exv10w13








    EXHIBIT 10.13



 




    ONE YEAR
    INDUSTRIAL/OFFICE LEASE




    (WITH MONTH-TO-MONTH EVERGREEN PROVISION)



 



    1. PARTIES:  The parties to this Lease are
    STEELVEST PROPERTY, LLC, a Texas limited liability company
    (Landlord) and FRIEDMAN INDUSTRIES, INCORPORATED, a Texas
    corporation (Tenant).



 



    2. LEASE:  Landlord leases to Tenant the
    free standing office building shown on the drawing attached
    hereto as Exhibit A (the Office Building), together
    with the right to park vehicles in the areas shown on said
    Exhibit A as the “Parking Area,” and the
    right of ingress and egress over and across the existing paved
    area to Homestead Road over and across the land identified as
    the “Access Easement” on said Exhibit A,
    said Office Building, Parking Area and Access Easement being
    located on and out of the larger tract of land described on
    Exhibit B attached hereto (the Property). Tenant
    will limit its use and occupancy of the Property to the Office
    Building, the Parking Area and the Access Easement.



 



    3. TERM:  The initial one-year term of
    this Lease shall commence on the date of this Lease and shall
    end on the last day of the twelfth
    (12th)
    full calendar month that follows, subject to earlier termination
    by reason of other provisions hereof; and provided, upon
    expiration of the initial one-year term, this Lease shall
    continue on a month-to-month basis at the same rental rate
    (subject to adjustment as provided in Section 4 hereof) and
    upon the same terms and conditions unless either party elects to
    terminate this Lease upon written notice to the other party,
    whereupon this Lease shall terminate on the last day of the
    month following the month in which such written notice of
    termination is given.



 



    4. RENTAL:  Tenant shall pay to Landlord
    as rental $1400.00 per month during the term of this Lease,
    payable in advance on the first day of each month, beginning on
    the first day of September, 2006, prorated for any partial month
    if this Lease shall terminate on any day other than the last day
    of a calendar month. If this Lease continues on a month-to-month
    basis after the expiration of the initial one-year term,
    Landlord may adjust the rent, such adjustment to become
    effective on and after the first of the second full calendar
    month following the month in which Tenant receives written
    notice of such rental adjustment.



 



    5. UTILITIES & PROPERTY
    TAXES:  Subject to the proviso herein, Tenant
    shall provide and pay for all utilities used at the Property,
    including, without limitation, all electric power, gas, water,
    sewer and waste water discharge, telephone, DSL
    and/or
    broadband internet service and trash pickup; provided,
    however, if Landlord (including any person controlled by,
    under common control with or controlling Landlord or any other
    tenant of any such person) occupies any part of the Property,
    Landlord and Tenant shall each pay for one-half (1/2) of the
    water and gas used at the Property during Landlord’s
    occupation thereof, and Landlord and Tenant shall have the
    electricity separately metered so that electricity used by
    Tenant in Office Building can be separately invoiced from
    electricity used for the operation of the rest of the Property,
    so that each party will pay for the electricity consumed by such
    party. Each party shall pay one-half (1/2) of the cost of
    metering. Landlord shall pay all ad valorem taxes assessed
    against the ’ Property. Tenant shall pay all personal
    property taxes with respect to all personal property located in
    the Office Building and owned by Tenant.



 



    6. USE OF PROPERTY:  Tenant may use the
    Office Building for general office and file storage purposes and
    for no other purposes. Tenant may not assign this Lease or
    sublet any part of the Office Building without Landlord’s
    prior written consent.



 



    7. CONDITION OF OFFICE BUILDING:  Tenant
    accepts the Office Building “AS IS” and with “ALL
    FAULTS AND DEFECTS” and in its present condition and state
    of repair at the commencement of the Lease. Upon termination,
    Tenant shall surrender the Office Building to Landlord in the
    condition of the Office Building at the commencement of this
    Lease, except normal wear and tear.



 



    8. ALTERATIONS:  Tenant may not alter the
    Office Building or install improvements or fixtures without the
    prior written consent of Landlord. Any improvements or fixtures
    placed in the Office Building during the Lease shall become the
    property of Landlord except as herein provided.



 



    9. SPECIAL PROVISIONS:



 



    Tenant shall subordinate its interest to any mortgage or deed of
    trust Landlord may place on the Property during the term hereof.



 



    Tenant shall deliver upon request a commercially reasonable
    subordination and non-disturbance agreement in connection with
    the placement of any mortgage or deed of trust. Tenant shall
    also deliver a commercially reasonable estoppel certificate in
    connection therewith.













 






    This Lease constitutes the sole agreement between the parties
    succeeding all prior understandings or agreements regarding
    possession of the Office Building or any other part of the
    Property.



 



    10. INSPECTIONS:  Landlord may enter at
    reasonable times and after reasonable notice to inspect the
    Office Building.



 



    11. LAWS:  Tenant shall comply with all
    applicable laws, restrictions, ordinances, rules and regulations
    with respect to the Property.



 



    12. REPAIRS AND MAINTENANCE:  Tenant shall
    be responsible for ordinary repairs and maintenance of the
    interior, plumbing, electrical systems and air-conditioning
    systems in the Office Building. Further Tenant shall promptly
    repair or cause to be repaired without expense to Landlord any
    damage to any of the Property caused directly or indirectly by
    any negligent act or omission of Tenant or any person under
    Tenant’s control, occurring within the term of this Lease.
    Except as otherwise provided above, Landlord shall be
    responsible for the repair and maintenance of the Property,
    including without limitation, the roof, foundation and exterior
    and structural walls of the Office Building.



