Preview
FILED
5/26/2020 7:49PM
FELICIA PITRE
DISTRICT CLERK
DALLAS 00., TEXAS
CO.,
Belinda Hernandez DEPUTY
DC-20-07303
DC-20-O7303
CAUSE NO. _________________
VICTOR PROPERTIES, LLC, § IN THE DISTRICT COURT
§
§
Plaintiff, §
§
v §
M-298TH
________ JUDICIAL DISTRICT
§
§
CHRIS GRINILLO, §
§
Defendant. § DALLAS COUNTY, TEXAS
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION AGAINST
DEFENDANT, JURY DEMAND, AND REQUESTS FOR DISCLOSURE
Plaintiff Victor Properties, LLC., herein referred t0 as “Plaintiff” or “VPLLC,” files
files this
complaint seeking recovery against Defendant Chris Grinillo and for cause respectfully shows the
Court as follows:
I. NATURE OF THIS ACTION
1. Plaintiff VPLLC files this complaint against Defendant Chris Grinillo (“Defendant”
or “Grinillo”) seeking to t0 recover approximately damages due to the contractual breaches and tortious
conduct against VPLLC arising from a commercial lease agreement.
II. DISCOVERY LEVEL
2. Discovery is intended to
t0 be conducted under Level 3 pursuant to rule 190 of
0f the
TEXAS RULES OF CIVIL PROCEDURE.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 1
III. THE PARTIES
3. Plaintiff Victor Properties, LLC (“VPLLC”) is a domestic limited liability company
with itsprincipal place 0f business located in Dallas County, Texas.
4. Defendant Chris Grinillo may be served With process by delivering the citation and
petition to him at his residence located at 502 N. Madison Avenue, Dallas, Texas 75208 0r wherever
he may be found.
IV. IURISDICTION AND VENUE
5. This Court has subject matter jurisdiction in this action as the claims asserted arise
from the statutory and common laws of the state of Texas.
6. This Court maintains personal jurisdiction over the parties as both Plaintiff and
Defendant are either citizens of the state of Texas 0r maintain systematic and continuous contacts
with the state of Texas such that they are amenable to the general jurisdiction of this state.
7. In addition, this Court maintains specific jurisdiction over Defendant as the Claims
asserted herein arise from itssignificant contacts and conduct that gives rise t0 the specific claims
and causes 0f action asserted in this lawsuit.
8. Venue isproper in this judicial district as the leased premises at issue islocated in
Dallas County, Texas.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 2
V. FACTUAL BACKGROUND
9. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein.
10. VPLLC and Defendant Grinillo entered a twenty’four (24) month commercial lease
agreement whereby Grinillo agreed to lease 900 square feet of commercial rental space identified as
238 W. Davis Street, Dallas, Texas 75208 (“leased premises”).
11. A true and correct copy 0f the lease agreement is attached t0 this complaint and
identified as Exhibit A.
12. Beginning on January 1,2017, VPLLC and Grinillo agreed the base monthly rental
payments owed t0 VPLLC 0n the firstday of each of the firsttwelve months of the commercial lease
agreement would be $2,000.00.
13. The base monthly rental payments owed t0 VPLLC on the first day of each of
months thirteen through twenty’four 0f the commercial lease agreement would be $2,100.00.
14. In addition, Grinillo agreed that, under the terms 0f the lease agreement,
Defendants shall remain responsible for their prorated share of real estate taxes, insurance, and
common area expenses.
15. Under this provision, Grinillo agreed t0 pay VPLLC an amount equal t0 fifteen
percent 0f an assessment on the current property.
16. Grinillo breached the commercial lease agreement by failing t0 comply with the
provisions 0f payment and have failed t0 comply ever since.
17. Grinillo terminated their rights to occupy the leased premises without terminating
the Lease and acceleration 0f all rents due during the remainder 0f the lease.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 3
18. The Lease stipulates that in the event Tenant is in default, Landlord may, terminate
Tenant’s right to occupy the leased premises without terminating the Lease and may accelerate all
rents which are payable during the remainder of the Lease or any renewal period.
19. Further, the Lease stipulates that if Tenant is in default, Tenant will be liable for
(1) any lost rent; (2) Landlord’s cost of reletting the leased premises, including brokerage fees,
advertising fees, and other fees necessary to relet the premises; (3) repairs to the leased premises for
use beyond normal wear and tear; (4) all Landlord’s costs associated with eviction of Tenant, such
as attorney’s fees, court costs, and prejudgment interest; (5) all Landlord’s costs associated with
collection of rent such as collection fees, late charges, and returned check charges; (6) cost of
removing any of Tenant’s equipment or fixtures left on the leases premises or Property; (7) cost to
remove any trash, debris, personal property, hazardous materials, or environmental contaminants
left by Tenant or Tenant’s employees, patrons, guests, or invitees in the leased premises or Property;
(8) cost to replace any unreturned keys or access devices to the leased premises, parking areas, or
Property; and (9) any other recovery to which the Landlord may be entitled under the Lease or under
law.
20. As a result of Grinillo’s repudiation of the commercial lease agreement and failure
to cure such default, Defendants’ are liable for all rents, fees and other indebtedness accrued and all
future rents, fees and obligations under the Lease.
21. Under the Lease, Grinillo was required to pay monthly Rent on or before the first
day of each month during the Lease term.
22. In breach of the Lease, Grinillo failed to pay rental amounts due through the
duration end of the commercial lease agreement.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 4
23. Grinillo’s repeated failure to pay monthly rents each constitute a default under the
Lease.
24. Grinillo continues to refuse to pay rental obligations demanded by VCPLLC.
25. Further, Grinillo abandoned the premises, which constitutes a breach of the Lease.
Grinillo remain in Default under the Lease.
26. As such, under the Lease, Grinillo remains liable for (1) any lost rent; (2) VPLLC’s
cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees
necessary to relet the premises; (3) repairs to the leased premises for use beyond normal wear and
tear; (4) all VPLLC’s costs associated with eviction of Tenant, such as attorney’s fees, court costs,
and prejudgment interest; (5) all VPLLC’s costs associated with collection of rent such as collection
fees, late charges, and returned check charges; (6) cost of removing any of Tenant’s equipment or
fixtures left on the leases premises or Property; (7) cost to remove any trash, debris, personal property,
hazardous materials, or environmental contaminants left by Tenant or Tenant’s employees, patrons,
guests, or invitees in the leased premises or Property; (8) cost to replace any unreturned keys or access
devices to the leased premises, parking areas, or Property; and (9) any other recovery to which the
VPLLC may be entitled under the Lease or under law.
