Document:

EXHIBIT 10.5

 

AMENDED
AND RESTATED LEASE

 

THIS AMENDED AND
RESTATED LEASE (this “Lease”)
is entered into this 27th day of October, 2004 between DFA, LLC (“Lessor”) and AHERN RENTALS, INC. (“Lessee”).

 

RECITALS

 

A.                                   By Indenture of
Lease dated May 1, 2004 (the “Original
Lease”), Lessor leased to Lessee those certain premises, as is,
situated in the City of Garland, County of Dallas and State of Texas, and
described as follows: Property located at 2820 Market Street, Garland, TX
75041, as more particularly described on the attached Exhibit A (the “Premises”).

 

B.                                     Lessor and Lessee
desire to amend, restate and supersede the Original
Lease as of the date of this Lease. 
Lessor and Lessee hereby agree that the Original Lease is hereby
amended, restated and superseded in its entirety effective as of the date of
this Lease and Lessor hereby leases the Premises to Lessee, and Lessee hereby
leases the Premises from Lessor, on the terms and conditions set forth in this
Lease.

 

TERMS
AND CONDITIONS

 

Term.

 

1(a)         The term of this Lease shall commence on the date of this
Lease and continue through October 27, 2014, unless sooner terminated.

 

Rental.

 

1(b)(1)             Lessee shall pay to
Lessor as rent for the Premises the sum of $7,650 per month during the first
year of the lease term.

 

1(b)(2)             Commencing on November 1, 2005 and on
each November 1st (each, an “Annual
Rent Adjustment Date”) during the remainder of the lease term, the
monthly rent payment shall be increased by an amount equal to the greater of (i) three
percent (3%) of the rent paid for the prior year, or (ii) the same
percentage as the percentage increase in the Consumer
Price Index comparing the figure for the month prior to the month in
which the adjustment is to occur with the figure for the same month in the
preceding year, except that if the rent is adjusted pursuant to Section 1(b)(3) the
percentage under this clause (ii) to be used for calculating the
applicable increase in rent to commence on the next Annual Rent
Adjustment Date following a Major Improvement Rent Adjustment Date (as defined
in Section 1(b)(3) below) shall mean the same percentage as the
percentage increase in the Consumer Price
Index comparing the figure for the month prior to the month in which
the adjustment is to occur with the figure for the month prior to the preceding
Major Improvement Rent Adjustment Date. 
Comparisons shall be made using the Index
for the U.S. City Average — All Urban Wage Earners published by the
U.S. Department of Labor, Bureau of Labor Statistics.  If that Index is discontinued, the parties
shall use the nearest comparable index measuring changes in the cost of living
during the period involved.

 

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1(b)(3)             In the event during the term of this
Lease, Lessor constructs any Major Improvement (defined below) on the Premises
for Lessee’s benefit, beginning on the first day of the second calendar month
following the date of completion of the Major Improvement (a “Major Improvement Rent Adjustment Date”)
the monthly rent shall be adjusted to be the fair market rental value of the
Premises as of the completion of the Major Improvement, provided in no event
shall the monthly rent be less than the monthly rent in effect immediately
prior to the construction of the Major Improvement.  Upon completion of the Major Improvement, the
parties shall discuss and attempt to determine by mutual agreement the monthly
rent to be paid beginning on the Major Improvement Rent Adjustment Date.  If the parties are unable to reach agreement
before the 30th day following the completion of the Major
Improvement, the matter shall be determined by appraisal.

 

If an appraiser is required under this Section 1(b)(3), the monthly rent shall be determined by a qualified,
independent real property appraiser familiar with commercial rental values in
the area.  The appraiser shall be
selected by Lessee from a list of not fewer than three such individuals
submitted by Lessor.  If Lessee does not
make the selection within ten days after submission of the list, Lessor may do
so.  If Lessor does not submit such a
list within ten (10) days after written request from Lessee to do so,
Lessee may name as an appraiser any individual with such qualifications.  Within thirty (30) days after appointment,
the appraiser shall furnish to both parties an appraisal of the fair market
rental value of the Premises, which shall be final and binding on the
parties.  The cost of the appraisal shall
be borne equally by the parties.

