EXHIBIT 10.14
10.14 Lease Agreement between 3513, L.C. and XxxxxxxxxxxXxx.xxx, Inc.
BIRD CREEK XXX XXXXXX XXXXXXXX
XXXXXXXXXX XXXXX XXXXXXXXX
XXXXX XX XXXXX)(
XXXXXX OF XXXX)(
This contract and agreement of lease entered into by and between 3513. L.C.,
hereinafter called "Landlord" and Communicate Xxx.xxx Inc.
hereinafter called "Tenant", witnesseth:
I. PREMISES. Landlord does hereby lease unto Tenant the following described
space. herein called the Leased Premises. in the building located at 0000
Xxxxxxxxx Xxxxxxx. in the City of Temple, Xxxx County. Texas: Suites 101.102,103
& 104.
2. TERM. The term of this lease shall be for a period of one (I) year,
commencing on April 1, 2001, and terminating on March 31.2002,unless sooner
terminated as hereinafter provided. If the Tenant should remain in possession of
the Leased Premises, with the consent of the Landlord after expiration of this
lease, a new tenancy from month to month shall be created between the Landlord
and Tenant which shall be subject to all the terms and conditions of this lease,
but which shall be terminable by thirty (30) days written notice served by
either Landlord or Tenant on the other party to this lease.
3. USE. The Leased Premises shall be used and occupied by Tenant during the term
hereof for the sole and only purpose of general office use.
4. RENTS. As compensation for the use and occupancy of such premises and the
services to be performed and provided by Landlord, the Tenant agrees to pay to
the Landlord at 0000 X. 00. Xxxxxx. Xxxxx 000. Xxxxxx. Xxxxx 00000, or at such
other address as Landlord may from time to time designate, the sum of $2.712.00
per month, payable in advance on the first day of each and every calendar month
during the term of the lease, if rent is not received by Landlord by the 5th of
each ~nth. Tenant shall pay a late charge of $50.00 plus a penalty of $5.00 per
day until rent is received in full Tenant shall pay $25.00 for each returned
check.
5. LANDLORD.S LIENS. As security for the performance by the Tenant of all
covenants to be paid, kept and performed by him, the Landlord shall have the
benefit of the statutory landlord's preference lien upon all property, fixtures
goods, wares and merchandise of the Tenant that may be placed in or upon the
Leased Premises during the term hereof Cumulative thereof, the Tenant also gives
and grants unto the Landlord an express security interest upon all goods, wares,
merchandise, fixtures and other property of the Tenant which may be placed in or
upon the Leased Premises during the term, which said security interest shall be
second and inferior to any purchase money security interest of any third party
as to any such property and which said security interest herein granted unto
Landlord shall not be applicable as to Tenant's goods, wares and merchandise
daily exposed to sale. Landlord and Tenant mutually covenant and agree that this
lease contract shall also act as a security agreement as between Tenant, as
Debtor, and Landlord, as Secured Party.
6. SERVICES PROVIDED BY LANDLORD. Landlord shall furnish the Tenant, at
Landlord's expense, the following services during the term of this lease:
(a) Restroom facilities for the use of Tenant and Tenant's employees in
common with other tenants and their employee's on the same floor as the
Leased Premises.
(b) Landlord shall maintain and keep the public and common areas of the
building, such as lobbies, stairs, corridors, and restrooms in reasonably
good order and condition, except for damage occasioned by Tenant, or its
employees, agents, or invitees.
( c) Landlord shall make all structural repairs to the building and all
repairs which may be needed to the roof, outer walls, mechanical,
electrical, and plumbing systems in the Leased Premises, excluding repairs
to any non-building standard fixture or other improvements installed or
made by or at the request of Tenant. In the event that any repair or
replacement is required by reason of the negligence or abuse of Tenant or
its agents, employees or invitees, or of any other person using the Leased
Premises with Tenant's consent, express or implied, Landlord may make such
repair and add the cost thereof to the first installment of rent thereafter
becoming due unless Landlord shall have actually recovered such cost
through insurance proceedings.
