Document:

Exhibit
10.58

 

ASSIGNMENT OF LEASE
BETWEEN

PETERSON DETENTION, INC.
and ISI DETENTION CONTRACTING GROUP. INC.

 

This Assignment of Lease
(“Assignment”) is entered into effective as of the 1st day of January, 2008, by
and between SAK Properties. LLC, a Arizona limited liability company (“Landlord”)
Peterson Detention, Inc. (“Assignor”) a California corporation and IS
Detention Contracting Group, Inc., a Texas corporation. (Assignee”).

 

WHEREAS, on or about October 19,
2003, Landlord and Peterson Hardware Inc., a California corporation, entered
into that one certain Standard Industrial/Commercial Single- Tennant Lease -
Net (the “Lease”) pertaining to approximately 21,500 rentable square feet (RSF)
of commercial office space located at 990 South Cherry, Tucson, Ai4zoria (the “Building”);

 

WHEREAS, on or about October 2:3,
2007, Landlord and Peterson Hardware Inc., entered Into that certain Amendment
to Lease adding Assignor as an additional lessee to the Lease;

 

WHEREAS, the term of the
Lease expires on February 29,2012; and

 

WHEREAS, Assignor now
desires to assign all of its right, interest and title in and to the Lease to
Assignee, as more particularly set forth below

 

NOW, THEREFORE, for and
in consideration of the mutual promises and covenants set forth herein, all of
Assignor’s right, title and interest in and to the Lease is hereby assigned to Assignee
upon the following terms and conditions. Capitalized terms not otherwise
defined In this Assignment shall have the meanings ascribed to them in the
Lease.

 

1.   Assignor hereby assigns, transfers end
delivers to Assignee all of Tenant’s rights in and to the Lease.

 

2.   Assignee accepts the Lease and agrees to
punctuality perform all obligations of Assignor under the Lease accruing on and
after January 1, 2008. Landlord acknowledges that all Rents and other
charges that have accrued under the Lease prior to said date have been fully
paid by Assignor, and hereby releases Assignor from any further obligations
under the least from and after January 1, 200B.

 

3.   There shall be no further assignment of the
Lease without the prior written consent of the land1ord.

 

4.   Miscellaneous.

 

(a)   Counterparts. This Assignment may be executed
in any number of counterparts and by different parties on separate counterparts,
each of which counterparts shah be deemed to be an original and. all of which counterparts
shall constitute one and the same agreement. The signature of each party to
this Assignment is not required to appear on each counterpart of this
Assignment, provided that each party to this Assignment has executed at least one
counterpart of this Assignment. In making proof of this Assignment it will not
be necessary to account for or produce each executed counterpart of this
Assignment.

 

(b)   Entirety end Controlling Agreement. This
Assignment, in conjunction with the Lease (Including its various exhibits),
embodies the entire agreement between the parties with respect to the Leased
Premises. Except as expressly set forth herein,

 

 

nothing in this
Assignment modifies or amends the provisions of the Lease, However, in the
event of an irreconcilable conflict or inconsistency between the provisions of
the Lease and the provisions of this Assignment, the provisions of this
Assignment shall control.

 

(c)   Binding on Successors. This Assignment shall
be binding upon and inure to the benefit of the parties, their successors,
assigns and personal representatives.

 

IN W1TNESS WHEREOF,
Landlord, Assigner and Assignee have executed this instrument as of the date
first written above.

 

	
  LANDLORD

  
	
   

  
	
  SAK PROPIJ1TIES, LLC,

  
	
  a Arizona liability
  company

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Its: Agent

  
	
  Date: 12/20/07

  

 

 

	
  ASSIGNOR:

  
	
   

  
	
  PETERSON DETENTION,
  INC.

  
	
  a California
  corporation

  
	
   

  
	
  By: 

  	
  /Michael Peterson/

  	
   

  
	
   

  
	
  Its: President

  
	
   

  
	
  Date:

  
	
   

  
	
   

  
	
  ASSIGNEE:

  
	
   

  
	
  ISI DETENTION
  CONTRACTING GROUP, INC.

  
	
  a California
  corporation

  
	
   

  
	
  By: 

  	
  /Sam Youngblood/

  	
   

  
	
   

  
	
  Its: CEO

  
	
   

  
	
  Date: 12/31/07Exhibit
10.59

 

LEASE
AGREEMENT

 

THIS LEASE AGREEMENT (the “Lease”), is made and entered into this
1st day of February, 2008, by and between J.J.C.
VALLEY PROPERTIES, LLC, (the “Lessor”), and ISI CONTROLS,
LTD. (the “Lessee”).

 

WITNESSETH:

 

IN CONSIDERATION of the rents and agreements of Lessee
herein, Lessor hereby leases to Lessee the following-described premises
situated at 3030 East Goodland Drive, City of Appleton, Outagamie County,
Wisconsin (hereinafter referred to as the “Premises”), on and subject to the
terms, conditions and provisions herein contained.

