Exhibit 10.1
THIS
DEED of LEASE (herein called LEASE), Hade this
5th day of March 1996, by and between SUBURBAN
MANAGEMENT
COMPANY with its
principal offices in the City of Norfolk, Virginia (Landlord},
DOLLAR TREE STORES, INC. with its principal
offices in NORFOLK,
VIRGINIA (Tenant),
and (Agent),
1. PREMISES. Landlord
hereby demises and leases to Tenant, and Tenant hereby takes
and leases from Landlord, chat certain storeroom (the
"Leased Premises") now or hereafter to be constructed in
the SUBURBAN PARK Shopping
Center (the "Shopping Center") in the City
of NORFOLK,
VIRGINIA , known and numbered as 7549-B-F
VIRGINIAN DRIVE, NORFOLK, having a width of
approximately feet,
by a depth of
feet,
measured from front building line to rear building line from
the center line of dividing walls, and containing
approximately 7,508 square feet. The
Leased Premises are outlined in red on a diagram of the
Shopping Center attached hereto as Exhibit A and made part
hereof. Landlord may increase, reduce or change
number, dimensions and locations of roadways, walks, buildings
and parking areas as Landlord shall from time to time deem
proper.
2. USE
OF COMMON AREAS. Occupancy by Tenant of the Leased
Premises shall include the use in common with others entitled
thereto of the parking areas, service roads, and sidewalks
(the "Common Areas") subject however to the terms and
conditions of this Lease and to all rules and regulations for
the use thereof as may from time to time be prescribed by
Landlord.
3. LENGTH
AND COMMENCEMENT OF TERM. The term of the Lease
shall commence on the date (the "Commencement Date") (a) which
is thirty (30) days after Landlord notifies Tenant in writing
that the Leased Premises are ready for occupancy or (b) on
which Tenant shall open the Leased Premises for business,
whichever shall first occur, and the term shall expire at the
end of FIVE ( 5) years following (i)
the Commencement Date i£ the date is the first day of
any calendar month or (ii) the first dav of the calendar
month. The term of this Lease shall commence at
12:01 A.M. on April
(Month) 1st
_______(Day) 1996_____ (Year) and
terminate at 11:59 P.M. on
MARCH (Month)
31st (Day)
__2001 (Year). .
4. RENT. (a)
Landlord reserves, and Tenant covenants to pay Landlord
without prior demand being made therefore and without offset
of any kind, as rent for the Leased Premises, the sum of
$60,064. per annum ("Minimum Rent"), payable in advance on the
first day of each month, in monthly installments of $5005.33
each month, and additional rent ("Percentage Rent") in an
amount equal to five percent (5%) of Cross Sales made in any
Lease Year in excess of S1,201,280.00. Percentage
Rent shall be paid by Tenant to Landlord within sixty
(60) days after the end of each Lease Year.
(b) As
rent in addition to the above, Tenant shall pay to Landlord
Tenant's share of the cost of maintaining the Common Areas
("Common Area Charge") in the amount of $
5631.00 pe
r annum, payable in advance, on the first day of each
month.
without
prior demand and without offset of any kind in equal monthly
installments of $469.25 (calculated on the basis of . 75 c per
square foot of the Leased Premises per
year).
(c) All
rental payments shall be made to Agent, 7510 Granby Street,
Suite 201, Norfolk, Virginia, 23505, until Landlord shall
otherwise direct in writing.
(d)
Where there is a common water meter, the Tenant will pay its
pro-rata share of water and sewer charges based on the square
footage of the Leased Premises.
(e) If
Landlord decides to hire any security guards or
otherwise attempt to provide security for the
Common Areas, Tenant agrees to pay to Landlord; as additional
rent, a sum per month ("Security Charge"), payable in advance
on the first day of each month during the term of this Lease
equal to the greater of $ or (ii)
$ ,
calculated by taking 1/12 of c per
square foot multiplied by the number of square feet
contained in the Leased Premises. SEE
ADDENDUM
(f) Tenant
covenants and agrees to pay a late charge of
$50.00, and to pay interest at the rate of ten percent
(102) per annum, payable monthly, on all rents (including
Percentage Rent) and all other sums due under this Lease from
the time said rents or auras accrue if they are not paid
promptly when due. Landlord expressly reserves
all other rights and remedies provided herein and by law in
respect therein.
