Document:

Exhibit 10.19

 

EXHIBIT 10.19

THIRD AMENDMENT TO LEASE

     This Third Amendment to Lease (“Third Amendment”) is entered into effective as of December 22,
2004, by and between US INSTITUTIONAL REAL ESTATE EQUITIES, L.P., a Texas limited partnership
(“Lessor”), successor in interest to Utah State Retirement Investment Fund (“USRIF”), successor in
interest to E.T. Hermann and Jane D. Hermann 1978 Living Trust (“Hermann Trust”) and WESCO
DISTRIBUTION, INC., a Delaware corporation (“Lessee”), successor in interest to Westinghouse
Electric Supply Company, a former division of Westinghouse Electric Corporation (“WEC”).

     WHEREAS, under that certain Lease dated April 1, 1992 (“Original Lease”), by and between the
Hermann Trust and WEC, as amended by that certain letter dated as of December 13, 1996 whereby
Lessee exercised its First Option to Extend and USRIF and Lessee amended the Original Lease to
renew the Lease Term as provided therein (“First Amendment”) and that certain Second Amendment to
Lease dated as of March 22, 2002 (“Second Amendment”) by and between Lessee and USRIF,
(collectively, the “Lease”), Lessee leases approximately 196,800 square feet located at 1161 E.
Glendale Avenue, Sparks, Nevada and designated as Building #8 (“Original Premises”);

     WHEREAS, Capitalized terms not otherwise defined in this Third Amendment shall have the
meanings ascribed to them in the Lease; and

     WHEREAS, among other things, Lessor and Lessee desire to extend the Lease Term, to decrease
the size of the Original Premises by 66,149 square feet (the “Contraction Premises”), which
comprises the portion of the Original Premises depicted on the attached Exhibit A-1 and to
further amend the Lease as set forth below.

     NOW THEREFORE, in consideration of the rentals to be paid and the covenants and agreements to
be kept and performed by both parties hereto, Lessor and Lessee hereby agree to amend the Lease as
follows:

	(1)	 	Section 1.1 of the Lease is amended to add the following at the end:
	 
	 	 	“; provided, however, from and after the Contraction Date (as defined herein), the Premises
shall no longer include the Contraction Premises and are stipulated and agreed for all
purposes to be 130,651 square feet, regardless of whether the same is actually more or
less.”
	 
	(2)	 	Effective on the Contraction Date, the number of parking spaces shall be reduced to 26, as
provided on a site plan delivered to Lessee.
	 
	(3)	 	Effective on the Contraction Date, Base Rent set forth in the Second Amendment for the
Premises is deleted in its entirety and the following monthly base rent schedule for the
Premises is added to the end of Section 1.3 as the definition of base monthly rent for the
Premises.

“(a) For the period of the Contraction Date-June 30, 2007: $35,275.77 per month,
$423,309.24 per year ($3.24 x 130,651)

(b) For the period of July 1, 2007-June 30, 2010: $37,888.79 per month, $454,665.48 per
year ($3.48 x 130,651)

	(4)	 	Sections 1.6 and 1.7 are hereby deleted in their entirety.
	 
	(5)	 	Section 1.8 of the Lease is amended to reflect that the Lease Term is extended an additional
60 months (“Third Renewed Term”) from the expiration of the Second Renewed Term; provided,
however that the Lease Termination Date shall be revised to be (i) December 31, 2004 as to the
Contraction Premises and (ii) the expiration of the Third Renewed Term on June 30, 2010 as to
the remainder of the Premises. Further, the following definition is added to end of Section
1.8:

1

 

	 	 	“Contraction Date: The later of (i) January 1, 2005 and (ii) the date that Lessee vacates
and surrenders all of the Contraction Premises in accordance with the terms of the Lease.”
	 
	(6)	 	Section 1.9 is amended to reflect the addition of the Fourth Renewal Option (as defined in
Section 7) of the Lease, which is added pursuant to this Third Amendment.
	 
	(7)	 	Effective as of the Contraction Date, Section 1.14 is amended to reflect that from and after
the Contraction Date the percent of the building occupied by Lessee is 32.32%.
	 
	(8)	 	Section 1.17 is amended to add the following new Exhibits: Exhibit A-1 Contraction Premises,
Exhibit B Work agreement.
	 
	(9)	 	Section 2 is amended to delete Lessor’s payment address and insert the following in lieu
thereof:

“US Institutional Real Estate Equities, L.P.

P. O. Box 203051

Houston, Texas 77216-3051

Or electronically via ACH to the following:

JP Morgan Chase Bank

San Antonio, Texas

ABA #113000609

To Credit: USAA Institutional Real Estate Equities

Account # 125-0838856”

	(10)	 	Section 3 is deleted in its entirety.
	 
	(11)	 	Section 7 is deleted and the following is inserted in lieu thereof:

“7. OPTION TO RENEW

7.1 Grant of Option and General Terms. Provided that (1) no material adverse change
has occurred in Lessee’s financial condition, (ii) this Lease is in full force and effect,
and (iii) no default shall exist under this Lease, either on the date Lessee exercises its
Fourth Renewal Option (as hereinafter defined) or as of the effective date of the Fourth
Renewed Term (as hereinafter defined), or would exist but for the pendency of any cure
periods provided under Section 29 herein; Lessee shall have the option to extend the
Lease Term with respect to the entire Premises for one (1) additional period (the “Fourth
Renewal Option”) of five (5) years (the “Fourth Renewed Term”). The Fourth Renewal Option
shall be subject to all of the terms and conditions contained in the Lease except that (i)
the Renewal Rent (as hereinafter defined) shall be at the then prevailing Market Rate (as
defined below) on the commencement date of the Fourth Renewed Term; (ii) Lessor shall have
no obligation to improve the Premises; and (iii) there shall be no further option to extend
the Lease Term beyond the Fourth Renewed Term.

7.2 Determination of Market Rate. Lessee shall send Lessor a preliminary expression
of Lessee’s willingness to renew this Lease no earlier than three hundred sixty (360) days
or later than two hundred seventy (270) days prior to the Lease Termination Date with
respect to the Third Renewed Term. Lessee and Lessor shall negotiate in good faith to
determine and mutually agree upon the Market Rate for the Fourth Renewed Term. If Lessor
and Lessee are unable to agree upon the Market Rate for the Fourth Renewed Term, on or
before two hundred forty (240) days prior to the expiration of the Third Renewed Term of the
Lease (the “Negotiation Period”), as evidenced by an amendment to the Lease executed by both
Lessor and Lessee, then within ten (10) days after the last day of the Negotiation Period,
Lessee may, by written notice to Lessor (the “Notice of Exercise”), irrevocably elect to
exercise such Fourth Renewal Option. In order for Lessee to exercise such Fourth Renewal
Option, Lessee shall send the Notice of Exercise to Lessor stating (i) that Lessee is
irrevocably exercising its right to extend the Lease Term pursuant to Section 7; and
(ii) Lessor and Lessee shall be irrevocably bound by the determination of Market Rate set
forth hereinafter in this Section 7.2, and if applicable, Section 7.4. If
Lessee shall fail to deliver the Notice of Exercise on or before ten (10) days after the
last day of the Negotiation period, then Lessee shall have waived any right to exercise the
Fourth Renewal Option. In the event any date referenced in this Section 7.2 falls
on a day other than a business day, such date shall be deemed to be the next following
business day.

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In the event Lessee timely delivers the Notice of Exercise to Lessor, Lessor and Lessee
shall each simultaneously present to the other party their final determinations of the
Market Rate for the Fourth Renewed Term (the “Final Offers”) within fifteen (15) days after
the last day of the Negotiation Period. If the Market Rate as determined by the lower of
the two (2) proposed Final Offers is not more than ten percent (10%) below the higher, then
the Market Rate shall be determined by averaging the two (2) Final Offers.

If the difference between the lower of the two (2) proposed Final Offers is more than ten
percent (10%) below the higher, then the Market Rate shall be determined by Baseball
Arbitration (as hereinafter defined) in accordance with the procedure set forth in
Section 7.4.

7.3 Renewal Rent. The Renewal Rent for the Fourth Renewed Term shall be an amount
equal to the prevailing Market Rate. As used herein “Market Rate” shall mean the then
prevailing market rate for base rent (and with charges for parking, which parking charges
shall be in addition to base rent) for tenants of comparable quality for renewal leases in
buildings of comparable size, age, use location and quality in the East Sparks Market Area
of Sparks, Nevada, taking into consideration the extent of the availability of space as
large as the premises in the marketplace and all other economic terms then customarily
prevailing in such renewal leases in said marketplace.

7.4 Baseball Arbitration. For all purposes of this Lease, Baseball Arbitration
shall follow the following procedures:

     (a) Within twenty (20) days after Lessor’s receipt of Lessee’s Notice of Exercise,
Lessee and Lessor shall each select an arbitrator (“Lessee’s Arbitrator” and “Lessor’s
Arbitrator”, respectively) who shall be a qualified and impartial person licensed in the
State of Nevada as an MAI appraiser with at least five (5) years of experience in appraising
the type of matters for which they are called on to appraise hereunder in the East Sparks
Market Area of Sparks, Nevada.

     (b) Lessor’s Arbitrator and Lessee’s Arbitrator shall name a third arbitrator,
similarly qualified, within ten (10) days after the appointment of Lessor’s Arbitrator and
Lessee’s Arbitrator.

     (c) Said third arbitrator shall, after due consideration of the factors to be taken
into account under the definition of Market Rate set forth in Section 7.3 and
hearing whatever evidence the arbitrator deems appropriate from Lessor, Lessee and others,
and obtaining any other information the arbitrator deems necessary, in good faith, make its
own determination of the Market Rate for the Premises as of the commencement of the Fourth
Renewed Term (the “Arbitrator’s Initial Determination”) and thereafter select either
Lessor’s Final Offer or the Lessee’s Final Offer, but no other, whichever is closest to the
Arbitrator’s Initial Determination (the “Final Determination”), such determination to be
made within thirty (30) days after the appointment of the third arbitrator. The
Arbitrator’s Initial Determination, Final Determination and the market information upon
which such determinations are based shall be in writing and counterparts thereof shall be
delivered to Lessor and Lessee within said thirty (30) day period. The arbitrator shall
have no right or ability to determine the Market Rate in any other manner. The Final
Determination shall be binding upon the parties hereto.

