Exhibit 10.22
TEXAS ASSOCIATION OF REALTORS
COMMERCIAL LEASE
This lease agreement is made and entered into by and between ED & XXXXX
XXXXXXXXXXXX (Landlord) and XXXX XXXXXXX XXXXXX (Tenant). Landlord hereby leases
to Tenant and Tenant hereby leases from Landlord that certain property with the
improvements thereon, containing approximately 3192 square feet hereinafter
called the "leased premises", known as FAITH WALK DESIGNS (ODDS AND ENDS), INC.
10609 GRANT, (Address), Lot ______, Block _________, Addition, City of Houston,
Xxxxxx County, Texas; or as more particularly described below or on attached
exhibit:
The primary term of this lease shall September commencing on the 1st
day of September, 1997, and ending at 11:59 p.m. on the 31st, day of September,
2002, upon the following terms, conditions, and covenants:
$5,000 build-out and ground landscape and maintenance ($500 less in
rent for 10 months).
1. TAXES. Each year during the term of this lease, Landlord shall pay real
estate taxes assessed against the leased premises in an amount equal to the
total real estate taxes assessed against the leased premises in the base year.
Each year during the term of this lease, Tenant shall pay as additional rental,
upon receipt of a statement from Landlord together with tax statements or other
verification from the proper taxing authority, his pro rata share of any
increase in real estate taxes over the but year on the property of which the
leased premises is a part. Any increase in real estate taxes for a fractional
year shall be prorated. The based year shall be 1996.
2. UTILITIES. Tenant shall pay all charges for utility service to the leased
premises except for water and dumpster which shall be paid by the Landlord,
billed quarterly to tenant for reimbursement.
3. HOLDING OVER. Failure of Tenant to surrender the leased premises at the
expiration of the lease constitutes a holding over which shall be construed as a
tenancy from month to month at a renal or $3,000 per month.
4. RENT. Tenant agrees to and shall pay Landlord at 9725 LOLLEDD, County of
XXXXXX, Texas, or at such other place Landlord shall designate from time to time
in writing, as rent for the leased premises, the total sum of $145,000 payable
without demand in equal monthly payments of $2,500, each in advance on or before
the 5th day of each month, commencing on September 1, 1997, and continuing
thereafter until the total sum shall be paid. Adjustment to the rent, if any,
for rent escalators, for percentage of net rent, or for increases in building
operation costs (including but not limited to insurance, custodial services,
maintenance and utilities) shall be us set forth in an attached addendum. Rent
received after the first day of the month shall be declined delinquent. If rent
is not received by Landlord by the 6th of each month, Tenant shall pay a late
charge of $50 plus a penalty of $10 per day until rent is received in full.
Tenant shall pay $50 for each returned check.
5. USE. Tenant shall use the leased premises for the following purpose and no
other: Furniture and gift shop.
6. SECURITY DEPOSIT. Tenant shall pay to Landlord a security deposit in the sum
of $2500*, payable on or before the commencement of this lease for Tenant's
faithful performance hereunder. Refund thereof shall be made upon performance of
this lease agreement by Tenant, minus any assessments or damages unless Landlord
and Tenant provide otherwise in Special Provisions. * $1000 already on deposit
from lease on Building E.
7. INSURANCE. Landlord shall pay for fire and extended coverage insurance on the
buildings and other improvements on the leased premises in an amount not less
than $100,000 which amount shall be increased yearly in proportion to the
increase in market value of the premises. If Landlord provides any insurance
herein, Tenant shall pay to Landlord, during the term hereof, the amount of any
increase in premiums for the insurance required over and above such premiums
paid during the first year of this lease. Tenant shall provide public liability
and property damage insurance for its business operations on the leased premises
in the amount of $_________ which policy shall cover the Landlord as well as the
Tenant. Said insurance policies required to be provided by Tenant herein shall
name Landlord as an insured and shall be issued by an insurance company approved
by Landlord. Tenant shall provide Landlord with certificates of insurance
evidencing the coverage required herein. Tenant shall be solely responsible for
fire and casualty insurance on Tenant's property on or about the leased
promises. If Tenant does not maintain such insurance in full force and effect,
Landlord may notify Tenant of such failure and if Tenant does not deliver to
Landlord within 30 days after such notice certification showing all such
insurance to be in full force and effect, Landlord may at his option, take out
the necessary insurance to comply with the provision hereof and pay the premiums
on the items specified in such notice, and Tenant covenants thereupon on demand
to reimburse and pay Landlord any amount as paid or expended in the payment of
the insurance premiums required hereby and specified in the notice, with
interest thereon at the rate of 18 percent per annum from the date of such
payment by Landlord until repaid by Tenant.
