Exhibit 10.10
LEASE AGREEMENT
THIS LEASE AGREEMENT made and entered into as of the 24th
day of June, 1996, by and between XXXXXX X. XXXXXX (hereinafter
referred to as the "Lessor"), and XXXXXX SUPPLY, INC.
(hereinafter referred to as the "Lessee").
W I T N E S S E T H
WHEREAS, Lessor desires to lease certain property to Lessee;
and
WHEREAS, Lessee desires to lease such property;
NOW, THEREFORE, in consideration of the premises and the
mutual promises and agreements hereinafter contained, the parties
do hereby agree as follows:
ARTICLE I
PROPERTY. Lessor agrees to lease and demise unto Lessee
certain property, known as 0000 Xxxxxxxxx Xxxx, Xxxxxxx, Xxxxxxx
00000, as described on Exhibit "A" hereto (hereinafter referred
to as the "Property").
ARTICLE II
LEASE TERM. The term of this Lease Agreement shall be for a
period of two (2) years commencing on July 1, 1996, and ending on
June 30, 1998, both dates inclusive, unless sooner terminated as
herein provided. In no event shall there be any renewal of this
Lease by operation of law, and if Lessee remains in possession of
the Property after the termination of this Lease and without a
new lease executed by Lessor and Lessee, but with the
acquiescence of Lessor, Lessee shall be deemed to be occupying
the Property under a month-to-month periodic tenancy at an amount
to be agreed upon by the parties hereto, and in no event less
than the then-current Rent as hereinafter provided, and otherwise
subject to all the covenants and provisions of this Lease insofar
as the same are applicable to a month-to-month periodic tenancy.
Lessor and Lessee agree that any such periodic tenancy may be
terminated by thirty (30) days prior written notice by either
party to this Lease to the other party. If Lessee remains in
possession after termination of this Lease without Lessor's
acquiescence or consent, Lessee thereupon shall be deemed a
tenant-at-sufferance and may be evicted at once without notice.
ARTICLE III
3.1 RENT. From July 1, 1996 through and including June 30,
1998, Lessee agrees to pay Lessor without demand, deduction or
set-off as rental SIX THOUSAND FIVE HUNDRED ($6,500.00) DOLLARS
per month in advance, on the first (1st) day of each calendar
month during the Lease Term. Lessee shall pay to Lessor all rent
and all other charges due and owing by Lessee under this Lease
without deduction or set-off, in legal tender, and at Lessor's
address specified in Section 14.7 or as otherwise directed from
time to time by Lessor's notice.
3.2 ADDITIONAL RENT. Lessee shall pay to Lessor in addition
to all rent as herein provided, on or before the dates the same
shall become due and payable, and as additional rent, all taxes,
insurance and general maintenance of the Property, which Lessee
assumes or agrees to pay hereunder, together with all interest
and penalties that may accrue thereon. In the event of non-
payment, Lessor shall have the rights and remedies herein
provided for in the case of non-payment of rent or a breach of
condition.
3.3 TAXES AND OTHER CHARGES. Lessee shall, without notice
or demand, as additional rent, pay and discharge, on or before
the last day on which the same may be paid without penalty, all
taxes, rates and charges, sanitary assessments, and other
governmental impositions and charges of every kind and nature
whatsoever, and each and every installment thereof together with
all interest and penalties thereon, which shall or may during the
Lease Term be levied, assessed or imposed on or become a lien
upon or become due or payable out of or for or by reason of the
Property or any part thereof, the Lessee's or the Lessor's
interest in the Property and the improvements located thereon, or
any buildings, appurtenances, or equipment now or hereafter
erected or placed thereon or therein or any part thereof, or the
sidewalks or streets in front of or adjoining the Property
including further any rent tax which may now or hereafter be
imposed in addition to or in lieu of real property ad valorem
taxes. All taxes levied, assessed or imposed in addition to the
foregoing shall be paid by Lessee together with all interest and
penalties thereon, under or by virtue of all present or future
laws, ordinances, requirements, orders, directives, rules or
regulations of the federal, state, county and city or local
governments and of all other governmental authorities whatsoever.
Lessee shall pay all taxes and assessments which shall prior to
or during the Lease Term be levied, assessed or imposed on or
become a lien upon the personal property of Lessee located upon
the Property. Lessee shall be deemed to have complied with the
covenants of this Lease if payment of such rents, taxes, sanitary
assessments, and other governmental impositions and charges,
shall have been made within any grace period allowed by law or by
the governmental authority imposing the same during which payment
is permitted without penalty or interest, and either before the
same shall become a lien upon the Property or shall become
delinquent. Lessee shall within ten (10) days after receipt of
written request therefor by Lessor produce and deliver to Lessor
reasonably satisfactory evidence of such payment.
Lessor shall be responsible for the payment of all special
assessments imposed upon the Property.
All such rents, taxes, rates and charges, sanitary
assessments, and Other governmental impositions and charges which
become due and are payable in the calendar year in which the
Lease Term expires, shall be apportioned pro rata between Lessor
and Lessee in accordance with the respective portions of such
period during which the Lease Term shall be in effect.
Lessee shall have the right to contest or review by legal
proceedings, or in such other manner as it may deem suitable
(which, if instituted, Lessee shall conduct promptly at its own
expense, and free of any expense to Lessor, and, if necessary, in
the name of Lessor), any tax, assessment, rate or charge,
sanitary assessment, or other governmental imposition or charge
aforementioned.
