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HomeMy WebLinkAboutRES 07-075 RESOLUTION NO. 07-075 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a one (1) year Lease Agreement with David Derharoutian (Landlord)for$896 per month for property located at 8155 Phelan Blvd., Beaumont,Texas,for operation of EMS Med Station No.4. The Lease Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2007. ar, pJJMO AW it C /VI'� 111 Mayor Guy N. Goodson - N / e° i 40P TExAs AssomuoN OF REALToRn COMMERCIAL LEASE U86 OF TKS FORM RY PERSONS.WMO ARE NOT UGMSGRS Of THE TEXAS ASSOMTFON OF REALTORS®i8 NOTAUTMORIZED. OTe aAmbeytlen of REALS0I1M,Inc.2M 1. PARTIES: The parties to this lease are: Tenant~ CITY OE' BEAUldONT P.O. Box 3827 BEAUMONT Tx 77704 and Landlord: DAVID DER13ARoUTrm ; and 2. LEASED PREMISES: A. Landlord leases to Tenant the following described real property, known as the"leased premises," along with all its improvements (Check only one box): a (1) Multiple-Tenant Property: Suite or Unit Number containing approximately square feet of rentable area in (building name) at (address) in (city), (counter), Texas, which Is legally described on attached Exhibit or as follows: d (2) Single-Tenant Property: The real property at: 8155 PRELAN (address) in BEAUMONT (city), JEFFERSON (county), Texas, which is legally described on attached Exhibit c WILLIAMS or as follows: ABSTRACT 59 TR 72-A SP-6 BLK. 18 B. if Paragraph 2A(1) applies: (1) "Property" means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and (2) the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. 3. TERM: A. Term: The term of this lease is 12 months and o days, commencing on: A.PR.TL 1 2007 (Commencement Date) and ending on MARCH 31 2008 (Expiration Date). (TAR-2101)6-7-02 Initialed for Identification by Tenants: ,and Landlord_ Page 2 of 15 Produced with ZpFoim""by RE For ntNet,LLC 18025 Flfteen Mile Road,Clinton Township,Michigan 48035 www.zioform.com 8155 PHELAN.zf Z d ZlL 'ON HViS3 IV3d 031 30 EXHIBIT "A" 8155 PHEI,AN Commercial Lease concerning: BEAi1b0WT. TX 77746 S. Delay of Occupancy: If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant for such delay and this lease will remain enforceable. In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration bate will also be extended by a like number of,days, so that the length of this lease remains unchanged. if Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant. This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs. C. Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for the leased premises if required by a governmental body. 4. RENT AND EXPENSES: A. Base Monthly Rent: On or before the first day of each month wring this lease, Tenant will pay Landlord base monthly rent as described on attached Exhibit _ or as follows: from _ Dr?-1 1,_2007 to March 31, 2008 $ from to $ from to $ from to $ from to $ B. First Full Month's Rent:The first full base monthly rent is due on or before April 1, 2007 C. Prorated Rent: If the Commencement Date is on a day other than the first day of a month, Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction: the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences. The prorated rent is due on or before the Commencement Date. D. Additional Rent: In addition to the base monthly rent and prorated rent, Tenant will p-ay Landlord all other amounts, as provided by the attached (Check all that apply.): (1) Commercial Expense Reimbursement Addendum ❑ (2) Commercial Percentage Rent Addendum C] (3) Commercial Parking Addendum C3 (4) All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this lease. E_ Place of Payment: Tenant will remit all amounts due Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in wrttIng: Name: DAVID DERSARpUTTn*z c/o STACY TYMTER Address: 8 umoNT AREA FEnzgAL cR=IT iJNION (TAR-2101)6-7-02 Initialed fbr Identification by Tenants: ,and Landlord: Page 3 015 produced withMpFarmTM by RE FormsNe4 u.c 19025 Fften Mile mod,Minton Towrmhip.MicHgan 48o35 www2worm.com 8155 Pl-�-Zf S d ZlL 'ON 3iViS3 1d3� NVOIHM M60 :Z LM 'El 'M 8155 PUSLAN Commercial Lease concerning: BFAUMONT, TX 77706 F. Method of Payment: Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after providing written notice to Tenant may require Tenant to pay subsequent amounts that become due under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this Lease for Tenant's failure to make timely payments with good funds. G. Late Charges: If Landlord does not actually receive a rent payment at the designated place of payment within 5 days after the date it is due, Tenant will pay Landlord a late charge Equal to 5% of the amount due. In this paragraph, the mailbox is not the agent for receipt for Landlord. The late charge is a cost associated with the collection of rent and Landlord's acceptance of a late charge does not waive Landlord's right to exercise remedies under Paragraph 