EXHIBIT 10(aa)

 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT (this “Lease”) between The Black Family Limited
Partnership, an Ohio Limited Partnership (“Landlord”), and MPW Industrial
Services, Inc., an Ohio corporation (“Tenant”) is made as of the 24th day of
June, 2005.

 

  1. Fundamental Lease Provisions. The following is a summary of the fundamental
lease provisions which are set forth in this Section 1 for reference.

 

  1.1. Effective Date of Lease: December 1, 2004.

 

  1.2. Location of Premises:

 

50321 East Russell Schmidt Boulevard

 

  1.3. Landlord(s): The Black Family Limited Partnership

 

  1.4. Address of Landlord:

 

1400 Stringtown Road; Lancaster, Ohio 43130

 

  1.5. Tenant: MPW Industrial Services, Inc.

 

  1.6. Address of Tenant:

 

9711 Lancaster Road SE; Hebron, Ohio 43025

 

  1.7. Premises: The real property and all improvements thereon described on
Exhibit A attached hereto.

 

  1.8. Initial Term Commencement: December 1, 2004

 

  1.9. Initial Term Expiration: November 30, 2009

 

  1.10. Renewal Option(s): Two (2) Renewal Term(s) of five (5) years each.

 

  1.11. Basic Rent for Initial Term: $508,800.00 per annum, payable in monthly
installments of $42,400.00 each.

 

  1.12 Basic Rent for Renewal Term(s): First Renewal Term: $508,800.00 per
annum, payable in monthly installments of $42,400.00 each; Second Renewal Term:
$508,800.00 per annum, payable in monthly installments of $42,400.00 each.

 

  1.13. Permitted Use: The operation of a container management facility and
related incidental uses.

 

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2. Demise; Term.

 

2.1. Demise. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord upon and subject to the terms, covenants and conditions set forth
herein, the Premises described in Section 1.7 hereof (the “Premises”).

 

2.2. Initial Term. The initial term of this Lease (the “Initial Term”) commences
on the date set forth in Section 1.8 hereof (the “Commencement Date”) and shall
end on the date set forth in Section 1.9 hereof unless sooner terminated
hereunder.

 

2.3. Renewal Term(s). Tenant may, at its option, extend the Initial Term for the
period(s) set forth in Section 1.10 hereof (each a “Renewal Term”), each under
the terms and conditions of this Lease, except that Tenant may not extend the
Term beyond the Second Renewal Term. Tenant shall exercise its option(s) to
extend the Term by written notice to Landlord given at least 6 months prior to
the expiration of the Term, and any applicable properly-exercised Renewal
Term(s).

 

3. Rents. Tenant covenants and agrees to pay to Landlord for the use and
occupancy of the Premises, at the times and in the manner hereinafter provided,
without demand, the following sums of money:

 

3.1. Basic Rent. Tenant shall pay to Landlord as “Basic Rent” for the Premises
during the Initial Term the amount set forth in Section 1.11 hereof, payable in
equal monthly installments in advance, on the first day of each month during the
Initial Term with the first installment due on the Commencement Date. Tenant
shall pay to Landlord as Basic Rent for the Premises during the Renewal Term(s)
the amount(s) set forth in Section 1.12 hereof, payable in equal monthly
installments in advance, on the first day of each month during the Renewal
Term(s).

 

3.2. Additional Rent. Tenant shall also pay, as “Additional Rent”, all other
sums of money or charges required to be paid by Tenant to Landlord under the
terms of this Lease whether or not the same are designated as Additional Rent.
Basic Rent and Additional Rent are sometimes hereinafter collectively referred
to as “Rents”.

 

3.3. Manner of Payment. All payments due from Tenant to Landlord hereunder shall
be made to Landlord at Landlord’s address set forth in Section 1.4 hereof or to
such other person or such other place as Landlord may from time to time
designate in writing to Tenant. All installments of Rents due for a partial
month or partial year at the beginning or end of the Term shall be prorated
based on a 30-day month and a 360-day year.

