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EXHIBIT 10.18
LEASE AGREEMENT
This agreement of lease, made and entered into on the date of the last
of the parties hereto to execute this agreement, by and between the City of
Amarillo, a municipal corporation situated in Potter and Randall Counties,
Texas, hereinafter called "LESSOR," and Hastings Books, Music & Video, Inc., a
Texas corporation, hereinafter called "LESSEE";
W I T N E S S E T H
That the LESSOR does by these presents lease, let and demise unto the
LESSEE under the terms, conditions and considerations herein set forth, the
land and premises described herein, situated in Potter County, Texas. The area
of the leased premises is depicted as Areas A, B, C and D on the drawing
attached to this agreement as Exhibit A. The total lease area consists of
36,000 square feet of useable space, more or less.
1. Term. The term of this lease shall commence on February 1,
1993, and shall be for a primary term of two years. The LESSEE shall have
three consecutive options to renew this lease, each for one-year terms.
2. Rental. The LESSEE agrees to pay to the LESSOR. at its
offices at 509 E. 7th Avenue, Amarillo, Texas, a rental in the sure, of
Thirty-Six Thousand and No/100 Dollars ($36,000.00) per year payable in twelve
equal monthly installments of Three Thousand and 00/100 Dollars ($3,000.00) on
the first day of each month in advance. In the event that LESSEE shall default
in the prompt payment of said rental for any month, the LESSOR, at the LESSOR's
option, may declare the entire rentals for the remainder of the
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term, whether primary or optional, due and payable without further notice,
without prejudice to any other right or remedy that tire LESSOR may have under
this lease or provided by law. LESSEE agrees to pay twelve percent (12%) per
annum interest on all rental payments past due more than ten days. Posting of
a check for payment five (5) days prior to the first day of a month shall not
be considered default if it is not timely received by the LESSOR.
3. Use of Premises. LESSEE covenants to not use the premises in
any manner that is inconsistent with the zoning or other ordinances of the City
of Amarillo or inconsistent with law in any manner. The LESSEE agrees that the
LESSEE will keep the premises, inside and outside, in a clean and sanitary
condition, eliminating trash, wastepaper, rubbish or any scrap materials that
may result from LESSEE's operations.
4. Maintenance, Repairs and Restoration. The LESSOR shall
maintain and keep in a good state of repair the exterior wails, foundation,
roof and main structural parts of the building, but shall not be responsible
for any repairs necessitated by any act or omission or commission of the
LESSEE, the LESSEE's employees, agents, patrons, visitors or guests.
The LESSEE shall take good care of the premises and shall be
responsible for the upkeep and maintenance of the premises, including all of
the fixtures, and shall suffer no waste, shall keep the plumbing closets, pipes
and fixtures free and clear of obstacles and shall be fully responsible for the
maintenance of plumbing, light fixtures, air conditioning and heating
equipment, except as provided above. LESSEE shall promptly restore to its
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condition before damage any damages to LESSOR's property, whether leased or
not, caused by act, omission or commission of the LESSEE the LESSEE's employee,
agents, patrons, visitors or guests. If the LESSEE desires to redecorate the
premises, the LESSEE shall have the right to do so at LESSEE's own expense,
provided the LESSEE first notifies the LESSOR and outlines briefly the plan for
redecoration.
5. LESSEE's Payment obligations. The LESSEE shall pay all
utility bills, including lights, water, electricity, gas, sewer, trash disposal
and telephone, prior to delinquency, and shall furnish all tubing, globes or
any additional lighting fixtures that the LESSEE may desire. LESSEE shall pay
all business personal property taxes when due and shall allow no liens to
attach to LESSEE's property on the premises.
6. Alterations. The LESSEE shall not make any alterations to the
demised premises in excess of One Thousand Dollars ($1,000.00) in any single
year except upon the written consent from the LESSOR. All alterations,
additions and improvements, including partitions, fixtures, floor coverings and
lighting installed by the LESSEE with the consent of the LESSOR at LESSEE's
expense shall remain the property of the LESSEE and may be removed by the
LESSEE at the expiration of this lease, provided the premises are restored by
the LESSEE at the LESSEE's sole cost and expense to their former condition.
The LESSEE shall not attach any signs on or about the premises except as where
first approved by the LESSOR, which approval shall not be unreasonably
withheld. The LESSOR shall have
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the right to remove any sign or signs in order to maintain or repair the
outside of the building without expense to the LESSOR.
7. Assignment. The LESSEE shall not assign this lease or sublet
the premises or any part thereof without the written consent of the LESSOR.
