Document:

scvl-ex10b_45.htm

Exhibit 10-B

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made and entered into this 16th day of June, 2015 (the "Effective Date"), by and between BIG-SHOE PROPERTIES, LLC, an Indiana limited liability company ("Landlord"), and SHOE CARNIVAL, INC., an Indiana corporation ("Tenant"). 

RECITALS

WHEREAS, Landlord and Tenant are parties to that certain Lease, dated February 8, 2006 (the "Lease"), for Leased Premises located at 15001 N. Highway 57, Evansville, Indiana (all as more particularly defined and described in the Lease); 

WHEREAS, the Leased Premises include Real Estate, Improvements and a Building, all as more particularly defined in the Lease; 

WHEREAS, the Building on the Leased Premises currently contains approximately 409,350 square feet and, pursuant to Section 8(c) of the Lease, Tenant has the right to expand the Building within the Expansion Area of the Leased Premises; 

WHEREAS, in anticipation of expanding the Building, Landlord has obtained certain permits and governmental approvals to perform the preliminary site work and wetlands mitigation required to expand the Building on the Leased Premises (the "Site Work Permits") (the Site Work Permits are described in Exhibit A attached to this Amendment and incorporated herein by this reference as if fully set forth in their entirety); and 

WHEREAS, subject to the terms and provisions of this Amendment, Landlord and Tenant desire to modify and amend the Rent obligations of Tenant under the Lease to include in the Rent due under the Lease certain costs that will be incurred by Landlord to prepare the Expansion Area of the Leased Premises for expansion of the Building. 

NOW, THEREFORE, IN CONSIDERATION of the foregoing recitals and the mutual covenants and agreements contained herein, the adequacy and sufficiency of which are hereby expressly acknowledged by the parties, the Lease shall be amended as follows: 

1. Definitions. All capitalized terms not defined in this Amendment shall have the meanings ascribed to such terms in the Lease. 

2. Expansion Area Improvements; Expansion Area Costs. 

(a) Landlord shall perform the following work and improvements on or about the Expansion Area and/or Real Estate of the Leased Premises: (i) design and engineering of the Expansion Area to accommodate expansion of the Building by an additional 200,000 square feet, to an aggregate area of approximately 609,350 square feet; (ii) in addition to the Site Work Permits, procure demolition, excavation and construction permits in compliance with all applicable laws; (iii) wetlands mitigation as required by applicable laws and in compliance with the Site Work Permits; (iv) installation and construction of storm water management drainage and/or retention systems as required by applicable laws; (v) excavation and soil compaction; (vi) extend (and rough-in) utilities to the building pad on which the expansion of the Building shall be performed, and (vii) building pad construction to accommodate an additional 200,000 square feet of Building area (collectively, the "Expansion Area Improvements"). 

 

 

(b) The Expansion Area Improvements shall be performed by Landlord in a good and workmanlike manner, in compliance with the Site Work Permits and all applicable laws, continuously and expeditiously from commencement through completion, at the sole cost and expense of Landlord and in such a manner as to cause minimal interference with the operations and activities of Tenant at the Leased Premises. Promptly following completion of the Expansion Area Improvements, Landlord shall deliver to Tenant a certificate of completion from the engineer selected by Landlord to oversee the Expansion Area Improvements, certifying to Tenant that the Expansion Area Improvements have been performed in accordance with the Site Work Permits and all applicable laws and the completed building pad will accommodate an expansion of the Building as herein above described (the "Completion Certificate"). The date on which Tenant receives the Completion Certificate is referred to herein as the "Completion Date".  The Completion Date shall occur not later than the earliest date by which the Site Work Permits (each as applicable) require or permit such work to be performed (the "Outside Completion Date"), subject, however, to Force Majeure. In the event the Completion Date has not occurred by the Outside Completion Date, any and all costs associated or in connection with applying for new permits, permit exceptions or otherwise permitting the Expansion Area Improvements (including, but not limited to design, engineering, consulting and legal fees) shall be at the sole cost and expense of Landlord and shall not be included in Expansion Area Costs (as defined herein below). 

