Document:

Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT
AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of April
24, 2006, is by and among COMPRESSION POLYMERS HOLDING CORPORATION, a Delaware
corporation (the “Borrower”), COMPRESSION POLYMER HOLDINGS II
CORPORATION, a Delaware corporation (the “Parent”), those Domestic
Subsidiaries of the Borrower identified as “Guarantors” on the signature pages
hereto (collectively, with the Parent, the “Guarantors”; and
individually, a “Guarantor”), the lenders identified on the signature
pages hereto as the Lenders (the “Lenders”) and WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association, as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H

 

WHEREAS, the
Borrower, the Guarantors, the Lenders and the Administrative Agent have entered
into that certain Second Amended and Restated Credit Agreement dated as of May
10, 2005 (as amended, modified, supplemented or restated from time to time, the
“Credit Agreement”; capitalized terms used but not defined herein shall
have the meanings ascribed thereto in the Credit Agreement);

 

WHEREAS, a
Credit Party or one of its Subsidiaries desires to acquire (the “Acquisition”)
all of the issued and outstanding shares of capital stock of Santana Holdings
Corp., a Delaware corporation (the “Acquired Company”), which is the
sole stockholder of Santana Products, Inc., a Delaware corporation, pursuant to
an Stock Purchase Agreement dated as of April 20, 2006 (the “Acquisition
Agreement”);

 

WHEREAS, in
connection with the Acquisition the Borrower has requested an amendment to the
Credit Agreement in order to permit the consummation of such Acquisition and
the incurrence of certain Indebtedness incurred in connection therewith;

 

WHEREAS,
Section 9.1 of the Credit Agreement permits the Credit Agreement to be amended
from time to time with the written consent of the Required Lenders; and

 

WHEREAS, the
Required Lenders have agreed to such an amendment, subject to the terms and
conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

AMENDMENTS TO CREDIT AGREEMENT

 

1.1          Amendment to
Section 1.1.

 

(a)           Clause
(vi) of the definition of “Permitted Acquisition” in Section 1.1 of the Credit
Agreement shall be replaced in its entirety with the following:

 

“(vi)
the aggregate consideration (including, without limitation, equity
consideration, earn outs or deferred compensation or non-competition
arrangements and the amount of Indebtedness and other liabilities assumed by
the Credit Parties and their Subsidiaries) paid by the Credit Parties and their
Subsidiaries for all acquisitions made during the term of this Agreement (other
than the acquisition by a Credit Party or any of its Subsidiaries of Santana
Holdings, Corp., a Delaware corporation, for aggregate consideration not to exceed
$35,000,000) shall not exceed $25,000,000 and”.

 

(b)           The
first proviso of Section 6.1(e) of the Credit Agreement shall be replaced in
its entirety with the following:

 

 

“provided,
however, that any event that results in any such Indebtedness being held
by a Person other than the Parent or a Subsidiary shall constitute the
incurrence of Indebtedness not constituting permitted indebtedness by the
issuer of such Indebtedness pursuant to this clause (e)”.

 

(c)           Section
6.1(m) of the Credit Agreement shall be replaced in its entirety with the
following:

 

“(m)                         additional Indebtedness (including Acquired
Indebtedness) of the Parent and the Subsidiaries (i) in an aggregate principal
amount not to exceed $30,000,000 from the issuance of Senior Floating Rate
Notes in connection with and the proceeds thereof used for the acquisition by a
Credit Party or one of its Subsidiaries of all of the issued and outstanding
shares of capital stock Santana Holdings, Corp., a Delaware corporation, and
(ii) in an aggregate principal amount not to exceed $20,000,000 at any one time
outstanding.”.

 

ARTICLE
II

CONDITIONS TO EFFECTIVENESS

 

2.1          Closing Conditions.

 

This Amendment shall become effective upon
satisfaction of the following conditions (in form and substance reasonably acceptable
to the Administrative Agent) (the “Effective Date”):

 

(a)           Executed Amendment. Receipt of
the Administrative Agent of a copy of this Amendment duly executed by each of
the Credit Parties and the Required Lenders.

 

(b)           Resolutions. Receipt by the
Administrative Agent of copies of resolutions of the Board of Directors of each
of the Credit Parties approving and adopting this Amendment, the transactions
contemplated herein and authorizing execution and delivery hereof, certified by
a secretary or assistant secretary of such Credit Party to be true and correct
and in force and effect as of the date hereof.

 

(c)           Collateral. The Acquired
Company and its subsidiaries shall have provided the guarantees and pledged the
assets required by Sections 5.10 and 5.12 of the Credit Agreement,
respectively, to the extent compliance therewith is required upon consummation
of the Acquisition.

 

(d)           No Amendment of Acquisition
Agreement; Consummation of Acquisition. The Acquisition Agreement shall not
have been amended or modified in any material respect or any material condition
therein waived without the prior written consent of the Administrative Agent. The
Acquisition and all transactions relating thereto shall have been consummated
(or shall be consummated concurrently with the effectiveness of this Amendment)
in all material respects in accordance with the terms of the Acquisition
Agreement and in compliance with Requirements of Law and regulatory approvals.

 

(e)           Expenses. The Administrative
Agent and the Lenders shall have been reimbursed for all their reasonable and
documented out-of-pocket costs and expenses (including without limitation the
reasonable fees and disbursements of Cahill Gordon & Reindel LLP) incurred
in connection with this Amendment, the Waiver dated April 12, 2006 and the
consummation and administration of the transactions contemplated hereby and
thereby.

 

2

 

ARTICLE
III

MISCELLANEOUS

 

3.1          Amended Terms.
All
references to the Credit Agreement in each of the Credit Documents shall
hereafter mean the Credit Agreement as amended by this Amendment. Except as
specifically amended hereby or otherwise agreed, the Credit Agreement is hereby
ratified and confirmed and shall remain in full force and effect according to
its terms.

 

3.2          Representations
and Warranties of Credit Parties. Each of the Credit Parties represents and warrants
as follows:

 

(a)           It has full power and authority and
the legal right to make, deliver and perform this Amendment and has taken all
necessary corporate action to authorize the execution, delivery and performance
by it of this Amendment.

 

(b)           No Default or Event of Default has
occurred and is continuing under the Credit Agreement.

 

(c)           This Amendment has been duly executed
and delivered by such Person and constitutes such Person’s legal, valid and
binding obligations, enforceable in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

 

(d)           No consent or authorization of,
filing with, notice to or other act by or in respect of, any Governmental Authority
or any other Person is required in connection with the execution, delivery or
performance by such Person of this Amendment.

 

(e)           The representations and warranties
made by the Credit Parties in the Credit Agreement are true and correct in all
material respects (except for those representations and warranties that are
already qualified by materiality, in which case such representations and
warranties will be correct in all respects as set forth therein) on and as of
the Effective Date as if made on and as of the Effective Date, unless expressly
stated to relate to a specific date, in which case such representations and
warranties shall be true in correct in all material respects as of such
specific date.

 

3.3          Acknowledgment of
Guarantors. The Guarantors acknowledge and consent to all of the terms
and conditions of this Amendment and agree that this Amendment and all
documents executed in connection herewith do not operate to reduce or discharge
the Guarantors’ obligations under the Credit Documents.

 

3.4          Credit Document.
This
Amendment shall constitute a Credit Document under the terms of the Credit
Agreement.

 

3.5          Entirety. This Amendment and the
other Credit Documents embody the entire agreement between the parties hereto
and supersede all prior agreements and understandings, oral or written, if any,
relating to the subject matter hereof.

 

3.6          Counterparts;
Facsimile. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed counterpart to this Amendment by facsimile
shall be effective as an original and shall constitute a representation that an
original will be delivered. A set of the copies of this Agreement signed by all
the parties shall be lodged with the Borrower and the Administrative Agent.

 

3

 

3.7          General Release.
In
consideration of the Required Lenders entering into this Amendment, the Credit
Parties hereby release the Administrative Agent, the Lenders, and the
Administrative Agent’s and the Lenders’ respective officers, employees,
representatives, agents, counsel and directors (the “Lender Parties”) from any and all actions, causes of action, claims,
demands, damages and liabilities of whatever kind or nature, in law or in
equity, now known or unknown, suspected or unsuspected to the extent that any
of the foregoing arises from any action or failure to act under the Credit
Agreement on or prior to the date hereof,
provided that the foregoing release will not apply to the extent that any
action, claim, demand, damages or liability arises from the willful misconduct
or gross negligence of any Lender Party.

 

3.8          GOVERNING LAW.
THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAWS PRINCIPLES THEREOF WHICH WOULD REQUIRE THE APPLICATION OF LAWS OF ANOTHER
STATE.

 

3.9          Consent to
Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, services
of process and waiver of jury trial provisions set forth in Sections 9.14
and 9.17 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signature
pages follow]

 

4

 

IN WITNESS WHEREOF the Borrower and the Required Lenders have caused
this Amendment to be duly executed on the date first above written.

