Document:

EXHIBIT 10.14

 

TEXAS ASSOCIATION OF
RELATORS®

 

COMMERCIAL CONTRACT – IMPROVED PROPERTY

 

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

 

®TEXAS
ASSOCIATION OF REALTORS, INC. 2002

 

1.     PARTIES: 
Seller agrees to sell and convey to Buyer the Property described in
Paragraph 2. Buyer agrees to buy the Property from Seller for the sales price
stated in Paragraph 3. The parties to this contract are:

 

	
  Seller:  American Medical Technologies Inc., a
  Delaware Corp.

  
	
   

  
	
  Address:  5655 Bear Lane,
  Corpus Christi, Texas 78405

  
	
   

  
	
  Phone:  361-289-1145

  	
  Fax:  361-289-2681

  
	
   

  
	
   

  
	
  Buyer:  The Sepulveda Group,
  LLC or its assignee

  
	
   

  
	
  Address: c/o Spectrum Dental Inc., 8550 Higuera St. Culver City, CA
  90232

  
	
   

  
	
  Phone:  310-826-6688

  	
  Fax:  310-826-4346

  

 

2.     PROPERTY:

 

A.    “Property” means that real property situated
in Nueces County, Texas at 5655 Bear Lane, Corpus Christi, Texas 78405 (address) and that is legally described on
the attached Exhibit “A” also as follows: 
The real property and improvements owned by Seller located at 5655 Bear
Lane, Corpus Christi, Texas 78405, including as may be described more
fully in Exhibit “A”, attached hereto, and all rights and obligations
appurtenant thereto from and after Closing.

 

B.     Seller will sell and convey the Property
together with:

(1)   all buildings, improvements, and fixtures;

(2)   all rights, privileges, and appurtenances
pertaining to the Property, including Seller’s right, title, and interest in
any minerals, utilities, adjacent streets, alleys, strips, gores,  and rights-of-way;

(3)   Seller’s interest in all leases, rents, and
security deposits for all or part of the Property;

(4)   Seller’s interest in all licenses and permits
related to the Property;

(5)   Seller’s interest in all third party
warranties or guaranties, if transferable, relating to the Property or any
fixtures

 

(Describe any exceptions, reservations, or
restrictions in Paragraph 11 or an addendum.)

 

(If the Property is a condominium, attach
condominium addendum.)

 

 

3.     SALES PRICE:  At
or before closing, Buyer will pay the following sales price for the Property:

 

A.    Cash portion payable by Buyer at closing $1,900,000.00

 

B.     Sum of all financing described in Paragraph
4. $                   

 

C.     Sales price (sum of 3A and 3B). $1,900,000.00

 

4.     FINANCING: 
Buyer will finance the portion of the sales price under Paragraph 3B as
follows:

 

o            A. Third Party Financings:  One or more third party loans in the total
amount of $                     .
This contract:

o    (1) is not contingent upon Buyer
obtaining third party financing.

o    (2) is contingent upon Buyer obtaining
third party financing in accordance with the attached Financing Addendum.

 

o    B. Assumption:  In accordance with the attached Financing
Addendum, Buyer will assume the existing promissory note secured by the
Property, which balance at closing will be $                            .

 

o    C. Seller Financing:  The delivery of a promissory note and deed of
trust from Buyer to Seller under the terms of the attached Financing Addendum
in the amount of $                                  .

 

5.     EARNEST MONEY:  N/A

 

6.     TITLE POLICY, SURVEY, AND
UCC SEARCH:

 

A.    Title Policy:

 

(1)   Seller, at Seller’s expense, will furnish
Buyer an Owner’s Policy of Title Insurance (the title policy) issued by Stewart
title Guaranty Company in the amount of the sales price, dated at or after
closing, insuring Buyer against loss under the title policy, subject only to:

(a)   those title exceptions permitted by this
contract or as may be approved by Buyer in writing; and

(b)   the standard printed exceptions contained in
the promulgated form of title policy unless this contract provides
otherwise.

 

(2)   The standard printed exception as to
discrepancies, conflicts, or shortages in area and boundary lines, or any
encroachments or protrusions, or any overlapping improvements:

o   (a)    will not be amended or deleted from the title
policy.

ý   (b)    will be amended to read “shortages in areas”
at the expense of o Buyer ý Seller.

 

 

(3)   Buyer may object to any restrictive
covenants on the Property within the time required under Paragraph 6D.

 

(4)   Within 10 days after the effective date,
Seller will furnish Buyer a commitment for title insurance (the commitment)
including legible copies of recorded documents evidencing title exceptions. Seller
authorizes the title company to deliver the commitment and related documents to
Buyer at Buyer’s address.

 

B.     Survey:

 

(1)   Within 2 days after the effective date:

 

o  (a) Buyer will obtain a survey of the
Property at Buyer’s expense and deliver a copy of the survey to Seller.

 

o  (b) Seller, at Seller’s expense, will
furnish Buyer a survey of the Property dated after the effective date.

 

ý  (c) Seller
will deliver a true and correct copy of Seller’s existing survey of the
Property dated 2/11/05. Seller, at Seller’s expense:

 

o  (i) 
will have the existing survey recertified on a date not earlier than                    .

 

ý  (ii) will not have the existing survey
recertified. Seller ý
will o will not deliver to                       the
title company an affidavit required by the title company for approval of the
survey that states that Seller knows of no changes or alterations to the
Property as depicted on the survey.

 

(2)   The survey required under Paragraph 6B(1) must
be made by a Registered Professional Land Surveyor acceptable to the title
company. The survey must:

(a)   identify the Property by metes and bounds or
platted lot description;

(b)   show that the survey was made and staked on
the ground with corners permanently marked;

(c)   set forth the dimensions and total area of
the Property;

(d)   show the location of all improvements,
highways, streets, roads, railroads, rivers, creeks or other waterways, fences,
easements, and rights-of-way on the Property with all easements and rights-of-way
referenced to their recording information;

(e)   show any discrepancies or conflicts in
boundaries, any visible encroachments, and any portion of the Property lying in
a special flood hazard area (an “A” or “V” zone as shown on the current Federal
Emergency Management Agency (FEMA) flood insurance rate map); and

(f)    contain the surveyor’s certificate that the
survey is true and correct.

 

 

C.     UCC Search:

 

o  (1) Within
            days after
the effective date, Seller, at Seller’s expense, will furnish Buyer a Uniform Commercial
Code (UCC) search prepared by a reporting service and dated after the effective
date. The search must identify documents that are on file with the Texas
Secretary of State and the country where the Property is located that relate to
all personal property on the Property and show, as debtor, Seller and all other
owners of the personal property in the last 5 years.

 

ý  (2)  Buyer does not require Seller to
furnish a UCC search.

 

D.    Buyer’s Objections to the Commitments,
Survey, and UCC Search:

 

(1)   Within 10 days after Buyer receives the
commitment, legible copies of the documents evidencing title exceptions, any
required survey, and any required UCC search, Buyer may object to matters
disclosed in the items if:

(a)   the matters disclosed constitute a defect or
encumbrance to title to the real or personal property described in Paragraph 2
other than those permitted by this contract or liens that Seller will satisfy
at closing or Buyer will assume at closing; or

(b)   the items show that any part of the
Property lies in a special flood hazard area (an “A” or “V” zone as defined by
FEMA);

 

(2)   Seller may, but is not obligated to, cure
Buyer’s timely objections within 20 days after Seller receives the objections. The
closing date will be extended as necessary to cure the objections. If Seller
fails to cure the objections by the time required, Buyer may terminate
this contract by providing written notice to Seller within 5 days after the
time by which Seller must cure the objections. If Buyer terminates, the earnest
money, less any independent consideration under Paragraph 7B(3)(a), will be
refunded to Buyer.

 

(3)   Buyer’s failure to timely object or terminate
under this Paragraph 6D is a waiver of Buyer’s right to object except that
Buyer will not waive the requirements in Schedule C of the commitment.

 

7.     PROPERTY CONDITION:

 

ý  A. Present Condition:  (Check (1) or (2) only.)

 

ý (1) 
Buyer accepts the Property in its present “as-is” condition, subject to representations
and warranties made by Seller herein

 

o  (2) 
Buyer accepts the Property in its present condition except that Seller, at
Seller’s expense, will complete the following before closing: 

 

 

 

 

o  B. Feasibility:

 

(1)           Delivery of Property Information: 
Within 15 days after the effective date, Seller will deliver to Buyer
the following items to the extent that the items are in Seller’s possession or
are readily available to Seller. Any item not delivered is deemed not to be in
Seller’s possession or readily available to Seller. The items Seller will
deliver are:

 

o (a) 
a current rent roll of all leases affecting the Property certified by Seller as
true and correct;

 

o (b) 
copies of all current leases pertaining to the Property, including any
modifications, supplements, or amendments to the leases;

 

o (c)  a current inventory of all
personal property to be conveyed under this contract;

 

o (d) 
copies of all notes and deeds of trust against the Property that Buyer will
assume or that Seller will not pay in full on or before closing;

 

ý  (e)  copies of all current service,
maintenance, and management agreements relating to the ownership and operation
of the Property

 

ý (f) 
copies of current utility capacity letters from the Property’s water and sewer
service provider;

 

ý (g)  copies of all current warranties
and guaranties relating to all or part of the Property;

 

ý (h) 
copies of fire, hazard, liability, and other insurance policies that currently
relate to the Property;

 

o (i) 
copies of all leasing or commission agreements that currently relate to all or part of
the Property;

 

ý (j)  a
copy of the “as-built” plans and specifications and plat of the Property;

 

ý (k)
copies of all invoices for utilities and repairs incurred by Seller for the
Property in the 24 months immediately preceding the effective date;

 

o
(l)  a copy of Seller’s income and
expense statement for the Property from                            
to                           .

