EXHIBIT 10.11
SECOND AMENDED AND RESTATED
MASTER LEASE AGREEMENT - PARCEL GROUP B
BETWEEN
SOUTHWEST PREMIER PROPERTIES, L.L.C.
AND
CENTRAL FREIGHT LINES, INC.
(revised as of February 20, 2003)
THIS SECOND AMENDED AND RESTATED MASTER LEASE AGREEMENT - PARCEL GROUP B revised
as of February 20, 2003 (the "Lease") is made between SOUTHWEST PREMIER
PROPERTIES, L.L.C., (the "Landlord") and CENTRAL FREIGHT LINES, INC., (the
"Tenant").
Background. The Landlord and Tenant presently are parties to an Amended and
Restated Master Lease Agreement dated April 15, 1999, as amended by the
amendments thereto dated September 3, 1999, May 16, 2000, and December 6, 2000
(collectively, the "Underlying Lease"). In preparation for certain transactions
contemplated by each of them, the parties desire to extend the term of the
Underlying Lease, to adjust the rent provided for in the Underlying Lease, to
separate the Parcels (as defined below) covered by the Underlying Lease into two
groups, and to accomplish other matters addressed herein. This Lease covers the
13 Parcels identified on Exhibit A hereto (Parcel Group B) and replaces and
supplements in its entirety the Underlying Lease with respect to such Parcels.
As of the date hereof, the parties also have entered into a Second Amended and
Restated Master Lease Agreement - Parcel Group A that replaces and supplements
in its entirety the Underlying Lease with respect to the remaining properties
(Parcel Group A).
DEFINITIONS
For the purpose of this Lease, as amended from time to time, unless the context
otherwise requires, the following terms shall have the following meanings:
"Parcel" Any one of the 13 real properties listed on
Exhibit A
"Property" Collectively, the 13 properties described in
Exhibit A
"Premises" The Property, subject to Landlord's right under
Section 2.1 to exclude
1
Surplus Property. The Premises, as outlined on
Exhibits B-1 through B-10, shows the Premises
after Surplus Property has been excluded.
However, until the effective date of Landlord's
exercise of its right to exclude any particular
Parcel of Surplus Property, Premises shall refer
to all Property that has not yet been excluded.
"Surplus Property" Those portions, defined in Section 2.1 and in
the Exhibit B, of the 10 Parcels that are not
needed for the operations of the Tenant.
"Primary Term" Effective Date through February 19, 2013, as
defined in Section 3.1
"Five Year Extensions" As defined in Section 3.2
"Ten Year Term" As defined in Section 3.2
"Extension Terms" As defined in Section 3.2
"Rent" As defined in Section 4.1
"FMRV" Fair market rental value, as defined in Section
4.2
"Landlord Appraiser" As defined in Sections 4.3 and 29
"Tenant Appraiser" As defined in Sections 4.3 and 29
"Independent Appraiser" As defined in Sections 4.3 and 29
"Indemnitor" As defined in Section 21
"Indemnitee" As defined in Section 21
"Losses" As defined in Section 21
"Effective Date" February 20, 2003
1 DEMISE: In consideration of the undertakings of the parties
contained herein, Landlord leases to Tenant, and Tenant leases from Landlord,
the Thirteen (13) properties described in Section 2 (herein collectively
referred to as the "Premises"), on the terms and conditions contained in this
instrument.
2 PREMISES: Subject to (i) the reservation of Surplus Property
(as described below), (ii) the release provisions for Parcels that are sold (as
described in Section 2.4 below), and (iii) the other terms and conditions herein
contained, the Landlord leases to Tenant the Thirteen (13) properties described
in Exhibit A, attached hereto.
2
2.1 RESERVATION OF SURPLUS PROPERTY BY LANDLORD: Attached hereto
as Exhibit B is a list describing portions of the Premises that are not needed
for the operations of the Tenant (herein, each itemized parcel, and the
aggregate of all parcels identified on Exhibit B, are referred to
interchangeably as "Surplus Property"). Landlord hereby reserves the right to
exclude from the Premises and the scope of this Lease, any or all Surplus
Property, without reduction in rent.