(d) Tenant shall not install or operate in the Leased Premises any
electrically operated equipment(other than adding machines and other office
equipment normally used in modern offices), or any plumbing fixtures,
without first obtaining the prior written consent of the Landlord. Tenant
shall not install any equipment of any kind or nature whatsoever which
would or might necessitate any changes, replacements, or additions to the
water system or plumbing system, heating system, air conditioning system,
or the electrical system servicing the Leased Premises or any other portion
of the building without prior written consent of the Landlord, and in the
event such consent is granted, the entire cost of such replacements,
changes, or additions shall be paid by the Tenant.
Landlord does not guarantee that any service will be free from reasonable
interruption caused by repairs, improvements, changes in services, alterations,
strikes, labor controversies, accidents or other causes beyond the Landlord's
control, and no such reasonable interruption not caused by the negligence of
Landlord shall be deemed a breach of its obligation there under or render
Landlord liable to Tenant for damages.
7. SERVICES PROVIDED BY TENANT. Tenant shall pay for janitorial and electrical
services used and consumed by it at the Leased Premises.
8. TAXES. Each year during the term of this lease, Landlord shall pay real
estate taxes assessed against the Leased Premises in an amount equal to the
total real estate taxes assessed against the Leased Premises in the base year.
Each year during the term of this lease, Tenant shall pay as additional rental,
upon receipt of a statement from Landlord together with tax statements or other
verification from the proper taxing authority, his pro rata share of any
increase in real estate taxes over the base year on the property of which the
Leased Premises is a part. Any increase in real estate taxes for a fractional
year shall be prorated. The base year shall be 2001. Tenant shall be liable for
all taxes levied or assessed against personal property, furniture, or fixtures
placed by Tenant in the Leased Premises. If any such taxes for which Tenant is
liable are levied or assessed against Landlord, and Landlord elects to pay the
taxes based on such increase, Tenant shall pay to Landlord upon demand that part
of such taxes for which Tenant is primarily liable hereunder.
9. INSURANCE. Landlord shall pay for fire and extended coverage insurance on the
building in which the Leased Premises are located. Tenant shall pay as
additional rental to Landlord during the term hereof, his pro rata share of any
increase in premiums for the insurance required over and above such premiums
paid during the base year of this lease. Tenant shall provide general liability
and property damage insurance for its business operations on the Leased Premises
in the amount of $500,000. Said insurance policies required to be provided by
Tenant herein shall name Landlord as an additional insured and shall be issued
by an insurance company approved by Landlord. Tenant shall provide Landlord with
certificates of insurance evidencing the coverage required herein. Tenant shall
be solely responsible for fire and casualty insurance on Tenant's property on or
about the Leased Premises.
10. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall not conduct in the Leased
Premises any action prohibited by law, and will not conduct therein any lawful
business in an unlawful manner, or permit any nuisance or annoyance to be
maintained in the Leased Premises, or commit any act or carry on any action
which might appreciably damage Landlord's goodwill or reputation or tend to
injure or depreciate the building. Tenant and Tenant's agents, employees,
patrons, and visitors shall comply with all rules and regulations furnished to
Tenant in writing from time to time.
11. CARE OF LEASED PREMISES. Tenant agrees, on behalf of itself, its employees,
and agents, that it shall:
(a) Comply at all times with any and all applicable federal, state, and
local statutes, regulations, ordinances, and other requirements of any
of the constituted public authorities relating to its use and
occupancy of the Leased Premises.
(b) Keep the Leased Premises in good, clean condition; repair all damages
to the Leased Premises in general and specifically replace light
bulbs and spot clean carpet. Reasonable use and wear thereof, damage
from fire and extended coverage type risk, and repairs to the extent
same are Landlord's obligations under the lease are excepted. Tenant
shall replace all glass broken by Tenant, its agents, employees, or
invitees, with glass of the same qualities that broken, except for
glass broken by fire and extended coverage type risk, and commit no
waste in or upon the Leased Premises.