 

ý (m)  copies of all previous environmental
assessments, studies, or analyses made on or relating to the Property;

 

ý (n)  real and personal property tax statements for
the Property for the previous 2 calendar years; and

 

o (o)                                                                                                                                                                               
                                                                                                                                                                                        
                                                                                                                                                                                        

 

 

(2)           Inspections, Studies, or Assessments:

 

(a)   Within 15 days after the effective date,
Buyer, at Buyer’s expense, may complete or cause to be completed
inspections, studies, or assessments of the Property, including all
improvements and fixtures. Inspections, studies, or assessments may include,
but are not limited to:

(i)    physical property inspections (for example,
structural pest control, mechanical, structural, electrical, and plumbing
inspections);

(ii)   economic feasibility studies;

(iii)  environmental assessments (for example, soil
tests, air sampling, and paint sampling);

(iv)  engineering studies; and

(v)   compliance inspections (for example,
compliance determination with zoning ordinances, restrictions, building codes,
and statutes).

 

(b)   Seller, at Seller’s expense, will turn on all
utilities necessary for Buyer to make inspections, studies or assessments.

 

(c)   Buyer must:

(i)    employ only trained and qualified inspectors
and assessors;

(ii)   notify Seller, in advance, of when the
inspectors or assessors will be on the Property;

(iii)  abide by any reasonable entry rules or
requirements that Seller may require;

(iv)  not interfere with existing operations or
occupants of the Property; and

(v)   restore the Property to its original
condition if altered due to inspections, studies, or assessments that Buyer
completes or causes to be completed.

 

(d)   Except for those matters that arise from the
negligence of Seller or Seller’s agents, Buyer is responsible for any claim,
liability, encumbrance, cause of action, and expense resulting from Buyer’s
inspections, studies, or assessments, including any property damage or personal
injury. Buyer will indemnify, hold harmless, and defend Seller and Seller’s
agents against any claim involving a matter for which Buyer is responsible
under this paragraph. This paragraph survives termination of this contract.

 

(3)          Feasibility
Period and Right to Terminate:  Buyer may terminate this contract for
any reason within 20 days after the effective date by providing Seller with
written notice of termination. If Buyer does not terminate within the time
required, Buyer accepts the Property in its
present “as is” condition with any repairs Seller is obligated to
complete under this contract. (Check only
one box.)

 

o            (a)  if Buyer terminates under the
Paragraph 7B(3), the earnest money will be refunded to Buyer less $               
that Seller will retain as independent consideration for Buyer’s right to
terminate. Buyer has tendered the independent consideration to Seller upon
payment of the full amount specified in Paragraph 5 to the escrow agent. The
independent consideration is to be credited to the sales price only upon
closing of the sale.

 

ý            (b)  Buyer has paid Seller $1.00 as
independent consideration for Buyer’s right to terminate by tendering such
amount directly to Seller or Seller’s agent. If Buyer terminates under this
Paragraph 7B(3), the earnest money will be refunded to Buyer and Seller will
retain the independent consideration. The independent consideration o will ý will not be credited to the sales price upon
closing of the sale.

 

 

(4)           Return of Property Information:  If
this contract terminates for any reason, Buyer will, not later than 10 days
after the termination date: (i)  return to Seller all those items
described in Paragraph 7B(1) that Seller delivered to Buyer and all copies
that Buyer made of those items; and (ii) deliver copies of all inspection
and assessment reports (excluding economic feasibility studies) related to the
Property that Buyer completed or caused to be completed. This Paragraph 7B(4) survives
termination of this contract.

 

(5)           Contracts Affecting Operations:  From
and after the effective date hereof Seller may not enter into, amend, or
terminate any other contract that affects the operations of the Property
without Buyer’s prior written approval.

 

8.     BROKERS:  N/A

 

9.     CLOSING:

 

A.    Provided Buyer has not terminated this
agreement, the closing of the sale will be concurrent with, and dependent, on
the closing of Seller’s acquisition of Spectrum Dental, Inc., which
closings shall not occur until all conditions to Buyers obligations to close
have been met or waived by Buyer or within 7 days after objections to title
have been cured, whichever date is later (the closing date). If either party
fails to close by the closing date, the non-defaulting party may exercise
the remedies in Paragraph 15.

 

B. At closing, Seller will execute and deliver, at Seller’s expense, a o general ý special warranty deed. The deed must include
a vendor’s lien if any part of the sales price is financed. The deed must
convey good and indefeasible title to the Property and show no exceptions other
than those permitted under Paragraph 6 or other provisions of this contract. Seller
must convey the Property at closing;

 

(1)   with no liens, assessments, or Uniform Commercial
Code or other security interests against the Property which will not be
satisfied out of the sales price; and

(2)   with no persons in possession of any part of
the Property as lessees, tenants at sufferance, or trespassers except for
Seller, pursuant to a written lease between Buyer and Seller, a copy of which
is attached hereto as Addendum One (“Lease”)

 

C.    At closing, Seller, at Seller’s expense, will also deliver:

(1)   tax statements showing no delinquent taxes on
the Property;

(2)   a bill of sale with warranties to title
conveying title, free and clear of all liens, to any personal property defined
as part of the Property in Paragraph 2 or sold under this contract;

(3)   an assignment of all leases to or on the
Property;

(4)   to the extent that the following items are
assignable, an assignment to Buyer of the following items as they relate to the
Property or its operations:

(a)   licenses and permits;

(b)   maintenance, management, and other contracts;
and

(c)   warranties, and guaranties;

(5)   a rent roll current on the day of the closing
certified by Seller as true and correct;

(6)   evidence that the person executing this
contract is legally capable and authorized to bind Seller; and

(7)   any notices, statements, certificates,
affidavits, releases, and other documents required by this contract, the
commitment, or law necessary for the closing of the sale and the issuance of
the title policy, all of which must be completed and executed by Seller as
necessary.

 

 

D.    At closing, Buyer will:

(1)   pay the sales price in good funds acceptable
to the escrow agent;

(2)   deliver evidence that the person executing
this contract is legally capable and authorized to bind Buyer;

(3)   execute and deliver any notices, statements,
certificates, or other documents required by this contract or law necessary to
close the sale.

 

E.     Unless the parties agree otherwise, the
closing documents will be found in the basic forms in the current edition of
the State Bar of Texas Real Estate Forms Manual without any additional clauses.

 

10.   POSSESSION: 
Seller will deliver possession of the Property to Buyer upon closing and
funding of this sale in its present condition with any repairs Seller is
obligated to complete under this contract, ordinary wear and tear excepted. Until
closing, Seller will operate the Property in the same manner as on the effective
date and will not transfer or dispose of any of the personal property described
in Paragraph 2B or sold under this contract. Any possession by Buyer before
closing or by Seller after closing that is not authorized by a separate written
lease agreement is a landlord-tenant at sufferance relationship between the
parties.

 

11.   SPECIAL PROVISIONS:  (Identify exhibit if special provisions are
contained in an attachment.)

 

(1)   Lease required to be executed at closing

(2)   Closing, and this transaction conditioned on
concurrent, back to back closing of Seller’s acquisition of Spectrum Dental
Inc. in its 100% stock acquisition

 

12.   SALES EXPENSES:

 

A.    Seller’s Expenses: 
Seller will pay for the following at or before closing:

(1)   releases of existing liens, other than those
liens assumed by Buyer, including prepayment penalties and recording fees;

(2)   release of Seller’s loan liability, if
applicable;

(3)   tax statements or certificates;

(4)   preparation of the deed and any bill of sale;

(5)   one-half of any escrow fee;

(6)   costs to record any documents to cure title
objections that Seller must cure; and

(7)   other expenses that Seller will pay under
other provisions of this contract.

(8)   The cost of Buyer’s owner title policy

(9)   Per the Lease, the fixed rent for the pro-rata
portion of the month of closing and first full calendar month thereafter.

 

B.     Buyer’s Expenses: 
Buyer will pay for the following at or before closing:

(1)   all loan expenses (for example, application
fees, origination fees, discount fees, buy-down fees, commitment fees,
appraisal fees, assumption fees, recording fees, tax service fees, mortgagee
title policy expenses, credit report fees, document preparation fees, interest
expense that Buyer’s lender requires Buyer to pay at closing, loan related inspection
fees, amortization schedule fees, courier fees, underwriting fees, wire
transfer fees, and other fees required by Buyer’s lender);

(2)   preparation fees of any deed of trust;

(3)   recording fees for the deed and any deed of
trust;

(4)   premiums for flood and hazard insurance as may be
required by Buyer’s lender;

(5)   one-half of any escrow fee;

 

 

(6)   copy and delivery fees for delivery of the
title commitment and related documents; and

(7)   other expenses that Buyer will pay under
other provisions of this contract.

 

13.   PRORATIONS, ROLLBACK TAXES,
ESTOPPEL CERTIFICATES, RENT AND DEPOSITS:  N/A

 

B. Rollback Taxes:  If
Seller changes the use of the Property before closing or if a denial of a
special valuation on the Property claimed by Seller results in the assessment
of additional taxes, penalties, or interest (assessments) for periods before
closing, the assessments will be the obligation of Seller. If this sale or
Buyer’s use of the Property after closing results in additional assessments for
periods before closing, the assessments will be the obligation of Buyer. This
Paragraph 13B survives closing.

 

14.   CASUALTY LOSS AND
CONDEMNATION:

 

A.    If any part of the Property is damaged
or destroyed by fire or other casualty after the effective date, Seller must
restore the Property to its previous condition as soon as reasonably possible
and not later than the closing date. If , without fault, Seller is unable to do
so, Buyer may:

(1)   terminate this contract and the earnest
money, less any independent consideration under Paragraph 7B(3)(a), will be
refunded to Buyer;

(2)   extend the time for performance up to 15 days
and the closing date will be extended as necessary; or

(3)   accept at closing:  (i) the Property in its damaged
condition; (ii) an assignment of any insurance proceeds Seller is entitled
to receive along with the insurer’s consent to the assignment; and (iii) a
credit to the sales price in the amount of any unpaid deductible under the
policy for the loss.