 

 

	
  BORROWER:

  	
  COMPRESSION
  POLYMERS HOLDING

  
	
   

  	
  CORPORATION,

  	
   

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
      Chief Financial Officer

  	
   

  
						

 

 

	
  PARENT:

  	
  COMPRESSION
  POLYMERS HOLDING II CORPORATION,

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
      Chief Financial Officer

  	
   

  
						

 

 

	
  GUARANTORS:

  	
  CPCAPITOL ACQUISITION CORP.,

  	
   

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
      Chief Financial Officer

  	
   

  

 

 

	
   

  	
  COMPRESSION
  POLYMERS CORP.,

  	
   

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
      Chief Financial Officer

  	
   

  

 

 

	
   

  	
  VYCOM CORP.,

  	
   

  
	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
      Chief Financial Officer

  	
   

  

 

[Signature
page — First Amendment to Credit Agreement]

 

 

	
   

  	
  CPH SUB I CORPORATION

  	
   

  

 

 

	
   

  	
  CPH SUB II CORPORATION

  	
   

  

 

 

	
   

  	
  CPC SUB I CORPORATION

  	
   

  

 

 

	
   

  	
  VC SUB I CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ SHIVANANDAN A. DALVIE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Shivanandan A. Dalvie

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President, Assistant Secretary

       and Treasurer

  	
   

  

 

[Signature
page — First Amendment to Credit Agreement]

 

 

	
  ADMINISTRATIVE
  AGENT

  	
   

  
	
  AND
  LENDER:

  	
  WACHOVIA
  BANK, NATIONAL

  
	
   

  	
  ASSOCIATION, as Administrative Agent and

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LEANNE S. PHILLIPS

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Leanne S. Phillips

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  

 

 

	
  LENDER:

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ EDWARD N. PARKES IV

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edward N. Parkes IV

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Duly

       Authorized Secretary

  	
   

  

 

[Signature
page — First Amendment to Credit Agreement]Exhibit
10.3

 

 

AMENDED
AND RESTATED INDUSTRIAL LEASE

 

BETWEEN

 

NORTH
KEYSER PARTNERS, LLC

 

AND

 

VYCOM
CORP.

 

DATED:  May 12, 2005

 

 

AMENDED AND RESTATED
INDUSTRIAL LEASE

 

This Amended and Restated
Industrial Lease (this “Lease”) is
made as of May 10, 2005 and entered into between North Keyser Partners, LLC (“Lessor”), a Delaware limited liability
company, and Vycom Corp. (“Lessee”),
a Delaware corporation.

 

WHEREAS, Lessor and Lessee entered into that certain
Industrial Lease, dated December 27, 2004 (the “Original Lease”), for that certain Premises (as defined below)
located at 888 North Keyser Avenue, Scranton, Lackawanna County, Pennsylvania;

 

WHEREAS, Compression Polymers Holdings LLC (“CPH”), an affiliate of Lessor, and
Compression Polymers Holding II LP (“Purchaser”)
have entered into that certain Stock Purchase Agreement, dated as of March 12,
2005 (the “Stock Purchase Agreement”)
by and among CPH, Purchaser, Lessee and Compression Polymers Corp., a Delaware
corporation;

 

WHEREAS, it is a condition to the consummation of the
transactions contemplated by the Stock Purchase Agreement that Lessor has
agreed to amend, modify, and restate the Original Lease in its entirety;

 

WHEREAS, the members of Lessor are also members,
directly or indirectly, of CPH, and thus, will derive a direct benefit from the
consummation of the transactions contemplated by the Stock Purchase Agreement;
and

 

WHEREAS, Lessor and Lessee desire to amend, modify,
and restate the Original Lease in its entirety.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth in this Lease, and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the
parties hereto mutually covenant and agree that the entire Original Lease shall
be amended, modified and restated as follows:

 

ARTICLE
1

PREMISES; TERM AND ORIGINAL LEASE

 

Section 1.1.       Premises. Lessor leases to Lessee, and Lessee leases from
Lessor, the real property and improvements situated at 888 North Keyser Avenue,
Scranton, Lackawanna County, Pennsylvania, consisting of a 246,400 square foot
building (the “Building”) located
on approximately 27.28 acres of land (the “Land”),
and more particularly described in Exhibit A attached to the Lease. The
Building and the Land are collectively referred to herein as the “Premises”.

 

Section 1.2.       Term
of Lease. The initial term (“Initial Term”)
of this Lease shall commence on May 10, 2005 and shall continue until May 10,
2009, unless sooner terminated as provided in this Lease.

 

1

 

Section 1.3.       Option
to Extend Term. Lessee has the right to extend this Lease beyond the
expiration date of the Initial Term provided in Section 1.2 on the following
terms and conditions:

 

(a)  Upon expiration of the Initial Term, Lessee
may extend the term of this Lease for five (5) more additional four (4) year
terms (each an “Extended Term”),
with each Extended Term to begin on the day following the expiration date of
the previous Term (as defined below). The meaning of “Term” as used herein shall mean the Initial
Term and any Extended Term, if applicable. However, if at the date of
expiration of the Initial Term or any Extended Term, Lessee is in default
beyond any grace period provided in this Lease in the performance of any of the
terms or provisions of this Lease, Lessee’s exercise of the option to extend
the term of this Lease shall be null and void. All of the terms, covenants, and
provisions of this Lease shall apply to the Extended Term except that the Fixed
Rent (as defined below) for such Extended Term shall be adjusted as set forth
in Section 2.1 hereof.

 

(b)  Lessee may exercise the option to extend this
Lease for any Extended Term by giving to Lessor notice of its intention to do
so not later than one hundred and eighty (180) days prior to the expiration of
the Initial Term or the applicable Extended Term. To constitute effective
notice of an intention to exercise any option to extend this Lease, the notice
must be sent by certified or registered mail or nationally recognized overnight
courier to Lessor at the address and in accordance with the procedures provided
in Section 16.1 of this Lease and must be postmarked no later than the date
provided in this Section 1.3(b)  for
Lessee’s exercise of the option.

 

(c)  “Lease Year”,
as used herein, shall mean the twelve (12) month period beginning April 1 and
ending March 31 of the subsequent year, provided
that for purposes of Section 2.1, the first Lease Year shall end on March 31,
2006 and any subsequent Lease Year shall end on the corresponding date in any
of the following years.

 

Section 1.4.       Holdover.
If Lessee holds over and wrongfully continues in possession of the Premises
after expiration of the Term of this Lease without the permission of Lessor,
other than as provided in Section 1.3, Lessee will be deemed to be
occupying the Premises at sufferance on a month-to-month tenancy, without
limitation on any of Lessor’s rights or remedies thereunder subject to all of
the terms and conditions of this Lease except that the Fixed Rent and
Additional Rent (each as defined below) shall be increased to twice the Fixed
Rent and Additional Rent payable for the last month of the Term of this Lease
prior to the holdover.

 

Section 1.5.       Original
Lease. Lessor hereby waives any noncompliance or any breach by Lessee of
any of its obligations, agreements or covenants under the Original Lease.

 

ARTICLE
2

 

RENT

 

Section 2.1.       Fixed
Rent.  Lessee agrees to pay to Lessor
the sum of $492,800.00 per annum in monthly installments of $41,066.66 on the
first day of each month as 

 

2

 

a fixed rent for the succeeding month (“Fixed Rent”); provided that Fixed Rent in the first Lease Year
shall be prorated on a per diem basis to the extent such Lease Year is not a
full calendar year. Rent for any fractional month at the beginning or end of
the Term shall be prorated on a per diem basis. The Fixed Rent will increase by
one percent (1%) beginning with the second Lease Year and each Lease Year thereafter
during the Initial Term and any Extended Term, if applicable. For example, the
Fixed Rent for the second Lease Year shall be $497,728.00 per annum payable in
monthly installments of $41,477.33; for the third Lease Year $502,705.28 per
annum, payable in monthly installments of $41,892.10 and so forth during the
remainder of the Initial Term and any Extended Term, if applicable. Lessee
agrees to pay the Fixed Rent to Lessor at Lessor’s office, located at 801 Corey
Street, Moosic, Pennsylvania 18507, or at such other location or locations as
Lessor shall from time to time designate by written notice to Lessee.

 

Section 2.2.       Taxes
and Assessments as Additional Rent.

 

(a)  In addition
to the Fixed Rent specified in Section 2.1, Lessee shall pay as additional rent
(“Additional Rent”) hereunder:
(i) the full amount of all real property and personal property taxes,
water and sewer charges, special assessments of any kind or nature whatsoever
and all other public charges levied upon or assessed against the Premises or
any portion thereof, or on the Building or improvements now or hereafter
located thereon, or arising by reason of occupancy, use or possession thereof
and any taxes on rent now or hereafter in force and any other similar charges
now or hereafter in effect, whether or not such charges or any of them are or
may become a lien on the Premises (collectively, the “Taxes”); (ii) all premiums on the insurance
policies referred to in Article 8; and (iii) all sums which may become due
by reason of the failure of Lessee to comply with any of the terms, covenants
and conditions of this Lease to be kept and observed by Lessee. The Additional
Rent shall be payable directly to the entity imposing the tax, assessment, or
charge at least fifteen (15) days prior to the date on which the payment is due.
Upon request by Lessor, Lessee shall provide Lessor with a receipt or other
evidence of payment for each such tax, assessment, or charge paid as soon as a
receipt or other evidence is available to Lessee.

