Iceland-Kopavogur-Hlidarsmari 19 Lease - Computer Centre of the Icelandic Savings Banks and Islensk Erfdagreining ehf.
LEASE
1. MAIN ITEMS OF THE LEASE
1.01. Lessor: the Computer Centre of the Icelandic Savings Banks, State Reg.
No. 700389-1119, domiciled at Hlidarsmari 19, Kopavogur.
1.02. Lessee: Islensk erfdagreining ehf., State Reg. No. 691295-3549,
domiciled at Lynghals 1, Reykjavik.
1.03. Leased property: office space at Hlidarsmari 19, Kopavogur. The leased
property is 138.5 square metres on a mezzanine floor over the third
storey, marked as 03-03. The leased property is 148.3 square metres,
but a 10-square metre ventilation room is excluded.
1.04. Activities: development work.
1.05. Period of lease: 18 months.
1.06. First date of Lease: 1 December 1999.
1.07. Final date of Lease: 1 June 2001.
1.08. Type of Lease: temporary.
1.09. Terms of Lease: Monthly payments of ISK 800 per square metre.
1.10. Share in common cost: 4.95% of the total cost of the building. The cost
of electricity is collected according to estimated use (a certified
electrical contractor of the building is preparing a plan for this
purpose).
1.11. Place of lease and other payments: to the account of the Computer
Centre of the Icelandic Savings Banks No. 1100-26-2600 at Icebank Ltd.
1.12. Surety for lease payments and the payment of shared costs: a surety
bond in the amount of ISK 330,000.
2. TYPE OF LEASE
2.1 By this Lease, which constitutes a temporary lease pursuant to the
Leasehold Act No. 36/1994, the Lessee leases the leased property under
the conditions and terms further specified herein. The period of lease
shall begin on 24 November 1999 and end without specific termination or
notice on 24 May 2001. Following this period, the parties may extend
the Lease by three months at a time.
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3. LEASE AMOUNT AND PAYMENT
The rent for the leased property is ISK 110,800 per month. The rent
shall be adjusted in accordance with changes in the consumer price
index, on the basis of the base index of November 1999, i.e. 193.3
points.
Payments on the lease shall be effected on the first date of each
month, and are payable one month in advance at each time. In the event
that the Lessee does not effect payment on the rent within seven days
from the due date, he shall pay the maximum punitive interest permitted
by law for the amount outstanding until the date on which payment is
made.
4. SURETY TO THE LESSOR
For the surety of payments of the lease, cost or possible damage caused
to the premises by the Lessee or persons representing the Lessee, the
Lessee shall submit a bill of exchange as a surety bond in the amount
of ISK 330,000. The bill of exchange shall be issued and accepted by
Islensk erfdagreining ehf.
5. OPERATING COSTS
5.1 The Lessee shall pay the cost of the leased property as regards the use
of hot and cold water as well as electricity. The Lessee shall pay the
cost of cleaning the leased property and a share in the cost of
cleaning the common area, cf. Article 1.10. Also, the Lessee shall pay
costs in relation to the clearing of snow, in proportion with the share
of the leased property in the area surrounding the premises.
5.2 The Lessee shall pay all real property charges on the leased property,
including sewage charges and special tax on business premises, outdoor
space rent, fire insurance and home-owner's insurance.
5.3 Operating costs which the Lessor pays for the Lessee shall be paid by
the Lessee on his receipt of an invoice from the Lessor. In the event
that the Lessee pays operating cost which should be paid by the Lessor,
the Lessee may deduct such cost from the next lease payment.
6. ALTERATIONS OF THE LEASED PROPERTY
6.1 The Lessee may not make changes to the premises, except with the
written approval of the Lessor. The Lessor shall oppose alterations by
the Lessee only with good reason. Such reasons include effect of the
alterations on the appearance, carrying capacity, common area or use of
the building.
Minor repairs of the leased property, such as in relation to detachable
fixtures, partition walls, wall ornaments etc. do not require the
approval of the Lessor.
All of the above alterations by the Lessee shall be at his own expense,
including costs which may fall on the Lessor, other owners or lessees
as a result of such alterations or their approval.
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6.2 All fixtures resulting from alterations shall become the property of
the Lessor at the end of the lease period, unless the Lessor requests
that the Lessee restore the leased property, in its entirety or in
part, to its former condition.
7. MAINTENANCE OF THE LEASED PROPERTY
7.1 The Lessee has inspected the leased property thoroughly and made no
comments. The premises are clean, window panes are intact, and locks,
switches, lavatory facilities, water pipes and drainage pipes are in
good order. The Lessor is not under any obligation to make any changes
to the premises, nor paint or repair it. No inspection of the leased
property shall be carried out, unless such inspection is requested by
either party within one week, at the latest, of the first day of this
Lease. On receipt of the leased property, the Lessee acknowledges that
the leased property is suitable for the activities for which it is
leased, and that it is in a good condition and well maintained.
