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EXHIBIT 10.1
COMMERCIAL LEASE
This Lease Agreement is made and entered into by and between MARRS
&
SMITH, LTD. (Landlord), whose address is P.O. Box 919, Kermit,
Winkler County,
Texas, and TEXAS LANDSCAPE CENTER, INC. (Tenant), whose address is
3327 W.
Wadley, 3-366, Midland, Texas, 79707. Landlord hereby leases to
Tenant and
Tenant hereby leases from Landlord that certain property with the
improvements
thereon, hereinafter called the "leased premises", known as the
addresses set
forth with each tract of land, more particularly described as
follows, to-wit:
Lot 1, Block 1, Wolfe Nursery Addition to the City of Odessa
commonly
known as 3600 Andrews Highway, Odessa, Texas 79762.
The primary term of this lease shall be two (2) years commencing
prior
hereto on the 1ST day of DECEMBER, 2006, and ending on the 30TH day
of NOVEMBER,
2008, and is automatically renewable thereafter unless either party
gives the
other party notice at least on or before April 1st of any year
preceding the
year in which the termination shall occur, upon the following
terms, conditions
and covenants:
1.
TAXES: Each year during the term of this lease, Tenant shall pay
real
estate taxes assessed against the leased premises in an amount
equal to
the total real estate taxes assessed against the leased premises in
the
base year. Each year during the term of this lease, Tenant shall
pay as
additional rental, upon receipt of a statement from Landlord
together
with tax statements or other verification from the proper
taxing
authority, his pro rata share of any increase in real estate taxes
over
the base year on the property of which the leased premises is a
part.
2.
UTILITIES: Tenant shall pay all charges for utility services to
the
leased premises.
3.
HOLDING OVER: Failure of Tenant to surrender the leased premises at
the
expiration of the lease constitutes a holding over which shall
be
construed as a tenancy from month to month at a rental of
$15,000.00
per month.
4.
RENT: Tenant agrees to and shall pay Landlord at P.O. Box 919,
Kermit,
TX 79745, or at such other place Landlord shall designate from time
to
time in writing, as rent for the leased premises, the total sum
of
$48,000.00, payable without demand in equal monthly payments of
$4,000.00 each in advance on or before the 1ST day of each
month,
commencing prior hereto on DECEMBER 1, 2006, and continuing
thereafter
until the total sum shall be paid. If rent is not received by
Landlord
by the 5th of each month, Tenant shall pay a late charge of five
(5)
percent of the payment. Tenant shall pay $25.00 for each
returned
check.
5. USE:
Tenant shall use the leased premises for the following purpose
and
no other: landscape center and nursery.
6.
SECURITY DEPOSIT: Tenant shall pay to Landlord a security deposit
in
the sum of $N/A payable on or before the commencement of this lease
for
Tenant's faithful performance hereunder. Refund thereof shall be
made
upon performance of this lease agreement by Tenant, minus any
assessments or damages unless Landlord and Tenant provide otherwise
in
Special Provisions.
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7.
CONDITION OF PREMISES: Tenant has examined and accepts the
leased
premises in its present as is condition as suitable for the
purposes
for which the same are leased, and does hereby accept the
leased
premises regardless of reasonable deterioration between the date
of
this lease and the date Tenant begins occupying the leased
premises
unless Landlord and Tenant agree to repairs or refurbishment as
noted
in Special Provisions.
8.
MAINTENANCE AND REPAIRS: Tenant shall be responsible to keep
the
foundation, the exterior walls and the roof of the leased premises
in
good repair.
9.
ALTERATIONS: All alterations, additions and improvements, except
trade
fixtures, installed at expense of Tenant, shall become the property
of
Landlord and shall remain upon and be surrendered with the
leased
premises as a part thereof on the termination of this lease.
Such
alterations, additions, and improvements may only be made with
the
prior written consent of Landlord, which consent shall not be
unreasonably withheld. If consent is granted for the making of
improvements or alterations to the leased premises, such
improvements
and alterations shall not commence until Tenant has furnished
to
Landlord a certificate of insurance showing coverage in an
amount
satisfactory to Landlord protecting Landlord from liability for
injury
to any person and damage to any personal property, on or off the
leased
premises, in connection with the making of such improvements or
alterations. No cooling tower, equipment, or structure of any
kind
shall be placed on the roof or elsewhere on the leased premises
by
Tenant without prior written permission of Landlord. If such
permission
is
granted, such work or installation shall be done at Tenant's
expense
and in such a manner that the roof shall not be damaged thereby. If
it
becomes necessary to remove such cooling tower, equipment or
structure
temporarily, so that repairs to the roof can be made. Tenant
shall
promptly remove and reinstall the cooling tower, equipment or
structure
at Tenant's expense and repair at Tenant's expense any damage
resulting
from such removal or reinstallation. Upon termination of this
lease,
Tenant shall remove or cause to be removed from the roof any
such
cooling tower, equipment or structure if directed to do so by
Landlord.
Tenant shall promptly repair at its expense any damages resulting
from
such removal. At the termination of this lease, Tenant shall
deliver
the leased premises in good order and condition, natural
deterioration
only excepted. Any damage caused by the installation or removal
of
trade fixtures shall be repaired at Tenant's expense prior to
the
expiration of the lease term. All alterations, improvements,
additions,
and repairs made by Tenant shall be made in good and
workmanlike
manner.
10. COMPLIANCE
WITH LAWS AND REGULATIONS: Tenant shall, at its own expense,
comply with all laws, orders and requirements of all gover