 

4. Use.

 

4.1. Permitted Use. The Premises shall be used for the permitted use specified
in Section 1.13 hereof and for no other purpose without the prior written
consent of Landlord, which consent shall not be unreasonably withheld or
delayed.

 

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4.2. Conduct of Tenant. Tenant shall use the Premises in a careful, safe and
proper manner. Tenant shall comply with all laws, rules, regulations, orders and
requirements of all governmental authorities applicable to Tenant’s particular
use of the Premises.

 

4.3. Signs. All signs placed on the Premises by Tenant shall comply with all
applicable laws, rules, regulations, orders and requirements of governmental
authorities with respect to such signs. Tenant shall maintain any signs which
Tenant places on the Premises in good condition and repair.

 

5. Maintenance and Repair of Premises.

 

5.1. Obligations of Landlord. Landlord shall have no maintenance or repair
obligations with respect to the Premises or any improvements located thereon.

 

5.2. Obligations of Tenant. Tenant agrees, at its sole cost and expense, to
maintain the Premises and every part thereof and all buildings, fixtures and
equipment thereon, including without limitation, the roof, structure, windows,
doors, plumbing, electrical and other utility lines and fixtures, landscaping,
driveways, parking areas, walkways, sprinkler, HVAC and exhaust systems serving
the Premises in good condition and repair.

 

6. Access to Premises. Landlord and its agents, employees and contractors shall
have the right, after reasonable advance notice to Tenant, to enter upon the
Premises during business hours for the purpose of inspecting the Premises, for
making repairs, alterations or additions to the Premises or for showing the
Premises to prospective purchasers, tenants or lenders. Landlord shall use
commercially reasonable efforts to minimize interference with Tenant’s use of
the Premises

 

7. Utilities. All utilities and services to the Premises, including, without
limitation, water, sewer, gas, electricity, telephone, data, security, cable TV
and trash removal, shall be secured and paid for by Tenant, at its sole cost and
expense.

 

8. Personal Property. All inventory, furnishings, trade fixtures, equipment and
other personal property (collectively “Personal Property”) of Tenant or any
third party shall be stored or kept at the sole risk of Tenant, and Landlord
shall not be liable for any loss or damage thereto. Tenant shall remove all
Personal Property from the Premises upon the expiration or earlier termination
of this Lease and Tenant shall promptly repair, at its sole cost and expense,
any damage caused by such removal.

 

9. Alterations and Improvements. Tenant shall make no alterations or
improvements which adversely affect the structural integrity of the building
located on the Premises without the prior written consent of Landlord, which
consent may be withheld in Landlord’s sole discretion. Tenant may make any other
alterations or improvements without Landlord’s consent. Tenant shall obtain, at
its expense and prior to the commencement

 

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of any such alterations or improvements, all necessary licenses, permits and
other approvals of all governmental authorities having jurisdiction over the
Premises.

 

Tenant shall (i) promptly pay all contractors, laborers and material suppliers
performing work or supplying materials on behalf of Tenant at the Premises,
(ii) not permit any liens to be filed against the Premises and (iii) indemnify
and defend Landlord from all losses, costs, claims and expenses (including
attorneys’ fees, expenses and disbursements) incurred by Landlord as a result of
Tenant’s breach of this Section 9. In the event that any such lien is filed
against the Premises, Tenant shall discharge or bond off the same within 60 days
after the filing thereof.

 

10. Assignment and Subletting. Tenant may assign this Lease and/or sublet the
Premises, or any interest herein or portion thereof, without the consent of
Landlord; provided that no such assignment or subletting by Tenant shall relieve
Tenant from its obligations and liabilities under this Lease.

 

11. Damage and Destruction. If the improvements on the Premises are wholly or
partially damaged or destroyed by fire or other casualty Landlord shall restore
and rebuild the improvements on the Premises to substantially the same condition
which existed on the Effective Date, this Lease shall remain in full force and
effect and Rents shall abate in proportion to the area of the Premises rendered
untenantable from the date of such casualty until 30 days after the completion
of Landlord’s restoration and rebuilding.

