Texas-Houston-5507 Renwick Commercial Lease - Zig Zag and The Men's Wearhouse Inc.
COMMERCIAL LEASE
This Lease, effective September 1, 1995, is made between Zig Zag, a
Joint Venture, ("Lessor"), and The Men's Wearhouse, Inc., a Texas corporation
("Lessee").
Lessee hereby offers to lease from Lessor the land and building
situated in the City of Houston, County of Harris, State of Texas, described as
5507 Renwick, Houston, Texas, 77081 ("Premises"), upon the following terms and
conditions.
1. TERM AND RENT
Lessor hereby leases the Premises for a term of ten (10) years,
commencing September 1, 1995 and terminating on August 31, 2005, or sooner as
provided herein. "Lease Year" shall be the period September 1 through and
including August 31. Lesser shall pay to Lessor rent, as set forth below, in
equal monthly installments in advance on the first day of each month for that
month's rental, during the term of the Lease. All rental payments shall be made
to Lessor at the address specified below. Rent for the initial Lease Year shall
be $6,700 per month. Thereafter, on or before the first day of August of each
successive Lease Year during the term, the Lessor shall establish rent for the
following Lease Year. For each Lease Year commencing after August 31, 1996, the
monthly rent shall be an amount, determined in good faith by Lessor, equal to
one-twelfth (1/12) of the debt service and operating costs anticipated for such
year. In connection with the annual redetermination of rent, the Lessor shall
also determine the difference, if any, between monthly rent paid and the actual
debt service and operating costs paid by Lessor during the then-current Lease
Year, and shall adjust monthly rent for the following Lease Year to reflect
such underpayment or overpayment, if any; provided, however, that monthly rent
shall not be less than $6,500 ("the Floor") or greater than $7,500 ("the Cap").
In the event that either the Floor or the Cap (as the case may be) does not
allow for the full recapture of any underpayment or overpayment during the
following Lease Year, then the amount which is not recovered during the such
year shall be carried forward and included as an adjustment to monthly rent for
the next succeeding Lease Year(s), until fully utilized; provided, however,
that the rent for each Lease Year shall be subject to the Floor and the Cap.
Any overpayment or underpayment not fully credited during the lease term shall
be determined by the Lessor monthly, within thirty (30) days after the end of
the lease term and paid by Lessor or Lessee, as the case may be, within fifteen
(15) days after written notice from Lessor.
2. USE
Lessee shall use and occupy the Premises for purposes related to the
sale of clothing, furnishings, accessories, and shoes, including but not
limited to the supply and distribution of the foregoing, and for any reasonably
comparable use. Lessor represents that the Premises may lawfully be used for
such purpose. The Premises shall be used for no other purpose without Lessor's
consent, which consent shall not be unreasonably withheld or delayed.
3. CARE AND MAINTENANCE OF PREMISES
Lessee acknowledges that the Premises are in good order and repair.
Lessee shall, at its own expense, maintain the Premises in a good and safe
condition, including plate glass, electrical wiring, plumbing and heating
installations and any other system or equipment upon the Premises and shall
surrender the same, at termination hereof, in as good condition as received,
normal wear and tear excepted. Lessee shall also maintain in good condition
such portions adjacent to the Premises, such as sidewalks, driveways, lawns and
shrubbery, which would otherwise be required to be maintained by Lessor.
4. ALTERATIONS
Lessee shall not, without first obtaining the written consent of
Lessor, which consent shall not be unreasonably withheld or delayed, make any
alterations, additions, or improvements, in, to or about the Premises.
5. ORDINANCES AND STATUTES
Lessee shall comply with all statutes, ordinances and requirements of
all municipal, state and federal authorities now in force, or which may
hereafter be in force, pertaining to the Premises, occasioned by, Lessees use
of or alterations to the Premises.
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6. ASSIGNMENT AND SUBLETTING
Lessee shall not assign this Lease or sublet any portion of the Premises
without the prior written consent of the Lessor, which shall not be unreasonably
withheld or delayed. Any such assignment or subletting without consent shall be
void and, at the option of the Lessor, Lessor may terminate this Lease.
Notwithstanding the above to the contrary, Lessee may assign this Lease with
notice to but without Lessor's consent in the event of a sale or other transfer
of all or substantially all of the stock and/or assets of Lessee and Lessee may
assign this Lease to a subsidiary or other entity affiliated with Lessee.
7. UTILITIES
All applications and connections for utility services to the Premises
shall be made in the name of Lessee only, and Lessee shall be solely liable for
utility charges as they become due, including those for sewer, water, gas,
electricity, and telephone services.
8. ENTRY AND INSPECTION
Lessee shall permit Lessor or Lessor's agents to enter upon the
Premises at reasonable times and upon reasonable notice for the purpose of
inspecting the same, and shall permit Lessor at any time within sixty (60) days
prior to the expiration of this Lease, to place upon the Premises any usual "To
Let" or "For Lease" signs.
