Document:

EX-10.12

 Exhibit 10.12 

LEASE AGREEMENT 

This Lease Agreement (“Lease”) is made and entered into in on this the 30th day
of September, 2009 (the “Effective Date”) by and between Chesapeake Capital Group LP (“Lessor”), and Murphy Industries, LLC, an Oklahoma limited liability company (“Lessee”). 

R E C I T A L S 

A. Lessor has agreed to lease to Lessee the property located at 105 Randon Dyer Road, Rosenberg, Texas 77471 (the “Real Property”)
and more particularly described on Exhibit “A” attached hereto and made a part hereof. 
 B. Lessor and Lessee
are willing to enter into this Lease for the foregoing purposes, all subject to the terms and conditions set forth herein. This Lease expressly supplants and supersedes any prior lease for the Real Property and Demised Premises (hereinafter
defined). 
 NOW THEREFORE, in consideration of the mutual covenants contained herein, and with the recitals above incorporated
herein, Lessor and Lessee agree as follows: 
 1. DEMISED PREMISES. Lessor hereby leases to Lessee the Real Property, together with
all improvements located thereon (collectively, the “Demised Premises”). 
 2. LEASE TERM. This Lease shall begin on the
Effective Date and shall continue until December 31, 2014, such term being defined herein as the “Term”. Provided Lessee is not in default under this Lease, Lessee shall have the option to extend for Term for an unlimited
number of successive one (1) year periods on the same terms and conditions set forth herein (each, an “Extension Option”). Lessee must exercise each Extension Option by written notice to Lessor on or before sixty (60) days
prior to expiration of the Term, as same may have been previously extended. 
 3. RENT. As base rent for the Demised Premises,
beginning on the Effective Date and continuing on the first day of each month thereafter during the first two years of the Term, Lessee will pay to Lessor the monthly sum of $8,750. The base rent shall be increased on the second anniversary of the
Effective Date and every two years thereafter to an amount equal to the “Fair Market Value” of rental amounts of comparable properties in the area of the Real Property. In the event the Effective Date falls on a day other than the first
day of a month. Lessee’s first base rent payment shall be prorated accordingly. In addition to such base rent, within ten (10) business days following receipt of an invoice from Lessor, Lessee shall pay, as additional rent, to the extent
not paid directly by Lessee, the cost of Lessor’s insurance on the Demised Premises as provided in Section 10, all real property taxes on the Demised Premises, and all utility, repair and maintenance expenses incurred by Lessor to the
extent not covered by the insurance carried by Lessor under this Lease. It is intended by the parties hereto that this Lease is a “net” Lease. Lessor and Lessee shall attempt in good faith to agree as to Fair Market Value. In the event
Lessor and Lessee cannot so agree within twenty (20) days after such discussions commence, Lessor and Lessee shall each select one real estate broker licensed in the state of where the Demised Premises is located (collectively, the
“Brokers”) within ten (10) days after the twenty (20) day period stated above; following which Brokers shall attempt in good 

  
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faith to determine the Fair Market Value. In the event the Brokers cannot so agree within twenty (20) days after such discussion commence, the Brokers shall select a third real estate broker
licensed in the state where the Demised Premises is located (“Third Broker”) within ten (10) days after the twenty (20) day period stated above. Each of the Brokers shall submit their figure for Fair Market Value to the Third
Broker within ten (10) days after the selection of the Third Broker. Within twenty (20) days after such submittals to the Third Broker, the Third Broker shall produce its own figure for Fair Market Value. The Fair Market Value for shall be
conclusively determined by averaging the Third Broker’s determination of Fair Market Value with that determination previously submitted by the Brokers which is numerically closest to the Third Broker’s determination. 

