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HomeMy WebLinkAbout2018-12-02-R (2) RESOLUTION NO. 2018- CITY OF BATESVILLE,ARKANSAS A RESOLUTION APPROVING ASSIGNMENT OF THE LEASE OF THE LOCKHOUSE WHEREAS, the City of Batesville currently leases the property known as the "Lockhouse"to Steve Carpenter Property Management, LLC; WHEREAS, Steve Carpenter Property Management, LLC wishes to assign said lease to RBJM Leasing, LLC; and WHEREAS, said assignment requires approval by the Batesville City Council. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Batesville, Arkansas: Section 1: That the Assignment of Lease of the property commonly known as the Lockhouse from Steve Carpenter Property Management, LLC (Assignor)to RBJM Leasing, LLC (Assignee) is hereby approved. A copy of said Assignment of Lease, containing the legal description of the property covered by the Lease, including all options, is attached hereto and incorporated herein by reference as"Exhibit A." Section 2: The Mayor of the City of Batesville is hereby authorized to execute any and all documents necessary to effectuate this assignment. ADOPTED THIS DAY OF 2018. APPROVED: RIC L H, MAYOR ATTEST: D E JOHNSTON, CLTY CLERK IIIIIIIII�IIIIIIIINIIIIIIIIIIIINIIINIIN L201900613 INDEPENDENCE CO,AR FEE$145 00 PRESENTED:01-16-2019 03 15 41 PM RECORDED:01-16-2019 03:15:41 PM GREG WALLIS CIRCUIT CLERK BY VICKEY SMART DEPUTY CLERK BK: DEED 2019 PG: 278-304 CORRECTED ASSIGNMENT OF LEASE KNOW ALL BY THESE PRESENTS: That I, Steve Carpenter Property Management, LLC, (Assignor) by Steve Carpenter, Managing Member duly authorized by the members of Grantor, for and in consideration of$10.00 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby transfer, set over and assign to RBMJ Leasing, LLC, all its right, title and interest in and to that certain Lease Agreement originally between the City of Batesville as Lessor and Lockhouse, Inc. as Lessee dated August 13, 1999, as recorded in Book 2004, pages 2502-2514, as assigned by Lockhouse, Inc. and others to First Community Bank to Grantor, and as approved by the City of Batesville in a Lease Addendum dated March 24, 2015, which Grantor recorded in Book 2015, pages 2612-2619 of the Independence County records, which extended the lease on the property described in Exhibit A until March 24, 2055, with an option to extend the said lease term for an additional 40 years to March 23, 2095, said Lease Addendum being attached and incorporated herein by reference as if set out fully herein, all of which was approved by the City of Batesville Resolution No. 2015-3-3-R dated March 24, 2015, also attached. This Assignment includes the Lease, all lease improvements, all options and all rights of any kind in and to the following described property: See attached Exhibit A This Corrected Assignment of Lease is executed to correct a scrivener's error in the Assignment of Lease dated and recorded January 3, 2019, recorded at Book 2019, pages 43-69. Steve Carpenter Property Management, LLC BY 2�� r,. Steve Carpenter, naging Member ACKNOWLEDGMENT STATE OF ARKANSAS ) ss. County of Independence ) On this 14 r= day of January, 2019, before me, a Notary Public, duly commissioned, qualified and acting, within and for said County and State, appeared in person the within named Steve Carpenter (being the person authorized by said limited liability company to execute such instrument, stating his respective capacity in that behalf), to me personally well known, who stated that he was the Managing Member of Steve Carpenter Property Management, LLC, an Arkansas limited liability company, and was duly authorized in his capacity to execute the forgoing instrument for and in the name and behalf of said limited liability company, and further stated and acknowledged that he had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. r1+ IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this ay of January 2019. -4 �, Notary Public V 11 �a,2jo My Commission Expires: c, NOTARY PUBLI 1 0► d�'race CA•' RESOLUTION NO.2018-�=R i CITY OF BATESVILLE,ARKANSAS A RESOLUTION APPROVING ASSIGNMENT OF THE LEASE OF THE LOCKHOUSE WHEREAS,the City of Batesville currently leases the property known as the "Lockhouse"to Steve Carpenter Property Management, LLC; WHEREAS, Steve Carpenter Property Management,LLC wishes to assign said lease to RBJM Leasing,LLC;and WHEREAS,said assignment requires approval by the Batesville City Council. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Batesville, Arkansas: Section 1: That the Assignment of Lease of the property commonly known as the Lockhouse from Steve Carpenter Property Management, LLC(Assignor)to RBJM Leasing, LLC(Assignee)is hereby approved. A copy of said Assignment of Lease,containing the legal i description of the property covered by the Lease, including all options, is attached hereto and incorporated herein by reference as"Exhibit A." Section 2: The Mayor of the City of Batesville is hereby authorized to execute any and all documents necessary to effectuate this assignment. ADOPTED THIS DAY OF ,2018. APPROVED: RIC L H,MAYOR ATTEST: E JOHNSTON, C Y CLERK Book 2019 Page 45 RESOLUTION NO. 2015-� CITY OF BATESVILLE, ARKANSAS A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A LEASE ADDENDUM ON BEHALF OF THE CITY, MODIFYING AND EXTENDING THE CURRENT LEASE AGREEMENT WHEREAS,the City of Batesville currently leases property to Steve Carpenter upon which he has operated his restaurant for several years; i WHEREAS,the restaurant located on the leased premises was recently destroyed by fire, and Mr. Carpenter wishes to rebuild it on the property; WHEREAS, in order to facilitate a substantial rebuild and re-investment in the structure, it is necessary to modify and extend the current lease. NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Batesville, Arkansas: Section 1. That the City of Batesville, Arkansas, hereby authorizes the Mayor to enter into the Lease Addendum attached hereto as Exhibit A. I ADOPTED THIS 0;'4 DAY OF _, 2015. APPROVED: RICK ELUIVI , MAYOR ATTEST: DENISE JOHNST , CITY CLERK Book 2019 Page 46 THIS INSTRUMENT PREPARED BY: T.Lindsey Castleber ] Attorney at Law V 500 East Main Street,Suite 301 Post Office Box 2604 Batesville,Arkansas 72503 (870)307.0050 LEASE ADDENDUM WHEREAS,the City of Batesville("LESSOR")leased the lands described in EXHIBIT"A"on January I, 1999, by Lease Agreement("Lease Agreement")recorded in Deed Book 2004, Page 2505: WHEREAS,the leasehold interest in the Lease Agreement was subsequently assigned and ultimately transferred to Steve Carpenter,who currently possesses the premises in accordance with the terms and conditions set forth in the aforesaid Lease Agreement, WHEREAS, Steve Carpenter's restaurant located on the demised premises was recently destroyed by fire and he desires to rebuild on the demised premises; WHEREAS, LESSOR and Steve Carpenter(hereinafter referred to as LESSEE) wish to modify and extend the Lease Agreement in order to allow construction of a new restaurant on the demised premises,and they commit the terms of the modification to writing and for that purpose join in the execution of this instrument; NOW,THEREFORE, in consideration of the premises,and in consideration of the following conditions and agreements, the LESSOR and LESSEE agree that the Lease Agreement remain in full force and effect and shall be modified as follows: 1. The lands hereby leased by LESSOR to LESSEE,and hereinafter referred to as the demised premises,are situated in Batesville, Independence County, Arkansas, and more particularly described as Lease No. I set forth in EXHIBIT"A",attached hereto. Book 2019 Page 47 2. The term of the Lease Agreement shall be extended by a period of FORTY(40) years commencing on March 24,2015,and LESSEE shall have the option to extend the lease for an additional FORTY(40)years upon the conclusion of the first extension, for a possible total of EIGHTY(80)years from March 24,2015. 3. LESSOR understands that LESSEE desires to protect his investment in improvements on his leasehold interest,and, to that end,LESSOR agrees to negotiate in good faith from time to time with respect to future extensions of the Lease Agreement. LESSEE shall have an exclusive right to negotiate with LESSOR for a period of six(6) months after negotiations begin,and that period can be extended by agreement of the parties. 