 

For purpose of this Lease “Major Improvement” shall mean a structure
erected at the request of the Lessee as a permanent improvement on the Premises
that is intended to enhance the value of the Premises or an addition made at
the request of the Lessee that increases the size of a building on the Premises
or the size of the Premises.

 

1(b)(4)             Rent will be paid in
advance on the first day of each month to Lessor at the address for Lessor set
forth in this Lease, or at such other address as Lessor may designate in
writing to Lessee.  Rent is uniformly
apportionable day to day.

 

Use of
Premises.

 

(2a)                            The Lessee shall use the
Premises during the term of this lease for the conduct of the following
business: operations of an equipment rental company and for no other purpose
whatsoever without Lessor’s written consent.

 

(2b)                           The Lessee will not make any
unlawful, improper or offensive use of the Premises; the Lessee will not suffer
any strip or waste thereof; the Lessee will not permit any objectionable noise
or odor to escape or to be emitted from the Premises or do anything or permit
anything to be done upon or about the Premises in any way tending to create a
nuisance; the Lessee will not sell or permit to be sold any product, substance
or service upon or about the Premises, excepting in the ordinary course of
Lessee’s business or such as Lessee may be licensed by law to sell and as may
be herein expressly permitted.

 

(2c)                            The Lessee will not cause
the Premises at any time to fall into such a state of repair or disorder as to
increase the fire hazard thereon; the Lessee will not install any power

 

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machinery on the Premises except in the ordinary course of Lessee’s
business or under the supervision and with written consent of the Lessor; the
Lessee will not store gasoline or other highly combustible materials on the
Premises at any time except in the ordinary course of Lessee’s business; the
Lessee will not use the Premises in such a way or for such a purpose that the
fire insurance on the improvements on the Premises is thereby cancelled.

 

(2d)                           The Lessee shall comply at
Lessee’s own expense with all laws and regulations of any municipal, county,
state, federal or other public authority respecting the use of the Premises.
These include, without limitation, all laws, regulations and ordinances
pertaining to air and water quality, Hazardous Materials as herein defined,
waste disposal, air emissions, and other environmental matters.  As used herein, Hazardous Material means any
hazardous or toxic substance, material, or waste, including but not limited to
those substances, materials, and waste listed in the U.S. Department of
Transportation Hazardous Materials Table or by the U.S. Environmental
Protection Agency as hazardous substances and amendments thereto, petroleum
products, or such other substances, materials, and waste that are or become
regulated under any applicable local, state, or federal law.  Neither Lessee nor Lessor is required to make
any alterations to comply with the Americans with Disabilities Act.

 

(2e)                            The Lessee shall regularly
occupy and use the Premises for the conduct of Lessee’s business, and shall not
abandon or vacate the Premises for more than ten days without written approval
of Lessor.

 

(2f)                              Except in the ordinary
course of Lessee’s business, Lessee shall not cause or permit any Hazardous
Material to be brought upon, kept or used in or about the Premises by Lessee,
its agents, employees, contractors, or invitees without the prior written
consent of Lessor, which consent will not be unreasonably withheld so long as
Lessee demonstrates to Lessor’s reasonable satisfaction that such Hazardous
Material is necessary or useful to Lessee’s business and will be used, kept,
and stored in a manner that will comply at all times with all laws regulating
any such Hazardous Material so brought upon or used or kept on or about the
Premises.

 

Utilities.

 

(3)                                  The Lessee shall pay
for all heat, light, water, power, and other services or utilities used in the
Premises during the term of this lease.

 

Repairs and
Improvements.

 

(4a)                            The Lessor shall not be
required to make any repairs, alterations, additions or improvements to or upon
the Premises during the term of this lease, except only those hereinafter
specifically provided for; the Lessee hereby agrees to maintain and keep the
Premises, including all interior and exterior walls and doors, ordinary
maintenance of heating, ventilating and cooling systems, interior wiring,
plumbing and drain pipes to sewers or septic tank, in good order and repair
during the entire term of this lease, at Lessee’s own cost and expense, and to
replace all glass which may be broken or damaged during the term hereof in the
windows and doors of the Premises with glass of as good or better quality as
that now in use; it is further agreed that the

 

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Lessee may make alterations, additions or improvements to or upon the
Premises without first obtaining the consent of the Lessor.

