Document:

Exhibit 10.14

 

REAL PROPERTY LEASE

 

PARTIES:

STERLING PACIFIC, a partnership (Lessor)

COUNTRY COACH, INC., an Oregon corporation (Tenant)

 

AGREEMENTS:

 

1.                                       PREMISES:  Lessor hereby leases to Tenant approximately
2,200 square feet of offices and 24,600 square feet of industrial building
commonly known as 29417 Airport Road, Eugene, Oregon. The area leased as
described in the preceding sentence is referred to herein as the “Leased
Premises.

 

2.                                       TERM.  This lease shall run for a period of One (1) year
commencing on November 3, 2003, and terminating at 12 midnight on November 2,
2004. In addition, Tenant shall have the option to renew the term for four
additional one year periods as hereinafter provided.

 

3.                                       RENT.  Tenant shall pay as monthly rent for the first
year term of this lease NINE THOUSAND DOLLARS ($9,000.00) per month. Rent
payment shall be due on the first day of each month, in advance, except for the
first and last month which shall be prorated. In the event rent is not paid by
the tenth (10th) day of the month, a late fee of five (5%) percent of the
monthly Rent amount shall be added to, and due with, the monthly rent payment. Rent
shall be adjusted as set forth below. The rent shall be paid to Lessor at the address
hereinafter provided (see paragraph 30) for giving notice to Lessor, or at such
other place or to such other person as Lessor may designate in writing. Rent
for the renewal option shall be as subject to adjustment as set forth herein.

 

The monthly rent shall be adjusted on the
first day of each successive renewal year after the initial term of this lease
to reflect changes in the cost of living with an annual cap of three percent
(3%). The adjustment shall be made by multiplying the rent in effect immediately
preceding the adjustment by a fraction wherein the Index at the adjustment date
is the numerator and the Index at the date the rent in effect was established (which
date is the first day of the initial term or the adjustment made during the
initial term and which date is the first day of the renewal term for the
adjustments made during the renewal term) is the denominator. “Index” as used
herein as defined as the United States Department of Labor, Consumer Price
Index U.S. City Average (CPI-U) (1982-84 -100 for All Urban Consumers).

 

An example of the operation of this provision
is as follows:

 

If this lease commences on November 1,
2003, and the Index at that date is 180; and the Index as of November, 2004 is
184; then the rent will be established by the following formula:

 

$9,000 x 184/180 = $9,200. The rent for the
period from November 1, 2004 to November 1, 2005 shall be the amount
of $9,200 per month.

 

If the Index information is not available at
the date of any adjustment to be made hereunder, the adjustment shall be made
as soon as such information is available, retroactive to the effective date, and
any adjustment in the rent shall be paid by Tenant to Lessor forthwith upon the
furnishing of such information from Lessor to Tenant. In the event the Index
becomes unavailable for any reason, the adjustment provided herein shall be
based upon the most comparable index then available from the United States
Department of Labor.

 

Notwithstanding any other provision contained
herein, in no event shall the monthly rent be reduced below the amount of NINE
THOUSAND DOLLARS ($9,000.00).

 

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All taxes, insurance costs, utility charges,
and any other amounts that. Tenant is required by lease to pay or reimburse to
Lessor or third parties shall be deemed additional rent.

 

4.                                       PURPOSE.  Tenant shall use and occupy the office portion
of the Lease Premises for office purposes. Tenant shall use the warehouse portion
of the Leased Premises for Tenant’s conversion of buses to motor homes. Tenant
may not use the Leased Premises for any other purpose without Lessor’s prior
written consent, in Lessor’s sole discretion. Tenant acknowledges that Lessor
has a significant interest in the activities conducted upon the Leased Premises
and that the granting or withholding of consent by Lessor to any other use of
the Leased Premises is solely within the Lessor’s discretion. The Lessor has
agreed to lease the Leased Premises to Tenant only with Tenant’s assurances that
the Leased Premises would be returned in good condition and would not be
damaged or marred by Tenant’s business activities. Tenant shall in particular
protect the Leased Premises against paint and overspray and shall not attach
any trade fixtures to the structure, such as attaching a crane to the roof, without
Lessor’s prior written consent in Lessor’s sole discretion.

 

5.                                       LIMITATIONS ON
USE.  Tenant will not use the Leased Premises
in any manner which would deface or injure the Leased Premises or the real property
upon which the Leased Premises is located. Tenant shall not permit any objectionable
noise or odor to escape from or be omitted from the Leased Premises, or permit
any use or activity upon the Leased Premises tending to create a nuisance. Tenant
shall not impose floor loads upon any portion of the Leased Premises in excess
of the floor loads, which may be established by Lessor with reference to
reasonable engineering standards. Tenant shall refrain from any activity that
would make it impossible to insure the Leased Premises against casualty.

 

Tenant shall not cause or permit any Hazardous
Substance to be spilled, leaked, disposed of, or otherwise released on or under
the Leased Premises. Tenant may use or otherwise handle on the Leased Premises
only those Hazardous Substances typically used or sold in the prudent and safe operation
of the business specified in Paragraph 4. Tenant may store such Hazardous
Substances on the Leased Premises only in quantities necessary to satisfy
Tenant’s reasonably anticipated needs. Tenant shall comply with all Environmental
Laws and exercise the highest degree of care in the use, handling, and storage of
Hazardous Substances and shall take all practicable measures to minimize the
quantity and toxicity of Hazardous Substances used, handled, or stored on the Leased
Premises. Upon the expiration or termination of this lease, Tenant shall remove
all Hazardous Substances from the Leased Premises. The term Environmental Law shall
mean any federal, state, or local statute regulation, or ordinance or any judicial
or other governmental order pertaining to the protection of health, safety or the
environment. The term Hazardous Substance shall mean any hazardous, toxic,
infectious, or radioactive substance, waste, or material as defined or listed
by an Environmental Law and shall include, without limitation, petroleum oil
and its fractions.

 

6.                                       SIGNS.  Tenant may install one or more suitable signs
upon the Leased Premises subject to the prior written approval of Lessor, which
shall not be unreasonably withheld. Tenant shall be responsible for the expense
of the installation of such signs, the repair and maintenance of such signs, and
for removing the signs upon the expiration or termination of this lease and repairing
any and all damage to the Leased Premises caused thereby. Tenant shall be
responsible for ensuring that all signs comply with all applicable law.

 

7.                                       COMPLIANCE WITH
LAW.  Tenant, at Tenant’s expense, shall
promptly observe and comply with all present and future laws, orders, regulations,
rules, ordinances and requirements of federal, state, county and city
governments with

 

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respect to the use, care and control of the Leased Premises.

 

8.                                       REPRESENTATIONS.
 Except as set forth in Paragraph 2,
Tenant acknowledges that this lease is accepted and executed on the basis of Tenant’s
own examination and personal knowledge of the value and condition of the Leased
Premises; that no representation as to the value, condition or repair of the Leased
Premises has been made by Lessor or any agent of Lessor; and that Tenant agrees
to take the Leased Premises in the condition the Leased Premises are in at the
time of the execution of this lease as documented in a walk through between
Lessor and Tenant.

