2005-300FILE REFERENCE FORM 2005-300
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
First Amended Master Lease Amendment - Ordinance No. 2006-357
12/19/06
) R
First Extension to Master Lease Agreement - Ordinance No. 2008-274
11/04/08
R
Second Amendment to Master Lease Agreement-Ordinance No. 2009-186
08/18/09
R
Third Amendment to Master Lease Agreement-Ordinance No. 2010-291
11/02/10
R
Fourth Amendment to Master Lease Agreement-Ordinance No. 2010-311
12/07/10
R
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ORDINANCE NO. 2005- .sOp
AN ORDINANCE OF THE DENTON CITY COUNCIL APPROVING AND
AUTHORIZING THE MAYOR TO EXECUTE A MASTER LEASE AGREEMENT
PROVIDING FOR THE LEASE OF CERTAIN TRACTS OF REALTY AT THE CITY OF
DENTON LANDFILL, BY AND BETWEEN THE CITY OF DENTON, TEXAS, AS
LESSOR AND THE DENTON COUNTY TRANSPORTATION AUTHORITY, AS LESSEE;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE.
/
WHEREAS, the Denton City Council having previously considered and approved on
this date an Asset Purchase Agreement, Bill of Sale, and other related documents which
manifest the transfer of all assets currently known as the "LINK Public Transportation Service"
from the City of Denton, Texas to the Denton County Transportation Authority, a political
subdivision and a county transportation authority created pursuant to Chapter 460, Texas
Transportation Code; and
WHEREAS, the City of Denton, Texas and the Denton County Transportation
Authority ("DCT A") also desire to enter into a separate Master Lease Agreement (the "Lease")
regarding certain real property owned by the City of Denton, in Denton County, Texas, being
three tracts of land totaling approximately 1.148 acres, in the City of Denton Landfill; together
with access rights and certain leased facilities, so that DCT A may operate from a location
within the City of Denton, Texas; and
WHEREAS, the City Council deems it to be advantageous and in the public interest to
enter into that certain Master Lease Agreement with DCT A, as lessee, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I That the City Council hereby approves and authorizes the Mayor, or in
her absence, the Mayor Pro Tern, to execute the Master Lease Agreement by and between the
City of Denton, Texas, as Lessor and DCTA, as Lessee, in substantially the form of the Master
Lease Agreement attached hereto as "Exhibit "A" and incorporated herewith by reference.
SECTION 2. That the expenditure of funds, if any, as provided in the Master Lease
Agreement is hereby authorized.
SECTION 3. That a true and correct certified copy of this executed ordinance will be
sent to the appropriate officials at the Federal Transit Administration by Mark Nelson, Director
of Airport & Transit Operations of the City, immediately upon its passage and approval.
SECTION 4. That this ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the ;ZOf-!t.ctayof ~Y-fA./
,2005.
ATTEST:
JENNIFER W ALTERS, CITY SECRETARY
By: Q7wj!ie/1;lJUdAff1U; t2MJ;,
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
B,/WA.~.~
C~~
EULINE BROCK, MAYOR
S:\OUf Documents\Ordinances\05\Master Lease Agreement-Realty-COD and DCT A 200S.doc
2
COUNTY OF DENTON S
MASTER LEASE AGREEMENT
AN AGREEMENT BY AND BETWEEN
THE CITY OF DENTON, TX. AND
THE DENTON COUNTY
TRANSPORTATION AUTHORITY
THE STATE OF TEXAS S
This Master Lease Agreement ("Lease") is entered into by and between the City
of Denton, Texas, a Texas municipal corporation and home rule city ("Lessor") and the
Denton County Transportation Authority, a political subdivision and a coordinated
county transportation authority created pursuant to Chapter 460, Tex. Transportation
Code ("Lessee") on this 30th day of September, 2005, in accordance with the terms
and conditions of that certain Asset Purchase Agreement of even date herewith
("Purchase Agreement") by and between Lessor and Lessee as Seller and Buyer,
respectively, which contemplated that the Lessor and Lessee would enter into this
Master Lease Agreement.
Subject to the terms and conditions of this Lease, and in consideration of mutual
covenants, obligations, and agreements contained in this Lease, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Lessor and Lessee each agree as follows (all capitalized terms herein shall be defined
herein as stated in the Purchase Agreement unless otherwise defined herein):
Article 1
LEASE PREMISES
1.1 Lease Premises. Lessor does hereby lease, demise, and let to Lessee
and Lessee does hereby lease and take from Lessor certain premises situated within
the City of Denton, State of Texas, being more particularly described as follows:
(a) that .428 acres which is legally described on Exhibit "A," attached
hereto and incorporated herein by reference for all purposes, and
the improvements thereon ("Tract I") including, without limitation,
an approximately 3000 square foot building (commonly known
herein as the "Service Bay Building") which contains three (3)
vehicle maintenance and repair bays, and permanently attached to
the exterior of the Service Bay Building is a vehicle wash rack;
(b) that .519 acres which is legally described on Exhibit "B," attached
hereto and incorporated herein by reference for all purposes, and
the improvements thereon ("Tract II") (commonly known herein as
the "Bus Parking Area") on which Lessee's Vehicles (as defined
in the Agreement) are to be parked or stored;
(c) that .201 acres which is legally described on Exhibit "C," attached
hereto and incorporated herein by reference for all purposes, and
MASTER LEASE AGREEMENT - PAGE 1
784815.14/SP3/13144f0100f09200S
the improvements thereon ("Tract III") and on which is located (i) a
triple-wide modular building (Serial Numbers TXLAOK998437,
TXLAOK008290 and TXLAOK008281) ("Bus Admin Office"),
which Lessor now leases from General Electric Capital Modular
Space, a division of Transport International Pool, Inc. ("GECMS")
and shall continue to do same during the Term (as defined below)
of this Lease and which Lessor shall sublet to Lessee as is
provided hereinbelow, and (ii) a 10,000 gallon fuel tank owned by
Lessor and located adjacent to Service Bay Building, of which
Lessee shall have exclusive use to store fuel for Lessee's Vehicles
during the Term (with each of the foregoing tracts and the
improvements thereon being collectively called herein the
"Premises").
Together with all rights, privileges, easements, appurtenances, and amenities belonging
to, or in any way pertaining to, the said Premises, including full rights of ingress and
egress to said Premises.
1.2 Condition. Lessee hereby accepts the Premises and the other
improvements and fixtures thereon "AS IS, WHERE IS," and agrees that the Seller is
not making any warranties regarding the condition or suitability for intended use of the
Premises or the other improvements and fixtures thereon.
Article 2
TERM
2.1 Initial Term. The initial term of this Lease shall be for thirty-six (36)
months, beginning on October 1,2005 ("Commencement Date") and ending on
September 30, 2008 ("Expiration Date") ("Initial Term").
2.2 Extensions. The Initial Term may be extended for up to two (2)
successive one (1) year periods (with each of such extension periods being called
herein an "Extension Period") upon Lessee providing written notice to Lessor in
accordance with Article 13 below not less than sixty (60) days prior to (i) the Expiration
Date, if applicable, or (ii) the last day of the applicable Extension Term.
During any Extension Period hereunder, the terms and conditions of this Lease
shall remain unchanged and continue to be effective and in full force, subject to the
change in monthly rental provided below or any written agreement otherwise entered
into between Lessor and Lessee (with the Initial Term and the applicable Extension
Periods being collectively known as the "Term").
Article 3
RENT
3.1 Rental in Initial Term. On or before the first day of each month during the
Initial Term (beginning on the Commencement Date), Lessee shall pay to Lessor the
sum of Nine Thousand Four Hundred Eighteen Dollars ($9,418) per month.
MASTER LEASE AGREEMENT - PAGE 2
784815.14/$P311314410100/092005
3.2 Rental in Extension Terms. If Lessee exercises its right to extend the
Initial Term of this Lease in accordance with Section 2.2 above, on or before the first
day of each month (beginning on or before the first day of the applicable Extension
Period (which shall be October 1, 2009 or October 1, 2010, respectively)), Lessee shall
pay to Lessor the sum of Five Thousand Three Hundred Dollars ($5,300) per month.
3.3 Place of Payment. Lessee shall pay all amounts due under this Lease to:
City of Denton
c/o Director of Solid Waste
Solid Waste Fund
1527 South Mayhill Road
Denton, Texas 76208
or at such other address of which Lessor shall provide notice to Lessor in accordance
with Article 13 below.
3.4 Holdinq Over. The Term of this Lease (including the Initial Term and each
Extension Term if exercised as provided herein) shall expire no later than
September 30,2010. However, if the Lessee does not vacate the Premises upon the
expiration of the Term, the Lessee's occupancy of the Premises shall be a month-to-
month tenancy, subject to all of the terms of the Lease applicable to a month-to-month
tenancy, except that the monthly rental during such tenancy shall be Nine Thousand
Five Hundred Dollars ($9,500) per month and shall be due and payable beginning on
October 1, 2010 and shall be due and payable thereafter on the first day of each month
until such tenancy terminates; however, if such tenancy ends on a day other than the
last calendar day of the month, the rental for any fractional calendar month of the
tenancy shall be prorated by days.
3.5 Earlv Termination. Should the Lease be terminated prior to the Expiration
Date of the Initial Term for any reason whatsoever, Lessee covenants to pay to Lessor
within sixty (60) days of such date of termination the sum of One Hundred Forty-Eight
Thousand Two Hundred Forty-Eight Dollars ($148,248.00) minus the sum obtained by
multiplying Four Thousand One Hundred Eighteen Dollars ($4,118.00) times the
number of whole months which have expired since the Commencement Date. Such
payment shall be made in lieu of any other remedy under this Lease or in equity.
3.6 Late Fee. If at any time Lessee's rental payment due hereunder is past
due for thirty (30) or more days, Lessee shall pay Lessor a Late Fee of One Hundred
Fifty Dollars ($150.00).
Article 4
LESSOR'S TITLE
4.1 Lessor's Title. Lessor covenants and warrants that it has good and
marketable title to the Premises, plus all other real estate shown on Exhibit D, including,
without limitation, all means and ways of ingress and egress for the same. Lessor holds
the Premises and all other real estate shown on Exhibit D in fee-simple absolute, free
MASTER LEASE AGREEMENT - PAGE 3
784815.14/SP3f13144f0100/092005
and clear from any lien, claim or encumbrance that would affect the use and enjoyment
of the Premises by the Lessee.
4.2 Lessor's Authoritv. Lessor has full right, power and authority to enter into
this Lease and to grant to Lessee the leasehold estate contemplated herein and all
rights purported to be herein granted.
Article 5
USE AND ENJOYMENT
5.1 Permitted Use. Lessee shall use the Premises as follows:
(a) Tract I, including the (i) Service Bay Building and the three (3)
vehicle maintenance repair bays contained therein, shall be utilized
by Lessee to repair and maintain the Vehicles and any vehicle that
Lessee may own, rent, lease or use in the future and Lessor and
Lessee shall share the operations and use of the vehicle wash rack
permanently attached to the exterior of the Service Bay Building;
and (ii) a 10,000 gallon fuel tank which is owned free and clear of
any encumbrance, lien or restriction by Lessor and during the
entirety of the Term of this Lease shall be exclusively used by
Lessee to store fuel for Lessee's Vehicles (with the uses of Tracts I,
II and III of the Premises being collectively known herein as the
"Use");
(b) Tract II, including the paved Bus Parking Area thereon shall be
utilized for the parking and storage of the Buses and any other
vehicle that Lessee may own, rent, lease or use in the future; and
(c) Tract III is the location of (i) the Bus Admin Office which is a triple-
wide modular building that shall be used by Lessee as the
administrative office for the operation of the intra-city bus line in the
City of Denton, Texas (commonly known as "LINK"); AND AS A
CONDITION TO LESSEE AGREEING TO ENTER INTO THE
PURCHASE AGREEMENT AND THIS LEASE, LESSOR
,AGREES TO SEEK WRITTEN APPROVAL OF GECMS TO
ENTER INTO A SUBLET AGREEMENT SIMULTANEOUSLY
WITH LESSOR AND LESSEE EXECUTING AND DELIVERING
THIS LEASE, WHEREBY LESSEE SHALL SUBLET FROM
LESSOR THAT BUS ADMIN OFFICE DURING THE TERM OF
THIS LEASE ON THE SAME TERMS AND CONDITIONS AS
LESSOR SHALL CONTINUE TO LEASE THAT BUS ADMIN
OFFICE FROM GECMS, THE OWNER OFTHE BUS ADMIN
OFFICE, DURING THE ENTIRETY OF THE TERM AND SUCH
SUBLET AGREEMENT SHALL BE COTERMINUS WITH THIS
LEASE; LESSOR SHALL SIGN AND DELIVER 10 LESSEE A
MASTER LEASE AGREEMENT - PAGE 4
784815.141SP3/13144/0100f092005
SUBLET AGREEMENT AT CLOSING, CONSISTENT WITH THE
TERMS HEREIN; AND
Lessor further covenants and warrants that there are no restrictive covenants,
zoning ordinances or other laws, regulations or ordinances (federal, state or local) which
will at any time prevent Lessee, or its officers, employees, customers, invitees,
contractors, guests or agents, from conducting the Use or otherwise conducting the full
and complete operation and functioning of the intra-city bus system commonly known
as "LINK" in the City of Denton, Texas, including, without limitation, conducting the
parking, operation, maintenance, repair and administration of Lessee's Vehicles within
the Premises in a manner reasonably determined by the Lessee. If at any time during
the term of this Lease, the Use of the Premises for such described purposes, including
the Use of the Bus Parking Area for vehicular driving or parking, should ever be
prohibited or prevented by any restriction, ordinance, law, regulation, decision, or
otherwise, Lessee shall have the right at any time thereafter to terminate this Lease by
giving thirty (30) days written notice to the Lessor in accordance with Article 13 below,
whereupon Lessee shall be immediately released from any further obligations of any
kind which would otherwise accrue hereunder upon Lessee except as is provided in
Section 3.5 hereof.