 

(b)  Lessee may, at its own expenses, contest any
tax or assessment for which Lessee is responsible under Section 2.2(a). Except
as provided in Section 2.2(c), Lessee need not pay the tax, assessment, or
charge during the pendency of the contest. Except as provided in Section
2.2(c), Lessee may prevent Lessor from paying any tax, assessment or charge
that Lessee is contesting under this Section 2.2(b) pending resolution of the
contest, by depositing with Lessor the full amount of the tax or assessment,
plus the amount of any penalty that might be imposed for failure to make timely
payment. On final resolution of the tax assessment contest, Lessee may use the
money deposited with Lessor to pay any tax or assessment, plus any penalty or
interest, due under the final resolution, and keep the balance of the deposit,
if any. If the deposit is insufficient to pay these amounts, Lessee must
immediately pay the balance due to the entity imposing the tax, assessment or
charge.

 

(c)  The provisions of Section 2.2(b)
notwithstanding, Lessor may pay, or require Lessee to pay, any tax, assessment,
or charge for which Lessee is responsible under Section 2.2(a), pending
resolution of Lessee’s contest of the tax, assessment, or charge, if 

 

3

 

payment
is demanded by a holder of a Mortgage (as defined below) on the Premises or if
failure to pay will subject all or part of the Premises to forfeiture or loss.

 

Section 2.3.       Lessee’s
Costs. Notwithstanding anything in this Lease to the contrary, to the
extent Lessee suffers a Loss (as defined below) for which Lessor has agreed to
indemnify any Indemnified Party (as defined below) pursuant to this Lease,
Lessee may set-off any such Loss against the Fixed Rent or Additional Rent that
is otherwise owed by Lessee to Lessor.

 

ARTICLE
3

USE OF PREMISES

 

Section 3.1.       Permitted
Use. Lessee may use the Premises to operate and conduct a plastic
manufacturing business and for any other purposes permitted under the
applicable Zoning Ordinance of the City of Scranton, Pennsylvania, but in any
event only in compliance with such ordinance and any applicable laws, rules,
regulations, statutes and applicable ordinances now or hereafter in effect. Lessee
may not use the Premises for any other purpose without the prior written
consent of Lessor which consent may be withheld for any reason or no reason, in
the sole discretion of Lessor.

 

Section 3.2.       Waste,
Nuisance, or Illegal Uses. Lessee shall not use or permit the use of the
Premises in any manner that results in waste of the Premises or constitutes a
nuisance or violates any statute, ordinance, rule or regulation applicable to
the Premises or for any illegal purpose. Except with respect to costs in
connection with Lessor’s obligations provided in Article 9, Lessee, at its sole
cost, shall use commercially reasonable efforts to comply and cause its
officers, employees, agents and invitees to comply with all applicable laws,
ordinances, rules or regulations or any other requirements of any governmental
entity or any duly constituted public authority having jurisdiction over the
Premises or the use of the Premises, including, without limitation, the
provisions of the Americans with Disabilities Act and Environmental Laws (as
defined below).

 

ARTICLE
4

 

REPAIRS
AND ALTERATIONS

 

Section 4.1.       Prior
Inspection by Lessee. Lessee acknowledges and agrees that Lessee is fully
familiar with and has fully inspected the Premises, and has fully apprised
itself (or waived its right to do so) about the physical condition thereof, the
topography and possible presence of swamp, ponds, wetlands, flood plains or
steep slopes on the Premises, or ground water or subsurface conditions under or
near the Premises, the availability or unavailability of access to the
Premises, the availability or unavailability of public water and sewer or other
utility services to the Premises, the zoning, subdivision and other
requirements applicable to the Premises, any environmental matters affecting
the Premise including, but not limited to, the presence or absence of any
asbestos containing materials, gasoline storage tanks, toxic waste or hazardous
substances in, on, under, or in any manner affecting the Premises, the
discharge of any hazardous substances under, onto or from the Premises, and
that, subject to Article 9, the 

 

4

 

Premises is being leased in its “as is” “where is” condition without
any representation by or on behalf of Lessor concerning the Premises, any
surrounding properties or any quality thereof.

 

Section 4.2.       Repairs.
Except as otherwise set forth in this Lease, Lessee shall, throughout the Term
of this Lease, at its own expense and risk, maintain the Premises in good order
and condition, including but not limited to, making all repairs and replacements,
renewals and additions, interior and exterior, structural and non-structural,
ordinary and extraordinary, foreseen and unforeseen, necessary to keep and
maintain the Premises and all systems, equipment and apparatus appurtenant
thereto or used in connection therewith and improvements in working order and
condition. All maintenance, repairs and replacements required by this Section
4.2 will be performed reasonably promptly and in good and workmanlike manner. Lessee
shall return the Premises to Lessor in at least as good order and condition at
the expiration of the Term hereof as existed on the date hereof, ordinary wear
and tear excepted.

 

Section 4.3.       Failure
of Lessee to Repair. In the event Lessee fails to perform its obligation to
repair, replace, or maintain as set forth in Section 4.2, within a reasonable
time after notice from Lessor of the need for such repair, replacement, or
maintenance, Lessor may enter the Premises and make such repairs or
replacements, or perform such maintenance or cause such repairs or replacements
to be made or maintenance to be performed, at its own expense. Upon Lessor’s
notice to Lessee of the performance and cost of any maintenance, repairs, or
replacements, Lessee shall promptly reimburse Lessor for any reasonable costs
actually incurred by Lessor in connection with such maintenance, repairs or
replacements.

 

Section 4.4.       Environmental
Costs; Other Costs. Notwithstanding the foregoing, Lessor shall be
responsible for all costs and expenses in connection with the performance of
Lessor’s obligations provided in Article 9.

 

Section 4.5.       Alterations.

 

(a)  Except as
otherwise provided in this Lease, Lessee shall not demolish the Building or
make any alterations, additions or improvements (collectively, “Alterations”) to the Building or the
Premises without the prior written consent of Lessor (other than non-structural
and/or emergency Alterations) which consent shall not be unreasonably withheld,
conditioned or delayed and if Lessor does not respond to a request for consent
within thirty (30) days after receipt of such request, Lessor shall be deemed
to have consented to the Alterations. Consent for non-structural Alterations
shall not be required provided, (i) such non-structural Alterations shall not
materially and adversely affect the structural soundness of the Premises or
materially reduce the value of the Building or other improvements on the
Premises, and (ii) the aggregate cost of all such additions, alterations
or improvements does not exceed the sum of $100,000. Lessor hereby consents to
the Contemplated Construction and Renovation Activities (as defined below)
currently contemplated or initiated within one year of the date of this Lease.

 

(b)  Lessor hereby acknowledges and agrees that
Lessee shall have no obligation to remove any of the equipment or machinery
located in, on or under the Premises at the expiration or earlier termination
of the Lease. Lessee shall have no obligation to restore the Premises, and any
Alterations made by Lessee that are existing in the Premises on the last day of
the Term shall become the property of Lessor at the termination of the Lease.

 

5

 

(c)  Lessee shall, before making any Alterations,
at its expense, obtain all permits, approvals and certificates required by any
governmental or quasi-governmental bodies and (upon completion) certificates of
final approval thereof and shall deliver promptly duplicates of all such
permits, approvals and certificates to Lessor. Lessee agrees to carry, and to
cause Lessee’s contractors and sub-contractors to carry such workmen’s
compensation insurance and general liability insurance with limits of at least
$5,000,000 single limit for injury to any one person or injuries in any one
occurrence and property damage of $1,000,000. In addition, Lessor, at its
option, may in any case in which its consent is required pursuant to Section
4.5(a), require Lessee to furnish Lessor with copies of the applicable plans
and specifications and any relevant contract between Lessee and any contractor.
Lessor may also require, at its option and as a condition precedent to giving
any approval to an Alteration with a cost exceeding $1,000,000, (i) a
performance bond and a labor and material payment bond, both in form and substance
satisfactory to Lessor, given by an independent financially responsible
corporate surety, to assure completion of the work in accordance with the plans
and specifications, free of liens, and (ii) evidence that each contractor has
adequate workmen’s compensation insurance and general liability insurance as
described above, together with a certificate from the insurer to the effect
that such insurance may not be canceled or substantially modified without at
least thirty (30) days prior written notice to Lessor.

 

ARTICLE
5

 

UTILITIES AND
REFUSE REMOVAL

 

Section 5.1.       Utility
Charges. Lessee shall pay all utility charges for water, electricity, heat,
gas, steam, telephone or other services or utility used in and about the
Premises during the Term. Lessee shall pay all such charges directly to the
utility company, municipality or third party furnishing the service, before the
charges shall become delinquent. Under no circumstances shall Lessor be
required to furnish any utilities or any other services of any kind to the
Premises or any part thereof.

 

Section
5.2.   Refuse Removal. Lessee
shall be responsible for and shall pay for the removal of all refuse and
rubbish from the Premises during the Term of the Lease.