 

9.                                       ASSIGNMENT AND
SUBLEASE.  The interest of Tenant under
this lease may be assigned, wholly or partially, or all or any portion of the
Leased Premises may be sublet, with the prior written consent of Lessor. The
parties acknowledge that Lessor has a significant interest in the person or
persons occupying the Leased Premises and that the granting or withholding of
consent by Lessor to assignment or subleasing shall be solely within the Lessor’s
discretion. No assignment or sublease, or consent thereto by Lessor, shall relieve
Tenant, wholly or partially, from the obligations of Tenant to Lessor under
this lease unless agreement is reached to the contrary.

 

10.                                 UTILITIES.  Lessor shall furnish no utilities or services,
and Tenant shall arrange for, and pay for, all utilities and services used by
Tenant upon the Leased Premises during the term of this lease, including, without
limitation, gas, electricity, water, sewage service, telephone service and
trash removal.

 

11.                                 ALTERATIONS AND
IMPROVEMENTS.  Tenant will not make or
cause to be made any alteration or improvements upon the Leased Premises, without
the prior written consent of Lessor. All alterations or improvements to the
Leased Premises shall be presumed to become an integral part of the Leased Premises,
shall remain for the benefit of Lessor and shall not be removed unless
otherwise expressly agreed in writing. The above restrictions shall not apply
to movable furniture and trade fixtures installed by Tenant during the term of
this lease. Upon the termination of this lease, such trade fixtures may be
removed by Tenant upon the condition that Tenant repair, at Tenant’s expense, all
damage to the Leased Premises resulting from such removal. The renewal of this
lease or the extension of its term in any manner shall not affect the right of
Tenant to remove trade fixtures as provided herein. Provided, that as set forth
in Paragraph 5. above, Tenant may not affix or attach any trade fixture to the structure
of the building without Lessor’s prior written consent, in Lessor’s discretion.

 

12.                                 REPAIRS AND
MAINTENANCE.  Lessor shall, at Lessor’s expense,
maintain the roof, gutters, exterior walls (including painting), bearing walls,
structural members, floor slabs, foundation, exterior water, sewer, and other utility
lines up to the point of entry to the buildings, water, sewer, and utility
lines within the walls or underground that a damaged where damage is not due to
Tenant’s negligence, and major repair or replacement of the HVAC equipment. Lessor’s
obligation to repair shall arise only upon receipt of written notice from
Tenant, and Lessor shall have a reasonable period of time after receipt of such
notice to commence and complete such repairs.

 

Tenant’s responsibilities shall be maintenance
of ceilings, floor coverings, interior walls, light fixtures, doors &
windows, and plumbing & electrical outside the walls and above ground
level, grounds, regular service of the HVAC equipment (excluding major repair
or replacement), and any repairs due

 

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to the Tenant’s negligence, or negligence of customers for the Tenant. Except
for repairs and maintenance which are the responsibility of Lessor under the provisions
of this paragraph, Tenant shall, at Tenants expense, maintain the Leased Premises
in good order and condition during the term of this lease. Specifically, Tenant
shall be responsible for all repair or replacement in the same manner as a
reasonably prudent owner, and repairs and replacements shall be made without regard
to the expiration date of this lease provided Tenant is notified in writing by
the Landlord within 90 days after expiration of the lease.

 

13.                                 RETURN OF PREMISES.  Upon the expiration of this lease, or its termination
for any cause, Tenant will surrender the Leased Premises in good order and condition
excepting damage resulting from fire, acts of God or other casualty not caused
by the negligence or fault of Tenant. Specifically, Tenant shall fully restore,
clean up and recondition the Leased Premises, including any paint or overspray,
and shall restore the walls and floors to their condition at the execution of
the original lease term as evidenced by the documentation of a walk through
between Lessor and Tenant, excepting normal wear and tear.

 

14.                                 ACCESS BY LESSOR.  Lessor: and Lessor’s representatives and
agents shall have free access to the Leased Premises at reasonable times for
the purpose of examining or exhibiting the same or to make any repairs or alterations
on the Leased Premises which the Lessor deems convenient for the maintenance or
preservation thereof; provided that this paragraph shall not be deemed a modification
of the repair and maintenance responsibilities provided for in this lease.

 

15.                                 LIENS AND
ENCUMBRANCES.  Tenant shall keep the
Leased Premises free and clear of any and all liens or encumbrances imposed or
threatened to be imposed on the Leased Premises by reason of any contract, act
or omission by Tenant.

 

16.                                 INJURY TO PROPERTY OR
PERSON.  Tenant is responsible for the
condition of the Leased Premises during the term of this lease and any damage
or injury to property or person resulting from the condition of the components
of the Leased Premises for which Tenant is responsible, or the activities of
Tenant and subtenants of Tenant or person upon the Leased Premises with the express
or implied consent of Tenant. Tenant shall indemnify and save Lessor harmless
from any loss, damage, claim or demand arising out of such condition or
activities. Lessor sha1l 1ike wise indemnify and save Tenant harmless from any
loss, damage, claim or demand arising out of conditions or activities that are the
responsibility of Lessor. Tenant shall obtain and maintain in full force and effect
liability insurance in a combined single limit of not less than ONE MILLION
DOLLARS ($1,000,000.00), indemnifying Tenant from any liability, claim or
demand arising out of such condition or activities, and naming Lessor as an additional
insured. Such insurance shall be written by an insurance company authorized to
transact business within the state of Oregon, and shall provide that such insurance
may not be canceled or terminated in any manner without not less than ten (10) days’
written notice to Lessor. A copy of such insurance policy or certificate evidencing
such insurance coverage shall be furnished to Lessor upon written request to
Tenant.

 

17.                                 DEFAULT BY TENANT.  In the event Tenant shall fail to pay any
payment coming due hereunder from Tenant to Lessor within ten (10) days
from the due date thereof, or in the event Tenant shall violate or fail to
perform any other covenant, condition or provision of this lease within fifteen
(15) days after written notice thereof is given to Tenant by Lessor, Lessor
shall be entitled to the following remedies:

 

a. Without terminating this lease, Lessor
shall be entitled to recover from Tenant any amounts due hereunder, or any
damages arising out of

 

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the violation or failure of Tenant to perform
any covenant, condition or provision of this lease.

 

b. Lessor may elect to terminate this lease
and any and all interest and claim of Tenant by virtue of such lease, whether
such interest or claim is existing or prospective, and to terminate all
interest of Tenant in the Leased Premises. Such termination shall, at the
election of Lessor, also terminate any sublease by Tenant, whether or not Lessor
has theretofore consent to such sublease.

 

c. Lessor may elect to relet the Leased
Premises.

 

The foregoing remedies shall be in addition
to, and shall not exclude, any other remedy available to Lessor at law or in
equity. The ten (10) day grace period for the payment of amounts coming
due hereunder is in recognition of the ten (10) day grace period for the
payment of rent provided by the statutes of the state of Oregon; and shall not
be construed as an addition to, or an extension of, such grace period provided
the statute. All remedies, to the extent they are not inconsistent with each
other, shall be deemed cumulative. The election by Lessor of one remedy shall
not prevent the subsequent election by Lessor of an inconsistent remedy unless
Tenant has substantially changed Tenant’s position in reliance upon such prior
election by Lessor.

 

In the event this Lease is terminated, all
obligations and indebtedness of Tenant to Lessor arising out of this lease
prior to the date of such termination shall survive such termination.

