Contract
Exhibit
10.5
OFFICIAL
FORM L-2 @ 1976
GREATER
DALLAS BOARD OF REALTORS
STATE
OF
TEXAS
COUNTY
OF
DALLAS
SHORT
FORM COMMERCIAL LEASE
This
lease agreement made and entered into by and between
4967
Space Center, LP
(hereinafter
referred to as “Landlord”), and
K&B
Sales, Inc.
(hereinafter
referred to as “Tenant”);
WITNESSETH
Landlord
hereby leases to Tenant, and Tenant hereby takes from Landlord the following
described premises situated within the County of Dallas, State of
Texas:
Warehouse
and office facilities at 0000 Xxxxx Xxxxxx Xxxxx, Xxx Xxxxxxx,
XX
together
with all the rights, privileges, easements and appurtenances belonging to
or in
any pertaining to the demised premises for a term of Five
(5) years
beginning the 1st
day of
November
2003,
and
ending the 31st
day of
October
2008,
to be
occupied as OFC/Warehouse
and not
otherwise, paying therefor the sum of Three
Thousand Five Hundred Dollars ($3,500.00)
Dollars,
payable upon the conditions and covenants following:
1. Each
year
during the term of this lease, Tenant shall pay real estate taxes assessed
against the demised premises in an amount equal to the total real estate
taxes
assessed against the demised premises in the base year. Each year during
the
term of the lease, Tenant shall pay an additional rental, upon receipt of
statement from Landlord along with tax statements or verification from proper
authority, his pro rata share of any increase in real estate taxes over the
base
year on the property of which the demised premises form a part. Any increase
in
real estate taxes for a fractional year shall be prorated. The base year
shall
be
2003
.
Tenant
shall also pay all charges for utility services to the demised
premises.
OFFICIAL
FORM L-2 @ 1976
2. Failure
of Tenant to surrender the demised premises at the expiration of the lease
constitutes a holding over which shall be construed as a tenancy from month
to
month at a rental of $5,000.00
per
month.
Rent
shall be paid in Dallas County, Texas, monthly in advance as the same shall
become due.
3. Tenant
has examined and accepts the premises, building, and each appurtenance thereto
in their present condition as suitable for the purposes for which the same
are
leased, and agrees to accept the premises regardless of reasonable deterioration
between the date of this lease and the date Tenant begins occupying the
premises.
4. Landlord
shall maintain in good repair the roof, foundation and exterior walls of
the
building. Tenant agrees to give Landlord written notice of defects and notice
for repairs of the roof, foundation or exterior walls. Landlord shall not
be
liable to Tenant for damage caused by the premises being or becoming out
of
repair until it has been notified of the necessity of repair by the Tenant
and
has had reasonable opportunity to repair the same.
5. Tenant
shall maintain the premises and equipment, including plate glass, store front
and entrances. Tenant shall, at its expense, keep the interior of the building,
including the plumbing, closets, pipes, fixtures and air conditioning equipment,
if any, in good repair and shall keep water pipes and connections free from
ice
and other obstructions. Tenant shall take good care of the premises and its
fixtures and suffer no waste. If Tenant leases an entire building unit, Tenant
shall be responsible for keeping the roof clean and downspouts
open.
All
alterations, additions and improvements, except trade fixtures and air
conditioning and heating equipment installed at expense of Tenant, shall
become
the property of Landlord and shall remain upon and be surrendered with the
premises as a part thereof on the termination of the lease.
No
cooling tower, equipment, or structure of any kind shall be placed on the
roof
of 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 of this 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 or Landlord’s agent. Tenant shall
promptly repair at its expense any damage resulting from such
removal.
At
the
termination of this lease, Tenant shall deliver the premises in good order
and
condition, natural deterioration and damage by fire, or other casualty only
excepted. Any damage caused by the installation or removal of Tenant’s
equipment, trade fixtures, air conditioning and heating equipment, shall
be
repaired at Tenant’s expense prior to the expiration of the lease
term.
OFFICIAL
FORM L-2 @ 1976
All
alterations, improvements, additions and repairs made by Tenant shall be
made in
a good and workmanlike manner.
6. Tenant
shall comply with all ordinances of the municipal corporation or other
governmental authority applicable to such premises because of Tenant’s use of
the premises. Tenant, at its expense, shall comply with all orders and
requirements imposed by such governmental authorities during the term of
this
lease.
