed alterations or additions to Lessor and securing Lessor’s written consent thereto.

Page 1
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt
 Any such alterations or additions shall become the property of Lessor and shall remain upon and be surrendered with the premises or, at Lessor’s option, must be removed from the premises by Lessee at Lessee’s sole costs and expense upon the termination of the Lease. Lessee’s trade fixtures are excluded from this provision. All alterations and additions to the premises shall be done at Lessee’s sole cost and expense. All alterations or additions must comply with all applicable building code requirements and any alteration or addition requiring a permit must have said permit secured prior to its undertaking.

Lessee shall provide to Lessor, with respect to alternations:
 (1) Name of Contractor performing work, and copy of Contractor’s license and bond status;

(2) Build-out plans and subsequent permits for same prior to construction;

(3) Final sign-off from Building Department, Certificate of Occupancy (if applicable) and all material and/or labor lien releases related to alterations.

7. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances, and requirements of all municipal, state, and federal authorities now in force or which may hereafter be in force, pertaining to the premises, occasioned by or affecting the use thereof of Lessee.

8. Assignment and Subletting. Lessee shall not assign the Lease nor shall Lessee sublet any portion of the premises without the prior consent of the Lessor, which shall not be unreasonably withheld. Any such assignment or sublease without such consent shall be void and, at the option of the Lessor, may terminate the Lease.

Should Lessee assignor sublet entire property, Lessor shall receive all proceeds including all rents and any profit. Profit means all amounts paid to Lessee for such assignment of lease or sublease, including key money, monthly rent in excess of the monthly rent payable under the lease, and all fees and other consideration paid for the assignment or sublease.

9. Liens. Lessee shall pay and discharge any mechanic’s materials, license, or other liens against the premises claimed in respect to labors, services, materials, supplies or equipment furnished or alleged to have been furnished to or upon the request of the Lessee. Lessee may contest any such lien claim upon furnishing to Lessor reasonable indemnification of the final payment and discharge thereof.

Lessee has examined and has knowledge of the condition of the premises and hereby agrees to accept the same in “as is” condition, with no warranties from Lessor, either express or implied.

10. Utilities. All applications and connections for necessary utility services on the demised premises shall be made in the name of Lessee only, and Lessee shall be solely liable for utility charges as they become due, including but not limited to, charges for sewer, water, gas, electricity, telephone, and garbage.

Page 2
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt
 11. Entry and Inspection. Lessee shall permit Lessor or Lessor’s agent(s) to enter the premises at reasonable times for the purpose of inspecting the same, and will permit Lessor at any time within ninety (90) days prior to the expiration of the Lease, to place upon the premises any reasonable “To Let” or “For Lease” signs, and permit persons desiring to lease the same to inspect the premises.

12. Possession. If Lessor is unable to deliver possession of the premises at the commencement hereof, Lessor shall not be liable for any damage caused thereby, nor shall the Lease be void or voidable, but Lessee shall not be liable for any rent until possession is delivered.

13. Waste. Lessee agrees not to commit or allow any waste or nuisance upon the premises or any public or service areas adjacent thereto, and further agrees not to use the premises or public or service areas in such a manner as to create any hazard, including but not limited to, fire or other hazard, or to cause injury or damage to person or property.

14. Indemnification. Lessee indemnifies and agrees to hold Lessor harmless against any and all claims of third parties from damages or expense arising from or incident to the business conducted by Lessee in or about the premises or from any action or omission to act of Lessee or its agents, employees, contractors, invitees, licensees, or other persons with or without authority of Lessee in entering upon or performing any act relating to the premises. If any such claim or action is brought against Lessor, Lessee shall assume the defense thereof and shall pay for all attorneys’ fees, court costs, or other expenses incurred in the defense of such claim or action.

Lessee retains all common law and statutory defenses that it has with respect to the duty owed a trespasser, including but not limited to, refraining from any intentional act that causes injury and to warn and/or repair dangerous conditions then known by Lessee.