Nothing herein contained shall be construed to require
Lessee to pay any inheritance, estate, succession, transfer,
gift, franchise, income, income profit or excess profit, capital
stock, capital levy, corporate or unincorporated business tax or
other similar tax, that is or may be imposed upon Lessor, its
successors or assigns, or upon the rent payable by Lessee. In the
event any sales tax shall be due on rent for the Property, then
Lessee shall be responsible for paying and shall pay, when due r
any such sales tax.
ARTICLE IV
COSTS AND EXPENSES OF LESSEE. All costs, expenses and
obligations of every kind, including but not limited to
utilities, repairs and maintenance relating to the Property which
may arise or become due during the term of this Lease, shall be
paid by Lessee, except as designated herein. Lessor shall be
responsible for the payment of major repairs to the roof, the
foundation and the structural walls.
ARTICLE V
COVENANTS OF LESSOR. Lessor covenants and agrees as
follows:
A. That Lessor owns the Property in fee simple and has full
right, power and authority to enter into this Lease for the terms
herein granted and that the Property may be used by Lessee during
the entire term of this Lease for the purposes for which it is
currently being used by Lessee.
B. That Lessee, upon the payment of the Rent herein
provided and upon the performance of all the terms of this Lease,
shall at all times during the Lease Term and during any extension
or renewal term, peaceably and quietly enjoy the property without
any disturbance from Lessor or from any other person claiming
through Lessor.
C. That the Property currently conforms and complies with
any and all applicable laws or private restrictions.
D. That Lessor has no knowledge or notice of any pending or
threatened law suits or insolvencies with respect to either
Lessor or the Property.
ARTICLE VI
COVENANTS OF LESSEE. Lessee covenants and agrees as
follows:
A. To pay Lessor the Rent herein stipulated at the time and
in the manner herein provided.
B. To take good care of the Property and suffer no waste or
damage and at the end or other expiration of the term of this
Lease, to return the Property in its current condition, normal
wear and tear excepted.
C. To observe and comply with all presently existing State,
City and County ordinances and regulations applicable to the
Property, and all orders and requirements presently imposed by
any other duly constituted governmental authority having
jurisdiction over the Property.
ARTICLE VII
USE.
7.1 LAWFUL PURPOSE. Lessee may use the Property for any
lawful purpose. Lessee shall not use or permit any of the
Property to be used for any unlawful purpose. Lessee shall
comply, at its own expense, with all statutes, regulations,
rules, ordinances, and orders of any governmental body,
department, or agency thereof which apply to or result from
Lessee's use or occupancy of the Property.
7.2 LESSOR'S RIGHT TO ENTER PROPERTY. Lessor and its
agents, employees, and contractors shall have the right to enter
the Property during normal business hours, without undue
interference with the conduct of Lessee's business therein, to
inspect and examine the Property and to exhibit the Property to
prospective purchasers, tenants and lenders. In the event of
emergency, or if otherwise necessary to prevent injury to persons
or damage to property, such entry to the Property may be made by
force without any liability whatsoever on the part of Lessor for
damage resulting from such forcible entry.
ARTICLE VIII
ASSIGNMENT AND SUBLETTING.
8.1 Lessee shall not, without Lessor's prior written
consent, which shall not be unreasonably withheld or delayed: (i)
assign, convey, mortgage, pledge, encumber, or otherwise transfer
(whether voluntarily, by operation of law, or otherwise) this
Lease or any interest under it; (ii) allow any transfer thereof
or any lien upon Lessee's interest by operation of law; (iii)
sublet the Property or any part thereof; or (iv) permit the use
or occupancy of the Property or any part thereof by any one other
than Lessee; and any attempt to consummate any of he foregoing
without Lessor's consent shall be void.
8.2 Notwithstanding anything herein to the contrary, if at
any time or from time to time during the Lease Term, Lessee
desires to sublet all or a part of the Property or assign,
convey, mortgage, pledge, encumber, or otherwise transfer the
Lease or any interest under it, Lessee shall notify Lessor in
writing (hereinafter referred to in this Article VIII as the
"Notice") of the terms of the proposed subletting or assignment,
the identity of the proposed assignee or subleases, the area
proposed to be sublet (if a sublease is proposed), and such other
information as Lessor may request to evaluate Lessee's request to
assign or sublet. Notwithstanding the provisions of this Article
VIII, Lessee may sublet or assign, convey, mortgage, pledge,
encumber, or otherwise transfer the Lease or any interest under
it, to its parent corporation or to an affiliate or subsidiary
corporation of which such parent corporation owns the majority of
the shares of common and preferred stock without Lessor's prior
written consent or approval. In such event, Lessee shall notify
Lessor, in writing, of such an assignment or sublease,
conveyance, mortgage, pledge, encumbrance, or other transfer
prior to the commencement of the term of such assignment or
sublease.
