Document:

exv10w4

Exhibit 10.4

SECOND AMENDMENT TO LEASE AGREEMENT

     THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Second Amendment”) is made and entered into
this 12th day of April, 2010 by and between HF LOGISTICS-SKX T1, LLC, a Delaware limited
liability company (“Landlord") and SKECHERS U.S.A., INC., a Delaware corporation
(“Tenant”).

RECITALS

     A. HF LOGISTICS I, LLC, a Delaware limited liability company and Tenant entered into that
certain Lease Agreement dated September 25, 2007 (the “Original Lease”), as amended by that certain
Amendment to Lease Agreement dated December 18, 2009 (the “First Amendment”, and collectively, the
“Lease”) pursuant to which HF LOGISTICS I, LLC leased to Tenant certain premises situated
at the northwest corner of Theodore Street and Eucalyptus Avenue in Moreno Valley, California, as
more fully described therein.

     B. HF Logistics I, LLC has assigned all of its right, title and interest as landlord under the
Lease to Landlord, and Landlord has assumed the obligations of HF Logistics I, LLC, as landlord
under the Lease.

     C. The parties desire to further amend the Lease.

     NOW, THEREFORE, for a good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

     1. The definition “Premises” as defined on page 1 of the Original Lease and modified in
Section 4 of the First Amendment shall mean:

	 	 	 	“The Building, together with the parking areas, landscaped areas and other
areas consisting of approximately 82.59 acres of land situated at the NWC of
Theodore Street and Eucalyptus Avenue in Moreno Valley (Rancho Belago),
California, as shown on the draft of Parcel Map No. 35629 attached to this
Second Amendment as “Exhibit “A” (Revised)”.”

     For clarification, the approximately 22.37 acres shown on Exhibit “A” (Revised)
attached hereto (which area is identified as Parcel 2), which area comprises the “Expansion Area”,
is not included within the definition of “Premises”.

     Notwithstanding the foregoing, it is agreed that until the recordation of a final parcel map,
the Premises and the Expansion Area have been established by lot line adjustments, and that
accordingly the acreage and dimensions thereof may not be exactly the same as set forth on Exhibit
A (Revised). However, Landlord represents and warrants to Tenant that the acreage and dimensions
thereof will be substantially the same, and that any discrepancies will not materially impact the
rights or obligations of Tenant or Landlord under the Lease.

 

 

     2. The Final Plans (as originally defined in Addendum 2 Paragraph 1 of the Lease) shall be the
Plans and Specifications transmitted by HF Logistics I, LLC to Tenant (by “You Send It”) on January
29, 2010.

     3. Tenant acknowledges that title to the Expansion Area is or will be held by HF Logistics-SKX
T2, LLC, a Delaware limited liability company (“T2”), which is an affiliate of Landlord.
In the event that Tenant timely exercises its right to the Expansion Area pursuant to the Lease, T2
agrees to immediately convey its interest in the Expansion Area to Landlord; provided, however, if
(x) the Premises are encumbered by a deed of trust at the time Tenant exercises its expansion
option and the beneficiary thereunder will not either finance the construction of the Expansion
Building or consent to the Expansion Area being encumbered by a new construction loan (or if the
ownership of the Expansion Area by T1 will otherwise impede obtaining construction financing for
the construction of the Expansion Building), or (y) the Premises have been taken by foreclosure or
a transaction in lieu thereof, then T2 shall retain the Expansion Area, Tenant and T2 shall enter
into a new lease on the same terms and conditions as would have applied to the Expansion Area
pursuant to the Lease, and the Expansion Area shall be deemed removed from the Lease.

     4. Tenant acknowledges that the Base Rent under the Lease is Nine Hundred Thirty-Three
Thousand Eight Hundred Ninety-Four and 44/100 Dollars ($933,894.44) per month, but that it has
prepaid only the amount of Six Hundred Seventy-Nine Thousand Five Hundred Forty Dollars ($679,540).
The differential (being Two Hundred Fifty-Four Thousand Three Hundred Fifty-Four Dollars
($254,354)) shall be paid by Tenant to Landlord no later than the Commencement Date (as defined in
the Lease).

     5. Capitalized terms used in this Second Amendment shall have the same meanings as set forth
in the Lease, unless a different definition is set forth herein.

     6. Except as amended herein, all terms and conditions of the Lease shall remain in full force
and effect.

     IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first above
written.

	 	 	 	 	 	 	 

	“LANDLORD”	 	“TENANT”
	 
	 	 	 	 	 	 
	HF LOGISTICS I, LLC, a Delaware	 	SKECHERS U.S.A., INC., a Delaware
	limited liability company	 	corporation
	 
	 	 	 	 	 	 
	By

	 	/s/ Iddo Benzeevi
	 	By
	 	/s/ David Weinberg
	 

	 	 

Iddo Benzeevi, President and
	 	 	 	 
 David
Weinberg, Chief Operating Officer
	 

	 	Chief Executive Officer
	 	 	 	 

2

 

HF Logistics-SKX T2, LLC, a Delaware limited liability company, hereby joins in the execution of
this Second Amendment to confirm its obligation to be bound by the provisions of the Lease insofar
as they relate to the Expansion Area and Tenant’s expansion option regarding the same.

