Exhibit 10.17
TRIPLE NET LEASE AGREEMENT
THIS LEASE is made and entered into this 1st day of June by and between Xxxxxx
X. Xxxxx and Xxxxxxxxx X. Xxxxx. whose address is 000 X. 0xx Xxxxxx, #0,
Xxxxxxx, XX. 00000 (hereinafter Lessor) and NGE Leasing Inc., a wholly owned
subsidiary of Natural Gas Services Group, Inc. whose address is 0000 X. Xxxxxx
Xxxx 0000, Xxxxxxx, XX. 00000 (hereinafter Lessee).
WITNESSETH:
The Lessor has agreed to let and hereby does let and demise to the Lessee, and
the Lessee has agreed to take, and hereby does take from the Lessor, the
following property:
Approximately two (2) acres with a 4,000 square foot building, said property is
located at 0000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxxx, XX. 00000 and which is
designated as follows:
1. TERM AND RENTAL.
The lease term is from June 1, 2003 through May 31, 2008, inclusive. The
total rent to be paid for the premises is the sum of $ 159,000.00. Lessee
will pay to Lessor the sum of $ 2,650.00 in consecutive monthly
installments on or before the 1st day of each month during the term of this
lease, except for first and last months installment payment which shall be
paid at the beginning of the lease term. Rent payments will be paid to
Xxxxxx and Xxxxxxxxx Xxxxx, or to its assigns.
In addition to payment of the above sums, Lessee shall also pay or cause to
be paid all real estate taxes and assessments (special or otherwise)
pertaining to said property above. Lessee will provide all insurance and
will pay all cost for utilities, maintenance, repair, replacement and
upkeep of said property during the term of this lease.
2. OPTION TO RENEW.
At the end of the term, lease may be renewed upon a renegotiated price
mutually agreeable by both parties. A sixty (60) day notice is required
prior to the end of the lease if either party decides not to renew. This
notice is to be sent registered mail to the stated address.
3. SECURITY DEPOSIT.
Lessor acknowledges receipt of $ 2650.00_ as a security deposit. The
security deposit shall secure the performance of the Lessee's obligations
hereunder. The leased premises are expected to be left in good and clean
and non contaminated condition at the end of the lease term, or upon
termination of this lease. Lessor may apply all or a portion of said
deposit on account of Lessee's obligations if all rents have not been paid
when due.
4. NOT ASSIGNABLE, NO SUBLETTING OF PREMISES.
Lessee may not assign this lease, and Lessee may not sublet the premises
without prior written consent of Lessor. Except as so restricted, this
Agreement shall inure to the benefit of the heirs, personal
representatives, administrators, successors and assigns of the parties.
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5. USE OF THE PREMISES.
The leased premises shall be used and occupied by Lessee exclusively as
stated for oilfield equipment rental, sales, service and repairs. Any other
purpose made of the premises by Lessee is subject to Lessors' prior written
consent.
6. QUIET ENJOYMENT.
Lessee agrees to keep the noise level in a rural setting, per requirements
made by the City of Bloomfield.
7. CONDITION OF THE PREMISES.
The property is being leased as is", with no warranties, implied or
express, being given as to its suitability for a particular purpose, or for
any other contingency. Lessee has had the opportunity to inspect the leased
premises prior to occupancy, and Lessee covenants and agrees that the
premises are suitable for its intended use.
If the leased premises should be damaged as a result of Lessee's negligence
or willful act, or that of its employee, agent, family, or visitor; and
such damage is so extensive that Lessor shall decide not to rebuild or
repair, the term of this Lease shall end and the rent shall be prorated up
to the time of the damage. This provision shall in no way limit the
Lessor's right to xxx Lessee for damages in the event that such damage was
caused by Lessee's negligence or willful act, and Lessor's insurance
proceeds do not cover all damages sustained as a result of such negligence
or willful act.
8. DANGEROUS MATERIALS.
Lessee shall not keep or have on the premises any article or thing of a
dangerous, inflammable or explosive character that might unreasonably
increase the danger of fire on the leased premises or that might be
considered hazardous or extra hazardous by any responsible insurance
company.
9. MAINTENANCE AND REPAIR.
Lessee agrees that it will keep up and maintain the improvements, real
property and personal property in as good a condition as they are now,
normal wear and tear excepted.