In connection with the Use of and the related activities in, upon, and about the
Premises, Lessee shall materially comply with all federal, state or local laws, statutes,
ordinances, permits, regulations, applicable to the Use.
5.2 Peaceful Eniovment. Lessor covenants that Lessee shall and may
peacefully have, hold, and enjoy the Premises for the Initial Term and any applicable
Extension Period(s), including specifically, having an unrestricted ingress and egress
from Mayhill Road in the City of Denton, Texas, into and out of the Premises for the Use
herein specified.
5.3 Remedv. Lessor agrees that any use of the Premises by a third-party
inconsistent with the terms and conditions of this Lease, shall be prohibited by Lessor
upon notice being provided by Lessee to Lessor in accordance with Article 13 below. In
particular, an obstruction, improvement, fixture, vehicle, structure, or any other
impediment in or on the Premises, or in the ingress or egress access corridors, or
adjacent areas shown on Exhibit D, that impairs, disrupts or limits in any manner the
Use of the Premises, shall immediately be removed or cured by action of the Lessor
upon receipt of written notice from the Lessee in accordance with Article 13 below.
Lessor shall maintain whatever signage or notice is necessary to prevent said limitation
or impairment of the Use of the Premises by the Lessee and to enforce and effect the
removal of said limitation or impairment. '
Article 6
MAINTENANCE
6.1 Lessor's Repairs. Lessor shall, at its expense, maintain at all times the
paved surface condition of the Bus Parking Area of the Premises, including the access
MASTER LEASE AGREEMENT - PAGE 5
78481 S.14{SP31~ 3144101 00/092005
lanes for ingress and egress in and to the Premises and the other, real estate shown on
Exhibit D, in good operable repair and condition. Upon receipt of written notice by
Lessee to Lessor provided in accordance with Article 13 below of any defect or need for
repairs of items to be maintained hereunder by Lessor (including, without limitation,
repairing the surface of the Bus Parking Area) Lessor shall commence repair of same
within thirty (30) business days after receipt of such notice and diligently pursue such
repairs to timely completion.
However, if a condition for which Lessor is responsible, prevents Lessee from the
defined Use of the Premises, Lessee shall be released from any obligation under the
Lease, including the obligation to pay any rental from the day such condition
commenced until Use of the Premises is restored in the reasonable opinion of the
Lessee. Further, if such condition persists for more than thirty (30) days, then Lessee
may terminate this Lease in all respects by five (5) days written notice provided in
accordance with Article 13 below to Lessor and thereafter Lessee shall have no further
obligation of any kind or nature under this Lease, except as provided in Section 3.5
hereof.
6.2 Other Repairs of the Premises. Except as provided in Section 6.1 above
or otherwise herein, Lessee shall make, at Lessee's sole cost and expense, all
necessary repairs to the Premises as required to maintain the property in good working
order. At reasonable intervals during the hours of 8:00 A.M. to 5:00 P.M. of each
Business Day, Lessor shall have the right to conduct periodic maintenance inspections
for the purpose of confirming that Lessee's obligations under this provision are
performed.
6.3 Alterations and Improvements. Lessee, at Lessee's sole cost and
expense, may remodel, redecorate, and make additions, improvements and
replacements of, and to all or any part of the Premises except the Bus Admin Office
from time to time during the Term, as Lessee may deem desirable (including the right to
place and install personal property, trade fixtures, equipment and other temporary
installations in and upon the Premises including the Bus Admin Office), provided that
such is made or done in a workmanlike manner and that good quality materials are
used. All personal property, equipment, machinery, trade fixtures and temporary
installations placed or installed upon the Premises by Lessee during the Term shall
remain Lessee's property, free and clear of any claim by Lessor, and Lessee shall have
the right to remove the same at any time during the Term of this Lease; provided
however, that all damage to the Premises caused by any such removal shall be fully
repaired by Lessee, at Lessee's expense and shall be done to Lessor's reasonable
satisfaction.
Article 7
TAXES, INSURANCE, UTILITIES AND SIGNS
7.1 Propertv Taxes. Lessor covenants and warrants that the Premises is
exempt from general real estate taxes of any and all taxing authorities (federal, state or
MASTER LEASE,AGREEMENT - PAGE 6
784815.14fSP3f13144/0100/092005
local). Lessee shall be liable for, and solely responsible for, paying all personal property
taxes with respect to Lessee's personal property located on or stored at the Premises.
7.2 Insurance.
A. Lessor shall maintain "all perils" insurance coverage (including fire
and extended coverage insurance) for the Premises in such amounts as Lessor
shall deem reasonable in relation to the age, location, type of construction and
physical condition of the Premises. However, Lessee shall be responsible, at its
expense, for fire and extended coverage insurance on all of its personal property,
including removable trade fixtures, located in or at the Premises. Lessee
understands and agrees that Lessor shall in no way be liable respecting Lessee's
personal property located on the Premises unless the damage occurred from an
act or negligence of Lessor or any of Lessor's officials, officers, employees,
guests, agents or invitees.
B. Lessee and Lessor shall each, at its own expense, maintain a
policy or policies of comprehensive general liability insurance with respect to the
respective activities of each on the Premises or on the other real estate reflected
on Exhibit D, with the premiums thereon fully paid on or before their due date,
issued by and binding upon an insurance company licensed in the State of Texas
and rated "A-" or higher by A.M. Best Carriers. Each such policy shall be issued
for insurance coverage for an amount of not less than One Million Dollars
($1,000,000) combined single-limit coverage of bodily injury, property damage or
a combination thereof. Lessor or Lessee (as applicable) shall be listed as an
additional insured on the other party's policy or policies of comprehensive
general liability insurance and Lessor and Lessee (as applicable) shall provide
the other party with current certificates of insurance evidencing its compliance
with this Section. Lessee shall obtain the agreement of Lessee's insurers to
notify Lessor that the insurance policy required hereunder is due to expire at
least thirty (30) days prior to such expiration. Lessor shall assume no liability for
and shall not be required to maintain insurance against thefts within or upon the
Premises. The risk of loss for theft within or upon the Premises shall be borne
solely by Lessee.
7.3 Utilities. Lessor covenants and warrants that all solid waste, sewer water,
gas, potable water, electricity and all other necessary utilities are in all respects
available for, and are now fully and completely connected to, the Premises. However,
all applications and connections for necessary utility services on or to the Premises
shall be made in the name of Lessee only; and Lessee shall be solely liable for, and
shall maintain in current status, any and all utility charges as they become due,
including those charges for solid waste, sewer, water, gas, potable water, electricity and
charges for any other utilities.
Lessor acknowledges that telephone, data and internet services are necessary
utilities for Lessee, and therefore Lessor shall affirmatively act and cooperate, in all
aspects, to assure their timely connection to the Premises.
MASTER LEASE AGREEMENT - PAGE 7
784815. 14/SP3/13144101 00/092005
Lessor shall separately invoice Lessee on an annual basis for the use by Lessee
of the ADT fire alarm system monitoring service located in and on the Service Bay
Building and Lessee shall pay such invoice to Lessor no later than twenty-one (21) days
after the date of Lessor's invoice.
7.4 Siqns. Lessee shall have the right to place on the Premises, at locations
selected by Lessee, any signs which are permitted by applicable zoning ordinances and
private restrictions which are subject to the prior written reasonable approval of Lessor,
which approval will not be unreasonably withheld. Lessor may refuse to consent to any
proposed signage that is, in Lessor's opinion, too large, or deceptive, or unattractive or
otherwise inconsistent with, or inappropriate to the Premises, but Lessor's consent to
Lessee's desired signage will not be unreasonably withheld.
Lessor shall assist and cooperate with Lessee in obtaining any necessary
permission from all governmental authorities or adjoining owners and occupants of the
Premises or the other real estate shown on Exhibit D, for Lessee to place or construct
the foregoing signs. Lessee shall repair all damage to the Premises resulting from the
removal of all signs installed by Lessee.
Article 8
PREMISES RETURN
8.1 Premises Return. Lessee agrees to return the Premises at the conclusion
of the Term or upon earlier termination, in a condition reasonably similar to that in which
Lessee received said Premises, save and except for ordinary wear and tear.
Article 9
ASSIGNMENT
9.1 Assiqnment. Lessor and Lessee each agree it will not to assign its
respective interest under this Lease; and Lessee agrees that it shall not sublet the
Premises (or any portion thereof), without the prior consent of the Lessor.
Article 10
RIGHT OF ACCESS
10.1 Grant of Riqht of Access. Lessor hereby grants to Lessee and its
successors and assigns (together with their respective officers: employees, customers,
visitors, guests, and invitees) a temporary non-exclusive right of access and use
("Right of Access") over and across all parts of the Premises and all other real
property shown on Exhibit D including, without limitation, a right of access to the
Premises from Foster Road (the "Access Area").
The Right of Access shall provide free, continuous and uninterrupted ingress,
egress and regress by all pedestrians or vehicles to and from the Premises.
The Lessor agrees not to interfere with or to construct, obstruct, place or permit
to be placed any fences, barriers or other obstacles or impediments which will obstruct,
MASTER LEASE AGREEMENT - PAGE 8
784815.14/SP3/13144f0100/092005
hinder or limit in any respect passage of any pedestrian or vehicle to the Premises
through the Access Area, including, without limitation, Foster Road.
The Lessor agrees to keep the existing roadways and paths, including, without
limitation, Foster Road (as shown on Exhibit D) in good working order, at its sole cost
and expense.
Lessor agrees to provide all necessary permanent or temporary easements, and
rights of way, on, to, or through the Premises and the Lessor's property as depicted on
Exhibit "D" to permit and allow the connection to the Premises of telephone, data and
internet, or other utility services which are necessary for the use and enjoyment of the
Premises.
Upon the default of the Lessor to perform its obligations under this Right of
Access, Lessee shall have the right to exercise any rights or remedies provided at law
or in equity, including a claim for all court costs and recovery of reasonable attorneys'
fees.
10.2 Covenants Runninq With the Land. The Access Area is an appurtenant.
The obligations, benefits and burdens contained in this Agreement are those of the
Lessees under this Lease, and shall run with the land, and shall be binding upon and
inure to the benefit of said owners, tenants and mortgagees and their respective heirs,
personal representatives, successors and assigns. If the Lessor or any future owner of
the Premises or the other real property reflected on Exhibit D shall hereafter convey title
to the Premises or the other real property reflected on Exhibit D, such party's liability
under this Lease for obligations performable after the date of such conveyance shall
cease and such obligations shall be those of the record owner of the Premises or the
other real property reflected on Exhibit D as of such time period.
10.3 Term. The term of the Right of Access shall coincide with the Term of the
Lease.
Article 11
DEFAULT AND REMEDY
11.1 Lessor. If Lessor fails to comply with any covenant or obligation of Lessor
under this Lease, then Lessee shall give Lessor written notice provided in accordance
with Article 13 below, specifying the nature of the default and Lessor shall then have 30
days in which to cure such default. (However, Lessor and Lessee agree that a default
under the Purchase Agreement shall not be a default under this Lease.) If after the 30-
day period of cure, the Lessor has not cured the default, then Lessee shall have the
option to declare this Lease terminated in all respects and except for the obligation
arising under Section 3.5, Lessee shall not have any other obligation of any kind or
nature arising hereunder, but, without prejudice to the right of Lessee to recover from
Lessor such damages as Lessee sustains as a result of said default including without
limitation its reasonable attorney's fees and out of pocket costs.
MASTER LEASE AGREEMENT - PAGE 9
784815.14fSP3/1314410100/092005
11.2 Lessee. Should Lessee not comply with the payment of rent described
herein, or any other provision of this Lease of which default Lessee shall then have
thirty (30) days in which to cure such default after receipt of written notice provided in
accordance with Article 13 below, specifying the nature of the defect, it shall be deemed
a default under this Lease. (However, Lessor and Lessee agree that a default under
the Purchase Agreement shall not be a default under this Lease.) Lessor shall have, in
addition to the remedies provided within this Lease Agreement, all remedies, allowed it
by law and equity. Lessor shall use reasonable efforts to mitigate its damages. In the
event of a breach of this Lease by Lessee, Lessor shall recover from Lessee its
reasonable attorney fees and out~of-pocket costs.