 

Upon such termination, or upon the election
by Lessor to relet the Leased Premises, Lessor may reenter the Leased Premises
and take possession thereof and remove any persons and property by legal action
or by self-help with the use of reasonable force and without liability for
damages, and Tenant shall indemnify and hold Lessor harmless from any claim or
demand arising out of such reentry and removal of persons or property.

 

In the event Lessor reenters the Leased
Premises upon termination, or for the purpose of reletting, Lessor shall make
all reasonable good faith efforts to mitigate its damages and may relet all or
some portion of the Leased Premises, alone or in conjunction with other
properties, for a term longer or shorter than the term of this lease, upon any
reasonable terms and conditions, including the granting of a period of rent-free
occupancy or other rental concession, and Lessor may, but shall not be required
to, relet the Leased Premises for any use or purpose other than specified in
this lease, and Lessor shall not be required to relet to any tenant which
Lessor may reasonably consider objectionable.

 

In the event of termination by Lessor, Lessor
shall be entitled to recover immediately as damages, subject to reasonable good
faith mitigation efforts, the total of the following amounts:

 

a. Any amount by which Tenant’s total obligations
under this lease exceed the reasonable rental value of the Leased Premises as
at the date of default, for the remaining term of the lease.

 

b. The reasonable costs of reentry and
reletting, including, but not limited to, any expense of cleaning, repairing, altering,
remodeling, refurbishing, removing Tenant’s property, or any other expense incurred
in recovering possession of the Leased Premises or reletting the Leased
Premises, including, but not limited to, attorney’s fees, court costs, broker’s
commissions and advertising expense.

 

c. The loss of rent accruing until the date
when a new tenant has

 

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been, or with the exercise of reasonable diligence
could have been, obtained.

 

18.                                 DESTRUCTION OF PREMISES.
 If the Leased Premises are destroyed or damaged
by Act of God, by fire or by other casualty to the extent that Lessor determines,
in Lessor’s sole discretion, that it is impractical or inadvisable to repair or
reconstruct, then Lessor shall give Tenant written notice of such decision and this
lease shall terminate as of the date of such damage or destruction. Lessor
shall have a period of thirty (30) days following the damage or destruction within
which to decide whether the repairs or reconstruction shall be made. If Lessor decides
to repair or reconstruct, this lease shall continue in full force and effect, however,
if the extent of the damage prevents, or will prevent, the Tenant from using
the leased premises for its manufacturing operation for a period of 90 days from
the date of the damage, then the Tenant shall have the option to terminate the
lease immediately. If Lessor elects to repair or reconstruct, the repairs or
reconstruction shall be commenced without undue delay and shall be diligently prosecuted
to completion. In any event, Tenant shall be entitled to a reduction of the
rent from the date of such damage or destruction until the repair or
reconstruction is completed in an amount proportionate to the extent to which
said damage or destruction and the making of repairs interferes with the
occupancy by the Tenant of the Leased Premises.

 

19.                                 TAKING FOR PUBLIC USE.
 If the Leased Premises, in whole or in
part, are taken or condemned for public use (an agreed sale to a public or quasi-public
corporation or utility after threat of condemnation constitutes a taking for public
use), all compensation awarded upon such condemnation or taking shall be according
to the working laws in effect in the state of Oregon at the time of the taking
or condemnation.

 

20.                                 PROPERTY DAMAGE
INSURANCE.  Lessee shall obtain and
maintain in force a policy or policies of fire insurance on the Leased Premises
and in such amounts sufficient to cover replacement value. Tenant shall, at
Tenant’s expense, insure all personal property and fixtures of Tenant located
upon the Leased Premises for their full insurable value.

 

21.                                 TAXES AND ASSESSMENTS.
 Subject to the provisions contained in
this paragraph relating to reimbursement, Lessor shall pay all real property
taxes and assessments upon the Leased Premises. Tenant shall reimburse Lessor
for the full amount of the real property taxes within 30 days after receipt of
written notice from Lessor of payment of such taxes and assessments. Real
property taxes and assessments for the first and last partial fiscal years of
this lease shall be prorated between Lessor and Tenant as at the commencement date
and as at the termination date of this lease.

 

Tenant shall pay all personal property taxes
on personal property of Tenant located upon the Leased Premises. Tenant shall,
upon written request of Lessor, reimburse Lessor for any portion of the real property
taxes attributable to trade fixtures or other improvements attached to or
constructed upon the Leased Premises by Tenant.

 

If a new charge or fee relating to the ownership
or use of the Leased Premises or the receipt of rental therefrom or in lieu of
real property taxes is assessed or imposed, then, to the extent permitted by
law, Tenant shall pay such charge or fee. Tenant, however, shall have no obligation
to pay any income, profits, or franchise tax levied on the net income derived
by Lessor from this lease.

 

22.                                 OPTION &
NOTICE TO RENEW.  Provided that Tenant is
not in default at the time of the giving of notice of the exercise of the
option to renew, or at the

 

6

 

commencement date of the renewed term, Tenant shall have an option to
renew this lease for four (4) additional periods of one (1) year by
giving written notice thereof to Lessor not less than ninety (90) days prior to
the expiration date of the initial term, or current term, of this lease. Such
renewed term(s) shall be upon the identical terms and conditions contained in
this for the initial term except that the rent shall be at a rate established by
the CPI formula previously stated.

 

23.                                 RIGHT OF REFUSAL.  If, during any term of this lease Lessor is
prepared to accept a bona fide offer to purchase the building and the real property
of which the Leased Premises are a part, Lessor shall give written notice to
Tenant of the terms of such purchase offer and Tenant shall have a period of
seven days from the date of receipt of such notice within which to elect to
purchase on the identical terms and conditions of such offer, by giving written
notice of such elections to Lessor. In the event Tenant fails to give such timely
written notice of such election to purchase, Lessor may sell the building and
real property, upon terms not more favorable to the purchaser than contained in
such notice.

 

24.                                 MORTGAGE PRIORITY.  This lease is and shall be prior to any
mortgage or deed of trust (“Encumbrance”) recorded prior to or after the date
of this lease and affecting the Leased Premises. However, if any lender holding
an Encumbrance recorded after the date of this lease requires that this lease
be subordinate to the Encumbrance, then Tenant agrees that the lease shall be
subordinate to the Encumbrance if the holder thereof agrees in writing with
Tenant that as long as Tenant performs Tenant’s obligations under this lease no
foreclosure, deed given in lieu of foreclosure, or sale pursuant to the terms
of the Encumbrance, or other steps or procedures taken under the Encumbrance shall
affect Tenant’s rights under this lease. If the foregoing condition is met,
Tenant shall execute the written agreement and any other documents required by
the holder of the Encumbrance to accomplish the purposes of this paragraph. If
the Leased Premises are sold as a result of foreclosure of any Encumbrances thereon,
or otherwise transferred by Lessor or any successor, Tenant shall attorn to the
purchaser or transferee.

 

25.                                 ESTOPPEL CERTIFICATE.  Tenant shall, at any time and from time to
time, upon not less than ten (10) days’ prior written notice from Lessor, execute,
acknowledge, and deliver to Lessor a statement in writing certifying that this lease
is unmodified and in full force and effect (or if there have been modifications,
that this lease is in full force and effect as modified and stating the modifications),
stating the dates to which the rent and other charges hereunder have been paid
by Tenant, stating whether or not Lessor is in default in the performance of
any covenant, agreement or condition contained in this lease and, if so,
specifying each default, and stating the address to which notices to Tenant
shall be sent.