(c) Upon the termination of this Lease in any manner whatsoever, remove
Tenant's goods and effects and those of any other person claiming
under Tenant, and quit and deliver up the Leased Premises to Landlord
peaceably and quietly in as good order and condition as at the
inception of the terms of this lease or as the same hereafter may be
improved by Landlord or Tenant, reasonable use and wear thereof,
damage from fire and extended coverage type risks, and repairs to the
extent same are Landlord's obligation under this lease excepted. Goods
and effects not removed by Tenant at the termination of this lease,
however terminated, shall be considered abandoned, and Landlord may
dispose of and/or store the same as it deems expedient, the cost
thereof to be charged to Tenant.
(d) Not overload, damage or deface the Leased Premises or the building or
do any act which might make void or violable any insurance on the
Leased Premises or the building and/or the surrounding property, or
which may render an increased or extra premium payable for insurance
(and without prejudice to any right or remedy of Landlord regarding
this subparagraph, Landlord shall have right to collect from Tenant,
upon demand, any such increase or extra premium).
(e) Nor install or authorize the installation of any coin operated vending
machines whatsoever on the Leased Premises.
12. ALTERATION AND ADDITIONS. Tenants shall make no alterations or additions to
the Leased Premises without first obtaining Landlord's written consent, and if
Landlord so consents, Tenant agrees to submit the name of the contractor or
xxxxxxx to Landlord for Landlord's approval prior to the commencement of any
such work, and such work will be performed in a manner and at times satisfactory
to and approved In advance in writing by Landlord. All such alterations and
additions, except trade fixtures and movable office furniture and equipment,
shall be Landlord's property, and shall remain on the Leased Premises at the
termination of this lease without compensation to Tenant.
Tenant will not mar, deface, or drill into the walls, floors, partitions,
woodwork, or plaster of the Leased Premises, and will not drive nails or insert
screws or bolts therein, except as required to install bookshelves and office
equipment. Tenant will be liable at the termination of the lease for any damage
caused by the installation of such bookshelves or office equipment.
13. SIGNS. No sign, placard, picture, advertisement or notice shall be displayed
or attached to any part of the building except on the walls within the Leased
Premises. Upon reasonable notice to Tenant, Landlord shall have the right to
remove any such prohibited sign, placard, picture, advertisement, name or notice
at the expense of Tenant, and Landlord shall not be liable in damages for such
removal Approved signs or lettering shall be printed, painted, affixed, or
inscribed at the expense of Tenant in a manner, size, material, and style
acceptable to Landlord. Landlord will provide nameplate for Tenant's entry door
at Landlord's expense.
14. WINDOW COVERINGS. Tenants shall not install or use any blinds, shades.
screens, or awnings in a window or door of the Leased Premises unless approved
in writing by the Landlord. In order that the exterior of the building in which
the Leased Premises are located shall have a uniform and attractive appearance,
Tenant shall not use any draperies or window coverings in any window or exterior
glass surface of the Leased Premises other than window coverings approved by
Landlord.
15. FIRE OR OTHER CASUALTY. If at any time during the term hereof, the Leased
Premises shall be damaged or destroyed by fire, the elements, or any other
casualty, Tenant shall give immediate notice thereof to Landlord, and Landlord
shall proceed to repair the same, provided such damage is susceptible to repair
within a reasonable time after its occurrence. If such damage is not susceptible
to repair within a reasonable time after its occurrence, both Landlord and
Tenant shall have the option of terminating this lease. If the lease continues,
and if such damage is not caused by the negligence of Tenant, its agents,
customers, or invitees, the rental hereunder shall xxxxx proportionally during
the period of repair to the extent that the Leased Premises are rendered unfit
for use by Tenant in the ordinary conduct of its business. If the building is
destroyed to the extent that substantial alteration or reconstruction of the
building shall, in Landlord's sole opinion, be required, Landlord may terminate
this Lease whether or not Leased Premises be actually damaged. In no event shall
Landlord be required to repair any damage to any property installed by Tenant.