4. Paragraph No. 6 of the Lease Agreement is modified to restrict the time period during which LESSOR may review LESSEE'S architectural plans for improvements on the demised premises to a period of ten(10)days. 5. LESSOR agrees that it will not unreasonably attempt to terminate the Lease Agreement or the Lease Addendum for any breaches caused by an Act of Cod. 6. It is understood that LESSOR intends to relocate its equipment and structures currently situated adjacent to and east of the demised premises, including a Work Shop and Golf Cart Shed, described more accurately as Lease No. 2 in EXHBIT"A". In the event LESSOR relocates those facilities, LESSEE shall have the right to enter the premises described as Lease No. 2 in EXHIBIT "A", and LESSOR shall lease those premises to LESSEE. LESSEE shall use the premises described as Lease No. 2 in EXHBIT"A"for parking and shall pave the same in accordance with applicable City Codes. The term for the lease of the land described as Lease No. 2 in EXHIBIT"A"shall Book 2019 Page 48 begin when the City ceases its use of the property and end upon the termination of the Lease Agreement or Lease Addendum, whichever occurs later. EXECUTED in this 24'day of March, 2015. LESSOR: CITY OF BATESVILLE By: - Rick au , Mayor LESSEE: Steve Carpenter By:- '— -- Steve Carpenter ATTEST: Book 2019 Page 49 ACKNOWLEDGMENT �r I STATE OF ARKANSAS ) i ) COUNTY OF i Be it remembered, That on this day came before me, the undersigned,a Notary Public within and for the county and state aforesaid, duly commissioned and acting, Rick Elumbaugh, to me personally well known, who stated that he was the Mayor of the CITY OF BATESVILLE, and was duly authorized in that capacity to execute the foregoing instrument for and in the name and behalf of said City of Batesville, and further stated and acknowledged that he had so signed, executed and delivered said foregoing instrument for the consideration,used and purposes therein mentioned and set forth. Witness my hand and seal as such Notary Public on this o�-day of -72] 1h , 2015. Notary Publicd H M N0►Nsr My Commission Expires: Qk? O ?''���-y- TAF�y .. �oUBL%G 'y Book 2019 Page 50 ACKNOWLEDGMENT STATE OF ARKANSAS ) COUNTY OF J"z-)ymd,,nry ) Be it remembered, That on this day came before me, the undersigned, a Notary Public within and for the county and state aforesaid,duly commissioned and acting, Steve Carpenter, to me personally well known, who stated that he had executed the same for the consideration and purposed therein mentioned and set forth. Witness my hand and seal as such Notary Public on thisAls-day of Notary Public M J(0) My Commission Expires: � pTA/�y&,;ti 1 certify under penalty of false swearing that at least the legally correct amount of documentary stamps have been placed on this instrument. Agent/ Grantee Address Book 2019 Page 51 �. 0 Asphalt m y; Now-" etc F -.�. ......,. Poe e*' '�,i� �JJ► Lease No, I ✓• 1.32 Acres all r Asphalt POO L-2 '6ts � 9j�A Natal Mphalt Playground \ N34121'45'E 20.00' WORK 9NOP >>� Ooeot VLSI i� ot� M Un a OP `+y1 s� Lease NO. 2 ✓� 0.69 Acres m/1 Pipe J �• y>>i ra9f`. ,1i `at o, ✓ 0y61 ! LEASE DESCRIPTION No. I r A tract of land being a part of the East 1/2. NE 1/4, of Section 2L T 13 N, R 6 K In the City of Batesville. Independence County, Arkansas, sore particularly described as follows: Coneencinp at the northeast corner of said Section 21. thence N 80'W'00" W. 1330.955 feet. thence S 00*00'00' E, 1730.85 feet to the point of beginning: thence N 63'53'04' E, 192.50 feet: thence S 36'38'34' E, 46.69 feet; thence S 61'36'47' E, 34.00 feet; thence S 37-25.51: E. 72.59 toot: thence 9 51137'21E, 37.00 feet; thence S 55*09*42' W. 85.00 feet; thence 9 34-27:37: E. 48.00 feet; thence S 5513223W. 54.00 feet: thence S 34.38'21' E. 167.95 feet; thence S 54'35'24' W, 45.65 feet to a point on the high bank of White River: thence along said high bank the following: N 41'31'16' W, 114.00 fast; N 50'46'25' 11, e2.51 feet; thence leavinp said hi bank. N 32.16'19' W. 109.00: thence N 34.22'45' E. 10.00 feet: thence N 36'30'43" W, 125.10 feet to the point of beginning. This tract contains 1.32 acres, sore or less, and is subject to any W. W all easements. ASE DESCRIPTION No. 2 ���fff111 tract of land being a part of the East 1/2. NE 1/4. of Section 21. T 13 N R 6 W. in the City of Batesville. Independence County. Arkansas, more particularly described as follows: Commencing at the northeast corner of said Section 21, thence N go'00'00' W. 1330.95 feet; thence 8 00'00'00' E, 1730.85 feet: thence N 53'53 04' E. 192.50 fact; thence S 36'38'34' E. 46.69 feet: thence 8 61'38'47' E. 34.00 feet; thence S 3725'51' E, 72.59 f set; thence 5 51'37'21' E, 