 

26.                                 LATE CHARGE.  If any payment coming due from Tenant to
Lessor is not received by Lessor within ten (10) days from the due date
thereof, Tenant shall pay to Lessor a late charge equal to five percent (5%) of
the payment coming due, but in no event shall such late charge exceed any
maximum charge now or hereafter established by law. Lessor’s right to collect
any late charge shall be in addition to any other rights or remedies available
to Lessor hereunder or at law or in equity.

 

27.                                 CONDITIONS.  If Tenant makes an assignment for the benefit
of Tenant’s creditors of all or any portion of the assets of Tenant; or if
Tenant proposes or consents to a composition with unsecured creditors of
Tenant; or if any

 

7

 

interest of Tenant hereunder is levied upon by legal process for the
enforcement of any debt of Tenant, individually or jointly; or if Tenant
becomes insolvent; Lessor shall have the right to terminate this lease by
giving written notice of termination to Tenant. Specifically, the time periods for
curing defaults provided in the paragraph of this lease relating to default shall
not be applicable to the provisions of this paragraph.

 

28.                                 HOLDING OVER.  If Tenant shall hold over after the expiration
of the term of this lease, or an extended terms, such holding over shall be
deemed to create a tenancy at will which may be terminated after first providing
60-day prior written notice by either party.

 

29.                                 WAIVER OF SUBROGATION RIGHTS.
 Each of the parties releases the other, and
the agents, employees and successors of such other party, from all claims, demands
and liabilities arising from unintentional acts or omissions of the other party
which result in loss for which the party sustaining such loss is indemnified
under a policy or policies of insurance.

 

30.                                 NOTICES.  Any notices required or permitted to be given
under the terms of this lease, or by law, shall be in writing and may be given
by personal delivery or certified mail, directed to the parties at the
following addresses, or such other address as any party may designate in
writing prior to the time of the giving of such notice, or in any other manner
authorized by law:

 

	
   

  	
  LESSOR:  Sterling Pacific

  
	
   

  	
  Richard A. Ramberg

  
	
   

  	
  15 Carrera Court

  
	
   

  	
  Rancho Mirage, CA 92270

  
	
   

  	
   

  
	
   

  	
  TENANT: Country Coach, Inc.

  
	
   

  	
  29417 Airport Road Eugene, OR 97402

  

 

Any notice given shall be effective when
actually received, or if given by certified mail, then forty-eight (48) hours
after the deposit of such notice in the United States mail with postage prepaid.

 

31.                                 BINDING EFFECT.  All of the covenants, agreements, conditions
and terms contained in this lease shall be binding upon, apply and inure to the
benefit of the successors and assigns of the respective parties hereto, and all
said covenants shall be construed as covenants running with the land. However, nothing
in this paragraph shall be construed as modifying in any way any restrictions
on assignment and sublease provided in this lease.

 

32.                                 WAIVER.  No waiver of any right arising out of a breach
of any covenant, term or condition of this lease shall be a waiver of any right
arising out of any other or subsequent breach of the same or any other covenant,
term or condition or a waiver of the covenant, term or condition itself.

 

33.                                 INTEGRATION.  This lease constitutes a final and complete
statement of the agreement between the parties, and full supersedes all prior
agreements or negotiations, written or oral.

 

34.                                 LEGAL PROCEEDINGS.  If any legal proceeding is commenced for the
purpose of interpreting or enforcing any provision of this lease, the
prevailing party in such proceeding shall be entitled to recover a reasonable attorney’s
fee in such proceeding, or any appeal thereof in addition to the costs and disbursements
allowed by law.

 

35.                                 COUNSEL.  Each of the parties hereto acknowledges that
each party has been represented by counsel in connection with the preparation
and execution of

 

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this lease and that each party has thoroughly reviewed this lease with
that party’s counsel. The rule of construction that a written agreement is
construed against the party preparing or drafting such agreement shall
specifically not be applicable to the interpretation of this lease.

 

36.                                 WARRANTY OF AUTHORITY.
 The person or persons executing and
delivering this lease on behalf of Lessor and Tenant represent and warrant that
each of them is duly authorized to do so and that the execution and delivery of
this lease are the lawful and voluntary act of the party on whose behalf that
person purports to act.

 

	
  DATED: 11-6-03 2003. 

  	
  STERLING PACIFIC 

  
	
   

  	
  By:

  	
  /s/Richard A. Ramberg

  	
   

  
	
   

  	
   

  	
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COUNTRY COACH, INC 

  
	
   

  	
  By:

  	
  /s/ Jay L. Howard

  	
   

  
	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COUNTRY COACH, INC 

  
	
   

  	
  By:

  	
  /s/ Mark D. Andersen

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
					

 

 

LEASE EXTENSION

 

	
  PARTIES:

  	
  RICHARD A. RAMBERG (Lessor)

  
	
   

  	
  COUNTRY COACH, INC. an Oregon corporation
  (Tenant)

  

 

RECITALS:

 

A.  The
parties entered into a Real Property lease dated November 3, 2003 covering
the premises commonly known as 29417 Airport Road, Eugene, Lane County, Oregon.
(The lease)

 

B.  The
parties desire to extend the term of the Lease upon the terms and conditions
contained herein.

 

AGREEMENTS:

 

1.  The
term of the Lease is extended one year to and including November 2, 2005.

 

2.  The
monthly rent shall be adjusted on the first day of November 2004 to reflect
changes in the cost of living for the prior 12 months with an annual cap of
three percent (3%) per the terms of the lease.

 

3.  As
specified in paragraph #3 of the lease, if the Index information is not
available at the date of the adjustment, the adjustment shall be made as soon
as such information is available, retroactive to the effective date and any adjustment
shall be paid by Tenant to Lessor upon the furnishing of such information from
Lessor to Tenant.

 

4.  Except
as herein specifically modified, the Lease shall remain in full force and
effect in accordance with its remaining terms.

 

9

 

	
   

  	
  LEESOR: 

  
	
   

  	
  By:

  	
  /s/ Richard A. Ramberg 

  	
   

  
	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:  9-28-2004

  
	
   

  	
   

  
	
   

  	
  TENANT: Country Coach, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay L. Howard

  	
   

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:  10-20-04

  
					

 

10Exhibit 10.15

 

REAL PROPERTY LEASE

between

 

LEE JOINT VENTURE,

a joint venture composed of
Robert B. Lee, Ronald E. Lee

and Terry N. Lee

Lessor

and

COUNTRY COACH, INC.,

an Oregon corporation Tenant

 

REAL PROPERTY LEASE

 

PARTIES: LEE JOINT VENTURE,. a joint venture of Robert B. Lee, Ronald
E. Lee and Terry N. Lee (Lessor)

 

COUNTRY COACH, INC., an Oregon corporation (Tenant)

 

AGREEMENTS

 

1.  PREMISES.
 Lessor hereby leases to Tenant property
described on Exhibit A attached hereto improvements thereon (Leased Premises).

 

2.  TERM.
 This lease shall run for a period of
five (5) years commencing on November 1, 1995, and terminating at 12
midnight on October 31, 2000. In addition, Tenant shall have the option to
renew the term for two (2) additional successive periods of five (5) years
each as hereinafter provided.