 

ARTICLE
6

 

TRADE FIXTURES AND
SIGNS

 

Section 6.1.       Trade
Fixtures. Lessee has the right at all times to erect or install shelves,
bins, machinery, equipment, or other trade fixtures in, on, or about the
Premises, provided that Lessee complies with applicable governmental laws,
ordinances and regulations regarding such fixtures including, without
limitation, the American with Disabilities Act. Lessee has the right to remove
all trade fixtures at the termination of this Lease, provided Lessee is not in
default under the Lease and that the fixtures can be removed without structural
damage to the building. Lessee must repair and restore any damage or injury to
the Building, structures and improvements now or hereafter erected on the
Premises caused by installation or removal of trade fixtures, and all such repairs
must be completed prior to the termination of the Lease. Any 

 

6

 

trade fixtures that have not been removed by Lessee at the termination
of the Lease shall be deemed abandoned by the Lessee and shall automatically
become the property of Lessor.

 

Section 6.2.       Signs.
Lessee shall have the right to erect signs on any portion of the Premises,
including but not limited to, the exterior walls of the Building or any other
structure on the Premises but only subject to, and in accordance with, all
applicable laws, ordinances, rules and regulations. Lessee, at its sole cost,
shall remove all signs at the termination of this Lease and repair any damage
or injury resulting from the erection or removal of the signs.

 

ARTICLE
7

 

MECHANICS’ LIEN

 

Section 7.1.       Mechanics’
Lien. Lessee shall not suffer or permit any mechanics’, laborers’ or
materialmen’s liens to be recorded or filed against the Premises or any part
thereof or against the interests therein of Lessee or Lessor as a result of any
work performed by or on behalf of Lessee. If any such lien shall at any time be
recorded or filed against the Premises or any such interest therein, Lessee
shall cause the same to be discharged of record within sixty (60) days after
Lessee receives notice of the recording or filing of the same, by either
payment, deposit or bond. Notwithstanding the foregoing, Lessee shall have the
right, after notice to Lessor, to contest by appropriate legal proceedings,
diligently conducted in good faith, the amount or validity of any such
mechanics’ or other lien filed against the Premises.

 

ARTICLE
8

INSURANCE

 

Section 8.1.    Property
Insurance. Lessee shall at its own expense, during the Term, keep the
Buildings and all improvements on the Premises insured against loss or damage
by fire or theft, and such other hazards, casualties and contingencies as are
usually covered by the broadest form of extended coverage policy available in
the area, boiler insurance (if appropriate), loss by windstorm, hail,
explosion, flood or riot, and such other insurance as may be reasonably
specified by Lessor from time to time. The fire and extended coverage insurance
shall be in the amount of the full insurable value of the Premises, without
deduction for depreciation, and the boiler insurance and other insurance, if
any, shall be in such amounts as Lessor may reasonably require. The insurance
is to be carried by one or more insurance companies licensed to do business in
Pennsylvania. Such policy or policies of insurance shall name both Lessor and
Lessee and, where appropriate, the holder of any Mortgage on the Premises, as
named insureds as their interests may appear and/or Mortgage payee. The
policies shall provide that any proceeds for loss or damage to Building or to
improvements shall be payable solely to Lessor, which sum Lessor shall use for
repair and restoration purposes as provided for herein.

 

Section 8.2.    Liability Insurance.
Lessee, at its own expense, shall provide and maintain in force during the term
of this Lease, comprehensive general liability insurance protecting Lessor and
Lessee against or damage to any person or property occurring in, on or about
the Premises or any sidewalks, driveways or other areas appurtenant to the
Premises. 

 

7

 

Such insurance shall be in the amount of at least $5,000,000.00, single
limit for injury to any one person, or injuries in any once occurrence and
$1,000,000.00 for property damage. Such policies shall name Lessor and Lessee
as insureds. This insurance is to be carried by one or more insurance companies
authorized to do business in Pennsylvania.

 

Section 8.3.    Remedy for Failure to Provide
Insurance. Lessee shall furnish Lessor with certificates
of all insurance required by this Article 8. If Lessee does not provide such
certificates or if Lessee allows any insurance required under this Article 8 to
lapse, Lessor may, at its option, take out and pay the premiums on the
necessary insurance to comply with Lessee’s obligations under the provisions of
this Article 8. Lessor is entitled to reimbursement from Lessee for all amounts
spent by it to procure and maintain such insurance.

 

Section 8.4.    Hold-Harmless.
Except with respect to costs in connection with Lessor’s obligations provided
in Article 9 or as otherwise provided in this Lease, Lessor shall not be
responsible for and is hereby relieved from all liability for any damage,
expense, cause of action, suits, demands, judgments, and claims of any nature
whatsoever, arising from or by reason of any injury to any person or persons or
any damage to any property which may arise from the negligence of Lessee or its
agents, servants or employees, or from present or future structural defects or
other conditions in, on or about the Premises or any part thereof or any
sidewalks, streets, driveways, railroad sidings, rights of way or roadways
adjacent thereto, or in any manner growing out of or connected with the use and
occupancy of the Premises or any part thereof by Lessee or any other party
during the Term. Subject to Article 9, Lessee accepts and assumes such
liability and agrees to protect, indemnify and hold Lessor harmless against any
and all such claims, demands, damages, costs, and expenses, including
reasonable attorneys’ fees for the defense of such claims and demands arising
from the conduct or management of Lessee’s business on the Premises, or its use
of the Premises or from any breach on the part of Lessee of any conditions of
this Lease, or from any act or negligence of Lessee, its agents, contractors,
employees, sublessees, concessionaires, or licensees in or about the Premises.
In case of any action or proceeding brought against Lessor by reason of any
such claim, Lessee, on notice from Lessor, agrees to defend the action or
proceeding. This shall not be construed as in any way limiting Lessee’s
obligations under this Lease.

 

Section 8.5        Additional Insurance. 

 

(a)  Lessee shall not take out separate insurance
concurrent in form or contributing, in the event of loss, with that required to
be furnished by Lessee pursuant to this Article 8, nor shall Lessee increase
the amounts of any then existing increase by securing an additional policy or
additional policies, without in either instance including Lessor as an insured
party.

 

(b)  The insurance policies referred to in
Sections 8.1 and 8.2 above shall be underwritten by insurance companies with
Best’s “A-” rating or better. Lessee shall deliver to Lessor certificates of
all insurance policies on or before the first day of the term hereof and
thereafter twenty days prior to the expiration of any such policy. At the
request of Lessor, Lessee shall also deliver to Lessor receipts evidencing
payment of all insurance premiums, which delivery shall be at least ten (10)
days prior to the date such premiums are due.

 

8

 

(c)  Lessor and Lessee shall each include in each
of its insurance policies a waiver of the insurer’s right of subrogation
against the other party during the Term or, if such waiver should be
unobtainable or unenforceable, (a) an express agreement that such policy shall
not be invalidated if the assured waives the right of recovery against any
party responsible for a casualty covered by the policy before the casualty or
(b) any other form of permission for the release of the other party. Each party
hereby releases the other party with respect to any claim (including a claim
for negligence) which it might otherwise have against the other party for loss,
damage or destruction with respect to is property occurring during the Term to
the extent to which it is, or is required to be, insured under a policy or
policies containing a waiver of subrogation or permission to release liability.
Nothing contained in this Section 8.5(c) shall be deemed to relieve either
party of any duty imposed elsewhere in this Lease to repair, restore or rebuild
or to nullify any abatement of rents provided for elsewhere in this Lease.

 

ARTICLE
9

 

INDEMNIFICATION

 

Section 9.1  Definitions.  For the purposes of this Lease, the following
terms shall have the meanings indicated:

 

“Contemplated Construction and Renovation Activities”
means any construction or renovation activities at the Premises conducted on or
after commencement of Lessee’s occupancy of the Premises in connection with
preparation of the Premises for operation as Lessee’s manufacturing facility,
including without limitation the construction or installation of silos; mixers;
heating, cooling and production equipment; roads; and a rail spur.

 

“Environmental Condition” means any
condition at, on, under, within, or migrating onto or from the Premises, in
each case arising out of any Environmental Matter that results in any Loss.

 

“Environmental Laws” means any federal,
state or local law, statute, ordinance, rule or regulation governing
Environmental Matters, including any common law cause of action providing any
right or remedy relating to Environmental Matters, and all applicable judicial
and administrative decisions, orders, and decrees relating to Environmental
Matters.

 

“Environmental Matter” means any matter
arising out of, relating to, or resulting from pollution, contamination,
protection of the environment, protection of human health from environmental
hazards, protection of health or safety of employees, and any matters relating
to emissions, discharges, disseminations, releases or threatened releases, of
hazardous materials, substances or wastes into the workplace, air, surface
water, groundwater, soil, land surface or subsurface, or real property or
otherwise arising out of, relating to, or resulting from the manufacture,
processing, distribution, use, treatment, storage, disposal, transport,
handling, release or threatened release of hazardous materials, substances or
wastes.

 

“Hazardous Substances” means any and all
hazardous and toxic substances, wastes or materials, any pollutants,
contaminants, or dangerous materials (including, without limitation,
polychlorinated biphenyls, friable asbestos, asbestos-containing materials,
volatile and semi-volatile organic compounds, oil, petroleum or any by-products
or fractions thereof, and any 

 

9

 

materials which include
hazardous constituents or become hazardous, toxic, or dangerous when their
composition or state is changed), or any other similar substances or materials
which are regulated by or form the basis of liability under, any Environmental
Laws.

