Document:

exv10w24

 

Exhibit 10.24

L E A S E   A G R E E M E N T

     THIS LEASE is made and executed triplicate as of the 1st day of October, 2004, by
and between First American Bank not personally but solely, as Trustee under Trust Agreement
dated March 13, 1992, and known as Trust No. 3-92-001, hereinafter called “Lessor,” and
Salkeld & Sons, Inc., a Delaware corporation, hereinafter called “Lessee.”

W I T N E S S E T H:

     1. DESCRIPTION: Lessor leases to Lessee, and Lessee hires from Lessor, as
herein provided, the real estate and the improvements thereon commonly known as 575 Latham
Drive, Bourbonnais, Illinois, (that portion of the building on the leased premises commonly known
as 575 Latham Drive, is expressly excluded from this Lease and is the subject of a separate lease
with a third party with all rents therefor being the sole property of Lessor) said real estate being
legally described as follows: See Exhibit I attached to and made a part hereof.

     2. TERM: The initial term of this Lease is for five (5) years beginning on the
1st day of October, 2004, and ending on the 31st day of October, 2009, with payments from month
to month as hereinafter called for upon the terms and conditions hereinafter set forth. The Lessee
 may extend the term of this Lease for six (6) separate and successive periods (extended
 terms) of two (2) years each beginning October 1, 2009, provided that this Lease is in full force
and effect and the Lessee has fully performed all of its terms and conditions. The Lessee shall
 exercise the option for each extended term by notifying the Lessor in writing on of before
March 1, 2009, for the first extended term, and on or before the first day of each March thereafter
for any subsequent extended term, of the Lessee’s exercise of an extenuation option.
The last extended term shall end on September 30, 2021. All of the terms and provisions
of this Lease shall remain the same during any such extended term, except that the monthly rental for each
extended term shall be increased by 2% from the monthly rental in effect for and during
the immediately preceding year.

     3. RENT: Lessee shall pay Lessor monthly installments of Eight Thousand
Dollars ($8,000) as rent hereunder. All monthly payments to be payable in advance, the
first installment payable on or before October, 2004, and subsequent installments as
hereinabove provided on the 1st day of each and every succeeding month thereafter payable to William
F. Salkeld and J. Faye Salkeld at 1620 Bittersweet Drive, St. Anne, Illinois 60964, or wheresoever
Lessor may hereafter designate. A late charge of Four Hundred Dollars ($400) shall be paid by
Lessee to Lessor for any monthly installment of rent received by Lessor more than ten (10) business
days after its due date.

     4. SECURITY DEPOSIT: Lessee has previously deposited with Lessor Eight Thousand
Dollars ($8,000), as security for the faithful performance by Lessee of the terms hereof,
to be returned to Lessee, without interest, on the full and faithful performance by it of the provisions hereof.
Said security deposit cannot be used by Lessee as payment for all or any

 

 

part of the rent provided for hereunder. However, Lessor shall have the right to set-off and
pay from the said security deposit any and all delinquent obligations of Lessee hereunder.

     5. USE OF PREMISES, GENERALLY: The Lessee shall have the right to use
the property for a retail sporting goods business, and any other general retail sale business that
is acceptable to Lessor as evidenced by Lessor’s prior written consent to such use. The Lessee
shall in the Lessee’s use of the property comply in every respect with all rules, orders,
regulations, ordinances, statutes, and laws of all governmental units having jurisdiction over the
property and its use and with all requirements of any insurance company insuring the Lessor,
the Lessee, or any portion of the property. The Lessee shall not vacate or abandon the property at
any time during the lease term. The Lessee shall not permit the property to be used at any time or
in any manner for the storage, use, or disposal, whether temporary or permanent, of any hazardous
material as such term is defined in any federal, state, or local rules, orders, regulations,
ordinances, statutes, and laws relating in any way to the protection of the environment including,
but not limited to, the Environmental Protection Act, the Resource Conservation and Recovery Act,
the Comprehensive Environmental Response, Compensation, and Liability Act, and the Super Fund
Amendments and Reauthorization Act. In addition, the Lessee shall not at any time use the property
in any manner or otherwise take any action which could result in any governmental requirement that
the land be subjected to environmental inspection or cleanup.

     *6. NO WASTE,
NUISANCE OR UNLAWFUL USE: Lessee shall not commit, or allow to be
committed, any waste on the premises, create or allow any nuisance to exist on the
premises, or use or allow the premises to be used for any unlawful purpose.

