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HomeMy WebLinkAboutRES 11-013RESOLUTION NO.11 -013 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute a three (3) year lease agreement with Weingarten Realty (Landlord) for property located at 4890 Dowlen Road, Beaumont, Texas, for a proposed expenditure of $2,909.48 per month for the Women's, Infants and Children (WIC) satellite office. The lease agreement is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 11th day of January, 2011. s W r 4� At N@!s_ 1-0 00 FIR FINARM �or Becky Ames - LUrS /SVj/AB 06/08/10 07/07/10 10/27/10 11/05/10 11/09/10 LEASE CONTRACT 2008SP• -NPR - TX T - 17426 TWS LEASE CONTRACT entered into by and beriveen "Landlord" and "Tenant" on this the _ _. day of 2010, in accordance with the terns and conditions hereinafter set forth. WITNESSFT14: ARTICLE 1. BASIC PROVISIONS AND CERTAIN DEFINED TL-RMS When used herein, the following terms shall have the indicated meanings: 1. "LAND-1.0-KID": Eastex Venture "NOTICE ADDRESS ": P.O. Box 924133, Houston TX 77292 -4133, Attn: General Counsel 2 ' ">" ' ": City of Beaunont "TENANT`S TRADE NAME" (dAVa): Public health Department; Women, Children's and Infants (WIC) Program "NOTICE ADDRESS ": City ofBeaumont, Attn: City Manager, P.O. Box 3827, Beaumont, TX 77704 -3827 3. "GUARANTOR ": None 4. "LEASED PREMISES Approximately 2,425 square feet constituting part of the Shopping Center as shown on Exhibit „A„ 5. LEASE TERM: "COMMENCFl�yIENT DATE": Earlier of (i) 45 days after tender of possession o£ the Leased Prenuses to 'tenant, or (ii) the date upon which Tenant opens for business in the Leased Premises. "TERMINATION DATE ": Last day of the 36th full calendar month afterthe Commencemesd Date. 6. "MT)\'IhIUM RENT": $2,909.48 per month 7. "PER ENTA F RENT ": N/A 8. "PERMITTED USE ": For general office and distribution purposes for the women, infant, children supplemental food program and for no other purpose. Under no circumstance shall 'Tenant utilize the Leased Premises for a medical or dental clinic or offer medical or dental treatment or dispense drugs or other pharmaceutical products (prescription or otherwise) from the Leased Promises. 9. PREPAID RENT: Tenant shall pay $2,909.48 upon Lease execution, which shall be applied to the fast month's Minimum Rent. TIIE SUBMISSION Op THIS LEASE FOR EXAMINATION BY TENANT AND/OR EXECUTION THEREOF BY TENANT DOES NOT CONSTITUTE A RESERVATION OF OR OPTION FOR TIM LEASED PREMISES AND THIS LEASE SHALL BECOME EFFECTIVE ONLY UPON EXECUTION BY ALL PARTIES HERETO AND DELIVERY OF A FULLY EXECUTED COUNTERPARTHEREOF BY LANDLORD TO TENANT. EXHIBIT "A" 200&SF -NPR - TX ARTICLE ll - PREMISES S,CTIt?N 2.01. landlord hereby leases to Tenant, and Tenant hereby leases from Landlord the Leased Premises which shall be a portion of a building situated or to be situated substantially in the location identified as the Leased Premises on Exhibit "A ", attached hereto and made a part hereof for all purposes, such building to be constructed or being constructed on part of the tract of property described in Exhibit "B ", attached hereto and made a part hereof for all purposes, The land described in Exhibit "B" (as may be reduced or increased fl-on, time to time) and any existing and/or future buildings, parking area, sidewalks, service areas or other improvements now existing or hereafter erected thereon are sometimes herein referred to as the "Shopping Center". Landlord reserves the right to place under or over the Leased Premises pipes, wires and lines serving other areas of the Shopping Center provided such right is exercised in a manner which does not unreasonably interfere with Tenant's business. SECTION 2.02. In detaxmining the floor area of the Leased Premises, distances shall be measured from the exterior face of all exterior walls and the center of all partition walls, which separate the Leased Premises from any interior area. walls separating the Leased Premises from a mall and corridor walls shall be deemed to be, exterior walls of the leased Premises. F 1,10N 2.03. The Leased Premises shall be constructed in accordance with the Construction Rider attached hereto and incorporated by reference herein for all purposes. ARTICLE III - TERM SECTION 3._Q.1. The term of this Lease (the "Lease Term ") shall commence on the Commencement Date and shall terminate on the Termination Date, unless sooner terminated in accordance with the terms and conditions hereiaafler set forth. At the request of Landlord from time to time made, Tenant will execute one or more memoranda or letters stating the commencement and temrinatim dates of the Lease. Notwithstanding anything contained herein to the contrary, Landlord and Tenant hereby agree and understand that funds for the Leased Promises and the Permitted Use are approved by the State of Texas. The State of Texas statutes prohibit the obligation and expenditure of public funds beyond the fiscal year for which a budget has been approved. Obligations beyond the end of the current State of Texas fiscal year will be subject to budget approval. Tenant may cancel this Lease upon thirty (30) days' written notice to Landlord, if appropriate funds arc not approved for the following fiscal year. SECTION 3.02. Notwithstanding the fact that the Lease Team will commence at a date subsequent to the execution of this instrument by Landlord and Tenant, such parties intend that each shall have vested rightsumrediately upon the signing of this instrument and that this instrument shall be fully binding and in full fora and effect from and after execution hereof by Landlord and Tenant. SECTION 3.03. The temi "Luse Year" shall, in the case of the first Lease Year, mean the period which commences with the Commencement Date and terminates on the last day of the twelfth (12th) full calendar month after the Commencement Date. If a Minhaum Rent Commencement Date is provided in Article 1.6. hereof, then the first Lease Yew shall be the period which commences on the Commencement Date and terminates on the last day of the twelfth (121h) full calendar month after the Minimum Rent Commencement Date. If the Commencement Date is not the first day of a calendar month, the first Lease Year shall include the partial month, if any, at the beginning of the Lease Term. Each subsequent Lease Year shall mean a period of twelve (12) full calendar months commencing with the date following the last day of the first Lease Year, and commencing with each subsequent annual anniversary of such day. The last Lease Year of the Lease Term shall be the period which commences on the day immediately following the last day of the preceding Lem You and terminates on the last day of the Lease Term. Accordingly, such last Lease Year may be less than twelve (12) fall calendar months. SECTION 3.04. Landlord covenants that Tenant, upon paying all Minimum Rent and other charges due under this Lease and performing and observing all of the other terns and conditions of this Lease to be performed or observed by Tenant, shall peacefully and quietly have, hold and enjoy the Leased Premises and the appurtenances thereto throughout the Lease Term without hindrance, ejection or molestation by Landlord. ARTICLE N - RENTAL SECTION 4.01. Tenant covenants and agrees to pay to Landlord the Minimum Rent in Houston, Harris County, Texas, at P.O. Box 924133, Houston, TX 77292 -4133, or at such other address as Landlord tray from time to time designate in writing. Payments made to a lockbox are not reviewed or read, and any written statements or notices addressed to the lock box or written on a check deposited in a lockbox are not binding or enforceable upon Landlord. All Minimum React payments shall be made on the first day of each calendar month, monthly in advance, for each and every month during the Lease Term. Upon the Commencement Date, Minimum Rent shall be payable for the first full calendar month of the Lease Term; but if the Lease Term does not commence on the first day of a calendar month, a pro rata part of Minimum Rent shall be payable for such partial month. Any prepaid or advance rental actually paid by Tenant shall be applied toward all amounts due under this Lease as the same accrue. SECTION 4 .0. Intentionally Omitted. ECTLQN 4,03. All rent and other sums hereunder provided to be paid by Tenant shall be due and payable by Tenant, subject to any lawful offset, deduction or credit to which Tenant may be entitled. Minimum Rent and other payments which are more than ten (10) days