 

B.     If before closing, condemnation proceedings are
commenced against any part of the Property, Buyer may:

(1)   terminate this contract by providing written
notice to Seller within 15 days after Buyer is advised of the condemnation
proceedings and the earnest money, less any independent consideration under
Paragraph 7B(3)(a), will be refunded to Buyer; or

(2)   appear and defend the condemnation
proceedings and any award will, at Buyer’s election, belong to:

(a)   Seller and the sales price will be reduced by
the same amount; or

(b)   Buyer and the sales price will not be
reduced.

 

15.   DEFAULT:

 

A.    If Buyer fails to comply with this contract,
Buyer is in default and Seller may:

(1)   terminate this contract in which case Buyer
and Seller shall have no further obligations, except for those herein, which
expressly survive termination, of this Agreement

 

B.     If, without fault, Seller is unable within
the time allowed to deliver the commitment, Buyer may:

(1)   terminate this contract and retain any
independent consideration under Paragraph 7B(3)(a) as the sole remedy; or

(2)   extend the time for performance up to 15 days
and the closing will be extended as necessary.

 

 

C.     Except as provided in Paragraph 15B, if
Seller fails to comply with this contract, Seller is in default and Buyer may:

(1)   terminate this contract in which case Buyer
and Seller shall have no further obligations, except for those herein, which
expressly survive termination, of this Agreement

(2)   enforce specific performance, or seek such
other relief as may be provided by law, or both.

 

16.   ATTORNEY’S FEES:  If
Buyer, Seller, any broker, or any escrow agent is a prevailing party in any
legal proceeding brought under or with relation to this contract or this
transaction, such party is entitled to recover from the non-prevailing parties
all costs of such proceeding and reasonable attorney’s fees. This Paragraph 16
survives termination of this contract.

 

17.   ESCROW:  N/A

 

18.   MATERIAL FACTS:

 

A. To the best of the Seller’s knowledge and belief:  (Check (1) or
(2) only.)

 

o  (1) 
Seller is not aware of any material defects to the Property except as stated in
the attached Property Condition Statement.

 

ý  (2)  Seller is not aware of any of the
following, except as described otherwise in this contract:

 

(a)   any subsurface:  structures, pits, waste, springs, or improvements;

(b)   any pending or threatened litigation,
condemnation, or assessment affecting the Property;

(c)   any environmental hazards or conditions that
affect the Property;

(d)   whether the Property is or has been used for
the storage or disposal of hazardous materials or toxic waste, a dump site or
landfill, or any underground tanks or containers;

(e)   whether radon, asbestos insulations or
fireproofing, urea-formaldehyde foam insulation, lead-based paint, toxic mold
(to the extent that it adversely affects the health of ordinary occupants), or
other pollutants or contaminants of any nature now exist or ever existed on the
Property;

(f)    whether wetlands, as defined by federal or
state law or regulation, are on the Property;

(g)   whether threatened or endangered species or
their habitat are on the Property; and

(h)   any material physical defects in the
Improvements on the Property, save and except roof repairs and those matters
set forth in the current inspection report of Buyer’s inspector Pescador
Engineering on December 19, 2005

(Describe any exceptions to (a)-(g) in Paragraph
11 or an addendum.)

 

Buyer and Seller represent and warrant that is has not employed any
brokers or finders in connection with the transactions contemplated hereby. Each
party shall indemnify, defend, protect and hold harmless the other party from
and against any and all obligations or liabilities to pay any real estate
broker’s commission, finder’s fee, or other compensation to any person or
entity arising from or in connection with this contract which results from any
act or agreement of such party.

 

19.   NOTICES:  All
notices between the parties under this contract must be in writing and are
effective when hand-delivered, mailed by certified mail return receipt
requested, or sent by facsimile

 

 

transmission to the parties addresses or facsimile numbers stated in
Paragraph 1. The parties will send copies of any notices to the broker
representing the party to whom the notices are sent.

 

20.   FEDERAL TAX REQUIREMENT:  If
Seller is a “foreign person” as defined by applicable law, or if Seller fails
to deliver at closing an affidavit that Seller is not a foreign person, then
Buyer will withhold from the sales proceeds at closing an amount sufficient to
comply with applicable tax law and deliver the amount withheld to the Internal
Revenue Service (IRS), together with appropriate tax forms. IRS regulations
require filing written reports if currency in excess of specified amounts is
received in the transaction.

 

21.   DISPUTE RESOLUTION:  The
parties agree to negotiate in good faith in an effort to resolve any dispute
related to this contract that may arise. If the dispute cannot be resolved
by negotiation, the parites will submit the dispute to mediation before
resorting to arbitration or litigation and will equally share the costs of a
mutually acceptable mediator. This paragraph survives termination of this
contract. This paragraph does not preclude a party from seeking equitable
relief from a court of competent jurisdiction.

 

22.   AGREEMENT OF THE PARTIES:

 

A.    This contract is binding on the parties,
their heirs, executors, representatives, successors, and permitted assigns.

 

B.    This contract is to be construed in
accordance with the laws of the State of Texas.

 

C.    This contract contains the entire agreement
of the parties and may not be changed except in writing.

 

D.    If this contract is executed in a number of
identical counterparts, each counterpart is an original and all
counterparts, collectively, constitute one agreement.

 

E.     Buyer ý may o may not
assign this contract. If buyer assigns this contract, Buyer will be relieved of
any future liability under this contract only if the assignee assumes, in
writing, all of Buyer’s obligations under this contract.

 

F.     Addenda which are part of this contract
are:  (Check
all that apply.)

 

o  (1) 
Property Description Exhibit identified in Paragraph 2;

 

o  (2) 
Condominium Addendum;

 

o  (3) 
Financing Addendum;

 

o  (4) 
Commercial Property Condition Statement;

 

o (5)  Addendum for Seller’s Disclosure
of Information on Lead-Based Paint and Lead-Based Paint Hazards;

 

o  (6) 
Notice of Purchaser of Real Property in a Water District (MUD);

 

o  (7) 
Addendum for Coastal Area Property;

 

o  (8) 
Addendum for Property Located Seaward of the Gulf Intracoastal Waterway; and

 

ý  (9)  Lease – Attached hereto as Addendum
One.

 

 

(Note: Counsel for the Texas Association of REALTORS®
(TAR)  has determined that any of the
foregoing addendum which are promulgated by the Texas Real Estate Commission
(TREC) or published by TAR are appropriate for use with this form.)

 

23.   TIME:  Time
is of the essence in this contract. The parties require strict compliance with
the times for performance. If the last day to perform under a provision of
this contract falls on a Saturday, Sunday, or legal holiday, the time for
performance is extended until the end of the next day which is not a Saturday,
Sunday, or legal holiday.

 

24.   EFFECTIVE DATE:  The
effective date of this contract for the purpose of performance of all
obligations is the date the escrow agent receipts this contract after all
parties execute this contract.

 

25.   ADDITIONAL NOTICES:

 

A.    Buyer should have an abstract covering of the
Property examined by an attorney of Buyer’s selection, or Buyer should be
furnished with or obtain a title policy.

 

Seller represents B – F herein below, are not applicable to the
Property:

 

B.    If the Property is situated in a utility or
other statutorily created district providing water, sewer, drainage, or flood
control facilities and services, Chapter 49, Texas Water Code, requires Seller
to deliver and Buyer to sign the statutory notice relating to the tax rate,
bonded indebtedness, or standby fees of the district before final execution of
this contract.

 

C.    If the Property adjoins or shares a common boundary
with the tidally influenced submerged lands of the state, §33.135, Texas
Natural Resources Code, requires a notice regarding coastal area property to be
included as part of this contract.

 

D.    If the Property is located seaward of the
Gulf Intracoastal Waterway, §61.025, Texas Natural Resources Code, requires a
notice regarding a notice regarding the seaward location of the Property to be
included as part of this contract.

 

E.     If the Property is located outside the limits
of a municipality, the Property may now or later be included in the
extra-territorial jurisdiction (ETJ) of a municipality and may now or
later be subject to annexation by the municipality. Each municipality maintains
a map that depicts its boundaries and ETJ. To determine if the Property is
located within a municipality’s ETJ, Buyer should contact all municipalities
located in the general proximity of the Property for further information.

 

F.     If apartments or other residential units are
on the Property and the units were built before 1978, federal law requires a
lead-based paint and hazard disclosure statement to be made part of this
contract.

 

G.    Brokers are not qualified to perform property
inspections, surveys, engineering studies, environment assessments, or
inspections to determine compliance with zoning, governmental

 

 

regulations, or laws. Buyer should seek experts to perform such
services. Selection of experts, inspections, and repairmen is the
responsibility of Buyer and not the brokers.

 

26.   CONTRACT EFFECTIVE DATE:  The
execution of this contract by both Seller and Buyer this Agreement becomes
effective by 5:00p.m.

 

READ THIS CONTRACT CAREFULLY. The brokers and agents
make no representation or recommendation as to the legal sufficiency, legal
effect, or tax consequences of this document or transaction. CONSULT your
attorney BEFORE signing.

 

	
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  Title:

  	
   

  	
   

  	
  Title:EXHIBIT 10.15

 

LEASE

 

This
Lease is entered into between Sepulveda Group, LLC, a California limited
liability company or its assignee (“Landlord”), and American Medical
Technologies, Inc., (“Tenant”), a Delaware corporation.

 

In
consideration of the mutual covenants and agreements of this lease, and other
good and valuable consideration, Landlord demises and leases to Tenant, and
Tenant leases from Landlord, the premises situated at 5655 Bear Lane in Corpus
Christi, Nueces County, Texas, legally described on Exhibit A attached to this
lease, and made a part of this lease for all purposes, together with all
buildings and improvements thereron (collectively referred to as “the premises”
or “the leased premises” in this lease).

