EXHIBIT 10.18
Form R140 COMMERCIAL LEASE
This lease is made between H.C. Hoodenpyle of P.O. Box 272, Hiawassee, GA
50546, herein called Lessor, and American Weavers, L.L.C., of P.O. Box 369,
Calhoun, GA 30703, herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the
City of N/A, county of Towns, State of Georgia, described as Hoodenpyle building
off US Highway 76 (Building), upon the following TERMS and CONDITIONS:
1. Term and Rent. Lessor demises the above premises for a term of 13 Months,
commencing January 1, 1998, and termination on February 1, 1998 or sooner as
provided herein at the annual rental of $1.75 per square foot (26,000 sq. ft.)
Forty Five Thousand, Five Hundred Dollars ($45,500.00), payable in equal
installments in advance on the first day of each month for the month's rental,
during the term of this lease. All rental payments shall be made to Lessor, at
the address specified above.
2. Use. Lessee shall use and occupy the premises for manufacturing. The premises
shall be used for no other purpose. Lessor represents that the premises may
lawfully be used for such purpose.
3. Care and Maintenance of Premises. Lessee acknowledges that the premises are
in good order and repair, unless otherwise indicated herein. Lessee shall, at
his own expense and at all times, maintain the premises in good and safe
condition, including plate glass, electrical wiring, plumbing and heating
installations and any other system or equipment upon the premises and shall
surrender the same, at termination hereof, in as good condition as received,
normal wear and tear excepted. Lessee shall be responsible for all repairs
required, excepting the roof, exterior walls, structural foundations, and: None,
which shall be maintained by Lessor. Lessee shall also maintain in good
condition such portions adjacent to the premises, such as sidewalks, driveways,
lawns and shrubbery, which would otherwise be required to be maintained by
Lessor.
4. Alterations. Lessee shall not, without first obtaining the written consent of
Lessor, make any alterations, additions, or improvements, in, to or about the
premises.
5. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances
and requirements of all municipal, state and federal authorities now in force,
or which may hereafter be in force, pertaining to the premises, occasioned by or
affecting the use thereof by Lessee.
6. Assignment and Subletting. Lessee shall not assign this lease or sublet any
portion of the premises without prior written consent of the Lessor, which shall
not be unreasonably withheld. Any such assignment or subletting without consent
shall be void and, at the option of the Lessor, may terminate this lease.
7. Utilities. All applications and connections for necessary utility services on
the demised premises shall be made in the name of Lessee only, and Lessee shall
be solely liable for utility charges as they become due, including those for
sewer, water, gas, electricity and telephone services.
8. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter
upon the premises at reasonable times and upon reasonable notice, for the
purpose of inspecting the same, and will permit Lessor at any time within sixty
(60) days prior to the expiration of this lease, to place upon the premises any
usual "To Let" or "For Lease" signs, and permit persons desiring to lease the
same to inspect the premises thereafter.
13. Destruction of Premises. In the event of a partial destruction of the
premises during the term hereof, from any cause, Lessor shall forthwith repair
the same, provided that such repairs can be made within sixty (60) days under
existing governmental laws and regulations, but such partial destruction shall
not terminate this lease, except that Lessee shall be entitled to a
proportionate reduction of rent while such repairs are being made, based upon
the extent to which the making of such repairs shall interfere with the business
of Lessee on the premises. If such repairs cannot be made within said sixty (60)
days, Lessor, at his option, may make the same within a reasonable time, this
lease continuing in effect with the rent proportionately abated as aforesaid,
and in the event that Lessor shall not elect to make such repairs which cannot
be made within sixty (60) days, this lease may be terminated at the option of
either party. In the event that the building in which the demised premises may
be situated is destroyed to an extent of not less than one-third of the
replacement costs thereof, Lessor may elect to terminate this lease whether the
demised premises be injured or not. a total destruction of the building in which
the premises may be situated shall terminate this lease
14. Lessor's Remedies on Default. If Lessee defaults in the payment of rent, or
any additional rent, or defaults in the performance of any of the other
covenants or conditions hereof, Lessor may give Lessee notice of such default
and if Lessee does not cure any such default within 30 days, after the giving of
such notice (or if such other default is of such nature that it cannot be
completely cured within such period, if Lessee does not commence such curing
within such 30 days and thereafter proceed with reasonable
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[ILLEGIBLE] CERTIFICATE OF LIABILITY INSURANCE OP ID MT Date (MM/DD/YY)
AMERI - 2 05/15/98
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PRODUCER THIS CERTIFICATE ISSUED AS A MATTER OF
INFORMATION ONLY AND CONFERS NO RIGHTS
Huffines-Russell & Associates UPON THE CERTIFICATE HOLDER. THIS
P.O. Box 2190 CERTIFICATE DOES NOT AMEND, EXTEND OR
haretta GA 30023-2190 ALTER THE COVERAGE AFFORDED BY THE
POLICIES BELOW.