 

Landlord shall receive any and all insurance proceeds payable in connection with
the Premises and with any improvements thereto; provided, however, if this Lease
is not terminated as set forth in the preceeding paragraph, Landlord shall make
available to Tenant any insurance proceeds specifically allocated to
improvements paid for and constructed on the Premises by Tenant. Tenant shall be
entitled to receive any and all insurance proceeds payable in connection with
Tenant’s Personal Property. In no event shall Landlord be required to expend any
funds in excess of the amount of insurance proceeds received by Landlord on
account of such damage or destruction, less any out-of-pocket expenses incurred
by Landlord in securing such insurance proceeds. Notwithstanding any provision
of this Lease to the contrary (i) if the Premises is not restored by Landlord
within 180 days after the casualty; or (ii) the casualty occurs during the last
two years of the Term, Tenant may terminate this Lease by written notice to
Landlord.

 

12. Condemnation. If all or any material portion, as reasonably determined by
Tenant, of the Premises are taken under the power of eminent domain or conveyed
in lieu thereof, this Lease shall terminate effective on the date of transfer of
title and all Rents shall be adjusted as of such date. If this Lease is not
terminated as set forth in this Section, Landlord shall restore the Premises to
a useable condition. Proceeds from such taking or conveyance in lieu thereof
shall be the sole property of Landlord, and Tenant shall not be entitled to any
portion thereof, provided that Tenant shall be entitled to receive any proceeds
allocated for improvements constructed by Tenant and for moving expenses.

 

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13. Taxes

 

13.1. Real Estate Taxes. Commencing on the Initial Term Commencement Date and
continuing at all times thereafter during the Initial Term and any Renewal
Term(s), Tenant shall be responsible for and, except as otherwise expressly
provided herein, shall pay when due all personal property and real estate taxes
and assessments, both general and special, and all other charges of any kind
levied, assessed, charged, taxed or imposed by any governmental authority upon
or in respect of the Premises, the equipment, the improvements or any
improvements made by Tenant in or to the Premises, including any service charges
in lieu of taxes under any Tax Increment Financing Agreement relating to the
Premises and any tax or excise on rents levied or assessed by the State of Ohio
or any political subdivision thereof against Landlord in respect of Rents or any
other Additional Rent payable hereunder in any form, as a substitution in whole
or in part for taxes assessed or imposed by said state or any political
subdivision thereof on land and buildings or on land or buildings.

 

13.2. Tenant’s Taxes. Tenant shall pay before delinquency (i) all taxes and
assessments levied against the Personal Property, and (ii) all taxes,
assessments, fees and other charges levied against the use of the Premises and
Tenant’s business operations therein.

 

14. Insurance.

 

14.1. Tenant’s Insurance.

 

a. Liability. Tenant shall, at Tenant’s expense, maintain during the Term
liability insurance against claims for personal injury, death and property
damage resulting from the occupancy or use of the Premises by Tenant or any
officer, employee, agent, customer, licensee, invitee or sublessee of Tenant.
All such insurance shall have minimum limits of liability of Two Million Dollars
($2,000,000) per occurrence and One Million Dollars ($1,000,000) property damage
and have Tenant’s standard deductibles or retentions.

 

b. Personal Property. Tenant shall, at Tenant’s expense, maintain during the
Term property insurance with respect to all Personal Property located in, on or
about the Premises, with Tenant’s standard deductibles or retention.

 

c. General Requirements. All such policies shall name Landlord, Landlord’s
lender and any other person designated by Landlord as additional insureds.

 

14.2. Landlord’s Insurance. Landlord shall procure and maintain special form
property insurance with respect to the improvements located on the Premises, in
an amount equal to the replacement cost thereof. The out-of-pocket costs of
Landlord’s insurance shall be reimbursed by Tenant to Landlord within 30 days
after Tenant’s receipt of a copy of the invoice for such insurance.