5.
USE
OF LEASED PREMISES. The Leased Premises shall be
used solely for the conduct
of
and for no other purpose. Tenant agrees: (i) to
operate such business in the Leased Premises at all times
during the term of this Lease, (ii) to keep the Leased
Premises adequately stocked and manned to maximize sales, and
(iii) to keep the Leased Premises open for business at least
from 9 A.M. to 6 P.M. on weekdays and 9 A.M. to 6 P.M. on
Saturdays; Sundays and legal holidays are
excepted.
6. LEASE
YEAR. "Lease Year" as used in thin Lease means the
period from the Commencement Date to the end of the
twelfth full calendar month thereafter and each and every
twelve-month period thereafter during said term
7. GROSS
SALES. "Gross Sales" as used in this Lease means
all sales both cash and credit, of merchandise and
services made in or on, from ant) through, the Leased
Premises, including all such sales made by any other
occupant (by way of assignment, sublease or otherwise) of the
Leased Premises, less the following:
(a) Any
refunds, allowances of discounts, made or granted to customers
in respect to such sales; and
(b) The
amount of any excise or sales tax levied by governmental
authority upon such sales; provided specific record of
such tax is made at the time of each sale and that such taxes
are separately charged to, and collected from, the
customer.
The
full amount of all "layaway", C.O.D. sales and the like
shall be taken into
Gross
Sales when originally made. Tenant covenants and
agrees not to divert sales,
directly
or indirectly, from the Leased Premises to any other
place or store.
8. TENANT'S
RECORDS. Tenant covenants Chat it will keep and
maintain at the Leased Premises, or at Tenant's principal
office, books and records, in accordance with good accounting
practice, in which will promptly and accurately by recorded
all Gross Sales. Such books and records shall be
open for inspection by Landlord's representative at all
reasonable times during business hours during the term of this
Lease, and the year next following the expiration thereof: and
Landlord's representative shall by accorded all reasonable
help and cooperation from Tenant in connection with each
inspection. In the event any settlement is made
hereunder which upon subsequent examination of Tenant's
books Ls found to be erroneous, the parties hereto agree that
they will promptly adjust the error through an appropriate
credit, payment or refund, as the circumstances may
require. If such examination discloses that the
amount of Gross Sales actually made by Tenant £or the
period of time covered by such examination varies more than 1%
from the amount previously reported as made by Tenant for such
period of tine, Tenant shall pay to Landlord the reasonable
expense of such audit (in addition to the additional
Percentage Rent, it
any),
9. REPORTS
BY TENANT. Within fifteen days (15) after the end
of each month during the term of this Lease, Tenant shall
deliver to Landlord without demand a statement signed and
certified by Tenant (or an executive officer of Tenant) to be
true and correct, showing the Gross Sales during such
month. Within thirty days (30) after the end of
each Lease Year during the term hereof, Tenant shall
deliver to Landlord a statement, signed and
certified under oath by Tenant or by an
executive officer of Tenant to be true and correct,
showing the Gross Sales made during the Lease Year
concerned. Landlord agrees that it will no!:
divulge in any way the information obtained from such
report or from its inspection of Tenant's books and records,
except in connection with any litigation between the
parties hereto concerning this Lease or as may be
required by any mortgagees of the Shopping Center, or any part
thereof.
10.
TRADE FIXTURES. Tenant shall have the right to
install its trade fixtures in the Leased Premises as the work
thereon progresses, provided such installation shall not
interfere with the construction of the building in which the
Leased Premises are located, and such installation shall be at
the sole risk and expense of Tenant. All trade
fixtures installed in the Leased Premises by Tenant shall
remain the property of, and shall be removable by, Tenant at
the expiration of this Lease, if Tenant is not in default
hereunder, and Tenant agrees to repair or reimburse Landlord
for the cost of repairing all damages to the Leased Premises
occasioned by the removal of said fixtures.
11. USE
OF PARKING AREAS. (a) All automobile
parking areas, driveways, entrances and exits thereto, and
other facilities furnished by Landlord in or near the
Shopping Center shall 'at all times be subject to the
exclusive control and management of Landlord, and Landlord
shall have the right from time to time to establish, modify
and enforce reasonable rules and regulations with respect to
all such facilities and areas.
