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Ordinance No. 7,388950914 -2 ORDINANCE NO. 7388 AN ORDINANCE OF THE CITY COUNCIL OF. THE CITY OF BAYTOWN, ® TEXAS, APPROVING THE PROPOSAL AND AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A LEASE OF PREMISES AGREEMENT WITH NINFA'S BAYTOWN, INC.; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE.CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby approves the pro pIosal and authorizes and directs the Mayor and City Clerk of the City of Baytown to execute and attest to a Lease of Premises Agreement with Ninfa's Baytown, Inc. A copy of said agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City'of Baytown this the 14th day of September, 1995. /�- (f, GC _ PETE C. ALFARO, Mayor A'T'TEST EILEEN-P. HALL, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, S City Attorney ® legal/ council/ sep ,embe,19- 14- 95authAGREEninfas ® LEASE OF PREMISU This lease is signed on this day of September, 1995, between The City of Baytown, Texas, a municipal corporation located in Harris and Chambers Counties, ( "Lessor ") and Ninfa's Baytown, Inc., having its principal place of business at 214 N. Nagle, Houston, Texas 77003 ( "Lessee "). The Lessor and Lessee agree as follows: DEFINITIONS Lessor: City of Baytown, Texas. Lessee: Ninfa's Baytown, Inc. Total Capital Cost: The Total Capital Cost shall mean all costs associated with the design, permitting, construction and equipping of the premises. Equipping of the Premises shall include the acquisition of all of the items listed on Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes. Total Capital Cost shall not include the cost of any consumable items, including, but not limited to, inventory, glassware, china, stoneware and paper goods. Total Capital Cost shall also not include the cost of site improvements, including, but not limited to, curb cuts, entryways, parking lots, parking lot lighting, walkways, all utility extensions, sprinkler systems, and landscaping materials. Except for architectural and engineering fees, total Capital Cost shall also not include any fees paid to consultants, developers or project managers for services rendered in the guidance or management of the completion of Lessor's Capital Improvements. Lessor's Capital Improvements. Those improvements made by Lessor for the full construction and equipping of the premises, such that the premises are ready for use by the Lessee. Upon completion of such Improvements, Lessee shall be required to supply consumable items such as inventory, china, glassware, stoneware and paper goods. These improvements shall include, construction of all site improvements in accordance with approved architectural and engineering drawings, which shall include, but not be limited to, construction of curb cuts, entryways, the parking lot of at least one hundred (100) spaces serving the Premises and the surrounding development, all parking lot lighting, sign pylons, sign monuments, walkways, all utility extensions, sprinkler systems, landscaping materials, the building slab or pad and any special structures such as piers that may be required underneath the premises for support. Lessor's Capital Improvements shall also include the design, permitting, construction and equipping of the premises. Equipping of the premises shall include the acquisition of all of the items listed on Exhibit "A." Lessor's Capital Improvements shall not include the provision of any consumable items, including, but not limited to, inventory, glassware, china, stoneware and paper goods. Architectural and Engineering Fees. Fees paid solely for the preparation of architectural and engineering plans for Lessor's Capital Improvements. Such fees shall not include project management fees, which include those fees paid for the professional services of a master plan developer or the professional services of others that are not essential, as reasonably determined by the Lessor, to the construction of the facility to be located on the Premises. EXHIBIT A ® Lease Commencement Date: The earlier of either the date the premises opens for business or forty -five days after the Lessor issues the certificate of occupancy. Rent Commencement Date: Exactly one year after the Lease Commencement Date. Interim Term of Lease: The Interim Term of this lease shall commence on the date both parties have executed this lease and end with the Lease Commencement Date. Reference to "term" herein shall, unless stated otherwise, include the Basic and Interim Term and any extensions thereof. ARTICLE t Premises 1.01 The Bayland Harbor Development. The Lessor owns the tract of land in Harris County, Texas, more particularly described in Exhibit "B" (the "Premises ") which is a part of the Bayland Development in conformity with the plan attached hereto as Exhibit "C" (the "Plan"). 1.02 Premises. Lessor hereby rents and leases unto Lessee, and Lessee hereby takes and hires from Lessor, a portion of the land of the Bayland Development described as follows: (a) The "Premises ", which consists of- of (i) The building (to be constructed) outlined in red on the Plan which consists square feet; to be located on the Premises parcel consisting of square feet, together with all improvements, equipment, fixtures, machinery and appliances located therein or to be erected or installed therein by the Lessor (the "Lessor's Capital Improvements "). (b) The right for Lessee and its agents, employees, customers, and invitees to use the parking areas and the other common areas and all rights, alleys, rights -of -way, easements, and appurtenances thereunto belonging or in any way appertaining to the Bayland Development on a non - exclusive basis in common with the general public and other lessees of the Bayland Development and their respective agents, employees, customers and invitees. Such non - exclusive right to use the parking facilities shall be subject to all of the terms and conditions imposed at any time by the Lessor or the Lessor's developer, so long as such terms and conditions are not inconsistent with Section 3.06 herein. ® ARTICLE 2 Term and Rental 2.01 Term. The Basic Term of this lease shall commence on the Lease Commencement Date, as herein defined, and continue thereafter until ten (10) years have elapsed. Immediately after the Lease Commencement Date, Lessor and Lessee shall enter into an agreement in recordable form setting forth such date. 2.02 Right of Extension. Lessee is granted the right to extend the Basic Term for an additional period of 5 years. If Lessee elects to extend the Basic Term for the first additional period of 5 years, the Lessee may also elect to extend the Basic Term for a second additional period of 5 years immediately following the first additional period. If the Lessee elects to extend the Basic Term for the second additional period of 5 years, the Lessee may also elect to extend the Basic Term for a third additional period of 5 years. If the Lessee elects to extend the Basic Term for the third additional period of 5 years, the Lessee may also elect to extend the Basic Term for a fourth additional period of 5 years. If the Lessee elects to extend the Basic Term for the fourth additional period of 5 years, the Lessee may also elect to extend the Basic Term for a fifth additional period of 5 years. If Lessee elects to extend the Basic Term for the fifth additional period of 5 years, it the Lessee may also elect to extend the Basic Term for a sixth additional period of 5 years. In each case, the option may be exercised by giving Lessor written notice thereof at least one hundred eighty (180) days before the expiration of the applicable term. All of the terms and conditions hereof shall apply during the additional term(s), unless otherwise modified in writing by the parties hereto. 