37.00 feet to the poant on beginning; thence continue 6 51'97'21' E. 6.38 feet. thence 8 58'00'06' E, 35.96 lost; thence S 59'29'22' E. 95.23 fast to an existing metal bar on the •pterly line of the City of Set avills property: thence along said easterly line the tol�owino: S 63'22'24: M. 79.60 feet; S 34.50'36 E. 99.00 too ; ... .11. r ••s'P ac 0..i Book 2019 Page 52 O04 2502 ecorded in the Above Deed Gaol, b Page C'64j9-201.4 12;Sn:ay FM ASSIGNMENT OF LEASE Claudia Nobles Circuit Clerk IWevenderKe County, AR This Assignment of Lease(hereinafter referred to as the"Assignment')is trade and entered into this 29 day of January,2004,by and between First Community Bank (hereinafter referred to as "Assignor")and Steve Carpenter Property Management, LLC (hereinafter referred to as"Assignee"). Assignor,for and in consideration of the sum of Ten Dollars($10.00)and other good and valuable consideration,does hereby transfer and assign unto Assignee,all of its rights, title and interest in and to that certain Lease Agreement between the City of Batesville,as Lessor,and Lockhouse,Inc.,as Leasee dated August 13, 1999(herein referred to as the "Lease Agreement"),the terms and conditions of which are hereby incorporated by reference. A true and accurate copy of the Lease Agreement is attached hereto as Exhibit A. Assignor does hereby warrant that it is in compliance with all of the terms of the Lease Agreement,that the Lease Agreement is not in default,and that there are no.liens and encumbrances against it. This Assignment is given without recourse. As to Assignor,this29'6day of January,2004. First Comm ty B By: 3k, Dale Cole, CEO As to Assignee,this A day of January,2004. Steve Carpenter Property Management,LLC By: I., Steve Carpenter,M#Mbcr l Book 2019 Page 53 0 2004 2503 Recorded in tree Above ACKNOWLEDGEMENT U-M $salt 8 Pat State of Arkansas ) )ss. County of Independence ) On this day before the undersigned personalty appeared Steve Carpenter,known to me to be a member of Steve Carpenter Property Management,LLC,and duly authorized in his capacity as member to execute the foregoing instrument for and in the name and behalf of said Steve Carpenter Property Management,LLC,and further stated and w4wwledged that he had so signed,executed and delivered the foregoing instrument for the consideration,uses and purposes therein mentioned and set forth. In Witness Whereof, I hereunto set my hand and official seal thmy of 2004. MtpFR NQ1G No ary Public My Commission Expires: Pub 4* V 2 Book 2019 Page 54 1t1Jbl 1KUMLNJ r "WOT: i Robin D.Stroud F, T, Attorney at law " 500 East Main Street,Stc.201 '- t at'. 0 i 336 f P.O.Box 2135 Batesville,AR 72503 (870)793.8350 ` LEASE AGREEMENT KNOW ALL BY THESE PRESENTS. I WHEREAS, the City of Batesville, hereinafter referred to as ("LESSOR") has agreed to lease to Lockhouse, Inc. (hereinafter referred to as "LESSEE"), the lands hereinafter described upon the terms and conditions set forth herein; and, WHEREAS, LESSOR and LESSEE desire to commit the terms of their agreement to writing and for that purpose join in the execution of this instrument. NOW, THEREFORE, in consideration of the premises, and in consideration of the following conditions and agreements, the LESSOR hereby leases, demises and lets to the LESSEE the lands hereinafter described upon the terms and conditions set forth herein: 1. The lands hereby leased by LESSOR to LESSEE, and hereinafter referred to as the demised premises, are situated in Batesville, Independence County, Arkansas, and are more particularly described as follows: SEE EXHIBIT "A" ATTACHED. EXHIBIT "A" Book 2019 Page 55 :D_ 2. The initial term of this lease shall be a period of TWENTY (20) years commencing on August 1, 1999. 3. The rental for the initial term of this lease shall be the sum of ONE HUNDRED & NO/100 DOLLARS ($100.00) per month (the "Base Rent") for the FIRST (1') through the TWO HUNDRED FORTIETH (240') payment. All payments shall be payable on the first day of the initial term of this lease and the same day of each succeeding month. 4. The taxes, if any, on the demised premises shall, during the initial term and any renewal term of this lease, be paid by LESSEE. 