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after written notice of violation thereof has been given by Lessor to Lessee, Lessor may immediately or at any time thereafter by giving Lessee not less than fifteen (15) days written notice, terminate this lease, and this lease shall expire upon the date specified in such notice.

(3) In the event Lessee shall default in the performance of any other terms, covenants or conditions of this lease, and such default continues for sixty (60) days after written notice thereof has been given by Lessor to Lessee, Lessor may upon the expiration of said sixty (60) days or at any time thereafter, by giving Lessee not less than fifteen (15) days written notice, terminate this lease, and this lease shall expire upon the date specified in such notice. b. Lessee shall on or before the effective date of termination or expiration of this lease, regardless of the method or cause thereof, quietly and peaceably vacate and remove from the premises all his stock, personal property, goods and effects, and surrender and yield up possession of the premises to Lessor; provided that, in the event Lessee fails to so remove said articles, they shall either become the property of Lessor, without liability of any kind to Lessee, or Lessor is hereby authorized to enter the premises and effect the removal, cooperage, cartage, and storage of such articles as agent of and at the cost and expense of Lessee, and in such event, Lessor. shall have a lien thereon for such removal, cooperage, cartage, and storage or Lessor may designate others to effect such removal, cooperage, cartage, and storage and a lien shall likewise inure to them.

c. Should Lessee occupy the premises after termination or expiration, such occupancy shall in no event be construed as an extension of the term herein but shall be at the will of Lessor and in other respects on the terms and conditions herein contained. In the event Lessee fails to so vacate and remove as aforesaid, Lessee shall pay rent as provided for herein to the date of actual vacating and removal. Acceptance by Lessor of rental or any other payments under this lease before or after its expiration or termination shall not reinstate, continue or extend the term of this lease, create any new tenancy, or affect any notice given to Lessee prior to receipt of such rental or other payments, or in any manner whatever waive, modify or affect any rights or remedies which Lessor may have by virtue of this lease, or be construed as an election not to proceed with any of Lessor's remedies. It is agreed that after service or giving of any notice or the commencement of any legal proceeding or after final judgment for possession of the premises, Lessor may receive and collect any rent or other payments due without waiving or affecting any such notice, proceeding or judgment.

d. If Lessor at any time rightly seeks to recover possession of the premises, and is obstructed or restricted therein or if Lessee or any person under his control fails to give Lessor possession, and any litigation thereon ensues, Lessee shall be bound to pay Lessor or its assignee the cost and expenses thereof, including a reasonable attorney's fee and also, as actual liquidated damages and not a penalty, for each day that Lessee shall retain possession of the premises or any part thereof after termination or expiration of this lease, an amount equal to one one-hundredtwentieth (1/120) of the guaranteed minimum annual rental established under this lease; it being recognized that the actual damages caused by the failure to vacate and surrender possession when due, while real and substantial, are very difficult, if not impossible, of accurate ascertainment.

16. Notices. All notices or other communications hereunder to Lessee may be given or served by mailing the same to him at his address shown in the first paragraph hereof, or by delivering a copy thereof to him in person, or by leaving it addressed to him at his place of business in Oak Ridge, with any person then in charge of the same. Notices or other communications to Lessor shall be served in person or by mailing same to its office in Oak Ridge, Tennessee, or to such other place as Lessor may from time to time designate in writing.

17. Strikes. Whenever under this lease a time is stated or provided for the making of maintenance, repairs, replacements, alterations, additions or improvements by either party hereto, and during all or any part of the time so allowed any strike or work stoppage is in effect or occurs, or any other event beyond such party's power to control, causing delay, the period of such delay so caused shall be added to the time stated elsewhere in this lease for the completion of such work, and such party shall not be responsible to the other for such delay, nor shall any. other of the terms and conditions of this lease be affected thereby.

18. Lessor's rights and remedies.-No waiver implied. All rights and remedies of Lessor under this lease shall be cumulative, and none shall exclude any other allowed Lessor by law, and the use of or resort to any one or more shall not exclude or be deemed a waiver of any other or others; nor shall any express or implied waiver of a breach of any term, covenant or condition of this lease consti

tute or be construed as a waiver of any other breach of the same or any other term, covenant or condition.