8.3 Within twenty (20) days of Lessor's receipt of the
proposed assignment or sublease, conveyance, mortgage, pledge,
encumbrance, or other transfer, and such requested additional
information, Lessor shall approve or disapprove in writing the
terms of the proposed assignment or sublease, conveyance,
mortgage, pledge, encumbrance, or other transfer, and the
proposed assignee or subleases or other party thereto. Failure to
so approve or disapprove shall be deemed approval by Lessor. If a
fully executed counterpart of such assignment or sublease,
conveyance, mortgage, pledge, encumbrance, or other transfer is
not delivered to Lessor within forty-five (45) days after the
date of Lessor's written approval, then Lessor's approval of same
shall be deemed null and void and Lessee shall again comply with
all the conditions of this Section 8.3 as if the Notice and
options hereinabove referred to had not been given and received.
8.4 Lessee agrees to pay, as additional rental, to Lessor,
on demand, reasonable costs incurred by Lessor in connection with
any request by Lessee for Lessor to consent to any of the
transactions contemplated by this Article VIII by Lessee.
8.5 If, with the consent of Lessor, this Lease is assigned
or the Property or any part thereof is sublet or occupied by
anybody other than Lessee, Lessor may, after default by Lessee,
collect rent from the assignee, subtenant or occupant, and apply
the net amount collected to the Rent, but no such assignment,
subletting, occupancy, or collection shall be deemed (i) a waiver
of any of Lessee's covenants contained in this Lease, (ii) the
acceptance by Lessor of the assignee, subtenant, or occupant as
Lessee, or (iii) the release of Lessee from further performance
by Lessee of its covenants under this Lease.
ARTICLE IX
EMINENT DOMAIN.
9.1 If all or any substantial part of the Property,
including but not limited to ten (10) percent of the parking,
access, building or signage, should be taken for any public or
quasi-public use under governmental law, ordinance, or
regulation, or by right of eminent domain, or by private purchase
in lieu thereof, and the taking would prevent or materially
interfere with the use of the Property for the purpose for which
it is then being used, this Lease shall terminate effective when
the physical taking shall occur in the same manner as if the date
of such taking were the date originally fixed in this Lease for
the expiration of the Lease Term.
9.2 If part of the Property is taken for any public or
quasi-public use under any governmental law, ordinance, or
regulation, or by right of eminent domain f or by private
purchase in lieu thereof, and this Lease is not terminated as
provided in subsection (a) above, this Lease shall not terminate
but the Rent payable hereunder during the unexpired portion of
this Lease shall be reduced to such extent, if any, as may be
fair and reasonable under all of the circumstances and Lessor
shall undertake to restore the Property to a condition suitable
for Lessee's use, as near to the condition thereof immediately prior
to such taking as is reasonably feasible under all circumstances.
9.3 Lessee shall not share in any condemnation award or
payment in lieu thereof or in any award for damages resulting
from any grade change of adjacent streets, the same being hereby
assigned to Lessor by Lessee; provided, however, that Lessee may
separately claim and receive from the condemning authority, if
legally payable, compensation for Lessee's removal and relocation
costs and for Lessee's loss of business and/or business
interruption.
9.4 Notwithstanding anything to the contrary contained in
this Article 9, if during the Lease Term the use or occupancy of
any part of the Property shall be taken or appropriated
temporarily for any public or quasi-public use under any
governmental law, ordinance, or regulation, or by right of
eminent domain, this Lease shall be and remain unaffected by such
taking or appropriation and Lessee shall continue to pay in full
all rental payable hereunder by Lessee during the Lease Term. In
the event of any such temporary appropriation or taking, Lessee
shall be entitled to receive that portion of any award which
represents compensation for the loss of use or occupancy of the
Property during the Lease Term, and Lessor shall be entitled to
receive that portion of any award which represents the cost of
restoration and compensation for the loss of use or occupancy of
the Property after the end of the term of this Term Lease.
ARTICLE X
INSURANCE.
10.1 Lessee shall carry fire and extended coverage
insurance insuring Lessee's interest in its improvements and
betterments to the Property and any and all furniture, equipment,
supplies, and other property owned, leased, held, or possessed by
it and contained therein, such insurance coverage to be in an
amount equal to the full insurable value of such improvements and
property. Lessee may, in the alternative, elect to self-insure
the Property in whole or in part, provided such self-insurance,
along with any and all additional third-party insurance shall
equal the full insurable value of the Property.
10.2 Lessee also agrees to carry a policy or policies of
comprehensive general liability insurance, including personal
injury and property damage, with contractual liability
endorsement, in the amount of One Million Dollars ($1,000,000.00)
for property damage and One Million Dollars ($1,000,000.00) per
occurrence for personal injuries or deaths of persons occurring
in or about the Property. Said policies shall: (i) name Lessor as
an additional insured and insure Lessor's contingent liability
under this Lease, (ii) be issued by an insurance company which is
acceptable to Lessor and licensed to do business in the State of
Georgia' and (iii) provide that said insurance shall not be
canceled unless thirty (30) days prior written notice shall have
been given to Lessor. Certificates of insurance shall be
delivered to Lessor by Lessee upon commencement of the term of
the Lease and upon each renewal of said insurance. Lessee may, in
the alternative, elect to self-insure the Property, in whole or
in part, provided such self-insurance, along with any and all
additional third-party insurance shall equal One Million Dollars
($1,000,000.00).
10.3 Lessee shall obtain from its insurers under all
policies of fire, theft, public liability, worker's compensation,
and other insurance maintained by it at any time during the Lease
Term insuring or covering the Property or any portion thereof or
operations therein, and shall in good faith endeavor to obtain a
waiver of all rights of subrogation which the insurer might have
against Lessor, if obtainable.