Article 12
ENVIRONMENTAL
12.1 Lessee's Environmental Liability. Lessee shall comply with all material
provisions of applicable environmental law, whether Federal, State, or local, respecting
the Use of the Premises. Lessee shall fully disclose and contact David Dugger, Landfill
Manager, City of Denton, Texas at (940) 349-8001, in the event that any hazardous
materials are brought onto the Premises by or for the benefit of Lessee. Additionally, a
material safety data sheet ("MSDS") shall be prepared by Lessee, and furnished to
Lessor on the next business day after any hazardous materials are brought by Lessee
or Lessee's agents onto the Premises. Lessee shall store all hazardous materials
within the Service Bay Building in a safe manner. Lessee shall be solely responsible for
the clean-up and remediation of any and all environmental liabilities which result from its
use of the Premises.
12.2 Lessor's Representations and Warranties. Lessor represents and
warrants to the best of Lessor's knowledge and belief that any handling, transportation,
storage, treatment or usage of Hazardous Material that has occurred on the Premises to
date has been in compliance with all applicable Federal, State, and local laws,
regulations and ordinances. Except as disclosed on Schedule 12.2 attached hereto and
incorporated herein by reference for all purposes, Lessor further represents and
warrants to the best of Lessor's knowledge and belief that no leak, spill, release,
discharge, emission or disposal of Hazardous Material has occurred on the Premises to
date and that the soil or groundwater on or under the Premises is free of Hazardous
Material as of the date that the term of this Lease commences unless expressly
disclosed by Lessor to Lessee in writing.
12.3 Definitions. For purposes of this Article 12, the term "Hazardous
Material" shall mean any pollutant, toxic substance, hazardous waste, hazardous
material, hazardous substance, or oil as defined in or pursuant to the Resource
Conservation and Recovery Act, as amended, the Comprehensive Environmental
Response, Compensation and Liability Act, as amended, the Federal Clean Water Act,
as amended, or any other federal, state or local; environmental law, regulation,
ordinance, rule, or bylaw, whether existing as of the date hereof, previously enforced or
subsequently enacted.
MASTER LEASE AGREEMENT - PAGE 10
784815.14/SP3f13144/0 1 00/092005
Article 13
NOTICE
13.1 Notice. Any notice required or permitted under this Lease shall be
deemed sufficiently given or served if sent by prepaid United States mail, certified,
return receipt requested, addressed as follows:
To Lessor:
To Lessee:
City of Denton, Texas
Attn: City Manager
215 East McKinney Street
Denton, Texas 76201
Denton County Transportation Authority
c/o John O. Hedrick, Executive Director
1660 South_Stemmons
, Lewisville, Texas 75057
Phone: (940) 349-8307
Fax: (940) 349-8596
And
Phone: (972) 221-4600
Fax: (972) 221 4601
Vance Kemler, Director
City of Denton, Texas
Solid Waste Department
1527 South Mayhill Road
Denton, Texas 76208
With a copy to:
Strasburger & Price, LLP
Attn: Rider Scott, Esq.
2801 Network Boulevard
, Suite 600
Frisco, Texas 75034
Phone: (940) 349-8044
Fax: (940) 349-8057
Phone:
Fax:
(469) 287 3906
(469) 2276578
Lessor and Lessee shall each have the right from time to time to change the
place notice is to be given under this paragraph by written notice thereof to the other
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party. '
Article 14
WAIVER
14.1 Waiver. No failure of Lessor to enforce any term of this Lease shall be
deemed to be a waiver.
Article 15
HEADINGS
15.1 Headinqs. The headings and paragraph names used in this Lease are for
convenience of the parties only and shall not be considered in interpreting the meaning
of any provision of this Lease.
MASTER LEASE AGREEMENT - PAGE 11
784815.14JSP311314410100/092005
Article 16
SUCCESSORS
16.1 Successors. The terms and provisions of this Lease shall extend to and
be binding upon Lessor and Lessee and their respective legal representatives, officers,
directors, successors and assigns.
Article 17
CONSENT
17.1 Consent. Lessor shall not unreasonably withhold its consent with respect
to any matter for which Lessor's consent is required under this Lease.
Article 18
COMPLIANCE WITH LAW
18.1 Compliance with Law. This Lease shall be governed by, interpreted and
enforced solely in accordance with the laws of the State of Texas. Venue of any cause
of action arising hereunder shall lie exclusively in the courts of Denton County, Texas.
Any provision hereof which is deemed or held legally void or unenforceable shall not
void this entire Lease, and all other provisions of this Lease shall remain in full force and
effect. '
Article 19
FEDERAL TRANSIT ADMINISTRATION REQUIREMENTS
19.1 Federal Transit Administration ("FTAn) Requirements. Any federal, state
and local interest in the Premises will remain with Lessor and will not be altered by this
Lease. Both Lessor and Lessee agree to comply with the following Subsections of this
Section during the Initial Term, as well as for any applicable Extension Period:
A. Energy Conservation Requirements: Lessee agrees to comply with
applicable mandatory standards and policies relating to energy efficiency that are
contained in the state energy conservation plan issued in compliance with the
Federal Energy Policy and Conservation Act.
B. Federal Changes: Lessee shall at all times comply with all
applicable FTA regulations, policies, procedures and directives, including, without
limitation, those listed directly or by reference in the agreement between Lessor
and FTA, as they may be amended or promulgated from time to time during the
Lease. Lessee's failure to comply shall constitute a breach of this Lease.
C. Lessee acknowledges that the provisions of the Program Fraud
Civil Remedies Act of 1986, as amended, 31 USC SS3801 et seq.; and U.S.
Department of Transportation Regulations entitled "Program Fraud Civil
Remedies," 49 CF Part 31, apply to its Use of the Premises.
MASTER LEASE AGREEMENT - PAGE 12
784815.14/SP3/13144f0100/092005
D. All contractual provIsions required by U.S. Department of
Transportation ("DOT") whether or not expressly set forth in this Lease, as set
forth in FTA Circular 4220.1E, as amended, are hereby incorporated by
reference. Anything to the contrary herein notwithstanding, all FTA mandated
terms shall be deemed to control in the event of a conflict with other provisions
contained in this Lease. Lessee shall not perform any act, fail to perform any act,
or refuse to comply with any requests, which would cause Lessor to be in
violation of the FT A terms and conditions.
Article 20
FINAL AGREEMENT
20.1 FINAL AGREEMENT. THIS LEASE SUPERSEDES ALL PRIOR
UNDERSTANDINGS OR AGREEMENTS (ORAL OR WRITTEN) ON THE SUBJECT
MATTER HEREOF. THIS LEASE CONTAINS THE ENTIRE AGREEMENT WITH
RESPECT TO THE SUBJECT MATTER HEREOF. THERE ARE NO ORAL
'AGREEMENTS OF THE PARTIES RESPECTING THE SUBJECT MATTER OF THIS
LEASE. THIS LEASE MAY BE AMENDED OR MODIFIED ONLY BY A FURTHER \
WRITTEN DOCUMENT THAT IS DULY EXECUTED AND DELIVERED BY BOTH
PARTIES.
Article 21
TIME OF ESSENCE
21.1 Time is of the essence with respect to this Lease.
Article 22
COUNTERPARTS
22.1 This Lease may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but such counterparts shall
together constitute one and the same instrument.
[Remainder of Page Intentionally Left Blank--
Signatures Follow]
MASTER LEASE AGREEMENT - PAGE 13
784815.14fSP3/13144/0100/092005
IN WITNESS WHEREOF, Lessor and Lessee, by and through their duly
authorized signatories, have executed and delivered this Lease Agreement in four (4)
original counterparts, as of the day and year first above written.
LESSOR:
LESSEE:
City of Denton, Texas
215 E. McKinney
Denton, Texas 76201
Denton County Transportation Authority
1660 South Stemmons, Suite 250
Lewisville, Texas 75067
By:
c~~JL-
HONORABLE EULlNE BROCK
MAYOR
By:
<--
ATTEST:
ATTEST:
JENNIFER WALTERS Denton County Transportation Authority
CITY SECRETARY
By q;/IPtr1!l1J1J djiJ7l1/1u1;,~~,
JASO ,~~
SECRETARY
APPROVED AS TO LEGAL FORM
APPROVED AS TO LEGAL FORM:
OJ\..
.
EDWIN M. SNYDER
CITY ATTORNEY
By ~~ QlV
By:
RIDER SCOTT
GENERAL COUNSEL
MASTER LEASE AGREEMENT - PAGE 14
784815.14/SP3113144/0100/092005
Schedule 12.2
, Hazardous Material Violations
MASTER LEASE AGREEMENT - PAGE 15
784815.14/SP3/13144/0100/092005
p.4
Rug 29 05 01.18p
Exhibit A to Master Lease Agreement
Coleman & Assoc. Land Surveyirig
1'.0. B"" GBG
Deuroll, T~ 7&102
plt..e (040).,65.8215 F..l!l4.ll)565-llBOO
Tracl Three -:M'ain1l:nan<:e Area
M:z8 of"" ""'" ofla114
FIELD NOTES to all of !hat certam Iracl: of JEltld situaled in !be G. Walker SlWoy Ab_at
Number 1330, City ofDIlllbm, Denio. Ccunty T= and baing a Jllllt uf1ho oanod 1.9355 IUlI'O
Iracl descnood In the deedto Cl\Y ofnenlooIeCordod in Volulllc 1177, p,1l" 199 of1he D.06
lte..rds of Dl:lllon CounlY, Texas and part of Lot 1. :Blook 1, POllan Creek W_ Wasre
ltel:bma!lonPlunt.....dlliIion '" sb0Wl1!>ylhd1.ttlu:reofrecorde4inCllhillo,H, p.ge209 of!be
Plat ReeaWs of Dertlon COIlIl1:)!, Ten>; tho subject Tmot being wore parficularly desctibod as
fol1""", (Bearing' ba.is is Texas Cocr_ Syslem of 198B, North Cel1\ral Zone-4202 based on
GpS ties b> City ofDel1lonUndfi1J Geade1io Conlr.l):
BEGINNING at Ibe NotIhwest cOmllr of 1110 bel being desorlbod lIl:rein Bl a 112 inch iron rod
wilh a ~ellow plastio cap sl3mped "Colemanl&LS 4001= set (herein ail.ar:re!Otred fI> as In"lRS)
..d'btoing Soulb 88 nogro" 09 Mlr\1Ues 42 Sooands East a distam:e of 642.4 :reet and Nol.'fh 01
Degrees 35 Mio\l1lO& 16 S,cllDds East a dlstmc. of 49.3 :f'ect Irom a 112 mob iron rod 'With .
yenow plastic cap s!lmIpcd 'Coleman llPLS 4001" filund at an anglo point in tho Norih line of
th. City ofDentonllll1l1li11Permitl3tlllOlll1ly,
THENCE South 81l Degrees 36 Mioutes 20 SOI:O.dt EIlOt IIlong tlle Norih odgo of a concrete
pm:kinglotecrossLoll,.l3lock 1 a <listmoe of1l2.7ieetlDa lJ2''JRS fortheN_ c"",""of
1he berain described traCt
'!HENCE Sl>\llh 01 Degree& 10 :MIllIms 54 Seconds West 80<0$ lot 1, IlI.ok 1 passing at a
dls~.ou:e of 50.1 feet !be lforlh liD. of ilul Cily of Donlon landli11 PlltDlit 1l01llldar:y and
eontinuing across !he 1.9355 aO>:O lraot, in ell, e101lll dlstence of 164.1 fest to . lJ2"lRS fllr ihe
South.ast comer oflbo bercia descn'bed tIaCl;
THENCl! Norih 89 Degrees 05 Mion1J:sl8 Soconds West acros, the 1.9355 actO tIael. disautee
of 113.90 f.,.t to am'lRS filr'd1e Southwesleomor of'tbo herein desanoodlr.lCt;
THENCE Nonh 01 Degrees 35 M'>m>tos 16 Seconds East al""g the South odga or a conmb:
pecking lot across Ibe 1.9355 act. bet passing ot a df,tanc. of 115.9 fe.t the Nol.'fh line oflbe
City of Donloo l>llldfil1 Permit Boundary :md confinuillg, in all, a lola! diatarme of 16S.l roet to
lb. P'LAq! OF BEGlNNlNG \lnd t:D.ctosing 0.428 of an am ofhOld.