27. In addition, Grinillo intended to breach the lease agreement and knew their breach
would adversely inhibit VPLLC’s ability to enter into lease agreements with other prospective tenants
who would have paid the full amounts owed under the lease and would have performed all
obligations required under the lease agreement. The opportunity cost to VPLLC is significant.
28. The claim is liquidated and founded on a written lease agreement.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 5
V1. CAUSES OF ACTION AGAINST DEFENDANTS
COUNT ONE: BREACH 0F CONTRACT
29. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein.
30. Plaintiff would show that Plaintiff entered into a Commercial Lease Agreement with
Defendant Grinillo as indicated above and pursuant to the terms and provisions of said Commercial
Lease Agreement attached hereto as Exhibit “1” and made part hereof for allpurpose.
31. Plaintiff has timely performed all conditions required to be performed on itspart
under the Commercial Lease Agreement and all conditions preceding itsrights and other occurred
costs.
32. In accordance with the terms and provisions 0f the Commercial Lease Agreement
and the laws of the State 0f Texas, Plaintiff is entitled to receive from Grinillo allunpaid rent that
has accrued under the Lease from the last due payment until the expiration 0f the term 0f the Lease
or until Plaintiff, through diligent effort, is able to relet the Property and/or t0 reduce the obligation
of Defendant for payment 0f itsCommercial Lease Agreement.
33. The rent now owing t0 Plaintiff from Grinillo remains past due and unpaid.
34. The failure 0f Grinillo t0 abide by and honor its agreements and duties and its
continuing failure to do so constitute a breach of the Commercial Lease Agreement between the
parties and for which breach Plaintiff has been damaged in an amount in excess 0f the minimum
jurisdictional limits 0f the Court.
35. In accordance with the terms and provisions 0f the Commercial Lease Agreement,
Grinillo failed to perform their obligations and therefore defaulted in making the payments.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 6
36. Plaintiff has given Defendants credit for all just and lawful offsets, credits and
payments in determining the monies owed to Plaintiff.
37. Plaintiff has made reasonable and just demand upon Grinillo in accordance with
the terms and provisions of the Commercial Lease Agreement and the laws of the State of Texas.
38. Notwithstanding such reasonable and just demands, Grinillo failed, and continue
to fail to pay Plaintiff the monies owed to Plaintiff.
39. VPLLC fully performed all obligations required under the lease agreement or was
excused from performing such obligations as a result of Grinillo ‘s breach of the lease agreement.
40. All conditions precedent to VPLLC’s claim for relief have been performed or have
occurred.
COUNT TWO: MONEY HAD & RECEIVED
41. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein.
42. The Defendant holds money that, in equity and good conscience, belongs to
Plaintiff.
43. Plaintiff seeks damages in the amount of at least $20,000 which is within the
jurisdictional limits of this Court. TEX. R. CIV. P. 47(b).
COUNT THREE: QUANTUM MERUIT
44. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein
45. Grinillo accepted valuable property rights to the exclusion of all others directly from
Plaintiff VPLLC without providing fair compensation to Plaintiff in exchange.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 7
46. As a direct and proximate result of this tortious conduct by the Grinillo against
VPLLC, VPLLC has incurred damages in lost rental income and revenue.
47. VPLLC is entitled to recover damages from Grinillo for actual damages, pre-
judgment interest, court costs, and other remedies within the jurisdictional limits of this Court.
suffered as a result of Defendants’ actions.
COUNT FOUR: PROMISSORY ESTOPPEL
48. VPLLC incorporates all assertions contained in the paragraphs above as if fully set
forth verbatim herein.
49. Grinillo made a promise to Plaintiff VPLLC that Grinillo did not keep, specifically
the promise to pay VPLLC monthly base rent on the first day of each month of the thirty six month
lease agreement, in addition to the additional payments required under the Lease Agreement. See
Exhibit 1.
50. As a direct and proximate result of this tortious conduct by the Defendant against
VPLLC, VPLLC has incurred damages in lost rental income and revenue.
51. VPLLC is entitled to recover damages from Defendants for actual damages, pre-
judgment interest, court costs, and other remedies within the jurisdictional limits of this Court.
COUNT FIVE: TORTIOUS INTERFERENCE WITH PROSPECTIVE RELATIONS
52. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein.
53. Defendant Grinillo’s failure to return the Premises to the condition in which it was
received prevented VPLLC from giving possession of the Premises to others in a reasonable time
after Defendant vacated the Premises.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 8
54. Instead, VPLLC has been forced to expend significant time and money to repair the
substantial damage caused by Defendants’ wrongful acts, and to restore the Premises to a condition
appropriate for the operation of a commercial enterprise.
55. This has prevented other prospective tenants from taking possession of the Premises
as initially contemplated by the parties, thereby preventing them from opening for business.
56. In fact, VPLLC was prevented from executing a contract with others for substantial
periods of time after Defendant vacated the leased premises.
57. As a direct and proximate result of this tortious conduct by the Defendant against
VPLLC, VPLLC has incurred damages in lost rental income.
58. VPLLC is entitled to recover damages from Defendants for the lost rental income
suffered as a result of Defendants’ actions.
COUNT SIX: ATTORNEY FEES
59. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if
fully set forth verbatim herein.
60. Plaintiff would show unto the Court that it was necessary to secure the services of
the undersigned licensed attorney to represent Plaintiff in connection with this matter.
61. Plaintiff would show that despite previous demand, Grinillo failed to honor their
commitments, meet their obligations and duties, pay monies due and owing by them, to pay damages
incurred by Plaintiff and such actions and non-actions have necessitated the filing of this suit.
62. Accordingly, Plaintiff is entitled to receive reasonable attorney’s fees pursuant to the
TEXAS CIVIL PRACTICE AND REMEDIES CODE, Sections 38.001, et seq, 31.004, 31.005 and 105.001,
et seq and the terms and provisions of the Commercial Lease Agreement.
PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 9
63. Plaintiff VPLLC isentitled t0 recover reasonable attorney’s fees necessary for the
prosecution of this action and for any and allnecessary appeals for which sum Plaintiff herein now
sues.
VII. REQUESTS FOR DISCLOSURE
64. Pursuant to TEX. R. CIV. P. 194, Defendant isrequested to serve responses t0 the
instant requests for disclosure.
VIII. URY DEMAND
65. Plaintiff VPLLC requests a trial by jury.
IX. PRAYER FOR RELIEF
66. WHEREFORE, PREMISES CONSIDERED, PlaintiffVictor Properties, LLC prays
that the Defendant Chris Grinillo be cited t0 appear and answer and that the Court enter final
judgment for the amounts sought, together with prejudgment and post—judgment interest, costs of
court, attorney’s fees, and such other further relief to which Plaintiff Victor Properties, LLC may be
justly entitled.
Respectfully submitted,
By: s Benton Williams II
BENTON WILLIAMS II
Texas Bar No. 24070854
BW@bentonwilliamspllc.com
100 Crescent Court
Suite 700
Dallas, Texas 75201
Te1.: (214) 7856205
Facsimile: (214) 785—6485
Attorney for Plaintiff Victor Properties, LLC
PLAINTIFF VICTOR PROPERTIES, LLC’s ORIGINAL PETITION PAGE 10
EXHIBIT 1
NORTH TEXAS COMMERCIAL ASSOCIATION 0F REALT0R5®
COMMERCIAL LEASE AGREEMENT
TABLE OF CONTENTS
Article Page
Defined Terms 1
Lamas and Term 4
Rant and Security Deposit 4
Taxes 6
Insurance and Indemnity 5
wWflmmewfi
Use of Premises 7"
Property Condition, Maintenance, Repairs and Alterations 9
Damage car Destruction 11
Condemnation 12
Assignment and Subletting 12
Defautt and Remedies 12
Landlnrd‘s Contractual Lien 15
PWPSfi’D-‘T‘P
Protectimn 0f Lenders
A—A—LA—LAA
18
Environmental Representations and Indemnity 1?
Professional Service Fees 1B
Miscellaneous and Additional Provisions 20
[Throughout this Lease, complete afl blanks and check ail boxes that appfy. 313mm no!
completed and boxes not checked da not apply.)
For good and valuable cnnsideratinn, the parties to thisCommercial Lease Agreement {the "Leasa")
agree as follows:
ARTICLE ONE
DEFINED TERMS
A5 used in thisLease. the terms set forth One haVB the following meanings:
in this Article
1.01 EffactiVB Date: The lastdate beneath the signatures of Landlord and Tenant on thisLease.
1.02 Landlord: LLC
Victor Properties
AddreSs: PD. Box 2223232 Dallas TX. ?5222
Telephone: 469-?5?—?1 BS Fax:
E ma d wictu r@sbcg Ioba .net
il: |
LANDLORD‘SINITIALS M, 5 TENAMBINITIALS 6/2
COMMERCIAL LEASE AGREEMENT — Page 1
©NTCAR 2mg _ Farm Na. 2 (9:93)
1.03 Tenant: Chris Granillu
AddressfiDZ N Madison Ave. Dallas TX. ?5208
Fax:
Telephone:
Email:
1.94 Premises [include Suite or Unit No., ifapplicable]:
A. Building Name: The Ambers
B. Street address: 238 W Davis st.Dallas TX. ?5208
Dana‘s
i1“! County, Texas,
the Premises are situated is described as:
C. Legal description: The property on which
mare described {3n the attached Exhibit “A", SURVEY ANDIOR LEGAL
and may b3 particulariy
on Exhibit “A",
The term “Property" includes the land describsd
DESCRIPTION (the “Property”).
es].
and any improvements on the land [including the Premis
900 square feet, or
D. Floor Plan or Site Plan: Being a floor area of approximately
square feet or approx imatel y
a land area of approximately “B”, FLOOR
farm on the attached Exhibit
acres, and being more particularly Shawn in outline
PLAN ANDJDR SITE PLAN.
Rata Share: 15 % [See Addendum “A", EXPENSE REIMBURSEMENT, if
E. Tenant‘s Pro
applicable].
January? 2017
Term: 2 years and months beginning on ,
1.05 2018 {the
ending DBCmeBI'C’a‘l
{the “Commencement Date") and ,
references in this Lease to the “Term"
"Expiration Date“). Unless the context requires otherwise.
of this Lease. [See Addendum “B”, RENEWAL OPTIONS, if
include any renewal or extensian
applicable].
ments of $ 2000-90
1.05 Base Rent: Base Rent for the Term is dLIe and payable in monthly install
Tenant to Landiord under
per month in advance. Base Rent and all other sums dag Br payable by
“Rent.“ monthly installments nf
as the [If the
this Lease are collectively referred to in this Lease
see Addendum “C“,
Term of the Lease, then
Base Rent are not the same amount fur the entire
BASE RENT PAYMENT SCHEDULE, attached]
if
‘93. [See Addendum “D”, PERCENTAGE
1.0"? Percentage Rental Rate:
RENTAL AND GROSS SALES REPORTS, ifapplicable]
{due upon execution of this Lease). [See Section 3.84l
1.88 Security Deposit: $
1.119 Permitted Use: BarbBFSthD
[See Section 6.fl1|
LANDLORD'S INITIALS 5211 TENANT'S INITIALS L 2..
COMMERCIAL LEASE AGREEMENT — Page 2
@NTCAR 2098 - Farm ND. 2(BIBS)
whom Tenant is to deliver payments under this Lease is the Landlord, unless one 9f
1.1{1 Party ta
the following boxes is checked, in which case Tenant shall deliver payments to: D Principal
name and other than Landlord or Principal Broker]:
Broker, ar D Other [Set forth address, if
isacting as the agent
1.11 Principal Broker: '
.
far Landlord exclusively, unless one of the folio es is checked, inwhich case Principal
Broker isacting as: D the agent forTe usively, Dru an intermediary.
Principal Broker‘ ass:
-
Whom: Email:
Fax:
1.12 Cooperating Broker:
unless one of the following boxes isc In
Wagent
which case Cooperating
far Tenant excheiualy, '
,
Broker is acting as: Dtha agent for Landlsr ,
or an intermediary.