ARTICLE XI
INDEMNITY. Lessee agrees to indemnify and hold Lessor
harmless from and defend Lessor against any and all claims or
liability for any injury or death to any person or damage to any
property whatsoever:
A. occurring in, on or about the Property, to the extent
such injury, death or damage shall be caused in part or in whole
by the act, neglect or fault of, or omission of any duty with
respect to the same, by Lessee, its agents, employees,
contractors, invitees, licensees or tenants;
B. arising from any work or thing whatsoever done by or
benefiting the Lessee in or about the Property or from
transactions of the Lessee concerning the Property;
C. arising from any breach or event of default on the part
of the Lessee in the performance of any covenant or agreement on
the part of the Lessee to be performed pursuant to the terms of
this Lease; or
D. otherwise arising from any act or neglect of the Lessee,
or any of its agents, employees, contractors, invitees, licensees
or tenants.
ARTICLE XII
12.1 LIABILITY OF LESSOR. Lessor shall not be liable to
Lessee or to any person, firm, corporation, or other business
association claiming fly, through or under Lessee, for any
defects known to Lessee in the Property; nor for the theft,
mysterious disappearance, or loss of any property of Lessee from
the Property. Lessor shall not be liable for any interference,
disturbance, or act caused by any person other than Lessor, nor
shall Lessee be relieved from any obligation herein because of
such interference, disturbance, or act of any person other than
Lessor.
12.2 LIMITATION OF LIABILITY. Lessor's obligations and
liability with respect to this Lease shall be limited solely to
Lessor's interest in the Property, as such interest is
constituted from time to time, and Lessor shall not have any
personal liability whatsoever with respect to this Lease. In any
action or proceeding brought to enforce the obligation of Lessor
to Lessee under this Lease, Lessor and Lessee agree that any
final judgment or decree shall be enforceable against Lessor only
to the extent of Lessor's interest in the Property, as aforesaid,
and any such judgment or decree shall not be capable of execution
against, nor be a lien on, any assets of Lessor other than its
interest in the Property, as aforesaid. Lessor shall maintain a
minimum of one million dollars ($1,000,000.00) equity in the
Property.
ARTICLE XIII
EVENTS OF DEFAULT AND REMEDIES.
13.1 The occurrence of any of the following shall
constitute an event of default:
(a) The Rent or any other sum of money payable under
this Lease is not paid when due;
(b) Lessee's interest in the Lease or the Property
shall be subjected to any attachment, levy, or sale
pursuant to any order or decree entered against Lessee
in any legal proceeding and such order or decree shall
not be vacated within ninety (90) days of entry
thereof; or
(c) Lessee breaches or fails to comply with any term,
provision, condition, or covenant of this Lease, other
than the payment of Rent and any other sum due and
payable hereunder.
13.2 Upon the occurrence of an event of default and, in the
case of an event of default under subsection (a) above, if such
event of default is not cured within five (5) days of receipt of
written demand, and, in the case of an event of default under
subsections (b) or (c) above, if such event of default is not
cured within thirty (30) days after written notice of such event
of default is given by Lessor to Lessee, or such longer period of
time as is reasonably necessary under the circumstances. Lessor
shall have the option to do and perform any one or more of the
following in addition to, and not in limitation of, any other
remedy or right permitted it by law or in equity or by this
Lease:
(a) Lessor, with or without terminating this Lease,
may reenter the Property and perform, correct or repair
any condition which shall constitute a failure on
Lessees part to keep, observe, perform, satisfy, or
abide by any term, condition, covenant, agreement, or
obligation of this Lease, and Lessee shall fully
reimburse and compensate Lessor on demand for all costs
and expenses reasonably incurred by Lessor in such
performance, correction or repairing, including accrued
interest as provided in the next sentence. All sums so
expended to cure Lessee's default shall accrue interest
from the date of demand until date of payment at a rate
of interest per annum equal to the lesser of (i)
sixteen percent (16%) per annum; or (ii) the highest
rate permitted by law.
(b) Lessor, with or without terminating this Lease,
may immediately, or at any time thereafter, demand in
writing that Lessee vacate the Property and thereupon
Lessee shall vacate the Property and remove therefrom
all property thereon belonging to or placed on the
Property by, at the direction of, or with consent of
Lessor within ten (10) days of receipt by Lessee of
such notice from Lessor, whereupon Lessor shall have
the right to reenter and take possession of the
Property. Any such demand, reentry and taking
possession of the Property by Lessor shall not of
itself constitute an acceptance by Lessor of a
surrender of this Lease or of the Property by Lessee
and shall not of itself constitute a termination of
this Lease by Lessor.
(c) Lessor, with or without terminating this Lease, may
immediately or at any time thereafter relet the
Property or any part thereof for such time or times, at
such rental or rentals and upon such other terms and
conditions as Lessor in its commercially reasonable
discretion may deem advisable, and Lessor may make any
alterations or repairs to the Property which it may
deem necessary or proper to facilitate such reletting;
and Lessee shall pay all costs of such reletting
including but not limited to the cost of any such
alterations and repairs to the Property, attorneys'
fees, and brokerage commissions; and if this Lease
shall not have been terminated, Lessee shall continue
to pay all rent and all other charges due under this
Lease up to and including the date of beginning of
payment of rent by any subsequent tenant of part or all
of the Property, and thereafter Lessee shall pay
monthly during the remainder of the term of this Lease
the difference, if any, between the rent and other
charges collected from any such subsequent tenant or
tenants and the rent and other charges reserved in this
Lease, but Lessee shall not be entitled to receive any
excess of any such rents collected over the rents
reserved herein.