16. CONDEMNATION PROCEEDINGS, If the whole or any part of the building shall be
taken or condemned by a competent authority for any public or quasi-public use
or purpose (or sold to such an authority pursuant to the threat of such taking),
the term of this Lease shall cease and terminate from the date when possession
is delivered to the condemning authority. In the event the Leased Premises are
similarly taken, condelm1ed or sold in whole or in part, the term of this Lease
shall cease and terminate on the date when possession is delivered to the
condemning authority. In the event shall Tenant have any claim to any award made
as the result of such taking, nor shall Tenant have any claim against Landlord
for the value of any unexpired term of this Lease, but the rent shall be abated
as of the date of such termination.
17. ASSIGNMENT OR SUBLETTING. The Tenant shall not assign this lease or sublease
the Leased Premises or any part thereof or mortgage, pledge or hypothecate this
leasehold interest or grant any concession or license within the Leased Premises
unless and until the express written consent of the Landlord is first had and
obtained. Notwithstanding any such written consent, the Tenant shall remain
jointly and severally liable with any such assignee or sublease under the term
hereof. In the event of such assignment or sublease, if the rental due and
payable by the assignee or sublease exceeds the rental due by the Tenant unto
the Landlord under the provisions of his lease, then the Landlord shall be
entitled to any and all such excess rental. If the Tenant at any time shall
attempt to assign this lease or sublet the Leased Premises or any part thereof
without the Landlord's written consent, the Landlord, for a period of thirty
(30) days from the date of such attempted assignment or sublease by the Tenant,
shall have the right to cancel this lease (or the applicable portion thereof) as
to a partial assignment or subletting as of the commencement date stated in any
such attempted assignment and subletting.
18. DEFAULT AND REMEDIES. Each of the following events shall be deemed to be an
event of default:
(a) The failure to pay any installment of rent or other money obligation
herein required to be paid by Tenant unto the Landlord, or the default by
the Tenant in the performance of or violation of any other term or
provision of this lease, if such default is not cured within fifteen (15)
days after written notice by the Landlord;
(b) The filing or execution or occurrence of a petition in bankruptcy or
other insolvency proceeding by or against the Tenant, or a petition or
answer seeking relief under any provision of the Bankruptcy Act, or an
assignment for the benefit of creditors, or a petition or other proceeding
by or against the Tenant for the appointment of a trustee, receiver or
liquidator of the Tenant or any of the Tenant's properties, or a proceeding
by a governmental authority for the dissolution or liquidation of the
Tenant; or the levying of a writ of execution or attachment on or against
the Tenant's property, or the creation of a mechanic's lien or claim
therefor against the Leased Premises or any improvements thereon caused by
or resulting from any work performed, materials furnished, or obligation
incurred by or at the request of the Tenant; and
(c) The abandonment or vacating of the Leased Premises or any substantial
portion thereof by the Tenant.
Should any of the above events of default occur, the Landlord may, without
notice to the Tenant, thereupon re-enter and resume possession of the Leased
Premises and remove the Tenant and Tenant's property therefrom, and at Landlords
option may either terminate this lease, or, without terminating the lease, lease
the Leased Premises or any portion thereof for the account of the Tenant for the
remainder of the term or for such term or terms as the landlord shall see fit.
