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EXHIBIT 10.6
RE/MAX North Central
[LOGO]
TEXAS ASSOCIATION OF REALTORS (R)
IMPROVED PROPERTY COMMERCIAL LEASE
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS
ASSOCIATION OF REALTORS(R) IS NOT AUTHORIZED.
(C)Texas Association of REALTORS(R), Inc. 1998
Table of Contents
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NO. PARAGRAPH DESCRIPTION PG.
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1 Parties 2
2 Leased Premises 2
3 Term 2
A Term
B Delay of Occupancy
4 Rent and Expenses 2
A Base Monthly Rent
B Prorated Rent
C Additional Rent
D Place of Payment
E Method of Payment
F Late Charges
G Returned Checks
5 Security Deposit 3
6 Taxes 3
7 Utilities 3
8 Tenant's Insurance 3
9 Use and Hours 3
A Tenant's Normal Business Hours
B Building Operating Hours
10 Legal Compliance 4
11 Signs 4
12 Access By Landlord 4
13 Move-In Condition 4
14 Move-Out Condition 4
15 Maintenance and Repairs 5
A Cleaning
B Repairs of Conditions Caused by a Party
C Repair and Maintenance Responsibility
D Repair Persons
E HVAC Service Contract
F Common Areas
G Notice of Repairs
H Failure to Repair 6
16 Alterations 6
17 Liens 6
18 Liability 6
19 Indemnity 6
20 Default 6
21 Abandonment, Interruption of Utilities, Lockout 7
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NO. PARAGRAPH DESCRIPTION PG.
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22 Holdover 7
23 Landlord's Lien 7
24 Assignment and Subletting 7
25 Relocation 7
26 Subordination 7
27 Estoppel Certificates 7
28 Casualty Loss 8
29 Condemnation 8
30 Attorney's Fees 8
31 Representations 8
32 Broker's Fees 8
33 Addenda 9
34 Agreement of Parties 9
35 Notices 9
36 Special Provisions 9
ADDENDA & EXHIBITS
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(CHECK ALL THAT APPLY)
[X] Property Description Exhibit
[ ] Addendum for Broker's Fee
[X] Expense Addendum for Single-Tenant Property
[ ] Expense Reimbursement Addendum
[ ] Net Addendum
[ ] Percentage Rent Addendum
[ ] Parking Addendum
[ ] Landlord's Rules and Regulations
[ ] Commercial Lease Guaranty
[ ] Optional Space Addendum
[ ] Leasehold Construction Addendum (Landlord to
Complete Construction)
[ ] Leasehold Construction Addendum (Tenant to Complete
Construction)
[ ]
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[ ]
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D. Place of Payment: Tenant will remit all amounts due Landlord under
this lease to Royce Smith at PO BOX 2770 McKinney, Texas 75069 or
to such other person or at such other place as Landlord may
designate in writing.
E. Method of Payment: Tenant must pay all rent timely without demand,
deduction, or offset, except as permitted by law or this lease.
Time is of the essence for the payment of rent. If Tenant fails to
timely pay any amounts due under this lease or if any check of
Tenant is returned to Landlord by the institution on which it was
drawn, Landlord may require Tenant to pay, in addition to any
other available remedy, all amounts due under this lease by
certified funds by providing written notice to Tenant.
F. Late Charges: If Landlord does not actually receive a rent payment
at the designated place of payment within 10 days after the date
the rent is due. The mailbox is not the agent for receipt for
Landlord. The late charge is a cost associated with the collection
of rent and Landlord's acceptance of a late charge does not waive
Landlord's rights to exercise remedies under Paragraph 20. LATE
CHARGE $30 a day.
G. Returned Checks: Tenant will pay $25.00 (not to exceed $25) for
each check Tenant tenders to Landlord which is returned by the
institution on which it is drawn for any reason, plus any late
charges until Landlord receives payment.
