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.


 


 

















 


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.




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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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