COMMERCIAL LEASE
This lease is made between Xxxxx Xxxxx Ottesor, herein called Lessor, and
Sportan United Industries, Inc., herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the City
of Huntsville, County of Xxxxxx, State of Texas, described as 1,100 square feet
of office space and warehouse at 3__0 Old Houston Road, upon the following TERMS
and CONDITIONS:
1. Term and Rent. Lessor demises the above premises for a term of 1
year, commencing October 1, 1999 and terminating on September 30, 2000 or sooner
as provided herein at the annual rental of ($) 21,000.00 payable in equal
installments in advance on the 15th 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.
2. Use. Lessee shall use and occupy the premises for storage and sale
of sport novelty items. The premises shall be used for no other purpose.
Lessor represents that the premises may lawfully be used for such purpose.
3. Care and Maintenance of Premises. Lessee acknowledges that the
premises are in good order and repair, unless otherwise indicated herein.
Lessee shall, at his own expense and at all times, maintain the premises in good
and safe condition, including plate glass, electrical wiring, plumbing and
heating installations and any other system or equipment upon the premises, and
shall surrender the same at termination hereof, in as good condition as
received, normal wear and tear excepted. Lessee shall be responsible for all
repairs required, excepting the roof, exterior walls, structural foundations,
and.
4. Alterations. Lessee shall not without first obtaining the written
consent of Lessor, make any alterations, additions, or improvements, in, to or
about the premises.
5. Ordinance 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 by Lessee.
6. Assignment and Subletting. Lessee shall not assign this lease or
sublet any portion of the premises without prior written consent of the Lessor,
which shall not be unreasonably withheld. Any such assignment or subletting
without consent shall be void and, at the option of the Lessor, may terminate
this lease.
7. 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
those for sewer, water, gas, electricity, and telephone services.
8. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents
to enter upon the premises at reasonable time and upon reasonable notice, for
the purpose of inspecting the same, and will permit Lessor at any time within
sixty (60) days prior to the expiration of this lease, to place upon the
premises any usual "To Let" or "For Lease" signs, and permit persons desiring to
lease the same to inspect the premises thereafter.
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9. 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 this lease be void or voidable, but Lessee shall not
be liable for any rent until possession is delivered. Lessee may terminate this
lease if possession is not delivered within 15 days of the commencement of the
term hereof.
10. Indemnification of Lessor. Lessor shall not be liable for any
damage or injury to Lessee, or any other person, or to any property, occurring
on the demised premises or any part thereof, and Lessee agrees to hold Lessor
harmless from any claim for damages, no matter how caused.
11. Insurance. Lessee, at his expense, shall maintain plate glass and
public liability insurance including bodily injury and property damage insuring
Lessee and Lessor with minimum coverage as follows:
Lessor shall provide Lessor with a Certificate of Insurance showing Lessor
as additional insured. The Certificate shall provide for a ten-day written
notice to Lessor in the event of cancellation or material change of coverage.
To the maximum extent permitted by insurance policies which may be owned by
Lessor or Lessee, Lessee and Lessor, for the benefit of each other, waive any
and all rights of subrogation which might otherwise exist.
12. Eminent Domain. If the premises or any part thereof or any estate
therein, or any other part of the building materially affecting Lessee's use of
the premise, shall be taken by eminent domain, this lease shall terminate on the
date when title vests pursuant to such taking. The rent, and any additional
rent, shall be apportioned as of the termination date, and any rent paid for any
period beyond that date shall be repaid to Lessee. Lessee shall not be entitled
to any part of the award for such taking of 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.