5. SECURITY DEPOSIT: Upon execution of this lease, Tenant will pay a
security deposit to Landlord in the amount of $17,400.00 Landlord may
apply the security deposit to any amounts owed by Tenant under this
lease. If Landlord applies any part of the security deposit during any
time this lease is in effect to amounts owed by Tenant, Tenant must,
within 10 days after receipt of notice from Landlord, restore the
security deposit to the amount stated. Within a reasonable time after
this lease ends, Landlord will refund the security deposit to Tenant
less any amounts applied toward amounts owed by Tenant.
6. TAXES: Unless otherwise agreed by the parties, Tenant will pay all real
property ad valorem taxes assessed against the leased premises.
7. UTILITIES: Tenant will pay all charges for the use of all utility
services to the leased premises and any connection charges except the
following which will be paid by Landlord: N/A
NOTICE: Tenant should determine if any and all necessary utilities
(e.g., water, gas, electricity, telephone, sewer, etc.) are available
to the leased premises, are adequate for Tenant's intended use, and the
cost to provide the necessary utilities.
8. TENANT'S INSURANCE:
A. During all times this lease is in effect, Tenant must maintain in
full force and effect:
(1) public liability insurance from an insurer acceptable to
Landlord in an amount not less than $1,000,000.00 on an
occurrence basis naming Landlord as an additional insured;
and
(2) personal property damage insurance for Tenant's business
operations on the leased premises from an insurer
acceptable to Landlord in an amount not less than
$1,000,000.00 on an occurrence basis.
B. Before the Commencement Date, Tenant must provide Landlord with a
copy of the insurance certificates evidencing the required
coverage. If the insurance coverage changes in any manner or
degree at any time this lease is in effect, Tenant must provide
Landlord a copy of an insurance certificate evidencing such change
within 10 days of the change.
C. If Tenant fails to maintain the required insurance in full force
and effect at all times this lease is in effect, Landlord may: (1)
purchase such insurance on behalf of Tenant and Tenant must
immediately reimburse Landlord for such expense; or (2) exercise
Landlord's remedies under Paragraph 20.
D. If there is an increase in Landlord's insurance premiums for the
leased premises or Property or its contents that is caused by
Tenant, Tenant's use of the leased premises, or any improvements
made by or for Tenant, Tenant will, for each year this lease is in
effect, pay Landlord the increase immediately after Landlord
notifies Tenant of the increase.
9. USE AND HOURS: Tenant may use the leased premises for the following
purpose and no other: General Office, Warehouse, and Assembly Work.
[ ] A. N/A
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[ ] B. N/A
10. LEGAL COMPLIANCE:
A. Tenant may not use or permit any part of the leased premises to be
used for:
(1) any activity which is a nuisance or is offensive, noisy, or
dangerous;
(2) any activity that violates any applicable law, regulation,
zoning ordinance, restrictive covenant, governmental order,
owners' association rules, tenants' association rules,
Landlord's rules or regulations, or this lease;
(3) any hazardous activity that would require any insurance
premium on the Property or leased premises to increase or
that would void any such insurance;
(4) any activity that violates any applicable federal, state,
or local law, including but not limited to those laws
related to air quality, water quality, hazardous materials,
wastewater, waste disposal, air emissions, or other
environmental matters;
(5) the permanent or temporary storage of any hazardous
material; or
(6) N/A
B. "Hazardous material" means any pollutant, toxic substance,
hazardous waste, hazardous material, hazardous substance, solvent,
or oil as defined by any federal, state, or local environmental
law, regulation, ordinance, or rule existing as of the date of
this lease or later enacted.
C.
11. SIGNS:
A.
B. By providing written notice to Tenant before this lease ends,
Landlord may require Tenant, upon move-out and at Tenant's
expense, to remove, without damage to the Property or leased
premises, any or all signs that were placed on the Property or
leased premises by or at the request of Tenant. Any signs that
Landlord does not require Tenant to remove and that are fixtures
become the property of the Landlord and must be surrendered to
Landlord at the time this lease ends.
12. ACCESS BY LANDLORD:
A. During Tenant's normal business hours Landlord may enter the
leased premises for any reasonable purpose, including but not
limited to purposes for repairs, maintenance, alterations, and
showing the leased premises to prospective tenants or purchasers.
