EXHIBIT 10.5
LEASE
STATE OF VIRGINIA
COUNTY OF XXXXXXXX
TOWN OF ALTAVISTA
THIS LEASE, made this 20th day of March, 1996, between E. R. ENGLISH, SR.
(Lessor), and BGF INDUSTRIES, INC. (Lessee);
WITNESSETH:
That for and in consideration of the agreements and covenants hereinafter
mentioned, the Lessor does hereby demise and lease unto the Lessee a certain
building lying and being in Xxxxxxxx County, Virginia and more particularly
described as follows:
A steel building of approximately 101,000 square feet located at 0000 Xxxx
Xxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000.
TO HAVE AND TO HOLD the same with all privileges and appurtenances
thereunto belonging unto the Lessee, for the term hereinafter specified upon the
following terms and conditions:
1. The term of this lease shall begin on March 20, 1996 and shall continue
for three (3) years terminating on the 19th day of March, 1999.
Following the expiration of this three (3) year lease term, Lessee shall
have the option to renew this lease for an additional three (3) years (either
one (1) three (3) year term or three (3) one (1) year terms) at rates to be
negotiated.
Except for the rental, the renewals shall be upon the same terms and
conditions as are set forth herein. The Lessee is to notify the Lessor in
writing twelve (12) months prior to the renewal date if the lease is to be
extended or terminated.
2. The Lessor reserves and the Lessee agrees to pay for and during the
term of this lease as follows:
1st year $12,500.00/month
2nd year $13,300.00/month
3rd year $14,200.00/month
3. The Lessor at his own cost and expense shall maintain the building on
the premises herein leased in proper condition and repair, but the Lessee shall
at its own cost and expense attend to any minor and incidental internal repairs
which are usually and customarily paid for by the Lessee. The Lessee will be
responsible for repairs to the building resulting from damage by Lessee's
employees or equipment except for that which occurs through normal wear and
tear.
4. During the term of this lease the Lessor shall pay all property taxes
and assessments imposed on the demised premises by any lawful authority. The
Lessee shall pay for all electric current, lights, gas and water used by Lessee
while in possession of said premises.
5. It is understood and agreed that the responsibility and cost of
insuring the building and the premises hereby demised against fire or other
casualty shall be borne by the Lessor. In case of damages to the premises
occasioned during this term by fire or other unavoidable casualty, and such
damage does not render the same unfit for use, the Lessor shall promptly repair
the same. In case said premises, during said term, shall be destroyed or
damaged by fire or other unavoidable casualty so that the same shall be unfit
for use or substantially destroyed, then said rent or a proportionate part
thereof shall be abated until said premise shall have been put in proper repair
by the Lessor, or this lease shall, upon the happening of such event, be
terminated at the election of either of the parties hereto. This clause shall
cover with like provisions the condemnation and/or destruction of the property
ordered by the properly constituted authorities of the State, County, City or
National government.
Lessor is not responsible for water damages to Lessee's goods resulting
from sprinkler leaking or malfunction.
6. The Lessor warrants and agrees that the Lessee shall enjoy said
premises during the said term free from the adverse claim of any person. The
Lessee agrees to make no unlawful or offensive use of the premises and to
deliver up the same at the end of the term hereby demised or upon the earlier
termination of this lease, as herein provided, in substantially as good order
and condition as same are now in, ordinary wear and tear, fire, and other
unavoidable casualties expected, and subject to the responsibility herein fixed
for the making of repairs.
7. The Lessee shall have the right to assign the lease or sublet the
premises herein demised, but such assignment or subletting shall in no way
relieve the Lessee from the obligation to pay the rental herein provided and to
do and perform all other things agreed to be done by Lessee unless the Lessor
herein shall in writing release the Lessee from such obligations.
8. Lessee shall have the right to make alterations to the demised premises
as are necessitated by its business needs, provided, however, that the Lessor
shall have the
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right to require the Lessee to restore the premises to their original
conditions, less reasonable wear and tear, upon the termination of this lease.
9. The Lessee shall have the right, upon the termination of the lease term
or any renewal thereof, to remove all trade fixtures, machinery and equipment
and installations which the Lessee may have upon the demised premises, except
that the Lessee shall repair any damage to the demised premises which may be
caused by such removal.
10. All communications to the Lessor may be addressed to
E. R. English, Jr., P.O.A.
0000 Xxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
11. All communications to the Lessee may be addressed to:
BGF Industries, Inc.
000 Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx Xxxx
IN WITNESS WHEREOF, the parties have caused this lease to be executed in
their corporate names by their corporate. officers thereunto duly authorized
this the day and year first above written.
By: /s/ E.R. English Sr. P.O.A.
by E.R. English Sr. P.O.A.
--------------------------
ATTEST:
/s/ Xxxxx X. Peak 3/20/96
-----------------
BGF INDUSTRIES, INC.
BY: /s/ Xxxxxx Xxxxxx
-----------------
ATTEST:
/s/ Xxxxxxx Xxxx
----------------
cc: X. Xxxx 3/25/96
X. Xxxxxxxx 5/7/96
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BGF INDUSTRIES, INC.
February 24, 1998
Mr. E. R. English, Jr.
0000 Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
Dear Xxxxx:
Under the terms of the lease on the English Warehouse, located at 0000 Xxxx Xxxx
Xxxxxx, we are notifying you in writing twelve (12) months prior to the renewal
date of March 20, 1999, of our intentions to extend the lease.
Best regards,
/s/ Xxxxxxx Xxxx
Xxxxxxx Xxxx
Administrative Manager
ss
cc: Xxxxxx Xxxxxx-BGF
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000 Xxxxxxx Xxxxxx Xxxxxxxxx, XX 00000-0000 (000) 000-0000 Fax (804) 369-
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