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8. CONDITION OF PREMISES. Tenant has examined and accepts the leased premises in
its present as is condition as suitable for the purposes for which same are
leased, and does hereby accept the leased premises regardless of reasonable
deterioration between the data of this lease and the date Tenant begins
occupying the leased premises unless Landlord and Tenant agree to repairs or
refurbishment as noted in Special Provisions.
9. MAINTENANCE AND REPAIRS. Landlord shall keep the foundation, the exterior
walls (except glass; windows; doors; door closure devices; window and door
frames, molding, locks, and hardware; and interior painting or other treatment
of exterior walls), and the roof of the leased premises in good repair except
that Landlord shall not be required to make any repairs occasioned by the act or
negligence of Tenant, its employees, subtenants, licensees and concessionaires.
Tenant responsible for maintenance of the common area and common area equipment.
If Landlord is responsible for any such repair and maintenance, Tenant agrees to
give Landlord written notice of needed repairs. Landlord shall make such repairs
within a reasonable time. Tenant shall certify landlord immediately of any
emergency repairs. Tenant shall keep the leased premises in good, clean
condition and shall at its sole cost and expense, make all needed repairs and
replacements, including replacement of cracked or broken glass, except glass
repairs and replacements required to be made by Landlord under this section. If
any repairs required to be made by Tenant hereunder are not made within ten (10)
days after written notice delivered to Tenant by Landlord. Landlord may at its
option make such repairs without liability to Tenant for any loss or damage
which may result by reason of such repairs, and Tenant shall pay to Landlord
upon demand as additional rent hereunder the cost of such repairs plus interest.
At the termination of this lease, Tenant shall deliver the leased premises in
good order and condition, normal wear and tear excepted. Normal wear and tear
means deterioration which occurs without negligence, carelessness, accident or
abuse.
10. ALTERATIONS. All alterations, additions and improvements, except trade
fixtures, installed at expense of Tenant, shall become the property of Landlord
and shall remain upon and be surrendered with the leased premises us a part
thereof on the termination of this lease. Such alterations, additions, and
improvements may only be made with the prior written consent of Landlord which
consent shall not be unreasonably withheld. If consent is granted for the making
of improvements or alterations to the leased premises, such improvements and
alterations shall not commence until Tenant has furnished to Landlord a
certificate of insurance showing coverage in an amount satisfactory to Landlord
protecting landlord from liability for injury to any person and damage to any
personal property, on or off leased premises, in connection with the making of
such improvements or alterations. No cooling tower, equipment or structure of
any kind shall be placed on the roof or elsewhere on the leased premises by
Tenant without prior written permission of Landlord. If such permission is
granted, such work or installation shall be done at Tenant's expense and in such
a manner that the roof shall not be damaged thereby. If it becomes necessary to
remove such cooling tower, equipment or structure temporarily, so that repairs
to the roof can be made, Tenant shall promptly remove and reinstall the cooling
tower, equipment or structure at Tenant's expense and repair at Tenant's expense
any damage resulting from such removal or reinstallation. Upon termination or
thus lease, Tenant shall remove or cause to be removed from the roof any such
cooling tower, equipment or structure if directed to do so by Landlord. Tenant
shall promptly repair at its expense any damages resulting from such removal. At
the termination of this lease, Tenant shall deliver the leased premises in good
order and condition, natural deterioration only excepted. Any damage caused by
the installation or removal of trade fixtures shall be repaired at Tenant's
expense prior to the expiration of the lease term. All alterations,
improvements, additions, and repairs made by Tenant shall be made in good and
workmanlike manner.
11. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall, at its own expense,
comply with all laws, orders, and requirements of all governmental entities with
reference to the use and occupancy of the leased promises. Tenant and Tenant's
agents, employees and invites shall fully comply with any rules and regulations
governing the use of the buildings or other improvements to the leased premises
as required by Landlord. Landlord may make reasonable changes is such rules and
regulations from time to time as deemed advisable for the safety, care and
cleanliness of the leased premises, provided same are in writing and are not in
conflict with this lease.
12. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this lease nor sublet
this lease premises or any interest therein without first obtaining the written
consent of the Landlord assignment or subletting without the written consent of
Landlord shall be void and shall, at the option of Landlord, terminate this
lease.
13. DESTRUCTION. In the event the leased premises is partially damaged or
destroyed or rendered partially with for occupancy by fire or other casualty,
Tenant shall give immediate notice to Landlord. Landlord may repair the damage
and restore the leased premises to substantially the same condition as
immediately prior in the occurrence of the casualty. Such repairs shall be made
at Landlord's expense unless due to Tenant's negligence. Landlord shall allow
Tenant a fair reduction of rent during the time the leased premises are
partially unfit for occupancy. If the leased premises are totally destroyed or
deemed by the Landlord in be rendered unfit for occupancy by fire or other
casualty, of if Landlord shall decide not to repair or rebuild, this lease shall
terminate and the rent shall be paid to the time of such casualty.
14. TENANT DEFAULT AND REMOVAL OF ABANDONED PROPERTY. If Tenant abandons the
premises or otherwise defaults in the performance of any obligations or
convenants herein. Landlord may enforce on performance of this lease in any
manner provided by law. This lease may be terminated as Landlord's discretion if
such abandonment or default continues for a period of 10 days after Landlord
notifies Tenant of each abandonment or default and of Landlord intention to
declare this lease terminated. Such notice shall be sent by Landlord to Tenant
at Tenant's last known address by certified mail, if Tenant has not completely
removed or cured default within the 10-day period, this lease shall terminate.
Thereafter, Landlord or its agents shall have the right, without further notice
or demand, to enter the leased premises and remove all property without being
deemed guilty of trespass and without waiving any other remedies for arrears of
rent or breach of covenant. Upon abandonment or default by the Tenant, the
remaining unpaid portion of the rental from paragraph 4 herein, shall become due
and payable. For purposes of this section, Tenant is presumed to have abandoned
the premises if goods, equipment, or other property, in an amount substantial
enough to indicate a probable
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intent to abandon the premises, is being or has been removed from the premises
and the removal is not within the normal course of Tenant's business, Landlord
shall have the right to store any property of Tenant that remains on premises
that are abandoned; and, in addition to Landlord's other rights, Landlord may
dispose of the stored property if Tenant does not claim the property within 60
days after the date the property is stored, provided Landlord delivers by
certified mail to Tenant at Tenant's last known address a notice stating that
Landlord may dispose of Tenant's property if Tenant does not claim the properly
within 60 days after the date the property is stared.
15. INTERRUPTION OF UTILITIES. Landlord or Landlord's agent may not interrupt or
cause the interruption of utility service paid directly to the utility company
by Tenant unless interruption results from bona fide repairs, construction, or
an emergency. If say utility services furnished by Landlord are interrupted and
continue to be interrupted despite the good faith efforts of Landlord to remedy
same, Landlord shall not be liable in any respect for damages to the person or
property of Tenant or Tenant's employees, agents, or guests, and same shall not
be construed as grounds for constructive eviction or abatement of rent. Landlord
shall use reasonable diligence to repair and remedy such interruption promptly.
16. EXCLUSION OF TENANT. Landlord may not intentionally prevent Tenant from
entering the leased premises except by judicial process unless the exclusion
results from (a) bona fide repairs, construction, or an emergency; (b) removing
the contents of premises abandoned by Tenant or (c) changing the door locks of
Tenant in the event Tenants is delinquent in paying at least part of the rent.
If Landlord or Landlord's agent changes the door look Tenant, in the event
Tenant is delinquent in paying rent, Landlord of Landlord agent must place a
written notice on Tenant's front door stating the name and the address or
telephone number of the individual or company from which the new key may be
obtained. The new key is required to be provided only during Tenant's regular
business hours.
17. LIEN. Landlord is granted an express contractual lien, in addition to any
lien provided by law, and a security interest in all property of Tenant found on
the leased premises to secure the compliance by Tenant with all terms of this
lease.
