Texas Association of Realtors COMMERCIAL LEASE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS IS NOT AUTHORIZED. Texas Association of REALTORS, Inc. 2006

(TAR-2101) 5-26-06

Page 1 of 14

Hou International Realty, Spring, TX 77380

 

Phone: 281 ###-###-####

  Fax:

Richard Foulkes

The parties to this lease are:

Tenant:

Landlord:

A.

Landlord leases to Tenant the following described real property, known as the “leased premises,” along with all its improvements (Check only one box):

x

(1)

Multiple-Tenant Property: Suite or Unit Number   102   containing approximately   2980 square feet of rentable area in   Crown Point Professional Building (project name) at   26202 Oak Ridge Dr. Bldg. A #102   (address) in   Spring   (city),  Montgomery   (county), Texas, which is legally described on attached Exhibit ______________________ or as follows:

o

(2)

Single-Tenant Property: The real property at: _____________________________________________________________________________ _____________________________________________________________________________________________________ (address) in ______________________________ (city), _________________________________ (county), Texas, which is legally described on attached Exhibit ________________________________ or as follows:_______________________________________________________________

B.

If Paragraph 2A(1) applies:

(1)

(2)

A.

  July 15, 2010   (Commencement Date) and ending on

  June 30, 2015   (Expiration Date).

B.

Delay of Occupancy: If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant’s holding over of the leased premises. Landlord will not be liable to Tenant for such delay and this lease will remain enforceable, In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration Date will also be extended by a like number of days, so that the length of this lease remains unchanged. If Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant’s holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant. This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs.

C.

Unless the parties agree otherwise. Tenant is responsible for obtaining a certificate of occupancy for the leased premises if required by a governmental body.

A.

Base Monthly Rent: On or before the first, day of each month during this lease. Tenant will pay Landlord base monthly rent as described on attached Exhibit ________________________________ or as follows:

B.

First Full Month’s Rent: The first full base monthly rent is due on or before   July 15, 2010                                                                             

C.

Prorated Rent: If the Commencement Date is on a day other than the first day of a month. Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction: the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences. The prorated rent is due on or before the Commencement Date.

D.

Additional Rent: In addition to the base monthly rent and prorated rent. Tenant will pay Landlord all other amounts, as provided by the attached (Check all that apply.):

o

(1)

Commercial Expense Reimbursement Addendum

o

(2)

Commercial Percentage Rent Addendum

o

(3)

Commercial Parking Addendum

o

(4)

  N/A                                                                                                                                                                                                                                       

All amounts payable under the applicable addenda are deemed to be “rent” for the purposes of this lease.

E.

Place of Payment: Tenant will remit all amounts due Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in writing:

F.

Method of Payment: Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is returned to Landlord by the institutions on which it was drawn, Landlord after providing written notice to Tenant may require Tenant to pay subsequent amounts that become due under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant’s failure to make timely payments with good funds.

G.

H.

A.

B.

C.

TAXES: Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises.

A.

(1)

Water

o

x

o

(2)

Sewer

o

x

o

(3)

Electric

o

x

o

(4)

Gas

x

o

o

(5)

Telephone

o

o

x

(6)

Trash

o

x

o

(7)

Cable

o

o

x

(8)

o

o

x

(9)

all other utilities

x

o

o

B.

The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility service provider. The responsible party may select the utility service provider except that if Tenant selects the provider, any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord’s prior consent, which Landlord will not unreasonably withhold. If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount.

C.

D.

x

(1)

Landlord is obligated to provide the HVAC services to the leased premises only during the Property’s operating hours specified under Paragraph 9C.

o

(2)

o

(3)

Tenant will pay for the HVAC services under this lease.

A.

(1)

(2)

B.

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)

(2)

exercise Landlord’s remedies under Paragraph 20.

D.

E.

A.

Tanant may use the leased premises for the following purpose and no other: Office and Medical lab space.                                                                            

Commercial Lease concerning:

B.

Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased premises during business hours that are typical of the industry in which Tenant represents it operates.

C.

The Property maintains operating hours of (specify hours, days of week, and if inclusive or exclusive of weekends and holidays): Monday to Friday from 7:00 AM to 7:00 PM, Saturdays from 8:00 AM to 2:00 PM, Sundays from 10:00 AM to 2:00 PM and Holidays from 10:00 AM to 2:00 PM. Lab space will maintain airconditioning 24/7.                                                                                                                                                                                                  

A.

Tenant may not use or permit any part of the leased premises or the Property to be used for:

(1)

any activity which is a nuisance or is offensive, noisy, or ;

(2)

any activity that interferes with any other tenant’s normal business operations or Landlord’s management of the Property;

(3)

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;

(4)

 

(5)

 

(6)

 

(7)

_____________________________________________________________________________________________________________.

B.

 

C.

Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio requirements, and other matters that may relate to Tenant’s intended use. Tenant must satisfy itself that the leased premises may be used as Tenant intends by independently investigating all matters related to the use of the leased premises or Property, Tenant agrees that it is not relying on any warranty or representation made by Landlord, Landlord’s agent, or any broker concerning the use of the leased premises or Property.

A.

Tenant may not post or paint any signs at, on, or about the leased premises or Property without Landlord’s written consent. Landlord may remove any unauthorized sign, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign.

B.

Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property.

C.

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.

(TAR-2101) 5-26-06

Initialed for Identification by Tenant: HRP, ______ ,  and Landlord: LG, ______

Page 6 of 14

 

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POWER OF 3

Commercial Lease concerning:

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 if: (1) entry is made with Tenant’s permission; or (2) entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenant’s business operations when accessing the leased premises.

B.

During the last      90 days of this lease, Landlord may place a “For Lease” or similarly worded sign in the leased premises.

MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is) condition unless expressly noted otherwise in this lease.

A.

At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises in a clean condition free of all trash, debris, personal property, hazardous materials, and environmental contaminants.

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.

A.

Cleaning: Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate receptacles. x Landlord o Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the property type. Tenant will maintain any grease trap on the Property which Tenant uses, including but not limited to periodic emptying and cleaning, as well as making any modification to the grease trap that may be necessary to comply with any applicable law.

B.

Repairs of Conditions Caused by a Party. Each party must promptly repair a condition in need of repair that is 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 otherwise provided by this Paragraph 15, the party designated below, at its expense, is responsible to maintain and repair the following specified items in the leased premises (if any). The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items, the party designated to maintain the item must complete and pay the expense of the modification. The

(TAR-2101) 5-26-06

Initialed for Identification by Tenant: HRP, ______ , and Landlord: LG, ______

Page 7 of 14

 

Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026  www.zipLogix.com

POWER 3

Commercial Lease concerning:

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. (Check all that apply.)

(1)

Foundation, exterior walls, roof, and other structural components

o

x

(2)

Glass and windows

(3)

Fire protection equipment and fire sprinkler systems

(4)

Exterior & overhead doors, including closure devices, molding locks, and hardware

(5)

Grounds maintenance, including landscaping and irrigation systems

(6)

Interior doors, including closure devices, frames, molding, locks, and hardware

(7)

Parking areas and walks

(8)

Plumbing systems, drainage systems, electrical systems, and mechanical systems, except systems or items specifically designated otherwise

(9)

Ballast and lamp replacement

(10)

Heating, Ventilation and Air Conditioning (HVAC) systems

(11)

Signs and lighting;

(a) Pylon

(b) Facia

(c) Monument

(d) Door/Suite

(12)

Extermination and pest control, excluding wood-destroying insects

(13)

Fences and Gates

(14)

Storage yards and storage buildings

(15)

Wood-destroying insect treatment and repairs

(16)

Cranes and related systems

(17)

(18)

(19)

All other items and systems.

D.

Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons.

E.

HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(10), Tenant o 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.

Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially impair Tenant’s use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in compliance with Landlord’s rules and restrictions. Tenant may not solicit any business in the common areas or interfere with any other person’s right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies.

(TAR-2101) 5-26-06

Initialed for Identification by Tenant: HRP, ______ , and Landlord: LG, ______

Page 8 of 14

 

Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026  www.zipLogix.com

POWER OF 3

Commercial Lease concerning:

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.

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 non-structural 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 and in compliance with Paragraphs 16A and 17.

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 11 or 14 or if the parties agree otherwise in writing.

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 receipt of Landlord’s demand: (1) pay the lien and have the lien released of record; or (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph.

LIABILITY:

A.

 

B.

 

INDEMNITY:

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 be in default if the cure is commenced within the 30-day period and is diligently pursued.

(TAR-2101) 5-26-06

Initialed for Identification by Tenant: HRP, ______ , and Landlord: LG, ______

Page 9 of 14

 

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POWER OF 3

Commercial Lease concerning:

B.

If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 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 by using commercially reasonable means. If Tenant is in default, Tenant will be liable for:

(1)

any lost rent;

(2)

Landlord’s cost of relatting 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 of Tenant’s equipment or fixtures left on the leased premises or Property;

(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;

(8)

cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property;

(9)

any other recovery to which Landlord may be entitled under this lease or under law.

ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT:

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 2 times the base monthly rent plus any additional rent calculated on a daily basis and will be immediately due and payable daily without notice or demand.

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.

ASSIGNMENT AND SUBLETTING: Landlord may assign this lease to any subsequent owner of the Property. 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.

(TAR-2101) 5-26-06

Initialed for Identification by Tenant: HRP, ______ , and Landlord: LG, ______

Page 10 of 14

 

Produced with ZipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026  www.zipLogix.com

POWER OF 3