For purposes of this Amendment, "Force Majeure" shall mean the party required to perform an act hereunder is hindered or prevented from the performance of such act by reason of strikes, lockouts, failure of power, restrictive governmental laws or regulations, riots, insurrection, war, severe inclement weather or any other reason of a substantially like nature not the fault of the party so hindered in performing work or doing any act required under the terms of the Lease, provided, however, the party so hindered or prevented shall provide written notice of such Force Majeure event within five (5) business days after the initial occurrence of such condition or event. In the event a party delayed by Force Majeure shall provide timely notice of such Force Majeure event, the performance of such act shall be excused for the period of the delay and the period of the performance of any such act shall be extended for a period equivalent to the period of such delay, not to exceed thirty (30) days.  Notwithstanding the foregoing, a change in economic or financial circumstances shall not be an event of Force Majeure. 

(c) The actual and reasonable costs incurred by Landlord to perform the Expansion Area Improvements are herein collectively referred to as the "Expansion Area Costs". The Expansion Area Costs shall include only the actual and reasonable costs incurred by Landlord to perform the Expansion Area Improvements and shall not exceed $1,139,903.00 (the "Maximum Costs") without the express written consent of Tenant. Any Expansion Area Costs in excess of the Maximum Costs and not approved by Tenant in writing prior to incurrence thereof shall be the sole and exclusive responsibility of Landlord. 

3. Rent. In consideration of Landlord performing the Expansion Area Improvements, 

the Expansion Area Costs (not to exceed the Maximum Costs) shall be amortized over a 15-year period (from the Completion Date) and included in the Rent due under the Lease (as set forth in Section 3(a) of the Lease) commencing as of the first day of the calendar month following the Completion Date (the "Revised Rent Date"). Landlord and Tenant have agreed to modify the Rent under the Lease, and hereby modify the Rent effective as of the Revised Rent Date, such that the monthly installments of Rent first coming due under the Lease as of the Revised Rent Date shall be increased by the sum of $10,894.00 to 

 

 

reflect the amortized Expansion Area Costs from the Completion Date through the expiration of the original Lease Term. Effective as of the Revised Rent Date, the Rent amounts specified in Section 3(a) of the Lease shall be deleted and the Rent due for each Lease Year (or partial Lease Year) commencing on the Revised Rent Date and ending on the last day of the fifteenth (15th) Lease Year shall modified and amended by increasing the monthly amounts therein stated (and corresponding annual amounts due) by $10,894.00. 

Notwithstanding the foregoing or anything in this Amendment to the contrary, not later than thirty (30) days after the Completion Date, but in no event later the Outside Completion Date, Landlord shall deliver to Tenant a complete and detailed explanation of all costs included in Expansion Area Costs, which shall include full and final unconditional lien waivers from all contractors, subcontractors and materialmen verifying all amounts contractually required to be paid thereto. In the event the actual Expansion Area Costs shall be less than the Maximum Costs as herein above set forth, the Rent adjustment set forth above shall be modified (retroactively) to reflect the actual Expansion Area Costs amortized over a 15-year period and Tenant shall be credited with an amount equal to the difference between the Maximum Costs and the actual Expansion Area Costs. 

4. Payment of Unamortized Expansion Area Costs. In the event that, on or before November 30, 2021 (i.e., the last day of the fifteenth (15th) Lease Year of the Lease Term), Tenant has not elected to expand the Building utilizing the services of Landlord to perform the expansion of the Building, or, Tenant elects to expand the Building utilizing the services of a contractor other than Landlord, then, in such event, Tenant shall pay to Landlord the sum of $837,000.00 (the "Balloon Payment"), such amount being the then unamortized portion of the Expansion Area Costs, and, thereafter, the Rent shall be as set forth in the Lease notwithstanding anything to the contrary set forth in the Lease and without reference to the terms and provisions of this Amendment. In the event that, on or before November 30, 2021, Tenant elects to expand the Building utilizing the services of Landlord, the Balloon Payment shall not be due and payable, but rather, the Rent amounts that would be otherwise due in the Renewal Term(s) shall be modified and adjusted to reflect the unamortized Expansion Area Costs, plus such other costs as may be approved by Landlord and Tenant in connection with the construction of the expanded portion of the Building. 