7.2 The Lessee undertakes to treat the leased property with care and in
accordance with its agreed use.
The Lessee shall at his own cost perform all maintenance of the
specified leased property, including paintwork and repair of locks,
faucets, electrical connections, fixtures etc.
In the event that the leased property or its appurtenances are damaged
by the Lessee, staff or other persons which the Lessee has granted use
of or access to the premises, the Lessee shall make arrangements to
compensate for the damage as soon as possible. If the Lessee neglects
his obligations in this respect, the Lessor may request repair of the
damage at the expense of the Lessee. The Lessor shall seek the opinion
of the municipal building inspector before having the repair carried
out, and obtain the inspector's approval of the cost when the repair
has been completed.
7.3 When the lease period has ended, the Lessee shall return the leased
property to the Lessor together with its appurtenances in the same
condition as he received it. The Lessee bears unlimited liability for
the compensation of all deterioration and damage to the premises, in so
far as such deterioration or damage is not a normal consequence of its
agreed or ordinary use.
7.4 Both parties may request inspection of the leased property at the
beginning and end of the lease period. The parties shall pay equal
shares in the cost of the inspection, unless either party is obviously
the cause of the dispute according to the arbitrator's claims.
7.5 The Lessee shall be responsible for outdoor maintenance as well as the
maintenance of the common area, including the lift; furthermore, the
maintenance of windows from the outside, electrical installations and
pipes to the premises used by the Lessee alone. In the event that the
Lessee is responsible for the need for repairs to any of the above, he
shall pay the cost of such repair.
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7.6 In the event that the Lessee considers the maintenance by the Lessor
inadequate, the Lessee shall request that the Lessor make improvements
and outline in which respect improvements are needed in his opinion.
7.7 Maintenance personnel of the Lessor shall be granted the necessary
access to the leased property during repair work. The Lessor shall take
measures to minimise the disturbance caused to the Lessee by the
repair.
8. USE OF THE LEASED PROPERTY
8.1 The Lessee may use the leased property as an office. He may not use the
leased property in any other manner, except with the approval of the
Lessor. However, the Lessor shall not obstruct other use of the
premises by the Lessee if such use affects neither the Lessor nor other
parties operating in the building.
8.2 The Lessee may not engage in any activities or store any such items in
the leased property which may cause damage to the Lessor or other
parties, or contravenes law or regulations.
8.3 The Lessee shall at all times treat the leased property with due care
and tidiness observe generally accepted practises and rules of conduct
regarding cleanliness, hygiene and healthiness.
The Lessee shall observe generally accepted rules of courtesy, and
ensure that habitual use of the building by others is not disturbed and
that other occupants are not subjected to discomfort or annoyance. The
Lessee shall observe any rules of conduct in the building which have
been or may be established. The Lessor shall ensure that the Lessee
enjoys the rights resulting from such rules of conduct.
9. ACCESS OF THE LESSOR TO THE LEASED PROPERTY
9.1 The Lessor shall have the right of access to the leased property with a
reasonable prior notice and in consultation with the Lessee in the
presence of the Lessee or his representative, to carry out improvements
of the leased property, and for the inspection of its condition and
treatment. Also, the Lessor may exhibit the leased property to
potential purchasers or lessees, provided that he informs the Lessee
with at least 24 hours' notice.
9.2 The Lessor reserves the right to keep in his possession a key at all
times to the leased property, so that he can at any time enter the
ventilation room which is situated within the leased space. The
ventilation room shall be the responsibility of the Lessor in all
respects, and the Lessee shall have no access to the room. For routine
inspection and maintenance of equipment in the ventilation room, the
Lessor shall consult the Lessee on the time for such work to be carried
out.
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10. TRANSFER OF RENTAL RIGHTS
10.1 The Lessee may not transfer his rental rights or sub-lease the leased
property without the consent of the Lessor.
11. CANCELLATION OF LEASE
11.1 This Lease shall be subject to the rules on termination of Chapter III
of the Leasehold Act No. 36/1994.
12. OTHER
12.1 Any dispute arising out of this Lease shall be brought before the
District Court of Reykjavik.
12.2 Any issues which the provisions of this Lease do not cover shall be
subject to the Leasehold Act No. 36/1994.
In witness whereof, the Lessor and Lessee attach their signatures to this Lease
in the presence of witnesses.
Reykjavik, 24 November 1999.
On behalf of On behalf of
the Computer Centre of Islensk erfdagreining ehf.
the Icelandic Savings Banks
[Company signature] Kari Stefansson [sign.]
Witnesses:
Helga Stefansdottir [sign.]
Elin Poroardottir [sign.], Id. No. 060763-4969
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