Lessee is responsible for the proper storage and disposal of any hazardous solvents or substances used in conducting their regular business.

15. Insurance. Lessee, at its expense, shall maintain public liability insurance including bodily injury, property damage insuring Lessee and Lessor with minimum coverage as follows:

One Million ($1,000,000.00) per person/Two Million ($2,000,000.00) per incident.

Lessee shall provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The Certificate shall provide for a ten-day written notice, as provided herein, to Lessor in the event of cancellation or material change of coverage. Lessor retains the right to periodically review and require changes in coverage to maintain adequate insurance.

16. Eminent Domain. If the premises or any part of the building materially affecting Lessee’s use of the premises, shall be taken by eminent domain, the Lease shall terminate on the date when title vests pursuant to such taking. All rent paid by Lessee to Lessor at the time of such taking shall be retained by Lessor.

Page 3
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt
 17. Destruction of Premises. If the premises should be partially or totally destroyed by fire or other casualty insurable under standard fire and extended coverage insurance, so as to become partially or totally unusable, the premises shall be repaired by Lessor as expeditiously as possible at Lessor’s expense. A pro rata portion of the rent shall abate until such repairs and/or restoration are made.

Lessor shall procure and maintain fire and extended coverage insurance on the building located on the premises, but shall not be responsible for the procurement and maintenance of such insurance on the contents thereof. Lessee shall be solely responsible for the procurement and maintenance of fire extended coverage of insurance covering Lessee’s trade fixtures and any other personal property of Lessee upon the premises.

18. Lessor’s Remedies on Default. If Lessee defaults in the payment of rent, or any additional rent, or defaults in the performance of any of the other covenants or conditions hereof, Lessor may give Lessee notice of the default and if Lessee does not cure any such default within Ten (10) Days after the giving of such notice, then Lessor may terminate this Lease on not less than Fifteen (15) Days notice to Lessee.

On the date specified in such notice the term of the Lease shall terminate, and Lessee shall then quit and surrender the premises to Lessor, but Lessee shall remain liable as hereinafter provided. If the Lease shall have been so terminated by lessor, Lessor may at any time thereafter assume possession of the premises by any lawful means and remove Lessee or the occupants and their effects. No failure to enforce any term shall be deemed a waiver.

19. Option to Renew. Provided that the Lessee is not in default in the performance of the Lease, Lessee shall have the option to renew the Lease for an additional term agreeable to both Lessor and Lessee not less than Ninety (90) Days prior to expiration of the initial Lease term. All terms and conditions of the Lease shall apply during the renewal term, except that the monthly rent shall be then determined by the Lessor at a rate which IS reasonable to the Lessor upon consideration of all factors, including, but not limited to, the rates of comparable commercial leases in the community.

20. Late Charges. If Lessor does not receive the full amount of the rent payment by the Fifth of each month, Lessee shall pay Lessor a late charge equal to Ten Percent (10%) of the overdue amount. Lessee will be in default after the Fifteenth (15th) of the month for which rent was not paid. 

21. Security Deposit. Lessee shall pay upon Lease signing a deposit in the amount of $2,500.00. Note; already received 1-2004. Security deposit is for the performance of Lessee’s obligations under the Lease, including without limitation the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of the Lessee, Lessee shall, on the demand of the Lessor, deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of the Lease.

Page 4
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt
 Should the base rent be increased, either through the exercise of an option or for any reason, Lessee shall deposit additional funds with Lessor sufficient to increase the security deposit to an amount equal to the increased base rent.

22. Attorney’s Fees. If suit is brought for recovery of the premises, or for any sum due hereunder, or because of any act which may arise out of the possession of the premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such action, including reasonable attorney’s fees.

23. Waiver. No failure of Lessor to enforce any term hereof shall be deemed a waiver of any term of the Lease. Nothing contained in the Lease shall be construed a waiver of any of the Lessor’s rights under the laws of the State of Nevada.

