Exhibit 10.47

LEASE AGREEMENT

This LEASE AGREEMENT (this “Lease”), dated September 13, 2007 for reference
purposes only, is made by and between William H. Channell, Jr. and Carolyn
Channell (collectively, “Lessor”), on the one hand, and Channell Commercial
Corporation, a Delaware corporation (“Lessee”), on the other hand.

WHEREAS, Lessor and Lessee wish to enter into a lease for the Premises (as
hereinafter defined), on the terms and subject to the conditions set forth
herein;

NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.             Premises.  Lessor hereby leases to Lessee, and Lessee hereby
leases from Lessor, during the term and for the rent amount provided herein, and
on the other terms and subject to the other conditions set forth herein, that
certain real property situated in the County of Riverside, State of California
more particularly described on Exhibit A hereto (the “Premises”).

 

2.             Term.  The term of this Lease shall commence on September 13,
2007 (the “Commencement Date”) and shall end on December 31, 2015 (the “Original
Term”), unless sooner terminated pursuant to the terms hereof.

 

2.1           OPTIONS TO EXTEND.  LESSOR HEREBY GRANTS TO LESSEE TWO (2)
CONSECUTIVE FIVE-YEAR OPTIONS TO EXTEND THE ORIGINAL TERM FROM JANUARY 1, 2016
THROUGH DECEMBER 31, 2020 (THE “FIRST EXTENSION PERIOD”), AND FROM JANUARY 1,
2021 THROUGH DECEMBER 31, 2025 (THE “SECOND EXTENSION PERIOD”, AND TOGETHER WITH
THE FIRST EXTENSION PERIOD, THE “EXTENSION PERIODS”), EACH SUCH OPTION TO BE
EXERCISED BY LESSEE, IN ITS SOLE AND ABSOLUTE DISCRETION, AND (I) WITH RESPECT
TO THE OPTION FOR THE FIRST EXTENSION PERIOD, TO BE EXERCISED NOT LATER THAN
NINETY (90) DAYS PRIOR TO THE EXPIRATION OF THE ORIGINAL TERM AND (II) WITH
RESPECT TO THE OPTION FOR THE SECOND EXTENSION PERIOD, TO BE EXERCISED NOT LATER
THAN NINETY (90) DAYS PRIOR TO THE EXPIRATION OF THE FIRST EXTENSION PERIOD. 
THE TERMS AND CONDITIONS OF THIS LEASE DURING THE ORIGINAL TERM, INCLUDING,
WITHOUT LIMITATION, THE RENTAL AMOUNTS PAYABLE HEREUNDER, SHALL APPLY TO THE
EXTENSION PERIODS.

2.2           OPTION TO TERMINATE.  IF LESSEE HAS NOT COMMENCED CONSTRUCTION OF
A WORK OF IMPROVEMENT ON THE PREMISES FOR A NEW BUILDING TO BE CONSTRUCTED
THEREON ON OR PRIOR TO THE DATE THAT IS FIVE (5) YEARS AFTER THE COMMENCEMENT
DATE, THEN LESSEE MAY TERMINATE THIS LEASE IN ITS SOLE AND ABSOLUTE DISCRETION,
AND THEREUPON NEITHER PARTY SHALL HAVE ANY FURTHER OBLIGATION TO THE OTHER
PURSUANT TO THIS LEASE FOLLOWING SUCH TERMINATION (EXCEPT AS MAY EXPRESSLY
SURVIVE A TERMINATION AS PROVIDED HEREIN).

3.             RENT.  LESSEE SHALL PAY TO LESSOR AS RENT FOR THE PREMISES,
MONTHLY PAYMENTS OF $7,368.61, IN ADVANCE, ON THE FIRST DAY OF EACH MONTH OF THE
TERM HEREOF.  RENT FOR ANY PERIOD DURING THE TERM HEREOF THAT IS FOR LESS THAN
ONE MONTH SHALL BE A PRO RATA PORTION OF THE MONTHLY INSTALLMENT.  RENT SHALL BE
PAYABLE IN LAWFUL MONEY OF THE UNITED SATES TO LESSOR AT THE ADDRESS SET FORTH
ON THE SIGNATURE PAGE HERETO OR TO SUCH OTHER PERSON OR AT SUCH OTHER PLACES AS
LESSOR MAY DESIGNATE IN WRITING.