2.03 Removal of Lessee's Property. Upon expiration of this Lease, Lessee shall have the right to remove from the premises any and all furniture, fixtures, trade fixtures, equipment and special finish items specifically identified as not having been paid for by the Lessor. All alterations, modifications, and/or repairs to the Premises must be approved in writing by the City Manager prior to such alteration, modification and repair being performed, and the same shall become the property of the Lessor upon installation and shall not be subject to removal as provided by this paragraph. Any and all indentations and differences in the conditions of the walls ceiling and floor surfaces shall be repaired at the sole cost and expense of the Lessee, for the Lessee hereby understands and agrees that the Lessee shall be obligated to repair, restore, renovate or redecorate the leased premises by reason thereof to the condition of the premises when the Lessor issued the certificate of occupancy, normal wear and tear as determined at the reasonable discretion of the City Manager, being excepted. The Lessee is also obligated to leave the leased Premises in a safe condition, to cap off any wiring or plumbing to which the assets or property so removed were attached and to repair damage, if any, to exterior walls and exterior roofing caused by the Lessee in the removal of such assets and property. 2.04 No Rent for Interim Term. During the Interim Term and for exactly one (1) year after the Lease Commencement Date, the Lessee shall not be obligated for any rental, taxes, or other payments due under this lease. However, Lessee understands and agrees that the debt service payment for the first year will be capitalized and included in calculating the rental payments herein. • 3 2.05 Base Rent for Basic Term. Starting exactly one (1) year after the Lease Commencement Date and during the Basic Term and each extension thereof, Lessee shall pay to Lessor the following minimum annual rent payable in advance in equal monthly installments: (a) An "Annual Minimum Rental" calculated in accordance with Section 2.05(b)of this Lease, per Lease Year from and after the Rent Commencement Date, it being understood that except as otherwise herein provided, the use and occupancy of the premises shall be rent -free during the Interim Term and for the first twelve months after the Lease Commencement Date. (b) The "Annual Rental" shall be calcplated in the following manner: In addition to the amount as calculated in subsection (d) hereof, the Total Annual Rental shall equal the lesser of: (1) The Total Capital Cost of the restaurant facility as more fully described in Exhibit "D" to this Lease, which is incorporated herein by this reference for all intents and purposes, amortized over a period fifteen (15) years, in equal monthly installments, at an annual interest rate between seven and one quarter percent (7.25 %) and eight percent (8 %) plus $6,000 per year; or (2) $135,431.28 per year in equal monthly payments of $11,285.94 per month, for the full term hereof. first Option Term. During the first Option period, the annual rental shall be the same as during the initial term. (c) During each option term after the first extension of this lease, Lessee shall pay to Lessor, as all rent due and owing, four percent (4 %) of the Gross Sales (defined below) made by Lessee in each month of the applicable option term. Payments shall be made on the twentieth (20th) day of each month for gross sales realized for the previous month. The term "Gross Sales," as used herein, means the gross sales price of all merchandise, goods, property and services sold at or from the Premises (whether for cash or otherwise) by Lessee. No promotional material given away by Lessee shall be included in Gross Sales. Sales, liquor and similar taxes and discounts received by Lessee on credit cards are not part of Gross Sales. The sales price of merchandise that is returned by customers during a period of time shall be deducted from Gross Sales for that period of time to the extent included in the computation of Gross Sales when the merchandise is sold. On or before the sixtieth (60th) day after the end of each lease year, Lessee shall furnish to Lessor a statement certified by an officer of Lessee of the Gross Sales during such year (the "Annual Statement ") and if, for any reason, the sales reported after the end of the year are more or less than the sales reported each month during the year, then Lessee will either pay any deficiency or receive an offset from percentage rent the following month. Lessee shall keep and make available at the premises accurate records of Gross Sales for each year and partial year. These records shall be open for inspection by • 4 • Lessor or its duly authorized representatives at all reasonable times. Lessee shall not be required to retain any records for any year for more than three (3) years after the end of that year, but shall not dispose of any such records before that time. Lessor shall have the right from at any time to audit any Annual Statement and all of the books and records supporting any Annual Statement. Lessee shall make all of these records readily available for the examination. If any audit by Lessor shows an understatement by more than five percent (5 %) of Gross Sales in the Annual Statement, then the cost of the audit shall be paid by Lessee. If the audit shows the rent in fact due exceeds the amount of the rent paid by Lessee, then Lessee shall pay Lessor the amount of the deficiency within ten (10) days written notice of such deficiency. (d) During the initial term of the lease and the first extension thereof, Annual Rental shall include not only those amounts previously enumerated in subsection (b) of this section but also the cost of the improvements more fully described in Exhibit "A" which are greater than $120,000 but less than or equal to $200,000, amortized over a period of fifteen years, in equal monthly installments at an annual interest rate between seven and one quarter percent (7.25 %) and eight percent (8 %). Lessee shall be responsible for all improvements listed in Exhibit "A" which exceed $200,000, and the Lessor shall be released of any and all obligations of obtaining and /or financing the improvements in excess of such amount. 2.06. Gross Lease. Except as otherwise provided for elsewhere in this lease, Lessee's sole monetary responsibility shall be the timely payment of rent as provided for in this Article 2 of the Lease. All payments required herein to be paid by the Lessee shall be due on or before the fifth (5th) day of each month. If payment is not received at the appointed time, Lessee will be obligated to pay interest on delinquent payment in the amount of one percent (1 %) per month. 2.07 NoPartnership. Nothing herein contained shall be construed or held to make Lessor and Lessee partners in the conduct of any business. The relationship between the parties hereto is and shall at all time remain that of Lessor and Lessee. 2.08 Right to Inspect Premised The Lessor has the right to inspect the Premises at all reasonable times during the period of this Agreement or any extension thereof for inventory control purposes and to ensure compliance with the terms and conditions of this Agreement. 2.09 Confirmation and Agreement. The Lessee hereby expressly agrees that Lessee will execute and deliver to the Lessor's payee the Confirmation and Agreement, which is attached hereto and incorporated herein for all intents and purposes as Exhibit "E." 5 0 ARTICLE 3 • Use and Occupancy 3.01 Purpose. Lessee shall not use the Premises for any disorderly or unlawful purpose. The Premises shall be used by Lessee for the purpose of operating a first- class, full- service restaurant with recorded entertainment and with service of alcoholic beverages. Any additional use not expressly mentioned herein must be approved in writing by the City Manager prior to the commencement of such use. 3.02 Conformance to Law. In conducting its business on the Premises, Lessee agrees to conform to all applicable state, federal and local laws, ordinances, regulations and licensing requirements. Lessee shall have the right to contest in good faith and by appropriate means any such law, regulation or licensing requirement. 3.03 Exclusive Use. Lessor will not use, or permit others to use, sell for the intended use or permit any tenant or the assignee or subtenant of any tenant to use, any land or structure owned or controlled by Lessor located on the Bayland Development Site for a restaurant which has a menu consisting of fifteen percent (15 %) or more of traditional Mexican dishes, with the exception that any business currently in existence will be excluded from this section. 