18. SUBORDINATION. Landlord is hereby irrevocably vested with full power and
authority to subordinate this lease to any mortgage, deed of trust, or other
lien hereafter placed on the demised premises and Tenant agrees on demand to
execute such further instruments subordinating this lease of Landlord may
request, provided such subordination shall be on the express condition that this
lease shall be recognized by the mortgages, and the rights of Tenant shall
remain in full force and effect during the term of this lease so long as Tenant
shall continue to perform all of the covenants and conditions of this lease.
19. INDEMNITY. Landlord and its employees and agents shall not be liable in
Tenant or to Tenant employees, patrons, visitors, invitees, or any other persons
for my such injury to any such persons or for damage to personal property caused
by an act, omission, or neglect of Tenant or Tenant's agents or of any other
tenant of the premises of which the leased premises is a part. Tenant agrees to
indemnity and hold Landlord and its employees and agents harmless from any and
all claims for such injury and damages whether the injury occurs on or off the
leased premises.
20. SIGNS. Tenant shall not post or paint any signs at, on, or about the leased
premises or paint the exterior walls of the building except with the prior
written consent of the Landlord. Landlord shall have the right to remove any
sign or signs its under to maintain the leased promises or to make any repairs
or alterations thereto.
21. TENANT BANKRUPTCY. If Tenant becomes bankrupt or makes voluntary assignment
for the benefit of creditors or if a receiver is appointed for Tenant, Landlord
may terminate this lease by giving five (5) days written notice to Tenant of
Landlord's intention to do so.
22. CONDEMNATION. If the whole or any substantial part of the leased premises is
taken for any public or quasi-public use under any governmental law, ordinance
or regulation or by right of eminant domain or should the leased premises be
sold to a condemning authority, under threat of condemnation, this lease shall
terminate and the rent shall be abated during the unexpired portion of the lease
effective from the date of the physical taking of the leased premises.
23. HAZARDOUS MATERIALS. Landlord warrants and represents that the Property does
not contain "Hazardous Materials", as that phrase is defined herein. For
purposes of this provision, the phrase "Hazardous Materials" shall mean and
include any toxic contaminated or other hazardous materials including, without
limitations asbestos, PCB, transformers, underground storage containers.
materials containing any radioactive substances, petroleum base products,
paints, solvents, lead, cyanide, DDT, acids, pesticides, ammonium compounds, and
any other substance forming a component part of the improvements which has
heretofore or may in the fixture be determined to contain toxic wastes,
hazardous materials, or undesirable substances injurious to the health of
occupants living or working in or around the subject property. Landlord
acknowledges that current and future federal, state, and local laws and
regulations may require the clean up of any such Hazardous Materials at the
expense of those persons who in the past, present, or future may have had or
continue to have any interest in the Property including, but not limited to,
current, past, and future owners and users, including tenants, of the Property.
The cost and expense of such clean up may be substantial. Landlord further
acknowledges that the real estate Brokers and their agents involved in the
negotiation of this transaction have no expertise with respect to any such
Hazardous Materials. Landlord acknowledges and agrees that Landlord shall look
solely to experts and professionals selected by landlord to advise Landlord with
respect to the condition of the Property and shall not hold the real estate
Brokers or their agents responsible for any Hazardous Material condition or
problem relating to the Property. Landlord hereby agrees to indemnify, defend,
and hold the real estate Brokers and their agents participating in this
transaction harmless or and from any and all liability, claim, debt, damage,
cost, or expense, including reasonable attorney's fees, related to or arising
out of or in any way connected to Hazardous Materials and/or toxic wastes and/or
any other undesirable substances affecting the Property.
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24. OMITTED.
25. NOTICES. Notices to Tenant shall be by certified mail or other delivery to
the leased premises or to Tenant's last known address. Notices to Landlord shall
be by certified mail to the place where rent is payable.
26. DEFAULT BY LANDLORD. In the event of breach by landlord of any covenant,
warranty, term or obligation of this lease, then Landlord's failure to cure same
or commence a good faith effort to cure same within 10 days after written notice
thereof by Tenant shall be considered a default and shall entitle Tenant either
to terminate, this lease or cure the default and make the necessary repairs and
any expense incurred by Tenant shall be reimbursed by the Landlord after
reasonable notice of the repairs and expenses incurred.