Landlord may access the leased premises after Tenant's normal
business hours with Tenant's permission or to complete emergency
repairs. Landlord will not unreasonably interfere with Tenant's
business operations when accessing the leased premises.
B. During the last 60 days of this lease, Landlord may place a "For
Lease" or similarly worded sign in the leased premises.
13.
14. MOVE-OUT CONDITION AND FORFEITURE OF TENANT'S PERSONAL PROPERTY:
A. At the time this lease ends, Tenant will surrender the leased
premises in the same condition as when received, normal wear and
tear excepted. Tenant will leave the leased premises in a clean
condition free of all trash, debris, personal property, hazardous
materials, and environmental contaminants. Before this lease ends,
Tenant [ ] will [X] will not provide Landlord with a report, by an
environmental engineer or assessor acceptable to Landlord, dated
not earlier than 20 days before the date this lease ends that
indicates that no hazardous material or other environmental hazard
is on or affects the leased premises.
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B. If Tenant leaves any personal property in the leased premises
after Tenant surrenders possession of the leased premises,
Landlord may: (1) require Tenant, at Tenant's expense, to remove
the personal property by providing written notice to Tenant; or
(2) retain such personal property as forfeited property to
Landlord.
C. "Surrender" means vacating the leased premises and returning all
keys and access devices to Landlord. "Normal wear and tear" means
deterioration that occurs without negligence, carelessness,
accident, or abuse.
D. By providing written notice to Tenant before this lease ends,
Landlord may require Tenant, upon move-out and at Tenant's expense
to remove, without damage to the Property or leased premises, any
or all fixtures that were placed on the Property or leased
premises by or at the request of Tenant. Any fixtures that
Landlord does not require Tenant to remove become the property of
the Landlord and must be surrendered to Landlord at the time this
lease ends.
15. MAINTENANCE AND REPAIRS:
A. Cleaning: Tenant must keep the leased premises clean and sanitary
and promptly dispose of all garbage in appropriate receptacles.
[ ] Landlord [X] Tenant will provide, at its expense, reasonable
janitorial services to the leased premises.
B. Repairs of Conditions Caused by a Party: Each party must promptly
repair a condition caused, either intentionally or negligently, by
that party or that party's guests, patrons, invitees, contractors
or permitted subtenants.
C. Repair and Maintenance Responsibility: Except as provided by
Paragraph 15B, the party designated below, at its expense, is
responsible to maintain and repair the following specified items
in the leased premises. The specified Items must be maintained in:
(i) clean condition; (ii) good repair; and (iii) operable
condition. If a modification to any of the specified items is
required by law or governmental regulation or order, the party
designated to maintain the item must complete and pay the expense
of the modification. The specified items include and relate only
to real property in the leased premises. Tenant is responsible for
the repair and maintenance of its personal property.
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N/A Landlord Tenant
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(1) Foundation, exterior walls, roof, and other structural components [ ] [ ] [X]
(2) Glass and windows [ ] [ ] [X]
(3) Fire protection equipment and fire sprinkler systems [ ] [ ] [X]
(4) Exterior & overhead doors, including closure devices, molding, locks, [ ] [ ] [X]
and hardware
(5) Grounds maintenance, including landscaping and ground sprinklers [ ] [X] [ ]
(6) Interior doors, including closure devices, frames, molding, locks, and [ ] [ ] [X]
hardware
(7) Parking areas and walks [ ] [ ] [X]
(8) Plumbing systems, drainage systems, electrical systems (including [ ] [ ] [X]
ballast and lamp replacement) & mechanical systems, except those
specifically designated otherwise
(9) Heating Ventilation and Air Conditioning (HVAC) systems [ ] [X] [ ]
(10) Signs [ ] [ ] [X]
(11) Extermination and pest control, excluding wood-destroying insects [ ] [ ] [X]
(12) Storage yards and storage buildings [ ] [ ] [X]
(13) Wood-destroying insect treatment and repairs [ ] [ ] [X]
(14) Cranes and related systems [ ] [ ] [X]
(15) [ ] [ ] [ ]
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(16) [ ] [ ] [ ]
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(17) All other items and systems. [ ] [ ] [ ]
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D. Repair Persons: Repairs must be completed by trained, qualified,
and insured repair persons.