(b) It
is expressly understood that the parking areas in the Common
Areas are
intended
primarily for the use of customers of the Tenants in the
Shopping Center,
and
Tenant accordingly agrees that its employees will not use said
parking areas or
any
of the driveways, streets or vacant land in the Shopping
Center for the parking
or
storage of any automobile, truck or any other vehicle owned by
or used by any
such
employee, except as may from time to time be approved in
writing by Landlord.
In
order to assist Landlord in the enforcement of the foregoing
provision, Tenant
agrees
that within ten (10) days after being requested by Landlord so
to do, Tenant
will
furnish to Landlord a written statement containing the names
of all employees,
agents
and representatives, employed by Tenant in or about the Leased
Premises and
the
license numbers of all vehicles owned or used by Tenant or
such employees, agents
12. LANDLORD'S
INSURANCE. Landlord covenants that it will keep the
building of
which
the Leased Premises are a part, insured
against fire, extended coverage and other perils, in an amount
not less than 80%, of the
actual cash value of said premises, and in addition, will
carry such general liability coverage for the common areas as
it shall deem appropriate. The pro-rata cost of all
insurance so written shall be borne by Tenant In accordance
with the formula stated in Section 21 hereof. TENANT COST FOR
INSURANCE WILL BE BASED ON .15 CENTS PER SQ.FT. OR $126.20
ANNUALLY, PAID AT A MONTHLY RATE OF $93.85. THIS
CHARGE IS SURJECT TO INCREASE SHOULD COST TO LANDLORD
INCREASE.
13. MAINTENANCE
BY LANDLORD. Landlord covenants that it will, at
its own cost and expense (i) within a reasonable time after
being notified in writing by Tenant of the need therefor make
such repairs to the roof, outside walls (except windows, store
front and doors), gutters and downspouts of the building of
which the Leased Premises is a part as may be necessary in
order to keep such building in good condition of repair,
unless said repairs are occasioned by the negligence or
willful act of Tenant or any of its agents, employees or
contractors, in which event such repairs shall be made by and
at the expense of Tenant, it being agreed that Landlord
will not be responsible for any damages resulting from
any leak or defect in the roof, sidewalls.
gutters or downspouts unless such damage is due to
Landlord's failure to make repairs, therefor within a
reasonable time after having been notified by Tenant
of the need therefor; rand (ii) maintain in good condition or
repair, stripe and adequately light the parking areas of
the shopping Center.
14. MAINTENANCE
BY TENANT. (a) Tenant: agrees that it
will at all times during the term of this Lease and at its own
cost and expense, keep (I) the interior of the Leased Premises
and the appurtenances thereto, including without limitation
the heating system, air conditioning system, toilets,
plumbing lines, windows, glass, electric lines, fixtures,
store front and equipment, in good condition of repair, making
such replacements as may be necessary from time to time, it
being expressly understood that Tenant will be obligated to
make all repairs and replacements necessary to keep the Leased
Premises and the appurtenances thereto in good order and
condition except only those which Landlord has expressly
agreed to make under provisions of paragraph 13 of this Lease;
and (ii) the Leased Premises and entryways, sidewalks,
driveways and delivery areas adjacent to said premises clean
and free from obstruction, rubbish, dirt, snow and
ice.
(b)Tenant
shall store all trash, rubbish and garbage in full-closed
containers at the rear of the Leased Premises, and Tenant
shall pay all costs incident to the removal
thereof. Tenant shall not burn or otherwise dispose
of any trash, waste, rubbish or garbage in or about the Leased
Premises.
15. SUNDRY
COVENANTS OF TENANT. (a) Tenant will not
assign this Lease nor sublet the Leased Premises, in whole or
in part, without the prior written consent of the Landlord and
that if such consent is granted by Landlord, Tenant will
remain primarily liable for the performance of the
covenants herein contained binding upon Tenant The transfer of
fifty percent (50%) or more of Tenants stock, if Tenant is a
corporation, or transfer of a twenty-five percent (25%)
partnership interest in Tenant, if Tenant is a partnership,
shall constitute an assignment under the terms of this Lease.
Tenant will comply with all federal, state and municipal laws,
ordinances and regulations relating to the
Lease