20. H. Returned Checks: Tenant will pay$25.00 (not to exceed$25) for each check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment. 5. SECURITY DEPOSIT: PA A. Upon execution of this lease, Tenant will pay$ l�li to Landlord as a security deposit. B. Landlord may apply the security deposit to any amounts owed by Tenant under this lease. If Landlord applies any part of the security deposit during any time this lease is in effect to amounts owed by Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to the amount stated. C. After Tenant surrenders the leased premises to Landlord and provides Landlord written notice of Tenant's forwarding address, Landlord will, not later than the time required by §93.005, Texas Property Cade, refund the security deposit less any amounts applied toward amounts owed by Tenant or other charges authorized by this lease. The parties agree that Landlord acts in good faith if Landlord accounts for the security deposit within the time stated. 6. TAXES: Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises. 7. UTILITIES: A. The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.) (1) Water NA Landlord Tenant x (2) Sewer d D (3) Electric C3 ❑ d (4) Gas (5) Telephone d d (6) Trash d ❑ (8) Cable d d (9) All other utilities ❑ ❑ d (7AR-2101)6-7-02 Initialed for Identification by Tenants: ,^ ,and Landlord: 4( Page 4 of 15 Produced with ZipForrn-by RE FonnsNet.LLC 18025 Fifteen Mile Road,Clinton Township,Michigan 48o3s www.zi nn. gjgg FMAN-f ti d ZlL 'ON hViS3 1Vh Nb'OIf3AV N60 : � LOH 'El 'HA 8155 PEMLW Commercial Lease concerning: S TJMOKT, TX 77706 B. The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility service provider. The responsible party may select the. utility service provider except that if Tenant selects the provider any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold. if Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount. C. Notice: Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant's intended use. D. After-Hours HVAC Charges:"HVAC services" means the utility expenses to heat and cool the leased premises. (Check one box only.) C3 (1) Landlord is obligated to provide the HVAC services to the leased premises only during the Property's operating hours specified under Paragraph 9C. C] (2) Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C .for no additional charge and will, at Tenant's request, provide HVAC services to the leased premises during other hours for an additional charge of S per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be rounded up to the next half hour. Tenant will comply with Landlord's procedures to make a request to provide the additional HVAC services under this paragraph. C3 (3) Tenant will pay for the HVAC services under this lease. 8, INSURANCE: Ci TJ 15 SUV7 1NSLTE-1--> - must, at Tenam#s expense Fneintain In full IeFee and effnet' an insurer authorized to operate in Texas: ' (1) pu ' liability insurance in an amount not less than $1,000,000.00 on an occurrenc sis naming Landlor an additional insured; and (2) personal pro damage insurance for Tenant's business operations contents on the leased premises in an am t sufficient to replace such contents after a ca loss. B. Before the Commencement Date, nant must provide Lan with a copy of the insurance certificates evidencing the required coverage. if insuran age changes in any manner or degree at any time this lease is in effect, Tenant must, no e n 10 days after the change, provide Landlord a copy of an insurance certificate evidenein ge, C. If Tenant fails to maintain th Ired insurance in full for effect at all times this lease is in effect, Landlord may: (1) purchase in that will provide Landlord the same covera the required insurance and Tenant Immediately reimburse Landlord for such expense; or (2) e e Landlord's remedies under Paragraph 20. .6!Unless the parties agree otherwise, Landlord will, at Landlord's expense, maintain in full fo nd effect insurance for fire and extended coverage in an amount to cover the reasonable replacement co f the improvements of the Property and public liability insurance in an amount that Landlord determi (TAR-2101)6.7-02 initiated for Identification by Tenants: ,and Landlord: Page 5 of 15 Produced with TjpFOmtTM by FtE ForcmmNet LLC 18025 Fifteen Mile Road,Cli ton Township,Michigan 40033 www.adform.com 8155 PHM AN.zf S 'd ZlL 'ON hViS3 1d3� NVOA30 AdE :Z L40Z 'El 'PA 8155 PBELAN commercial Lease conceming: B , TX '17706 E. If there is an increase in Landlord's insurance premiums for the leased premises or Property or its contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase imme lately after Landlord notifies Tenant of the increase. Any charge to Tenant under this Paragraph will be equal t� all amount the increase in Landlord's Insurance premium.Cd46eA by 1',,h17V Li5,- 2 9. USE AND HOURS: A. Tenant may use the leased premises for the following purpose and no other: EMEAMrCY =1CAL SERVICE FOR CI Y OF BEAOMONT INCLM)ING STORAGE _01E 2ZRGENCY UNIT AND LIVING QUARTERS FOR MOIFLQXXES. B. Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased f premises during business hours that are typical of the industry in which Tenant represents it operates. r C. The Property maintains operating hours of(specify hours, .days of week, and if inclusive or exclusive of weekends and holidays). 24 Kg= A DAY — SEVEN DAYS A WEER _ 10.LEGAL COMPLIANCE: A. Tenant may not use or permit any part of the leased premises to be used for: (1) any activity which is a nuisance or is offensive, noisy, or dangerous; (2) any activity that interferes with any other tenant's normal business operations or Landlord's management of the Property; (3) any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant, governmental order, owners' association rules, tenants' association rules, Landlord's rules or regulations, or this lease; (4) any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance; (5) any activity that violates any applicable federal, state, or local law, including but not limited to those laws related to air quality, water quality, hazardous materials, wastewater, waste disposal, air emissions, or other environmental matters; (6) the permanent or temporary storage of any hazardous material; or (7) B. "Hazardous material' means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law, regulation, ordinance, or rule existing as of the date of this lease or later enacted. C: Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio requirements, and other matters that may relate to Tenant's intended use. Tenant must satisfy itself that the leased premises may be used as Tenant intends by independently investigating all matters related to the use of the leased premises or Property. Tenant agrees that it is not relying on any warranty or representation made by Landlord. Landlord's agent or any broker concerning the use of the leased premises or Property. (TAR-2101)6-7-02 Initialed for Identification by Tenants: and Landlord: Page 6 of 15 Produced with ZipFormTM by RE FormsNet,LLC 18025 Fifteen Mile Road,Clintdn Township.Mthigm 48035 inww.zioformeam 8155 PHEL.AN.zf 9 'd llC 'ON hViS3 1b3� NVOIflM WdOI :l LOH 'El 'M 8155 PEEX" commercial Lease concerning: BEAUMONT TX 77706 11.SIGNS: A. Tenant may not post or paint any signs at, on, or about the leased premises or Property without Landlord's written consent. Landlord may remove any unauthorized sign, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign. S. Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any gov>ammental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property. C. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all signs that were placed on the Property or leased premises by or at the request of Tenant. Any signs that Landlord does not require Tenant to remove and that are fixtures, become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 12.ACCESS BY LANDLORD: A. During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if: (1) entry is made with Tenant's permission; or (2) entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenant's business operations when accessing the leased premises. S. During the last 30 days of this lease, Landlord may place a "For Lease" or similarly worded sign in the leased premises. 13, MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is) condition unless expressly noted otherwise in this lease. Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property. 14. MOVE-OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY: A. At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises in a clean condition free of all trash, debris, personal property, hazardous materials, and environmental contaminants. B. if Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may: (1) require Tenant, at Tenant's expense, to remove the personal property by providing written notice to Tenant; or (2) retain such personal property as forfeited property to Landlord. C. "Surrenders' means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident, or abuse. D. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenant's expense, to remove, without damage to the Property or.leased premises, any or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any fixtures that Landlord does not require Tenant to remove become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. (TAR-2901)6-7-02 Initialed for Identif cation by Tenants: ,and Landlord: Page 7 of 15 Produced with DpForm"'by RE PormsNet.LLC 18025 FT taen Mile Road,Clinton Township,Mohigen 48035 www.varC em 8155 PHELAN.Zf L 'd ZlL 'ON hViS3 1d3� WId3& AdOI :Z LON 'El 'PA 8155 PAELAN Commercial Lease concerning: BEAUMONT I TX 77706 15. MAINTENANCE AND REPAIR$: A. Cleaning: Tenant must kep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate recieptacles. d Landlord a Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the Property type. B. Repairs of Conditions Caused by a Pa Each party must promptly repair a condition in need of repair that Is caused, either intentionally or negligently, by that party or that party/$ guests, patrons, invitees, contractors or permitted subtenants. C. Repair and Maintenance Responsibility Except as provided by paragraph 1513, the party designated below, at Its expense, is responsible to maintain and repair the following specified items in the leased premises. The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items, the a designated to maintain the item must Complete and pay the expense of the modification. The specified items include and relate only to real property in the leased premises. Tenant is responsible for the repair and maintenance of its personal property. (Check a#that apply.) NA Landlord Tenant (1) f=oundation, exterior walls, roof, and other structural components ❑ a a (2) Glass and windows ❑ (3) Fire protection equipment and fire sprinkler systems d (4) Exterior & overhead doors, including closure devices, molding d d locks, and hardware (5) Grounds maintenance, including landscaping and ground d El (6) Interior doors, including closure devices, frames, molding, locks, a d d and hardware (7) Parking areas and walks ❑ ❑ ❑ (8) Plumbing systems, dr ;Wage systems, electrical systems,(ballast ❑ `� y hand lamp replacement, and mechanical systems, except those specifically designated dtherwise "i✓ ii'�►1T (9) Heating Ventilation and Air Conditioning (HVAC)systems d (10) Signs and lighting: (a) Pylon (b) Facia 0 ❑ d (c) Monument ❑ ❑ d (d) Door/Suite ❑ d d (11) Extermination and pest control, excluding wood-destroying insects ❑ d (12) Storage yards and storage buildings ❑ a (13) Wood-destroying insect treatment and repairs ❑ ❑ (14) Cranes and related systems ❑ (16)a a a (17) All other items and systems. a d D. Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons. (TAR-2101)6-7-02 Initialed for Identiricatiron by Tenants: ,and Landlord, Page 8 of 15 Produced with ZpFoM17lw by RE Fom*Nek LLC 18023 Fifteen we Road,Clinton Town@Np,Michigan Q035 ,A .zioror n.com 8155 PBEI.AN.zf 8 d zlL 'ON hViS3 lVh NVOId3Wd Wdl l Z LOH '8l 'dbW 8155 PHELAN Commercial Lease concerning: APAUMQNT I TX 77706 E. HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(9), Tenant d is M is not required to maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord may do so and charge Tenant the expense of such a maintenance and service contract or exercise Landlord's remedies under Paragraph 20. F. Common Areas. Landlord will maintain any common areas in the Property In a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially Impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in Compliance with Landlord's rules and restrictions. Tenant may not solicit any business in the common areas or interfere with any other person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2)applies, G. Notice of Re airs:Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair.All requests for repairs to Landlord must be in writing. H. Failure to Repair:Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain; or(2) exercise Landlord's remedies under Paragraph 20. 16. ALTERATIONS: A. Tenant may not alter, improve, or add to the Property or the leased premises without Landlord's written consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises. B. Tenant may not alter any locks or any security devices on the Property or the leased premises without Landlord's consent. If Landlord authorizes the changing, addition, or rekeying of any locks or other security devices, Tenant must immediately deliver the new keys and access devices to Landlord. C. if a governmental order requires alteration or modification to the leased premises,the party obligated to maintain and repair the item to be modified or altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order. D. Any alterations, improvements, fixtures or additions to the Property or leased premises installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing. 17. LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be encumbered in any way. if Tenant causes a lien to be filed against the Property Tenant will within 20 days after receipt of Landlord's demand: 1 g p �y or leased premises, record; or(2) take action to discharge the lien. Tenant will provide Landlord a copy aof any lien obtains pursuant to this paragraph. (TAR-2101)6-7-02 Initialed for Identification by Tenants: 2in>:t Landlord: � Page 9 of 15 Pfeducad with ZipFo►m"'by RE FOMItNat,LLC 18025 Fifteen Mils Road,Clinton Township,Michigan 48033 www.ziofrnm.cnm - 815SPHFLAN.zf 6 'd ZlL 'ON LViS3 lVD NVOIf3Wd Wdl l Z LOOZ 'El 'M 8155 PEEELAS Commercial Lease concerning: AX&M ONV TX 77706 18. LIABILITY:To the extent Permitted by law, Landlord is NOT responsible to Tenant or Tenant's emolovees