past due shall bear interest as provided for by §2251 of the Texas Government Code. All stuns and charges of whatsoever nare required to be paid by tu 'tenant pursuant to the terms of this Lease constitute additional rant and failure by Tenant to timely pay any amount due hereunder may be treated by Landlord as a failure by Tenant to pay Minimum Rent. SECtION 4.04. The relation created by this lease is that of landlord and tenant. No provision of this Lease shall be construed to create a joint venture, partnership, or other business association between Landlord and Tenant. In no event shall Tenant be the agent of Landlord nor shall Landlord be liable for the debts of Tenant 2008SF -NPX- TX ARTICLE V — UTILITIES SECTION 5.01. Landlord will provide water and sanitary sewer service to the Leased Premises, and the cost to provide same has been included in Minimum Rent. As such, no separate charge shall be payable by Tenant with respect to water and sanitary sewer service to the Leased Premises. Commencing upon tender of possession of the Leased Premises to Tenant, Tenant will at its own cost and expense pay for all other utilities used in the Leased Premises and will save and hold Landlord harmless from any charge or liability for same, Payments shall be made directly to the suppliers of such utilities. SECTION 5.02. interruptions or malfunctions of any utility services shall not constitute an eviction or disturbance of Tenant's use or possession of the Leased Premises or a breach by Landlord of any of Landlord's obligations hereunder or render Landlord liable for any damages or entitle Tenant to be relieved from any of Tenant's obligations hereunder or grant Tenant any right of off -set or recouptrtcnt, except that in the event any utility service to the Leased Premises is interrupted due to the negligence of Landlord, or Landlord's employees, agents or contractors, and, as a result, Tenant is unable to and does not, conduct business in the Leased Premises, and if such interruption continues for a period of twenty -four (24) consecutive hours or more after Tenant notifies Landlord of such interruption, risen commencing upon the date the twenty- fourth (244') hour of continuous interruption occurs and continuing through the date prior to the date the interrupted service is restored, Minimum Rent and Additional Rent shall be abated based upon the number of days of continuous interruption as compared to the total number of days in the applicable calendar month. Such abatement shall be Tenants sole and exclusive remedy arising out of may interruption of utility services due to Landlord's negligence or the negligence of Landlord's employees, agents or contractors. ARTICLE V7 - USE SECTION 6,91. Tenant will use the Leased Premises solely for the Permitted Use. Tenant will not use or permit use of the Leased Premises for any other purpose without the prior written consent of Landlord, which may be withheld by Landlord in its sole and absolute discretion. The Leased Premises shall be advertised as and operated under Tenant's Trade Name. Tenant will comply with such reasonable regulations as Landlord may promulgate regarding sanitation, cleanliness and other matters at the Leased Premises or within the Shopping Center, including without limitation removal of garbage, trash and other waste. Tenant will not conduct any auction or bankruptcy or fire or "lost - our - lease" or "going- out -of- business" or similar sale or make any unlawful use of the Leased Premises or permit any unlawful use thereof. SF,CTION 6.02. Landlord hereby agrees to contract for the supplying of a " dumpster" for Tenant`s use. Tenant shall place all of its trash from the normal operation of its business activities at the Leased Premises (excluding construction) into the dumpster container provided by Landlord, and Tenant agrees that no other trash container may be utilized by Tenant outside the Leased Premises. Landlord hereby agrees to contract for a dumpster service which will empty the dumpster on a regular basis. The cost to provide trash removal service has been included in Minimum Rent and as such, no separate charge shall be payable by TenaaL ARTICLE VII - COMMON AREA ACTION 7.01. Landlord will provide and maintain a "Common Area' (as hereinafter defined) in the Shopping Center and make necessary repairs thereto and, except when prevented from doing so by causes beyond its control, Landlord will also provide lighting in the parking area in the Shopping Center from dusk until the later of (1) 9:30 o'clock P.M., or (ii) one -half hour after the closing hour of the tenants occupying ninety percent (90 %) of the floor area of all stores in the Shopping Center. Tenant, its employees, customers and invitees shall have the non- exclusive use, along with others, of the Common Area. Landlord shall have the right, from time to time, to change the arrangement, layout andlor size of the Common Area, and designate employee parking spaces and tenant truck loading zones, and to do and perform such other acts in the Common Area as Landlord shall, in its good faith judgment, determine to be advisable. Landlord shall have the right, from time to time, to establish, modify and enforce rules and regulations with respect to the Common Ares. For purposes of this Lease, the phrase "Common Area" means all or any part of the Shopping Center not leased or rented or held by Landlord for the purposes of being leased or rented to other tenants as may from time to time be designated or treated by Landlord as part of the Common Area. 'Nothing in this Article or elsewhere in this Lease shall be construed as constituting the Common Area, or any part thereof, as part of the Leased Premises. Nothing contained in this Lease shall require or obligate Landlord to provide security services in all or any portion of the Shopping Center. To the extent Tenant deems it necessary or prudent to provide security services in the Leased Premises Tenant shall have the right to provide such services at Tenant's sole cost SECTION 7.02. Tenant will at all times keep all merchandise and displays within, the Leased Premises. ARTICLE VIII - ASSIGNMENT AND SUBLETTING pQIIDN B.M. Notwithstanding any provision herein to the contrary, Tenant agrees not to assign or in any manner transfer this Lease without the prior written consent of Landlord, which consent shall not be, unreasonably withheld. without limiting any other reasonable basis for withholding consent, it shall not be unreasonable for Landlord to withhold its consent if. W an "Event of Default" (as hereinafter defined) has occurred; Q the use of the Leased Premises would not comply with the provisions of this Lease;, or (iii) in Landlord's reasonable judgment, the proposed transferee does not have the financial capability to perform the obligations of Tenant under this Lease with. respect to the Leased Premises which are the subject of the Assignment or Sublease. This prohibition against assigning or subletting shall be construed to include a probibition against any assignment or subletting by operation of law. Landlord shall have the right to charge a reasonable fee for review and approval of array assignment. &ECrION 8.02. If Tenant is a corporation, then any transfer of this Lease from Tenant by merger, consolidation or dissolution or any change in ownership or power to vote a majority of the voting stock in Tennant outstanding at the time of execution of this Lease (or at any future time) shall constitute an assignment for the purpose of this Lease. For purposes of this Section 8.02, the term "voting stock" shall refer to shares of stock regularly entitled to vote for the election of directors of the corporation involved 2008SF -NPR -'FX SECTION 8.03. if this Leese is assigned or if the Leased Premises is subleased (whether in whole Orin part) or in the event of the mortgage, pledge or hypothecation of the leasehold interest or grant of any concession or license within the Leased Premises or if the Leased Premises is occupied in whole or in pact by anyone other than Tenant, Landlord may nevertheless collect all Minimum Rent and other amounts due under this Least. from the assignee, sublessee, mortgagee, pledgee, party to whom the leasehold interest was hypothecated, concessionee or licensee or other occupant and apply the net amount collected to the amounts payable hereunder, but no such transaction or collection or application thereof by Landlord shall be deemed a waiver of the provisions of this Article or a release of Tenant from the performance by Tenant of its covenants, duties and obligations hereunder. ARTICLE IX - REPAIR AND MAINTENANCE SECTION 9. 