7. Tenant
shall not assign this agreement or sublet the premises or any part thereof
or
make any improvements or alterations in or to the demised premises without
the
prior written consent of Landlord, which consent shall not be unreasonably
withheld. Tenant shall not occupy or allow the premises to be occupied for
any
business or purpose deemed extra hazardous because of the threat of fire
or
otherwise. If consent is granted to assign or sublet the premises, Tenant
shall
remain principal obligor for the fulfillment of each and every condition
of this
lease. If consent is granted for the making of improvements or alterations
to
the premises, such improvements and alterations shall not commence until
Tenant
has furnished to Landlord a certificate of an insurance company showing coverage
in an amount satisfactory to Landlord and protecting Landlord from liability
for
injury to any person and damage to any personal property, on or off the
premises, in connection with the making of such improvements or
alterations.
8. In
the
event the demised premises are partially damaged or destroyed or rendered
partially unfit for occupancy by fire or tornado or other casualty, Tenant
shall
give immediate notice to Landlord who may repair the damage and restore the
premises to substantially the condition in which they were immediately prior
to
the occurrence of the casualty. Such repairs shall be made at Landlord’s
expense. Landlord shall allow Tenant a fair reduction of rent during the
time
the premises are partially unfit for occupancy. If the premises are totally
destroyed or deemed by the Landlord to be rendered wholly unfit for occupancy
by
fire, tornado or other casualty, or if the Landlord shall decide not to repair
or rebuild, this lease shall terminate and the rent shall be paid to the
time of
such destruction or casualty.
9. If
Tenant
defaults in the performance of any obligations or covenants herein, Landlord
may
enforce the performance of this lease in any mode provided by law. This lease
may be terminated at Landlord’s discretion if such default continues for a
period of 10 days after Landlord notifies Tenant of such default and of its
intention to declare the lease terminated. Such notice shall be sent by Landlord
to Tenant at the demised premises by mail or otherwise. 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 premises and remove all persons and
property therefrom without being deemed guilty of trespass and without waiving
any other remedies for arrears of rent or breach of covenant. Landlord or
Landlord’s agents may resume possession of the premises and relet the same for
the remainder of the term at the best rent obtainable for the account of
Tenant,
who shall make good any deficiency.
OFFICIAL
FORM L-2 @ 1976
In
addition to the statutory lien, Tenant hereby grants to Landlord a security
interest in and to all the goods, wares, chattels, implements, fixtures,
furniture, tools and other personal property which are or may be put on the
demised premises by Tenant. Tenant shall execute such financing statements
as
shall be requested by Landlord in order to perfect Landlord’s security interest
hereunder. If, because of the breach or default by Tenant of any of Tenant’s
obligations hereunder, it shall become necessary for the Landlord to employ
an
attorney to enforce or defend any of Landlord’s rights or remedies, Tenant shall
pay to Landlord any reasonable amount incurred by Landlord as attorney
fees.
10. Landlord
and its agents shall not be liable to Tenant or to Tenant’s employees, patrons,
visitors, invitees, or any other persons for any injury to any such persons
or
for any damage to personal property caused by any act, omission, or neglect
of
Tenant or Tenant’s agents or of any other tenant of the premises of which
demised premises are a part. Tenant agrees to indemnify and hold Landlord
and
its agents harmless from any and all claims for such injury and damage, whether
the injury occurs on or off the demised premises.
11. Tenant
shall not post or paint any signs at, on or about the premises or paint the
exterior walls of the building except with the prior written approval of
the
Landlord. Landlord shall have the right to remove any sign or signs in order
to
paint the building or premises or to make any repairs or
alterations.
12. If
Landlord herein is not the owner of the demised premises, but holds the property
by virtue of another lease, then this sublease is and shall remain subject
to
all terms and conditions of such existing lease of the Landlord so far as
they
shall be applicable to the demised premises.
13. If
Tenant
becomes bankrupt or makes a 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 the Tenant of its intention to do
so.
14. If
the
whole or any substantial part of the demised premises is taken for any public
or
quasi-public use under any governmental law, ordinance or regulation or by
right
of eminent domain or should the 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 premises.