24. Choice of Law. In the event of any conflict of laws, the law of the State of Nevada will supersede any other potentially applicable body of law and apply to and govern the terms and conditions of the Lease.

25. Notice. Any notice which either party mayor is required to give, shall be given by mailing the same (or by hand delivery), to Lessee at the premises, or Lessor at the address specified above, or at such other place or places as may be designated by the parties from time to time.

26. Heirs, Assigns, and/or Successors. The Lease is binding upon and inures to the benefit of the heirs, assigns and/or successors in interest to the parties in accordance with all other terms and conditions of the Lease.

27. Corporate Authority. If lessee is a corporation, each person signing the Lease on behalf of Lessee represents and warrants that he or she has full authority to do so, and that the lease binds the corporation. Within thirty (30) days after the Lease is signed, Lessee shall deliver to Lessor a certified copy of a Resolution of Lessee’s Board of Directors, authorizing the execution of the Lease or other evidence of such authority reasonably acceptable to Lessor.

28. Subordination. The Lease is, and shall be, subordinated to all existing and future liens and encumbrances against the property.

29. Force Majeure. If Lessor cannot perform any of its obligations due to events beyond Lessor’s control, the time provided for performing such obligations shall be extended by a period of time equal to the duration of such events. These events include, but are not limited to, acts of God, war, civil, commotion, labor disputes, strikes, fire and flood, and weather conditions.

30. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

31. This lease supercedes all past leases.
 Page 5

  

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008.txt
 	  
	
 
	  

	
DATED & DONE FEBRUARY 01, 2008.

	
LESSOR:

	 the JAMES J. GRJES SUPPLEMENTAL TRUST FUND

	 9 CALIFORNIA STREET, HICKSVILLE NEW YORK   11801

	 FEDERAL I.D. #33-632-1126

	 Trustee Signature Florence Gries
	
 

	  
	  /s/ Florence Gries

	  
	 
 
	  
	  

	 Trustee Signature Joseph Gries
	
 /s/ Joseph Gries

	  
	 
 
	  
	  

	 LESSEE:
	  

	 INTUITIVE SYSTEM SOLUTIONS INC.

	 5229 DAYWOOD STREET, N. LAS VEGAS, NEVADA. 89031

	 FEDERAL I.D. #88-049-4173

	 PRESIDENT; JODY R. HANLEY

	
SS ####-##-####

	  

	 Signature
	  
	  

	  
	  /s/ Jody Hanley

	  
	 
 

Page 6
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. monthly.txt

THIS LEASE is made between the JAMES J.GRIES SUPPLEMENTAL TRUST FUND, 9 CALIFORNIA STREET, HICKSVILLE, NEW YORK, 11801.

DATED 2-01-08 herein called lessor “and INTUITIVE SYSTEMS SOLUTIONS INC., 5229 DAYWOOD STREET, N. LAS VEGAS, NEVADA, 89031 herein called Lessee.”

Lessee hereby offers to lease from Lessor the premises situated in the City of Henderson, County of Clark, State of Nevada, described as: 2053 PABCO ROAD, HENDERSON, NV. 89015 upon the following TERMS and CONDITIONS:

1. Term and Rent. Lessor demises the above premises on a Month to Month basis commencing on 8-01-08 through 8 -31-08, at a monthly rental of $3,000.00 payable in advance on the first day of each month for that month’s rental, during the term of this Lease. All rental payments shall be made to lessor, at the address specified above. Lessee shall pay rent for AUGUST 1, 2008, upon lease signing. Lessee may occupy premises upon execution of this lease and all conditions of this lease will apply at such time.

2. Rent Increases. NOTE: TENANT IS RENTING ON A MONTH TO MONTH BASIS. LANDLORD HAS OPTION TO RAISE RENT ON A MONTHLY BASIS.

The base rent for one (1) month will be S3,000.00 and tenant shall give landlord 2 months notice of vacating building.

