STATE OF SOUTH CAROLINA)
) LEASE AGREEMENT
COUNTY OF XXXXXXXX )
THIS LEASE, made and entered into this first day of August 1998, by and
between COMMERCE CENTER ASSOCIATES, INC., a South Carolina corporation,
hereinafter called "Owner", and HAMPSHIRE DESIGNERS, INC., a corporation
organized and existing under the laws of the State of Delaware, hereinafter
called "Tenant".
WITNESSETH
1.Owner is the owner of a tract of land consisting of approximately 5.5
acres and improvements thereon located on New Court Road, Commerce Center
Subdivision, Xxxxxxxx County, South Carolina.
2.Owner hereby leases to Tenant, and Tenant hereby leases and takes, upon
the terms, conditions and covenants hereinafter set forth approximately 57,000
square feet of space in the building on said lot, being the total square
footage.
3.Owner further grants to Tenant all space on the exterior of the building,
including all parking spaces for automobiles at the front and rear of the
building and together with rights of use for all driveways furnishing access to
the building and to the parking spaces.
0.Xx have and to hold the leased premises unto Tenant for a term of five
years and nine months commencing on the first day of August, 1994 and ending on
the thirtieth day of April 2004, unless sooner terminated as hereinafter
provided.
5.Improvements to the premises, above the basic building described in the
plans and specifications, above referenced, will be designed and completed by
Owner, in accordance with the specifications of Tenant, and subject to his
approval. Owner will submit to Tenant an itemization of the desired
improvements, including the price of said improvements, for Tenant's approval
and acceptance. The cost of improvements will be the expense of Tenant.
6.Tenant hereby covenants and agrees to pay Owner on the first day of each
month, in advance, at its principal offices, or at such other place as Owner may
from time to time designate, as rent for the premises during the continuance of
this Lease, as shown on the following schedule:
Amount Amount
Term Monthly Annually
08/01/98 - 04/30/99 $11,832 $141,984
05/01/99 - 04/30/00 12,305 147,660
05/01/00 - 04/30/01 12,797 153,564
05/01/01 - 04/30/02 13,300 159,600
05/01/02 - 04/30/03 13,775 165,300
05/01/03 - 04/30/04 14,250 171,000
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7.Real estate taxes and increases thereof, are the total responsibility of
the Tenant.
8.Tenant shall carry fire and casualty insurance on the structure in an
amount not less the $1,500,000.
9.Owner shall have no further responsibility for repairs or maintenance of
the leased premises, including , but not limited to the mechanical system for
heating, ventilating, and air conditioning, plumbing and electrical equipment,
other than items in warranty. Tenant agrees that it will at its own expense keep
and maintain the building including plumbing, heating and air conditioning
equipment in good working order and repair during the term of the Lease.
00.Xx is understood and agreed that the Tenant shall not make or suffer to
be made any alterations or additions to said building unless it first obtained
the written consent of the Owner.
11.Tenant shall have the right to place signs or other advertising devices
on the building or premises provided that such signs complies in all respects
with laws and municipal ordinances relating thereto, and upon approval of Owner,
which approval shall not be unreasonably withheld. Upon termination of this
Lease or any extension thereof, the Tenant agrees to remove such signs, and
other devices and to repair any and all damage the signs, their installation or
removal may have caused.
12.Tenant, at its sole expense, shall comply with all laws, orders and
regulations of federal, state and municipal authorities, and with any directions
of any public officer, pursuant to law, which shall impose any duty upon the
Owner or the Tenant with respect to the leased premises. Tenant, at its sole
expense, shall obtain all licenses or permits which may be required for the
conduct of its business within the terms of this Lease, or for the making of
repairs, alterations, improvements or additions, and the Owner, when necessary,
will join the Tenant in applying for such permits or licenses.
13.Tenant, at its sole cost and expense, will maintain public liability and
property damage insurance applicable to the leased premises in a minimum amount
of $1,000,000. It shall be Tenant's sole responsibility to provide whatever
adequate insurance coverage is deemed proper for any goods, equipment,
furnishings, and fixtures installed for Tenant, or occupying the demised
premises.
14.The Tenant shall pay all charges for gas, electricity, light, heat,
power and telephone, or other communication service used, rendered, or supplied
upon or in connection with the leased premises and shall indemnify the Owner
against any liability or damages on such account.
15.The Tenant shall, on the last day of the term or upon the sooner
termination, peaceably and quietly surrender the leased premises to the Owner in
as good condition and repair as at the commencement of the term and as any new
buildings, structures, replacements, or additions or improvements constructed,
erected, added or placed thereon or when completed with the natural wear and
tear thereof excepted.
16.All signs, moveable equipment, and trade fixtures which shall be placed
or installed in or on the leased premises shall remain the property of the
Tenant which shall have the right to remove
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same in five (5) days after the termination of this Lease, provided Tenant shall
not be in default hereunder and provided further, that Tenant shall repair or
reimburse the Owner for the cost of repair of any and all damage resulting to
the leased premises from the removal of such equipment. All other fixtures and
equipment which are become and remain the property of the Owner.
17.If any rent payable by Tenant shall remain unpaid for more than ten (10)
days after the same becomes due and payable, or if the Tenant shall violate or
default in any of the covenants or agreements herein set forth, and said default
continues for a period of twenty (20) days after written notice thereof, Owner
may at its option, declare the Lease terminated and take immediate possession of
the premises, or it may institute suit to enforce the lease agreement, and in
the latter event, Tenant shall be liable for all costs incident of such action,
including reasonable attorney's fees. If the Lease is terminated as aforesaid,
Owner shall release property if a new Lease is obtainable and the Tenant shall
continue liable for such loss as Owner may sustain during the remaining life of
said Lease, either by way of loss or rents or expenses, including, but not
limited to redecorating and commissions incident to any releasing.
18.The Tenant, upon the payment of the rents herein reserved and upon the
performance of all terms of this Lease, shall at all times during the Lease term
peaceably and quietly enjoy the leased premises without any disturbance from
Owner and from any other person claiming through Owner.
19.This Lease Agreement shall be construed under the laws of the State of
South Carolina.
00.Xx waiver of any condition or legal right or remedy shall be implied by
the failure of Owner to declare a forfeiture, or for any other reason, and no
waiver of any condition or covenant shall be valid unless it be in writing
signed by Owner.
21.The covenants and agreements herein contained shall be binding upon and
inure to the benefits of the parties hereto and their respective heirs,
successors, and assigns.
22.This Lease and the exhibits attached hereto and forming a part hereto,
set forth all of the covenants, promises, agreements, conditions, and
understandings between Owner and Tenant concerning the demised premises, and
there are no covenants, promises, agreements, conditions, or understandings
either oral or written, express or implied, between them other than are herein
set forth. Except as herein otherwise provided, no subsequent alteration,
amendment, change or addition to the Lease shall be binding upon Tenant and
Owner unless reduced to writing and signed by both parties. The Tenant agrees
that the Owner and its agents have made to representations or promises with
respect to the premises or the building or property of which the same are a part
except as herein expressly set forth.
23.If any provision of this Agreement be determined to be invalid by any
court of competent jurisdiction, the remaining portions of this Agreement shall
nevertheless remain in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
COMMERCE CENTER ASSOCIATES, INC.
/s/ Xxxxxxx Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxx
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Witness Its: President
HAMPSHIRE DESIGNERS, INC.
/s/ Xxxxx X. Xxxx By: /s/ Xxxxxx X. Xxxxxxx, Xx.
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Witness Tenant