1. Landlord will repair and maintain only the following portions of the Leased Premises: roof (exclusive of flashing around the rooftop air conditioning unit); structural portions of (lie Leased Premises (consisting only of the foundation and members supporting the rood; and utility lines located outside the boundaries of the Leased Premises that serve other premises in common with the Leased Premises. If, however, damage to any of the foregoing is caused by the acts or omissions of Tenant, its agents, contractors, employees, customers or invitees, or any burglar, vandal, or unauthorized entrant, then notwithstanding the provisions of Article A Tenant shall bear the cost of such repairs to the extent die cost of such repairs is not paid to Landlord from insurance proceeds received by Landlord pursuant to casualty insurance referenced in Section 12.04 of the Lease. Tenant shall give Landlord written notice of any repair required to be made by Landlord. SECTION 9.02.A. Except as otherwise provided in Section 9.02.8 below, all maintenance, repair and replacements other than those required to be made by Landlord in Section 9.01 or Article XI will be made by Tenant at Tenant's cost and expense. Tenant shall not make or permit any penetration in the roof above the Leased Premises and shall be, responsible for all rooftop flashing around the rooftop air conditioning unit. if any such roof penetration is required in connection with Tenant's repair responsibilities, Landlord shall perform such roof penetration at Tenant's cost, which shall be paid within thirty (30) days after receipt of an invoice. If Landlord reasonably considers necessary any repairs, maintenance or replacements required to be performed by Tenant, under this Lease, and if Tennant refuses or neglects to perform same after reasonable notice (except in the event of an emergency, when no prior notice shall be required), Landlord sball have the right (but no obligation), to perform such repair, maintenance or replacement and Tenant will pay the cost thereof on demand Tenant shall be responsible for maintenance and repairs of plumbing and electrical systems up to the sum of One Thousand Dollars (61,000) for each repair item. if Tenant determines that any single mainumartce 'item will exceed One Thousand Dollars ($ 1,000), Tenant will notify Landlord and obtain Landlord's prior written consent to the performance of such repairs, including scope of work and cost. 'Upon completion of such repairs, Landlord will pay Tenant's contractor the reasonably documented cost of such repair. Notwithstanding the foregoing, if and to the talent any item of maintenance or repair to the plumbing and electrical systems is caused by the negligence or intentional act of Tenant's employees, agents or invitees, Tenant will be solely responsible for performing such repairs and for the entire cost of such repairs to the extent tine cost of such repairs is not paid to Landlord from insurance proceeds received by Landlord pursuant to casualty insurance referenced in Section 12.04 of the Lease. SECTION 9.02.B. On or before the Commencement Date of this Lease, Tenant shall enter into a maintenance contract ( "Contract ") with an au conditioning maintenance contractor ( "IiVAC Contractor ") approved by Landlord for the maintenance and service of the HVAC system. Such Contract shall provide for maintenance of the IIVAC system not less than quarterly and Tenant's building staff shall change the air filters not less than monthly. Notwithstanding the remaining provisions of this Section 9.02.B., if the filters on the HVAC are not changed on a monthly basis, and repairs, maintenance, or additional repairs or maintenance are required to the HVAC because of the failure to change the filters, Tenant will bear the entire cost of such repair or maintenance, Tenant shall be responsible for the total cost of the basic charge of the Contract and, during the Lease Term, the cost of the maintenance and repairs to the HVAC mechanical system up to the sum of One Thousand Dollars (S 1,000.00) for each item of repair. For the Lease Term only, in the evert the cost of any single item of maintenance and repair to the IiVAC mechanical system is greater than One Thousand Dollars ($1,000.00) (exclusive of the basic charge of the Contract per calendar year), Landlord's prior written approval (which will not be unreasonably withheld) of any such repair must be obtained prior to any such repair being performed, and provided that Landlord's consent has been obtained, then Landlord agrees to pay the IiVAC Contractor such amount in excess of One Thousand Dollars (51,000.00) within thirty (30) days after receipt of an invoice therefor. In the event Landlord, in its sole discretion, elects to replace at its sole cost any or all of the HVAC mechanical units, Landlord shall have no further liability with respect to the cost of maintenance and/or repair of that portion of fhe HVAC mechanical system so replaced. in such event, Tenant shall thereafter have total responsibility for the maintenance, repair and replacement in accordance with Section 9.02.A above. SECTION 9.03. Tenant will maintain the Leased Premises in a clean, attractive condition and in good repair, and shall keep adjacent sidewalks clean Upon termination of this Lease, Tenant will surrender the Leased Premises to Landlord broom - clean and in the same condition in which they existed at the commencement of this Lease, excepting only ordinary wear and tear, damage arising from acts of God, and any damage required hereunder to be repaired by Landlord and shall deliver to Landlord all keys to the Leased Premises. Tenant shall not be required to remove any improvetncat(s) made to the Leased Premises which were approved by Landlord. .3= ON 904. Landlord will have a right to enter the Leased Premises during Tenant's normal business hours to inspect the condition thereof. Except for emergencies, Landlord shall give at least three (3) days notice to Tenant's store manager before entering the Leased Premises to make repairs for which Landlord is responsible hereunder. In case of an emergency, Landlord shall have the right to enter the Leased Premises at any time but must give oral notice to the party designated by Tenant. In any instance where Landlord enters the Leased Premises for the purpose of making repairs, Landlord will use reasonable efforts not to interfere with Tenant's business operations. SECTION 9.05, Should arty mechanic's liens or other liens or affidavits claiming liens be filed against tlue Leased Premises or the Shopping Center arising out of the acts or omissions of Tenant, its agents or contractors, Tenant shall cause the same to be cancelled and discharged of record by payment, bonding or otherwise, within thirty (30) days after Tenant receives notice of same. 2008Sr -NPR - TX ARTICLE X - ADDITIONS AND FIXTURES SF..CTION 10.01. In no event shall Tenant make any exterior or structural alteration or addition to the Leased Premises. Tenant shall have the right to make cosmetic changes and to redecorate the Premises without the prior written consent of Landlord so long as the following conditions are met: (1) the proposed redecorating does not affect Tenant's storefront, Tenant's storefront sign, or the roof, foundation, or structural supports of the building of which the Premises is a part; and (ii) the total cost of all work involved does not exceed an amount equal to the product of ten dollars and 00 /100 ($10.00) multiplied by the number of square feet in the Leased Premises. Any other alteration or addition to the Leased Premises shall require Landlord's prior written consent At such time as Tenant requests such consent, Tenant shall submit plans and specifications for such alterations or additions to Landlord and Landlord agrees to respond to such submission within fifteen (15) business days alter receipt. Tenant will have the right, at Tenant's sole cost and expense, and for Tenant's sole use, to install, maintain, and operate a small roof mounted satellite dish together with ancillary equipment (the "Satellite Equipment ") on the roof over the Leased Premises. The exact location of the Satellite Equipment shall be mutually agreed upon between Landlord and "Tenant. If any penetration of the roof is required in connection with the installation of the Satellite Equipment, such