 

(4b)                           The Lessor agrees to make
all necessary structural repairs to the building, including exterior walls,
foundation, roof, gutters and downspouts, and the abutting sidewalks.  Lessor shall also make all capital repairs
and replacements to the Premises unless such is necessitated solely by Lessee’s
failure to maintain in accordance with subsection 4(a).  The Lessor reserves and at any and all times
shall have the right to alter, repair or improve the building of which the
Premises are a part, or to add thereto, and for that purpose at any time may
erect scaffolding and all other necessary structures about and upon the
Premises and Lessor and Lessor’s representatives, contractors and workers for
that purpose may enter in or about the Premises with such materials as Lessor
may deem necessary therefor, and Lessee waives any claim to damages, including
loss of business resulting therefrom, provided Lessor gives Lessee not less
than 48 hours’ advance notice and such activities are conducted without
material interference with Lessee’s use of the Premises.

 

Lessor’s Right of Entry.

 

(5)                                  It shall be lawful
for the Lessor, the Lessor’s agents and representatives, at any reasonable time
upon 48 hours’ advance notice to enter into or upon the Premises for the
purpose of examining into the condition thereof, or for any other lawful
purpose.

 

Right of
Assignment.

 

(6)                                  The Lessee will not
assign, transfer, pledge, hypothecate, surrender or dispose of this lease, or
any interest herein, sublet, or permit any other person or persons whomsoever
to occupy the Premises without the written consent of the Lessor being first
obtained in writing; this lease is personal to Lessee; Lessee’s interests, in
whole or in part, cannot be sold, assigned, transferred, seized or taken by
operation at law, or under or by virtue of any execution or legal process,
attachment or proceedings instituted against the Lessee, or under or by virtue
of any bankruptcy or insolvency proceedings had in regard to the Lessee, or in
any other manner, except as above mentioned. 
Notwithstanding any provision in this Lease, Lessee may, without Lessor
consent, execute and deliver one or more leasehold mortgages (or leasehold
trust deeds) to any lender to Lessee with respect hereto.

 

Liens.

 

(7)                                  The Lessee will not
permit any lien of any kind, type or description to be placed or imposed upon the
Lessee’s interest in improvements in which the Premises are situated, or any
part thereof, or Lessee’s interest in the land on which they stand, other than
a leasehold deed of trust or leasehold mortgage granted by Lessee in favor of
Bank of America, as Administrative Agent and Wachovia Bank, National
Association, as Collateral Agent and Syndication Agent and the successors and
assigns thereof (collectively “Senior Lien”)
and a leasehold deed of trust or leasehold mortgage granted by Lessee in favor
of Tennenbaum Capital Partners, LLC and the successors and assigns thereof (“Junior Lien”).

 

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Ice, Snow, Debris

 

(8)                                  If the Premises are
located at street level, then at all times Lessee shall keep the sidewalks in
front of the Premises free and clear of ice, snow, rubbish, debris and
obstruction; and if the Lessee occupies the entire building, the Lessee will
not permit rubbish, debris, ice or snow to accumulate on the roof of the
building so as to stop up or obstruct gutters or downspouts or cause damage to
the roof, and will save harmless and protect the Lessor against any injury
whether to Lessor or to Lessor’s property or to any other person or property
caused by Lessee’s failure in that regard.

 

Overloading of
Floors.

 

(9)                                  The Lessee will not
overload the floors of the Premises in such a way as to cause any undue or
serious stress or strain upon the building in which the Premises are located,
or any part thereof, and the Lessor shall have the right, at any time, to call
upon any competent engineer or architect whom the Lessor may choose, to decide
whether or not the floors of the Premises, or any part thereof, are being
overloaded so as to cause any undue or serious stress or strain on the
building, or any part thereof, and the decision of the engineer or architect
shall be final and binding upon the Lessee; and in the event that it is the
opinion of the engineer or architect that the stress or strain is such as to
endanger or injure the building, or any part thereof, then and in that event
the Lessee agrees immediately to relieve the stress or strain, either by
reinforcing the building or by lightening the load which causes such stress or
strain, in a manner satisfactory to the Lessor.

 

(10)                            Intentionally Blank.

 

Liability
Insurance.