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E. HVAC Service Contract: If Tenant is responsible to maintain the
HVAC system, Tenant [ ] is [X] is not required to maintain, at its
expense, a regularly scheduled maintenance and service contract
for the HVAC system. The maintenance and service contract must be
purchased from a HVAC maintenance company that regularly provides
such contracts to similar properties. If Tenant fails to maintain
a required HVAC maintenance and service contract in effect at all
times during this lease, Landlord may do so and charge Tenant the
expense of such a maintenance and service contract or exercise
Landlord's remedies under Paragraph 20.
F.
G. Notice of Repairs: Tenant must promptly notify Landlord of any
item that is in need of repair and that is Landlord's
responsibility to repair. All requests for repairs to Landlord
must be in writing.
H. Failure to Repair: Landlord must make a repair for which Landlord
is responsible within a reasonable period of time after Tenant
provides Landlord written notice of the needed repair. If Tenant
fails to repair or maintain an item for which Tenant is
responsible within 10 days after Landlord provides Tenant written
notice of the needed repair or maintenance, Landlord may: (1)
repair or maintain the item, without liability for any damage or
loss to Tenant, and Tenant must immediately reimburse Landlord for
the cost to repair or maintain; or (2) exercise Landlord's
remedies under Paragraph 20.
16. ALTERATIONS:
A. Tenant may not alter, improve, or add to the Property or the
leased premises without Landlord's written consent. Landlord will
not unreasonably withhold consent for the Tenant to make
reasonable alterations, modifications, or improvements to the
leased premises.
B. Tenant may not alter any locks or any security devices on the
Property or the leased premises without Landlord's consent. If
Landlord authorizes the changing, addition, or rekeying of any
locks or other security devices, Tenant must immediately deliver
the new keys and access devices to Landlord.
C. If a governmental order requires alteration or modification to the
leased premises, the party obligated to maintain and repair the
item to be modified or altered as designated in Paragraph 15 will,
at its expense, modify or alter the item in compliance with the
order.
D. Any alterations, improvements, fixtures or additions to the
Property or leased premises installed by either party during the
term of this lease will become Landlord's property and must be
surrendered to Landlord at the time this lease ends, except for
those fixtures Landlord requires Tenant to remove under Paragraph
14 or if the parties agree otherwise in writing.
17. LIENS: Tenant may not do anything that will cause the title of the
Property or leased premises to be encumbered in any way. If Tenant
causes a lien to be filed against the Property or leased premises,
Tenant will within 20 days after Landlord demands Tenant to take action
to remove the lien, pay the lien or take whatever action is necessary
to cause the lien to be released of record. Tenant will provide
Landlord a copy of any release Tenant obtains pursuant to this
paragraph.
18. LIABILITY: To the extent Permitted by law, Landlord is NOT responsible
to Tenant or Tenant's employees, patrons, guests, or invitees for any
damages, injuries, or losses to person or Property caused by:
A. an act, omission, or neglect of: Tenant; Tenant's agent; Tenant's
quest; Tenant's employees; Tenant's patrons; Tenant's invitees; or
any other tenant on the Property;
B. fire, flood, water leaks, ice, snow, hail, winds, explosion,
smoke, riot, strike, interruption of utilities, theft, burglary,
robbery, assault, vandalism, other persons, environmental
contaminants, or other occurrences or casualty losses.
19. INDEMNITY: Tenant will indemnify and hold Landlord harmless from any
Property damage, personal injury, suits, actions, liabilities, damages,
cost of repairs or service to the leased premises or Property, or any
other loss caused, negligently or otherwise, by Tenant or Tenant's
employees, patrons, guests, or invitees.