(d) Lessor may immediately or at any time thereafter
terminate this Lease, and this Lease shall be deemed to
have-been terminated upon receipt by Lessee of written
notice of such termination; upon such termination
Lessor shall recover from Lessee all damages Lessor may
suffer by reason of such termination including, without
limitation, all arrearages in rentals, costs, charges,
additional rentals' and reimbursements, the cost
(including court costs and attorneys' fees) of
recovering possession of the Property, the cost of any
alteration of or repair to the Property which is
necessary or proper to prepare the same for re-letting
and, in addition thereto, Lessor shall have and recover
from Lessee an amount equal to the excess if any, of
the total amount of all rents and other charges to be
paid by Lessee for the remainder of the term of this
Lease over the then reasonable rental value of the
Property for the remainder of the term of this Lease,
such excess discounted to present value using a
discount rate equal to six percent (6%).
(e) Lessor shall have a good faith duty to mitigate his
losses hereunder.
13.3 If Lessor re-enters the Property or terminates this
Lease pursuant to any of the provisions of this Lease, Lessee
hereby waives all claims for damages which may be caused by such
re-entry or termination by Lessor. Lessee shall and does hereby
agree to indemnify and hold Lessor harmless from any loss, cost
(including court costs and attorneys' fees), or damages suffered
by Lessor by reason of such re-entry or termination. No such re
entry or termination shall be considered or construed to be a
forcible entry.
13.4 No course of dealing between Lessor and Lessee or any
failure or delay on the part of Lessor in exercising any rights
of Lessor under this Section 13 or under any other provisions of
this Lease shall operate as a waiver of any rights of Lessor
hereunder or under any other provisions of this Lease, nor shall
any waiver of any event of default on one occasion operate as a
waiver of any subsequent event of default or of any other event
of default. No express waiver shall affect any condition,
covenant, rule, or regulation other than the one specified in
such waiver and that one only for the time and in the manner
specifically stated.
13.5 The exercise by Lessor of any one or more of the
rights and remedies provided in this Lease shall not prevent the
subsequent exercise by Lessor of any one or more of the other
rights and remedies herein provided. All remedies provided for in
this Lease are cumulative and may, at the election of Lessor, be
exercised alternatively, successively, or in any other manner and
are in addition to any other rights provided for or allowed by
law or in equity.
ARTICLE XIV
MISCELLANEOUS
14.1 PRONOUNS. All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine or neuter,
singular or plural, as the identity of the entity, person or
persons may require.
14.2 INSOLVENCY OR BANKRUPTCY. The appointment of a
receiver to take possession of all or substantially all of the
assets of Lessee, or an assignment of Lessee for the benefit of
creditors, or any action taken or suffered by Lessee under any
insolvency, bankruptcy, or reorganization act, unless terminated
or dismissed within eighty-five (85) days, shall at Lessor's sole
option constitute a breach of this Lease by Lessee. Upon the
happening of any such event or at any time thereafter, this Lease
shall terminate. In no event shall this Lease be assigned or
assignable by operation of law or by voluntary or involuntary
bankruptcy proceedings or otherwise and in no event shall this
Lease or any rights or privileges hereunder be an asset of Lessee
under any bankruptcy, insolvency, or reorganization proceedings.
14.3 LATE PAYMENTS. Lessee shall pay, in the event Rent or
other charge to be paid by Lessee hereunder is not paid when due,
(A) a late fee of five percent (5.0%) of the amount past due,
which late fee Lessee acknowledges is an agreed upon
reimbursement to Lessor for the administrative expense incurred
by Lessor as a result of Lessee's late payment and not a penalty
and is reasonable in light of the difficulty to estimate costs;
and (B) interest on the amount past due (excluding late fees) at
a rate per annum equal to the lesser of (ii) twelve percent (12%)
per annum; or (iii) the highest rate permitted by law, from due
date until paid. Should Lessee make a partial payment of past due
amounts, the amount of such partial payment shall be applied
first, to late fees, second' to accrued but unpaid interest, and
third, to past due amounts, in inverse order of their due date.
14.4 ATTORNEYS' FEES. In the event of any litigation
arising out of this Lease or the relationships evidenced hereby,
the prevailing party shall be entitled to receive from the other
party, an amount equal to the prevailing party's actual
attorneys' fees, reasonably incurred.
14.5 INTENTIONALLY LEFT BLANK
14.6 NO WAIVER OF RIGHTS. No failure or delay of Lessor to
exercise any right or power given it herein or to insist upon
strict compliance by Lessee of any obligation imposed on it
herein and no custom or practice of either party hereto at
variance with any term hereof shall constitute a waiver or a
modification of the terms hereof by Lessor or any right it has
herein to demand strict compliance with the terms hereof by
Lessee. No person has or shall have any authority to waive any
provision of this Lease unless such waiver is expressly made in
writing and signed by Lessor.