patrons, guests, or invitees for any damages iniuries or losses to person or property caused by A. an act, omission, or neglect of:Tenant: Tenant's agent;Tenant's Guest•Tenant's emolovees Tenant's patrons. Tenants invitees or any other tenant on the Properfy B. fire, flood, water leaks Ice snow, hail winds explosion smoke riot strike interruption of utilities theft burglary, robbent assault vandalism other ersons environmental contaminants or other occurrences or casualty losses W-4 19. INDEMNITY: Each iparty will -M, hold Hte oroperty damacie, Personal iniury, suits actions liabilities damages, cost of-repairs or service to the leased premises or Property, or any other loss caused ne-gligently or otherwise—by that party or that party's employees, patrons, guests, or invitees 20, DEFAULT; A. If Landlord fails to comply with this lease within 30 days after Tenant notifies Landlord of Landlord's failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law. if, however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not be in default if the cure is commenced within the 30-day period and is diligently pursued. B. If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 days after it is due, Tenant will be in default. If Tenant fails to comply with this lease for any other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in default. C. If Tenant is in default, Landlord may: (I) terminate Tenant's right to occupy the leased premises by providing Tenant with at least 3 days written notice; and (ii) accelerate all rents which are payable during the remainder of this lease or any renewal period without notice or demand. Landlord will attempt to mitigate any damage or loss caused by Tenant's breach by using commercially reasonable means, If Tenant is in default, Tenant will be liable for: (1) any lost rent; (2) Landlord's cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees necessary to relet the leased premises; (3) repairs to the leased premises for use beyond normal wear and tear, (4) all Landlord's costs associated with eviction of Tenant, such as attorney's fees, court costs, and prejudgment interest; (5) all Landlord's costs associated with collection of rent such as collection fees, late charges, and returned check charges; (6) cost of removing any of Tenant's equipment or fixtures left on the leased premises or Property; (7) cost to remove any trash, debris, personal property, hazardous materials, or environmental contaminants left by Tenant or Tenant's employees, patrons, guests, or invitees in the leased premises or Property; (8) cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property; (9) any other recovery to which Landlord may be entitled under this lease or under law. 21. ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT: Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to: (a) abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and (d) "lock-out,of Tenant. (TAR-2101)6-7-02 ihitialed for Identification by Tenants: ,and Landlord: 7to Page 10 of 15 Produced with ZipFOM-by RE FormsNet,LLC 16025 Fft"n Mile Road.Clinton Township,Michigan 48035 wwwzioform.mm 5755 PHELAN,2f 0 l d ZlL 'ON hViS3 ]Vh NVDA30 Md : Z LOOZ 'El 'HA a is 5 PHEIJW Commercial Lease Conceming: BEAUMONT. TX 77706 ' 22. HOLDOVER: If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord_ No holding over by Tenant, with or without the consent of Landlord, will extend this lease. Tenant will Rent for any holdover period will be 2 times the base monthly rent plus any additional rent calculated on a daily basis and will be immediately due and payable daily without notice or demand. ` 23. ' th 24. ASSIGNMENT AND SUBLETTING: Landlord may assign this tease to any subsequent owner of the Properly. Tenant may not assign this lease or sublet any part of the leased premises without Landlord's written consent. An assignment of this lease or subletting of the leased premises without Landlord's written consent is voidable by Landlord. If Tenant assigns this lease or sublets any part of the leased premises, Tenant will remain liable for all of Tenant's obligations under this lease regardless if the assignment or y sublease is made with or without the consent of Landlord. 25, RELOCATION: d A. By providing Tenant with not less than 90 days advanced written notice, Landlord 'may require Tenant to relocate to another location in the property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements. Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location. "Moving expenses" means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees, wiring companies for connecting and disconnecting Tenant's office equipment required by the relocation, and printing companies for reprinting Tenant's stationary and business cards. A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or unit number will automatically be amended. ❑ B. Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior consent. 26. SUBORDINATION; A. This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to: (1) any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that Landlord authorizes; (2) all advances made under any such lien, encumbrance, or ground lease; (3) the interest payable on any such lien or encumbrance; (4) any and all renewals and extensions of any such lien, encumbrance, or ground lease; (5) any restrictive covenant affecting the leased premises or the Property; and (6) the rights of any owners' association affecting the leased premises or Property. B. Tenant must, on demand, execute a subordination, attornment, and non-disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition that this lease and Tenant's rights under this lease are recognized by the lien-holder. (TAR-2101)$-7-02 Initialed for Identification by Tenants: ,and Landlord: iC Page 11 of 15 Produced with ZipFOrrnTM oy RE Formshlet,LLC 18075 Fifteen Mile Road,clinton Township,Michigan 40035 www worm.com 8155 PHELAN.zf l l 'd Z 'ON 31ViS3 1VD N` ON3W'd WdZI Z L00Z 'El 'M 6155 psEi� Commercial Lease concerning: BE&rJMONT t'X 77706 cute and deliver to landlord an estoppel certificate that identifies: ' A. a 'reach of the lease; S. the the rrent rent payment and rent schedule; C. the date the rent payment is due; D. any advance rent ents; E. the amount of the secu eposit; F. any claims for any offsets; G. the then current term of the lease; H. any renewal options; I. Tenant's possession and acceptance of the le d premises and improvements; J. any ownership interest by Tenant; and 28. CASUALTY LOSS: A. Tenant must immediately notify Landlord Of any casualty loss in the [eased premises. Within 20 days after receipt of Tenant's notice of a casualty loss, Landlord will notify Tenant if the leased premises are less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially restore the [eased premises within 120 days after Tenant notifies Landlord of the casualty loss. B. If the leased premises are less than 50% unusable and Landlord can substantially restore the leased Premises within 120 days after Tenant notifies Landlord of the casualty, Landlord will restore the leased premises to substantially the same condition as before the casualty. if Landlord fails to substantially restore within the time required,Tenant may terminate this lease. C. If the leased premises are more than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may:L(1) terminate this lease; or (2) restore the leased premises to substantially the same condition as before the casualty. if Landlord chooses to restore and does not substantially restore the leased premises within the time required, Tenant may terminate this lease. D. If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss, Landlord may: (1) choose not to restore and terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give Tenant the option to terminate this lease by notifying Landlord within 10 days. E. If this lease does not terminate because of a casualty loss, rent will be reduced from the date Tenant notifies Landlord of the casualty loss to the date the leased premises are substantially restored by an amount proportionate to the extent the leased premises are unusable. 29. CONDEMNATION; if after a condemnation or purchase in lieu of condemnation the leased premises are totally unusable for the purposes stated in this lease, this lease will terminate. If after a condemnation or purchase in lieu of condemnation the leased premises or property are partially unusable for the purposes of this lease, this lease will continue arrd rent will be reduced in an amount proportionate to the extent the leased premises.are unusable. Any condemnation award or proceeds in lieu of condemnation are the property of Landlord and Tenant has no claim to such proceeds or award. Tenant may seek compensation from the condemning authority for its moving expenses and damages to Tenant's personal property. 30. ATTORNEY'S FEES:Any person who is a prevailing pa related to the transaction described in this lease is entitled to in any recoveergprejudgment intereestt,, reasonable under r at'torney's fees, and all other costs of litigation from the nonprevailing party. (TAR-2901) 6-7-02 Initialed for identification by Tenants: and Landlord: Page 92 of 15 Produ08d%ithZipForrnw by RE FomrBNet,LLC 18025 Fifteen Mile Read,crinlon Towhahip,Michigun 48035 NMy Cam 8155 PHELANxf Z 'ON hViS3 lVh NUA30 Ml :l 1001 'El 'M 8155 FHELAx Commercial Lease concerning: BEAM40NT TX 77706 31. REPRESENTATIONS: Tenant's statements in this lease and any application for rental are material representations relied upon by Landlord. Each party signing this lease represents that he or she is of legal age to enter into a binding contract and is authorized to sign the lease. If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default. Landlord is not aware of any