 

3.  RENT.
 Tenant shall pay as monthly rent
Eighty-four Thousand Three Hundred Sixty Dollars $84,360, in advance on the
first day of each calendar month during the term of this lease. The rent shall
be paid to Lessor at the address hereinafter provided for giving notice to
Lessor, or at such other place or to such other person as Lessor may designate
in writing. Rent for the last partial calendar month of this lease, if any,
shall be prorated.

 

The monthly
rent shall be adjusted annually on the first day of November of each year
beginning with November 1, 1996, to reflect changes in the cost of living.
The adjustment shall be made by multiplying the rent in effect immediately
preceding the adjustment by a fraction wherein the Index at the adjustment date
is the numerator and the Index one (1) year prior thereto is the
denominator. “Index” as used herein is defined as the United States Department
of Labor Consumer Price Index for Urban Wage Earners and Clerical Workers,
Portland, Oregon - Washington, All Items (1982-84 = 100).

 

If the Index
information is not available at the date of any adjustment to be made
hereunder, the adjustment shall be made as soon as such information is
available, retroactive to the effective date, and any adjustment in the rent
shall be paid by Tenant to Lessor forthwith upon the furnishing of such
information from Lessor to Tenant. In the event the Index becomes unavailable
for any reason, the adjustment provided herein shall be based upon the most
comparable index then available from the United States Department of Labor.

 

Notwithstanding
any other provision contained herein, in no event shall the monthly rent be
reduced below the amount of Eighty-four Thousand Three Hundred Sixty Dollars
($84,360).

 

All taxes,
insurance costs, utility charges, and any other amounts that Tenant is required
by this lease to pay or reimburse to Lessor or third parties shall be
additional rent.

 

1

 

4.  PURPOSE.
 Tenant may use and occupy the
Leased-Premises for any lawful purpose.

 

5.  LIMITATIONS
ON USE.  Tenant shall not cause or permit
any Hazardous Substance to be spilled, leaked, disposed of, or otherwise
released on or under the Leased Premises. Tenant may use or otherwise handle on
the Leased Premises only those Hazardous Substances typically used or sold in
the prudent and safe operation of Tenant’s business. Tenant may store such
Hazardous Substances on the Premises only in quantities necessary to satisfy
Tenant’s reasonably anticipated needs. Tenant shall comply with all
Environmental Laws and exercise the highest degree of care in the use,
handling, and storage of Hazardous Substances and shall take all practicable
measures to minimize the quantity and toxicity of Hazardous Substances used,
handled, or stored on the Leased Premises. Upon the expiration or termination
of this lease, Tenant shall remove all Hazardous Substances from the Leased
Premises. The term Environmental Law shall mean any federal, state, or local
statute, regulation, or ordinance or any judicial or other governmental order
pertaining to the protection of health, safety, or the environment. The term
Hazardous Substance shall mean any hazardous, toxic, infectious, or radioactive
substance, waste, or material as defined or listed by an Environmental Law and
shall include, without limitation, petroleum oil and its fractions.

 

6.  COMPLIANCE
WITH LAW.  Tenant, at Tenant’s expense,
shall promptly observe and comply with all present and future laws, orders,
regulations, rules, ordinances and requirements of federal, state, county and
city governments with respect to the use, care and control of the Leased
Premises, including, but not limited to, the obligation to make any physical
modifications to the Leased Premises necessary to comply with such applicable
law.

 

7.  REPRESENTATIONS.
 Tenant acknowledges that this lease is
accepted and executed on the basis of Tenant’s own examination and personal
knowledge of the value and condition of the Leased Premises; that no
representation as to the value, condition or repair of the Leased Premises has
been made by Lessor or any agent of Lessor; and that Tenant agrees to take the
Leased Premises in the condition the Leased Premises are in at the time of the
execution of this lease.

 

8.  ASSIGNMENT
AND SUBLEASE.  The interest of Tenant
under this lease may not be assigned, wholly or partially, or encumbered, nor
may all or any portion of the Leased Premises be sublet, without the prior
written consent of Lessor. The parties acknowledge that Lessor has a
significant interest in the person or persons occupying the Leased Premises and
that the granting or withholding of consent by Lessor to assignment or
subleasing shall be solely within the Lessor’s discretion. No assignment or
sublease, or consent thereto by Lessor, shall relieve Tenant, wholly or
partially, from the obligations of Tenant to Lessor under this lease. Provided,
that Lessor hereby consents to assignment of the lease to an entity which is the
surviving corporation in a merger with Tenant or which purchases all or
substantially all of Tenant’s assets so long as such entity assumes this lease
and so long as Tenant, to the extent Tenant survives, remains liable on the
lease. This consent does not consent to any other assignment or sublease by
such entity.

 

9.  UTILITIES.
 Lessor shall furnish no utilities or
services, and Tenant shall arrange for, and pay for, all utilities and services
used by Tenant upon the Leased Premises during the term of this lease,
including, without limitation, gas, electricity, water, sewage service,
telephone service and trash removal.

 

10.  ALTERATIONS
AND IMPROVEMENTS.  Tenant shall have the
right to modify the improvements upon the Leased Premises, and to construct additional
improvements

 

2

 

upon the Leased Premises upon the condition that such alterations and
additions do not decrease the fair market value of the Leased Premises. Upon
the termination of this lease, all trade fixtures installed by Tenant prior to
or during the term of this lease may be removed by Tenant upon the condition
that Tenant repair, at Tenant’s expense, any damage to the Leased Premises
resulting from such removal. Renewal of this lease or the extension of its term
in any manner shall not affect the right of Tenant to remove trade fixtures and
improvements as provided herein.

 

11.  REPAIRS
AND MAINTENANCE.  Tenant shall, at Tenant’s
expense, maintain the Leased Premises in good order and condition during the
term of this lease. Tenant shall repair and replace elements of the Leased
Premises in the same manner as a reasonably prudent owner, and repairs and
replacements shall be made without regard to the expiration of this lease.

 

12.  RETURN
OF PREMISES.  Upon the expiration of this
lease, or its termination for any cause, Tenant will return the Leased Premises
in the order and condition required under the provisions of the preceding
paragraph of this lease, relating to repairs and maintenance, except for damage
resulting from fire, acts of God or other casualty not caused by the negligence
or fault of Tenant.

 

13.  ACCESS BY LESSOR.  Lessor, or Lessor’s representatives and
agents, shall have free access to the Leased Premises at reasonable times for
the purpose of examining or exhibiting the same or to make any repairs or
alterations on the Leased Premises which the Lessor deems convenient for the
maintenance or preservation thereof; provided that this paragraph shall not be
deemed a modification of the repair and maintenance responsibilities provided
for in this lease.

 

14.  LIENS
AND ENCUMBRANCES.  Tenant shall keep the
Leased Premises free and clear of any and all liens or encumbrances imposed or
threatened to be imposed on the Leased Premises by reason of any contract, act
or omission by Tenant; provided that this paragraph shall not be construed to
restrict the right of Tenant to grant security interests in its fixtures,
inventory or other personal property located upon the Leased Premises.