2.2 LANDLORD'S EXERCISE OF RIGHT TO EXCLUDE SURPLUS PROPERTY:
Landlord shall exercise its right to exclude Surplus Property from the scope of
this Lease by providing Tenant at least sixty (60) days prior written notice,
identifying with particularity which parcel or parcels are to be excluded, and
the effective date of such exclusion. Thereafter, Landlord shall have all rights
of a fee simple owner of the excluded Surplus Property, including the rights to
subdivide, develop, and/or to sell it.
2.3 TENANT'S USE OF SURPLUS PROPERTY PRIOR TO EXCLUSION FROM
LEASE: At any time prior to the effective date designated in Landlord's notice
of exercise of its right to exclude Surplus Property, Tenant may use the Surplus
Property subject to the terms of this Lease for all lawful purposes, including
subleasing it for trailer pads. No improvements shall be constructed on the
Surplus Property by Tenant without the prior written consent of Landlord.
2.4 RELEASE OF PARCEL FROM SCOPE OF THIS LEASE IN EVENT OF SALE:
The Tenant is presently utilizing only two (Oklahoma City and Texarkana) of the
thirteen Parcels listed on Exhibit A as a trucking terminal, with the remaining
eleven of the thirteen Parcels presently designated for sale. With respect to
these eleven Parcels (all of Exhibit A Parcels except Oklahoma City and
Texarkana), the Tenant hereby waives both (i) the Section 22.2 Right of First
Refusal and (ii) the Section 29 Option to Purchase as granted in this Lease, and
hereby consents to the sale of any of such eleven Parcels by Landlord. In the
event of sale of any such Parcel, the Rent payable under this Lease shall
automatically be reduced by the amount of Rent allocated to such Parcel in
Exhibit C of this Lease, effective as of the date of closing of the sale of the
Parcel.
3 TERM
3.1 PRIMARY TERM: The primary term of this Lease shall be for a
period commencing on the Effective Date, as defined above, through February 19,
2013 ( the "Primary Term") unless sooner terminated as hereinafter provided.
3.2 EXTENSION TERMS: Subject to Sections 3.3 and 18, Tenant shall
have the option to extend the Primary Term for two (2) successive extension
terms of five (5) years each (the "Five Year Extensions"), or for one ten (10)
year term (the "Ten Year Term"), hereafter collectively called the "Extension
Terms". The Ten Year Extension Term shall begin on February 20, 2013, and shall
terminate on February 19, 2023. Alternatively, the Five Year Extension Term(s)
shall begin and end as follows:
1st five year option: February 20, 2013 through February 19, 2018.
3
2nd five year option: February 20, 2018 through February 19, 2023.
3.3 EXTENSION TERM NOTIFICATION: As a condition precedent to its
exercise of any option to renew this Lease under any of the aforementioned
Extension Terms, Tenant shall give to Landlord one-hundred and twenty (120) days
advance written notice of Tenant's intention to renew this Lease. The notice
shall specify whether the Extension Term is for five or ten years. In the event
that notice to extend the Lease is given, but Tenant fails to specify which
Extension Term is being chosen, the Extension Term will be for five (5) years.
3.4 TERM OF THIS LEASE: The Primary Term and all Extension Terms
elected by Tenant are referred to collectively as the "Term of this Lease".
4 RENT
4.1. PRIMARY TERM: Subject to Landlord's one-time option to require
prepayment of Rent, as described below, during the Term of this Lease, Tenant
shall pay rent to Landlord in equal monthly installments (the "Rent") an annual
rental in the amount of $170,012. The first monthly installment of Rent, in the
amount of $14,167.67, shall be payable in advance on or before February 28,
2003, and subsequent monthly installments of Rent shall be payable in advance of
each succeeding month, on or before the last business day of each calendar month
thereafter. Rent for partial months at the inception or the termination of the
Lease shall be prorated. The prorated rent payment for the balance of February,
2003 (9/28 of a monthly installment, $4,553.89) shall be paid at the same time
as the first monthly installment of Rent.