,
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, Exhibit B to Master Lease Agreement
Coleman & Assoc. Land Surveying
P.O. Bo. GaG
Deuton. rJ~x:t$' 76'202
Phon. Io.W)505-B2151'"" (9.10)5[;'0000
TractTwo-l'a:rk1ng Area
0.519 afan.m ofland
FJELD NOTES to all of1Jmt certain tzaet orland sitnltled in the G. Walker Survey Abalract
Number 1330, City ofDClrton, Denton Ccunq.TelOlS and bemg . part of the ealled 29.612 acre
)taCt do,oribed m 1Jm <leed frcm lIarold C. Co. 10 City of n...ron TCcorded and", Clerk's Fil.
Number 95-1tDD720G3 of lbe Real Ptopedy :R.cO'Sw. of Denton County, T.""s and pm of 1Jm
can.d 18.157 ""'" 1rnet d..crib"d in 1Jm deed A. BenPinn.n, Ir" Tr..lo City ofDonton re<loriled
m Vohnn.1902, Pago 319 of1Jm saidRcal PropertyRecD'1lls; the snQ,jeclTrac1:'being more
particularly dcscribcd as l'onows (Bcorinll" basis is TOXllS CoordinaTe'Systt:m of 1983, North
CIllIIIa1Zone-4202 based"" <lI'S tie. 10 City ofDenlOD Lan<1fil1 Geodetic CmrtroJ),
BEGINNING at tb. Southeast 00DlIll' of lbe tzaet being <le.en'bed herein BI. . l'x.1lmI set in
COncrete and bcingNorth 88 Degree. 18 Minnb:o 36 Seconds West. distance of450.1 f.et, North
a8 Degree, 45 MimtIos 59 Seconds West a dl.tanCtl of 246.6 feet and North 01 pegrec.41
Mbmt.. 59 Seconds West. distance of 38.3 r.etftom a 112 inoh irouod with a yeUowplastic
cap stampod "CollDIllDl Rl'LS 4001" round at an angle point in the North line of1hc City cf
DcnlmlLandfil!PeanitBDlmQmy;
'l'HllNCE North 88 Desrees 43 Minute, 11 Seconds West across lhe 18.157 .cre 1Illet and the
29.612.cre trnot. dlGtllno. of324.0 teet to an "X' .et in .oncrete forthc Norfbwesr oem"" of the
herein clesoribed tra.t
'l'HllNCE Notth 00 Degree, 53 Mioums S2 Secoo& Bast aoross lbe 29.612 .ore ttact a distaIlce
of69.9 ~t to an ~I st.t in it QOJ1~tl; GUto.for the :N"orfhwe.st oomer of'the herein descnoed tractj
'l'HllNCE South 88 nesm' 49 Minulo. IS Seoond. Bast a.ro"!be 29.612 acte tract and the said
18.1ST acre tract and continuing aloI1S Ifu, same course, in. all, a total disl:a:noe of 320.8 feet to an
nX'" set in concrete:fur the:Nort1u:ast comer of the herein de~"bed tract;
THENCE SoUlh 01 Degrees 41 MiolItes 59 Seconds East acros, tit!: 18.157'0I0 trnot . distan..
of70.5 feet to a !be PLACE OJ; BEGlNNlNO and cnclo,",&,0.519 ofan a.,. oflancl.
EB 3S~d
~NIA:3^~ N\iW3lOD
B.8,g9ED!>.
!>B:9t 9B8~/'~/88
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Au.g 28 05 01: 17p
Exhibit C t~ Master Lease Agreement
Coleman & Assoc. Land Surveying
p.o. aox 686 '
))clltou, Tcns 7b'202
!'hone (!),J0)565-B2J'\ Pox tQ'lI))1i!i5.fl800
met One-Ollie. Area
0.201 Dfan"",. oflmd
:l'lEID NOTES to all of!bA1 ocr",", m~ of I:mtl ,illmllld ill the G. WaIlrer StJ11Ioy AhsttootN....or 1330,
C'Jty OflJe:at.DD, Pcnbm Col1ntyTe.xDB find being: a put of lhl: aille43.615 aore 'Ihird 'nactnnd:pllrloftbe
c.lied 0.359 "". ~.udh Tnetde""ib,d b1 tho deed llam Georg. J.l<EJ et ..10 Cily of'Donton raoordOt!
tmW:r Clerks File NOl1lb" 93.1Ul066773 of the llI01l! Proparty Re'otdl of Domo. Collll!)', :r",,,,,: the
sobjccr 'Imct bcmg more particulmly descn"bcd tIS' fbllows (nearlngs: busi~:is T.exns COorCinnfe Sys:tem. of
!!l83, North Central Zollc4'202 b..04 o. GPS ties to CIty ofDcotonLllIldfill Ooodctio Contro~:
BBGlNNMG atibt;: Norlh.~t COlDltt af-flm traOf bdng deBtribed hmin ~ 1l. 112 iDth kOD =a s;t with :.\
yeliowpiJl&llc oap'~ "Colem:m1\PLS 4001" ," (be:ein.fl,,,efo"et1 to esllZ"lRS) atidbt:hlgNDIlh
88 Degms IS Mlnutes 36 S","'" Wost , Oiman.. d' 4S0.1ll:", NO<llJ 88 notr<:"" 45 Mimnes 59
Secol1dsWC51a di&ttmno of719.5 ll:otomlNonh OlD'g=s30 Minute, 01 S=""!!os" ilslall'O oile.7
.teet tiom a. 1/2. inch iron lad with B. )611ow p1utie cap ~ed ..rca'1t:man RPLS 4001>> found Ill: an angle
poll1t In the Northllim of1lm C11y ofD,lllonLondfillPo=it Boundary;
TBa'Cll Soulh 02 n,gr'es 30 MimJh<s 07 Seconds West non'" the 0359 _ Potth Tmotp.9SlnS 'It a
_ of 16.7 reot lb. oai<1 No:th 1m, .f1bc City ofDonton I.ondfiltP"",", Boundaryliod collllmllng, in
nn." lol>1distmoo 0174.5 twit<> al/2'JRS lilriho Solllhw", com" orlll>...... d...rlb,dtrao1;
mENCIl North 89 ])ogr'" 29 M!lli1"" 17 SoeOlldo W... ,,,os'.tho 0.3;;9 "", FOU<t11 Thlct passmg tho
ooznmofiJim: bblWl:C'D. fhc 0.359 ~Fourlb 'fu,or and. tfu: :;.615 aln"C Tbird Tract and continuing qlOllg the
GaID& course, in. n1I, a UlUlI cllstanot; Df 1233 feet to i1 1J.2DDtS fer the Scufhwest come! of the hCIem
&sedb'd tDl<rt;
'IliEN"CE North 02 ])e,srecs 43 Mlamea 16 JSecaDns East Ul*05S lbe 3.615 a(:l:C ThIrd 'Jiaat pamng at a
dl.shncc of 59.4 feet Ihb Nmfh.linc of'tba City ofOenlonLandfillPemmBomWary ~d contlmIln& m n1I. a
ltdSldistm:1c~ of76.3 f~et1Q a 112''IRS for the NotIhelUltcm:m:r cfihe h,:rdo desc.rlbed ttll.ct;
'JlffiNCE SollIh 88 Di:gmt:S 33 Mintth:s *5 SecouQs East acrOGS thr; 3.615 tl.cn: Third TxactJlBSSIng w. said
comtUQU line betw~en 'thl'1 Third Tmc:; and me Pomth 'IIa!:t mui c;lontfmring along the some eoUCle. in '3ll. a
lOW d.i&mncc ofl22,!) !cettD PLA.OE OF BEGINNING and ilnelQstng 0.201 ofan.ll.C:tt. afliU\d.
oB 3!l~d
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SUBLEASE AGREEMENT
This Sublease Agreement ("Sublease") is made and entered into by and between the City
of Denton, Texas, a Texas municipal corporation and home rule city ("Denton") and the Denton
County Transportation Authority, a political subdivision and a coordinated county
transportation authority created pursuant to Chapter 460, Tex. Transportation Code ("Sublessee")
on September 30, 2005 ("Effective Date").
RECITALS:
A. By Lease Agreement dated November 8th, 2004 and attached hereto as Exhibit A
(the "Lease"), GE Capital Modular Space ("Landlord'') leased to Denton the modular buildings
identified on Exhibit B (collectively, the "Buildings''), and Exhibits A and B are incorporated
herein by reference for all purposes.
B. Sublessee desires to sublease the Buildings from Denton for the term of the Lease.
C. Sublessee and Denton entered into that certain Master Lease Agreement dated
September 30, 2005 conceruing the land where the Buildings are currently located.
D.
Sublessee.
Lessor has given its written consent to Denton to sublease the Buildings to
1. Recitals are incorporated herein as if initially set forth herein in verbatim.
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NOW, TIIEREFORE, FOR VALUE RECEIVED and in consideration of the terms and
conditions herein, Denton and Sublessee agree as follows:
2. GRANT OF BUILDINGS. In consideration of the obligation of Sublessee to pay basic
rentals, additional rentals and other charges as provided in this Sublease, and in consideration of
the other terms and provisions of this Sublease, Denton hereby subleases the Buildings to
Sublessee during the Initial Term and any month-to-month tenancy thereafter, subject to the
terms and provisions of this Sublease.
3. INITIAL TERM. The initial term of this Sublease Agreement shall commence on the
30th day of September, 2005, and end on the 8th day of November, 2005.
4. MONTH-TO-MONTH TENANCY. After November 8, 2005, Sublessee shall continue
to lease the Buildings on a month-to-month basis subject to the terms and conditions hereof.
5. CONDITION OF PREMISES. Sublessee has exaruined and accepts the Buildings in
an "as is" condition as complete and suitable for the purposes for which the same are leased.
Sublessee hereby releases Denton from all liability or responsibility for defects, latent or
otherwise.
6. RENTAL. Sublessee agrees to and shall pay to Denton at Denton's offices in Denton,
Denton County, Texas, or at such other place as Denton shall designate from time to time, as rent
187662.6ISP3/131441O 1 0 l1092SOS
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for thc Buildings the sum of$I,059.08 per month without advance demand on or before the first
day of October, 2005, and continuing on the first day of each successive month thereafter during
the Initial Term. On November 8, 2005 the terms of the Lease between Landlord and Denton,
which Lease has been sublet to Sublessee by this Sublease, provides that the tenancy shall
become thereafter, a Month-to-Month Tenancy. Denton's and Sublessee's rent for the Month-to-
Month Term shall be at that changcd ratc, if any, required by Landlord for payment by Denton,
and by this Sublease, by Sublessee. The amount of any potential rental incrcase or decrease is
not known by Denton at this time. Denton shall provide Sublcssce with immediate written notice
of an increase or dccrease, if any, in the rental amount within forty-eight hours of receiving
written notice of sane from the Landlord. Dcnton and Sublessee agree that the rental obligation
of the Sublessee under this paragraph shall be prorated on a daily basis.
7. ASSUMPTION OF ALL LEASE PROVISIONS. Subject to Section 6 above,
Sublessee shall fully comply with all provisions of the Lease as if named therein as "tenant".
8. ADDITIONAL INSURANCE. Sublessee shall obtain and maintain the insurance
described in the Lease and shall name both Landlord and Denton as additional insureds and
Sublessee shall cause each insurance policy obtained to provide that no cancellation of such
policy shall be effective unless and until Denton is provided with thirty (30) days written notice
of the cancellation.
9. ASSIGNMENT AND SUBLETIING. Sublessee shall not voluntarily or by operation
of law assign this Sublease nor sublet the Buildings or any interest therein without first obtaining
the written consent of Denton, which consent may be arbitrarily withheld. An assignment or
subletting without the written consent of Denton shall be void and shall, at the option of Denton,
terminate this Sublease. The consent by Denton to any such assignment or sublease in anyone
or more instances shall not constitute a waiver of the necessity to obtain consent to any
subsequent assignment or sublease. Acceptance by Denton of rentals from any party other than
Sublessee shall not be deemed an act of consent to assignment or subletting and shall not relieve
Sublessee of its rental payment obligations under this Sublease Agreement.
10. DEFAULT BY SUBLESSEE. The following shall.be deemed to be events of default by
Sublessee under this Sublease: (1) Sublessee shall fail to pay when due any installment of rental
or any other payment required pursuant to this Sublease or the underlying Lease; (2) Sublessee
or any guarantor of Sublessee's obligations hereunder shall file a petition or be adjudged
bankrupt or insolvent under any applicable federal or state bankruptcy or insolvency law or
admit that it cannot meet its financial obligations as they become due, or a receiver or trustee
shall be appointed for all or substantially all of the assets of Sublessee or any guarantor of
Sublessee's obligations hereunder; (3) Sublessee or any guarantor of Sublessee's obligations
hereunder shall make a transfer in fraud of creditors or shall make an assignment for the benefit
of creditors; (4) Sublessee shall do or permit to be done any act which results in a lien being filed
against the Buildings; (5) the liquidation, termination, dissolution or (if the Sublessce is a natural
person) thc dcath of Sublessee or any guarantor of Sublessee's obligations hereunder; or (6)
Sublessee shall be in default of any term, provision or covenant of this Sublease or the
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SUBLEASE AGREEMENT - Page 2
787662.6/SP31l314410101109280S
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underlying Lease and any such default described in this Section 10 is not cured within thirty (30)
days after written notice thereof is received by Sublessee from Denton.
