Document:

COMMERICAL AND INDUSTRUAL LEASE AGREEMENT

COMMERICAL AND INDUSTRUAL LEASE AGREEMENT

THIS LEASE is made as of February 21, 2002, between Manchester Properties, LLC (“Landlord”), with an address of 2345 Grand Ave., Ste. 400, Kansas City Missouri 64108, and Financial Credit Corporation, A Missouri Corporation D/B/A Commercial Trailer and Storage (“Tenant”), with and address of 3501 Manchester Tfwy, Kansas City, Missouri 64129, who hereby agrees as follows: 

1.

PREMISES.  Subject to the covenants and conditions of this Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the premise (the “Premises”) commonly known and numbered as 3501 Manchester Trafficway, in the City of Kansas City, county of Jackson, State of Missouri, and further described as:  approximately 4,000square feet of office space on tow levels, along with two drive-in maintenance bays, and approximately twelve acres of surface lot area, together with the right of ingress and egress.  For the purpose of further description and clarification, a diagram illustration the location of the Premises is attached as Exhibit ‘A’.

2.

USE OF PREMISES.  The premises will be used only for: offices, sales, storage and distribution of truck trailers and intermodal containers (collectively, the “Permitted Use”).

3.

TERM.  The term of this Lease (the “Term”) is for seven (7)  years and one (1) month, commencing on the 1st day of March 2002, and ending on the 31st day of March 2009.

4.

BASE RENTALS.  Tenant shall pay to Landlord Base Rentals according to the following schedule, each due and payable monthly in advance without notice or demand at Landlord’s above stated address, or at any other place Landlord designates in writing.  The first monthly rent installment representing April Base Rentals will be paid upon full execution of this Lease, and all subsequent monthly Base Rentals will be due on the first day of each succeeding month during the Term.  The amount of each monthly rent installment will be as follows:

March 1, 2002-March 31, 2002

Rent Abated

April 1, 2002-March 31, 2005

$13,000.00 per month

April 1, 2005-March 31, 2007

$14,000.00 per month

April 1, 2007-March 31, 2009

$15,000.00 per month

5.

SECURITY DEPOSIT.  Concurrently with its execution of this Lease, Tenant shall deliver to Landlord $10,000.00 as security for the performance by Tenant of every covenant and condition of this Lease (the “Security Deposit”).  Said Security Deposit may be co-mingled with other funds of Landlord and shall bear no interest.  If Tenant shall default with respect to any covenant or condition of this Lease, including, but not limited to the payment of rent, Landlord may apply the whole or any part of such Security Deposit to the payment of any sum in default or any sum which Landlord may be required to spend by reason of Tenant’s default.  If any portion of the Security Deposit is so applied, Tenant, upon demand by Landlord, will deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount.  Should Tenant comply with all of the covenants and conditions of this Lease, the Security Deposit or any balance thereof shall be returned to Tenant promptly after the expiration of the term thereof.

6.

POSSESSION AT BEGINNING OF TERM.  Landlord shall use due diligence to give possession as nearly as possible at the beginning of the Term.  Rent shall abate pro rata for the period of any delay in giving Tenant possession, and the Term will be extended as a result of such delay.   Tenant will make on other claim against Landlord for delay in obtaining possession.

7.

PROPERTY INSURANCE.  Tenant shall comply with all reasonable insurance regulations so the lowest property damage insurance and liability insurance rates may be obtained; and nothing shall be done or kept in or on the Premises by Tenant which will cause an increase in the premium for nay such insurance on the Premises or on any building of which the Premise are a part or on nay contents located therein, over the rate usually obtained for the proper use of the Premises permitted by this Lease or which will cause cancellation or make void any such insurance.

If, during the Term, the premiums for any such property damage insurance maintained by Landlord with respect to the Premises are increased, or if the amount of property damage coverage that must be maintained with respect to the Premises is increases, then the Tenant will pay to Landlord, as additional rent, the amount of all such increases in excess of the premium covering the Premises for the policy year 2002 within thirty (30) days after receipt of Landlord’s billing statement and demand for payment of the same.  The amount payable by Tenant under this section will be pro rated on a per diem basis for the partial years, in which this Lease commences and terminates.

Tenant shall maintain, at all times during the Term, adequate insurance on its personal property used, stored or kept in the Premises.

8.