Notwithstanding the foregoing provision requiring the payment of Rent
in monthly installments, Landlord shall have a one-time option, exercisable
anytime between the Effective Date of this Lease and December 31, 2003, to
require prepayment of the first year's or any remaining portion of the first
year's Rent (through February 28, 2004) in a lump sum, with the lump sum
discounted to 90% of the amount of Rent otherwise payable; and in such event
Tenant shall pay Landlord such lump sum within 45 days following Landlord's
request therefor.
4.2 EXTENSION TERMS: The Rent for any Extension Term shall be
equal to the fair market rental value ("FMRV") at the time the notice to
exercise on Extension Term is given. The FMRV shall be as agreed to in good
faith by the Landlord and Tenant; if no agreement as been reached within 30 days
of the written notice of intent, then the parties shall proceed as directed in
Section 4.3.
4.3 APPRAISAL: If no agreement has been reached by the parties
regarding the FMRV, then the FMRV shall be determined by an independent and duly
qualified appraiser mutually agreeable to the Landlord and Tenant and the cost
of such appraisal shall be borne equally by the Landlord and the Tenant. If no
agreement can be reached in choosing such an appraiser, then the Landlord shall
select an appraiser (the "Landlord Appraiser") and the Tenant shall select an
appraiser (the "Tenant Appraiser") and such appraisers shall mutually agree upon
the FMRV. Each party shall bear the cost of its selected appraiser. If the
Landlord Appraiser and the Tenant Appraiser are unable
4
to agree to the FMRV, then the Landlord Appraiser and the Tenant Appraiser are
unable to agree to the FMRV, then the Landlord Appraiser and the Tenant
Appraiser shall select a mutually agreeable independent and duly qualified
appraiser (the "Independent Appraiser"). The determination of the FMRV by the
Independent Appraiser shall be binding on the parties. "Appraiser," as used in
this paragraph, shall include duly licensed real estate brokers.
5 REAL ESTATE TAXES AND ASSESSMENTS: During the Term of this
Lease, Tenant shall pay, as the same may become due and payable and before any
fine, penalty, interest or other charge may be added for nonpayment, all real
estate taxes and assessments, general and special, against the Premises.
6 UTILITIES: During the Term of this Lease, Tenant shall pay all
charges for utility services supplied upon or in connection with the Premises,
including without limitation, gas and electricity, sanitary and storm sewer,
water, telephone services, heat, light and power.
7 CONDITIONS OF PREMISES: The Tenant has examined the Premises
and is satisfied with the physical condition thereof, including all equipment
and appurtenances, and its taking possession thereof shall be conclusive
evidence of its receipt thereof in good and satisfactory order and repair,
unless otherwise specified herein. Tenant acknowledges that no representation as
to the condition or repair of the Premises has been made by or on behalf of the
Landlord, except as herein expressed, and likewise acknowledges that no
agreement or promise to decorate, alter, repair or improve the Premises,
including all equipment and appurtenances, either before or after the execution
hereof, has been made by or on behalf of the Landlord, except as stated herein.
The occupancy by Tenant of the leased Premises shall constitute an
acknowledgment by Tenant that the Premises are in the condition called for by
this Lease and that Landlord has performed all of the Landlord's work with
respect thereto and that all construction and/or remodeling required in
accordance with the terms of this Lease have been fully and satisfactorily
completed in accordance with the terms hereof.
8 POSSESSION OF PREMISES: Landlord shall deliver possession of
the Premises to Tenant on or before the Effective Date of this Lease.
9 TENANT IMPROVEMENTS: Tenant, at its sole cost and expense,
shall have the right, but shall not be obligated, prior to and during the Term
of this Lease, to improve, alter and renovate the Premises in any manner which
Tenant deems necessary or desirable to adapt the same for the conduct of its
business operations, including without limitation, painting, decorating,
redecorating and installing partitions, floor coverings, wall coverings, drop
ceilings, light fixtures.