material defect on the Property that would affect the health and safety of an ordinary person or any environmental hazard on or affecting the Property that would affect the health or safety of an ordinary person, except: 32. BROKERS: A. The brokers to this lease are: AMERICAN REAL ESTATE — KEI.LI 1�,I1ESE Cooperating Broker License No. Principal Broker License No. Address 3550 DOWLEN BEAUMONT TEXAS 77706 Address Phone 1409)860-2914 (909)866--4473 Fax Phone Fax kmanes3 aiAAr].CBnrAa estate Com E-mail E-mail Cooperating Broker represents Tenant. Principal Broker: (Check only one box) represents Landlord only. ❑ representsTenant only. ❑ is an intermediary between Landlord and Tenant. B. Fees: d (1) Principal Broker's fee will be paid according to: (Check only one box). d (a) a separate Written commission agreement between Principal Broker and: ;C Landlord ❑Tenant. ❑ (b) the attached Addendum for Broker's Fee. ❑ (2) Cooperating Broker's fee will be paid according to: (Check only one box), Cl (a) a separate written commission agreement between Cooperating Broker and: ❑ Principal Broker ❑ Landlord ❑ Tenant. ❑ (b) the attached Addendum for Broker's f=ee, 33. ADDENDA: incorporated into this lease are the addenda, exhibits and other information marked in the Addenda and Exhibit section of the Table of Contents. If Landlord's Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion, amend from time to time. (TAR-2101)6-7-02 Initiated for Ident6cation by Tenants: and Landlord: Page 13 of 15 Produced with ZipForm"'by RE FOM)tNot.LLC 1 Bti25 Fifteen Mile Road,C11116on Township,M;Wigih 48M w&Lzipform.coln 6155 PHHI:ZAN.zf �l d ZIL 'ON hViS3 lfld 00I�30 WdEI : Z LOH 'eI 'M 8155 PHELAN Commercial Lease concerning: BEAUM-ONT, TX 77706 34. NOTICES: All notices under this lease must be in writing and are effective when hand-delivered, sent by mail, or sent by facsimile transmission to: Tenant at the leased premises, and a copy to:C=TY OF BEAOMONT Address: P-0. BOX 3827 SZAM4oNT, TIC. 77704 Phone: Fax: Landlord at: DAVID DERHAROLrr'TAT Address: 17214 sTRATFORD GREEN DR SUGARLAND -T-X-,-77478 Phone: Fax: and a copy to:DAVID DERAARC�TrgIAN Address: K_-_WaIL1 david derharoutian @ornl.ine-de Phone: 495 141-980006 Fax: 35, SPECIAL PROVISIONS: MONTHLY RENTS TO BE MAILED TO: STACY TYWATER BEAUMONT AREA EDUCATORS FEDERAL CREDIT UNION P.O. BOX 751 BEAUMONT, TEXAS 77704 A11 improvements to 8155 Phelan will stay with the property. . If existing carpet is removed, it should be replaced. Tenant responsible for carport & electricity to carport. 36. AGREEMENT OF PARTIES: A. Entire Agreement:This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. S. Binding Effect: This lease is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several:All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its renewal, or its termination is binding on all Tenants. D. Controlling Law: The laws of the State of Texas govern the interpretation, performance, and enforcement of this lease. (TAR-2101)6-7-02 Initialed for identification by Tenants: ,and Landlord: Page 14 of 15 ProdUW With ZipFonn'm by RE FoMaNst LLC 18o26 Fiftoen Mire Road,C1iftn Township,Michigan 48035 www,27ef0=.obm $155 PHMAN2f til d ZlL 'ON 3 Vifl ld3d Nb' lflffl Wd�I :Z LOOZ 'El 'M 8155 PHEIAN Commercial Lease concerning: BEAUMONT. _TX 77706 E. Severable Clauses: If any clause in this lease is found invalid or unenforceable by a court of law, the remainder of this lease will not be affected and all other provisions of this lease will remain valid and enforceable. F. Waiver: Landlord's delay, waiver, or non-enforcement of acceleration, contractual or statutory lien, rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by Tenant or any other term in this lease. G. Quiet Enjoyment: Provided that Tenant is not in default of this lease, Landlord covenants that Tenant will enjoy possession and use of the leased premises free from material interference. H. Force Maieure: If Landlord's performance of a term in this lease is delayed by strike, lock-out, shortage of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for Landlord's performance will be abated until after the delay. 1. Time: Time is of the essence. The parties require strict compliance with the times for performiance. Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections. The parties should seek experts to render such services. READ THIS LEASE CAREFULLY. if you do not understand the effect of this Lease, consult your attorney BEFORE signing. C-xTY OF SLAQMONT DAVID DERHAROUTIAN Tenant Landlord By By Date Date Printed Name CITY OF BEAr71KONT Printed Name DAVID DERHAROUTIAN Title Title Tenant Landlord By By Printed Name Waite Printed Name Date Title Title (TAR-2101)6-7-02 Page 15 of 15 Produced with Z oForm'm by RE F&MUNet.LLC 18025 FRsen Mile Road,Clinton Town6hip,Michlgan 48035 www.zieform.com $155 PHELAN zf 5l 'd ZlL 'ON hViS3 1V3d WId3Wd WdEl :l LOH 'El 'HW