5. Brokerage. The parties hereby represent and warrant that no brokers or agents have been involved in the origination and consummation of this transaction. Each party hereto shall hold the other harmless from, and indemnify and defend against any breach of the foregoing representation and warranty, including, but not limited to, any claim for brokerage fees or commissions originating or deriving from, or alleged to have originated or derived from, its actions in the consummation of this transaction. 

6. Miscellaneous. 

(a) Landlord is fully authorized, without consent of any other patties, to enter into this Amendment as the binding act and obligation of the Landlord. The persons executing this Amendment on behalf of Landlord and Tenant are duly authorized to execute this Amendment. 

(b) The patties hereby acknowledge that the Lease is in full force and effect and there are no defaults, or any facts or circumstances which with the passage of time may become a default, under the Lease as of the date of this Amendment. 

 

 

(c) This Amendment is made a part of the Lease, shall modify and amend the terms of the Lease as herein set forth, and shall be binding on and enforceable against the parties to the Lease, their successors and assigns. 

(d) In the event this Amendment shall address a subject matter also set forth in the Lease, it is the intention of the parties hereto that the provisions of this Amendment shall be controlling with respect to such subject matter. Except as herein modified and amended, the provisions of the Lease shall remain in full force and effect and unchanged. 

 

 

[SIGNATURES ON FOLLOWING PAGE]

 

 

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IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be executed and made effective as of the date first above-written. 

TENANT: LANDLORD:

SHOE CARNIVAL, INC.,BIG-SHOE PROPERTIES, LLC, 

an Indiana corporationan Indiana limited liability company 

 

By: /s/ Clifton E. SiffordBy: /s/ Evan L. Beck

Name:  Clifton E. SiffordName:  Evan L. Beck

Title:  President/CEO/CMOTitle:  Manager

 

 

 

 

 

Exhibit A 

Site Work Permits

 

	
 
	
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Department of the Army Permit, Permit Number LRL-20 14-31 0-anr 

	
 
	
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Indiana Department of Environmental Management, general permit number INR10J896 

	
 
	
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Indiana Department of Environmental Management, Office of Water Quality, File Number LRL-2014-310-anr, IDEM Number 2014-319-82-DDC-A 

	
 
	
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State of Indiana Department of Natural Resources, Application# FW-27901scvl-ex10c_17.htm

Exhibit 10-C

 

SECOND AMENDMENT TO LEASE

THIS SECOND AMENDMENT TO LEASE ("Second Amendment") is made effective April 25, 2019 (the "Effective Date") by and between BIG-SHOE PROPERTIES, LLC, an Indiana limited liability company ("Landlord"), and SHOE CARNIVAL, INC., an Indiana corporation ("Tenant"): 

RECITALS: 

WHEREAS, Landlord and Tenant are current parties to that certain Lease dated February 8, 2006 and as amended by that certain First Amendment to Lease dated June 16, 2015 (collectively the "Lease"), relating to the Premises, consisting of approximately 409,350 rentable square feet of area, and located at the street address commonly known as 15001 N. Highway 57, Evansville, IN 47725, all as are more particularly described in the Lease; 

WHEREAS, the current Te1m expires November 30, 2021; 

WHEREAS, Landlord and Tenant desire to amend the Lease as provided for herein; and 

WHEREAS, all capitalized terms, if not defined in this Second Amendment, shall have the same meaning as defined in the Lease. 

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, for the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

1. Term.  The current Term is hereby extended for a period of fifteen (15) years and four (4) months. The Term hereby expires March 31, 2034. 

