EXHIBIT 10.8
STATE OF SOUTH CAROLINA }
} LEASE AGREEMENT
COUNTY OF XXXXXXXX }
THIS LEASE, made and entered into this first ay of March 18, 2004, 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 4.35
acres and improvements thereon located on By-Pass 00, Xxxxxxxx Xxxxxx Xxxxxxxxxx
Xxxx, Xxxxxxxx Xxxxxx, Xxxxx Xxxxxxxx.
2. Owner hereby leases to Tenant, and Tenant hereby leases and takes, upon
the terms, conditions and covenants hereinafter set forth approximately 10,500
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.
4. To have and to hold the leased premises unto Tenant for a term set forth
below commencing on the first day of May 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 accordances with the specification 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:
Term Amount Monthly Amount Annually
---------------------- ------------------ -------------------
05/01/04 - 06/30/05 $7,300 $87,600
Note: A late penalty of $50.00 shall be assessed if the payment is not received
by the first Thursday of each month.
Page Two - Lease-Corporate Office
7. The Owner hereby grants to the Tenant an option to extend this Lease for
up to an additional twelve (12) months at a rate equal to 105% of the rates set
forth above and under the terms set forth herein. The Tenant hereby agrees to
give written notice of at least ninety (90) days in advance of any extension
under this option. Such notice shall provide the term selected by the Tenant.
8. All real estate taxes and increases thereof, are the total
responsibility of the Tenant.
9. Tenant shall carry fire and casualty insurance on the structure in an
amount not less than $500,000.
10. Owner shall have no further responsibility for repairs or maintenance
of the leased premises, including, but not limited to the mechanical system of
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.
11. It 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.
12. Tenant shall have the right to place signs or other advertising devices
on the building or premises provided that such signs comply in all respects with
laws and municipal ordinance 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 damages the signs, their installation or removal may
have caused.
13. 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. Tenants, 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.
14. 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.
15. The Tenant shall pay for 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.
Page Three - Lease-Corporate Office
16. 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 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 expected.
17. 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 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.
18. 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 life of said Lease, either by way of loss or rents or
expenses, including, but not to redecorating and commissions incident to any
releasing.
19. 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.
20. This Lease Agreement shall be construed under the laws of the State of
South Carolina.
21. No waiver of any condition or legal right or remedy shall be implied by
the failure of Owner to declare 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.
22. 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.
23. 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.
Page Four - Lease-Corporate Office
24. 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.
IN WITNESS WEHREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
COMMERCE CENTER ASSOCIATES, INC.
/s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------------- -------------------------------------
Witness Its: President
HAMPSHIRE DESIGNERS, INC.
/s/ Xxxxxxx Xxxxx By: /s/ Xx Xxxxxx
-------------------------------- -------------------------------------
Witness Tenant