 

1.             Term.  To have and to hold the
Premises to Lessee for a term of five (5) years, commencing on February 1,
2008 (the “Commencement Date”) and ending at midnight on January 31, 2013
(the “Initial Term”).

 

2.             Option to Extend Lease Term.  Provided
that Lessee is not in default with respect to any term or condition of this
Lease, Lessee shall have the
option to extend the Lease for two (2) additional five (5)-year terms,
provided notice in writing shall be given to Lessor at least one hundred eighty
(180) days prior to the end of the initial term of the Lease or any extended
term thereof.  The rental for the
extension period shall be as provided below.

 

3.             Rent.  Lessee agrees to pay to
Lessor, as rent during the Initial Term of this Lease and the first renewal
term, the sum of Fourteen Thousand Dollars ($14,000.00) per month (“Base Rent”),
commencing on the Commencement Date and on the 1st day of each calendar month
thereafter.  Notwithstanding anything
contained in the preceding sentence, unless and until Lessee defaults beyond
any applicable notice and cure periods, with respect to any covenant or
obligation set forth in this Lease or in the Business Note (the “Note”),
executed on even date herewith by and between Lessee and Lessor, Lessee’s
obligation to pay rent from the Commencement Date up through and including January 31,
2010, shall abate (the “Rental Abatement Period”).

 

In the event that Lessee
defaults, with respect to any covenant or obligation set forth in this Lease or
in the Note during the Rental Abatement Period, which such default is not cured
within fourteen (14) days of Lessor’s written notice to Lessee (the “Notice
Period”), then this Lease shall terminate on the last day of the Notice Period
and all Base Rent that would have been due to Lessor from Lessee during the
Rental Abatement Period shall be immediately due and payable.

 

In the event that Lessee
defaults with respect to any covenant or obligation set forth in the Note
during the Rental Abatement Period and such default is cured during the Notice
Period, then this Lease will not terminate, but the rental abatement shall be
revoked retroactive to the Commencement Date. 
Thereafter, Lessee’s Base Rent shall be increased to an amount equal to
the total of Lessee’s Base Rent that would have been due during the Rental
Abatement Period but for the abatement of such Base Rent, plus the total of all
Base Rent due throughout the balance of the Initial Term of this Lease divided
by the number of months remaining in the Initial Term of this Lease.  Said increased Base Rent shall be due and
payable on the first day of the first month immediately after the end of the
Notice Period, during which Lessee’s default was cured, and, thereafter, on the
first day of each month thereafter throughout the balance of the Initial Term.  During the first renewal term, however,
Lessee’s Base Rent shall be reduced to Fourteen Thousand Dollars ($14,000.00)
per month payable on the first day of the first month of the first renewal term
and on the same day of each successive month thereafter.

 

1

 

In the event that Lessee
shall exercise Lessee’s option to renew this Lease for a second renewal term,
then Lessee’s monthly rental obligation, throughout the entire second renewal
term, shall be equal to ninety-five percent (95%) of the prevailing market rate
for commercial premises of like kind construction, design, use, and location
(the “Prevailing Market Rate”).  For purposes
of this Lease, the Prevailing Market Rate shall be determined, as of the first
day of the second renewal term, by the written mutual agreement of Lessor and
Lessee.  In the event that Lessee and
Lessor have not mutually agreed as to the Prevailing Market Rate by a date that
is forty-five (45) days prior to the first day of the second renewal term, then
Lessor shall, at Lessor’s expense, obtain an independent written determination
of the Prevailing Market Rate from a qualified commercial real estate broker
familiar with the Premises and commercial real estate, in general, in Outagamie
County, Wisconsin.  Lessee shall also, at
Lessee’s expense, obtain an independent written determination of the Prevailing
Market Rate from a qualified commercial real estate broker familiar with the
Premises and commercial real estate, in general, in Outagamie County, Wisconsin.  If the two (2) opinions are within ten
percent (10%) of each other, determined according to ten percent (10%) of the higher
of the two (2) opinions, then the Prevailing Market Rate shall be equal to
the average of the two (2) opinions. 
If the two (2) opinions are not within ten percent (10%) of each
other, determined according to ten percent (10%) of the higher of the two (2) opinions,
and Lessor and Lessee are still unable to agree as to the Prevailing Market
Rate, then the two (2) commercial real estate brokers shall appoint a
third qualified commercial real estate broker familiar with the Premises and
commercial real estate, in general, in Outagamie County, Wisconsin, the expense
of which shall be divided equally between Lessor and Lessee, and the opinion of
the third commercial real estate broker shall be the Prevailing Market Rate.

 

Notwithstanding anything
contained in this Section 3 to the contrary, for any month during the
second renewal term during which Lessee’s Base Rent is in dispute and subject
to the dispute resolution process set forth above, Lessee’s monthly rental
obligation shall be Fourteen Thousand Dollars ($14,000.00) subject to
adjustment, upward or downward, upon the determination of Lessee’s Base Rent
due and owing throughout the second renewal term.  Any such adjustment shall be made to the first
and, if necessary, second Base Rent payments due immediately after the final
second renewal term Base Rent determination.