     (d) The costs and fees of the third arbitrator shall be paid by Lessor if the Final
Determination shall be Lessee’s Final Offer or by Lessee if the Final Determination shall be
Lessor’s Final Offer.

     (e) If Lessee fails to appoint Lessee’s Arbitrator in the manner and within the time
specified in Section 7.4, then the Market Rate for the Fourth Renewed Term shall be
the Market Rate contained in the Lessor’s Final Offer. If Lessor fails to appoint Lessor’s
Arbitrator in the manner and within the time specified in Section 7.4, then the
Market Rate for the Fourth Renewed Term shall be the Market Rate contained in the Lessee’s
Final Offer. If Lessee’s Arbitrator and Lessor’s Arbitrator fail to appoint the third
arbitrator within the time and in the manner prescribed in Section 7.4 then Lessor
and Lessee shall jointly and promptly apply to the local office of the American Arbitration
Association for the appointment of the third arbitrator.

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7.5 Personal Option. This Fourth Renewal Option is personal with respect to WESCO
DISTRIBUTION, INC. Any assignment or subletting shall automatically terminate WESCO
DISTRIBUTION, INC.’s rights hereunder.”

	(12)	 	Sections 19 is deleted in its entirety and replaced with the following:

“19. INSURANCE REQUIRED BY LESSEE.

19.1 Certain Insurance Risks. Lessee will not do or permit to be done any act or
thing upon the Premises or the building of which the Premises are a part which would: (1)
jeopardize or be in conflict with fire insurance policies covering the building of which the
Premises are a part, and fixtures and property in the building of which the Premises are a
part; or (2) increase the rate of fire insurance applicable to the building of which
the Premises are a part to an amount higher than it otherwise would be; or (3) subject
Lessor to any liability or responsibility for injury to any person or persons or to property
by reason of any business or operation being conducted upon the Premises.

19.2 Lessee’s Insurance. Lessee will carry and maintain, at Lessee’s expense, the
following insurance, in the minimum amounts specified below or such other amounts as Lessor
may from time to time reasonably request (provided that any changes to the amounts specified
below are reasonable and consistent with amounts required of other tenants with a similar
use in the East Sparks Market Area of Sparks, Nevada):, with insurance companies meeting the
requirements of Section 19.2(7) and on forms reasonably satisfactory to Lessor:

(1) Commercial general liability insurance, with a combined single occurrence limit and
aggregate of not less than $1,000,000. All such insurance will include, without limitation,
bodily injury, property damage, personal injury, advertising injury, products and completed
operations liability, and contractual liability coverage for the performance by Lessee of
the indemnity agreements set forth in this Lease;

(2) All risk property covering all of Lessee’s furniture and fixtures, machinery, equipment,
stock and any other personal property owned and used in Lessee’s business and found in, on
or about the building of which the Premises are a part, and any leasehold improvements to
the Premises in excess of any initial buildout of the Premises by the Lessor, in an amount
not less than the full replacement cost, less Lessee’s deductible which shall not exceed
$200,000.00;

(3) Worker’s compensation insurance insuring against and satisfying Lessee’s obligations and
liabilities under the worker’s compensation laws of the state in which the Premises are
located, including employer’s liability insurance in the limit of $1,000,000 aggregate;

(4) If Lessee operates owned, hired, or nonowned vehicles at the building of which the
Premises are a part, comprehensive automobile liability will be carried at a limit of
liability not less than $1,000,000 combined bodily injury and property damage;

(5) Umbrella liability insurance in excess of the underlying coverage listed in Section
19.2(1), (3) and (4) above, with limits of not less than $4,000,000 per
occurrence/$4,000,000 aggregate;

(6) Loss of income and extra expense insurance and contingent business income insurance in
amounts as will reimburse Lessee for direct or indirect loss of earning attributable to all
perils insured or attributable to prevention of access to the Premises as a result of such
perils. Such insurance shall provide for an extended period of indemnity to be not less
than twelve (12) months; and

(7) All insurance required under this Section 19 shall be issued by such good and
reputable insurance companies qualified to do and doing business in the state in which the
Premises are located and having a policyholder rating of not less than “A” and a financial
rating of “VIII” in the most current copy of Best’s Insurance Report in the form customary
to this locality.

4

 

19.3 Forms of the Policies. Lessor and its affiliates, Lessor’s management company,
Lessor’s mortgagee, and such other parties as Lessor shall reasonably designate to Lessee
who have an insurable interest in the Premises or building of which the Premises are a part
shall be: (i) named as additional insured (other than for Worker’s Compensation) and have
waiver of subrogation rights with respect to the coverages provided for under Section
19.2 (1), (3), (4) and (5), and (ii) as loss payees as their interest may appear with
respect to the coverage provided under Section 19.2(2). Certificates of insurance
together with any endorsements providing the required coverage will be delivered to Lessor
prior to or contemporaneously with the execution of the Third Amendment and from time to
time at least 30 days prior to expiration of the term, material change, reduction in
coverage, or other termination thereof. All commercial general liability and property
policies herein required to be maintained by Lessee will be written as primary policies, not
contributing with and not supplemental to the coverage that Lessor may carry. Commercial
general liability insurance required to be maintained by Lessee by this Section 19
will not be subject to a deductible in excess of $200,000.00.

19.4 Adequacy of Coverage. Lessor makes no representation that the limits of
liability specified to be carried by Lessee pursuant to the Section 19 are adequate
to protect Lessee and Lessee should obtain such additional insurance or increased liability
limits as Lessee deems appropriate. Furthermore, in no way does the insurance required
herein limit the liability of Lessee assumed elsewhere in the Lease.

	(13)	 	Section 20 is amended to delete the first sentence and insert the following in lieu thereof:

“At all times during the Term, Lessor will carry and maintain:

(1) Fire and extended coverage insurance covering the building of which the Premises are a
part, its equipment and Common Area furnishings, and leasehold improvements in the Premises
to the extent of any initial build out of the Premises by the Lessor;

(2) Bodily injury and property damage insurance; and

(3) Such other insurance as Lessor reasonably determines from time to time.

The insurance coverages and amounts in this Section 20 will be determined by Lessor
in an exercise of its reasonable discretion.”

	(14)	 	Section 21 is amended to add the following at the end:

“(including deductible amounts). Lessee agrees to cause all other occupants of the Premises
claiming by, under or through Lessee, to execute and deliver to Lessor and its affiliates,
Lessor’s management company, and Lessor’s mortgagee such a waiver of claims and to obtain
such waiver of subrogation rights endorsements.”

	(15)	 	Section 31 is amended to add the following at the end:

“Lessee shall pay all rent due to and through the Contraction Date specified and shall
surrender the Contraction Premises to Lessor on or before Lease Termination Date as to the
Contraction Premises in the manner and in the condition provided for in the Lease. Lessee’s
failure to satisfy its obligation to vacate the Contraction Premises in accordance with this
Section 31 shall constitute a default and a holdover under this Lease, entitling
Lessor to any and all remedies under this Lease, at law and/or in equity and to holdover
rent commencing on January 1, 2005 pursuant to Section 36.”

	(16)	 	Section 39 of the Lease and Section 10 of the Second Amendment are hereby deleted in their
entirety and replaced with the following:

“All notices or other communications hereunder shall be in writing and shall be deemed duly
given if addressed and delivered to the respective parties’ addresses, as set forth in this
Section 39: (i) in person; (ii) by Federal Express or similar overnight carrier
service; or (iii) mailed by certified mail; return receipt requested, postage prepaid. Such
notices shall be deemed received upon the earlier of receipt or, if mailed by certified
mail, 3 days after such mailing. Lessor and Lessee may from time to time by written notice
to the other designate another address for receipt of future notices. For purposes of this
Lease, Lessor’s and Lessee’s addressed are as follows:

5

 

LESSEE’S ADDRESS:

WESCO DISTRIBUTION, INC.

Suite 700

225 W. Station Square Drive

Pittsburgh, PA 15219

Attention: Real Estate

With a copy at

the same time to:

WESCO DISTRIBUTION

Building 8

1161 East Glendale Ave.

Sparks, Nevada 89431

LESSOR’S ADDRESS:

US INSTITUTIONAL REAL ESTATE EQUITIES, L.P.

9830 Colonnade Boulevard, Suite 600

San Antonio, Texas 78230-2239

Attention: VP Portfolio Management

	 	 	 	 	 
	 

	 	with a copy at

the same time to:
	 	USAA Real Estate Company

9830 Colonnade Boulevard, Suite 600
	 

	 	 	 	San Antonio, Texas 78230-2239
	 

	 	 	 	Attention: VP Real Estate Counsel
	 
	 	 	 	 
	 

	 	 	 	USAA Realty Company
	 

	 	 	 	2201 Dupont Drive, Suite 360
	 

	 	 	 	Irvine, California 92612
	 

	 	 	 	Attention: AVP/Western Region
	 
	 	 	 	 
	 

	 	 	 	Trammell Crow Company
	 

	 	 	 	68980 Sierra Center Parkway Suite 160
	 

	 	 	 	Reno, Nevada 89511”

	(17)	 	Section 43 is amended to add the following at the end:

“Notwithstanding anything to the contrary in this Lease, Lessee shall permit Lessor, on and
after the effective date of the Third Amendment, and without notice or charge therefore to
Lessor and without diminution of rent, (i) to enter the Contraction Premises at any time
during Lessee’s normal business hours as reasonably designated by Lessee to exhibit the same
to prospective tenants; and (ii) to enter the Contraction Premises and remaining Premises at
any time in order to inspect the Lessee Work set for in Exhibit B. Lessee further
agrees to reasonably cooperate with Lessor in connection with Lessor’s exercise of Lessor’s
rights of entry under this Section.”

	(18)	 	Section 44 is amended to add the following at the end:

”On or before the Lease Termination Date as to the Contraction Premises, Lessee shall
surrender to Lessor all keys to any locks or doors entering or within the Contraction
Premises that are not also used to access the remaining Premises, and give to Lessor the
explanation of the combination of all locks for safes, safe cabinets and vault doors, if
any, in the Contraction Premises.

	(19)	 	Sections 48, 50, 51 and 52 are hereby deleted in their entirety.
	 
