PHRASES.
"HEREIN", "HEREBY",
"HEREUNDER", "HEREOF", "HEREINABOVE", "HEREINAFTER", AND OTHER EQUIVALENT WORDS
AND PHRASES REFERS TO THIS LEASE AGREEMENT AND NOT SOLELY TO THE PARTICULAR
PORTION THEREOF IN WHICH ANY SUCH WORD IS USED.
THE DEFINITIONS ACT FORTH IN
SECTION 1.1 HEREOF INCLUDE BOTH SINGULAR AND PLURAL. WHENEVER USED HEREIN, ANY
PRONOUN SHALL BE DEEMED TO INCLUDE BOTH SINGULAR AND PLURAL AND TO COVER ALL
GENDERS.
3
ARTICLE II
DEMISING CLAUSES; DURATION OF LEASE TERM;
RENTAL PROVISIONS
SECTION 2.1
LEASE OF PREMISES.
SUBJECT TO THE TARNS AND PROVISIONS
HEREINAFTER SET FORTH, AND IN CONSIDERATION OF THE RENT TO BE PAID BY THE
COMPANY AND IN CONSIDERATION OF THE COVENANTS AND AGREEMENTS HEREIN CONTAINED TO
BE KEPT AND PERFORMED BY THE COMPANY, THE CITY DOES HEREBY LEASE, DEMISE AND LET
UNTO THE COMPANY, SUBJECT TO PERMITTED ENCUMBRANCES, AND THE COMPANY DOES HEREBY
HIRE AND TAKE FROM THE CITY, SUBJECT TO PERMITTED ENCUMBRANCES, FOR THE USES AND
PURPOSES HEREINAFTER SET OUT, A PARCEL OF PROPERTY AND ALL IMPROVEMENTS, LOCATED
IN THE CITY OF FORDYCE, DALLAS COUNTY, ARKANSAS, WITH THE SPECIFIC PREMISES
OUTLINED ON EXHIBIT "A", WHICH IS ATTACHED HERETO AND MADE A PART HEREOF (THE
"PREMISES") .
TO HAVE AND TO HOLD the Premises unto the Company for the team of this Lease
Agreement as hereafter set forth.
SECTION 2.2
TERM.
(A)
INITIAL TERM.
UNLESS SOONER TERMINATED OR
EXTENDED AS HEREINAFTER PROVIDED, THIS LEASE AGREEMENT SHALL BE FOR A PERIOD OF
TWENTY (20) YEARS, COMMENCING ON JANUARY 10, 1997 (THE "COMMENCEMENT DATE") AND
ENDING AN JANUARY 10, 2017.
(B)
OPTION TERMS.
PROVIDED THE COMPANY IS NOT THEN IN DEFAULT, THE
CITY HEREBY GRANTS TO THE COMPANY THE OPTION TO EXTEND THE TERM OF THIS LEASE
AGREEMENT FOR TWO (2) ADDITIONAL PERIODS.
THE COMPANY MAY EXERCISE THE FIRST
OPTION FOR FIVE (5) YEARS ("FIRST OPTION TERM") BY GIVING THE CITY WRITTEN
NOTICE NOT LATER THAN TWELVE (12) MONTHS BEFORE THE EXPIRATION OF THE IS INITIAL
TERM.
THE COMPANY MAY EXERCISE THE SECOND OPTION FOR FOUR (4) YEARS ("SECOND
OPTION TERM") BY GIVING THE CITY WRITTEN NOTICE NOT LATER THAN TWELVE (12)
MONTHS BEFORE THE EXPIRATION OF THE FIRST
OPTION TERM. TIME IS OF THE ESSENCE
WITH RESPECT TO THE COMPANY'S EXERCISE OF THOSE OPTIONS.
SUCH RENEWALS SHALL BE
ON THE SAME TERMS AND CONDITIONS AS CONTAINED HEREIN EXCEPT THAT THE ANNUAL BASE
RENT FOR BOTH OPTION TERMS SHAL1 BE NINE THOUSAND NINE HUNDRED EIGHTY-FOUR AND
00/100 ($9,984.00), PAYABLE IN EQUAL MONTHLY INSTALLMENTS OF EIGHT HUNDRED
THIRTY-TWO AND 00/100 DOLLARS ($832.00).
SECTION 2.3
RENT.
(A)
THE COMPANY AGREES TO PAY TO THE CITY,
WITHOUT DEMAND, DEDUCTION OR SET-OFF, EXCEPT AS PROVIDED IN THIS LEASE
AGREEMENT, AN INITIAL ANNUAL BASE RENTAL AT THE RATE OF ONE HUNDRED THIRTEEN
THOUSAND ONE HUNDRED NINETY-SIX AND 00/100 DOLLARS ($113,196.00) PER ANNUM,
PAYABLE IN EQUAL MONTHLY INSTALLMENTS ON THE TENTH DAY OF EACH CALENDAR MONTH,
COMMENCING FEBRUARY 10, 1997, DURING THE TERM OF THIS LEASE AGREEMENT IN THE
AMOUNT OF NINE THOUSAND FOUR HUNDRED THIRTY-THREE THOUSAND AND 00/100
($9,433.00).