 

(11)                            At all times during the
term hereof, the Lessee will, at the Lessee’s own expense, keep in effect and
deliver to the Lessor liability insurance policies in form, in such amounts and
which such deductibles, and with an insurer, in each case satisfactory to the
Lessor.  Such policies shall insure both
the Lessor and the Lessee against all liability for damage to persons or
property in, upon, or about the Premises. 
It shall be the responsibility of the Lessee to purchase casualty
insurance with extended coverage so as to insure any structure on the Premises
against damage caused by fire or the effects of fire (smoke, heat, means of
extinguishment, etc.), or any other means of loss and to insure all of the
Lessee’s belongings upon the Premises, of whatsoever nature, against the
same.  Such casualty insurance policies
shall be in such form, in such amounts and which such deductibles, and with
such insurer, in each case as are satisfactory to the Lessor.  With respect to these policies, Lessee shall
cause the Lessor to be named as an additional insured party and as loss
payee.  Lessee agrees to and shall
indemnify and hold Lessor harmless against any and all claims and demands
arising from the negligence of the Lessee, Lessee’s officers, agents, invitees
and/or employees, as well as those arising from Lessee’s failure to comply with
any covenant of this lease on Lessee’s part to be performed, and shall at
Lessee’s own expense defend the Lessor against any and all suits or actions
arising out of such negligence, actual or alleged, and all appeals therefrom
and shall satisfy and discharge any judgment which may be awarded against
Lessor in any such suit or action.

 

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Fixtures.

 

(12)                            All partitions, plumbing,
electrical wiring, additions to or improvements upon the Premises, whether
installed by the Lessor or Lessee, shall be and become a part of the building
in which the Premises are located as soon as installed and the property of the
Lessor unless otherwise herein provided. 
Notwithstanding any other provisions of this Lease, Lessee’s furniture,
trade fixtures, equipment and personal property shall at all times remain the
property of Lessee.

 

Light and Air.

 

(13)                            This lease does not grant any
rights of access to light and air over the Premises or any adjacent property.

 

Damage by
Casualty, Fire and Duty to Repair.

 

(14)                            In the event of damage to
the improvements by fire or other casualty to the extent of twenty-five (25)
per cent or more of the sound value thereof, Lessor or Lessee may elect to
terminate the lease as of the date of such damage by written notice thereof to
the other party.  Absent such termination
by either party or if the improvements in which the Premises are located be but
partially destroyed and the damage so occasioned shall not amount to the extent
indicated above, then the Lessor shall repair the same with all convenient
speed and shall have the right to take possession of and occupy, to the
exclusion of the Lessee, all or any part thereof in order to make the necessary
repairs, and the Lessee hereby agrees to vacate upon request, all or any part
thereof which the Lessor may require for the purpose of making necessary
repairs, and for the period of time between the day of such damage and until
such repairs have been substantially completed there shall be such an abatement
of rent as the nature of the injury or damage and its interference with the
occupancy of the Premises by the Lessee shall warrant; however, if the Premises
be but slightly injured and the damage so occasioned shall not cause any
material interference with the occupation of the Premises by Lessee, then there
shall be no abatement of rent and the Lessor shall repair the damage with all
convenient speed.

 

Waiver of
Subrogation Rights.

 

(15)                            Neither the Lessor nor the
Lessee shall be liable to the other for loss arising out of damage to or
destruction of the Premises, or the building or improvement of which the
Premises are a part or with which they are connected, or the contents of any
thereof, when such loss is caused by any of the perils which are or could be
included within or insured against by a standard form of fire insurance with
extended coverage, including sprinkler leakage insurance, if any. All such
claims for any and all loss, however caused, hereby are waived. Such absence of
liability shall exist whether or not the damage or destruction is caused by the
negligence of either Lessor or Lessee or by any of their respective agents,
servants or employees. It is the intention and agreement of the Lessor and the
Lessee that the rentals reserved by this lease have been fixed in contemplation
that both parties shall fully provide their own insurance protection at their
own expense, and that both parties shall look to their respective insurance
carriers for reimbursement of any such loss, and further, that the insurance
carriers involved shall not be entitled to subrogation under any circumstances
against any party to this lease. Neither the

 

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Lessor nor the
Lessee shall have any interest or claim in the other’s insurance policy or
policies, or the proceeds thereof, unless specifically covered therein as an
additional insured.

 

Eminent Domain.