 

15.  INJURY
TO PROPERTY OR PERSON.  Tenant is to be
responsible for the condition of the Leased Premises during the term of this
lease and any damage or injury to property or person resulting from the
condition of the Leased Premises, or the activities of Tenant and Tenant’s
agents and employees thereon or any independent contractor hired by Tenant or
any subtenants of Tenant or person upon the Leased Premises with the express or
implied consent of Tenant. Tenant shall indemnify and save Lessor harmless from
any loss, damage, claim or demand arising out of such condition or activities.
Tenant shall obtain and maintain in full force and effect liability insurance
in amounts as reasonably specified by Lessor from time to time, indemnifying
Tenant from any liability, claim or demand arising out of such condition or
activities, and naming Lessor as an additional insured. Such insurance shall be
written by an insurance company authorized to transact business within the
state of Oregon, and shall provide that such insurance may not be canceled or
terminated in any manner without not less than ten (10) days’ written
notice to Lessor. A copy of such insurance policy or a certificate evidencing
such insurance coverage shall be furnished to Lessor upon written request to Tenant.

 

16.  DEFAULT BY TENANT.  In the event Tenant shall fail to pay any
payment coming due hereunder from Tenant to Lessor within ten (10) days
from the due date thereof, or in the event Tenant shall violate or fail to
perform any other covenant, condition or provision of this lease within fifteen
(l5) days after written notice thereof is given to Tenant by Lessor, Lessor
shall be entitled to

 

3

 

the following remedies:

 

a.  Without
terminating this lease, Lessor shall be entitled to recover from Tenant any
amounts due hereunder, or any damages arising out of the violation or failure
of Tenant to perform any covenant, condition or provision of this lease.

 

b.  Lessor
may elect to terminate this lease and any and all interest and claim of Tenant
by virtue of such lease, whether such interest or claim is existing or
prospective, and to terminate all interest of Tenant in the Leased Premises.
Such termination shall, at the election of Lessor, also terminate any sublease
by Tenant, whether or not Lessor has theretofore consented to such sublease.

 

c.  Lessor may elect to relet the Leased Premises
as an agent for Tenant.

 

The foregoing remedies shall be in addition
to, and shall not exclude, any other remedy available to Lessor at law or in
equity. The ten (10) day grace period for the payment of amounts coming
due hereunder is in recognition of the ten (10) day grace period for the
payment of rent provided by the statutes of the state of Oregon; and shall not
be construed as an addition to, or an extension of, such grace period provided
by statute. All remedies, to the extent they are not inconsistent with each
other, shall be deemed cumulative. The election by Lessor of one remedy shall
not prevent the subsequent election by Lessor of an inconsistent remedy unless
Tenant has substantially changed Tenant’s position in reliance upon such prior
election by Lessor.

 

In the event this lease is terminated, all
obligations and indebtedness of Tenant to Lessor arising out of this lease
prior to the date of such termination shall survive such termination.

 

Upon such termination, or upon the election
by Lessor to relet the Leased Premises, Lessor may reenter the Leased Premises
and take possession thereof and remove any persons and property by legal action
or by self-help with the use of reasonable force and without liability for
damages, and Tenant shall indemnify and hold Lessor harmless from any claim or
demand arising out of such reentry and removal of persons or property.

 

In the event Lessor reenters the Leased
Premises upon termination, or for the purpose of reletting, Lessor may relet
all or some portion of the Leased Premises, alone or in conjunction with other
properties, for a term longer or shorter than the term of this lease, upon any
reasonable terms and conditions, including the granting of a period of
rent-free occupancy or other rental concession, and Lessor may, but shall not
be required to, relet the Leased Premises for any use or purpose other than
specified in this lease, and Lessor shall not be required to relet to any
tenant which Lessor may reasonably consider objectionable.

 

In the event of termination by Lessor, Lessor
shall be entitled to recover immediately as damages the total of the following
amounts:

 

a.  Any
amount by which Tenant’s total obligations under lease exceed the reasonable
rental value of the Leased Premises as at the date of default, for the
remaining term of this lease.

 

b.  The
reasonable costs of reentry and reletting, including, but not

 

4

 

limited to, any expense of cleaning,
repairing, altering, remodeling, refurbishing, removing Tenant’s property, or
any other expense incurred in recovering possession of the Leased Premises or
reletting the Leased Premises, including, but not limited to, attorney’s fees,
court costs, broker’s commissions and advertising expense.

 

c.  The
loss of rent accruing until the date when a new tenant has been, or with the
exercise of reasonable diligence could have been, obtained.

 

In the event Lessor relets the premises as
agent for Tenant, Lessor shall be entitled to recover immediately as damages
the total of the following amounts:

 

a.  An
amount equal to the total rental coming due for the term of this lease, computed
based upon the periodic rent provided for herein and without discount or
reduction for the purpose of adjusting such payment to present value of
anticipated future payments, less any payments theretofore applied against such
total rental.

 

b.  The
reasonable costs of reentry and reletting, including, but not limited to, any
expense of cleaning, repairing, altering, remodeling, refurbishing, removing
Tenant’s property, or any other expense incurred in recovering possession of
the Leased Premises or reletting the Leased Premises, including, but not
limited to, attorney’s fees, court costs, broker’s commissions and advertising
expense.

 

All payments received by Lessor from
reletting shall be applied upon indebtedness and damages owing to Lessor from
Tenant, if any, and the balance shall be remitted to Tenant.

 

17.  DESTRUCTION OF PREMISES.  If the Leased premises are damaged by act of
God, by fire or other casualty, to the extent of fifty percent (50%) or less of
the replacement cost thereof prior to such casualty (partial damage), and such
partial damage can be repaired at a cost which does not exceed the collectible
proceeds of insurance covering such loss, Lessor shall repair such damage. If
the Leased Premises are damaged by act of God, by fire or other casualty to the
extent of fifty percent (50%) or less of the replacement cost thereof prior to
such casualty (partial damage), and the cost of repair of the partial damage
exceeds the collectible proceeds of insurance covering such loss, the Lessor shall
notify Tenant of the amount of such excess cost and Tenant shall have ten (10) days
from the date of such notice within which to notify Lessor of the election of
Tenant to pay such excess cost.

 

If Tenant elects to pay such excess cost,
Lessor shall repair such damage, and Tenant shall pay to Lessor in advance, the
amount of such excess cost. If Tenant does not elect to pay such excess cost,
and Lessor considers it impractical or inadvisable to repair the partial
damage, Lessor shall give Tenant written notice of such decision within ten (10) days
after receipt by Lessor of notice from Tenant of Tenant’s election not to pay
such excess cost, and this lease shall terminate as of the date of such
casualty. Lessor shall have the alternative to repair such damage, at the
expense of Lessor, and in such event this lease shall continue in full force
and effect.

 

If the Leased Premises are damaged or
destroyed by act of God, by fire or other casualty to the extent of more than
fifty percent (50%) of the replacement cost thereof prior to such casualty, and
Lessor considers it impractical or inadvisable to repair or reconstruct, Lessor
shall give Tenant written notice of such decision and this lease shall
terminate as of the date of such damage or destruction. Lessor shall have a
period of thirty (30) days following the damage

 

5

 

or destruction within which to decide whether repairs or reconstruction
shall be made. If Lessor elects to repair or reconstruct, this lease shall
continue in full force and effect.

 

Any repairs to be made under the provisions
of this paragraph shall be commenced without undue delay and shall be
diligently prosecuted to completion. In no event shall Tenant be entitled to
any reduction of rent from the date of such damage or destruction until the
repair or reconstruction is completed.

 

Trade fixtures of Tenant and leasehold
improvements made by Tenant shall not be considered in determining the
percentage of damages under this paragraph. Nothing contained herein shall be
construed as a limitation upon the right of Tenant to insure such trade
fixtures or leasehold improvements for the benefit of Tenant.