 

4.             Charge for Late Rent.  Any
rent not timely paid by or on the fourteenth (14th) day of any calendar month
shall accrue a late charge of one and one-half percent (1-1/2%) for each month,
or portion thereof, that such rent remains unpaid.

 

5.             Security Deposit.  Upon
the execution of this Lease, Lessee shall pay a security deposit of Fourteen
Thousand Dollars ($14,000.00) to be held by Lessor to secure Lessee’s
performance of Lessee’s obligations and protect Lessor’s rights under this
Lease, which sum shall be refunded to Tenant within ten (10) days of the
expiration of this Lease.

 

6.             Use and Care of Premises.  The
Premises may be used for any lawful purpose and shall be kept in a clean and
safe condition in accordance with local ordinances and lawful direction of
proper authorities.

 

7.             Structural Alterations or Additions.  No
structural alterations or additions shall be made by Lessee during the term of
this Lease, in or to the Premises, without the prior written consent of Lessor,
which consent shall not be unreasonably withheld.  Any alterations or additions to be made shall
comply with appropriate building code and zoning ordinances.  All additions or alterations as made shall,
at the option of Lessor, become part of the Premises and property of Lessor or,
upon termination of the Lease, Lessor may demand that Lessee remove the same
and restore the Premises to a substantially similar condition they were in
prior to Lessee’s occupancy, reasonable wear and tear, and damage caused by
casualty, excepted.  However,

 

2

 

once Lessor agrees that an alteration shall
become part f the Premises and the property of Lessor, Lessee shall have no
obligation to remove said alteration.

 

8.             Utilities and Services. 
Lessee shall pay all utility and service charges, including but not
limited to, gas, water, heat, air-conditioning or electricity charges, used in
the Premises, as the same shall become due.

 

9.             Taxes.  Lessee shall, during the term
of this Lease, pay all real estate taxes levied in respect of the Premises, or
any part thereof, whether assessed against Lessor or against Lessee.  Lessee shall pay to Lessor, as additional
rent, an amount equal to one-twelfth (1/12th) of the real estate taxes levied
in respect of the Premises.  Said amount
shall be calculated on the basis of the prior year’s real estate taxes and
shall be payable, in advance, with each of Lessee’s monthly rental payments.

 

If the total of Lessee’s additional rent payments,
relative to real estate taxes with respect to any tax year, is less than the
actual amount of the Premises’ real estate taxes, then Lessee shall pay, within
thirty (30) days of Lessee’s receipt of Lessor’s written demand, the difference
between the total of Lessee’s additional rent payments, for the applicable
year, and the actual real estate taxes due and owing with respect to the
Premises.

 

If the total of Lessee’s additional rent
payments, relative to real estate taxes with respect to any tax year, exceeds
the actual amount of the Premises’ real estate taxes, then the excess shall be
credited against Lessee’s obligation to pay real estate taxes for the Premises
for the following year, or in the event this Lease has terminated, Lessor shall
promptly refund such overpayment amount to Tenant.

 

In the event any special assessments,
including specifically, but not exclusively, curb, gutter, paving, etc., are
levied against the Premises and are not caused specifically by the actions of
Lessee, then Lessor shall be responsible for the payment of said special
assessments in full when levied or, if an alternative installment payment is
available, at Lessor’s option, Lessor shall pay said special assessments over
the installment periods.

 

The foregoing notwithstanding, to the extent
that any structural alterations or additions are made to the Premises which
increase the value of the Premises for purposes of real estate taxes or result
in a special assessment being levied against the Premises, Lessee shall be responsible
for the payment of said increase in said real estate taxes and/or said special
assessment.

 

10.          Repairs and Maintenance. 
Lessee shall keep and maintain the Premises in good condition and repair
(except for reasonable wear and tear and damage by casualty), including, but
not limited to, the heating, electrical, plumbing and air-conditioning systems
exclusively serving the Premises, and shall replace all broken and cracked
glass.  Except as set forth below, Lessee
shall also be responsible for repairing any damage caused to the Premises,
whether directly or indirectly, during Lessee’s occupancy of the Premises.

 

Lessor has delivered the building in good
repair and condition to Lessee, but agrees that Lessor shall be obligated to
maintain such structural portions of the building (i.e., walls, roof and
foundations) during the term hereof, provided that said repair is not due to
the actions of Lessee in which event Lessee shall be responsible for such
repair and maintenance.

 

If Lessee refuses or neglects to commence or
complete repairs promptly and adequately, Lessor may, but shall not be required
to do so, make or complete said repairs and Lessee shall pay the reasonable
third-party costs thereof to Lessor within ten (10) days written demand
therefore..  Lessee shall comply with the
directions of proper public officers as to the maintenance of the Premises and
shall comply with all health and police regulations applicable to or affecting
the Premises.