     7. PAYMENT OF UTILITIES: The Lessee shall pay or cause to be, paid
all charges
for air conditioning, heat, water, sewer service, garbage and refuse removal, COPS (i.e.
community
oriented police service charges), gas, electricity, light, telephone, any other

communication and
utility service, and all other costs and expenses of every kind whatsoever in and in connection with
the use, operation, and maintenance of the premises throughout the term of this Lease, including
the cost of extending all utility services to the property and all connection charges, and to
indemnify the Lessor and save him harmless against any liability or damages (including, without
limitation, reasonable attorneys’ fees and expenses) on such account.

     8. REPAIRS AND MAINTENANCE: The Lessee shall maintain the premises in clean, neat, and
orderly condition at all times. Lessee shall pay for all maintenance, replacements, alterations and
repairs to the premises or its improvements, except for repairs or replacements to the roof, heating
and cooling system, plumbing, and exterior walls which shall be the only responsibility of the
Lessor. However, if any of such repairs or replacements to the roof, heating and cooling system,
plumbing, or exterior walls shall be made necessary by reason of (a) the fault or negligence of the
Lessee, the Lessee’s agents, invitees, licensees, employees, or anyone claiming under the Lessee,
or (b) a default in the performance or observance of any of the terms, covenants, or conditions on
the part of the Lessee to be performed or observed in this Lease, the Lessee shall reimburse the
Lessor on demand for all

 

 

costs of such repairs and replacements plus interest at the rate of 14% per annum accruing
from the date of such demand until payment in full.

     9. LIENS:  The Lessee shall keep the property and the additional improvements on it
free and clear of any mechanic’s and other liens arising out of or in connection with work or labor
done, services performed, or materials furnished in connection with the construction of any
buildings and other improvements, in connection with any maintenance or repair of them, and in
connection with any business of the Lessee conducted on the property. The Lessee shall at all times
promptly and fully pay and discharge all such liens or claims for liens and indemnify the Lessor
and the property against such liens and claims of liens, suits, or other proceedings (including,
without limitation, reasonable attorneys’ fees and expenses) relative to them, If the Lessee
desires in good faith to contest any such lien or related matter, it shall notify the Lessor in
writing of its intention to do so and shall provide to the Lessor a surety bond or other indemnity
in a form satisfactory to the Lessor against such lien or claim for lien and any cost (including,
without limitation, reasonable attorneys’ fees and expenses), liability, or damage arising out of
such contest.

     10.   DELIVERY, ACCEPTANCE AND SURRENDER OF PREMISES: Lessee shall accept the
buildings and improvements and any equipment in their existing condition and state of repair in “AS
IS WHERE IS CONDITION”, and Lessee agrees that no representations, statements or warranties,
express or implied, have been made by or on behalf of the Lessor in respect thereto.

     11. REAL ESTATE TAXES AND ASSESSMENTS: The Lessor shall be responsible for
the payment of general real estate taxes and assessments that become a lien on the real estate
during the term of this lease.

     12. COVENANT
OF TITLE AND QUIET POSSESSION: The Lessor represents and covenants that
the Lessor is the owner of legal title to the real estate, that the Lessor has the full right to
make this lease, and that the Lessee, if the Lessee fully performs all of the things required of
the Lessee by this Lease, shall have quiet and peaceable possession of the real estate during the
term of this Lease. However, the real estate is leased to the Lessee subject to all covenants and
restrictions, easements, and similar items of record.

     13. MODIFICATIONS TO PREMISES: The Lessee may not construct, demolish, or make any
modifications or alterations to any part of the premises without the prior written consent of the
Lessor. The Lessee shall not cause or allow liens to attach to the premises. At the expiration or
sooner termination of this Lease, any such modifications to the premises shall be the property of
Lessor.

     14. LESSOR’S RIGHT OF ENTRY: The Lessee shall permit the Lessor and the agents,
representatives, and employees of the Lessor and prospective purchasers of the property to enter
into and upon the property at all reasonable times for the purpose of inspecting it or for any
other reasonable purpose.

 

 

     15.   INSURANCE: The Lessee shall procure and maintain during the entire term
of this Lease public liability and property damage insurance with respect to the premises
and the business and activities conducted by the Lessee in the premises in which the limits of
public liability shall not be less than $1,000,000.00 per occurrence for bodily injury or death and
in which the property damage liability shall not be less than $100,000.00. The Lessor shall be
named as an additional insured on this public liability and property damage insurance. The Lessor
at his sole cost shall insure the building on the premises against damage by fire and other
casualty.

     
The insurance required to be procured and maintained by the Lessee shall be in
such form and written by such insurance companies as are reasonably acceptable to the
Lessor. On or before the beginning date of this Lease, the Lessee shall provide to the Lessor a
copy of the policies of insurance required by this paragraph, a certificate evidencing the
insurance coverage required by this paragraph, and proof of premium payment.