	(20)	 	Landlord’s Lien, Lessee has not granted Lessor a contractual lien or security
interest in Lessee’s equipment, machinery or other property used in Lessee’s operations.
Notwithstanding anything to the contrary, Lessor agrees to subordinate any statutory
landlord’s lien or security interest in Lessee’s equipment, machinery or other property used
in Lessee’s operations at the Premises to any third party lenders of Lessee providing
financing for such equipment, machinery and other property and will execute, following
Lessee’s request, Lessor’s standard form of subordination agreement, or such other form
acceptable to Lessor, in order to evidence the same.

6

 

	(21)	 	Condition of the Premises. Lessor and Lessee agree that Lessor has no obligation to
construct any improvements to the Premises, and that LESSEE CURRENTLY OCCUPIES AND ACCEPTS THE
PREMISES, “AS IS”, “WHERE IS” AND WITH ANY AND ALL FAULTS. LESSOR NEITHER MAKES NOR HAS MADE
ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE QUALITY,
SUITABILITY OR FITNESS THEREOF OF THE PREMISES, OR THE CONDITION OR REPAIR THEREOF. LESSEE’S
OCCUPYING THE PREMISES SHALL BE CONCLUSIVE EVIDENCE FOR ALL PURPOSES OF LESSEE’S ACCEPTANCE OF
THE PREMISES IN GOOD ORDER AND SATISFACTORY CONDITION, AND IN A STATE AND CONDITION
SATISFACTORY, ACCEPTABLE AND SUITABLE FOR THE LESSEE’S USE PURSUANT TO THE LEASE.
	 
	(22)	 	Brokerage. Except for Trammel Crow Company and Commercial Properties of Nevada
(collectively and each a “Broker”), Lessee and Lessor each agree to indemnify and hold the
other harmless of and from any and all loss, costs, damages or expenses (including, without
limitation, all attorneys’ fees and disbursements) by reason of any claim of or liability to
any broker or person claiming through the indemnifying party and arising out of or in
connection with the negotiation, execution and delivery of this Third Amendment. Each Broker
will be compensated by Lessor pursuant to the terms of a separate agreement between Lessor and
the respective Broker.
	 
	(23)	 	Counterclaims.  There exist no offsets, counterclaims or defenses of Lessee under
the Lease against Lessor, and there exist no events which would constitute a basis for such
offsets, counterclaims, or defenses against Lessor upon the lapse of time or the giving of
notice or both. Redress for any claims against Lessor under the Lease, as amended by this
Third Amendment, shall only be made against Lessor to the extent of Lessor’s interest in the
building of which the Premises are a part to which the Premises are a part. Lessee agrees to
look solely to Lessor’s interest in the building of which the Premises are a part for the
recovery of any amount from Lessor, and shall not look to other assets of Lessor nor seek
recourse against the assets of the individual or other partners, directors, officers and
shareholders of Lessor. Any lien obtained to enforce any such judgment and any levy of
execution thereon shall be subject and subordinate to any lien, mortgage or deed of trust on
the building of which the Premises are a part.
	 
	(24)	 	Continued Effect. Except as otherwise provided in this Third Amendment, all
other provisions of the Lease shall remain unmodified and in full force and effect. All
terms not defined herein shall be as defined pursuant to the terms of the Lease.

     EXECUTED as of the dates indicated below to be effective as of the date indicated above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LESSOR:	 	 
	 
	 	 	US INSTITUTIONAL REAL ESTATE	 	 
	 	 	EQUITIES, L.P., a Texas limited partnership	 	 
	 
	 

	 	 	 	 	 	By:
	 	USAA REAL ESTATE COMPANY,	 	 
	 

	 	 	 	 	 	 	 	a Delaware corporation, Its General Partner	 	 
	 
	 

	 	 	 	 	 	By:
	 	    /s/ TRD	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name: T. PATRICK DUNCAN	 	 
	 	 	 	 	 	 	Title:   Senior Vice President	 	 
	 	 	 	 	 	 	Date Executed: 12/22/04	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	LESSEE:	 	 
	 
	 	 	WESCO DISTRIBUTION, INC.	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	By:	 	 	 	/s/ Stephen A. Van Oss	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Stephen A. Van Oss, Senior Vice President,	 	 
	 	 	 	 	CFO & CAO	 	 
	 	 	Date Executed: 12/06/04	 	 

[Exhibits and Schedules have been omitted and will be furnished upon request.]

7Exhibit 10.20

 

Exhibit 10.20

	 	 	 
	 

	 	AGREEMENT OF LEASE
	 
	BETWEEN:

	 	ATLANTIC CONSTRUCTION INC., a company duly incorporated under the
law, herein acting and represented by David Rosenberg, its
President, hereunto duly authorized as he declares,
	 
	 	 
	 

	 	(hereinafter referred to as “Landlord”)
	 
	 	 
	AND:

	 	WESCO DISTRIBUTION CANADA INC., a body politic and corporate,
duly incorporated under the Law, and having an office in the City
of Pittsburgh, State of Pennsylvania, U.S.A., located at
Riverfront Center, herein acting and represented by Roy W. Haley,
its President and Chief Executive Officer duly authorized as he
declares,
(hereinafter referred to as “Tenant”)

	1.	 	DESCRIPTION AND LEASE OF PREMISES

     The Landlord in consideration of the rentals and other obligations of the Tenant herein set
forth, hereby leases to the Tenant, the latter accepting, the location bearing civic number 1330
Trans Canada Highway, Dorval, Québec, consisting of an area of approximately ninety-seven thousand
(97,000) square feet and the land upon which it is erected, the whole as outlined on the plan
hereto attached as Schedule “A” (hereinafter referred to as the “Leased Premises”).

     The building containing the Leased Premises (hereinafter referred to as the “Building”) is
situated on the emplacement described in Schedule “B” hereto attached.

     Landlord will within thirty (30) days after the occupation of the ‘Leased Premises by the
Tenant, furnish the latter with a certificate of its architect attesting to the area of the Leased
Premises. Said certificate shall be based on outside measurements and shall be final and binding
upon the parties hereto.

	2.	 	TERM OF LEASE

     The Term of this Lease shall commence on August 1, 1994 and shall terminate on the last day
of July 1999 unless sooner terminated under the provisions hereof (hereinafter referred to as the
“Term”).

	3.	 	USE OF PROPERTY

     Tenant covenants that the Leased Premises shall be used solely for the purpose of office
space and warehousing and for no other purpose. Storage shall be permitted outside the Leased
Premises on the Thirty-five thousand (35,000) square feet of yard space on the south side of the
Leased Premises during the Term.

 

2

Notwithstanding the foregoing, Landlord shall have the right to reclaim the yard space without
financial penalty on thirty (30) days written notice to the Tenant of its need for the yard space.
All such storage shall be in conformity with municipal regulations.

	4.	 	RENTAL ON NET RETURN BASIS

It is intended that the Base Rent provided for in this Lease shall be an absolute net return to
Landlord for the Term of this Lease, free of any and all costs, expenses of any nature whatsoever,
taxes and charges with respect to the Leased Premises, other than any income or profit taxes which
may be levied against Landlord and any interest or amortization charges of Landlord in respect of
any hypothecs and except as otherwise herein stipulated.

	5.	 	BASE RENT

     Subject to and under reserve of the terms and conditions contained in Article 46.3 and
Schedule D hereof, Tenant covenants and agrees to pay to Landlord in lawful money of Canada
without deduction, abatement or set off, an annual Base Rent as follows:

	 	a)	 	During the first three (3) years of the Term a sum of Three hundred fifteen
thousand dollars ($315,000.00) payable in equal consecutive monthly installments of
Twenty-six thousand two hundred and fifty dollars ($26,250.00) each;
	 
	 	b)	 	During the last two (2) years of the Term a sum of Three hundred
thirty-seven thousand five hundred dollars ($337,500.00) payable in equal consecutive
monthly installments of Twenty-eight thousand one hundred twenty-five dollars
($28,125.00) each, the whole without deduction, abatement or set-off and payable in
advance on the first (1st) day of each month during the Term, with the applicable
Goods and Services Taxes and Québec Sales Taxes and any other similar taxes which may
be levied in the future by any governmental authority (hereinafter referred to as the
“Base Rent”).

     Such Base Rent has been calculated on an area of Ninety thousand (90,000) square feet which
area the parties irrevocably agree to use for the calculation of Base Rent.

     The Base Rent and other charges as herein provided shall be paid to Landlord and/or its
nominee at the office of the Landlord, 7077 ave. du Parc, Suite 600, Montréal, Québec H3N 1X7, or
at such other place in Canada as shall be designated by Landlord in writing to Tenant.

     Should the Tenant continue to occupy the Leased Premises after the expiry of the Term without
a written agreement, there shall be no tacit renewal and the Tenant shall pay the Landlord Base
Rent and other charges for the period of occupancy as set out in this Lease plus fifty percent
(50%) thereof, without prejudice to such further damage claims as may be available to the Landlord
against the Tenant. However, the Tenant is not to have the right to such occupancy beyond the
expiry of the Term.

	6.	 	ADDITIONAL RENTAL

Subject to and under reserve of the terms and conditions contained in Article 46.3 and Schedule D
hereof and without limiting the obligations of Tenant, the Tenant shall pay its

 

3

proportionate share of the following items, which Proportionate Share is the product of the
fraction of which the area of the Leased Premises is the numerator and the total Leasable area of
the Building is the Denominator (hereinafter referred to as the “Proportionate Share”):

               a) Taxes

Within thirty (30) days of receipt by Tenant of proof of payment by the Landlord and a written
statement of the taxes set out in this paragraph the Tenant will in each and every year during the
term of this Lease pay to the Landlord, whether they be special or general, its Proportionate
Share of all property taxes, municipal taxes, school taxes, surtax on non-residential immoveables,
ecclesiastical taxes, rates including local improvement rates, duties and assessments and any tax
on capital pertaining to the Leased Premises that may be levied, rated, charged or assessed
against the Building and/or all equipment and facilities thereon or therein, and/or the land and
appurtenant land on which the Building is situated and/or any property on or in the Building owned
or brought thereon or therein by Landlord or Tenant, and their respective officers, agents,
employees, servants, visitors or licencees and/or Tenant in respect thereof, whether such taxes,
rates, duties or assessments are charged by a municipal, school or any other body of competent
jurisdiction. Upon payment by the Tenant as provided for in this paragraph, the Landlord will pay
and will indemnify and keep indemnified the Tenant from and against any and every tax, rate,
charge, duty and assessment referred to in this paragraph with respect to the Building and the
lands appurtenant thereto.