3.04 Lessor's Covenant of Title and Quiet Fnioyment . Lessor covenants and warrants that Lessor has the full right and lawful authority to enter into this lease for the full term hereof and that Lessor has good, valid and marketable title to the Premises. 3.05 Successors and Assigns. The covenants and agreements herein contained shall run with the Bayland Development and the Premises and shall be binding upon and inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns. 3.06 Parkin. The Plan shows the Premises and the rest of the Bayland Development. Lessor agrees and warrants that Lessee and its agents, employees, customers, and invitees shall have the right (together with the other tenants of the Bayland Development and their respective employees, invitees and customers and the general public) to use all of the parking areas and other common areas shown on the Plan for vehicle parking purposes only. Lessee understands and agrees that throughout the term of this lease, and any option terms hereof, the parking areas and the modes of ingress and egress may be changed from time to time at the sole option of the City Manager; however, the Lessor acknowledges that Lessor will do nothing to substantially decrease the number of parking spaces allotted for the restaurant enumerated hereinabove. furthermore, if the Lessor determines in its reasonable discretion that additional parking facilities are needed to reasonably accommodate the parking for the Lessee's restaurant, the Lessor shall to the extent reasonably practical provide additional parking spaces, giving due consideration to the cost of construction, the necessity of the same, other economic variables, and all other factors determined relevant by the Lessor. 6 • 3.07 No Other Predominantly Mexican Restaurants. Lessor shall not allow the establishment of any other restaurant which has a menu consisting of fifteen percent (15 %) or more of traditional Mexican dishes within the Bayland Development at any time during the first five years of the initial term of this Lease. ARTICLE 4 Improvements 4.01 Improvements. The Lessor shall proceed to install the improvements which are shown on the schedule attached hereto as Exhibit "A," in a reasonably expedient manner in conformity with such specifications and criteria as the Lessee may select so long as the same are not in derogation of the Plan or any other specification and/or criteria established by the Lessor. 4.02 Architectural and Engineering Services. After consultation with the Lessee, Lessor shall hire an experienced restaurant architect. Lessor shall have the right, in its sole discretion, to hire and retain an engineering firm to provide such services. Within five (5) days after the date of this Agreement, architectural and engineering work on the design of the Premises shall begin. All architectural and engineering shall be completed and ready for permitting ninety (90) days after such work has begun. Lessor and Lessee agree to cooperate in providing standards, specifications and guidance to the architect and engineer regarding the design needs of the restaurant. 4.03 Commencement of Construction. No later than ninety (90) days after the completion of architectural and engineering drawings including any revisions thereof, Lessor shall commence construction and thereafter proceed without undue delays to complete construction and authorize occupancy of the premises by Lessee. 4.04 Warranty Claims. Lessor shall assign to Lessee all warranty, guarantee and similar rights that Lessor may have with respect to: (a) the Lessor's Capital Improvements to the extent that they relate to parts of the premises that Lessee is obligated to maintain hereunder, and (b) the Lessee's Improvements constructed or installed by Lessor's contractors. The assignment will be in such form as Lessee may reasonably require. Lessee understands and agrees that Lessee is obligated to repair and replace the personalty which the Lessor initially purchases. Such repaired and/or replaced property shall at all times be the property of the Lessor. 4.05 Lessee's Property. Lessor agrees that all consumables, accessories and /or decor items of whatever kind and nature kept in or installed in the Premises by the Lessee or Lessee's subtenants or licensees, which such property has not been provided or financed by Lessor, shall not become the property of Lessor and may be removed by Lessee or Lessee's subtenants or licensees. However, all fixtures (trade or otherwise), machinery, equipment, furniture, and permanent improvements to the building and other property of whatever kind and nature which are affixed in any way to the Premises 11 may not be removed by Lessee or Lessee's subtenants or licensees, for such improvements purchased by the Lessee shall be and remain the Lessor's property. 4.06 Lessor's Property. Lessee agrees that all fixtures (trade or otherwise), machinery, equipment, furniture and other property of whatever kind and nature kept in or installed in the Premises by the Lessee or Lessee's subtenants or licensees, which such property has been provided or financed by Lessor, shall not become the property of Lessee and may not be removed by Lessee or Lessee's subtenants or licensees at any time during the term of the Lease or any option terms hereof. 4.07 Si ns. The Lessee shall have the right to install as many signs in the format of its own designation as permitted by the Lessor or other governmental body having jurisdiction over the proposed signs. Lessor's approval of signage shall be required. 4.08 Le$ or to Maintain Utility Connections. Lessor agrees to maintain necessary main, conduits and other utility lines necessary to supply water, secondary power, and sewerage service to the Premises. Lessor warrants that it has the right and power to maintain the above - referenced utility lines which run over or under the surface of the Bayland Development property. 4.09 Attainment of Liquor License. At the time of the signing of this lease, Lessor has no knowledge of any restrictions as to Lessee's attainment of a liquor license. ARTICLE 5 Maintenance, Repairs and Alternations 5.01 By Lesso . Lessor, at its sole cost and expense, shall maintain and repair the foundation, the building structure, exterior walls, roof, exterior windows, exterior doors and exterior mounted HVAC units on the roof of the Premises. Lessor shall also maintain, at its sole cost and expense, the grounds and the landscaping materials adjacent to the Restaurant and throughout the Bayland Development, including the daily expenses associated with cleaning and maintenance of the parking lot as well as maintenance of parking lot lighting. At all times during the term of this Lease, Lessor shall make reasonable efforts to fix or repair any defect in the building, structure, exterior walls, roof, exterior windows and exterior doors of the Premises upon receipt of written notice from Lessee that such repairs are necessary. 5.02 By Lessee. Lessee agrees at its own cost and expense to maintain the interior of the Premises in good condition and repair, ordinary wear and tear excepted. All maintenance and repair work undertaken by Lessee shall be done in a workmanlike manner, leaving the Premises free of liens for labor and materials. In the event that a lien is filed against the Premises for work completed by a contractor or subcontractor, Lessee shall immediately use its best effort to remove such lien within ten (10) days after the lien is placed on the property. In the event that a lien remains on the property after the 8 is expiration of ten days, Lessee shall execute a bond for the sum of one hundred percent (100 %) of the total lien amount, in standard forms for this purpose, guaranteeing that such lien shall be released from the Lessor's property. Such bonds must be submitted to and approved by the Lessor in order for the Lessee to be in compliance with this provision. 