AGREEMENT OF LEASE BETWEEN ADJ CORPORATION AND CHAMPION PUBLISHING, INC.
EXHIBIT
10.1
AGREEMENT
OF LEASE BETWEEN ADJ CORPORATION AND CHAMPION PUBLISHING, INC.
THIS
AGREEMENT OF LEASE is made as of the 1st day
of November, 2008,
between ADJ CORP, a West Virginia corporation, hereinafter called "Lessor," and
CHAMPION PUBLISHING, INC., a West Virginia corporation, hereinafter called
"Lessee."
1.
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Demise of Premises. Lessor
hereby demises and leases to Lessee and Lessee hereby accepts and leases
from Lessor, for the term and upon the terms and conditions hereinafter
set forth, the easternmost 35,000 square feet of the first floor warehouse
space (being the same side of the building as the office space), (the
"Demised Premises" or Premises") of the building situate on the real
property described in Exhibit A attached hereto and incorporated herein by
reference (the "Building"), together with the right to use, in common with
others, the existing paved parking and entryways adjacent to said
Premises.
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2.
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Term. The term of this lease
shall be sixty (60) commencing
on November 1, 2008, and ending at 11:59 p.m. on October, 2013, both dates
inclusive, unless sooner terminated as hereinafter provided or unless
renewed.
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3.
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Rent. Lessee
shall
pay to Lessor, as rental for the occupation and use of the Premises for
and during the original term hereof, a total rental of $420,000.00 payable
monthly in advance in equal installments of $7,000.00 each for the
original term of 60 months hereof, the first of such installments being
payable on the 1st day of November, 2008, and the remaining installments
being due and payable on the 1st day of each calendar month
thereafter.
All
rental shall be payable to Lessor at Xxxx Xxxxxx Xxx 0000, Xxxxxxxxxx,
Xxxx
Xxxxxxxx, 00000, or at such other place as Lessor may direct in
writing.
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4.
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Taxes and Fees. Lessee shall
promptly pay fifty (50%) percent of all taxes and assessments against or
allocated to the Building as and when they become due for tax periods
after the signing of this Lease. Lessee will pay all taxes and assessments
levied against the equipment or other property which is not located
on or which Lessee may erect, install or have located on the Premises.
Taxes for the current year shall be prorated between Lessor and Lessee as
of the date of commencement of this Lease. In the even Lessee fails to pay
the applicable tax xxxx when due, Lessor may, but shall not be obligated
to, pay the tax xxxx and the amount so paid together with interest at the
rate of eighteen (18%)
percent per annum from the date of payment shall be deemed
additional rent due hereunder and shall be paid by Lessee not later than
the date the next installment of rent shall become due
hereunder.
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5.
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Lien for Rent. Lessee covenants
and agrees that Lessor shall have and is hereby given a lien upon the
leasehold estate herein created and upon all of the property of Lessee of
every kind and character which shall come upon the Demised Premises at any
time during the term of this lease or any extension hereof to secure the
payment of all of the rent and other sums whatsoever which are or shall
become due Lessor under the terms of this lease and such lien shall be
paramount to any other liens placed or suffered thereon by Lessee. For the
purpose of enforcing such lien, Lessor shall have and is hereby given the
right to distrain for all of such rent and other sums in the manner and
form as provided by the laws of the State of West Virginia. The lien and
right given Lessor in this paragraph shall be cumulative and in addition
to all other rights and remedies which it now has or may hereafter have
under this lease and the laws of the State of West Virginia.
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6.
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Construction and Alterations by
Lessee. Lessee may after having first obtained the written consent
of Lessor, and at Lessee's full cost and expense alter or construct
improvements upon the Demised Premises, or make alterations or site
improvements to the Demised Premises, such as may be necessary or
incidental to the purposes and uses for which the Premises are leased. All
such improvements shall, at the option of Lessor, become a part of the
Demised Premises and shall be the sole property of Lessor upon the
termination of this Lease.
a. Mechanic's and Material Liens. The Lessor shall not be liable
for any labor or materials furnished to the Lessee and the mechanic's or
other lien for such labor and materials shall not attach to or effect the
Lessor's interest in the Demised Premises. The Lessee hereby agrees to pay
any mechanic's or other lien, or to discharge any such lien by bond or
deposit or provide an escrow deposit sufficient for that purpose upon
request of the Lessor, and failing to do so, the Lessor may, without
having an obligation to do so, upon giving fifteen (15) days written
notice to the Lessee, pay or discharge the same and the amount so paid or
deposited together with interest at the rate of eighteen (18%) percent per
amlum shall be deemed additional rent due hereunder and payable when the
next installment of rent shall become due.
b.
