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HomeMy WebLinkAboutRES 18-056RESOLUTION NO. 18-056 BE IT RESOLVE/D BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a three (3) year Lease Agreement, substantially in the form attached hereto as Exhibit "A," in the amount of $1,357.08 per month with David Derharoutian (Landlord) for the use of property located at 8155 Phelan Boulevard, Beaumont, Texas, for EMS Med No. 4. The new lease would begin April 1, 2018, and end on March 31, 2021. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 6th day of March, 2018. ayor Bec y Ames - 1,A_t /(zX_Qj - �o*# all, ,4/1 //:W - �3/3 TEXAS ASSOCIATION OF REALTORS® COMMERCIAL LEASE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF RE4LTORSO IS NOT AUTHORIZED. ®Texas Assoclatlon of REALTORS®, Inc. 2014 Table of Contents No. Parag«ph Description 1. Parties.......................................................... 2 2. Leased Premises ......................................... 2 3. Term 11 Estoppel Certificates & Financial Info ...........11 A. Term ...................................................... 2 12 B. Delay of Occupancy ............................... 2 Attorney's Fees.............................................12 C. Certificate of Occupancy ........................ 3 4. Rent and Expenses 13 Addenda....................................................... A. Base Monthly Rent ................................. 3 13 B. Additional Rent ....................................... 3 Agreement of the Parties..............................14 C. First Full Month's Rent ........................... 3 D. Prorated Rent ......................................... 3 E. Place of Payment ................................... 3 F. Method of Payment ................................ 3 G. Late Charges ......................................... 4 H. Returned Checks ................................... 4 5. Security Deposit ........................................... 4 6. Taxes............................................................ 4 7. Utilities.......................................................... 4 8. Insurance...................................................... 5 9. Use and Hours ............................................. 6 10. Legal Compliance ......................................... 6 11. Signs............................................................ 6 12. Access By Landlord ...................................... 7 13. Move -In Condition ........................................" 7 14. Move -Out Condition ..................................... 7 15. Maintenance and Repairs A. Cleaning ................................................. 7 B. Conditions Caused by a Party ................8 C. Repair & Maintenance Responsibility 0 8 D. Repair Persons ...................................... 8 E. HVAC Service Contract ......................... 9 F. Common Areas ...................................... 9 G. Notice of Repairs ................................... 9 H. Failure to Repair .................................... 9 16. Alterations.................................................... 9 17. Liens............................................................. 9 18. Liability ...................................... I.................. 9 19. Indemnity...................................................... 10 20. Default.......................................................... 10 21. Abandonment, interruption of Utilities, Removal of Property & Lockout ....................10 22. Holdover....................................................... 10 23. Landlord's Lien & Security Interest ...............11 - No. Paragraph Description 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. ft - Assignment Assignment and Subletting ...........................11 Relocation.................................................... 11 Subordination ............................................... 11 Estoppel Certificates & Financial Info ...........11 Casualty Loss ............................................... 12 Condemnation .............................................. 12 Attorney's Fees.............................................12 Representations ............................................ 12 Brokers......................................................... 13 Addenda....................................................... 13 Notices......................................................... 13 Special Provisions ........................................ 14 Agreement of the Parties..............................14 DDENDA & EXHIBITS (check all that ann! Exhibit Exhibit Commercial Lease Addendum for Broker's Fee (TAR -2102) Commercial Lease Addendum for Expense Reimbursement (TAR -2103) Commercial Lease Addendum for Extension Option (TAR -2104) Commercial Lease Addendum for Percentage Rent (TAR -2106) Commercial Lease Addendum for Parking (TAR -2107) Commercial Landlord's Rules and Regulations (TAR -2108) Commercial Lease.Guaranty (TAR -2109) Commercial Lease Addendum for Right of First Refusal (TAR -2105) Commercial Lease Addendum for Optional Space (TAR -2110) Commercial Lease Addendum for Construction (TAR -2111). or (TAR -2112) Commercial Lease Addendum for Contingencies (TAR -2119) Information About Brokerage Services (TAR -2501) (TAR -2101) 4-1-14 Initialed for identification by Landlord: , and Tenant: Page 1 of 15 G. W. PROPERTIES, 1102 LONGFELLOW DR. BRAUMONTTX 77706 Phone: 409-673.6373 Fax 409.891'50.54 8155 PHELAN Kent Mane" Produced with 21pForm49 by zlpLogbt 18070 Fifteen Mlle Road, Frew, Wchlgan 48020 wwwzloLoakoom EXHIBIT "A" 41♦I TEXAS ASSOCIATION OF REALTORS® COMMERCIAL LEASE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED, Woxaa Association of REALTORSO, Inc. 2014 1. PARTIES: The parties to this lease are: Landlord: DAVID DERHAROUTIAN ; and Tenant: CITY OF BEAUMONT aft: KYLE HAYES 2. LEASED PREMISES: A. Landlord leases to Tenant the following described real property, known as the 'leased premises," along with all its improvements (Check only one box): ❑ (1) Multiple -Tenant Prop: Suite or Unit Number containing approximately square feet of rentable area in (project name) at (address) in (city), Texas, which is legally described on attached Exhibit_ (county), or as follows: ❑X (2) Single -Tenant Property: The real property containing approximately square feet of rentable area at: 8155 PHELAN (address) in BEAUMONT (city), JEFFERSON (county), Texas, which is legally described on attached Exhibit C. WILLIAMS or as follows: ABSTRACT 59 TR 72-A SP -6 BLOCK 18 B. If Paragraph 2A(1) applies: (1) "Property" means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and (2) the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. The rentable area ❑ will ❑ will not be adjusted if re -measured. 3. TERM: A. Term: The term of this lease is 36 months and -0- days, commencing on: APRIL 1, 2018 (Commencement Date) and ending on MARCH 31, 2021 (Expiration Date). B. Delay of Qccupancv: If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially (TAR -2101) 4-1-14 Initialed for Identification by Landlord: , and Tenant: Page 2 of 15 Produced vWIh zlpForrrQD by zlpLcglx 18070 I Mean M8e Road, Frasor, MI hIgan 40026 www.zipLcglK.com 8155 PHA AN 8155 PHELAN Commercial Lease conceming: BEAUMONT TEX 77704 complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant for such delay and this lease will remain enforceable. In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration Date will also be extended by a like number of days, so that the length of this lease remains unchanged. If Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant. This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs. C. Certificate of Occupancy: Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for the leased premises If required by a governmental body. 4. RENT AND EXPENSES: A. Base Monthly Rent: On or before the first day of each month during this lease, Tenant will pay Landlord base monthly rent as described on attached Exhibit N/A or as follows: Dates Rate per rentable square foot o tiona/ Base Monthly From To $ Monthly Rate $ Annual Rate Rent $ 04/0112018 03/31/2021 / rsf / month / rsf / year 1,367.08 I rsf I month I rsf / year I rsf I month / rsf / year / rsf / month / rsf I year / rsf I monthl I rsf I year B. Additional Rend: In addition to the base monthly rent, Tenant will pay Landlord all other amounts, as provided by the attached (Check all that apply.): (1) Commercial Lease Addendum for Expense Reimbursement (TAR -2103) (2) Commercial Lease Addendum for Percentage Rent (TAR -2106) (3) Commercial Lease Addendum for Parking (TAR -2107) (4) All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this lease. C. First Full Month's Rent: The first full monthly rent is due on or before APRIL 01, 2018 D. Prorated Rent: If the Commencement Date is on a day other than the first day of a month, Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction: the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences. The prorated rent is due on or before the Commencement Date. E. Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in writing: Name: DAVID DERHAROUTiAN c/o STACY TYWATER Address: BEAUMONT AREA FEDERAL CREDIT UNION F. Method of Payment: Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any (TAR -2101) 4-1-14 Initiated for Identification by Landlord: , and Tenant Page 3 of 15 Produced YAM zlpFomUD by zlpLoglx 18070 Flllean Mlle Rnad, Fraser, Michigan 46026 www.zlnLmbc.com 8155 PHELAN 8166 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after providing written notice to Tenant may require Tenant to pay subsequent amounts that become due under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant's failure to make timely payments with good funds. M lay-Lar�dferd-a-late- he— , net wave-- Shall be controlled by13hapter 225 t.ses� of the Texas G vernment::Code. H. Returne C�iecks: enan will pay 2.00 for each .check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment. 5. SECURITY DEPOSIT: A. Upon execution of this lease, Tenant will pay $ deposit. -0- to Landlord as a security B. Landlord may apply the security deposit to any amounts owed by Tenant under this lease. If Landlord applies any part of the security deposit during any time this lease is in effect to amounts owed by Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to the amount stated. C. Within 60 days after Tenant surrenders the leased premises and provides Landlord written notice of Tenant's forwarding address, Landlord will refund the security deposit. less any amounts applied toward amounts owed by Tenantlor other charges authorized by this lease. 