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COMPANIES AFFORDING COVERAGE
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Scott Russell - Direct COMPANY
Tel No. 770-664-6818 A Kemper National Insurance Co
Fax No. 770-475-0341 ------------------------------------------
COMPANY
American Weavers, L.L.C. B
965 N. Wall Street ------------------------------------------
P.O. Box 369 COMPANY
Calhoun GA 30703 C
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COMPANY
D
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COVERAGES
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THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED
TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY
REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO
WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY
THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
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CO POLICY EFFECTIVE POLICY EXPIRATION
LTR TYPE OF INSURANCE POLICY NUMBER DATE (MM/DD/YY) DATE (MM/DD/YY) LIMITS
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GENERAL LIABILITY GENERAL AGGREGATE $ 2,000,000
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A |X| COMMERCIAL GENERAL LIABILITY 3MH305120-00 07/01/97 07/01/98 PRODUCTS - COMP/OP AGG $ 1,000,000
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|_| |_| CLAIMS MADE |X| OCCUR PERSONAL & ADV INJURY $ 1,000,000
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|_| OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 1,000,000
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A |X| BROAD FORM FIRE DAMAGE (Any one fire) $ 50,000
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|_| VENDORS INCL. MED EXP (Any one person) $ 5,000
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AUTOMOBILE LIABILITY
A |X| ANY AUTO F3Y019890-00 07/01/97 07/01/98 COMBINED SINGLE LIMIT $ 1,000,000
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|_| ALL OWNED AUTOS BODILY INJURY $
(Per person)
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|_| SCHEDULED AUTOS BODILY INJURY $
|_| HIRED AUTOS (Per accident)
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|_| NON-OWNED AUTOS PROPERTY DAMAGE $
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GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $
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|_| ANY AUTO OTHER THAN AUTO ONLY:
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|_| EACH ACCIDENT $
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|_| AGGREGATE $
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EXCESS LIABILITY EACH OCCURRENCE $10,000,000
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A |X| UMBRELLA FORM 3SB118108-00 07/01/97 07/0/98 AGGREGATE $10,000,000
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|_| OTHER THAN UMBRELLA FORM $
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WORKERS COMPENSATION AND |X| WC STATU-|_| OTHER
EMPLOYERS' LIABILITY TORY LIMITS
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A THE PROPRIETOR/ |_| INCL 3BR056375-00 07/01/97 07/0/98 EL EACH ACCIDENT $ 100,000
PARTNERS/EXECUTIVE |_| EXCL --------------------------------------
OFFICERS ARE: EL DISEASE - POLICY LIMIT $ 500,000
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EL DISEASE - EA EMPLOYEE $ 100,000
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OTHER
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DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
RE: 2212 US HIGHWAY 76 EAST, HIAWASSEE, GA. HUGH HOODENPLYE IS NAMED AS ADDITIONAL INSURED ON
THIS LOCATION. WAIVER OF SUBROGATION PROVIDED. TENANT SHALL HOLD LANDLORD HARMLESS FROM DAMAGES
ARISING OUT OF ANY DAMAGE TO ANY PERSON OR PROPERTY OCCURRING IN OR ABOUT PREMISES AND THE BUILDING.
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CERTIFICATE HOLDER CANCELLATION
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HOODENP SHOULD OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE
HUGH HOODENPLYLE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE
P.O. BOX 272 CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE
HIAWASSEE, GA 30546 OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES.
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AUTHORIZED REPRESENTATIVE:
Scott Russell - Director
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ACORD 25-S (1/95) /s/ Scott Russell ACORD CORPORATION 19[ILLEGIBLE]
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[LETTERHEAD OF LANEY CONSTRUCTION COMPANY, INC.]
May 20, 1998
Contract/Proposal
Hugh Hoodenpyle
Project (American Weavers)
Hiawassee Georgia Plant
Laney Construction Company, Inc. proposes to furnish labor and material to
construct a 150' x 250' x 23' eave height building at the American Weavers Plant
in Hiawassee, Georgia.
Laney Construction Company, Inc. has included in this quote to:
Grade Work: Complete earth moving for a 150' x 250' building pad and a 100' wide
x 80' long truck ramp for the approach ramp of 6 dock doors on west end wall of
building. There will also be 2 - 24" x 24" drain inlets installed in the truck
ramp area and drained with an 8" underground pipe away from dock area.
Underground drainage will be installed between existing building and new
building for gutter drains with 8" flexible pipe.
Under-slab Plumbing: Under-slab plumbing will consist of 4 water closets, 2 - 4"
pipes for sink drains and 2 vent pipes stubbed level at finish floor for future
bathrooms. A new 6" PVC sewer line will be installed between existing building
and new building to replace old tile sewer line.
Concrete: Concrete Pad will be 150' wide by 250' long. Concrete will be 6" thick
using fiber mesh reinforcing with a 18" wide x 12" deep monolithic footing
around perimeter of building. Footing piers at column locations will be 3' wide
long x 2' deep with 1 mat of #5 rebar 8" o.c.
All concrete inside building will have a smooth steel trowel finish with 1 coat
of cure and seal concrete sealer.
Exterior concrete pad will be 100' wide x 75' long x 6" thick with fibermesh
reinforcing in addition to 1 mat in 8' x 20' sheets of 6" x 6" x 6 gauge
reinforcing wire. Exterior concrete will have a light broom finish with 1 coat
of cure and seal concrete sealer. There will also be a 14' x 14' concrete pad at
the 14' x 14' ground level door.
Concrete walls at loading dock will be 8" thick with #4 rebar 12" o.c. both ways
for reinforcing. Angle iron will be cast in concrete wall to weld dock plates
to. Wing wall