Document:

ex10-15.htm

Exhibit 10.15

 

SUBLEASE AGREEMENT

THIS SUBLEASE AGREEMENT (the “Sublease”) is entered into as of the 28 day of January, 2013, by and between AIR METHODS CORPORATION, a Delaware corporation (“Sublandlord”), successor by merger to OMNIFLIGHT HELICOPTERS, INC., a Texas corporation and COPSYNC, INC., a Delaware corporation (“Subtenant").

 

W I T N E S S E T H :

WHEREAS, Addison Tower Investment Company LLC, as landlord/lessor (11Landlord"), as successor in interest to Urdang/Griffin-Addison, L.P., as the original landlord, and Sublandlord, as tenant/lessee, are parties to an Office Lease dated May-20, 2005 (the "Original Lease''), as amended by Amendment No. 1 dated August _, 2008 (the "First Amendment"), Amendment No. 2 dated October, 2008 (the "Second Amendment") and Amendment No. 3 dated October 3, 2009 (the "Third Amendment') a copy of which lease and amendments is set forth on Exhibit “A" attached hereto and incorporated herein by reference for all purposes (as amended, the "Lease”), pursuant to which Landlord leases to Sublandlord certain improved premises known and designated as Suite 250, 400, 425 and a portion of the third floor (the "Premises"), 16415 Addison Road, Addison, Texas 75001, as more fully set forth in the Lease; and

WHEREAS, Sublandlord desires to sublet to Subtenant a portion of the Premises (the

“Subleased Premises"), comprising approximately 7,053 net rentable square feet of the space contained in the Premises, as such Subleased Premises are further described and outlined on Exhibit “B”, attached hereto and incorporated herein by reference for all purposes;

NOW, THEREFORE, for and in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in further consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

1.           Sublease.  Sublandlord hereby rents and sublets the Subleased Premises to Subtenant, to have and to hold the same unto Subtenant, its successors and assigns from the date hereof for the term of this Sublease, subject to the terms and provisions hereof. Subtenant shall hold the Subleased Premises pursuant and subject to the terms, conditions, covenants and agreements contained in the Lease. Subtenant hereby expressly assumes and agrees to keep, observe, perform and be bound by all of the conditions, covenants, and agreements on the part of Sublandlord to be kept, observed and performed pursuant to the Lease. Except as otherwise provided herein, all of the terms and provisions of the Lease which are applicable to or binding upon Sublandlord, as tenant/lessee thereunder, shall also be applicable to or binding upon Subtenant in the same manner as if such terms and provisions had been set forth in full herein. All provisions of the Lease which inure to the benefit of the Landlord therein, shall inure to the benefit of and be enforceable by Sublandlord herein as against Subtenant. Sublandlord shall not be required to perform any obligations of Landlord under the Lease. Sublandlord shall not be in default hereunder and shall have no liability to Subtenant in connection with any default by Landlord under the Lease. Subtenant hereby acknowledges and agrees that the only services or other rights that Subtenant is entitled to under this Sublease are those to which Sublandlord is

 

  

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entitled under the Lease. All terms having their initial letters capitalized and not defined herein shall have the meanings set forth in the Lease. If any conflict exists between this Sublease and the Lease, the Lease shall govern and control. Notwithstanding any provision contained in the Lease to the contrary, the following shall apply with respect to the Subleased Premises:

(a)           Term: The term (the "Term") of this Sublease shall commence on the later to occur of the date on which the Landlord Consent (hereinafter defined) is executed and delivered by Landlord to Sublandlord or February 28, 2013 (the ,Commencement Date") and shall expire August 31, 2015, unless earlier terminated by operation of law, the terms of the Lease or this Sublease. The Term of this Sublease shall not be extended by, nor shall Subtenant be entitled to the benefit of, any extension or renewal of the Lease pursuant to the terms thereof.

(b)           Rent: Subtenant shall pay to Sublandlord as base rent under this Sublease the sum of $7,208.00 per month from 4/1/2013-3/30/2014. The rent from 4/1/2014 through the balance of the term shall be $7501.87. Subtenant shall pay to SubJandlord on the date of execution hereof a payment of base rent in the amount of $7173.00, representing the base rent for April, 2013. Subtenant shall pay all such amounts to Sublandlord on a monthly basis in advance of the first day of each month, which amounts shall be prorated in the event of a partial month. Notwithstanding, rent for 3/1/13 - 3/30/13 shall be abated.

(c)           Security Deposit: $7,208.00

(e)           Parking: Subtenant shall be entitled to use twenty eight (28) of the unreserved parking spaces in the Building's structured garage at no charge that Sublandlord is entitled to use pursuant to the terms of the Lease. Sublandlord shall be entitled to designate the location of any such parking spaces.

(f)           Signage: Subject to receipt of approval from Landlord, Subtenant, at Subtenant's sole cost and expense, shall be entitled to install non exclusive building standard signage at suite entry.

(g)           Provisions Excluded: The following provisions of the Lease shall not apply to and are hereby specifically excluded from the operation of this Sublease:

Original Lease:            Section 3.A., the first sentence of Section 3.B., Sections 4.B., 4.C., 4.D., 4.E., 4.F., 4.G., 4.H, Exhibit D, Exhibit F and Exhibit G

First Amendment:       Sections 6, 7, 8, 9 and Exhibit C

Second Amendment:  Sections 4, 5, 6, 7and Exhibit C

Third Amendment:     Sections 5, 6, 8, 9, 10, 11 and Exhibit B

2.           Possession of Subleased Premises.  SUBTENANT ACKNOWLEDGES AND AGREES THAT SUBTENANT HAS INSPECTED THE SUBLEASED PREMISES, THAT

 

  

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SUBLANDLORD MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE SUBLEASED PREMISES OR ANY INFORMATION DELIVERED BY SUBLANDLORD TO SUBTENANT IN CONNECTION WITH THE SUBLEASED PREMISES AND THAT SUBLANDLORD SHALLNOT BE REQUIRED TO MAKE ANY REPAIRS, ALTERATIONS, ADDITIONS OR IMPROVEMENTS IN OR TO THE SUBLEASED PREMISES, EVEN IF THE SUBLEASED PREMISES DO NOT CURRENTLY COMPLY WITH THE PROVISIONS OF THE LEASE.  SUBTENANT IS LEASING AND ACCEPTS THE SUBLEASED PREMISES "AS IS” WITH ALL FAULTS AND DEFECTS, KNOWN OR UNKNOWN, LATENTOR PATENT, WITHOUTANY REPRESENTATION OR WARRANTY, ORAL OR WRITTEN, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, HABITABILITY, MERCHANTABILITY, SUITABILITY OR QUALITY, AND IN SOLE RELIANCE ON SUBTENANT'S OWN INDEPENDENT INSPECTION, INQUIRY AND/OR INVESTIGATION. SPECIFICALLY, SUBLANDLORD IS NOT MAKING AND SPECIFICALLY DISCLAIMS ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED WITH RESPECT TO THE SUBLEASED PREMISES.   Notwithstanding, SUBLANDLORD will be obligated to perform the construction "Work" described in Exhibit B at SUBLANDLORD’s sole expense prior to the Commencement Date.

3.           Rent.  Subtenant agrees to pay during the Sublease Term to Sublandlord, without any demand, setoff or deduction whatsoever, the Base Rental, additional rental and all such other sums of money as shall become due under this Sublease or any exhibits or addenda to this Sublease, all of which are sometimes herein collectively called "rent", for the nonpayment of which  Sublandlord shall be entitled to exercise all such rights and remedies as are herein provided in the case of the nonpayment of Base Rental. The obligation of Subtenant to pay rent is an independent covenant and no act or circumstance whatsoever, whether such act or circumstance constitutes a breach of covenant by Sublandlord or not, shall release Subtenant from the obligation to pay rent hereunder. Subtenant shall pay the monthly installment of Base Rental and any additional rent attributable to the first month of the Term to Sublandlord simultaneously with Subtenant’s execution of this Sublease, prorated based on the number of days in the first calendar month.

