EXHIBIT 10.5
COMMERCIAL LEASE
THIS LEASE is made between X.X. Xxxxxxxx & Son Co.
of 0000 Xxxxxxxxxx Xxxxx Xxxxxxxxxx, XX 00000
herein called Lessor, and Home Interiors & Gifts, Inc.
of 0000 Xxxxxxxxx Xxxx Xxxx Xxxxxxxxxx, XX 00000
herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the City of
Carrollton, County of Dallas, State of Texas,
described as
0000 Xxxxxxx
Xxxxxxxxxx, XX 00000
upon the following TERMS and CONDITIONS:
1) TERM AND RENT. Lessor demises the above premises on a month-to-month
basis commencing August 15, 2002 and terminating at Lessee's
discretion as set out below at the rental of Seventeen thousand four
hundred dollars ($17,400.00) per month payable in advance on the
first day of each month for that month's rental, during the term of
this lease. All rental payments shall be made to Lessor, at the
address specified above.
2) USE. Lesee shall use and occupy the premises for warehouse space. The
premises shall be used for no other purpose. Lessor represents that
the premises may lawfully be used for such purpose.
3) CARE AND MAINTENANCE OF PREMISES. Lessee shall, at his own expense and
at all times, maintain the premises in as good condition as received,
normal wear and tear expected, including plate glass, and shall
surrender the same, at termination hereof, in as good condition as
received, normal wear and tear excepted. Lessee shall be responsible
for all repairs required, excepting the roof, exterior walls,
structural foundations, driveways, plumbing, electrical and HVAC
which shall be maintained by Lessor. Lessee shall also maintain in
good condition lawns and shrubbery, which would otherwise be required
to be maintained by Lessor.
4) ALTERATIONS. Lessee shall not, without first obtaining the written
consent of Lessor, make any alterations additions, or improvements,
in, to or about the premises.
5) ORDINANCES AND STATUTES. Lessee shall comply with all statutes,
ordinances and requirements of all municipal, state and federal
authorities now in force, or which may hereafter be in force,
pertaining to the premises, occasioned by or affecting the use thereof
by Lessee.
6) ASSIGNMENT AND SUBLETTING. Lessee shall not assign this lease or
sublet any portion of the premises without prior written consent of
the Lessor, which shall not be unreasonably withheld. Any such
assignment or subletting without consent shall be void and, at the
option of the Lessor, may terminate this lease.
7) UTILITIES. All applications and connections for necessary utility
services on the demised premises shall be made in the name
of Lessee only, and Lessee shall be solely liable for utility charges
as they become due, including those for sewer, water, gas,
electricity, and telephone services.
8) ENTRY AND INSPECTION. Lessee shall permit Lessor or Lessor's agents to
enter upon the premises at reasonable times and upon reasonable
notice, for the purpose of inspecting the same, and will permit
Lessor at any time within thirty (30) days prior to the expiration of
this lease, to place upon the promises any usual "To Let" or "For
Lease" signs, and permit persons desiring to lease the same to
inspect the premises thereafter.
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9) POSSESSION. If Lessor is unable to deliver possession of the premises
at the commencement hereof, Lessor shall not be liable for any damage
caused thereby, nor shall this lease be void or voidable, but Lessee
shall not be liable for any rent until possession is delivered. Lessee
may terminate this lease if possession is not delivered within 3 days
of the commencement of the term hereof.
10) INDEMNIFICATION OF LESSOR. Lessor shall not be liable for any damage
or injury to Lessee, or any other person or to any property,
occurring on the demised premises or any part thereof, unless caused
by the negligence or intentional misconduct of Lessor or the
violation by Lessor of any provision of this Lease.
11) INSURANCE. Lessee, at his expense, shall maintain plate glass and
public liability insurance including bodily injury and property
damage insuring Lessee and Lessor with minimum coverage as follows:
Lessee shall provide Lessor with a Certificate of Insurance showing
Lessor as additional insured. To the maximum extent permitted by
insurance policies which may be owned by Lessor or Lessee, Lessee
and Lessor, for the benefit of each other, waive any and all rights
of subrogation which might otherwise exist.
12) EMINENT DOMAIN. If the premises or any part thereof or any estate
therein, or any other part of the building materially
affecting Lessee's use of the premises, shall be taken by eminent
domain, this lease shall terminate on the date when title vests
pursuant to such taking. The rent, and any additional rent, shall be
apportioned as of the termination date, and any rent paid for any
period beyond that date shall be repaid to Lessee. Lessee shall not
be entitled to any part of the award for such taking or any payment
in lieu thereof, but Lessee may file a claim for any taking of
fixtures and improvements owned by Lessee, and for moving expenses.