Should the Landlord elect to re-let the Leased Premises for a new tenant or
tenants, then the Tenant hereunder shall also be liable for the cost of any
reletting, including brokerage and reasonable attorney's fees. In addition, the
Tenant shall pay for each month of Tenant's unexpired term the monthly rental
above agreed to be paid by the Tenant, less such part thereof, if any, as the
Landlord shall have been able to collect from any new tenant or tenants, with
the Landlord being expressly entitled to retain as his own property any excess
rentals, if any, so collected by the Landlord. Landlord may, however, should he
so desire, without reentering or resuming possession of the Leased Premises, and
without terminating this lease, enforce, by all proper and legal suits and other
means, his rights hereunder, including the collection of rent. All rights and
remedies of Landlord hereunder shall be cumulative, and none shall be exclusive
of the other, and shall be in addition to any remedy at law. Tenant hereby
waives any right of redemption to which he or any person claiming under him
might be entitled. Waiver of any default shall not operate to waive or in any
manner affect any subsequent default hereunder.
19. BANKRUPTCY CLAUSE. Notwithstanding any of the provisions of paragraph 18
above, if a petition in bankruptcy be filed by or against the Tenant in a court
of competent jurisdiction, the Landlord shall have the right, at his option, to
terminate this lease by giving notice in writing, by registered mai1, to the
receiver or trustee in bankruptcy, no later than ten (10) days from the date of
the receipt by the Landlord of notice from such receiver or trustee in
bankruptcy of the filing of such petition in bankruptcy by or against the
Tenant.
20. INDEMNITY .The Landlord shall not be liable to Tenant, his agents,
employees, patrons, clients, customers, licensees, or invitees for any loss or
damage occurring within the Leased Premises or for any damages sustained to
person or property by reason of any defects known to tenant in the Leased
Premises or the building of which the Leased Premises are a part or the failure
of the Landlord to repair such defects where Landlord is obligated to repair,
until and unless the Tenant shall have given Landlord notice in writing of the
existence of the defects. Further, Tenant agrees to indemnify and hold Landlord
harmless from any claim, damage, or loss resulting from the use of the Leased
Premises by Tenant or anyone else.
21. SECURITY AGAINST BURGLARY, ETC. Tenant will be responsible for securing the
Leased Premises against burglary, robbery, theft, and other unlawful and
unauthorized entry, and Landlord shall have no liability to Tenant or to
Tenant's employees, customers, agents, or invitees for any loss occurring on the
Leased Premises or in the building of which the Leased Premises are a part, by
reason of burglary, theft, robbery, unlawful or unauthorized entry or otherwise
by persons other than Landlord, Landlord's agents, or employees.
All doors to the Leased Premises will have locks, and Landlord will furnish
Tenant one complete set of keys to such locks. Tenant will be responsible for
making copies of keys for employees. On the termination of this lease, all keys
will be returned to Landlord.
22. ENTRY BY LANDLORD. Landlord and Landlord's agents, building manager,
employees and independent contractors shall have the right to enter the Leased
Premises at all reasonable times, to examine the same or to show them to
prospective purchasers or mortgages of the building, or any portion thereof, and
to make such decoration, repairs, alterations, improvements, or additions as
Landlord deems desirable, and Landlord and Landlord's agents, employees and
independent contractors shall re allowed to take all material into and upon the
Leased Premises that may re required therefor without the same constituting an
eviction of Tenant, in whole or in part, and the rent reserved shall in no way
xxxxx while such decorations, repairs, alterations, improvements, or additions
are being made, by reason of loss or interruption of the use of the Leased
Premises by Tenant or otherwise. During the six (6) months prior to the
expiration of this Lease, Landlord may exhibit the Leased Premises to
prospective tenants thereof.
23. NOTICES. Landlord and Tenant mutually agree that all notices sent or
required to re sent by either party hereto unto the other party hereto shall re
deemed sufficient if giving in writing and forwarded by Certified Mail. Return
Receipt Requested, postage prepaid. The parties hereto may from time to time by
written notice given unto the other party change the address to which notices
shall re sent, but unless and until so changed, it is agreed that all notices
relevant hereto shall re sent:
a) To the Landlord: 3513, L.C.
0000 X. 000x Xxxxxx, Xxxxx 000
Xxxxxx, XX 00000
b) To the Tenant: Communicate Xxx.xxx Inc.