penetration shall, at Tenant's expense, be performed by a roofmg contractor pre - approved in writing by Landlord. The location of the Satellite Equipment and the method of installation utilized by such roofing contractor are also subject to Landlord's prior written approval. Tenant shall not install the Satellite Equipment until it has received Landlord's prior written approval of Tenant's roofing contractor, location of the Satellite Equipment, and the method of installation of the Satellite Equipment. Upon the expiration or early termination of this Lease, Tenant shall remove the Satellite Equipment and repair any damage caused thereby. The Satellite Equipment shall remain the property of Tenant and its installation shall not cause the Satellite Equipment to become a fixture pursuant to this Lease or by operation of law. Tenant's roofing contractor shall take out and maintain Corumemial General liability insurance in a minimum amount of 51,000,000.00 combined single limit. Said liability insurance shall name Landlord as an additional insured with the contractor (and shall contain a cross - liability endorsement) and shall be non - cancellable with respect to landlord except upon thirty (30) days' notice to Landlord (given in the same manner as provided in this Lease) (or, at the request of Landlord, shall be in the form of a separate liability policy in which Landlord alone is the named insured). Tortant's roofing contractor shall also take out and maintain Worker's' Compensation and Employers Liability in a minimum amount of $500,000 bodily injury for each accident, $500,000 bodily injury by disease for each employee, and $500,000 bodily injury disease aggregate and provide a waiver of subrogation for the Tenant and Landlord. Certificates of all such insurance shall be delivered by Tenant or its roofing contractor to Landlord prior to Tenant's roofing contractor performing any work. SECTION 10 . Upon the termination of this Lease or expiration of the Lease Term, Tenant shall remove all "Removable Trade Fixtures" (as hereinafter defined) and, in addition to other applicable provisions of this Lease regarding such removal, the following shall apply: (i) such removal must be made within five (5) days after the termination of this Lease or prior to the expiration of time Lease Term, as applicable; (it) Tenant must not be in default of any obligation or covenant under this Lease at the time of such removal; and (iii) such removal must be effected without damage to the Leased Premises or the building of which the Leased Premises are a part. Tenant shall promptly repair all damage caused by such removal. For the purposes hereof, the phrase "Removable Trade Fixtures" means the fallowing: all of Tenant's signs, tables, chairs, desks, racks, merchandisers and displayers, standards, wall brackets, hang -rods, shelves, mirrors, marking equipment, computers, cash registers and business machines and equipment In no event shall Tenant remove from the Leased Premises any component of the HVAC system, any plumbing fixtnra(s) or lighting fixtirre(s), or any pipes, paneling, wall covering or floor covering. All plumbing or electrical wiring connections exposed as a result of die removal of Tenant's Removal Trade Fixtures, or removal of any other altcration(s), addition(s), fixture(s), equipment or property installed or placed in the Leased Promises shall be capped by Tenant in a safe and worlmmanlike manner. ARTICLE XI - FIRE AND DESTRUCTION OF PREMISES SECTION 11.01, If at any time during the Lease Team, the Le -d Premises or any portion of the Shopping Center should be destroyed or damaged by fire or other casualty, Landlord shall have the election to repair and reconstruct the damaged portion of the Leased Premises and/or the Shopping Center to substantially the condition which existed at the time of Landlord's tender of possession of the Leased Premises to Tenant Landlord will notify Tenant of its election within sixty (60) days after receipt of written notice from Tenant of such damage or destruction. SECTION I 1 02. Notwithstanding anything to the contrary contained herein, in the event the Leased Premises are damaged by fire or other casualty: i) during the last six (6) months of the Lease 'Perm; (ii) such damage was not caused by one or more acts or omissions of Tenant; and (tai) the damage to the Leased Premises exceeds twenty percent (20 %) of the replacement cost of the Leased Premises, then Tenant shall have the right to terminate this Lease upon written notice to Landlord provided Tenant assigns to Landlord Tenant's insurance proceeds related to leasehold improvements. In such event, Tenant shall notify Landlord in writing within thirty (30) days after the date of the aforesaid casualty. SECTION 11.03. In any circumstances described above where Landlord elects to repair and restore the Leased Premises, this Lease shall continue in full force and effect, and sucb repairs will be diligently pursued by Landlord, subject to delays caused by governmental restrictions, strikes, lockouts, shortages of labor or material, acts of God, war or civil commotion, fire, unavoidable casualty, inclement weather, insurance settlement, preparation of plans necessary to obtain a building permit or any cause beyond the control of Landlord (all of the aforesaid causes for delay being herein sometimes referred to as "Fora Majeure "). Minimum Rent shall abate proportionately during the period and to the oxmut that the Leased Premises are unfit for use by Tenant and not actually used by Tenant in the ordinary conduct of its business. ARTICLE XII - LIABILITY AND INDEMNITY SECTION 12.01, iL ability: To the extent permitted by law, Landlord is NOT responsible to Tenant or Tenant's employees, patrons, guests, or invitees for any damages, injuries, or losses to person or property caused by_ 2008SP -NPR - TX (a) An act, omission, or neglect o£ Tenant, Tenant's agent, Tenant's guest, Tenant's employees, Tenant's patrons, Tenant's invitees, or any other tenant on rite Property. SE 1'JON 12.02. Indemnity: Each patty will be responsible for any property damage, personal injury, suits, actions, liabilities, damages, cost of repairs or service to the Lcased Premises or Property, or any other loss caused by the negligence or intentional act of that party or that party's anployees, patrons, guests, or invitees. SECT]ON 12.03. A letter on City of Beaumont Legal letterhead will be provided with the following statement: 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 liability claims. The City currently purchases insurance for real and personal property owned by Tenant. All real and personal property are protected by "all- risk" type coverage including flood. heal and personal property owned by Tenant are subject to a $50,000 deductible. SFcrlON 12. Tenant will not be required to procure or maintain insurance coverage for casualty damage to the structure of the Leased Premises. Landlord will maintain insurance on the structure of tlue Leased Premises. Landlord will not maintain insurance coverage on or otherwise be responsible for. repair, replacement or restoration of Tenant's personal property, equipment; furniture, inventory, or Removable Trade Fixtures. ARTICLE)aii -INTENTIONALLY DELETED ALZI'ICI.E XIV — 11WAN'f'S EQUIPMENT ST•,CCTION 14.01. Upon the expiration or termination of this Lease, Tenant shall remove from the Leased Premises all furniture, frxtres, equipment, inventory and other property installed or placed or permitted at the Leased Premises by Tenant; however, in no event shall Tenant remove any component of the ITVAC system or electrical system, any plumbing fixture, or any pipes, paneIi n& wall or floor covering, ceiling tiles or lighting fixtures. The Leased Premises shall be tell weather tight and secure from any unauthorized entrant. ARTICLE XV - DEFAULT, REMEDIES AND DETERMINATION OF DAMAGES SECTION 15.01. Each of the following acts or omissions of Tenant or occurrences shall constitute an "Event of Default": (a) Failure or refusal by Tenant to timely pay Rent or any other su in when due following ten (10) days written notice; or (b) Failure or refusal by Tenant to comply with the obligations of Tenant set forth in Article VI and/or Article VIII of this Lease and such failure or refusal continues for a period of ten (10) days after written notice thereof to Tenant; or (c) Failure or refusal by Tenant to timely perform or observe any other covenant, duty or obligation of Tenant under this