Exhibit 10.5
 
 
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AIR COMMERCIAL REAL ESTATE ASSOCIATION
STANDARD INDUSTRIAL/COMMERCIAL
MULTI-TENANT LEASE - GROSS

 
1.           Basic Provisions ("Basic Provisions").
1.1           Parties: This Lease ("Lease"), dated for reference purposes only
December   15, 2008 is made by and between Brad  Smith ("Lessor") and Organic
Alliance, Inc.("Lessee"), (collectively the "Parties", or individually a
"Party").
1.2(a)      Premises: That certain portion of the Project (as defined below),
including all improvements therein or to be provided by Lessor under the terms
of this Lease, commonly known by the street address of
401   Monterey  Street   Suite   202 , located in the City of Salinas , County
of Monterey, State of California, with zip code 93901, as outlined on Exhibit
A attached hereto ("Premises") and generally described as (describe briefly the
nature of the Premises): 1,394 square feet of professional
office  space                                 
_____________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________
In addition to Lessee's rights to use and occupy the Premises as hereinafter
specified, Lessee shall have non-exclusive rights to any utility raceways of the
building containing the Premises ("Building") and to the Common Areas (as
defined in Paragraph 2.7 below), but shall not have any rights to the roof, or
exterior walls of the Building or to any other buildings in the Project. The
Premises, the Building, the Common Areas, the land upon which theyare located,
along with all other buildings and improvements thereon, are herein collectively
referred to as the "Project." (See also Paragraph 2)
1.2(b)  Parking: 6   unreserved vehicle parking spaces . (See also Paragraph
2.6)
1.3       Term: 1 years and 0 months ("Original Term") commencing December 15,
2008 ("Commencement Date") and ending December 31, 2009 ("Expiration Date").
(See also Paragraph 3)
1.4        Early Possession: N/A ("Early Possession Date"). (See also Paragraphs
3.2 and 3.3)
1.5        Base Rent: $ 2, 230. 40 per month ("Base Rent"), payable on the
1st day of each month commencing February 1, 2009 . (See also Paragraph 4}
[x] If this box is checked, there are provisions in this Lease for the Base Rent
to be adjusted.
1.6         Lessee's Share of Common Area Operating Expenses: N/A percent (
N/A%) ("Lessee's Share").
Lessee's Share has been calculated by dividing the approximate square footage of
the Premises by the approximate square footage of the Project.  In the event
that the size of the Premises and/or the Project are modified during the term of
this Lease, Lessor shall recalculate Lessee's Share to reflect such
modification.
1.7         Base Rent and Other Monies Paid Upon Execution:
(a)  Base Rent: $ 3, 494 . 35 for the period December 15, 2008 - January
31,  2009
(b)  Common Area Operating Expenses: $  N/A for the period N/A.
(c)  Security Deposit: $ 2, 230. 40 ("Security Deposit"). (See also Paragraph 5)
(d)  Other: $ N/A for N/A.
(e)  Total Due Upon Execution of this Lease: $5,724.75
1.8         Agreed Use: Professional
offices                                                                                                                                               
_____________________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________________
                                                                                                                                                                                                                                                                            
  . (See also Paragraph 6)
1.9         Insuring Party. Lessor is the "Insuring Party". (See also Paragraph
8)
1.10       Real Estate Brokers: (See also Paragraph 15)
(a)  Representation: The following real estate brokers (the "Brokers") and
brokerage relationships exist in this transaction (check applicable boxes):
[ ] __________________________________represents Lessor exclusively ("Lessor's
Broker");

[ ] __________________________________represents Lessee exclusively ("Lessee's
Broker"); or

[x]   NAI BT   Commercial   Real   Estate              represents both Lessor
and Lessee ("Dual Agency").
(b)  Payment to Brokers: Upon execution and delivery of this Lease by both
Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a
separate written agreement (or if there is no such agreement, the sum of  per
agmt or   % of the total Base Rent for the brokerage services rendered by the
Brokers).