4. UTILITIES. Lessee shall pay when due all utility bills for electricity, water, gas and any other services consumed by Lessee at the
Demised Premises. In no event shall Lessor be liable to Lessee for an interruption or failure in the supply of any such utilities to the Demised Premises, except to the extent such interruption or failure is caused by the gross negligence or willful
misconduct of Lessor. 
 5. LAWS. Throughout the term of this Lease, the Lessee will promptly observe and comply with all laws,
orders, regulations, rules and ordinances required by each and every governmental authority. 
 6. USE. Lessee will use the Demised
Premises solely for manufacturing and ancillary office and warehouse purposes thereto. 
 7. REPAIRS AND MAINTENANCE. Throughout the
term of this Lease, and any renewals and extensions thereof, Lessor will maintain and keep in good repair all structural components of the Demised Premises, including, but, not limited to the foundation, sidewalks, roof, plumbing, load bearing
walls, and electrical and HVAC systems. Lessee shall maintain and keep in their current condition, subject to normal wear and tear, all non-structural components of the Demised Premises, including interior wall finishes, carpet or other flooring,
and windows. In the event Lessee or Lessor fails to so maintain the applicable elements of the Demises Premises as set forth hereinabove, after ten (10) days prior notice from the other party, or such other period of time as may be reasonable
to perform such repair and maintenance, provided such party promptly commences and diligently pursues same to completion, the other party may perform such maintenance or repair, and the party that failed to so maintain the applicable elements of the
Demises Premises shall pay the costs incurred by the other party within ten (10) business days upon receipt of invoice. 
 8.
OBSERVATION OF RULES. Lessee shall observe all rules and regulations that have been or hereafter may be promulgated by Lessor for conduct while on the Real Property, including, but not limited to, rules and regulations with respect to acts or
practices deemed hazardous by Lessor, and Lessee agrees to enforce compliance therewith by its employees, agents and contractors, provided, however, such rules and regulations shall not materially prevent or hinder Lessee from its permitted use of
the Demised Premises. 
 9. INDEMNIFICATION BY LESSEE. Lessee agrees to indemnify, defend with counsel reasonably acceptable to
Lessor, and hold Lessor and Lessor’s members, managers, 

  
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employees and affiliates (collectively, the “Lessor Indemnified Parties”) harmless from and against any and all claims of liability for any injury or damage to any person or property
arising from the use by Lessee, its agents, employees, contractors or invitees of the Demised Premises or from any activity, work, or thing done, or permitted by Lessee in or about the Demised Premises, except claims and liabilities to the extent
occasioned by the negligence or willful misconduct of Lessor, its agents, employees, contractors or invitees. Further, Lessee agrees to indemnify, defend with counsel reasonably acceptable to Lessor, and hold the Lessor Indemnified Parties harmless
from and against any and all claims, demands, losses, suits, actions, causes of action, liabilities and expenses, including any liability to third parties and losses and damage to property suffered by any Lessor Indemnified Party, directly or
indirectly arising out of the presence or release of any Hazardous Materials, as defined below, in violation of applicable law in, on or under the Real Property, including, without limitation, the cost of any required or necessary repair, clean-up
or detoxification and the preparation of any closure or other required plans to the extent that such action is attributable directly or indirectly to the presence (in violation of applicable law), release, threatened release or disposal of Hazardous
Materials by Lessee or any individual or entity operating for or on behalf of Lessee. “Hazardous Materials” shall include all substances defined as “hazardous substances,” “hazardous materials” or “toxic
substances” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., and in any future amendments or additions to such laws, and in the regulations now or hereafter adopted and publications now or hereafter promulgated pursuant to said federal and
state laws (collectively, the “Environmental Laws”). The obligations of Lessee under this Section 9 shall survive the expiration or termination of this Lease. 

10. INSURANCE. 

10.1 Lessee shall obtain and maintain the following insurance during the term of this Lease: 

(A) Commercial General Liability Coverage with minimum limits of $2,000,000, combined single limit; and 

(B) Commercial Automobile Liability Coverage with minimum limits of $500,000, combined single limit covering all owned, hired,
and non-owned vehicles. 
 All of the insurance required to be maintained by Lessee shall be obtained from an insurer which
is licensed to do business in the state where the Real Property is located. Lessee shall provide to Lessor copies of the policies evidencing all required coverage hereunder within ten (10) days following the Effective Date. All of the insurance
required hereunder shall name Lessor as an additional insured and shall include a waiver of subrogation in favor of Lessor. All insurance policies required by this Lease shall state that the insurer shall endeavor that such policy may not be
terminated or cancelled without first providing Lessor with thirty (30) days prior written notice. 
 Lessee shall be
responsible for obtaining any casualty insurance on Lessee’s personal property, equipment and fixtures at the Demised Premises. 