Cooperating B dress:
flphone: Email:
Fax:
1.13 The Professional Service Fee (the “Fee“):
15.01 and Section 15.02 es will be “/uto
A. The percentages applicable in Section
Bmker and ”A3to Cooperating Br the Fee isbased on an amount per
Principal .
per a fout to Principal Broker and $ per
square foot, that amuunt is $
Broker. ea be paid 1n the manner described in Subsection
square foot ta Cooperating will
15.0118 (half on executiun a on the Commencement Date), unless this box U is checked. in
which case the Fee e paid in the manner described in Subsection 15.01 B (monthly).
B. Th centages applicable in Section 15.03 in the event 0f a sale willhe % to Principal
raw“ roker and ”A t0Cooperating Broker.
or addendum attached to this Lease {as indicated by the
1.14 Exhibits and Addenda. Any exhibit
incorporated as a part of this Lease. Any term not specifically defined in
boxes checked below) is “m
it in the body nf this Lsass. If any provisions
an Addendum win have the same meaning given lo
the body 0f this Lease conflict with the pramsions cf any Addendum. the
Addendum will control.
Exhibit “A“ Survey andier Legal Descripfinn of the Property
B Exhibit “B“ Floor Plan andfor Site Plan
I. Exhibit "C“ Other
Addendum "A“ Expense Reimbursement
§- Addendum “B" Renewal Options
Addendum “C" Base Rent Payment Schedule
Addendum "D" Percentage Rental and Gross Sales Reports
Addendum “E" Right of First Refusal for Additinnal Space
fi Addendum "F“
Addendum “G"
Guaranty
Construction sf Improvements
D
Addendum "H" Rules and Regulations
Addendum "l" Information About Brakerage Services
Addendum “J" Additional Provisions Addendum
Addendum "K" Other
LANDLORD'SINITIALS IZ/L” TENANT'SINITIALS (Q; 2 ,_,..--
COMMERCIAL LEASE AGREEMENT — Page 3
@NTCAR 2DB8 — Fnrm NB. 2(9308‘)
ARTICLE TWO
LEASE AND TERM
2.01 Lease of Premises for Term. Landlord leases the Premises to Tenant and Tenant 139535 the
Premises from Landlord for the Term stated in Section 1.05. The Commencement Data isthe date
specified in Section 1.95, unless advanced or delayed under any provision of this Lease.
2.02 Delays in Commencement. Landlord will not be liableto Tenant ifLandlord does mat deliver
passassinn of the Premises to Tenant 0n tha Commencement Date specified in Sention 1.05 above.
Landlord‘s non-delivery of possessian of the Premises to Tenant on the Commencement Date will not
affect this Lease or the obigations of Tenant under this Lease. However, the Commencement Date will
be possession of the Premises i5delivered to Tenant. The Term willbe extended fora
deiayed until
perind equal to the delay in delivery of possession of the Premises to Tenant, plus the number of days
month. If Landlord dues nut deliver pussession Bf
nesessary for the Term to expire on the last day of a
the Premises to Tenant within sixty {60) days after the Cnmmencement Date specified inSection 1.05,
Tenant may cancel this Lease by giving a written nntica ta Landlord at any time after the 50-day period
delivers possession ofthe Premises toTenant. If Tenant gives such
ends, but before Landlnrd actually
this Lease willbe canceled effective as of the date cf its execution, and no party will have any
notice,
rights or obligations under thisLease. IfTenant does nut give such nntice within the time specified,
Tenant will have no right to cancel this Lease, and the Term willcommence upon the delivery of
possession n1“the Premises to Tenant. If deiivery0f possession of the PremiSBS tn Tenant is delayed,
Tenant upon such execute an amendment to this Lease setting forth the
Landlord and shall, delivery,
revised Commencement Date and Expiration Date of the Term.
ff Tenant occupies the Premises before the Commencement Date, Tenant‘s
2.03 Eariy Occupancy.
of the provisions of this Lease. Early occupancy of the
accupancy 43f the Premises will be su bject to all
advance the Expiration Date. Unless otherwise provided in this Lease, Tenant shall pay
Premises will not
Base Rent and all other charges specified in this Lease for the period cf occupancy.
Over. Tenant shall vacate the. Premises immediately upon the expiration of the Term or
2.84 Holding
0f this Lease. Tenant shall reimburse Landlord farand indemnify Landlord against all
earlier termination
Tenant vacating the Premises. If Tenant
damages incurred by Landlord as a result{1fany delay by in
Premises upon the expiration of the Term Dr earlier termination of this Lease,
does net vacate the
Tenant's occupancy of the Premises will be a day-to-day tenancy, subjent to allof the terms of this Lease.
Rent during the holdnver period be increased to an amount that isgne-and—one-
except that the Base will
half (11/2) times the Base Rent in effect on the expiration or termination nf this
Lease, computed on a daily
of the holdcwer period. plus all additional sums due under this Lease. This Section will
basis far each day
not be construed as Landlard's consent far Tenant to hnld aver or to extend this Lease.
ARTICLE TH REE
RENT AND SECURITY DEPOSIT
Rent Landlord at the address set forth in Section
3.01 Manner of Payment. Tenant shall pay the to
unless another person is designated Section 1.10, or to any other party ar address Landlord may
1Q; in
a notice delivered
designate in any written noiice delivered tn Tenant. Landlord may designate! in written
to Tenant, the party authoriZed t9 receive Rent and act an behalf nf Landlord tn enforce this Lease. Any
revnked by Landlord in a subsequent written nutice
such authorization will remain in effect untilit i5
delivered to Tenant. Any payments made to a third party designated by Landlord will be deemed made to
designated party. All sums payable by Tenant under thisLease,
Landlnrd when received by the third
denaminated as Rent, willconstitute rent for the purposes of Section 502mm! of
whether 0r not expressly
the Bankruptcy Code and for all other purposes.
