AMENDMENT TO LEASE
This Amendment to Lease is entered into by and between Rossville
Investments, Inc. (formerly known as A & E Leasing, Inc.) ("Lessor") and
Culp, Inc. ("Lessee"), and relates to that certain Lease Agreement dated
November 1, 1993 (the "Lease") by and between Lessor and Lessee for the
Premises described as Plant 12, located at Maple and Sousa Streets,
Rossville, Georgia. Unless the context requires otherwise, capitalized or
defined terms used herein shall have the same meaning as given to them in
the Lease.
The parties hereby agree that the Lease is amended as follows:
1. TERM AND OPTION TO RENEW. The term of the Lease shall be
extended for a period of three (3) additional years, terminating on April
30, 1998, at 12:00 P.M.
Lessee shall have the option to extend the term of the Lease for one
(1) additional period of three (3) years commencing on May 1, 1998 and
terminating on April 30, 2001, which option must be exercised by Lessee in
writing at least twelve (12) months prior to the end of the term as
extended by this Amendment. Notice of exercise of the renewal option shall
be effective when received or when deposited in the United States Mail,
postage prepaid, correctly addressed and sent certified, return receipt
requested.
If the option to extend the term of the Lease for an additional period
of three (3) years beginning May 1, 1998 is exercised, beginning on May 1,
1998 (the "Adjustment Date") the rent shall be increased in a proportion
reflecting the total
increase in the Consumer Price Index for the preceding three year period,
which increase shall be calculated as follows: multiply the May 1, 1995
rental rate by a fraction, the numerator of which is the Consumer Price
Index, United States -- All Items for All Urban Consumers for May 1,
1998 and the denominator of which is such index figure on the same basis
for May 1, 1995.
2. RENT. Beginning May 1, 1995, Lessee shall pay rent to Lessor in
the amount of $9,400 per month ($112,800 per year). Rent shall be payable
monthly on the first day of each month during the term of the Lease.
3. PARKING. Lessor agrees that during the term of this Lease and
any extensions thereof, it will at all times make available (at no
additional cost to Lessee) adequate parking for Lessee and its employees in
quantities sufficient to support Lessee's intended use of the Premises.
4. TAXES. Lessee shall pay all real property taxes on the Premises.
Beginning with the date of this Amendment, during the term of the Lease,
including all extensions, Lessor shall forward invoices for real property
taxes to Lessee promptly upon receipt thereof from taxing authorities. In
the alternative, Lessee may, at its option, make arrangements with such
taxing authorities to have invoices provided directly to Lessee. On or
before December 15 of each year during the term of the Lease, Lessee will
pay the real property taxes due on the Premises to the appropriate taxing
authorities. It is further agreed that the real property taxes on the
Premises for the last year of the Lease, which shall
-2-
be the property taxes from January 1 of such year through April 30 of
such year, shall be based on the taxes for the previous year and shall be
paid on or before the last day of the term of the Lease by Lessee to Lessor,
and Lessor shall pay the taxing authority for such taxes.
5. APPLICABLE LAW. The Lease and all amendments thereto shall be
construed in accordance with the laws of the State of Georgia.
6. REFERENCES. Any reference to "Landlord" in the Lease shall be
deemed to refer to "Lessor," and any reference to "Tenant" shall be deemed
to refer to "Lessee."
7. OTHER PROVISIONS UNAFFECTED. Except as expressly amended hereby,
the terms and conditions of the Lease are hereby ratified and shall remain
in full force and effect.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment to
Lease as of the 14th day of December, 1994.
ROSSVILLE INVESTMENTS, INC.
(formerly known as A & E Leasing, Inc.)
By: /s/ Ronald Satterfield
CULP, INC.
By: /s/ Franklin N. Saxon
-3-