4.           Security Deposit.  Subtenant shall deposit the Security Deposit with Sublandlord upon execution of this Sublease.  The Security Deposit shall be held by Sublandlord without liability for interest and as security for the performance by Subtenant of Subtenant’s covenants and obligations under this Sublease. The Security Deposit shall not be considered an advance payment of rental or a measure of Sublandlord's damages in case of default by Subtenant. Sublandlord may commingle the Security Deposit with Sublandlord's other funds.  Sublandlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other covenant or obligation of Subtenant hereunder, or to compensate Sublandlord for any other loss or damage which Sublandlord may suffer by reason of any default by Subtenant. Following any such application of the Security Deposit, Subtenant shall pay to Sublandlord on demand the amount so applied in order to restore the Security Deposit to its original amount.  If Subtenant is not in default beyond any applicable cure period at the termination of the Sublease, and has complied with all of the provisions of this Sublease to be performed by Subtenant, including surrender of the Subleased Premises in accordance with the provisions hereof, the balance of the Security

  

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Deposit remaining after such termination shall be returned by Sublandlord to Subtenant within thirty (30) days from the Lease Expiration date on August 31, 2015. Subtenant will not assign or encumber Subtenant's interest in the Security Deposit, and neither Sublandlord nor Sublandlord's  successors  or assigns  will  be  bound  by  any  such attempted  assignment  or encumbrance of the Security Deposit.  In the event of a sale of the Subleased Premises, or a leasing of the Building of which the Subleased Premises form a part, or a transfer by Sublandlord of its interests under this Sublease, Sublandlord shall have the right to transfer the Security Deposit to the purchaser or owner of this Sublease, in which event, Sublandlord shall thereupon be released from all liability for the return of the Security Deposit to Subtenant and Subtenant agrees to look solely to the new purchaser or owner for the return of the Security Deposit so long as the aforementioned purchaser or owner accepts this obligation in writing. As security for the performance of its obligations under this Sublease, Subtenant hereby grants a security interest to Sublandlord in the Security Deposit in accordance with the provisions of the Uniform Commercial Code as in effect in the State of Texas, and agrees that Sublandlord shall be entitled to exercise all remedies available to a secured party thereunder with respect to the Security Deposit.

5.           Use.  Subtenant shall use the Subleased Premises only for the uses and purposes permitted under the Lease and for no other use or purpose.  Subtenant shall not do or suffer anything to be done upon the Subleased Premises which shall cause an injury to the Subleased Premises, or violate any zoning, building, health, safety or other  code or ordinance  of  any federal, state or local unit of government which has jurisdiction  over the Subleased Premises and Subtenant, at  its  sole expense, shall comply with, and shall use and occupy the Subleased Premises in compliance with, (i) all laws applicable  to the Subleased Premises, including, without limitation, the Americans With Disabilities Act, and all orders, judgments, ordinances, regulations, codes, directives, permits and licenses, now or hereafter applicable to the Subleased Premises (collectively, "Legal Requirements"); (ii) all easements, covenants and restrictions now or hereafter applicable to  the Subleased Premises; and  (iii)  the terms of the Lease (with subparagraphs  (i), (ii) and (iii) collectively called "Applicable Laws"). The Subleased Premises shall not be used as a place of public accommodation under the Americans with Disabilities Act or similar state statutes or local ordinances or any regulations promulgated thereunder, all as may be amended from time to time.  Subtenant shall, at its expense, make any alterations  or modifications, within the Subleased Premises that are required by Legal Requirements, subject to the  requirement of obtaining Sublandlord's  prior written approval and consent to same.  Subtenant shall hold Sublandlord harmless against any and all costs, expenses, losses or damages incurred, suffered, or imposed on Sublandlord as a result of any use of the Subleased Premises by Subtenant in violation of any such laws or the terms of the Lease. Notwithstanding, Sublandlord represents that the installation of the new entrance to the  Premises pursuant  to Exhibit B shall comply with Texas Accessibility  Standards  and the ADA as it pertains to the width of the entrance but will not include automatic openers or electronic locking mechanisms. Sublandlord warrants that all improvements or alterations to the Premises performed by Sublandlord comply with all applicable Texas Accessibility Standards and the ADA.

 

6.           Maintenance.  Subtenant shall maintain and keep the Subleased Premises in good repair and in a clean and orderly condition and shall perform all obligations of Sublandlord under the Lease related to the maintenance, repair and replacement of the Subleased Premises.

 

  

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7.           Taxes.  Subtenant shall pay to the applicable taxing authorities prior to delinquencies all taxes of any kind whatsoever becoming due with respect to the following (the "Sublease Taxes"): (a) Subtenant's personal property located in or about the Subleased Premises,

(b) any Rent payable by Subtenant to Sublandlord with respect to the Subleased Premises, or (c) Subtenant's use or occupancy of the Subleased Premises.  If any such Sublease Taxes are levied or assessed against Sublandlord or Sublandlord's property, and if Sublandlord elects to pay

same, or if the assessed value of the Sublandlord's property is increased by inclusion of any Sublease Taxes, and Sublandlord elects to pay the Sublease Taxes based upon such increase,

Subtenant shall pay such Sublease Taxes to Sublandlord within thirty (30) days. At Sublandlord's option, Subtenant shall pay the amount of Sublease Taxes to Sublandlord in lump sums within thirty (30) days after demand from Sublandlord or in monthly installments of the annual amount estimated by Sublandlord at the same time that monthly Rent is payable. If the total of Subtenant's monthly installments is less than the annual amount actually paid to Sublandlord, Subtenant shall pay the difference to Sublandlord within thirty (30) days after demand. If the total of Subtenant's monthly payments is greater than the annual amount actually paid to Sublandlord, then Sublandlord may apply such excess to the Rent next becoming due; provided, however, that any such excess at the end of the Term shall be paid to Subtenant after all amounts due Sublandlord have been paid in full.

8.           Utilities.

(a)    Sublandlord is not required to install meters or sub meters for same.

(b)    Subtenant will pay for all telephone and data charges incurred by Subtenant. All charges for heat, gas, electricity, water, sewer, and other utilities or assessments (collectively, "Utilities''), whether or not they are separately metered, shall be paid by Sublandlord. It is the intent of the Parties that all Utilities (other than telephone and data charges) will be included in the Base Rent paid by Subtenant to Sublandlord.

9.           Insurance. Subtenant will insure the Subleased Premises to the same extent that, and will procure and maintain such other insurance in connection therewith as, Sublandlord is required to maintain under the Lease, and will comply with the insurance requirements set forth in the Lease which are applicable to Sublandlord. It is agreed that any and all insurance required to be maintained by Subtenant pursuant to the terms of the Lease (as incorporated herein and assumed by Subtenant hereunder) must: (i) name Landlord and Sublandlord, and each leasehold mortgagee holding a leasehold mortgage on this Sublease or the Subleased Premises or any part thereof: as additional loss payees with respect to all insurance; (ii) contain waivers of subrogation applicable to each Sublandlord, each aforesaid mortgagee and Landlord; (iii) include a standard mortgage clause in favor of each aforesaid mortgagee; (iv) name Sublandlord, each aforesaid mortgagee, and Landlord as additional insureds with respect to with respect to liability insurance; and (v) require at least thirty (30) days' advance written notice to Sublandlord, Landlord, and any applicable mortgagee prior to the cancellation or modification of any such insurance. All insurance policies required to be maintained by Subtenant hereunder must be written by insurance companies reasonably satisfactory to Sublandlord and Landlord. True, correct and complete copies of all such insurance policies (or certificates thereof in form and content reasonable satisfactory to Sublandlord and Landlord hereunder have been obtained and paid form, must be provided to Sublandlord, Landlord and any applicable mortgagees concurrently with the execution of this Sublease and thereafter at least thirty (30) days prior to

  

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the expiration date of any then-existing policies.   Any proceeds received under such insurance shall be applied as provided in the Lease.