6. TAXES: Unless otherwise. agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises. 7. UTILITIES: A. The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.) N/A (1) Water Landlord ' enant X (2) Sewer X (3) Electric X (4) Gas X (5) Telephone X (6) Internet X (7) Cable X (8) Trash X (9) X (10)AII other utilities B. The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility service provider. The responsible party may select the utility service provider except that if Tenant selects the provider, any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold. If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay (TAR -2101) 4-1-14 Initialed for Idents kation by Landlord: , and Tenant Page 4 of 15 Produced w6h 4pForm® by OpLaglx 76070 Fifteen MBa Read, Fraser. Michigan 48026 VAMWOUnix.mm 8155 PHUAM 8155 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount. C. Notice: Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant's intended use. D. After -.Hours HVAC Charges: "HVAC services" means heating, ventilating, and air conditioning of the leased premises. (Check one ,box only.) ❑ (1) Landlord is obligated to provide the HVAC services to the leased premises only during the Property's operating hours specified under Paragraph 9C. ❑ (2) Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C for no additional charge and will, at Tenant's request, provide HVAC services to the leased premises during other hours for an additional charge of $ per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be rounded up to the next half hour. Tenant will comply with Landlord's procedures to make a request to provide the additional HVAC services under this paragraph. ❑X (3) Tenant will pay for the HVAC services under this lease. 8. INSURANCE: City is self insured. See"Attachment "A". effect from an insurer authorized to operate in Texas: ublic liability insurance naming Landlord as an additional insured orrence basis in a minimum amount of: (check only (a) or (b) below) H(a) $ , 0,000; or (b) $2,00 , 0. If neither box i ecked the minimum amount will be $1,000,000. (2) personal property age insurance for the business operations be premises and contents ' the leased premises in an amount su ien after a casualty loss; and ❑ (3) business interruption insurance icient to pay 12 B. Before the Commencement Date, TenantINS-It provi evidencing the required coverage. If the insuraover degree at any time this lease is in effect, T ant st. change, provide Landlord a copy of an in ance certific C. if Tenant fails to maintain the re red insurance in full effect, Landlord may: with policy limits�e6 an conducted in the leased to replace such contents rent payments; indlord with a copy of insurance certificates ge is renewed or changes in any manner or not later than 10 days after the renewal or `evidencing the renewal or change. effect at all times this lease is in (1) purchase insurance t will provide Landlord the same coverage Tenant must lm lately reimburse Landlord for such expense; or (2) exercise La rd's remedies under Paragraph 20. required insurance and D. Unless t arties agree otherwise, Landlord will maintain in full force and effect insura for: (1) fire �andapprc)priate. ended coverage in an amount to cover the reasonable replacement cost of the impro ents of perty; and (2) any public liability insurance in an amount that Landlord determines reaso ble _ - E. If there is an increase in Landlord's Insurance -premiums for the leased premises or Property or its contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase immediately (TAR -2101) 4-1-14 Initialed for Identification by Landlord: , and Tenant: Page 5 of 15 Produced Mi 7fpFcm0 hyzlpLogtx 78070 Flflean We Road. Fraser, Mkdilgan 48020 www.2dRLa9br.cam 8155 PrMLAN 8165 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 after Landlord notifies Tenant of the increase. Any charge to Tenant under this Paragraph 8E will be equal to the actual amount of the increase in Landlord's insurance premium. 9. USE AND HOURS: A. Tenant may use the leased premises for the following purpose and no other: EMERGENCY MEDICAL SERVICE FOR THE CITY OF BEAUMONT, INCLUDING STORAGE OF EMERGENCY UNITS AND LIVING QUARTERS FOR EMPLOYEES. B. Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased premises during business hours that are typical of the industry in which Tenant represents it operates. C. The Property maintains operating hours of (specify hours, days of week, and if inclusive or exclusive of weekends and holidays): 24 HOURS A DAY 7 DAYS A WEEK 10. LEGAL COMPLIANCE: A. Tenant may not use or permit any part of the leased premises or the Property to be used for: (1) any activity which is a nuisance or is offensive, noisy, or dangerous; (2) any activity that interferes with any other tenant's normal business operations or Landlord's management of the Property; (3) any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant, governmental order, owners' association rules, tenants' association rules, Landlord's rules or regulations, or this lease; (4) any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance; (5) any activity that violates any applicable federal, state, or local law, including but not limited to those laws related to air quality, water quality, hazardous materials,' wastewater, waste disposal, air emissions, or other environmental matters. (6) the permanent or temporary storage of any hazardous material; or (7) B. "Hazardous material" means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law, regulation, ordinance, or rule existing as of the date of this lease or later enacted. C. Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio requirements, and other matters that may relate to Tenant's intended use. Tenant must satisfy itself that the leased premises may be used as Tenant intends by independently investigating all matters related to the use of the leased premises or Property. Tenant agrees that it is not relying on any warranty or representation made by Landlord Landlord's agent or any broker concerning the use of the leased premises or Property. 11. SiGNS: A. Tenant may not post or paint any signs or place any decoration outside the leased premises or on the Property without Landlord's written consent. Landlord may remove any unauthorized sign or decorations, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign or decorations. (TAR -2101) 41-14 initialed for Identiflcation by Landlord: , and Tenant: Page 6 of 15 Produced Wth Z1pFormOby z1pLc91x 16070 Fifteen We Road. Fraser. WoNga" 48026 mWazw on& ocm 6L44 PHELAN 8166 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 B. Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property. C. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move - out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all signs or decorations that were placed on the Property or leased premises by or at the request of Tenant. Any signs or decorations that Landlord does not require Tenant to remove and that are fixtures, become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 12. ACCESS BY LANDLORD: A. During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if. (1) entry is made with Tenant's permission; or (2) entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenant's business operations when accessing the leased premises. B. During the last 30 days of this lease, Landlord may place a "For Lease" or similarly worded sign on the leased premises. 13. MOVE-iN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as -is) condition unless expressly noted otherwise in this lease or in an addendum. Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property. 14. MOVE -OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY:. A. At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises in a clean condition free of all trash, debris, personalproperty, hazardous materials, and environmental contaminants. B. If Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may: (1) require Tenant, at Tenant's expense, to remove the personal property by providing written notice to Tenant; or (2) retain such personal property as forfeited property to Landlord. C. "Surrender" means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident, or abuse. D. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move - out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any fixtures that Landlord does not require Tenant to remove become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 15. MAINTENANCE AND REPAIRS: A. Cleaning: Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate receptacles. []Landlord FX Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the property type. Tenant will maintain any grease trap on the Property which Tenant uses, including but not limited to periodic (TAR -2101) 4-1-14 Initieled for identification by Landlord: , and Tenant: Page 7 of 16 Produced with ApFo7m® by 4pLoga iwo Flnean Wa Road, Fraser, Michigan 48020 wWffl.ZfpLs x.com 6155 PHELAN 8155 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 emptying and cleaning, as well as making any modification to the grease trap that may be necessary to comply with any applicable law. B. Repairs of Conditions Caused by a Party: Each party must promptly repair a condition in need of repair that is caused, either intentionally or negligently, by that party or that party's guests, patrons, invitees, contractors or permitted subtenants. C. Repair and Maintenance Responsibility: Except as otherwise provided by this Paragraph 15, the party designated below, at its expense, is responsible to maintain and repair the following specified items in the leased premises (if any). The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items, the party designated to maintain the item must complete and pay the expense of the modification. The specified items include and relate only to real property in the leased premises. Tenant is responsible for the repair and maintenance of its personal property. (Check all that apply.) ISA/ Landlorde n (1) Foundation, exterior walls, roof, and other structural components ..,.. X (2) Glass and windows............................................................................. X (3) Fire protection equipment................................................................... X (4) Fire sprinkler systems........................................................................ (5) Exterior & overhead doors, including closure devices, molding, locks, and hardware........................................................................... ❑ ❑ 0 (6) Grounds maintenance, including landscaping and irrigation systems.............................................................................................. ❑ ❑ (7) Interior doors, including closure devices, frames, molding, locks, andhardware...................................................................................... X (8) Parking areas and walks..................................................................... X (9) Plumbing systems, drainage systems and sump pumps .................... X (10) Electrical systems, mechanical systems ............................................ X (11) Ballast and lamp replacement............................................................ X (12) Heating, Ventilation and Air Conditioning (HVAC) systems ................ X (13) HVAC system replacement................................................................. X (14)Slgns and lighting: ............................................................................... (a) Pylon............................................................................................. X (b) Facia............................................................................................. X (c) Monument..................................................................................... X (d) Door/Suite..................................................................................... X (e) Other: ............. X (15) Extermination and pest control, excluding wood -destroying insects. X (16) Fences and Gates.............................................................................. X (17)Storage yards and storage buildings .................................................. X (18)Wood-destroying insect treatment and repairs ................................... Ix X (19) Cranes and related systems............................................................... (20) (22)All other items and systems............................................................ D. Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons. (TAR -2101) 4-1-14 Initialed for Identiflcation by Landlord: , and Tenant: Page 8 of 15 Produced wlB, zlpFoml®by zlpLoglx 180TO FIflean Wa Road, Fraw Mlchlgan 48= WMY,; inLoolx.cem 8155 PHELAN 8155 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 E. HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(12), Tenant X❑ is is not required to maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord may do so and Tenant will reimburse Landlord for the expense of such maintenance and service contract or Landlord may exercise Landlord's remedies under Paragraph 20. F. Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in compliance with Landlord's rules and regulations. Tenant may not solicit any business in the common areas or interfere with any other person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies. G. Notice of Repairs: Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair. All requests for repairs to Landlord must be in writing. H. Failure to Repair: Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain; or (2) exercise Landlord's remedies under Paragraph 20, 16. ALTERATIONS: A. Tenant may not alter (including making any penetrations to the roof, exterior walls or foundation), improve, or add to the Property or the leased premises without Landlord's written consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises. B. Tenant may not alter any locks or any security devices on the Property or the leased premises without Landlord's consent. if Landlord authorizes the changing, addition, or rekeying of any locks or other security devices, Tenant must immediately deliver the new keys and access devices to Landlord. C. If a governmental order requires alteration or modification to the leased premises, the party obligated to maintain and repair the item to be modified or altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order and in compliance with Paragraphs 16A and 17. D. Any alterations, improvements, fixtures or additions to the Property or leased premises installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing. 17. LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be. encumbered in any way. If Tenant causes a lien to be filed against the Property or leased premises, Tenant will within 20 days after receipt of Landlord's demand: (1) pay the lien and have the lien released of record; or (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph. 18. LIABILITY: To the extent permitted by law, Landlord Is NOT responsible to Tenant or Tenant's employ -em patrons guests or invitees for any damages injuries or, losses to person or propedy caused by. (TAR -2101) 47-14 lnitfaled for identiflcatlon by Landlord: , and Tenant: Page 9 of 15 Produced YAM zlpForm®by zlpLoglx 18070 FlBean We Road. Fraser, Mlddgan 48028 wwwxipLookoom 8155 PRFT AN 8155 PHELAN Commerclal Lease concerning: BEAUMQNT, TEX 77704 A. an act, omission, or neglect of: Tenant: Tenant's agents Tenant's guest; Tenant's employees,• Tenant's patrons; Tenant's invitees; or any other tenant ort the Property• B. fire flood water leaks ice snow, hail winds explosion smoke. riot strike interruption of utilities theft burglary robbery assault vandalism other persons environmental contaminants or„other occurrences or casualty losses w' be es nsibl fo 19. INDEMNITY: Each a any property damage. personal injury suits actions liabilities damages cost of repairs or service to the leased premises or Property, or any other loss caused negligently or otherwise by that part or that patty's employees, patrons, guests, or invitees. caused 20. DEFAULT: A. If Landlord fails to comply with this lease within 30 days after Tenant notifies Landlord of Landlord's failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law. If, however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not be in default if the cure is commenced within the 30 -day period and Is diligently pursued. B. If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 days after it is due, Tenant will be in default. If Tenant fails to comply with this lease for any other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in default, C. If Tenant is in default, Landlord may, s ek a es a rove d d e a l.aw. m ccelerate all rents which are payable during the remainder of this lease .or any renewal d. Landlor li attempt to mitigate any damage or loss caused by Tenant's breach by using c 'fad reasonable m s. If Tenant is in default, Tenant will be liable for: (1) any lost rent; (2) Landlord's cost of re the leased premises, including brokera es, advertising fees, and other fees necessary to rele a leased premises; (3) repairs to the leased premises for beyond normal we d tear; (4) all Landlord's costs associated with ev ' n of Te , such as attorney's fees, court costs, and prejudgment interest; (5) all Landlord's costs associated with c on of r such as collection fees, late charges, and returned check charges; (6) cost of removing any of Te s equipment or fixtures left on th sed premises or Property; (7) cost to remove an sh, debris, personal property, hazardous terials, or environmental contaminants I y Tenant or Tenant's employees, patrons, guests, o ' itees in the leased (8) cos replace any unreturned keys or access devices to the leased premises, parks reqs, or operty; and 21, ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT: Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to: (a) abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and (d) "lock -out” of Tenant. 22. HOLDOVER: If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant -at -will and must vacate the leased premises immediately upon receipt of demand from Landlord. No holding over by Tenant, with or without the consent of Landlord, will extend this lease. Tenant will (TAR -2101) 4-1-14 Initialed for Identification by Landlord: , and Tenant: Page 10 of 15 Produced wllb zW=00by zlpLoglx 98070 Fttleen Mlle Road, Fraser, Mlrhlgan 48026 wrvw.zj(�Loclx.crom SI55 PHELAN 8155 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 Indemnify Landlord and any prospective tenants for any and all damages caused by the holdover. Rent for any holdover period will be-1-5�of the base monthly rent plus any additional rent calculated on a daily basis and will be immediatelypue and payable daily without notice or demand. L:I1LSl1l�IL:UI^aa:yr:f ir:�l �l:l�[:rl��jfy�i�::in:t.11L1'I��Yi��\:rii�:a::laic:Yti':��rv.�Y:�ir:�i��ai�:ri �rs.��ii�!L7:17W i C C - ��=f lr �:..i fly -- rv_ - 24. ASSIGNMENT AND SUBLETTING: Landlord may assign this lease to any subsequent owner of the Property. Tenant may not assign this lease or sublet any part of the leased premises without Landlord's written consent. An assignment of this lease or subletting of the leased premises without Landlord's written consent is voidable by Landlord. If Tenant assigns this lease or sublets any part of the leased premises, Tenant will remain liable for all of Tenant's obligations under this lease regardless if the assignment or sublease is made with or without the consent of Landlord. 25. RELOCATION: [] A. By providing Tenant with not less than 90 days advanced written notice, Landlord may require Tenant to relocate to another location in the Property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements. Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location. "Moving expenses" means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees, wiring companies for connecting and disconnecting Tenant's office equipment required by the relocation, and printing companies for reprinting Tenant's stationary and business cards. A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or unit number will automatically be amended. B. Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior consent. 