 

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14.3 Waiver of Subrogation. Landlord and Tenant mutually agree that with respect
to any loss which is covered by insurance then being carried by them
respectively, or required to be carried under this Lease, the party carrying or
required to carry such insurance and suffering the loss hereby releases, on
behalf of itself and its insurance carrier, the other of and from any and all
claim with respect to such loss to the extent of such insurance; and further
mutually agree that their respective insurance companies shall have no right of
subrogation against the other on account thereof.

 

15. Default and Remedies.

 

15.1. The occurrence of any one or more of the following shall constitute a
default and breach of this Lease by Tenant (each a “Tenant Default”):

 

(i) The failure of Tenant to make any payment of Rents or any other amount
payable to Landlord under this Lease within 10 days after written notice from
Landlord that the same is past due.

 

(ii) The failure of Tenant to observe or perform any other provision of this
Lease, other than those described in subparagraph “i” above, within 30 days
after notice by Landlord to Tenant; provided, if more than 30 days is reasonably
required to cure such failure, Tenant shall not be in default if Tenant
commences such cure within said 30 day period and diligently prosecutes such
cure to completion within 30 days after such notice.

 

15.2. Upon a Tenant Default, Landlord may terminate this Lease by judicial order
and reenter the Premises and dispossess Tenant or other occupants by judicial
order and remove their effects and repossess the Premises.

 

15.3. If this Lease is terminated according to Section 15.2 hereof, Tenant shall
be liable to Landlord for all damages incurred by Landlord as allowed by
applicable law.

 

16. Indemnification. Tenant shall indemnify and hold Landlord harmless from and
against any and all losses, liabilities, damages, claims, costs and expenses,
including, without limitation, reasonable attorneys’ fees, expenses and
disbursements for injuries to or death of persons and damage to property
resulting from the use or occupancy of the Premises by Tenant, or any officer,
employee, agent, customer, licensee, invitee or sublessee of Tenant or the
failure of Tenant to perform and observe the obligations of Tenant under this
Lease except to the extent resulting from the gross negligence or willful
misconduct of Landlord, its employees, agents or contractors. Landlord shall
indemnify and hold Tenant harmless from and against any and all losses,
liabilities, damages, claims, costs and expenses, including, without limitation,
reasonable attorneys’ fees, expenses and disbursements for injuries to or death
of persons and damage to property resulting from the use or occupancy of the
Premises by Landlord, or any officer, employee, agent, customer, licensee or
invitee of Landlord or the failure of Landlord to perform and observe the
obligations of Landlord under this Lease except to the extent resulting from the
gross negligence or willful misconduct of Tenant, its employees, agents or
contractors.

 

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17. Surrender of Premises; Holding Over.

 

17.1. Surrender of the Premises. Tenant shall surrender possession of the
Premises to Landlord upon the expiration or earlier termination of this Lease,
in serviceable condition and repair, reasonable wear and tear and damage by
casualty excepted. All improvements to the Premises constructed by Tenant and
all Personal Property remaining at the Premises after the expiration of the Term
shall be deemed abandoned and Landlord may dispose of the same without liability
therefore.

 

17.2. Holding Over. If Tenant shall continue to occupy the Premises after the
expiration of the Term without Landlord’s consent, Tenant’s occupancy of the
Premises shall be a tenancy from month-to-month, subject to all of the terms,
covenants and conditions of this Lease except that the monthly installments of
Basic Rent shall be increased to one hundred five percent (105%) of the Basic
Rent due immediately preceding the expiration of the Term.

 

18. Notices. Any notice, demand, request or statement required or intended to be
given or delivered under the terms of this Lease shall be in writing, and either
(i) personally delivered, or (ii) sent by governmental mail, postage prepaid,
registered or certified mail, return receipt requested, or (iii) reputable
overnight courier which provides written evidence of receipt, addressed to the
party to be notified at the address set forth in Sections 1.4 and 1.6 hereof, or
such other address as either party may hereafter designate by written notice to
the other party, and shall be deemed to be delivered on the earlier to occur of
(i) actual receipt, or (ii) one business day after deposit with an overnight
courier service or three business days after deposit with the United States
Postal Service.