 

ARTICLE 1. TERM; ACCEPTANCE OF PREMISES Term

of Lease

 

§
1.01. The term of this lease is Five (5) years, beginning on April 11, 2006,
and ending on April 30, 2011, unless terminated sooner as provided in this
lease.

 

 

Acceptance of Premises

 

§
1.02. Tenant represents and warrants to Landlord that (a) Tenant owned and
occupied the premises for a substantial period prior to the date hereof (which
date is the date that Landlord acquired the property from Tenant), (b) based on
such ownership and occupancy, Tenant has full knowledge of the condition of the
premises, and (c) Tenant hereby accepts the premises from Landlord “AS IS,” “WHERE
IS,” and “WITH ALL DEFECTS,” and without representations, warranties or
covenants of any kind whatsoever, whether expressed or implied. Tenant
acknowledges that neither Landlord nor any agent or any employee of Landlord
has made any representations or warranty with respect to the premises or with
respect to the suitability of either for the conduct of Tenant’s business and
Tenant expressly warrants and represents that Tenant has relied on its own
knowledge of the premises in its decision to enter into this lease.

 

Option to Extend Term

 

§
1.03. Tenant may extend the term of this lease beyond the expiration date
provided in § 1.01 on the following conditions:

 

a.
Tenant may, if it is not in default either on the date required for the notice
or on the date such extension commences, extend the lease term for one (1)
additional period of five (5) years. The extended term will begin on the day
following the expiration date of the lease term specified in § 1.01, but if, at
the date the original term expires, Tenant is in default beyond any grace
period provided in this lease in performing any of the terms of this lease, the
option is void. All of the terms and covenants of this lease apply to the
extended lease term except that fixed rent shall increase as provided in §
2.01.

 

 

b.
Tenant may exercise the option to extend this lease by giving Landlord notice
of its intention to do so not later than six (6) months before the initial
lease term expires. Tenant’s notice of its intention to exercise its option
under this lease must, to be effective, be sent by mail or overnight courier to
Landlord at the address provided in § 15.01 and must be postmarked no later
than the latest date provided in this section for Tenant’s exercising the
option. In every case, as Tenant and Landlord recognize market and inflation
activity may vary, Landlord retains sole right to accept or reject Tenant’s
exercise of the option on the terms herein.

 

Holdover

 

§
1.04. Tenant shall not hold over in the Premises after the expiration or sooner
termination of the lease term without the express prior written consent of
Landlord. If Tenant does so, then in addition to any other rights and remedies
of Landlord hereunder, at law or in equity, Tenant shall pay to Landlord for
each month following the expiration or sooner termination of the lease term
during which Tenant retains possession of the premises 150% of the then-current
fixed rent in addition to all additional rent payable under this lease.
Landlord’s acceptance of any such payment shall not constitute Landlord’s
consent to any holding over (which consent may only be granted expressly in
writing) nor Landlord’s waiver of any of its rights or remedies. If Tenant
holds over and continues in possession of the premises after the lease term (or
any extension) expires, other than as provided in § 1.03, Tenant will be
considered to be occupying the premises on a month to month tenancy, subject to
all the terms of this lease except that fixed rent shall increase as provided
above. Nothing in this lease shall be deemed to permit Tenant to retain
possession of the premises after the expiration or sooner termination of the
lease term.

 

ARTICLE 2. RENT

Fixed Rent

 

§
2.01. Tenant will pay Landlord at the rate of $.45 per square foot, on 45,300
rentable square fee calculated to equal Twenty Thousand Three Hundred Eighty
Five and NO/100 Dollars ($20,385.00) per month, due and payable on or before
the first day of each month as a fixed rent for the current month. Rent for any
fractional month at the beginning or end of the lease term will be prorated on
a per-day basis. Commencing on the first day of the second lease year, and
continuing each lease year thereafter, including during the option term
(provided Tenant exercises its option pursuant to § 1.03), the fixed rent shall
increase by three percent (3%) annually. Tenant will pay this fixed rent to
Landlord at Landlord’s address set forth in § 15.01 or at such other location
or locations that Landlord may from time to time designate by written notice to
Tenant. All payments of fixed rent and all other costs payable by Tenant
hereunder (including, without limitation, all taxes, insurance, utilities, all
such costs being referred to herein as “additional rent”) shall be payable in
lawful U.S. money without any deduction or setoff whatsoever. Payments shall
not be deemed received until actual receipt thereof by Landlord. As used in
this lease, the term “rent” shall mean fixed rent and all additional rent.

 

 

Based on the foregoing,
fixed rent for the initial lease term shall be as follows:

 

	
  Lease Year

  	
   

  	
  Total Monthly Fixed Rent

  	
   

  
	
  1

  	
   

  	
  $

  	
  20,385.00

  	
   

  
	
  2

  	
   

  	
  $

  	
  20,996.55

  	
   

  
	
  3

  	
   

  	
  $

  	
  21,626.45

  	
   

  
	
  4

  	
   

  	
  $

  	
  22,275.24

  	
   

  
	
  5

  	
   

  	
  $

  	
  22,943.50

  	
   

  

 

If
Tenant exercises its option to extend the term in accordance with § 1.03,
monthly fixed rent for the option term shall be as follows:

 

	
  Option Year

  	
   

  	
  Total Monthly Fixed Rent

  	
   

  
	
  1

  	
   

  	
  $

  	
  23,631.80

  	
   

  
	
  2

  	
   

  	
  $

  	
  24,340.75

  	
   

  
	
  3

  	
   

  	
  $

  	
  25,070.97

  	
   

  
	
  4

  	
   

  	
  $

  	
  25,823.10

  	
   

  
	
  5

  	
   

  	
  $

  	
  26,597.79

  	
   

  

 

Taxes and Assessments

 

§
2.02. a. In addition to the fixed rent specified in § 2.01, Tenant will pay in
full all realproperty taxes, special assessments, governmental charges and
personal property taxes of any kind imposed on the premises and the fixtures
and personal property therein during the lease term, including any special
assessments imposed on or against the premises for constructing or improving
public works (collectively, “tax(es)”). This additional rent is payable
directly to the entity imposing the tax at least thirty (30) days before the
date payment is due. Tenant will provide Landlord with (i) copies of all tax
notices within thirty (30) days of Tenant’s receipt of tax notice and (ii) a
receipt or other evidence of payment for each tax paid as soon as a receipt or
other evidence is available to Tenant.

 

b.
Tenant may, at its own expense, contest any tax for which it is responsible
under subparagraph a. Except as provided in subparagraph c, Tenant need not pay
the tax while the contest is pending. Except as provided in subparagraph c,
Tenant may prevent Landlord from paying any tax that Tenant is contesting under
this subparagraph, pending resolution of the contest, by depositing with
Landlord the full amount of the tax, plus the amount of any penalty that might
be imposed for failing to make timely payment and one year of interest at the
rate imposed by the entity levying the tax or assessment. When the contest is
resolved, Tenant may use the money deposited with Landlord to pay any tax, plus
any penalty or interest, due under the final resolution and keep any balance of
the deposit. If the deposit is insufficient to pay these amounts, Tenant must
immediately pay the balance due to the entity imposing the tax.

 

c.
Notwithstanding subparagraph b, Landlord may pay, or require Tenant to pay, any
tax for which Tenant is responsible under subparagraph a, pending resolution of
Tenant’s contest of

 

 

the
tax, if payment is demanded by a holder of a mortgage on the premises or if
failing to pay will subject all or part of the premises to forfeiture or loss.

 

Security Deposit

 

§
2.03.     Concurrently with Tenant’s execution of this Lease, Tenant shall
deposit with Landlord the amount of $20,385.00 as security for the performance
of all of Tenant’s obligations under this lease. Each time monthly fixed rent
is increased, Tenant shall deposit additional cash with Landlord sufficient to
increase the security deposit to the then current monthly fixed rent. Upon any
default by Tenant under this lease, Landlord may, but shall not be obligated
to, use, apply or retain all or any part of the security deposit for the
payment of any rent in default, or any other liabilities which Landlord may
incur as a result of or in connection with Tenant’s default. If any portion of
the security deposit is so used or applied, Tenant shall, within five (5) days
after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the security deposit to the full amount required. Tenant’s
failure to do so shall constitute a material default hereunder. Landlord shall
not be required to keep the security deposit separate from its general funds,
and Tenant shall not be entitled to receive interest on the security deposit
unless required by applicable law. If Tenant complies with all of the
provisions of this lease, the unused portion of the security deposit shall be
returned to Tenant (or, at Tenant’s option, to the last assignee of Tenant’s
interest hereunder) within thirty (30) days after the expiration or sooner
termination of the lease term and the surrender of possession of the premises
to Landlord in the condition required hereby. If Landlord transfers or
mortgages its interest in the premises during the lease term and transfers or
assigns any unapplied portion of the security deposit to the transferee or
mortgagee, Landlord shall have no further liability to Tenant (or any assignee
of Tenant’s interest hereunder) with respect to the security deposit and Tenant
shall look solely to such transferee or mortgagee for the return of the
security deposit.

 

ARTICLE
3. USE OF PREMISES

Tenant’s Warranty Regarding Use

 

§ 3.01.     Tenant represents and
warrants that it shall use the premises for the continuing conduct of its
business, as presently conducted and as specified in the Officer’s Affidavit
referenced below, and that Tenant has the required current permits therefor.
Tenant’s use of the premises is restricted to those purposes specified in this
section unless Tenant obtains Landlord’s prior written consent to any change in
use. Before the lease term begins, Tenant must give Landlord an affidavit of an
officer of Tenant, referred to as the “Officer’s Affidavit,” setting forth a
detailed description of the operations that Tenant will conduct on the premises
and stating any applicable permit numbers. The Officer’s Affidavit must be
organized and prepared in a narrative form, including a description and
quantification of all hazardous materials to be generated, manufactured,
refined, transported, treated, stored, handled, or disposed of on the premises.
After the lease term begins, Tenant must notify Landlord as to any changes in
Tenant’s operation or use or generation of hazardous materials by way of a
supplemental Officer’s Affidavit. Tenant must also supplement and update the
Officer’s Affidavit on each anniversary of the commencement of the lease term. Tenant
may not begin or alter any

 

 

operations on the property before (a) obtaining all required operating
and discharge permits or approvals, including but not limited to air pollution
control permits and pollution discharge elimination system permits, from all
governmental or public authorities having jurisdiction over the Tenant’s
operations or the property, and (b) providing copies of such permits and
approvals to the Landlord.