INDEMNITY AND LIABILITY INSURANCE.  Tenant shall at all times indemnify, defined and hold Landlord harmless from all loss, liability, costs, damages and expenses that occur or be claimed with respect to any person or persons, or property on or about the Premises or to the Premises resulting from any act done or omission by through Tenant, its agents, employees, invitees or any person on the Premises by reason of Tenant’s use or occupancy or resulting from Tenant’s non-use or possession of said property and any and all loss, cost, liability or expense resulting therefrom.  Tenant shall maintain, at all times during the Term, comprehensive general liability insurance in a responsible insurance company, licensed to do business in the state which the Premises are located and satisfactory to Landlord, properly protecting and  indemnifying Landlord with single limit coverage of not less than $1,000,000 fro injury to or for death of persons and for property damage. Prior to taking possession of the Premises, and at any time during the Term as requested, Tenant shall furnish Landlord with a certificated or certificates of insurance covering such insurance so maintained by Tenant and naming Landlord and Landlord’s mortgages, if any, as additional insureds.

9.

ASSIGNMENT AND SUBLETTING.  Tenant shall not assign, transfer or encumber this Lease and shall not sublease the Premises or any part thereof or allow any other person to be in possession thereof without the prior written consent of Landlord, in each and every instance, which consent or consents interest in Tenant (whether in one or more related or unrelated transactions), whether by transfer of stock, consolidation, merger, transfer of a partnership interest or transfer of any or all of Tenant’s assets or otherwise, or by operation of law, shall be deemed an assignment of this lease.  Notwithstanding any permitted assignment of subletting, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent herein specified and for compliance with all of its other obligations under the terms and provisions of this Lease.

10.

SIGNS AND ADVERTISEMENTS.  Tenant shall not place upon nor permit to be placed upon nay part of the Premises, any signs, billboards or advertisements whatever, without the prior written consent of Landlord, which consent shall not be unreasonably withheld.  Tenant shall be allowed to display signs upon trailers in the paved area and to post a sign on the west side of the building facing Manchester, provided the signs of similar size and position to that shown in Exhibit “B” attached.

11.

 CONDITION OF PREMISES AT BEGINNING AND END OF TERM.  Tenant acknowledges Tenant has inspected the Premises and, except as may be provided otherwise in the Lease and without abrogating Landlord’s obligations under paragraph 15 hereof, Tenant accepts the Premises in their present condition.

At the end of the Term, except for damage caused by fire or other perils, Tenant, at Tenant’s expense, will (a) surrender the Premises in as good condition as the Permitted Use will have reasonably permitted. Subject to Tenant’s obligations stated in Paragraphs 12 and 14 herein; (b) have removed all of Tenant’s property from the Premises; (c) have promptly repaired and damage to the Premises caused by the removal of Tenant’s Property; and (d) leave the Premises free of trash and debris and the building in “broom clean” condition.

12.

MAINTENANCE AND REPAIR BY TENANT.   Except for the obligations imposed upon Landlord in Paragraph 15 hereof, and except fro damage resulting from an Insurable Loss, during the Term and at Tenant’s sole cost and expense, Tenant will maintain and keep in good order, repair and condition and, when necessary, will replace all parts of the Premises (except those for which Landlord is expressly responsible under the terms of this Lease), including, but not limited to, dock bumpers and other dock equipment and apparatus, utility service lines from the point where they enter the building(s) of which the Premises are a part, interior walls, inside surfaces of exterior walls, fixtures, floor coverings, lighting fixtures, heating, ventilating, air-conditioning, plumbing, sprinkler system, glass windows, doors, electrical and other mechanical equipment, appliances and systems, improvements made by and at the expense of Tenant and Tenant’s property, including, but not limited to, Tenant’s signs and advertisements.  Tenant will police and keep the driveways, approaches, sidewalks, parking areas and adjacent alley that are a part of the Premises clean, orderly, sightly, unobstructed and free from ice and snow.  Tenant will regularly maintain trees and other landscaping of the Premises and will prevent water pipes in the Premises from freezing.

13.

LANDLORD’S RIGHT OF ENTRY.  Landlord or Landlord’s agent may enter the Premises at reasonable hours to examine the same, to show the same to prospective lenders and purchases, and to do anything Landlord may be required to do hereunder or which Landlord may deem necessary for the good of the Premises or any building of which they are a part; and, during the last 180 days of this Lease, Landlord may display a “For Lease” sign on and show the Premises with reasonable notice to Tenant.

14.

 MAINTENANCE OF PARKING LOT.  Tenant shall be responsible for maintenance, cleaning, repainting, and repairs of the parking areas, driveways, sidewalks, and approaches caused by placement or movement of intermodal containers, trucks, trailers, trash containers, truck trailer dollies, etc.  Tenant agrees that asphalt surface of the lot does not concurrently have nay penetrations, and Tenant further agrees to deliver the surface of the lot does not currently have any penetrations, and Tenant further agrees to deliver to the surface the same or better condition at the expiration of the Term or upon vacating the Premises.