20. DEFAULT:
A. If Landlord fails to comply with this lease within 30 days after
Tenant notifies Landlord of Landlord's failure to comply, Landlord
will be in default and Tenant may seek any remedy provided by law.
If, however, Landlord's non-compliance reasonably requires more
than 30 days to cure, Landlord will not in default if the cure is
commenced within the 30 day period and is diligently pursued.
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B. If Landlord does not actually receive at the place designated for
payment any rent due under this lease within days after it is due,
Tenant will be in default. If Tenant fails to comply with this
lease for any other reason within 10 days after Landlord notifies
Tenant of its failure to comply, Tenant will be in default.
C. If Tenant is in-default, Landlord may: (i) terminate Tenant's
right to occupy the leased premises by providing Tenant with at
least 3 days written notice; and (ii) accelerate all rents which
are payable during the remainder of this lease or any renewal
period without notice or demand. Landlord will attempt to mitigate
any damage or loss caused by Tenant's breach. If Tenant is in
default, Tenant will be liable for:
(1) any lost rent;
(2) Landlord's cost of reletting the leased premises, including
brokerage fees, advertising fees, and other fees necessary
to relet the leased premises;
(3) repairs to the leased premises for use beyond normal wear
and tear;
(4) all Landlord's costs associated with eviction of Tenant,
such as attorney's fees, court costs, and prejudgment
interest;
(5) all Landlord's costs associated with collection of rent
such as collection fees, late charges, and returned check
charges;
(6) cost of removing any equipment and trade-fixtures left on
the leased premises by Tenant;
(7) cost to remove any trash, debris, personal property,
hazardous materials, or environmental contaminants left by
Tenant or Tenant's employees, patrons, guests, or invitees
in the leased premises or Property; and
(8) any other recovery to which Landlord may be entitled by
law.
21. ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF TENANT'S PROPERTY,
AND LOCKOUT: Chapter 93 of the Texas Property Code governs the rights
and obligations of the parties with regard to: (a) abandonment of the
leased premises; (b) interruption of utilities; (c) removal of Tenant's
personal property; and (d) "lock-out" of Tenant.
22. HOLDOVER: If Tenant fails to vacate the leased premises at the time
this lease ends, Tenant will become a tenant-at-will and must vacate
the leased premises immediately upon receipt of demand from Landlord.
No holding over by Tenant, with or without the consent of Landlord,
will extend this lease. Tenant will indemnify Landlord and any
prospective tenants for any and all damages caused by the holdover.
Rent for any holdover period will be the base monthly rent.
23. LANDLORD'S LIEN AND SECURITY INTEREST: To secure Tenant's performance
under this lease, Tenant grants to Landlord a lien and security
interest against all of Tenant's nonexempt personal property that is in
the leased premises or Property. This lease is a security agreement for
the purposes of the Uniform Commercial Code. Landlord may file a copy
of this lease as a financing statement.
24. ASSIGNMENT AND SUBLETTING: Tenant may not assign this lease or sublet
any part of the leased premises without Landlord's written consent. An
assignment of this lease or subletting of the leased premises Without
Landlord's written consent is voidable by Landlord. If Tenant assigns
this lease or sublets any part of the leased premises, Tenant will
remain liable for all of Tenant's obligations under this lease
regardless if the assignment or sublease is made with or without the
consent of Landlord.
25.
26. SUBORDINATION:
A. This lease and Tenant's leasehold interest are and will be
subject, subordinate, and inferior to:
(1) any lien, encumbrance, or ground lease now or hereafter
placed on the leased premises or the Property by Landlord;
(2) all advances made under any such lien, encumbrance, or
ground lease;
(3) the interest payable on any such lien or encumbrance;
(4) any and all renewals and extensions of any such lien,
encumbrance, or ground lease;
(5) any restrictive covenant affecting the leased premises or
the Property; and
(6) the rights of any owners' association affecting the leased
premises or Property.
B. Tenant must, on demand, execute any instrument subordinating this
lease as Landlord may request, provided that such subordination is
made on the condition that this lease and Tenant's rights under
this lease are recognized by the lien-holder.