 

“Losses” shall mean each and all of the
following items to the extent incurred: 
claims, losses, liabilities, damages, investigation, monitoring,
removal, response and cleanup costs, natural resource damages, judgments,
fines, penalties, amounts paid in settlement and reasonable costs and expenses
incurred in connection therewith (including, without limitation, interest which
is imposed in connection therewith, costs and expenses of suits and
proceedings, and reasonable fees and disbursements of counsel).

 

Section 9.2  Indemnification
by Lessor. Lessor shall indemnify and hold harmless Lessee, its respective
officers, directors, shareholders, successors and permitted transferees and
assigns from and against any and all Losses to the extent relating to (a)
implementation, whether by Keyser Properties, Inc. or Keyser Partners, LLC, of
any requirements of that certain Consent Order and Agreement, In the matter of
Buyer-Seller Agreement re 888 North Keyser Avenue, Scranton, Pennsylvania, by
and among the Commonwealth of Pennsylvania Department of Environmental
Protection (“PDEP”), Keyser
Properties, Inc., and North Keyser Partners, LLC, dated December 27, 2004 (the “PDEP Consent Order”), and any other actions
required to demonstrate compliance with the environmental remediation standards
established in the Land Recycling and Environmental Remediation Standards Act (“Act 2”), 35 P.S. § § 6026.101 et
seq. with respect to any of the conditions of contamination giving rise
to the PDEP Consent Order; (b) any other Environmental Condition, whether known
or unknown, existing or occurring on or prior to the date hereof (including
without limitation any Environmental Condition discovered following the date
hereof in connection with any Contemplated Construction and Renovation
Activities as to which until eight months following the date hereof there will
be a rebuttable presumption that any such Environmental Condition was existing
or occurring on or prior to the date hereof); (c) any third-party claims
relating to the transportation, use, or disposal of, or arranging for the
disposal of, any Hazardous Substances from the Premises at any off-site
location (“Off-site Claims”) (i)
on or prior to the date hereof or (ii) in connection with any Contemplated
Construction and Renovation Activities currently contemplated or initiated
within one year of the date of this Lease; and/or (d) any interference with, or
delay in, the PDEP Consent Order or any Contemplated Construction and
Renovation Activities currently contemplated or initiated within one year of
the date of this Lease, including without limitation all damages (excluding lost
profits) caused by any interference with, or delay in, any such Contemplated
Construction and Renovation Activities resulting from any requirement to obtain
any PDEP approvals associated therewith provided that Lessee agrees to
undertake commercially reasonable efforts to mitigate damages in connection
with completing such construction and renovation activities.

 

Section 9.3     Environmental
Indemnification by Lessee. Lessee shall indemnify and hold harmless Lessor
from and against any and all Losses to the extent relating to any Environmental
Conditions caused or occurring after the date hereof, including any Off-Site
Claims relating thereto; provided, however,
that the foregoing excludes (a) any matters indemnified pursuant to Section 9.2
or (b) any Environmental Conditions caused by Lessor, Keyser Properties, Inc.
or their employees or agents.

 

10

 

Section 9.4.  Procedures.
(a)  The procedures set forth in this
Section 9.4 shall govern the indemnification obligations set forth in Article 9
hereof.

 

(b)           The party bearing the greater proportion
of the liability with respect to any matter covered by the indemnifications
contained in this Amendment (the “Principal
Indemnitor”) shall undertake and exercise control over any
environmental investigatory, corrective or remedial action with respect to any
claim for indemnification under this Amendment by a party indemnified hereunder
(the “Indemnified Party”),
including any related negotiations or settlements with governmental authorities
or third parties (“Principal Management”);
provided, that the Indemnified
Party shall be entitled to participate fully in the defense of any such action,
including commenting on any submission to any governmental authority and
attending any meeting with any third party. No Indemnified Party shall have any
right to indemnification hereunder with respect to any environmental
investigatory, corrective or remedial action except to the extent such action
is required (A) for purposes of compliance with the PDEP Consent Order; or (B)
either (i) lawfully required by any governmental authority, or
(ii) required by any Environmental Laws and then only to the extent of any
such action, approved by the Principal Indemnitor, such approval not to be unreasonably
withheld or delayed, reasonably necessary to attain compliance in a cost
effective manner with Environmental Laws assuming the same use of the subject
property as currently in effect and employing risk based standards and
institutional controls, if appropriate and available. Notwithstanding the
foregoing, with respect to matters as to which Lessor is the Principal
Indemnitor (including without limitation the ongoing investigation and
remediation of the Premises under the direction of the PDEP), Lessor and, at
Lessor’s option, North Keyser Properties, Inc., shall have the right to
exercise Principal Management, which shall include the right to reasonable
access to the Premises for purposes of completing environmental investigation
and remediation, except that such parties shall, in exercising Principal
Management, not unreasonably interfere with any Contemplated Construction and
Renovation Activities or Lessee’s ongoing business use of the Premises.

 

(c)           When any Indemnified Party receives
notice of any claims made by third parties or has any other claim for
indemnification under this Article 9 (collectively, “Claims”), such Indemnified Party shall give prompt written
notice thereof to the other party reasonably indicating (to the extent known)
the nature of such Claims, the basis thereof and, if reasonably practicable,
the estimated amount of potential Losses associated with such Claim; provided,
however, that the failure of such Indemnified Party to give prompt notice as
provided herein shall not relieve the other party of any of its obligations
hereunder unless and only to the extent that such other party shall have been
materially prejudiced thereby.

 

Section 9.5. Transferability of PDEP Consent Order.
Lessor hereby covenants and agrees to use its reasonable best efforts to
request that PDEP additionally extend any liability protection conferred on
Lessor pursuant to the PDEP Consent Order to Lessee (while maintaining the
liability protection already conferred on Lessor) as soon as reasonably practicable.

 

Section 9.6. Survival. Each of the covenants,
agreements, obligations, representations and warranties and indemnities set
forth in this Article 9 shall survive the expiration or earlier termination of
this Lease; provided, however, that at such time the Option 

 

11

 

Agreement is exercised, Sections 9.2(b), (c) and (d) shall expire
unless an Claim has been made with respect thereto, in which case such Claim
shall survive until resolution.

 

ARTICLE
10

DAMAGE OR DESTRUCTION OF PREMISES

 

Section 10.1.     Notice
of Lessor. If the Building or the Premises, or any structures or
improvements on the Premises, should be damaged or destroyed by fire, flood or
other casualty (each a “Casualty”),
Lessee shall give immediate written notice of the damage and, as far as known
to Lessee, the cause of the damage.

 

Section 10.2.     Repair
by Lessor. Except as provided in this Article 10, in case of damage to the
Premises from a Casualty, Lessee, with reasonable dispatch (but Lessee shall
not be required to perform the same on an overtime or premium pay basis) after
the collection and to the extent of the insurance proceeds so collected which
are attributable to such Casualty, shall rebuild and restore the Premises to
the condition which existed immediately prior to such Casualty. A Casualty
shall not cause an abatement of rent or in any other way affect the respective
obligations of Lessor and Lessee hereunder. Notwithstanding the foregoing, if by reason of a Casualty (i) the Premises
shall be totally damaged or destroyed, (ii) the Premises shall be so damaged or
destroyed that repair or restoration shall require more than 270 days or the
expenditure of more than forty percent (40%) of the full insurable value of the
Building (which, for purposes of this Section 10.2, shall mean replacement cost
less the cost of footings, foundations and other structures below the street
and first floors of the Building) immediately prior to the Casualty or (iii)
more than fifty percent (50%) of the Building shall be damaged or destroyed (as
estimated in any such case by a reputable contractor, architect or engineer
designated by Lessee), then in any such case Lessee may terminate this Lease by
notice given to Lessor within 180 days after the Casualty. If the holder of any Mortgage on the Premises
shall have the right to apply the insurance proceeds which would otherwise be
payable for restoration of the Premises on account of the Mortgage debt and
does in fact so apply such proceeds, then Lessor may, at its option, either (i) make available to Lessee funds equivalent
to such insurance proceeds or (ii) terminate this Lease by written notice given
to Lessee within 30 days after the aforesaid Mortgage debt has been satisfied,
and in any event no later than 90 days after the Casualty. If Lessor shall
elect to terminate this Lease pursuant to this Section 10.2, then such
termination shall be effective as of the last day of the calendar month in
which such termination notice is given.

 

ARTICLE
11

 

CONDEMNATION

 

Section 11.1.  Notice of Condemnation.
In the event the Premises or any part thereof shall be condemned and taken for
a public or a quasi-public use, Lessee will promptly give written notice
thereof to Lessor generally describing the nature and extent of such
condemnation or taking or the nature of such proceedings and negotiations and
the nature and extent of the taking which might result therefrom, as they case
may be. Any award made to 

 

12

 

compensate either Lessor or Lessee for its damage or loss shall be
deposited with Lessor, or with any holder of a Mortgage encumbering the
Premises, if required by said holder.