15.

 MAINTENANCE AND REPAIR BY LANDLORD.  Landlord, during the Term and at Landlord’s sole cost and expense, will maintain and keep in good repair the roof, exterior walls (exclusive of inside surfaces and glass, windows, and doors), gutters, down spouts, foundations and all other structural components of the building(s) of which the Premises are a part, all underground plumbing and sewer lines, and water, gas, and electric service lines to the point where such service lines enter the building(s) of which the Premises are a part.  Landlord will be under no obligation, and will not be liable for any failure, to make any repairs until and unless Tenant notifies Landlord in writing they are necessary, in which event Landlord will have a reasonable time after notice to make such repairs.

16.

DAMAGE BY CASUALTY.  In case, during the Term previous thereto, the Premises hereby let, or the building of which said Premises are a part, shall be destroyed or shall be so damaged by fire or other casually as to become untenantable, then in such event, Tenant shall cease making rent payments, the Term shall cease and this Lease shall become null and void from the date such damage or destruction and Tenant shall immediately surrender said Premises and all interest therein to Landlord.  Tenant shall remove all rubbish, debris, merchandise, furniture, equipment, and other of its personal property, within five days after the request of Landlord.  If the Premises shall be but slightly injured by fire or other casualty, so as not to render the same untenable and unfit for occupancy, then the Landlord shall repair the same with all reasonable promptitude, and in that case the rent shall not abate.  Except as provided herein, no compensation or claim shall be made by or allowed to Tenant by reason of any inconvenience or annoyance arising from the necessity or repairing any portion of the building or the Premises, however the necessity may occur.

17.

PERSONAL PROPERTY.  Landlord shall not be liable for any loss or damage to any merchandise inventory, goods, fixtures, improvements or personal property of Tenant in or about the Premises.

18.

  ALTERATIONS.  Tenant shall not make any alterations or additions in or to the Premises without the prior written consent of Landlord.

19.

UTILITIES AND SERVICES  Tenant shall furnish and pay for all electricity, gas, water, fuel, trash removal and any services or utilities used in or assessed against the Premises, unless otherwise herein expressly provided.

20.

 LEGAL REQUIRMENTS.  Tenant shall comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Premises or the use thereof, including without limitation ADA, OSHA and like requirements, and shall indemnify, defend and hold Landlord harmless from expenses or damage resulting from failure to do so.

21.

MULTIPLE TENANCY BUILDING.  Tenant acknowledges that the Premises are a part of a multiple tenancy property, and the responsibility of Tenant for reimbursement as called for in Paragraphs 7 and 23 of this Lease shall be a percentage of the total increase equal to the percentage of the total land area and rentable floor space occupied by Tenant.  It is agreed Tenant occupies 40.0% (“Proportionate Share”) of the total rentable property for which the Premises are a part.

Tenant agrees to conduct business in a manner that will not be objectionable to other tenants in the building of which the Premises are a part, including noise, vibration, odor, trash, or fumes.  In the event Landlord receives complaints from other tenants in the building and determines, in its sole reasonable judgment, that Tenant is conducting its operations in a manner so as to be objectionable to other Tenants, Tenant agrees, upon notice from Landlord thereof, to promptly modify the conduct of its operations to eliminate such objectionable operations.

22.

FIXTURES.  Except for Tenant’s property and business fixtures, all buildings, repairs, alterations, additions, improvements, installations, and other non-business fixtures installed or erected on the Premises, whether by or at the expense of Landlord or Tenant, will belong to Landlord and will remain on and be surrendered with the Premises at the expiration or termination of this Lease.  However, at Landlord’s option, Tenant shall remove Tenant’s alterations or improvements prior to the expiration of this Lease and return the Premises to their original condition.

23.

INCREASE IN REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.  IN the event the real estate taxes and installments of special assessments, payable with respect to the Premises during any lease year shall be greater than the amount of such taxes and installments due and payable during the base year of 2001, whether by reason of an increase in tax rate or an increase in the assessed valuation or otherwise, Tenant shall pay to Landlord the full amount of such increase as additional rent within thirty (30) days after the notice that same is due.  Should Tenant occupy less than the whole property against which such taxes are assessed, Tenant’s obligation hereunder shall be limited to its Proportionate Share of such increased taxes and special assessments.