2. Renewal Term.  Notwithstanding anything to the contrary contained in the Lease, Tenant hereby has the sole right and option to extend the Term for eight (8) additional terms of five (5) Lease Years each, upon the same te1ms and conditions as herein set forth, except as otherwise provided herein. Should Tenant elect to exercise its Renewal Term, Tenant shall do so by written notice to Landlord on or before one hundred eighty (180) days prior to the expiration of then current Term. In the event Tenant exercises its Renewal Term, the Renewal Term shall commence at the expiration of then current Term. In the event Tenant does not exercise a Renewal Term as herein granted, then all unexercised Renewal Terms shall become null and void within ten (10) days after written notice thereof from Landlord, unless Tenant shall exercise such Renewal Term prior to the expiration of the ten (10) day notice period. 

In the event Tenant provides written notice to Landlord of Tenant's intent to exercise a Renewal Term, Landlord shall confirm in writing, within thirty (30) days after receipt thereof, that the HVAC systems and roof serving the Premises are in good condition or that 

 

SCVL Distribution Center- 15001 N. Highway 57 

Second Amendment to Lease 

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Landlord will cause the HVAC systems and roof to be in good condition on or before the commencement date of such Renewal Term. 

3. Rent. Notwithstanding anything to the contrary contained in the Lease, Tenant shall pay Rent to Landlord, payable in equal monthly installments each in advance of the fifth day of each month, pursuant to the following: 

		
	
Lease Term
	
Per Square Foot

	
04101/19 - 03/31/24
	
$3.99

	
04/01/24 - 03/31/29
	
$4.29

	
04/01/29 - 03/31/34
	
$4.13

	
Renewal Term
	
Per Square Foot

	
04/01/34 - 03/31/39
	
$4.25

	
04101/39 - 03/31/44
	
$4.25

	
04/01/44 - 03/31/49
	
$4.50

	
04101/49 - 03/31/54
	
$4.50

	
04/01/54 - 03/31/59
	
$4.75

	
04/01/59 - 03/31/64
	
$4.75

	
04/01/64 - 03/31/69
	
$5.00

	
04/01/69 - 03/31/74
	
$5.00

 

4. First Amendment Deletions. Section 3 ("Rent") and Section 4 ("Payment of Unamortized Expansion Area Costs") of the First Amendment to Lease dated June 16, 2015 are hereby deleted in its entirety. 

5. Tenant's Sole Right and Option for Expansion Area Improvement. Notwithstanding anything to the contrary contained in the Lease, any time during the Term, subject to governmental laws, ordinances, codes, rules; and regulations, and Landlord's prior written approval, which approval shall not be unreasonably withheld, conditioned, or delayed, Tenant shall have the sole right and option to expand the Premises up to a maximum of an additional two hundred thousand square feet (200,000 sq. ft.), which includes improvements not calculated in the 200,000 sq. ft., such as expansion of the parking field or additional improvements Tenant may deem necessary to support its operation at the Premises (the "Expansion Area Improvement"). The Expansion Area Improvement shall remain upon the Premises at the end of the Te1m, and will be the property of Landlord. 

In the event Tenant exercises its sole right and option to move forward with the Expansion Area Improvement, and Tenant desires to have Landlord pay for the Expansion Area Improvement, then Landlord and Tenant shall immediately enter into an Amendment to Lease memorializing the updated Rent structure and to ensure at least ten (10) years of then current Term remain. 

 

 

 

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Second Amendment to Lease 

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6. Confirmation of Notice Address.  As of the Effective Date, Landlord's and Tenant's Notification Addresses are as follows: 

If to Landlord: BIG-SHOE PROPERTIES, LLC 

c/o Woodward Commercial Realty, Inc. 

4763 Rosebud Lane 

Suite B Newburgh, IN 47630 

 

If to Tenant: SHOE CARNIVAL, INC. 

7500 East Columbia Street 

Evansville, Indiana 47715 

ATTN: SVP of Real Estate 

 

7. Tenant's Representations and Warranties. Tenant hereby represents and warrants to Landlord to the best of Tenant's actual knowledge that (a) no Landlord Event of Default under the Lease exists as of the date hereof, nor has any event occurred which, with the passage of time or the giving of notice, or both, would constitute a Landlord Event of Default, and (b) Tenant has no defenses as to the observance and performance by Tenant of any provision of the Lease and asse1is no offsets, claims, or counterclaims against Landlord. 