10. ALTERATIONS AND IMPROVEMENTS, REVERSION TO LESSOR.
Furnishings, trade fixtures and equipment installed by Lessee shall remain
the property of Lessee and may be removed by Lessee at any time during the
lease term provided that Lessee is not in default under the lease
agreement. Lessee shall repair any material damage to the premises, less
ordinary wear and tear, resulting from the installation or removal of such
property.
In the event of abandonment of the premises by the Lessee, or termination
of this lease for cause by the Lessor, all improvements and any personal
property left on the premises by the Lessee shall be deemed abandoned and
shall become the property of the Lessor.
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Lessee shall make no substantial alterations, additions or improvements in
or to the leased premises without the Lessor's prior written consent.
11. INSURANCE AND INDEMNIFICATION.
It is recommended that Lessee purchases and keeps in effect all insurance
policies required to protect its interest in the improvements, contents and
personal property owned by Lessee and located on or in the leased premises.
The Lessee will indemnify and hold harmless the Lessor from any and all
claims and damages (including reasonable attorney's fees and costs) arising
from Lessee's use of the premises, or from any activity, work or thing
done, or permitted by Lessee, in or about the location at 0000 X. Xxxxx
Xxxxxx, Xxxxxxxxxx, XX, unless caused by Lessor or Lessor's agents,
employees, or invitees; or from failure of the Lessee to comply with any
requirement of any governmental authority.
Lessee will carry on the property, building and fence insurance covering
against loss of fire, extended casualty, in an amount equal to such
replacement value, and public liability in a minimum amount of
$1,000,000.00 per occurrence, $1,000,000.00 general aggregate annually,
with the policies naming both Xxxxxx Xxxxx and Xxxxxxxxx Xxxxx as
additional insured.
12. REPAIRS.
All repairs to the building, fence and property is the responsibility of
the Lessee, except for any underground utility lines coming into the
property which were not damaged by the Lessee, employee or its invitees.
13. RIGHT OF INSPECTION.
The Lessor, or its authorized agents, shall have the right at all
reasonable times during the lease term, to enter the leased premises for
the purpose of inspection to determine continued compliance with the terms
of this Agreement.
A designated agent of Lessor, consented to by Lessee, shall have and safely
retain a key with which to unlock the door for any emergency purposes.
14. MECHANIC'S LIENS AND ENCUMBRANCES.
The Lessee shall not do or suffer anything to be done whereby any
mechanic's, material men or any other lien or encumbrance may encumber the
leased premises. If any such lien is filed during the lease term, the
Lessee will be required to discharge the same, and obtain a release
thereof, within thirty (30) days of the date of the filing of such a lien.
The Lessee agrees that whenever it should enter into any contracts for the
alteration, repair, or improvement of the premises, it will insert a
contract provision whereby the person or persons with whom such contract is
made, shall for himself and any subcontractors expressly waive any right to
file a mechanic's or other lien against the Lessors. Notice is hereby given
that the Lessor will not be liable for any labor or materials furnished or
contracted to be furnished to the Lessee upon credit.
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15. HOLDOVER BY LESSEE.
Should Lessee remain in possession of the leased premises with the
knowledge and consent of Lessor after the natural expiration of this Lease,
a new tenancy from month to month shall be created between Lessor and
Lessee which shall be subject to all terms and conditions hereof but shall
be terminable upon thirty (30) days notice served by either Lessor or
Lessee upon the other party.
16. ATTORNEY FEES AND COSTS.
In the event of a breach of this Agreement by either party hereto, the
party ultimately being determined to be at fault agrees in addition to the
damages awarded to pay the reasonable attorney fees and costs of the
opposing party determined not to be at fault
17. DEFAULT.
If Lessee shall fail or refuse to make the monthly payments required herein
on a timely basis to Lessor, Lessor shall have the right to remove Lessee
from the leased premises in accordance with New Mexico state law upon three
(3) days notice.
It Lessee should fail or refuse to comply with any other term or condition
contained herein, then and in that event, Lessee shall be deemed to be in
default and Lessor may retake possession of the premises hereby leased and
remove all persons therefrom. Lessee covenants and agrees that if it should
default in its obligations hereunder that it will vacate the Property
within thirty (30) days after Lessor has provided to Lessee a Notice of
Default as set forth below.