24.  EMINENT DOMAIN.  If the Premises or any substantial part thereof shall be taken under the power of eminent domain or be acquired for any public or quasi-public use or purpose, the Term shall cease and terminate upon the date when the possession of said Premises or the part thereof so taken shall be required fro such use or purpose and without appointment of the award, and Tenant shall have no claim against Landlord for the value of any unexpired Term.  If any condemnation proceeding shall be instituted in which it is sought to take or damage any part of the Premises or the building of which the Premises are a part or the land under it, or if the grade of any street adjacent to the Premises is changed by any legal authority and such change of grade makes it necessary or desirable to remodel the Premises to conform to the changed grade, Landlord shall have the right to cancel this Lease after having given written notice of cancellation to Tenant not less than ninety (90) days prior to the date of cancellation designated in the notice.  In either said events, rent at the then current rate shall be apportioned as of the date of the termination.  No money or other consideration shall be payable by Landlord to Tenant for the right of cancellation and Tenant shall have not right in the condemnation award or in any judgment for damages caused by the taking or the change of grade.  Nothing in this paragraph shall preclude an awards being made to Tenant for loss of business or depreciation to and cost of removal of equipment and fixtures.  

1.

 WAIVER OF SUBROGATION.  As part of the consideration for this Lease, each of the parties hereby releases the other party from all liability for damage due to any neglect of the other party (except as hereinafter provided) occasioned to property owned by said parties which is or might be incident to or the result of a fire or any other casualty against loss for which either of the parties is now carrying or hereafter may carry insurance; provided, however, that the releases herein contained shall not apply to any loss or damage occasioned by intentional acts of either of the parties hereto, and the parties hereto further covenant that any insurances they obtain on their respective properties shall contain an appropriate provision whereby the insurance company, or companies, consent to the mutual release or liability contained in this paragraph.

2.

DEFAULT AND REMEDIES.  In the event: (a) Tenant fails to comply with any term, provision, condition or covenant of this Lease; (b) Tenant deserts or vacates the Premises; (c) any petition is filed by or against Tenant under any section or chapter of the Federal Bankruptcy Act, as amended, or under any similar law or statute of the United States or any state thereof;; (d) Tenant becomes insolvent or makes a transfer in fraud of creditors; (e) Tenant makes an assignment for the benefit of creditors; or (f) a receiver is appointed for Tenant or any of the assets of Tenant, then in any of such events, Tenant shall be in default and Landlord shall have the option to do any one or more of the following: upon ten (10) days prior to written notice, excepting the payment of rent or additional for which no demand or notice shall be necessary, in addition to and no in limitation of any other remedy permitted by law, to enter upon the Premises either with or without process of law, and to expel, remove and put out Tenant or nay other persons who might be thereon, together with all personal property found therein; and, Landlord may terminate this Lease or it may from time to time, without terminating this Lease, rent said Premises or any part thereof for such term or terms (which may be for a term extending beyond the Term) and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may seems advisable, with the right to repair, renovate, remodel, redecorate, alter and change Premises. At the option of the Landlord, rents received by Landlord such reletting shall be applied first to the payment of any indebtedness from Tenant to Landlord other than rent and additional rent due hereunder; second, to payment of any costs and expenses of such reletting, including, but not limited to, attorney’s fees, advertising fees, and brokerage fees, and to the payment of any repairs, renovation, remodeling, redecorations, alterations and changes in the Premises; third, to the payment of rent and additional rent due and payable hereunder and interest thereon; and, if after applying said rentals there is any deficiency in the rent and additional rent and interest to be paid by Tenant under this Lease, Tenant shall pay any such deficiency to Landlord and such deficiency shall be calculated and collected by Landlord monthly.  No such re-entry or taking possession of said Premises shall be construed as an election of Landlord’s part to terminate this Lease unless a written notice of such intention be given to Tenant.  Notwithstanding any such reletting  without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach and default.  Should Landlord at any time terminated this Lease by reason of any default, in addition to any other remedy it may have, it may recover from Tenant the worth at the time of such termination of the excess of the amount of rent and additional rent reserved  in this Lease for the balance of the Term over the then reasonable rental value of the Premises for the same period.  Landlord shall have the right to remedy to seek redress in the courts at any time to correct or remedy any default of Tenant by injunction or otherwise, without such resulting or being deemed a termination of this Lease, and Landlord, whether this Lease has been or is terminated or not, shall have the absolute right by court action or otherwise to collect any and all amounts of unpaid rent or unpaid at the date of termination.  In case it should be necessary for Landlord to bring any action under this Lease, to consult or place said lease or any amount payable by Tenant hereunder with an attorney concerning or for the enforcement of any Landlord’s rights hereunder, then Tenant agrees in each and any such case to pay to Landlord, Landlord’s reasonable attorney’s fees.