19. Protection Against Claims and Losses.

a. Lessee shall at all times save and keep the Lessor, Commission and Governmeht free and harmless from any and all liability for injury to or death of persons or loss of or damage to property arising out of or connected with the erection or removal of any building or part thereof on, or the making of any maintenance, repairs, replacements, alterations, additions or improvements to, or the use of the premises or any part thereof by Lessee or any other person holding under him or permitted by him to be on or about the premises. If any suit, action, or other legal proceeding shall be brought against the Lessor, Commission and/or Government alleging any such liability, Lessee shall upon written request from them or any of them assume the defense thereof in accordance with such request, and shall in any event pay all attorney's fees, costs and expenses in connection therewith, and satisfy any judgment that may be rendered as a result of such legal proceeding or claim.

b. Lessee shall have the right at his own expense to insure his interest or rights under this lease and in the premises against damage or loss from any excepted peril or other risks.

c. Lessee shalı carry and pay the cost of the following insurance policies, in at least the amounts indicated for each, covering injury to persons or property or death to persons who may be injured or killed in or about the premises or as a result of any accident arising out of the conduct of the business under this lease: (1) Public Liability: $50,000 one person, $100,000 more than one person. (2) Property Damage: $5,000 each accident.

All said policies of insurance shall contain an endorsement for ten (10) days' advance written notice to Lessor by registered mail of change or cancellation. Evidence of such insurance in the form of certificates in quadruplicate are to be sent to Lessor. In the event that Lessee fails to pay any premium for the insurance which he is required to maintain hereunder, Lessor may pay the same and shall be reimbursed therefor by Lessee.

20. This Lease the Entire Agreement.

1. Lessee, prior and as a condition precedent to his acceptance of the premises and execution of this lease, has carefully inspected and examined the premises and adjacent areas and knows the condition thereof; and his taking possession under this lease shall be conclusive evidence that he has received the premises in acceptable order and repair, and that no representation had been made to him as to the conclusion or repair of, or for the decoration, alteration, repair or improvement of the premises or areas except as expressly provided for herein. If Lessor is unable to give Lessee possession of the premises by the first day of the term specified in paragraph 3. above, for any cause or reason beyond the direct control of the Lessor, Commission or Government, the Lessor, Commission or Government shall not be liable for damages to the Lessee therefore, but the rental provided for hereunder shall abate (and if paid in advance shall be rebated) until such time as Lessee is able to enter into and occupy the premises.

b. This lease evidences the entire agreement between the parties, and all representations, negotiations, understandings and agreements heretofore made by the parties, their agents or representatives shall be deemed to have been and hereby are merged into and superseded by this lease and neither party shall be bound by any not herein expressly stated.

21. Miscellaneous.

a. Covenants run with land: All the covenants, terms and conditions herein contained shall run with the land and be binding upon Lessee's heirs, representatives, successors and assigns.

b. Taxes: Lessee agrees that during said term he will promptly pay such taxes, levies and assessments, if any, as may be lawfully imposed upon his property or interest upon or in the premises or the business conducted therein during said term by any state, county or other public authority.

3. No exclusive rights: Lessee is not granted any exclusive rights for the conduct of any activity within the Oak Ridge Area.

d. Officials not to benefit: No member of or delegate to Congress, or resident commissioner shall be admitted to any share or part of this lease or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this lease if made with a corporation for its general benefit.

e. Government appropriations: It is understood and agreed that obligations of the Lessor, Commission and/or Government hereunder requiring the expenditure of money shall be subject to the availability of appropriations therefor.

f. Approval by Commission: This lease shall not become binding or effective until approved in writing by the Commission.

g. Agent not liable in own right: It is agreed that Roane-Anderson Company in executing and administering this lease is acting solely in the capacity of Agent for and in behalf of the Government under the contract referred to in the first paragraph of this lease and Lessee may look as regards all covenants, agreements and warranties herein contained to the Government and/or the Commission, or to Roane-Anderson Company only as and while it continues to act as Agent as aforesaid, and not to it in its private capacity, or its officers, agents, or representatives, as regards any matter which may arise by virtue of this lease.