27. ESTOPPEL CERTIFICATES: Within 10 days after receipt of a written
request from Landlord, Tenant will execute and deliver to Landlord an
estoppel certificate that identifies: (a) when this lease commences and
ends; (b) any amendments to this lease; (c)
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any rights that Tenant may have to extend this lease or purchase the
Property or leased premises; (d) any default by Landlord; and (e) any
other information reasonably requested in the certificate.
28. CASUALTY LOSS:
A. Tenant must immediately notify Landlord of any casualty loss in
the leased premises. Within 20 days after receipt of Tenant's
notice of a casualty loss, Landlord will notify Tenant if the
leased premises are less than or more than 50% unusable, on a per
square foot basis, and if Landlord can substantially restore the
leased premises within 120 days after Tenant notifies Landlord of
the casualty loss.
B. If the leased premises are less than 50% unusable and Landlord can
substantially restore the leased premises within 120 days after
Tenant notifies Landlord of the casualty, Landlord will restore
the leased promises to substantially the same condition as before
the casualty. If Landlord fails to substantially restore within
the time required, Tenant may terminate this lease.
C. If the leased premises are more than 50% unusable and Landlord can
substantially restore the leased premises within 120 days after
Tenant notifies Landlord of the casualty, Landlord may: (1)
terminate this lease; or (2) restore the leased premises to
substantially the same condition as before the casualty. If
Landlord chooses to restore and does not substantially restore the
leased premises within the time required, Tenant may terminate
this lease.
D. If Landlord notifies Tenant that Landlord cannot substantially
restore the leased premises within 120 days after Tenant notifies
Landlord of the casualty loss, Landlord may: (1) choose not to
restore and terminate this lease; or (2) choose to restore, notify
Tenant of the estimated time to restore, and give Tenant the
option to terminate this lease by notifying Landlord within 10
days.
E. If this lease does not terminate because of a casualty loss, rent
will be reduced from the date Tenant notifies Landlord of the
casualty loss to the date the leased premises are substantially
restored by an amount proportionate to the extent the leased
premises are unusable.
29. CONDEMNATION: If after a condemnation or purchase in lieu of
condemnation the leased premises are totally unusable for the purposes
stated in this lease, this lease will terminate. If after a
condemnation or purchase in lieu of condemnation the leased premises
are partially unusable for the purposes stated in this lease, this
lease will continue and rent will be reduced in an amount proportionate
to the extent the leased premises are unusable. Any condemnation award
or proceeds in lieu of condemnation are the property of Landlord and
Tenant has no claim to such proceeds or award. Tenant may seek
compensation from the condemning authority for its moving expenses and
damages to Tenant's personal property.
30. ATTORNEY'S FEES: Any person who is a prevailing party in any legal
proceeding brought under or related to the transaction described in
this lease is entitled to recover prejudgment interest, reasonable
attorney's fees, and all other costs of litigation from the
nonprevailing party.
31. REPRESENTATIONS: Tenant's statements in this lease and any application
for rental are material representations relied upon by Landlord. Each
party signing this lease represents that he or she is of legal age to
enter into a binding contract and is authorized to sign the lease. If
Tenant makes any misrepresentation in this lease or in any application
for rental, Tenant is in default. Landlord is not aware of any material
defect on the Property that would affect the health and safety of an
ordinary person or any environmental hazard on or affecting the
Property that would affect the health or safety of an ordinary person,
except: N/A
N/A
N/A
32. BROKERS' FEES:
A. RE/MAX NORTH CENTRAL (Broker A) represents
[X] Landlord [ ] Tenant. Broker A's fees will be paid pursuant to
(choose 1 or 2):
[X] (1) a separate written agreement between Broker A and [X]
Landlord [ ] Tenant [ ] Broker N/A.
[ ] (2) the attached Addendum for Broker's Fee.
B. N/A (Broker B) represents
[ ] Landlord [ ] Tenant. Broker B's fees will be paid pursuant to
(choose 1 or 2):
[ ] (1) a separate written agreement between Broker B and
[ ] Landlord [ ] Tenant [ ] Broker N/A.
