High Point Lease Extension

10.95


LEASE EXTENSION AGREEMENT


THIS LEASE EXTENSION AGREEMENT ("Agreement") is made and entered into this ____ day of _____________________, 2001, by BRESMIRO ASSOCIATES, L.L.C., a North Carolina limited liability company ("Landlord"), and QUAKER FABRIC CORPORATION OF FALL RIVER, a Massachusetts corporation ("Tenant").


WITNESSETH:


WHEREAS, Tenant is a party to a certain Lease (the "Lease") dated April 1, 1996, with C&M Investments of High Point, Inc. for certain premises (the "Premises") located at 7024 Pike View Drive, Thomasville, North Carolina 27360, as more particularly described in the Lease; and


WHEREAS, Landlord heretofore acquired title to the Premises from C&M Investments of High Point, Inc., received an assignment of the Lease, and is now the "Landlord" under the Lease for all purposes; and


WHEREAS, the initial term of the Lease is scheduled to expire on July 31, 2001; and the parties desire to enter into this Agreement in order to extend the said term for an additional period of three years upon the terms and conditions hereinafter set forth;


NOW, THEREFORE, in consideration of the foregoing premises and of the mutual covenants hereinafter set forth, the parties hereby agree as follows:


1. Renewal Term. The term of the Lease shall be, and hereby is, extended for an additional period of three (3) years, beginning on August 1, 2001, and expiring on July 31, 2004, both dates inclusive (the "Renewal Term").


2. Rental. During the Renewal Term, Tenant shall pay to Landlord, as rental for the Premises, without notice or demand therefor, rental in the amount of (a) Thirty-Four Thousand Five Hundred Dollars ($34,500.00) per year during the first year of the Renewal Term, payable in equal monthly installments of Two Thousand Eight Hundred Seventy-Five Dollars ($2,875.00) per month, (b) Thirty-Five Thousand Five Hundred Thirty-Five Dollars ($35,535.00) per year during the second year of the Renewal Term, payable in equal monthly installments of Two Thousand Nine Hundred Sixty-One and 25/100 Dollars ($2,961.25) per month, and (c) Thirty-Six Thousand Six Hundred Dollars ($36,600.00) per year during the third year of the Renewal Term, payable in equal monthly installments of Three Thousand


Fifty and 09/100 Dollars ($3,050.09) per month. Rental payments shall be payable in advance on the first day of each month, and any rental payments received after the 10th day of the month shall carry a late fee of One Hundred Twenty-Five Dollars ($125.00). Any check issued by Tenant that is returned marked "Non-Sufficient Funds", "NSF", or similar designation shall carry a service fee of One Hundred Dollars ($100.00).


3. Renewal. Landlord grants to Tenant the right, privilege, and option to extend the lease term for an additional period of three (3) years after the expiration of the Renewal Term, provided that Tenant is not then in default in the rent or any other of the covenants contained in the Lease. The additional term of three (3) years shall begin immediately upon the expiration of the Renewal Term upon notice in writing to Landlord of Tenant's exercise of such option, such notice to be given at least one hundred twent ...