II. REMEDIES FOR SUBLESSEE'S DEFAULT. Upon the occurrence of any event of
default set forth in this Sublease Agreement, Denton shall have the following remedy set forth in
this Section (11) after giving Sublessee thirty (30) days written notice:
Denton may terminate this Sublease Agreement, in which event Sublessee shall
inunediately surrender the Buildings to Denton, and if Sublessee fails to
surrender the Buildings, Denton may, without prejudice to any other remedy
which it may have for possession or arrearages in rent, enter upon and take
possession of the Buildings, by picking or changing locks if necessary, and lock
out, expel or remove Sublessee and any other person who may be occupying all
or any part of the Buildings without being liable for any claim for damages.
Sublessee agrees to pay on demand the amount of all reasonable loss and damage
which Denton may suffer for any reason due to the termination of this Sublease
under this Section (11), including reasonable loss and damage due to the failure
of Sublessee to maintain and/or repair the Buildings as required hereunder.
Sublessee may terminate this Sublease Agreement, in which event Sublessee
shall have no further obligations hereunder. Denton agrees to pay on demand the
amount of all reasonable loss and damage which Sublessee may suffer for any
reason due to the termination of this Sublease under this Section [13), including
reasonable loss and damage due to the failure of Denton to maintain and/or repair
the Buildings as required hereunder.
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12. DEFAULT BY DENTON. The following shall be deemed to be events of default by
Denton under this Sublease: If Denton defaults in the performance of any term, covenant or
condition required to be performed by Denton under this Sublease, Denton shall have thirty (30)
days following the receipt of written notice from Sublessee specifying such default to commence
to cure such default, provided that if Denton has commenced actions to cure such default'within
said thirty (30) day period, Denton shall have all reasonable and necessary time to complete such
cure. (If any utility services provided by Denton shall be interrupted, Denton shall not be liable
in any respect for damages to the person or property of Sublessee or Sublessee's employees,
agents, contractors, patrons and invitees.)
13.' REMEDIES FOR DENTON'S DEFAULT. Upon the occurrence of any event of
default set forth in Section 12 of this Sublease Agreement, Sublessee shall have the following
remedy:
14. COMPLIANCE WITH LEASE. Denton shall at all times comply with the Lease. Any
notice received by Denton from the Landlord or any other person related to the Lease shall be
immediately delivered to Sublessee. In the event of a default by Denton under the Lease,
Sublessee shall have the unrestricted right to perform on Denton's behalf. The costs of any such
performance shall be deducted from future rent payable to Denton.
SUBLEASE AGREEMENT - Page 3
787662.6lSP3/131441O 1 0 11092805
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15, TIME OF ESSENCE. Time is expressly declared to be of the essence in this Sublease.
16. BINDING ON HEIRS AND ASSIGNS. Subject to the provisions of this Sublease
pertaining to assignment of the Sublessee's interest, all provisions of this Sublease shall extend to
and bind, or inure to the benefit not only of the parties to this Sublease but to each and every one
of the heirs, executors, representatives, successors and assigns of Denton or Sublessee.
17. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this
Sublease are cumulative and the use of anyone right or remedy by either party shall not preclude
or waive its right to use any or all other remedies. Said rights and remedies are given in addition
to any other rights the parties may have by law, statute, ordinance or otherwise.
18. TEXAS LAW TO APPLY, This Sublease shall be construed under and in accordance
with the laws of the State of Texas, excluding conflict oflaws provisions.
19. SEVERABILITY. In case anyone or more of the provisions contained in this Sublease
shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision hereof and this agreement shall
be construed as if such invalid, illegal or unenforceable provision had never been contained
herein,
20. PRIOR AGREEMENTS SUPERSEDED. This Sublease constitutes the sole and only
agreement of the parties to this leasc and supersedes any prior understandings or written or oral
agreements between the parties respecting the subject matter of this lease.
21. AMENDMENT. No amendment, modification or alteration of the terms hereof shall be
binding unless it is in writing, dated subsequent to the date hereof, and duly executed by the
parties.
To Denton:
City of Denton, Texas
Attn: City Manager
2 I 5 East McKinney Street
Denton, Texas 76201
Phone: (940) 349-8307
Fax: (940) 349-8596
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22. ATTORNEY'S FEES. Any signatory to this Sublease who is the prevailing party in any
legal proceeding against any other signatory brought under or with relation to this Sublease
Agreement or this transaction shall be additionally entitled to recover court costs and reasonable
attorney fees from the non-prevailing party.
23. NOTICES. Any demand, notice or request provided for by this Sublease shall be in
writing, addressed to the party to whom notice is to be given, and shall be considered as having
been made (i) if by hand delivery or facsimile upon receipt, or (ii) if by mail, three (3) days from
the date of the placing of said notice in the United States Mail Service, certified mail, return
receipt requested, addressed and postage prepaid, to the addresses shown hereinbelow:
SUBLEASE AGREEMENT - Page 4
787662.6ISP3/13144/0 1 0 11092805
To the Sublessee:
Denton County
Transportation Authority
c/o John O. Hedrick,
Executive Director
1660 South Stemmons
Lewisville, Texas 75057
Phone: (972) 221-4600
Fax: (972) 221 4601
With a copy to:
Strasburger & Price, LLP
Attn: Rider Scott, Esq.
2801 Network Boulevard
Suite 600
Frisco, Texas 75034
Phone: (469) 2873906
Fax: (469) 227 6578
[Remainder of Page Intentionally Left Blank - Signature Page Follows]
SUBLEASE AGREEMENT - Page 5
787662.61SPJIl3144101 OII092BOS
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EXECUTED as of the Effective Date above.
DENTON:
SUBLESSEE:
City of Denton, Texas
215 E. McKinney
Denton, Texas 76201
Denton County Transportation Authority
1660 South Stemmons, Suite 250
Lewisville, Texas 75067
By:
~~~Jc
HONORABLE EULThffiBROCK
MAYOR
By:
ATTEST:
ATTEST:
JENNIFER WALTERS Denton County Transportation Authority
CITY SECRETARY ~
By: qMlil1eit~ O~~ "
JASO ~ . e...u...
SECRETARY
APPROVED AS TO LEGAL FORM
APPROVED AS TO LEGAL FORM:
EDWlN M. SNYDER
CITY ATTORNEY
B'~tr
~
&l\.
By:
RIDER SCOTT
GENERAL COUNSEL
I
SUBLEASE AGREEMENT - Page 6
787662.6ISP3/131441O I 01/092805
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Exhibit A
LEASE
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787662.6.lSP3/t314410 1 0 11092805
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Exhibit B
BuildiUl!S
787662.6ISP3!13144lO10 1/092805
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Exhibit A
LEASE
787662.5/SP3/13144/01 01/0921 05
,.
GE Capita/Me/dlllar Space
. modspac.;-ccm ... .... ...... . ton~ NOU
~ AGRE;~mNo.~
9 ~r'NO.
cusToMeR'hO~
2:;;5246
265734
528GS2
483677
Rt"TUflN EQUlPtdENTTO GEq~;.
OAl.l.As .
~$ C,IIRBON RD.
IRVING .
:rX 7503s
T~tephone:
. Fax:: .
972-252720(11 ..
1 ..s>>s23-791B .
S72-252-2201 ..
. .
. . . .
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. .
GE~~MOtnjLAlisP.>.CE,~di....loriolT~I","",.ll"""I!'<>Ol.Inc., .Pen~\..a.pC.';;llon ~
h nt.y ~ 1l.aaquipment ~ lJOlow {ii,io -Equlpm.,it'j to; .. ...
,... .'.-,' " '... .."-,_.,',, "--'--, --,',.':"','-"..'. .
Ctrv OF DEt:rtaN
?is .s)&:Kmoo-r $i
DENTON . . .
:rxi.;:zai-'\22S
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The EqUi,pmer.n_w~U:'ol:'l~tB~ a.t{s.u~~tO~,jon 4
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5'0)'9 e046
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TBtl .
l.8ndftllSolidWa:St8"Of'flCo
i 10G M<ivhUl lid
DENTON
TX 7020.
C...i....4-\i~yl~ "<lulp~ fn>~G~#r.n.kunusm I>eri<>4 oill.m.llU1il1h;,~~~~i.e<<..~1 ft<>m
w.......... .......... l.f. th. ;,.\oil$O """'. in _.. . ...... .. WIlh th;,."'.. ;m.;,1Id ....ditIa"s 01_ Leao.. ~. . ...... .. iriil"dllis ibe__.
....~-#i1>r6>O~lIIe;;.;;.d.e4.#Sel~~~~':~_rIlhbdefuuJd...ll.\itY.o8y:~,:.;~. .. .. .
~r~~1O:paYQ~~~.~~~~~.~:~~~.:~~tM monthty~~~~~r#~~otl:~dC~-c!atissset
forth_ti,t~~~',Tt&L$l'lIM~he~y~,~.~.'i#'the..:51:tH!aYof~1' ~,:::. .' ,. "'. '.'
. ,."- - . ' .
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c~:.:~_,Ifk~ ttJ Gmvllin'~ 9~~nan~~~~_:program subjt;C1 \0 $cctiQn j~ .ot"~~-~~P8~~~:C~r
here'PY.~~ges that ~~~:hlS_s.~ee~;~~d~~~1h8 Outline at CD\'8f8ge ~4~S$~~ ~~_'QP~ " to
disc,~ ,~B~ and'~l otnsr j~ r--ith t(~g~~H=nsed i~.mmec e;ent forme QpUC1N:il,lns_' ~
'"l1I
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[UrnI-: .1 Cln. . t WktU't I Lerigth I semi No _ _:_, Mcnt."l!y I'WtektY'"
. 09601.. 31..EP. LX. 1'2' . 56' I TXlAOK99B437 I $293.51 $67.5
\ 1&1723 EPLX ;2'. . 56" ,1XLA(lKOOB290 , $293.501 $S7'SS
(151714 EPLX. . 12' I .55' I TXLAOK9OS281 1 S283.001.$S7,. .
lP.!lE11MEaw.GES.. ..... . -i I MONnlLY C>\I<I\SES .... -> ..
i REl1JRN DaMllY . ... . . II COM?'..EX . . ... ..
EI\JIUllNGllEiVllW 1lhr".i$075JlOl.. ..'~-:i In;.:t'""{~'I_Cb<l;iu. ..=--.
!o:sr.w.'14NG ,'_ - , ~1In-"Ura..ru" --' >' " -"
I. rEAROQWN.C:OMFlB(",tChY.tat'$<.1ca00 ':S4.1QaOO j - (un~C:Ut'$IL47..m_41~~
Till3I Sol.m.m)' IUnlt3:' "1ll.4S.lO.E""mt,
lUn""htlll.3ll.111Je~ .
~WatvU - ",:: -, '_.'--
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: $9.55\ $16.211 .
.. $9. ss: _11.128
$9: 63\ . 524. 725
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GE Capital Modular Space
modspa~.com
LeASEA..l1laM9lITNO.'
~.~A.GREEMalTNO,:
Acci:nmrtio.:
CUSTOMER~o.:
25S24S
269734 .
528662
483677
RETURN EQUIPMENT TO GECMS:
DALlAS
4255 CARBON RD.
IRVING .
TX 7S038
Teiephcne:
Fax:
972-252-200i
1,SOll.s23,7918
972-252-2201
{Continu.ed)
-EItieli1l11!l;l'JnallDll
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$2liss
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kcept'C4 and bet By:. ~
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r\em.rta:
R~\I~ end ~uid'8y:
Name::
Date:
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GE Capita/Modular Space
modspace.com
Form:
US2002.121S
TERMS AND CONDITIONS OF lEASE A6Rffik-m
1. U1H .
This" L--='..ioo lr. I. itue lI!i deft=:! by d:c UlIuoml CcmI!".C'Cbl Codt aJ ~ lr. P=ymr.1a 8JIli roM I ~'t.. CU'tG.~ doe!: 'ColT. w#re It.:ouil'> lbU Leas: fII' by
p:lymt:dofrer.W !:l:!ce.i$.l.a!l~ a=l.yri,ht.titko: imcresti:r.o:-lPthe ~JlOl'IZl'..tuqlt1l-.erliln III possea W Il!C~ F,:r.uprr.cr.:JO lo"iU~K oot in -dc".dt
~Ci:sl.nsc-
2. fWlttllll40dltr"!'ay_.U.