10.          Assignment and Subletting.  Subtenant shall not assign or sublease all or a portion of the Subleased Premises to any other party without obtaining the prior written consent of Sublandlord which consent .shall not be unreasonably withheld, conditioned or delayed. In the event that Subtenant attempts or purports to assign or sublease all or a part of the Subleased Premises to, or allow occupancy of any portion of the Subleased Premises by, any other party in violation of the terms of this section, such action shall constitute a default under the terms of this Sublease, entitling Sublandlord to exercise all remedies provided at law, in equity or under the Lease. Notwithstanding any assignment or subletting, Subtenant shall not be relieved of its obligations hereunder and a consent to one assignment or subletting shall not constitute a further waiver of the provisions of this Section.

11.          Waiver of Subrogation.  Notwithstanding anything in this Sublease to the contrary, Sublandlord and Subtenant each waive any and all rights to recover against the other, or against the officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees or business visitors of such other party for any loss or damage to  such waiving party arising from any cause covered by any insurance required to be carried by the waiving party pursuant to the terms of this Sublease or any other insurance actually carried by such party,  EVEN  IF DUE  TO THE NEGLIGENCE  OF THE OTHER PARTY.  Sublandlord and Subtenant, from time to time, will cause the respective insurers to issue appropriate waiver of subrogation rights endorsements to all policies of insurance carried in connection with the Premises or the Subleased Premises or the contents of the Premises or the Subleased Premises. Subtenant agrees to cause all other occupants of the Subleased Premises claiming by, under or thorough Subtenant to execute and deliver to Sublandlord such a waiver of claims and to obtain such waiver of subrogation rights endorsements.

12.          Exculpation.  Subtenant hereby acknowledges and agrees that Sublandlord is not responsible for any repairs to the Subleased Premises, nor will Sublandlord, nor any of Sublandlord's partners, officers, directors, shareholders, agents, employees or representatives, be liable for any of the following: (a) any of the Landlord's obligations under the Lease; (b) any interruption in utilities or services to the Subleased Premises; (c) any loss of or damage to any property of Subtenant or of Subtenant's employees, agents, customers, guests or invitees (whether by theft or otherwise); (d) the failure of Landlord to perform any obligation of Landlord under the Lease; or (e) any damage or disturbance caused by others, EVEN IF DUE TO THE NEGLIGENCE OF SUBLANDLORD. Neither Sublandlord nor any of Sublandlord's partner's, officers, directors, shareholders, employees, agents or representatives has any personal liability under this Sublease.  The liability of Sublandlord for any default by Sublandlord under the terms of this Sublease will be  limited to Subtenant's actual direct, but not consequential, damages therefor and shall be recoverable solely from the equity interest of Sublandlord  in and to the Subleased Premises in, to and under the Lease.

13.          Indemnity.  Notwithstanding any provision of the Sublease to the contrary, Landlord and Sublandlord shall not be liable to Subtenant, or any of its agents, employees, servants, or invitees for any damage to persons or property due to the condition, design, or any defect in the building or its mechanical systems that may exist or subsequently occur. Subtenant, with respect to itself or its agents, employees, servants, and invitees, expressly assumes all risk

  

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and damages to persons and property, either proximate or remote, by reason of the present or further condition of the Subleased Premises or the Leased Premises.  Subtenant agrees that it will indemnify, defend and hold Landlord and Sublandlord harmless from and against: (a) all suits, claims and actions of every kind by reason of any breach, violation, or non-performance of any term or condition on the part of the Subtenant under  this  Sublease;  (b) all claims, actions, damages, liabilities and expenses asserted against the Landlord and/or Sublandlord by any person or entity in connection with any services provided or work performed by Subtenant from the Subleased Premises; and (c) any and all losses, claims, demands, actions, suits,  damages (including, without limitation,  punitive  damages), expenses, and costs (including, without limitation, actual attorneys' fees, consultant fees or expert fees) asserted against the Landlord and Sublandlord on account of injuries to person or damage to property to the extent that any such damage or injury may be caused, either approximately  or remotely, by any act or omission, whether  negligent  or not,  of Subtenant or any of its agents, servants, employees,  contractors, patrons, or invitees (while such invitees are on the Leased Premises  or Subleased Premises)  or any other person entering upon the Leased  Premises or Subleased  Premises under  or with the expressed  or implied invitation  of Subtenant, or if any such  injury or damage made any other way arise from or out of the occupancy or use of Subtenant, its agents, employees and invitees or the Subleased Premises, EVEN IF DUE TO THE NEGLIGENCE OF THE INDEMNIFIED PARTY.

14.          Alterations.  Subtenant shall not make any alterations, additions or improvements to the Subleased Premises without the prior written consent of Sublandlord and Landlord. All alterations now or hereafter proposed to be made by Subtenant shall be made in accordance with and shall be subject to the provisions of the Lease.

15.          Environmental  Requirements.

(a)    Except for Hazardous Materials contained in products used by Subtenant in de minimis quantities for ordinary cleaning and office purposes in compliance with Environmental Requirements ("Permitted Materials", Subtenant shall not permit or cause any party to bring any Hazardous Materials upon the Subleased Premises or the Leased Premises or transport, store, use, generate, manufacture or release any Hazardous Material in or about the Subleased Premises or the Leased Premises without Sublandlord's prior written consent. Subtenant, at its sole cost and expense, shall operate its business in the Subleased Premises and the Leased Premises in strict compliance with all Environmental Requirements, and shall remediate in a manner satisfactory to Sublandlord any Hazardous Materials released on, under, to or from the Subleased Premises or the Leased Premises by Subtenant, its agents, employees, contractors, subtenants or invitees. Subtenant shall complete, certify to and return to Landlord within twenty (20) days following receipt thereof such disclosure statements as may requested by Sublandlord from time to time relating to Subtenant's transportation, storage, use, generation, manufacture, or release of Hazardous Materials on the Subleased Premises and/or the Leased Premises. Subtenant has no right to use any Hazardous Materials other than the Permitted Materials .The term "EnvironmentalRequirements" means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any governmental authority or agency regulating or relating to health, safety or environmental conditions on, under, or about the Subleased Premises and the 'Leased Premises or the environment, including without limitation, the following:  the Comprehensive

 

 

  

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Environmental Response, Compensation and Liability Act; the Resource and Conservation Recovery Act; and all state and local counterparts thereto, and any regulations or policies promulgated or issued thereunder. The term "Hazardous Material(s)" means and includes [a] any substance, material, waste, pollutant or contaminant listed or defined as hazardous or toxic under any Environmental  Requirements; [b] asbestos; [c] petroleum, including crude oil or any fraction thereof; and [d] natural gas or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas). As defined  in Environmental Requirements, Subtenant is and shall be deemed to be the "operator" of Subtenant's "facility" and the •owner" of all Hazardous Materials brought on the Subleased Premises and/or the Leased Premises by Subtenant, its agents, employees, contractors or invitees, and the wastes, by-products, or residues generated, resulting or produced therefrom.

(b)    Subtenant shall indemnify, defend, and hold  Sublandlord  and  Landlord harmless from and against any and all losses (including, without limitation, diminution in value of the Subleased Premises and/or the Leased Premises  and  loss of rental  income from the Subleased Premises and/or the Leased Premises), claims, demands, actions, suits, damages (including, without limitation, punitive damages), expenses (including, without limitation, remediation, removal, repair, corrective action or cleanup expenses), and costs (including, without limitation, actual attorneys' fees, consultant fees or expert fees and including, without limitation removal or management of any asbestos brought into the Subleased Premises and /or the Leased Premises or disturbed in breach of the requirements of this Paragraph, regardless of whether such removal or management is required by law) which are brought or recoverable against, or suffered or incurred by Sublandlord or Landlord as a result  of any release of Hazardous Materials in, on or about the Subleased Premises and/or the Leased Premises or any breach of the requirements under  this Paragraph by Subtenant, its agents, employees,  contractors,  subtenants,  assignees  or invitees, regardless of whether Subtenant had knowledge of such noncompliance . The obligations of Subtenant under this Paragraph shall survive any termination of this Sublease. Notwithstanding, Subtenant will not be responsible for any Hazardous Material that is present in the Premises on the Commencement Date.

