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Lease Agreement with Option to Purchase

 

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Title:

Lease Agreement with Option to Purchase

Entities:

Flotek Industries, Inc.; Oklahoma Facilities Limited Liability Company; Neal’s Technology, Inc.

Date:

2002

Size:

Preview shows 11KB of 41KB total

Price:

$38

ID:

#228164

 

 

► Leasing ► Misc. Lease Agreements
► Commodities ► Chemical Manufacturing

 

 

Start of Preview


{TEXT}

LEASE AGREEMENT WITH OPTION TO PURCHASE


THIS LEASE AGREEMENT WITH OPTION TO PURCHASE is made and entered into
as of the 28th day of February, 2002, by and between OKLAHOMA FACILITIES,
LIMITED LIABILITY COMPANY, an Oklahoma limited liability company ("Landlord"),
and NEAL'S TECHNOLOGY, INC., an Oklahoma corporation ("Tenant").

W I T N E S S E T H:

In consideration of the mutual covenants herein contained, Landlord and
Tenant hereby agree as follows:

ARTICLE I

DEMISED PROPERTY

1.01 Real Property. Landlord hereby leases to Tenant and Tenant hereby
leases from Landlord the real property situated in Stephens County, Oklahoma,
and described on Exhibit "A" attached hereto and made a part hereof, together
with all improvements and fixtures thereon and therein and all appurtenances
thereunto belonging, upon and subject to the terms and conditions expressed
below.

1.02 Demised Property. The real property, improvements, fixtures and
appurtenances described in Section 1.01 above are collectively referred to
herein as the "Demised Property."

ARTICLE II

TERM

2.01 Base Term. The term of this lease shall begin on March 1, 2002,
and, unless earlier terminated or extended, shall end on February 28, 2004 (the
"Base Lease Term").

2.02 Extended Term. Unless terminated by mutual agreement of Landlord
and Tenant or unless Tenant has acquired the Demised Property under its purchase
rights in Article XVII, the term of this lease shall automatically renew for an
additional period of eight years. Such renewal term shall be referred to herein
as the "Extended Lease Term." The terms of this lease during the Extended Lease
Term, including rent, shall be the same as those during the Base Lease Term or
as otherwise expressly provided in this lease. At the expiration of the Extended
Lease Term, in the event that this lease has not been earlier terminated and
Tenant is not in default hereunder,Tenant shall have the option to purchase the
Demised Property from Landlord for a purchase price of $420,000, by giving
written notice of its intent to purchase at or prior to the end of the Lease
Term. Such conveyance shall occur under the terms and conditions set forth in
Sections 17.04 through 17.09 of this lease, and under other such terms and
conditions as are usual and customary for similar transactions.



{PAGE}




2.03 Lease Term. The Base Lease Term and the Extended Lease Term shall
sometimes be collectively referred to herein as the "Lease Term."

ARTICLE III

RENT

3.01 Payment of Rent. Tenant shall pay the rent, as defined below,
during the Lease Term, in the amounts and at the times prescribed below, in
lawful money of the United States of America, at Landlord's address for notice
hereunder or otherwise as Landlord may designate.

3.02 Rent During Lease Term. Tenant covenants and agrees to pay
Landlord as rent for the Demised Property during the Lease Term the following
sums (the "Rent") commencing on March 1, 2002, and continuing on the first day
of each succeeding calendar month through the expiration of the Lease Term or
sooner termination of this lease:

First 12 Months $14,500 per month
Next 24 Months $19,750 per month
Last 84 Months $18,000 per month

3.03 Rent During Extended Lease Term. The rent during the Extended Lease
Term shall be as set forth in Section 3.02 above.

3.04 Late Payments of Rent. Rent payments not paid by their respective
due dates shall bear interest at the per annum rate of 12.00% until paid,
as and for additional rent hereunder.

ARTICLE IV

USE OF PREMISES, OPERATION OF BUSINESS
AND COMPLIANCE WITH REQUIREMENTS

4.01 Use of Premises. Tenant shall use the Demised Property for the
operation of a business engaged in the manufacture, sales, service and rental of
equipment and other goods.

4.02 Operation of Business. During the Lease Term Tenant shall operate
a business as described in Section 4.01 above, as permitted by this agreement
and applicable laws and ordinances.