26. SUBORDINATION: A. This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to: (1) any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that Landlord authorizes; (2) all advances made under any such lien, encumbrance, or ground lease; (3) the interest payable on any such lien or encumbrance; (4) any and all renewals and extensions of any such lien, encumbrance, or ground lease; (5) any restrictive covenant affecting the leased premises or the Property; and (6) the rights of any owners' association affecting the leased premises or Property. B. Tenant must, on demand, execute a subordination, attomment, and non -disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition that this lease and Tenant's rights under this lease are recognized by the lien -holder. MONO - - _ - - (TAR -2101) 4-1-14 Initlaled for Identiflcatlon by Landlord: , and Tenant Page 11 of 15 Produced VA zlpFormO by zlpLo& 18070 FI(tean M8e Read, Fraser, MMifgan 49028 www.ztaLoalx.eom 8151 PHM -W 8155 PHELAN Commerclal Lease concerning: BEAUMONT, TEX 77704 B. Tenant's t fin al ..c h er "ftii£itieii-(�{Ql�i-t.ti X61 Qrmenth-s. 28. CASUALTY LOSS: A. Tenant must immediately notify Landlord of any casualty loss in the leased premises. Within 20 days after receipt of Tenants notice of a casualty loss, Landlord will notify Tenant if the leased premises are less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss. B. If the leased premises are less than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord will restore the leased premises to substantially the same condition as before the casualty. If Landlord fails to substantially restore within the time required, Tenant may terminate this lease. C. If the leased premises are more than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may: (1) terminate this lease; or (2) restore the leased premises to substantially _the same condition as before the casualty. If Landlord chooses to restore and does not substantially restore the leased premises within the time required, Tenant may terminate this lease. D. If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss, Landlord may: (1) choose not to restore and terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give Tenant the option to terminate this lease by notifying Landlord within 10 days. E. if this lease does not terminate because of a casualty loss, rent will be reduced from the data Tenant notifies Landlord of the casualty loss to the date the leased premises are substantially restored by an amount proportionate to the extent the leased premises are unusable. 29, CONDEMNATION: If after a condemnation or purchase in lieu of condemnation the leased premises are totally unusable for the purposes stated in this lease, this lease will terminate. if after a condemnation or purchase in lieu of condemnation the leased premises or Property are partially unusable for the purposes of this lease, this lease will continue and rent will be reduced in an amount proportionate to the extent the leased premises are unusable. Any condemnation award or proceeds in lieu of condemnation are the property of Landlord and Tenant has no claim to such proceeds or award. Tenant may seek compensation from the condemning authority for its moving expenses and damages to Tenant's personal property. 30. related t the F fien d ib a this lease le. entitled fr,_rnn__�f ri+�,id n t F ni•__-_- ncnn.ni�le— ^"^r--�'^-io vgmv�7r'ir�teTt7v6� rou" :,...... terey'sees;-atad-a eva+lteg-peter A party's entitlement to attorney fees shall be controlled by Tdxas law. 31. REPRESENTATIONS: A. Tenants statements in this lease and any application for rental are material representations relied upon by Landlord. Each party signing this lease represents that he or she is of legal age to enter into a binding contract and is authorized fo sign the lease. If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default. B. Landlord is not aware of any material defect on the Property that would affect the health and safety of an ordinary person or any environmental hazard on or affecting the Property that would affect the (TAR -2101) 4-1-14 Initialed for Identificatlon by Landlord: , and Tenant: Page 12 of 15 Produced w8h zlpFom* by zlpl.ogIX 18070 Mean Mlle Road, Fraser, Mlckdgan 48026 ,..Inr antic y 8155 PHSI.AN 8155 PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 health or safety of an ordinary person, except: C. Each party and each signatory to this lease represents that: (1) it is not a person named as a Specially Designated National and Blocked Person as defined in Presidential Executive Order 13224; (2) it is not acting, directly or indirectly, for or on behalf of a Specially Designated and Blocked Person; and (3) Is not arranging or facilitating this lease or any transaction related to this lease for a Specially Designated and Blocked Person. Any party or any signatory to this lease who is a Specially Designated and Blocked person will indemnify and hold harmless any other person who relies on this representation and who suffers any claim, damage, loss, liability or expense as a result of this representation. 32. BROKERS: A. The brokers to this lease are: Principal Broker: Agent: KELLI MANESS Address: 1102 LONGFELLOW DRIVE, SUITE 2 BEAUMONT, TEXAS 77706 Phone & Fax: (409)673-6333 E-mail: kbmanessCo7hotmall.com License No.: 418588 Cooperating Broker: Agent: Address: Phone & Fax: E-mail: License No.: Principal Broker: (Check only one box) Cooperating Broker represents Tenant. X represents Landlord only. represents Tenant only. is an Intermediary between Landlord and Tenant. B. Fees: ❑X (1) Principal Broker's fee will be paid according to: (Check only one box). X (a) a separate written commission agreement between Principal Broker and: XJ Landlord ❑ Tenant. ❑ (b) the attached Commercial Lease Addendum for Broker's Fee (TAR -2102). ❑ 2) Cooperating Broker's fee will be paid according to: (Check only one box), �] (a) a separate written commission a reement between Cooperating Broker And: [I Principal Broker[] Landlord [Tenant. ❑ (b) the attached Commercial Lease Addendum for Broker's Fee (TAR -2102). 33. ADDENDA: Incorporated into this lease are the addenda, exhibits and other information marked in the Addenda and Exhibit section of the Table of Contents. If Landlord's Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion, amend from time to time. 34. NOTICES: All notices under this lease must be in writing and are effective when hand -delivered, sent by mail, or sent by facsimile transmission to: Landlord at: DAVID' DERHAROUTIAN Address: 8114 HIGH TERRACE, SUGAR LAND, TEXAS 77479 (TAR -2101) 4-1-14 Initialed for Identification by Landlord: , and Tenant Page 13 of 15 Produced w8h zlpPwm@ by zlpLoglx 18070 Fifteen We Road, Fraser, Mchlgan 46026 Yaw.A)Lna .cam 8155 P[IEI.AN 8155 PHELAN Commerclal Lease concerning: BEAUMONT, TEX 77704 Phone: (409)351-9255 Fax: and a copy to: DAVID DERHAROUTIAN Address: e-mail: david.derharoutlan@t-online.de Phone: (281)343-5866 Fax: ❑ Landlord also consents to receive notices by e-mail at: Tenant at the leased premises, and a copy to: Address: Phone: ❑ Tenant also consents to receive notices by e-mail at: 35. SPECIAL PROVISIONS: MONTHLY RENTS TO BE MAILED TO: STACY TYWATER BEAUMONT AREA EDUCATORS FEDERAL CREDIT UNION P.O. BOX 751 BEAUMONT, TEXAS 77704 Fax: ALL IMPROVEMENTS TO 8155 PHELAN WILL STAY WITH PROPERTY. TENANT RESPONSIBLE FOR CARPET AND ELECTRICITY TO CARPORT. 1F EXISTING CARPET IS REMOVED IT IS TO BE REPLACED. EITHER PARTY MAY TERMINATE THIS LEASE BY PROVIDING A THIRTY DAY WRITTEN NOTICE. 36. AGREEMENT OF PARTIES: A. Entire Agreement: This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. B. Binding Effect: This lease is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its renewal, or Its termination is binding on all Tenants. D. Controlling Law: The laws of the State of Texas govern the interpretation, performance, and enforcement of this lease. E Venue and jurisdiction for all disputes shall be exclusively in Jefferson Count and none other.!] E. Severa le Clauses: If any clause in this lease is round invalid or unenforceable by a court of law, the remainder of this lease will not be affected and all other provisions of this lease will remain valid and enforceable. F. Waiver: Landlord's delay, waiver, or non -enforcement of acceleration, contractual or statutory lien, rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by Tenant or any other term in this lease. (1'AR-2101) 4-1-14 Initlaled for Identification by Landlord: , and Tenant Page 14 of 15 Produced with zlpForm@ by zlpLaglx IBU70 Rio= Mlle Road, Fraser, Michigan 48026 wwwApLootx.cam am PEMAN 8156 PHEL.AN Commercial Lease concerning: BEAUMONT, TEX 77704 G. Quiet EnJ4Yment: Provided that Tenant is not in default of this lease, Landlord covenants that Tenant will enjoy possession and use of the leased premises free from material interference. H. Force Majeure: If Landlord's performance of a term in this lease is delayed by strike, lock -out, shortage of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for Landlord's performance will be abated until after the delay. Time: Time is of the essence. The parties require strict compliance with the times for performance. Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections. The parties should seek experts to render such services. READ THIS LEASE CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFORE signing. By: ` By (signature): Printed Name: Title: By: By (signature): Printed Name: Title: (TAR -2101) Tenant: CITY OF BEAUMONT By: Date: By: Date: By (signature): Printed Name: XyI e Hayes Title: ,Cites Man ar}er Date: By'(signature): Printed Name: Title: Date: Page 15 of 15 Produced YAM zlpForm® by zlpLoglx 18070 Flfteen Mile Road, Fraser, Nchlgen 48026 mm.21pLoglxGum 8155 PHffi.1N Attachment "A" W Qlmr City of Beaumont February 14, 2018 TO WHOM IT MAY CONCERN: The City of Beaumont is currently self-insured for all lines of coverage normally made available under the Texas Business Auto Policy. Comprehensive and collision accidents are paid as normal operating expenses. The City has a self-insured trust fund from which it pays all auto and general liability claims. The City currently purchases insurance for real and personal property. All real and personal property are protected by all risk type coverage including flood. Real and personal property are subject to a $50,000 deductible. If we can be of further assistance to you or provide you with additional information, please do not hesitate to contact us. MM/rw Very truly yours, 7xQ"A/� Matthew Martin, AIC, ARM Liability Administrator Legal Department • (409) 8843715 • Fax (409) 880-3121 P.O. Box 3827 • Beaumont, Texas 77704-3827 � `9 TEXAS ASSOCIATION OF R-EA,LTORSO COMMERCIAL LEASE USE OF THIS FORMBY PFRSONS.WH.O ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORSO IS NOTAUTHORIZED. Table of Cghtenis No. 1. Podiea,,---_...^.----------_—.2 24. Assignment and Subletting ........................... 11 2. LegbedPremises ......................................... 2 25. Relocation .................................................... 11 3. Tenn 26. Subordination ........................ ...................... n A. 27 11 u...............................2 28. Loss .......... —............................... 12 C. ........................ 3 29. Condemnation ....... ......... ............................. 12 4^ 00. /ttomey'oFees ............................................. 12 �/. ,Bese Monthly Ren .................................3 31. Representations -------.-----12 B. ----------.--3 .........................................................13 C. First Full MphthbRent ........................... 3 %l Addenda ................ ....................................... 13 D. 3 34. Notices ......................................................... 13 E. Place of Pa ment ...................................3 35. Special Provisions ........................................ 14 F. Method ofPayment ..................... ........... 3 36. Agreement wfthe Parties .............................. 14 G. Late Charges ......................................... 4 H! Returned Checks ---'------''4 /i G,enuht�DepomU............................................ 4 — T_ Exhibit. '. Utilities * LJCommercial Lease Addendum for unomaroFee 8. | 5 ) 9` Use and Mou,s—......................................... 6 n Commercial Lease Addendum for Expense 10. 6 Reimbursement (TAR-2103) 11' Signs ............................................................. 8 El Commercial Lease -Addendum for Extension 12. Access 7 OpUuh(T7\R-21O4) 13. MoYe-In Oopdition 7 [] � Commercial Lease Addendum»orPercentage 14' KAove'OutCondibon_----------- T Rand(T\R-210G) 15. K8 | and Repairs �l Commenda|Lease Addendum for Pad�ng A 7 (TAR'2107) 8 Commercial Landlord's Rules and Rogu|aUono C. i &Maintenance Responsibility 0 8 (TAR'2108) O Commercial Lease 09) 9 | | Commercial Lease Addendum for Right ofFirst F. Common Areas --,_---'_--_-..Q RobJno|(TAJ��105) g N ofRepois—^---------' H �� Oomme��|LmaouAddondumforOpbnna| H. Failure toRepair .................................... 9 10) � 16. Alterations ......................-----.--'' 8 -Commercial Lease Addendum forCunstmcUon 17. y U*R-211 19. . B Commercial Lease Addendum for 19. 6ni-nity. 10 CunUngancieu(T\R'2118) 20. D 10 21. Abandonment, interruption of Utilitie , 10 22. --. ..................-------.1O Bnokerugemnnonao 23. Lien&GouutityInterest -----11 ([AR72501) (n���1u1)x�a4 InJilarled ' ' u�mon�noonon� and Tenpn� k14 Page 1vr15 ���amW nnu m�wm° produced with zIpr°"WwzIpuw,,8070,ifte^ M11axw`Fraser, °��^o, F="*��°* m�,�x^N W*do=omm °*u`uLogm=" AS TEXAS ASSOCIATION OF REALTORSO COMMERCIAL LEASE' USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF, REALTORSO IS NOT AUTHORIZED. wex�s Aq.s�DtI6� of REALTORSQD. Ina2014 1. PARTIES: The.pb.rfie.g-to this leage,are: Landlord:- DAVID DERHAROUTIAN and Tenant: C1 2. LEASED: PREMISES: A. Landldrd leases to,Tenant the following described real property, known as the "leased premises," along with ith , all (Check only one box): E] (1) MulilpleJenant'Propeft Suite :or Unit Number Gontainingapprox fmately §quar&.fb6t of i6nitablb area in (gioject name) at -'(address) in (city), (county), Texas, which Is legally described on attached Exhibit of as follows: (2) .SlhaleJenant Pr6peft: The real property containing approximately 'rentable area at: -8166, P'HELAN . BEAUMONT — . (city), r described on attached Exhibit kCT 69 TR.72-A SP -6 BLOCK I a squarre feet of (address) in (county), Texas, which or as follows: B. - If Pairagriaph 2A(1) applies: (1) "Property" means the buildfi- or complex in which the leased premises are located, inclusive lusive of building c any I y common mm.on areas, a . s, drivies,:p drking areas, and walks; and (2).th.b',lpairties' agree that the rentable area of the he leased ,premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. The 'fehiab.10 area n will F]will not be adjusted if re -measured. 3. TERM: A. JeLrrh: The term of this lease is 36. months and days, commencing on: APRIL 1, 2618 (Commencement Date) and "ending on MARCH-31, 2021 (Expiration Date). B. D616of 06cupan If Tenant is unable to occupy the leased otemisbs on the Commencement Date becaus el of,boh.stuction on the leased- 'premises to be completed by'Landlord that is not; substantially (TAR-2101) 4-1-14 ',:-JnWa1ed for Ident1fication by Lan'dford and Teriant Page 2 of 16' Orbduce'd YAM z1pFcM0 by 7JPU& 15070 Rft= Mlle Road, Fr'aser, MWiIW 48026 SW PHELAN $165 PHELAN Commercial Lease,conceming: BEAUMONT, TEX 77704 complete or a prior tenant's holding over ofthe leased, premises, Landlord will not beliable to Tenant for s6ch'del6y and this lease will remain -enforceable. In the event of such a delay, the Commencement Date will ,'automatically be extended to the, date Tenant is able to occupy the Property and the ion -D 'ie -wIjJ also be extended by a like number of days, so that the length of. this J.ease remains Ekoqrat a unchanged If 7enant is ulab , le. to occupy' 1h - e leased Premises after, the -90th day after the ''I'll - : Tenant` Ppy Commericerridnt Date because of construction on the leased premises to be completed by Landlord that:is not substantially complete or a pd6'r,ten'ahVs holding over of the l6bsed premises, Tenant may terrain_ ate this' lease by giving written notice to Landlord before the leased premises become available jo'16e occupied byTenantand Landlord Will refund to Tenant-anyamounts Paid to Landlord by Tenant. This P'a ragmph 3B does not apply to any delay in 'occupancy caused by,clecWng or repairs. Qs PA01ficate of Occupancy: Unless the parties agree otherwise, Tenant is responsible for obtaining a ertific,ate, ofoccu,ppppy.for the leased premises if -required by a,governmental body, .4. RENT -AND EXPENSES* A. Base Monthly Rent` On or before the first day of each h . Month during this lease, Tenant will pay Landlordbase monthly rent as described on attached Exhibit NIA or as -follows: Dates Rate per fentable.square foot. (dpd6naj) Base Monthly .,From To $ MohthlyRate Annual Rate Rent $ �0410112018, 03MI/2021 rsf 1 month / rsf I War 1,367.08 -�f I month i / rsf year rsf I month I rsf vbbr lisf 7 month rsf Y66r rsf I month, �rtf J year B. Additi6naLRent In *addition to the base Monthly rent, Tenant will pay Landlord all other amounts, as OiM (Chedk 611 tha , t appl y.)" ,vided by the attached (1).. Commef6ial Lease Addendum for'Exp'ehse Reimbur§-ement'(TAR-2103) (2) Commercial Lease Addendum for Percentage Rent (TAR-2106) (3) Gommercial Lease Addendum for Parking (TAR-21107) (4) All am&ihts payable undertheapp licable addenda ar6'dedmied to be "rent" for the purposes of this lease. -C. First Full lvlonth's,Ren The first full m onthly rent is due on or before APRIL 01, 2018 D. Prorated ' Rent: If the Commencement Date -is on a day other than the first day of a month, Tenant will pay Landlord 'as 'Prorated ren('8n amount equal to the. base monthly rent multiplied by � the following fractiom, the• number of days from the, Commence I ment Date to,.ft'first day of the following month. -a number 6 month In which this lease. commences. The prorated rent is due divided,byth n e of days on, or before the Commehcem6ht- Date. E. Place of -PayMe nt: Tenant will 'remit all amounts due to Landlord under this lease to the following person at the place stated or to such otherpersbn or.place as, Landlord may later designate in Writing: ,Nbrne' D Address: F. Method of Payment:; Tenant must pay all rent time ly without demand, deduction, or offs6tj except as permitted -by law or thls,leas6. If Tenant fiails to timely 0ay,ady,amounts,due'under this lease or if any (TAR-2101) 4A-14 Identification by Landlord::,7,, and Tenant: K Page 3 of 15 Pdurad YAM z1pFwr0 by rip Lo'six 19070 Fauan m" Row, Frazar, N0119an 46026, 6155PHELAN 8155 PHELAN Commetclal'Lease conceming:,F3E bMONT TEX 77704 check of Tenant is returned to; Landlord ,by the institution on which it was drawn, Landlord after providing written notice to,Tenant :may require Tenant to pay.subsequent amounts that become due under this lease`lh certified funds. This paragraph does not',Ilmit Landlord from 'seeking other remedies under this lease for Tenant's failure to make timely payments with -good .funds. G. es`netrwage-- Shall be controlled by12hapter 225 t s o �he exas G verinment ode. H; Returner ,C�iec"ksenanlnrill pay 2�.00or each check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, ,plus any late charges until Landlord receives payment. 5. SECURITY,DEPOSIT: ' A. Upon execution of this lease, Tenant will pay,'$ -0 to Landlord as a security deposit. B. Landlord may apply the security deposit to any amounts owed ;by Tenant under this lease. If Landlord applies any part 'of the security deposit during" any time this lease is in effect to . amounts owed by Tenant; Tenant must, within 10 days after receipt- of notice from ,Landlord, 'restore the security deposit to the -amount stated. C. Within 60 -days after Tenant surrenders thez leased premises and provides Landlord written notice of Tenant's'fonwafding address, Landlord will refund the. security, deposit- less any amounts applied toward amounts owed by Tenantor other charges authorized by this -lease. 6. TAXES: -Unless otherwise, agreed 'by the parties, Landlorid will pay ail real property ad valorem taxes assessed against the leased premises. 7. _UTILITIES: A., Theparty designated below will,pay for the following utility charges to the leased premises and any connection charges for the utilities..(Check all that apply) N/A Landlord Tenant (1,)1Nater X (2)` Sewer X (3) Electric X (4) 0as ° X (5)'Telephone (6) Internet X (7) Cable X (8) Trash X (10)AII"'other utilities L X B: The party responsible for the charges under Paragraph 7A will pay the charges directly to the utflity service -.provider. The. responsible parry may select the utility. service provider except that if- Tenant selects the provider; arty access, or alterations to the Property .'or _leased premises necessary for the utilities may be made` only with Landlord's prior consent, which Landlord will not unreasonably. withhold. If Landlord incurs any liability for utility or connection charges' for which Tenant is responsible to pay (01) 4-1-14 Initialed for Identification by Landlor-!- and Tenant Page 4 of 15 TAR-21 Produce i wSlh YipFonnO by bpLnyIx "18670 FiBeet Mae Road. Fuser, Mktdgan 4M ,, YNWJkUL&=. 8t55ATiEIr11V 8166 PHELAN Commercial Lease conceming: BEAUMONT TEX 77704 and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse -Landlord such amount. C. NbtWe: Tenant should determine if all nedessary utilities, are available to the leased premises and are,adequate;.for Tenant's ;intended use. D. After-Hours,HVAC Charges:,"HVAC services means heating, ventilating, and air conditioning of the leased 'premises.` (Check one box only.) ❑ .(1). Landlord" is'obligated 'to provide the HVAC services to the leased premises -only. during the Property's'op-rating hours specified under -Paragraph 9C. 0 (2) Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C for no additional charge and will; at Tenant's request, provide HVAC services to the leased premises during•other hours. for an:additional charge of.