  
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 10.2 Lessor shall obtain and maintain the following insurance during the term of
this Lease: 
 (A) Commercial General Liability Coverage with minimum limits of $2,000,000, combined single limit; and 

(B) “All-risk” property and casualty insurance in an amount equal to the replacement value of the Demised Premises.

 11. ACCEPTANCE OF DEMISED PREMISES. Lessee accepts the lease granted herein and its use of the Real Property pursuant to same on
an AS IS, WHERE IS, AND WITH ALL FAULTS, PATENT AND LATENT BASIS. 
 12. REMOVAL OF PROPERTY. Upon the expiration or earlier
termination of this Lease, Lessee may, at its own expense and risk, remove all of Lessee’s property, equipment and trade fixtures from the Demised Premises, and shall remediate any damage to the Demised Premises resulting from Lessee’s use
of the Demised Premises under this Lease or from removal of such Lessee’s property, equipment and trade fixtures from the Demised Premises. If Lessee should fail to remove its property, equipment and trade fixtures upon the expiration or
earlier termination of this Lease, they shall become the property of Lessor. This Section 12 shall survive expiration or termination of this Lease. 

13. ASSESSMENTS. Lessee shall pay, before the same becomes delinquent, all charges, taxes, rates and assessments upon or against any
property of Lessee upon or on the Real Property. 
 14. DAMAGE OR DESTRUCTION. If the Demised Premises is partially destroyed during
the term of this Lease, Lessor will proceed with reasonable diligence to restore the same with insurance proceeds or at Lessor’s expense. If the Demised Premises is completely destroyed during the term of this Lease, this Lease shall
automatically terminate effective on the date of such destruction. 
 15. DEFAULT. In the case of default by Lessee, Lessor may
terminate the Lease if such default continues for a period of ten (10) days after Lessor notifies Lessee of such default, unless such default is of such a nature that it is incapable of being remedied within such ten (10) day period, and
provided that Lessee diligently prosecutes the remedy of such default until same is corrected. In the case of default by Lessor, Lessee may terminate the Lease if such default continues for a period often (10) days after Lessee notifies Lessor
of such default, unless such default is of such a nature that it is incapable of being remedied within such ten (10) day period, and provided that Lessor diligently prosecutes the remedy of such default until same is corrected. Notwithstanding
the foregoing, in the event of a failure by either party to perform any repair, maintenance or reconstruction required under this Lease, and such continues for a period of ten (10) days after the non-defaulting notifies the defaulting party in
writing of such failure, the non-defaulting party may perform such repair, maintenance or reconstruction and charge the reasonable costs of same to the defaulting party. 

16. QUIET ENJOYMENT. Lessor hereby covenants and agrees that if Lessee will at all times comply with the terms and conditions of the
Lease, then during the Term, as same may be extended or renewed, Lessee shall have the peaceable and quiet enjoyment and possession of the Demised Premises. 

  
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 17. ASSIGNMENT. Lessee may not assign this Lease or sublease the Demised Premises without
Lessor’s prior written consent, which consent shall not be unreasonably withheld. 
 18. NOTICES. All notices, requests,
demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given (i) if served personally, on the day of such service, or (ii) if mailed
by certified or registered mail (return receipt requested), on the second business day after mailing, and (iii) if transmitted by recognized overnight carrier, on the next business day after tender to the carrier. Such communications shall be
sent to the following addresses 
 TO Lessor: 

Chesapeake Capital Group LP 
 PO
Box 470248 
 Tulsa, Oklahoma 74147 

Attention: Dave Crowell, Vice President, Finance 

TO Lessee: 
 Murphy
Industries, LLC 
 PO Box 470248 

Tulsa, Oklahoma 74147 

Attention: Dave Crowell, Vice President, Finance 

Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving
the other parties notice in the manner herein set forth. 
 19. MISCELLANEOUS. 