 

(16)                            In case of the condemnation
or purchase of all or any substantial part of the Premises by any public or
private corporation with the power of condemnation this lease may be
terminated, effective on the date possession is taken or title is transferred,
by either party hereto on written notice to the other and in that case the
Lessee shall not be liable for any rent after the termination date.

 

(17)                            Intentionally blank.

 

Delivering Up
Premises on Termination.

 

(18)                            At the expiration of the
lease term or upon any sooner termination thereof, the Lessee will quit and
deliver up the Premises and all future erections or additions to or upon the
same, broom-clean, to the Lessor or those having Lessor’s estate in the
Premises, peaceably, quietly, and in as good order and condition as when
received, reasonable use and wear thereof, damage by fire, unavoidable casualty
and the elements alone and other events not required hereunder to be repaired
by Lessee excepted, as the same are now in or hereafter may be put in by the
Lessor.

 

Additional
Covenants or Exceptions.

 

(19)                            Intentionally blank.

 

(20)                            Lessee shall reimburse
Lessor upon demand for all premiums for casualty insurance with extended
coverage purchased by Lessee to insure any structure on the Premises.  If Lessee fails to maintain the insurance
required by paragraph (11), Lessor may obtain such insurance and Lessee shall
reimburse Lessor upon demand for reasonable premiums payable for such insurance
coverage.

 

(21)                            Lessee shall pay when due
all taxes, assessments and public charges on the Premises.

 

Attachment
Bankrupt Default.

 

PROVIDED, ALWAYS,
and these presents are upon these conditions, that (1) if the Lessee shall
be in arrears in the payment of rent for a period of ten days after the same
becomes due, or (2) if the Lessee shall fail or neglect to perform or
observe any of the covenants and agreements contained herein on Lessee’s part
to be done, kept, performed and observed and such default shall continue for
twenty days or more after written notice of such failure or neglect shall be
given to Lessee, except that if the failure is of such a nature that it cannot
be remedied fully within the 20-day period, this requirement shall be satisfied
if Lessee begins correction of the failure within the 20-day period and
thereafter proceeds with reasonable diligence and in good faith to effect the
remedy as soon as practicable, or (3) if the Lessee shall be declared
bankrupt or insolvent according to law, or (4) if any assignment of all or
substantially all of Lessee’s

 

7

 

property shall be made for the benefit of creditors, or (5) if on
the expiration of this lease Lessee fails to surrender possession of the
Premises, the Lessor or those having Lessor’s estate in the Premises, may terminate
this lease and, lawfully, at Lessor’s option immediately or at any time
thereafter, without demand or notice, enter into and upon the Premises and
every part thereof and repossess the same, and expel Lessee and those claiming
by, through and under Lessee and remove Lessee’s effects at Lessee’s expense,
forcibly if necessary and store the same, all without being deemed guilty of
trespass and without prejudice to any remedy which otherwise might be used for
arrears of rent or preceding breach of covenant.

 

Neither the termination of this lease by
forfeiture nor the taking or recovery of possession of the Premises shall
deprive Lessor of any other action, right, or remedy against Lessee for
possession, rent or damages, nor shall any omission by Lessor to enforce any
forfeiture, right or remedy to which Lessor may be entitled be deemed a waiver
by Lessor of the right to enforce the performance of all terms and conditions
of this lease by Lessee.

 

In the event of any re-entry by Lessor,
Lessor may lease or relet the Premises in whole or in part to any tenant or
tenants who may be satisfactory to Lessor, for any duration, and for the best
rent, terms and conditions as Lessor may reasonably obtain. Lessor shall apply
the rent received from any such tenant first to the cost of retaking and
reletting the Premises, including remodeling required to
obtain any such tenant, and then to any arrears of rent and future rent
payable under this lease and any other damages to which Lessor may be entitled
hereunder.

 

Any property which Lessee leaves on the
Premises more than ten (10) days after abandonment or expiration of the
lease, or for more than ten days after any termination of the lease by Lessor,
shall be deemed to have been abandoned, and Lessor may remove and sell the
property at public or private sale as Lessor sees fit, without being liable for
any prosecution therefor or for damages by reason thereof, and the net proceeds
of any such sale shall be applied toward the expenses of Lessor and rent as
aforesaid, and the balance of such amounts, if any, shall be held for and paid
to the Lessee.