 

 

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4.             INCORPORATION BY REFERENCE.

4.1           EXCEPT AS SET FORTH IN SECTION 4.2 HEREOF, ALL OF THE PROVISIONS
OF THAT CERTAIN STANDARD INDUSTRIAL LEASE—NET, DATED AS OF DECEMBER 22, 1989
BETWEEN THE CHANNELL FAMILY TRUST (AS SUCCESSOR-IN-INTEREST TO WILLIAM H.
CHANNELL, SR.) AND LESSEE, TOGETHER WITH THE ADDENDA THERETO AND ALL AMENDMENTS
THERETO, A COPY OF WHICH IS ATTACHED AS EXHIBIT B HERETO (COLLECTIVELY, THE
“YNEZ ROAD LEASE”), ARE HEREBY INCORPORATED BY REFERENCE AS IF SET FORTH IN FULL
HEREIN, WITH REFERENCES TO THE “LESSOR” THEREUNDER BEING REFERENCES TO THE
“LESSOR” HEREUNDER,  REFERENCES TO THE “LESSEE” THEREUNDER BEING REFERENCES TO
THE “LESSEE” HEREUNDER AND REFERENCES TO THE “PREMISES” THEREUNDER BEING
REFERENCES TO THE “PREMISES” HEREUNDER.  NOTWITHSTANDING THE FOREGOING, THE
AMOUNT SET FORTH IN THE FIRST SENTENCE OF SECTION 8.3(A) OF THE YNEZ ROAD LEASE
SHALL, FOR PURPOSES HEREOF, BE EQUAL TO $1,000,000.

4.2           THE FOLLOWING PROVISIONS OF THE YNEZ ROAD LEASE ARE NOT
INCORPORATED HEREIN BY REFERENCE: (A) SECTIONS 1, 2, 3.1, 4, 5 AND 47; AND (B)
THE THIRD AMENDMENT THERETO DATED AS OF JUNE 1, 2005.

4.3           IN THE EVENT THAT THERE IS ANY INCONSISTENCY BETWEEN THE
PROVISIONS OF SECTION 1, 2 OR 3 HEREOF AND THE PROVISIONS OF THE YNEZ ROAD
LEASE, THE PROVISIONS OF SECTIONS 1, 2 AND/OR 3 HEREOF SHALL GOVERN.

5.             COUNTERPARTS.  THIS LEASE MAY BE EXECUTED IN TWO OR MORE
COUNTERPARTS, EACH OF WHICH SHALL BE AN ORIGINAL, BUT ALL OF WHICH SHALL
CONSTITUTE ONE AND THE SAME DOCUMENT.

[BALANCE OF PAGE INTENTIONALLY BLANK]

 

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                IN WITNESS WHEREOF, THE PARTIES HERETO HAVE DULY EXECUTED THIS
LEASE AS OF THE DAY AND YEAR FIRST SET FORTH ABOVE.

 

TENANT

 

CHANNELL COMMERCIAL
CORPORATION

 

 

By:

/s/ Patrick E. McCready

 

Name:

Patrick E. McCready

 

Title:

Chief Financial Officer

 

 

 

 

Address: 26040 Ynez Road

 

Temecula, California 92591

 

 

LANDLORD

 

William H. Channell, Jr.

 

/s/ William H. Channell, Jr.

 

 

Carolyn Channell

 

/s/ Carolyn Channell

 

Address:

 

 

 

 

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Exhibit A

 

Premises

 

Lot 50 of Tract No. 29639-2, recorded in Book 345, Pages 1 to 19, inclusive, of
Maps, in the Riverside County Recorder’s Office

 

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Exhibit B

 

Ynez Road Lease

 

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