Exhibit 10.16
LEASE AGREEMENT
COMMONWEALTH OF VIRGINIA
CITY OF LYNCHBURG, VIRGINIA
This LEASE AGREEMENT made and entered into as of the 1st day of December by and
between XXXXXX FAMILY LLCI whose address is Xxxxx Xx. 0, Xxx 00, Xxxxxxxxxx,
Xxxxxxxx 00000, hereinafter referred to as "Lessor" and BGF Industries with
offices in Greensboro, North Carolina, hereinafter referred to as "Lessee";
WITNESSETH:
1. The Lessor does hereby lease unto the Lessee and the Lessee does hereby
accept from the Lessor approximately 37,000 square feet of warehouse
space located in the building on 0000 Xxxxxxx Xxxxxx in Lynchburg,
Virginia. This space is located on the first floor of the building. The
term of this Lease will be twelve months starting on 12/1/99 and ending
on 12/1/2000.
2. The Lessee covenants and agrees to pay the Lessor as rental for space
described in item #1 above, the sum of $10,000.00 per month payable in
advance on the first day of each calendar month of the term of this
Lease. The first month rent to be negotiated for actual usage.
3. Through the term of this Lease, the Lessor, at its sole expense, will
keep in good condition the demised premises, including, but not limited
to, the foundation, exterior walls, plate glass, roof, heating system,
including all component parts, air conditioning system, including all
component parts, plumbing, electrical system, paving and landscaping,
and will make all necessary repairs thereto. When used in this
paragraph, the term "repairs" shall mean all necessary replacements,
removal, alternations, additions, or betterment's.
It shall exclude the alarm system. At the request of the
Lessee the intrusion system has been disconnected for the
space being leased. While the smoke detection and sprinkler
systems are being maintained on the lease space, the Lessor
shall not be held responsible for any failures or
malfunctions.
4. The Lessor shall pay all real estate taxes, assessments, and other
governmental levies and charges, general and special, ordinary and
penalties, interests or costs for the non-payment thereof and become
due and payable during the term of this Lease. Lessor shall pay all
other required utilities.
5. The Lessee shall provide insurance coverage only for the following:
a) General Liability - Lessee shall provide General and Public
liability coverage for use of Lessor's premises and agrees
that it shall maintain $1,000,000 bodily injury and property
damage limits. Lessee agrees that it will indemnify and save
Lessor harmless from any and all liability, damage, expenses,
cause of action, suits, claims or judgments arising from
injury to persons or property, within the leased premises or
upon adjoining property, sidewalks, or parking lots up to
limits of insurance coverage.
b) Fire and Extended Coverage - Lessee will provide insurance
coverage to cover its property located at the leased facility.
c) Workmen's Compensation - Lessee is self-insured for workmen's
compensation and as such will provide workmen's compensation
coverage for its employees and guests.
6. In the event the demised premises shall be damaged by fire or other
casualty which in the opinion of the Lessee shall render all or any
portion of the demised premises untenable, the Lessee, upon five (5)
days prior written notice delivered unto the Lessor, may terminate this
Lease. In the event the Lessee shall not terminate this Lease in
accordance with the previous provision of this paragraph, the Lessor
will, with reasonable promptness, repair the damage and restore the
demised premises to its former condition and the obligations of the
Lessee hereunder will there upon continue in full force and effect. If
the damage to the demised premises is such as to make the premises
untenable, the payment of the rent shall be suspended from the date of
damage until the repairs have been completed. If the damage is such as
to make the demised premises only partially untenable, then the rent
shall be appropriately reduced until repairs have been completed. When
the repairs have been completed, the payment of rent will be resumed.
No abatement of rent, however, shall operate to extend the term of this
Lease.
7. In the event that any or all of the demised premises shall be taken in
condemnation proceedings or by exercise of any right of imminent
domain, this Lease shall terminate as of the date of such taking, and
all unearned rent and all other charges paid in advance shall be
refunded to the Lessee and Lessor shall surrender possession of the
leased premises to the Lessor. The award of such taking shall belong to
the Lessor except that the Lessee shall also be entitled to make claim
in its own name to condemning authorities for the value of any
furniture, trade fixtures, trade equipment, merchandise, machinery or
other personal property of any kind belonging to the Lessee and not
forming part of the real estate or for the cost of moving all of the
same and any award made directly to Lessee or for the benefit of the
Lessee shall belong entirely to the Lessee provided said claim shall
not diminish the Lessor's award.
"Taking" shall include the voluntary conveyance by the Lessor
of the demised premises to the authority possessing the right
of imminent domain.
8. The Lessee agrees that it shall fail and neglect to pay any installment
of rent within ten (10) days after the same has become due and payable
as herein provided and Lessor has notified Lessee in writing of said
delinquency, then the Lessor may at its option terminate this Lease and
enter upon the demised premises and take possession thereof as if this
Lease has not been entered into all in accordance and in strict
compliance with the appropriate statutory laws of the State of
Virginia. In the event the Lessor shall exercise the right to terminate
this Lease under the provisions of this paragraph or in any other
lawful manner, it shall not thereby be deprived of any other rights or
remedies against the Lessee.
9. The Lessor covenants and agrees with the Lessee that so long as the
Lessee pays the installments of rent at the time and in the manner
herein provided and performs and observes the covenants and conditions
hereof, the Lessee shall quietly enjoy the demised premises during the
term herein fixed. This agreement shall be binding upon the parties
hereto and their successors, heirs, and assignees.
IN WITNESS WHEREOF, the parties have caused this Lease to be executed in
duplicate originals the date first herein above set out.
LESSOR:
Xxxxxx Family LLCI
ATTEST: BY: /s/ Xxxx X. Xxxxxx
/s/ XX Xxxxxxxx III
LESSEE:
BGF Industries, Inc.
ATTEST: BY: /s/ Xxxx Xxxxxx
Xxxx Xxxxxx/Operations Manager
/s/ Xxxx Xxxxxx
Xxxx Xxxxxx/Customer Service Supervisor
