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HomeMy WebLinkAboutRES 13-085RESOLUTION NO.13 -085 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute a three (3) year lease agreement with Bar C Ranch Company, Inc. for Southeast Texas Auto Theft Task Force office and warehouse space located at 2530 West Cardinal Drive, Suite C, at a monthly rental fee of $1,755.00. The lease agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes; and, BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to execute a forty (40) month lease agreement with Bar C Ranch Company, Inc. for Southeast Texas Auto Theft Task Force office and warehouse space located at 2530 West Cardinal Drive, Suites D and E, at a monthly rental fee of $1,462.50 for months 1 -4 and a monthly rental fee of $2,632.50 for months 5 -40. The lease agreement is substantially in the form attached hereto as Exhibit "B" and made a part hereof for all purposes. 2013. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of April, a i LEASE AGREEMENT 'Phis Lease Agreement is made and entered into this day of _ _, 2013 by and between I3AR C RANCH COMPANY, INC., a Texas Corporation, herein referred to as "Landlord," and CITY OF BEAU MONT /SOUTHEAST TEXAS AUTO THEFT TASK FORCE, herein referred to as "Tenant." ARTICLE I Section 1.01. Leased Premises. Landlord hereby leases and demises to Tenant, and Tenant hereby takes and leases from Landlord, subject to the terms and conditions hereof, warehouse and office space consisting of approximately Three Thousand Nine flundred (3,900) square feet located at 2430 West Cardinal Drive, Suite C, Beaumont, Texas 77705 together with exclusive use of the area enclosed by fencing east of the building (herein referred to as the "Leased Premises" or the "Demised Premises "). During the term of this Lease the Tenant shall have the non - exclusive right to use the parking area and access driveways sewing the building in which the Lease Premises are situated. Section 1.02. Term. The term of this Lease shall be thirty -six (36) months after the commencement date hereof, which shall be deemed to be September 1, 2013, at which point Tenant is obligated to pay Landlord rent as hereinafter provided. Unless earlier terminated under the provisions hereof or earlier extended, this lease shall terminate August 31, 2016. ARTICLE II Section 2.01. Base Rent. As rent for the lease and use of the leased premises, Lessee will pay Lessor as follows: Base Rent shall be calculated as follows: Base Rent Base Rent Rental Period /Sa. Ft./Yr /Month Months 1 -36 $5.40 /Sq. Ft. /Yr $1,755.00 Lessee's Base Rent shall be prorated for partial months, if any, within the term. This rent is payable monthly, in advance, commencing on Commencement Date and continuing monthly thereafter on the first day of each and every calendar month during the term of this lease. Lessee shall pay the rent at 2615 Calder, Suite 1050, Beaumont, "hX 77702 monthly in advance, as aforesaid, as the same shall fall due. Section 2.02. Taxes, Insurance and Maintenance. (a) Landlord is responsible for and shall pay the following: (i) All taxes and similar assessments against the land and the Premises; (ii) Premiums applicable to hazard insurance obtained by Landlord covering the Premises; and (iii) The amount of any fees for the trash dumpsters servicing the Demised Premises. (iv) Common area maintenance expenses, including but not limited to lawn service, outside lighting, project administration and paving. EXHIBIT "A" (b) Tenant's signage shall be installed, maintained and removed at tenants sole cost and expense, and the interior of the Demised Premises, including but not limited to light bulbs, ballasts, interior plumbing, plate windows and doors, overhead doors, door hardware, HVAC and HVAC filters shall be maintained at the sole cost and expense of Tenant and kept by Tenant in good working condition throughout the term of the Lease. Landlord shall deliver the premises to Tenant with all systems in good working order, and in the event any system requires full replacement during the teen hereof, such replacement shall be at Landlord's sole expense unless such replacement is due to the negligence of Tenant or to Tenant's failure to properly maintain such system, in which case such replacement shall be at the sole expense of Tenant. Landlord shall have the right to enter upon the Leased Premises at reasonable times during business howl for the purpose of inspecting the premises in order to determine that maintenance is being properly performed. (c) The foundation, outside plumbing, exterior walls, common area and roof of the building in which the Demised Premises are situated shall be maintained by Landlord, except for damage thereto resulting from acts or negligence of Tenant or Tenant's employees, agents or invitees. Section 2.03. Taxes on Personal Property. Tenant shall be responsible for and shall pay before delinquency all taxes assessed during the term of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by Tenant or others authorized by Tenant. ARTICLE III Section 3.01. Use of Premises. "Tenant shall use the Leased Premises solely for the purpose of conducting the business of the detection, and administration of stolen vehicles and related items and all related uses, but for no other purpose or purposes, without obtaining the prior written consent of Landlord. Tenant shall promptly and continuously comply with all laws, orders, and regulations of the State, County and City affecting the use, occupation, safety, and cleanliness of the premises and Tenant's property. No capital improvement costs are considered to be a part of this Lease Agreement unless specifically agreed to in writing. Section 3.02. Assigning and Subletting. Tenant shall not assign this Lease or sublet the Leased Premises or any part thereof without first obtaining the written consent of Landlord; and if Landlord's consent is obtained, such consent shall not relieve Tenant of its obligations hereunder. Landlord agrees that consent is not to be unreasonably withheld. ARTICLE IV Section 4.01. Loss and Damage. Landlord shall not be liable for any loss or damage to property located on the premises and belonging to 'Tenant or others, such loss or damage resulting from any cause, whether from theft, vandalism or any other cause. All such property shall be kept or stored at the sole risk of Tenant. Landlord shall not be liable for any injury to persons resulting from any occurrence in, on or arising from the use of the Leased Premises, unless caused by the acts of negligence of Landlord, its agents, employees or subcontractors. Section 4.02. Legal Fees The prevailing party shall pay all costs, expense and reasonable attorney's fees that may be incurred or paid by Landlord in successfully enforcing the covenants and agreements in this Lease. Section 4.03. Liability Insurance. Tenant is self - insured as to all liability and maintains an adequate self-insurance fund to pay such claims. As to liability claims resulting from the negligence of Tenant, 'Tenant will assume the responsibility for the processing of such claims and protect Landlord from such claims. ARTICLE V Section 5.01. Notice of Damage. In the event fire, explosion, or any other type of casualty shall damage the Leased Premises, Tenant shall immediately give notice thereof to Landlord. Section 5.02. Damage from Insured Hazard. if the damage is the result of a hazard covered by insurance, then Landlord shall repair any damage restoring the Leased Premises, whereupon Landlord shall be entitled to retain all hazard insurance. If the damage is caused by a non - insured hazard during the term of this Lease, then Landlord shall have the election of terminating the Lease or of repairing the damage whereupon the Lease shall remain in full force and effect. During such time as the Leased Premises are untenantable by virtue of damage, rent shall be abated. Section 5.03. Total Condemnation. If the whole of the Leased Premises shall be taken or condemned by eminent domain, then the term of this Lease shall cease and terminate as of the date that title shall be divested of Landlord, and all rentals (including taxes and insurance) shall be paid to that date, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. Section 5.04. Partial Condemnation. If any part of the Leased Premises shall be taken or condemned by eminent domain for any public or quasi - public use or purpose, and in the event that such partial taking or condemnation shall render the Leased Premises unsuitable for the business of Tenant, then the tern of this Lease shall cease and terminate as of the date of title vesting in such proceeding, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. In the event of a partial taking or condemnation which is not extensive enough to render the premises unsuitable for the business of Tenant, then Landlord may, at its option, promptly make all necessary repairs and alterations necessary to put that portion of the Leased Premises in a condition comparable to its condition at the time of such condemnation less the portion lost in the taking, in which event the terms and conditions of this Lease shall continue in full force and effect except for adjustments to the rental reflecting actual changes in square footage of the premises. Section 5.05. Damages. In the event of any condemnation or taking by eminent domain as herein before provided, whether whole or partial, Tenant hereby expressly waives any right or claim to any part thereof. Notwithstanding that all damages resulting from condemnation and awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises are to belong to Landlord, nothing herein contained shall limit Tenant's right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenants own right arising from any and all damage to Tenant's business by reason of such condemnation and for or on account of any cost or loss incurred by Tenant in removing Tenant's merchandise, furniture, fixtures, leasehold improvements and equipment. ARTICLE VI Section 6.01. Quiet Enjoyment. Upon payment by Tenant of the rents herein provided, and upon the observance and performance of all covenants. terms and conditions on Tenant's part. to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Leased Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terns and conditions of this Lease. Section 6.02. Holding Over. In the event Tenant remains in possession of the Leased Premises after the expiration of this Lease and without the execution of a new lease or extension, it shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to the rental herein provided and otherwise subject to all the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month -to -month tenancy, subject to Landlords right to increase rental as provided under the provisions of Texas law applicable to a month to month tenancy . Section 6.03. Alterations, Etc., by Tenant. Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without the prior written consent of Landlord, except the installation of unattached movable trade fixtures, which may be made or installed without drilling, cutting or otherwise defacing the Leased Premises. All permanent alterations, additions, improvements and fixtures (other than unattached, movable trade fixtures) which may be made or installed by either party hereto upon the Leased Premises shall remain upon and be surrendered with the premises and become the property of Landlord at the termination of this Lease. Tenant shall have the right to install, at its own expense, a sign or signs at the Demised Premises, subject to local ordinances and to Landlord's approval as to size, design, and general decor. Any sign shall be the property of Tenant and must be removed at the end of the tenancy and any non- permanent alterations or improvements. Section 6.04. Surrender of Premises. At the expiration of the tenancy herein created, Tenant shall surrender the Leased Premises in the same or better condition as the Leased Premises were in upon delivery of possession, ordinary wear and tear and damage from the elements excepted. The foregoing sentence shall be inapplicable to a termination occurring by virtue or provision of sections 5.02 or 5.03 hereof. If requested by Landlord, Tenant shall remove all its trade fixtures, and any non- permanent alterations or improvements before surrendering the Leased Premises and shall repair any damage to the Leased Premises caused thereby. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. ARTICLE VII Section 7.01 Offset Statement. Within ten days after request therefor by Landlord, or upon any sale, assignment or hypothecation of the Leased Premises by Landlord, if an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a certificate to any proposed mortgagee or purchaser, or to Landlord, certifying (if such be the case) that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating those claimed by Tenant. Section 7.02. Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Section 7.03 Subordination. It is agreed that the right and interest of Tenant under this Lease shall be subject and subordinate to any mortgages or deeds of trust that may hereafter be placed upon the Leased Premises, and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, modifications, replacements and extensions thereof, if the mortgage or trustee named in said mortgages or deeds of trust shall elect by written notice delivered to 'Tenant to subject and subordinate the right and interest of Tenant under this Lease to the lien of its mortgage or deed of trust and shall agree to recognize this Lease of 'Tenant in the event of foreclosure if Tenant is not in default; but any mortgage or trustee may elect to give the rights and interest of Tenant under this Lease priority over the lien of its mortgage or deed of trust. In the event of either such election, and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interest of Tenant under this Lease shall be deemed to be subordinate to, or to have priority over, as the case may be, the lien of said mortgage or deed of trust, whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust. Tenant shall execute and deliver whatever instruments may be required for such purposes, and in the event Tenant fails so to do within ten (10) days after demand in writing, Tenant does hereby make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do. Section 7.04. Short Form Lease. Landlord and Tenant each agree that at the request of either they will, following the commencement of the term of this Lease, execute and deliver a recordable short-form lease containing the basic provisions of this Lease, acknowledging that Tenant has accepted possession and this lease is operative, and reciting the exact commencement date and termination date of this Lease. ARTICLE VIII Section 8.01. Waste or Nuisance. Tenant shall not commit or suffer to be cornmitted any waste upon the Leased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant of Landlord in the proximity of the Leased Premises. Section 8.02. Governmental Regulations. Tenant shall, at Tenant's sole cost and expense, comply with all requirements and regulations of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all municipal and county ordinances and state and federal statutes now in force or which may hereafter be in force. ARTICLE IX Section 9.01. Acts of Default. Any of the following shall constitute an event of default by Tenant: (a) Failure of Tenant to pay all rental and other charges due hereunder within 15 days after same shall become due; or (b) Failure by 'Tenant to perform any of the other terns, conditions, covenants or obligations of Tenant under this Lease, if such failure shall continue for more than 30 days after written notice thereof shall have been give by Landlord to Tenant; provided, however, that if each failure cannot reasonably be cured within thirty (30) days, Tenant shall not be in default if Tenant commences to cure such failure within the thirty (30) day period and in good faith continues to cure such failure; or (c) Tenant becoming bankrupt or insolvent, or fling any debtor proceedings, or seeking any type of debtor relief, or the filing against Tenant in any court pursuant to any statute either of the United States or of any other state a petition in bankruptcy or insolvency or for an arrangement or for the appointment of a receiver or trustee for all or a portion of Tenant's property, or Tenant making an assignment for the benefit of creditors, or petitioning for or entering into an arrangement with respect to its creditors; or (d) Abandonment of the Leased Premises by Tenant, or (e) Any act or omission by Tenant, which creates or purports to create a lien upon the Leased Premises. Nothing herein shall preclude Tenant's right to seek an equitable recovery for any default by Landlord of any provision of this lease. Section 9.02. Landlord's Remedies. (a) Upon default by Tenant, Landlord shall have the right to re -enter and take possession of the Leased Premises, Should Landlord elect to re- enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law, it may either terminate this Lease or it may from time to time without terminating this Lease, make such alterations and repairs as may be necessary in order to re -let the premises, and re -let said premises or any part thereof for such term or terms (which may be for a term extending beyond the tern of this Lease) and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable; upon each such re- letting the rentals shall be applied, first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such re- letting, including brokerage fees and attorney's fees and of costs of such alterations and repairs; third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. if such rentals received from such re- letting during any month are less than that to be paid during the month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re -entry or taking possession of said premises by Landlord shall be construed as an election on its part to terminate this Lease unless a court of competent jurisdiction thereof should decree the termination. (b) Notwithstanding any such re- letting without termination, landlord may at any time thereafter elect to terminate this Lease for such previous breach. by addition to any other remedies it may have, it may recover from Tenant all damages it may incur by reason of such breach, including the cost of recovering the Leased Premises, reasonable attorney's fees, and including the worth at the time of such tennination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Tenant to Landlord. Section 9.03. Additional Remedies. In case suit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant therein contained on the part of Tenant to be kept or performed, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred therefor, including a reasonable attorney's fee. Any and all actions as may be brought under this Lease shall be brought in Jefferson County, Texas. ARTICLE X Section 10.01. Waiver. One or more waivers of any covenant, term or conditions of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render consent to or approval of any subsequent similar act. Waiver by Landlord of any covenant, term or condition of this Lease or of other or similar covenants, terms or conditions in leases with other Tenants of the Leased Premises or failure of Landlord to require or any other tenant of the Leased Premises to undertake or perform obligations hereunder or other similar obligations shall not be deemed a waiver or failure as to any other person or party. Section 10.02. Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, not shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue and other remedy provided in this Lease. Section 10.03. Notice. Any written notice under this Lease shall be by certified mail or courier, or delivered in person and; (a) If intended for Landlord, addressed or delivered to Landlord at 2615 Calder suite 1050 Beaumont, TX 77702 or at some other address in the U.S.A. as Landlord may designate by written notice; and (b) If intended for Tenant, addressed or delivered to Tenant at the City of Beaumont, P. O. Box 3827, Beaumont, Texas 77704, or at some other address in the U.S.A. as Tenant may designate by written notice. Section 10.04. Landlord's Successors -In- Interest. This provision shall inure to the benefit of Landlord and its assigns and shall be binding upon Tenant and its assigns; and the provisions of this agreement shall be binding upon Landlord only with respect to breaches occurring during the period of ownership of the Leased Premises by Landlord and upon the successors -in- interest of Landlord only during the period of ownership by such successors -in- interest of Landlord. ARTICLE XI Notwithstanding anything contained in this Lease to the contrary, in the event no funds or insufficient funds are appropriated and budgeted or funds are otherwise unavailable by any means whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Tenant. EXECUTED in multiple counterparts, each of which shall be deemed an original. LANDLORD Bar C Ranch Company, Inc. TENANT City of Beaumont/ Southeast Texas Auto Theft Task Force By: By: Michael S. Wakefield Kyle Hayes Property Manager City Manager LEASE AGREEMENT This Lease Agreement is made and entered into this day of , 2013 by and between BAR C RANCH COMPANY, INC., a Texas Corporation, herein referred to as "Landlord," and CITY OF BEAUMONT /SOUTHEAST TEXAS AUTO THEFT TASK FORCE, herein referred to as "Tenant." ARTICLE I Section 1.01. Leased Premises. Landlord hereby leases and demises to Tenant, and Tenant hereby takes and leases from Landlord, subject to the terms and conditions hereof, warehouse and office space consisting of approximately Five Thousand Eight Hundred Fifty (5,850) square feet located at 2430 West Cardinal Drive, Suites D and E, Beaumont, Texas 77705 (herein referred to as the "Leased Premises" or the "Demised Premises "). During the tern of this Lease the Tenant shall have the non - exclusive right to use the parking area and access driveways serving the building in which the Lease Premises are situated. Section 1.02. Terns. The term of this Lease shall be forty (40) months after the commencement date hereof, which shall be deemed to be May 1, 2013, at which point Tenant is obligated to pay Landlord rent as hereinafter provided. Unless earlier terminated under the provisions hereof or earlier extended, this lease shall terminate August 31, 2016, ARTICLE II Section 2.01. Base Rent. As rent for the lease and use of the leased premises, Lessee will pay Lessor as follows: Base Rent shall be calculated as follows: Base Rent Base Rent Rental Period /Sq. Ft. /Yr /Month Months 1-4 $3.00 /Sq. Ft. /Yr 1,462.50 Months 5 -40 $5.40 /Sq. ht. /Yr $2,632.50 Lessee's Base Rent shall be prorated for partial months, if any, within the term. This rent is payable monthly, in advance, commencing on Commencement Date and continuing monthly thereafter on the first day of each and every calendar month during the term of this lease. Lessee shall pay the rent at 2615 Calder, Suite 1050, Beaumont, TX 77702 monthly in advance, as aforesaid, as the same shall fall due. Section 2.02. Taxes, Insurance and Maintenance. (a) Landlord is responsible for and shall pay the following: (i) All taxes and similar assessments against the land and the Premises; (ii) Premiums applicable to hazard insurance obtained by Landlord covering the Premises; and (iii) The amount of any fees for the trash dumpsters servicing the Demised Premises. (iv) Common area maintenance expenses, including but not limited to lawn service, outside lighting, project administration and paving. EXHIBIT "B" (b) Tenant's signage shall be installed, maintained and removed at tenants sole cost and expense, and the interior of the Demised Premises, including but not limited to light bulbs, ballasts, interior plumbing, plate windows and doors, overhead doors, door hardware, FIVAC and HVAC filters shall be maintained at the sole cost and expense of Tenant and kept by Tenant in good working condition throughout the term of the Lease. Landlord shall deliver the premises to Tenant with all systems in good working order, and in the event any system requires full replacement during the term hereof, such replacement shall be at Landlord's sole expense unless such replacement is due to the negligence of Tenant or to Tenant's failure to properly maintain such system, in which case such replacement shall be at the sole expense of Tenant. Landlord shall have the right to enter upon the Leased Premises at reasonable times during business hours for the purpose of inspecting the premises in order to determine that maintenance is being properly performed. (c) The foundation, outside plumbing, exterior walls, common area and roof of the building in which the Demised Premises are situated shall be maintained by Landlord, except for damage thereto resulting from acts or negligence of Tenant or Tenant's employees, agents or invitees. Section 2.03. Taxes on Personal Property. Tenant shall be responsible for and shall pay before delinquency all taxes assessed during the term of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by Tenant or others authorized by Tenant. ARTICLE III Section 3.01. Use of Premises. Tenant shall use the Leased Premises solely for the purpose of conducting the business of the detection, storage and administration of stolen vehicles and related items and all related uses, but for no other purpose or purposes, without obtaining the prior written consent of Landlord. Tenant shall promptly and continuously comply with all laws, orders, and regulations of the State, County and City affecting the use, occupation, safety, and cleanliness of the premises and Tenant's property. No capital improvement costs are considered to be a part of this Lease Agreement unless specifically agreed to in writing. Section 3.02. Assigning and Subletting. Tenant shall not assign this Lease or sublet the Leased Premises or any part thereof without first obtaining the written consent of Landlord; and if Landlord's consent is obtained, such consent shall not relieve Tenant of its obligations hereunder. Landlord agrees that consent is not to be unreasonably withheld. ARTICLE IV Section 4.01. Loss and Damage. Landlord shall not be liable for any loss or damage to property located on the premises and belonging to Tenant or others, such loss or damage resulting from any cause, whether from theft, vandalism or any other cause. All such property shall be kept or stored at the sole risk of Tenant. Landlord shall not be liable for any injury to persons resulting from any occurrence in, on or arising from the use of the Leased Premises, unless caused by the acts of negligence of Landlord, its agents, employees or subcontractors. Section 4.02. Legal Fees The prevailing party shall pay all costs, expense and reasonable attorney's fees that may be incurred or paid by Landlord in successfully enforcing the covenants and agreements in this Lease. Section 4.03. Liability Insurance. Tenant is self - insured as to all liability and maintains an adequate self - insurance fund to pay such claims. As to liability claims resulting from the negligence of Tenant, Tenant will assume the responsibility for the processing of such claims and protect Landlord from such claims. ARTICLE V Section 5.01. Notice of Damage. In the event fire, explosion, or any other type of casualty shall damage the Leased Premises, Tenant shall immediately give notice thereof to Landlord. Section 5.02. Damage from Insured Hazard. If the damage is the result of a hazard covered by insurance, then Landlord shall repair any damage restoring the Leased Premises, whereupon Landlord shall be entitled to retain all hazard insurance. If the damage is caused by a non- insured hazard during the term of this Lease, then Landlord shall have the election of terminating the Lease or of repairing the damage whereupon the Lease shall remain in full force and effect. During such time as the Leased Premises are untenantable by virtue of damage, rent shall be abated. Section 5.03. Total Condemnation. If the whole of the Leased Premises shall be taken or condemned by eminent domain, then the term of this Lease shall cease and terminate as of the date that title shall be divested of Landlord, and all rentals (including taxes and insurance) shall be paid to that date, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. Section 5.04. Partial Condemnation. If any part of the Leased Premises shall be taken or condemned by eminent domain for any public or quasi - public use or purpose, and.in the event that such partial taking or condemnation shall render the Leased Premises unsuitable for the business of Tenant, then the term of this Lease shall cease and terminate as of the date of title vesting in such proceeding, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. In the event of a partial taking or condemnation which is not extensive enough to render the premises unsuitable for the business of Tenant, then Landlord may, at its option, promptly make all necessary repairs and alterations necessary to put that portion of the Leased Premises in a condition comparable to its condition at the time of such condemnation less the portion lost in the taking, in which event the terms and conditions of this Lease shall continue in full force and effect except for adjustments to the rental reflecting actual changes in square footage of the premises. Section 5.05. Damages. In the event of any condemnation or taking by eminent domain as herein before provided, whether whole or partial, Tenant hereby expressly waives any right or claim to any part thereof. Notwithstanding that all damages resulting from condemnation and awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises are to belong to Landlord, nothing herein contained shall limit Tenant's right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right arising from any and all damage to Tenant's business by reason of such condemnation and for or on account of any cost or loss incurred by Tenant in removing Tenant's merchandise, furniture, fixtures, leasehold improvements and equipment. ARTICLE VI Section 6.01. Quiet Enjoyment. Upon payment by Tenant of the rents herein provided, and upon the observance and performance of all covenants, terms and conditions on Tenant's pail to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Leased Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this Lease. Section 6.02. Holding Over. In the event Tenant remains in possession of the Leased Premises after the expiration of this Lease and without the execution of a new lease or extension, it shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to the rental herein provided and otherwise subject to all the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month -to -month tenancy, subject to Landlords right to increase rental as provided under the provisions of Texas law applicable to a month to month tenancy . Section 6.03. Alterations, Etc., by Tenant. Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without the prior written consent of Landlord, except the installation of unattached movable trade fixtures, which may be made or installed without drilling, cutting or otherwise defacing the Leased Premises. All permanent alterations, additions, improvements and fixtures (other than unattached, movable trade fixtures) which may be made or installed by either party hereto upon the Leased Premises shall remain upon and be surrendered with the premises and become the property of Landlord at the termination of this Lease. Tenant shall have the right to install, at its own expense, a sign or signs at the Demised Premises, subject to local ordinances and to Landlord's approval as to size, design, and general decor. Any sign shall be the property of Tenant and must be removed at the end of the tenancy and any non- permanent alterations or improvements. Section 6.04. Surrender of Premises. At the expiration of the tenancy herein created, Tenant shall surrender the Leased Premises in the same or better condition as the Leased Premises were in upon delivery of possession, ordinary wear and tear and damage from the elements excepted. The foregoing sentence shall be inapplicable to a termination occurring by virtue or provision of sections 5.02 or 5.03 hereof. If requested by Landlord, Tenant shall remove all its trade fixtures, and any non- permanent alterations or improvements before surrendering the Leased Premises and shall repair any damage to the Leased Premises caused thereby. `T'enant's obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. ARTICLE VII Section 7.01 Offset Statement. Within ten days after request therefor by Landlord, or upon any sale, assignment or hypothecation of the Leased Premises by Landlord, if an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a certificate to any proposed mortgagee or purchaser, or to Landlord, certifying (if such be the case) that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating those claimed by Tenant. Section 7.02. Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Section 7.03 Subordination. It is agreed that the right and interest of Tenant under this Lease shall be subject and subordinate to any mortgages or deeds of trust that may hereafter be placed upon the Leased Premises, and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, modifications, replacements and extensions thereof, if the mortgage or trustee named in said mortgages or deeds of trust shall elect by written notice delivered to Tenant to subject and subordinate the right and interest of Tenant under this Lease to the lien of its mortgage or deed of trust and shall agree to recognize this Lease of Tenant in the event of foreclosure if Tenant is not in default; but any mortgage or trustee may elect to give the rights and interest of Tenant under this Lease priority over the lien of its mortgage or deed of trust. In the event of either such election, and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interest of Tenant under this Lease shall be deemed to be subordinate to, or to have priority over, as the case may be, the lien of said mortgage or deed of trust, whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust. Tenant shall execute and deliver whatever instruments may be required for such purposes, and in the event'Tenant fails so to do within ten (10) days after demand in writing, Tenant does hereby make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do. Section 7.04. Short Form Lease. Landlord and Tenant each agree that at the request of either they will, following the commencement of the term of this Lease, execute and deliver a recordable short-form lease containing the basic provisions of this Lease, acknowledging that Tenant has accepted possession and this lease is operative, and reciting the exact commencement date and termination date of this Lease. ARTICLE VIII Section 8.01. Waste or Nuisance. Tenant shall not commit or suffer to be committed any waste upon the Leased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant of Landlord in the proximity of the Leased Premises. Section 8.02. Governmental Regulations. Tenant shall, at Tenant's sole cost and expense, comply with all requirements and regulations of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all municipal and county ordinances and state and federal statutes now in force or which may hereafter be in force. ARTICLE IX Section 9.01. Acts of Default. Any of the following shall constitute an event of default by Tenant: (a) Failure of Tenant to pay all rental and other charges due hereunder within 15 days after same shall become due; or (b) Failure by Tenant to perform any of the other terms, conditions, covenants or obligations of Tenant under this Lease, if such failure shall continue for more than 30 days after written notice thereof shall have been give by Landlord to Tenant; provided, however, that if each failure cannot reasonably be cured within thirty (30) days, Tenant shall not be in default if Tenant commences to cure such failure within the thirty (30) day period and in good faith continues to cure such failure; or (c) Tenant becoming bankrupt or insolvent, or filing any debtor proceedings, or seeking any type of debtor relief, or the filing against 'Tenant in any court pursuant to any statute either of the United States or of any other state a petition in bankruptcy or insolvency or for an arrangement or for the appointment of a receiver or trustee for all or a portion of Tenant's property, or Tenant making an assignment for the benefit of creditors, or petitioning for or entering into an arrangement with respect to its creditors; or (d) Abandonment of the Leased Premises by Tenant, or (e) Any act or omission by Tenant, which creates or purports to create a lien upon the Leased Premises. Nothing herein shall preclude Tenant's right to seek an equitable recovery for any default by Landlord of any provision of this lease. Section 9.02. Landlord's Remedies. (a) Upon default by Tenant, Landlord shall have the right to re -enter and take possession of the Leased Premises. Should Landlord elect to re- enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law, it may either terminate this Lease or it may from time to tune without terminating this Lease, make such alterations and repairs as may be necessary in order to re -let the premises, and re -let said premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental or rentals and upon such other terns and conditions as Landlord in its sole discretion may deem advisable; upon each such re- letting the rentals shall be applied, first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such re- letting, including brokerage fees and attorney's fees and of costs of such alterations and repairs; third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. if such rentals received from such re- letting during any month are less than that to be paid during the month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re -entry or taking possession of said premises by Landlord shall be construed as an election on its part to terminate this Lease unless a court of competent jurisdiction thereof should decree the termination. (b) Notwithstanding any such re- letting without termination, landlord may at any time thereafter elect to terminate this Lease for such previous breach. in addition to any other remedies it may have, it may recover from Tenant all damages it may incur by reason of such breach, including the cost of recovering the Leased Premises, reasonable attorney's fees, and including the worth at the time of such tennination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Tenant to Landlord. Section 9.03. Additional Remedies. In case suit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant therein contained on the part of Tenant to be kept or perfonned, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred therefor, including a reasonable attorney's fee, Any and all actions as may be brought under this Lease shall be brought in Jefferson County, Texas. ARTICLE X Section 10.01. Waiver. One or more waivers of any covenant, term or conditions of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render consent to or approval of any subsequent similar act. Waiver by Landlord of any covenant, term or condition of this Lease or of other or similar covenants, terms or conditions in leases with other 'Tenants of the Leased Premises or failure of Landlord to require or any other tenant of the Leased Premises to undertake or perform obligations hereunder or other similar obligations shall not be deemed a waiver or failure as to any other person or party. Section 10.02. Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, not shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue and other remedy provided in this Lease. Section 10.03. Notice. Any written notice under this Lease shall be by certified mail or courier, or delivered in person and; (a) If intended for Landlord, addressed or delivered to Landlord at 2615 Calder suite 1050 Beaumont, TX 77702 or at some other address in the U.S.A. as Landlord may designate by written notice; and (b) If intended for Tenant, addressed or delivered to Tenant at the City of Beaumont, P. O. Box 3827, Beaumont, 'Texas 77704, or at some other address in the U.S.A. as Tenant may designate by written notice. Section 10.04. Landlord's Successors -In- Interest. This provision shall inure to the benefit of Landlord and its assigns and shall be binding upon "Tenant and its assigns; and the provisions of this agreement shall be binding upon Landlord only with respect to breaches occurring during the period of ownership of the Leased Premises by Landlord and upon the successors -in- interest of Landlord only during the period of ownership by such successors -in- interest of Landlord. ARTICLE XI Notwithstanding anything contained in this Lease to the contrary, in the event no funds or insufficient funds are appropriated and budgeted or funds are otherwise unavailable by any means whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Tenant. EXL=CuTED in multiple counterparts, each of which shall be deemed an original. LANDLORD TENANT Bar C Ranch Company, Inc. City of Beaumont/ Southeast Texas Auto Theft Task Force By: — Michael S. Wakefield Property Manager By: Kyle Hayes City Manager LEASE AGREEMENT This Lease Agreement is made and entered into this I" day of A io ,.: , 2013 by and between BAR C RANCH COMPANY, INC., a Texas Corporation, herein referred to as "Landlord," and CITY OF BEAUMONT/SOUTHEAST TEXAS AUTO THEFT TASK FORCE, herein referred to as "Tenant." ARTICLE I Section 1.01. Leased Premises. Landlord hereby leases and demises to Tenant, and Tenant hereby takes and leases from landlord, subject to the terms and conditions hereof, warehouse and office space consisting of approximately Three Thousand Nine Hundred (3,900) square feet located at 2430 West Cardinal Drive, Suite C, Beaumont, Texas 77705 together with exclusive use of the area enclosed by fencing east of the building (herein referred to as the "Leased Premises" or the "Demised Premises -). During the term of this Lease the Tenant shall have the nonexclusive right to use the parking area and access driveways serving the building in which the Lease Premises are situated. Section 1.02. Term. The term of this Lease shall be thirty -six (36) months after the commencement date hereof, which shall be deemed to be September 1, 2013, at which point Tenant is obligated to pay Landlord rent as hereinafter provided. Unless earlier terminated under the provisions hereof or earlier extended, this lease shall terminate August 31, 2016. ARTICLE H Section 2.01. Base Rent. As rent for the lease and use of the leased premises, Lessee will pay Lessor as follows: Base Rent shall be calculated as follows: Base Rmt Rental Period /So. FtJYr /Month Months 1 -36 $5.40 /Sq. Ft. /Yr $1,755.00 Lawee's Base Rent strap be promted for partial months, if any, within the term. This rent is payable monthly, in advance, commencing on Commencement Date and continuing monthly thereafter on the first day of each and every calendar month during the term of this lease. Lessee shall pay the rent at 2615 Calder, Suite 1050, Beaumont, TX 77702 monthly in advance, as aforesaid, as the same shall fall due. Section 2.02. Taxes, Insurance and Maintenance. (a) Landlord is responsible for and shall pay the following: (i) All taxes and similar assessments against the land and the Premises; (ii) Premiums applicable to hazard insurance obtained by Landlord covering the Premises; and ( iii) The amount of any fees for the trash dumpsters servicing the Demised Premises. (iv) Common area maintenance expenses, including but not limited to lawn service, outside lighting, project administration and paving. (b) Tenant's sWage shall be installed, maintained and removed at tenants sole cost and expense, and the interior of the Demised Premises, including but not limited to light bulbs, ballasts, interior plumbing, plate windows and doors, overhead doors, door hardware, HVAC and HVAC filters shall be maimed at the sole cost and expense of Tenant and kept by Tenant in good working condition throughout the term of the Lease. Landlord shall deliver the premises to Tenant with all systems in good working order, and in the event any system requires frill replacement during the tern hereof, such replacement shall be at Landlord's sole expense unless such replacement is due to the negligence of Tenant or to Tenant's failure to properly maintain such system, in which case such replacement shall be at the sole expense of Tenant. Landlord shall have the right to enter upon the Leased Premises at reasonable times during business hours for the purpose of inspecting the premises in order to determine that maintenance is being properly performed. (c) The foundation, outside phnnbmg, exterior walls, common area and roof of the building in which the Demised Premises are situated shall be maintained by Landlord, except for damage thereto resulting from acts or negligence of Tenant or Tenant's employees, agents or invitees. Section 2.03. Taxes on Personal Property. Tenant shall be responsible for and shall pay before delinquency all taxes assessed during the team of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by Tenant or others authorized by Tenant. ARTICLE III Section 3.01. Use of Premises. Tenant shall use the Leased Premises solely for the purpose of conducting the business of the detection, and administration of stolen vehicles and related items and all related uses, but for no other purpose or purposes, without obtaining the prior written consent of Landlord. Tenant shall promptly and continuously comply with all laws, orders, and regulations of the State, County and City affecting the use, occupation, safety, and cleanliness of the premises and Tenant's property. No capital improvement costs are considered to be a part of this Lease Agreement unless specifically agreed to in writing. Section 3.02. A and Subletting. Tenant shall not assign this Lease or sublet the Leased Premises or any part thereof without first obtaining the written consent of Landlord, and if Landlord's consent is obtained, such consent shall not relieve Tenant of its obligations hereunder. Landlord agrees that consent is not to be unreasonably withheld ARTICLE IV Section 4.01. Loss and Damage. Landlord shall not be liable for any loss or damage to property located on the premises and belonging to Tenant or others, such loss or damage resulting from any cause, whether from theft, vandalism or any other cause. All such property shall be kept or stored at the sole risk of Tenant. Landlord shall not be liable for any injury to persons resulting from any occurrence in, on or arising from the use of the Leased Premises, unless caused by the acts of negligence of Landlord, its agents, employees or subcontractors. Section 4.02. Legal Fees The prevailing panty shall pay all costs, expense and reasonable attorney's fees that may be incurred or paid by Landlord in successfully enforcing the covenants and agreements in this Lease. Section 4.03. Liability Insurance. Tenant is self - insured as to all liability and maintains an adequate self- insurance fund to pay such claims. As to liability claims resulting from the negligence of Tenant, Tenant will assume the responsibility for the processing of such claims and protect Landlord from such claims. ARTICLE V Section 5.01. Notice of Damage. In the event fine, explosion, or any other type of casualty shall damage the Leased Premises, Tenant shall immediately give notice thereof to Landlord. Section 5.02. Danuge from Insured Hazard. K the damage is the result of a hazard covered by insurance, then Landlord shall repair any damage restoring the Leased Premises, whereupon Landlord shall be entitled to retain all hazard insurance. If the drmmage is caused by a noninsured hazard during the berm of this Lease, then Landlord shall have the election of terminating the Lease or of repairing the damage whereupon the Lease shall remain in full force and effect. During such time as the Leased Premises are untenantable by virtue of damage, rent shall be abated. Section 5.03. Total Condenmabon. If the whole of the Leased Premises shall be taken or condemned by eminent domain, then the term of this Lease shall cease and terminate as of the date that title shall be divested of Landlord, and all rentals (including taxes and insurance) shall be paid to that date, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. Section 5.04. Partial Condemnation. If any part of the Leased Premises shall be taken or condemned by eminent domain for any public or quasi - public use or purpose, and in the event that such partial taking or condemnation shall render the Leased Premises unsuitable for the business of Tenant, then the term of this Lease shall cease and terminate as of the date of title vesting in such proceeding, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. In the event of a partial taking or condemnation whin is not extensive enough to render the premises unsuitable for the business of Tenant, then Landlord may, at its option, promptly make all necessary repairs and alterations nwA=my to put that portion of the Leased Premises in a condition comparable to its condition at the time of such condemnation less the portion lost in the taking, in which event the terms and conditions of this Lease shall continue in full force and effect except for adjustments to the rental reflecting actual changes in square footage of the premises. Section 5.05. Damages. In the event of any condemnation or taking by eminent domain as herein before provided, whether whole or partial, Tenant hereby expressly waives any right or chum to any part thereof. Notwithstanding that all damages resulting from condemnation and awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises are to belong to Landlord, nothing herein contained shall limit Tenant's right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenants own right arising from any and all damage to Tenant's business by reason of such condemnation and for or on account of any cost or loss incurred by Tenant in removing Tenant's merchandise, f couture, fixtures, leasehold improvements and equipment. ARTICLE VI Section 6.01. Quiet Enjoyment. Upon payment by Tenant of the rants herein provided, and upon the observance and performance of all covenants, terns and conditions on Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Leased Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this Lease. Section 6.02. Holding Over. In the event Tenant remains in possession of the Leased Premises after the expiration of this Lease and without the execution of a new lease or extension, it shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to the rental herein provided and otherwise subject to all the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month- to-mouth tenancy, subject to Landlords right to increase rental as provided under the provisions of Texas law applicable to a month to month tenancy . Section 6.03. Alterations, Etc., by Tenant. Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without the prior written consent of Landlord, except the installation of unattached movable trade fixtures, which may be made or installed without drilling, cutting or otherwise defacing the Leased Premises. All permanent alterations, additions, improvements and fixtures (other than unattached, movable trade fxt rts) which may be made or imstalled by either party hereto upon the Leased Premises shall remain upon and be surrendered with the premises and become the property of Landlord at the termination of this Lease. Tenant shall have the right to install, at its own expense, a sign or signs at the Demised Premises, subject to local ordinances and to Landlord's approval as to size, design, and general decor. Any sign shall be the property of Tenant and must be removed at the end of the tenancy and any non- permanent alterations or improvements. Section 6.04. Surrender of Premieres. At the expiration of the tenancy herein created, Tenant shall surrender the Leased Premises in the same or better condition as the Leased Premises were in upon delivery of possession, ordinary wear and Dear and damage from the elements excepted. The foregoing sentence shall be inapplicable to a termination occurring by virtue or provision of sections 5.02 or 5.03 hereof. If requested by Landlord, Tenant shall remove all its hide fixtures, and any non - permanent alterations or improvements before surrendering the Leased Premises and shall repair any damage to the Leased Premises caused thereby. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. ARTICLE VII Section 7.01 Offset Statement. Within ten days after request therefor by Landlord, or upon any sale, assignment or hypothecation of the Leased Premises by Landlord, if an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a certifrcatc to my proposed mortgagee or purchaser, or to Landlord, certifying (if such be the case) that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating those claimed by Tenant. Section 7.02. Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Section 7.03 Subordination. It is agreed that the right and interest of Tenant under this Lease shall be subject and subordinaae to any mortgages or deeds of trust that may hereafter be placed upon the Leased Premises, and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, moddkations, replacements and extensions thereof, if the mortgage or trustee named in said mortgages or deeds of trust shall elect by written notice delivered to Tenant to subject and subordinate the right and interest of Tenant under this Lease to the lien of its mortgage or deed of trust and shall agree to recognize this Lease of Tenant in the event of foreclosure if Tenant is not in default; but any mortgage or trustee may elect to give the rights and interest of Tenant under this Lease priority over the hen of its mortgage or deed of trust In the event of either such election, and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interest of Tenant under this Lease shall be deemed to be subordinate to, or to have priority over, as the case may be, the lien of said mortgage or deed of bust, whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust Tenant shall execute and deliver whatever instruments may be required for such purposes, and in the event Tenant fails so to do within ten (10) days after demand in writing, Tenant does hereby make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do. Section 7.04. Short Form Lease Landlord and Tennant each agree that at the request of either they will, following the commencement of the term of this Lease, execute and deliver a recordable short-form lease containing the basic provisions of this Lease, acknowledging that Tenant has accepted possession and this lease is operative, and reciting the exact commencement date and termination date of this Lease. ARTICLE VIII Section 8.01. Waste or Nuisance. Tenant shall not commit or suffer to be committed any waste upon the Leased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant of Landlord in the proximity of the Leased Premises. Section 8.02. Goventme ntal Regulations. Tenant shall, at Tenants sole cost and expense, comply with all meats and regulations of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all municipal and county ordinances and state and federal statutes now in force or which may hereafter be in force. ARTICLE IX Section 9.01. Acts of Default. Any of the following shall constitute an event of default by Tenant: (a) Failure of Tenant to pay all rental and other charges due hereunder within 15 days after same shall became due; or (b) Failure by Tenant to perform any of the other terms, conditions, covenants or obligations of Tenant under this L ease, if such failure shall continue for more than 30 days after written notice thereof shall have been give by Landlord to Tenant; provided, however, that if each failure cannot reasonably be cured within thirty (30) days, Tenant shall not be in default if Tenant commences to curie such failure within the thirty (30) day period and in good faith continues to cure such failure; or (c) Tenant becoming bankrupt or insolvent, or filing any debtor ProccedMgS, or seeking any type of debtor relief, or the filing against Tenant in any court pursuant to any statute either of the United States or of any other state a petition in bankruptcy or insolvency or for an arrangement or for the appointment of a receiver or trustee for all or a portion of Tenant's property, or Tenant making an assignment for the benefit of creditors, or petitioning for or entering into an arrangement with respect to its creditors; or (d) Abandonment of the Leased Premises by Tenant, or (e) Any act or omission by Tenant, which creates or purports to create alien upon the Leased Premises. Nothing herein shall preclude Tenant's right to seek an equitable recovery for any default by Landlord of any provision of this lease. Section 9.02. Landlord's Remedies. (a) Upon default by Tenant, Landlord shall have the right to re-enter and take possession of the Leased Premises. Should Landlord elect to re- enter, as harem provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law, it may either terminate this Lease or it may from time to time without terminating this Lease, make such alterations and repairs as may be necessary in order to re-let the premises, and re-let said premises or any part thereof for such germ or terms (which may be for a team extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable; upon each such re4ating the rentals shall be applied, first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such re- kiting, including brokerage fees and attorney's fees and of costs of such aftenations and repairs; third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. N such rentals received from such re- letting during any month are less than that to be paid during the month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re-entry or Wang possession of said premises by Landlord shall be construed as an election on its part to terminate this Lease unless a court of competent jurisdiction thereof should decree the termination. (b) Notwithstanding any such re- lening without termination, landlord may at any time thereafter elect to terminate this Lease for such previous breach. In addition to any other remedies it may have, it may recover from Tenant all damages it may incur by reason of such breach, including the cost of recovering the Leased Premises, reasonable attorney's fees, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Tenant to Landlord. Section 9.03. Additional Remedies. In case suit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant therein contained on the part of Tenant to be kept or performed, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred therefor, including a reasonable attorney's fee. Any and all actions as may be brought under this Lease shall be brought in Jefferson County, Texas. ARTICLE X Section 10.01. Waiver. One or more waivers of any covenant, team or conditions of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other pasty requiring such consent or approval shall not be deemed to waive or rem consent to or approval of any subsequent similar act. Waiver by Landlord of any covenant, term or condition of this Lease or of other or similar covenants, terms or conditions in leases with other Tenants of the Leased Premises or failure of Landlord to require or any other tenant of the Leased Premises to undertake or perform obligations hereunder or other similar obligations shall not be deemed a waiver or failure as to any other person or party. Section 10.02. Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, not shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue and other remedy provided in this Lease. Section 10.03. Notice. Any written notice under this Lease shall be by certified mail or courier, or delivered in person and, (a) If intended for Landlord, addressed or delivered to Landlord at 2615 Calder suite 1050 Beaumont, TX 77702 or at some other address in the U.S.A. as Landlord may designate by written notice; and (b) If intended for Tenant, addressed or delivered to Tenant at the City of Beaumont, P. O. Box 3827, Beaumont, Texas 77704, or at some other address in the U.S.A. as Tenant may designate by written notice. Section 10.04. Landlord's Successors -In- Interest. This provision shall inure to the benefit of Landlord and its assigns and shall be binding upon Tenant and its assigns; and the provisions of this agreement shall be binding upon Landlord only with respect to breaches occurring during the period of ownership of the Leased Premises by Landlord and upon the successors-in-interest of Landlord only during the period of ownership by such successors -in- interest of Landlord. ARTICLE XI Notwithsanding anything contained in this Lease to the contrary, in the event no funds or insufficient fiords are appropriated and budgeted or funds are otherwise unavailable by any means whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Tenant. EXECUTED in multiple cow, each of which shall be deemed an original. LANDLORD TENANT Bar C Ranch Company, Inc. City of Beaumont/ Southeast Texas Auto Theft Task Force 0 Michael S. W fi Property y: Kyle Hayes City Manager LEASE AGREEMENT This Lease Agreement is made and entered into this H't day of J , 2013 by and between BAR C RANCH COMPANY, INC., a Texas Corporation, herein referred to "Landlord," and CITY OF BEAUMONT/SOUTHEAST TEXAS AUTO THEFT TASK FORCE, herein referred to as "Tenant." ARTICLE I Section 1.01. Leased Premises. Landlord hereby leases and demises to Tenant, and Tenant hereby takes and leases from Landlord, subject to the terms and conditions hereof, warehouse and office space consisting of approximately Five Thousand Eight Hundred Fifty (5,850) square feet located at 2430 West Cardinal Drive, Suites D and E, Beaumont, Texas 77705 (herein referred to as the "Leased Premises" or the "Demised Premises "). During the term of this Lease the Tenant shall have the non -exclusive right to use the parking area and access driveways serving the building in which the Lease Premises are situated. Section 1.02. Term. The term of this Lease shall be forty (40) months after the commencement date hereof, which shall be deemed to be May 1, 2013, at which point Tenant is obligate to pay Landlord rent as hereinafter provided. Unless earlier terminated under the provisions hereof or earlier extended, this lease shall terminate August 31, 2016. ARTICLE II Section 2.01. Base Rent. As rent for the lease and use of the leased premises, Lessee will pay Lessor as follows: Base Rent shall be calculated as follows: Bare Rent Base R nt Rental Period /So. FtJYr /Month Months 1-4 $3.00 /Sq. Ft. /Yr 1,462.50 Months 5-40 $5.40 /Sq. Ft. /Yr $2,632.50 Lessee's Bare Rent shall be prorated for partial months, if my, wiffiin the term. This rent is payable monthly, in advance, commencing on Commencement Date and continuing monthly thereafter on the first day of each and every calendar month during the term of this lease. Lessee shall pay the rent at 2615 Calder, Suite 1050, Beaumont, TX 77702 monthly in advance, as aforesaid, as the same shall fall due. Section 2.02. Taxes, Insurance and Maintenance. (a) Landlord is responsible for and shall pay the following: (i) All taxes and similar assessments against the land and the Premises; (ii) Premiums applicable to hazard insurance obtained by Landlord covering the Premises; and (iii) The amount of any fees for the trash dumpsters servicing the Demised Premises. (iv) Common area maintenance expenses, including but not limited to lawn service, outside lighting, project administration and paving. (b) Tenant's signage shall be installed, maintained and removed at tenants sole cost and expense, and the interior of the Demised Premises, including but not limited to light bulbs, ballasts, interior plumbing, plate windows and doors, overhead doors, door hardware, HVAC and HVAC Mers shall be maintained at the sole cost and expense of Tenant and kept by Tenant in good working condition throughout the term of the Lease. Landlord shall deliver the premises to Tenant with all systems in good working order, and in the event any system requires full replacement during the term hereof, such replacement shall be at Landlord's sole expense unless such replacement is due to the negligence of Tenant or to Tenant's failure to properly maintain such system, in which case such replacement shall be at the sole expense of Tenant. Landlord shall have the right to enter upon the Leased Premises at reasonable times during business hours for the purpose of inspecting the premises in order to determine that maintenance is being properly performed. (c) The foundation, outside plumbing, exterior walls, common area and roof of the building in which the Demised Premises are stunted shall be maintained by Landlord, except for damage thereto resulting from acts or negligence of Tenant or Tenants employees, agents or invitees. Section 2.03. Taxes on Personal Property. Tenant shall be responsible for and shall pay before delinquency all taxes assessed during the term of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by Tenant or others authorized by Tenant. ARTICLE III Section 3.01. Use of Premises. Tenant shall use the Leased Premises solely for the purpose of conducting the business of the detection, storage and administration of stolen vehicles and related items and all related uses, but for no otte=r purpose or purposes, without obtaining the prior written consent of Landlord. Tenant shall promptly and continuously comply with all laws, orders, and regulations of the State, County and City affecting the use, occupation, safety, and cleanliness of the premises and Tenant's property. No capital improvement costs are considered to be a part of this Lease Agreement unless specifically agreed to in writing. Section 3.02. Armes and Sablctdng. Tenant shall not assign this Lease or sublet the Leased Premises or any part thereof without first obtaining the written consent of Landlord, and if Landlord's consent is obtained, such consent shall not relieve Tenant of its obligations hereunder. Landlord agrees that consent is not to be unreasonably withheld. ARTICLE IV Section 4.01. Loss and Damage. Landlord shall not be liable for any loss or damage to property locked on the premises and belonging to Tenant or others, such loss or damage resulting from any cause, whether from theft, vandalism or any other cause. All such property shall be kept or stored at the sole risk of Tenant. Landlord shall not be liable for any injury to persons resulting from any occurrence in, on or wising from the use of the leased Premises, unless caused by the acts of negligence of landlord, its agents, employees or subcontractors. Section 4.02. Legal Fees The prevailing party shall pay all costs, expense and reasonable attorney's fees that may be incurred or paid by Landlord in successfully enforcing the covenants and agreements in this lease. Section 403. LiabOity Lm wince. Tenant is self - insured as to all liability and maintains an adequate self - insurance fund to pay such claims. As to liability claims resulting from the negligence of Tenant, Tenant will assume the responsibility for the processing of such claims and protect Landlord from such claims. ARTICLE V Section 5.01. Notice of Damage. In the event fine, explosion, or any other type of casualty shall damage the Leased Premises, Tenant shall immediately give notice thereof to Landlord. Section SM. Damage from Insured Hazard. If the damage is the result of a hazard covered by insurance, then Landlord shall repair any damage restoring the Leased Premises, whereupon Landlord shall be entitled to retain all hazard 'insurance. If the damage is caused by a non - insured hazard during the term of this Lease, then Landlord shall have the election of terminating the Lease or of repairing the damage whereupon the Lease shall remain in full force and effect. During such time as the Leased Premises are untenantable by virtue of damage, rent shall be abated. Section 5.03. Total Condemnation. If the whole of the Leased Premises shall be taken or condemned by eminent domain, then the term of this Lease shall cease and terminate as of the date that title shall be divested of Landlord, and all rentals (including taxes and insurance) shall be paid to that date, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. Section 5.04. Partial Condemnation. ff any part of the Leased Premises shall be taken or condemned by eminent domain for any public or quasi - public use or purpose, and in the event that such partial taking or condemnation shall render the Leased Premises unsuitable for the business of Tenant, then the term of this Lease shall cease and terminate as of the date of title vesting in such proceeding, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. In the event of a partial taking or condemnation which is not extensive enough to reader the premises unsuitable for the business of Tenant, then Landlord may, at its option, promptly make all necessary repairs and alterations necessary to put that portion of the Leased Premises in a condition comparable to its condition at the time of such condemnation less the portion lost in the taking, in which event the terms and conditions of this Lease shall continue in full force and effect except for adjustments to the rental reflecting actual changes in square footage of the premises. Section 5.05. Damages. In the event of any condemnation or taking by eminent domain as herein before provided, whether whole or partial, Tenant hereby expressly waives any right or claim to any part thereof. Notwithstanding that all damages resulting from condemnation and awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises are to belong to Landlord, nothing herein contained shall limit Tenant's right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right arising from any and all damage to Tenant's business by reason of such condemnation and for or on account of any cost or loss incurred by Tenant in removing Tenant's merchandise, furniture, fixtures, leasehold improvements and equipment. ARTICLE VI Section 6.01. Quiet Enjoyment. Upon payment by Tenant of the reacts herein provided, and upon the observance and performance of all covenants, terms and conditions on Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Leased Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this Lease. Section 6.O2. Holding Over. In the event Tenant remains in possession of the Leased Premises after the expiration of this Lease and without the execution of a new lease or extension, it shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to the rental herein provided and otherwise subject to all the conditions, provisions and obligations of this Lease insofar as the some are applicable to a month- to-month tenancy, subject to Landlords right to increase rental as provided under the provisions of Texas law applicable to a month to month tenancy . Section 6.03. Alterations, Etc., by Tenant. Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without the prior written consent of Landlord, except the installation of unattached movable trade fixtures , which may be made or installed without drilling, cutting or otherwise defacing the Leased Premises. All permanent alterations, additions, Improvements and fixtures (other than unattached, movable trade fixtures) which may be made or installed by either party hereto upon the Leased Premises shall remain upon and be surrendered with the premises and become the property of Landlord at the termination of this Lease. Tenant shall have the right to install, at its own expense, a sign or signs at the Demised Premises, subject to local ordinances and to Landlord's approval as to size, design, and general decor. Any sign shall be the property of Tenant and must be removed at the end of the tenancy and any non- permanent alterations or improvements. Section 6.04. Surrender of Premises. At the expiration of the tenancy herein created, Tenant shall surrender the Leased Premises in the same or better condition as the Leased Premises were in upon delivery of possession, ordinary wear and tear and damage from the elements excepted. The foregoing sentence shall be inapplicable to a termination occurring by virtue or provision of sections 5.02 or 5.03 hereof if requested by Landlord, Tenant shall remove all its trade fixhmes, and any non- permanent alterations or improvements before surrendering the Leased Premises and shall repair any damage to the Leased Premises caused thereby. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. ARTICLE VII Section 7.01 Offset Statement. Within ten days after request therefor by Landlord, or upon any sale, assignment or hypothecation of the Leased Premises by Landlord, if an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a certificate to any proposed mortgagee or purchaser, or to Landlord, certifying (if such be the case) that this Lease is in full force and effect and that there are no defenses or offsets thereto, or staring those claimed by Tenant. Section 7.02. Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. Section 7.03 Subordination. It is agreed that the right and interest of Tenant under this Lease shall be subject and subordinate to any mortgages or deeds of trust that may hereafter be placed upon the Leased Premises, and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, modifications, replacements and extensions thereof, if the mortgage or trustee named in said mortgages or deeds of trust shall elect by written notice delivered to Tenant to subject and subordinate the right and interest of Tenant under this Lease to the lien of its mortgage or deed of trust and shall agree to recognize this Lease of Tenant in the event of foreclosure if Tenant is not in default; but any mortgage or trustee may elect to give the rights and interest of Tenant under this Lease priority over the lien of its mortgage or deed of trust. In the event of either such election, and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interest of Tenant under this Lease shall be deemed to be subordinate to, or to have priority over, as the case may be, the lien of said mortgage or deed of trust, whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust. Tenant shall execute and deliver whatever instruments may be required for such purposes, and in the event Tenant fails so to do within ten (10) days after demand in writing, Tenant does hereby make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead so to do. Section 7.04. Short Form Lease. Landlord and Tenant each agree that at the request of either they will, following the commencement of the term of this Lease, execute and deliver a recordable short -form lease containing the basic provisions of this Lease, acknowledging that Tenant has accepted possession and this lease is operative, and reciting the enact commencement date and termination date of this Lease. ARTICLE VIII Section 8.01. Waste or Nuisance. Tenant shall not commit or suffer to be committed any waste upon the Leased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant of Landlord in the proximity of the Leased Premises. Section 8.02. Govemmental Regulations. Tenant shall, at Tenant's sole cost and expense, comply with all requirements and regulations of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all municipal and county ordinances and state and federal statutes now in force or which may hereafter be in force. ARTICLE IX Section 9.01. Acts of Default. Any of the following shall constitute an event of default by Tenant: (a) Failure of Tenant to pay all rental and other charges due hereunder within 15 days after same shall become due; or (b) Failure by Tenant to perform any of the other terms, conditions, covenants or obligations of Tenant under this Lease, if such failure shall continue for more than 30 days after written notice thereof shall have been give by Landlord to Tenant; provided, however, that if each failure cannot reasonably be cured within thirty (30) days, Tenant shall not be in default if Tenant commences to cure such failure within the thirty (30) day period and in good faith continues to cure such failure; or (c) Tenant becoming bankrupt or insolvent, or filing any debtor proceedings, or seeking any type of debtor relief, or the filing against Tenant in any court pursuant to any statute either of the United States or of any other state a petition in bankruptcy or insolvency or for an arrangement or for the appointment of a receiver or trustee for all or a portion of Tenant's property, or Tenant making an assignment for the benefit of creditors, or petitioning for or entering into an arrangement with respect to its creditors; or (d) Abandonment of the Leased Premises by Tenant, or (e) Any act or omission by Tenant, which creates or purports to create alien upon the Leased Premises. Nothing herein shall preclude Tenant's right to seek an equitable recovery for any default by Landlord of any provision of this lease. Section 9.02. Landlord's Remedies. (a) Upon default by Tenant, Landlord shall have the right to re-enter and take possession of the Leased Premises. Should Landlord elect to re- enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law, it may either terminate this Lease or it may from time to time without terminating this Lease, make such alterations and repairs as may be necessary in order to re-let the premises, and re -let said premises or any part thereof for such berm or terms (which may be for a term extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable; upon each such redetting the rentals shall be applied, first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such re- letting, including brokerage fees and attorney's fees and of costs of such alterations and repairs; third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. If such rentals received from such re- letting during any month are less than that to be paid during the month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re-entry or taking possession of said premises by Landlord shall be construed as an election on its part to terminate this Lease unless a court of competent jurisdiction thereof should decree the termination. (b) Notwithstanding any such re- letting without termination, landlord may at any time dwreatler elect to terminate this Lease for such previous breach. In addition to any other remedies it may have, it may recover from Tenant all damages it may incur by reason of such breach, including the cost of recovering the Leased Premises, reasonable attorney's fees, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term, all of which amounts shall be immediately due and payable from Tenant to Landlord. Section 9.03. Additional Remedies. In case snit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant therein contained on the part of Tenant to be kept or performed, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred therefor, including a reasonable attorney's fee. Any and all actions as may be brought under this Lease shall be brought in Jefferson County, Texas. ARTICLE X Section 10.01. Waiver. One or more waivers of any covenant, term or conditions of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render consent to or approval of any subsequent similar act. Waiver by Landlord of any covenant, term or condition of this Lease or of other or similar covenants, terms or conditions in leases with other Tenants of the Leased Premises or failure of Landlord to require or any other tenant of the Leased Premises to undertake or perform obligations hereunder or other similar obligations shall not be deemed a waiver or failure as to any other person or party. Section 10.02. Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, not shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue and other remedy provided in this Lease. Section 10.03. Notice. Any written notice under this Lease shall be by certified mail or courier, or delivered in person and; (a) If intended for Landlord, addressed or delivered to Landlord at 2615 Calder suite 1050 Beaumont, TX 77702 or at some other address in the U.S.A. as Landlord may designate by written notice; and (b) If intended for Tenant, addressed or delivered to Tenant at the City of Beaumont, P. O. Box 3827, Beaumont, Texas 77704, or at some other address in the U.S.A. as Tenant may designate by written notice. Section 10.04. Landlord's Successors-In-Interest. This provision shall inure to the benefit of Landlord and its assigns and shall be binding upon Tenant and its assigns, and the provisions of this agreement shall be binding upon Landlord only with respect to breaches occurring during the period of ownership of the Leased Premises by Landlord and upon the successors -in- interest of Landlord only during the period of ownership by such successors -in- interest of Landlord. ARTICLE XI Notwithstanding anything contained in this Lease to the contrary, in the event no finds or insufficient finds are appropriated and budgeted or funds are otherwise unavailable by any means whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Tenant. EXECUTED m multiple counterparts, each of which shall be deemed an original. LANDLORD TENANT Bar C Ranch Company, Inc. City of Beaumont/ Southeast Texas Auto Theft Task Force By: By: L t L- MAlaef S. akefie Kyle Hayes Property Manager City Manager