LANDLORD'S INITIALS 54/ TENANT'S INITIALS U2
AGREEMENT — Page. 4
3.02 Time of Payment. Upon execution 0f this Lease, Tenant shall pay the installment of Base Rent
for the firstmunth of the Term fur which Base Rent is clue. On ar before the first day of the second
month of the Term far which Base Rent is due, and on or befnre the first day of each manth thereafter,
the installment of Base Rent and other sums due under this Lease will he due and payable, in advance,
or demand. Tenant shall cause payments to be properly mailed or
without off-set, deductinn prior
otherwise delivered so as tn be actually received {and not merely deposited in the mail) by Landlord (or
the party identified in Section 1.10, or any other third party designated by Landlord) on or before the due
Preview
FILED 5/26/2020 7:49PM FELICIA PITRE DISTRICT CLERK DALLAS 00., TEXAS CO., Belinda Hernandez DEPUTY DC-20-07303 DC-20-O7303 CAUSE NO. _________________ VICTOR PROPERTIES, LLC, § IN THE DISTRICT COURT § § Plaintiff, § § v § M-298TH ________ JUDICIAL DISTRICT § § CHRIS GRINILLO, § § Defendant. § DALLAS COUNTY, TEXAS PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION AGAINST DEFENDANT, JURY DEMAND, AND REQUESTS FOR DISCLOSURE Plaintiff Victor Properties, LLC., herein referred t0 as “Plaintiff” or “VPLLC,” files files this complaint seeking recovery against Defendant Chris Grinillo and for cause respectfully shows the Court as follows: I. NATURE OF THIS ACTION 1. Plaintiff VPLLC files this complaint against Defendant Chris Grinillo (“Defendant” or “Grinillo”) seeking to t0 recover approximately damages due to the contractual breaches and tortious conduct against VPLLC arising from a commercial lease agreement. II. DISCOVERY LEVEL 2. Discovery is intended to t0 be conducted under Level 3 pursuant to rule 190 of 0f the TEXAS RULES OF CIVIL PROCEDURE. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 1 III. THE PARTIES 3. Plaintiff Victor Properties, LLC (“VPLLC”) is a domestic limited liability company with itsprincipal place 0f business located in Dallas County, Texas. 4. Defendant Chris Grinillo may be served With process by delivering the citation and petition to him at his residence located at 502 N. Madison Avenue, Dallas, Texas 75208 0r wherever he may be found. IV. IURISDICTION AND VENUE 5. This Court has subject matter jurisdiction in this action as the claims asserted arise from the statutory and common laws of the state of Texas. 6. This Court maintains personal jurisdiction over the parties as both Plaintiff and Defendant are either citizens of the state of Texas 0r maintain systematic and continuous contacts with the state of Texas such that they are amenable to the general jurisdiction of this state. 7. In addition, this Court maintains specific jurisdiction over Defendant as the Claims asserted herein arise from itssignificant contacts and conduct that gives rise t0 the specific claims and causes 0f action asserted in this lawsuit. 8. Venue isproper in this judicial district as the leased premises at issue islocated in Dallas County, Texas. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 2 V. FACTUAL BACKGROUND 9. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 10. VPLLC and Defendant Grinillo entered a twenty’four (24) month commercial lease agreement whereby Grinillo agreed to lease 900 square feet of commercial rental space identified as 238 W. Davis Street, Dallas, Texas 75208 (“leased premises”). 11. A true and correct copy 0f the lease agreement is attached t0 this complaint and identified as Exhibit A. 12. Beginning on January 1,2017, VPLLC and Grinillo agreed the base monthly rental payments owed t0 VPLLC 0n the firstday of each of the firsttwelve months of the commercial lease agreement would be $2,000.00. 13. The base monthly rental payments owed t0 VPLLC on the first day of each of months thirteen through twenty’four 0f the commercial lease agreement would be $2,100.00. 14. In addition, Grinillo agreed that, under the terms 0f the lease agreement, Defendants shall remain responsible for their prorated share of real estate taxes, insurance, and common area expenses. 15. Under this provision, Grinillo agreed t0 pay VPLLC an amount equal t0 fifteen percent 0f an assessment on the current property. 16. Grinillo breached the commercial lease agreement by failing t0 comply with the provisions 0f payment and have failed t0 comply ever since. 17. Grinillo terminated their rights to occupy the leased premises without terminating the Lease and acceleration 0f all rents due during the remainder 0f the lease. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 3 18. The Lease stipulates that in the event Tenant is in default, Landlord may, terminate Tenant’s right to occupy the leased premises without terminating the Lease and may accelerate all rents which are payable during the remainder of the Lease or any renewal period. 19. Further, the Lease stipulates that if Tenant is in default, Tenant will be liable for (1) any lost rent; (2) Landlord’s cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees necessary to relet the premises; (3) repairs to the leased premises for use beyond normal wear and tear; (4) all Landlord’s costs associated with eviction of Tenant, such as attorney’s fees, court costs, and prejudgment interest; (5) all Landlord’s costs associated with collection of rent such as collection fees, late charges, and returned check charges; (6) cost of removing any of Tenant’s equipment or fixtures left on the leases premises or Property; (7) cost to remove any trash, debris, personal property, hazardous materials, or environmental contaminants left by Tenant or Tenant’s employees, patrons, guests, or invitees in the leased premises or Property; (8) cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property; and (9) any other recovery to which the Landlord may be entitled under the Lease or under law. 20. As a result of Grinillo’s repudiation of the commercial lease agreement and failure to cure such default, Defendants’ are liable for all rents, fees and other indebtedness accrued and all future rents, fees and obligations under the Lease. 21. Under the Lease, Grinillo was required to pay monthly Rent on or before the first day of each month during the Lease term. 22. In breach of the Lease, Grinillo failed to pay rental amounts due through the duration end of the commercial lease agreement. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 4 23. Grinillo’s repeated failure to pay monthly rents each constitute a default under the Lease. 