5. LESSEE shall provide and keep in force, throughout the term of this Lease Agreement, or any renewals thereof, for the benefit of LESSEE and LESSOR, general liability insurance policies on standard Arkansas forms of not less than $1,000,000.00 bodily injury (including death), and $50,000.00 property damage,with certificates of such insurance to be furnished to LESSOR. LESSEE shall also carry fire, windstorm and other casualty insurance upon the improvements on the demised premises with an insurance company authorized to do business within the State of Arkansas, the amount of such insurance to be not less than the fair market value of the insurable improvements upon the demised premises, and payable to any mortgagee of the LESSEE's leasehold interest, LESSEE and LESSOR as their interests appear. I, Certificates of such insurance shall be furnished to all loss payees. For purposes of this 2 Book 2019 Page 56 Lease, the parties agree that the interest of LESSW In the premises Is $20,000.00 and in the event of a covered loss, LESSOR shall be entitled to receive that amount from the insurance proceeds. In the event of destruction by fire, windstorm or other casualty the LESSEE shall, at its option, have the right to utilize the insurance proceeds to repair or rebuild the premises (in which event the LESSOR should retain its insurable interest in the premises) or to declare the Lease terminated without further liability after payment to LESSOR of its interest in the property as set out hereinabove. 6. There is currently a residential structure located on the premises. LESSEE proposes to enlarge the structure substantially and make improvements thereto and utilize it for a restaurant and other purposes consistent therewith. LESSOR covenants that the premises are zoned suitably for such purpose. LESSEE shall make the floor plans for improvements available to LESSOR for approval. In the event LESSOR disapproves, LESSEE shall have the option to either terminate the lease without liability or to modify the plans to LESSOR's satisfaction. All improvements shall be constructed in accordance with the applicable building, plumbing and wiring codes. 7. Upon the termination of this lease, title to all improvements on the demised premises shall vest in the LESSOR. Provided, however, title to all fixtures, trade fixtures and other personal property shall remain in the LESSEE and may be 3 Book 2019 Page 57 ✓\1 .� p�l�'rL 1 P.37P —�I:.-L�Yri1 tycr t removed by LESSEE provided that LESSEE shall repair any damages mi e, , p p g to the pre s s caused by such removal. 8. LESSEE agrees to maintain the demised premises in a safe and sanitary I condition and further agree that it shall engage in no unlawful activities upon the demised premises nor to allow any activities or conditions to exist thereon which would constitute a nuisance. LESSOR reserves the right to inspect the premises at any I reasonable time. 9. LESSOR agrees that LESSEE shall have full and exclusive possession i I of the demised premises during the term of this lease, and LESSOR further warrants that LESSEE shall have quiet possession of the demised premises and LESSOR shall defend LESSEE against any adverse claim to the right of possession of the demised premises during the term of this lease. 10. LESSEE is hereby given and granted the option to renew and extend is lease for FOUR (4) additional FIVE (5) year terms, each renewal term to commence at the expiration of the preceding term. Any of the options granted to LESSEE may be exercised by LESSEE only if LESSEE is not in default under this Lease Agreement at the time of such exercise. An option to renew and extend must be exercised, if at all, by the giving of written notice to the LESSOR by LESSEE not less than NINETY (90) days prior to the expiration of the original term of this lease or of a renewal term then in effect, as the case may be. The monthly rental for the first 4 Book 2019 Page 58 •_•fit;^:. .:..