 

18.  CONDEMNATION.  If the Leased Premises, in whole or in part,
are taken or condemned for public use (an agreed sale to a public or
quasi-public corporation or utility after threat of condemnation constitutes a
taking for public use), all compensation awarded upon such condemnation or
taking shall be paid directly to Lessor, and Tenant hereby irrevocably assigns
and transfers to Lessor all of Tenant’s rights and claims to compensation or
damages, including severance damages, to which Tenant might become entitled
during the term hereof by reason of such taking. Upon any such taking by
condemnation, the title to the property so taken shall vest in the condemnor,
free and clear of this lease, subject to Lessor’s right to compensation in the
stead of Tenant and as owner, and, except for said rights to compensation, this
lease shall terminate as to the property so taken, and the rental shall be
proportionately reduced for the remainder of the term. If there is a partial
taking of the Leased Premises and the remaining portion of the Leased Premises
after such taking is not reasonably sufficient for Tenant’s use, Tenant shall
have the right to terminate this lease as of the date of such condemnation or
taking by giving written notice thereof to Lessor within thirty (30) days after
the date of such condemnation or taking. This paragraph shall not be deemed a waiver
or modification of any right which Tenant shall have to recover directly from
such condemnor any claim for business interruption or moving or relocation
expense.

 

19.  PROPERTY
DAMAGE INSURANCE.  Tenant shall obtain
and maintain in force, at Tenant’s expense, a policy or policies of fire
insurance with extended coverage in an amount not less than the full insurable
value of the Leased Premises at any time, and with an endorsement providing
coverage for loss of rent as a result of damage to or destruction of the Leased
Premises. Such policies shall name Lessor as the insured thereunder and shall
name such additional loss payees as Lessor may from time to time designate.
Such policies shall include replacement value provisions, and Tenant shall
comply with all of the provisions of such policies relating to replacement
value including the furnishing of an appraisal to establish that the amount of
such coverage is not less than the minimum percentage required in order to
maintain replacement value provisions in force. Such insurance shall be written
by an insurance company authorized to transact business in the state of Oregon
and shall provide that such insurance may not be canceled or terminated in any
manner without not less than ten (10) days’ written notice to Lessor and
additional loss payees named on such policy. Certificates of insurance, or
other satisfactory evidence of such insurance, shall be furnished by Tenant to
Lessor, upon written request.

 

20.  TAXES
AND ASSESSMENTS.  Tenant shall pay all
real property taxes upon the Leased Premises and all personal property taxes
upon property of Tenant located upon the Leased Premises, promptly as the same
become due. Real property taxes for the last partial fiscal year of this lease
shall be prorated between Lessor and Tenant as at the commencement date and
termination date of this

 

6

 

lease. Tenant shall pay all assessments hereafter levied against the
Leased Premises, or a portion thereof, during the term of this lease, including
assessments coming due to any special purpose governmental district; provided
that Tenant shall have the right to bancroft any such assessments for
improvements and, in the event such assessments are bancrofted, Tenant shall be
responsible for payment only of the payments coming due during the term of this
lease. In modification of this provision, in the event Tenant requests or
initiates any such improvement, in any manner now or hereafter provided by law,
Tenant shall have the right to bancroft any assessment for such improvement
only if Tenant has obtained the written consent of Lessor to such improvement;
provided that such consent shall not be unreasonably withheld.

 

If a new charge or fee relating to the
ownership or use of the Leased Premises or the receipt of rental therefrom or
in lieu of property taxes is assessed or imposed, then, to the extent permitted
by law, Tenant shall pay such charge or fee. Tenant, however, shall have no
obligation to pay any income, profits, or franchise tax levied on the net
income derived by Lessor from this lease.

 

21.  OPTION TO RENEW.  If Tenant is not in default at the time of the
giving of notice of the exercise of the option to renew, and at the
commencement date of the renewed term, Tenant shall have two (2) options
to renew the Lease, each for an additional period of five (5) years, by
giving written notice thereof to Lessor not less than ninety (90) days prior to
the expiration date of the initial term of the Lease or the current renewal
term of the Lease, whichever is applicable. Each renewed term shall be upon the
identical terms and conditions contained in the Lease for the initial term,
including annual adjustments to rent based upon the CPI as set forth herein.

 

22.  FIRST
RIGHT OF REFUSAL.  If, during the term of
this lease or any renewal term, Lessor is prepared to accept a bona fide offer
from any party to purchase the Leased Premises, Lessor shall give written
notice to Tenant of the terms of such purchase offer and Tenant shall have a
period of seven (7) days from the date of receipt of such notice within
which to elect to purchase on the identical terms and conditions of such offer,
by giving written notice of such election to Lessor. If Tenant fails to give
such timely written notice of election to purchase, Lessor shall have a period
of ninety (90) days from the date of the expiration of the period for giving of
notice by Tenant to transfer the premises upon terms not more favorable to the
purchaser than contained in such notice.

 

23.  MORTGAGE
PRIORITY.  This lease is and shall be
prior to any mortgage or deed of trust (“Encumbrance”) recorded after the date
of this lease affecting the Leased Premises. However, if any lender holding
such an Encumbrance requires that this lease be subordinate to the Encumbrance,
then Tenant agrees that the lease shall be subordinate to the Encumbrance if
the holder thereof agrees in writing with Tenant that as long as Tenant
performs Tenant’s obligations under this lease no foreclosure, deed given in lieu
of foreclosure, or sale pursuant to the terms of the Encumbrance, or other
steps or procedures taken under the Encumbrance shall affect Tenant’s rights
under this lease. If the foregoing condition is met, Tenant shall execute the
written agreement and any other documents required by the holder of the
Encumbrance to accomplish the purposes of this paragraph. If the Leased
Premises are sold as a result of foreclosure of any Encumbrance thereon, or
otherwise transferred by Lessor or any successor, Tenant shall attorn to the
purchaser or transferee.

 

7

 

24.  ESTOPPEL
CERTIFICATE.  Tenant shall, at any time
and from time to time, upon not less than ten (10) days’ prior written
notice from Lessor, execute, acknowledge, and deliver to Lessor a statement in
writing certifying that this lease is unmodified and in full force and effect
(or if there have been modifications, that this lease is in full force and
effect as modified and stating the modifications), stating the dates to which
the rent and other charges hereunder have been paid by Tenant, stating whether
or not Lessor is in default in the performance of any covenant, agreement or
condition contained in this lease and, if so, specifying each default, and stating
the address to which notices to Tenant shall be sent.

 

25.  OPTION TO PURCHASE.  Effective as of the end of the initial term of
the Lease or as of the end of any renewal term if that renewal option was
exercised, Tenant shall have the option to elect to purchase the Leased
premises for its then “current fair market value” (as defined herein), to be
paid in full in cash upon the closing of such sale. Any indebtedness due to
Lessor from Tenant under the terms of this lease shall be paid in full at the
time of the closing of this sale.