 

3

 

Lessee shall undertake appropriate measures
to maintain the Premises in a sanitary condition and free from rodents and/or
pests.

 

Lessee shall be responsible for snow removal
and lawn and landscape maintenance at the Premises.

 

11.                               Insurance.

 

A.            Fire and Extended Coverage.  Lessee
shall carry fire and extended coverage insurance on the Premises during the
entire term of this Lease in an amount equal to the full insurable value of the
buildings and all additions or improvements made thereon by either party,
written by a reliable insurance company or companies authorized to do business
in the State of Wisconsin.

 

B.            Liability. 
Lessee shall keep in force for the benefit of Lessor and Lessee
comprehensive general liability insurance with minimum limits of liability in
respect to bodily injury of One Million Dollars ($1,000,000.00) for each person
and Two Million Dollars ($2,000,000.00) for each occurrence and, with respect
to property damage, the sum of Five Hundred Thousand Dollars ($500,000.00) for
each occurrence.

 

C.            Contents. 
Lessee shall keep in force for Lessee’s benefit a policy of insurance in
broad endorsement form to protect damage to the contents on the Premises.

 

D.            Waiver of Subrogation.  Each
party mutually releases and discharges the other, and its employees, from all
claims and liabilities arising from or caused by any hazard covered by
insurance on the Premises or covered by insurance in connection with property
on or activities conducted on the Premises, regardless of the cause of the
damage or loss.

 

This release is conditioned
upon the inclusion in the policy or policies of a provision whereby any such
release shall not adversely affect said policies or prejudice any right of the
party releasing the other to recover through said policy.  Each party agrees that such party’s insurance
policy shall include such a provision so long as the same shall be obtainable
without extra cost.

 

E.             Certificates of Insurance.  All
Certificates of Insurance shall be deposited with Lessor.  The policy or policies shall name Lessor and
Lessee as insureds and shall bear endorsements to the effect that the insurer
agrees to notify Lessor not less than thirty (30) days in advance of any
modification or cancellation thereof.

 

Lessee agrees that no act or thing shall be
done on the Premises which may void, or make voidable, any insurance on the
Premises, or any part thereof.

 

12.          Damage by Fire or Other Casualty. 
Damage not in excess of thirty-three and one-third percent (33-1/3%) of
the Premises by fire or any other cause shall not terminate this Lease, but
shall entitle Lessee to a pro rata abatement or reduction in rent payable to
Lessor.  Lessor shall proceed with due
diligence to collect the proceeds of any available insurance, and rebuild or
restore the Premises to at least as good a condition as existed immediately
prior to the casualty.

 

In the event of damage in excess of
thirty-three and one-third percent (33-1/3%) of the Premises or its total
destruction, Lessee shall have the option to terminate this Lease and surrender
the Premises, or to a pro rata abatement or reduction of the rent payable to
Lessor.

 

4

 

In the event Lessor and Lessee mutually agree
that it would be in their best interest to rebuild or restore the Premises,
then Lessor shall proceed with due diligence to collect the proceeds of any
available insurance and rebuild or restore the Premises to at least as good a
condition as existed immediately prior to the casualty.

 

13.          Lessor’s Right of Entry. 
Lessor may enter into and on the Premises, including any building or
structure thereon, during Lessee’s normal business hours, and on twenty-four
(24) hours prior notice, for the purpose of examining or inspecting the
conditions thereof in order to exercise any right or power reserved to Lessor
under the terms and provisions of this Lease.

 

14.          “For Rent” or “For Sale” Signs of Lessor. 
Lessor may, within one hundred eighty (180) days prior to the expiration
of any Lease term, if there has been no extension or renewal, place signs on
the walls, doors or windows of the building on the Premises, advertising that
the Premises are for rent or for sale, which signs shall remain thereon without
hindrance or molestation by Lessee.

 

15.          Restrictions Against Liens. 
Lessee shall pay and settle all expenses and liabilities arising out of
or in any way connected with any and all construction, repairs, alterations or
maintenance authorized by Lessee and approved by Lessor of any and all
buildings on the Premises, and Lessee shall keep the Premises and the
structures thereon free and clear from all liens of mechanics or materialmen,
and all liens of a similar character, arising out of or growing out of the
construction, repair, alteration or maintenance of such structures.

 

16.          Indemnity.  Lessee assumes all risks and
responsibilities for accidents, injuries, or death resulting from injuries or
damages to person or property occurring in, on, or about the Premises.  Subject to the waiver of subrogation set
forth in Section 11D hereof, Lessee agrees to indemnify and hold Lessor,
and Lessor’s members, officers, directors, employees, agents, and assigns from
any and all claims, liabilities, losses, costs, and expenses (including
reasonable attorneys’ fees) arising from or in connection with, the condition,
use, or control of the Premises, including the improvements thereon, during the
term of this Lease and any renewal term. 
Subject to the waiver of subrogation set forth in Section 11D
hereof, Lessee shall be liable to Lessor for any damages to the Premises,
including the improvements thereon, and for any act done by Lessee or any
employee or agent of Lessee, or any invitee or licensee of Lessee.