The Lessee shall be responsible for obtaining all required licenses,
approvals or permits for any of the construction, alteration or
installation allowed by this lease. Lessee shall be solely responsible for
all work in connection with the alterations and construction and shall be
solely responsible for assuring that all work is completed in a good and
workmanlike manner and in conformity with all federal, state and local
laws and regulations, including, without limitation, the Americans With
Disabilities Act, and shall indemnify and hold Lessor harmless from any
loss, cost or expense, including attorney fees, in, arising out of, or
relating to, Lessee's failure to comply with the provisions of this
paragraph.
c. Upon full compliance with all terms hereof, and at the termination
hereof, Lessee shall have the right and obligation to remove any and all
of its furniture, furnishings, or equipment then located on the Premises
and to dispose of the same. Lessee agrees that such removal of personal
property shall occur within ten (10) days after the termination or
cancellation of this lease or any extension thereof. Lessee shall notify
Lessor in writing thirty (30) days prior to termination of this lease by
its terms or within five (5)
days after cancellation of this lease by Lessor or Lessee of its
election to remove said property or said property may, at Lessor's option,
be and become the property of Lessor. If Lessor shall elect not to retain
the property it may be removed by Lessor at Lessee's
expense.
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7.
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Permissible Use. The Lessee
shall during the continuance of this lease, use said Demised Premises for
office administration purposes and shall neither use nor suffer the same
to be used for any other purpose without the prior written consent of the
Lessor, which consent shall not be unreasonably withheld. Lessee shall
conduct and manage the Demised Premises in proper and orderly manner and
will not allow the Demised Premises or any part thereof to be used for any
illegal or immoral purpose and will not carry on or permit upon said
Demised Premises any offensive, noisy, or dangerous trade, business,
manufacture or occupation of a nuisance. Lessee shall not alter the
drainage of the Premises. Lessee agrees that if Lessee's actions have the
effect of creating a nuisance or interference with the lawful rights of
any other parties or may constitute a violation of any law, ordinance,
rule, regulation or the like, then Lessee shall be responsible for taking
all corrective action in relation thereto and with respect to which Lessor
shall cooperate at Lessee's sole cost and expense.
Lessee
hereby represents and warrants that no "Hazardous Substances", as defined
hereinafter, have been or will be discharged, dispersed, released, stored,
treated, generated, dis- posed of, or allowed to escape on the Premises.
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
("EPA") and the list of toxic pollutants designated by Congress or the EPA
or defined by or in or pursuant to 42 U.S.C. '
9601
or 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. The Lessee shall, at its
expense, take all necessary remedial action(s) in response to the presence
of any Hazardous Substances in, on, under or about the Premises. The
Lessee shall be solely responsible for, and shall indemnify and hold
harmless the Lessor, its directors, officers, employees, agents,
successors and assigns from and against any loss, cost, expense or
liability of any kind directly or indirectly arising out of or
attributable to the use, generation, storage, release, threatened release,
discharge, disposal, or presence of Hazardous Substances in, on, under or
about the Premises, including, without limitation: (i) all foreseeable
consequential damages; (ii) the costs of any required or necessary repair,
cleanup or detoxification of the Premises, and the preparation and
implementation of any closure, remedial or other required plans; and (iii)
all reasonable costs and expenses incurred by the Lessor in connection
with any of the matters addressed in this paragraph, including but not
limited to reasonable attorney's fees. The Lessee shall, upon the request
of Lessor, provide the Lessor with a bond or letter of credit, in form and
substance satisfactory to the Lessor, in an amount sufficient to cover the
cost of any required remedial action.