3.

WAIVER.  The rights and remedies of Landlord under this Lease, as well as those provided or accorded by law, shall be cumulative, and none shall be exclusive of any other rights and remedies hereunder or accorded by law.  A waiver by Landlord of any breach or breaches, default or defaults of Tenant hereunder shall not be deemed on construed to be a continuing waiver of such breach or default nor as waiver of or permission, expressed or implied, for any subsequent breach or default, and it is agreed that the acceptance by Landlord of any installment of rent subsequently to the date the same should have been paid hereunder, shall in no manner alter or affect the covenant and obligation of Tenant to pay subsequent installments of rent promptly upon the due date thereof.  No receipt of money by Landlord after the termination of this Lease shall in any way reinstate, continue or extend the term above demised.

4.

TOXIC OR HAZARDOUS MATERIALS.  Tenant shall not store, use or dispose of any materials that are regulated by or establish liability under applicable federal, state, or local laws or regulations controlling human health or the environment (“Hazardous Materials”) in, on or about the Premises without the prior written consent of Landlord except such Hazardous Materials in maintenance or consumer products used and stored in the normal course of Tenants business allowed under this Lease so long as Hazardous Materials are stored and used in quantities which do not require reporting under applicable law and are managed so that there is no release to the environment or contamination of the Premises.  Tenant, at its sole cost, will comply with all laws relating to Tenant’s storage, use and disposal of Hazardous Materials.  Tenant shall solely be responsible for and will defend, indemnify and hold Landlord, its agents and employees, harmless from and against all claims, costs and liabilities, including attorney’s fees and costs, arising out of or in connection with the removal, clean-up and restoration work and materials necessary to return the Premises, and any other property of whatever nature located on the Premises, to their condition existing prior to the appearance of Hazardous Materials on the Premises Tenant’s obligations under this paragraph will survive the termination of this Lease.

29.  REAL ESTATE BROKERAGE.  JP Fogel and Company, the Broker identified in the Agency Disclosure Addendum attached to and hereby incorporated into this Lease, is the only real estate broker involved in representing or procuring the parties to this Lease.  Upon complete execution of this Lease by both Landlord and Tenant, Landlord will pay the Broker a leasing commission of six percent (6%) of the gross rentals to be received under the Term of this Lease, pursuant to the agreement between Landlord and Broker.   

If the Premises are purchased by Tenant during the Term, Landlord will pay such Broker a sales commission of six percent (6%) of the purchase price, less any commissions paid by Landlord to Broker for unrecognized gross rentals on the date of closing.

Any party to this Lease through whom a claim to any broker’s, finder’s, or other fee is made, contrary to the representation made above in this paragraph, shall indemnify, defend and hold harmless the other party to this Lease from any other loss, liability, damage, cost or expense including, without limitation, reasonable attorney’s fees court costs and other legal expenses paid or incurred by the other party, that is in any way related to such a claim.

1.

 NOTICES.  Any notice hereunder shall be sufficient if sent by certified mail, addressed to Tenant at the Premises, and to Landlord where rent is payable.

2.

SUBORDINATION.  In the event Landlord holds title to said Premises by virtue of a lease, then this sublease is and shall remain subject to all of the terms and conditions of such underlying lease, so far as shall be applicable to the Premises.  This Lease shall also be subject and subordinate in law and equity to any existing future mortgage or deeds of trust placed by Landlord upon the Premises or the property of which the Premises form a part.

3.

 SUCCESSORS.  The provisions, covenants, and conditions of this Lease shall bind and inure to the benefit of the legal representatives, heirs, successors and assigns of each of the parties hereto, except that no assignment or subletting by Tenant without the written consent of Landlord shall vest any rights in the assignee or subtenant of Tenant.

4.

  QUIET POSSESSION.  Landlord agrees, so long as Tenant fully complies with all of the terms, covenants and conditions herein contained on Tenant’s part to be kept and performed, Tenant shall and may peaceably and quietly have, hold and enjoy the Premises for the Term aforesaid, it being expressly understood and agreed that the aforesaid covenant of quiet enjoyment shall be binding upon Landlord, its heirs, successors or assigns, but only during such party’s ownership of the Premises.  Landlord and Tenant further covenant and represent that each has full right, title, power and authority to make, execute and deliver this Lease.