 

19. Quiet Enjoyment. Landlord covenants that, so long as Tenant pays all Rents
hereunder when due and keeps and performs all of its covenants under this Lease,
Tenant shall at all times during the Term peaceably and quietly have and enjoy
the Premises without hindrance or molestation by Landlord, subject to the terms
of this Lease.

 

20. Non-Waiver. The failure of Landlord or Tenant to enforce any of its rights
under this Lease for the breach of any of the terms hereof shall not be a waiver
of the rights of Landlord or Tenant to exercise any such rights as to any
subsequent breaches of the same or other terms of this Lease.

 

21. Litigation Costs. In the event that litigation arises between the parties
with respect to any breach or threatened breach of this Lease, the prevailing
party in such litigation shall be entitled to recover its costs and expenses,
including reasonable attorneys’ fees, expenses and disbursements, in connection
therewith from the non-prevailing party.

 

22. Entire Agreement. This Lease, including the Exhibits hereto, sets forth the
entire agreement between the parties with respect to

 

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the Premises. Any prior conversations or writings are merged herein and
extinguished. Any prior lease between Landlord and Tenant is hereby extinguished
and superseded by this Lease. No subsequent amendment to this Lease shall be
binding upon Landlord or Tenant unless reduced to writing and signed by the
party to be charged.

 

23. Captions. The captions appearing herein are inserted only as a matter of
convenience and are not intended to define, limit, construe or describe the
scope or intent of any provision of this Lease or in any way affect the
interpretation of this Lease.

 

24. Governing Law. This Lease shall be governed by and construed in accordance
the laws of Ohio.

 

25. Invalidity of Provisions. If any provision of this Lease or the application
thereof to any party or circumstances shall, to any extent, be invalid or
unenforceable, the remainder of this Lease or the application of such provision
to other circumstances shall not be affected thereby.

 

26. Successors and Assigns. This Lease shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and assigns.

 

27. Memorandum of Lease. Simultaneously with their execution hereof, Landlord
and Tenant shall execute the Memorandum of Lease attached hereto to Exhibit B,
and Landlord shall promptly record the same in the public records.

 

28. Previous Writing(s). This Lease terminates and supersedes any previous
agreement(s), lease(s), and/or writing(s) associated with the Premises, namely
the lease dated October 1, 2001, between The Black Family Limited Partnership
and MPW Industrial Services, Inc.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed to
be effective as of the date first above written.

 

Black Family Limited Partnership An Ohio Limited Partnership By:  

/s/ Monte R. Black

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Name:   Monte R. Black

MPW Industrial Services, Inc.

an Ohio Corporation

By:  

/s/ R.J. Valentine

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Name:   R.J. Valentine Title:   COO/CFO

 

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STATE OF OHIO,

COUNTY OF LICKING, ss:

 

The foregoing instrument was acknowledged before me this 30th day of June, 2005
by Monte R. Black, an Ohio Resident.

 

/s/ Marla Bushee

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Notary Public

 

STATE OF OHIO,

COUNTY OF LICKING, ss:

 

The foregoing instrument was acknowledged before me this 30th day of June, 2005
by R.J. Valentine, the COO/CFO of MPW Industrial Services, Inc.

 

/s/ Marla Bushee

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Notary Public

 

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Exhibit A

 

Depiction of Premises

 

Land

 

Lot 10 of R.C. Schmidt & Sons Industrial Complex, according to the plat thereof
recorded in Liber 81 of Plats, Pages 30 through 46 inclusive, Macomb County
Records. Commonly known as 50321 East Russell Schmidt Boulevard, Chesterfield
Township, Michigan.

 

Parcel ID # 15-09-19-326-007

 

Building – Known as the “Container Management Building”: the following
dimensions describe the building included in the Premises:

 

Location

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Square
Footage

By Area

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   Totals

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Original Shop

   36,330     

Shop Addition

   35,258               

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Total Chesterfield Container Management Facility

        71,588          

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Exhibit B

 

Memorandum of Lease

 

This Memorandum of Lease is made and entered into as of, although not
necessarily on, December 1, 2004, by and between The Black Family Limited
Partnership, an Ohio Limited Partnership (“Landlord”) and MPW Industrial
Services, Inc., an Ohio corporation (“Tenant”).