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8.
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Maintenance of Premises. Lessee
shall maintain all portions of the Premises and adjoining areas in a
clean, orderly, sanitary condition, free of any unlawful obstructions.
Lessee hereby assumes the fall and sole responsibility for the condition,
operation, repair, replacement, maintenance and management of the Premises
except that Lessor shall be responsible for any repairs or replacement to
the fundamental structure (roof, exterior walls, foundation) or utility
systems. Lessee further agrees that it will commit no waste on the
Premises.
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9.
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Compliance with Laws. The Lessee
at its sole expense shall comply with all laws, orders, and regulations of
federal, state, county, and municipal authorities, and with any direction
of any public officer, pursuant to law, which shall impose any duty upon
the Lessor or the Lessee with respect to the Demised Premises. The Lessee,
at its sole expense, shall obtain all licenses or permits which may be
required for the conduct of its business within the provisions of this
Lease, or for the making of any permitted repairs, alterations,
improvements or additions, and the Lessor, where necessary, will join with
the Lessee in applying for all such permits or licenses.
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10.
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Utilities. Lessee shall pay all
charges for utility services for the Premises, including but not limited
to, gas, water, heat, electricity, trash removal and other services used
in or about or supplied to the Premises and shall indemnify Lessor against
any liability on such account. Except when due to the negligence of
Lessor, Lessor shall not be liable for any failure of any utility service
or for injury to person (including death) or damage to property resulting
from steam, gas, water, heat, electricity, rain or snow which may flow or
leak from any part of the leased property or from any pipes, appliances or
plumbing works, from the street or subsurface or from any other place, or
for interference with light or other easements however caused. Lessee
acknowledges that if any of the utilities are not separately metered,
Lessor shall upon receipt of the xxxx for any such utilities which are not
separately metered provide Lessee with a statement for Lessee's share of
each such utility as Lessor shall reasonably apportion among the
applicable tenant(s) of the Building taking into consideration the usage
and square footage of the respective tenant(s). Lessee shall pay Lessor
the amount so billed within fifteen (15) days of such
statement.
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11.
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Indemnity. Lessee during the
term of this lease will indemnify Lessor against and hold Lessor harmless
from all claims, demands and/or causes of action including all costs,
expenses and attorneys fees of Lessor incident thereto for (1)
injury to or death of any person or loss of or damage to any
property, including the Premises, (2) failure by Lessee to perform any
covenant required to be performed by Lessee hereunder, (3)
failure to comply with any requirements of any governmental
authority, (4)
any mechanic's lien or security agreement filed against the
Premises, any equipment therein or any materials used in the construction
or alteration of any building or improvement thereon, where such claims,
demands, andlor causes of action arise from or are incidental to the use
of the Premises by Lessee, its officers, agents, servants, employees
and/or invitees.
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12.
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Insurance. Lessee agrees that it
will, at its cost and expense, obtain and keep in force and effect in the
names of both Lessor and Lessee, as their respective interests may appear,
general liability insurance against any and all claims for personal injury
or property damage occurring in, upon or about the Premises during the
term of this lease. Such insurance shall be maintained for the purpose of
protecting Lessor and Lessee pursuant to the indemnity contained in the
foregoing Section 11, but shall not be in satisfaction of the indemnity
obligations stated herein, and shall have limits of liability of not less
than One Million Dollars ($1,000,000) for injuries to any number of
persons in any one accident or occurrence or for damage to property in any
one accident or occurrence. Lessee will furnish to Lessor appropriate and
acceptable evidence of its compliance with the provisions of this
paragraph, such as certificates of insurance or copies of the policies.
Such certificates or policies shall provide that such insurance will not
be cancelled or materially amended unless fifteen (15) days prior written
notice of such can- cellation or amendment is given to Lessor. The minimum
limits of the policies of insurance required to be carried by Lessee under
this Lease, shall be subject to increase for the remaining term, if
Lessor, in the exercise of its reasonable judgment shall deem the same
necessary for its adequate protection. Within sixty (60) days after demand
therefor by Lessor, Lessee, shall furnish Lessor with evidence that it has
complied with such demand for increased insurance.
