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Mr. Munro's family trust owns the land. Alondra has a written
ground lease for the Lilac Avenue property. Every year or two,
Mr. Clearman, as Pertinax's general administrative manager, would
adjust the amount of rent paid by Alondra for the Lilac Avenue
property after calling local realtors for going rental rates on
similar properties
UCIC, Alondra, Edco, and Pertinax each have leases with Mr.
Munro for their use and occupancy of the El Centro property.
These leases are all for terms of 20 years. The lease with Edco
is dated November 1, 1978. The lease with Alondra, although
undated, also appears to have commenced on November 1, 1978. The
lease with Pertinax is dated November 1, 1979. These leases
state as initial rental figures $1,000 per month for Alondra,
$500 per month for Edco, and $500 per month for Pertinax. Each
lease provides for periodic rent adjustments in accordance with
the Consumer Price Index, and Mr. Clearman would follow the same
procedure in adjusting the rental rate from time to time as he
did for the Lilac Avenue property. The rent for the El Centro
property would be allocated among UCIC, Alondra, Edco, and
Pertinax in accordance with the amount of space each of them
used. Mr. Clearman would review and adjust the rent allocations
on an annual basis. In general, Alondra's space usage, and thus
its share of the rent, increased over the years, whereas UCIC's
decreased, and Edco's remained fairly constant. There were no
defaults in rental payments by any of the four entities during
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