13. Destruction of Premises. In the event of a partial destruction of
the premises during the term hereof, from any cause, Lessor shall forthwith
repair the same, provided that such repairs can be made within sixty (60) days
under existing governmental laws and regulations, but such partial destruction
shall not terminate this lease, except that Lessee shall be entitled to a
proportionate reduction of rent while such repairs are being made, based upon
the extent to which the making of such repairs shall interfere with the business
of Lessee on the premises. If such repairs cannot be made within said sixty
(60) days, Lessor, at his option, may make the same within a reasonable time,
this lease continuing in effect with the rent proportionately abated as
aforesaid, and in the event that Lessor shall not elect to make such repairs
which cannot be made within (60) days, this lease may be terminated at the
option of either party. In the event that the building in which the demised
premises may be situated is destroyed to an extent of not less than one-third of
the replacement costs thereof, Lessor may elect to terminate this lease whether
the demised premises be injured or not. A total destruction of the building in
which the premises may be situated shall terminate this lease.
14. 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 such default
and if Lessee does not cure any such default within 15 days, after the giving of
such notice (of if such other default is of such nature that it cannot be
completely cured within such period, if Lessee does not commence such curing
within such 30 days and thereafter proceed with reasonable diligence and in good
faith to cure such default), then Lessor may terminate this lease or not less
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than 15 days' notice to Lessee. On the date specified in such notice the term
of this lease shall terminate, and Lessee shall then quit and surrender the
premises to Lessor, but Lessee shall remain liable as hereinafter provided. If
this lease shall have been so terminated by Lessor, Lessor may at any time
thereafter resume possession of the premises by any lawful means and remove
Lessee or other occupants and their effects. No failure to enforce any term
shall be deemed a waiver.
15. Security Deposit. Lessee shall deposit with Lessor on the signing
of this lease the sum of zero Dollars ($) 0.00 as security deposit for the
performance of Lessee's obligations under this lease, including without
limitation, the surrender of possession of the premises in Lessor as herein
provided. If Lessor applies any part of the deposit to cure any default of
Lessee, Lessee shall upon demand deposit with Lessor the amount so applied so
that Lessor shall have the full deposit on hand at all times during the term of
this lease.
16. Tax Increase. In the event there is any increase during any year
of the term of this lease in the City, County or State real estate taxes over
and above the amount of such taxes assessed for the tax year during which the
term of this lease commences, whether because of increased rate or violation,
Lessee shall pay to Lessor upon presentation of paid tax bills an amount equal
to 100 % of the increase in taxes upon the land and building in which the leased
premises are situated. In the event that such taxes are assessed for a tax year
extending beyond the term of the lease, the obligation of Lessee shall be
proportionate to the portion of the lease term included in such year.
17. Common Area Expenses. In the event the demised premises are
situated in a shopping center or in a commercial building in which there are
common areas, Lessee agrees to pay his pro rata share of maintenance, taxes, and
insurance for the common area.
18. Attorney's Fees. In case suit should be 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 a reasonable attorney's fee.
19. Notices. Any notice which either party may, or is required to
give, shall be given by mailing the same, postage prepaid, to Lessee at the
premises, or Lessor at the address shown below, or at such other places as may
be designated by the parties from time to time.
20. Heirs, Assigns, Successors. This lease is binding upon and inures
to the benefit of the heirs, assigns and successors in interest to the parties.
21. Option to Renew. Provided that Lessee is not in default in the
performance of this lease, Lessee shall have the option to renew the lease for
an additional term of 12 months commencing at the expiration of the initial
lease term. All of the terms and conditions of the lease shall apply during the
renewal term except that the monthly rent shall be the sum of $2,500. The
option shall be exercised by written notice given to Lessor not less than 30
days prior to the expiration of the initial lease term. If notice is not given
in the manner provided herein within the time specified, this option shall
expire.
22. Subordination. This lease is and shall be subordinated to all
existing and future liens and encumbrances against the property.
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23. Entire Agreement. The foregoing constitutes the entire agreement
between the parties and may be modified only by a writing signed by both
parties. The following Exhibits, if any, have been made a part of this lease
before the parties' execution hereof:
Signed this 1st day of October, 1999.
Sportan United Industries, Inc.
By By
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Lessee Lessor
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