13) DESTRUCTION OF PREMISES. In the event of a partial destruction of the
premises during the term hereof, from any cause, Lessor shall
forthwith repair the same, provided that such repairs can be made
within thirty (30) days under existing governmental laws and
regulations, but such destruction shall not terminate this lease,
except that Lessee shall be entitled to a proportionate reduction of
rent while such repairs are being made, based upon the extent to
which the making of such repairs shall interfere with the business of
Lessee on the premises. If such repairs cannot be made within said
thirty (30) days, Lessee may, at his option, terminate this lease. In
the event that the building in which the demised premises may be
situated is destroyed to an extent of not less than one-third of the
replacement costs thereof, Lessor may elect to terminate this lease
whether the demised premises be injured or not. A total destruction
of the building in which the premises may be situated shall terminate
this lease.
14) LESSOR'S REMEDIES ON DEFAULT. If Lessee defaults in the payment of
rent, or any additional rent, or defaults in the performance of any
of the other covenants or conditions hereof, Lessor may give Lessee
notice of such default and if Lessee does not cure any such default
within ten (10) days, after the giving of such notice (or is such
other default is of such nature that it cannot be completely cured
within such period, if Lessee does not commence such curing within
such ten (10) days and thereafter proceed with reasonable diligence
and in good faith to cure such default), then Lessor may terminate
this lease on not less than thirty (30) days' notice to Lessee. On
the date specified in such notice the term of this lease shall
terminate, and Lessee shall then quit and surrender the premises to
Lessor, without extinguishing Lessee's liability. If this lease shall
have been so terminated by Lessor, Lessor may at any time thereafter
resume possession of the premises by any lawful means and remove
Lessee or occupants and their effects. No failure to enforce any term
shall be deemed a waiver.
15) SECURITY DEPOSIT. Lessee shall deposit with Lessor on the signing of
this lease the sum of zero ($0.00) dollars as security for the
performance of Lessee's obligations under this lease, including
without limitation the surrender of possession of the premises to
Lessor as herein provided. If Lessor applies any part of the deposit
to cure any default of Lessee, Lessee shall on demand deposit with
Lessor the amount so applied so that Lessor shall have the full
deposit on hand at all times during the term of this lease.
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16) COMMON AREA EXPENSES. In the event the demised premises are situated
in a shopping center or in a commercial building in which there are
common areas, lessee agrees to pay his pro-rata share of maintenance
for the common area.
17) ATTORNEY'S FEES. In case suit should be brought for recovery of the
premises, or for any sum due hereunder, or because of any act which
may arise out of the possession of the premises, by either party, the
prevailing party shall be entitled to all costs incurred in
connection with such action, including a reasonable attorney's fee.
18) WAIVER. No failure of Lessor to enforce any term hereof shall be
deemed to be a waiver.
19) NOTICES. Any notice which either party may or is required to give,
shall be given by mailing the same, postage prepaid, to Lessee or
Lessor, each at the address specified above, or at such other places
as may be designated by the parties from time to time.
20) HEIRS, ASSIGNS, SUCCESSORS. This lease is binding upon and inures to
the benefit of the heirs, assigns, and successors in interest to the
parties.
21) MONTH-TO-MONTH TERM. Lessee may terminate this lease by giving Lessor
thirty (30) days written notice of its intention to vacate the
premises.
22) SUBORDINATION. This lease is and shall be subordinated to all existing
and future liens and encumbrances against the premises and on any
personal property of Lessee situated on the premises.
23) RADON GAS DISCLOSURE. As required by law, (Landlord) makes the
following disclosure: "Radon Gas" is a naturally occurring
radioactive gas that, when it has accumulated in a building in
sufficient quantities, may present health risks to persons who are
exposed to it over time. Additional information regarding radon and
radon testing may be obtained from your county public health unit.
24) ENTIRE AGREEMENT. The foregoing constitutes the entire agreement
between the parties and may be modified only by a writing signed by
both parties. The following Exhibits, if any, have been made a part of
this lease before the parties' execution hereof:
SIGNED TO BE EFFECTIVE THE 15TH DAY OF AUGUST, 2002
X.X. XXXXXXXX & SON CO. HOME INTERIORS & GIFTS, INC.
By: /s/ X. X. Xxxxxxxx, Xx. Lessor By: /s/ Xxxxxx X. Xxxxxxxx Lessee
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Its: Owner/President Its: Vice President - Supply Chain
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