10 TRADE FIXTURES: Personal Property: Tenant, at its sole cost
and expense, shall have the right, but shall not be obligated, to install, use,
replace, and remove its trade fixtures and personal property, such as, without
limitation, telephone, teletype and other communications equipment, machinery,
dock levelers, task lights, office furniture, office trailers and its Roof
Antenna. Upon the expiration of the Term of this Lease, Tenant shall have the
right to remove such trade fixtures and personal property from the Premises,
provided that Tenant shall repair all damage to the Premises resulting from such
removal.
5
11 MAINTENANCE AND REPAIRS BY LANDLORD: In consideration of this
Lease and the rate of rent contained in this Lease, the Tenant agrees that
during the Term of the Lease, the Tenant will, at its own expense, pay all
maintenance and repair expenses for the Premises. In the event any of the
Tenant's maintenance or repair is performed by the Landlord or its designees,
the Landlord shall be entitled to reimbursement for any expenses incurred by
Landlord. Amounts advanced shall bear interest from the date of the advance at
the prime rate. Nothing in the paragraph shall be interpreted as requiring the
Landlord to perform any such acts independent of the other provisions of this
Lease.
12 MAINTENANCE AND REPAIRS BY TENANT: Tenant, at its sole cost
and expense, shall keep the Premises in a clean and orderly condition and shall
perform all maintenance and repair to the Premises including but not limited to
the following:
(A) The structure and exterior of Landlord's buildings including
without limitation, the roof and roof membrane, walls, floors, foundations,
supports, windows, overhead doors, skylights, roof vents, drains, downspouts and
landscaping;
(B) The mechanical and utility systems serving the Premises
including without limitation, heating ventilation, air conditioning, lighting,
electrical, plumbing, gas, water supply, sanitary sewers and septic systems,
storm sewers and storm water drainage systems, sprinkler systems, exterior
telephone and communications lines and circuits and underground or overhead
electrical supply;
(C) All periodic repaving and any patching and pothole maintenance
of the yard, parking, drive and other hard-surfaced areas of the Premises,
together with curbs and walkways; and
(D) Any repair occasioned or caused by Tenant's negligence or
misconduct.
13 INSURANCE: At all times during the Term of this Lease, Tenant,
at its sole cost and expense, shall provide and maintain in full force and
effect an insurance policy or policies protecting Landlord and Tenant, and their
officers, employees, members, and managers against any loss, liability or
expense from personal injury, death, property damage or otherwise arising or
occurring upon or in connection with the Premises or by reason of the Tenant's
operations upon or occupancy of the premises, whether the same occurs or the
cause arises on or off the Premises. This coverage shall include, but not be
limited to, fire and extended coverage insurance (including flooding, vandalism,
malicious mischief and special extended perils or all risk) in an amount not
less than the full replacement cost of the damaged portion of the Premises, with
a standard inflation guard endorsement or, in the event the parties have agreed
upon a fixed amount of insurance, with a fixed amount endorsement. Tenant shall
maintain in full force and effect a pubic liability insurance policy for the
Premises with coverage limits of $2,000,000 for bodily injury and $250,000 for
property damage. Certificates of insurance showing compliance with the foregoing
requirements shall be furnished, if requested, by Tenant to Landlord. Each such
certificate shall contain an agreement by the insurer that such insurance
coverage shall not be modified or canceled without delivery of at least thirty
(30) days written notice to the Landlord.
14 DENIAL OF SUBROGATION RIGHTS: Neither the Landlord nor the
Tenant shall be liable to the other for any business interruption or any loss or
damage to property or injury to or death of
6
persons occurring on the Premises or the adjoining property, or in any manner
growing out of or connected with the Tenant's use and occupancy of the Premises,
or the condition thereof, or of the adjoining property, whether or not caused by
the negligence or other fault of the Landlord or the Tenant or of their
respective agents, employees, subtenants, licensees, managers, members, or
assignees. This release shall apply only to the extent that such business
interruption, loss or damage to property or injury to or death of persons is
covered by insurance, regardless of whether such insurance is payable to or
protects the Landlord or the Tenant or both. Nothing in this paragraph shall be
construed to impose any other or greater liability upon either the Landlord or
the Tenant than would have existed in the absence of this paragraph.