(a) Th: ~orl~kase!em: i.I :.1Jc4,t.e oa.rnkhQECMS $\lbsm;Il~co=pt=sill;$eopeo{..'Otkf:Jr ks:1fJllion.\al\=o~'~UI ~lbepr.i::L MO'lItbly
1V.lllI.,ll..-cnxWllupllldir.cladillllhc IIlOCIIh~whIeht!>J:1i1trof1be~mD:ll: Cll'"EA4o!~Tc:llI 0=:."". 'The"R$n On: istmda~GIl..t.:dllbe CquiplAl:nl
is ~~~GECMS ",~witf: ~lc:=I ofthi$Lcu:. The.fn:!, of1f:f T=:t" b~~~(l:;lwb.id!Ibett:JJ\l cf\flk t.nsc is to eqril't,tilhcr~, WIder.
~ltc:morlmdcr~ro-mcmh~ I1cont=p1a!e4bytbl.tL=.se. Rm!2l' u4.uehothat:br~1IIl1lbc prIlBtc:dO!l a biJybW~~. tblltis
o:k:v.U:: ~Ied b ws !..dJ; cWp to:' ulivey ud i~.oJ"~ bili:l men:h'1 m;: wi. 'tll'f appl.cabJ,: il:itial d#ftc for t1:e 0pti0P.&l ~ Prognm 1M
Duna;e Waiv;r'li111 btdlZ-lllC! 1UY;G~:. ~ r".-t oJIhe I=uc:~, and r;batges ~tt:::1!a'M1ll!1d rc.um IIiIIl be d=m! pt.~"1bl:x fheca.rliet o!6te. ~Dau: or me
End {Ifi~. Antt'P&Yfllrntd1he-lro:ulcamltUe.'t. ~ l:::ontbU'Q.t~U de: an6.pII}'1hkwithctlld:mlandllld.m mllll2i{i)at I:bc c:l:doftu:h lhirty (30) dliy
paiod lbIbwin~lbc _:tiIofthe- katt teml, if. rtm! lDlIlltb ~ c.:!:ned em 1be fir1tp8;F ofL1jis Lce6c as. thllti-'d&ypcrdOl' (ll) Oll the fmtoru.ch retlIl:!l.
,m.'MIdi1!dvfDltGlri:I;!!KftIO:rth in .,.,~il:hl!litk.ucc:orr.:nmc<:J. if't.rcm21raotllhil1!clinulcn tbe,fatpZgc Ohbif.t.e=. ~:ut ~monlb. A.I101bcfSUQtJ~by
C1lJlOlUC:'~1biILenc II:!: dUll~P*-~...t!I:fI b.'iok:d UnbsJV'...::d~.lI ~~tllIodt~llI'lhilt.=e winbe-ca.dz: tr;~cbulC=_Cll
~~tl1rI:::t:ke.~IEO:Cmr.ors=omcrtmoor~ll.luu~mtDGEOdS. A.llp:&~by C'~ wiUbcjm4(..it~~g:l!t&M:d<mtJrury
(Ill O~W\lI payGECMS for,aJ:Y da!! 'Sl;\eslllld UK tLUI,c6edirKtDU'lCId ~!ees impoJtdby~rdty, eou::t}',.d1te, or ~ llO~tor D!hl:r
tuioi~dasncl"'t..wd~yo:in4i:r~to~~OI' itJuse.Q;CIudlr.,~o:lt1lf!\V:C$,",ll!btto\JleDme(UlC!U;~fo;qoir.ilbl~i$-U1
1l*Y. ".au"). Tans n:q-be-al\odel1 byGECMSOII cil1te!' Ul b:idj~\ 0; p;ro:-att::llluli for J:lY lte:ll o!E.quipm::m b=f on Fri..ut prlu, VJfc:c, poncuioll. wc..
}ocaiou. rcnW>. 6c!IVety Of ~ or'wehEqIrir-ntllt. Tuulll2)' inoclude Ill. &llowiO:l OIl I sutcwidc buls llrbQIly ilDpcJlC:Clox=- C~lobllptitmflJDdcr-lhiJ
SIlMeaionwil1 PJn"i\'l:*=m.~o!lt-.GJ;::!M. .
(..) ForCllsto1llCl'Jc.m~QECMS ~tD inUC'il:n'olce5for:unou:l.tsdJ#.tllIdcrlh!sLcue. lf~mc1'UiI'tDpe;)'JJlY~d.=wi.~Ir.twCI\I..{1O) d3ysof
I!.e ~U:::.GECMS =.y i~1. t!urtc IlCI such ~Il.Iltt:llld_iclrpert:enl {l.l:~Ml* ~M l!a hlJ;bcst tllte p=alntdby 1"", Yltid\el.-c:rk lower fieM
1l:e due d.t1e wttil p1r== In !WI is reoc:ivd by OECMS. .. '
(d) Wb~~ l,t:IS! = ~el~ (11) mo.~n::.W cha:rtrner, Zl GECMS's ~,bc~1lp'Mlld. _dtr;oOrlbc~P:iee in=. All UtbaI
t:G1llucers,U.s.OryAVC'I.J:.AIIJu::N:C'O'r"l(1)ni~~9'I!1UUofUbotSntlsrid: or w=i1 0'iI1c" ~ u nl*Y~ the CPI}.uCDlIows: fr;:ocllc:1u:1zr
o!ODt.petemt(1")=e:CPlfromlhcCP1115.~l~ ~ypric:rlO1bemr.~tter1lUsf.ase;.lhe~re:r:will=~by"Ucctror_~{l~.}.
N1'1ldiusaar:nuwill GIla el'fcer aim (6) mOnIhsfDIlowmtlha IlIrtdtll! of'lbist.we snd ~ll be ftuth:r ~tadll1J: (6) :nllnWthe:nAd:. The 6dj1l1tment...-m bo
w=o::tfile~tr.:;cntCP!icldict:$lV&I'1:bk:Jlrlo:1O~i:1't/!1iehJ::lI6J'.lSUnCtrtifl1lAde.
1. DdfYc::rJ ud JlltUn,tko .
(&) CUs>>lllefwiU~ f:l:I!:t..~cIea:'~ bc1dh-el}'cflhe EQu1;o=by lblldm!:a1Ob!h:nr.Ji>>l1\-ehk1a. Cumll\l:l''Mllbtiok:ly~le.ci:l ~ rot
~of1lu:",lleen'iitlIth1ME4u!;I#l~k&obcUled(tbe"Sile.}'~'W4in&::myl'OClUird~OI'";ndc~tmtio:Jsud~ti.:lno{lll:!t~lbes, ~
~ll.pr.:videfinn:a:d ~ ~Ollo(lOmlnd:all..m-Ulcb(5"')dopt'(:alC o."1eendtc lh::od=rrornfe bdWll~Wudblmf:lrme &;:tip::r.em. Sit= leiee1iolIiI
(be ~c~ityofC'tlatlmci".' GECMS ASS'OMJ1i ItO UA.BlUIYNOa OF'FEllS ANYWA.JUlA,."frY FOJl TKt mm:ss all. ADEQU~ OF, OR
THE. umJm:s AVAIU.BLEATTHE SITE.
(b) CwtDmCT1rillhUtlOk~bIli'Y.~~1:OIt, tDobllin~and atl ~.IW..bgs1diAlIlllaomerpenniuand&:lyO"k 'P\lfO\'illl.'llIc::rrlfie.ll.tc:foflS
n-.a'1bc~b:rb."oro~fDrUiCi:ssmtla1ior=mc!p*"='.=tottlito~~IId~IaV.w~~DJlot~O!WEqu!;:'netn.
CUflCnll:l'I~wtIU~rii!ic:l:eilDftitkorrqislu!iOCl~toW~lrcnOClGEQ.{S'sC\\lllCl'Sbip.orcbcEQ.llipmt:nt.
(..;QECY~&:~of=-~lJl':lbjcc:lllll~)'I~ritomflcatioll.ddk=tor~dw:II)fft.fIi:lod.'A'iodstmm.rioLciVS'diIobedi~
strh or ottIcr bOor K\iont., IKU of 004, or Ill}' ~ b=yond QEOdS's QlflllUl("mcNdln;: but 1KIl1iWw::d to \m:ad by QECMS', .ulKo~OT
tN-~)1I'tll=bC$y1ht~ort;'.Gdl5:ltiong{;:od\C.~1be mUlnratdelNaicsia. l'henam-.:IIClOllI'1:orbm:inc:D.
(d) 11le pri;el foT~. mse.JlatiOfl, tcIniowD, ft:llIm del~Cf)'w1~~' cbllftX:l. ~ ~ ~ Gf"""dtqes.cd dx: ~~ c!ltisLd.# USUll:lt
u::c=:t.::ygftb=.l=!c~~~OECMS,"'i'.hrupoc:cfOSim~mc!~onsUJd-.~~a:t~~~~Ib::~1l:a1'.h:U:lin;:Ofo:~l~or
actflS\DlheSil:cbOlbcDomcslimild.filesm:doi!SlIOthaVf;.~\0:!4bwi."liar~~qiAtbieJarilril=nns;nol~~Cl:illtiCi~rtntltCOEnetl'
}:)a:cd.pnMslCIlofW!itics:isllOt~cr~ab1:~crpcrlllhs_1'lCIpoovidcd ell tlIr.clyDo:::na arCtls~~d=b.)'S ~ofGECMS'r
-"~"
{d OEQ..IS rray ~ -.rDJ'c It tileSitz irGEQ4S lk:c:N 6l: $heu. be w:safc:-
4.M....~o(E.qutpf'OC.ll(
(.J.)~..ntllllJtlMV1larinClnyWl'flllC4irydJeEqgi;l.."'l:tlll,,~wrilwI~ofGEQ.(S. l'\~GECMS'sc.ans:mb:lCdtoma'J:mod'!.~o!1be
ECustcmcrillilbl# Co:flhe cestClftbc:remowl olcuct:~fic::a:ti.o;bor~Drlbl: Eq\ri;lll1ell!.upoIl ttlC1e=ll.' lion of tllis lca.n forCe mcd:.'iod
pmc:ll1. upQ&SIU}'~i1s~rolllbe-~I:l:!C:uaDmtt.mISlun:th.=_tillld.~ct~$lcOfillptrt.
(b Cust=:l<<.at~SOk.:olt,Wlll~~Cqclpzn=llteJltbltJ\CllnIheIU:tumDnefriJoodreplirlM'Olpc:miocC'DnditlDn,nbjeatollflfrwy\lfC;;ll"llld-
DId &-te of&.'\)' tM~1 liecs J:Cd ~ GOCMS."iIlb'l't lhcrigl:teo tnwca IheEq~hemtimeto Ume'lllltlllhcitctunlDJ.tc: W i!GEC."'lS~*
~~bcm~lIlmedor""J~GECMSmAyIlZlllllW'11'1Jt1l'1OvcaoclTCJlOUC5ftbe~liC1lsUlrnc:'lcon.
(10) CUI'.="'ill~ c:uaa.and Cl:lClill,-wilh dll.a'M.t:icb lnUlY''I.YL~~=,IIiPcntloa. ~,0!"11o~c!t.:. ~~. "l..n-:" naIM aU
1rA'S"nArqu1Il.iOlDOl'oniasllfltiY~.~.OI'~ity~ftbeUllilell~c:s,~any~~~m\ll\itip:lliI)'~.othetloa!"'~
rd.Il mluS.1'I'rl1l cd ~ ofl:l1co.\Il'l,t:)Im'ldOl' ~vc~. ill '-"if c:as: wAidlnow c:tis1OT~&n:Se (~h:dlnJbl1l ':lOt f.inilcd.~ - JOYcnir.g
~ $:.lbsUngCSPl! odI=r _i.~1 rilb md 'lhc AJr.cricw ~ OiAbiliries MI.). Cur.omct wm not tnlIb: or pcnnh 1:1)" \l:l.bwf\ll \I$l! or hcdlina o(the
~w.RDOUSSOBSTA..Iices. (i) '1luardourSu'bfla;r;es.-.r~I.lOXk,n&dill.c'dw:Ol'.~~Ol'pt.troletmlproduen. (Ii) C\:sto::Jl:r
~t;;'"'~llrs:on:Ha=do~SL-bs~inIbeEq~eu:e;Y.Jlld;~il:tuch~ticsaw;d&eCOl'Tll;t) ir.th::opcn."';.:mllf~eOmmctcie1o!iiae..
ClIStWnCfwillllOt IoCdC die Eq...ipmmtll' remedill.'tOn<<lIUClW' PlIOI' IIftlbe &;cipmtr.tfor medial bbcmllll')'~tinI- Oii) QrdinwyOM:Uznd t=r~aol b.:lllllc
tolUMl=uicobylh=&u~ lfmr~~is!o;NtoQvebtt:llt:O~by~SUbmllccIlIlIric&:~,pg~aRCt.iS
JIIllYcbs...p~rllC'1bcId_II1WrDl1~Cusn;Imcl~thcEqvipmctl1&t~lh,"ClmCIl:tnu\l:et~hm<<lf=No~..mt.
(e) ~~ th::-IhcEqui~1cUdh~W\Qt1lltbt~b:; l.'I)'pasoa.o'.ht:rthluClw.tl=o:m~.iClllS.atp~or ;",~.. ~ EltuipmenlWlll
s. r:rO'W~i/~~~~~~Ollmmss .