 

17.          Waste.  Lessee shall not suffer or
permit any waste, or overloading, damaging or defacing of the Premises, or any
uses thereof which shall be unlawful, improper or contrary to any law of the
State of Wisconsin, or ordinance of the municipality, or rule or
regulation of any public authority at the time being in force, or injurious to
any person or property.

 

5

 

18.                               Assignment and Subleases. 
Lessee may not assign or transfer this Lease or sublease the whole or
any part of the Premises, without the written consent of Lessor, which shall not
be unreasonably withheld, provided that Lessee shall nevertheless remain
primarily liable to Lessor for the payment of all rent and for the full
performance of all of the covenants and conditions of this Lease.

 

Lessor shall, however, have the right to sell
or transfer the Premises, subject to all of the provisions of this Lease.

 

19.                               Compliance with Laws. 
Lessee agrees to observe and comply with all rules, regulations and laws
now in effect, or which may be enacted during the continuance of this Lease, by
any municipal, county, State or Federal authorities having jurisdiction over
the Premises.

 

20.                               Lessee’s Default.  This
Lease is made upon the condition that Lessee shall punctually and faithfully
perform all of the covenants and agreements by Lessee to be performed as herein
set forth, and if any of the following events of default shall occur, to-wit:

 

A.            The rent or any other sums required to be
paid by Lessee hereunder, or any part thereof, shall at any time be in arrears
and unpaid for fourteen (14) days after receipt of written notice of default
from Lessor to Lessee; or

 

B.            There be any default in the observance or
performance of any of the other covenants, agreements or conditions of this
Lease on the part of Lessee to be kept and performed, and said default shall
continue for a period of thirty (30) days after written notice thereof from
Lessor to Lessee (unless such default cannot be reasonably cured within thirty
(30) days and Lessee shall have commenced to cure said default within said thirty
(30) days and continues diligently to pursue the curing of the same); or

 

C.            Any proceedings in bankruptcy, insolvency or
reorganization shall be instituted against Lessee, and such proceeding is not
stayed within 45 days of its commencement, pursuant to any federal or state
law, or any receiver or trustee shall be appointed for all or any portion of
Lessee’s business or property, or any final, non-appealable execution or
attachment in excess of $500,000 shall issue against Lessee or Lessee’s
business or property or against the leasehold estate created under this Lease
or Lessee shall be adjudged a bankrupt or insolvent, or Lessee shall make an
assignment for the benefit of creditors, or Lessee shall file a voluntary
petition in bankruptcy or petitions for (or enters into) an arrangement for
reorganization, composition or any other arrangement with Lessee’s creditors
under any federal or state law; or

 

D.            The leasehold estate hereby created shall be
taken on execution or by other process of law;

 

6

 

then, and in any of said cases, Lessor, at Lessor’s option, may
terminate this Lease and reenter upon the Premises and take possession thereof
with full right to sue for and collect all sums or amounts with respect to
which Lessee may then be in default and accrued up to the time of such entry,
including damages to Lessor by reason of any breach or default on the part of
Lessee, or Lessor may, if Lessor elects so to do, bring suit for the collection
of such rents and damages without entering into possession of the Premises or
voiding this Lease.

 

In addition to, but not in limitation of, any
of the remedies set forth in this Lease or given to Lessor by law or in equity,
Lessor shall also have the right and option, in the event of any default by
Lessee under this Lease and the continuance of such default after the period of
notice above provided, to retake possession of the Premises from Lessee by
summary proceedings or otherwise (and it is agreed that the commencement and
prosecution of any action by Lessor in forcible entry and detainer, ejectment
or otherwise, or any execution of any judgment or decree obtained in any action
to recover possession of the Premises, shall not be construed as an election to
terminate this Lease unless Lessor expressly exercises Lessor’s option
hereinbefore provided to declare the term hereof ended, whether or not such
entry or reentry be had or taken under summary proceedings or otherwise, and
shall not be deemed to have absolved or discharged Lessee from any of Lessee’s
obligations and liabilities for the remainder of the term of this Lease) and
Lessee shall, notwithstanding such entry or reentry, continue to be liable for
the payment of the rents and the performance of the other covenants and
conditions hereof and shall pay to Lessor all monthly deficits after any such
reentry in monthly installments as the amounts of such deficits from time to
time are ascertained and if, in the event of any such ouster, Lessor rents or
leases the Premises to some other person, firm or corporation (whether for a
term greater than, less than or equal to the unexpired portion of the term
created hereunder) for an aggregate rent during the portion of such new lease
coextensive with the term hereby created which is less than the rent Lessee
would pay hereunder for such period, Lessor may immediately, upon the making of
such new lease or the creation of such new tenancy, sue for and recover the
difference between the aggregate rental provided for in said new lease or the
portion of the term thereof coextensive with the term created hereunder and the
rent which Lessee would pay hereunder for such period, together with any
expenses to which Lessor may be put for brokerage commission, placing the
Premises in tenantable condition or otherwise. 
If such new lease or tenancy is made for a shorter term than the balance
of the term of this Lease, any such action brought by Lessor to collect the
deficit for that period shall not bar Lessor from thereafter suing for any loss
accruing during the balance of the unexpired term of this Lease.