(a) Notice of Default If a default occurs, Lessor shall notify Lessee of
the same, by depositing a Notice of Default, certified mail, return receipt
requested, in the United States Mail, postage prepaid, properly addressed
to Lessee at the following addresses:
Lessee's address: NGE Leasing, Inc.
0000 X. Xxxxxx Xxxx 0000
Xxxxxxx, XX.00000
Said notice shall be effective upon the date of receipt, and shall specify
the basis for the default. If Lessee has not cured the default, or vacated
the Property within thirty (30) days of the date of mailing of said Notice,
Lessor shall have the right to remove the Lessee from the Property and to
recover its costs expended, including a reasonable attorney fee, to
complete such eviction or removal.
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18. LANDLORD'S LIEN.
As security for payment of rent, damages and all other payments required to
be made by this Lease, Lessee hereby grants to Lessor a lien upon all
property of Lessee now or subsequently located upon the premises, except
that property consigned to the Lessee. If Lessee abandons or vacates any
substantial portion or the premises, or is in default of any payments
required hereunder, or any other lease provisions, Lessor may enter upon
the premises and take possession of all or any part of the personal
property, and may sell all or any part of the personal property at a public
or private sale, in one or successive sales, with or without notice, to the
highest bidder for cash, and, on behalf of Lessee, sell and convey all or
part of the personal property to the highest bidder, delivering to the
highest bidder all of Lessee's title and interest in the personal property.
The proceeds of the sale of personal property shall be applied by Lessor
toward the reasonable costs and expenses of the sale, including attorney's
fees, and then toward the payment of all sums owed by the Lessee to Lessor
under the terms of this lease. Any excess remaining funds shall be paid to
Lessee or any other person entitled thereto by law.
19. ALTERNATIVE DISPUTE RESOLUTION.
Any controversy which may arise between the parties regarding the rights,
duties, or liabilities hereunder shall be settled by means of arbitration,
mediation, or some other form of alternative dispute resolution, if
possible. If alternative dispute resolution is not feasible, for whatever
reason, all controversies shall be litigated in the San Xxxx County
District, County, or Small Claims Court.
20. TIME.
Time is of the essence hereof. If any payment, covenant or condition hereof
is not tendered, delivered or completed in a timely manner, the party
adversely affected by such failure shall have the option to cancel or
terminate this Agreement.
21. BINDING EFFECT.
The covenants and conditions herein shall apply to and bind the
administrators, representatives, successors, and assigns of the parties
hereto.
22. ENTIRE AGREEMENT.
This agreement contains all of the agreements, covenants and conditions
made between the parties hereto, and may not be modified or changed in
whole or in part orally or in any manner other than by written addendum
executed by all parties hereto, or by their respective successors in
interest, and attached to this Agreement.
23. COUNTERPARTS.
FAX COPIES. This Agreement may be signed in counterparts. "FAX" machine
copies of an original signature by either party shall be binding as if they
were original signatures.
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24. NOTICES
Except as otherwise specifically set forth herein, all notice or deliveries
required under this lease shall be personally served or given by regular
mail to the address of
LEASE
Lessor and Lessee as set forth below:
LESSOR LESSEE
------ ------
Xxxxxx Xxxxx and Xxxxxxxxx Xxxxx NGE Leasing Inc.
P.O. Box 2055 Attn: Xxxxx Xxxxxxxx
Xxxxxxx, XX 00000 0000 X. Xxxxxx Xxxx 0000
Xxxxxxx XX, 00000
Telephone # 000 000-0000 Telephone # 000 000-0000
Fax # 000 000-0000 Fax # 000 000-0000
Notice may also be provided by fax to either party at the fax numbers set forth
above.
25. ADDITIONAL PROVISIONS.
1. Interior shop shall be completed per drawings within 30 days. See
attached Exhibit A.
2. Lessee will comply with any Bloomfield city ordinances that are in place
and any other government regulations that are required.
26. CONSENT.
Wherever consent, approval, agreement, or any party under this Lease, such
approval requires the like, consent or agreement shall not be unreasonably
withheld.
EXECUTED BY THE PARTIES the day and year first above written.
LESSOR LESSEE
Xxxxxx Xxxxx and Xxxxxxxxx Xxxxx NGE Leasing Inc.
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` Streven Xxxxx Xxxxxxx Xxxxxxxx, President
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Date Date
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Xxxxxxxxx Xxxxx
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Date
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