 

Compliance With Laws

 

§
3.02. a. Tenant may not use, or permit using, the premises in any manner that
results in waste of the premises, constitutes a nuisance or for any purpose or
in any way that will conflict with any law, statute, ordinance or other
governmental rule, regulation or requirement now in force or which may
hereafter be enacted or promulgated (collectively, “Laws”). Tenant, at its own
expense, will comply, and will cause its officers, employees, contractors,
affiliates, sublessees, agents, and invitees (collectively, “Tenant Parties”)
to comply, with all Laws, applicable to the use, occupancy and operation of the
premises, including Hazardous Materials Laws (defined below). This obligation
shall include, but not be limited to, making of structural changes or changes
to the premises’ life safety system as may be required from time to time.

 

b.
Tenant shall not cause or permit any Hazardous Material to be generated,
produced, brought upon, used, stored, treated or disposed of in or about the
premises by Tenant and the Tenant Parties. Upon expiration or earlier
termination of this lease, Tenant shall cause any Hazardous Materials arising
out of or related to the use or occupancy of the premises by Tenant or the
Tenant Parties to be removed from the premises and properly transported for
use, storage or disposal in accordance with all applicable Laws, including
Hazardous Materials Laws.

 

c.
“Hazardous Materials” means any substance, material, or waste that is or
becomes regulated by any local governmental agency, the State of Texas, or the
federal government, including, but not limited to, any material or substance
that is (1) designated as a “hazardous substance” pursuant to Section 311 of
the Clean Water Act, 33 U.S.C. § 1251 et seq., or listed pursuant to Section
307 of the Clean Water Act, 33 U.S.C. § 1317, (2) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., (3) defined as a “hazardous
waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act,
42 U.S.C. § 6901 seq., (4) petroleum, (5) asbestos, and (6) polychlorinated
biphenyls.

 

d.
“Hazardous Materials Laws” means any federal, state, or local statute, ordinance,
order, rule, or regulation of any type relating to the storage, handling, use,
or disposal of any Hazardous Materials, the contamination of the environment,
or any removal of such contamination, including, without limitation, those
statutes referred to in subparagraph c.

 

Rights of Inspection

 

§
3.03. Tenant must permit Landlord and Landlord’s agents, servants, and
employees, including, but not limited to, legal counsel and environmental
consultants and engineers, access

 

 

to
the premises for the purpose of conducting environmental inspections and
sampling during regular business hours, and during other hours either by
agreement of the parties or in the event of an environmental emergency. Tenant
may not restrict access to any part of the premises, and Tenant may not impose
any conditions to access. If Landlord’s environmental inspection includes
sampling and testing of the premises, Landlord must use its best efforts to
avoid interfering with Tenant’s use of the premises, and on completion of sampling
and testing must repair and restore the affected areas of the premises as made
necessary by any sampling and testing.

 

Environmental Reporting Requirements

 

§
3.04.     a. Tenant must promptly supply Landlord with copies of all notices,
reports, correspondence, and submissions made by Tenant to the United States
Environmental Protection Agency, the United States Occupational Safety and
Health Administration, or any other local, state, or federal authority that
requires submission of any information concerning environmental matters or
Hazardous Materials pursuant to Hazardous Materials Laws.

 

b.
Tenant must promptly notify Landlord in advance of any scheduled meeting
between Tenant and any of the agencies specified in subparagraph a and Landlord
shall have the right to attend such meeting.

 

c.
Tenant must promptly notify Landlord as to any liens threatened or attached
against the premises pursuant to any Hazardous Material Law. If an
environmental lien is filed against the premises, Tenant must, within 30 days
from the date on which the lien is placed against the premises, and at any rate
before the date on which any governmental authority begins proceedings to sell
the premises pursuant to a lien, either: (1) pay the claim and remove the lien
from the premises; or (2) furnish either (a) a bond satisfactory to the
Landlord in the amount of the claim on which the lien is based, or (b) other
security satisfactory to the Landlord in an amount sufficient to discharge the
claim on which the lien is based.

 

ARTICLE 4. REPAIRS AND MAINTENANCE

Repairs and Maintenance by Tenant

 

§
4.01. Tenant will, throughout the lease term and any extensions of it, at its
own expense and risk, maintain the premises and all improvements on them in
good order and condition, including but not limited to making all repairs,
rebuilding, and replacements necessary to keep the premises and improvements in
that condition. All maintenance, repairs, and replacements required by this
section must be performed promptly when required. Tenant acknowledges that (1)
Landlord shall have no obligation whatsoever to alter, remodel, improve,
repair, decorate or paint the premises or any part thereof either prior to or
during the lease term, as may be extended pursuant to § 1.03; (ii) its
obligation to rebuild or repair after a fire or other casualty is subject to
Article 10; but (iii) subject to Article 10 below, Landlord shall retain the
obligation for capital improvements and structural repairs to the premises
including, repairing the foundation and load bearing walls and replacing the
roof, provided, however, if such capital improvements or

 

 

structural
repairs are required in whole or in part by the act, neglect, fault or omission
of Tenant or Tenant’s affiliates, including without limitation by Tenant’s
alterations of the premises or repairs, Tenant shall, subject to § 10.04, pay
for such repair or maintenance upon demand from Landlord and shall indemnify
Landlord from and against all other Liabilities incurred by Landlord in
connection therewith.

 

Tenant’s Failure to Repair or Maintain

 

§
4.02. If Tenant fails to perform its obligation to repair, replace, or
maintain, as set forth in § 4.01 or cause the cleanup of the premises as set
forth in § 4.03, within 30 days after notice from Landlord of the need for the
repair, replacement, maintenance or cleanup (or shorter in the case of
emergency), Landlord may (but shall not be obligated to) enter the premises and
make the repairs or replacements, or perform the maintenance or cleanup, or
have the repairs or replacements made or maintenance or cleanup performed, at
Tenant’s expense. On Landlord’s written notice to Tenant of the performance and
cost of any maintenance, repairs, replacements or cleanup under this section or
§ 4.03, Tenant must immediately reimburse Landlord for any reasonable costs
incurred by Landlord under this section or § 4.03, together with interest at
the interest rate of ten 10% per annum, provided that in no case shall such
rate be higher than the highest rate permitted by applicable Law (such rate
being referred to herein as the “Default Rate”) from the date paid by Landlord
until the date paid by Tenant to Landlord.

 

Allocation of Environmental Cleanup Costs

 

§
4.03. Tenant is solely responsible for the payment of all cleanup costs necessary
for the premises to be in compliance with Hazardous Materials Laws that arise
as a result of Tenant’s discharge of Hazardous Materials on the premises prior
to the date hereof or during the lease term. Landlord shall have no
responsibility for any environmental cleanup costs unless Landlord caused any
discharge of Hazardous Materials on the premises.

 

ARTICLE 5. UTILITIES AND GARBAGE REMOVAL Utility

Charges

 

§
5.01. Tenant will pay all utility charges for water, electricity, heat, gas,
and telephone service used in and about the premises during the lease term.
Tenant will pay the charges directly to the utility company or municipality
furnishing the service before the charges are delinquent. Landlord shall not be
liable or responsible for any breakdowns or temporary interruptions in utility
service or for any repair or maintenance required to be made to any utility
systems.

 

Garbage Removal; Janitorial

 

§
5.02. Tenant will pay for all garbage removal from the premises during the
lease term. In addition, Tenant shall, at its sole cost and expense, provide
janitorial service to the premises in a manner consistent with other similar
projects in the Corpus Christi, Texas area. The janitorial service to be
provided by Tenant shall include, but not be limited to, the obligation to keep
the

 

 

interior
and exterior of the premises clean and neat in appearance and to remove all
trash and debris which may be found in or around the premises.

 

ARTICLE 6. ALTERATIONS, ADDITIONS, AND IMPROVEMENTS Consent of

Landlord

 

§
6.01. Tenant may not make any alterations, additions, or improvements to the
premises without Landlord’s prior written consent. Landlord may not
unreasonably withhold consent for nonstructural alterations, additions, or
improvements.

 

Property of Landlord

 

§
6.02. All alterations, additions, or improvements made by Tenant will, at the
election of Landlord, either be removed by Tenant at its expense before the
expiration or earlier termination of this lease or remain upon the premises, be
surrendered therewith and become Landlord’s property when the lease terminates.
If Landlord requires the removal of all or part of any such alterations,
additions or improvements, Tenant, at its expense, shall immediately repair any
damage to the premises caused by such removal. However, if Tenant fails to do
so, Landlord may (but shall not be obligated to), when the lease terminates,
remove any alterations, additions, and improvements made by Tenant and any
other property it placed in the premises, and charge Tenant the cost of removal
and the repair of any damage, plus interest at the Default Rate from the date
Landlord incurs such costs. Tenant shall pay the foregoing to Landlord upon
receipt of demand from Landlord.

 

Alterations Required by Accessibility Laws

 

§
6.03. If any alterations, additions, or improvements to the premises are
mandated by legal requirements related to accessibility by persons with
disabilities (“accessibility alterations”), Tenant shall make them at its sole
cost and expense. This allocation of responsibility for compliance with such
legal requirements is a material inducement for the parties to enter this
lease.