The Tenant shall be solely responsible to pay its share of municipal surtaxes on
non-residential immoveables that may be levied, charged, rated or assessed against the Building.
Landlord may from time to time, or at any time, in its reasonable discretion revise its method
for charging for such surtax, based either on the proportion allotted by the Municipality or
based on the Tenant’s Proportionate Share.

The foregoing taxes in respect of the first and last years of the Term shall be adjusted between
Landlord and Tenant.

               b) Other Expenses

The Tenant shall pay its Proportionate Share of:

	 	i)	 	the expense required to keep the exterior of the Leased Premises in good
order and condition and to keep the sidewalks, curbs, lawns and grounds in and about
the Leased Premises in good condition, clean and free of snow and ice and properly
landscaped.
	 
	 	ii)	 	the reasonable cost of all goods and services furnished, employed or utilized
in the operation, administration, maintenance, repair, supervision and management of
the Building and of the common areas;
	 
	 	iii)	 	the salaries, wages and costs related to fringe benefits and pension plan
benefits of the employees of the Landlord exclusively engaged in the operation,
administration, maintenance, repair, supervision and management of the Building;

 

4

	 	iv)	 	the reasonable cost of modifications, improvements and additions to the
Building and to the equipment thereof as well as the equipment or specialized services
necessary for the establishment, in the Building, of energy conservation measures,
when, in the opinion of the Landlord and the Tenant, these costs are likely to reduce
the operating expenses of the Building or improve the welfare or the security of the
tenants of the Building or when the foregoing are required by law.
	 
	 	v)	 	the capital cost, reasonably calculated according to a method of depreciation
reasonably determined by the Landlord, of work or of equipment required for the
operation, administration, maintenance, repair, supervision, management, modification
or improvement of the Building or the common areas or of energy conservation measures
as well as interest as hereinafter stipulated.
	 
	 	vi)	 	the reasonable expenses incurred to redo, improve, modify or increase the
insulation of the Building when, in the opinion of an expert in such matters, such
expenses may reduce the electricity costs or gas consumed in the Leased Premises;
	 
	 	vii)	 	the sprinkler maintenance and its monitoring alarm connection with a central
security company;
	 
	 	viii)	 	the reasonable cost of works, replacements or of repairs made to the Building,
except those relating to the structure and roof of the Building which shall be paid by
the Landlord, unless caused by the fault or negligence of the Tenant or by those for
whom it is in law responsible. The term “structure” means the foundations and the frame
of the Building. Tenant shall, also, not be responsible for any repairs of capital
nature to the Building which for the purpose hereof shall be repairs of a replacement
nature which give significant added value to the Building.
	 
	 	ix)	 	Insurance

During the whole of the Term, the Tenant will pay its Proportionate Share of all premiums
with respect to insurance to be placed by Landlord on the Building and described as follows:

	 	i)	 	Fire, Extended Coverage and Malicious Damage insurance for the full
replacement cost of the Building, improvements and equipment and in addition upon the
full annual rental income thereof.
	 
	 	ii)	 	Broad boiler and Unfired Pressure Vessels insurance, including Repair or
Replacement and rental income coverages in an amount reasonably satisfactory to
Landlord;
	 
	 	iii)	 	such other insurance as institutional lenders may require or as it may be or
may become customary for owners of property to carry as respects loss of or damage to
the Leased Premises or liability arising therefrom, specifically including any
insurance required by reason of the introduction by or on behalf of Tenant, and/or its
sub-tenants of any radioactive materials or substances into the Leased Premises.

 

5

All policies of insurance shall contain a provision of cross liability or severability of
interest as between the Landlord and the Tenant. All other policies referred to above
shall contain a waiver of subrogation rights which the Landlord’s insurers may have against
the Tenant, the Tenant’s insurers and persons under the Tenant’s care and control. The
Landlord hereby releases and waives any and all claims against the Tenant and those for
whom the Tenant is in law responsible with respect to the occurrences insured against by
the Landlord hereunder. The Landlord shall from time to time furnish the Tenant with
certified copies of all insurance policies and the renewals thereof upon request.

Tenant will pay the amount of any increase in insurance premiums on the whole of the
Building of which the Leased Premises form part if such increase is caused by Tenant’s
operations in the Leased Premises, or anything brought therein by Tenant.

The following shall not be included in the operating expenses, such cost to be assumed by
the Landlord exclusively:

	 	i)	 	any repairs to the roof or any structural repairs to the Building;
	 
	 	ii)	 	any repairs of a capital nature to the Building and the land;
	 
	 	iii)	 	any modification or improvement to the Building and the land unless same has
been previously approved by the Tenant it being understood that the Tenant may
withhold such approval without necessity of justification, and the whole subject to
article 6 (v), 6 (vii) and 6 (ix) hereof.
	 
	 	iv)	 	any repairs to the tile floor of the warehouse area;

     Items due pursuant to this article 6 hereunder shall also be paid to Landlord by Tenant
Thirty (30) days after receipt of Landlord’s invoice for same.

	7.	 	METHOD OF PAYMENT

     Notwithstanding anything to the contrary hereinabove contained, the Landlord may, at its
reasonable option, instead of billing individually for taxes and other items to be paid by the
Tenant, as hereinabove stipulated, estimate the amounts payable by the Tenant under the provisions
of this Lease for such periods as the Landlord may determine, the Tenant hereby agreeing to pay to
the Landlord such amounts in monthly instalments in advance during said period together with the
rental payments as hereinabove provided. At the expiration of the period of which such estimated
payments have been made, the Landlord shall furnish to the Tenant a certified statement showing in
reasonable details the actual amount required to be paid under the provisions hereof. If the
amounts actually due by the Tenant for such period exceed the amount so collected by the Landlord,
the Tenant shall pay same within thirty (30) days after receipt of billings therefore, and if the
amounts due by the Tenant for the said period are less than the amount actually collected by the
Landlord, then the Landlord shall credit same to the next ensuing payments becoming due by the
Tenant to the Landlord.

 

6

     All sums due by the Tenant to the Landlord in virtue of this Lease will be considered as rent
for all legal purpose.

	 	8.	 	DIRECT PAYMENTS

            a) PAYMENT FOR BUSINESS TAX, LICENCES ETC.

Tenant shall be responsible for and pay all business taxes, and similar taxes levied with
respect to the Leased Premises as well as the costs of any licences and permits required by
the Tenant.

	 	 	 	b) INSURANCE

     Tenant covenants that nothing will be done or omitted to be done whereby any policy
shall be cancelled or the Leased Premises rendered uninsurable.

     Throughout the term of this Lease and any renewal thereof, the Tenant shall take out
and keep in force:

	 	(i)	 	comprehensive general liability insurance with respect to the
business carried on in or from the Leased Premises and the use and occupancy
thereof for bodily injury and death and damage to the property of others in an
amount of at least two million dollars ($2,000,000.00) for each occurrence or
such greater amount as the Landlord may from time to time reasonably require;
	 
	 	(ii)	 	all risks insurance including the perils of fire, extended
coverage, leakage from sprinkler and other fire protective devices, earthquake,
collapse and flood in respect to furniture, equipment, inventory and
stock-in-trade, fixtures and leasehold improvements located within the Leased
Premises and such other property located in or forming part of the Leased
Premises, including all mechanical or electrical systems (or portions thereof)
installed by the Tenant in the Leased Premises, the whole for the full
replacement cost (without depreciation) in each such instance.
	 
	 	(iii)	 	if any boiler or pressure vessel is operated in the Leased Premises, boiler and
pressure vessel insurance with respect thereto;
	 
	 	(iv)	 	glass and plate-glass insurance to the full replacement cost
thereof;
	 
	 	(v)	 	such additional insurance as the Landlord, acting reasonably,
may from time to time require.

                                                     All policies of insurance shall provide that they will not be cancelled or permitted to lapse
unless the insurer notifies the Landlord in writing at least thirty (30) days prior to the date of
cancellation or lapse. Each such policy shall name the Landlord and any other party reasonably
required by the Landlord as an additional insured as its interest may appear. Each comprehensive
general liability insurance policy will contain a provision of cross-liability or severability of
interest as between the Landlord and the Tenant. All other policies referred to above shall contain
a waiver

 

7

of subrogation rights which the Tenant’s insurers may have against the Landlord, the
Landlord’s insurers and persons under the Landlord’s care and control. The Tenant hereby
releases and waives any and all claims against the Landlord and those for whom the
Landlord is in law responsible with respect to occurrences required to be insured against
by the Tenant hereunder. The Tenant shall from time to time furnish the Landlord with
certificates of insurance policies and the renewals thereof.

     The Landlord hereby releases and waives any and all claims against the Tenant and
those for whom the Tenant is in law responsible with respect to occurrences required to be
insured against by the Landlord hereunder.

     Should the Tenant fail to take out or keep in force such insurance, the Landlord will
have the right to do so and to pay the premiums therefore and in such event the Tenant
shall repay to the Landlord the amount paid as premiums as additional rent within thirty
(30) days after receipt of invoice.

	 	c)	 	UTILITIES

     Subject to and under reserve of the terms and conditions contained in Schedule D
hereof, the Tenant shall pay for the consumption in the Leased Premises of electricity,
water, heat, gas and for telephone, pest control and garbage removal services, and all
public utilities with respect to the Leased Premises, directly to the utility companies
levying said charges.

     The Tenant shall, at its cost, suitably heat the Leased Premises during the customary
heating season. The Landlord represents and warrants to the Tenant that all heating
equipment presently located in the Leased Premises is in good working order during the Term
subject to regular maintenance thereof.

     Notwithstanding anything contained in this article 8, should any of the expenses presently
billed to the Tenant be invoiced to the Landlord in future the Tenant agrees to immediately
reimburse the Landlord for these expenses.

	9.	 	FAILURE OF TENANT TO PERFORM

     If Tenant fails to pay any taxes, rates, insurance premiums, charges or debts which it owes or
has herein covenanted to pay, Landlord may pay the same and shall be entitled to charge the sums so
paid to Tenant who shall pay them within thirty (30) days after receipt of invoice and Landlord. In
addition to any other rights, Landlord shall have the same remedies and may take the same steps for
the recovery of all such sums as it might have and take for the recovery of rent in arrears under
the terms of this Lease; all arrears of rent and any monies paid to Landlord hereunder shall bear
interest from the date of default at the rate equal to that charged by the Toronto Dominion Bank in
Montreal to its most credit worthy commercial customers plus five percent (5%) per annum.