 



    13. INSURANCE:  Landlord shall maintain
    such property and liability insurance in respect of the Property
    as Landlord deems to be prudent or as Landlord’s mortgagee
    (if any) shall require. Landlord and Tenant shall each maintain
    such insurance on the contents and personal property owned by
    such party as each party may deem appropriate during the term of
    this Lease. Tenant shall maintain commercial general liability
    insurance providing for coverage amounts of no less than
    $1,000,000 per occurrence and $2,000,000 in the aggregate, and
    such policies shall name Landlord as additional insured.



 



    14. DEFAULT:  If Tenant fails to perform
    or observe any provision of this Lease and fails, within ten
    (10) business days after written notice by Landlord to
    commence and diligently pursue to remedy such failure, Tenant
    will be in default.



 



    15. TERMINATION:  This Lease terminates
    (a) as provided in Section 3 hereof, or (b) at
    Landlord’s election upon Tenant’s default under this
    Lease. Tenant shall remove all of Tenant’s personal
    property and effects and leave the Office Building in a clean
    condition upon termination of this Lease.



 



    16. HOLDING OVER:  Tenant shall surrender
    possession of the Office Building upon termination of this
    Lease. Any possession by Tenant after termination creates a
    tenancy at sufferance and will not operate to renew or extend
    this Lease.



 



    17. ATTORNEY’S FEES:  The prevailing
    party in any legal proceeding brought under or with respect to
    the transaction described in this Lease is entitled to recover
    from the non-prevailing party all costs of such proceeding and
    reasonable attorney’s fees.



 



    18. WAIVERS:  Tenant expressly waives
    Landlord’s duty to inspect; and Landlord expressly waives
    any right to a landlord’s lien against the personal
    property of Tenant as security for the payment of rent or
    otherwise.



 



    19. SECURITY DEVICES:  The requirements of
    the Texas Property Code relating to security devices do not
    apply to this Lease.













 






    20. NOTICES:  All notices under this Lease
    from one party to the other must be in writing and are effective
    when delivered or transferred by facsimile machine as follows:



 


	 	 	 
	

    Tenant:


	
 
	
    FRIEDMAN INDUSTRIES, INCORPORATED 4001 Homestead Road 

    Houston, Texas 77028-5809

    Attn: Ben Harper, CFO

    Phone: (713) 672-9433

    Fax: (713) 672-7043

    Email: bharper@friedmanindustries.com

	

    With Copy to Tenant’s Counsel:


	
 
	
    Fulbright & Jaworski L.L.P.

    1301 McKinney, Suite 5100

    Houston, TX 77010-3095 

    Attn: William B. Sing, Esq. 

    Phone: (713) 651-3709 

    Fax: (713) 651-5246

    Email: wsing@fuIbright.com

	

    Landlord::


	
 
	
    STEELVEST PROPERTY, LLC

    c/o Texas
    Iron and Metal Co.

    865 Lockwood Drive

    Houston, Texas 77020

    Attn: Mr. Max Reichenthal

    Phone: (713) 672-7595

    Fax: (713) 672-0653

    Email: maxr@texasironandmetal.com

	

    With Copy to Landlord’s Counsel:


	
 
	
    Boyar & Miller 

    4265 San Felipe, Suite 1200

    Houston, Texas 77027 

    Attn: Stephen L. Johnson, Esq.

    Phone: (713) 850-7766

    Fax: (713) 552-1758

    Email: sjohnson@boyarmiller.com

	
 
	
 
	
 

	
 
	
 
	
    Signatures on Next Page



















 






    EXECUTED in multiple counterparts as of the 8 day of
    September, 2006.



 



    LANDLORD:



 



    STEELVEST PROPERTY, LLC



 


			
	 	    By: 
	
    /s/  Max
    Reichenthal









    Name:     Max Reichenthal



			
	 	    Title: 
	
    Member




 



    TENANT:



 



    FRIEDMAN INDUSTRIES, INCORPORATED



 


			
	 	    By: 
	
    /s/  Ben
    Harper









    Name:     Ben Harper



			
	 	    Title: 
	
    SR. VP














 







    Amendment to the
    One Year Industrial/Office Lease between Steelvest Property, LLC
    (Landlord) and Friedman Industries, Incorporated (Tenant) dated
    September 8, 2006.



 



    The term of this lease is hereby amended as follows:



 



    Upon expiration of the initial one-year term, this Lease will
    continue on a quarter-to-quarter basis, After the initial
    one-year term of this lease, either the Landlord or Tenant may
    terminate this Lease upon written notice to the other party
    whereupon this Lease shall terminate on the last day of the
    third month following the month in which such written notice of
    termination is given.



 



    Executed on this
    19th day
    of September, 2007.



 



    LANDLORD



 



    STEELVEST PROPERTY, LLC



 


			
	 	    Signed 
	
    /s/  Max
    Reichenthal









    Max Reichenthal, Member



 



    FRIEDMAN INDUSTRIES, INCORPORATED



 


			
	 	    Signed 
	
    /s/  Ben
    Harper 









    Ben Harper, Senior Vice President-Finance