1
Hickory, NC Exhibit 10.24
NORTH CAROLINA
LEASE AGREEMENT
CATAWBA COUNTY
This agreement made this 5th day of July, 1995, between Hickory
Furniture Mart, Inc., a North Carolina corporation with its place of business
located at 0000 Xxxxxxx 00 XX (Xxx 0000), Xxxxxxx, XX 00000 hereinafter referred
to as Lessor, and Quaker Fabric Corporation of Fall River, a Corporation duly
organized and existing under the laws of the State of Massachusetts with its
principal offices located at 000 Xxxxxxxx Xx. (P.O. Box 2139) (mailing address),
State of Xxxx Xxxxx, XX 00000, hereinafter referred to as Tenant:
WITNESSETH:
For the consideration herein, and subject to the terms and conditions
of this agreement, the Lessor hereby leases to the Tenant and the Tenant hereby
accepts as Tenant the following space of real property located and situated in
Catawba County, NC, and being more particularly described as: That certain stall
or section known as Number 254 of the second level floor of the Hickory
Furniture Mart Exhibition Building situated on the west side of Xxxx'x
Restaurant and on the south side of Highway 70 east of Hickory, N.C., and
containing 1,140 square feet of floor space, including the hallway entrance
portion and a portion of certain other common areas, all subject to the terms
and conditions hereof.
1. The term of this lease shall be thirty Six (36) months commencing on
the 1st day of August, 1995, and ending on the 1st day of August, 1998, both
dates inclusive, unless sooner terminated as herein provided.
2. Tenant shall pay to the Lessor yearly rent which shall be a sum
equal to $9.24/$9.45/$9.66 per square foot of floor space covered by this lease
per year, or a total of $10,533.60 per year, to be paid as follows:
$10,773.00
$11,012.40
$877.80 per mo. for 12 mos.; $897.75 per mo. for 12 mos.; $917.70 per mo. for 12
mos.
3. The Tenant may sublet the leased property with the written approval
of the Lessor, which approval the Lessor shall not unreasonably withhold,
provided that the business of the subtenant is compatible with the business of
the Lessor and provided further that the Tenant shall remain primarily liable
for the payment of the rent herein reserved and for the performance of all of
other terms of this lease required to be performed by the Tenant; in no event
shall any rental charged for any sublease exceed the sum payable by the Tenant
herein. Should the Tenant elect to sublet the leased premise, then the Tenant
must notify the Lessor of such fact and obtain the written approval of the
Lessor, and Tenant must appoint the Lessor as its agent to effectuate such
sublease.
4. Tenant shall vacate the leased property in the good order and repair
in which the property now is, ordinary wear and tear excepted, and shall remove
all its property therefrom so that the Lessor can repossess the leased property
not later than noon on the day this lease ends. The tenant may at any time prior
to the termination of this lease remove from the leased property all materials
and equipment and other property of the Tenant in and
2
upon the leased property; any property not removed by such time shall become the
property of the Lessor and Lessor shall have no duty to preserve or account for
same, but may appropriate same as the Lessor's or causes the same to be
destroyed or disposed of as property of the Lessor and Tenant shall have no
claim against the Lessor or any other person for same.
5. Tenant shall be responsible for all licenses, franchise taxes or
other taxes or charges in the nature thereof due as a result of its use of, or
the location of property upon, the leased property. Lessor shall be responsible
for all taxes in the nature of ad valorem taxes upon the building and land.
6. Tenant shall be responsible for maintaining fire and other insurance
coverage on any of its contents or other property which may be upon, kept,
stored, or displayed on the leased property or the property known as Hickory
Furniture Mart Exhibition Building if it desires that the same be so protected.
The Lessor will be responsible to carry only such fire and other insurance
coverage on the leased property and the property known as Hickory Furniture
Mart, Inc. as it in its sole discretion shall determine, and neither party to
this lease shall be under any liability or obligation to the other for failure
to carry any such fire or other insurance coverage.
7. It is agreed that in the event either the space herewith leased or
the property known as the Hickory Furniture Mart Exhibition Building (the
"Building") should be damaged by fire or other casualty, then this lease shall
terminate, except that if either the space herewith leased or the Building be
damaged by fire or other casualty to only a small degree so that the use of said
space and Building by the Tenant is not interfered with or if the said space and
the Building could be repaired sufficiently within two weeks to allow use by the
Tenant, then the lease shall remain in full force and effect, should the Lessor
so elect, and in such event, the Lessor agrees to repair the said space and
Building as quickly as is reasonably possible.