15 RENT ADJUSTMENT UPON DAMAGE BY FIRE OR OTHER CASUALTY: In the
event that one or more of the thirteen (13) properties constituting the Premises
shall be partially or wholly destroyed or damaged by fire or other casualty,
without the fault of the Tenant, so that the same shall be unfit for use or
occupancy, then Tenant shall give Landlord immediate written notice of the same,
and a Rent adjustment, according to the nature and extent of the damage
sustained in loss of use or occupancy, shall occur.
16 CONDEMNATION OF PREMISES: In the event that one or more of the
thirteen (13) properties constituting the Premises shall be, in whole or part,
condemned or taken, then Landlord shall give Tenant written notice of the same,
and effective as of the date of vesting of title, a Rent adjustment shall occur.
17 DEFAULT OF TENANT: A default by Tenant under this lease shall
occur if any of the following occur, but a default is not limited to the
following:
(A) Any one or more rent payments due from the Tenant to the
Landlord shall be and remain unpaid in whole or part after they are due and
payable;
(B) The Tenant fails to provide insurance as required by this
Lease and the default continues for more than ten (10) days after notice from
Landlord;
(C) The Tenant violates or defaults in any of the other covenants,
agreements, stipulations or conditions herein and such violation or default
shall continue for a period of thirty (30) days after written notice from the
Landlord of such violation of default; or
(D) If the Tenant shall become insolvent, make an assignment for
the benefit of its creditors, or if a receiver is appointed for the Tenant.
18 LANDLORD'S REMEDIES UPON TENANT'S DEFAULT: The remedies
provided in this paragraph are not exclusive and are in addition to any other
remedies now or later allowed by law. Upon default of the Tenant:
(A) The Landlord may, at its option, declare this Lease forfeited,
the Lease term ended,
7
have the right to reenter the Premises and have the right to take possession of
the Premises without any further obligation to Tenant. Landlord may remove all
persons and property at the cost of Tenant.
(B) Landlord may instead elect to keep Tenant in possession and
continue to have all rights and remedies under this Lease. If Landlord elects to
keep Tenant in possession, Landlord shall have the rights under subparagraph (A)
for any future defaults or for any previous default that remains uncured.
(C) If Landlord elects under subparagraph (B) to keep the Lease in
force, Landlord may lease the Premises at a rate of rent determined by Landlord
to be reasonable. Tenant shall pay to Landlord any costs incurred in leasing the
Property and any rents under this Lease in excess of the rent which Landlord
actually receives from new Tenant. The new Tenant may pay rents directly to
Landlord.
19 LANDLORD'S DEFAULT: In the event of any failure by Landlord to
perform any term, condition, covenant or obligation of this Lease on the part of
Landlord to be performed within fifteen (15) days after the date on which
Landlord receives from Tenant notice by certified or registered mail
specifically describing such failure, Tenant (in addition to all other remedies
to which Tenant may be entitled under this instrument or at law or in equity)
may cure such default by Landlord on behalf of, and at the sole cost and expense
of Landlord, including a supervision charge of twenty percent (20%) of all costs
and expenses in connection therewith within thirty (30) days after Tenant's
delivery to Landlord of an invoice therefor, failing which Tenant may offset
such costs and expenses against any Rent and other amounts payable by Tenant
hereunder. The foregoing notwithstanding, if Landlord shall exercise in good
faith diligent efforts within such fifteen (15) day period to cure the failure
specified in the notice but shall not be able to do so because of acts of God,
riots, or labor strikes, then any such failure shall not be considered a default
of this Lease by Landlord so long as Landlord shall continue to exercise in good
faith such diligent efforts to cure such failure and shall do so within a
reasonable period of time.