 

1. LEASED PREMISES. Landlord has leased to Tenant the land and building(s)
described on Exhibit A, attached to and made a part of this Memorandum of Lease,
for the operation of an industrial services facility and related incidental uses
(“Premises”). Tenant has been granted the right to use all easements and
appurtenances related to the Premises.

 

2. UNRECORDED LEASE. This Memorandum of Lease is made upon all of the terms,
covenants, and conditions set forth in that certain unrecorded lease by and
between Landlord and Tenant, made to be effective as of the same effective date
as this Memorandum of Lease (the “Unrecorded Lease”). All of the terms,
covenants, and conditions of the Unrecorded Lease are made a part of and as
though fully set forth in this Memorandum of Lease.

 

3. COMMENCEMENT DATE/TERM/OPTIONS TO EXTEND. The Unrecorded Lease commences on
the effective date of this Memorandum of Lease and continues until November 30,
2009. Tenant has two (2) five (5) year options to extend the term of the
Unrecorded Lease.

 

4. INTERPRETATION. Landlord and Tenant have entered into this Memorandum of
Lease in order that third parties may have notice of the existence of the
Unrecorded Lease. This Memorandum of Lease is not a summary of the Unrecorded
Lease. In the event of a conflict between this Memorandum of Lease and the
Unrecorded Lease, the Unrecorded Lease controls.

 

5. TERMINATION. This Memorandum of Lease automatically terminates upon the
expiration or earlier termination of the Unrecorded Lease. At such time as the
Unrecorded Lease expires or is terminated, Landlord may record an affidavit
stating that the Unrecorded Lease has expired or terminated as of a particular
date and the recording of such affidavit will operate to terminate this
Memorandum of Lease. Such document must be in the form of an affidavit, must
include the statement that an individual is swearing to such facts based on his
or her own knowledge, and must be notarized with a jurat as well as an
acknowledgment.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Lease to
be executed to be effective as of the date first above written.

 

The Black Family Limited Partnership An Ohio Limited Partnership By:  

/s/ Monte R. Black

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Name:   Monte R. Black

MPW Industrial Services, Inc.

an Ohio Corporation

By:  

/s/ R.J. Valentine

--------------------------------------------------------------------------------

Name:   R.J. Valentine Title:   COO/CFO

 

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STATE OF OHIO,

COUNTY OF LICKING, ss:

 

The foregoing instrument was acknowledged before me this 30th day of June, 2005
by Monte R. Black, an Ohio Resident.

 

/s/ Marla Bushee

--------------------------------------------------------------------------------

Notary Public

 

STATE OF OHIO,

COUNTY OF LICKING, ss:

 

The foregoing instrument was acknowledged before me this 30th day of June, 2005
by R.J. Valentine, the COO/CFO of MPW Industrial Services, Inc.

 

/s/ Marla Bushee

--------------------------------------------------------------------------------

Notary Public

 

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Exhibit A

 

Depiction of Premises

 

Land

 

Lot 10 of R.C. Schmidt & Sons Industrial Complex, according to the plat thereof
recorded in Liber 81 of Plats, Pages 30 through 46 inclusive, Macomb County
Records. Commonly known as 50321 East Russell Schmidt Boulevard, Chesterfield
Township, Michigan.

 

Parcel ID # 15-09-19-326-007

 

Building – Known as the “Container Management Building”: the following
dimensions describe the building included in the Premises:

 

Location

--------------------------------------------------------------------------------

  

Square
Footage

By Area

--------------------------------------------------------------------------------

   Totals

--------------------------------------------------------------------------------

Original Shop

   36,330     

Shop Addition

   35,258               

--------------------------------------------------------------------------------

Total Chesterfield Container Management Facility

        71,588          

--------------------------------------------------------------------------------

 

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