 

This option shall be exercised by Tenant
giving written notice to Lessor at least ninety (90) days prior to the end of
the initial term of the Lease or any renewal term, and the sale shall be closed
upon such expiration of the initial term or renewal term. Upon closing, Lessor
shall execute and deliver a statutory warranty deed to Tenant conveying the
Leased Premises free and clear of all liens and encumbrances except easements,
conditions and restrictions of record, real property taxes and assessments, any
lien or encumbrance created by or through Tenant, the interest of Tenant under
this lease, and any other interest not materially affecting Tenant’s use of the
premises. Rental coming due hereunder shall be prorated as at the date of
closing. Upon closing, Lessor shall furnish to Tenant, at Lessor’s expense, an
owner’s title insurance policy in the full amount of the purchase price naming
Tenant as vestee and insured free and clear of all exceptions except standard
printed exceptions and exceptions which are authorized to be contained in the
statutory warranty deed from Lessor to Tenant. Closing shall occur at Cascade
Title Co. and title insurance shall be issued by Cascade Title Co. If such
company is unable to close or issue insurance for any reason, closing shall
occur or title insurance shall be issued at such other duly authorized Lane
County title company as is selected by Lessor. All costs of closing shall be
allocated between the buyer and seller as is then customary in Lane County,
Oregon.

 

“Current fair market value” shall be
determined by agreement of Lessor and Tenant. If Lessor and Tenant are unable
to agree upon current fair market value within thirty (30) days after the date
Tenant exercises the option to purchase, then current fair market value shall
be determined by a mutually agreeable appraiser or, if the parties are unable
to agree upon an appraiser, then by having the parties each designate an MAl
appraiser and the two appraisers agree on a third MAl appraiser, with the
determination to be made by third appraiser, which determination shall be
binding and conclusive upon Lessor and Tenant, absent gross error or bad faith.
If Lessor and Tenant are unable to agree upon an appraiser, or if the two MAl
appraisers designated by them are unable to agree upon a third MAl appraiser,
then the third MAl appraiser shall be appointed by the Circuit Court of the
State of Oregon upon application of either Lessor or Tenant. In all cases the
cost of the appraiser, and the cost of having the appraiser appointed by the
court should that be necessary, shall be borne equally by Lessor and Tenant. “Current
fair market value” shall be determined as of the date of the appraisal. The
closing date shall be extended as needed as needed for any delay occasioned by
the appraisal process.

 

26.  COUNSEL.  The parties acknowledge that this lease has
been drafted by the law office of Hershner, Hunter, Moulton, Andrews &
Neill; that such law

 

8

 

office’ represents Tenant in connection with the drafting of this
lease; that such law office does not represent Lessor in connection with the
drafting of this lease; that Ronald E. Lee is represented by Doyle, Gartland,
Nelson & McCleery in connection with this lease, and Robert E. Lee and
Terry N. Lee are represented by Arnold Gallagher Saydack Percell &
Roberts in connection with this lease; and all parties hereby consent to
Hershner, Hunter, Moulton, Andrews & Neill drafting this lease and
representing Tenant in connection therewith.

 

27.  CONDITIONS.
 In the event Tenant makes an assignment
for the benefit of Tenant’s creditors of all or any portion of the assets of
Tenant; or in the event Tenant proposes or consents to a composition with
unsecured creditors of Tenant; or in the event any interest of Tenant hereunder
is levied upon by legal process for the enforcement of any debt of Tenant,
individually or jointly; or in the event Tenant becomes insolvent; Lessor shall
have the right to terminate this lease by giving written notice of termination
to Tenant. Specifically, the time periods for curing defaults provided in the
paragraph of this lease relating to default by Tenant shall not be applicable
to the provisions of this paragraph. If Tenant is a partnership consisting of
one or more individuals or business entities, the right of Lessor to terminate
this lease upon occurrence of the events specified in this paragraph shall
apply to each individual or business entity.

 

28.  WAIVER
OF SUBROGATION RIGHTS.  Each of the
parties hereto hereby releases the other, and the agents, employees and
successors of such other party, from all claims, demands and liabilities
arising from unintentional acts or omissions of the other party which result in
loss for which the party sustaining such loss is indemnified under a policy or
policies of insurance.

 

29.  HOLDING
OVER.  In the event Tenant shall hold
over after the expiration of the term of this lease, or an extended term, such
holding over shall be deemed to create a tenancy at will which may be
terminated at any time by Lessor or Tenant. Rent during such holdover period
shall be ten percent (10%) per month more than the rent due prior to such
termination, payable as provided in this lease.

 

30.  PRIOR
LEASE.  The parties agree that certain
Lease between the parties dated April 30, 1993, is hereby terminated
effective as of October 31, 1995, except for any rights or obligations
which accrued on or prior to October 31, 1995.

 

31.  NOTICES.
 Any notices required or permitted to be
given under the term of this lease, or by law, shall be in writing and may be
given by personal delivery or certified mail, directed to the parties at the
following addresses, or such other address as any party may designate in
writing prior to the time of the giving of such notice, or in any other manner
authorized by law:

 

	
   

  	
  LESSOR:

  
	
   

  	
  P.O. Box 400

  
	
   

  	
  Junction City Oregon 97448

  
	
   

  	
   

  
	
   

  	
  Ronald E. Lee

  
	
   

  	
  94862 Link Ridge Drive

  
	
   

  	
  Junction City Oregon 97448

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
  P.O. Box 400

  
	
   

  	
  Junction City Oregon 97448

  

 

Any notice
given shall be effective when actually received, or if given by certified mail,
then forty-eight (48) hours after the deposit

 

9

 

of such notice in the United States mail with
postage prepaid.

 

32.  BINDING
EFFECT.  All of the covenants,
agreements, conditions and terms contained in this lease shall be binding upon
apply and inure to the benefit of the successors and assigns of the respective
parties hereto, and all said covenants sha11 be construed as covenants running
with the land. However, nothing in this paragraph shall be construed as
modifying in any way any restrictions on assignment and sublease provided in
this lease.

 

33.  WAIVER.
 No waiver of any right arising out of a
breach of any covenant, term or condition of this lease shall be a waiver of
any right arising out of any other or subsequent breach of the same or any
other covenant, term or condition or a waiver of the covenant, term or
condition itself.

 

34.  INTEGRATION. 
This lease constitutes a final and complete statement of the agreement
between the parties, and fully supersedes all prior agreements or negotiations,
written or oral.

 

35.  LEGAL
PROCEEDINGS.  In the event any legal
proceeding is commenced for the purpose of interpreting or enforcing any
provision of this lease, the prevailing party in such proceeding shall be
entitled to recover a reasonable attorney’s fee in such proceeding, or any
appeal thereof, in addition to the costs and disbursements allowed by law.

 

36.  LESSOR
NOT LIABLE TO TENANT FOR DAMAGES.  Lessor
shall not be liable for any damages caused, or alleged to be caused by failure
to keep the Leased Premises in repair, nor for any damage caused or alleged to
be caused by or from any leaking, bursting, or failure of any pipe or other
facility, water, ice, or snow, nor for any damages arising from acts or neglect
of co-tenants or other occupants of the Leased Premises or of any owners or
occupants of adjacent or contiguous property.

 

Dated this 12th day of October 1995

 

	
   

  	
  By:

  	
  /s/ Robert B. Lee

  	
   

  
	
   

  	
   

  	
  Robert B. Lee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald E. Lee

  	
   

  
	
   

  	
   

  	
  Ronald E. Lee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry N. Lee

  	
   

  
	
   

  	
   

  	
  Terry N. Lee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COUNTRY COACH, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Courtermanche

  	
   

  
	
   

  	
   

  	
  Jack Courtermanche

  	
   

  
						

 

10

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