2
{PAGE}





4.03 Compliance. Tenant shall promptly fulfill and comply with all
valid laws, rules and regulations made by competent governmental authority which
are applicable to the occupancy or use of the Demised Property or for the
correction, prevention and abatement of nuisances in or about or connected with
the Demised Property because of Tenant's use thereof, all at Tenant's expense,
except that any requirement to replace or repair structural bearing parts, the
roof, or exterior walls and foundation shall be at Landlord's expense, subject
to the provisions of Section 7.02 herein.

4.04 Insurance Requirements. Tenant, at its expense, shall promptly
comply with the requirements of all public liability, fire and other types
of insurance policies at any time in force with respect to the Demised Property.

4.05 Nuisance. Tenant will not do any act or thing which constitutes a
public or private nuisance on the Demised Property or in connection with its
business located thereon.

ARTICLE V

COVENANTS AGAINST LIENS

5.01 Liens of Tenant. If, because of any act or omission of Tenant, any
mechanic's lien or other lien, charge or order for the payment of money is filed
against any portion of the Demised Property, Tenant shall, at its expense, cause
the lien or liens to be discharged of record or bonded within 90 days after they
receive written notice from Landlord of such filing, unless Tenant contests the
validity in good faith and establish reserves deemed by Landlord to be
appropriate therefor.

5.02 Liens of Landlord. If, because of any act or omission of Landlord,
any lien, charge or order for the payment of money is filed against the Demised
Property, Landlord shall, at its expense, cause the lien or liens to be
discharged of record or bonded within 90 days after it receives written notice
from Tenant of such filing, unless Landlord contests the validity in good faith
and establishes reserves deemed by Tenant to be appropriate therefor.

5.03 Removal of Liens. If either party fails to cause the liens which
have been filed against the property because of any act or omission of that
party (unless such party contests the validity of the lien as provided above) to
be discharged of record or bonded within the required 90-day period or to
satisfy such liens within 60 days after any final, non-appealable judgment in
favor of the lien holders, the other party may cause the lien to be discharged.
All payments made by a party whose act or omission did not cause the filing of
such lien shall be immediately due and payable to such party from the party
whose act or omission did cause the filing of such lien, with interest at the
rate of ten percent (10%) per annum from the date of payment until repaid in
full.



3
{PAGE}

ARTICLE VI

TRADE FIXTURES, EQUIPMENT AND SIGNAGE

6.01 Trade Fixtures and Equipment. All trade fixtures and signs
currently owned by Landlord and located in and around the real property are part
of the Demised Property. Should Tenant place additional trade fixtures, signs,
equipment, furniture or other personal property in or on the Demised Property,
such shall not become the property of Landlord or a part of the realty unless
such is affixed to the Demised Property in such a manner that it can not be
removed without material injury to the Demised Property. Any such property which
cannot be removed from the Demised Property without material injury shall, upon
the termination of this lease, become a part of the Demised Property and the
property of the Landlord.

6.02 Signage. Tenant shall have the right to install and operate on the
exterior and interior of the building located on the Demised Property electrical
signs or other signs as are necessary and reasonable in the conduct of the
Tenant's business thereon.

ARTICLE VII

MAINTENANCE, ALTERATIONS AND ADDITIONS

7.01 Maintenance by Tenant. Subject to Landlord's obligation to make
repairs as set forth in Section 7.02, Tenant shall be responsible for, and shall
promptly pay any expenses in connection with, all maintenance of the Demised
Property during the Lease Term and any subsequent extensions or holding over
under this lease. Tenant shall not cause or permit any waste, damage or injury
to the Demised Property. At the expiration of the Lease Term or any extension or
holding over thereunder, Tenant will move its goods and effects and will
peacefully yield to Landlord the Demised Property, and the interior thereof
shall be in as good order and repair as when delivered to Tenant, except for
ordinary wear and tear.

7.02 Repairs by Landlord. During the term of this Lease and any renewal
thereof, Landlord shall, at its sole cost and expense, make any repairs or
replacements to the structural bearing parts of the interior and exterior walls
and foundation of any building on the Demised Property, and roof repairs and
replacement, which are necessary to keep the Demised Property in good condition
and repair, ordinary wear and tear excepted. Landlord's obligations under this
Section are subject to Tenant's obligation to insure the Demised Property under
Article IX. Further, Landlord's obligations under this Section do not extend to

 

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