[ ] (2) the attached Addendum for Broker's Fee.
C. N/A (Broker C) represents
[ ] Landlord [ ] Tenant. Broker C's fees will be paid pursuant
to (choose 1 or 2):
[ ] (1) a separate written agreement between Broker B and
[ ] Landlord [ ] Tenant [ ] Broker N/A.
[ ] (2) the attached Addendum for Broker's Fee.
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33. ADDENDA: Incorporated into this lease are the addenda, exhibits and
other information marked in the Addenda and Exhibit section of the
Table of Contents. If Landlord's Rules and Regulations are made part of
this lease, Tenant agrees to comply with the Rules and Regulations as
Landlord may, at its discretion, amend from time to time.
34. AGREEMENT OF PARTIES:
A. Entire Agreement: This lease contains the entire agreement between
Landlord and Tenant and may not be changed except by written
agreement.
B. Binding-Effect: This lease is binding upon and inures to the
benefit of the parties and their respective heirs, executors,
administrators, successors, and permitted assigns.
C. Joint and Several: All Tenants are jointly and severally liable
for all provisions of this lease. Any act or notice to, or refund
to, or signature of, any one or more of the Tenants regarding any
term of this lease, its renewal, or its termination is binding on
all Tenants.
D. Controlling Law: The laws of the State of Texas govern the
interpretation, performance, and enforcement of this lease.
E. Severable Clauses: If any clause in this lease is found invalid or
unenforceable by a court of law, the remainder of this lease will
not be affected and all other provisions of this lease will remain
valid and enforceable.
F. Waiver: Landlord's delay, waiver, or non-enforcement of
acceleration, contractual or statutory lien, rental due date, or
any other right will not be deemed a waiver of any other or
subsequent breach by Tenant or any other term in this lease.
G. Quiet Enjoyment: Provided that Tenant is not in default of this
lease, Landlord covenants that Tenant will enjoy possession and
use of the leased premises free from serious interference.
H. Force Majeure: If Landlord's performance of a term in this lease
is delayed by strike, lock-out, shortage of material, governmental
restriction, riot, flood, or any cause outside Landlord's control,
the time for Landlord's performance will be abated until after the
delay.
35. NOTICES: All notices under this lease must be in writing and are
effective when hand-delivered, sent by mail, or sent by facsimile
transmission to:
<TABLE>
<CAPTION>
Tenant Landlord
<S> <C>
at the address of the leased premises. at
--------------------------------------
Fax:
------------------------------------
with a copy to: with a copy to:
--------------------- --------------------------
at at
------------------------------------ -----------------------------------------
------------------------------------ -----------------------------------------
Fax: Fax:
-------------------------------- ------------------------------------
</TABLE>
36. SPECIAL PROVISIONS:
REAL ESTATE BROKERS ARE NOT QUALIFIED TO RENDER LEGAL ADVICE, PROPERTY
INSPECTIONS, SURVEYS, ENGINEERING STUDIES (e.g. STUDIES OF THE STRUCTURES,
DRAINAGE, AND SOIL CONDITIONS), ENVIRONMENTAL ASSESSMENTS, TAX ADVICE,
FINANCIAL ADVICE, OR INSPECTIONS TO DETERMINE COMPLIANCE WITH ZONING,
GOVERNMENTAL REGULATIONS, OR ANY LAW (e.g., ADA, TEXAS ARCHITECTURAL
BARRIERS STATUTE, ETC.). THE PARTIES SHOULD SEEK EXPERTS TO RENDER SUCH
SERVICES. SELECTION OF SUCH EXPERTS IS THE RESPONSIBILITY OF THE PARTIES
AND NOT THE REAL ESTATE BROKER. THE TERMS OF THIS LEASE ARE NEGOTIABLE
AMONG THE PARTIES. THIS IS INTENDED TO BE A LEGAL AGREEMENT BINDING UPON
FINAL ACCEPTANCE. READ IT CAREFULLY. IF YOU DO NOT UNDERSTAND THE EFFECT OF
THIS LEASE, CONSULT YOUR ATTORNEY BEFORE SIGNING.