	10.	 	DEFAULT

     Without prejudice to all of the rights and recourses available to the Landlord, the following
shall be considered defaults under the terms of this Lease:

 

8

	 	(a)	 	in the event that Tenant shall be in default under any provision of this
Lease providing for the payment of Base Rent or additional rent or any other
charges, after fifteen (15) days written notice to the Tenant from the Landlord;
	 
	 	(b)	 	in the event that Tenant shall be adjudicated a bankrupt or make any
general assignment for the benefit of creditors, or take, or attempt to take, the
benefit of any insolvency or Bankruptcy Act, or if a petition in bankruptcy shall be
maintained against Tenant, or if a receiver or trustee be appointed to the property
of Tenant, or any part thereof, or any execution be issued pursuant to a judgment,
rendered against Tenant or pursuant to this Lease in which such event shall not be
discharged within thirty (30) days;
	 
	 	(c)	 	in the event that Tenant shall be in default in observing any covenant
herein contained and/or performing any of its obligations contained in this Lease
(other than a default in the payment of rent or additional rent) and such default
shall continue for fifteen (15) days after written notice specifying such default
shall have been given to Tenant by Landlord and provided Tenant has not started to
remedy such default and to diligently pursue such remedial action within said delay.

     In the event of any default under the terms of this Lease, the Landlord without prejudice to
any rights or remedies it may have hereunder or by law shall have the right to terminate this
Lease forthwith upon written notice given to Tenant by Landlord. Tenant upon such a termination of
this Lease shall thereupon quit and surrender the Leased Premises to Landlord and Landlord, its
agents and servants may immediately or at any time the re-enter the Leased Premises and dispossess
Tenant, and remove any and all persons and any or all property therefrom whether by summary
dispossession proceedings or by any suitable action or proceeding at law, or by force or otherwise
without being liable to prosecution or damages therefore.

     In case of any termination, or in case Tenant, in the absence of such termination, shall be
dispossessed by or at the instance of Landlord in any lawful manner, whether by force or
otherwise, Base Rent and Additional Rent for the then current month and for the next six (6)
months succeeding the date of such termination or dispossession shall immediately become due and
payable (as accelerated rent) and this Lease shall immediately, at the reasonable option of the
Landlord, become forfeited and terminated, and the Landlord may, without notice of any form of
legal process, forthwith re-enter upon and take possession of the Leased Premises and remove the
Tenant’s effects therefrom, the whole without prejudice to and under reserve of all of the rights
and recourses of the Landlord to claim any and all losses and damages sustained by the Landlord by
reason of and arising from any default of the Tenant.

     Landlord will use its best efforts to mitigate damages in the event of a default by the
Tenant.

	11.	 	SIGNS

     Landlord shall have the right at all times during the term of this Lease to place upon the Leased
Premises a notice of reasonable dimensions and reasonably placed, so as not to interfere with the
business of Tenant, stating that

 

9

the Building is for sale and for six (6) months prior to the termination of this Lease, Landlord
shall have the right to place upon the Leased Premises a similar notice that the Leased Premises
are for rent and Tenant will not remove such notice or knowingly permit same to be removed.

     Tenant shall have the right to place any signs, advertisements, notices or posters inside or
outside the Leased Premises for the purposes of Tenant’s operations in and from the Leased
Premises, the whole subject to Landlord’s consent which consent shall not be unreasonably withheld
or delayed.

     All such signs shall comply with the lawful requirements of municipal and governmental
authorities.

     Neither the Tenant or anyone other than the Landlord will have the right to place any signs
for rent, sublet, etc. on the outside or inside of the Leased Premises or on any adjacent building
or property belonging to the Landlord.

     The Tenant shall have the right at any time to list the Leased Premises or any part thereof
with any broker or agent for purposes of subleasing same.

	12.	 	EXHIBITION OF PREMISES

     Landlord shall have the right, at any time upon twenty-four (24) hour notice to the Tenant,
during business hours, to exhibit the Leased Premises to any prospective lender or purchaser or to
any prospective Tenant during the last Nine (9) months of the Term.

	13.	 	MAINTENANCE AND REPAIRS

Notwithstanding the provisions of the Civil code of Québec, the Tenant, at its own expense, shall
operate, maintain and keep the Leased Premises including all facilities, equipment and services,
both inside and outside, available to the Tenant exclusively, in such good order and condition, as
they would be kept by a careful owner, and shall promptly , if known, make all needed repairs and
replacements to the Leased Premises, which a careful owner would make, including, without
limitations, the water, gas, drain and sewer connections, pipes and mains, electrical wiring,
water closets, sinks and accessories thereof, and all equipment belonging to or connected with the
Leased Premises or used in its operation, including the heating and air conditioning systems
therein.

     The Tenant undertakes to obtain and pay for such maintenance, repair, and replacement service
and/or insurance contracts with respect to the foregoing; the whole without prejudice to the other
obligations of the Tenant with respect to same. The Tenant shall forward, upon request, to the
Landlord copies of such contracts and evidence of renewals thereof during the continuance of this
Lease.

Notwithstanding the other provisions of this article, Tenant shall not be responsible for the
execution of and the payment of any repairs to the roof, any structural repairs, any repairs of a
capital nature and any repair to the tile floors in the warehouse area unless caused by fault of
the Tenant or by those for whom it is in law responsible.

 

10

	14.	 	SUBLETTING AND ASSIGNMENT

     Subject to the provisions hereinafter detailed, the Tenant shall have the right to sublet the
Leased Premises or assign its rights in the present Lease with the consent of the Landlord which
consent shall not be unreasonably withheld or delayed and provided that the Leased Premises are
utilized only for the purposes stipulated in article 3 hereof. Notwithstanding such subletting and
assignment, the Tenant shall remain solidarily liable with such sublessee or assignee for the
performance of all the terms and conditions of the present Lease.

     It is understood and agreed that notwithstanding the terms of Article 1873 of the civil code
of Québec any such assignment consented to by the Landlord shall in no way acquit the Tenant of its
obligations stipulated in this Lease.

     Sales aggregating fifty percent (50%) or more of the capital or issued voting stock of Tenant
(if Tenant is a non-public corporation) or transfers aggregating fifty percent (50%) or more of
Tenant’s partnership shall be deemed to be an assignment of this Lease. As used in the foregoing
sentence, the word “Tenant” shall also mean any entity which has guaranteed Tenant’s obligations
under this Lease and the prohibition hereof shall be applicable to any sales or transfers of the
stock or partnership interest of said guarantor.

     Notwithstanding anything to the contrary in this Section 14, so long as Wesco Distribution
Inc. is Tenant under this Lease, is not in default of any of the terms and conditions hereof, and
has fully and faithfully performed all of the terms and conditions of the Lease, Tenant shall have
the right to assign this Lease without Landlord’s consent, at any time during the Term of this
Lease, to the purchaser in connection with the sale by Tenant of all or substantially all of its
assets, provided: (i) the net assets of the assignee corporation shall not be less than the net
assets of Tenant at the time of the signing of this Lease; (ii) the assignee corporation provides
Landlord with audited financial statements certifying such net assets; (iii) such assignment does
not adversely affect the quality and type of business operation which Tenant has conducted
theretofore; and (iv) such assignee shall assume in writing, on a form acceptable to Landlord, all
of Tenant’s obligations hereunder and Tenant shall provide Landlord with a copy of such
assumption/assignment document.

     Tenant shall remain solidarily liable with any such assignee.

     Tenant shall pay Landlord a fee of Three hundred dollars($300.00) in connection with the
sublease or assignment hereunder.

	15.	 	INSPECTION AND REPAIR

     Landlord and its agents shall have the right, at all reasonable times and upon prior
reasonable notice save in the event of an emergency during the Term of this Lease to enter the
Leased Premises to examine the condition thereof and to ascertain whether Tenant is performing its
obligations hereunder, and Tenant shall make any repairs which Landlord deems reasonably necessary
as a result of such examination through professional tradesmen approved by the Landlord which
approval may not be unreasonably withheld. If Tenant fails to

 

11

make any such repairs within a maximum of Ten (10) days or less if Landlord deems reasonably
necessary after notice from Landlord requesting Tenant to do so, provided that such repairs may
reasonably be made within the said period, or Tenant has not diligently commenced to pursue same,
Landlord may, without prejudice to any other rights or remedies it may have, make such repairs and
charge the cost thereof to Tenant. Nothing in this Clause shall be construed to obligate or
require Landlord to make any repairs but Landlord shall have the right at any time to make any
emergency repairs without notice to Tenant and charge the reasonable cost thereof to Tenant. Any
costs chargeable to Tenant hereunder shall be payable within thirty (30) days after receipt of
invoice as additional rent and shall bear interest at the rate herein above mentioned.

	16.	 	DESTRUCTION OF PREMISES

     Provided, and it is hereby expressly agreed that if and whenever during the Term hereby
leased, the Building or the portion of the Building hereby leased shall be destroyed or damaged
by fire, lightning or tempest, or any of the other perils insured against under the provisions
hereunder, then and in every such event:

	 	(a)	 	If the damage or destruction is such that the portion of the Building hereby
leased, or the Building, is rendered wholly or partially unfit for occupancy or it is
impossible or unsafe to use and occupy it and if in either event the damage, in the
reasonable opinion of Landlord’s architect to be given to Tenant within thirty (30)
days of the happening of such damage or destruction, cannot be repaired with
reasonable diligence within one hundred and twenty (120) days from the happening of
such damage or destruction, then either Landlord or Tenant may within Five (5) days
next succeeding the giving of the Landlord’s architect’s opinion as aforesaid,
terminate this Lease by giving to the other notice in writing of such termination, in
which event this Lease and the term hereby leased shall cease and be at an end as of
the date of such destruction or damage and the rent and all other payments for which
Tenant is liable under the terms of this Lease shall be apportioned and paid in full
to the date of such destruction or damage; in the event that neither Landlord or
Tenant so terminate this Lease, the Landlord shall repair the said Building with all
reasonable speed and the rent hereby reserved shall abate from the date of the
happening of the damage until the damage shall be made good to the extent of enabling
Tenant to use and occupy the Leased Premises in Tenant’s reasonable opinion;
	 
	 	b)	 	If the damage be such that the portion of the Building hereby leased is wholly
unfit for occupancy, or if it is impossible or unsafe to use or occupy it but if in
either event the damage, in the reasonable opinion of Landlord’s architect, to be
given to Tenant within thirty (30) days from the happening of such damage, can be
repaired with reasonable diligence within one hundred and twenty (120) days of the
happening of such damage, then the rent hereby reserved shall abate from the date of
the happening of such damage until the damage shall be made good to the extent of
enabling Tenant to use and occupy the Leased Premises and Landlord shall repair the
damage with all reasonable speed;
	 
	 	c)	 	If, in the opinion of the Landlord’s architect, the damage can be made good, as
aforesaid, within one hundred and twenty (120) days of the happening of such

 

12

	 	 	 	destruction or damage and the damage is such that the portion of the Building
leased is capable of being partially used for the purposes for which it is hereby
leased, then until such damage has been repaired the rent shall abate in the
proportion that the part of the portion of the Building leased is rendered unfit
for occupancy bears to the whole of the said portion of the Building leased and
Landlord shall repair the damage with all reasonable speed.