Lease; provided, however, notwithstanding the occurrence of such Event of Default, Landlord shall not be entitled to exercise any of the remedies provided for in this Lease or by law unless such Event of Default continues beyond the expiration of thirty (30) days following notice to Tenrunt of such Event of Default; however, in the event such other covenant, duty or obligation reasonably requires more than thirty (30) days for the curing thereof, such failure to cure shall not be deemed to be an "Event of Default" if Tenant shall have commenced the curing of such failure within such thirty (30) day period and having commenced such curing carries forward the curing thereof to completion with reasonable diligence; or (d) Abandonment or vacating of the Leased Premises or any significant portion thereof, or (e) The entry of a decree or order for relief by a court having jurisdiction over Tenant or my guarantor of Tenant's obligations hereunder in an involuntary case under the federal banlmrptcy laws, as now or hereafter constituted, or any other applicable federal or state banlauptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Tennant or any guarantor of Tenants obligations hereunder or for am substantial part of either of said patties' property, or ordering the winding - up or liquidation of either of said parties' affairs. SECTION ISA2. This Lease and the term and estate hereby granted and the demise hereby made are subject to the limitation that if and whenever any Event of Default shall occur, after such notice, if any, as is provided in Section 15.0 1, Landlord may, at its option, in addition to all other rights and remedies given hereunder or by law or equity, terminate this Lease, in which case Tenant shall immediately surrender possession of the Leased Premises to Landlord. Exercise by Landlord of any one or more remedies granted or otherwise available shall not be deemed to be an acceptance of surrender of the Leased Premises by Tenant, whether by agreement or by operation of law, it being understood that such surrender can be effected only by the written agreement between Landlord and Tenant. 5EC2O1 kS.OS. In the event of any default by Landlord, Tenant's exclusive remedy shall be either: (i) an action for damages; or (ii) an action for specific performance in connection with Landlord's repair responsibilities affecting the Leased Premises, or repair responsibilities affecting the Common Area adjacent to the Leased Premises if as result of Landlord's action (or inaction), Tenant, its employees and customers cannot gain access to or use the Leased Premises during regular business hours. Prior to commencing any legal action Tenant shall give Landlord written notice specifying any alleged default in reasonable detail, and Landlord shall thereupon have a reasonable period of time, but in no event less than thirty (30) days, in which to commence to cure such default. If Landlord fails to commence to cure such default or, having so commenced, thereafter fails to exercise reasonable diligence to complete such curing, Tenant may exercise any remedy set forth in this Section. All obligations of Landlord hereunder will be construed as independent covenants, not conditions; and 2008SF -XPR . IX all such obligations will be binding upon Landlord only during the period of its possession of the shopping Center and not tbereafter. ARTICLE XVI - NON - WAIVER SECTION 16,Q 1. Neither Landlord's acceptance of rent or any other sums payable by Tenant hereunder (or any portion thereof), nor failure by Landlord or Tenant to complain of any action, non - action or default of the other shall constitute a waiver as to any breach of any covenant or condition contained herein nor a waiver of Buy of Landlords or Tenant's rights hereunder. Waiver by Landlord or Tenant of any right shall not constitute a waiver of any other right or for any prior or subsequent default of the same obligation. No right or remedy of Landlord or Tenant hereunder or covenant, duty or obligation hereunder shall be deemed waived unless such waiver is in writing and signed by the parLY waiving such right. ARTICLE XVII - EMINENT DOMAIN SECTION 17.01. if Utere shall be taken during the Lease Perm any portion of the Leased Premises, by any authority having the power of eminent domain, then and in that event, the Lease Term shall cease and terminate, and the date of such termination shall be, at Landlord's election, either the date upon which possession shall be tendered to such authority by Landlord or the date upon which possession is taken by such authority. such authority, Landlord may ,SF(, _)N 17QM. Whether or not any portion of the Leased Premises may be taken by nevertheless elect to terminate this Lease or to continue this Lease in effect in the event any portion of any building in the Shopping Center or more than ten percent (10 %) of the Common Area of the Shopping Center be taken by, ob authority. SECTION 17.03. If a substantial amount of the parking spaces immediately adjacent to the Leased Premises are taken by such authority, Tenant may elect to terminate this Lease. All sums awarded or agreed upon between Landlord and the condemning authority for the taking of the fee or the Leasehold estate, whether as damages or as compensation, shall be the property of Landlord. Tenant hereby assigns to Landlord all proceeds, whether by way of compensation or damages, for loss of the leasehold interest by reason of such taking. SECTION 17.04. Any amounts specifically awarded or agreed upon by Tenant and the condemning authority for the taking of Tenant's removable trade fixtures and/or the unarnortixed cost of Tenant's leasehold improvements shall be the property of Tenant. Tenant shall have the right to pursue any separate award from the condemning authority for relocation expenses, loss of business, or other non -real estate related awards; provided any such award does not decrease the amount of the award otherwise due Landlord for the taking of the fee simple interest in the Shopping Center. Landlord shall not be liable to Tenant for any such amounts in connection with such taking. SE 17 05. If this Lease should be terminated under any provision of this Article, Mental and other sums due and payable by Tenant hereunder shall be payable up to the date that possession is taken by the taking authority, and Landlord will refund to Tenant an equitable portion of any such rental and other sums paid in advance but not yet earned by such date. ARTICLE 7t:VIII - HOLDING OVER 4TC=N 1SAl. If Tenant should retnahr in possession of the Leased Premises after the expiration of the Lease Term, without the execution of a new lease and with Landlord's consent, Tenant shall be deemed to be occupying the Leased Premises as a tenant from mouth -to- month, subject to all the covenants and obligations of this Lease, except that es liquidated damages by reason of such holding over, the monthly amounts payable by Tenant under this Lease shall be increased to one hundred twenty -five percent. (125 0/6) of the monthly amounts payable in the last month of the Lease Terns. Such month -to- month tenancy may be terminated by either party upon thirty (30) days notice to the other. Any rent due after notice bas been given is to be calculated according to this Section prorated for any partial month of holdover. If Tenant tenders rent pursuant to the formula in this Section, and Landlord accepts such payment, the acceptance of such payment will not operate as a waiver by Landlord of the notice of termination, unless such waiver is in writing and signed by Landlord Notwithstanding anything to the contrary contained in this Section, in the event the term of this Lease has expired and provided that Landlord on and Tenant have entered into good faith negotiations to renew or extend the term to the Lease, concluded shat! not be deemed days a month -to -month tenancy so long as the negotiation of any such renewal or extension is concluded within sixty (60) days following such expiration of the term of this Lease. ARTICLE XIX - LANDLORD'S MORTGAGEE &C1TON 19 01. 