 

Section 11.2.     Partial Condemnation.
In the event that a portion of the Premises, but less than the entire Premises,
is taken or condemned by eminent domain as aforesaid, Lessor shall have the
right, at its option, to require Lessee to make such repairs as are necessary
to restore the Premises as nearly as possible to the condition they were in immediately
prior to the taking, but only if and to the extent that Lessor shall make
available to Lessee the net proceeds of the condemnation award (which shall be
the total award less the sum of (i) any costs or expenses incurred by Lessor in
collecting the award and (ii) so much of the award as may be allocated to land
value) on the same terms and conditions as contained in hereof with respect to
restoration or repair of the Premises in the event of damage by fire or other
casualty.

 

If the
Building cannot be restored to a complete architectural unit, or if the taking
is so extensive that the Building would not, after restoration, be suitable for
its present use as an industrial facility, the taking shall be considered total
and Section 11.3 below will apply. If the holder of any Mortgage on the
Premises shall apply the award to the principal balance of such Mortgage,
Lessor shall make the election provided in Section 11.3(c) below.

 

Section 11.3.     Abatement of Rent.
In the event of a partial taking rent shall abate equitably in proportion to
the area of the Premises condemned as of the day on which the condemning
authority shall take possession of the condemned property.

 

(a)  In the event the entire Premises are taken or
condemned by any public or quasi-public authority exercising the right of
eminent domain, this Lease shall terminate as of the date of condemning
authority takes possession of the Premises, with the same force and effect as
though such date were the date fixed herein for expiration of the term. The
entire amount of any award for such taking shall belong to Lessor except for
moving and business interruption expenses, if any, awarded directly to Lessee,
and Lessee hereby waives any other right he may have to any portion of such
award.

 

(b)  If the condemning authority should take only
the right to possession for a fixed period of time or for the duration of an
emergency or other temporary condition, then, notwithstanding anything
hereinabove provided, this Lease shall continue in full force and effect
without any abatement of rent, and the amounts payable by condemning authority
with respect to any period of time prior to the expiration or sooner
termination of this Lease shall be paid by Lessor to Lessee out of the amount
of the award and the condemning authority shall be considered a subtenant of
Lessee.

 

(c)  If Lessor and Lessee are unable to agree as
to whether any taking is so substantial as to constitute a total taking for
purposes of this Lease, or as to the amount of abatement of rent after a
partial taking, the matter shall be submitted to arbitration in Lackawanna
County, Pennsylvania in accordance with the rules of the American Arbitration
Association then in force and the decision of the arbitrator shall be final and
binding on both parties.

 

13

 

(d)  In the event of a partial taking, if and to
the extent the condemnation award exceeds the cost of reconstruction (as in the
case of a road widening which requires no reconstruction) such excess shall
belong to Lessor.

 

ARTICLE
12

DEFAULT

 

Section 12.1.     Events
of Default. The following events or any one or more of them shall be an
event of default (each, an “Event of Default”)
under this Lease:

 

(a)  Lessee shall fail to pay any Fixed Rent or
Additional Rent within thirty (30) days after written notice from Lessor that
the same is due and payable; or

 

(b)  Lessee shall fail to perform or comply with
any of the other terms, covenants, agreements or conditions hereof and such
failure shall continue for more than thirty (30) days after written notice
thereof from Lessor, provided if the default cannot be cured within thirty (30)
days, Lessee shall not be considered in default if Lessee shall, within such
period, have commenced with due diligence and dispatch to cure such default,
and shall thereafter complete with due diligence the curing of such default; or

 

(c)  Lessee shall make a general assignment for
the benefit of creditors, or shall admit in writing its inability to pay its
debts as they become due, or shall file a petition in bankruptcy, or shall be
adjudicated a bankrupt or insolvent, or shall file a petition seeking any
reorganization, arrangements, composition readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, or shall file an answer admitting or not contesting the material
allegations of a petition against it in any such proceeding, or shall seek or
consent to or acquiesce in the appointment of any trustee, receiver or liquidator
of Lessee or any material part of its properties; or

 

(d)  If within 60 days after the commencement of
any proceeding against Lessee seeking any reorganization, arrangement,
composition, readjustment, liquidation or dissolution or similar relief under any
present or future statute, law or regulation, such proceeding shall not have
been dismissed, or if, within 60 days after the appointment without the consent
or acquiescence of Lessee, if any trustee, receiver or liquidator of Lessee, or
of any material part of its properties, such appointment shall not have been
vacated.

 

Section 12.2.     Remedies.
In the event of any Event of Default, (regardless of the pendency of any
proceeding which has or might have the effect of preventing Lessee from
complying with the terms of this Lease), Lessor at any time thereafter may
exercise any one or more of the following remedies:

 

(a)  Lessor may terminate this Lease, without any
right by Lessee to reinstate its rights by payment of rent due or other
performance of the terms and conditions hereof. Upon such termination Lessee
shall immediately surrender possession of the Premises to Lessor.

 

(b)  With or without terminating this Lease, as
Lessor may elect, Lessor may re-enter and repossess the Premises, or any part
thereof, and lease them to any other person or entity 

 

14

 

upon
such terms as Lessor shall deem reasonable, for a term within or beyond the
Term of this Lease; provided, that any such reletting prior to termination
shall be for the account of Lessee, and Lessee shall remain liable for (a) all
Fixed Rent, Additional Rent and other sums which would be payable under this
Lease by Lessee in the absence of such expiration, termination or repossession,
less (b) the net proceeds, if any, of any reletting (including, without
limitation, all repossession costs, brokerage commissions, legal expenses,
attorneys’ fees and expenses, employees’ expenses, reasonable alteration costs,
and expenses of preparation for such reletting). If the Premises are at the
time of the Event of Default sublet or leased by Lessee to other tenants,
Lessor may, as Lessee’s agent, collect rents due from any subtenant or other
tenant and apply such rents to the rent and other amounts due hereunder without
in any way affecting Lessee’s obligation to Lessor hereunder. Such agency,
being given for security, is hereby declared to be irrevocable.

 

(c)  Lessor may declare the Fixed Rent and all
Additional Rent for the entire balance of the then current term immediately due
and payable, together with all other charges, payments, costs, and expenses
payable by Lessee as though such amounts were payable in advance on the date
the event of default occurred.

 

No
expiration or termination of this Lease pursuant to this Section 12.2 or by
operation of law or otherwise (except as expressly provided herein), and no
repossession of the Premises or any part thereof pursuant to Section 12.2 or
otherwise shall relieve Lessee of its liabilities and obligations hereunder, all
of which shall survive such expiration, termination or repossession, and Lessor
may, at its option, sue for and collect rent and other charges due hereunder at
any time and from time to time as and when such charges accrue.

 

Section 12.3.     Interest.
Any Fixed Rent or Additional Rent due to Lessor from Lessee overdue for a
period of more than thirty (30) days shall bear interest at the rate of Wall
Street Journal prime plus 5% per annum until unpaid.

 

Section 12.4.     No
Waiver. No waiver by Lessor of any breach of Lessee of any of its
obligations, agreements or covenants hereunder shall be a waiver of any
subsequent breach or of any other obligation, agreement or covenant, nor shall
any forbearance by Lessor to seek a remedy for any breach by Lessee be a waiver
by Lessor of its rights and remedies with respect to such or any subsequent
breach.

 

Section 12.5      Removal
of Property. Upon a default by Lessee pursuant to Section 12.1, with respect to
any portion of the Premises which is vacant or which is physically occupied by
Lessee, Lessor may remove all persons and property therefrom, and store such
property in a public warehouse or elsewhere at the cost of and for the account
of Lessee, without service of notice or resort to legal process (all of which
Lessee expressly waives) and without being deemed guilty of trespass or
becoming liable for any loss or damage which may be occasioned thereby. Lessor
shall have a lien for the payment of all sums agreed to be paid by Lessee
herein upon all Lessee’s property, which lien is to be in addition to any
Lessor’s lien now or hereafter provided by law.

 

Section 12.6.     Waiver
of Jury Trial. The parties hereby waive trial by jury in any action, proceeding, or
counterclaim brought by either of them against the other on any matters 

 

15

 

arising out of or in any
way connected with this Lease, the relationship of Lessor and Lessee, Lessee’s
use or occupancy of the Premises, and/or any claim or injury or damage. In the
event Lessor commences any proceedings for non-payment of Fixed Rent or
Additional Rent, Lessee will not interpose any counterclaim of any nature or
description in any such proceedings. This shall not be construed, however, as a
waive of Lessee’s right to assert any such claims in any separate action
brought by Lessee.

 

Section 12.7.     Redemption. Lessee hereby expressly waives any and
all rights of redemption granted by or under any present of future law in the
event this Lease is terminated or Lessee is evicted or dispossessed by reason
of violation of Lessee by any of the provisions of this Lease.

 

Section 12.8.     Injunctive Relief.
In the event of breach or threatened breach by Lessee of any provision of this
Lease, Lessor shall have the right of injunction as if other remedies were not
provided for herein.

 

Section 12.9.     Remedies Cumulative.
No right or remedy herein conferred upon or reserved to Lessor is intended to
be exclusive of any other right or remedy herein or by law provided, but each
shall be cumulative and in addition to every other right or remedy given herein
or now or hereafter existing at law or in equity or by statute.