3. Use. The premises will be used primarily as offices with some warehousing for the business known as INTUITIVE SYSTEM SOLUTIONS INC..

Type of Business: Control System Intergrator.
 The premises shall be used for no other purpose. Lessor represents that the premises may lawfully be used for such purpose stated hereinabove.

4. Vehicle Parking Spaces. Lessee shall be entitled to use for lease purposes the total number of four (4) parking spaces on the premises.

5. Care and Maintenance of Premises. Lessee acknowledges that the premises are in good order and repair, unless otherwise indicated in writing herein.

Lessee shall, at his own expense and at all times, maintain the premises in good and safe working condition, including plate glass, electrical wiring, lighting, plumbing and heating installations and any other system or equipment upon the premises and shall surrender the same, at termination hereof, in as good a condition as received, normal wear and tear expected. Lessee shall be responsible for all repairs required, excepting the roof, exterior walls, and structural foundations which shall be maintained by Lessor. Lessee shall also maintain in good condition such portions adjacent to the premises, including but not limited to, sidewalks, driveways, lawns and shrubbery, as would otherwise be required to be maintained by Lessor.

Page 1
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. monthly.txt

6. Alterations. Lessee agrees not to make any alternations or additions to the premises or any contract therefor without first submitting the plans and specifications for the proposed alterations or additions to Lessor and securing Lessor’s written consent thereto.

Any such alterations or additions shall become the property of Lessor and shall remain upon and be surrendered with the premises or, at Lessor’s option, must be removed from the premises by Lessee at Lessee’s sole costs and expense upon the termination of the Lease. Lessee’s trade fixtures are excluded from this provision. All alterations and additions to the premises shall be done at Lessee’s sole cost and expense. 

All alterations or additions must comply with all applicable building code requirements and any alteration or addition requiring a permit must have said permit secured prior to its undertaking.

Lessee shall provide to Lessor, with respect to alternations:
 
(1) Name of Contractor performing work, and copy of Contractor’s license and bond status;

(2) Build-out plans and subsequent permits for same prior to construction;

(3) Final sign-off from Building Department, Certificate of Occupancy (if applicable) and all material and/or labor lien releases related to alterations.

7. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances, and requirements of all municipal, state, and federal authorities now in force or which may hereafter be in force, pertaining to the premises, occasioned by or affecting the use thereof of Lessee.

8. Assignment and Subletting. Lessee shall not assign the Lease nor shall Lessee sublet any portion of the premises without the prior consent of the Lessor, which shall not be unreasonably withheld. Any such assignment or sublease without such consent shall be void and, at the option of the Lessor, may terminate the Lease.

Should Lessee assignor sublet entire property, Lessor shall receive all proceeds including all rents and any profit. Profit means all amounts paid to Lessee for such assignment of lease or sublease, including key money, monthly rent in excess of the monthly rent payable under the lease, and all fees and other consideration paid for the assignment or sublease.

9. Liens. Lessee shall pay and discharge any mechanic’s materials, license, or other liens against the premises claimed in respect to labors, services, materials, supplies or equipment furnished or alleged to have been furnished to or upon the request of the Lessee. Lessee may contest any such lien claim upon furnishing to Lessor reasonable indemnification of the final payment and discharge thereof.

Lessee has examined and has knowledge of the condition of the premises and hereby agrees to accept the same in “as is “condition, with no warranties from Lessor, either express or implied.

Page 2
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. txt
 
10. Utilities. All applications and connections for necessary utility services on the demised premises shall be made in the name of Lessee only, and Lessee shall be solely liable for utility charges as they become due, including but not limited to, charges for sewer, water, gas, electricity, telephone, and garbage.

11. Entry and Inspection. Lessee shall permit Lessor or Lessor’s agent (s) to enter the premises at reasonable times for the purpose of inspecting the same, and will permit Lessor at any time within ninety (90) days prior to the expiration of the Lease, to place upon the premises any reasonable To Let” or For Lease’signs, and permit persons desiring to lease the same to inspect the premises.