(c)    Sublandlord shall have access to, and a right to perform inspections and tests o:t: the Subleased Premises and/or the Leased Premises to determine Subtenant's compliance with Environmental Requirements, its obligations under this Paragraph, or the environmental condition of the Subleased Premises and/or the Leased Premises. Such inspections and tests shall be conducted at Sublandlord's expense, unless such inspections or tests reveal that Subtenant bas not complied with any Environmental Requirement, in which case Subtenant shall immediately reimburse Sublandlord for the reasonable cost of such inspection and tests. Sublandlord's receipt of or satisfaction with any environmental assessment in no way waives any rights that Sublandlord holds against Subtenant.

16.          Default.  The occurrence of any of the following events as a result of Subtenant's acts or omissions shall constitute an event of default by Subtenant:

(a)    failure to pay any installment of rent or any other payments due hereunder as and when the same shall become due and payable;

 

  

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(b)    breach of any term, condition or covenant of this Sublease;

(c)    breach of any term, condition or covenant of the Lease imposed therein on Sublandlord and imposed under this Sublease on Subtenant;

(d)    the occurrence of any event of default specified in the Lease.

17.          Remedies.

(a)    Upon the occurrence of any event of default by Subtenant, Sublandlord shall have the right, without any notice or demand whatsoever, to (i) terminate this Sublease by giving Subtenant notice of Sublandlord's election to do so, in which event, the term of this Sublease shall end and all of Subtenant"s rights and interests shall expire on the date stated in such notice; (ii) terminate Subtenant's right of possession of the Subleased Premises without terminating this Sublease by giving notice to Subtenant that Subtenant's right of possession shall end on the date specified in such notice; (iii) pursue any other remedy available to Sublandlord at law, in equity, or otherwise; or (iv) pursue any remedies available to Landlord upon a default by "Tenant" under the Lease. All Sublandlord remedies shall be cumulative and not exclusive.

(b)    In the event that Sublandlord terminates the Lease, Sublandlord shall be entitled to recover (i) the sum of all Rents and other indebtedness accrued to the date of such termination, plus (ii) the cost of recovering possession of the Subleased Premises, (iii) the cost of reletting the Subleased Premises, or portions thereof (including, without limitation, legal fees  and brokerage commissions), and (iv) the cost of any repairs required to return the Premises to the condition it was in at the point of time the Subtenant originally took possession, accounting for reasonable wear and tear while occupied by Subtenant. [Items (ii) through (iv) in this paragraph are defined as the "Recovery Costs"]. In addition, Sublandlord shall be entitled to recover a sum equal to the remaining unpaid Base Rent for the months remaining in the applicable Term offset by any rents received by the Sublandlord by any new Subtenant taking possession of the Premises during the applicable Term and disregarding any remaining Sublease term extension option(s) in this Sublease.

(c)    In the event Sublandlord proceeds pursuant to subparagraph (a)(ii) above, Sublandlord shall be entitled to recover (i) the sum of all Rents and other indebtedness accrued to the date of such termination of Subtenant's possession, plus (ii) the Recovery Costs.  Sublandlord may, but shall not be obligated to (except as may be required by law) relet the Subleased Premises, or any part thereof for the accoWlt of Subtenant, for such rent and term and upon such terms and conditions as are reasonably acceptable to Sublandlord.  For  purposes  of such reletting, Sublandlord is authorized to incur reasonable costs to repair or alter the Premises to return it to the condition it was in at the point of time the Subtenant originally took possession, accounting for reasonable wear and tear while occupied by Subtenant.  If the Subleased Premises are relet and the consideration realized therefrom after payment of all Sublandlord's reletting expenses is insufficient to satisfy the payment when due of Rent reserved under this Lease for any monthly period, then Subtenant shall pay Sublandlord upon demand any such deficiency monthly  (''Rental  Deficiency"). If such consideration is greater than the amount

  

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necessary to pay the full amount of the Rent, the full amount of such excess shall be retained by Sublandlord and shall in no event be payable to Subtenant. Subtenant agrees that Sublandlord may file suit to recover any sums due to Sublandlord hereunder from time to time and that such suit or recovery of any amount due Sublandlord hereunder shall not be any defense to any subsequent action brought for any amount not therefore reduced to judgment  in favor of Sublandlord . Notwithstanding any such reletting without termination, Sublandlord may at any time thereafter elect to terminate this Sublease for such previous event of default by Subtenant. In the alternative, Sublandlord may at any time thereafter elect to terminate Subtenant’s right to occupy the Subleased Premises and to immediately recover as damages, in lieu of the Rental Deficiency, a sum equal to the remaining unpaid Base Rent for the applicable Term, disregarding any remaining Sublease term extension option(s), plus any Recovery Costs.

(d)    In the event Subtenant fails to pay any installment of rent or any other monetary obligation contained herein or in the Lease as and when such installment is due, Subtenant shall pay to Sublandlord on demand a late charge in an amount equal to five percent (5%) of such installment; and the failure to pay such late charge within five (5) days after written demand therefor shall be an event of default hereunder. The provision for such late charge shall be in addition to all of Sublandlord's other rights and remedies hereunder or at law and shall not be construed as liquidated damages or as limited Sublandlord's remedies in any manner.

(e)    Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such event of default. If, on account of any breach or default by Subtenant in its obligations under the terms and conditions of this Sublease, it shall become necessary or appropriate for the Sublandlord to employ or consult with an attorney concerning or to enforce or defend any of the Sublandlord's rights or remedies hereunder, Subtenant agrees to pay any reasonable attorney's fees incurred by the Sublandlord.

18.          Return of Subleased Premises.  At the end of the Term covered by this Sublease, or upon such earlier termination of this Sublease as provided herein, or upon termination of the Lease, in which event this Sublease shall automatically be terminated, Subtenant shall (i) surrender the Subleased Premises to Sublandlord in broom clean condition, in good repair and in the condition required by the Lease, (ii) deliver all keys to the Subleased  Premises to Sublandlord, (iii) remove all of Subtenane s trade fixtures and other personal property from the Subleased Premises and repair all damage caused by such  removal.  Any equipment, trade fixtures, or other property of Subtenant left in the Subleased Premises after the end of the Sublease shall be deemed abandoned, and may be retained or disposed of by Sublandlord, without notice to Subtenant, in any manner that Sublandlord deems appropriate, at Subtenant's sole cost and expense.

  

SUBLEASE AGREEMENT - Page 10

  

 

19.          Holding Over.

a.            Should Subtenant, or any of its permitted successors in interest, hold over the Subleased Premises, or any part thereof, after the expiration of the Term of this Sublease, unless otherwise agreed in writing by Sublandlord, such holding over shall constitute and be construed as creating a tenancy at sufferance only, subject to all of the terms and provisions of this Sublease, except that the Rent payable monthly by Subtenant hereunder shall be an equal to the greater of: (a) the total Rent payable by Subtenant for the last month of the Term hereof, plus fifty percent (50%) of such amount; or (b) the total Rent payable monthly by Sublandlord to Landlord pursuant to the Lease as a result of Subtenant's failure to vacate  the  Subleased Premises prior to or on the date of termination of the this Sublease. Subtenant agrees to indemnify Sublandlord in the event that it's holding over causes any cost, expense, liability, or damage to Sublandlord. The inclusion of this paragraph shall not be construed as Sublandlord's permission for Subtenant to hold over.