     Should any mortgage creditor who may have an interest in any insurance proceeds refuse to
permit the use of such proceeds for the repair, replacement, rebuilding and/or restoration as
hereinabove provided and for the payment of amounts expended for such purposes, then the
Landlord’s obligation to repair or rebuild as provided for hereinabove shall cease and shall be
null and void and the Lease shall be cancelled effective as of the date of the damage, unless, the
Landlord, at the Landlord’s sole option, chooses to repair or rebuild.

	17.	 	IMPROVEMENTS AND ALTERATIONS

     The Tenant shall not make any alterations or repairs to the Leased Premises, or any other
part of the Building, or wires, pipes or other services to be run into the Building without first
obtaining the written consent of the Landlord, which consent shall not be unreasonably withheld or
delayed. Any amounts owing under the terms of this Article shall be payable on demand as
additional rent.

     However in the event that the Landlord shall grant permission to the Tenant to execute the
said work for its own account (which permission shall be reasonably determined by the Landlord),
then the said work shall be subject to the following conditions:

	(i)	 	Tenant shall furnish to Landlord plans and specifications showing in reasonably complete
detail the work proposed to be carried out and the estimated cost thereof and Landlord shall
approve or reject such plans and specifications within fifteen (15) days after receipt of the
same. If such plans and specifications are approved, all work shall be carried out in
compliance therewith.
	 
	(ii)	 	The value of the Leased Premises shall not, as a result of any work proposed to be carried
out by Tenant, be less than the value of the Leased Premises before the commencement of such
work and Landlord shall be the sole judge of such value.
	 
	(iii)	 	All work shall be carried out with reasonable dispatch and in a good workmanlike manner and
in compliance with all applicable permits, authorizations and building and zoning by-laws and
with all regulations and requirements of all competent authorities having jurisdiction over
the Leased Premises.
	 
	(iv)	 	The Leased Premises and the Building shall at all times be free of all legal hypothecs
(construction) and any charges whatsoever.
	 
	(v)	 	If the cost of any work shall be in excess of Five thousand dollars ($5,000.00) as reasonably
estimated by Tenant, Landlord may require Tenant to furnish security satisfactory to Landlord
guaranteeing the completion of the work and the

 

13

	 	 	payment of the cost thereof free and clear of all privileges and charges of
any nature whatsoever.
	 
	(vi)	 	Tenant shall maintain Workmen’s Compensation insurance covering all persons employed in
connection with the work and shall produce evidence of such insurance to Landlord and shall
also maintain such general liability insurance for the protection of Landlord and Tenant as
Landlord may require.

     All work whether executed by the Landlord or the Tenant, whether structural or not, when
completed, shall be comprised in, and form part of the Leased Premises and shall be subject to all
the provisions of this Lease and Tenant shall not have any right to claim compensation therefore.
At the expiration of this Lease, Tenant shall be required to repair any damage to the Leased
Premises caused by removing any of its personal property, reasonable wear and tear and casualty
damage excepted.

	18.	 	EXPIRATION OF LEASE

     The Tenant shall at the expiration or earlier termination of the term of this Lease peaceably
surrender and yield up unto the Landlord the Leased Premises together with all buildings,
alterations, replacements, additions, erections, and improvements (Leasehold or otherwise),
including, but not limited to electrical installations, electric or other fixtures, offices,
partitions, divisions, air-conditioning and heating equipment, panelling, built-in furniture,
wall-to-wall carpets, carpets or other floor coverings, attached cabinets, or other attached
equipment, wiring, switches, meters, meter boxes and transformers, which at any time during the
term hereof shall be placed, made, installed, fixed or attached therein or thereon by the Tenant,
in good repair and condition, subject to reasonable wear and tear only, and without any
compensation whatsoever being allowed to the Tenant for same.

     Tenant hereby renounces any right to terminate the Lease in accordance with the terms of
article 1605 of the Civil code of Québec.

	19.	 	COMPLIANCE WITH LAWS AND REGULATIONS

     The Tenant shall, at its own expense, promptly comply with the requirements of every
applicable statute, law and ordinance and with every applicable lawful regulation in relation to
its use or occupation of the Leased Premises or with respect to any equipment found therein or
with respect to any requirements of the Landlord’s insurers. The Landlord certifies and warrants
to the Tenant that the Leased Premises are in compliance with all applicable laws, ordinances,
rules, orders and regulations of any governmental authority or regulatory body with jurisdiction
thereof or any applicable insurance rating agency and that there is no pollutant or contaminants
in the Building or the land at the commencement of the Term of this Lease and that said Building
and land comply with the environmental laws, regulations and policies applicable thereto.

	20.	 	INDEMNIFICATION

     Except if caused directly by the negligence or negligent acts of the Landlord, its employees,
agents and invitees, the Landlord shall not be liable nor responsible in any way for any injury of
any nature whatsoever that may be suffered, or sustained by the

 

14

Tenant or any employee, agent or customer of the Tenant or any other person who may be upon the
Leased Premises or for any loss of or damages to any property belonging to the Tenant or to its
employees or to any other person `while such property is on the Leased Premises and in particular
(but without limiting the generality of the foregoing) the Landlord shall not be liable for any
damage or damages of any nature whatsoever to any such property caused by the failure to supply
adequate drainage, snow or ice removal, or by reason of the interruption of any public utility or
service or in the event of steam, water, rain or snow which may leak into, issue, or flow from any
part of the Building or from the water, steam, sprinkler, or drainage pipes or plumbing works of
the same, or from any other place or quarter or for any damage caused by anything done or omitted
by any Tenant, but the Landlord shall use all reasonable diligence to remedy such condition,
failure or interruption of the service when not directly or indirectly attributable to the Tenant,
after notice of same, when it is within its power and obligation to do so. Nor shall the Tenant be
entitled to any abatement of Base Rent or Additional Rent in respect of any such condition,
failure or interruption of service.

     The Tenant will indemnify and save harmless the Landlord from and against all fines,
liability, damages, suits, claims, demands and actions of any kind or nature which the Landlord
shall or may become liable for or suffer by reason of any breach, violation or non-performance by
the Tenant of any covenant, term or provision hereof or by reason of any injury (including death
resulting at any time therefrom) or damage to property occasioned to or suffered by any person or
persons including the Landlord by reason of any such breach, violation or non-performance or of
any wrongful act, neglect or default on the part of the Tenant or any of its employees, officers,
agents, or invitees.

	21.	 	ASSIGNMENT BY LANDLORD AND SUBORDINATION

     Landlord declares that it may assign its rights under this Lease to a lending institution as
collateral security for a loan made to Landlord and in the event that such an assignment is given
and executed by Landlord and notification thereof is given to Tenant by or on behalf of Landlord,
it is expressly agreed between Landlord and Tenant that this Lease shall not be cancelled or
modified for any reason whatsoever without the consent in writing of such lending institution.

     Tenant hereby covenants and agrees that it will, if and whenever reasonably required by
Landlord and at Landlord’s expense, consent to and become a party to any instrument or instruments
permitting the Landlord to hypothecate or otherwise encumber the Building of which the Leased
Premises form part and to subordinate this Lease to any hypothec or security document, provided
Tenant receives satisfactory confirmation of the full respect of its rights under this Lease by
anyone benefitting from said subordination.

	22.	 	EXPROPRIATION

     If the whole or any part of the Building shall be expropriated or taken in any manner for any
public or quasi-public use or purpose, Landlord may at its option, terminate this Lease by giving
notice in writing to Tenant that the term hereof shall expire upon the day when possession is
required for such purpose, and in the event of such expiration, Landlord shall have no liability
to Tenant of any nature, without prejudice to Tenant’s claim against the expropriating authority.

 

15

	23.	 	EXTENSIONS

     The Landlord shall have the right at its option and from time to time during the Lease Term to
make extensions and/or additions and/or to add one (1) or more additional floors or storeys onto
all or part of the Building comprising the ‘Leased Premises.

     Notwithstanding anything to the contrary in the foregoing, Landlord shall use its best efforts
not to interfere with access or visibility of the Leased Premises during the construction of any
such extensions or additions.

     In the event the Landlord exercises said option, the Tenant agrees to permit the Landlord to
install and/or extend and/or add the required improvements including supports, beams, wiring,
piping, stairways, elevators, ramps, vents, ducts, shafts and openings and the like and to close
all windows and openings which may be required to be closed as a consequence of such construction,
the whole without any claims for disturbance and/or inconveniences and the like which may be caused
to the Tenant, provided always that the required work is carried out within a reasonable delay and
that this article shall not absolve or release the Landlord from liability in respect for damages
or any loss caused to the Tenant as a consequence of any wilful act of the Landlord, its employees
or representatives as a consequence of said additions and/or extensions and provided that the
Tenant shall be granted a proportionate reduction in rent as compensation for loss of use of its
inside floor space (during the period and for the area of loss of use only). All of the foregoing
without any other claims by the Tenant against the Landlord for damages and loss of use.

	24.	 	PUBLICATION

     The Tenant shall have the right to publish the Lease, at its cost, which Summary shall not
contain any financial information whatsoever. Tenant shall, prior to publication, furnish Landlord
with a draft copy of the text of said Summary, for its approval, which approval shall not be
unreasonably withheld.