5.

  BANKRUPTCY.  Neither this Lease nor any interest therein nor any estate hereby created shall pass to any trustee or receiver in bankruptcy or to any other receiver or assignee for  the benefit of creditors by operation of law or otherwise during the Term or renewal thereof.

6.

  HOLDING OVER.  If Tenant should remain in possession of the Premises after the expiration of this Lease term and without executing a new Lease, then, upon acceptance of rent by Landlord, such holding over shall be construed as a tenancy from month to month, subject to the conditions, provisions, and obligations of this Lease as existed during the last month of the term hereof, so far as applicable to a month-to-month tenancy, except that the monthly Base Rentals shall be equal to one and one half the monthly Base Rentals payable during the month immediately prior to the expiration or termination of this Lease.

7.

  ENTIRE AGREEMENT.  This Lease contains the entire agreement between the parties, and no modification of this Lease shall be binding upon the parties unless evidenced by an agreement in writing signed by Landlord and Tenant after the date hereof.  If there be more than one Tenant named herein, the provisions of this Lease shall be applicable to and binding upon such Tenants, jointly and severally.

8.

  ATTORNMENT.  Tenant shall attorn to any successor to Landlord upon request and to execute any documents reasonably required or appropriate to effectuate such an attornment, or the subordination aforesaid, upon written notice thereof, and Tenant does not hereby make, constitute and irrevocably appoint Landlord as Tenant’s attorney-in-fact and in Tenant’s name, place and stead to execute all such documents in accordance therewith.

9.

  ESTOPPEL CERTIFICATES.  Tenant shall at any time not less than ten (10) days’ prior written notice from Landlord execute, acknowledge, and deliver to Landlord or to any tender of or purchaser from Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or if modified stating the nature of such modifications) and the date to which the rent and other charges are paid in advance, if any, and acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord or specifying such defaults if any are claimed.  Any such statement may be conclusively relied upon by any prospective purchaser or encumbrance of the Premises or of the business of Landlord.

10.

 IMPROVEMENTS BY TENANT.  Tenant shall be permitted to make certain improvements to the Premises as follows:

A.

Making cosmetic improvements to the office areas, including paint, floor coverings, drop ceiling and lighting systems;

B.

Upgrading HVAC systems, if necessary;

C.

Constructing two (2) restrooms, if necessary;

D.

Replacing windows and installing a formal entrance into the office areas

E.

Constructing interior fencing to demise the maintenance bays;

F.

Relocating the exterior fencing to allow for access the bays;

Landlord consents to Tenant’s contractor, Triad Construction, completing the improvements to the Premises, so long as lien waivers are provided to Landlord within a reasonable period following completion of the work.  Landlord shall contribute an improvement allowance (the “Allowance”), which shall not exceed Sixty Thousand Dollars ($60,000.00), toward the completion of improvements outlined above.  Tenant shall be responsible for all costs exceeding the Allowance.  Tenant shall submit actual invoices for the completed work to Landlord no later than August 31, 2002.  Upon receipt of invoices and lien waivers, Landlord shall provide Tenant with the Allowances in the form of a check to Tenant or Tenant’s contractor.  Tenant shall not permit or allow mechanics liens to be filed against the Premises or any other property owned by Landlord.  All improvements and modifications made by Tenant to the Premises shall, unless otherwise agreed to by Tenant and Landlord, remain a part of the Premises upon the termination of the Lease or vacation of the Premises by Tenant.  Finally, all improvements made to the Premises shall made in accordance with the applicable codes in the City of Kansas City, Missouri, and it shall be the sole responsibility of Tenant and Tenant’s contractor to verify compliance.

11.

HVAC SYSTEMS.  Landlord shall warrant the functionality of the existing heating, venting and air-conditioning (“HVAC”) systems in the office areas through March 31, 2003.  Landlord’s warranty shall be conditioned upon Tenant contracting for the routine maintenance of the HVAC, including replacement of filters.  In the event of that the existing HVAC requires repair during the warranty period, Tenant shall have the option of (a) notifying Landlord in writing and allowing the Landlord to repair the systems in reasonable time or (b) contracting directly for the repairs and submitting the invoice to Landlord for reimbursement within thirty (30) days.

