SUBLEASE
This Sublease is made the date executed herein below, between
Chadrach, Inc. d/b/a Dallas Moving Systems ("Lessee") and
BeautiControl Cosmetics, Inc. ("Sublessee").
RECITALS
1. Lessee has leased approximately 42,760 square feet of
warehouse and office space at the property commonly known as 1815-
2015 Surveyor, Carrollton, Texas (the "Building" or the "Premises")
from Crow Carrara No. 2 ("Lessor"), under that certain lease dated
June 7, 1991 and subsequently amended on October 6, 1992 and further
amended on November 20, 1995 ("Underlying Lease") attached hereto as
Exhibit A and incorporated herein by this reference.
2. Sublessee desires to sublet from Lessee and Lessee desires
to sublet to Sublessee the Premises known as 0000 Xxxxxxxx,
Xxxxxxxxxx, Xxxxx (the "Sublease Premises") containing approximately
21,345 square feet pursuant to the terms and conditions contained in
this sublease agreement ("Sublease").
In consideration of the mutual covenants, conditions and
agreements contained herein, the parties agree as follows:
SECTION ONE
DESCRIPTION OF PREMISES
Lessee shall demise to Sublessee the Sublease Premises as
described in Paragraph 2 above.
SECTION TWO
PURPOSE OF SUBLEASE
The Sublease Premises demised under this Sublease are to be
used by Sublessee for warehouse and office purposes for the conduct
of Sublessee's business and all uses reasonably related thereto.
SECTION THREE
TERM OF SUBLEASE
The term of this Sublease shall commence on the earlier of
occupancy or August 15, 1997 (the "Commencement Date") and shall end
on the last day of December 1998
SECTION FOUR
RENT
Notwithstanding the language in Paragraph 2.A of the Underlying
Lease, Sublessee shall pay to Lessee in equal monthly installments
base monthly rent during the term of this Sublease in advance as
follows:
Months Base Rent
1 $2,295.16
2 - 7 $4,446.88 per month
Additionally, Sublessee shall be responsible for payment of its
proportionate share of the expenses due per Paragraph 2.C of the
Underlying Lease. The amount of the initial monthly escrow payments
are as follows:
Tax Escrow Payment $1,020.83
Insurance Escrow Payment $ 63.90
Common Area Charge
(landscaping, common area water $ 366.90
&electric & building maintenance)
Initial Monthly Payment Total $5,898.51
Payments shall be made on the first day of each and every
month, at the Lessee's office, 0000 Xxxxxxxx, Xxxxxxxxxx, Xxxxx, or
at such other place as Lessee may designate in writing.
SECTION FIVE
SERVICES AND UTILITIES
Subject to the provisions of the Underlying Lease, Lessee shall
furnish utility services to Sublessee. Any other utilities required
by Sublessee in the Sublease Premises not provided in the Underlying
Lease and all telephone services shall be obtained by and at the
expense of Sublessee.Sublessee shall pay for all utility services
provided to the Sublease Premises.
SECTION SIX
CASUALTY DAMAGE OR INJURY
If the Sublease Premises shall be destroyed or damaged by any
acts of war, the elements, including earthquake, or fire, to such
extent as to render the Sublease Premises untenantable in whole or in
substantial part, the Lessee or Sublessee shall have the right to
declare this Sublease terminated.
SECTION SEVEN
COMPLIANCE WITH UNDERLYING LEASE AND LAWS
Sublessee shall not cause or allow any undue waste on the
Sublease Premises and shall comply with all applicable laws and
ordinances respecting the use and occupancy of the Sublease Premises
relating to matters not covered elsewhere in this Sublease, provided
that Sublessee shall not be required to make any alterations,
additions, or improvements to the Sublease Premises in order to
conform with this Sublease.
This Sublease and Sublessee's rights under this Sublease shall
at all times be subject and subordinate to the Underlying Lease
identified in Paragraph 1 hereof and Sublessee shall perform all
obligations of Lessee under said Lease, and otherwise abide by all of
the terms of said Lease, with respect to the Sublease Premises.
Sublessee acknowledges that any termination of the Underlying Lease
shall extinguish this Sublease. Lessor's consent to this Sublease
shall not make Lessor a party to this Sublease, shall not create any
privity of contract between Lessor and Sublessee or other contractual
liability or duty on the part of Lessor to the Sublessee, shall not
constitute Lessor's consent or waiver of consent to any subsequent
sublease or sub-sublease, and shall not in any manner increase,
decrease or otherwise affect the rights and obligations of Lessor and
Lessee under the Underlying Lease, in respect of the Sublease
Premises.