`_•;�r: .1 I renewal term shall be determined by reference to the change in the United States Department of Labor Consumer Price Index, All Items, Urban Consumers applicable to the Little Rock, Arkansas, region (the "CPI") from the time of execution of this lease until the end of the first term of this lease, but in no event shall the initial rent for the first renewal term be decreased nor shall it exceed $200.00 per month. The rental for each additional term shall be determined in the same manner, referencing the change in the CPI from the beginning of the preceding term and the end of the preceding term. In the event that the computation of the adjusted monthly rent is delayed because the CPI has not yet been released or for any other reason, said computation shall be made as soon as reasonably possible thereafter, and once said computation is completed, LESSEE shall make payments of the adjusted monthly rent retroactive to the Renewal Date of the applicable year. If the CPI is changed from the current base year (i.e., 1967 = 100), the CPI shall be converted in accordance with the conversion factor published by the U. S. Department of Labor. If the CPI is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result. 11. Upon the termination of this Lease Agreement, the LESSEE agrees to immediately surrender possession of the demised premises to the LESSOR, and LESSOR shall not be guilty of trespass nor in any way liable to LESSEE for retaking possession of the demised premises in such event. 5 Book 2019 Page 59 250:- if gCUICE.-� :r try �:,ni,•c i` - i 12. LESSEE shall keep all improvements upon the demised premises in a good state of repair during the term of this lease and the cost thereof shall be borne by LESSEE. 13. In the event of any material breach of this Lease Agreement, LESSOR shall have the option of giving LESSEE THIRTY (30) days' written notice to cure such breach, and if LESSEE fails to do so within THIRTY (30) days from receipt of such written notice, LESSOR shall have the option of immediately terminating this Lease Agreement. The failure of LESSOR to exercise this option as regards any particular breach shall in no event be construed as a waiver of his option to terminate the Lease Agreement with respect to any future breach. r` 14. In the event that LESSEE should be adjudicated a bankrupt,or its assets placed in receivership, then this Lease Agreement shall, without notice, be immediately terminated, and in such event, the provisions of paragraph 7 hereof shall be fully applicable. 15. In the event the LESSEE shall desire to terminate this lease, prior to the expiration of the regular term hereof, then it shall have the option of doing so, provided that notice of their intentions to do so is given to LESSOR at least ONE HUNDRED EIGHTY (180) days prior to the date of such termination. This privilege to terminate shall not apply in the event the improvements on the premises are destroyed. 6 Book 2019 Page 60 • �!;...''?_. i t �?,E -XI ' i r: t7 16. In the event of the taking by a competent authority for any public use or purposes of the premises or a substantial part thereof(including public access and parking) so that in the opinion of the LESSEE the remaining portion is unusable for the purposes of LESSEE, then the term hereby granted shall cease on the day prior to vesting title in such authority. Rent shall be paid to and adjusted as to that day and this Lease Agreement shall terminate on that day. The condemnation award, in such event, shall be payable to LESSOR and LESSEE. As between such parties, the award shall be distributed first to LESSEE to the extent of the LESSEE's financial investment in the improvements made by them to the premises or the fair market value of the remainder of the leasehold, whichever is greater, and second to LESSOR to the full extent of its investment in the improvements made to the premises, and, third, the balance, if any, distributed between the parties in the proportion of the division made as set out above. In the event that only part of the premises is taken, then the LESSEE may, at its option, retain the remainder of the premises and restore the premises to a tenantable condition forthwith and may use the condemnation awards for such purposes and the balance, if any, payable to LESSOR. 17. This agreement shall be binding upon the parties hereto, their successors, heirs, administrators, executors and assigns. LESSEE may sublease the demised premises to a corporation or other entity formed by it for the purposes 7 Book 2019 Page 61 stated herein, provided that such shall in no way affect LESSOR's rights or LESSEE's duties hereunder. No other subletting shall be permitted without the express written consent of LESSOR, which shall not be unreasonably withheld. 