$ per hour. Tenant will pay,Landlord the charges under this,paragraph immediately upon receipt of 'L'andtord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will he rounded up to.thd next half hour. Tenant will comply with Land_ lord's procedures to make a request to provide the'additionai HVAC services under this paragraph. XX (3) Tenant will pay for the HVAC services under this lease. 8. INSURANCE: ' City is self insured. See7,Attachment "A" . effeatirom an insurer authorized to operate in Texas: ublic liability:. insurance naming Landlord as an additional .,insured o rrence, basis in a minimum amount of: (check only (aj'or (b) below) 8 (a) $ 0,000; or (b) $2,00 0.. If neither box ' ecked the minimum amount will be $1,000,000. (2) personal property age, insurance for the business operations be premises and contents the leased premises in an amount su yen After a casualty loss; and (3) business Interruption insurance _ cier B. Before the Commencement Date, Tenant i evidencing `the required coverage. If the in: degree .at any. time this lease is in effect, change, provide Landlord a copy of an l>e with policy limitsJatf an conducted in the leased to replace such contents konth rent payments; andlord with a copy of insurance certificates age is renewed or changes In, any manner or , not later than 10 days afteelhe renewal or evidencing the :renewal or change. C. If Tenant fails to maintain the re red insurance in full force , d effect at all times this lease is in eff®ct, Landlord rnay: (1) purchase insurance will provide Landlord the same coverage the required insurance and Tenant must Irn ately reimburse Landlord for such expense; or (2) exercise La rd's, remedies under Paragraph 20. D. - Unless t arties.agree otherwise; landlord will maintain in full force and ;effect insura for. (1) fire -and nded coverage in an amount to cover the reasonable replacement cost of the impro ents of roperty; and (2) any public liability insurance in an amount`that Landlord dete'rmines:reaso ble and appropn`ate., _. E. If ther6ls an increase in _Landlord's insurance. premiums for the leased premises or'Property or its contents #hat is caused by Tenant; Tenant's use of the leased premises; or. any improvements made by orfor Tenant, Tenant 'Will, for each year this lease, is in effect; pay.Landlord the increase immediately tTAR-2401 } 41-14 aniUaled:fbr Identification byLarnilorit: , and Tenant _ , Page 5 of 15 Produced wuA tpftnuO Gy spLopbc 1a0T0 Fifteen Mue Road. Freser, Mlchgen 48018 7a 81ss vAE7.AN 8155 PHELAN CommerciafCease eonceming: BEAUMONMIEX 77704 -after Landlord .notifies Tenant of the increase. Any charge to. Tenant. under this Paragraph 8E will be equal #o'the acival amount of the increase in Landlord's insurance premium. 9, .USE AND HOURS: A Tgnant.may,use the eased premises for the following purpose and -no other: EMERGENCY: MEDICAL SERVICE.FOR`THE CITY OF BEAUMONT INCLUDING STORAGE OF EMERGENCY`UNITS AND LIVING OUARTERS FOR EMPLOYEES. B. Unless otherwise- specified 'in' this,.lease, .Tenant .will operate and conduct its business. in the leased 'premises -during business hours that are typical of the industry in which Tenant represents it operates. C. The Property maintains operating hours of.(specify hours, days of week, and if inclusive or exclusive of weekends and holidays): 24-HOURS-A DAY :7 DAYS A WEEK 10: LEGAL,COMPLIANCE A. Tenantmay not use or permit any part of the leased premises or the, Property to be used for: (1) any activity which is a nuisance or is offensive, noisy, or dangerous; (Z} any activity .that interferes ..with any other 'tenant's normal business operations or Landlord's management of the Property; (3) any activity 'that violates any -applicable law, regulation', zoning ordinance, restrictive covenant, governmental order, owners' -association rules, tenants' association rules, Landlord's rules or regulations, or this lease; (4) any hazardous -activity that ,would require .any insurance premium on the Property or leased premises to increase or thatwould void any sucFi insurance; (5) any activity that violates any applicable federal, state, or local law, including but riot limited to those Taws .related to air .quality,water quality; hazardous materials,' wastewater, .waste disposal, air emissions, or other environmental matters; (6} the" 'permanent or temporary storage of any hazardous material; or (7) B. "Hazardous material" -means any . pollutant, toxic substance, .hazardous waste, hazardous material, ! hazardous substance; solvent, or _oil . as defined by any federal, state, or, local environmental ;law, regulation; ordinance, or rule existing as of the date of this lease or later enacted. C. Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions; zoning ordinances, setback .lines, parking requirements, impervious ground -cover ratio requirements, and.,other-matters that may relate to Tenant's intended use. Tenant must satisfy itself that the leased premises may be used as Tenant intends by-- independently 'investigating` all matters related to 'the use of the leased premises or Property Tenant agrees that it is- not relying on any 1,1, SIGNS:. A. Tenant may not post or paint any signs or place any decoration outside the leased premises or on the Property without Landlord's written consent. Landlord may remove any unauthorized sign or decorations; and Tenant will promptly reimburse Landlord for its cost to .remove any unauthorized sign Or.d6doratioh8. (TAR-2101) 4 1.-14 I�I#s.(ed for ldentificatlon,by LandW and Tenant kjl Page 6 of 15 Produced wtth 4p fd" by bpLo& 18,WC 19fteeen PAWRR�oed�, Fieser, M CWg- 44M ' 7�py, ,ppJ , - AM PHBLAN 8166.PHELAN Commercial. Lease conceming: BEAUMONT TEX 77764 B. Any authorized 'sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or, alterations to the leased premises or the Property- C. By.providing written ;notice to Tenant before this lease ends,: Landlord may require Tenant, upon move - out and at Tenant's expense; to remove, without damag& to the Property or leased premises, any or all signs 'or decorations that were placed on the Property or leased premises by or at the request of Tenant. Any" signs or decorations that Landlord does riot require Tenant to remove and that are fixtures, become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 12. ACCESS BY LANDLORD: A. During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, Including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if: (1) entry, is made with Tenant's permission; or (2) entry is necessary m to complete eergency repairs. Landlord will not unreasonably interfere with Tenant's business operations when accessing the leased premises. B... During the last 30 days of this lease, Landlord may place a "For Lease" or similarly worded sign on the leased'preniises. 13. MOVE-KN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as -is) condition unless expressly noted otherwise. in this lease or in an addendum. Landlord and any agent have made no express or implied warranties as to the condition or, permitted use of the leased premises or Proe 14. MOVE -;OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY:, A. At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises In a clean condition free of all trash, debris, personal • property, hazardous materials, and environmental contaminants. B. if,.Tenant leaves any personal .property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may: (1) require Tenant, at Tenant's expense, to remove the personal property by providing written notice to Tenant, or (2) retain such personal property as forfeited property 'to.Landlord. C. "surrender" means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident,'or abuse. D. By providing written notice to Tenant before this lease ends, Landlord may require Tenant,, upon move - out and at Tenant's expense, to "remove, without damage to the Property or leased premises, any or all fixtures that were placed on the Property or leased premises- by or at the request of Tenant. Any fixtures 7that Landlord does not require Tenant to remove becorime the property of the Landlord and must be surrendered to Landlord at the time'this lease ends. 15. MAINTENANCE AND REPAIRS: A. Cleanina Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage" in ,appropriate receptacles._ []Landlord 'FX Tenant will provide, at Its expense, janitorial services to the leased premises that are customary and ordinary for the property type. Tenant will maintain any grease trap on the Property which Tenant uses, including but not limited to periodic (TAR-2141) 4-1-14 Initiated for Identification by Landlordr and Tenant: KID' Page 7 of 15 Produced wtrh slPF=0& by tPL02ix 18870 FAe-1 Road. Fresco. b1 Wg.4M8 yp.MAULoameam Sm PHELkK 8165 PHELAN Commercial Lease concerning: BEAUMOMT.•TEX +77704 empomtying and cleaning,as.well as making any modik4on to the grease trap that may be necessary to cply with any.applicable law:. B Rdgairs of Conditions Caused by a Party Each.party must promptly repair a.,condition'in need of'rePaic that aused, either intentionally'or negligently, by.that`party or that patty's guests, patrons; invitees; contractors or, permitted subtenants: C. Reparr°and Maintenance Responsibility Eccepf as othenyise.provided by this Paragraph' 15, the. -party designated below, at its expense, is "resDon slble to maintain and repair the .following Specified items in the. leased premises (if, any),. The specified .items 'must'be, maintained in clean and; good operable candit 6 If. a. gover',nmental "regulation or order requires a.modification to'any of the specified items, . the party designated to maintain_ -the item must complete and,pai the expense of the modification: The specified, items include and relate, only to .real property in the leased premises. Tenant �s responsible fort repair and'mairitenance of: its personalproperty. (Check all that apply.) Landlord' Tena (1) Foundation, exterior walls,.roof,-and other -,structural components ..,.; X (2) :Glass arid.windows .. X (3):Fire;protection"equipment .......... „ .......... ....I ................. (4) Flre sprinkler systems .......... I. .. ............ j( X (5) ;Exterior:& over'head'doors; including closure devices, molding, docks; and hardware .: ..,. ..... .. ....................... :........ ❑ ❑ (6)` Grounds maintenance, including landscaping and irrigation systems......................................................: .................................. ❑. ❑ (7),Intenordoom, including closure devices, frames, molding, Locks, and hardware .... . . ..... . .. X (8.),Parking areas'and walks .,... .. X (9) Plumbing systems, drainage systems and sump pumps ...............X (1O)'Eleetrical systems; mechanical systems..................................... 