24. Grinillo continues to refuse to pay rental obligations demanded by VCPLLC. 25. Further, Grinillo abandoned the premises, which constitutes a breach of the Lease. Grinillo remain in Default under the Lease. 26. As such, under the Lease, Grinillo remains liable for (1) any lost rent; (2) VPLLC’s cost of reletting the leased premises, including brokerage fees, advertising fees, and other fees necessary to relet the premises; (3) repairs to the leased premises for use beyond normal wear and tear; (4) all VPLLC’s costs associated with eviction of Tenant, such as attorney’s fees, court costs, and prejudgment interest; (5) all VPLLC’s costs associated with collection of rent such as collection fees, late charges, and returned check charges; (6) cost of removing any of Tenant’s equipment or fixtures left on the leases premises or Property; (7) cost to remove any trash, debris, personal property, hazardous materials, or environmental contaminants left by Tenant or Tenant’s employees, patrons, guests, or invitees in the leased premises or Property; (8) cost to replace any unreturned keys or access devices to the leased premises, parking areas, or Property; and (9) any other recovery to which the VPLLC may be entitled under the Lease or under law. 27. In addition, Grinillo intended to breach the lease agreement and knew their breach would adversely inhibit VPLLC’s ability to enter into lease agreements with other prospective tenants who would have paid the full amounts owed under the lease and would have performed all obligations required under the lease agreement. The opportunity cost to VPLLC is significant. 28. The claim is liquidated and founded on a written lease agreement. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 5 V1. CAUSES OF ACTION AGAINST DEFENDANTS COUNT ONE: BREACH 0F CONTRACT 29. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 30. Plaintiff would show that Plaintiff entered into a Commercial Lease Agreement with Defendant Grinillo as indicated above and pursuant to the terms and provisions of said Commercial Lease Agreement attached hereto as Exhibit “1” and made part hereof for allpurpose. 31. Plaintiff has timely performed all conditions required to be performed on itspart under the Commercial Lease Agreement and all conditions preceding itsrights and other occurred costs. 32. In accordance with the terms and provisions 0f the Commercial Lease Agreement and the laws of the State 0f Texas, Plaintiff is entitled to receive from Grinillo allunpaid rent that has accrued under the Lease from the last due payment until the expiration 0f the term 0f the Lease or until Plaintiff, through diligent effort, is able to relet the Property and/or t0 reduce the obligation of Defendant for payment 0f itsCommercial Lease Agreement. 33. The rent now owing t0 Plaintiff from Grinillo remains past due and unpaid. 34. The failure 0f Grinillo t0 abide by and honor its agreements and duties and its continuing failure to do so constitute a breach of the Commercial Lease Agreement between the parties and for which breach Plaintiff has been damaged in an amount in excess 0f the minimum jurisdictional limits 0f the Court. 35. In accordance with the terms and provisions 0f the Commercial Lease Agreement, Grinillo failed to perform their obligations and therefore defaulted in making the payments. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 6 36. Plaintiff has given Defendants credit for all just and lawful offsets, credits and payments in determining the monies owed to Plaintiff. 37. Plaintiff has made reasonable and just demand upon Grinillo in accordance with the terms and provisions of the Commercial Lease Agreement and the laws of the State of Texas. 38. Notwithstanding such reasonable and just demands, Grinillo failed, and continue to fail to pay Plaintiff the monies owed to Plaintiff. 39. VPLLC fully performed all obligations required under the lease agreement or was excused from performing such obligations as a result of Grinillo ‘s breach of the lease agreement. 40. All conditions precedent to VPLLC’s claim for relief have been performed or have occurred. COUNT TWO: MONEY HAD & RECEIVED 41. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 42. The Defendant holds money that, in equity and good conscience, belongs to Plaintiff. 43. Plaintiff seeks damages in the amount of at least $20,000 which is within the jurisdictional limits of this Court. TEX. R. CIV. P. 47(b). COUNT THREE: QUANTUM MERUIT 44. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein 45. Grinillo accepted valuable property rights to the exclusion of all others directly from Plaintiff VPLLC without providing fair compensation to Plaintiff in exchange. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 7 46. As a direct and proximate result of this tortious conduct by the Grinillo against VPLLC, VPLLC has incurred damages in lost rental income and revenue. 47. VPLLC is entitled to recover damages from Grinillo for actual damages, pre- judgment interest, court costs, and other remedies within the jurisdictional limits of this Court. suffered as a result of Defendants’ actions. COUNT FOUR: PROMISSORY ESTOPPEL 48. VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 49. Grinillo made a promise to Plaintiff VPLLC that Grinillo did not keep, specifically the promise to pay VPLLC monthly base rent on the first day of each month of the thirty six month lease agreement, in addition to the additional payments required under the Lease Agreement. See Exhibit 1. 50. As a direct and proximate result of this tortious conduct by the Defendant against VPLLC, VPLLC has incurred damages in lost rental income and revenue. 51. VPLLC is entitled to recover damages from Defendants for actual damages, pre- judgment interest, court costs, and other remedies within the jurisdictional limits of this Court. COUNT FIVE: TORTIOUS INTERFERENCE WITH PROSPECTIVE RELATIONS 52. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 53. Defendant Grinillo’s failure to return the Premises to the condition in which it was received prevented VPLLC from giving possession of the Premises to others in a reasonable time after Defendant vacated the Premises. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 8 54. Instead, VPLLC has been forced to expend significant time and money to repair the substantial damage caused by Defendants’ wrongful acts, and to restore the Premises to a condition appropriate for the operation of a commercial enterprise. 55. This has prevented other prospective tenants from taking possession of the Premises as initially contemplated by the parties, thereby preventing them from opening for business. 