     In addition, Tenant shall, at its own cost, at the expiration of the Term, radiate the
publication of the Lease from the Land Register.

	25.	 	FLOOR LOADING

     Tenant shall not bring upon the Leased Premises or any part thereof any machinery, equipment,
article or thing that by reason of its weight or size might damage the Leased Premises and will not
at any time overload the floors of the Leased Premises and if any damage is caused to the Leased
Premises by any machinery, equipment, article or thing or by overloading or by any act, neglect or
misuse on the part of Tenant or any of its invitees, agents or employees or any person having
business with Tenant, Tenant will forthwith pay to Landlord any damages incurred by the latter.

	26.	 	PERMITS, etc.

Tenant declares that it has and/or will obtain all necessary permits or licenses in connection with
the operation of its business in the Leased Premises and further recognizes that it has no claim
against the Landlord with respect to the
issuance of such permits or licenses.

 

16

	27.	 	INTERIOR AND EXTERIOR AREAS

     The keeping of pets on the Leased Premises is prohibited.

     The Tenant shall not use any part-of the exterior parking and loading areas or any other
areas outside the Leased Premises for any purpose other than parking, shipping or receiving in the
areas designated by the Landlord for same except as defined in Section 3.

	28.	 	DISTURBANCE

     Notwithstanding anything to the contrary stipulated in the present Lease, the Tenant will not
hold the Landlord in any way responsible for any damages or annoyance which the Tenant may sustain
through the fault of any tenant who occupies any premises adjacent to, near, above or under the
Leased Premises or from any person the Tenant allows to use or have access to the Leased Premises,
and renounces any claims it may have against the Landlord pursuant to Articles 1859 and 1861 of
the Civil Code of Québec.

	29.	 	ODOURS

     The Tenant warrants that no noxious odours or dust or noise will emanate from the Leased
Premises as a result of the operations conducted by the Tenant therein. Accordingly, the Tenant
agrees that should such noxious odour, dust, or noise condition exist, it will at its own cost and
expense take such steps as may be necessary to rectify the same after written notice from the
Landlord. Should the Tenant fail to commence to do so within seven (7) days or less in an
emergency situation and complete the same within a reasonable time, the Landlord shall have the
right to take reasonable measures to correct the situation and the Landlord shall be entitled to
recover the cost plus fifteen percent (15%) administration thereof from the Tenant within thirty
(30) days of receipt of invoice. Such cost shall be considered as additional rental hereunder.

	30.	 	ENVIRONMENTAL MATTERS

     During the term hereof, Tenant obliges itself to forthwith take, at its cost, all necessary
precautions for the purposes of conforming with all laws, by-laws, ordinances and regulations of
federal, provincial and municipal authorities relating to environmental matters and more
specifically, but without restricting the generality of the foregoing, those relating to the
protection of water, air and soil from pollution or contamination of any form whatsoever.

     Landlord warrants and declares that it has complied with all laws and regulations related to
environmental matters and that no toxic wastes or contaminants are to be found or stored in or
about the Leased Premises and shall indemnify and save Tenant harmless in connection with same.

     Notwithstanding anything herein contained and without restricting the generality of the
preceding paragraph, Tenant obliges itself to indemnify, exonerate and save the Landlord free and
harmless with respect to all claims, actions, suits for loss of life, personal and property
damages, or for any other losses or injuries which may result in whole or in part from the use,
fabrication or presence in the Leased Premises of any substance, product, or contaminant or the
exercise of any act or activity exposing the Landlord to a claim in connection with the foregoing
provided said substance, product or contaminant is found on the Leased Premises by reason of
Tenant’s fault or negligence or that of its employees, agents or invitees.

 

17

	31.	 	BROKERAGE COMMISSION

     As part of the consideration for the granting of this Lease, Landlord and Tenant mutually
represent and warrant to each other that no broker or agent negotiated or was instrumental in
negotiating or consummating this Lease other than Axxa Realties Inc. whose commission shall be
paid by Landlord. Any commissions due to another broker shall be paid by the party having retained
the services of said other broker.

	32.	 	LIQUIDATION SALES ETC.

     The Tenant undertakes not to carry out or permit a bankruptcy or liquidation sale or war
surplus goods, insurance salvage stock or auction in or from the Leased Premises. The Tenant
acknowledges that a violation of the present clause will cause irreparable injury to the Landlord
and consents to the Landlord enforcing the present clause by way of interim and interlocutory
injunction, without prejudice to such other rights as the Landlord may have under the
circumstances.

	33.	 	RULES AND REGULATIONS

     The rules and regulations attached hereto as Schedule “C” form part hereof and may be reasonably
ammended from time to time by the Landlord.

	34.	 	WAIVER

     The failure of Landlord or Tenant to insist upon the strict performance of any of the agreements,
terms, covenants and conditions hereof shall not be deemed a waiver of any rights or remedies that
Landlord or Tenant may have and shall not be deemed a waiver of any subsequent breach or default
in any such agreements, terms, covenants and conditions.

	35.	 	NOTICES AND DEMANDS

     Any notice or demand given by Landlord to Tenant shall be deemed to be duly given when served
upon Tenant personally or when mailed to Tenant by registered or certified mail or overnight
courrier, at the address of the Leased Premises.

     Tenant elects domicile at the Leased Premises for the purpose of service of all notices, writ
of summons or other legal documents in any suit at law, action or proceeding which Landlord may
take under this Lease.

     Any notice or demand given by Tenant to, Landlord shall be deemed to be duly given when
served upon Landlord personally, or when mailed to Landlord by registered or certified mail or
overnight courrier, at the address designated by Landlord for purposes of payment of the rent
hereunder.

     Copies of any notice or demand hereunder, other than legal proceedings, shall also be sent as
aforesaid to Tenant’s head office at:

Wesco Business Unit One

Riverfront Center

Pittsburg, PA, U.S.A. 15222

 

18

	36.	 	DESCRIPTIVE HEADINGS

     The descriptive headings of this Lease are inserted for convenience and reference only and
do riot constitute a part of this Lease.

	37.	 	INTERPRETATION

     This Lease shall be construed and governed by the laws of the Province of Québec. Should any
of the provisions of this Lease and/or its conditions be illegal or not enforceable under the
laws of the Province of Québec, same shall be considered severable and the Lease and its
conditions shall remain in force and be binding upon the parties as though the said provision or
provisions had never been included.

     Words importing the singular number only shall include the plural and vice-versa and words
importing the masculine gender shall include the feminine gender and words importing persons
shall include firms and unless the contrary intention appears the words “Landlord” and “Tenant”
wherever they appear in this Lease shall mean respectively “Landlord, its executors,
administrators, successors and/or assigns” and “Tenant”, its executors, administrators,
successors and/or assigns” and if there is more than one Tenant or Landlord or the Tenant or
Landlord is a female person or a corporation this Lease shall be read with all grammatical
changes appropriate by reason thereof; and all covenants, liabilities and obligations shall be
solidarity.

	38.	 	PRIOR AGREEMENTS

     The present Lease cancels and supersedes any and all prior leases and agreements, written or
otherwise, entered into by the Landlord and the Tenant regarding the Leased Premises. This Lease,
the schedules thereof and such rules and regulations as may be adopted and promulgated by the
Landlord from time to time constitute the entire agreement between the parties.

	39.	 	CONDITION OF LEASED PREMISES/LANDLORD’S WORK

     The Tenant declares having examined the Leased Premises and is satisfied and content
therewith, and agrees to take said Leased Premises in their present state and condition that is
“AS IS” with the exception of latent defects and the representations and warranties provided
herein, save that the Landlord shall execute, at its own cost, the work set forth in Schedule E
hereof in the Leased Premises, which shall be executed in accordance with Landlord’s present
existing building standards, the whole to be completed by September 16, 1994.

	40.	 	SECURITY DEPOSIT

     As additional security for the faithful and prompt performance of its obligations hereunder,
Tenant has concurrently with the execution of the Lease, paid to Landlord, the sum of Sixty-one
thousand nine hundred fifty-three dollars and three cents ($61,953.03) of which Twenty-six
thousand two hundred forty dollars ($26,240.00) plus G.S.T. and Q.S.T. thereof shall be

 

19

applied to Basic Rental due for the month of November 1994 and the balance to constitute a security
deposit which may be applied by Landlord for the purpose of curing any default or defaults of
Tenant hereunder, in which event, Tenant shall replenish the Security Deposit in full by promptly
paying to Landlord the amount so applied. If Tenant has not defaulted hereunder, and Landlord has
not applied the Security Deposit to cure a default, or Landlord has applied the Security Deposit to
a default and Tenant has replenished the same, then the Security Deposit or any remaining portion
thereof, shall be paid to Tenant after the termination of this Lease. The Security Deposit shall
not be deemed an advance payment of rent or a measure of Landlord’s damages for any default
hereunder by Tenant. During the Term, interest shall accrue on the Security Deposit or on any
balance thereof not credited to any Base Rent or applied to cure a default hereunder at a rate
equal to that paid by the Bank of Montreal on long term deposits as of September 16, 1994 and such
interest shall be remitted to the Tenant at the end of the Term.

	41.	 	SPECIAL CONDITIONS

41.1 RIGHT OF FIRST REFUSAL

Should the Landlord during the Term receive an offer satisfactory to it, to lease the land
adjacent to the Building and consisting of approximately Thirty-five thousand (35,000)
square feet, Landlord shall forthwith advise Tenant in writing of same, specifying all terms
and conditions contained in said offer and remitting a certified true copy of said offer to
Tenant. After receipt of the said notice, Tenant shall have a delay of thirty (30) days to
advise Landlord as to whether or not it is prepared to lease the Land in accordance with the
terms and conditions contained in the above mentioned notice. In the event the Tenant
accepts to lease within the said delay, it shall execute an Addendum to Lease for the Land,
within fifteen (15) days after reception by the Landlord of Tenant’s acceptance.

41.2 FLOOR TILES

Tenant shall not be responsible for any damages caused to the floor tiles in the warehouse
area.

41.3 FREE RENT

The Tenant shall not be obliged to pay any Base Rent for the first three (3) months of the
Term and for the last month thereof, however the Tenant shall be responsible for the
Additional Rent due to pursuant to Article 6 and the Direct Payments due pursuant to Article
9 hereof, subject to and under reserve of the terms and conditions contained in Schedule D.