5.03 Alterations. After completion of the improvements, and during the term of this lease, Lessee may, after obtaining prior written approval from the Lessor, at its own expense make such alterations, repairs, and additions within the interior of the building on the Premises as may be permitted by laws and regulations in force at the time, as long as such alternations, repairs, and additions do not structurally weaken the building or render the same unsafe. Lessee shall, at all times, hold Lessor harmless from the payment for any work performed by Lessee pursuant to the provisions of this paragraph. The cost of any changes which may be structural in character and not occasioned by alternations or additions made by the Lessee and which are ordered by a governmental authority after the building or improvements provided for under this lease are completed, shall be borne by the Lessee and shall increase the said annual rental. ARTICLE 6 Insurance, Damage, and Condemnation 6.01 Lessee's Insurance. Lessee agrees to provide and keep in force, throughout the term of this Lease and any extensions thereof, commercial general liability insurance with an insurance company licensed to do business in the State of Texas who has an AM Best Rating of A or higher with limits of $1,000,000 per occurrence and $2,000,000 aggregate. In all liability policies as maybe required herein, the Lessee agrees to name the Lessor as an additional insured and to provide a notice of cancellation on all insurance of at least sixty (60) days. Lessee may maintain the insurance required hereunder under a blanket policy only if such policy provides the protection for the Premises as required in this paragraph, no aggregate policy for multiple premises shall be allowed. All insurance policies of the Lessee must be written on an occurrence basis. Additionally, the Lessee's commercial general liability insurance shall include premises and operations endorsements as well as products and liquor liability endorsements. All requirements of Texas law regarding the provision of Workers Compensation insurance and workers' injuries must also be procured and maintained by the Lessee throughout the term of this lease and all extension thereof whether by a Workers' Compensation Insurance policy approved by the Lessor or pursuant to Lessee's non - subscriber status. Such policies shall contain a waiver of subrogation in favor of the Lessor and all of the applicable above - referenced requirements shall be required for such policy. Lessee shall furnish Lessor copies of certificates evidencing these policies prior to or simultaneously with the Lessor's issuance of the certificate of occupancy. All insurance policies provided by the Lessor as required herein will be secondary policies and will be subordinate to the Lessee's insurance policies as required herein. 9 6.02 Fire Extended and Liability Coverage. Lessor agrees that at all time during the term it will keep the entire Premises continuously insured against the loss or damage by fire and all of the risks covered by a standard extended coverage endorsement in amounts not less than the full replacement value thereof. Lessor agrees to deposit a copy of all insurance policies or certificates showing such insurance in force with Lessee during the term of this lease upon request. The policy or certificates shall also include a provision for thirty (30) days wratten notice to Lessor in event of any pending change in or cancellation of the insurance. Lessor will carry liability insurance on the common areas. 6.03 Damage or Destruction by Casualty. If the Leased Premises shall be damaged by fire, an unavoidable accident or other casualty, Lessor shall cause the damage to be repaired. Lessor shall not be liable for any damage or destruction to the property on the Premises owned by Lessee under the terms hereof or belonging to third parties, not for the loss of any such property from the Premises by theft or otherwise. 6.04 Lessee's Casualty Insurance. The Lessee will maintain primary and extended coverage insurance on its leasehold improvements in sufficient amounts as determined by the Lessor at all times during the term of this Lease and any extensions thereof. 6.05 Condemnation. If the whole of the Leased Premises shall be acquired or condemned by expropriation or eminent domain for any new public or quasi- public use or purpose, then the term of this lease shall end as of the date that title vests in such proceeding and all rentals shall be paid up to that date. 6.06 Partial Condemnation. If any part of the Premises shall be acquired or condemned as aforesaid and if the partial taking or condemnation shall render the Premises in both the Lessee's and Lessor's opinions unsuitable for the business of the Lessee, then the term of this lease shall end as of the date that title vests in such proceedings and rent shall be adjusted to the date of the termination. In the event of a partial taking or condemnation that is not extensive enough to render the Premises in both the Lessee's and Lessor's opinions unsuitable for the business of the Lessee, then the term of this lease shall end as of the date that title vests in such proceedings and rent shall be adjusted to the date of the termination. In the event of a partial taking or condemnation that is not extensive enough to render the Premises in both the Lessee's and Lessor's opinions unsuitable for the business of the Lessee, then Lessor shall promptly restore the leased Premises to a condition comparable to its condition at the time of such condemnation less the portion taken and, if the size of the Premises has been reduced by the taking or condemnation, the rent shall be reduced proportionately. 6.07 Condemnation of Parkiny, Area. If a part of the common parking areas in the Bayland Development shall be so acquired or condemned as a result of which either: (a) There shall be less than the number of parking spaces referred to in Article I hereinabove, or (b) The parking available in the Bayland Development shall not satisfy the requirements of any applicable law, ordinance or governmental rule or regulation, or 10 ® (c) The modes of access to the parking space and the Premises shall have been materially impaired. 6.08 Sharing Award. In the event of any condemnation, whether whole or partial, the Lessee shall be entitled to receive any monies expressly apportioned by a court of competent jurisdiction in its final judgment. If no amount is so apportioned, the Lessee shall be entitled to nothing under the terms of this Lease. ARTICLE 7 Common Area Maintenance 7.01 Common Area Maintenance. Lessor shall, at its sole cost and expense, be responsible for all maintenance and repair of the common areas of the development. Such maintenance and repair shall be of a high level and shall be conducted and performed by the Lessor on a continuing basis. ARTICLE 8 Mortgages and Estoppel Certificates 8.01 Lessee's Mortgages. Lessee shall not have the right to mortgage and encumber its leasehold estate, nor any of the items of personal property provided by or financed by Lessor, but shall have the right to mortgage and encumber personal property, fixtures, trade fixtures, special finish items unique to the restaurant's concept, equipment, furniture and merchandise located in or upon the Premises, which has not been provided or financed by Lessor. In such event, or events, Lessor hereby agrees for the benefit of such mortgagees or holders of indebtedness from time to time: A. Equipment Waivers. To sign any document waiving all rights of Lessor to such equipment or other items of personal property and providing that any such lender or lessor may remove such items from the Premises in the event that Lessee defaults on its loan or lease agreements. B. Notices. That Lessor will give to any such mortgagee or holder of indebtedness simultaneously with service on Lessee a duplicate of any and all notices or demands given by Lessor to Lessee from time to time. Such notices shall be given in the manner and be subject to the provisions of Section 9.01 and 11.02 of this Lease; C. Mortgagee's Liability. Except with respect to the period any such parties actually hold the leasehold estate created hereby, no liability for the payment of rental or the performance of any of the Lessee's covenants and agreements hereunder shall attach to or be imposed upon any • 11 mortgagee, trustee under any trust deed, or any holder of any indebtedness secured by any mortgage or security agreement upon such personal property, all such liability being hereby expressly waived by Lessor. 