     16. NON-LIABILITY OF LESSOR FOR PROPERTY OF LESSEE: The Lessor shall
not be liable for any damage of any sort to the property of the Lessee or of others located in the
premises, or otherwise on the property resulting from (a) fire, the elements, explosion, falling
materials, gas, electricity, rain, ice, or snow, water leaks, or any other cause of whatsoever
nature or (b) loss or damage caused by other subtenants, or persons in or about the building and
the property, including theft. All of the property of the Lessee kept or stored in the premises or
otherwise on the property shall be so kept or stored at the risk of the Lessee.

     17. DAMAGE BY FIRE OR OTHER CASUALTY: If the premises are damaged by fire, the
elements, or other casualty but are not rendered untenantable in whole or in part, the Lessor shall
cause the damage to be repaired and the rent shall not be abated. If, by reason of such occurrence,
the premises are rendered untenantable only in part, the Lessor shall cause the damage to be
repaired and the rent shall be abated proportionately as to the portion of the premises rendered
untenantable. If, by reason of such occurrence, the premises are rendered wholly untenantable,
either the Lessor or the Lessee may terminate this Lease and if this Lease is so terminated the
Lessor shall retain all insurance proceeds free of any claim of the Lessee, or if neither the
Lessor nor the Lessee elect to so terminate this Lease, the Lessor shall cause such damage to be
repaired and the rent shall abate until the premises have been restored and rendered tenantable.

     18. INDEMNIFICATION OF LESSOR: The Lessor shall not be liable for any loss, injury,
death, or damage to persons or property which may at any time be suffered or sustained by the
Lessee or by any person who may at any time be using, occupying, or visiting the property or be in,
on, or about the same whether such loss, injury, death, or damage is caused by or results from any
act, omission, or negligence of the Lessee or of any occupant, sublessee, visitor, invitee, or user
of any portion of the property or results from any other matter or thing. The Lessee shall
indemnify the Lessor against all claims, liability, costs (including, without limitation,
reasonable attorneys’ fees and expenses), loss, or damage whatsoever on account of any such loss,
injury, death, or damage. The Lessee hereby waives all claims against the Lessor for damages to the
building and other improvements on the property, to the property of the Lessee in, on, or about the
property, and for injuries to persons

 

 

or property in or about the property from any cause arising at any time. However, this
indemnity and waiver by the Lessee shall not apply to any loss, injury, death, or damage arising by
reason of the negligence or misconduct of the Lessor or the Lessor’s agents or employees.

     19. EMINENT DOMAIN: Eminent domain proceedings resulting in the condemnation of
a part of the premises leased herein that leave the rest usable by Lessee for purposes of the
business for which the premises are leased will not terminate this Lease. The effect of such
condemnation will be to terminate the Lease as to the portion of the premises condemned, and leave
it in effect as to the remainder of the premises. Lessee’s rental for the remainder of the Lease
term shall, in such case, be reduced by the amount that the usefulness of the premises to Lessee
for such business purposes is reduced.

      If all of the premises shall be taken or condemned
by any competent authority for any public use or purpose, the term of this Lease shall end on the
date when possession of the premises so taken shall be required for such use or purposes. Lessee
shall have no right to share in any condemnation award.

     20. SUBLETTING AND ASSIGNMENT: The Lessee may not sublet the property in whole or in
part or otherwise assign or transfer this Lease or any interest under it without the prior written
consent of the Lessor, which consent shall not be unreasonably
withheld. Any such consent by the
Lessor to an assignment shall not be deemed to be a consent to any subsequent assignment. Any such
assignment by the Lessee without the written consent of the Lessor shall be void and shall, at the
option of the Lessor, be an event of default by the Lessee under this lease. This Lease, the
leasehold interest of the Lessee, and any other interest of the Lessee under this lease or in the
property shall not be subject to involuntary assignment, transfer, or sale or to assignment,
transfer, or sale by operation of law in any manner whatsoever. Any such attempted involuntary
assignment, transfer, or sale shall be void and shall, at the option of the Lessor, be an event of
default under this lease.

     21. SURRENDER OF PREMISES: At the expiration or sooner termination of this Lease, the
Lessee shall quit and surrender all of the premises to the Lessor in good order and condition and
deliver to the Lessor all keys and related equipment belonging to the premises. No
receipt of money by the Lessor from the Lessee after the termination or expiration of this Lease,
after the service of any notice of default, after the commencement of any suit seeking possession
of the premises, or after any final judgment of possession of the premises shall renew, reinstate,
continue, or extend the term of this Lease or affect any such notice, demand, or suit.