8. Damage or Destruction of the Premises. In the event that the
premises or any part thereof shall, during any time this lease is in effect, be
damaged by fire, explosion, windstorm, or any other accident or calamity, the
LESSEE shall give immediate notice to the LESSOR; and if the premises are so
damaged as to be rendered unfit for occupancy, then in such case should the
LESSOR elect not to rebuild or repair said damages within thirty (30) days from
the date of notice by LESSEE, this lease shall terminate and be at an end, and
the rental shall be paid to the date of the damages. However, in tire event
the premises are only destroyed or damaged in part so the same shall be in part
suitable for occupancy and in part not suitable for occupancy, then the LESSOR
may cause the premises to be restored and repaired at LESSOR's costs, and
during the period of repair or reconstruction, the rent shall abate
proportionately in the proportion that the damaged or unsuitable portion bears
to the whole of the leased premises; and when the same shall have been so
repaired and reconstructed so the entire premises shall be fit for occupancy,
then the full rental payments as provided in this lease shall resumed. By this
lease, the LESSOR assumes no obligation to insure or be otherwise financially
responsible for any damages or harm, to LESSEE's property contained on the
promises.
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9. Remedy for Breach. In case of default in any of covenants
herein, LESSOR may enforce the performance of this lease in any mode provided
by law, and this lease may be terminated at the LESSOR's discretion if such
default continues for a period of (30) days after LESSOR notifies LESSEE of
such default and of LESSOR's intention to declare the lease terminated. If
such default or failure shall be not corrected before the expiration of thirty
(30) days from the date of such notification, then this lease cease and come to
an end, except that such termination shall not relieve LESSEE of LESSEE's
obligations to pay the rental for the full term. Thereafter, the LESSOR shall
have the right, without further notice or demand, to peaceably reenter and
remove all persons and LESSEE's property therefrom without being deemed guilty
in any manner of trespass and without prejudice to any remedies for arrears of
rent or breach of covenant; or LESSOR may resume possession of the premises,
and relet the same for the remainder of the term at the best rent obtainable
for account of the LESSEE, who shall make good any deficiency.
10. Liability. The LESSOR shall not be liable to the LESSEE or to
LESSEE's employees, patrons or visitors for any damage of any kind whatsoever
because of the condition of the leased premises or any adjoining premises. The
LESSEE expressly waives any defects in the premises and agrees to indemnify and
hold the LESSOR harmless from any and all claims by any person whatsoever for
any damage of any kind whatsoever arising out of or incidental to the occupancy
or use of the demised premises except for structural or latent
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defects of the leased premises or by the negligence of Lessor's employees.
11. Bankruptcy or Insolvency. Tn the event the LESSEE shall make
any assignment for the benefit of creditors, or in the event any proceedings
are instituted in any court for or involving the LESSEE's adjudication as a
bankrupt or an insolvent, or in the event proceedings are instituted in court
for the appointment of a receiving for any property of the LESSEE, it shall be
conclusively deemed that the LESSEE has made default under the covenants of
this lease, and the LESSOR shall have the right to terminate this lease in the
event such default continues for a period of thirty (30) days after LESSOR
notifies LESSEE of such default and of LESSOR's intention to declare this lease
terminated. In no event shall this lease be deemed an asset of LESSEE after
LESSEE's adjudication as a bankrupt or insolvent, or after the Appointment of
any receiver of any of the property of LESSEE or after any proceedings are
instituted in any court for the reorganization, liquidation or dissolution of
the LESSEE.
12. Quiet Enjoyment. LESSOR warrants that LESSOR has full
authority to make this lease and is the owner of the premises leased
hereunder, and binds and obligates the LESSOR to maintain the LESSEE in
peaceable and quiet enjoyment of said premises during the existence of said
lease so long as the LESSEE complies with all the covenants and conditions
imposed upon the LESSEE under the terms of this lease.
13. Ingress and Egress. The LESSOR reserves the right of ingress
and egress at all reasonable hours for the purpose, of
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inspecting the premises to see that they are maintained and operated in
accordance with and in compliance with the terms of this lease.
14. Holding Over. In the event the LESSEE should hold over the
leased premises after the expiration of this lease, said holding over shall
operate and be construed as a tenancy from month to month at a rental one and
one- half times the last monthly lease payment paid.
15. Superseding Lease. This Lease Agreement supersedes that
certain Lease Agreement between LESSOR and LESSEE dated September 15, 1988 and
that certain Amendment dated March 31, 1989 to said Lease Agreement but any
unfulfilled obligations of LESSEE under said Lease and Amendment shall not be
cancelled but shall remain as obligations of LESSEE until fulfilled.
16. Notice. Notice, provided under the terms of this lease or
otherwise, shall be given to the LESSOR and to the LESSEE by mailing notice
thereof to the LESSOR at P.O. Box 1971, Amarillo, Texas 79186, and to the
LESSEE at P.O. Box 3220, Amarillo, Texas 79120.
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WITNESS OUR HANDS as of the date of the last of the parties to sign
which is the 28 day of MAY, 1998.
LESSOR
THE CITY OF AMARILLO
By: /s/ JOHN Q. WARD
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ATTEST: John Q. Ward, City Manager
/s/ DONNA DERIGHT
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Donna DeRight, City Secretary
LESSEE
HASTINGS BOOKS, MUSICVIDEO, INC.
By: /s/ WALTER MCNEEN
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Office: Executive Vice President
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ATTEST:
/s/ GENE P. JONES
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Corporate Secretary
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