8.02 Lessor's Right to Sell or Mortgage. Lessor reserves the right to sell, assign, transfer or convey its interest in this Lease and the premises without prior consent of Lessee, and Lessor shall further have the right to encumber and mortgage the premises and assign rentals payable by Lessee to Lessor to any mortgagee or other secured party who obtains an interest in the land and buildings of which the premises are a part or upon any buildings hereafter placed upon land of which premises form a part; provided, however, that no such sale, assignment, transfer, conveyance or mortgage shall in any way diminish the rights of Lessee to use the premises as provided in this Lease, and any person or entity standing in the place of Lessor as a result of any such sale, assignment, transfer, conveyance, or mortgage shall assume the duties and obligations to Lessee as provided in this Lease as if such person or entity were Lessor herein. 8.03 'Statement of Performance. Lessor agrees to furnish Lessee, and any of the Lessee's mortgagees, upon written request therefore, a statement wherein Lessor shall, under oath, acknowledge that as of the date of such statement Lessee, to the best of the Lessor's knowledge, has performed and observed all of the covenants and conditions herein stated to be performed and observed by Lessee, and that to the best of the Lessor's knowledge as of said date the leasehold estate hereby created and granted to Lessee is free of all defaults hereunder (or if defaults exist, specifying the nature of the default); provided, however, Lessor shall not be required to furnish Lessee or any such sublessee or occupant with such statement more than once during any calendar quarter. Nothing contained herein or any statement subsequently issued hereby shall waive any of the Lessor's rights to enforce any of the provisions of this Lease against the Lessee. ARTICLE 9 Lease Defaults 9.01 Defaults by Lessee. Lessor shall have the right to declare the Lease in default if Lessee: (a) Fails to pay any installment of rent or make any other payment of money due hereunder within seventy -two (72) hours after written notice of the failure shall have been given to Lessee, or (b) Defaults in the performance of any other obligation imposed upon Lessee hereunder and does not cure the default within fifteen (15) days after written notice describing the default in reasonable detail shall have been given Lessee (or, if the Lessor in its sole discretion, • determines that the default cannot reasonably be cured within the fifteen (15) day period, if 12 ® Lessee does not commence curative work within the fifteen (15) day period and prosecute the work to completion with reasonable diligence), or • (c) Institutes proceedings, whether voluntary or otherwise, under the provisions of the Federal Bankruptcy Act or any other federal or state law relating to bankruptcy or insolvency, then the Lessor may immediately without any notice terminate this lease, or (d) Makes an assignment for the benefit of creditors, then Lessor may immediately and without notice terminate this lease or exercise any other rights or remedies available as a matter of law. 9.02 Unless otherwise stated in this lease, if the Lessee commits a default, the Lessor shall give the Lessee a written notice specifying the default and the Lessee shall have the following periods of time to cure the default: (a) In the case of a failure to pay rent or any other default consisting of the failure to pay money, the Lessee must remedy the default within seventy-two (72) hours from the receipt of the notice, provided that if: (1) The Lessor is required to give the Lessee notice of nonpayment of rent three (3) times in any twelve month period, and (ii) Each of the notices contains a reminder of the substance of this subpart 9.02(a), thereafter Lessor shall no longer be obligated to give Lessee notice of a default consisting of the nonpayment of rent and the Lessor may immediately terminate the lease. (b) In all other cases with the exception of those cases hereinabove specified where the lease is subject to immediate termination by the Lessor, the default must be cured within fifteen (15) days from the receipt of the notice or, if the default is not reasonably susceptible of being cured within the fifteen (15) day period, commence curative work within the fifteen (15) day period and prosecute it to completion with diligence. The determinations regarding whether the default is reasonably susceptible to being cured within the above - referenced time frame and whether the Lessee is commencing curative work with diligence shall be made at the reasonable discretion of the Lessor. 9.03 If any such default occurs and is not cured within the time allowed by paragraph 9.02, the Lessee understands and agrees that the Lessor shall become immediately liable for all amounts due or which would have become due under the term of the lease or any extension thereof. Furthermore, in the event of such default, the Lessor, in addition to any other rights which Lessor may have under law or under the provisions of this Lease, shall have the following options, subject to Lessee's rights under paragraph 9.06, below: 13 ® (a) Immediately to re -enter and remove all persons and property from the Leased Premises. Such property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account of, Lessee, all without service of notice or resort to legal process and without being deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned thereby. Such re- entering and removal of persons or property from the leased Premises shall not be deemed to preclude Lessor from exercising any other options granted by this lease. (b) To proceed for past due installments, reserving its rights to proceed later for the remaining installments and to exercise any other option granted by this lease. (c) Immediately to cancel this lease and to proceed in any manner against the Lessee for past due installments. (d) To cancel this lease and re -enter the leased Premises and to re -let the Premises in the manner set forth below. (e) Otherwise, Lessor may avail itself of any rights under the laws of the State of Texas to evict Lessee and obtain occupancy of the Premises and to recover any past due rent and damages until the Premises shall have been released, all as more fully provided in paragraph 9.04 hereafter. 9.04 Should Lessor elect to re- enter, under any provision of this lease, or should Lessor take possession pursuant to legal proceedings or pursuant to any notice provided for by law, the Lessor shall have the right and the ability to make such alterations and repairs as the Lessor determines is reasonably necessary in order to re -let the Premises and may re -let the Premises or any part thereof. This re- letting shall be for such rental and on such terms as Lessor may deem advisable, including a lease on a monthly basis or for a term extending beyond the term of this lease. All payments received by Lessor from such re- letting for the unexpired term of this lease shall be applied: first, to the payment of any costs and expenses of such reletting, including attorney's fees and the cost of such alterations and repairs; second, to the payment of any indebtedness other than rent due from Lessee to Lessor; third, to the payment of the present value, at a discount rate of eight percent (8 %), of the rent due and unpaid hereunder. If such rentals received from the re- letting are insufficient to pay the amount owed by Lessee, then the deficiency shall be paid during that month by Lessee hereunder, to Lessor. Such deficiency shall be calculated and paid monthly in the manner provided above. Lessee may request and shall be granted access to Lessor's books and records in order to ascertain the status and accuracy of its account with Lessor. Notwithstanding any other provisions hereof, in making the repairs and alterations, re- letting the premises and exercising its other rights hereunder, the Lessor shall mitigate and minimize the damages suffered by the Lessor and the amounts that shall be due by Lessee hereunder. 