	 	 	 	 	 	 	 	 	 

	 	 	HF LOGISTICS-SKX T2, LLC, a Delaware
	 	 	limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By: HF LOGISTICS SKX, LLC, a Delaware
	 	 	       limited liability company, its sole
	 	 	       member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	HF LOGISTICS I, LLC, a
	 	 	 	 	 	 	Delaware limited liability
	 	 	 	 	 	 	company, its managing member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By /s/ Iddo Beenzeevi
	 	 	 	 	 	 	 

	 	 	 	 	 	 	Iddo Benzeevi, President and
	 	 	 	 	 	 	Chief Executive Officer
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	SKECHERS R.B., LLC, a
	 	 	 	 	 	 	Delaware limited liability
	 	 	 	 	 	 	company, its managing member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: SKECHERS U.S.A., Inc., a
	 	 	 	 	 	 	       Delaware limited liability
	 	 	 	 	 	 	       company, its sole member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By /s/ David Weinberg
	 	 	 	 	 	 	 

	 	 	 	 	 	 	       David Weinberg, Chief
	 	 	 	 	 	 	       Operating Officer

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EXHIBIT “A”

(REVISED)

SITE PLANexv10w5

Exhibit 10.5

ASSIGNMENT OF LEASE

(SKECHERS LEASE)

     THIS ASSIGNMENT OF LEASE (“Assignment”) is made and entered into this
12th day of April, 2010 (the “Effective Date”) by and between HF LOGISTICS I,
LLC, a Delaware limited liability company (“Assignor”) and HF LOGISTICS-SKX T1, LLC, a
Delaware limited liability company (“Assignee”).

WITNESSETH:

     For valuable consideration, receipt of which is acknowledged, Assignor and Assignee agree
as follows:

     1. Assignment and Assumption.

          (a) Assignor hereby assigns and transfers to Assignee all right, title and interest of
Assignor in, to and under the lease (the “Lease”) described as follows: Lease Agreement
dated September 25, 2007 between Assignor, as landlord, and Skechers U.S.A., Inc., a Delaware
corporation (“Tenant”), as tenant, as amended by that certain Amendment to Lease Agreement
dated December 18, 2009, by and between Assignor and Tenant. The foregoing assignment includes the
transfer by Assignor to Assignee of all rights to prepaid rents (including, without limitation,
operating expenses) under the Lease. It is understood and agreed that the actual transfer of the
prepaid rent and operating expenses (Eight Hundred Ninety-Eight Thousand Two Hundred Eighty-One
Dollars ($898,281)) shall be made by Assignor to Assignee no later than the Commencement Date (as
defined in the Lease).

          (b) Assignee hereby accepts the foregoing assignment, and assumes and agrees to perform all of
the covenants and agreements in the Lease to be performed by the landlord thereunder that arise
from and after the Effective Date.

     2. Assignor Representations. Assignor represents to Assignee as follows:

          (a) It is the sole, lawful owner of the landlord’s interest in the Lease and Assignor has not
sold, assigned, encumbered or transferred any interest in the Lease, or any part thereof, to any
other person or entity.

          (b) To the best of Assignor’s knowledge, the Lease is in full force and effect and neither
Tenant nor Assignor, as landlord, is in default thereunder.

     3. Indemnification. Assignor agrees to indemnify, defend and hold harmless Assignee
from and against any and all claims, liabilities, obligations, losses, causes of action, judgments,
settlements, demands, threats, costs, fines, penalties (including reasonable fees, expenses,
disbursements and investigative costs of attorneys and consultants) arising out of the performance
or nonperformance by Assignor of all duties and obligations of landlord under the Lease arising or
accruing prior to the Effective Date. The foregoing indemnification shall terminate upon the
closing of the “Construction Loan” (as defined in that certain Amended and Restated

 

 

Limited Liability Company Agreement of HF LOGISTICS-SKX, LLC entered into as of April 12,
2010, but effective as of January 30, 2010).

     4. Governing Law. This Assignment shall be governed by and construed in accordance
with the laws of the State of California.

     5. Successors and Assigns. This Assignment shall be binding upon and shall inure to
the benefit of Assignor and Assignee and their respective successors and assigns.

(signature page follows)

2

 

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the Effective
Date.

	 	 	 	 	 

	“ASSIGNOR”	 	“ASSIGNEE”
	 
	 	 	 	 
	HF LOGISTICS I, LLC, a Delaware limited 

liability company	 	HF LOGISTICS-SKX T1, LLC, a

Delaware limited liability company
	 
	 	 	 	 
	By: /s/ Iddo Benzeevi
 
 Iddo
Benzeevi, President and Chief
Executive Officer

	 	By:
	 	HF LOGISTICS-SKX, LLC, a Delaware

limited liability company, its sole

member

	 	 	 	 	 

	 

	 	By:
	 	HF Logistics I, LLC, a Delaware
	 

	 	 	 	limited liability company, its
	 

	 	 	 	managing member

	 	 	 	 	 

	 

	 	By:
	 	/s/ Iddo Benzeevi
	 

	 	 	 	 
	 

	 	 	 	Iddo Benzeevi, President and
	 

	 	 	 	Chief Executive Officer

	 	 	 	 	 

	 

	 	By:
	 	SKECHERS R.B., LLC, a
	 

	 	 	 	Delaware limited liability
	 

	 	 	 	company, its managing member

	 	 	 	 	 

	 

	 	By:
	 	Skechers U.S.A., Inc, a
	 

	 	 	 	Delaware corporation, its
	 

	 	 	 	sole member

	 	 	 	 	 

	 

	 	By:
	 	/s/ David Weinberg
 
 David
Weinberg, Chief
	 

	 	 	 	Operating Officer

3

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