56. In fact, VPLLC was prevented from executing a contract with others for substantial periods of time after Defendant vacated the leased premises. 57. As a direct and proximate result of this tortious conduct by the Defendant against VPLLC, VPLLC has incurred damages in lost rental income. 58. VPLLC is entitled to recover damages from Defendants for the lost rental income suffered as a result of Defendants’ actions. COUNT SIX: ATTORNEY FEES 59. Plaintiff VPLLC incorporates all assertions contained in the paragraphs above as if fully set forth verbatim herein. 60. Plaintiff would show unto the Court that it was necessary to secure the services of the undersigned licensed attorney to represent Plaintiff in connection with this matter. 61. Plaintiff would show that despite previous demand, Grinillo failed to honor their commitments, meet their obligations and duties, pay monies due and owing by them, to pay damages incurred by Plaintiff and such actions and non-actions have necessitated the filing of this suit. 62. Accordingly, Plaintiff is entitled to receive reasonable attorney’s fees pursuant to the TEXAS CIVIL PRACTICE AND REMEDIES CODE, Sections 38.001, et seq, 31.004, 31.005 and 105.001, et seq and the terms and provisions of the Commercial Lease Agreement. PLAINTIFF VICTOR PROPERTIES, LLC’S ORIGINAL PETITION PAGE 9 63. Plaintiff VPLLC isentitled t0 recover reasonable attorney’s fees necessary for the prosecution of this action and for any and allnecessary appeals for which sum Plaintiff herein now sues. VII. REQUESTS FOR DISCLOSURE 64. Pursuant to TEX. R. CIV. P. 194, Defendant isrequested to serve responses t0 the instant requests for disclosure. VIII. URY DEMAND 65. Plaintiff VPLLC requests a trial by jury. IX. PRAYER FOR RELIEF 66. WHEREFORE, PREMISES CONSIDERED, PlaintiffVictor Properties, LLC prays that the Defendant Chris Grinillo be cited t0 appear and answer and that the Court enter final judgment for the amounts sought, together with prejudgment and post—judgment interest, costs of court, attorney’s fees, and such other further relief to which Plaintiff Victor Properties, LLC may be justly entitled. Respectfully submitted, By: s Benton Williams II BENTON WILLIAMS II Texas Bar No. 24070854 BW@bentonwilliamspllc.com 100 Crescent Court Suite 700 Dallas, Texas 75201 Te1.: (214) 7856205 Facsimile: (214) 785—6485 Attorney for Plaintiff Victor Properties, LLC PLAINTIFF VICTOR PROPERTIES, LLC’s ORIGINAL PETITION PAGE 10 EXHIBIT 1 NORTH TEXAS COMMERCIAL ASSOCIATION 0F REALT0R5® COMMERCIAL LEASE AGREEMENT TABLE OF CONTENTS Article Page Defined Terms 1 Lamas and Term 4 Rant and Security Deposit 4 Taxes 6 Insurance and Indemnity 5 wWflmmewfi Use of Premises 7" Property Condition, Maintenance, Repairs and Alterations 9 Damage car Destruction 11 Condemnation 12 Assignment and Subletting 12 Defautt and Remedies 12 Landlnrd‘s Contractual Lien 15 PWPSfi’D-‘T‘P Protectimn 0f Lenders A—A—LA—LAA 18 Environmental Representations and Indemnity 1? Professional Service Fees 1B Miscellaneous and Additional Provisions 20 [Throughout this Lease, complete afl blanks and check ail boxes that appfy. 313mm no! completed and boxes not checked da not apply.) For good and valuable cnnsideratinn, the parties to thisCommercial Lease Agreement {the "Leasa") agree as follows: ARTICLE ONE DEFINED TERMS A5 used in thisLease. the terms set forth One haVB the following meanings: in this Article 1.01 EffactiVB Date: The lastdate beneath the signatures of Landlord and Tenant on thisLease. 1.02 Landlord: LLC Victor Properties AddreSs: PD. Box 2223232 Dallas TX. ?5222 Telephone: 469-?5?—?1 BS Fax: E ma d wictu r@sbcg Ioba .net il: | LANDLORD‘SINITIALS M, 5 TENAMBINITIALS 6/2 COMMERCIAL LEASE AGREEMENT — Page 1 ©NTCAR 2mg _ Farm Na. 2 (9:93) 1.03 Tenant: Chris Granillu AddressfiDZ N Madison Ave. Dallas TX. ?5208 Fax: Telephone: Email: 1.94 Premises [include Suite or Unit No., ifapplicable]: A. Building Name: The Ambers B. Street address: 238 W Davis st.Dallas TX. ?5208 Dana‘s i1“! County, Texas, the Premises are situated is described as: C. Legal description: The property on which mare described {3n the attached Exhibit “A", SURVEY ANDIOR LEGAL and may b3 particulariy on Exhibit “A", The term “Property" includes the land describsd DESCRIPTION (the “Property”). es]. and any improvements on the land [including the Premis 900 square feet, or D. Floor Plan or Site Plan: Being a floor area of approximately square feet or approx imatel y a land area of approximately “B”, FLOOR farm on the attached Exhibit acres, and being more particularly Shawn in outline PLAN ANDJDR SITE PLAN. Rata Share: 15 % [See Addendum “A", EXPENSE REIMBURSEMENT, if E. Tenant‘s Pro applicable]. January? 2017 Term: 2 years and months beginning on , 1.05 2018 {the ending DBCmeBI'C’a‘l {the “Commencement Date") and , references in this Lease to the “Term" "Expiration Date“). Unless the context requires otherwise. of this Lease. [See Addendum “B”, RENEWAL OPTIONS, if include any renewal or extensian applicable]. ments of $ 2000-90 1.05 Base Rent: Base Rent for the Term is dLIe and payable in monthly install Tenant to Landiord under per month in advance. Base Rent and all other sums dag Br payable by “Rent.“ monthly installments nf as the [If the this Lease are collectively referred to in this Lease see Addendum “C“, Term of the Lease, then Base Rent are not the same amount fur the entire BASE RENT PAYMENT SCHEDULE, attached] if ‘93. [See Addendum “D”, PERCENTAGE 1.0"? Percentage Rental Rate: RENTAL AND GROSS SALES REPORTS, ifapplicable] {due upon execution of this Lease). [See Section 3.84l 1.88 Security Deposit: $ 1.119 Permitted Use: BarbBFSthD [See Section 6.fl1| LANDLORD'S INITIALS 5211 TENANT'S INITIALS L 2.. COMMERCIAL LEASE AGREEMENT — Page 2 @NTCAR 2098 - Farm ND. 2(BIBS) whom Tenant is to deliver payments under this Lease is the Landlord, unless one 9f 1.1{1 Party ta the following boxes is checked, in which case Tenant shall deliver payments to: D Principal name and other than Landlord or Principal Broker]: Broker, ar D Other [Set forth address, if isacting as the agent 1.11 Principal Broker: ' . far Landlord exclusively, unless one of the folio es is checked, inwhich case Principal Broker isacting as: D the agent forTe usively, Dru an intermediary. Principal Broker‘ ass: - Whom: Email: Fax: 1.12 Cooperating Broker: unless one of the following boxes isc In Wagent which case Cooperating far Tenant excheiualy, ' , Broker is acting as: Dtha agent for Landlsr , or an intermediary. Cooperating B dress: flphone: Email: Fax: 1.13 The Professional Service Fee (the “Fee“): 15.01 and Section 15.02 es will be “/uto A. The percentages applicable in Section Bmker and ”A3to Cooperating Br the Fee isbased on an amount per Principal . per a fout to Principal Broker and $ per square foot, that amuunt is $ Broker. ea be paid 1n the manner described in Subsection square foot ta Cooperating will 15.0118 (half on executiun a on the Commencement Date), unless this box U is checked. in which case the Fee e paid in the manner described in Subsection 15.01 B (monthly). B. Th centages applicable in Section 15.03 in the event 0f a sale willhe % to Principal raw“ roker and ”A t0Cooperating Broker. or addendum attached to this Lease {as indicated by the 1.14 Exhibits and Addenda. Any exhibit incorporated as a part of this Lease. Any term not specifically defined in boxes checked below) is “m it in the body nf this Lsass. If any provisions an Addendum win have the same meaning given lo the body 0f this Lease conflict with the pramsions cf any Addendum. the Addendum will control. Exhibit “A“ Survey andier Legal Descripfinn of the Property B Exhibit “B“ Floor Plan andfor Site Plan I. Exhibit "C“ Other Addendum "A“ Expense Reimbursement §- Addendum “B" Renewal Options Addendum “C" Base Rent Payment Schedule Addendum "D" Percentage Rental and Gross Sales Reports Addendum “E" Right of First Refusal for Additinnal Space fi Addendum "F“ Addendum “G" Guaranty Construction sf Improvements D Addendum "H" Rules and Regulations Addendum "l" Information About Brakerage Services Addendum “J" Additional Provisions Addendum Addendum "K" Other LANDLORD'SINITIALS IZ/L” TENANT'SINITIALS (Q; 2 ,_,..-- COMMERCIAL LEASE AGREEMENT — Page 3 @NTCAR 2DB8 — Fnrm NB. 2(9308‘) ARTICLE TWO LEASE AND TERM 2.01 Lease of Premises for Term. Landlord leases the Premises to Tenant and Tenant 139535 the Premises from Landlord for the Term stated in Section 1.05. The Commencement Data isthe date specified in Section 1.95, unless advanced or delayed under any provision of this Lease. 2.02 Delays in Commencement. Landlord will not be liableto Tenant ifLandlord does mat deliver passassinn of the Premises to Tenant 0n tha Commencement Date specified in Sention 1.05 above. Landlord‘s non-delivery of possessian of the Premises to Tenant on the Commencement Date will not affect this Lease or the obigations of Tenant under this Lease. However, the Commencement Date will be possession of the Premises i5delivered to Tenant. The Term willbe extended fora deiayed until perind equal to the delay in delivery of possession of the Premises to Tenant, plus the number of days month. If Landlord dues nut deliver pussession Bf nesessary for the Term to expire on the last day of a the Premises to Tenant within sixty {60) days after the Cnmmencement Date specified inSection 1.05, Tenant may cancel this Lease by giving a written nntica ta Landlord at any time after the 50-day period delivers possession ofthe Premises toTenant. If Tenant gives such ends, but before Landlnrd actually this Lease willbe canceled effective as of the date cf its execution, and no party will have any notice, rights or obligations under thisLease. IfTenant does nut give such nntice within the time specified, Tenant will have no right to cancel this Lease, and the Term willcommence upon the delivery of possession n1“the Premises to Tenant. If deiivery0f possession of the PremiSBS tn Tenant is delayed, Tenant upon such execute an amendment to this Lease setting forth the Landlord and shall, delivery, revised Commencement Date and Expiration Date of the Term. ff Tenant occupies the Premises before the Commencement Date, Tenant‘s 2.03 Eariy Occupancy. of the provisions of this Lease. Early occupancy of the accupancy 43f the Premises will be su bject to all advance the Expiration Date. Unless otherwise provided in this Lease, Tenant shall pay Premises will not Base Rent and all other charges specified in this Lease for the period cf occupancy. Over. Tenant shall vacate the. Premises immediately upon the expiration of the Term or 2.84 Holding 0f this Lease. Tenant shall reimburse Landlord farand indemnify Landlord against all earlier termination Tenant vacating the Premises. If Tenant damages incurred by Landlord as a result{1fany delay by in Premises upon the expiration of the Term Dr earlier termination of this Lease, does net vacate the Tenant's occupancy of the Premises will be a day-to-day tenancy, subjent to allof the terms of this Lease. Rent during the holdnver period be increased to an amount that isgne-and—one- except that the Base will half (11/2) times the Base Rent in effect on the expiration or termination nf this Lease, computed on a daily of the holdcwer period. plus all additional sums due under this Lease. This Section will basis far each day not be construed as Landlard's consent far Tenant to hnld aver or to extend this Lease. ARTICLE TH REE RENT AND SECURITY DEPOSIT Rent Landlord at the address set forth in Section 3.01 Manner of Payment. Tenant shall pay the to unless another person is designated Section 1.10, or to any other party ar address Landlord may 1Q; in a notice delivered designate in any written noiice delivered tn Tenant. Landlord may designate! in written to Tenant, the party authoriZed t9 receive Rent and act an behalf nf Landlord tn enforce this Lease. Any revnked by Landlord in a subsequent written nutice such authorization will remain in effect untilit i5 delivered to Tenant. Any payments made to a third party designated by Landlord will be deemed made to designated party. All sums payable by Tenant under thisLease, Landlnrd when received by the third denaminated as Rent, willconstitute rent for the purposes of Section 502mm! of whether 0r not expressly the Bankruptcy Code and for all other purposes. LANDLORD'S INITIALS 54/ TENANT'S INITIALS U2 AGREEMENT — Page. 4 3.02 Time of Payment. Upon execution 0f this Lease, Tenant shall pay the installment of Base Rent for the firstmunth of the Term fur which Base Rent is clue. On ar before the first day of the second month of the Term far which Base Rent is due, and on or befnre the first day of each manth thereafter, the installment of Base Rent and other sums due under this Lease will he due and payable, in advance, or demand. Tenant shall cause payments to be properly mailed or without off-set, deductinn prior otherwise delivered so as tn be actually received {and not merely deposited in the mail) by Landlord (or the party identified in Section 1.10, or any other third party designated by Landlord) on or before the due