1 ... F.... (11') Ballast acid lamp replacement .. ... .......... .... �( (12) Heating_ ,`Ventilation and Air Conditioning (HVAC) systems {13)'HVAC system 'replacement .•..•..•... X (14)Signs-and lighting _ .... ... .. (a) Pylon ............ ......... ..................... (b) Facia X X .... ... . . ..... .... .. (c) Monument...........X (d)boor/Suite .... ................ .................. . ................ ...... X (e) Other: ........... X (1 Extermination -and pest control,, excludingwood-destroying insects. X eh66sand Cates................................ ............ ............... X (17)Storage yards and storage buildings.......................... X - 18)Mod-destroying, insect treatment and repairs ......... ....... ( (19)"Cranes and related systems:. ......... ... X (20) (21) , (22)AI otherltems-and systems.. ......................... .....• .. D -Repair Persons: Repairs must,be completed by trained,'qualified, and insured -repair persons. (TAR72i01) 4-4-14 Initialed -for (dentiflcatlon:by'Landlor ,and Tenant Page 8 of l5 _ ProdtWad C t ;dpForm®bybpLoglx la070 Fifteen We Hoed, Frsser, Mlohfgen 4802a www.ilpLanix.com 8155 P"EL1N 8166-PHELAN Commercial Lease concerning: BEAUMONT, TEX 77704 E. HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(12), Tenant XQ is is not required to, maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such, contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord. may do so and Tenant :will reimburse Landlord for the expense of such maintenance and service contract or Landlord may exercise Landlord's remedies under. Paragraph 20. F. Common Areas: Landlord will-fnaintain any common areas in the Property in a.manner as Landlord determines.to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not- materially 'impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in compliance with Landlord's rules and regulations. Tenant may not solicit any business in the common areas or interfere with .any other pe.rson's right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies. G. Notice of, Repairs: Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair. All requests for repairs to Landlord must be in writing. H. Failure to Repair: Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or -maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, .without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain; or (2) exercise Landlord's remedies under Paragraph 20. 16. ALTERATIONS: A. Tenant may not alter (including making any penetrations to the roof, exterior walls or foundation), improve, or add to the Property, or the leased premises without Landlord's written consent. Landlord will notunreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises. B. Tenant may not alter any locks or any security devicesbri the Property or the leased premises without Landlord's consent. If Landlord .authorizes the changing, addition, or rekeying of any locks or other security -devices, Tenant must immediately deliver.the new keys and access devices to Landlord. C. If a govemmental .order requires alteration or modification to the leased premises, the party obligated to maintain and repair the .item to be modified or- altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order and in compliance with Paragraphs 16A and 17. D. Any alterations, improvements, fixtures or additions to the Property or leased premises. installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing. 17. LIENS; Tenant may not do anything that will cause the title of the Property or leased premises to be encumbered in any. way. If Tenant causes a lien, to be filed against the Property or leased premises, Tenant will within 20 days after receipt of Landlord's demand: (1) pay the lien and have the lien released of record; o"r (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph. 18. LIABILITY: To the extent permitted by taw Landlord is NOT responsible to Tenant or Tenant's employees, (TAR-2101) 41-14 Initialed for Identification by Landlord , and Tenant k h Page 9 of 15 Produced YAW zlpForm9 by zipLogtx 18070 F81een Mlle Road, Fraaer, Mlrhfgad 48026 wmw zlnLoa6 &= 8155 PiIEI.AN 8156 PHELAN . Cuminercial,Lease:concemingi,BEAUMONT. TEX 77-704 :A an.ac# 'omisslon or'neg ect of,Tenant=Tenant's agent Tenant's guest: Tenant's employees: Tenant's pafron$ , Tenant's invitees• or,6ni other tenant on" the Property-. B fire flood water leaks ice; snow, hail words explosion smoke not spike interruption of utilities' theft bu fgl�y r� obbery assawlt vandalism -other persons environmental confaminants "or other OCCUrrences-Orcasualty losses;' • -- �v" 19:>INDEMNITY ,Each `may 'ftbtit.. anyprop damage Kpisuaciliabltes,da,coOrrs or sevce o he leasedersonalnm� otewipremises or ProOyorany ose,�'bv tht` party or that DaVs employees.. patrons: ggues& or invitees.. caused 20:, DEFAULT; .. A If Landlord .fails to, comply with, this lease within '30 days after Tenant'dtifles Landlord of Landlord's , failure to comply, `Landlord .will ,be in' default and Tenant may seek any remedy provided by law, Ifi however; Landlord's non-compl)nce reasonably requires more than :30 days to cure, Landlord will not begin default ifthe;`cure is,corlimenced.Within the 30,day period and`is diligently pursuetl' i B. If Landlord does not actually receive at the plaee designated for payii ent�ariy. rent due under this lease' ` within 5-days after A is due;. Tenant, will be in. default If,Teriant"fails to. comply with this lease for any_.,,, 46ri- son -With n 10, ays after Landlord notifi0" Tenarii�of:its failure to comply, Tenant will be in,, i default: _ - .. C . If Tenant, is vn default, Landlord: may, s ek a es a's roved d e a 13w. .. i6ese en, m ccele'rate all rents which a're payable during the remairder:of this as nor any renewal d, Landlor ll attempt to mitigate any damage orloss caused by Tenants Breach by:'usrng' ercially reasonable.m, , - s: If Tenant is in.'defaulf, Tenant will be liabie for._ % (1) any lost rent; (2)'.L6ndl6rd's cost of:'re he leased premises,, including brokers es, advertising. fees, and other fees necessary to rele leased premises; (4-repairs'to the leased premises for, beyond norrnal we d'_tear, I , (4) ail Landlord's costs associated with ev n of,Te such.as_aftomeys-fees; court 'costs, and prquddment interest; (5) _ail Landlord's costs'_associated 'with on of'r such as, collection?f,pM late charges, and returned checlt charges, (6)•,66st of removing any of Te ;` s equipment``or fixtures left on th pedpremises or Property"; . (7) ;cost ao_ remove -.an sh; .debris; . pe[sonal property; hazardous terlals,, or environmental contaminants;:`I y Tenant or' Tenant's''erriployees, : patrons; guests;, 'itee-s in 'the leased premises roperty; (8) cos replace any, unretumed keys or -access devices 2to the leased premises, park reas, or operty, and; 2,1.'ABAN06NMENT, INTERRUPTION' OF UTILITIES, REMOVAL OF PROPERTY, AND. LOCKOUT: Ch6ptet'93 of,-the'Tekas Property Code, governs the rights arid_obligations of 'the parties with regard to: (a) abandonment of the.,leased premises; (b) interruption..of utilities,.(c) removal ofTenant's property; and (d) "lock od'bf Tenant: 22 HOLDOVER ;If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant at-Willand must vacate the leased,premises immediately upon receipt, of demand from Landlord. No holding over by Tenant, with .or; without the consent of Landlord, _will wdend.this, lease.lTenant will 1 (TAR=2101) 4-1 14 Initlaietl for ldendfication by Landlor ,and Tenant:_, Page 10 of 18 . produced Wi@ilppoim®by ztp1.681X 18070 Fiheen pRia.Roatl Fraser: lAld, 0 4M6 ww . ' 8m PFIELAN l .. 6160HEL4N CommercialLease concerning: BEAUIVIONt:,TEx. 77704 indemnify Landlord and any prospective tenants for any and all damages caused by the holdover. Rent for any holdover period will be-4'.of the base monthly rent plus any.additional ,rent calculated on a daily basis and wilt beani,mediately;due and payable dolly without notice or demand. 24. ASSIGNMENT AND SUBLETTING;, Landlord may assign this lease to any subsequent owner of the Property: Tenant may -not assign this lease or sublet any part of the leased pre'rhi'6 without Landlord's written',con's'ent. An'assignment of this lease or subletting of the leased premises without Landlord's written consent' is voidable by Landlord: If Tenant assigns this tease .or sublets any part of the'leased premises, Tenant "11=remain liable for all of Tenant's, obligations under this lease regardless if the -assignment or sublease is made with or without the"consent,6f.Landlord. -25.' RELOCATION: [] 'A. By providing Tenant with hot. loss than 90 days advanced written notice, Landlord may require Tenant to -relocate to another location in the Property, provided that the other location is equal in size or larger than the. leased premises then I occupied by Tenant and contains similarr,leasehold improvements. Landlord will pay Tenant's reasonable out=of=pocket moving: expenses .for moving to the other location. "Moving, expenses" means reasonable expenses payable to .professional movers, ,utility companies for connection and disconnection fees, wiring companies for•connecting and disconnecting Tenant's office equipment required by the relocation, and printing companies. for reprinting Tenant's stationary 'and business'cards: A relocation of Tenant will not'change or affect any other provision of°this lease that is then' in i6ffect including rent and reimbursement amounts, 'except that the description 'of the -suite or u'It` Umber will automatically be amended:. 0 B:. Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior consent: 26 SUBORDINATION: A. This, lease. and Tenant's leasehold interest are .and will be.subject, subordinate, and inferior to: (1) any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that Landlord authorizes; (2).ah adyances made,under any such lien, encumbrance, or ground lease; (3)'thei0terest payable on any such lien or encumbrance; (4) any .arid all renewals and extensions of any such lien, encumbrance, or ground lease; (5) `any restrictive covenant affecting the lease_&premises or the. Property; and (6). the rights of any owners'.assocation affecting the leased premises or Property. B. Tenant must,- on demand, execute a .subordination, attornment, and non -disturbance agreement that Landlord -may request that Tenant execute, provided that such agreement is made on the condition that this, lease and Tenant's rights'under this lease are recognized by the lien -holder. Q7. 8 . 6. 