41.  TENANT’S RIGHT OF FIRST NEGOTIATION.  If at any time during the Term Landlord shall desire to offer for sale the property located at 3501 Manchester, Kansas City, Missouri (the “Manchester Property”), Landlord shall (provided that Tenant shall not then be in default hereunder), by written notice to Tenant, communicate the terms of such proposed sale to Tenant.  Such terms shall include at least the sale of price, the form of payment therefore and the date of closing.  Tenant shall then have exclusive right, for a period of ten (10) calendar days, to accept or negotiate the terms of such offer and to execute and deliver to Landlord a definitive contract of sale of purchase of the Manchester Property on terms and conditions acceptable to Landlord and Tenant.

Upon the expiration of such period without the mutual execution and delivery by Landlord and Tenant of a definitive sale of contract for the Manchester Property, such right of first negotiation shall expire.  In the event that Landlord and Tenant shall mutually execute and deliver a definitive sale of contract but the transaction contemplated by such contract shall not, for any reason, close, then Tenant’s exclusive right shall expire on the date on which the closing was to have occurred.  Upon the expiration of Tenant’s right of first negotiation, Landlord thereafter shall have no obligation to negotiate with Tenant in connection with any future sale of the Manchester Property. 

In no event shall the existence of such right of first negotiation for the purchase of the Manchester Property apply to any lease or financing of all or any portion of the Manchester Property of any interest therein or to the sale or other transfer of all or any portion of the Manchester Property or any interest therein to any entity owned or controlled by Landlord.

12.

ACCESS TO MAINTENANCE BAYS.  Tenant shall have access to the maintenance bays through the two (2) overhead doors and through the personnel door on the north wall of the maintenance area.  Access shall not inhibit Landlord’s ability to access the electrical panels along the north wall.  Tenant shall have common access to the shop restroom along the north wall of the shop area, provided that Tenant share in the reasonable upkeep and cleaning of the restroom.  

IN WITNESS WHEREOF, said parties hereunto subscribed their names.  Executed in four (4) originals.

LANDLORD

TENANT

Manchester Properties Unlimited

Financial Credit Corp., A Missouri

D/B/A/Commercial Trailer & Storage

By://s// Thom C

By://s// Richard G.  Honan

Title: President

Title: Chairman   

Date: 2-25-02

Date: 2-22-02PROMOISSORY NOTE

PROMOISSORY NOTE

Principal: $2,324,426.68  Loan Date: 04-15-2004  Maturity:04-15-2007  

Loan No.:2700433672  Call/Coll: 300/87  Account :n/a   Officer: F8B  Initials: n/a

References in the shaded areas are for Lender’s use and do not limit the applicability of this document to any particular loan or item.  Any item above containing “***” has been omitted due to text length limitations.

Borrower:  American Trailer & Storage, Inc.

Lender:  Commercial Federal Bank, a  

                   Trailer & Storage

         Federal Savings Bank

                   3505 Manchester Trafficway

Lee’s Summit Commercial

                   Kansas City, MO 64129

Lending HQ

740 NW Blue Parkway

Lee’s Summit, MO 64086

Principal Amount: $2,324,426.68   Interest Rate: 6.190%  Date of Note:  April 23, 2004

PROMISE TO PAY.  American Trailer & Storage, Inc. (“Borrower”) promises to pay Commercial Federal Bank, a Federal Savings Bank (“Lender”), or order, in lawful money of the United States of America, the principal amount of Two Million, Three Hundred Twenty Four Thousand Four Hundred Twenty Six & 68/100 Dollars ($2,324,426.68) or so much as may be outstanding, together with the interest at the rate of 6.190% per annum on the unpaid outstanding principal balance of each advance.  Interest shall be calculated from the date of each advance until repayment of each advance.

PAYMENT.  Borrower will pay this loan in accordance with the following payment schedule:

Borrower will pay accrued interest monthly. Principle at maturity April 15, 2007

In addition the availability of the line of credit shall reduce monthly by $24,302.00 beginning May 1, 2004.  If at any time the principal balance exceeds the available amount the difference  between the principle balance and the line amount shall be due and payable.

Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges.  The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing.

PREPAYMENT.  Borrower may pay without penalty all or a portion of the amount owed earlier than it is due.  Early payments will not, unless agreed to by Lender in writing, relieve Borrower or Borrower’s obligation to continue to make payments of accrued unpaid interest.  Rather, early payments will reduce the principal balance due.  Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language.  If Borrower sends in such a  payment, Lender may accept it without losing any of Lender’s rights under the Note, and Borrower will remain obligated to pay any further amount owed to Lender.   All written communications concerning disputed amounts, including any check or other payment instrument that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Commercial Federal Bank, A Savings Bank; Lee’s Summit Lending HQ; 740 NW Blue Parkway; Lee’s Summit, MO 64086.