h. Change of agency; assignment: It is agreed that the Commission may at any time and from time to time designate others to act hereunder as Agent and/or Lessor in the place and stead of Roane-Anderson Company, with all or such of the Lessor's powers, responsibilities, rights, or remedies under this lease, as the Commission may authorize or direct; and this lease or any of Lessor's rights and remedies hereunder, may be assigned by Lessor to the Commission, Government or any other person as authorized or directed by the Commission at will, or the premises may be so assigned subject to this lease, and any such assignee may assign or reassign to others at will without affecting the continuation of this lease in full force and effect in every other respect.

i. Paragraph headings: The headings of particular paragraphs are for convenience only and do not define, limit or construe the contents thereof.

j. Definitions: As used in this lease: (a) the word "Government" means the United States of America; (b) the word "Commission" means the United States Atomic Energy Commission, its successors and assigns, or its or their duly authorized representative or representatives; and (c) the word "Lessee" means the lessee or lessees whether there is one or more than one lessee, and includes any transferee or successor to the Lessee approved by the Lessor in accordance with subparagraph 8. a.

In witness whereof, the parties hereto have executed this lease in quadruplicate as of the day and year first above written.

ROANE-ANDERSON COMPANY,
As agent as aforesaid.

(Signed) L. C. Macneal,
(Typed) L. C. MACNEAL,

Project Manager.

This instrument was executed by L. C. Macneal for and on behalf of the RoaneAnderson Company pursuant to a Power of Attorney dated August 4, 1947, effective September 1, 1947, now on file in the office of the United States Atomic Energy Commission, Oak Ridge, Tennessee.

Witnesses for Roane-Anderson Company:

LOUISE E. MURPHY,
Oak Ridge, Tenn.

MARY ELLEN BROWN,
Oak Ridge, Tenn.

Witnesses for Lessee:

W. E. BROWN,

Chattanooga, Tenn.

ANDREW JOHNSON,

Knoxville, Tennessee.

LOVEMAN'S INC.,

By R. L. Moore, JR.,

President.

CERTIFICATION

I, R. S. Porter, certify that I am the duly qualified Secretary of Loveman's, Inc., named as Lessee in the foregoing lease, that R. L. Moore, Jr., who signed the foregoing lease on behalf of the Lessee was then President of said Corporation; that said lease was duly signed for and on behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

In witness whereof, I have hereunto affixed my hand and the seal of said Corporation this 10th day of March 1950.

Approved:

Date: March 11, 1950.

STATE OF TENNESSEE,

County of Anderson, ss:

R. S. PORTER, Secretary.

RUSSELL FIELD,

Authorized Representative of the
U. S. Atomic Energy Commission.

(For Lessor)

Before me, Louis E. Murphy, a Notary Public of the State and County aforesaid, personally appeared L. C. Macneal, with whom I am personally acquainted, and who, upon oath, acknowledged himself to be Project Manager of RoaneAnderson Company, the within-named bargainer, a corporation, and that he as such Project Manager being authorized so to do, executed the foregoing lease for the purposes therein contained, by signing the name of the corporation by himself as Project Manager.

Witness my hand and seal, at office in Oak Ridge, Tennessee, this the 11th day of March 1950.

My commission expires the 7th day of January 1954.

LOUISE E. MURPHY, Notary Public. (For Lessee)

STATE OF TENNESSEE,

County of Hamilton, ss:

Before me, E. L. Pooham, a Notary Public of the State and County aforesaid, personally appeared R. L. Moore, Jr., with whom I am personally acquainted, and who, upon oath, acknowledged himself to be President of Loveman's, Inc., the within-named bargainer, a corporation, and that he as such President being authorized so to do, executed the foregoing lease for the purposes therein contained, by signing the name of the corporation by himself as President.

Witness my hand and seal, at office in Chattanooga, Tenn., this the 10th day of March 1950.

My commission expires the 18th day of October 1953.