8. Landlord's Representations and Warranties. Landlord hereby represents and warrants to Tenant to the best of Landlord's actual knowledge that (a) no Tenant Event of Default under the Lease exists as of the date hereof, nor has any event occurred which, with the passage of time or the giving of notice, or both, would constitute a Tenant Event of Default, and (b) Landlord has no defenses as to the observance and performance by Landlord of any provision of the Lease and asse1is no offsets, claims, or counterclaims against Tenant. 

9. Ratification of Lease. This Second Amendment shall be deemed to form a part of and shall be construed in connection with and as part of the Lease. Except as hereinbefore expressly amended, all of the other te1ms, covenants and conditions contained in the Lease shall continue to remain unchanged and in full force and effect and are hereby ratified and confirmed. In the event of a conflict between the te1ms of the Lease and the te1ms of this Second Amendment, the te1m of this Second Amendment shall be controlling. 

10. Jointly Drafted. Landlord and Tenant have participated jointly in the negotiation and drafting of this Second Amendment. In the event an ambiguity or question of intent or interpretation arises, this Second Amendment will be construed as if drafted jointly by the Landlord and Tenant and no presumption or burden of proof will arise favoring or disfavoring either by virtue of the authorship of any of the provisions of this Second Amendment. 

11. Headings. The section headings of this Second Amendment are for convenient reference only and shall not be used in interpreting this Second Amendment. 

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Second Amendment to Lease 

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12. Counterparts. This Second Amendment of Lease may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Furthermore, any counterpart that is signed and returned by facsimile or electronic transmission shall be deemed properly signed and delivered. Each party intends to be bound by such party's facsimile or electronic transmission of signature on this Second Amendment, is aware that the other parties are relying on such party's facsimile or electronic transmission signature. 

13. Representation on Authority. Each person signing this Second Amendment represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Second Amendment. Each party represents and warrants to the other that the execution and delivery of the Second Amendment and the performance of such party's obligations hereunder have been duly authorized and that the Second Amendment is a valid and legal agreement binding on such party and enforceable in accordance with its terms. 

14. Binding Effect. This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

15. No Broker. Landlord and Tenant represent to the other that it has not engaged a broker in connection with this Second Amendment, and agrees to defend, indemnify, and hold the other party harmless from any claim made by a broker through the indemnifying party. 

16. OFAC Representation. As to compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws, Tenant and Landlord represent to each other that it is not, nor its principals, officers, partners, and/or members: (i) are not currently identified on the list maintained by the U.S. Department of the Treasury, Office of Foreign Assets Control ("OFAC"), generally known as the "OF AC List" (formerly known as the Specially Designated Nationals and Blocked Persons List); (ii) are not currently identified on the lists maintained by the U.S. Department of Commerce (the "DOC List") and/or the U.S. Bureau of Industry and Security (the "BIS List"); (iii) does not act for or on behalf of any person or persons listed on the OF AC List, the DOC List, the BIS List, and/or any other known list of denied persons, excluded persons, and excluded entities maintained by the federal agencies of the United States; and (iv) is not a person or persons, or nor acts for or on behalf of any person or persons, with whom a citizen or business of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United States of America. 

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IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the Effective Date. 

SCVL Distribution Center- 15001 N. Highway 57 Second Amendment to Lease 

LANDLORD: 

BIG-SHOE PROPERTIES, LLC, an Indiana limited liability company 

By: /s/Evan L. Beck 

Title: Member Manager 

Date: 4/25/19 

 

TENANT: 

SHOE CARNIVAL, INC., an Indiana corporation 

By: /s/W. Kerry Jackson 

Title: SEVP, COO, CFO, & Treasurer 

Date: 4/25/19 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Second Amendment to Lease 

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