THERE AU NO WAR.1W\'TIES, EXPRESS OR 1MPUED. ANn A.LL w.AlUUJ'inES OF ANY 1CItID, INCLUDING ANY E.XPR.ESS OJ.!MP1JED
WARJlA,.l\TY OF MEaCBA.'~'TABn.tt'Y QJ. 'fTt1\L"ESs FoR PuRl'OSL ARE HEREBY EXCL1:'DED Jl,OTB AS TO THE EQUlPMDl7 AND AS TO A....'Y
C'fSTAI.l..A.nON, fl.1ADo.TENM'CE OR REPAIR WORK1'IB.FORMED BYCECMS ONnn: EQUU"MENT.
(j. LbuJtatlo.. ofDuaqd
cw.omerGoc:l;btrcbYCXJ"ll!Ywai'tt:l!l)'bldallclaims1rU!~fDrlonorproftlsOfolberln~eollSCquentUl,inc~ta1Ofpunili'l'C~~~O\Uofetln
W'.JICClI:m\"Uhthb I...c:&K. a-eCMS is nali:bleflll' IIIY}oJSOl'~!O ZllY propenySllRd.loa%tdO!'~-=;:om=dir" llpllIl.U:ukro:rr~'(I~.'ld UJY~&nd
ClUlolJlCI"~l!z:'dly _ivtmy andIUdlimstl'ld~arUlYS<lch \onorlhnage.
.
GE Capita/Modular Space
modspace.com
Form:
US20021216
"TERMS AND CONDIfIDNS Of lEASE AGREEMENT
,. ~~lpCcif'dll~.CIlSigtW:lIllUJ:lJ,i\.~GECMSJix1y(60)Ib)l1'p:iorWl'i;er:roD=D!d-.edmllIlWhichtbcEqu' 11i$1O ocre~
(b~ I(CllllOrncr..,..u~J.l1Y!urll-a..ritftf\~al~l!UCJt(lp:;.S'eJ;S.OI~k~aktt=u;l:~er~icltialu.dllllroe-~.,.i)=l)rLcue, \l,1r.h
C["'1lhllll!UlT.$l:ft:ofQl;CMS,~=::-,"11'-=~~toh..~~elibl$t.-or.ll.mcrA\-~!;:uis~:Cfl>6.nle;uGECMS&:c:1zmIobc. in eF.e.:t
{r.od ill ~lbs=e-orSllcb&clntiO'll;lthl:~lIlOnthlyl'll:::lpp'-i;abk ill ~1).actd QECJI.5 nay ~suc:hmonlho..mllllth ut=lriona :rtIn~time.
(e) II: It any tiQt ~ftcr 1he Qritial or lUlf ~'3i teml (or ~ G:iiCMS's ~..o;l Ll EtlY timz: this Lcue i:I oc I mall2h-~ Wu.), GtCMS ~1d':I flll rct'.117l or lh~
tqci~,Cuao=.;nms.."':t ~~ tDOeCM5. v!:dti:irn(S)~IItGECMS's ~aMrm.a:Cumm'.ctJ !OlceOCl Mli.sin6~.el,
mad.TnC1lSaromeritems,repalnoraily"kindI:ld:enontionllOcd:~spel'Jfia~whelherdutla CUstll:nerll~llf~!twilJ=L~tbe role rel;pomcihifuy
.or~.IIOfl:'IIl...u:=lC!lC:t=:~
(d)~rMY~:hbLwe ;:riortod-.cup~llfl:JeMi::limi.<ml...tutl'erioc!,subj~tga111c:nnsand l:(Ir:dirionso( thist.euc,U'.dlhc~lIl::'will p&y{lll
addidoflw~n_ld=lcltqe5)1hefolb~~cm ~
i)l!Cu:tt=reJis ~fil'$:!$CI' oflh=Eq-J.l;nnm: 1!lemll1ba;t:r.;:Iid~Ic!r-".5taUloMi:ri:w:nl..ew: PdM;
ii) lfCastl:mc:uwt u-"tfultuscr: W jrt!zn:nuifllllJ.Mic1mllJl\LcalePeri~ rMI..P")is leel i:h;md\rt.e~) rculfI1Dnd<.s, lOw {4}~ t.~ ~IJ$te:IW=c:ldy l.etlie
~ ("AVt'lC"); (I!.) il'tht mnainil1l MI.!' il \d~ilI:Ilttvet (3) m=:. ~ Pld p,: (6) rt;I.W a=:hl, ~hD.iYt,cigbt (i) timd lbt AWl!;.; i: d:e:c:n:.lni::g MLP
is meR" W:n 1;;X (6)l'tI'ltMffIOlllbbut tme(l) yt:Z."ot-.nrel~(12)UmeJ ':he AWlJ.::. if~ mn:lnlniMU' a.c=o:b oae(l))'ellf, (~:n (14) ~ihl;: A.WLC fut
eadI yec, Of p;lrtior.~r.ofdle~lIorthct::m1iDi1liMU'cucellee.
Iii) T~. A:ljum:d ~Ir LeUC'~. 0( -AWLC" r.'oW1$ c.c WcclcIy I...c:scCtL"E< Ius t.'mpo:tion~..r=:int$l:>Ol'!int$ o!v.'1 Cc!!\1o!ly, ~-up, II=:iQ~'n
r~ Of Jimilsr Olle-time ~$ am! ~~JJe:CdJ\1tldif~lilllllllOt provKk41.:1 I .~ =TJC \lllW 1M t:mts of:!lif Uue {:be "Amorti!td One-rtmC
eo,tf") Inllidirioll,~WiIIp:1Y l:afull :htunpid~=~Tlr= ~ In GO Q,$e V01llthet:tm..~lon~b: bttdsofOlefl':.aJeh:.rge fatd".e
mN~~or).Q.l'..
8. Ia4.enUillieUka
CuStOtl'#heotb,y spee:.fll:t.l1yinbmlflo!S.~ to4e.!et.C~~ brmlt$tGOCMS. ns ~"",,,ml1;cntJ r.'O:IlIlll)'~.1lllos1.daiml, IUl:Umu. da.=t*.u"
ll:;rr::iu:ra.~~-i:salld~(iod\ldiDfAl~iccssWl~~~ilOr.5){eo1bctvely.Um:s"~fmawb.etTlm\OT::aco.eJU:cti:NI~'
(I) The bs.s ofar damafc Ul the Equipmmt prior to the ~ Ib.le becauu: otconi:!3I:, lil'lh lUhtnm;:or theft. noocl, wirb!omllXt:qbsion,ci'ild~ot riol or
cro1ilt!"penlorcuually;
(t:)Tilt' d:3thofori:Jju:yto. irIdudin,butnotlimlttd 1O,d=z~tlO lhejl!'oper.yQ!,anype:so:l(oac:-lhullbeEqv!pmcnt)UlTUUhof, i:: wboleo; i'1 put, /be use:lr
.oon4idonpriwI1lIbeReh:n:aDzt:ofUlt~ .
{e) Ariy ~or omiuio:nofCl:no:ac: iIIvio1a::mofum ~
(d) ~ ICk::al Of allepd~ maimenznee. Ule.hmdlina. .ir, 0:- opcnu(l:Ioflhe Equipmt:lll.priorllJtbc: Return Date, lI):(udilllbut nollia>tUld to ",,'l.illll:l"; r:t tlK
c=tho:~ UIY 'Wtt. 114M 01:. or alI~ ~icdtoo: itl Cl(lll:l=tio;l "lilt 1!lD ~,", mail1tftdl:lC:e, pos#Uior.OT dlm:e-c.f:M BqW~ ~"'\y}onQr
~to~m:redinanyofdle~lpmcn1;an4
(e) IwYdmlaae to Custo=cr'tpropenya- tbtpropectyormytllln!putles ~.~dariru:oriu ~ot:wi1b!he fulfllbm:1l1of CuJtomet" ob!iplioTl.byc;ron bo..hllfo!
GEO(So:otbe~I1T1Qln:n:mofEG~byC:2CMSin~-..i:!tfltetams:r!lhU:1.z:uc.
The l\!blipticnl~iJI1hil Se:c::io41i 'Wl11nniYe.U~OllOT~i:mcrlbc:lI:fm.cf\hb}.QSCalldlht&:11lttI D=. Thctndemrdfll2tianlCOllbined:ntMs
Sc:ctioc.l--..-ifl op;;lIylOznyl..Duoe iIlo1>dhc:r1hc:yzre u=t=dbdo~~.t'tt:.the~ Du.
,. IDtlr&"II:~
(I.) Qatom::r. 11 Ctlstoa\cI'uck:.;:oslo will prQ~ cd keep IA 6lI1 f3rgc and etreel, li'MI the inltUJ dcliveQ"dalC untl] t1It rd:tIrnof.all Equipmdti tho follo....-i!lspolieks o.f
WwUlCeutisbctly.yI00ECMS2IIolhel:Sltt::r.a:ll!.,toll=for:r.,u;!~Qr~wi:h~.:t~
i)~GmcD1l.iab:.1hyI~..-th1.l:lInimttI::lelJ!:ib!J'ledrina.lo:iim!tofS!,ooo.ooopet~~=m~rcmL.~CO'1:ngerOI
~1ses.opcrulofu,~l~y,broJdrClml~'1Ydzn::2ie.indr:pcndenttonCR:lcl"l>>tdp::rscmsl\JV=rlilbJth).,~GECMSo.sUlad&tiau.linstned.
Ii}Co=:aciciAl~r1:ls~~,.pms:ta1!IeossL'l4~~al.N!l~t>llll1,~ot~ll:ltU)theb;st>!OfdL'tllJ:C'IoUltEq1.rip:ncm
a..RGllof~Jlitm.firc HputiD.f.chcf1. ficod,wi~~ion(1tSll1olbe:euuiliy.~aECMSas.loo:p.~
(oj Cumtc<:rwilldelMr l1Cl'li~~ ~inl.n web i:nsLnltetto OECMS Wl.!hla COUT\'CClI(14) cbyt.ncr~ytltJoftbll ~1O Ct:$t=,sckot, l:!me be!n~ or
1he eQ=: ~ ~if~tld$fO ecrotl ill th::~1nr.l:'llleC l't:oJ:lZlC or thr;~ WC'fCrOpt!oo.CuJtO!I"Iel:W\llael bw m&liv=-catiflCatClof
fr~Ul OECMS ror1be type: ofmb ~ by 1M OJ:!.lOrwl.rmtnnot ~P*= cr Dlinlqt WIMS"Opdon u ~ b}'~. .Exh C:l:ttiliene: win 51.Ul: lbu
tod\~lriIlnot~orbemtktWlyc:blls!d WliMlll~(30Ibytpl'iotwrit'.el!.:tOii"toGECMS.
(elttCt.tr'.m=fa1lsttldclm:r~~~"~br~(ll}o:I.lbcdJteTeq\::i~~"'iUbtinde&.\lU.Il!ldetIhbLeue.ln~tc.ultht
Other~ tordd2.ut:\Indtrlha: L.cw:. QECMSTIlIy (i) ~ ~ Q.zstnJiJcr. tr.ll:.(Jme f<<;fori:tslln:!lttp:ocel$ir.r;afam &.mdJUi [bllm ~IOO)and [u') Ils:$Q:I
~ ~~ iI%I U1tbm;mtk:nee tee often pcrccat(lO%) of'C:=mo:rtbIyrcllUl &omti:e:~:torlM~ ~m:rti1lilercqui:'el:!hlsuu.lll:=r~ p dd.ivemi~
=nm,insurmc:cGd=aib<<l~ indwfC)JthtOpdoa!lasutIl:IotProp.~ "'i11MtI6i:cl:~I~and Irdt:!Ilnilica:llldu1h!a Luse, IJId l!\e loss..
darnq:~ o:-dcs.rr.doaaft!1':'l orlbe Equi~1I:'I1lnc:ithc-t:m'I.~lhis Least.DOf. cx;q:to ~ utelIt:hl1Q<<lo~ il~b'~b)' ~"\I:!l."'Cp:id fi:1:"b)'
6iE!- .Rllin>tCusmmtrofJll)'o!Clu:ltIlDe:'Jlbbi.ll!yI:l:ll&rt.~LcI#. .
I ;nul IlUDr.It\CIC ad Duta&t Wltnr
{a ln~~CllSto:Ml'c::archocst{i)We;n,nt:.IQO;:ticna!~~ to ~W::"~ liabl.1ltytick:s(>.l1t~tio1l.Il~J>rognl.:tIi")lIt
(i lO~.Damt.&eWli\1Il1"OptiClClICOO"'~6ama:ctocbcEa:olipmelll(tbc"l>UN;~W~vefOpl..:on")orftiI.ito~botho~nJ- rfthl:O;:llionAlWt..'"::\tehosnt:lO:'
tht~>m#tWaiYer~.mutvJ.ibbkend.~.in~prnll"o!di-omyClfthc ~flOlbesitc.e.le:'.stlltt:l7Onmlht~~Propmo::- ~1
tht ~ W;<iYcr Clption, Ibm, se:::.icn 10M ..ill apply t1 O.mOIl'.:l" tle::!I Il:I etm)ll in Ill; Optian:dlnnrar.cc Prop,m end, S:eiioD It){e) ~11i ~I)' if ~
.ccepa 1M D=nap W~yc:r~ .
