- 10 -
Lease Agreements
Petitioner usually represented both sides of the lease
transactions between himself and Shaw’s Gulf. Petitioner signed
the lease agreements as the legal owner of the property, as
lessor, and as the legal representative of Shaw’s Gulf, as
lessee, for the following properties: Buy N Bye #2, Buy N
Buy #6, Buy N Buy #7, Buy N Bye #12, Buy N Bye #13, Western
Sizzlin’ PC, and the airplane. Kellum signed as the legal
representative of Shaw’s Gulf, as lessee, on the leases for
Western Sizzlin’ SW, Conoco Cmart #16, and the office building
located in Stillwater.
Petitioner had an appraisal done for each property he owned
and used the appraisal to determine the rental price. He
generally set the rental price based on the appraisal value and
added a 12-percent return. Kellum and Webb calculated the
numbers that assisted petitioner in determining whether he could
own, develop, and lease a particular property to Shaw’s Gulf.
Kellum typed some of the lease documents but did not research
what the fair rental value of properties would have been.
The lease agreements included the land, building, fixtures,
and equipment at the specified location. The lease agreements
also provided that Shaw’s Gulf would be responsible for the
repairs and maintenance of each property and that improvements
made by the lessee would revert to the lessor upon termination of
the lease. The lease agreements for Buy N Bye #2, Buy N Bye #6,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011