SECTION EIGHT
REPAIRS
Subject to the obligations of Lessor, if any, in the Underlying
Lease, Sublessee shall maintain the Sublease Premises in good repair
and tenantable condition during the continuance of this Sublease.
SECTION NINE
ALTERATIONS, ADDITIONS, OR IMPROVEMENTS
Sublessee shall not make any alterations, additions, or
improvements on or to the Sublease Premises without first obtaining
the written consent of Lessor, and all alterations, additions, and
improvements that shall be made shall be at the sole expense of
Sublessee. Lessee shall close off the demising wall or any other
points of egress and/or ingress between 1815 and 2015 Surveyor.
SECTION TEN
LIENS
Sublessee shall keep the Sublease Premises free and clear of
all liens arising out of any work performed, materials furnished, or
obligations incurred by Sublessee.
SECTION ELEVEN
SALES, ASSIGNMENTS, AND SUBLEASES
Sublessee shall not assign this Sublease, or sublet or
otherwise encumber the Sublease Premises, or any part thereof or
interest therein, without the prior written consent of Lessee and
Lessor.
SECTION TWELVE
QUIET ENJOYMENT
Subject to the terms of this Sublease, and subject to the
Lessor's consent to this Sublease, if Sublessee performs the terms of
this Sublease, Lessee will warrant and defend Sublessee in the
enjoyment and peaceful possession of the Sublease Premises during the
term hereof without any interruption by Lessee or any person
rightfully claiming under Lessee.
SECTION THIRTEEN
DEFAULT BY LESSEE
If either party fails or neglects to perform the Sublease or
the provisions of the Underlying Lease, then the other party may
terminate this Sublease. The Lessee and Sublessee agree to provide
Lessor copies of all default notices issued by either party to the
other party under this Sublease.
SECTION FOURTEEN
WAIVER OF BREACH
The waiving of any of the provisions of this Sublease by any
party shall be limited to the particular instance involved and shall
not be deemed to waive any other rights in the same or any other
terms of this Sublease.
SECTION FIFTEEN
TERMINATION AND SURRENDER
Sublessee shall surrender possession of the Sublease Premises
on the last day of the term of the Sublease.
SECTION SIXTEEN
REMOVAL OF PERSONAL PROPERTY
Sublessee shall have the right to remove all personal property,
trade fixtures, and office equipment, whether attached to the
Sublease Premises or not, provided that these items can be removed
without serious damage to the Sublease Premises. All holes or damages
to the Sublease Premises caused by removal of any items shall be
promptly restored or repaired by Sublessee. Sublessee shall be
entitled to remove any electrical service connections installed by
Sublessee that were designed specifically for Sublessee.
SECTION SEVENTEEN
INTEREST OF SUCCESSORS
The covenants and agreements of this Sublease shall be binding
on the successors and assigns of Lessee and on the successors and
assigns of Sublessee but only to the extent herein specified.
SECTION EIGHTEEN
NOTICES
Except where otherwise required by statute, all notices given
pursuant to the provisions hereof may be sent by first class or
certified mail, postage prepaid, for Lessee to Dallas Moving
Systems/Wheaton Van Lines, Inc., Attn: Xx. Xxxxx Xxxxxxx, 0000
Xxxxxxxx, Xxxxxxxxxx, Xxxxx and for Sublessee to BeautiControl
Cosmetics, Inc., Attn: Xx. Xxx Xxxxx, 0000 Xxxxxxxxx, Xxxxx 000,
Xxxxxxxxxx, Xxxxx or the last know mailing address of the party for
whom the notice is intended.
SECTION NINETEEN
COSTS OF LITIGATION
If any legal action is instituted to enforce this Sublease, or
any part hereof, the prevailing party shall be entitled to recover
reasonable attorney's fees and court costs from the other party.
LESSEE: Chadrach Inc. d/b/a SUB LESSEE:
DALLAS Moving Systems BEAUTICONTROL COSMETICS, INC
By: /s/ By: /s/
Its: President Its: C.O.O
Date: 6-12-97 Date: 5/30/97
July 14,1997
0000 Xxxx
Xxxxx Commerce Tower
0000 Xxxx Xxxxxx, XX-000
Xxxxxx, Xxxxx 00000
(000) 000-0000
Fax (000) 000-0000
Xx. Xxx Xxxxx
BeautiControl Cosmetics, Inc.