9.05 failure to strictly and promptly enforce the conditions set forth above shall not operate as a waiver of Lessor's rights. Lessor expressly reserves the right always to enforce prompt payment of rent and to treat the failure to pay rent in accordance with this lease as a default, regardless of any indulgences • 14 ® or extensions previously granted. The waiver by Lessor or Lessee of any breach of this lease shall not be deemed a waiver of any subsequent breach of the same or any other term or condition of this lease shall be deemed to have been waived by Lessor or Lessee unless such waiver is in writing and signed by Lessor or Lessee. • 9.06 Any and all defaults reasonably declared by the Lessor shall be final and binding upon the Lessee. If the Lessee receives a default notice but in good faith denies that it is in default (in whole or in part) the Lessee may prevent the Lessor from exercising the rights or remedies set forth in this Section 9 by taking the following steps: (a) The Lessee shall remedy that part of the default as to which there is no dispute within the time allowed by paragraph 9.02. (b) As to the disputed part of the default, the Lessee shall either: (i) Remedy the alleged default within the time allowed by paragraph 9.02 with full reservation of the Lessee's right to recover from the Lessor the amount paid and costs incurred by the lessee if it is ultimately determined that a default did not exist, or (ii) Furnish the Lessor within the time allowed by paragraph 9.02 with security approved by the Lessor as adequate in amount to cure the default if a default is ultimately determined to exist, provided that the Lessor may not withhold the approval unreasonably. The security shall consist of cash, obligations of the United States (or any agency thereof), of certificates of deposit issued by a national bank and shall be held by a national bank approved by the Lessor as agent or custodian for the parties. 9.07 In the case of a dispute as to the existence of a default, the Lessee may, in lieu of orin addition to its rights under paragraph 9.06, assert its right and defenses in any other manner permitted by law. ARTICLE 10 MISCELLANEOUS 10.01 Assignment and Subleasing. Lessee may not assign this lease in whole or in part or sublet all or any part of the leased Premises without the prior written consent of Lessor. Notwithstanding any assignment or sublease, Lessee shall remain dually liable on this lease and shall not be released from performing any of the terms, covenants and conditions of this lease. 10.02 Notices. All notices required or permitted to be given hereunder may be given by letter sent via registered or certified mail, return receipt requested, telegram, or any other form of \wltten communication and shall be deemed to be duly served and given for all purposes: W • (a) To Lessor when received at: City of Baytown Attn: City Manager P.O. Box 424 Baytown, Texas 77522 Fax: 420 -6586 (b) To Lessee when received at Lessee's office: Ninfa's Baytown, Inc. c/o RioStar Corporation Attn: Rolland D. Lorenzo 214 N. Nagle Houston, Texas 77003 Fax: 228 -0135 as the case may be. Notices to a mortgagee or a trustee or sublessee shall in like manner be mailed to its or their respective last known addresses. Any party may change the address for the giving of notices to it by giving due notice of the new address to the other parties, provided that the new address must be at a place in the United States where the mails and either mailgrams or telegrams or similar communications are regularly received. Notice given by mail shall be deemed given three (3) days after the date of the mailing of the same to the above - referenced address. 10.03 Entire Agreement. This lease, including the exhibits hereto, contains all the agreements between the parties hereto with respect to the Premises and may not be modified orally or in any other manner than by an agreement in writing, signed by all the parties hereto or their respective successors in interest. 10.04 Gender and Name. Words of any gender used in this lease shall be held to include any other gender, and words in the singular number shall be field to include the plural when the sense requires. 10.05 Headin2s. The headings as to contents or particular articles or sections herein are inserted only for convenience, and they are in no way to be construed as a part of this lease or as a limitation on the scope of the particular sections to which they refer. 10.06 Consents. Wherever either the Lessee's or the Lessor's consent or approval is required or desired, such consent or approval shall not be unreasonably withheld. 10.07 Rent on Termination. Upon any termination of this lease, other than under Article 9 hereof, all rent paid but not earned shall not be refunded. 16 ® 10.08 Force Majeure. Neither Lessor not Lessee shall be deemed in violation of this lease if it is prevented from performing any of the obligations hereunder by reasons of strikes, boycotts, labor disputes, embargoes, shortage of material, acts of God, acts of public enemy, acts of superior governmental authority, weather conditions, floods, riots, rebellion, sabotage, or any other circumstances for which it is not responsible or which is not in its control, and the time for performance shall be automatically extended by the period the party is prevented from performing its obligations hereunder. 10.09 Effective Date of Lease. This lease shall be effective as of the date the last party hereof has executed this lease, and references herein as to the "date this lease is signed" and words of similar import, shall mean such date. 10.10 Recording of Lease. Lessor and Lessee shall also execute, contemporaneously with the execution of this Lease, a Memorandum of this Lease, the form of which is attached as Exhibit "F;" to be recorded as a short form of this lease as a public record in the appropriate jurisdiction in which the Premises are located, and to be held in the possession of Lessee, until such time as all contingencies contained herein have been satisfied. Any expenses of recordation of such Memorandum shall be borne by the Lessee. 10.11 Payment of Legal Fees. Any other provision of this Lease notwithstanding, upon issuance of a final judgement in a court of law, of competent jurisdiction, in an action in which the Court has ruled on a dispute between Lessor and Lessee, the party against whom the judgement has been rendered shall be responsible for payment of all court costs and the reasonable attorney's fees of the prevailing party. 10.12 Texas. The construction interpretation and performance of this Agreement shall be governed by the laws of the State of Texas. 10.13 Venue. Both parties hereby irrevocably agree that any legal proceeding arising out of or in connection with this Agreement shall only be brought in the District Courts of Harris County, Texas or in the United States District Court for the Southern District of Texas, Houston, Harris County, Division. 10.14 Liquidated Damages. Both the Lessee and the Lessor agree that time is of the essence in the payment of all monies due pursuant to this lease and that the time allotted for each monthly payment described herein is reasonable times for the payment of each, taking into consideration all conditions, including but not limited to, the economic environment, restaurant industry and conditions prevailing in this locality. The Lessee and the Lessor understand and agree that a breach of this contract as to time of payment will cause damage to the Lessor and further agree that such damage cannot be accurately measured and that ascertainment will be difficult. Therefore, as part of the consideration for the awarding of this lease, the parties agree that for each and every calendar day any payment due hereunder or any portion thereof remains delinquent as set forth in the lease, the Lessor may charge and the Lessee shall pay as part of the monthly lease amount owed the sum of one hundred dollars ($100) as minimum liquidated damages. However, the foregoing agreement as to liquidated damages constitutes only an • agreement by the Lessor and the Lessee as to the minimum amount of damages which the Lessor will 17 • sustain in any event by reason of the Lessee's failure to make payments within specified time periods. Should the Lessor suffer damage over and above the minimum amount specified by reason of the Lessee's failure to timely pay in strict accordance with the lease, the Lessor may recover such additional amount. The Lessor will have the right to recover such amount from the Lessee; all such remedies shall be cumulative and the Lessor shall not be required to elect any one nor deemed to have made an election by proceeding to enforce any one remedy. 