20 LANDLORD'S RIGHTS OF ENTRY: Following reasonable notice to
Tenant, Landlord may enter upon the Premises as often as Landlord may deem
reasonably necessary for the purposes of inspecting the Premises, offering the
Premises for lease (but only during the period which commences sixty (60) days
prior to the expiration of the then existing Primary Term or Extension Term),
offering the Premises for sale or transfer, or any other reason which the
Landlord, in good faith, believes necessary in its business judgment. Landlord's
right of entry shall be exercised in a manner and at times such that there shall
be no unreasonable interference with the use and occupancy of the Premises by
Tenant for the conduct of its business operations.
21 MUTUAL INDEMNIFICATION: Each party (the "Indemnitor") agrees
to indemnify, defend and hold the other party (the "Indemnitee") harmless from
and against any and all losses, damages, claims, suits, actions, judgments,
liabilities and expenses, including, without limitation, environmental damages
and remediation expenses, reasonable attorneys' fees (collectively, "Losses"),
arising out of , or with respect to: (a) any breach of any warranty or
representation or any covenant or agreement of the Indemnitor under this Lease;
or (b) any injury to, or death of, persons and/or any
8
damage to, or destruction of, property, on or about the Premises and
attributable to the negligence or misconduct of the Indemnitor, or its officers,
employees, agents, contractors or invitees, except for any such breach, any
injury or death or any damage or destruction arising out of, or with respect to,
the negligence or misconduct of the Indemnitee, or any of its officers,
employees, agents, contractors or invitees, or at otherwise specifically
provided in this Lease; provided, however, that the indemnification obligation
created by this Section shall be expressly conditioned upon the Indemnitee (i)
delivering to the Indemnitor prompt notice of any event giving rise to such
indemnification obligation and (ii) providing the Indemnitor the opportunity to
defend itself from and against any Losses.
22 TRANSFERS
22.1 ASSIGNMENT AND SUBLETTING: Tenant shall have the right to
assign this Lease and/or sublet any portion of the Premises, with or without the
consent of Landlord. Absent the written agreement of Landlord, no assignment of
this Lease or subletting of all or any portion of the Premises shall relieve
Tenant of any of the terms, conditions, covenants and obligations of this Lease
on the part of Tenant to be performed.
22.2 NOTICE OF SALE/RIGHT OF FIRST REFUSAL: It is understood by the
parties that the Landlord may, at any time, desire to sell all or part of the
Premises. If Landlord desires to sell all or a portion (i.e. one or more of the
13 parcels described previously in Exhibit A) of the Premises during the Term of
this Lease, and receives a signed offer or other such contract under terms and
conditions acceptable to the Landlord, Landlord will give notice to Tenant,
including the terms and conditions of the offer for transfer or sale. If within
sixty (60) days of said notice, Tenant shall decide to purchase the property,
Landlord and Tenant will execute a contract of sale under the same terms and
conditions of said offer. Landlord may sell Surplus Property, which is not
subject to this Right of First Refusal.
23 HOLDING OVER: If Tenant shall continue to occupy the Premises
after the expiration of the Term of this Lease or the earlier termination of
this Lease, without exercising an Extension Term, then Tenant shall be deemed to
be occupying the Premises as a tenant from month-to-month, subject to the terms
and conditions of this Lease; provided, however, that either party shall have
the right to terminate such month-to-month tenancy upon delivery of thirty (30)
days' notice to the other.
24 LANDLORD'S COVENANT OF QUIET ENJOYMENT: Landlord covenants and
agrees that Tenant shall have the peaceful and quiet possession and enjoyment of
the Premises (subject to all mortgages and other matters to which this Lease, is
or shall become, subordinate in accordance with the provisions of Section 25)
for the conduct of its business operations during the Term of this Lease,
without hindrance by Landlord or any party whatsoever.