20.          Subordination.  This Sublease shall be subject and subordinate to any mortgage of any type whatsoever on the Subleased Premises given to secure a loan made to Landlord, and to any renewals, replacements, extensions, or consolidations of such loan. Subtenant agrees, at the election of the holder of any such mortgage, to attorn to any such holder. Subtenant agrees upon demand to execute, acknowledge and deliver such instruments, confirming such subordination and such instruments of attornment as shall be requested by any such holder.  Subtenant hereby appoints Sublandlord attorney in fact for Subtenant irrevocably (such power of attorney being coupled with an interest) to execute, acknowledge and deliver any such instrument and instruments for and in the name of the Subtenant and to cause any such instrument to  be recorded.  Sublandlord shall not be required to execute or deliver any nondisturbance agreement in connection with this Sublease.

21.          Notices.  Each provision of this instrument or of any applicable governmental laws, ordinances, regulations and other requirements with reference to the sending, mailing, or delivery of any notice or the making of any payment by Sublandlord to Subtenant or with reference to the sending, mailing, or delivery of any notice or the making of any payment by Subtenant to Sublandlord shall be deemed to be complied with when and if the following steps are taken:

(a)    All Rent and other payments required to be made by Subtenant to Sublandlord hereunder shall be payable to Sublandlord at the address herein below set forth or at such other address as Sublandlord may specify from time to time by written notice delivered in accordance herewith.

(b)    All payments required to be made by Sublandlord to Subtenant hereunder shall be payable to Subtenant at the address herein below set forth, or at such other address as Subtenant may specify from time to time by written notice delivered in accordance herewith.

(c)    Any notice, demand, consent, approval or other communication or document to be provided hereunder to a party hereto, shall be in writing and shall be deemed to have been provided after being sent by certified or registered mail, return receipt requested, in the United States mail or by personal delivery or commercial

  

SUBLEASE AGREEMENT - Page 11

  

courier, against receipt.   Any and all notices or other communications to Sublandlord and Subtenant shall be given as follows:

If to Sublandlord:     Air Methods Corporation

Corporate Headquarters

7211 S. Peoria St.

Denver/Centennial Airport

Englewood, CO 80112

Attn:

If to Subtenant:        Copsync, Inc.

16415 Addison Road #350

Addison, TX 75001

Attention: Chief Financial Officer

Either party may change the address for notices by notice in writing given to the other party in the manner hereinabove described.

(b)    Each party hereto shall promptly give the other party a copy of each notice received from, or sent to, the Landlord and relating to the Subleased Premises.

22.           Real Estate Broker. Except for Jackson & Cooksey, Inc., a Texas corporation and Jones Lang LaSalle Brokerage Inc. ("Brokers"), whose commissions shall be paid pursuant to a separate agreement with Sublandlord, the parties represent and warrant to each other that no brokers or agents have been involved on behalf of such party in connection with the consummation of the transactions contemplated by this Sublease. Sublandlord agrees to pay the commissions to Brokers pursuant to such separate agreement.

23.           Miscellaneous.

(a)    The terms, provisions, covenants and conditions contained in this Sublease shall apply to, inure to the benefit of; and be binding upon, the parties hereto and upon their respective heirs, legal representatives, successors, and permitted assigns, except as otherwise herein expressly provided.

(b)    The captions are inserted in this Sublease for convenience only and in no way define, limit, or described the scope or intent of this Sublease, or any provision hereof, nor in any way affect the interpretation of this Sublease.

(c)    Subtenant agrees, within ten (10) days after request of Sublandlord, to deliver to Sublandlord, or Sublandlord's designee, an estoppel certificate stating that this Sublease is in full force and effect, the date to which rent has been paid, the unexpired term of this Sublease, and such other matters pertaining to this Sublease as may be reasonably requested by Sublandlord or Landlord.

 

  

SUBLEASE AGREEMENT - Page 12

  

 

(d)    This Sublease may not be altered, changed, or amended except by an instrument in writing signed by Sublandlord and Subtenant and consented to by Landlord.

(e)    Sublandlord reserves the right to amend the Lease. In the event Sublandlord amends the Lease after the execution of this Sublease, Subtenant will nevertheless be bound to Sublandlord by the terms and provisions of the Lease, as amended, unless the amendment alters the use or functionality of the Premises in the hands of the Subtenant in a material manner. If the amendment alters the use or functionality of the Premises in the hands of the Subtenant in a material manner, the Subtenant will not be bound by the amendment unless it has been approved by the Subtenant. Nothing contained herein shall amend or shall be construed or deemed to amend the Lease.

(f)    Notwithstanding any provision contained within this Sublease to the contrary, the liability of Sublandlord under this Sublease is expressly limited to Sublandlord’s interest in the Subleased Premises as it may be encumbered, and Subtenant agrees to look solely to Sublandlord’s interest in the Subleased Premises for recovery of any judgment against Sublandlord. Neither Sublandlord nor any party related to Sublandlord as officer, director, agent partner, lender or otherwise shall have any personal or corporate liability for any judgment or deficiency. Under no circumstances whatsoever shall Sublandlord or any such Sublandlord related party ever be liable hereunder for consequential damages or special damages. This section shall not limit any right of Subtenant to obtain specific performance of Sublandlord’s obligations hereunder.

(g)    Nothing contained in this Sublease will be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venture, or any association between Sublandlord and Subtenant, it being expressly understood and agreed that nothing contained in this Sublease will be deemed to create any relationship between Sublandlord and Subtenant other than the relationship of sublessor and sublessee.

(h)    Sub1andlord and its representatives will have the right, with reasonable notice, to enter upon the Subleased Premises for the purpose of examining and inspecting the same; provided, however this section will not be construed as imposing any obligation upon SublandJord to inspect the Subleased Premises.

24.           Consent of Landlord.  Sublandlord's obligations under this Sublease are conditioned upon Sublandlord obtaining the consent of Landlord to the subletting provided for hereunder (the "Landlord Consent"), and in the event that Sublandlord is unable to obtain such Landlord Consent within fifteen (15) days after execution of this Sublease by Sublandlord, Sublandlord shall be entitled to terminate this Sublease. Subtenant agrees to execute and deliver to Sublandlord within three (3) days of notice by Sublandlord such documents and information as are required to obtain the Landlord Consent.

25. Notices From Landlord. Sublandlord shall provide to Subtenant, in accordance with Section 21, all notices received from Landlord, including any notices of default.

 

 

  

SUBLEASE AGREEMENT - Page 13

  

EXECUTED as of the day and year first above written.

SUBLANDLORD:

AIR METHODS CORPORATION, a Delaware

corporation, successor by merger to OMNIFLIGHT

HELICOPTERS, INC., a Texas corporation

 

 

 

SUBTENANT:

Copsync,LLC.

 

 

 

 

  

SUBLEASE AGREEMENT - Page 14

  

 

CONSENT OF LANDLORD

Landlord consents to the subletting of the Subleased Premises in accordance with the terms and conditions of the Sublease.

LANDLORD:

ADDISON TOWER INVESTMENT COMPANY,

LLC, a Texas limited liability company

 

 

 

 

 

 

 

  

SUBLEASE AGREEMENT - Page 15

  

Exhibit A

 

 

Need copy of Master Lease

Need space plan of Premises

 

 

 

 

 

 

 

 

  

SUBLEASE AGREEMENT - Page 16

  

Exhibit B

Scope of Work:

Sublandlord will perform the following scope of work prior to the commencement of the sublease.

1)           Install new entrance door and frame in the exterior wall of the current "Publication" room that will open to the elevator lobby. Work opening to accept herculite door. Use building provided herculite door and add header with closer, lock and bottom pivot.

2)           Remove all screws, anchors and name plates and repair the wall surface and associated holes in all such places. Touch up I repaint walls as best as possible as there are a lot of walls that need to be painted from comer to corner and some entire rooms.

3)           Install Carpet and associated padding throughout the Records room. Carpet base on walls.