APPENDIX "A"

E. L. POOHAM, Notary Public.

DESCRIPTION OF LEASED PREMISES

All those certain premises consisting of approximately 18,631 sq. ft. on the main floor and approximately 18,075 sq. ft. in the basement of the east portion of Building No. 1836-T, located on the south side of Broadway and east of Towne Road, in Oak Ridge, Anderson County, Tennessee, previously occupied by Taylor's Department Store, and being the shaded area more particularly described on Drawing No. L-1836-T (S-1), dated February 20, 1950, entitled "Loveman's, Inc.-Location Plan and Premises in Lease Agreement" attached as Appendix "B."

APPENDIX "B"

Location Plan and Premises-Loveman's, Inc. Drawing No. L-1836-T (S-1), dated February 20, 1950 as attached.

(Plans showing location of Loveman's Department Store, Oak Ridge, have been removed and are on file in the offices of the Joint Committee on Atomic Energy.)

EXHIBIT 7

(Referred to on p. 63)

UNITED STATES ATOMIC ENERGY COMMISSION,

Washington, March 16, 1950.

In reply refer to:

PCO: CAT

Honorable CHET HOLIFIELD,

Chairman, Subcommittee of the Joint Committee on Atomic Energy,

United States Congress.

DEAR MR. HOLIFIELD: As indicated at the hearing before your subcommittee on March 14, concerning the department store lease at Oak Ridge involving Taylor's Oak Ridge Corporation and Loveman's, Inc., of Chattanooga, I wish to submit the following supplemental information for insertion in the record:

A. Four telegrams as follows:

1. From John Wender relative to separate costs for fixtures, etc., paid by him to Taylor; also his lease relations with Taylor's.

2. From Joseph Huwyler, Flower Shop Operator, relative to payments by him to Taylor for fixtures, etc., together with offer to furnish photostatic copy of his subconcession agreement.

3. From Joseph Weir, Beauty Parlor Operator, relative to payments by him to Taylor for fixtures, etc., together with offer to furnish photostatic copy of his subconcession agreement.

4. From Harry Busch, Royal Jewelers, relative to relations with Taylor's prior to his option to retire from his contract.

B. Statement from H. B. White, Manager, Commercial Realty Division, Roane-Anderson Company, and C. M. Winfrey, Manager, Rental Department, Roane-Anderson Company, relative to discussions with Leonard Marx of Marx Realty Company, together with copy of letter, Winfrey to Marx. C. Statement by J. Wallace Ould, Assistant General Counsel, Oak Ridge, relative to effect of State Court injunction preventing consummation of Loveman deal until lifted, together with back-up photostats.

I should also like to advise that officials of our Oak Ridge Office and of RoaneAnderson Company have clarified in several respects the leasing procedures used by them in the initial stages of the long-term leasing program.

The lease agreement made in the present case was arrived at in accordance with the original procedure developed last Fall and was one of the first few long-term leases executed under the long-term leasing policy. A copy of this procedure, dated October 27, 1949, and entitled "Policy and Procedure for Soliciting Proposals for Leases at Oak Ridge," is enclosed. You will note that this procedure is substantially in accord with that explained in the memorandum of January 23, 1950, from Mr. Cook to me, a copy of which was submitted at the hearing on March 13.

Under the original procedure, the formal lease agreement was based upon the general understandings evidenced by the advertisement for proposals, the application form given to all persons desiring to submit proposals, and reference to the standard or specimen lease form. General information was given verbally or in writing (depending on whether the applicant was available for personal contact) to interested parties (including specific information as to the kind of business operation which was considered particularly advisable from the landlord standpoint, especially in those comparatively few instances where it was considered important in order to meet a community demand for merchandise or services), the written proposal from the applicant, and the notice of the award.

This procedure has been reviewed and is being altered with the purpose of further clarification and improvement, particularly on the following points: 1. To clarify advertisements inviting proposals to indicate more clearly the premises that are available and the type of services desired in those instances where a specified type of operation is required

In those exceptional cases where proposals are desired for a particular type of business (such as a department store), proposals will continue to be solicited for this type of service or merchandising. We will modify the present practice in these exceptional cases so as to give all applicants written notice of any particular features of the proposed business which are necessary in evaluating various proposals.

To further encourage the submission of proposals which are as complete and specific as possible in all details, efforts will be made to utilize the regular appli

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