8. Each of the parties hereto waives all rights of action for
negligence against the other party which may hereafter arise from damages to the
premises, or to the property therein, resulting from fire or other casualties
covered by standard fire insurance policy with extended coverage, regardless of
whether or not, or in what amount, such insurance is now or hereafter carried by
the party hereto,all to the extent of such coverage and amount.
9. The Tenant shall have the right make changes to the interior of the
space herein leased in the nature of remodeling. Such changes must be made by or
at the expense of the Tenant, after approval in advance from the Lessor. No such
change shall at any time be made which would impair the structural soundness or
diminish the value of the leased property and all work done in connection with
any change or alteration shall be done in a good and workmanlike manner.
10. If the leased property shall be deserted or vacated, or if
proceedings are commenced against the Tenant in any court under a bankruptcy act
or for the appointment of a trustee or received of the Tenant's property either
before or after the commencement of the lease term, or if there shall be a
default in the payment of rent or any part thereof for more than ten days after
written notice of such default by the Lessor, or if there shall be a default in
the performance of any other covenant, agreement, condition, rule or regulation
herein contained or hereafter established on the part of the Tenant for more
than ten days after written notice of such default by the Lessor, this lease (if
the Lessor so elects) shall thereupon terminate, and the Lessor shall have the
right to reenter or repossess the leased property, either by force, summary
proceedings, surrender, or otherwise, and dispossess and remove therefrom the
Tenant, or other occupants thereof, and their effects, without being liable to
any prosecution therefor. In such case the Lessor shall use its best efforts to
relet the leased property or any part thereof at its fair market rental value,
as the agent of the Tenant, and the Tenant shall pay the Lessor the difference
between the rent hereby reserved and
Page 2
3
agreed to be paid by the Tenant for the portion of the term remaining at the
time of reentry or repossession and the amount, if any, received or to be
received under such reletting fro such portion of the term, plus any deficiency
and expenses.
11. The Tenant shall not paint or install any signs on the exterior
doors, plate glass and exterior walls of the demised premises without the prior
consent of the Lessor. No showcases or other fixtures or objects shall be placed
by the Tenant in front of the building, or elsewhere in or around the building
other than within the demised premises. No eternal antennas or other objects can
be placed on the building without expressed written permission of the Lessor.
12. Lessor agrees to be responsible for maintaining the physical
structure and improvements that are in place as of the effective date of this
lease. Service from misuse of physical structure including but not limited to
heating, air-conditioning, water equipment and facilities will be at Tenant's
expense. Tenant shall be responsible for trash disposal. Additional service will
be at Tenant's expense.
13. The Tenant shall be responsible for all utilities used in
connection with leased space. The amount will be apportioned by the square
footage of the Tenant in relation to the total square footage of the building.
14. Tenant shall not use any form of advertisement utilizing the
Lessor's name or its tenants thereof without the expressed permission of the
Lessor.
15. The Lessor and its representatives may enter the leased property at
any reasonable time for the purpose of inspecting the leased property,
performing any work, and during the final 210 day period of the lease,
exhibiting the leased property for sale, lease, or for other reasonable purpose.
16. Tenant must abide by the rules and regulations set forth by the
building.
17. Any notice under this lease must be in writing and may be sent by
ordinary mail addressed to the Tenant at the address appearing on this lease, or
such other address as the Tenant shall designate in writing, and in the case of
the Lessor to the address appearing on this lease or otherwise designated in
writing by the Lessor.
18. The Tenant and/or subtenant hereunder shall make no unlawful or
offensive use of the space herewith leased.
19. This agreement shall enure to the benefit and be binding upon the
parties hereto, their successors and assigns.
Page 3
4
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed by its duly authorized officers and its corporate seal to be hereto
affixed, all in duplicate originals, the day and year first above written.
HICKORY FURNITURE MART, INC.
By /s/
--------------------------------------
By /s/
--------------------------------------
CORPORATE SEAL
ATTEST:
/s/
--------------------------------------------
SECRETARY
QUAKER FABRIC CORPORATION OF FALL RIVER
TENANT
/s/
-----------------------------------------
TITLE
CORPORATE SEAL
ATTEST:
/s/
--------------------------------------------
SECRETARY
Page 4