14.7 ADDRESSES AND NOTICES.
(a) Except for legal process which may also be served as by
law provided or as provided in subsection (b) below, all notices
required or desired to be given with respect to this Lease in
order to be effective shall be in writing and shall be deemed to
be given to and received by the party intended to receive such
notice when hand delivered or three (3) days after such notice
shall have been deposited, postage prepaid, to the United States
mail, certified, return receipt requested, properly addressed to
the addresses specified in item (c) of this Section In the event
of a change of address by either party, such party shall give
written notice thereof in accordance with The foregoing.
(b) To the extent permitted by law, Lessee hereby: (i)
appoints and designates the Property as a proper place for
service of process upon Lessee (provided, however, Lessor does
not hereby waive the right to serve Lessee with process by any
other lawful means); and (ii) expressly waives the service of any
notice under any existing or future law of the State of Florida
applicable to Lessors and tenants.
(c) Lessor: Xxxxxx X. Xxxxxx
0000 Xxxxxxxxx Xxxx Xxxx
Xxxxxxxxx, Xxxxxxx 00000
Lessee: Xxxxxx Supply, Inc.
0000 Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxx 00000
14.8 ENTIRE AGREEMENT AND EXHIBITS. This Lease constitutes
and contains the sole and entire agreement of Lessor and Lessee
and no prior or contemporaneous oral or written representation or
agreement between the parties and affecting the Property shall
have legal effect. No modification or amendment of this Lease
shall be binding upon the parties unless such modification or
amendment is in writing and signed by Lessor and Lessee. The
content of each and every exhibit which is referenced in thin
Lease as being attached hereto is incorporated into this Lease as
fully as if set forth in the body of this Lease.
14.9 SUBORDINATION NON-DISTURBANCE AND ATTORNMENT.
(a) Except as provided in subsections (d) and (e) below,
this Lease and all rights of Lessee hereunder are and shall be
subject and subordinate to the lien of any mortgage, deed to
secure debt, deed of trust, or other instrument in the nature
thereof which may now or hereafter affect Lessor's estate or
interest in and to the Property and to any other instrument
encumbering the fee title of the Property and to any
modifications, renewals, consolidations, extensions, or
replacements thereof.
(b) Subsection (a) above shall be self-operative, and no
further instrument of subordination shall be required by the
holder of any such instrument affecting or encumbering the
Property. In confirmation of such subordination, Lessee shall,
upon demand, at any time or times, execute, acknowledge, and
deliver to Lessor or the holder of any such mortgage, deed to
secure debt, deed of trust, or other instrument, without expense
r any and all instruments that may be requested by Lessor or such
holder to evidence the subordination of this Lease and all rights
hereunder to the lien of any such mortgage, deed to secure debt,
deed of trust, or other instrument, and each such renewal,
modification, consolidation, replacement, and extension thereof
and if Lessee shall fail at any time, within ten (10) days
following the giving of a written request therefor, to execute,
acknowledge, and deliver any such instrument, Lessor or such
holder or such lessor, in addition to any other remedies
available to it in consequence thereof, may execute, acknowledge,
and deliver the same as the attorney-in-fact of Lessee and in
Lessees name, place, and stead and Lessee hereby irrevocably
makes, constitutes, and appoints Lessor or such holder or such
lessor, in their respective successors and assigns, such attorney-
in-fact for that purpose.
(c) Lessee shall, upon demand, at any time or times,
execute, acknowledge, and deliver to Lessor or to the holder of
any mortgage, deed to secure debt, deed of trust, or other
instrument affecting or encumbering the Property, without
expense, any and all instruments that may be necessary to make
this Lease superior to the lien of any such mortgage, deed to
secure debt, deed of trust or other instrument or the grant of
any such ground lease, and each renewal, modification,
consolidation, replacement, and extension thereof, and, if Lessee
shall fail at any time' within ten (10) days following the giving
of a written request therefor, to execute, acknowledge, and
deliver any such instrument, Lessor or such holder or such
lessor, in addition to any other remedies available to it in
consequence thereof, may execute, acknowledge, and deliver the
same as the attorney-in-fact of Lessee and in Lessee's name,
place, and stead, and Lessee hereby irrevocably makes,
constitutes, and appoints Lessor or such holder or such lessor,
and their respective successors and assigns, such attorney-in-
fact for that purpose.
(d) If the holder of any mortgage, deed to secure debt,
deed of trust or other instrument affecting or encumbering the
Property shall hereafter succeed to the rights of Lessor under
this Lease, whether through possession or foreclosure action or
exercise of private power of sale or delivery of a new lease,
Lessee shall, at the option of such holder or lessor, attorn to
and recognize such successor as Lessee's Lessor under this Lease
as of the date of such succession to Lessors interest and shall
promptly execute and deliver any instrument that may be necessary
to evidence such attornment, and Lessee hereby irrevocably
appoints Lessor or such holder or such lessor the attorney-in-
fact of Lessee to execute and deliver such instrument on behalf
of Lessee should Lessee refuse and fail to do so within ten (10)
days after Lessor or such holder or such lessor shall have given
notice to Lessee requesting the execution and delivery of such
instrument. Upon such attornment, this Lease shall continue in
full force and effect as a direct lease between such successor
Lessor and Lessee, subject to all of the terms, covenants, and
conditions of this Lease.
(e) Lessor shall obtain from any future holder of any deed
to secure debt encumbering the Property, or from the current
holder in the event of any refinancing or future advance, a non
disturbance agreement which shall provide that as long as Lessee
remains not in default under this Lease, such holder shall not
disturb Lessee's tenancy.