(b) 1M Optkmallns~ Ptc~ is. fully l!.eseriW b IJ\ Q.d!kc of Cov=~ rme ~Oulli= II! Co~") v.1Utb Clr..:J:mT hu m:lC!vd tIId revi~~ ~ to ~
clte:ioa 10 mrt>1I in tb= O;r'..on&l. bsur2r.::c ~>>U:I. All q=atiollSn:g:ar4in, lb-Optiou.llnJlnROC PlOpul '11111 be an''mJed by theqWitlod lieel'l$elf ills-.AACC old
1&:ntiliec!inlJ:eOutlintar~ 1f Cusro=pn>perlyt1ee:$IO=DmtheOlltiolWw~IOIllGJ;ISs:rthCtlycmz= i:.sU\1 Infullh=allddrceL,
Cl:stom=t.;nlllocbeRq'~wkrthis4ut.,tct:J!rf~~iaI lhb!ljl)'i~"1ci;uircdbySeaio::l9(e)(i).
(0) J{Lb/;~W~erOptio:lisptllpcrlyo:lccUdandIOIOC1t..Ots:=w:rtimdtpty1:~ad<lltioP.2l!ct~lficd for5tld:l~W:l;"ctOpliDn,Cunelnetwiltl:Ot
bo~-iTed,un:L:rli=c::nm:or1hisla.K.lOQZrye:lYadr:!.itior.al~1~~Im~edb}'~~:l){ii}_Cmtomc-:-wiIIrrnlxl!::1l!elDGEQ4S
i:: ~o::s.s of $500 per \IIIi: or ~~:Wr 1os$ or d=:ap s::=cifi:d !c S=elion $(.). eucpt. CmIo= will" llOI be mieVed oC li:bllity ii Cw=er ,.i'ob\c:$ ~y olhcr
provirioaorUtis lnIe. l'f:Ul:D.A.MACE W)JVElt.IS NOT l"''SUIl.A.''iCtCOVERAG&.
(el) ~"~.."ttmder1h=Opt!o=J~l'rc'l1lmor~ctt!tcDzma;o:WaiYet~[;eayt>>~brcimepanyanc!:-m:srlJlrovmtt:un:ter
tho ~ ImllQnO: Pro~ ~Ues forlbt DJ.II'Iqe W:lMr Optiofi rn.ty be chonJedlqlODo thirty (30) ~~priot MUw:1 nouc:.t. Ifdlt 0pIl0l'l11 ~ PTe~ or
~ WalTtr OptiOll is, !Dr 1:11 ruson. ~ Ctmomcr,.,lI jIrOl'!de \0 GECMS ~ of~(:l;sof Ir\sur&:la: as ~ Ior.b t:I ~iQcu '!iI(l){i) or 9(aXil). as
zp~wltlllnk:llpO)daylpriO:l'IOll:lttf!"~~ohum~lllliflll.
((') n;~fIl'll...l6e1!undtrtb:Optior..l~~L'!dlhclim~o!lisbtli:yllllC=ldJc~oeWiUw:rOill!<<l~IlOltl.l\!tnd.IO':llt~lIftof
ECu/pp".::Ilori\,:CCJUn::S .r.I1,onty~ \I:l E::u1\Wt-'ltIM~lIldol: p1.l:l:d It'I'd.
(f) Thll 0a:nlllC' WainOptioD. wllll\ll:"bt trindlllfl.lpOl1GEOoiS etJe:nanr1lllt, cWcagt, InjUl)' oreW:n U ~ tb OEQdS in writitla: ..it!:m'tven:y-t"'ll(72) 1Iol!l"S
ot~ OCCIl:T~urany nch.CTC'1\. Cu:u:mcrwili.lJo pr~1lY b.ro:TlltlJoa in ~tgaS'd 10 cw:b even!. ~tGECMs rmsonablj' rcq~.s.
.
GE Capita/Modu/ar Space
modspac6,com
Form:
US2002121S
TERMS AND CONDITIONS Of LEASE AGl'ffMHlT
J!.Dd'ulr
Thcoa::m::lltC of clltormore QfUl~ CG1k\winl ir.=uS""..J(a-} . (eo) ~ wm coas:titu~1:I E--.t llrOt:bc:lt under IlW 1..ats::
(.)c.,,<,DlIl=rfa11sIOFY1lbclltlueanyn:ill3lpl~(lI'ar.)'''k~due u:r.icrchb:lctseor!1ill~perllmlllt$obligatillm und:rS<<r:ia."rt~~Lcue:
(bjCWto::lerbi1sloperbmCl:"obwvt~o:.'>tl!ml Of~.t.itiOOi:n&:thls1.cUecd.J~~reauinstlr.:'~fwnmC'd-.anICii(llJ).J1y$I=M:h ~tl;I
pcfcnA << obJen't:
te) Cls1oa:=".:It a:ry pc:JCm 01 entity whidI ~t:oh more !ban fifty pc:recnt (50%) of ~mcn eq'JUl' c.. '"Cor.~('p<<SQnj or ..~ ~lOr o! In)' of O~I
*!::;;Wr.:s~(a "3uuzmor"){i)bcea=cSlz:sQlveIU.(ii)bo:cOltlC:tsiDjec:1O Uir"tll~ori:rrtl1.uir.i:yb:.'lkN?~otre:lT~.io:l:p~inSll.{iii) ~m.'"l'lr-~U1
ad: of~.f.") makesGl auianmtGtior Il:e bcnefit of mdilOrs. (v) appcriD:sor tub:n:tttolbcAppOin!nu:nioCI ~er (I1ra.D Dr&nvofib~(\'i) ldn-.its in
wntn; its'ln1bilhyto p::ryilJ t!d:nJ. "1beybecolmdueor{vi:.)~ iMn:.:xy t)'peorl"Ohzr.tzl"fv.im~lun:1."Yliquidstioc\Ol"dtUol~ .
(G) ~. c:y Co:'rtroI p~ iii' lAIr (;.=''.(It ~. lC.da I.~ oOlu Ic=rn=n v.~ GEC'lo.5 or tl'I)' IlmiatIP of C?...cMS; an:!
(e) Any lt1Itr of acdit. prm:y or other CflCIll'ity pl'tlt to ~JI'e du: pc:fomwtce ~r CI1StOn1tl's obli.~ uOOu this I..wc cqJiJes., leTlr\ifl3.1e,; OJ' in !be :'l:UIJl\Xll~
opiDiotlofGECMS bcOO:ns warthleu.
Upca~~(l-hnEvemofOebu!t.GECMS ~llMvcd>C OP!ionlO &clI:reti= ~~~fr= forlhe~crortbeltalcdlwe tern ~1)'dlOe
andpayllblt::and toJ.cct:;k:1te~ m&b ~lelydue llId~lett:r(ltbc:L'nOllIJtI;owin, \1I1d.;ftbU 1.euc. GECMS will also ~ cht optiotatar=kcand~..&in In)'
orl11efIbcEq~tn:cat:.illria;huor~w:.t!.ou:::&."Wftr.hetli&b11ityl)r~ior:to'lWclivumytlttbotI?il.~w.~,ar.dCus-.omtI'il:::reby~
GECMS Ih:ril-"ntottlte:'UpooL"1!'jlrcmiJe5whetc2Dor &n.yo{lbeEc;lJiprnenthloaledinmh:rlO 1:I._1:e~. ~?OoraMl'CI7lO'<<sotb~l!1. (NotM1lutendinc:the
foreSOin-.1C III Ev<;r.t of Oeblilt 0Ctlt'I wdcr c!aeso Ie) abaft. such &c:oeI~onl '10'111 0Ct1U" ~Jy ~CloU:-1he- ~ ~ &cbr~) Cumi:DCf will P1'y to
GBCMS Dll ~ all reo, COI!fa:Jd ~ ~by GECMS in tII~:t$!"Iptli 1ll'Ider;Z;k La5:e. i:IC11ldit'<$:'lrilhoc;lir.n"tatiaDreao::g~ ~ttOmcyrl fe:" 'The
rc:roedlc! fl"7"idcd in ftnootofOECMS will ~eumbtl\"tl:ld in uiditiDrl \0 ~'1 othcr~ pl'I?Vid.cdintbis1.e:m lIT txistina":b-voriaq~. No action lai:.cr:.by
GEo.iS pI1:$=n!. to this Seaimlll Of SecU:m 13 'I'rilI rebst' Qlmmer Cro::c. C~ ~venlttS, bbJipMmw i.'l4=ilies: pnlVided ~ t::ll Lcue. inclu:1l~ bill
J:4{lidlridrD_~ob1ipJ:icD tnm:'pl)'fMlS"oCmu2lsprt>..-iddtc1bii~
IfGEOdS tdakcI pocR8icn oithe Equipmort orrJrfl!lrt ofhe Equipment and IhcJcii a1 the:tlme otsudl mddn~ in,. usm or~ to lueh ttp.:llscue:I. EqulJ:..-n=t.
~(Ilher~.800dsor~o('."me~bv~wmwe-~'o:Ct1I'J:'DlofC;2slDmer,GEQ.!SiJJ:Jlhed~bl:::t'JlO~ok.ld:q:lo1:rprepeny.
golld$ ortll!=p s::d hold the samoe l'orCU5llJ;Jll:1r, a1Oummer'llOlteos:, ct.'lain GECME'I~.on crm JMl.blk5\D~ II! GeCMS's wle disc:n:iilll\. -
12. GEcl\U1 ~dK To <An
If Ca1ctcf '&Wda 10 cr ot i.'1: ClbCpcicms uno:k: thU laK, wbc::ila- or net an. EVIQ{ of!kiaclt 11= exists. GECMS 'dq pay liU tM\!:\tS C1t;:.afon'll Of QUSC to he
~aDob1ipriom:~1Obt-JSidl)/'ped'arr.wdbyCllSbmtl"urWefthii-L..eruo::andrecoverfml'll~u.sdition&lR;ltafla:"Olllltisop::ddorthcretSO:llib1c:
rtlllCot.JJscrviee$.op!tfocmt:d.
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vrnbcrolt Il:nhinim)' <<btr provillionoftbilll.a:sc. IIpOlllhe ~of 111 ~ of [)cr.ult, GECMS trin r.aw the mU"~ilIlc- riJht, whlloUl notice:, dc=nd<>r ~
a.."tioft, Ulm-otr~c:as=ncr'tJYa:now:tIOEOt.Sn:8YboI4H]nP.~ ordcp>>iU rorC;ECM:SliWtCie$lOCll$to~~orno:theudu:: t:I CW.or::u.
UrJ$oth::nlIisc~b,.law.OBCMS ...llb.: ~tobne=$:dsuc.'-lrizbttOtcl~trandtllilsvelMdtl ~tpir-.$tDYau::h$ll-l:ISimrIic:f~I'1cponlhe
~oilll}'E.velrtotoeavub)'CIlStamcr.
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{2J ~...itl nGtUve "'~ right CO =en dtls: Lean or to I"Jbkt, r.:tt: or o(~ b:Xc Oil!: or frmSfcrpow:Kionofar.y' orlbe 5qulpmto::to MY pemm or emity otb<<
dw1 oECdS. Wholll 6t prior ~ COUSe:lt of GEOo!S. GECMS n:ay auip tho i...taJc acd the ~ ~td under dIU U:alic.. If O=-CMS ~ wdt a.."1
udpunem. *l!SSiJne=wtli~elIri;ha=r=ed.ic:s~by<<&V~toGECMS u:-.!l:fthisLwe-
(b) Thb:Lc:tseCCllUlins~ellXire~bc:twc=ldtep&rtii:$p=rui:lirla:tlItbcl\lbjectmt.;teortbilLcue. No~n::pc'e#llwlol'lor=bm.'1I1int;$Jlol
spetifit;slI1c:ol!tl.W:dilltll~l..c:;utwili ~'ctedtnct:pOll =rllflhc~ hentoua.1ess tdl.lllCd lQwrl.tl"Fmdri::=d bylhcp:tint:lbr:!r.Iui::i~. 1uJy~~
$llCldrlicati#l or ~ III t!sb Lcue willll6t bt billCiint; OJI OECY.S llZIlest siple(! by u. ~=4 o1flOtf of GECMS. Thil. ~ win be ~ as 1ll i:s
~;'~lllllldcrrllCtbylbtbwso1tbe~:!Iorp<<U'..rymnia.mfuntt1'cprdtoprillcip~a(dIolCl:(lfhrn .
Exhibit B
Buildiues
787662.5/SP3/13144/0 I 01/092105