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13.
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Eminent Domain. In
the event the entire Premises, or such portion thereof as will make
the Premises unsuitable for the purposes leased, shall be taken by eminent
domain or threat of eminent domain, the term of this lease shall terminate
on the date Lessee is required to surrender possession. In
the event that only a part of the Premises shall be so taken, then
(i) if substantial structural alteration or reconstruction of the
improvements upon the Premises shall, in the reasonable opinion of Lessor
be necessary or appropriate as a result of such taking, Lessor may, at its
option, terminate this lease as of the date Lessee surrenders possession
of such portion of the Premises by notifying Lessee in writing of such
termination within sixty (60) days following the date on which Lessor
shall have received final notice of such taking, or (ii) if Lessor does
not elect to terminate this lease as aforesaid, this lease shall be and
remain unaffected by any such taking, except that the rent shall be
equitably abated in the proportion that the taken premises bears to the
entire Premises. In
the event of termination of this lease as hereinabove provided,
rental and other charges shall be paid to the date Lessee surrenders
possession and any such payments made beyond that date shall be refunded
by Lessor to Lessee. In
the event of any taking, in whole or in part, by eminent domain
proceedings or threat of eminent domain proceedings, the entire award
shall be the property of the Lessor. Notwithstanding the foregoing
provision, Lessee shall have the right to make a separate claim with the
condemning authority for the value of Lessee's moving or relocation
expenses, provided, however, that such separate claim shall not reduce or
adversely affect the amount of Lessor's award.
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14.
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Fire or Other Casualty Losses.
In
the event the Premises are damaged or destroyed or rendered
partially untenantable for their then use by fire or other casualty
without the fault of Lessee, Lessor shall repair andlor rebuild the same
as promptly as possible. Lessor's obligation hereunder is merely to
restore the Premises to substantially the same condition as existed
immediately prior to the happening of the casually and shall not extend to
the repair or replacement of any improvements, additions, fixtures,
installations or exterior signs of the Lessee. If as a result of such
partial destruction or damage there is substantial interference with the
operation of Lessee's business in the Premises, the rent payable under
this lease shall be abated in the proportion that the portion of the
Premises destroyed or rendered untenantable bears to the total Premises.
Such abatement shall continue for the period commencing with such damage
or destruction and ending with the completion by the Lessor of the work of
repair and/or reconstruction, if Lessor is obligated to complete such
work. If the damage or casualty was caused by the fault of the Lessee,
there shall be no abatement of rent.
Notwithstanding
the foregoing, in the event that fifty percent (50%)
or more of the Premises or fifty percent (50%)
or more of the buildings situate on the Premises are destroyed or
rendered untenantable by fire or other casualty, Lessor shall have the
option to terminate this lease effective as of the date of such casualty
and retain the insurance proceeds by giving to the Lessee within
forty-five (45) days after the happening of such casualty written notice
of such termination. If Lessor does not elect to terminate this lease,
Lessor shall repair and/or rebuild the Premises as promptly as possible as
set forth above, subject to any delay from causes beyond its reasonable
control and the terms of this lease shall continue in full force and
effect, subject to equitable abatement of rent as set forth
above.
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15.
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Assignment or Subletting. Lessee
shall not assign, transfer, mortgage, or pledge this lease and will not
sublet the Premises or any part thereof without first obtaining the
Lessor's written approval. Lessor reserves the right to sell its interest
in the Premises and to assign or transfer this lease upon the condition
that in such event this lease shall remain in full force and effect,
subject to the performance by Lessee of all the terms, covenants and
condition on its part to be performed, and upon the further condition that
such assignee or transferee (except an assignee or transferee merely for
security) agrees to be bound to perform all terms, covenants and
conditions of this lease. Upon any such sale, assignment or transfer,
other than merely as security, Lessee agrees to look solely to the
assignee or transferee with respect to all matters in connection with this
lease and Lessor shall be released from any further obligations
hereunder.
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16.
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Events of Default. In the event
that the rent, or any part thereof, of any additional rental or other
payment shall not be paid on any day when such payment is due and such
default shall continue for a period of ten (10) days after written notice
by Lessor to Lessee; or if Lessee should fail in the performance of,
breach or permit the violation of any of the covenants, conditions, terms,
or provisions contained in this lease which on the part of the Lessee
ought to be observed, performed or fulfilled and shall fail to cure or
make good such failure, breach or violation within thirty (30) days after
written notice and demand from Lessor; or if the Demised Premises or any
part thereof shall be abandoned; or if Lessee shall be dispossessed
therefrom by or under the authority of anyone other than Lessor; or if
Lessee shall file any petition or institute any proceeding under an
insolvency or bankruptcy act (or any amendment or addition thereto
hereafter made) seeking to effect an arrangement or its reorganization or
composition with its creditors; or if in any proceedings based on the
insolvency of Lessee or relating to bankruptcy proceedings, a receiver or
trustee shall be appointed for Lessee or the Demised Premises and be not
discharged within ninety (90) days; or if the Lessee's estate created
hereby shall be taken in execution or by any process of law; or if Lessee
shall admit in writing its inability to pay its obligations generally as
they become due, then, at the option of Lessor, this lease and everything
herein contained on the part of the Lessor to be kept and performed shall
cease, terminate and be at an end, and Lessor shall be entitled to have
again and repossess the Premises as its former estate and Lessee shall be
put out. This remedy of forfeiture shall be deemed cumulative and in
addition to all other remedies provided by law. In
the event Lessor exercises its option to terminate this lease,
repossess the Premises and put Lessee out as herein provided, this shall
not relieve Lessee from its obligations to pay rent provided to be paid
herein for the remainder of the term of this lease and Lessee shall remain
liable to Lessor for any costs or expenses incurred by Lessor in reletting
the Premises and for the difference between the rent received upon such
reletting and the rent herein specified to be paid by Lessee for the term
hereof.
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17.
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Surrender of Premises. Upon
expiration of the term of this Lease or any renewal term, or the sooner
termination of this Lease or repossession of the Premises as herein
provided, the Lessee shall peaceably surrender possession of the Premises
in as good order and condition as they now are, reasonable wear and tear
excepted, and shall deliver all keys to the Premises to
Lessor.
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18.
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Right of Access of the Lessor.
The Lessee further covenants and agrees that the Lessor may have access to
the Demised Premises at all reasonable times and upon reasonable notice
for the purpose of the examining or exhibiting the same for
sale.
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19.
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Notices. All notices permitted
or required to be given hereunder shall be effectual if in writing signed
by the party given notice and sent by certified or registered US.
mail, postage prepaid, to the other parties at the following
addresses:
Lessor: Xxxx Xxxxxx Xxx 0000
Xxxxxxxxxx, Xxxx Xxxxxxxx 00000
Lessee:
Xxxxxxxxxx, Xxxx Xxxxxxxx 00000
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20. |
Broker.
Lessee and Lessor covenant, warrant and represent that there was no
broker instrumental in consummating this lease and that no conversations
or prior negotiations were held with any broker concerning the renting of
the Demised Premises. Lessee and Lessor each agree to hold the other
harmless against any claim for brokerage commission arising out of any
conversations or negotiations had by Lessee or Lessor with any
broker.
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21. |
Title and
WarrantyISubordination. Lessor covenants and agrees with Lessee
that Lessor is the lawful owner of the Premises and that they are free and
clear of all other liens, claims and encumbrances whatsoever, except the
permitted encumbrances described below, zoning requirements, covenants,
conditions, easements and restrictions of record and non- delinquent taxes
and assessments, and Lessor will defend the same against all other claims
whatsoever. Lessor further covenants and agrees that Lessee by paying the
rents and observing and keeping the covenants of this lease on its part to
be kept, shall peaceably and quietly hold, occupy and enjoy the Premises
during the term herein created, or any extension.