14.10 ESTOPPEL_CERTIFICATE. At any time and from time to
time, Lessee, on or before the date specified in a request
therefor made by Lessor, which date shall not be earlier than ten
(10) days from the making of such request, shall execute,
acknowledge, and deliver to Lessor a certificate evidencing
whether or not (i) this Lease is in full force and effect, (ii)
this Lease has been amended in any way, (iii) there are any
existing events of default on the part of Lessor hereunder to the
knowledge of Lessee and specifying the nature such events of
default, if any, and (iv) the date to which rent, and other
amounts due hereunder, if any have been paid. Each certificate
delivered pursuant to this Section may be relied on by any
prospective purchaser or transferee of Lessor's interest
hereunder or of any part of Lessor's property or by any mortgagee
of Lessor's interest hereunder or of any part of Lessors property
or by an assignee of any such mortgagee.
14.11 SEVERABILITY. If any clause or provision of this
Lease is or becomes illegal' invalid, or unenforceable because of
present or future laws or any rule or regulation of any
governmental body or entity, effective during its term the
intention of the parties hereto is that the remaining parts of
this Lease shall not be affected thereby, unless such invalidity
is essential to the rights of either party hereto in which event
this Lease shall terminate.
14.12 CAPTIONS. The captions used in this Lease are for
convenience only and do not in any way limit or amplify the terms
and provisions hereof.
14.13 SUCCESSORS AND ASSIGNS. The words "Lessor" and
"Lessee" as used herein shall include the respective contracting
party, whether singular or plural, and whether an individual,
masculine or feminine, or a partnership, joint venture, business
trust, or corporation. The provisions of this Lease shall inure
to the benefit of and be binding upon Lessor and Lessee, and
their respective successors, heirs, legal representatives, and
assigns, subject, however, in the case of Lessee, to the
provisions of Article VIII hereof.
14.14 FORCE MAJEURE. A party to this Lease shall be excused
from the performance of its duties and obligations under this
Lease, except obligations for the payment of money such as Rent,
for the period of delay, but in no event longer than go days,
caused by labor disputes, governmental regulations, riots, war,
insurrection, acts of God or other causes beyond the control of
the party whose performance is being excused (but such causes
shall not include insufficiency of funds).
14.15 LESSOR'S REPRESENTATIONS. Lessor hereby represents
and warrants that: Lessor is the owner of the Property; Lessor is
in undisputed and peaceful possession of the Property and has a
perfect right to convey good, fee simple, merchantable title to
the Property; there currently exists adequate access, parking and
utility service to the Property for the purposes anticipated by
the parties hereto; there is no outstanding indebtedness, unpaid
xxxx or lien against the Property for equipment, appliances,
other fixtures attached to the Property, sewerage, water main,
sidewalk or other street improvements; there are no retention
title contracts, bills of sale or other encumbrances, of record
or otherwise, affecting the title to any personal property
installed on the Property; the lines and corners of the Property
are clearly marked, and that there are no disputes concerning the
location of the lines and corners; there are no pending suits,
proceedings, judgments' bankruptcies, liens or executions against
the Lessor, either in the county where the Property is located or
in any other county in the State of Georgia; no improvements or
repairs have been made on the Property during the ninety-five
(95) days immediately preceding this date; and there are no
outstanding bills incurred for labor or materials used in making
improvements or repairs on the Property, for services of
architects, surveyors, engineers, or registered foresters
incurred in connection therewith.
14.16 HAZARDOUS SUBSTANCES.
(a) Lessee hereby covenants that Lessee shall not cause or
permit any "Hazardous Substances" (as hereinafter defined) to be
placed, held, located or disposed of in, on or at the Property or
any part thereof except in full compliance with all applicable
laws, rules, ordinances and similar provisions, and neither the
Property nor any part thereof shall ever be used as a dump site
or storage site (whether permanent or temporary) for any
Hazardous Substances during the Lease Term.
(b) Lessee hereby agrees to indemnify Lessor and hold Lessor
harmless from and against any and all losses, liabilities,
including strict liability, damages' injuries, expenses,
including reasonable attorneys' fees, costs of any settlement or
judgment and claims of any and every kind whatsoever paid,
incurred or suffered by, or asserted against, Lessor by any
person or entity or governmental agency for, with respect to, or
as a direct or indirect result of, the presence on or under, or
the escape, seepage, leakage, spillage, discharge, emission,
discharging or release from, the Property of any Hazardous
Substance (including, without limitation, any losses,
liabilities, including strict liability, damages' injuries,
expenses, including reasonable attorneys' fees, costs of any
settlement or judgment or claims asserted or arising under the
Comprehensive Environmental Response) Compensation and Liability
Act, any so-called federal, state or local "Superfund" or
"Superlien" laws, statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing
liability, including strict liability, substances or standards of
conduct concerning any Hazardous Substance), provided, however,
that the foregoing indemnity is limited to matters arising solely
from Lessee r is violation of the covenant contained in
subsection (a) above.