12. Possession. If Lessor is unable to deliver possession of the premises at the commencement hereof Lessor shall not be liable for any damage caused thereby, nor shall the Lease be void or voidable, but Lessee shall not be liable for any rent until possession is delivered.

13. Waste. Lessee agrees not to commit or allow any waste or nuisance upon the premises or any public or service areas adjacent thereto, and further agrees not to use the premises or public or service areas in such a manner as to create any hazard, including but not limited to, fire or other hazard, or to cause injury or damage to person or property.

14. Indemnification. Lessee indemnifies and agrees to hold Lessor harmless against any and all claims of third parties from damages or expense arising from or incident to the business conducted by Lessee in or about the premises or from any action or omission to act of Lessee or its agents, employees, contractors, invitees, licensees, or other persons with or without authority of Lessee in entering upon or performing any act relating to the premises. If any such claim or action is brought against Lessor, Lessee shall assume the defense thereof and shall pay for all attorneys’ fees, court costs, or other expenses incurred in the defense of such claim or action.

Lessee retains all common law and statutory defenses that it has with respect to the duty owed a trespasser, including but not limited to, refraining from any intentional act that causes injury and to warn and/or repair dangerous conditions then known by Lessee.

Lessee is responsible for the proper storage and disposal of any hazardous solvents or substances used in conducting their regular business. 

15. Insurance. Lessee, at its expense, shall maintain public liability insurance including bodily injury, property damage insuring Lessee and Lessor with minimum coverage as follows:

One Million ($1,000,000.00) per person/Two Million ($2,000,000.00) per incident.

Lessee shall provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The Certificate shall provide for a ten-day written notice, as provided herein, to Lessor in the event of cancellation or material change of coverage. Lessor retains the right to periodically review and require changes in coverage to maintain adequate insurance.

Page 3
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. monthly.txt

16. Eminent Domain. If the premises or any part of the building materially affecting Lessee’s use of the premises, shall be taken by eminent domain, the Lease shall terminate on the date when title vests pursuant to such taking. All rent paid by Lessee to Lessor at the time of such taking shall be retained by Lessor.

17. Destruction of Premises. If the premises should be partially or totally destroyed by fire or other casualty insurable under standard fire and extended coverage insurance, so as to become partially or totally unusable, the premises shall be repaired by Lessor as expeditiously as possible at Lessor’s expense. A pro rata portion of the rent shall abate until such repairs and/or restoration are made.

Lessor shall procure and maintain fire and extended coverage insurance on the building located on the premises, but shall not be responsible for the procurement and maintenance of such insurance on the contents thereof. Lessee shall be solely responsible for the procurement and maintenance of fire extended coverage of insurance covering Lessee’s trade fixtures and any other personal property of Lessee upon the premises.

18. Lessor’s Remedies on Default. If Lessee defaults in the payment of rent, or any additional rent, or defaults in the performance of any of the other covenants or conditions hereof Lessor may give Lessee notice of the default and if Lessee does not cure any such default within Ten (10) Days after the giving of such notice, then Lessor may terminate this Lease on not less than Fifteen (15) Days notice to Lessee.

On the date specified in such notice the term of the Lease shall terminate, and Lessee shall then quit and surrender the premises to Lessor, but Lessee shall remain liable as hereinafter provided. If the Lease shall have been so terminated by lessor, Lessor may at any time thereafter assume possession of the premises by any lawful means and remove Lessee or the occupants and their effects. No failure to enforce any term shall be deemed a waiver.

19. Option to Renew. Provided that the Lessee is not in default in the performance of the Lease, Lessee shall have the option to renew the Lease for an additional term agreeable to both Lessor and Lessee not less than Ninety (90) Days prior to expiration of the initial Lease term. All terms and conditions of the Lease shall apply during the renewal term, except that the monthly rent shall be then determined by the Lessor at a rate which IS reasonable to the Lessor upon consideration of all factors, including, but not limited to, the rates of comparable commercial leases in the community.