0__ _ _......ETC- fiNAN6AtIir-$R1V6�t'FtQN:— A: , (Mk2101) 4-1-14 Anifialed, for Identificallon by -La nd and Tenant:, , Page 11 of 15 Produced WK,6zl F—n®by4pL4)(1807Q'FHtedn M8e Roed,,Fmse`r,Mid4gan48D76 ww.v i1"Looh.ca: BMSPMLAN 8155 PHELAN -.Commercial-Lease concemingi SEAUMONT;.TEX,M04 B. 28.'CASUALTY LOSS: A. Teriant rust- immediately notify: Landlord of -any casualty loss in the leased ,premises. Within 20 days after.receipt of.Tenant's nofice'of a casualty loss, Landlortl will notify Tenant if -.the leased premises are less than or: mare than ,50°l0 .unusable, on a per square foot basis; and if -Landlord can. substantially restore the leased, -premises Within 120 days afterTenaritnotifies Landlord of the,casualty loss. B If the leased premises are less than 50% unusable and Landlord can -substantially restore. the leased premises within 120 days after Tenant notifies -Landlord of the casualty, Landlord will restore the leased premises, to substantially the same condition as before the casualty. If Landlord fails to substantially restore within the time required; Tenant may.terninate this lease. C If the leased premises, are more: than 50%-.unusable and Landlord can substantially restore `the leased premises within 120 .days after�'Tenant notifies Landlord of the casualty, Landlord may: (1) terminate this_: lease` or (2) restore the leased premise-s,to substantially the same`condition".as before the casualty. If Landlord chooses,to restore and,does not substantially restore the leased premises within the'time required. Tenant may'terminate.this lease. D. If Landlord notifies. Tenant. that -Landlord cannot substantially restore the ,leased premises within 120 days after'1 enant notifies Landlord of the casualty loss, Landlord may: (1) choose not to restore and tei-mmafe. , _s lease; or (2) choose to restore, notify Tenant,of the 'estimated time to restore, and give Tenant the option' to terminate this lease by notifying Landlord within 10 days. E. Ifafis lease does not terminate', because of a casualty loss, rent.wili be .reduced from the date Tenant notifies Landlord of the casualty loss to the date-the'lease,d :p`remises are substantially restored by an amount proportionate to the extent the leased.premises are unusable. 29. CONDEMNATION: If after a condemnation oe purchase in lieu of condemnation the leased premises are totally :unusable for the purposes stated in this lease, this lease will terminate.. If after a condemnation or purchase in lieu of;condemnation the leased premises or Property are partially unusable for1the purposes of this lease, this lease will con hnue'and rent will 'be'reduced.in_an amount proportionate to "the extent the leased- premises ,are unusable Any, condemnation award or;proceeds" in lieu of condemnation are the property of ,Landlord and.Tenant has no,claim to such proceeds or award Tenant may seek compensation from th'e condemning authority for its. moving expenses and damages to Tenant's personal property. 30. c A party' s ;enti.tlemerit 31. REPRESENTATIONS: to attorney -fees- , shall be -controlled by Texas -law. A. Tenant's statements in this lease -and. -any application for rental-bre material representotions relied. upon by .Landlord. Each party signing this lease represents that he or she is of legal age -to, enter into a binding -contract 'arid is authorized to sign the lease. If Tenant makes any- misrepresentation in this lease or in any..:application for rental, Tenant'is ln, default. B: Landlord is, not aware of, any material defect on'Ahe. Prope,ity'.that would .affect the -health ;and safety of an ordinary person �o� any environmental hazard on or affecting the Property that would affect'the (TAR-2101)'¢1-14 Initialed for-Ident'rficallon by Laridior and Tenant Produced wl6i r7pFortn®6y zipLaglic 1flU70 Rfieen MIIe Road; Freser, Mkhgan'06i2 mvjuj&oakcarn Page 12 of .15 SM MELAN C. Each party and ead -signatory to"this lease represents that (1)'it is not a'persdrinamed as a Specially Designated National and BloeKed:Person,as defined in Presidential Ekeoutive Orderr1 224; (2) it is not acting, directly or indirectly, :for or on behalf of a Specially:,Designated and. Blocked Person; and (3) Is not arranging'orfacilitating this lease.or.any transaction related to .this lease fora Specia0y Designated an, Blocked Person. Any .pa_r#y or, any signatory to this; lease who is ,a Specially Designated and 'Bid - cked-, person -will 'inderrmify` and hold harmless any ,other person who relies on this representation and who:suffers any claim, damage, loss, liability or expense, as a result of -this representation. 32: BROKERS: A. The`brokers to this lease are: P"rind' al Broker. Cooperating !Broker- G.W.-PROPERTIES Agent ,KELU rokNESS Agent Address.1102LQNGF.ELLQW DRIVE..SUITE 2 Address:. BEAUMONT TEXAS! 0' 6 Phorie &-Fax: (4*673-6333 Phone & F= E-mail; k6idaness0ho"' 'O:com E-mail: License No.: 418588 License No;c Principal"Broker. (Check oNy one box) Cooperating,Broker represents Tenant. X represents Landlord only. represents Tenant only: is" an'�intermediary between Landlord and Tenant B. Fees: ❑X �1) Principal Broker's fee will be paid according to: (Check only one box). 9,X, (a) a ��dl arate written commission .agreement between Principal Broker and: QXord []Tenant. ached Commercial Lease Addendum for'Brokees Fee (TAR-2102). 0 2) Cooperating Broker's fee will be paid according to; (Check only one,box): (�] (a) a separate written commission a reement between Cooperating Broker and: {] Principal Broker Q Landlord [Tenant. Q -.(0) the attached "Commercial Lease.Addendum for Broker's Fee (TAR-2102). W. ADDENDA: Incorporated into this lease are the addenda; exhibits and other information :marked in the Addenda and,Exhibit "section of the Table.of Qoritents. If Landlord's Rules and Regulations are made part ofAW-lease; Tenant agrees to comply'Vith the Rules and Regulations as Landlord may, at its discretion, amend from time to'timb. `34. NOTICES: 'All notices under this lease, must be .in writing and are effective when hand-deiivered, sent by mail; or sent by facsimile transmisslon to: Landlord at: � DAVID �DERHAROUTlAN . Address: 8114 HIGH TERRACE, SUGAR LAND; TE7CAS 77479 (TAR 2101) 4A-'14� `iMUdied4or Idenfi icatiarr by Landiord -- , and Tenant _ , Page 13 of 15 ' _ produced wOh ?1pF�?Y zlpLogl i 1wre fifteen we Road, Fraser, 6Vdrigan 48028 � g)ss PHEI.AN. 8155 PHELAN Commereial Lease conceming: BEAUMONT TEX 77704 Phone-,4409)M14AS :' Fax. and,a copy to: DAVID DERHAROUTIAN . Address.- a-mail:='dayidA6rharoutlanAt-odMine.de Phone: (281)343-6866 Fax: Landlord also consents to receive notices by 6-mail at:. Tenant atthe leas"ed�premises, and, a copy to, Address: Phone: Fax, [].Tenant also consents to receive notices bye=mail at: 35. SPECIAL PROVISIONS: MONTHLY RENTS,, TO BE MAILED TO: STACY TYWATER BEAUMONT AREA'EDUCATORS FEDERAL CREDIT UNION P.O. BOX :761 BEAUMONT% TEXAS 77704 ALL,IMPROVEMENTS TO:8155 PHELAN WILL,STAY WITH PROPERTY. 11 TENANT RESPONSIBLE.FOR CARPET AND ELECTRICITY TO CARPORT. IF EXISTING CARPET IS REMOVEDIT IS TO BE REPLACED. EITHER PARTY MAY•TERMINATE THIS LEASE'BY PROVIDING A THIRTY DAY WRITTEN NOTICE. .,,36: AGREEMENT. OF PARTIES: A Entice Agreement:,This. lease contains the entire, agreement between Landlord and Tenant and may nof;,be changed except,bytwritten'agreement. B Binding rEffect: This lease is binding up -on and inures to the, benefit of the parties and their respective heirsexecutors; administrators, successors,• and permitted assigns. C Joint and SeVeral:,,All Tenants, are jointly-and'severally,liable for all provisions, of this lease. Any actor notice o, ;or refund to, or signature'`of,any one'or inore of the Tenants regarding any term of this lease, its -renewal, or its termination is binding on a11,Tenants. D. Controlling 'Law: The laws of the State of Texas govern the interpretation, performance, and enforcementofthis.lease. IVenue and jurisdiction for all disputes shall- be exclusively'in Jeffersan Countyy and none other ,q I- 'Severs"ble Clauses: if any clause in this leas' e.is found invalid for unenforceable by�a court of law, the remainder of this lease will not'be affected and.a0 other. provisions of.this lease will retmain valid and enforceable. F. Waiver, 'Landlord's delay, waiver,. or non -enforcement of acceleration, contractual or: -statutory lien, rental due date, or;any other rig ht.will not be deemed a waiver of any other;:or subsequent breach by Tenant or any othe'rterm in thislease. .. (TAR 2101) 4-1-14 InW616cif6r Identification by Landlord: and Tenant; Page 14 of 15 Produced wl0i zipForm®by zipLoglz 18070:FEleen We Road, Fraser, wcMPn 48026 „pgTX,QM 8155PIiEI.AN 8166.PHELAN Commercial Lease qok6i, iing:,BEAUMONT, TEX. M04 ..G.- Q W Ehjbymeht:,, Provided that Tenantjs not-indefault Of this lease, Landlord covenants that Tenant u P, w111:pqjoy possession and use, of the leased premises free from materialInterferoncel; H. ,For&e.Maleum -If"La'aidlord's performance' of a. term in this -166pe is p delayed by strike, lock -out, shotta: ti .of-',hiiterfai,.goveM6i4ntai 'restriction, Aot,. fioodj or. any cause. outside U'ridlord control,the mefor 'e' orm I a I nce Will be abated 48 until 6%(the delay: Lar)dlor 'S -g The parties require -h Time is,of the essence. uire strict Orripliarice, with the times for performance. -P '.gr6kerslaee not qUajjh6d to; render legal, , advice, pf?perty inspections, surveys, engin6eirina studies, tax odvic6,-ior render -sicompliance nce Inspections. The parties should seek experts t'o`- THj-S LEASE CAREFULLY: If you do not understand the effect,of this �;erO�ps.' kEA-'D'' Lease, .consult, your- attorney SEFORE'signing. LarsdloM .By; ' Y B (signature : Printed Name lt ,ntie: Date,, By (s10patUM)i Printed Name: Title: : Date: '(TAR-21- 01) Tenpint,-olty, OF 6EAUMONT atL - KYLE HA)= By: (plg6ature): Printed Name:' K�z 1 1, ia 'EjAymi-a Title: r,j+-3X Managia-r-, Date: �/9 BY: By'(siglnature); Pdrited-Name: Tift: Mich1pn 48Q28 wwfxo"nh mm Date, Page 16 of 15 SM.P.HELAN ATTACHMENT "A" B EA U1.1'U'Il t, TE%AS City of Beaumont February 14, 2018 TO WHOM IT MAY CONCERN: The City of Beaumont is currently self -insured for all lines of coverage normally made available under the Texas Business Auto Policy. Comprehensive and collision accidents are paid as normal operating expenses. The City has a self -insured trust fund from which it pays all auto and general liability claims. The City currently purchases insurance for real and personal property. All real and personal properly are protected by all risk type coverage including flood. Real and personal property are subject to a $50,000 deductible. If we can be of further assistance to you or provide you with additional information, please do not hesitate to contact us. MMlrw Very truly yours, Matthew Martin, AIC, ARM Liability Administrator Legal Department • (409) 880-3715 • Fax (409) 880-3121 P.O. Box 3827 • Beaumont, Texas 77704-3827