18. It is understood that LESSEE intends to obtain financing from a bank for the purpose of raising funds with which to make certain leasehold improvements and place trade fixtures on the property, and that such bank shall require a collateral assignment and/or a mortgage of LESSEE's leasehold interest in the I property. LESSOR hereby consents to such assignment. LESSOR does further hereby consent that any bank holding the collateral assignment as security for the construction loan or permanent loan on the improvements shall be entitled to assume all of LESSEE's rights and obligations hereunder and have THIRTY (30) days from notice of default to cure same. 19. LESSOR agrees that it will notify LESSEE if, within the term of the lease, the LESSOR intends to sell the premises and LESSEE shall have a period of THIRTY (30) days within to agree to purchase the property upon the same terms and conditions of any bona fide offer received by LESSOR for the purchase of the property. LESSOR shall give such notice, in writing, by certified mail. The election to purchase pursuant to this right of first refusal shall be, in order to be effective, in writing, addressed to LESSOR, at the address provided herein for all other notices, by certified mail, postage prepaid and postmarked not later than midnight on the 8 Book 2019 Page 62 r PC THIRTIETH (30ie) day after notice has been received by LESSEE at the address provided herein for all other notices. 20. All notices required or permitted to be given hereunder shall be given in writing and shall be sent by certified United States mail, return receipt requested, postage prepaid, addressed as follows (or to such other address to which any party hereto shall have given the other written notice): If to LESSOR: City of Batesville 500 East Main Street Batesville, AR 72501 If to LESSEE: Lockhouse, Inc. 140 Dixie Street Batesville, Arkansas 72501 Notice to any LESSOR or any LESSEE shall be deemed notice to all LESSORS or LESSEES. 21. It is agreed by the parties hereto that the foregoing terms of this Lease Agreement express and embody the entire agreement of the parties hereto concerning the demised premises and the lease thereof. This Lease Agreement is binding upon personal representatives, heirs, successors and assigns of all parties. EXECUTED in duplicate originals this day of August, 1999. LESSOR: CITY OF BATESVILLE By: 4�- e Biard, Mayor 9 Book 2019 Page 63 -E AZ A C. 51 LESSEE: LOCKH SE, INC A"-By. Danny Dozler,'PreAdent ATTEST: lCathy d6zier, Secretary ACKNOWLEDGMENT STATE OF ARKANSAS ) ) ss. County of Independence ) On this day, before me, a Notary Public duly commissioned, qualified and acting, within and for the said County and State, appeared in person the within named Joe Biard, to me personally well known, who stated that he was the Mayor of the CITY OF BATESVILLE, and was duly authorized in that capacity to execute the foregoing instrument for and in the name and behalf of said City of Batesville, and further stated and acknowledged that he had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal on this 13tA day of August, 1999. Notary Public My Commission Expires: (W 3 92�009 10 Book 2019 Page 64 Gi)4 d r:j- a Not ACKNOWLEDGMENT STATE OF ARKANSAS ) 5s, County of Independence On this day, before me, a Notary Public duly commissioned, qualified and acting, within and for the said County and State, appeared in person the within named Danny Dozier and Cathy Dozier, to me personally well known, who stated that they were the President and Secretary of LOCKHOUSE, INC., a corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. IN TESTIMONY WHEREOF, I have hereunto set my hand and official sea] on this Lj5day of August, 1999. iW Notary Public T� My Commission Expires: S3 01 Dog ..-ertify oias instrup.ert Pri ang recorded in Desul Boo,,I 'N-4 14 es 2502 2514 t dia Nobles "Liri- ciev'- f C-WyFj-\D—Va y�lulbo. lo,\L—&Ve w-Lb Cry of AmrZ4-?d 11 Book 2019 Page 65 FOP, DIC/1 14657 e-a-ded in tit? kwe VC-4 51 ir,,s�z Look I Fay ASSIGNMENT �'=t-1 j-�,fft� .7D08:0E. PM �iaudia k�t1�5 �irn;it C12ri: � in�tgr: r:e C-5;nb, AR This assignment is made on the 13TH day of AUGUST , 2003, by Lockbouse SOBA, LLC, and Randy and Lisa Palmer, individually, and Jeff and Kathy Davis, individually, hereinafter referred to as the Assignors and First Community Bank of Batesville, Arkansas referred to as the Assignee. The Assignor hereby assigns to the Assignee all of its or their right, title and interest in and to a certain