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COMMERCIAL LEASE AGREEMENT
The undersigned CALDERA SYSTEMS, INC., (hereinafter called "Tenant") has
on this
1st day of September, 1998, leased from Caldera, Inc. (hereinafter
called
"Caldera") the premises located at 240 West Center Street, in the City
of Orem,
County of Utah, State of Utah, beginning on the 1st day of September,
1998, and
terminating on the 31st day of August, 2000. This is a TWENTY-FOUR (24)
month
Lease Agreement.
THE PARTIES FURTHER AGREE AS FOLLOWS:
BASE RENT The monthly base rent for said premises Tenant agrees to pay
is A
PORTION OF THE ENTIRE ESNET LEASE BASED ON SQUARE FOOTAGE TO BE
DETERMINED
MONTHLY paid upon receipt of monthly invoice from Caldera. The rate
shall
increase based on the same terms outlined in the EsNet lease agreement
with
Caldera Inc.
PAYMENT SCHEDULE Tenant agrees that the total rent is due and payable to
Caldera
on receipt of monthly invoice from Caldera.
INDEMNIFICATION Tenant accepts the premises in its present condition.
Caldera
shall not be liable for any damage or injury to Tenant, or any other
person, or
to any property, occurring on the premises, or any part thereof, or in
common
areas thereof, for any act of neglect of employees or other tenants of
said
building, or for any reason from whatsoever cause in and about said
premises,
except as provided by law.
DUTIES, CARE, AND RESPONSIBILITY OF TENANT The Tenant shall take good
care of
the property and shall not alter or decorate property in any way without
prior
written consent from Caldera. Tenant shall not allow accumulation of
refuse or
waste matter on or about the premises. Tenant shall not allow the demise
or
destruction of lawn and landscaping. Tenant shall maintain the premises,
including floor coverings, draperies, and patio in good order and in a
clean and
sanitary condition. Tenant agrees to reimburse Caldera for any damages
caused by
Tenant's neglect or misuse.
DUTIES, CARE, AND RESPONSIBILITY OF CALDERA The building owner and
Caldera
agree, at their expense, to maintain any furnishings provided by them in
a safe
and operable condition, unless caused by misuse or neglect of Tenant.
USE Tenant agrees that the premises are to be used and occupied by
Tenant and
Tenant's employees as a commercial office space and for IT Training, and
for no
other purpose.
OPERATING EXPENSES In addition to the Base Rent above, Tenant agrees to
pay
PROPORTIONATE PORTIONS OF UTILITIES AND CLEANING EXPENSES on receipt of
monthly
invoice from Caldera. These charges include charges for Janitorial,
Utilities,
General, Repair/Maintenance, Management Fees to building owner, Real
Estate
Taxes and Insurance.
ACCESS Tenant shall allow the building owner and Caldera access at all
reasonable times to said premises for the purpose of inspection or to
show said
premises to prospective purchases, mortgages, or to make necessary
repairs or
improvements.
SUBLEASE Tenant shall not sell or assign this Lease Agreement or
sublease the
premises without the written consent of Caldera.
MUNICIPAL REGULATIONS Tenant and Caldera shall comply with all laws,
ordinances,
public rules and government regulations applicable to said premises or
the use
thereof.
2
ATTORNEY'S FEES In the event of any action or proceeding brought by
either party
against the other under this agreement, the prevailing party shall be
entitled
to recover for the fees of its attorneys in such action or proceeding
such
amount(s) as the court my adjudge as reasonable attorney's fees.
DAMAGE TO PREMISES In the event the premises is damaged by fire or other
casualty, the building owner shall have the option to either (1) repair
or
restore such damage, this agreement continuing in full force and effect,
or (2)
give notice to Tenant at any time within THIRTY (30) days after such
damage
terminating this Lease Agreement as of a date to be specified in such
notice. In
the event of the filing of such notice, this agreement shall expire and
all
interest of the Tenant in the premises shall terminate.
WAIVER The waiver by Caldera of the breach by Tenant of any term,
covenant, or
condition herein contained shall not be deemed to be a waiver of any
subsequent
breach of the same or any other term, covenant, or condition herein
contained.
All parts and portions of this agreement shall be given full force and
effect.
HOLDOVER TENANCY Upon termination of this Lease Agreement a month-to-
month
tenancy shall be in effect. Caldera must terminate a month-to-month
tenancy by
delivering to the other party ninety (90) days' written notice to
vacate.
RULES AND REGULATIONS Tenant shall comply with all state and local laws,
the
rules shown herein below and any additional rules applicable to the
premises
which Caldera may deem necessary and which are publicly posted:
1. No animals or pets of any kind shall be kept or harbored in or
about
premises without written permission from Caldera.
2. All garbage shall be put into appropriate container.
3. Tenant shall report defects or needed repairs immediately to
Caldera.
4. Tenants are not permitted access to the roof except in case of
emergency.
5. Gasoline or any explosive liquid on the premises is
prohibited.
PREMISES CONDITION The Tenant acknowledges that inspection of the
premises has
been made and that said premises are in good condition and fire alarm
system is
operational. Any exceptions to be noted hereunder. If the Tenant fails
to notify
Caldera by a written statement within THREE (3) days after occupancy of
any
deficiencies not previously noted hereunder shall be the conclusive
determination of the premises conditions at the time of occupancy. THIS
REPORT
WILL BE USED TO DETERMINE THE REFUND OF SECURITY DEPOSIT (IF ANY) AT THE
END OF
YOUR TENANCY.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and
year
first written above.
CALDERA, INC. CALDERA SYSTEMS, INC.
By: /s/ RAY NOORDA By: /s/ RANSOM H. LOVE
------------------------------
-------------------------------
Title: Chairman Title: President & CEO
----------------------------
----------------------------
Date: 12/20/99 Date: 12/20/99
-----------------------------
-----------------------------
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