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