Exhibit 10.1


 


FIRST AMENDMENT TO LEASE


 


This First
Amendment to Lease is made as of April 21, 2003, by and between Watson
Land Company, a California corporation (“Landlord”) and Coastcast Corporation,
a California corporation (“Tenant”). 
This First Amendment to Lease amends and modifies the terms and
conditions of that certain Lease dated September 1, 1997 between Landlord and
Tenant (the “Lease”).  Capitalized terms
which are not otherwise defined in this First Amendment to Lease shall have the
meanings ascribed to such terms in the Lease.


 


RECITALS


 


A.                                   Landlord
and Tenant previously entered into the Lease setting forth the terms and
conditions relating to Tenant’s occupancy of certain premises commonly
described as 3025 East Victoria Street, Rancho Dominguez, California (the
“Premises”).


 


B.                                     The
Lease Term expires on October 31, 2003. 
Tenant has exercised its Extension Option for a period of sixty (60)
months commencing on November 1, 2003 and ending on October 31, 2008
(the “Extended Term”).


 


C.                                     Landlord
and Tenant desire to amend the Lease to reflect the agreement of Landlord and
Tenant on certain issues relating to Tenant’s continued use and occupancy of
the Premises for the Extended Term.


 


AGREEMENT


 


FOR VALUABLE
CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agrees as follows:


 


1.                                       The
following is hereby added to Article I, Item 1.4 of the Basic Lease Provisions:


 


“Effective
November 1, 2003, and upon the full execution and delivery of this First
Amendment to Lease, the Lease Term shall be extended for a period of sixty (60)
months, and the Lease Term, as so extended, shall terminate on October 31,
2008.”


 


2.                                       The
following is hereby added to Article I, Item 1.8 of the Basic Lease Provisions:


 


“Effective November
1, 2003, and upon the full execution and delivery of this First Amendment to
Lease, the Annual Tax Base Amount shall be increased to Thirty-Three Thousand


 


1

















 


Eight Hundred
Eighty-Eight and 00/100ths Dollars ($33,888.00).”


 


3.                                       The
following is hereby added to Article I, Item 1.9 of the Basic Lease Provisions:


 


“Effective
November 1, 2003, and upon the full execution and delivery of this First
Amendment to Lease, the Annual Insurance Base Amount shall be increased to
Twenty-Three Thousand Six Hundred Fifty-Two and 00/100ths Dollars
($23,652.00).”


 


4.                                       The
following is hereby added to Article I, Item 1.10 of the Basic Lease
Provisions:


 


“Effective
November 1, 2003, the Security Deposit shall be increased to Forty-Eight
Thousand Four Hundred Seventy-Five and 00/100ths Dollars ($48,475.00).”


 


5.                                       The
following sentence is hereby added to the end of Paragraph 4.1 of the Lease:


 


“Effective on
November 1, 2003 monthly Minimum Rent payable under the Lease shall be
Forty-Eight Thousand Four Hundred Seventy-Five and 00/100ths
Dollars ($48,475.00).”


 


6.                                       The
following sentence is hereby added to the end of Paragraph 9.1 of the Lease:


 


“Effective on
November 1, 2003 and continuing throughout the Extended Term, Landlord shall
have no further obligation to repair and maintain the roof, repaint the
exterior of the Premises, asphalt paving and concrete paving of the
Premises.  Throughout the Extended Term,
these repair and maintenance responsibilities shall be performed by Tenant at
Tenant’s sole cost and expense, in addition to other repair and maintenance
obligations of Tenant as identified in the Lease.”


 


7.                                       The
term “Landlord” shall be replaced with term “Tenant” in each instance as the
term “Landlord” appears in Exhibit “A”, Section I (“Exterior Repainting”) and
Section J (“Resurfacing Paved Areas”). 
Tenant understands and acknowledges that the exterior of the Premises
will require repainting and the paved areas will require resurfacing during the
Extended Term.  Tenant agrees to perform
such repainting and resurfacing during the Extended Term at Tenant’s sole cost
and expense.


 


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8.                                       Except
as specifically set forth in this First Amendment to Lease, the Lease remains
unmodified and in full force and effect, according to its terms.


 


IN WITNESS
WHEREOF, Landlord and Tenant have executed this First Amendment to Lease as of
the day herein first written above.


 


	
  Watson Land
  Company

  a California corporation

  	
  Coastcast
  Corporation

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Bruce A.
  Choate

  	
   

  	
  /s/ Hans H.
  Buehler

  	
   

  
	
  Signature

  	
  Signature

  
	
  PRESIDENT
  & CEO

  	
   

  	
  CEO

  	
   

  
	
  Title

  	
  Title

  
	
  BRUCE A.
  CHOATE

  	
   

  	
  HANS H.
  BUEHLER

  	
   

  
	
  Printed Name

  	
  Printed Name

  
	
  5-19-03

  	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Bradley
  D. Frazier

  	
   

  	
   

  	
   

  
	
  Signature

  	
  Signature

  
	
  Corporate
  Secretary

  	
   

  	
   

  	
   

  
	
  Title

  	
  Title

  
	
  BRADLEY D.
  FRAZIER

  	
   

  	
   

  	
   

  
	
  Printed Name

  	
  Printed Name

  
	
  5-19-03

  	
   

  	
   

  	
   

  
	
  Date

  	
  Date

  
					



 


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