27. SIGNS. During the last 30 days of this lease, a "For Sale" sign and/or a
"For Lease" sign may be displayed on the leased premises and the leased promises
may be shown at reasonable times to prospective purchasers or tenants.
28. RIGHT OF ENTRY. Landlord shall have the right during normal business hours
to enter the demised premises; (a) to inspect the general condition and state of
repair thereof, (b) to make repairs required or permitted under this lease, or
(c) for any other reasonable purpose.
29. WAIVER OF BREACH. The waiver by landlord of any breach of any provision of
this lease shall not constitute a continuing waiver or a waiver of any
subsequent breach of the same or a different provision of this lease.
30. TIME OF ESSENCE. Time is expressly declared to be of the essence in this
lease.
31. BINDING OF HEIRS AND ASSIGNS. Subject to the provisions of this lease
pertaining to assignment of the Tenant's interest, all provisions of this lease
shall extend to and bind, or inure to the benefit not only of the parties to
this lease but to each and every one of the heirs, executors, representatives,
successors, and assigns of Landlord or Tenant.
32. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this lease
agreement are cumulative and the use of any one right or remedy by either party
shall not preclude or waive its right to use any or all other remedies. Said
rights and remedies are given in addition to any other rights the parties may
have by law, statute, ordinance, of otherwise.
33. TEXAS LAW TO APPLY. This agreement shall be construed under and in
accordance with the laws of the State of Texas.
34. LEGAL CONSTRUCTION. In case any one or more of the provisions contained in
this agreement shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision hereof and this agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been
contained herein.
35. PRIOR AGREEMENTS SUPERCEDED. This agreement constitutes the sole and only
agreement of the parties to this lease and supercedes any prior understandings
or written or oral agreements between the parties respecting the subject matter
of this lease.
36. AMENDMENT. No amendment, modification, or alteration of the terms hereof
shall be binding unless it is in writing, dated subsequent to the date hereof,
and duly executed by the parties.
37. ATTORNEYS' FEES. Any signatory to this lease agreement who is the prevailing
party in any legal proceeding against any other signatory brought under or with
relation to this lease agreement or this transaction shall be additionally
entitled to recover court costs, reasonable attorney fees, and all other
out-of-pocket costs of litigation, including deposition, travel and witness
costs, from the nonprevailing party.
38. SPECIAL PROVISIONS. (This section to include additional factual data not
included above.)
Tenant may 1) paint exterior of bldg.
2) landscape front of bldg toward
street, including irrigation system
3) embellish Cypress Creek Village sign
with floral design
4) remodel interior w/ paint, expand
passage to back show room, remove
shelving.
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THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY. IF YOU DO NOT UNDERSTAND
THE EFFECT OF ANY PART OF THIS AGREEMENT, SEEK COMPETENT LEGAL ADVICE.
EXECUTED this 11th day of August, 1997
/s/ Xxxx Xxxxxxx Xxxxxx /s/ Xxxxx X. Xxxxxxxxxxxx
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TENANT OR TENANTS SIGNATURE(S) LANDLORD SIGNATURE
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ADDRESS ADDRRSS
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TELEPHONE TELEPHONE
[NOTE: This form is furnished by the Texas Association of REALTORS for the
convenience of its members.]
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Cypress Creek Village
00000 Xxxxx Xxxx, Xxxx. X
Xxxxxxx, XX 00000
281/469-6395
July 5, 2001
Xxxx Xxxxxx
Odds & Ends
00000 Xxxxx Xxxx
Xxxxxxx, XX 00000
ADDENDUM TO LEASE
The lease agreement made between Ed and Xxxxx Xxxxxxxxxxxx with Xxxx Xxxxxxx
Xxxxxx which is scheduled to terminate on the 31st day of September, 2002 may be
modified in accordance with the new partnership between Faith Walk Designs and
DeCorize, Inc. As Landlord, I hereby offer written permission for the lease to
continue as agreed upon on the 11th day of August, 1997. Permission is granted
to change the signage to reflect any name change in accordance with the merger
between Faith Walk and DeCorize, Inc.
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Xxxx Xxxxxxx Xxxxxx
Faith Walk Designs
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Representative of DeCorize, Inc.
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Xxxxxx X. Xxxxxxxxxxxx, Landlord Xxxxx Xxxxxxxxxxxx, Landlord