9. INDEMNIFICATION
Excepting claims arising out of the negligence of or breach of this
Lease by Lessor or its agents, Lessor shall not be liable for any damage or
injury to Lessee, or any other person, or to any property, occurring on the
Premises or any part thereof, and Lessee agrees to hold Lessor harmless from
any claims for damages.
10. INSURANCE
Lessee, at its expense, shall maintain public liability insurance
including, bodily injury and property damage insuring Lessee and Lessor with
minimum coverage as is customary for lessees of similar real property in
Houston, Texas. Lessee shall provide Lessor with a Certificate of Insurance
showing Lessor as an additional insured. The Certificate shall provide for a
ten (10) day written notice to Lessor in the event of cancellation or material
change of coverage. To the maximum extent permitted by insurance policies which
may be owned by Lessor or Lessee, Lessee and Lessor, for the benefit of each
other, waive any and all rights of subrogation which might otherwise exist.
11. EMINENT DOMAIN
If the Premises or any part thereof, or any other part of the building
materially affecting Lessee's use of the Premises, shall be taken by eminent
domain, this Lease shall terminate on the date when title vests pursuant to
such taking. The rent, and any additional rent, shall be apportioned as of the
termination date, and any rent paid for any period beyond that date shall be
repaid to Lessee. Lessee shall not be entitled to any part of the award for
such taking or any payment in lieu thereof, but Lessee may file a claim for any
taking of fixtures and improvements owned by Lessee and for moving expenses.
12. DESTRUCTION OF PREMISES
In the event of a partial destruction of the Premises during the
term hereof, from any cause, Lessor shall forthwith, provided that such repairs
can be made within sixty (60) days under existing governmental laws and
regulations, repair the Premises to its condition existing before such partial
destruction, and such partial destruction shall not terminate this Lease, except
that Lessee shall be entitled to a proportionate reduction of rent while such
repairs are being made, based upon the extent to which the making of such
repairs shall interfere with the business of Lessee on the Premises. If such
repairs cannot be made within said sixty (60) days, Lessor, at its option, may
make the same within a reasonable time, this Lease continuing in effect with the
rent proportionately abated as aforesaid, and in the event that Lessor shall not
elect to make such repairs which cannot be made within sixty (60) days, this
Lease may be terminated at the option of either party. In the event that the
building in which the Premises may be situated is destroyed to an extent of not
less than one-third (1/3) of the replacement cost thereof, Lessor may elect to
terminate this Lease whether the Premises be injured or not. A total destruction
of the building in which the Premises may be situated shall terminate this
Lease.
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13. LESSOR'S REMEDIES ON DEFAULT
If Lessee defaults in the payment of rent, or any additional rent, or
defaults in the performance of any of the other covenants or conditions hereof,
Lessor may give Lessee notice of such default and if Lessee does not cure any
such default within five (5) days after the giving of such notice (or if such
other default is of such nature that it cannot be completed cured within such
period, if Lessee does not commence such cure within thirty (30) days and
thereafter proceed with reasonable diligence and in good faith to cure such
default), then Lessor may terminate this Lease on not less than thirty (30)
days notice to Lessee. On the date specified in such notice the term of this
Lease shall terminate, and Lessee shall then quit and surrender the Premises to
Lessor, but Lessee shall remain liable as hereinafter provided. If this Lease
shall have been so terminated by Lessor, Lessor may at any time thereafter
resume possession of the Premises by any lawful means and remove Lessee or
other occupants and their effects. No failure to enforce any term by either
party shall be deemed a waiver by such party.
14. TAXES
Lessee shall be responsible for the current payment of all real estate
taxes imposed against the Premises.
15. COMMON AREA EXPENSES
Lessee shall be responsible for any and all costs and expenses relating
to the maintenance of the Premises, excepting structural repairs and
replacements, which costs shall be borne solely by Lessor.
16. ATTORNEYS FEES
In case suit should be brought for recovery of the Premises, or for any
sum due hereunder, or because of any act which may arise out of the possession
of the Premises, by either party, the prevailing party shall be entitled to all
costs incurred in connection with such action, including reasonable attorney's
fees and costs.
17. NOTICES
Any notices which either party may or is required to give, shall be
given by mailing the same, postage prepaid, to Lessee at the Premises, or
Lessor at the address shown below, or at such other places as may be designated
by the parties from time to time.
18. SUCCESSORS AND ASSIGNS
This Lease shall be binding upon and inure to the benefit of the
heirs, assigns and successors in interest to the parties.
19. SUBORDINATION
This Lease is and shall be subordinated to all existing and future
liens and encumbrances against the property on which the Premises is situated.
20. ENTIRE AGREEMENT
The foregoing constitutes the entire agreement between the parties and
may be modified only by a writing signed by both parties.
LESSEE: LESSOR:
The Men's Wearhouse, Inc. Zig Zag
a Texas Corporation a Joint Venture
By: /s/ David Edwab By: /s/ George Zimmer
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David Edwab George Zimmer, Trustee
Chief Operating and Financial Officer
5803 Glenmont 5803 Glenmont
Houston, Texas 77081 Houston, Texas 77081
Attn: Gary Ckodre Attn: Gary Ckodre