'tenant agrees that its interest under this Lease shall be subordinate to any mortgage, deed of trust or similar device now or hereafter placed upon the Leased Premises or all or any portion of the Shopping Center by Landlord if the mortgagee or beneficiary under said deed of trust or lender for whose benefit any other security device is created so elects, and, upon notice to Tenant of such election, Tenant will execute any instnunents required to evidence such subordinatiom SEc"1'ION I9 02. Landlord and Tenant shall execute and deliver to each other, at such time or times as either Landlord or Tenant may request, a certificate stating. (i) whether or not the Lease is in full force and effect; (ii) whether or not the Lease has been modified or amended in any respect, and submitting copses of such modifications or amendments, if any; (iii) whether or not there are any existing defaults under this Lease to the knowledge of the party executing the certificate, and specifying the nature of such defaults, if any; and (iv) such other information as may be reasonably requested. The aforesaid cer0cate(s) shall be. delivered to Landlord or Tenant, as the case may be, promptly upon receipt of a written request therefor, but in no event more than ten (10) days following receipt of such request. ARTICLE xX — Intentionally Deleted. ARTICLE XXI - NOTICE SECTION 21 Q. Any notice which may or shall be given under the terms of this Least shall be in writing and sent to the Notice Address of either Landlord or Tenant, by national courier service or certified mail. For purposes of the calculation of 200SSF-NPR - TX various time periods referred to herein, notice delivered by national courier service shall be deemed received when delivered to the recipient's Notice Address and notice delivered by certified mail shall be deemed received when delivered to the recipient's Notice Address upon the earlier to occur of: (i) actual receipt as indicated on the signed return receipt; (ii) the date of fast attempted delivery; or (iii) three (3) days after posting as herein proAdcd. Any written notice actually received by the addressee, shall constitute sufficient notice for all purposes under this Lease regardless of the delivery method. ARTICLE X)OI - TENANT'S SIGNS SECTION 22.01. Tenant shall be responsible for the costs and installation of a building fascia sign and a sign under the canopy of the building of which the Leased Premises area pact Sign plans shall be prepared by Tenant in accordance with the sign criteria of the Shopping Center and submitted to Landlord for Landlord's prior written approval. Except as approved by Landlord in writing, no sign, placard or advertisement, or exterior or interior window sign, placard or advertisement shall be painted, erected or displayed on the storefront of windows of the Leased Premises and no awnings shall be erected on the Leased Premises. Tenant shall cause Tenant's exterior sign to be placed on a time clock and photoelectric cell device such that the electricity illuminating such sign shall keep Tenants electric signs on from dusk until 11:00 o'clock P.M., every day during the Lease Term. ARTICLE XXM — TENANT'S BANKRUPTCY 5E 23.01. This is a lease of real property in a 'shopping center" within the meaning of Section 365(b)(3) of the Bankruptcy Code. Notwithstanding anything in this Lease to the contrary, all amounts payable by Temmt to or on behalf of landlord under this Lease, whether or not expressly denominated as 'rent ", shall constitute "rent" for the purposes of Section 502(b)(7) of the Bankruptcy Code. ARTICLE XXIV - TERMINOLOGY AND MISCLT LANEOUS SECTION 24.01. With respect to terminology in this Lease, each number (singular or plural) shall include all numbers, and each gender (male, female or neuter) shall include all genders. If any provision of this Lease shall ever be hold to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions of the Lease, but such other provisions shall continue in full force and effect. The tides of the Articles in this Lease shall have no effect and shall neither limit nor amplify the provisions of the Lease itself. This lease shall be binding upon and shall accrue to the benefit of Landlord, its successors and assigns. Sl MQN 24.02. In all instances where either Landlord or Tenant is required hereunder to pay any sum or do any act at a particular indicated time or within an indicated period, it is understood tbat time is of the essence. SECTION 24.03. Neither Landlord nor Tenant shall ever be liable hereunder for cons"pential tic- special damages. All liability of Landlord for damages arising under this Lease way be satisfied only out of the interest of Landlord in the Shopping Center existing at the time any such liability is adjudicated in a proceeding as to which the judgment adjudicating such liability is non - appealable and not subject to further review or out of rents to be received by Landlord from occupants of the Shopping Center. The term "Landlord' shall, mean only the owner, for the time being of the Shopping Center, and in the event of the transfer by such owner of its interest in the Shopping Center and the assumption by the transferee of the covenants, duties and obligations of Landlord hereunder, such transferor shall thereupon be released and discharged from all covenants and obligations of Landlord thereafter accruing, but such covenants and obligations shall be binding during the Lease Term upon each new owner for the duration of such owner's ownership. SECTION 2494. All monetary obligations of Landlord and Tenant are performable exclusively in Beaumont, Jefferson County, Texas. This Lease shall be construed in accordance with the laws of the State in which the Shopping Center is located, and the County in which the Shopping Center is located shall be the venue for any litigation arising from this Lease. SECTION 24.05. To the best of Tenant's knowledge, Tenant is currently in compliance with, and covenants to Landlord that Tenant shall at all times during the Lease Term (including any extension thereof) remain in compliance with, the regulations of the Office of Foreign Assets Control (" OFAC) of the U.S. Department of Treasury (including those named on OFAC's Specially Designated Nationals and Blocked Persons List) and any statute, executive order (including, but not limited to, Executive Order 13224, dated September 24, 2001 and entitled "Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Taarorisrn "), or other govemmcntal, regulatory, or administrative action relating thereto. Jg'GON 24 06. Weingarten Realty Investors (the "trust ") is an unincorporated trust organized under the Texas Real Estate Investment Trust Act. Neither the shareholders of the trust, nor its trust managers, officers, employees or other agents are personally, corporately or individually liable for any debt, act, omission or obligation of the trust, and all persons having claims of any kind against the tout must look solely to the property of the trust for the enforcement of their rights. saEg110N 24 07. Notwithstanding anything contained berein to the contrary, Landlord and Tenant hereby agree and understand that funds for the Leased Promises and the permitted Use are approved by the State of Texas. The State of Texas statutes prohibit the obligation and expenditure of public funds beyond the fiscal year for which a budget has been approved. Obligations beyond the end of the current State of Texas fiscal year will be subject to budget approval. Tenant may cancel this Lease upon thirty (30) days' written notice to Landlord, if appropriate funds are not approved for the following fiscal year. ARTICLE XXV - ENTIRE AGREEMENT SECTION 25.01. This instrument (including all Riders, Exhibits and Guaranty, if any) constitutes the entire agreement between Landlord and Tenant; no prior written or prior or contemporaneous oral promises or representations shall be binding. This Lease shall not be amended, changed or extended except by written instrument signed by both parties hereto. 