 

In addition to all other sums due and owing
from Lessee to Lessor, as the result of Lessee’s default in any term or
condition set forth in this Lease, Lessee shall be responsible for and shall
pay to Lessor all of Lessor’s costs and expenses, including actual attorneys’
fees, incurred by Lessor in enforcing Lessee’s obligations pursuant to this
Lease.  However, Lessor acknowledges that
Lessor has a duty to mitigate Lessor’s damages in the event of a default by
Lessee.

 

21.          Quiet Enjoyment. 
Lessor agrees that if the rent aforesaid shall be paid as hereinabove
provided and Lessee shall keep and perform the covenants of this Lease on the
part of Lessee to be kept and performed, Lessee shall peaceably and quietly
hold, occupy and enjoy the Premises during the term hereof, without hindrance
or molestation by Lessor or any person or persons lawfully claiming under
Lessor.

 

22.          Lessor’s Remedies; Cumulative, etc.  Each
right, power and remedy of Lessor provided for in this Lease shall be
cumulative and concurrent and shall be in addition to every other right, power
or remedy provided for in this Lease or now or hereafter existing at law or in
equity or by statute or otherwise, and the exercise or beginning of the
exercise by Lessor of any one or more of the rights, powers or remedies
provided for in this Lease or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise
by Lessor of any or all other such rights, powers or remedies.

 

7

 

23.          Waiver.  Any assent, express or
implied, by Lessor to any breach of any agreement or condition herein
contained, or any waiver, express or implied, by Lessor of any such agreement
or condition herein contained shall operate as such only in specific instances,
and shall not be construed as an assent or waiver of any such agreement or
condition generally or of any subsequent breach thereof.

 

24.          Signs.  Lessee shall have the right at
all times during the term of this Lease, at Lessee’s sole expense, to erect,
install, operate and maintain identifying signs on the Premises provided that,
upon the removal of said signs, the Premises are restored to at least as good a
condition as existed prior to their installation.

 

25.          Hazardous Substances. 
Lessee shall not cause or permit any hazardous substances to be used,
stored, generated or disposed of on, in or about the Premises by Lessee, Lessee’s
agents, employees, contractors or invitees; provided, however, that Lessee may
keep and use small quantities of hazardous substances as are necessary in the
ordinary course of Lessee’s business, and further provided that Lessee shall
handle, store, use and dispose of any such hazardous substance in accordance
with applicable Federal, State and local laws and regulations, and in a manner
which shall not cause contamination to the Premises.

 

Lessee shall indemnify and hold Lessor
harmless from any liability, claim, demand, order or injury (including
reasonable attorney, consultant and expert fees), arising from Lessee’s, or
Lessee’s agents’, employees’, contractors’ or invitees’ handling, storage,
disposal or release of any hazardous substance in, under or about the Premises,
including, without limitation, the cost of any required or necessary repair,
cleanup, remediation or detoxification of the Premises.

 

The foregoing covenants and indemnification shall
survive the expiration of the term of this Lease.

 

The foregoing covenants and indemnification are
cumulative to any rights or remedies which Lessor or Lessee may have at law or
in equity, and shall not operate to limit such rights or remedies.

 

As used herein, “hazardous substance” means
any substance that is toxic, ignitable, reactive or corrosive, and whose
storage, handling, disposal or transport is regulated by Federal, State or
local statute, rule, regulation or ordinance, and shall include any material or
substance that is defined as “hazardous waste,” “extremely hazardous waste” or
a “hazardous substance” pursuant to Federal, State or local statute, rule,
regulation or ordinance, including, but not limited to, asbestos,
polychlorinated biphenyls (“PCBs”) and petroleum. In no event shall Tenant be
liable or responsible for any environmental conditions or hazardous substances
existing prior to the date of this Lease

 

26.          Holding Over.  If
Lessee remains in possession of the Premises after the expiration of the term,
or after termination of this Lease, and without the execution of a new Lease,
Lessee shall be deemed to be occupying the Premises as a lessee from
month-to-month, subject to all the conditions, provisions, and obligations of
this Lease insofar as they are applicable to a month-to-month tenancy.  The inclusion of this paragraph or acceptance
by Lessor of any rent after the expiration of the term or termination of this
Lease shall not constitute permission for Lessee to hold over.  Lessee expressly waives any requirement for Lessor
to give Lessee any notice to quit the Premises, whether at the end of the term
or during any hold-over period.