If
this
lease is assigned or the premises are sold prior to the termination of the
lease, Landlord, its assigns, successors, and heirs shall be jointly and
severally liable for all REALTORS commissions due or to become due hereunder.
Landlord will not transfer, convey or sell the premises without specific
written
agreement with the purchaser that all commissions due or to become due will
be
paid to Principal REALTOR when due by purchaser in connection with existing
leases on the premises at the time the sale occurs.
OFFICIAL
FORM L-2 @ 1976
If,
on
account of any breach or default by any party hereto in his or its obligations
to Principal REALTOR, it shall become necessary for Principal REALTOR to
employ
an attorney to enforce or defend any of Principal REALTOR’S rights or remedies
hereunder and should Principal REALTOR prevail, such parties agree to pay
Principal REALTOR reasonable attorney fees in connection therewith.
15. No
waiver
by Landlord of any default or breach of any term, covenant, condition,
agreement, provision, or stipulation herein contained shall constitute a
waiver
of any subsequent default or breach of the same or any other term, covenant,
condition, agreement, provision or stipulation hereof.
16. This
lease constitutes the full and final expression of the agreement between
the
parties and it may not be amended except by written instrument signed by
all the
parties.
17. SPECIAL
CONDITIONS:
Tenant
to pay cost of insurance and provide proof of insurance on building and
improvements.
EXECUTED
THE 1STday
of
November,
2003
| LANDLORD: | ||||
| Attest: | ||||
|
Xxxxxxx
Xxxxxxxx
|
By:
|
Xxxxxxx
Xxxxxxxx, President of Midwest Bingo Supply, Inc.
|
||
|
|
Title:
|
General
Partner to 4967 Space Center
|
||
|
TENANT:
|
||||
| Attest: | ||||
|
Xxxxxxxx
Xxxx
|
By:
|
Xxxxxxxx
Xxxx
|
||
|
|
Title:
|
President
|
||
|
|
|
NOTE:
|
If
this lease agreement is negotiated by Principal REALTOR in cooperation
with another REALTOR, Landlord shall be liable for payment of all
commissions to Principal REALTOR only, whereupon it shall be protected
from any claims from said Cooperating
REALTOR.
|
AMENDMENT
TO LEASE
This
instrument is an amendment to that certain Agreement of Lease, January 1,
1999
between H.A. Sessions (Lessor) and K & B Sales, (Lessee). The first
amendment to this lease expired June 2003.
The
purpose of this instrument is to set forth the terms and conditions governing
the extension of the above-referenced lease.
|
1.
|
Term:
|
| It is agreed between the parties of the above-referenced Base Lease, which expired June 30, 2003, be extended by two (2) years until June 30,, 2005. A one (1) year option will also be available. |
|
2.
|
It
is agreed between the parties the minimum Guaranteed Rental, during
each
option term shall be negotiated sixty (60) days prior to the end
of the
lease.
|
|
3.
|
Current
Lease Agreement:
|
| Lease begins July 1, 2003. The Lease Rate shall be $2,520.00 per month with the Landlord paying Base Year Taxes and Insurance. The term shall be for two (2) years, expiring June 30, 2005. |
Executed
this 10thday
of
July
2003
| Lessor: Xxxxxx Oil Co., Ltd. | ||||
| By: | Xxxxxxx Xxxxxx | |||
|
|
||||
| Lessee: K&B Sales, Inc. | ||||
| By: | Xxxxxxxx Xxxx | |||
|
|
||||
6-24-03
| Re: | Sale of Xxxx 0, 0, 0, & 0 xxxx xxx block 2 | |
| (leased to Goodtime Bingo Supply) | ||
| Xxxxxxx Addition | ||
| Lubbock, Texas |
Xxxxxxx
Xxxxxxxx,
Xxxxxx
Oil Co., Ltd. has purchased the referenced property from H.A. Sessions. Future
lease payments should be mailed to:
Xxxxxx
Oil Co., Ltd.
XX
Xxx
0000
Xxxxxxx,
XX 00000
Xxxxxx
Oil Co., Ltd. will honor your existing lease with H.A. Sessions and extend
the
term for two more years with a one year option. This property was purchased
as
lease property, and we will work with you to keep you as tenants.
Thanks,
| Xxxxxxx Xxxxxx | H.A. Sessions | ||
|
Xxxxxxx Xxxxxx |
H.A. Sessions |
||