 

Holding Over.

 

In the event the Lessee for any reason shall
hold over after the expiration of this lease, such holding over shall not be
deemed to operate as a renewal or extension of this lease, but shall only
create a tenancy at sufferance which may be terminated at will at any time by
the Lessor.

 

Attorney Fees
and Court Costs.

 

In case suit or action is instituted to
enforce compliance with any of the terms, covenants or conditions of this
lease, or to collect the rental which may become due hereunder, or any portion
thereof, the losing party agrees to pay the prevailing party’s reasonable
attorney fees incurred throughout such proceeding, including at trial, on
appeal, and for post-judgment collection. The Lessee agrees to pay and
discharge all Lessor’s costs and expenses, including Lessor’s reasonable
attorney’s fees that shall arise from enforcing any provision or covenants of
this lease even though no suit or action is instituted.

 

Should the Lessee be or become the debtor in
any bankruptcy proceeding, voluntarily, involuntarily or otherwise, either
during the period this lease is in effect or while there exists any

 

8

 

outstanding
obligation of the Lessee created by this lease in favor of the Lessor, the
Lessee agrees to pay the Lessor’s reasonable attorney fees and costs which the
Lessor may incur as the result of Lessor’s participation in such bankruptcy
proceedings. It is understood and agreed by both parties that applicable
federal bankruptcy law or rules of procedure may affect, alter, reduce or
nullify the attorney fee and cost awards mentioned in the preceding sentence.

 

Waiver.

 

Any waiver by the Lessor of any breach of any
covenant herein contained to be kept and performed by the Lessee shall not be
deemed or considered as a continuing waiver, and shall not operate to bar or
prevent the Lessor from declaring a forfeiture for any succeeding breach,
either of the same condition or covenant or otherwise.

 

Recitals.

 

The recitals of this Lease are hereby
incorporated in to this Lease and made a part hereof.

 

Notices.

 

Any notice required by the terms of this
lease to be given by one party hereto to the other or desired so to be given,
shall be sufficient if in writing, contained in a sealed envelope, and sent
first class mail, with postage fully prepaid, and if intended for the Lessor
herein, then if addressed to the Lessor at DFA, LLC c/o Ahern Rentals, Inc.,
4241 S. Arville Street, Las Vegas, Nevada 89103 and if intended for the Lessee,
then if addressed to the Lessee at Ahern Rentals, Inc., 4241 S. Arville
Street, Las Vegas, Nevada 89103.  Any
such notice shall be deemed conclusively to have been delivered to the
addressee forty-eight hours after the deposit thereof in the U.S. Mail.

 

Heirs and
Assigns.

 

All rights, remedies and liabilities herein
given to or imposed upon either of the parties hereto shall extend to, inure to
the benefit of and bind, as the circumstances may require, the heirs,
successors, personal representatives and so far as this lease is assignable by
the terms hereof, to the assigns of such parties.

 

In construing this lease, it is understood
that the Lessor or the Lessee may be more than one person; that if the context
so requires, the singular pronoun shall be taken to mean and include the
plural, and that generally all grammatical changes shall be made, assumed and
implied to make the provisions hereof apply equally to corporations and to
individuals.

 

Lessee’s Offset Right.

 

Notwithstanding any provision in this Lease,
in the event Lessee pays any amounts on Lessee’s Guaranty dated July 10,
2002 in favor of First American Bank, SSB, (the “Bank”), pertaining
to certain debts of Lessor secured by Lessor’s interest in the Premises, Lessee
shall have the right to offset such amounts so paid against rent thereafter to
become due under this Lease, except that if the Bank forecloses on the Premises
and obtains a deficiency judgment against Lessee under the Guaranty, payment of
any portion of the deficiency judgment may not

 

9

 

be offset against
rent payable to the Bank or its assignee under this Lease. For purposes of this
paragraph, Bank shall include any entity that has bought the Bank or the Bank
has merged with.

 

10

 

IN
WITNESS WHEREOF, the parties have executed this Lease
on the day and year first hereinabove written, any corporate signature of
Lessee being by due authority of its Board of Directors and any signature of
Lessor being by due authority of its managing member.