 

ARTICLE 7. TRADE FIXTURES AND SIGNS Trade

Fixtures

 

§
7.01. Tenant may, at all times, erect or install shelves, bins, machinery,
equipment, or other trade fixtures, in, on, or about the premises, if Tenant
complies with all applicable Laws regarding the fixtures. Tenant may remove all
trade fixtures when this lease terminates if Tenant is not in default under
this lease and the fixtures can be removed without structural damage to the
premises. Tenant must, at its sole cost, repair any damage to the premises
caused by removing trade fixtures, and all the repairs must be completed before
the lease terminates. Any trade fixtures not removed by Tenant when this lease
terminates are considered abandoned by Tenant and will automatically become
Landlord’s property. If any trade fixture installed by Tenant is abandoned when
the lease terminates, Tenant must pay Landlord any reasonable expense

 

 

actually
incurred by Landlord to remove the fixture from the premises, less the amount,
if any, actually recovered by Landlord if Landlord sells the fixture once
removed, if the fixture is removed within 30 days after Tenant has surrendered
possession of the premises. Landlord shall have no obligation to remove such
fixtures or if Landlord elects (in its sole discretion) to remove such
fixtures, to make any effort to sell the same.

 

Signs

 

§
7.02. Tenant may erect signs on any portion of the premises, including but not
limited to the exterior walls, subject to applicable Laws. Tenant must remove
all signs when this lease terminates and repair any damage resulting from
erecting or removing the signs.

 

ARTICLE 8. MECHANIC’S LIEN

 

§
8.01. Tenant will not permit any mechanic’s or materialman’s lien to be placed
on the premises or improvements on the premises. Tenant will promptly pay any
mechanic’s and/or materialman’s lien that is filed on the premises or on
improvements located on the premises. If default in payment of the lien
continues for twenty (20) days after Landlord’s written notice to Tenant,
Landlord may, at its option, pay the lien or any portion of it without
inquiring into its validity. Any amounts Landlord pays to remove a mechanic’s
or materialman’s lien filed against the premises or improvements on them,
including expenses and interest, are due from Tenant to Landlord and must be
repaid to Landlord immediately on rendition of notice, together with interest
at the Default Rate from the date paid by Landlord until repaid by Tenant.

 

ARTICLE 9. INSURANCE AND INDEMNITY

Property Insurance

 

§
9.01. Tenant must, at its own expense during the lease term, maintain property
insurance insuring (1) the premises against loss or damage by fire, theft or
other insurable loss included in “special form” coverage, including loss from
windstorm, hurricane, hail, explosion, riot or riot attending a strike, civil
commotion, terrorism, aircraft, vehicles, and smoke, and (ii) Tenant’s
furniture, trade fixtures, office equipment, merchandise and other property in
the premises and all original and later-installed tenant improvements in the
premises, against all losses included in “special form” coverage (including,
without limitation, vandalism, malicious mischief, sprinkler leakage
coverages).. All such insurance shall be on a 100% replacement cost basis,
adjusted at least annually to account for increases in the replacement cost.
The insurance is to be carried by one or more insurance companies authorized or
admitted to do business in Texas. Choice of an insurance company is subject to
approval by Landlord, who will not unreasonably withhold approval if the
company has a Best’s Insurance Rating of A- VII or better. The insurance policy
or policies must name both Landlord and Tenant as insureds. The policies must
provide that any proceeds for loss or damage to the premises are payable to
Landlord, or at Landlord’s request, Landlord’s mortgagee on the premises.
Except for insurance proceeds payable on account of losses described in clause
(ii) above, Tenant shall not, in any event, be entitled to property insurance
proceeds except to the extent permitted by Landlord or

 

 

Landlord’s
mortgagee to be used for rebuilding or repair, as set forth herein.

 

Liability Insurance

 

§ 9.02. Tenant, at its own expense, must provide and maintain in force
during the lease term, commercial general liability insurance in an amount of
not less than $2,000,000.00 combined single limit. This insurance is to be
carried by one or more insurance companies authorized or admitted to transact
business in Texas. Choice of an insurance company is subject to approval by
Landlord, who will not unreasonably withhold approval if the company has a Best’s
Insurance Rating of A- VII or better. The policy must cover Landlord as well as
Tenant, for any liability for property damage or personal injury claims arising
from (1) Tenant’s occupying and using the premises and from its business
operations, and including liability arising under any indemnity set forth in
this lease and (ii) Landlord’s owning the premises.

 

Other Insurance

 

§
9.03. Tenant, at its own expense, must maintain all required workers’
compensation or other similar insurance pursuant to all applicable state and
local statutes and regulations

 

Remedy for Failure to Provide Insurance

 

§
9.04. Tenant must furnish Landlord with certificates of all insurance required
by this article prior to the date hereof, and thereafter, at least 30 days
before the expiration of each existing policy. If Tenant does not provide the
certificates within foregoing time periods, or if Tenant allows any insurance
required under this article to lapse, Tenant shall be in default under this
lease and Landlord may, at its option, in addition to any other rights and
remedies hereunder, take out and pay the premiums on the necessary insurance to
comply with Tenant’s obligations under this article. Landlord is entitled to
reimbursement from Tenant upon demand for all amounts spent to procure and
maintain the insurance, with interest at the Default Rate from the date
Landlord makes such premium payments until reimbursed by Tenant.

 

Tenant’s Environmental Indemnity

 

§
9.05. Tenant must indemnify, defend (with counsel reasonably acceptable to
Landlord), and hold harmless Landlord from and against all actions (including,
without limitation, remedial or enforcement actions of any kind, and
administrative or judicial proceedings and orders or judgments), claims,
liabilities, losses, damages, and costs, foreseen or unforeseen (including
without limitation counsel, engineering, and other professional or expert
fees), amounts paid in settlement, fines, forfeitures or other civil,
administrative or criminal penalties, injunctive or other relief that Landlord
may incur by reason of Tenant’s action or inaction with regard to Tenant’s
obligations under Articles 3 and 4 of this lease. This section survives the
expiration or earlier termination of this lease.

 

 

Hold-Harmless Clause

 

§
9.06. Tenant will indemnify and hold Landlord harmless from and against any
claims, demands, damages, costs, and expenses (including reasonable attorney’s
fees and costs and court costs) claims, demands, amounts paid in settlement,
fines, forfeitures or other civil, administrative or criminal penalties,
injunctive or other relief, arising from the conduct or management of Tenant’s
business on the premises or its use of them; from any breach by Tenant of any
conditions of this lease; or from any act of negligence of Tenant, its agents,
contractors, employees, subtenants, concessionaires, or licensees in, on or
about the premises; and any delay by Tenant in surrendering and vacating the
premises as required in § 15.11, including without limitation any claims made
by any succeeding tenant based on any delay. If any action or proceeding is
brought against Landlord by reason of any such claim, Tenant, on notice from
Landlord, will defend the action or proceeding by counsel acceptable to
Landlord.

 

General Provisions

 

§
9.07. Landlord makes no representation that the insurance coverage required of
Tenant provides adequate coverage for Tenant’s needs or for its obligations
under this Lease. Tenant shall not do or permit to be done anything which shall
cause the cancellation of, invalidate, increase the rate of, or otherwise
adversely affect, the insurance policies referred to in this Article 9.

 

§
9.08. Insurance provided by Tenant hereunder shall be primary as to all covered
claims and any insurance carried by Landlord is excess and is non-contributing.
Each insurance policy must not be cancelable or modifiable except upon 30 days
prior written notice to Landlord and any specified mortgagee of Landlord.

 

§
9.09. No more often than once every three (3) years during the lease term,
Landlord may require Tenant to raise its insurance limits (other than property
insurance, which must be raised annually) to reasonable levels that are
customarily carried for such insurance by landlords or tenants operating
comparable properties in the state in which the Premises is located.

 

ARTICLE 10. DAMAGE OR DESTRUCTION OF
PREMISES Notice to

Landlord

 

§
10.01. If the premises, or any portion thereof, are damaged or destroyed by
fire, tornado, or other casualty, Tenant must immediately give Landlord written
notice of the damage or destruction, including a general description of the
damage and, as far as known to Tenant, the cause of the damage. Upon receipt of
such notice, Landlord shall reasonably estimate the amount of time it will take
after receipt of insurance proceeds and governmental permits and approvals, to
repair such damage or destruction.

 

 

Damage or Destruction

 

§
10.02. (a) Subject to the provision of subparagraph (b), in the event of damage
to or destruction of the premises (including any improvements now or hereafter
on or a part of the premises) from whatsoever cause occurring, Tenant shall,
within thirty (30) days of the date that Tenant is notified that Landlord has
received any insurance proceeds, commence to promptly restore the premises and
such improvements to substantially its condition prior to such damage or
destruction, and after such commencement shall diligently pursue such
restoration to completion. The rent shall be abated during such restoration
period pursuant to Section 10.03. If Landlord receives insurance proceeds as a
result of such casualty, Landlord shall notify Tenant and make all net proceeds
available to Tenant as necessary for such repair and restoration in accordance
with customary construction loan practices. If the insurance proceeds prove
inadequate to reasonably complete such repair and restoration as required
hereunder, Tenant shall provide all additional funds necessary to complete such
repair and restoration. Notwithstanding the foregoing, if Tenant failed to
maintain the insurance required hereunder or if such damage was caused by the
negligence or intentional misconduct of Tenant or any of the Tenant Parties and
is uninsured or underinsured as a result thereof, Tenant shall, at its sole
cost and expense repair all damage and restore such improvements to substantially
the condition existing prior to such damage or destruction regardless of
whether any insurance proceeds are received by Landlord, and Tenant shall not
have the right to terminate this lease pursuant to clause (b) below.