 

Section 12.10.   Performance
by Lessor. If Lessee shall default in the performance of any covenant
required to be performed by it under this Lease, Lessor may perform the same
for the account and at the expense of Lessee, after first giving notice to
Lessee of its intention to do so. If Lessor at any time is compelled to pay, or
elects to pay, any sum of money, by reason of the failure of Lessee to comply
with any provisions hereof, or if Lessor is compelled to incur any expense,
including reasonable counsel fees, in instituting, prosecuting or defending
against any action or proceeding instituted by reason of any default of Lessee
hereunder, the amount of such payments or expenses shall be paid by Lessee to
Lessor as additional rent on the next day following such payment or the
incurring of such expense upon which a regular monthly rental payment is due.

 

THE FOLLOWING PARAGRAPHS SET FORTH WARRANTS OF AUTHORITY FOR AN
ATTORNEY TO CONFESS JUDGMENT AGAINST LESSEE. IN GRANTING THIS RIGHT TO CONFESS
JUDGMENT AGAINST LESSEE, LESSEE HEREBY KNOWINGLY, INTENTIONALLY AND
VOLUNTARILY, AND, ON THE ADVISE OF THE SEPARATE COUNSEL OF LESSEE,
UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS LESSEE HAD OR MAY HAVE TO PRIOR
NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND
LAWS OF THE UNTIED STATE AND THE COMMONWEALTH OF PENNSYLVANIA.

 

Section 12.10.   LESSEE
HEREBY EMPOWERS ANY PROTHONOTARY OR ATTORNEY OF ANY COURT OF RECORD TO APPEAR
FOR LESSEE IN ANY AND ALL ACTIONS WHICH MAY BE BROUGHT FOR RENT AND/OR THE
CHARGES, PAYMENTS, COSTS AND EXPENSES HEREIN RESERVED AS RENT, OR HEREIN AGREED
TO BE PAID BY LESSEE AND/OR TO SIGN FOR LESSEE AN AGREEMENT FOR ENTERING IN ANY
COMPETENT COURT AN AMICABLE ACTION OR ACTIONS FOR THE RECOVERY OF SUCH RENT OR
OTHER CHARGES OF EXPENSES, AND IN SAID SUITS OR IN SAID AMICABLE ACTION OR
ACTIONS TO CONFESS JUDGMENT AGAINST LESSEE FOR ALL OR ANY PART OF THE RENT
SPECIFIED IN THIS LEASE 

 

16

 

AND THEN DUE
AND UNPAID, AND OTHER CHARGES, PAYMENTS, COSTS AND EXPENSES RESERVED AS RENT OR
AGREED TO BE PAID BY LESSEE AND THEN DUE AND UNPAID, AND FOR INTEREST AND COSTS
TOGETHER WITH A REASONABLE ATTORNEY’S COMMISSION. SUCH AUTHORITY SHALL NOT BE
EXHAUSTED BY ONE EXERCISE THEREOF, BUT JUDGMENT MAY BE CONFESSED AS AFORESAID
FROM TIME TO TIME AS OFTEN AS ANY OF SAID RENT AND/OR OTHER CHARGES RESERVED AS
RENT OR AGREED TO BE PAID BY LESSEE SHALL FALL DUE OR BE IN ARREARS.

 

Section 12.11.  UPON THE
EXPIRATION OF THE THEN CURRENT TERM OF THIS LEASE OR THE EARLIER TERMINATION OR
SURRENDER HEREOF AS PROVIDED IN THIS LEASE, IT SHALL BE LAWFUL FOR ANY ATTORNEY
TO APPEAR AS ATTORNEY FOR LESSEE AS WELL AS FOR ALL PERSONS CLAIMING BY,
THROUGH OR UNDER LESSEE AND TO SIGN AN AGREEMENT FOR ENTERING IN NAY COMPETENT
COURT AN AMICABLE ACTION IN EJECTMENT AGAINST LESSEE AND ALL PERSON CLAIMING
BY, THROUGH OR UNDER LESSEE AND THEREIN CONFESS JUDGMENT FOR THE RECOVERY BY
LESSOR OR POSSESSION OF THE HEREIN PREMISES, FOR WHICH THIS LEASE SHALL BE ITS
SUFFICIENT WARRANT, WHEREUPON, IF LESSOR SO DESIRES, A WRIT OF POSSESSION OR
OTHER APPROPRIATE WRIT UNDER THE RULES OF CIVIL PROCEDURE THEN IN EFFECT MAY
ISSUE FORTHWITH, WITHOUT ANY PRIOR WRIT OR PROCEEDING; PROVIDED HOWEVER, IF FOR
ANY REASON AFTER SUCH ACTION SHALL HAVE BEEN COMMENCED, THE SAME SHALL BE
DETERMINED AND THE POSSESSION OF THE PREMISE HEREBY DEMISED REMAIN IN OR BE
RESTORED TO LESSEE, LESSOR SHALL HAVE THE RIGHT FOR THE SAME DEFAULT AND UPON
ANY SUBSEQUENT DEFAULT OR DEFAULTS, OR UPON THE TERMINATION OF THIS LEASE UNDER
ANY OF THE TERMS OF THIS LEASE TO BRING ONE OR MORE FURTHER AMICABLE ACTION OR
ACTIONS AS HEREINBEFORE SET FORTH TO RECOVER POSSESSION OF THE SAID PREMISES
AND CONFESS JUDGMENT FOR THE RECOVERY OF POSSESSION OF THE PREMISES AS
HEREINABOVE PROVIDED.

 

Section 12.12.  IN ANY AMICABLE ACTION OF EJECTMENT AND/OR FOR
RENT IN ARREARS, LESSOR SHALL FIRST CAUSE TO BE FILED IN SUCH ACTION AN AFFIDAVIT
MADE BY IT OR SOMEONE, ACTING FOR IT, SETTING FORTH THE FACTS NECESSARY TO
AUTHORIZE THE ENTRY OF JUDGMENT, AND, IF A TRUE COPY OF THIS LEASE (AND OF THE
TRUTH OF THE COPY OF SUCH AFFIDAVIT SHALL BE SUFFICIENT EVIDENCE) BE FILED IN
SUCH ACTION, IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF
ATTORNEY, ANY RULE OF COURT, CUSTOM OR PRACTICE TO THE CONTRARY
NOTWITHSTANDING. LESSEE HEREBY RELEASES TO LESSOR AND TO ANY AND ALL ATTORNEYS
WHO MAY APPEAR FOR LESSEE ALL ERRORS IN SAID PROCEEDINGS AND ALL LIABILITY
THEREOF. IF PROCEEDINGS SHALL BE COMMENCED BY LESSOR TO RECOVERY POSSESSION
UNDER THE ACTS OF ASSEMBLY AND RULES OF CIVIL PROCEDURE, EITHER AT THE END OF
THE TERM OR EARLIER TERMINATION OF THIS LEASE, OR FOR NON-PAYMENT OF RENT OR
ANY OTHER REASON, LESSEE SPECIFICALLY WAIVES THE RIGHT TO THE 3 MONTHS’ NOTICE
AND TO THE 15 OR 30 DAYS’ NOTICE REQUIRED BY THE LESSOR AND LESSEE ACT OF 1951,
AND AGREES THAT 5 DAYS’ NOTICE SHALL BE SUFFICIENT IN EITHER OR ANY SUCH CASE.

 

17

 

ARTICLE
13

 

INSPECTION
BY LESSOR

 

Section 13.1.     Entry
by Lessor. Lessee shall permit Lessor and Lessor’s agents, representatives,
and employees to enter the Premises at all reasonable times for the purpose of
inspection, repair or any other purpose necessary to protect Lessor’s interest
in the Premises or to perform Lessor’s duties under this Lease.

 

ARTICLE
14

 

ASSIGNMENT AND
SUBLEASE

 

Section 14.1      Assignment
and Subletting by Lessee. Lessee shall not assign this Lease or sublet the
Premises or any part thereof without Lessor’s prior written consent, which
consent Lessor agrees not to unreasonably withhold or delay; provided, however,
that Lessee may, without Lessor’s consent assign this Lease or sublet the
Premises or any part thereof to any affiliate of Lessee. Lessor hereby consents
to Lessee subletting up to fifteen thousand (15,000) square feet of space in
the Building to Mestek, Inc. for use as a laboratory and/or test facility.

 

Section 14.2.     Assignment
by Lessor. Prior to January 2, 2009, Lessor shall not assign or transfer
any or all of its interests under this Lease without Lessee’s prior written
consent, which consent Lessee agrees not to unreasonably withhold or delay. On
or after January 2, 2009, Lessor may assign or transfer any or all of its
interest under this Lease without Lessee’s prior consent; provided that Lessor may not assign or
transfer any or all of its interests under this Lease to a competitor of
Lessee, Compression Polymers Corp., or CPCapitol Acquisition Corp. or any of
their affiliates.

 

ARTICLE
15

 

SUBORDINATION

 

Section 15.1.     Subordination.
This Lease shall be subject and subordinate to any mortgage or deed of trust
which may now or hereafter be an encumbrance on the Premises and to all
renewals, modifications, consolidations, replacements, extensions or
refinancing thereof (collectively, a “Mortgage”).