     22. LESSOR’S RIGHT TO PERFORM: If the Lessee fails to do any of the things
required of the Lessee by this lease and such failure continues for a period of thirty (30) days
after written notice from the Lessor specifying the nature of anything required to be done, the
Lessor may, but shall not be required to, do or perform or cause to be done or performed such thing
required of the Lessee. The Lessor shall not be in any way responsible for any loss, inconvenience,
annoyance, or damage resulting to the Lessee from such performance by the Lessor on behalf of the
Lessee. The Lessee shall repay to the Lessor on demand the entire expense, including compensation
to the agents, attorneys, and employees of the Lessor,

 

 

incurred by the Lessor in performing such thing. If payment is not made within five (5) days
of such demand, the amount due to the Lessor shall bear interest from the date of the demand until
paid at the rate of fourteen percent (14%) per annum. Any act or thing done by the Lessor pursuant
to the provisions of this paragraph shall not be construed as a waiver of any default by the Lessee
or as a waiver of any other right or remedy of the Lessor under this lease or otherwise.

     23. DEFAULT: (a) Default, reentry. In the event of any failure of Lessee to pay any
rental or other sums when due hereunder for more than five (5) days after notice of such monetary
default has been given to Lessee, or in the event of Lessee’s default in performing any of the
other terms, conditions or covenants of this Lease to be observed or performed by Lessee, for more
than thirty (30) days after notice of such other, nonmonetary default shall have been given to
Lessee, or if Lessee or an agent of Lessee shall suffer this Lease to be taken under any writ of
execution, or in the event of default by Albert Messier and/or Lessee under the terms of the
Agreement for Sale of Stock entered into in conjunction with this Lease or under any document,
agreement, or instrument referred to or described therein, then Lessor, besides other rights or
remedies he may have, shall have the immediate right to terminate this Lease or reenter and attempt
to relet without terminating this Lease and remove Lessee and Lessee’s property from the premises
and such property may be removed and stored in a public warehouse or elsewhere at the cost of, and
for the account of Lessee, all without being deemed guilty of trespass, or becoming liable to
Lessee for any loss or damage which may be occasioned thereby.

     (b) Application of rent, deficiency. If Lessor, without terminating this Lease,
either (i) elects to reenter and attempts to relet, or (ii) takes possession pursuant to legal
proceedings, or (iii) takes possession pursuant to any notice provided by law, then it may, from
time to time, relet the premises or any part thereof for such term or terms (which may be for a
term extending beyond the term of this Lease) and at such rental or rentals and upon such other
terms and conditions as Lessor in his sole discretion may deem advisable. Upon each such reletting,
all rentals received by Lessor from such reletting shall be applied, first, to the payment of any
indebtedness other than rent due hereunder from Lessee to Lessor; second, to the payment of any
costs and expenses of such reletting, including reasonable attorneys’ fees; third, to the payment
of rent due and unpaid hereunder; and the residue, if any, shall be held by Lessor and applied to
payment of future rent as the same may become due and payable hereunder. If such rentals received
from such reletting during any month be less than that to be paid during that month by Lessee
hereunder, Lessee shall pay any such deficiency to Lessor. Such deficiency shall be calculated and
paid monthly. No such reentry or taking possession of the premises by Lessor shall be construed as
an election on his part to terminate this Lease unless a notice of such intention be given to
Lessee or unless the termination thereof be decreed by a court of competent jurisdiction.
Notwithstanding any such reletting without termination, Lessor may at any time thereafter elect to
terminate this Lease for such previous breach. Should Lessor at any time terminate this Lease for
any breach, in addition to any other remedies he may have, he may recover from Lessee all damages
he may incur by reason of such breach, including the cost of recovering the premises,
reasonable attorneys’ fees, and including the worth at the time of such termination of the excess,
if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the
remainder of the stated term over

 

 

the then reasonable rental value of the premises for the remainder of the stated term, all of which
amounts shall be immediately due and payable from Lessee to Lessor.

     (c) Expense reimbursement. In addition to any other remedies Lessor may have at law or
equity and/or under this Lease, Lessee shall pay upon demand all Lessor’s costs, charges and
expenses, including fees of legal counsel, incurred in connection with the recovery of sums due
under this Lease, or because of the breach of any covenant under this Lease or for any other relief
against Lessee.

     (d) Bankruptcy, insolvency. If Lessee shall become bankrupt, or file any debtor
proceedings or take or have taken against Lessee in any court pursuant to any statute either of the
United States or of any State, a petition in bankruptcy or insolvency or for reorganization or for
the appointment of a receiver or trustee of all or a portion of Lessee’s property, or if Lessee
makes an assignment for the benefit of creditors, or petitions for or enters into an arrangement,
then and in that event, this Lease shall at the option of Lessor be canceled and terminated.