 

(b)           Notwithstanding the foregoing, if the
improvements on the premises shall be damaged or destroyed as the result of a
casualty or hazard (i) at any time other than the last year of the lease term
and the time to repair such damage or destruction is reasonably estimated by
Landlord to take more than 240 days after receipt of insurance proceeds (if
any) and governmental permits and approvals, or (ii) during the last two (2)
years of the lease term and the time to repair such damage or destruction is
reasonably estimated by Landlord to take more than 365 days after receipt of
insurance proceeds (if any) and governmental permits and approvals, then
Landlord or Tenant shall have the right to terminate this Lease by giving
written notice thereof to the other party within sixty (60) days after the date
of such damage or destruction; provided, however, if Landlord elects to
terminate this lease and at time of the casualty Tenant has an exercisable
option to extend this lease, then Tenant may preserve this lease by (A)
exercising such option, and (B) providing Landlord with any shortage in
insurance proceeds (or adequate assurance thereof) needed to make the repairs
on or before the earlier of (1) the date which is 30 days after Tenant’s
receipt of Landlord’s notice of termination, or (2) the day prior to the date
upon which such option expires. If Tenant duly exercises such option during
such period and provides Landlord with funds (or adequate assurance thereof) to
cover any shortage in insurance proceeds, this Lease shall continue in full force
and effect and Tenant shall repair the damage as required herein. If Tenant
fails to exercise such option and provide such funds or assurance during such
period, then this Lease shall terminate in accordance with Landlord’s
termination notice. If this Lease is cancelled in accordance with the
foregoing, this lease shall wholly cease and expire on the date 60 days
following the date of occurrence of the damage or destruction and in such event
all rents and other charges shall be prorated and paid to the date of

 

 

damage
or destruction and all insurance proceeds on account of such casualty shall
remain the property of Landlord except for insurance proceeds payable on
account of losses described in clause 9.01(ii) above which shall be payable to
Tenant. The provisions of this subsection (b) shall not apply, and Tenant shall
have no right to terminate this lease, if the damage or destruction is caused
by the negligence or intentional misconduct of Tenant or any of the Tenant
Parties.

 

Rent Abatement

 

§
10.03. The rent shall be abated during restoration period pursuant to Section
10.02 on the condition that damage or destruction of the premises was not the
result of (a) Tenant’s conduct or (b) Tenant’s failure to act as required under
this lease.

 

Release of Claims/Subrogation

 

§
10.04. Landlord and Tenant release each other from any liability for any damage
to the property of the other to the extent that it is permitted by law and that
it is covered by property insurance maintained or required to be maintained hereunder.
Landlord and Tenant will notify the issuing insurance companies of the release
set forth in this paragraph and will have the insurance policies endorsed, if
necessary, to prevent invalidation of the insurance coverage. Nothing in this
§10.04 shall be deemed to impose any obligation on Landlord to obtain any
insurance.

 

Statutory Waivers

 

§10.05.
Tenant waives the application of any laws which are contrary to the provisions
of this Article 10 or Article 11 below in connection with any damage, destruction,
condemnation, taking or appropriation (or sale in lieu thereof) of all or any
portion of the premises.

 

ARTICLE 11. CONDEMNATION Total

Condemnation

 

§
11.01. If, during the lease term or any extension or renewal of it, all of the
premises are taken for any public or quasi-public use under any governmental
law, ordinance, or regulation, or by right of eminent domain, or are sold to
the condemning authority under threat of condemnation, this lease will
terminate, and the rent will be abated during the unexpired portion of this
lease, effective as of the date the condemning authority takes the premises.

 

Partial Condemnation

 

§
11.02. If less than all, but more than fifty percent, of the premises is taken
for any public or quasi-public use under any governmental law, ordinance, or
regulation, or by right of eminent domain, or is sold to the condemning
authority under threat of condemnation, Tenant may terminate the lease by
giving Landlord written notice within 30 days after the entity exercising the power
of condemnation takes possession of the condemned portion. In addition, if

 

 

eighty
percent of the parking area of the premises is taken for any public or
quasi-public use under any governmental law, ordinance, or regulation or by
right of eminent domain, or is sold to the condemning authority under threat of
condemnation, Tenant may terminate the lease by giving Landlord written notice
within 30 days after the entity exercising the power of condemnation takes
possession of the condemned portion.

 

If
the premises are partially condemned and Tenant fails to exercise the option to
terminate the lease under this section, or if less than fifty percent
of the premises is condemned, this lease will not terminate, but Tenant may, at
its sole expense, restore and reconstruct the building and other improvements
situated on the premises to make them reasonably tenantable and suitable for
the uses for which the premises are leased. The fixed rent payable under § 2.01
of this lease will be adjusted equitably during the unexpired portion of this
lease.

 

Condemnation Award

 

§
11.03. Landlord (or if required by Landlord’s then current mortgagee on the
premises, Landlord’s mortgagee), is entitled to receive and retain the entire
award in any condemnation proceedings, except for any portion attributable to
trade fixtures, which Tenant is entitled to receive and retain. The termination
of this lease will not affect the right to this award.

 

ARTICLE 12. DEFAULT

Tenant’s Default

 

§
12.01. Tenant shall be in default hereunder if (a) Tenant fails to pay the rent
for more than five (5) days after the date due, or (b) Tenant fails to observe
or perform any other lease term or condition required to be performed by Tenant
under this lease within 30 days after written notice from Landlord or if
performance reasonably takes longer than 30 days, such longer period provided
Tenant has commenced such performance within such 30-day period and is
diligently pursuing the same to completion, or (c) Tenant abandons the
premises, or (d) Tenant makes or consents to a general assignment for the
benefit of creditors or a common law composition of creditors, or a receiver of
the premises or all or substantially all of Tenant’s assets is appointed, or
(e) Tenant files a voluntary petition in any bankruptcy or insolvency
proceeding, or an involuntary petition in any bankruptcy or insolvency
proceeding is filed against Tenant or any guarantor, and is not discharged by
Tenant within 60 days, or (f) there is an assignment or subletting of the
premises or the Lease by Tenant, without the prior written consent of Landlord
as required by Article 14.

 

In
the event of a default by Tenant, Landlord may, at its option, without notice
to Tenant, terminate this lease, or, in the alternative, Landlord may reenter and
take possession of the premises and remove all persons and property without
being considered guilty of any manner of trespass and may (but is not required
to) relet the premises (or any part of them) for all or any part of the
remainder of the lease term, to a party satisfactory to Landlord and at the
monthly rental as Landlord can secure with reasonable diligence. If Landlord
cannot relet after reasonable efforts to do so or if the monthly rental is less
than the rental Tenant was obligated to pay under

 

 

this
lease (or any renewal of it) plus the expense of reletting, then Tenant must
pay Landlord the full amount of the deficiency for the balance of the lease
term. Tenant and Landlord agree that, for the purpose of posting the notice
required by Property Code Section 93.002(f), the “front door” of the leased
premises is the main entrance doorway to the offices fronting the street
address of the premises.

 

Whether
or not Landlord elects to terminate this Lease on account of any default by
Tenant, as set forth in this Article 12, Landlord shall have the right to
terminate any and all subleases, licenses, concessions or other consensual
arrangements for possession entered into by Tenant and affecting the premises
or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such
subleases, licenses, concessions or arrangements. In the event of Landlord’s
election to succeed to Tenant’s interest in any such subleases, licenses,
concessions or arrangements, Tenant shall, as of the date of notice by Landlord
of such election, have no further right to or interest in the rent or other
consideration receivable thereunder.

 

Landlord’s Lien

 

§
12.02. Tenant hereby grants to Landlord a lien on all fixtures, that become a
part of, the premises as security for rent due and to become due for the
remainder of the current lease term and any other sum Tenant owes Landlord.
This lien is not in lieu of, nor in any way affects, the
statutory landlord’s lien but is in addition to that lien, and Tenant grants
Landlord a security interest in all of Tenant’s fixtures placed in or on the
premises for purposes of this contractual lien. This does not prevent Tenant’s
selling any merchandise in the ordinary course of business free of such
Landlord’s lien. If Landlord exercises the option to terminate the leasehold,
reenter, and relet the premises as provided in the preceding paragraph and
gives Tenant reasonable notice of the intent to take possession and an
opportunity for a hearing on the matter, Landlord may take possession of all of
Tenant’s on the premises and sell it at public or private sale after giving
Tenant reasonable notice of the time and place of any public sale or of the
time after which any private sale is to be made, for cash or on credit, for the
prices and terms that Landlord considers best, with or without having the
property present at the sale. The proceeds of the sale will be applied first to
the necessary and proper expense of removing, storing, and selling the
fixtures, then to the payment of any rent due or to become due under this
lease; any balance will paid to Tenant. Landlord may file a UCC-1 financing
statement on this lease and on fixtures, without authentication by Tenant.

 

Landlord’s Default

 

§
12.03. If Landlord defaults in performing any term or covenant that Landlord
must perform under this agreement, Tenant may, after not fewer than one hundred
eighty (180) days’ notice to Landlord, remedy the default by any necessary
action and, in connection with the remedy, may pay expenses and employ counsel.
Landlord must, on demand, pay Tenant all sums expended, or obligations
incurred, by Tenant in connection with remedying Landlord’s default.

 

 

Cumulative Remedies

 

12.04.
All Landlord’s and Tenant’s rights and remedies under this Article are
cumulative, and none will exclude any other right or remedy provided by law or
any other provision of this lease. All the consistent rights and remedies may
be exercised and enforced concurrently and whenever occasion for their exercise
arises.

 

Waiver of Breach

 

§
12.05. Landlord’s or Tenant’s waiving a breach of this lease by the other party
does not constitute a continuing waiver or a waiver of any subsequent breach.