 

20

	42.	 	LANGUAGE

     The parties hereto acknowledge and confirm that they have requested that the present agreement
and all notices and communication so contemplated hereby be drafted in the English Language.

Les parties aux présentes reconnaissent et confirment qu’ils ont exigé que la présente convention
ainsi que tous avis et communications y afférents soient rédigés dans la langue anglaise.

IN WITNESS WHEREOF, LANDLORD AND TENANT HAVE DULY EXECUTED AND SIGNED THESE PRESENTS ON THE DATE
AND PLACE HEREINAFTER MENTIONED.

     MONTREAL, this 3 day of September 1998.

	 	 	 	 	 	 	 
	 	 	ATLANTIC CONSTRUCTION INC.

(The “Landlord”)	 	 
	 
	 	 	 	 	 	 
	      [illegible]
 

Witness

	 	Per:
	 	/s/ David Rosenberg
 

David Rosenberg
	 	 
	 

	 	 	 	President	 	 
	 
	 	 	 	 	 	 
	     [illegible]
 

Witness

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	MONTREAL, this ______ day of ___________, 1998.	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WESCO DISTRIBUTION CANADA INC.

(the “Tenant”)	 	 
	 
	 	 	 	 	 	 
	     [illegible]
 

Witness

	 	Per:
	 	[illegible]
 

	 	 
	 
	 	 	 	 	 	 
	     [illegible]
 

Witness

	 	 	 	 	 	 

[Schedules have been omitted and will be provided upon request.]

 

RENEWAL AGREEMENT

	 	 	 
	BETWEEN:

	 	ATLANTIC CONSTRUCTION, INC, a body politic and corporate,
duly incorporated under the laws of the Province of Quebec,
having its head office in the City and District of Montreal,
Quebec, herein acting and represented by David Rosenberg,
President, hereunto duly authorized (hereinafter called the
“Lessor”)
	 
	 	 
	 

	 	PARTY OF THE FIRST PART;
	 
	 	 
	AND:

	 	WESCO DISTRIBUTION-CANADA INC., a body politic and
corporate, duly and legally incorporated under the laws of
the Province of Ontario, having its head office in the City
of Markham, herein acting and represented by Gary J.
Habsburg, Manager, Real Estate and Assistant Secretary
hereunto duly authorized (hereinafter called the “Lessee”)
	 
	 	 
	PARTY OF THE SECOND PART.

          WHEREAS on September 3, 1998, Lessee executed with the Lessor a Agreement of Lease
(hereinafter called the “Original Lease”) pursuant to which the Lessee leased premises located at
and bearing civic number 1330 TransCanada Highway, in the City of Dorval, Quebec (hereinafter
called the “Leased Premises”) measuring approximately Ninety Thousand gross square feet (90,000 sq.
ft.) for a term of FIVE (5) years commencing on August 1, 1994 and ending on July 31, 1999; and

          WHEREAS on September 18, 1999, the Lessee executed with the Lessor an Lease Renewal agreement
(hereinafter called the “Renewal”) pursuant to which the Lease was renewed and extended until July
31, 2004; and

          WHEREAS the Original Lease and the Renewal shall be hereinafter referred to collectively as
the “Lease”;

          WHEREAS the Lessor and the Lessee wish to renew the Lease upon the terms and conditions
hereinafter set forth in this renewal agreement (hereinafter called the “Renewal Agreement”).

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, AGREEMENTS, AND OBLIGATIONS OF THE
PARTIES HERETO, THE PARTIES HERETO DO HEREBY COVENANT AND AGREE AS FOLLOWS:

SECTION 1 RENEWAL TERM

          The Lessor and the Lessee do hereby renew the Lease for a period of Five (5) years commencing
on August 1st 2004 and ending on July 31st 2009 (hereinafter called the
“Renewal Term”).

SECTION 2 BASIC RENT

          During the Renewal Term, the Lessee covenants and agrees to pay to the Lessor an annual basic
rent of FOUR HUNDRED TWENTY-SEVEN THOUSAND, FIVE HUNDRED AND 00/100 ($427,500.00), payable in and
by even, equal, consecutive, monthly installments of THIRTY-FIVE
THOUSAND SIX HUNDRED TWENTY-FIVE DOLLARS AND 00/100 ($35,625.00) each, in advance in lawful money
of Canada, on the fifth (5th) day of each month, at the office of the Lessor, without
demand, deduction or compensation.

1

 

SECTION 3 LESSOR CONSTRUCTION

          The Lessor agrees to make certain renovations to the Leased Premises. Such renovations are
described on EXHIBIT “A” attached hereto and shall be completed by Lessor at Lessor’s sole cost and
expense prior to August 1, 2004.

SECTION 4 LESSOR REIMBURSEMENT

          During the Renewal Term, the Lessee covenants and agrees to pay to the Lessor reimbursement
for construction and a portion of broker fees of TWENTY THOUSAND AND 00/100 ($20,000.00), per year,
payable in and by even, equal, consecutive, monthly installments of ONE THOUSAND SIX HUNDRED
SIXTY-SIX DOLLARS AND 67/100 ($1,666.67) each, in advance in lawful money of Canada, on the fifth
(5th) day of each month, at the office of the Lessor, without demand, deduction or
compensation.

SECTION 5 LESSOR ROOF REIMBURSEMENT

          Between January 1, 2001 and the date hereof, Lessor has incurred costs in the amount of One
Hundred Twenty Thousand and 00/100 Dollars ($120,000.00) for roof repairs. Lessee acknowledges
that the Lessor has provided satisfactory accounting back up for such repairs. Lessor and Lessee
hereby confirm that part of the above-mentioned amount of One Hundred Twenty Thousand and 00/100
Dollars ($120,000.00) has been amortized over the current term of the Lease and agree that the
remainder will be amortized over the term of this Renewal Agreement. The total amount amortized
over the current term of the Lease is Twenty-Seven Thousand Dollars and 00/100 ($27,000.00) plus
applicable taxes. Lessor has invoiced Lessee for such amount, which is payable by the Lessee to
the Lessor. The remainder in the amount of Ninety-Three Thousand Dollars ($93,000.00) shall be
payable as provided in the following paragraph.

          During the Renewal Term, the Lessee covenants and agrees to pay the Lessor, as reimbursement
for unamortized roof repairs and maintenance, an amount of TWENTY THOUSAND AND 00/100 ($20,000.00)
per year, payable in and by even, equal, consecutive, monthly installments of ONE THOUSAND SIX
HUNDRED SIXTY-SIX DOLLARS AND 67/100 ($1,666.67) each, payable in and by even, equal, consecutive,
monthly installments of in advance in lawful money of Canada, on the fifth (5th) day of
each month, at the office of the Lessor, without demand, deduction or compensation. In the event
the Lessor does not incur additional costs for roof repairs and maintenance over the Renewal Term,
such payments shall cease upon reimbursement in full of the above-mentioned amount of Ninety-Three
Thousand Dollars ($93,000.00). In the event the Lessor does incur additional costs for roof
repairs and maintenance over the Renewal Term, such payments shall continue until such additional
costs, up to a maximum of Seven Thousand Dollars ($7,000.00), have been paid in full. In the
latter case, the Lessor shall provide Lessee with copies of paid invoices for any such future roof
repairs and maintenance.

SECTION 6 CAPITAL TAX (TAX ON CAPITAL)

          In reference to Clause 6(a) of the original lease. The Lessee shall pay to the Lessor a
maximum amount of TWELVE THOUSAND DOLLARS AND 00/100 ($12,000.00) per year for capital tax (tax on
capital). However, the amount paid to Lessor may be less, subject to what is charged to the Lessor.

SECTION
7 BROKERAGE

          Lessor and Lessee each represent that they have had no dealing with any real estate broker or
other person with respect to this Lease in any manner except with Fischer & Company, who shall be
compensated by Landlord in the amount of Fifty Thousand and 00/100 ($50,000.00). Said Brokerage fee
shall be paid prior to the commencement of this Lease Term. Lessor agrees to indemnify and hold
harmless Landlord from any claims for any fees or commissions that are payable to any other broker,
individual or entity asserting a claim for a fee or commission with respect to this Lease.

SECTION 8 LEASE

          Save and except as modified by this Renewal Agreement, the Renewal Agreement dated September
18, 1998 as Amended and the Original Lease shall remain in full force and effect.

2

 

SECTION 9 LANGUAGE

          The parties hereto acknowledge and confirm having requested that this agreement and all
notices and communications contemplated hereby be drafted in the English Language.

          Les parties aux presentes reconnaissent et confirment qu’elles ont exige que la presente
convention ainsi que tous avis et communications y affe rents soient redige’s en anglais.

SECTION 10 PREAMBLE

          The preamble shall form an integral part hereof

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE DULY EXECUTED THIS RENEWAL AGREEMENT.

Signed in the City of Montreal,

This 14th day of April 2004.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	ATLANTIC CONSTRUCTION, INC.	 	 
	 	 	 	 	Lessor	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Ilena W
 

Witness

	 	 	 	Per:
	 	/s/ David Rosenberg
 

David Rosenberg
	 	 

Signed in the City of Pittsburgh, PA USA This 8th day of April, 2004

	 	 	 	 	 	 	 	 	 
	 	 	 	 	WESCO DISTRIBUTON-CANADA INC.	 	 
	 	 	 	 	Lessee	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Marcy Smorey-Giger
 

Witness

	 	 	 	Per:
	 	/s/ Gary J. Habsburg
 

Gary J. Habsburg
	 	 
	 

	 	 	 	 	 	Manager, Real Estate	 	 
	 

	 	 	 	 	 	& Assistant Secretary	 	 

3

 

EXHIBIT “A”

LESSOR CONSTRUCTION

	 	•	 	Demolish the existing cement block wall and toilets in the shipping and receiving area
and restore the floor under these structures to a usable state.
	 
	 	•	 	Construct a women’s toilet adjacent to the existing men’s toilet in the office area.
	 
	 	•	 	Install 50 high bay light fixtures in the warehouse, which shall be provided by the Lessee.
	 
	 	•	 	Paint the office areas including toilets.
	 
	 	•	 	Repair damaged asphalt in front of the office areas of the
building fronting TransCan.

4

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