     (e) No waiver. No waiver of any covenant or condition or of the breach of any covenant or
condition of this Lease shall be taken to constitute a waiver of any subsequent breach of such
covenant or condition nor to justify or authorize the nonobservance on any other occasion of the
same or of any other covenant or condition hereof, nor shall the acceptance of rent by Lessor at
any time when Lessee is in default under any covenant or condition hereof, be construed as a waiver
of such default or of Lessor’s right to terminate this Lease on account of such default, nor shall
any waiver or indulgence granted by Lessor to Lessee be taken as an estoppel against Lessor, it
being expressly understood that if at any time Lessee shall be in default in any of its covenants
or conditions hereunder an acceptance by Lessor of rental during the continuance of such default or
the failure on the part of Lessor promptly to avail himself of such other rights or remedies as
Lessor may have, shall not be construed as a waiver of such default, but Lessor may at any time
thereafter, if such default continues, terminate this Lease on account of such default.

     (f) Cumulative remedies. The rights and remedies given to Lessor by this Lease shall be
deemed to be cumulative and no one of such rights and remedies shall be exclusive at law or in
equity of the rights and remedies which Lessor might otherwise have by virtue of a default under
this Lease, and the exercise of one such right or remedy by Lessor shall not impair Lessor’s
standing to exercise any other right or remedy.

     24. NOTICES: Notices given pursuant to this lease shall be in writing and given
either by actual delivery of the notice into the hands of the party entitled to receive it or by
mailing of the notice in the United States mail, certified mail, return receipt requested, to the
following address:

	 	 	 	 	 
	 

	 	Lessor:
	 	Lessee:
	 
	 	 	 	 
	 

	 	William F. Salkeld
	 	Salkeld & Sons, Inc.
	 

	 	1620 Bittersweet Drive
	 	575 Latham Drive
	 

	 	St. Anne, IL 60964
	 	Bourbonnais, IL 60914

 

 

     The notice shall be deemed to be received in the case of actual delivery on the date of its
receipt by the party entitled to it and in the case of mailing on the date of its mailing correctly
addressed postage prepaid.

     25.
GENERAL PROVISIONS: No representations,
warranties, undertakings, or promises, whether oral, implied, or otherwise, can be made or have been made by either the Lessor
or the Lessee or anyone on behalf of either of them to the other unless expressly provided in this
Lease or in a separate writing. Titles to the paragraphs of this Lease are for informational
purposes only and do not define, limit, or construe the contents of the paragraphs. Whenever
necessary or proper herein, the singular imports the plural or vice versa, and masculine, feminine
and neuter expressions are interchangeable. Time is of the essence of this Lease. This Lease shall
bind and inure to the benefit of the parties hereto and their respective successors, heirs,
executors, administrators, legal representatives, and assigns.

     26. GUARANTY OF LESSEE’S OBLIGATIONS: The guaranty of the Lessee’s obligations under
this Lease by Albert Messier pursuant to the Unconditional Guaranty (a copy of which marked Exhibit
2 is attached to and made a part hereof) executed concurrent with this Lease is a material and
substantial condition, consideration, and inducement to Lessor’s entry into this Lease. Said
guaranty shall remain effective only through the initial two year lease and shall be re-guaranteed
in writing for any extension hereof. Failure to have a satisfactory guaranty executed shall nullify
any required renewal by Lessor under Paragraph 2.

     27. GUARANTY OF LESSOR’S OBLIGATIONS: The guaranty of the Lessor’s obligations under
this Lease by William F. Salkeld and J. Faye Salkeld pursuant to the Unconditional Guaranty (a copy
of which marked Exhibit 3 is attached to and made a part hereof) executed concurrent with this
Lease is a material and substantial condition, consideration, and inducement to Lessee’s entry into
this Lease.

     28. RIGHT
OF FIRST REFUSAL: The Lessor hereby grant to the
Lessee the right
to match any bona fide offer to purchase the leased premises upon the same terms and conditions of
said bona fide offer to purchase. In the event the Lessor receives a bona fide offer to
purchase the leased premises that the Lessor intends to accept, the Lessor shall notify the Lessee
in writing of said offer and its terms; thereafter, the Lessee shall have twenty-one (21) days to
notify the Lessor in writing that the Lessee will match said offer and purchase the leased premises
upon such terms. If the Lessee fails to so notify the Lessor within said twenty-one(21) days, the
Lessor shall be free to proceed to sell the leased premises pursuant to said bona fide offer. Upon
the request of the Lessee, the Lessor and the Lessee agree to execute a memorandum (prepared by and
at the cost of the Lessee) evidencing this right of first refusal hereby granted to the Lessee by
the Lessor for purposes of recording (at the Lessee’s sole cost) and memorializing the same.