 

Landlord’s Right to Cure

 

§
12.06. If Tenant fails to comply with any payment (other than fixed rent) or
other obligation herein within the time period set forth herein for
performance, or if no time period is provided, within the cure period set forth
in § 12.01, then Landlord may (but shall not be obligated to) make such payment
or do such act to satisfy Tenant’s obligation or cure Tenant’s default, and
charge the expense, together with interest, at the Default Rate, to Tenant.
Payment for the cure shall be due and payable by the Tenant upon demand;
however, the making of any payment or the taking of such action by Landlord
shall not be deemed to cure the default or to stop Landlord from the pursuit of
any remedy to which Landlord would otherwise be entitled.

 

Late Payment Charge and Interest on Past Due Rent

 

§
12.07. If Tenant fails to pay rent within five (5) days after such rent becomes
due and payable to Landlord, Tenant shall pay to Landlord a late charge of
$1,000. In addition, such late rent payment shall bear interest from the date
due until the date of payment by Tenant at the Default Rate. Late charges and
interest shall be due and payable within three (3) days after written demand
from Landlord.

 

ARTICLE 13. INSPECTION BY LANDLORD

 

Tenant
will permit Landlord and its agents, representatives, and employees to enter
the premises at all reasonable times for the purpose of inspection or any other
purpose necessary to protect Landlord’s interest in the premises or to perform
Landlord’s duties under this lease.

 

ARTICLE 14. ASSIGNMENT AND SUBLEASE

Assignment and Subletting by Tenant

 

§
14.01. a. Tenant may sublet any right or partial interest in the premises or
the improvements on them, with Landlord’s written consent, which shall not be
unreasonably withheld. If Tenant sublets, its rights or interests in this lease
or in the premises or the improvements on them, the assignee or subtenant must
assume all of Tenant’s obligations under

 

 

this
lease, and Tenant will remain liable for every obligation under the lease.
Further any amounts received by Tenant from Sublease in excess of Tenants’
related obligation to Landlord hereunder will be split, one half to Tenant and
one half paid over to Landlord.

 

b.
Tenant may assign this lease, but only upon prior written consent of Landlord,
and upon any such assignment, Tenant will remain liable for every obligation
under this Lease.

 

c.
As a condition precedent to the Tenant’s right to sublease the property or to
assign this lease, the Tenant must, at the Tenant’s own expense, fulfill all of
the Tenant’s obligations under this lease. If this condition is not satisfied,
the Landlord has the right to withhold consent to any proposed sublease or
assignment.

 

Assignment by Landlord

 

§
14.02. Landlord may assign or transfer any of its interests under this lease
without Tenant’s consent.

 

ARTICLE 15. MISCELLANEOUS Notices

and Addresses

 

§
15.01. All notices required under this lease must be in writing and may be
given by the following methods: by first class mail or nationally recognized
overnight courier addressed to the proper party, at the following addresses:

 

Landlord:               Sepulveda Group, LLC c/o

Jamie Rosenblood 12335

Gorham Avenue Los

Angeles, CA 90049

 

Tenant:                  American Medical Technologies, Inc. 5655

Bear Lane

Corpus Christi, Texas 78405

 

Notices
are effective when received. Either party may change the address to which
notices are to be sent by sending written notice of the new address or number
to the other party in accordance with the provisions of this section.

 

Parties Bound

 

§
15.02. This agreement binds, and inures to the benefit of, the parties to the
lease and their respective heirs, executors, administrators, legal
representatives, successors, and assigns when this agreement permits.

 

 

Texas Law to Apply

 

§
15.03. This agreement is to be construed under Texas law, and all obligations
of the parties created by this lease are performable in Nueces County, Texas.
TENANT HEREBY EXPRESSLY WAIVES ANY AND ALL RIGHTS OF REDEMPTION CONFERRED BY
STATUTE OR OTHERWISE, AND, WITH RESPECT TO ANY LITIGATION ARISING OUT OF THIS
LEASE, AND TO THE EXTENT PERMITTED BY LAW, LANDLORD AND TENANT WAIVE THE RIGHT
TO A TRIAL BY JURY AND THE RIGHT TO FILE IN SUCH ACTION ANY COUNTERCLAIMS OR
CROSS-CLAIMS AGAINST THE OTHER (OTHER THAN COMPULSORY COUNTERCLAIMS OR
CROSS-CLAIMS).

 

Legal Construction

 

§
15.04. If one or more of the provisions contained in this agreement are for any
reason held by a court of competent jurisdiction to be invalid, illegal, or
unenforceable in any respect, the invalidity, illegality, or unenforceability
will not affect any other provision of the agreement, which will be construed
as if it had not included the invalid, illegal, or unenforceable provision. The
captions of the Articles and sections contained herein are for convenience only
and do not define, limit, construe or describe the scope or intent of such Articles
or sections.

 

Prior Agreements Superseded

 

§
15.05. This agreement constitutes the parties’ sole agreement and supersedes
any prior understandings or written or oral agreements between the parties with
respect to the subject matter.

 

Amendment

 

§
15.06. No amendment, modification, or alteration of this agreement is binding
unless in writing, dated subsequent to the date of this agreement, and duly
executed by the parties.

 

Rights and Remedies Cumulative; No Waiver

 

§
15.07. The rights and remedies provided by this lease are cumulative, and
either party’s using any right or remedy will not preclude or waive its right
to use any other remedy. These rights and remedies are in addition to any other
rights the parties may have by law, statute, ordinance, or otherwise. The
failure of Landlord or Tenant to insist upon strict performance by the other of
any of the provisions of this Lease or to exercise any option herein conferred
shall not be deemed as a waiver or relinquishment for the future of any such provision
or option.

 

Attorney’s Fees and Costs

 

§
15.08. If, as a result of either party’s breaching this agreement, the other
party employs an attorney to enforce its rights under this lease, then the
breaching or defaulting party will pay

 

F:\docs\Sepulveda Group,
LLC\AMT\Closing Docs\Lease - Final.doc

 

 

the
other party the reasonable attorney’s fees and costs incurred to enforce the
lease.

 

Force Majeure

 

§
15.09. Neither Landlord nor Tenant is required to perform any term or covenant
in this lease so long as performance is delayed or prevented by force majeure,
which includes acts of God, strikes, lockouts, material or labor restrictions
by any governmental authority, civil riot, floods, and any other cause not
reasonably within Landlord’s or Tenant’s control and that Landlord or Tenant
cannot, by exercising due diligence and paying money, prevent or overcome, in
whole or part.

 

Time of Essence

 

§
15.10. Time is of the essence of this agreement.

 

Surrender

 

§
15.11. At the expiration or sooner termination of the lease term, Tenant shall
quit and surrender the premises broom clean, in good order, condition and
repair, ordinary wear and tear excepted.

 

Exculpation

 

§
15.12.   In the event of any transfer of Landlord’s interest in this lease, the
transferor shall cease to be liable and shall be released from all liability
for the performance or observance of any agreements or conditions on the part
of Landlord to be performed or observed subsequent to the time of said
transfer, provided that such transferee assumes in writing all of Landlord’s
obligations hereunder. In the event of any breach or default by Landlord in any
term or provision of this lease, Tenant agrees to look solely to the equity
interest then owned and/or leased by Landlord in the land and improvements
which constitute the premises, any rentals derived therefrom, and the proceeds
of any judgment, sale, insurance or eminent domain award resulting from the
premises or any part thereof (subject, however, to prior use of any insurance
proceeds or eminent domain award for restoration as provided in Articles 10 and
11); however, in no event shall any deficiency judgment be sought or obtained
against any individual person or entity comprising Landlord.

 

Subordination

 

§
15.13. This lease is subject and subordinate to all ground or underlying leases
and to any first mortgage(s) which may now or hereafter affect those leases or
the land and to all renewals, modifications, consolidations, replacements and
extensions thereof. This subordination shall be self-operative; however, Tenant
shall execute promptly any instrument that Landlord or any mortgagee may
reasonably request confirming such subordination.

 

 

No Brokers

 

§
15.14. Landlord and Tenant represent and warrant to each other that it has not
retained the services of any other broker or real estate licensee and owes no
other person or entity any finder’s or broker’s fee, commission or payment of
any kind whatsoever. Landlord and Tenant shall defend, indemnify and hold the
other harmless from and against any and all claims, demands, costs, expenses or
liabilities related to or connected with any broker’s or finder’s fee,
commission or payment of any kind asserted by any person or entity.

 

Estoppel

 

§
15.15. During the lease term, Tenant shall, within 20 days of a written request
from Landlord, certify in writing as to the validity of this lease, the lease
term, the fixed rent and additional charges owed hereunder, and the existence
of any amendments, defaults, off-sets or counterclaims.

 

No Recording

 

§
15.16. Neither this lease, nor any memorandum, affidavit or other writing with
respect thereto, shall be recorded by Tenant or by anyone acting through,
under, or on behalf of Tenant, and the recording thereof in violation of this
provision shall make this Lease null and void at Landlord’s election.

 

Counterparts

 

§
15.17. This Lease may be executed in counterparts, each of which shall be
deemed an original, but such counterparts, when taken together, shall
constitute one agreement.

 

Effectiveness

 

§
15.18. Notwithstanding that Landlord and Tenant may have executed this lease,
this lease shall not be effective unless and until (i) Tenant’s acquisition of
the stock of Spectrum Dental, Inc. from Discus Holdings, Inc. and (ii) Landlord’s
acquisition of the premises from Tenant have closed.

 

 

The undersigned Landlord and Tenant execute this agreement on April 11,
2006.

 

	
   

  	
  “LANDLORD”

  
	
   

  	
   

  
	
   

  	
  Sepulveda
  Group, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  “TENANT”

  
	
   

  	
   

  
	
   

  	
  American
  Medical Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit A

 

Legal Description

 

Lot
One (1), Block Two (2), INDUSTRIAL TECHNOLOGY PARK UNIT 1 a Subdivision of the
City of Corpus Christi, Texas, as shown by the map or plat thereof recorded in
Volume 46, Pages 105-107, Map Records of Nueces County, Texas, to which
reference is made for all pertinent purposes.

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