2008SF -NPR -TX EX'F.C1tTED in multiple counterparts, each of which shall have the force and ellect of an original, on the day and year first written above. EASTER VENTURE, a Texas joint venture By: Weingarten Really Investors, a Texas real estate investment trust, its General Manager By: Name: �. —• Title: --- – "LANDLORD" CITY OF BEAUMONI', a Texas Municipal Corporation By: Name: Title: -- "TENANT' PmAk Page to Shovnin^ t;�te ter Lease AS -IS -MIN CONSTRUCTIONAMER This Construction Rider is attached to and forms a part of that certain Lease Contract (the "Lease Contract ") dated 2010, between L•ASTEX VFNTURF, as "Landlord" and CITY OF BEAUMONT, as "Tenant ". - -- Section 1.01. The Leased Premises will be tendered to Tenant by Landlord in its existing condition on an "AS -IS" basis without any nature of construction work being performed by Landlord, except as provided in Section 1.07 below. Tenant has inspected the Leased Pmniises and accepts them in such "AS -IS" basis except that, prior to tender of Leased Premises, Landlord shall place the FIVAC system serving the Leased Premises in good working order, and Landlord shall incur no liability to Tenant by reason of any defects in the Leased Premises, including any latent defects. Tenant may, at its sole cost and exImnse, make such minor alterations, remodeling and changes to the Leased Premises as it deems necessary for the operation of Tenant's business; provided, however, that prior to commencement of such work, Tenant submits and obtains written approval from Landlord of plans and specifications covering any such work (including The name of the general contractor or contractors that Tenant expects 10 Ilse in completing such work) and that such work is completed as approved. Landlord's approval of Tenant's plans and specifications is to satisfy a condition precedent to the commencement of Tenant's construction, and should not be relied upon by Tenant as a representation or warranty by Landlord of any kind or nature, expressed or implied, all of which are hereby disclaimed. Landlord makes no representation or warranty that 'tenant's proposed construction is structurally sound, is in compliance with the above - mentioned rules, regulations, or laws, or is sufficient to obtain all required permits. No change, alteration or remodeling shall at any time be made which shall impair the snuctural soundness or diminish the value of the Leased Premises. All work done in connection with any change, remodeling or alterations shall be done in a good and workmanlike manner and in compliance with all laws, Ordinances, building codes, rules and regulations of appropriate governing authorities and Tenant shall procure any certificates required by any such governing authority at Tenants sole cost and expense. Tenant will also provide and install all other interior work, trade equipment, fiuuitwe, fixtures and effects of every description necessary or appropt iate for Tenant's business and all such items to be provided and installed by Tenant shall be new and modem and of first -class quality. Upon completion by Tenant of its work at the Leased Premises, Tenant will furnish landlord one (1) set of as -built drawings for the electrical and mechanical systems of the Leased Premses. Section 1.02. with respect to any labor performed or materials famished by Tenant at the Leased Premises, the following shall apply: All such labor shall be performed and materials furnished at Teaant's own cost, expense and risk. Labor and materials used in the installation of Terant's furniture and fixtures, and in any other work on the Leased Premises performed by Tenant, will be subject to Landlord's prior written approval. Any such approval of Tenant's labor shall constitute a revocable license authorizing Tenant to permit such labor to enter upon the Shopping Center and Leased Premises prior to the commencement of the lease term for so long as Tenant's labor does not interfere with labor utilized by Landlord or any other tenant. with respect to any contract for any such labor or materials, Tenant acts as a principal and not as the agent of Landlord. To the extent permitted by law, Tenant agrees to indemnify and bold Landlord hannless from all claims ( includntg costs and expenses of defending against such claims) arising or all to arise from any act or omission of Tenant or Tenant's agents, employees, contractors, subcontractors, laborers, materialmen or invitees or arising from any bodily injury or property damage occurring or alleged to have occurred incident to Tenant's work at the Leased Premises_ Tenant shall have no authority to place any lien upon the Leased Premises or any interest therein nor in any way to bind Landlord; and any attempt to do so shall be void and of no effect. Landlord expressly disclaims liability for the cost of labor performed or materials furnished by Tenant. If, because of any actual or alleged act or omission of Tenant, any lien, affidavit, charge or order for the payment of money shall be filed against Landlord, the Leased Premises or any portion thereof or interest therein, whether or not such lien, affidavit, charge or order is valid or enforceable, Tenant shall, at its own cost and expense, cause same to be discharged of record by payment, bonding or otherwise no later than fifteen (15) days after notice to Tenant of the filing thereof; but in all events, prior to the foreclosure thereof. All of Tenant's construction at the Leased Premises sliall be performed in stria compliance with the working drawings, all applicable building codes and other legal requirements and in a good and workmanlike manner satisfactory to Landlord's Arehitoa and in such manner as to not cause Landlord's fin: and extended coverage insurance to be canceled or the rate therefor increased. In the performance of such work, Tenant shall not interfere with or delay any work being done by Landlords contractors. Upon completion by Tenant of its work at the Leased Premises, Tenant shall provide to Landlord a certificate of occupancy (or other certificates evidencing inspection and acceptance of all of Tenant's construction by appropriate government authorities). Section 1.03. All improvements constructed by Tenant at the Leased Premises (excepting only Removable Trade Fixtures installed by Tenant) shall, irnmediately upon such construction, become and remain the property of Landlord; and Tenant shall have no right, title or interest (including lien interest) therein, except only as Tenant under the provisions of the Lease Contract. The aforesaid improvements, if constructed by Tenant, are not intended as any nature of rent or compensation to Landlord. Section 1.04. if at any time during the course of Tenant's work at the Leased Premises, the storefront of the Leased Premises is not fully secure, Tenant shall construct a barricade of plywood or other material approved by Landlord to secure the Leased Premises and adjoining lease space. Section 1.05. Any work (except the ansmaI inspection) at the Leased Premises involving the sprinkler system (if any) serving the Leased Premises shall be performed by Landlord or its contractors at Tenanrs cost, tip to $1,000 of each repair or maintenance item. Notwithstanding the foregoing, if and to the extent any item of maintenance or repair to the sprinkler system is caused by the negligence or intentional act of Tenant's employees, agents or invitees, Tenant will be solely responsible for performing such repairs and for the entire cost of such repairs to the extent the cost of such repairs is not paid to landlord from insurance proceeds received by Landlord pursuant to Landlord's casualty insurance referenced in Section 12.04 of the Lease. Tenant shall pay the cost of any such work for which it is responsible pursuant to this Section 1.05(or reimburse Landlord therefor) within ten (10) days after delivery to Tenant of a statement therefor. Section 1.06. In the event Tenant fails to satisfy the conditions set forth in Section 1.01 of this Construction Rider and also commence construction on or before the expiration of seve days from the date of tender of possession of the Teased Premises to Tenant, then such failure shall constitute an Event of Default under the Lease Contract and without Mier notice Landlord shall have the right to either terminate the Lease Coitttact at any time thereaRar or exercise such other remedies as may be available to Landlord pursuant to the terms of the Lease Contract. Section 1.07. Prior to the date upon which Landlord tenders possession of the Leased Premises to Tenant, Landlord shall perform The work as outlined on Exhibit "X" attached hereto and made a part hereof, in order to bring the Leased Premises into compliance with the American with Disabilities Act of 1990. ON • ' ! si '£ilis option Rider is attached to aad forms a part of that certain Lease Contract (the "Lease Contract ") dated 2010, between EASTEX VENTURE, as "Landlord," and CITY OF BEAUMONT, as "Tenant." Contingent upon Tenant satisfying all of the following conditions, Tenant is hereby granted an option to extend the lease terra, as set forth in Section 3.61 of the Lease Contract (the "Primary Term ") for one (1) additional period of thirty -six (36) full calendar months (the ' Txtension Term "), said conditions being that: (i) Tenant shall have fully performed all of its covenants, duties and obligations