     29. EXCULPATION OF LESSOR: This Lease is executed by First American Bank, not
personally but solely as Trustee as aforesaid, in the exercise of the power of authority conferred
upon and vested in it as such Trustee under Trust No. 3-92-001 and is payable only out of the
property constituting the trust estate; and as such Trustee it hereby warrants that it

 

 

possesses full power and authority to execute this Lease, and it is expressly understood
and agreed that nothing herein contained shall be construed as creating any liability on the said
Trustee, either as a trust company or as Trustee, personally to perform any covenant of the Lessor
either express or implied contained in this Lease, all such liability, if any, being expressly
waived by Trustee and by every person now or hereafter claiming any right hereunder.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	LESSEE:	 	 	 	LESSOR:	 	 
	SALKELD & SONS, INC.	 	 	 	FIRST AMERICAN BANK,

as Trustee aforesaid, not personally but solely	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Albert A. Messier
 

	 	 	 	By:
	 	/s/
 

	 	 
	 

	 	President
	 	 	 	 	 	Its: Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	ATTEST:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Albert A. Messier
 

	 	 	 	By:
	 	/s/ Rachel Brewer
 

	 	 
	 

	 	Secretary
	 	 	 	 	 	Its: AVP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Exoneration provision restricting any liability
of First American Bank attached hereto
is expressly made a part hereof.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	* 	FIRST AMERICAN BANK

executes this mortgage specifically
but not limited to excluding

paragraph(s) 6

titled: No Waste, Nuisance or Unlawful Use
from its execution disclaims any and all liability attached thereto.	 	 

 

EXHIBIT 1

A part of Lot 7 of Bourbonnais Town Centre Subdivision, being a part of the North Half of Original
Lot 1 and part of Original Lots 4, 5 and 6 of Bela T. Clark’s Subdivision of the Mesheketeno
Reservation in Township 31 North, Range 12 East of the Third Principal Meridian in Kankakee County,
Illinois, described as follows: Commencing at the Southwest corner of said Lot 7; thence North 00
degrees 32 minutes 20 seconds West along the West line of said Lot 7 a distance of 50.00 feet to
the point of curvature of a curve to the right having a radius of 425.32 feet and an I angle of 23
degrees 13 minutes 00 seconds; thence Northerly along said curve to the right being also the
Westerly line of said Lot 7 a chord measurement of North 09 degrees 46 minutes 35 seconds East a
chord distance of 152.26 feet to a point; thence North 89 degrees 51 minutes 00 seconds East a
distance of 204.08 feet to a point; thence South 00 degrees 09 minutes 00 seconds East a distance
of 200.00 feet to a point on the South line of said Lot 7; thence South 89 degrees 51 minutes 00
seconds West a distance of 230.00 feet to the point of beginning, containing 1.01 acres, more or
less.

Tax Code No. 09-19-409-001exv10w25

 

\

Exhibit 10.25

THIRD AMENDMENT TO LEASE

          THIS
THIRD AMENDMENT TO LEASE (this “AMENDMENT”) is entered into
as of the
31st day of August
2006, by and between PROLOGIS (the “Landlord”) and SPORT SUPPLY GROUP, INC. (the “Tenant”).

W I T N E S S E T H

          WHEREAS,
Landlord and Tenant have entered into a Lease, dated as of the 25th day of April 1994,
as amended by the First Amendment to Industrial Lease Agreement dated as of the 8th day of July
1994, as amended by the Second Amendment to Lease, dated as of the 10th day of June 2004, pursuant
to which Landlord leased to Tenant certain premises located at 13700 Benchmark Drive, Farmers
Branch, TX 75234 (Valwood Distribution Center #3), containing approximately 180,841 square feet of
space (“Existing Premises”) (such Lease, as heretofore and thereafter modified, being herein
referred to as the “Lease”).

          WHEREAS, Landlord and Tenant desire to extend the existing term of the Lease for the Premises
on the terms and conditions set forth below;

          NOW
THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant
agree as follows:

	 	1.	 	The term of the Lease is hereby extended for thirty-six (36) months, commencing on January 1,
2008 and continuing through and including December 31, 2010 (the “Extension Period”).
	 