25 SUBORDINATION OF LEASE TO MORTGAGES: This Lease shall be
subject and subordinate at all times to the lien of existing mortgages and of
mortgages which hereafter may be made a lien on the Premises. Although no
instrument or act on the part of the Tenant shall be necessary to effectuate
such subordination, the Tenant will nevertheless execute and deliver such
further instruments subordinating this Lease to the lien of any such mortgages
as may be desired by the mortgagee. The
9
Tenant hereby irrevocably appoints the Landlord his attorney-in-fact to execute
and deliver any such instrument for the Tenant. Provided, however, and
notwithstanding the foregoing provisions hereof, upon foreclosure of the
mortgage with the mortgagee succeeding to the rights of the Landlord, the Tenant
shall, at the option of said mortgagee, attorn to the mortgagee as follows:
(A) Tenant shall be bound to the mortgagee under all the
terms of the Lease for the balance of the term hereof remaining with the same
force and effect as if the mortgagee were the Landlord under the Lease, and
Tenant hereby attorns to the mortgagee as its Landlord, such attornment to be
effective and self-operative, without the execution of further instrument on the
part of either of the parties hereto, and immediately upon the mortgagee
succeeding to the interest of Landlord under this lease and having given written
notice of the same to Tenant. The respective rights and obligations of Tenant
and of the mortgagee upon such attornment shall to the extent of the remaining
term of the lease be the same as now set.
(B) The mortgagee shall be bound to the Tenant under all
of the terms of this Lease, and the Tenant shall, from and after such event,
have the same remedies against the mortgagee for the breach of an agreement
contained in this Lease that the Tenant might have had under this Lease against
the Landlord hereunder. In no event, however, shall the mortgagee be liable for
any act or omission of any prior Landlord, be subject to any offsets or defenses
which Tenant might have against any prior Landlord, or be bound by any rent or
additional rent which the Tenant might have paid to any prior Landlord for more
than the current month.
26 SURRENDER OF PREMISES: Upon the expiration or earlier
termination of the Term of this Lease, Tenant shall deliver up and surrender the
Premises to Landlord in the same condition as it was at the Effective Date,
subject to: (a) Tenant's improvements, alterations and renovations to the
Premises; (b) normal wear and tear; and (c) damage by fire, explosion or other
casualty which is not covered by insurance.
27 RENT AND NOTICES: Rent and any and all notices or demands
required or permitted to be given hereunder deemed to be properly served if
hand-delivered or sent by registered or certified mail, postage prepaid,
addressed to the Landlord at
Southwest Premier Properties, L.L.C.
Attn: Xxxxxx Xxxxx
X.X. Xxx 0000
Xxxx, XX 00000
or addressed to the Tenant at
Central Freight Lines, Inc.
Attn: Xxxx Xxxxx
X.X. Xxx 0000
Xxxx, XX 00000
10
or at such other address as either party may hereafter designate in writing to
the other. Any notice or demand so mailed shall be effective for all purposes at
the time of deposit thereof in the United States mail.
28 SIGNS: Tenant shall have exclusive sign rights for the
Premises, exterior and interior, and shall have the right to erect and display
signs on the Premises and on such other areas of the Premises as Tenant
reasonably may request, subject only to compliance with applicable laws,
ordinances and requirements of governmental authorities with competent
jurisdiction.
29 OPTION TO PURCHASE: At any time during the Term of this Lease,
Tenant shall have the option to purchase that portion of the Premises utilized
and occupied by the Tenant in its truck line operations, or an integral part of
any land or building so utilized or occupied, but shall not have the option to
purchase the Surplus Property. In the event Landlord sells any parcels
comprising the Premises prior to Tenant's exercise of this option, this option
shall extend only to the remaining Premises. The purchase price shall be equal
to the Fair Market Value of the Premises, as determined by a duly qualified
appraiser mutually agreeable to the Landlord and Tenant and the cost of such
appraisal shall be borne equally by the Landlord and the Tenant. If no agreement
can be reached in choosing such an appraiser, then the Landlord shall select an
appraiser (the "Landlord Appraiser") and the Tenant shall select an appraiser
(the "Tenant Appraiser") and such appraisers shall mutually agree upon the Fair
Market Value. Each party shall bear the cost of its selected appraiser. If the
Landlord Appraiser and the Tenant Appraiser are unable to agree to the Fair
Market Value, then the Landlord Appraiser and the Tenant Appraiser shall select
a mutually agreeable independent and duly qualified appraiser (the "Independent
Appraiser"). The determination of the Fair Market Value by the Independent
Appraiser shall be binding on the parties. "Appraiser," as used in this
paragraph, shall include duly licensed real estate brokers. Tenant may exercise
the option to purchase by delivering written notice to Landlord of its election
to exercise the option.