 

27.          Eminent Domain.  In
case the Premises, or any part thereof, shall be taken by right of eminent
domain, or by other authority of law, after execution hereof, and before expiration
of said term, this Lease and said term shall terminate at the election of the
Lessee; and if the Lessee shall not so elect, then in case of such taking, a
just proportion of rent hereinbefore reserved, according to nature and extent
of injuries sustained by the Premises, shall be abated until the Premises, or
whatever may remain thereof, shall have been put in proper condition for use
and occupancy.  In case of any such
taking, the total damages arising therefrom

 

8

 

shall be recovered by Lessor, Lessee hereby
assigning all rights in or to such damages to Lessor, and the net amount
recoverable and recovered therefor shall be apportioned between Lessor and
Lessee in such proportions as shall be reasonably determined by Lessor.  It is the intention of the parties, in regard
to distribution of damages or indemnity for taking by public authority, to
appoint Lessor as the person to whom such damages or indemnity are to be paid,
and to provide that such sums shall be distributed in the manner herein
provided for.

 

28.          Subordination.  This
Lease and all rights of Lessee hereunder shall be subject and subordinate to
the lien of any and all mortgages on the underlying financing of the Lessor
which affect the Premises or any part thereof and to any and all renewals,
modifications or extensions of any such mortgages.  Conditioned on Lessee first receiving from
any lien holder of the Premises an executed Subordination, Non-Disturbance and
Attornment Agreement in form and content reasonably acceptable to Lessee(“SNDA”),Lessee
shall on demand execute, acknowledge and deliver to Lessor without expense to
Lessor any and all instruments that may be necessary or proper to subordinate
this Lease and all rights therein to the lien of any such mortgage or mortgages
and each renewal, modification or extension and if Lessee shall fail at any
time to execute, acknowledge and deliver any such subordination instrument,
Lessor, in addition to any other remedies available and consequence thereof,
may execute, acknowledge and deliver the same as Lessee’s attorney-in-fact and
in Lessee’s name.  Lessee hereby
irrevocably makes, constitutes and appoints Lessor, Lessor’s successors and
assigns, as Lessee’s attorney-in-fact for that purpose.

 

29.          Notices.  Any notice or other
communication required by or permitted to be given in connection with this Lease
shall be in writing, and shall be delivered in person or sent first class mail,
certified or registered mail, return receipt requested, postage prepaid, to the
respective parties at the addresses set forth below, or at such other address
as may be specified from time to time in writing delivered by the other party:

 

	
  Lessor:

  	
   

  	
   

  
	
  J.J.C. Valley Properties, LLC

  	
   

  	
   

  
	
  Attn: Jeffrey E. Corcoran

  	
   

  	
   

  
	
  N100 Craftsmen Drive

  	
   

  	
   

  
	
  Greenville, WI 54942

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
   

  	
  Metzler, Timm, Treleven & Hermes, S.C.

  
	
   

  	
   

  	
  Attn: David J. Timm

  
	
   

  	
   

  	
  222 Cherry Street

  
	
   

  	
   

  	
  Green Bay, WI 54301-4223

  
	
   

  	
   

  	
   

  
	
  Lessee:

  	
   

  	
   

  
	
  ISI Controls, Ltd.

  	
   

  	
   

  
	
  12903 Delivery Drive

  	
   

  	
   

  
	
  San Antonio, Texas 78247

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
   

  	
  D. Hull Youngblood, Jr.

  
	
   

  	
   

  	
  K&L Gates

  
	
   

  	
   

  	
   

  	
  111 Congress Avenue

  
	
   

  	
   

  	
   

  	
  Suite 900

  
	
   

  	
   

  	
   

  	
  Austin, Texas 78701

  
					

 

9

 

30.          Construction of Lease.  This
Lease shall be construed in accordance with the laws of the State of Wisconsin,
and shall further be construed without regard to any presumption or rule requiring
construction against the party causing the Lease to be drafted.

 

31.          Recordation of Memorandum of Lease. Neither Lessor nor Lessee shall record this
Lease.  However, either party may record
a Memorandum of Lease, providing notice of Lessee’s interests described herein
for the entire Lease term, including extensions.  Said Memorandum of Lease shall not contain
any specific information about the Lease rental payment amounts.

 

32.          Entire Lease.  This
Lease evidences the entire agreement between the parties hereto with respect to
the matters provided for herein and there are no agreements, representations or
warranties with respect to any matters provided for herein other than those set
forth herein.

 

33.          Severability.  The
parties agree that, if any provision of this Lease shall, under any
circumstances, be deemed invalid or inoperative, this Lease shall be construed
with the invalid or inoperative provision deleted and the rights and
obligations of the parties shall be construed and enforced accordingly.

 

34.          Amendment and Modification.  The
parties hereto may amend, modify or supplement this Lease in such manner as may
be mutually agreed upon by them in writing.

 

35.          Binding Effect.  This
Lease shall be binding upon and inure to the benefit of the parties, their
respective heirs, successors, personal representatives and assigns.