0000 Xxxxxxxxx
Xxxxx 000
Xxxxxxxxxx, XX 00000
Re:1815 Surveyor Road
Carrollton, TX
Dear Xx. Xxxxx:
Please accept.this letter as the Landlord's acknowledgment that upon
the expiration of the sublease between Chadrach, Inc. and
BeautiControl Cosmetics, Inc. for the approximately 21,345 square
foot facility at 0000 Xxxxxxxx Xxxx, Xxxxxxxx grants BeautiControl
Cosmetics, Inc. an option to lease the reference space for nine (9)
months
In the event BeautiControl Cosmetics, Inc. desires to exercise said
option, BeautiControl Cosmetics, Inc. must provide Landlord with
written notice of its intent to exercise the option six (6) months
prior to the expiration of the Sublease. The rental during the nine
(9) month option term shall be at the fair market rental then in
effect on equivalent properties, of equivalent size and a new lease
agreement must be agreed to directly between the Landlord and
BeautiControl Cosmetics, Inc.
In the event BeautiControl Cosmetics, Inc. fails to deliver such
written notice within the time period set forth above, BeautiControl
Cosmetics, Inc.'s right to exercise the option hereof shall expire
and be of no further force and effect. In the event Landlord and
BeautiControl Cosmetics, Inc. fail to agree to in writing upon the
fair market value and the form of the lease agreement within fifteen
(15) days after exercise by BeautiControl Cosmetics, Inc. of this
lease option, then BeautiControl Cosmetics, Inc.'s right hereunder
to exercise the option shall become null and void.
If you are in agreement, please sign below and return to my
attention.
Sincerely,
Crow Carrara No. 2 Agreed and Accepted:
By: BCO Dallas Industrial,
LTD., General Partner
/s/ Xxxxxxx X. Xxxxxx /s/ Xxxxxx Xxxxx
Xxxxxxx X. Xxxxxx Xx. Xxx Xxxxx
Vice President of 12BCO, Inc., Senior Vice President - Distribution
General Partner of SCO BeautiControl Cosmetics, Inc
Dallas Industrial, LTD
CONSENT OF LESSOR
TO SUBLEASE OF LEASE
RECITALS:
X. XXXX-XXXXXXX NO. 2, (hereinafter referred to as "Lessor")
entered into that certain lease (the "Lease") dated June 7, 1991 and
subsequently amended on October 6, 1992 and further amended on
November 20, 1995, with Chadrach, Inc. d/b/a Dallas Moving Systems
(hereinafter referred to as "Lessee").
B. Lessee desires to sublease a portion of its interest as
Lessee in and to the Lease to BeautiControl Cosmetics, lnc. in its
corporate capacity (hereinafter referred to as "Sublessee").
C. Pursuant to the provisions of the Lease, Lessee has
requested that the Lessor consent to the sublease of approximately
21,345 square feet known as 0000 Xxxxxxxx, Xxxxxxxxxx, Xxxxx, to
Sublessee.
CONSENT:
Lessor consents to the sublease of the Lease to Sublessee on
the express conditions that (1) Lessee shall remain fully and
completely liable for all of the obligations under the Lease, (2)
this consent will not be deemed to be a consent to any subsequent
assignment or sublease and that no further assignment or subletting
of all or any portion of the premises subject to the Lease will be
made without the prior written consent of the Lessor, (3) any rights
or remedies of Sublessee, if any, will be solely against Lessee and
neither sublease of the Lease or this consent will give any rights
under the Lease; (4) if the Lease is terminated, in addition to all
other rights and remedies of Lessor, the sublease of the Lease shall
be automatically terminated, (5) no modification or amendment of the
sublease of the Lease will be made without prior written consent of
Lessor and (6) if any conflict between the Lease and sublease exists,
the Lease will control.
Lessor consents to Sublessee installing and removing air-
conditioning units to the Sublease Premises upon the submittal of
acceptable plans and specifications by the Sublessee to the Lessor.
All costs and expense associated with the installation and removal of
the air-conditioning units shall be at the sole cost and expense of
the Sublessee. The construction, erection, installation and removal
thereof shall comply with all applicable governmental laws,
ordinances, regulations and with Lessor's specifications and
requirements. All installation and restoration shall be performed in
a good and workmanlike manner so as not to damage or alter the
structure or structural qualities of the building and other
improvements situated on the Sublease Premises or which the Sublease
Premises are a part.
APPROVED:
XXXX-XXXXXXX NO.2
By: BCO Dallas Industrial, Ltd. General Partner
By: /s/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Vice President of 12 BCO, Inc.
Title: General Partner of BCO Dallas Industrial Ltd.