(c) For purposes of this Lease, "Hazardous Substances" shall
mean and include those elements or compounds which are contained
in the list of hazardous substances adopted by the United States
Environmental Protection Agency (the "EPA") or the list of toxic
pollutants designated by Congress or the EPA or which are defined
as hazardous, toxic, pollutant, infectious or radioactive by any
other Federal, state or local statute, law, ordinance, code,
rule, regulation, order or decree regulating, relating to, or
imposing liability or standards of conduct concerning, any
hazardous, toxic or dangerous waste, substance or material, as
now or at any time hereafter in effect.
(d) Lessor shall have the right but not the obligation, and
without limitation of Lessor's rights under this Lease, to enter
onto the Property or to take such other actions as it deems
necessary or advisable to cleanup, remove, resolve or minimize
the impact of, or otherwise deal with, any Hazardous Substance
following receipt of any notice from any person or entity
(including without limitation the EPA) asserting the existence of
any Hazardous Substance in, on or at the Property or any part
thereof which, if true, could result in an order, suit or other
action against Lessee and/or Lessor. All reasonable costs and
expenses incurred by Lessor in the exercise of any such rights,
which costs and expenses result from Lessee's violation of the
covenant contained in subsection (a) above, shall be deemed
additional rental under this Lease and shall be payable by Lessee
upon demand.
(e) Notwithstanding the foregoing, Lessor hereby warrants
that there is no Hazardous Substance affecting the Property and
indemnifies Lessee and holds Lessee harmless from and against any
and all losses, liabilities, including strict liability, damages,
injuries, expenses, including reasonable attorneys' fees, costs
of any settlement or judgment and claims of any and every kind
whatsoever paid, incurred or suffered by, or asserted against,
Lessee by any person or entity or governmental agency for, with
respect to, or as a direct or indirect result of, the presence on
or under, or the escape, seepage, leakage, spillage, discharge,
emission, discharging or release from, the Property of any
Hazardous Substance (including, without limitation, any losses,
liabilities, including strict liability, damages, injuries,
expenses, including reasonable attorneys' fees, costs of any
settlement or judgment or claims asserted or arising under the
Comprehensive Environmental Response, Compensation and Liability
Act, any so-called federal, state or local "Superfund" or
"Superlien" laws, statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing
liability, including strict liability, substances or standards of
conduct concerning any Hazardous Substance) prior to the date
hereof.
(f) This Section 14.16 shall survive cancellation,
termination or expiration of this Lease.
14.17 APPLICABLE LAW. This Lease shall be construed in
accordance with the laws of the State of Georgia.
ARTICLE XV
RIGHT OF FIRST REFUSAL.
(a) If Lessor makes a bona fide written offer to sell or
lease the Property or any part thereof to any prospective
purchaser or tenant during the term of this Lease or for an
additional period of ninety (90) days thereafter' or should
Lessor receive an acceptable offer to do so, Lessor shall notify
Lessee in writing (such notice being hereinafter called the
"Offer Notice") of Lessor's intention to sell or lease the
Property. The Offer Notice shall specifically describe the terms
and the prospective purchaser or tenant with whom such purchase
and sale or lease would be entered into (unless confidentiality
of such prospective purchaser or tenant is required by such
prospective purchaser or tenant). The Offer Notice shall also
constitute an offer by Lessor to sell or lease the Property to
Lessee in accordance with the terms of this Article XV. Lessee
shall have twenty (20) days after its receipt of such Offer
Notice to accept such offer pursuant to this First Refusal Right
and to purchase or lease the Property from Lessor in accordance
with the terms of this Article XV.
(b) Acceptance by Lessee of the offer set forth in the
Offer Notice shall be deemed effective only if such acceptance is
given to Lessor in a written notice of acceptance (the
"Acceptance Notice") specifically referring to the Offer Notice
to which it relates, received by Lessor within the twenty (20)
day period prescribed above for such acceptance. If Lessee duly
and timely delivers to Lessor its Acceptance Notice in accordance
with this Article XV, then Lessor and Lessee shall, within thirty
(30) days of Lessor's receipt of such Acceptance Notice, execute
a contract to purchase and sell or an amendment to this Lease
which conforms to the terms set forth in the Offer Notice.
(c) If Lessee elects not to exercise this First Refusal
Right, Lessor shall be entitled to sell or lease the Property to
the prospective purchaser or tenant that prompted the Offer
Notice, or an affiliate thereof.
(d) Notwithstanding anything in this Article XV the
contrary, Lessee shall have no right to exercise any right or
option under this Article XV, nor shall Lessor have any
obligation to submit an Offer Notice to Lessee with respect to
the Property before entering into a third party contract or lease
with respect thereto, or to enter into any sale or lease of the
Property with Lessee, at any time during which either (i) Lessee
is in default, or an event of default exists with respect to
Lessee, under this Lease, or (ii) this Lease is not in full force
and effect.
(e) Nothing in this Article XV shall be deemed to cause an early
termination of this Lease.
ARTICLE XVI
USUFRUCT. This Lease gives Lessee a usufruct only and does
not create an estate in the Lessee subject to lien or to levy and
sale.
IN WITNESS WHEREOF, the undersigned parties have caused this
Lease to be signed and sealed on the day and year first above
written.
LESSOR:
/s/ Xxxxxx X. Xxxxxx
Xxxxxx X. Xxxxxx
LESSEE:
XXXXXX SUPPLY, INC.
By: /s/ Xxxxx X. Xxxxxx
Title: Regional VP
[CORPORATE SEAL]
