Atlantic & East Carolina Railway Co. v. Southern Outdoor Advertising, Inc.

HORTON, Judge.

On 30 August 1939, the North Carolina Railroad Company, as lessor, and plaintiff Atlantic and East Carolina Railway Company (Atlantic), as lessee, entered into a lease for certain properties including a tract located at 2600 Arendell Street in Morehead City. On 7 January 1985, Atlantic, as sublessor, entered into a sublease with defendant Southern Outdoor Advertising, Inc. (Southern). The haben-dum clause of the sublease stated the following:

TO HAVE AND TO HOLD said leased premises unto Lessee for a term of FIVE YEARS (hereinafter called “primary term”), beginning as of the 15th…