4)           Remove all furniture and trash from the Premises before the Commencement Date

5)           Professionally clean the entire Premises

 

 

 

 

 

  

SUBLEASE AGREEMENT - Page 17ex10-16.htm

Exhibit 10.16

 

FIRST AMENDMENT TO LEASE AGREEMENT

 This First Amendment to the Lease Agreement (“First Amendment”) is made and entered into effective as of June 17, 2014, by and between 1000 Walnut Limited (“Landlord”) and Copsync, Inc. (“Tenant”).

 

WITNESSETH:

 

RECITALS:

 

 A.       Landlord and Tenant previously entered into that certain Lease Agreement dated June 6, 2014 (“Lease”) by and between 1000 Walnut Limited (“Landlord”) and Copsync, Inc. (“Tenant”) covering approximately 2,491 rentable square feet known as Suite 150 in an office building located at 1000 N. Walnut Ave., New Braunfels, TX 78130 (the “Building”), which Lease and Amendment, as amended, are incorporated herein by this reference for all purposes.

 

 B.       Landlord and Tenant now desire to amend portions of the Lease, (i) to amend the Expiration Date.

 

AGREEMENT:

 

 IN CONSIDERATION OF THE PREMISES and the mutual agreements herein set forth and for other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

	1.	
Expiration Date: According to the Basic Terms in the Lease the Expiration Date is fifty (50) months and twenty six (26) days from the Rent Commencement Date of June, 6 2014. The new and correct Expiration Date is August 31, 2018.

	 	 
	
2.

	
All other terms and conditions of the Lease Agreement dated June 6, 2014 and following amendments shall remain in full force and effect except as modified herein.

	 	 
	
3.

	
Tenant hereby covenants, represents and warrants to Landlord that:

 

	 	
a.

	
Tenant is solvent; that no bankruptcy or insolvency proceedings are pending or contemplated by or against Tenant; and that this Amendment is the legal, valid and binding obligation of Tenant enforceable against Tenant in accordance with its terms, except as enforceability hereof may be limited by bankruptcy, insolvency, reorganization or moratorium or other similar laws relating to Landlord’s rights and by general principles which may limit the right to obtain equitable remedies.

	 	 	 
	 	
b.

	
Except as expressly amended by this Amendment, the Lease is in all respects ratified and confirmed, and the terms, provisions, representations, warranties, covenants and conditions thereof shall be and remain in full force and effect.

	 	 	 
	 	
c.

	
The covenants, representations and warranties contained in the Lease are true and correct in all material respects on and as of the date hereof as though made on and as of this date, and Tenant is not in default in any manner under the Lease or under any document, writing or instrument executed in connection therewith or herewith.

	 	 	 
	 	
d.

	
All information, reports, statements and other data furnished by or on behalf of Tenant prior to, contemporaneously with, or subsequent to the execution of the Lease or this Amendment are and shall be true and correct and do not and shall not omit to state any fact or circumstance necessary to make the information contained therein or herewith not misleading.

 

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 1 of 2

 

  

  

  

 

	 	
e.

	
Tenant has no claims, demands, counterclaims, defenses, allowances, adjustments or offsets arising out of or in any way related to the Lease (as amended hereby) or arising out of any document, writing or instrument executed in connection therewith or herewith.

 

	
4.

	
This Amendment shall be binding upon the Landlord and Tenant and their respective heirs, legal representatives, successors and permitted assigns; (ii) may be renewed, modified or amended only by a writing signed by each party hereto; (iii) shall be governed by and construed in accordance with the laws of the State of Texas and the United States of America; (iv) may be executed in several counterparts and each counterpart when so executed and delivered shall constitute an original agreement, and all such separate counterparts shall constitute one and the same agreement; and (v) embodies the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements, consents and understandings relating to such subject matter. All capitalized terms used herein and not otherwise defined therein shall have the meanings ascribed to them in the Lease. The term “Lease” as used in the Lease or in any other instrument, document or writing executed in connection therewith or herewith shall mean the Lease as amended by this Amendment.

 

AGREED AND ACCEPTED THIS 17th DAY OF JUNE 2014.

 

	
LANDLORD:

	
1000 Walnut, Limited

	 	 
	
By:

	

	
 

	
Name:

	

Nick Tarantino, CCIM

	
 

	  	
 

	
 

	
Title:

	

Vice President

Tarantino Properties, Inc.

As Agent for Owner

	
 

	
 

	 	
 

	
TENANT:

	
Copsync, Inc.

	
 

	 	 	 
	
By:

	

	
 

	 	 	 
	
Name:

	Jay Greene	
 

	 	 	 
	
Title:

	V.P. of  Operations	
 

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 2 of 2

 

  

  

  

 

 

USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED.

©Texas Association of REALTORS®, Inc. 2014

	 	
 

 

	
1.

	
PARTIES: The parties to this lease are:

 

	 	Landlord:	1000 Walnut Limited	 	 
	 	 	 	; and	 
	 	 	 	 	 
	 	Tenant:	Copsync, Inc.	 	 
	 	 	 	 .	 

 

	
2.

	
LEASED PREMISES:

 

	 	
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 150                       containing approximately 2,491                                               square feet of rentable area in The Wells Fargo Building                                               (project name) at 1000 North Walnut Avenue                                                                                        (address) in New Braunfels                                              (city), Comal                                              (county), Texas, which is legally described on attached Exhibit                                            or as follows:

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
o

	
(2)

	
Single-Tenant Property:  The real property containing approximately _____________ square feet of rentable area at: _______________________________________ (address) in ______________________________________________ (city),________________(county), Texas, which is legally described on attached Exhibit ___________________ or as follows: _______________________________________________________________________________________________________________

	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	 	
B.

	
If Paragraph 2A(1) applies:

	 	 	
(1)

	
“Property” means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and

	 	 	
(2)

	
the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. The rentable area o will o will not   be adjusted if re-measured.

 

	
3.

	
TERM:

 

	 	
A.

	
Term: The term of this lease is 50                             months and 26                                       days, commencing on:

 

	 	 	 	June 6, 2014                                                                                              (Commencement Date) and ending on
	 	 	 	 
	 	 	 	August 31, 2017                                                                                       (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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 2 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	 	
C.

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

 

	
4.

	
RENT AND EXPENSES:

 

	 	
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:

 

	

Dates

	

Rates per rentable square foot (optional)

	

Base Monthly

	

From

	

To

	

$ Monthly Rate

	

$ Annual Rate

	 Rent $
	

6/6/2014

	

8/5/2014

	

/ rsf / month

	

$0      / rsf / year

	

FREE

	

8/6/2014

	

8/31/2015

	

/ rsf / month

	

$14     / rsf / year

	

$2,906.17

	

9/1/2015

	

8/31/2016

	

/ rsf / month

	

$15     / rsf / year

	

$3,113.75

	

9/1/2016

	

8/31/2017

	

/ rsf / month

	

$16     / rsf / year

	

$3,321.33

	

9/1/2017

	

8/31/2018

	

/ rsf / month

	

$17     / rsf / year

	

$3,528.92

 

	 	
B.

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

	 	
x

	
(1)

	
Commercial Lease Addendum for Expense Reimbursement (TAR-2103)

	 	
o

	
(2)

	
Commercial Lease Addendum for Percentage Rent (TAR-2106)

	 	
o

	
(3)

	
Commercial Lease Addendum for Parking (TAR-2107)

	 	
o

	
(4)

	
 

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

 

	 	
C.

	First Full Month’s Rent: The first full monthly rent is due on or before	
lease execution

	 	 	 
	 	 	 
	 	
D.

	
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.

	 	 	 
	 	
E.

	
Place of Payment: Tenant will remit all amounts due to 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:

 

	 	
Name:

	
c/o Tarantino Properties, Inc.

	 	
Address:

	
502 E. 11th Street, Suite 400

	 	 	Austin, TX 78701

 

	 	
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 institution 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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 3 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	 	
G.