<TABLE>
<S> <C>
9-26-00
---------------------------------------------- -------------------------------------------------
Landlord JERSEY INVESTMENTS, INC. Date Tenant GLOBAL ELECTION SYSTEMS, INC. Date
By /s/ MIKE SMITH /s/ ROBERT J. UROSEVICH
------------------------------------------- --------------------------------------------------
ROYCE OR MIKE SMITH Tenant BY: Date
as /s/ ROYCE SMITH for Landlord
-------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
(TAR-2101) 10-19-98 Initialed for Identification by Tenants: /s/ R.J.U., and Landlord: /s/ M.S. Page 8 of 8
----------- ---
/s/ R.S.
</TABLE>
<PAGE> 9
RE/MAX North Central
[LOGO]
TEXAS ASSOCIATION OF REALTORS(R)
EXPENSE ADDENDUM FOR SINGLE-TENANT PROPERTY
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF
REALTORS(R)IS NOT AUTHORIZED. (C)TEXAS ASSOCIATION OF REALTORS(R), INC. 1998
--------------------------------------------------------------------------------
ADDENDUM TO THE COMMERCIAL LEASE BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE
LEASED PREMISES
AT: 1611 WILMETH RD. 1611
---------------------------------------------------------------------------
MCKINNEY TEXAS 75069
A. Taxes: "Taxes" means all the real property ad valorem taxes assessed
against the leased premises and Property (choose 1 or 2).
[X] (1) Tenant Reimburses Landlord: Each year during the term of
the above-referenced lease, Tenant will reimburse Landlord for
all taxes assessed against the leased premises and Property
for that year. Taxes will be prorated to the Commencement Date
of the lease for the first year of the lease and through the
Expiration Date for the last year. The reimbursements are due
immediately upon Tenant's receipt of Landlord's notice
accompanied by a copy of the tax statement for that year. If
tax statements for the last year of the lease are not
available at the time the lease terminates, Tenant will,
before Tenant vacates the leased premises, pay Landlord an
amount for the prorated taxes for the last year based on the
prior year's tax statements, and no subsequent adjustment will
be made.
[ ] (2)Tenant Pays Direct:
B. Insurance: "Property insurance" means fire and extended coverage on the
leased premises and Property in an amount equal to the full replacement
cost of the leased premises and Property, which amount may vary from
year to year. "Property insurance" does not include public liability
insurance or personal property damage insurance (choose 1 or 2).
[X] (1) Tenant Reimburses Landlord: Each year during the term of
the above-referenced lease, Tenant will reimburse Landlord
for the cost of the property insurance for that year. The
cost of the property insurance will be prorated to the
Commencement Date of the lease for the first year of the
lease and through the Expiration Date for the last year. The
reimbursements are due immediately upon Tenant's receipt of
Landlord's notice accompanied by a copy of the statement
from the insurance carrier for that year.
[ ] (2) Tenant Pays Direct: During all times the
above-referenced lease is in effect, Tenant must maintain,
at Tenant's expense, property insurance in full force and
effect naming Landlord as a named insured from an insurance
company acceptable to Landlord. On or before the
Commencement Date of the above-referenced lease and on or
before each anniversary of the Commencement Date, Tenant
must provide Landlord with a copy of the insurance
certificate(s) evidencing the required coverage.
C. Special Provisions:
<TABLE>
<S> <C>
9-26-00
-------------------------------------------- --------------------------------------------
Landlord JERSEY INVESTMENTS, INC. Date Tenant GLOBAL ELECTION SYSTEMS, INC. Date
By /s/ MIKE SMITH /s/ ROBERT J. UROSEVICH
----------------------------------------- --------------------------------------------
ROYCE OR MIKE SMITH Tenant BY: Date
as /s/ ROYCE SMITH for Landlord
------------------------------
</TABLE>
(TAR-2103) 10-19-98 Page 1 of 1