 

36.          Arbitration.  Except for matters related to the
Lessee’s obligation to timely pay rent, when due and any related action to
terminate Lessee’s tenancy and evict Lessee from the Premises; disputes arising
under this Lease or in any way relating to the relationship of Lessee and
Lessor as contemplated in this Lease, shall be resolved through binding
arbitration located in Appleton, Outagamie County, Wisconsin.  Arbitration shall be initiated by either
party providing to the other party written notice of a request for arbitration
which such notice shall include facts of sufficient detail in order to apprise
the other party of the nature of the alleged dispute.  Each party shall appoint one (1) representative
and said representatives shall, thereafter, mutually agree upon and select one (1) person
who shall serve as the parties’ arbitrator hereunder (the “Arbitrator”).  If the parties’ representatives are unable to
agree, as determined in the sole discretion of Lessor’s representative, as to
the appointment of the Arbitrator, then the Arbitrator shall be selected by
Lessor’s representative with notice of said selection being delivered to Lessee
in writing; provided, however, that the Arbitrator selected solely by Lessor’s
representative must be a former Wisconsin Circuit Court judge.  The initiating party’s representative shall
be identified in the initiating party’s initial notice.  The other party’s representative shall be
named, in writing, by delivery of a notice to the initiating party within five (5) days
of said party’s receipt of the initial arbitration notice.  Each of parties’ representatives shall be
members in good standing of the Wisconsin State Bar Association and who shall
have expertise in commercial disputes and/or business transactions.  The parties’ representatives shall select the
Arbitrator who shall also be a member in good standing of the Wisconsin State
Bar Association and who shall also have expertise in commercial disputes and/or
business transactions.   If either Lessee
or Lessor fails to timely appoint their representative, then the other party’s
timely appointed member may select the Arbitrator.  The Arbitrator shall provide a written
decision stating his findings based on the facts of any dispute and the
applicable law.  Except as specifically
set forth herein, all matters relating to the arbitration proceedings
contemplated in this Lease, shall be governed by and be conducted in accordance
with Chapter 788 of the Wisconsin Statutes, as may be amended from time to
time.  The decision of the Arbitrator
shall be conclusively binding on the parties hereto.

 

10

 

The
terms of this Section 36, with respect to arbitration, are self
executing.  If any party refuses or
neglects to appear at or participate in any arbitration proceeding conducted
pursuant to the terms and conditions of this Lease, after reasonable notice,
the Arbitrator shall proceed ex parte to decide the matter in accordance with
the evidence as presented by the participating party.  All hearings conducted by the Arbitrator
shall be conducted within forty-five (45) days of the date of appointment of
the Arbitrator and all discovery deadlines and other time sensitive matters
shall be scheduled consistent therewith. 
Not later than seven (7) days prior to any arbitration hearing,
including, but not limited to, a final hearing, the parties shall deliver to
one another and to the Arbitrator, a written list of the names of all witnesses
and a specific written summary of the testimony expected to be provided by each
witness.  In addition, each party shall
provide to the other party copies of all documents intended to be presented at
said hearings within said seven (7) day time period.  No witness or document shall be allowed to
testify at or shall be allowed presented at said hearings which has not been disclosed
to the other party and to the Arbitrator as required in the preceding
sentences.

 

In
any arbitration proceeding conducted pursuant to the terms and conditions of
this Lease, the prevailing party, as determined by the Arbitrator, shall be
entitled to recover from the non-prevailing party, in addition to such other
relief as may have been provided by the Arbitrator, the prevailing party’s
reasonable attorneys’ fees and costs incurred in connection with the
arbitration proceeding.  If neither party
is determined by the Arbitrator to have prevailed on all issues, then
the Arbitrator shall be entitled to, but shall not be obligated to, assess
costs and reasonable attorneys’ fees, against the parties the Arbitrator deems
appropriate.  Under all circumstances,
the costs and expenses of the Arbitrator shall be split equally between Lessee
and Lessor.

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease
on the date first written above.

 

	
  LESSOR:

  	
   

  	
  LESSEE:

  
	
  J.J.C. VALLEY PROPERTIES, LLC

  	
   

  	
  ISI Controls, Ltd.

  
	
   

  	
   

  	
  By: Metroplex Control Systems, Inc

  
	
   

  	
   

  	
  Its: Sole General Partner

  
	
   

  	
   

  	
   

  
	
  By:

  	
     /s/ Jeffrey E. Corcoran

  	
  By:

  	
     /s/ Sam Youngblood

  
	
   

  	
   Jeffrey E. Corcoran, Member

  	
   

  	
   Sam Youngblood

  
	
   

  	
  Its:

  	
    CEO

  
	
   

  	
   

  	
   

  
	
  By:

  	
     /s/ Jeffery D. Corcoran

  	
   

  	
   

  
	
   

  	
   Janell D. Corcoran, Member

  	
   

  	
   

  

 

THIS INSTRUMENT WAS DRAFTED BY:

 

Attorney David J. Timm

Metzler, Timm, Treleven & Hermes, S.C.

222 Cherry Street

Green Bay, WI  54301-4223

(920) 435-9393

 

[Signature Page to JJC/ISI Lease
Agreement]

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]