	
Late Charges: If Landlord does not actually receive a rent payment at the designated place of payment within 5 days after the date it is due, Tenant will pay Landlord a late charge equal to 10% of the amount due. In this paragraph, 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 right to exercise remedies under Paragraph 20.

	 	 	 
	 	
H.

	
Returned Checks: Tenant will pay $                    25.00 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:

 

	 	
A.

	
Upon execution of this lease, Tenant will pay $                                               3,528.92 to Landlord as a security deposit.

	 	 	 
	 	
B.

	
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.

	 	 	 
	 	
C.

	
Within 60 days after Tenant surrenders the leased premises and provides Landlord written notice of Tenant’s forwarding address, Landlord will refund the security deposit less any amounts applied toward amounts owed by Tenant or other charges authorized by this lease.

 

	
6.

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

	 	 
	
7.

	
UTILITIES:

 

	 	
A.

	
The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.)

	  	

N/A

	

Landlord

	

Tenant

	 	

(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) Internet

	

o

	

o

	

x

	 	

(7) Cable

	

o

	

o

	

x

	 	

(8) Trash

	

o

	

x

	

o

	 	

(9) __________________________________________________

	

x

	

o

	

o

	 	

(10) 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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 4 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	 	
C.

	
Notice: Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant’s intended use.

	 	 	 
	 	
D.

	
After-Hours HVAC Charges: “HVAC services” mean heating, ventilating, and air conditioning of the leased premises. (Check one box only.)

 

	 	

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)

	
 Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C for no additional charge and will, at Tenant’s request, provide HVAC services to the leased premises during other hours for an additional charge of $ _____________ per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord’s invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be rounded up to the next half hour. Tenant will comply with Landlord’s procedures to make a request to provide the additional HVAC services under this paragraph.

	 	 	 	 
	 	

o

	
(3)

	
Tenant will pay for the HVAC services under this lease.

 

	
8.

	
INSURANCE:

 

	 	
A.

	
During all times this lease is in effect, Tenant must, at Tenant’s expense, maintain in full force and effect from an insurer authorized to operate in Texas:

	  	
(1)

	
public liability insurance naming Landlord as an additional insured with policy limits on an occurrence basis in a minimum amount of: (check only (a) or (b) below)

	  	

x

	
(a) $1,000,000; or

	  	

o

	
(b) $2,000,000.

	  	  	

If neither box is checked the minimum amount will be $1,000,000.

	 	
(2)

	
personal property damage insurance for the business operations being conducted in the leased premises and contents in the leased premises in an amount sufficient to replace such contents after a casualty loss; and

	 	

o

	
(3)

	
business interruption insurance sufficient to pay 12 months of rent payments;

 

	 	
B.

	
Before the Commencement Date, Tenant must provide Landlord with a copy of insurance certificates evidencing the required coverage. If the insurance coverage is renewed or changes in any manner or degree at any time this lease is in effect, Tenant must, not later than 10 days after the renewal or change, provide Landlord a copy of an insurance certificate evidencing the renewal or 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 insurance that will provide Landlord the same coverage as the required insurance and Tenant must immediately reimburse Landlord for such expense; or

	 	
(2)

	
exercise Landlord’s remedies under Paragraph 20.

 

	 	
D.

	
Unless the parties agree otherwise, Landlord will maintain in full force and effect insurance for: (1) fire and extended coverage in an amount to cover the reasonable replacement cost of the improvements of the Property; and (2) any public liability insurance in an amount that Landlord determines reasonable and appropriate.

	 	 	 
	 	
E.

	
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. Any charge to Tenant under this Paragraph 8E will be equal to the actual amount of the increase in Landlord’s insurance premium.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 5 of 15 

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	
9.

	
USE AND HOURS:

 

	 	
A.

	Tenant may use the leased premises for the following purpose and no other:	
General Office

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
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 - Friday 7:30 am - 6:00 pm, Saturday 10:00 am - 3:00 pm. Tenant shall have twenty four (24) hour access to the Leased Premises. HVAC services are only provided during building hours as defined above                          

 

	
10.

	
LEGAL COMPLIANCE:

 

	 	
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 dangerous;

	 	
(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)

	
any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance;

	 	
(5)

	
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;

	 	
(6)

	
the permanent or temporary storage of any hazardous material; or

	 	
(7)

	
 

	 	 	 

 

	 	
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.

	
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.

 

	
11.

	
 SIGNS:

 

	 	
A.

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

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 6 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
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 or decorations that were placed on the Property or leased premises by or at the request of Tenant. Any signs or decorations 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 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 120           days of this lease, Landlord may place a “For Lease” or similarly worded sign on the leased premises.

 

	
13.

	
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 or in an addendum. Landlord and any agent have made no express or implied warranties as to the condition or permitted use of the leased premises or Property.

	 	 
	
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, 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.

 

	
15.

	
MAINTENANCE AND REPAIRS:

 

	 	
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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 7 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
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 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.)

 

	  	  	
N/A

	
Landlord

	
Tenant

	  	
(1)     Foundation, exterior walls, roof, and other structural components 

	
o

	
x

	

o

	  	
(2)     Glass and windows 

	

o

	

x

	

o

	  	
(3)     Fire protection equipment 

	o	
x

	

o

	  	
(4)     Fire sprinkler systems 

	

o

	

x

	

o

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

	

o

	

x

	

o

	  	
(6)     Grounds maintenance, including landscaping and irrigation systems 

	

o

	

x

	

o

	  	
(7)     Interior doors, including closure devices, frames, molding, locks, and hardware 

	

o

	

x

	

o

	  	
(8)     Parking areas and walks 

	

o

	

x

	

o

	  	
(9)     Plumbing systems, drainage systems and sump pumps 

	

o

	

x

	

o

	  	
(10)   Electrical systems, mechanical systems 

	

o

	

x

	

o

	  	
(11)   Ballast and lamp replacement 

	

x

	

o

	

o

	  	
(12)   Heating, Ventilation and Air Conditioning (HVAC) systems 

	

o

	

x

	

o

	  	
(13)   HVAC system replacement 

	

o

	

x

	

o

	  	
(14)   Signs and lighting: 

	

 

	

 

	  

	  	
(a)     Pylon

	

x

	

o

	

o

	  	
(b)     Facia 

	

x

	

o

	

o

	  	
(c)     Monument 

	

o

	

o

	

x

	  	
(d)     Door/Suite 

	

o

	

x

	

o

	  	(e)     Other: 	 	
 

	

x

	

o

	

o

	  	
(15)   Extermination and pest control, excluding wood-destroying insects 

	

o

	

x

	

o

	 	(16)   Fences and Gates	

x

	o	o
	  	
(17)   Storage yards and storage buildings 

	

x

	

o

	

o

	  	
(18)   Wood-destroying insect treatment and repairs 

	

o

	

x

	

o

	  	
(19)   Cranes and related systems 

	

x

	

o

	

o

	  	
(20)   

	 	
 

	  	

o

	

o

	  	
(21)   

	 	
 

	  	

o

	

o

	  	
(22)   All other items and systems 

	  	

o

	

o

 

	 	
D.

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

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 8 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
E.

	
HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C( 12), 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 Tenant will reimburse Landlord for the expense of such maintenance and service contract or Landlord may 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 regulations. 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.

	 	 	 
	  	
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 (including making any penetrations to the roof, exterior walls or foundation), 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.

 

	
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 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.

	 	 
	
18.

	
LIABILITY: To the extent permitted by law. Landlord is NOT responsible to Tenant or Tenant’s employees, patrons, quests, or invitees for any damages, injuries or losses to person or property caused by:

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 9 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
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, terrorism, vandalism, other persons, environmental contaminants, or other occurrences or casualty losses.

 

	
19.

	
INDEMNITY: Each party will indemnify, defend, and hold the other party 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 that party or that party’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 be in default if the cure is commenced within the 30-day period and is diligently pursued.