	 	2.	 	Monthly Base Rent during the Extension Period, due and payable in accordance with the terms
of the Lease, shall be as follows:

	 	 	 	 	 	 	 	 	 
	January 1, 2008 - December 31, 2009:
	 	$45,210.25 per month	 	($3.00
p.s.f. - Net)
	January 1, 2010 - December 31, 2010:
	 	$47,470.76 per month	 	($3.15 p.s.f. - Net)

	 	3.	 	Tenant may make certain tenant improvements to the Premises (“Tenant Improvements”) subject
to Landlord’s approval of the plans and specifications related thereto, such approval not to be
unreasonably withheld or
delayed. Upon surrender of the Premises, all Tenant Improvements shall remain on the Premises
as Landlord’s
property, except to the extent (a) Landlord requires removal at Tenant’s expense of any such
items in writing at
the time Landlord’s approval of the plans and specifications of such Tenant Improvements is
requested, or (b)
Landlord and Tenant have otherwise agreed in writing in connection with Landlord’s approval
to any Tenant
Improvements. Tenant shall repair any damage caused by such removal.
	 
	 	 	 	Landlord shall contribute up to a maximum amount of
$125,000,00 (the “TI Allowance”) toward
those certain Tenant Improvements which shall remain as Landlord’s property upon surrender of
the Premises, which such payment shall be made by Landlord to Tenant within 45 days following
(i) completion of the Tenant Improvements, (ii) Landlord’s receipt of Tenant’s invoice
substantiating the costs related thereto, (iii) Landlord’s receipt of final lien waivers from
all contractors and subcontractors who did work on the Tenant Improvements, and (iv)
Landlord’s receipt of a copy of the final permit approved by the applicable governing
authority to the extent required for such Tenant Improvements. Landlord shall be under no
obligation to pay for such Tenant Improvements to the Premises in excess of the TI Allowance.
Further, such TI Allowance shall be only available for Tenant’s use through February 28,
2007, and Tenant hereby waives any and all rights to any unused portion of the TI Allowance
remaining as of March 1,2007.
	 
	 	 	 	Notwithstanding anything to the contrary in this Amendment, Landlord hereby approves the list
of Tenant Improvements attached as Exhibit “A” to this Amendment and agrees that, upon the
satisfaction of the conditions set forth above, Landlord will contribute the TI Allowance
toward the completion of the Tenant Improvements listed on Exhibit “A”. In the event the cost
of the Tenant Improvements exceeds the TI Allowance, Tenant shall be responsible for the
payment of such excess cost. In the event the cost of the Tenant Improvements listed on
Exhibit “A” is less than the Tenant Improvement Allowance, Tenant may add items to such list
upon obtaining Landlord’s consent, such consent not to be unreasonably withheld or delayed.
	 
	 	4.	 	Tenant shall have one (1) Five (5) Year Option to Renew at Fair Market Value per the
attached Addendum 1.
	 
	 	5.	 	Tenant and Landlord warrant to each other that they have had no dealings with any
broker or agent, other than Kurt Griffin, Cushman & Wakefield, in connection with this
Amendment. Tenant covenants to pay, hold harmless and indemnify Landlord from and against
any and all costs, expenses or liability for any compensation, commissions, and charges
claimed by any other broker or agent, with respect to this Amendment or the negotiation
thereof with whom Tenant had dealings. Landlord covenants to pay, hold harmless, defend and
indemnify Tenant from and against any and all costs, expenses or liability for any compensation, commissions, and charges claimed
by any other broker or agent, with respect to this Amendment or the negotiation thereof
with whom Landlord had dealings. Landlord shall pay Kurt Griffin, Cushman & Wakefield a
commission in accordance with a separate agreement between Landlord and Kurt

Griffin, Cushman & Wakefield.
	 
	 	6.	 	Insofar as the specific terms and provisions of this Amendment purport to amend or
modify or are in conflict with the specific terms, provisions and exhibits of the Lease,
the terms and provisions of this Amendment shall govern and control; in all other respects,
the terms, provisions and exhibits of the Lease shall remain unmodified and in full force
and effect.

 

 

	 	7.	 	Any obligation or liability whatsoever of ProLogis, a Maryland real estate investment
trust, which may arise at any time under the Lease or this Amendment or any obligation or
liability which may be incurred by it pursuant to any other instrument, transaction or
undertaking contemplated hereby, shall not be personally binding upon, nor shall resort for
the enforcement thereof be had to the property of its trustees, directors, shareholders,
officers, employees, or agents regardless of whether such obligation or liability is in the
nature of contract, tort or otherwise.

IN WITNESS WHEREOF, the parties hereto have signed this THIRD AMENDMENT to Lease as of the day and
year first above written.

	 	 	 
	TENANT:

	 	LANDLORD:
	 
	 	 
	SPORT SUPPLY GROUP, INC.

	 	PROLOGIS
	 
	 	 
	By: /s/ Terrence M. Babilla                                                   

	 	By: /s/ Eric. D. Brown                                                  
	Name: Terrence M. Babilla

	 	Name: Eric. D. Brown
	Title: President

	 	Title: Senior Vice President

 

 

ADDENDUM 1

ONE RENEWAL OPTION AT MARKET

ATTACHED TO AND A PART OF THE LEASE AGREEMENT

DATED 4-25-94, BETWEEN

ProLogis

and

Sport Supply Group, Inc.