 

	
  Lessor:

  	
  Lessee:

  
	
  DFA, LLC

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
  DON F. AHERN

  	
   

  	
  By:

  	
  /s/

  	
  DON F. AHERN

  	
   

  
	
   

  	
   

  	
  Don F. Ahern, Manager

  	
   

  	
   

  	
   

  	
  Don F. Ahern, President

  	
   

  

 

11

 

EXHIBIT A

 

LEGAL
DESCRIPTION

 

Being Lot 1 in Block 1, of J.D. INDUSTRIES INC., ADDITION, an Addition
to the City of Garland, Texas, according to the map thereof recorded in Volume
94110, Page 2710, Map Records of Dallas County,
Texas.EXHIBIT 10.6

 

FIRST
AMENDMENT TO LEASE

 

THIS FIRST AMENDMENT
TO LEASE (this “Amendment”)
is made as of January 1, 2005 between DFA,
LLC (“Lessor”), and AHERN RENTALS,
INC. (“Lessee”).

 

RECITALS

 

A.                                   Lessor
and Lessee are parties to that certain Amended and Restated Lease dated October 27,
2004 (the “Lease”) pursuant to
which Lessor leased to Lessee the property located at 6813 McComber Street,
Sacramento, California, as more particularly described in the Lease (the “Existing Premises”).

 

B.                                     Lessor and Lessee desire to amend the Lease
as set forth below.

 

AGREEMENTS

 

For valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Lessor and Lessee hereby amend the Lease as follows:

 

1.                                       Effective as of the date of this Amendment,
the real property located at 6809 McComber Street, Sacramento, California
95828, as more particularly described on the attached Exhibit A
(the “Added Premises”) is added to and made a part of the Premises
leased by Lessor to Lessee pursuant to the Lease.  Effective as of the date of this Amendment
the term “Premises” under the Lease shall mean the Existing Premises and the Added
Premises.

 

2.                                       Effective as of the date of this Amendment,
the rent payable by Lessee to Lessor under Section 1(b)(i) of
the Lease shall increase from $2,600 per month to $6,300 per month.

 

2.                                       Except as expressly amended herein, the Lease
shall remain unchanged and in full force and effect.

 

IN WITNESS WHEREOF, Lessor and Lessee have executed this
Amendment as of the date first set forth above.

 

	
  LESSOR:

  	
  DFA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ DON F. AHERN

  	
   

  
	
   

  	
   

  	
       Don F. Ahern, Manager

  
	
   

  	
   

  
	
  LESSEE:

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ DON F. AHERN

  	
   

  
	
   

  	
  Name:

  	
   Don F. Ahern

  	
   

  
	
   

  	
  Title:

  	
   President

  	
   

  
						

 

 

AMENDED
AND RESTATED LEASE

 

THIS AMENDED AND
RESTATED LEASE (this “Lease”)
is entered into this 27th day of October, 2004 between DFA, LLC (“Lessor”) and AHERN RENTALS, INC. (“Lessee”).

 

RECITALS

 

A.                                   By
Indenture of Lease dated May 1, 2004 (the “Original Lease”), Lessor leased to Lessee those certain
premises, as is, situated in the City of Sacramento, County of Sacramento and
State of California, and described as follows: Property located at 6813
McComber Street, Sacramento, CA 95828, as more particularly described on the
attached Exhibit A
(the “Premises”).

 

B.                                     Lessor
and Lessee desire to amend, restate and supersede the
Original Lease as of the date of this Lease. 
Lessor and Lessee hereby agree that the Original Lease is hereby
amended, restated and superseded in its entirety effective as of the date of this
Lease and Lessor hereby leases the Premises to Lessee, and Lessee hereby leases
the Premises from Lessor, on the terms and conditions set forth in this Lease.

 

TERMS
AND CONDITIONS

 

Term.

 

1(a)                            The term of this Lease shall commence on the date of this
Lease and continue through October 27, 2014, unless sooner terminated.

 

Rental.

 

1(b)(1)             Lessee
shall pay to Lessor as rent for the Premises the sum of $2,600 per month during
the first year of the lease term.