30 AMENDMENTS. The Tenant and Landlord agree that amendments to
this Lease may be necessary from time to time to reflect changes in the number
of properties constituting the Premises, the Rent, and other such changes
described in the Lease. The parties agree that any amendments will be made in
writing and signed by Landlord and Tenant, or will have no effect on this Lease.
31 MISCELLANEOUS:
(A) This Lease: (i) contains the entire agreement between the
parties and no promise, representation, warranty, covenant, agreement, or
understanding not specifically set forth in this Lease shall be binding upon
either party; (ii) may not be amended, modified, or supplemented in any manner
except in writing signed by the parties; (iii) shall be construed and governed
under the laws of Texas; (iv) shall not be construed more stringently in favor
of one party against the other regardless of which party has prepared the same;
(v) shall be binding upon, and inure to the benefit of, the parties and their
respective heirs, executors, administrators, personal and legal representatives,
successors, and permitted assigns; (vi) shall not be binding until this Lease
shall be executed and delivered by the parties, to each other; and (vii) may be
executed in counterparts, each of which shall be deemed an original, but which
all together constitute the same instrument.
11
(B) Any person executing this Lease on behalf of a corporation or
limited liability company represents and warrants that such person is authorized
to execute and deliver this Lease on behalf of the entity.
12
(C) The invalidity or unenforceability of any term or provision
shall not affect the validity or enforceability of the remainder of this Lease.
32. ENVIRONMENTAL COMPLIANCE: Tenant shall, at its expense, comply
with all Environmental Laws, as defined below, and furnish satisfactory evidence
of such compliance upon request of Landlord. Should any discharge, leakage,
spillage, emission, or pollution of any type occur upon or from the Premises due
to Tenant's use and occupancy thereof, Tenant, at its expense shall be obligated
to perform appropriate remediation. The term "Environmental Laws" shall mean any
federal, state or local law, statute, ordinance, or regulation pertaining to any
Hazardous Substances, as defined below, or to health, industrial hygiene, or the
environmental conditions on, under or about the Premises, including without
limitation, the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 ("CERCLA"), as amended, the Resource Conservation and
Recovery Act of 1976 ("RCRA") and state laws regarding underground storage
tanks. The term "Hazardous Substances" means and includes any petroleum products
and any substances included within the definitions of hazardous substances or
hazardous materials in CERCLA, RCRA, and other federal, state or local statutes,
laws, ordinances, codes, rules, or regulations relating to, or imposing
liability or standards of conduct concerning any hazardous, toxic or dangerous
wastes, substance or material, as now or at any time hereafter in effect. Tenant
hereby (i) acknowledges that it has assumed certain environmental liabilities
and obligations of Viking Freight, Inc., and (ii) agrees to indemnify and hold
harmless Landlord from and against any and all claims, damages and liabilities
arising in connection with the presence, use, storage, disposal, transport,
generation, recycling, treatment, reuse, reclamation, handling, release, or
threatened release of any Hazardous Substances on, from or about the Premises.
*** SIGNATURE PAGE FOLLOWS ***
13
IN WITNESS WHEREOF, the parties have caused this Second Amended and
Restated Master Lease Agreement - Parcel Group B to be duly executed by each of
their respective authorized representatives effective as of February 20, 2003.
SOUTHWEST PREMIER CENTRAL FREIGHT LINES, INC.
PROPERTIES, L.L.C.
By: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxx Xxxxx
________________________ ________________________
Xxxxxx Xxxxx Xxxx Xxxxx
Its: President Its: Director of Administration
Dated: _____________________ Dated: ______________________
14