20. Late Charges. If Lessor does not receive the full amount of the rent payment by the Fifth of each month, Lessee shall pay Lessor a late charge equal to Ten Percent (10%) of the overdue amount. Lessee will be in default after the Fifteenth (15th) of the month for which rent was not paid.

Page 4
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. monthly.txt

21. Security Deposit. Lessee shall pay upon Lease signing a deposit in the amount of $2,500.00.Note; already recieved 1-2004. Security deposit is for the performance of Lessee’s obligations under the Lease, including without limitation the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of the Lessee, Lessee shall, on the demand of the Lessor, deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of the Lease.

Should the base rent be increased, either through the exercise of an option or for any reason, Lessee shall deposit additional funds with Lessor sufficient to increase the security deposit to an amount equal to the increased base rent.

22. Attorney’s Fees. If suit is brought for recovery of the premises, or for any sum due hereunder, or because of any act which may arise out of the possession of the premises, by either party, the prevailing party shall be entitled to all costs incurred in connection with such action, including reasonable attorney’s fees.

23. Waiver. No failure of Lessor to enforce any term hereof shall be deemed a waiver of any term of the Lease. Nothing contained in the Lease shall be construed a waiver of any of the Lessor’s rights under the laws of the State of Nevada.

24. Choice of Law. In the event of any conflict of laws, the law of the State of Nevada will supersede any other potentially applicable body of law and apply to and govern the terms and conditions of the Lease.

25. Notice. Any notice which either party mayor is required to give, shall be given by mailing the same (or by hand delivery), to Lessee at the premises, or Lessor at the address specified above, or at such other place or places as may be designated by the parties from time to time.

26. Heirs, Assigns, and/or Successors. The Lease is binding upon and inures to the benefit of the heirs, assigns and/or successors in interest to the parties in accordance with all other terms and conditions of the Lease.

27. Corporate Authority. If lessee is a corporation, each person signing the Lease on behalf of Lessee represents and warrants that he or she has full authority to do so, and that the lease binds the corporation. Within thirty (30) days after the Lease is signed. Lessee shall deliver to Lessor a certified copy of a Resolution of Lessee’s Board of Directors, authorizing the execution of the Lease or other evidence of such authority reasonably acceptable to Lessor.

28. Subordination. The Lease is, and shall be, subordinated to all existing and future liens and encumbrances against the property.

29. Force Majeure. If Lessor cannot perform any of its obligations due to events beyond Lessor’s control, the time provided for performing such obligations shall be extended by a period of time equal to the duration of such events. These events include, but are not limited to, acts of God, war, civil, commotion, labor disputes, strikes, fire and flood, and weather conditions.

30. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only by a writing signed by both parties.

31. This lease supercedes all past leases.
 
Page 5
 
 

JAMES J. GRIES SUPPLEMENTAL TRUST LEASE 2008. monthly...txt

	  
	  
	
 
	  

	 
DATED & DONE AUGUST 01, 2008.

	
 
	  

	 LESSOR:

	
the JAMES J. GRIES SUPPLEMENTAL TRUST FUND

	
9 CALIFORNIA STREET, HICKSVILLE, NEW YORK 11,

	
FEDERAL I.D. #33-632-1126

	
 

	 Trustee Signature Florence Gries
	  

	  
	  /s/ Florence Gries

	  
	 
 
	  
	  

	 Trustee Signature Joseph Gries
	  

	  
	  /s/ Joseph Gries

	  
	 
 
	 LESSEE:

	
INTUITIVE SYSTEM SOLUTIONS INC.

	
5229 DAYWOOD STREET, N. LAS VEGAS, NEVADA. 89031

	
FEDERAL I.D. #88-049-4173

	
PRESIDENT; JODY R. HANLEY

	
SS ####-##-####
	  

	  
	  

	 Signature
	  
	  

	  
	  /s/ Jody Hanley

	  
	 
 
	 	

 Page 1

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