	 	 	 
	  	
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, with at least 3 days written notice to Tenant: (i) terminate this lease, or (ii) terminate Tenant’s right to occupy the leased premises without terminating this lease and may accelerate all rents which are payable during the remainder of this lease or any renewal period. 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 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 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; and

	  	
(9)

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

 

	
21.

	
ABANDONMENT, INTERRUPTION OF UTILTIES, REMOVAL OF 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 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 150% of 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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 10 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	
23.

	
LANDLORD’S LIEN AND SECURITY INTEREST: To secure Tenants 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 on the Property. This lease is a security agreement for the purposes of the Uniform Commercial Code. Landlord may file a financing statement to perfect Landlord’s security interest under the Uniform Commercial Code.

	 	 
	
24.

	
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.

	 	 
	
25.

	
 RELOCATION:

 

	
x

	
 A.

	
By providing Tenant with no less than 90 days advanced written notice, Landlord may require Tenant to relocate to another location in the Property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements. Landlord will pay Tenant’s reasonable out-of-pocket moving expenses for moving to the other location. “Moving expenses” means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees, wiring companies for connecting and disconnecting Tenant’s office equipment required by the relocation, and printing companies for reprinting Tenant’s stationary and business cards. A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or unit number will automatically be amended.

	 	 	 
	

o

	
B.

	
Landlord may not require Tenant to relocate to another location in the Property without Tenant’s prior consent.

 

	
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 that Landlord authorizes;

	  	
(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 a subordination, attornment, and non-disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition that this lease and Tenant’s rights under this lease are recognized by the lien-holder.

 

	
27.

	
ESTOPPEL CERTIFICATES & FINANCIAL INFORMATION:

 

	 	
A.

	
Within 10 days after receipt of a written request from Landlord, Tenant will execute and deliver to Landlord an estoppel certificate that identifies the terms and conditions of this lease.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 11 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
B.

	
Within 30 days after receipt of a written request from Landlord, Tenant will provide to Landlord Tenant’s current financial information (balance sheet and income statement). Landlord may request the financial information no more frequently than once every 12 months.

 

	
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 premises 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 or Property are partially unusable for the purposes of 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:

 

	  	
A.

	
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 this lease. If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default.

	 	 	 
	  	
B.

	
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:

	 	 	 

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 12of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	 	
C.

	
Each party and each signatory to this lease represents that: (1) it is not a person named as a Specially Designated National and Blocked Person as defined in Presidential Executive Order 13224; (2) it is not acting, directly or indirectly, for or on behalf of a Specially Designated and Blocked Person; and (3) is not arranging or facilitating this lease or any transaction related to this lease for a Specially Designated and Blocked Person. Any party or any signatory to this lease who is a Specially Designated and Blocked person will indemnify and hold harmless any other person who relies on this representation and who suffers any claim, damage, loss, liability or expense as a result of this representation.

 

	
32.

	
BROKERS:

 

	 	
A.

	
The brokers to this lease are:

 

	  	
Principal Broker:

	
Tarantino Properties, Inc

	  	
Cooperating Broker:

	
Sperry Van Ness-Norris Commercial Group IIc

	  	  	  	  
	 	 	 	 	 	 
	  	
Agent:

	
Sean Gildea

	  	
Agent:

	
Scott Forester

	 	 	 	 	 	 
	  	
Address:

	
502 E 11th Street, Suite400

	  	
Address:

	
373 S. Seguin Avenue

	  	  	
Austin, TX 78701

	  	  	
New Braunfels, TX 78130

	 	 	 	 	 	 
	  	
Phone & Fax:

	
512-302-4500

	  	
Phone & Fax:

	
830-358-7000

	 	 	 	 	 	 
	  	
E-mail:

	
sgildea@tarantino.com

	  	
E-mail:

	
scott.forester@svn.com

	 	 	 	 	 	 
	  	
License No.:

	
411489

	  	
License No.:

	  
	 	 	 	 	 	 
	 	Principal Broker: (Check only one box)	 	 Cooperating Broker represents Tenant.

 

	 	x	represents Landlord only.
	 	o	represents Tenant only.
	 	o	is an intermediary between Landlord and Tenant.

 

	 	
B.

	
Fees:

            

	x	
(1)

	Principal Broker’s fee will be paid according to: (Check only one box).
	 	o	(a)	a separate written commission agreement between Principal Broker and:
	 	 	 	o Landlord    o Tenant.
	 	x	(b)	the attached Commercial Lease Addendum for Broker’s Fee (TAR-2102).
	 	 	 	 
	x	(2)	Cooperating Broker’s fee will be paid according to: (Check only one box).
	 	o	(a)	a separate written commission agreement between Cooperating Broker and:
	 	 	 	o Principal Broker   o Landlord    o Tenant.
	 	x	(b)	the attached Commercial Lease Addendum for Broker’s Fee (TAR-2102).

 

	
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.

	
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:

 

	 	Landlord at:	 	c/o Tarantino Properties, Inc.
	 	 	 	Address:	
 502 E. 11th Street, Suite 400 Austin, TX 78701

	 	 	 	 

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 13 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	 	Phone:	512-302-4500	 	Fax:	512-302-4109	 	 
	and a copy to:	 	 	 	 
	 	Address:	 	 	 	 	 
	 	Phone: 	 	 	Fax:	 	 	 

 

	
o   Landlord also consents to receive notices by e-mail at:

	 

 

Tenant at the leased premises,

 

	and a copy to:	 	 	 
	 	Address:	 	 	 	 
	 	Phone: 	 	 	Fax:	 	 

 

	
o   Tenant also consents to receive notices by e-mail at:

	 	 

 

	
35.

	
SPECIAL PROVISIONS:

 

	 	
A.

	
Landlord shall deliver the space to Tenant in “AS-IS”, “where is” condition and with all faults.

	 	
B.

	
Landlord at Landlord’s sole cost shall steam clean the carpets prior to Tenant’s Possession.

	 	
C.

	
Landlord at Landlord’s sole cost shall install building standard signage at the entrance to the Leased Premises and the lobby directory.

	 	
D.

	
Tenant shall have the right to periodically complete routine maintenance and installation of computer systems in law enforcement vehicles. Periodically shall be defined as no more than two (2) times per every calendar month. Tenant’s maintenance and installation activities shall not interfere with existing Tenants at the property and shall be done in the area outlined in Exhibit C. Vehicles shall not be stored overnight at the property and must be in good, working, and driveable condition. Landlord reserves the right to restrict or stop installation and/or maintenance by Tenant at the property at any time.

 

	
36.

	
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.

 

	(TAR-2101) 4-1-14	Initialed for Identification by Landlord:		 ,___________	, and Tenant:		 ,____________	Page 14 of 15

 

  

  

  

 

	Commercial Lease concerning:	 	1000 North Walnut Avenue #150                                                              New Braunfels                                                     TX                                          78130                                          

 

	  	
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 material 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.

	 	 	 
	  	
I.

	Time: Time is of the essence. The parties require strict compliance with the times for perfomance.

 

Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections. The parties should seek experts to render such services. READ THIS LEASE CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFORE signing.

 

	
Landlord:

	
1000 Walnut Limited

	  	
Tenant:

	
CoPSync, Inc.

	 	  	 

 

	By:		 	
By:

	 

 

	 	
By (signature):

	  	  	
By (signature):

	
	  	
Printed Name:

	
John C. Lewis

	 	
Printed Name:

	
Jay Greene

 

	 	
Title:

	
Date:

	 	
Title:

	V.P. of Operations	
 

	
Date:

	
5/29/2014

 

	By:	  	 	
By:

	 

 

	 	
By (signature):

	  	  	
By (signature):

	 
	  	
Printed Name:

	
 

	  	
Printed Name:

	
 

 

	 	
Title:

	
Date:

	  	
Title:

	 	
 

	
Date:

	
 

 

 

	(TAR-2101) 4-1-14	 	 	 	 	Page 15 of 15

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