 
1.11           Guarantor. The obligations of the Lessee under this Lease are to
be guaranteed by_______________________________________________________________
__________________________________________________________________________________________________________("Guarantor").
(See also Paragraph 37)
1.12           Attachments. Attached hereto are the following, all of which
constitute a part of this Lease:

 
[ ] an Addendum consisting of Paragraphs_______through_________;
[ ] a site plan depicting the Premises;
[ ] a site plan depicting the Project;
[ ] a current set of the Rules and Regulations for the Project;
[ ] a current set of the Rules and Regulations adopted by the owners'
association;

 
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INITIALS
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©1998 - AIR COMMERCIAL REAL ESTATE ASSOCIATION                 
  FORM MTG-7-'06/07E

 
 

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shall, within 30 days after request, deliver to the other Party satisfactory
evidence of such authority.
(b)  If this Lease is executed by more than one person or entity as "Lessee",
each such person or entity shall be jointly and severally liable hereunder.   It
is agreed that any one of the named Lessees shall be empowered to execute any
amendment to this Lease, or other document ancillary thereto and bind all of the
named Lessees, and Lessor may rely on the same as if all of the named Lessees
had executed such document.
(c)  This Lease may be executed by the Parties in counterparts, each of which
shall be deemed an original and all of which together shall constitute one and
the same instrument.
44.           Conflict.  Any conflict between the printed provisions of this
Lease and the typewritten or handwritten provisions shall be controlled by the
typewritten or handwritten provisions.
45.           Offer.   Preparation of this Lease by either party or their agent
and submission of same to the other Party shall not be deemed an offer to lease
to the other Party. This Lease is not intended to be binding until executed and
delivered by all Parties hereto.
46.           Amendments. This Lease may be modified only in writing, signed by
the Parties in interest at the time of the modification. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by a Lender in connection with the obtaining of normal financing or
refinancing of the Premises.
47.           Waiver of Jury Trial.  THE PARTIES HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR
ARISING OUT OF THIS AGREEMENT.
48.           Mediation and Arbitration of Disputes.  An Addendum requiring the
Mediation and/or the Arbitration of all disputes between the Parties and/or
Brokers a rising out of this Lease [ ] is [x] is not attached to this Lease.
49.           Americans with Disabilities Act. Since compliance with the
Americans with Disabilities Act (ADA) is dependent upon Lessee's specific use of
the Premises, Lessor makes no warranty or representation as to whether or not
the Premises comply with ADA or any similar legislation.   In the event that
Lessee's use of the Premises requires modifications or additions to the Premises
in order to be in ADA compliance, Lessee agrees to make any such necessary
modifications and/or additions at Lessee's expense.
50.           Option to Extend. Lessee shall reserve the right to extend the
Lease for two (2) extension terms of one (1) year each at the same terms and
conditions including annual rental increases. Leesee shall provide ninety (90)
days written notice should It elect to exercise the option(s).
51.           Tenant Improvements. Lessor at Lessor's sole cost and expense
shall construct a doorway between the conference room and the mam office as seen
on the attached floor plan. Additionally, Lessor shall deliver the space with
paint touched up where necessary and carpets cleaned.
52.           Annual Rental Increases. If Lessee exercises their option(s) to
extend, upon each Lease Option, on the Lease anniversary the annual base rent
shall increase by 3%.
 
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL
REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL
EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES. THE PARTIES ARE URGED TO:
1.           SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
LEASE.
2.           RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE
CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED
TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES,
THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS,
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE
PREMISES FOR LESSEE'S INTENDED USE.

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE IN WHICH THE PREMISES ARE LOCATED.
 
The parties hereto have executed this Lease at the place and on the dates
specified above their respective signatures.

 
Executed at:  Salinas, CA
Executed: Salinas, CA On: 12-15-08 On: 12-11-08     By LESSOR: By LESEE: Brad
Smith Organic Alliance, Inc.     By: /s/ Brad Smith By: Parker Booth Name
Printed: Brad Smith Name Printed: Parker Booth Title: Owner Title: President    
By: By: Name Printed: Name Printed: Title: Title:     Address: 590 Brunken
Avenue Address: 1250 NE Loop 410 Salinas, CA 93901 Suite 320   San Antonio, TX
78209 Telephone: (831) 753-6487   Facsimile: (831) 349-1059 Telephone: Federal
ID No. Facsimile:   Federal ID No.                 PAGE 16 OF 17 ©1998 - AIR
COMMERCIAL REAL ESTATE ASSOCIATION  [inital2.jpg]

 

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BROKER: BROKER: NAI BT Commercial Real Estate SAME             Att: Daniel
Vorhies Att: Title:  Associate Title: Address: 328-B Main Street Address:
Salinas, CA 93901 Telephone: Telephone: (831) 449-8000 Facsimile: Facsimile:
(831) 769-0314 Federal ID No. Federal ID No.      

 

NOTICE: These forms are often modified to meet changing requirements of law and
industry needs. Always write or call to make sure you are utilizing the most
current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite
800, Los Angeles, CA 90017. Telephone No. (213) 687-8777. Fax No.: (213)
687-8616.

 
(c)Copyright 1998 By AIR Commercial Real Estate Association.
Ail rights reserved. No part of these works may be reproduced in any form
without permission in writing.
 
 

 
 
 
 
 
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