LATE CHARGE.  If a payment is 10 days or more late, Borrower will be charged a 5.000% of the unpaid portion of the regularly scheduled payment of $25.00, whichever is greater.

INTEREST AFTER DEFAULT.  Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the interest rate on this Note 5.000 percentage points.  The interest rate will not exceed the maximum rate permitted by applicable law.

DEFAULT.  Each of the following shall constitute an event of default (“Event of Default”) under this Note:

Payment Default: Borrower fails to make any payment when due under this Note.

Other Defaults.  Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties.  Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

False Statements.  Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or the related documents id false or misleading in any material respect, either now or at the time made or furnished becomes false or misleading at any time thereafter.

  

Insolvency.  The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of the Borrower’s property, any assignment for the benefit of the creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings.  Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against collateral securing the loan.  This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender.  However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity of reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with the Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor.  Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, liability under, any guaranty of the indebtedness evidenced by this Note.   In the event of a death, Lender, at its options, may, but shall not be required to, permit the Guarantor’s estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default.

Changes in Ownership.  Any change in ownership of twenty-five percent (25%) or more of common stock of Borrower.

Adverse Change.  A material adverse change occurs in Borrower’s financial condition, or the Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity.  Lender in good faith believes itself is insecure.

Cure Provisions.  If any default, other than a default in payment is curable and if Borrower has not been given a notice of breach of the same provision of this Note within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if the Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

LENDER’S RIGHTS.  Upon default, Lender may declare the entire unpaid balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEY’S FEES: EXPENSES.  Lender may hire or pay someone else to help collect this Note if Borrower does not pay.  Borrower will pay Lender that amount.   This includes, subject to any limits under applicable law, Lender’s attorney’s fees and Lender’s legal expenses whether or not there is a lawsuit, including attorney’s fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals.  If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER.  Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW.  This Note will be governed by, construed and enforced in accordance with federal law and the laws of the State of Missouri.  This Note has been accepted by the Lender in the State of Missouri.

CHOICE OF VENUE.  If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Jackson County, State of Missouri.

DISHONORED ITEM FEE.  Borrower will pay a fee to Lender of $15.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge which Borrower pays is dishonored.

RIGHT OF SETOFF.  To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking, savings, or some other account).  This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.  However, this does not include IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law.  Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

COLLATERAL.  Borrower acknowledges this Note is secured a Security Agreement dated September 18, 2003, October 1, 2004, February 9 2004, March 23, 2004 and April 14, 2004 executed by American Trailer & Storage, Inc. F/K/A Financial Credit Corporation D/B/A American Trailer & Storage.

LINE OF CREDIT.  This Note evidences a straight line of credit.  Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances.  Advances under this Note shall be requested orally by Borrower or as provided in this paragraph.  All oral requests shall be confirmed in writing on the day of the request.  All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender’s office shown above.  The following persons currently are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender’s address shown above, written notice of revocation of their authority:

Richard G. Honan, Chairman of American Trailer & Storage, Inc.; and Richard G. Honan, II, Chief Financial Officer of American Trailer & Storage, Inc.   Borrower agrees to be liable for all sums either : (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender.  The unpaid principal balance owing on the Note at any time may be evidenced by endorsements on this Note or by Lender’s internal records, including daily computer print-outs.  Lender will have no obligation to advance funds under this Note if : (A) Borrower or any guarantor is in default under the terms of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender; (D) Borrower has applied funds provided pursuant to this Note for those authorized by Lender; or (E) Lender in good faith believes itself insecure.

PRIOR NOTE.  This evidences a renewal of promissory note dated September 18, 2003 in the amount of $2,000,000.00 and Modified January 5, 2004 in the amount of $1,936,323.89 and Modified March 25, 2004 in the amount of $1,894,197.39 executed by Financial Credit Corporation D/B/A American Trailer & Storage to Commercial Federal Bank, a Federal Savings Bank

SUCCESSOR INTERESTS.  The term of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

GENERAL PROVISIONS.  Lender may delay or forgo enforcing any of its rights under this Note without losing them.  Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor.  Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability.  All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of notice to anyone.  All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made.  The obligations under this Note are joint and several.

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENOFRECABLE.  TO PROTECT YOU (BORROWER(S) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

JURY WAIVER.  Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.  BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKENOWLEDEGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

AMERICAN TRAILER & STORAGE, INC.

By: //s//  

     Richard G. Honan, Chairman of American Trailer & Storage, Inc.

By: //s//  

     Richard G. Honan, II, Chief Financial Officer of American Trailer & Storage, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]