0000 Xxxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxx, XX 00000
24. SUBORDINATION. This lease is subordinate to all ground or underlying leases
and to all mortgages or deeds of trust which may now or hereafter re secured
upon the building and/or the property on which it is located and to all
renewals, modifications, consolidations, replacements, and extensions thereof
This clause shall re self-operative and no further instrument of subordination
shall re required, but in confirmation of such subordination, Tenant shall
execute and deliver to Landlord, within fifteen (15) days after request, any
certificate that Landlord or any mortgage may require acknowledging such
subordination. Notwithstanding the foregoing, the party holding an instrument to
which this Lease shall re subordinate shall have the right to recognize and
preserve this Lease in the event of any foreclosure sale or possessor action
and, in such case, this Lease shall continue in fun force and effect at the
option of such party, and Tenant shall execute, acknowledge, and deliver any
instrun1ent that has for its purpose and effect the confirmation of such
attornment.
25. NO PAROLE REPRESENTATIONS. Tenant recognizes that neither Landlord nor
anyone acting for Landlord has made any representations or promise with respect
to the building, the property upon which it is located or the Leased Premises,
except as herein expressly set forth and no rights, easements, or licenses are
acquired by Tenant, by implication or otherwise, except as expressly set forth
in the provision of this Lease. Taking possession of the Leased Premises by
Tenant shall be conclusive that Tenant accepts same "as is" and that the Leased
Premises and the building were in good and satisfactory condition at the time
such possession was so taken.
26. HEIRS AND EXECUTORS BOUND; AMENDMENTS. The covenants, conditions and
agreements contained in this lease shall bind and inure to the benefit of
Landlord and Tenant and their respective heirs, distributes, executors,
administrators, successors, and except as otherwise provided in this lease,
assigns. The terms, provisions, covenants and conditions contained in this lease
are complete agreement of the parties and may not re amended, altered or changed
except by instrument in writing executed by the parties hereto.
27. PLACE OF PERFORMANCE. All covenants herein set forth shall re paid, kept and
performed at Xxxx County, Texas.
28. RENEWAL OPTION. If, at the end of the primary term of this lease, Tenant is
not in default on any of the terms, conditions, or covenants of the lease,
Tenant, but not any assignee or subtenant of Tenant. is hereby granted two (2)
options to renew this lease for ,an additional term of one (1) year upon the
same terms and conditions contained in the lease with the
following exceptions:
(a) The renewal option term will contain no further renewal options unless
granted by Landlord in writing; and,
(b) The rental rate for the 1st renewed term shall be $2,848.00 per month.
(c) The rental rate for the 2nd renewed term shall be $2,990.00 per month.
If Tenant desires to renew this lease, Tenant will notify Landlord of its
intention to renew no later than two (2) months prior to the expiration date of
the lease.
29. SECURITY DEPOSIT. For the purpose of securing the prompt and faithful
performance by Tenant of all and singular Tenant's agreements, covenants and
obligations hereunder, Tenant, upon the execution hereof, has deposited with
Landlord the sum of $1,151.25 which is to be held by the Landlord during the
term hereof, but Landlord shall be under no obligation to keep such deposit in a
separate account or to pay interest to Tenant on such deposit. If and when all
Tenant's agreements, covenants and obligations hereunder shall have been fully
performed, Landlord shall promptly turn over to Tenant the amount of such
deposit. If Tenant defaults in performing any of the Tenant's agreements,
covenants or obligations hereunder, Landlord may (but is not required to), from
time to time, use and apply as much of said security deposit as shall be
necessary to cure such default and, on such event, Tenant shall within five (5)
days after demand therefore, restore said deposit to its original amount.
30. SPECIAL PROVISIONS. None
Executed this 9th day of March 2001.
3513, L.C. (Landlord)
By: XXXXXX XXXXX, CHARTER REAL
ESTATE SERVICES, INC., AGENT
XxxxxxxxxxxXxx.Xxx Inc. (Tenant)
By: XXXXX XXXXXXX, President