hereunder during the Primary Term; (ii) Tenant shall not have assigned ire Lease Contract or any interest therein or sublet (or otherwise permitted occupancy by any third party of) all or any portion of the Leased Promises during the Primary Term (any such assignment, subletting or occupancy being subject to the provisions of Article VIII of the Lease: Contract) regardless of whether any such assignment, sublease or occopancy is then still in effect and regardless of whether Landlord shall have consented to any such assignment, subletting or occupancy; and (iii) Tenant shall have given notice to Landlord not less than one hundred eighty (180) days, nor more than two hundred seventy (270) days, prior to the expiration of the Primary Term of Tenants intent to renew the Lease pursuant to this option Rider ( "Notice of intent to Renew"). Time is of the essence in die exercise of this option and should Tenant fail to submit a Notice of Intent to Renew as provided in (iii) above, this option shall lapse and be of no further force or effect. In the event that Tenant effectively exercises the option herein granted, then all of the terms and provisions of the Lease Contract as are applicable during the Primary Term shall likewise be applicable during the Extension Term except: (a) Tenant shall have no further right to renew or extend the lease tern after the expiration or other termination of the Extension Term; and (b) The "Minimum Rent" (as defined in Article 1.6 of the Lease Contract) which shall be due and payable each month during the Fxtension Tenn (and at the same time and place and in the same manner as set forth in Section 4.01 of the Lease Contract relative to payment of Minimum Rent dining the Primary Ternh), shall be at the then prevailing Fair Markel Rental Value as determined by Landlord in its sole discretion. As used herein, "Fair Market Rental Value" shall men the projected prevailing rental rate as of the first day of the 7- :xtension Term for renewing and extension tenants for similar space situated in the Shopping Center. Landlord shall provide written notice of such amount not later Ulan thirty (30) days after receipt of Tenaafs Notice of Intent to Renew. Tenant shall have Fifteen (15) days after receipt of Landlord's notice of the Fair Market Rental Value ('Tenant's Review Period ") within which to accept such Fair Market Rental Value or to reasonably object thereto in writing. In the event Tenant objects to the Fair Market Rental Value submitted by Landlord, Landlord and Tenant shall attempt to agree upon such Fair Market Rental Value. If Landlord and Tenant cannot agree to Fair Market Rotttal Value within. fifteen (15) days after Landlord gives Tenant notice of the Fair Market Rental Value, that Tenant may rescind its Notice of Intent to Renew in writing ("Tenant's Rescission Notice'), and the term of the Lease shall expire as if Tenant had never issued such Notice of Intent to Renew. Tenant's Rescission Notice must be given no later than fifteen (15) days after the expiration of Tenant's Review Period or the term of the Lease shall be extended on the terms and conditions of the Lease including Landlord's determination of the Fair Market Rental Value for the Extension Term. References in this Rider and the Lease Contract to the "term" or the "lease term" shall be understood to refer to both the Primary Term and (if Tenant's option therefor is effectively exercised in accordance with the provisions hereof) also the hereinabove stated Extension Tenn unless such interpretation is expressly negated. UV-- I' I CONCORD ROAD a a 5 EASTEX FREEWAY AC "Leased Premises" Approx.: 2,425sf 4890 Dowlen Rd. rFEAASTEX FREEWAY Beaumont, Texas The "Leased Premises" as shown hereon is for City of Beaumont Subject to the terms of the Lease, any future construction by the Landlord within the Shopping Center will not affect the validity of the Lease covering the Leased Premises. Subject to the terms of the Lease , Landlord may elect to change the location, size, layout, or other details of any buildings, or Common Area in the Shopping Center and /or to construct other buildings in the Shopping Center and such changes will not affect the validity of the Lease covering the Leased Premises. The post office address designated hereon, if any, is subject to change at any time. Floor No: DATE: 06 -04 -2010 EXHIBIT " A" REV.: 40 -00 -0000 NORTH PARK INITIA E00 Unit o: EOX Project No: ea 0605 BEING 1.1.8700 acres (517,056 square feet) of land situated in the F. Bigner Surrey, Abstract No. 1, Beaumont, Jefferson County, Texas. Said 11.9700 arse: 4acr is more Cully desrrribed by metes and bounds as follows; BEGINNING at an iron rod at the intersection of the east right- of-way line of Dowlen Road, also called Crow Road Extension (100 foot right - of -sway) with the north line of U.S. Highway'69, called the Eastex Freeway, (,400 foot right -o£ -way). said point also being the most westerly corner of the herein described tract; 7mCE N 01' 18' 53" B, along the cast right-of-way lima of Dovlen Road, a distance. of 191.50 feet to an iron rod at the point of curvature of a curve to the right. Said curve having a radius of 364.36 feet, sub tends a central angle of 39' 36' 25 ", and has a chord bearing of N 21' OB' 42" B; THENCE along the are of said curve and said east right --of --way line, a distance of 390.13 feet to an iron rod at the point of tangency; THENCE N 40' 44' 06" E. along said east right -of -way, a distance of 1D0.22 feet to an iron rod for a corner; THENCE N 85' 44' 06" E. a distance of 35.35 feet to a =numeat on the south right- of-way line of Concord Road (60 foot wide) for a corner; THENCE S 50' 07' 43" i, along said south right -of --way line, a distance of 17.60 feet to an iron rod for an angle point; THENCE S 58' 59' 31" E, along said south right -of -fray line, a distance of 639.12 feet to an iron rod for a corner; THENCE S 31' 00' 29" W, a distance of 190.00 feet to an iron rod for an interior corner; TITSNCE S 58' 59' 31" E. a distance of 177.17 feet to an iron rod for a corner; THENCE S 31' 00' 29" V. a distance of 130.00 feat to an iron rod for a corner; THENCE N 38' 59` 31" W, a distance of 11.52 feet to an Iran rod for an interior corner; liiillCE S 3i' 00' 29" W, a distance of 349.43 feet to an iron rod an the north right -ofway line of U.S. highway 69 ($astex Freeway) for a corner; THENCE N 55' 33' 33" W, &long said noYtb right- cf-way line, a distance of 310.10 feet 'to a Texas Highway Department moa+anent far a corner; THENCE N 60' 14' 52" W, along said north right- of-way lisle, a distance of 398.14 feet to the POINT OF BEGINNING and containing 11.8700 acres of land more or less. EXHIBIT "B" L6050 1C /5/ 92 1*: m !D O a 0 O N N A O m N i C Y CL K N CL pr vs (n SUF�PI• ' c mv_fl m Y pOI, p. m S ; M� 07 .it. �7 hh a �" A Y ,a g m m � a 2 r. m o N pN O Sr. O 14tt3if X U —1 O � N C O � ^o� 1 � � 1 m c' G m Q N tea; roA� o m ' �i O _ �G 0 m ;it m R 1l• 4 O C y s' s cn m C , w '• m m F O e r c2 � 7 � m H k CD co --i z C/): a r C, C, 21 W. (D < ( D 0 o. (D cx 'Ali CD CD Kty CL 0 3 ;D X 10 C, :5 . 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Fr 0 m ID C- ;2 n "' CD g C'r 0 --1 0 10 :' ZD' W K. 13 =b ID C) wo C7 0 1� . 0 or (D (D m Z1 a C* 0 0 0 CP t O W tJl O Co CD J ID ZT 40 V) CD Cb :3 O 0 CL a) 'A. co CD Ng 9t a) co Fr a 54 I:r .on ID =tt CD N 0 a (D a y; 0 n 49 C, CONDITION OF LCCAT10N: nbO UN1Ta_T SPACE SaFT. PAST USE: RE7a sL jREYMt, NAM BALON, R - AUAAN7. OFFICE) Prepared by: t R: � ..:x i REUSE DEMO PLOORINO: E2E CE HVAC UNITS'. TAE ELECTWO SERV� NESTFOOM NEATER CARPET VMTF.R METER SPRINXLEO „_ � NO VINYL TILE CERAM TILE WOOD —`-'- E}rl y7I. Ark; yt� RACK REUSE OEMO [•LEG. CGLwcx CEILING GRID zX +TILE O OM ,�o1Rrl� 2xl Tx.E DRYWALL \ ' `"q.. Il"AFIyPGA') EXPO Bm DECK K � j'C%7 L 13&44, h • J REUSE DEMO CI / •��- ;`r-y� L . _ LIGHITa: _7_ �•!...1 ' STRIP SPOTS EJNn {g1•• }''� WCY'K- clre•a REUSE DEMO . FLOORING: �. CARPET _ Vam TILE CLAM011C TILE WOOD O . REUSE D EAAO - y C C[W16 GRID CEILING � • IXA 7 LE Yx2 TI LE DRYWALL EXPOSED DECK REUSE OEAW LKN79: J TZP Bx4 STRIP SPOTS REUSE DEMO . . . . . CAR TILE CERAMIC TILE wood . REUSE DEMO E TILE 2XZ nLE [EXPOSED DRYWALL . DECK Ct as s rcwwV� REUSE ndAO . LWR7l: . . . 7X4 S7RIP . . . . . . . . . . SPOTS TroDt� SCALE= PICTURES: FRONT MCLUDEON DRAWING: FABOtA DSRABIN6 NNttS BACK WALL STOCKROOM WALL RIGHT WALT. RESTROOMS LEFT WALL LOCATION OF KVAC UNITS CEILING REAR DOOR RESTROOM FRONT DOOR ANY OTHER INTERIOR WALLS COMMENTS: