EXHIBIT 10.7
STANDARD BUSINESS LEASE
THIS AGREEMENT, made and executed this 6th day of July, 1994, by and
between E. Xxxxxxx Xxxxxx, hereinafter called the LANDLORD, and Xxxxx Sporting
Goods, Inc. ID # 54 - 0789426 hereinafter called the TENANT.
I. That for and in consideration of the mutual agreements and covenants
herein contained, the Landlord does hereby lease and demise unto the Tenant, and
the Tenant does hereby lease and take from the Landlord, the following described
premises:
Premises located in Henrico County, and more particularly described as
0000 Xxxxxxxx Xxxxxx, Xxxxxxxx, XX 00000; which improvements are sometimes
referred to as the facility, and which property and improvements, being
sometimes hereinafter referred to as the demised premises.
To have and to hold the demised premises for a term of Ten (10) Years +
commencing on the 15th day of February, 1995, and fully ending at midnight on
the last day of February, 2005. The base or minimum annual rental for said term
shall be SEE RENT SCHEDULE Dollars per annum payable without deduction or demand
in monthly installments of SEE RENT SCHEDULE Dollars each. The first month's
rent is free such installments are due and payable on the execution of this
agreement and the remaining installments are due and payable in advance on the
first day of each ensuing month to and at the office of Landlord, 00000
Xxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxx, 00000 or such other place as the Landlord
may direct in writing. THERE SHALL BE A LATE CHARGE OF TEN PERCENT (10%) DUE AND
OWING ON ANY MONTHLY INSTALLMENT OF BASE OR MINIMUM ANNUAL RENTAL OR ADDITIONAL
RENTAL RECEIVED BY LANDLORD MORE THAN FIVE (5) DAYS AFTER THE DUE DATE. In the
event it shall be necessary to assess the late charge on two occasions during
any one lease year, it shall be lawful for the Landlord at its election, to
terminate this lease as though there had been a default in the payment of rent.
There shall be a twenty-five dollar ($25.00) charge for any check received by
the Landlord for base or minimum annual rental or additional rental or
percentage as outlined in this lease which is returned as nonpayable for any
reason.
In the event Tenant opens for business prior to the commencement date as
set out herein, then the term of this lease shall continue for the period
commencing with the date the Tenant opens for business plus the period of the
term as set out herein; and in such event all rental hereunder and all other
charges will commence with the date the Tenant opens for business.
II. TENANT covenants and agrees:
1. That he will pay all water, sewer, gas and electric bills, and other
charges as the same become due and in addition a meter charge for the
installation of a water meter at the time of the signing of this lease. (METER
CHARGE NOT TO EXCEED *50.00.)
USE GOOD ORDER and REPAIR HAZARD INSURANCE
2. That he will use said premise for the full term hereof, for
Warehousing and wholesaling of sporting goods and business offices and for no
other purpose whatsoever; and that he will not use, nor permit said premises or
any part thereof to be used for any disorderly or unlawful purpose.
3. (a) That he has received the facility and all fixtures, equipment and
appurtenances thereto in good condition subject to tenants inspection and
approval and shall keep in good repair, at its own expense, during the term of
this lease, both the exterior and interior of the facility, as well as all of
the entrances, on the demised premises, and also will keep in good repair, at
its own expense, the heating equipment, water supply system, sewage disposal
system, electric fixtures and systems, glass, air conditioning machinery,
intercommunication system, the plumbing and any and all fixtures and
appurtenances on the demised property. The Landlord shall not be called upon to
spend any money or be responsible for replacement, repairs, upkeep or
maintenance of any type during the term of the lease, the obligation for all of
the aforesaid being exclusively that of the Tenant.
LANDLORD'S MAINTENANCE
If there is a Landlord owned air conditioning and heating system serving
the premises, the Landlord will contract for preventive maintenance checks,
filter changes, repairs and replacements, and service. The Tenant agrees to pay
the cost of such preventive maintenance calls, filter changes, and repairs and
replacements for the units serving the Tenant's premises. The bills and
invoices may be delivered directly to the Tenant by the contractor providing
such services. At the end of the term or any renewals hereof, Tenant shall
surrender the
WPI-Form 1-87 SBL 1
premises in good condition, normal wear and tear incident to
Tenant's [ILLEGIBLE], fire casualty or other causes beyond
control of Tenant, excepted. Landlord shall not be chargeable
with any liability by reason of negligence or otherwise for
not making repairs to the property hereby leased and shall not
be liable for any damages whatsoever in connection with the
premises whether caused by the use of the premises, water,
electricity, gas, heating equipment, air conditioning
equipment, or otherwise to persons or property that the Tenant
or any other person or persons may sustain on or about the
demised premises. Said premises are to be used solely in
accordance with the terms of this lease, and the Tenant shall
take the same precautions to protect persons and property and
shall have the same responsibilities with respect to the
demised premises, as would be required of the Tenant if the
demised property were its own. The Tenant shall indemnify,
protect and hold Landlord harmless against any and all claims
and expenses including attorney's fees which might arise
against the Landlord by reason of the use of the demised
premises during the term hereof, except failure by Landlord to
perform its obligations under the lease, after commencement of
lease.
(b) Any improvement or changes including enlargements to the demised
premises except those in Exhibit "B" shall be made at the expense of the Tenant.
BEFORE MAKING ANY ALTERATIONS OR IMPROVEMENTS, THE WRITTEN CONSENT OF THE
LANDLORD SHALL BE FIRST OBTAINED, which consent shall not be unreasonably
withheld. All repair, improvements or alterations on the demised premises shall
be deemed to be a part of the realty and shall become the property of the
Landlord at the termination of this lease except those expressly agreed to in
writing as not being a part of the realty. Any fixtures or equipment not
permanently attached to the facility such as mechanical equipment and material
handling furnished and installed by Tenant shall not be deemed to be part of the
realty. No improvements or changes shall be made without obtaining all necessary
permits.
4. That he will not permit or do anything which would increase the rate
of fire insurance upon said premises or any other premises owned or controlled
by Landlord, and should said rate be increased by reason of Tenant's use of said
premises, Tenant will pay to Landlord the difference in the fire insurance
premiums over and above that existing, as of the date of this agreement when and
as same become due and payable;
SIDEWALKS 5. That he will keep the sidewalks, if any,
immediately abutting said premises free from obstructions of
all nature, properly swept, and will remove snow and ice
therefrom promptly after its accumulations.
INSPECTION 6. That he will allow Landlord or his agent to have
access to the demised premises at any reasonable time for the
purpose of inspection, or in the event of fire or other
property damage, or for the purpose of making any repairs
Landlord considers necessary or desirable.
NOTICE OF 7. That he will give Landlord prompt notice of any
DEFECT defects or breakage in the structure, equipment, or fixtures
of said premises.
ORDINANCES 8. That he will, at his cost, promptly comply with
and and carry out all orders, requirements, or conditions if
REGULATIONS Tenant is now or hereafter, imposed upon him by the
ordinances, laws, and/ or regulations of the municipality in
which said premises are located, or by any of its various
departments, to be done or performed during the term of this
agreement; insofar as they are occasioned by or required in
the conduct of the business of Tenant.
SIGNS 9. That he will place no signs, awnings, or curtains
on any part of the exterior of said premises or on any show
window, nor paint or improve in any manner whatsoever any
brick or stone work, cornice work, mill work, or iron work on
the said premises without the written consent of Landlord
first had and obtained. *Which consent may not be unreasonably
withheld or delayed.
WPI-Form 1-87 SBL 2
[Paragraphs 10-17 Intentionally Deleted]
[See Addendum II No. 1]
18. That he shall maintain the demised premises in a
modern first-class, up-to-date manner.
CONTINUOUS 19. [Intentionally Deleted]
OPERATION
DUTY TO 20. That he will at the end of this lease or any renewal
REMOVE or extension or sooner termination thereof, remove from the
demised premises any ashes, dirt, rubbish or any refuse matter
and leave same broom clean. Tenant shall have the right to
remove any of its machinery or equipment attached to the
premises provided it repairs any damages caused by such
removal or pays Landlord the cost of repairing or replacing
any portion of the demised premises damaged by such removal.
All goods and property on the demised premises left after
Tenant's removal shall be liable to distress, and may be
distrained and sold for any rent in arrears, cost of repairs
to the demised premises or fixtures thereof made necessary by
misuse or neglect on the part of the Tenant, or cost of
removing rubbish, refuse matter, or anything else found upon
the premises.
RULES 21. That he will abide by and use his best efforts to
cause his agents and employees to abide by any rules and
regulations set out in this lease.
22. The Landlord reserves the right to inspect the
demised premises at all reasonable times and show the property
through agents or otherwise to bonafide purchasers, or within
one hundred eighty (180) days of the end of the original term
or any extended term, or at any time after a notice of
termination by either party to prospective tenants during
which period "For Rent" or "For Sale "signs may be exhibited.
Reasonable notice of Landlord's desire to make such an
inspection or to show the property shall be given to Tenant,
and it shall be conducted so as not to unreasonably interfere
with the conduct by Tenant of its business.
III. LANDLORD covenants and agrees:
QUIET 1. That Tenant, paying the rent hereby performing and
POSSESSION: observing the several covenants hereof, may peacefully hold
and enjoy the said premises throughout the duration of this
lease without any interruptions by the Landlord, his heirs, or
assigns, or any person lawfully claiming through him.
SECURITY 2. That Landlord has received from Tenant the sum of $
Five Thousand no --- Dollars ($ 5,000.00), to be held as
collateral security for the payment of any rentals and any
other sums of money for which Tenant shall become liable to
Landlord under this lease, and for the faithful performance
by Tenant of all other covenants and agreements made herein.
If Tenant shall default with respect to any covenant duty, or
obligation of Tenant under this Lease, then the Security
Deposit or any part thereof may be applied by Landlord (but
Landlord shall not be obligated to do so) to the damages
sustained by Landlord by reason of any such default or to
indebtedness owing by reason of any failure of Tenant to make
any required monetary payment under this Lease. No such
application shall be construed as an agreement to limit the
amount of Landlord's claim or as a waiver of any damage or
release of any indebtedness, and any claim of Landlord under
this Lease not recovered in full from the Security Deposit
shall remain in full force and effect. At any time or times
when Landlord has made any such application of all or any part
of the Security Deposit, Landlord shall have the right (but
not the obligation) at any time thereafter to request that
Tenant pay to Landlord a sum or sums equal to the amounts so
applied by Landlord so that Landlord will always be in
possession of a sum equal to the amount of the Security
Deposit stated above. Tenant shall make each such requested
remittance within ten (10) days following such request from
Landlord and each such remittance received by Landlord shall
thereupon constitute a part of the Security Deposit subject to
the terms and provisions hereof. Failure to make any such
requested remittance within such ten (10) day period may be
treated by Landlord as a failure by Tenant to make timely
payment of rent and as an Event of Default; said deposit to be
returned to Tenant after the termination of this lease
provided. Tenant shall have made all such payments and
performed all such covenants and agreements. SEE ADDENDUM II
NO. 2
IV. LANDLORD and TENANT mutually covenant and agree:
DEFAULT 1. If Tenant should default in the payment of base or
minimum rent or additional rent all as herein referred to, or
any part hereof, when the same falls due under the provisions
hereof, and such default shall continue for ten (10) days
after written notice thereof to Tenant, then it shall be
lawful for Landlord, at its election, to declare said term
ended and to re-enter the demised premises, or any part
thereof, either with or without process of law and to expel,
remove and put out Tenant, and all persons occupying under it,
using such force as may be necessary in so doing, and to
repossess the demised premises; provided, that the foregoing
provisions for the termination of this lease agreement shall
not operate to exclude or suspend any other remedy at law or
in equity to which Landlord may be entitled, or for the
recovery of said rent due hereunder; and provided further that
the premises may be relet by Landlord for such rent, and upon
such terms as the Landlord may see fit, and if a sufficient
sum shall not be thus realized monthly, after paying the
expenses of such reletting (including real estate commissions
and attorney's fees), to satisfy the rent hereby reserved.
Tenant agrees to satisfy and pay monthly all deficiencies
arising during each month of the remaining term of this lease;
AND PROVIDED FURTHER THAT IN ADDITION TO ALL REMEDIES NOW OR
HEREAFTER AFFORDED IN THIS LEASE OR BY LAW, OR IN EQUITY FOR A
DEFAULT IN RENT, THE LANDLORD SHALL CHARGE AND THE TENANT
SHALL PAY, INTEREST ON THE UNPAID BASE OR MINIMUM RENTAL OR
ADDITIONAL RENTALS AT THE THEN PRIME RATE OF INTEREST, OR 10%,
WHICHEVER IS HIGHER, FOR THE PERIOD BEGINNING TEN (10) DAYS
AFTER THE DUE DATE FOR EACH AMOUNT OF RENT DUE, UNTIL PAID IN
FULL.
DEFAULT IN In case the Tenant shall fail or neglect to keep and
PERFORMANCE perform any of the covenants and agreements in this lease
other than the failure to pay rent or other monies, the
Landlord, in addition to all other remedies now or hereafter
afforded by law or in equity, may at its election, and after
twenty (20) days written notice to the Tenant to cure a
specified default, perform, if Tenant has not such covenants
or agreements on behalf of Tenant or make good any default,
and any amount or amounts which the Landlord shall advance on
that behalf shall be considered as additional rent payable and
shall be repaid by Tenant to the Landlord on demand, together
with interest thereon from the date the advance is made at the
then prime rate of interest or at the rate of ten (10%)
percent per annum, whichever is higher. If the default is of
such a character that same cannot be deemed cured within
twenty (20) days after written notice from Landlord, such
default shall nevertheless be deemed cured if Tenant takes
prompt steps within said twenty (20) day period to cure same
and prosecutes such steps with due diligence and continuity.
INSOLVENCY 2. If a petition in bankruptcy shall be filed by the
Tenant or the Tenant shall be adjudicated bankrupt or if the
Tenant shall make a general assignment for the benefit of
creditors or if any proceeding based upon the insolvency of
the Tenant, a receiver of the property of the Tenant shall be
appointed and shall not be discharged within sixty (60) days
after such appointment or if Tenant shall abandon or vacate
the premises for a period of thirty (30) days (except if
Lessee vacates the premises due to fire or other causes beyond
its control), then the Landlord may terminate this lease by
giving written notice to the Tenant of its intention so to do;
but neither bankruptcy, nor insolvency, nor an assignment for
the benefit of creditors nor the appointment of a receiver,
3
nor abandonment or vacation of the premises shall affect or
terminate this agreement so long as the covenants on the part
of the Tenant to be performed are being performed by the
Tenant or someone claiming under it or the then owner of the
demised term.
DESTRUCTION OF 3. If the demised premises be destroyed or damaged by
PREMISES fire, or other casualty, so as to render it untenantable, rent
shall xxxxx, and Landlord shall have the option to elect to
rebuild or not by giving notice of its election in writing to
Tenant within thirty (30) days after such occurrence. If
Landlord elects to rebuild it shall do so within 120 days of
payment of insurance proceeds applicable to this premise. If
Landlord elects not to rebuild, this agreement to lease shall
terminate as of the date of such damage or destruction without
further liability on the part of either party to the other. If
the demised premises are only partially untenantable, there
shall be a pro-rata reduction in the rent for such time as may
elapse until the demised premises are restored to a condition
so as to be of as much value to the Tenant for its use as that
damaged, and Landlord shall restore such damages as
expeditiously as practicable. Unless five(5) years of the
original term or renewal term remains or unless the Tenant
renews so that there is, Landlord shall have the same options
and rights as if the demised premises were fully untenantable.
In the event of damage or destruction by fire or other
casualty, all monies which Tenant or Tenant's insurer is
required to pay Landlord under this agreement to lease shall
be payable to Landlord or such lending institution or
institutions as Landlord may designate.
4. If the demised premises shall be partially condemned
by public authorities, Landlord shall be in no way responsible
for any resulting inconveniences or damages to Tenant, nor
shall there be any reduction in the rent unless as a direct
result of such occurrence part of the demised premises shall
be rendered untenantable, in which case there shall be a
reasonable reduction in the rent for such time as may elapse
until the demised premises are again of as much value to the
Tenant for its use as the one affected by such occurrence, and
Landlord shall at its option proceed to make such repair and
alterations or take such action as may be necessary to make
the demised premises of as much value to Tenant as the one
existing prior to such occurrence, subject, however, to the
land remaining being sufficient for and reasonably susceptible
to that purpose. If the condemnation be total, or the
demolition of the demised premises, this agreement of lease
shall terminate without any further liability on the part of
either party to the other. Tenant shall not be entitled to
participate in any condemnation award or settlement in lieu of
same.
5. When used in this lease, the terms "partially
untenantable" and "partially condemned" shall mean an
occurrence which deprives the Tenant of less than twenty-five
percent (25%) of the use of the demised premises. If the
parties are unable to agree on the extent of the effect of any
such event on Tenant within twenty-one (21) days after notice
given by either party to the other, the matter shall be
submitted to binding arbitration under the rules and
regulations of the American Arbitration Association and the
costs divided between the parties.
LANDLORD 6. Landlord shall not be construed or held to be a
NOT A partner or associate of the Tenant in the conduct of his
PARTNER business; it being expressly understood that the relationship
between the parties hereto is and shall remain at all times
that of Landlord and Tenant.
7. The Landlord grants Tenant after first obtaining
approval, approval not to be unreasonably withheld or
delayed, in writing the right assign or sublease the demised
premises or any part thereof, but it is agreed between the
parties that in the event of any subleasing or assignment the
Tenant as well as his assignee or subleasee shall remain bound
to all the terms and conditions of this lease including but
not limited to the uses set out herein. The transfer or sale
of a majority share of the shares of stock of a corporate
Tenant, assignee or subleasee, shall be considered to be an
assignment or sublease of the demised premises which is
subject to the provisions of this paragraph. Landlord may
convey the demised premises and assign this agreement to any
person, firm or corporation, but any such conveyance and
assignment shall be subject to all the terms and conditions
hereof. If this lease is assigned or there is a subletting,
Tenant agrees to pay Landlord the sum of $250.00.
See addendum II 8. Subject to the renewal provisions provided in Article
PARAGRAPH 11 1, page 1, should the Tenant hold its possession at expiration
of the original term or any extended term of this lease, or
after the termination of the lease, such holding over shall
not be deemed to extend the term or renew same, but the
tenancy thereafter shall continue on a month to month term
upon all the covenants and conditions herein set forth. The
minimum rent for such holdover period shall be four (4) times
the monthly rate or rental in effect for the last month of the
term. "Hold its possession" is defined to mean when the Tenant
remains in possession of the demised property after either
party hereto has given notice of its intention to terminate
this lease pursuant to any provision of this lease.
9. If the Landlord shall be required by law to xxxxx any
nuisance on the demised premises or to make any improvements
or repairs which are not required of Landlord under the terms
of this agreement, the Tenant will pay all costs and expenses
thereof except for environmental contamination prior to the
commencement of this lease or any other conditions prior to
the commencement of this lease. If Tenant fails or refuses to
xxxxx such nuisance, Landlord may do so at tenant's cost and
expense, Landlord shall give ten (10) days written notice to
Tenant before having the work done and the materials furnished
at Tenant's expense. Tenant shall comply with all lawful
requirements of the local Health Board, Police and Fire
Departments and municipal authorities respecting the manner in
which it uses the demised premises and will have done at its
expense any work in or upon the said premises which may be
required or ordered by any law or lawful authority which is
not the obligation of the Landlord. If Tenant after thirty
(30) days notice that such work has been thus required or
ordered and shall have failed or refused to have it done,
Landlord may do so at Tenant's expense. Tenant covenants and
agrees the demised premises shall not be used or permitted to
be used for any purpose in violation of any Federal, State or
Municipal law. Any advances made by Landlord for Tenant's
account under this paragraph shall be considered as additional
rent and shall be due and payable the first of the month
following the month in which they were made.
10. The failure of either party to insist, in any one or
more instances, upon strict performance of any of the
covenants of this agreement, or to exercise any option herein
contained, shall not be construed as a waiver, or a
relinquishment for the future, of such covenant or option; but
the same shall continue and remain in full force and effect.
The receipt by Landlord of rent, with knowledge of the breach
of any covenant hereof, shall not be deemed a waiver of such
breach, and no waiver by the Landlord of any provision hereof
shall be deemed to have been made unless expressed in writing
and signed by the party so charged with the waiver.
11. Tenant may, at its own expense, and with the written
permission of Landlord, put such signs on the demised premises
as it deems advisable, provided that all requirements as set
forth in an exhibit attached hereto and all local ordinances
and requirements of municipal authorities are complied with.
Liability to others as a result of the construction or
maintenance of said signs shall be solely that of Tenant and
Tenant shall hold Landlord harmless in connection therewith.
Tenant agrees that at the end of the term or any extension
thereof it will remove said signs and place the facility in
the same condition it was in before said signs were attached
hereto.
WPI-Form 1-87 SBL 4
12. Special Covenants:
1. See attached exhibits:
"A" Site Plan
"B" Addendum I
"C" Space Plan
"D" Addendum II
"E" Addendum III
13. All costs of any action taken by Landlord or Tenant
to enforce this lease including attorney's fees of not less
than 25% of any amount claimed by Landlord or Tenant shall
be paid by losing party on demand.
14. The parties agree that if either so desire they will
execute a short form memorandum of lease which either may
record at its own expense.
15. All notices required to be given to Landlord shall,
until Tenant is advised otherwise in writing, be given to
Landlord at 00000 Xxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxx 00000.
All notices required to be given to Tenant shall, until
Landlord is advised otherwise in writing, to be given to
Xxxxxxx X. Xxxxxxxx, President Xxxxx Sporting Goods 0000
Xxxxxxxx Xxx., Xxxxxxxx, XX 00000
ESTOPPEL 16. Within ten (10) days after request therefor by the
CERTIFICATE Landlord or any mortgages or trustee under a mortgage or deed
of trust covering the leased premises, or if, upon any sale,
assignment or other transfer of the leased premises by
Landlord, and estoppel certificate shall be requested from
Tenant. Tenant at its expense shall deliver to Landlord in
recordable form a statement to any proposed mortgagee or other
transferee, or to Landlord certifying any facts that are
then true with respect to this Lease Agreement, including
without limitation (if such be the case) that this Lease
Agreement is in full force and effect, that Tenant is in
possession, that Tenant has commenced the payment of rent,
that there have been no amendments to or modifications of this
Lease Agreement and no prepayment of rental hereunder, and
that there are no defenses or offsets to the Lease Agreement
claimed by Tenant. Any reasonable and necessary cost involved
should be paid by landlord.
17. Neuter pronouns are to be substituted for those of
the masculine form, and the plural is to be substituted for
the singular number, in any place or places herein in which
the context may require such substitution.
18. If the Tenant is an individual, homestead and all
other exemptions are hereby waived.
WPI-Form 1-87 SBL 5
[FLOOR PLAN]
OFFICE/WAREHOUSE
0000 XXXXXXXX XXXXXX
SCALE: 1" = 30'
REV. 11-20-90
EXHIBIT "A"
ADDENDUM I
Landlord agrees to the following:
1. Replace roof.
2. Demolish existing office space to leave approximately 4000 sq. ft.
and build out remaining office space to standard warehouse/office
finish per tenant's space plan and by mutual agreement of tenant and
landlord.
3. Paint exterior of building medium xxxx.
4. Deliver gas heat to warehouse capable of heating warehouse area to
industry standard for bulk warehouse capable of maintaining 55
degrees in temperature on the lease commencement date.
5. Tenant may at his own cost remove overhead doors from west side of
building and replace with masonry brick. Tenant will paint the areas
replaced at his own cost to match the rest of the building. All work
will be completed in a workmanlike manner in keeping with the
existing structure. Landlord shall receive possession of the doors
and hardware upon removal.
6. Insure HVAC in office is inspected and in working order at
commencement of lease.
7. Install sprinkler system.
8. Conform to ADA requirements (up to the mandated 20% of value of
improvements).
9. Adapt existing electrical lighting conduit to provide lighting
consistent with industry standards for bulk warehouse and office
use.
10. Tenant has the right to sublease up to 50% of the premises without
incurring $250.00 charge as mentioned on page four, paragraph seven,
however, all of terms and conditions in paragraph 7, page 4, shall
remain in full force and effect.
11. Tenant shall pay four (4) times the monthly rental rate pursuant to
page four, paragraph eight, only if Landlord obtains a written offer
to lease or letter of intent from another party.
12. Should the Landlord decide to sell the property, and upon receipt of
a written offer acceptable to the landlord to purchase or a letter
of intent to purchase from a party outside of the Wilton Family or
companies, Tenant shall have five (5) business days in which to
elect to purchase upon the same terms and conditions as presented to
the landlord by the party outside the Wilton Family or Companies. In
the event Landlord does not sell, tenant shall retain this right of
first refusal.
13. Tenant shall be obligated to pay up to $500.00 per repair or
replacement for each portion of the HVAC, mechanical, or electrical
system which require repair or replacement.
14. Rent shall escalate at the rate of 3.5% annually. (See rent
schedule)
15. Landlord shall be responsible for roof, downspouts, gutters, and
flashing except for damage caused by tenant or his invitees.
16. Tenant can use the existing sign on top of the building and the
circular sign on the side of the premises, provided usage is
approved by municipal authorities.
EXHIBIT B
A D D E N D U M II
1. The Tenant, at his option, may provide fire and extended insurance coverage
for the property. Said coverage must match or exceed that coverage which is in
place by Landlord. In no event shall Tenant allow said coverage to lapse at any
time. A copy of the policy obtained by the Tenant shall be promptly provided to
Landlord.
2. The $5000 security deposit placed by the Tenant and held by Landlord shall,
over the term of the lease, accrue interest in favor of the Tenant and shall be
returned to Tenant as provided in those stipulations pertaining to the security
deposit described herein.
3. Personal guarantees will not be required and shall lapse after the first
three years of the lease term on November 1, 1997, however, Xxxxx Sporting Goods
Company, Inc., must maintain a debt-to worth ratio of 1.00 to 1.00 or lower and
a minimum tangible net worth of $986,000 which will be confirmed via the
company's annual financial statement. Should either of these conditions not be
met, the personal guarantees would be reinstated for a minimum of one year or
until such time as the company can show that the minimum requirement have been
re-established.
A D D E N D U M III
Landlord has agreed to permit Tenant to place certain of its personal
property and/or fixtures and equipment upon the premises after January 15, 1995
prior to the inception date of the lease for the occupancy of the demised
premises and in consideration for Landlord's permission, Tenant hereby agrees
to:
(1) Comply with all laws, rules and regulations with respect to said
use.
(2) Be responsible for the payment of any and all charges, additions,
changes, and any additional cost to Landlord which may directly or indirectly
arise out of or occur as a result of such prior use.
(3) To save and hold Landlord harmless from any and all claims, demands,
suits, actions, damages, liabilities, losses, costs and expenses, including, but
not limited to, attorneys fees and costs incurred in the defense thereof,
arising from or in any way related to the Tenant's use of the demised premises
prior to February 15, 1995.
(4) Comply with all of the other terms and conditions of the lease
itself.
EXHIBIT - E
RENT SCHEDULE
0000 XXXXXXXX XXXXXX
XXXXX SPORTING GOODS, INC.
Base Rent 95 Year 1 $ 6,198.00/Mo.
96 Year 2 $ 6,415.00/Mo.
97 Year 3 $ 6,640.00/Mo.
98 Year 4 $ 6,870.00/Mo.
99 Year 5 $ 7,112.00/Mo.
00 Year 6 $ 7,361.00/Mo.
01 Year 7 $ 7,619.00/Mo.
02 Year 8 $ 7,886.00/Mo.
03 Year 9 $ 8,160.00/Mo.
04 Year 10 $ 8,447.00/Mo.
This Lease Agreement, executed by the parties in duplicate, merges all the
understanding and agreements between the parties hereto and shall constitute the
entire lease agreement.
WITNESS the following signatures and seals:
ATTEST: LANDLORD
________________________________ By /s/ [ILLEGIBLE]
Secretary ------------------------- (SEAL)
Chairman President
ATTEST: TENANT
________________________________ By /s/ Xxxxxxx X. Xxxxxxxx
Secretary ------------------------ (SEAL)
Xxxxxxx X. Xxxxxxxx
By /s/ C. Xxxxxxx Xxxxxxxx
------------------------ (SEAL)
C. Xxxxxxx Xxxxxxxx
G U A R A N T E E
All obligations of the Tenant hereunder are hereby guaranteed: For 3 Years
SEE ADDENDUM II NO.3 /s/ Xxxxxxx X. Xxxxxxxx
------------------------ (SEAL)
Xxxxxxx X. Xxxxxxxx
/s/ C. Xxxxxxx Xxxxxxxx
------------------------ (SEAL)
C. Xxxxxxx Xxxxxxxx
STATE OF VIRGINIA,
_______________ OF ________________, to-wit:
I, _____________________, a Notary Public in and for the__________________
aforesaid, in the State of Virginia do certify that ___________________________,
whose name as _________________________ of _____________________________________
is signed to the foregoing writing bearing date on the ___________ day of
__________________, 19____, personally appeared before me this day in my said
_____________________, and in the name and on behalf of __________________,
acknowledged the said writing as the act and deed of the said corporation and
that the seal affixed to said writing is the true corporate seal of the said
corporation and that it has been hereto affixed by due authority.
Given by hand this _____________________________________
My Commission expires: _________________________________
_________________________________
Notary Public
STATE OF__________________________________
_______________ OF ________________, to-wit:
I, _____________________, a Notary Public in and for the _________________
aforesaid, in the _________________________ of ___________________ do certify
that ________________________, whose name as ___________________________________
of _________________________________ is signed to the foregoing writing bearing
date on the ___________ day of _______________, 19_____, personally appeared
before me this day in my said ______________________, and in the name and on
behalf of ____________________, acknowledged the said writing as the act and
deed of the said corporation and that the seal affixed to said writing is the
true corporate seal of the said corporation and that it has been hereto affixed
by due authority.
Given by hand this _____________________________________
My Commission expires: _________________________________
_________________________________
Notary Public
WPI-Form 1-87 SBL 6
AGENCY AGREEMENT
The Landlord hereby covenants and agrees with Goodman, Segar, xxxxx, & Xxxxxxx,
Inc that in consideration of its services in procuring this Lease, it shall be
entitled to a commission of four (4%) Percent during the existence of this
Lease, or any continuance or renewal hereof, at the same or different rent, or
with the same or different covenants, or during the occupancy of the premises by
the Tenant or his successors or assigns, and no transfer, assignment, or release
by the Landlord shall affect this contract of agency as herein set forth. It is
especially covenanted that the Agent shall be entitled to said commission on the
base rental collected from the premises, less any legal cost incurred and not
recovered in collecting same, irrespective of whether said rents be collected by
or paid to the Agent, or to the Landlord, or to some other persons, firm, or
corporation. Based on the portion of the rental income subject to commission,
the commission due and payable during the first year of this Lease is $2,727.12
per annum, payable quarterly upon billing. This paragraph shall be binding only
so long as Goodsman, Segar, Hogan, & Xxxxxxx, Inc or successors is active in the
real estate business in the Richmond Metropolitan area.
LANDLORD: E. Xxxxxxx Xxxxxx AGENCY: Goodman, Segar, Xxxxx, & Xxxxxxx
By /s/ [ILLEGIBLE] By /s/ [ILLEGIBLE]
------------------------------- ----------------------------------
Date 9-16-94 Date 9/16/94
AGENT: Xxxxxxx Xxxxxxx
By /s/ Xxxxxxx X. Xxxxxxx
---------------------------------
Date 9-16-94
EXHIBIT D