 

Section 15.2.     Nondisturbance.
Notwithstanding any provision contained in this Lease to the contrary, Lessor
shall cause the holder of any Mortgage (including the holder of any existing
Mortgage), as a condition precedent to the subordination of this Lease to the
Mortgage in question, to execute, acknowledge and deliver to Lessee a
nondisturbance agreement on such mortgagee’s standard form and in recordable
form (which Lessee shall promptly execute and deliver to the mortgagee), a
non-disturbance and attornment agreement substantially to the effect that so
long as Lessee is not in default hereunder beyond any applicable notice and
grace periods, (i) this Lease will not be terminated or cut off nor shall
Lessee’s possession hereunder be 

 

18

 

disturbed by enforcement of any rights given to such mortgagee pursuant
to such Mortgage, and (ii) such mortgagee shall recognize Lessee as the tenant
under this Lease.

 

ARTICLE
16

 

MISCELLANEOUS
PROVISIONS

 

Section 16.1. Notices. All notices required
under this Lease shall be effective given only if by certified mail, registered
mail, or nationally recognized overnight courier service, addressed to the
proper party, at the following address:

 

Lessor:

North Keyser Partners, LLC

801 East Cory Street 

Moosic, Pennsylvania 18507

ATTN:  Managing Member

 

Lessee:

Vycom Corp.

801 East Cory Street 

Moosic, Pennsylvania 18507

ATTN: CEO

 

Section 16.2.     Parties
Bound. This Lease shall be binding on, and inure to the benefit of, the
parties to this Lease and their respective heirs, executors, administrators,
legal representatives, successors, and assigns when permitted by this Lease.

 

Section 16.3.     Governing
Law. This Lease shall be governed by and construed under the laws of the
Commonwealth of Pennsylvania.

 

Section 16.4.     Legal
Construction. In the event any one or more of the provisions contained in
this Lease shall for any reason be held by a court of competent jurisdiction to
be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision of this
Lease, and this Lease shall be construed as if the invalid, illegal, or
unenforceable provision had never been included in this Lease.

 

Section 16.5. Prior
Agreements Superseded. This Lease constitutes the only agreement between
Lessor and Lessee and supersedes any prior understandings or written or oral
agreements between the parties with respect to the subject matter of this
Lease, including the Original Lease.

 

Section 16.6.     Amendment.
No amendment, modification, or alteration of the terms of this Lease shall be
binding unless it is in writing, dated subsequent to the date of this Lease,
and duly execute by Lessor and Lessee.

 

Section 16.7.     Attorneys’
Fees and Costs. In the event that at any time during the term of this Lease
either Lessor or Lessee shall institute any action or proceeding against the
other relating to the provisions of this Lease or any default of this Lease,
then the unsuccessful 

 

19

 

party shall reimburse the successful party for reasonable attorneys’
fees and expenses incurred to enforce the Lease.

 

Section 16.8.     Unavoidable
Delay. Neither Lessor nor Lessee shall be required to perform any term,
condition, or covenant in this Lease so long as such performance is hindered or
prevented by unavoidable delays. For purposes of this Section, unavoidable delays
shall mean natural disasters; strikes, lockouts, or labor disputes;
governmental regulations, restrictions, or controls; enemy or hostile
government actions; civil riots; fire, floods, or nuclear accident; or any
other cause not reasonably in the control of Lessor or Lessee and that by the
exercise of due diligence Lessor or Lessee is unable to overcome.

 

Section 16.9.     Time
of Essence. Time is and shall be of the essence of this Lease and all its
provisions.

 

Section 16.10.   Quiet
Enjoyment. Lessor covenants and agrees with Lessee that upon payment by
Lessee of the Fixed Rent and Additional Rent hereunder and upon the observance
and performance of all of the terms, covenants and conditions on Lessee’s part
to be observed and performed, Lessee may peaceably and quietly enjoy the
Premises, free of all claims from Lessor but subject, nevertheless, to the
terms and conditions of this Lease.

 

Section 16.11.   Relationship
of Parties. The relationship between the parties hereto shall be that of
Lessor and Lessee and nothing contained herein shall be construed to change or
modify that relationship so as to make Lessor and Lessee partners, joint
ventures or debtor and creditor.

 

Section 16.12.   Net
Lease. The parties intend this to be a “net-net-net” Lease pursuant to
which the rent payable hereunder shall be an absolutely net return to Lessor
for the Term of this Lease, undiminished by the Taxes, or any of them or any
part thereof, or any other carrying charges, maintenance charges or any other
charges of any kind or nature whatsoever except any Mortgage now or hereafter
placed upon the Premises by Lessor, and Lessor shall not be required to perform
any services or furnish any utilities of any kind or nature whatsoever.

 

Section 16.13.   Requirements
of Public Authorities. Lessee will promptly and faithfully comply with,
conform to, and obey all present and future laws, ordinances, rules,
regulations and requirements of every duly constituted governmental authority
or agency having jurisdiction over Lessee and/or the Premises or any part
thereof, and of every Board of Underwriters having jurisdiction thereof.

 

Section 16.14.   Estoppel
Certificate. Lessee agrees to execute and deliver to any prospective
mortgagee or purchaser of the Premises, within ten (10) days following request
therefor, an “estoppel certificate” stating the amount of rent due from Lessee
hereunder, that this Lease remains in full force and effect without
modification, and that Lessee has no set-offs against rent; or, if this Lease
has been modified, or if Lessee has any set-off against rent, the exact nature
of the modification and the precise amount of set-off.

 

Section 16.15.   Brokers.
Each of Lessor and Lessee warrant that it has had no dealings with any broker,
agent or any other person in connection with the negotiation or execution of
this Lease. Each of Lessor and Lessee agree to indemnify and hold harmless the 

 

20

 

other from and against any and all cost, expense, or liability for
commissions or other compensation and charges claimed by any broker or agent
with respect to this Lease on account of the acts of the indemnifying party.

 

Section 16.16.   Number
and Gender. For purposes of this Lease, the singular shall include the
plural and the plural shall include the singular, and the masculine shall
include the feminine and the neuter, as the context may require.

 

Section 16.17.   Captions.
The captions contained herein are for the convenience of the parties only. They
do not in any way modify, amplify, alter or give full notice of the provisions
hereof.

 

Section 16.18.   Memorandum of Lease. Upon the
execution and delivery of this Lease, the parties hereto shall execute,
acknowledge and deliver a Memorandum of Lease, in recordable form, the form and
substance of which shall conform to applicable laws, but may contain such other
provisions of this Lease or the substance hereof, as either Party may
reasonably require. The foregoing shall also apply with respect to each
modification of this Lease.

 

Section 16.19.   Reasonableness. Unless expressly stated herein, in all
instances where Lessor and Lessee’s consent, permission, or approval is
required, the same shall not be unreasonably withheld, conditioned or delayed.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Lease to be executed as of the day
first written above.

 

	
  LESSOR 

  	
   

  	
  LESSEE:

  
	
   

  	
   

  	
   

  
	
  NORTH KEYSER PARTNERS,
  LLC

  	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/  JAMES KEISLING

  	
   

  	
   

  	
  By:

  	
  /s/  JAMES KEISLING

  	
   

  
							

 

 

 

21

 

EXHIBIT
A

 

PREMISES

 

All that certain lot,
piece or parcel of land situate in the 21st Ward of the City of
Scranton, County of Lackawanna and State of Pennsylvania, bounded and described
as follows:

 

Beginning at a point
located on the southeasterly right-of-way line of Legislative Route 35013, also
known as North Keyser Avenue, said corner also being common to lands herein
described and lands conveyed by Scranton Lackawanna Industrial Building Company
to Redevelopment Authority of the City of Scranton, by Deed dated May 5, 1996,
recorded in Lackawanna County in Deed Book 622, Page 378;

 

Thence along the
southeasterly right-of-way line of North Keyser Avenue the following three
courses and distances: (1) N. 45o 06’ E., 13.3 feet; (2) N. 44o
54’  W., 5.0 feet; and (3) N. 45 o 06’ E., 1722.0 feet to
a corner in the northerly line of Benjamin Tripp Tract and lands of the Glen
Alden Coal Co;

 

Thence along said
northerly line of said Tripp Tract and lands now or formerly of the Glen Alden
Coal Co., S. 50 o 01’E., 524.5 feet to a corner in line of lands now
or formerly of the Delaware, Lackawanna and Western Railroad Co., Keyser Valley
Shop Grounds;

 

Thence along said line of
said Railroad South 26 o 00’ W., 821.12 feet to a corner;

 

Thence still along said
Railroad Line S. 57 o 27’ W., 1060.25 feet to a corner of lands of
the Redevelopment Authority of the City of Scranton;

 

Thence along said
Authority line the following two courses and distances: (1) N. 48 o 47’
W., 369.0  feet; and (2)  N. 29 o 21’ W., 199.67
feet to the place of beginning.

 

Containing 27.27 acres of
land, more or less, as shown on Drawing D-15-81 by John R. Hennemuth &
Associates, Inc., dated June 9, 1981.

 

22

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