10.15 Litter and Pollutants. Lessee hereby guarantees that no pollutant , effluent, liquid or solid waste material, litter, trash or garbage issued from the leased premises is allowed to collect in the waters or in the vicinity of the Premises. 10.16 Fire System, The Lessee shall be responsible for ensuring that all fire fighting systems and equipment is regularly inspected and remains in the highest degree of readiness. 10.17 Consent. The Lessor by this Agreement does not give consent to litigation and the Lessor hereby expressly revokes any consent to litigation that it may have granted by the terms of this Agreement, charter or applicable state law. 10.18 Indemnity. Lessee agrees to and shall indemnify, hold harmless and defend, the Lessor, its officers, agents and employees, from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorneys' fees for injury to or death of any person, or for damage to any property, arising out of or in connection with the work done by Lessee under this Contract, where such injuries, death or damages are caused by the joint negligence of the Lessor and any other person or entity. It is the expressed intention of the parties hereto, both Lessee and the Lessor, that the indemnity provided for in this paragraph is an indemnity by Lessee to indemnify, protect and defend the Lessor from the consequences of the Lessor's own negligence, where that negligence is a concurring cause of the injury, death or damage. Furthermore, the indemnity provided for in this paragraph shall have no application to any claim, loss, damage, cause of action, suit and liability where the injury, death or damage results from the sole negligence of Lessor unmixed with the fault of any other person or entity. 10.19 Guarantor. For the consideration herein expressed which is hereby acknowledged sufficient and received, Ninfa's, Inc. (the "Guarantor "), hereby guarantees all payments and liabilities of the Lessee and the performance of all obligations of the Lessee under the terms and conditions of this Lease and all extensions thereof. It is expressly agreed by the parties hereto, the Guarantor, Lessee and Lessor, that throughout the initial term of the lease and all extensions thereof, the guaranty provided in this paragraph is a guarantee by the Guarantor to guaranty the performance of all of the Lessee's obligations under this agreement, including, but not limited to, operating a first- class, full- service restaurant and the payments of all amounts owed by Lessee hereunder. 10.20 Severability. All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. 18 • 10.21 No Third Party Beneficiaries. This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit Lessee and the Lessor only. 10.22 Authority to Enter Contract. Each party has the full power and authority to enter into and perform this Agreement, and the person signing this Agreement on behalf of each party has been properly authorized and empowered to enter into this Agreement. The persons executing this Agreement hereby represent that they have authorization to sign on behalf of their respective corporations. 10.23 .Agreement Read. The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. 10.24 Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. IN WITNESS WHEREOF, the parties hereto have executed this lease as of the day and year opposite their signature, said lease to be effective the first date set forth above. m LESSEE By: Ninfa's Baytown, Inc. GUARANTOR By: Ninfa's, Inc. LESSOR PETE C. ALFARO, Mayor City of Baytown, Texas • ATTEST EILEEN P. HALL, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney STATE OF TEXAS COUNTY OF HARRIS Before me on this day personally appeared , in his capacity as of Ninfa's Baytown, Inc., on behalf of such corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. SUBSCRIBED AND SWORN before me this day of , 1995. Notary Public in and for the State of Texas is 20 n • ATTEST EILEEN P. HALL, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney STATE OF TEXAS § COUNTY OF HARRIS § Before me on this day personally appeared , in his capacity as of Ninfa's Baytown, Inc., on behalf of such corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that lie executed the same for the purposes and consideration therein expressed. SUBSCRIBED AND SWORN before me this day of , 1995. 011 Notary Public in and for the State of Texas STATE OF TEXAS COUNTY OF HARRIS Before me on this day personally appeared , in his capacity as of Ninfa's, Inc., on behalf of such corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. SUBSCRIBED AND SWORN before me this day of , 1995. bAk1h9lbayland I.wp • 21 Notary Public in and for the State of Texas C, IMPROVEMENTS The following is a non - exclusive list of improvements which the Lessor may provide in accordance with the terms of the Lease of Premises: QUANTITY; :, DESCRIPTION 2 Janitor Room Shelving 1 Mop Sink 1 14" Buffalo Chopper 1 Vertical Cutter 1 S.S. Wall Shelf 1 S.S. Worktable w/ Undershelf 1 Prep. Sink 2 Shelving 2 Hand Sink 1 S.S. Worktable w/ Undershelf I Pot Rack 1 S.S. Wallshelf i S.S. Wallshelf 1 Prep. Table w/ Sink Undershelf 1 Mixer 2 Ingredient Bin LOT Cooler /Freezer Shelving I Walk -in Freezer 3 Dunnage Racks I Walk -in Cooler EXHIBIT "A" ® QUANTITY 1 1 1 4 2 2 2 1 1 1 1 1 1 1 1 4 5 1 1 1 4 1 1 3 0 DESCRIPTION 24' Exhaust Hood 24' Exhaust Hood 10 Burner Range w/ Ovens Low Boy 150 lb Fryer S.S. Worktable Pot Rack Pot Sink Pot Rack S.S. Wall Shelf S.S. Wall Shelf Clean Dish Table Dish Machine Pre -rinse Soiled Table Assembly Pot Shelving Glass Rack Dolly Comb. Flat Top Two Burner Range w/ Oven Refrigerated Equipment Stand 5' Char - broiler Hot Well Four Burner Table Top Range S.S. Worktable w/ Undershelf & Wall Shelf 3' Cheese Melter EXHIBIT "A" E, • QUANTITY. DESCRIPTION 3 Three Drawer Chip Warmer 3 Heat Lamp 2 45 lb. Fryer 1 Reach -in Refrigerator 1 78" Worktop Refrigerator 1 Three Well Serving Table 3 27" Worktop Refrigerator 1 Four Well Serving Table 1 48" Worktop Refrigerator 1 Two Well Serving Table 3 Microwave 1 Ticket Carrousel Lot Two Tier S.S. Pick -up Shelf 2 Heat Strip Lot Pick -up Counter 1 4' Cheese Melter 1 Trash Receptacle I Beverage Counter 3 Coffee Maker 1 12" x 26" Ice Pan 1 Tea Urn 2 Tea Machine 1 Soda Tower 1 Ice Bin 2 Water Filler EXHIBIT "A" ® QUANTITY DESCRIPTION 1 Beverage Counter Lot Dry Goods Storage Shelving 1 Ice Cream Freezer 1 12" x 26" Ice Pan 1 S.S. Window Shelf 1 S.S. Worktable w/ Undershelf 1 66" Stand 1 48" Flat Griddle 1 8' Exhaust Hood 1 48" S.S. Worktable 1 Shelving Lot Carbonator on Shelf Lot Bag -in -the Box Soda System 1 Ice Machine 1 Ice Machine Lot Four Q Storage Shelving 2 Margarita Machine 3 Display Reach -in Refrigerator I Beer Dispenser I Credit Card Machine 1 Cash Register 2 Trash Receptacle 1 36" Mug Chiller I [-land Sink I Bar Sink • EXHIBIT "A" • b:k1119 /cxhibila • QUANTITY DESCRIPTION l 24" Mug Chiller 2 Blender Station 2 Drain Board 2 Soda Gun 2 Jockey Box 1 Ice Bin 1 Wall Shelf 1 Waiter Station Counter 1 Two Drawer Chip Warmer 1 Utensil Rack 2 Conventional Oven 1 Buffalo Chopper 1 Steam Kettle I Cleveland 2 Fryer 1 Slicer EXI-IIBIT "A" THE STATE OF TEXAS) ® COUNTY OF HARRIS) FIELD NOTES of a 0.9010 Of an acre tract Of land situated in the William Scott Upper League, _k.bstract No. 66 Harris and being out of and a part of a 45.3774 acre tract County, Texas, Tract 