Upon
request by the Lessor, Lessee shall subordinate its rights hereunder to
the lien of any mortgage or deed of trust, or the lien resulting from any
other method of financing or re- financing, now or hereafter in force
against the Premises, and to all advances made or hereafter to be made
upon the security thereof and will attorn to the mortgagee or beneficiary
or their assigns in the event of foreclosure; provided, however, that a
condition precedent to Lessee's attornment and requirement to subordinate
hereunder shall be that Lessee, upon any default in the terms of such
financing by Lessor, shall have the right to pay the rental due hereunder
directly to the mortgagee, trustee or beneficiary of such deed of trust or
other persons to whom Lessor may be obligated under such financing and, so
long as Lessee does so pay the rentals as herein provided and perform all
of its obligations pursuant to this lease, this lease and all Lessee's
rights and options hereunder shall remain in full force and effect as to
such mortgagee, trustee or beneficiary or other financing obligee of
Lessor. Lessee shall, upon request of any party-in- interest, execute
within ten (10)
days of Lessee's receipt, such instruments or certificates to carry
out the intent of this paragraph. Provided, however, that nothing
contained in such instruments or certificates required by Lessor or other
party-in-interest shall be in derogation of any rights granted to Lessee
hereunder, nor expand Lessee's obligations hereunder.
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22.
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Zoning; Permits. Anything
elsewhere in this Lease to the contrary notwithstanding, this Lease and
all terms, covenants and conditions hereof are in all respects subject and
subordinate to all zoning restrictions affecting the Premises, and the
Lessee shall be bound by such restrictions. The Lessor does not warrant
that any licenses or permits which may be required for Lessee's business
to be conducted on the Premises will be granted, or if granted will be
continued in effect or renewed. Any failure to obtain licenses or permits
or any revocation thereof or failure to renew shall not release Lessee
from continuing performance of this Lease.
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23.
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In
the event the Lessor shall fail for a period of thirty (30) days
after written notice to comply with, keep and perform any of the
agreements herein contained on its part to be complied with, kept or
performed, then at the option of
the Lessee this lease may be immediately terminated, but without
prejudice to any right of action or remedy which might otherwise be used
by Lessee to enforce its lawful rights in relation to any antecedent
breach or covenant or agreement herein contained. Waiver of any default
shall not be construed as a waiver of any subsequent default or condition
of the lease to which such default related.
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24.
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Miscellaneous.
a. Wherever the words "Lessor" and "Lessee" appear in this lease, they
shall include the parties and their respective sublessee heirs, devisees,
executors, administrators, successors and assigns, and the provisions of
this agreement are binding upon them. Those words as may be used herein,
shall be construed to include the plural as well as the singular; and the
necessary grammatical changes required to make the provisions apply to
either corporations, partnerships, other entities, or individuals,
masculine or feminine, shall in all cases be assumed as though fully
expressed. The neuter gender has been used herein for convenience
only.
b. This
lease expresses the entire agreement between the parties hereto. NO
amendments, modification, or waiver of any provision hereof shall be valid
unless in writing and signed by all of the parties
hereto.
c. This
agreement shall be construed in accordance with the laws of the State of
West Virginia.
d.
If
any provisions or paragraphs or part thereof of this agreement are held
invalid or unenforceable, such invalidity or unenforceability shall not
effect the validity or enforceability of the other portions hereof, all of
which provisions are hereby declared severable.
e.
This
lease shall not be recorded. However, the parties hereto mutually agree,
upon the written request of either one to the other, to execute a
memorandum of this lease in recordable form for filing and recording in
the Office of the Clerk of the County Commission of the county in which
the Demised Premises are located.
IN
WITNESS WHEREOF, the parties do hereunto set their hands to
multiple copies hereof, each of which shall constitute an original, by
their respective officers thereunto duly authorized all as of the day and
year hereinabove set forth.
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Dated: November 1st,
2008
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LESSOR:
ADJ
CORP.,
a
West Virginia corporation
By: /s/Xxxx Xxxxx
Its:
Secretary
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Dated: November 1st,
2008
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LESSEE:
CHAMPION PUBLISHING, INC.,
a West Virginia corporation
By: /s/Xxxxx X. Xxxxxx
Its: President
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