          (a) Provided that as of the time of the giving of the Extension Notice and the Commencement Date of
the Extension Term (as hereinafter defined), (x) Tenant is the Tenant originally named herein, (y)
Tenant (or any permitted assignee or sublessee) actually occupies all of the Premises initially
demised under this Lease and any space added to the Premises, and (z) no Event of Default exists or
would exist but for the passage of time or the giving of notice, or both; then Tenant shall have
the right to extend the Lease Term for an additional term of
5 years (such additional term is
hereinafter called the “Extension Term”) commencing on the day following the expiration of the
Lease Term (hereinafter referred to as the “Commencement Date of the Extension Term”). Tenant shall
give Landlord notice (hereinafter called the “Extension Notice”) of its election to extend the term
of the Lease Term at least 12 months, but not more than 15 months, prior to the scheduled
expiration date of the Lease Term.

          (b) The Base Rent payable by Tenant to Landlord during the Extension Term shall be (i) the Base
Rent applicable to the last year of the initial Lease Term or (ii) the then prevailing market rate
for comparable space in the Project and comparable buildings in the vicinity of the Project, taking
into account the size of the Lease, the length of the renewal term, market escalations and the
credit of Tenant. The Base Rent shall not be reduced by reason of any costs or expenses saved by
Landlord by reason of Landlord’s not having to find a new tenant for such premises (including,
without limitation, brokerage commissions, costs of improvements, rent concessions, or lost rental
income during any vacancy period). In the event Landlord and Tenant fail to reach an agreement on
such rental rate and execute the Amendment (defined below) at least 9 months prior to the
expiration of the Lease, then Tenant’s exercise of the renewal option shall be deemed withdrawn and
the Lease shall terminate on its original expiration date.

          (c) The determination of Base Rent does not reduce the Tenant’s obligation to pay or reimburse
Landlord for Operating Expenses and other reimbursable items as set forth in the Lease, and Tenant
shall reimburse and pay Landlord as set forth in the Lease with respect to such Operating Expenses
and other items with respect to the Premises during the Extension Term without regard to any cap on
such expenses set forth in the Lease.

          (d) Except for the Base Rent as determined above, Tenant’s occupancy of the Premises during the
Extension Term shall be on the same terms and conditions as are in effect immediately prior to the
expiration of the initial Lease Term unless otherwise agreed to in writing by both parties hereto;
provided, however, Tenant shall have no further right to any allowances, credits or abatements or
any options to expand, contract, renew or extend the Lease.

          (e) If Tenant does not give the Extension Notice within the period set forth in paragraph (a)
above, Tenant’s right to extend the Lease Term shall automatically terminate. Time is of the
essence as to the giving of the Extension Notice.

          (f) Landlord shall have no obligation to refurbish or otherwise improve the Premises for the
Extension Term. Unless otherwise agreed to in writing by both parties hereto, the Premises shall be tendered on the Commencement Date of the Extension Term in “as-is” condition.

          (g) If the Lease is extended for the Extension Term, then Landlord shall prepare and Tenant shall
execute an amendment to the Lease reasonably acceptable to both parties confirming the extension of
the Lease Term and the other provisions applicable thereto (the “Amendment”).

          (h) If Tenant exercises its right to extend the term of the Lease for the Extension Term pursuant
to this Addendum, the term “Lease Term” as used in the Lease, shall be construed to include, when
practicable, the Extension Term except as provided in (d) above.

 

 

EXHIBIT “A”

TENANT IMPROVEMENTS

The following list of improvements is to be performed to the Premises in accordance with the terms
and conditions of this Third Amendment to Lease.

	 	1.	 	Install new lighting throughout the warehouse (Model # T5HO 4 lamp). This will consist
of removing all existing 400 watt metal halide lamps and replacing them with new energy efficient
fluorescent fixtures (200 watts).
	 
	 	2.	 	Install new CCTV security system. This project will consist of installing fourteen (14)
security cameras throughout the facility as well as on the outside of
the building.
	 
	 	3.	 	Install two (2) Big Ass fans (Model #MAX24XL1006) in the
warehouse area.
	 
	 	4.	 	Install overhead door seals a three (3) dock doors
(Model #S700A). Materials to be
supplied by the same manufacturer to match existing seals.
	 
	 	5.	 	Install seven (7) Bi-parting Accordion Gates (Model #PFG-1065-ANG) at existing dock doors.
	 
	 	6.	 	Perform roof exhaust-fan repair to include replacement of motor seals and repair drive shaft.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]