2 in a deed from B.F.B. inc., of land called November 20, nc to City Of Baytown, dated 1979, and recorded at County Clerk's File Number G 388038 of the Official Public Records Of Real Property Of Harris County, Texas. This 0.9010 of an acre tract of land is more particularly described by metes and bounds as follows, to -wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE STATE PLANE COORDINATE SYSTEM, SOUTH DEFINED BY ARTICLE 5300A OF THE REVISED CIVIL STATUTES OF CENTRAL ZONE, AS OF TEXAS, 1927 DATUM ALL DISTANCES STATE REFERENCE IS MADE TO PLAT OF EVEN DATE CCOM°ANYIDGSTHZSE! BOUNDS DESCRIPTION. TES AND COMMENCING at a 2 inch galvanized iron Pie fond for corner of a 12.34 acre tract Of land onv eyedu o the aCiity eof Baytown by William Marsh Rice University by 1995, and recorded at County Clerk's File Number 555 March the Official Public Records of Real Property and the North corner of a 10.00 acre tract ofH land scalled yT Texas in a deed from Frank N.'Angel to Le Roy E. Pearce, dated August 1 1989, and recorded at County Clerk's File N gust 1, Official Public Records of Real p umber M 310862 of the This corner is in the South e roperty of Harris County, Texas. right width varies, and has a right of pay of State Highway No. 146 705,022.15 and X lane Coordinate value of Y 3,269,733.81. THENCE South 47 deg 49 min 20 sec East with the Southwest line of said 12.34 acre tract of land and the Northeast line of said 10 acre tract of land, at 489.45 feet found a 2 inch galvanized iron Pipe in line for the East cornet of said the Northeast line o 10.00 acre tract and the North corner of said 45.3774 acre tract of land, continuing on w tract and the Southwest zt} -� f said 45.3774 acre line of said 12.34 acre tract Of land a total distance Of 1:63.43 feet to a point_ THENCE South 42 deg 10 min 40 sec West a distance of 130.96 feet to a 1. inch iron rod set land. for the Northwest corner of this tract of 703 This corner has a States Plane Coordinate value of Y = ,872.71 and X = 3,270,666.92. THENCE South 66 deg 00 min 00 sec East with the North line of this tract Of land a distance of 142.02 feet to a 1/2 inch iron rod set for the Northeast corner Of this tract Of land. THENCE South 03 deg 08 min 09 sec West with the cast l tract of land a distance of 183.7 inn rod this for the most Northern Southeast cor er to a 1/2 inch iron rod set Of this tract Of land. EXHIBIT B PAGE NO. 2 - 0.9010 ACRE TRACT THENCE South 48 deg 54 min 50 sec West with the Southeast line of this tract of land a distance of 75.01 feet to a 1/2 inch iron rod set for the most Southern Southeast corner of this tract of land. THENCE North 86 deg 05 min 00 sec West with the South line of this tract of land a distance of 121.09 feet to a 1/2 inch iron rod set for the Southwest corner of this tract of land. THENCE North 11 deg 32 min 34 sec East with the West line of this tract of land a distance of 288.09 feet to the PLACE OF BEGINNING, containing within said boundaries 0.9010 of an acre of land. SURVEYED: August 31, 1995 SURVEYOR'S CERTIFICATE I, Robert L. Hall,Jr. Reg. Professional Land Surveyor No. 1610 do hereby certify that the foregoing field notes were prepared from a survey made on the ground on the date shown and that all lines, boundaries and landmarks are accurately described therein. 14ITNESS my hand and seal at Baytown, Texas, this the 5th., day of September, A.D., 1 95. REG. PROFESSIONAL LAND SURVEYOR NO. 1610 4530LEAS.FDN .......... BOBEi3T L. HALL, JR. A 161 0 ��QOFE S s �o. SU R E • w ti r LL m�- rXn O ox aw0 w�w-- r =w7r as za¢ w¢�waro_ = m J w O r 7 U oas��ou r rJV+w Q Q r Q w m V ..l 3�wa�2z Q Jooyrai V w u r r L) / cn aw rr rc� ww / Qwa nn[cp W Z=Z -- O Z w } r uw ctw wU>V a arz az- war -wxax no —Wr Jo: �rwOOa / Qp •00 J 07 - Vwa w .4Qn / w r$r7�h NJUt QH 4�n ui v�amr l Le e W c / / o W CL LO / Y 0_ N 4 0 Vm n / w O — ` ♦ 11 G °� `OQ �dQS� ' O` �O 'n o u L d P LU N 45 AD OR �o + L w ♦° ` Q �``t�` D•P \[, � App= e° � % 1 � w I 0 5 p o o ff\ + ° '0. nn = / ♦ S C. O \ L(��h� a),-x N Q �p �G \* O LL OR S a / PGrL c � Qt t ° a Wl Z N In n z o u n 1IV nC p, s q A ° = J ""i • • 1 J I u . 2 1 c Y • o. 4 r O ° ~ _ � • .mac -o e / o p Off` yy d• � � v o" O .- o o LU vo w t om o.- ` y , •U °• z ,y x • o J c V] V LL z Z 2 4 • 3 z` • r u 3 U 3 r A `lt a`• i i .� c� cd 4. C cd 03 Ke, u v. > n V ] P r, o `u o0 A H 2 0 lo I• co O m V) cz ca-4 Cd cz >1 m M v en W. 1-- iaq 0 C07tF YR )TTOtt At +D AQR-F_1ENT BY 4 SSE K THE STATE OF TEXAS X X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS X WHEREAS ,_ -TH,E CiTY_,•OF- ,BAY•TOWtr, a municipal corporation, oe the County of Harris in the State of Texas,' hereinafter called Borrower, for the purpose of securing a loan from CITIZENS BANX AND TRUST COMPANY OF BAYTOWN, TEXAS, a State banking corporation, of the County of Harris in the State of Texas, hereinafter called CITIZENS, has executed its one certain promissory note of even date herewith, in the principal sup of $1,800,000.00, bearing interest as therein specified, and payable to the order of CITIZENS in installments as therein provided, said note providing for acceleration of maturity in event of default and for attorney's fees, and for the purpose of securing said note has executed a Lease and Rental Assignment to CITIZENS of all leacec and rantal contract& which have been and which may hereafter be executed covering all or any part of the real property described in said.lease, and ell rentals and income thorefrom, such assignment to become effective only in event of default in the payment of said note or in tho performance of any covenant contained in said Lease and Rental Assignment and Security Agreement. WHEREAS, the 'underzigned•IZ,eacee is in posceecion of said real property or a part thereof under and by virtue of a written 1 L'.: . lease, dated September 12,''7995,'•ontcrcd into by and between THE CITY OF BAYTOWN, a nunicipal corporation, as Leeaor, and NINFA'S OF BAYTOWN, INC.','as'Leesco, a' copy of which leaco in hereto attached and made a part hereof; WHEREAS,' CITIZENS will not cloeo said loan and advance the funds thereof 'and accept caid note and Lease and Rental Assignment unless and' until the un'doroigned Le66Oe confirms certain repreccntationr hcrotdtorc'modo to it by oaid Borrower and agreac to certain mattcrr. with respect to Laviceo'o laanchold rights and ectotc; EXHIBIT E NOW, THEREFORE, in consideration of the premises and in consideration of CITIZENS making and closing said loan, the undersigned Lessee hereby confirms, represents and agrees as I. Subject to completion of the premises according to piano and specificationa, the undersigned Laasao agrees to accept possession of the premises demised pursuant to the terns of the aforesaid lease. 2_ The Lessor is not in default in any manner in the performance of any of the terms, covenants or provisions of said leave. 7. That the aforesaid lease has not been modified, altered or amended. 4. That there are no offsets or credit9 against rentals, nor have rentals been prepaid, except as provided by the lease tern. 5. That the term or primary term of said lease expires September 11, 2005, and Lessee is not in default in the payment of such rentals. 6. That the undersigned Lessee has no notice of an assignment, hypothecation or pledge of rents or the lease, except to CITIZENS. 7. That as long as the indebtedneso to CITIZENS remains unpaid, the undersigned Leaaee agreeo mo follow — A. That no rental will be prepaid under said lease for more than one month in advance during the term thereof except'as may be required to be paid in advance by the express terms thereof, without first obtaining the written consent of CITIZE14S. B. That said lease will not be changed or modified in any manner 'without first - obtaining the written consent of CITIZENS. C. To give prompt written notice to CITIZENS in event of damage or destruction to the premisos by fire or other casualty. This agreement shall be binding upon and shall inure to the benefit of thc­lcgol'repredentativec, heire, CucceGcorz and occigns, respectively, of the' undersigned Lessee and CITIZENS. EXECUTED, thin 14th day of September, 1995. ATTEST: NINFA'S OF BAYTOWN, INC. Oy: -2-