(A) The laws of the State of Oklahoma will govern this Lease. If any provision of this Lease is held to be invalid or unenforceable, the
validity and enforceability of the remaining portions of the Lease will not be affected thereby. 
 (B) This Lease contains the entire
agreement of the parties hereto and shall not be modified in any manner except by an instrument in writing signed by the parties hereto. 

(C) Any intention to create a joint venture or partnership relationship between Lessor and Lessee is hereby expressly disclaimed. 

(D) The covenants and agreements herein contained will inure to the benefit of, and be binding upon, the parties hereto, their respective
heirs, legal representatives, successors and permitted assigns. 

  
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 (E) This Lease may be executed in counterparts, which shall collectively constitute one original
document. 
 Signatures on following page 

  
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 IN WITNESS WHEREOF, this Lease is executed to be effective on the day and year first above
written. 
  

							
	LESSEE:	 		 	Murphy Industries, LLC
				
		 		 	By:	 	  /s/ Frank W. Murphy III        
		 		 		 	Frank W. Murphy III
			
	LESSOR:	 		 	Chesapeake Capital Group LP
				
		 		 	By:	 	  /s/ Frank W. Murphy III        
		 		 		 	Frank W. Murphy III

  
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 EXHIBIT A 

(Legal Description of the Real Property) 

that certain tract or parcel of land lying and situated in Fort Bend County, Texas, out of the Yandell Ferris Survey, Abstract No. 374. Said 8.734 acre
tract being a part or portion of that certain 69.774 acre tract described in a deed from Edith Valenta Krajcik and Vernon J. Valenta to Frank W. Murphy Mfr., Inc., Nominee and recorded in Volume 887, Page 226 of the Deed Records of Fort Bend County,
Texas, to which reference is made for all purpose and the said 8,734 acres being described by metes and bounds as follows, TO-WIT: 
 BEGINNING at a  1⁄2 inch iron pin set in West right of way line of Random Road, said iron pin being also N 06° 51’ 22” W 400.00 feet from Southeast corner of said
69.774 acre tract. 
 THENCE S 83° 07’ 35” W a distance of 960.00 feet, to a  1⁄2 inch iron pin set for Southwest corner of said 8.734 acre tract. 
 THENCE N 06° 51’ 22” W a distance of
396.31 feet to a  1⁄2 inch iron pin set for Northwest corner of said 8.734 acre tract. 

THENCE N 83° 07’ 35” E a distance of 960.00 feet to a
 1⁄2 inch iron pin set in West right of way line of said Random Road. 

THENCE S 06° 51’ 22” E a distance of 396.31 feet with West right of way line of said Random Road to place of beginning, containing 8.734 acres
of land as surveyed by Leonard W. Frank, County Surveyor of Colorado County, Texas, Registered Public Surveyor, Registration No. 1669.EX-10.13

 Exhibit 10.13 

FIRST AMENDMENT TO LEASE AGREEMENT 

THIS FIRST AMENDMENT TO LEASE (“First Amendment”) made this 1st day of September, 2013, by and between Chesapeake Capital Group Limited
Partnership, a Texas limited partnership, (“Lessor”), and Enovation Controls, LLC, an Oklahoma limited liability company, (“Lessee”) with reference to the following facts: 

 

	 	(a)	LEASE TERM. This Lease shall be extended and continue until January 31, 2022. 

 NOW THEREFORE,
the Lessee assumes all rights and responsibilities under the Original Lease. 
 IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment on the day and year first above set forth. 
  

											
	“Lessor”:	 		 	 CHESAPEAKE CAPITAL GROUP A LIMITED

PARTNERSHIP, a Texas limited partnership

				
		 		 	By:	 	 Chesapeake Capital Group LP
 Texas
limited liability company, Its General
 Partner

						
		 		 		 	By:	 	/s/ Frank W. Murphy III	 	
		 		 		 		 	 Frank W. Murphy, III, General Partner
 2602 E.
28th Street
 Tulsa, Oklahoma 74114
	 	
			
	“Lessee”:	 		 	 ENOVATION CONTROLS, LLC, an Oklahoma

limited liability company

					
		 		 	By:	 	/s/ Dave Crowell	 	
		 		 		 	 Dave Crowell, VP Finance
 5311 S.
122nd East Avenue
 Tulsa, Oklahoma 74146

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