lease hold mortgage agreement of date October 25, 2001 and filed in Deed of Trust Book R-22, at pages 153-160 of the Records of Independence County, Arkansas. To have and to hold the same unto the Assignee and unto the successors, legal representatives, and assigns of the , assignee forever. LOPPOYSE SOBA LLC jjZ-3 Palmer R y P mer n ielua 1 y L s a er L sa Pka mer Individually Jeff v s Jeff Vavis I duall `rJLIA �+ .,Jlp Ka by D s Kathy Da e Individually Book 2019 Page 66 . � EXKMIT"A" TO MORTGAGE wcrtad in t're -.tcve (LOCKHOUSE S.O.B.A.,LLC ) Ce`i cf Try;. t;,wk l aPt A Leasehold interest in the following described lands: A tract of land being a part of the NE 114 of Section 21, Township 13 North, Range 6 West in the City of Batesville, Independence County. Arkansas, more particularly described as follows: Commencing at the Northeast corner of said Section 21;thence North 90 degrees 00 minutes 00 seconds West, 1337.85 feet; thence South 00 degrees 00 minutes 00 seconds West, 1726.74 feet to the point of beginning;thence North 64 degrees 05 minutes 30 seconds East, 138.85 fat to the Nominal South edge of an asphalt road; thence along said nominal South edge the following; South 65 degrees 57 minutes 18 seconds East, 11.71 feet;South 47 degrees O t minutes 15 seconds Fast, 20.33 feet;along a curve to the left said curve having a long chord bearing of Sault 77 degrees 21 minutes 21 seconds East a long chord distance of 51.81 feet; North 72 degrees 18 minutes 32 seconds East, 14.86 feet, along a curve to the right said curve having a long chord bearing of South 72 degrees 27 mtr ums 30 seconds East a long chord distance of 15.35 feet; South 37 degrees 13 minutes 33 seconds East, 72.58 feet; South 12 degrees 31 minutes 24 seconds East, 12.99 feet to the nominal North edge of a crushed stone driveway thence along said nominal North edge the following; South 37 degrees 11 minutes 19 seconds West, 33.77 feet;South 60 degrees 16 minutes 20 seconds West, 15.53 feet South 12 degrees 44 minutes 30 seconds West, 56.03 feet; South 33 degrees 31 mimics 55 seconds West, 21.12 feet; thence South 59 degrees 40 mimms 33 seconds West,97.91 feet to the nominal East face of a rock wall; thence North 32 degrees 05 minutes 47 seconds West along said nominal East face and along the extension of said east face,237.90 feet to the point of beginning. Containing 0.95 acres,more or less,subject to any and all easements. Also the following two road access easements: #1 Road Easement Description A tract of land being a part of the NE 114 of Section 21, Township 13 North,Runge 6 West in the City of Batesville,independeoce County, Arkansas,more particularly described as follows; Commencing at the Northeast corner of said Section 21, thence North 90 degrees 00 minutes 00 seconds West, 1337.95 feet; thence South 00 degrees 00 mimms 00 seconds West, 1726.74 feet; thence North 64 degrees 05 minutes 30 seconds East, 28.14 feet to the point of beginning;thence North 43 degrees 31 minutes 54 seconds West, 11.67 fat to the nominal Sauk edge of an asphalt road; thence along said nominal Satoh edge the following; North 65 degrees 33 minutes 34 seconds East,96,81 fat;along a curve to the right said curve having a long chord beating of South 89 degrees 34 minutes 33 seconds East a long chord distance of 19.49 feet; thence South 64 degrees 05 minutes 30 seconds West, 110.71 feet to the point of beginning. Corahfng 0.02 acres, more or less. #2 Road Fa_sement Description A tract of land being a part of the NE 114 of Section 21,Township 13 North, Range 6 west in the City of Batesville. Independence Cotmty, Arkansas, more particularly described as follows: Commencing at the Northeast corner of said Section 21;thence North 90 degrees W minutes 00 Book 2019 Page 67 `„)003 14660 Gp(nrde.j jr, t'"2 .koy '2 ACKNOWLEDGMENT STATE OF ARKANSAS j SS. COUNTY OF INDEPENDENCE ) On this day before the undersigned personally appeared Randy and Lisa Palmer, individually, and Jeff and Kathy Davis, individually, known to me to be the persons whose names are subscribed to the within instrument and acknowledged that they had executed the same for the purposes therein contained. In Witness Whereof, I hereunto set my hand and official seal this 15 —day of/�tv_��", 2003. (w,/t"'-DhV% Case.. Notary Pftblic My Commission Expires: 1!r !G-o9 f F f d Book 2019 Page 69