 

1(b)(2)             Commencing
on November 1, 2005 and on each November 1st (each, an “Annual Rent Adjustment Date”) during the
remainder of the lease term, the monthly rent payment shall be increased by an
amount equal to the greater of (i) three percent (3%) of the rent paid for
the prior year, or (ii) the same percentage as the percentage increase in
the Consumer Price Index
comparing the figure for the month prior to the month in which the adjustment
is to occur with the figure for the same month in the preceding year, except
that if the rent is adjusted pursuant to Section 1(b)(3) the
percentage under this clause (ii) to be used for calculating the
applicable increase in rent to commence on the next Annual Rent
Adjustment Date following a Major Improvement Rent Adjustment Date (as defined
in Section 1(b)(3) below) shall mean the same percentage as the
percentage increase in the Consumer Price
Index comparing the figure for the month prior to the month in which
the adjustment is to occur with the figure for the month prior to the preceding
Major Improvement Rent Adjustment Date. 
Comparisons shall be made using the Index
for the U.S. City Average — All Urban Wage Earners published by the
U.S. Department of Labor, Bureau of Labor Statistics.  If that Index is discontinued, the parties
shall use the nearest comparable index measuring changes in the cost of living
during the period involved.

 

1

 

1(b)(3)             In
the event during the term of this Lease, Lessor constructs any Major
Improvement (defined below) on the Premises for Lessee’s benefit, beginning on
the first day of the second calendar month following the date of completion of
the Major Improvement (a “Major Improvement
Rent Adjustment Date”) the monthly rent shall be adjusted to be the
fair market rental value of the Premises as of the completion of the Major
Improvement, provided in no event shall the monthly rent be less than the
monthly rent in effect immediately prior to the construction of the Major
Improvement.  Upon completion of the
Major Improvement, the parties shall discuss and attempt to determine by mutual
agreement the monthly rent to be paid beginning on the Major Improvement Rent
Adjustment Date.  If the parties are
unable to reach agreement before the 30th day following the
completion of the Major Improvement, the matter shall be determined by
appraisal.

 

If an appraiser is required under this Section 1(b)(3), the monthly rent shall be determined by a qualified,
independent real property appraiser familiar with commercial rental values in
the area.  The appraiser shall be
selected by Lessee from a list of not fewer than three such individuals
submitted by Lessor.  If Lessee does not
make the selection within ten days after submission of the list, Lessor may do
so.  If Lessor does not submit such a
list within ten (10) days after written request from Lessee to do so,
Lessee may name as an appraiser any individual with such qualifications.  Within thirty (30) days after appointment,
the appraiser shall furnish to both parties an appraisal of the fair market rental
value of the Premises, which shall be final and binding on the parties.  The cost of the appraisal shall be borne
equally by the parties.

 

For purpose of this Lease “Major Improvement” shall mean a structure
erected at the request of the Lessee as a permanent improvement on the Premises
that is intended to enhance the value of the Premises or an addition made at
the request of the Lessee that increases the size of a building on the Premises
or the size of the Premises.

 

1(b)(4)             Rent
will be paid in advance on the first day of each month to Lessor at the address
for Lessor set forth in this Lease, or at such other address as Lessor may
designate in writing to Lessee.  Rent is
uniformly apportionable day to day.

 

Use of
Premises.

 

(2a)                            The
Lessee shall use the Premises during the term of this lease for the conduct of
the following business: operations of an equipment rental company and for no
other purpose whatsoever without Lessor’s written consent.

 

(2b)                           The
Lessee will not make any unlawful, improper or offensive use of the Premises;
the Lessee will not suffer any strip or waste thereof; the Lessee will not
permit any objectionable noise or odor to escape or to be emitted from the
Premises or do anything or permit anything to be done upon or about the Premises
in any way tending to create a nuisance; the Lessee will not sell or permit to
be sold any product, substance or service upon or about the Premises, excepting
in the ordinary course of Lessee’s business or such as Lessee may be licensed
by law to sell and as may be herein expressly permitted.

 

(2c)                            The
Lessee will not cause the Premises at any time to fall into such a state of
repair or disorder as to increase the fire hazard thereon; the Lessee will not
install any power

 

2

 

machinery on the Premises except in the ordinary course of Lessee’s
business or under the supervision and with written consent of the Lessor; the
Lessee will not store gasoline or other highly combustible materials on the
Premises at any time except in the ordinary course of Lessee’s business; the
Lessee will not use the Premises in such a way or for such a purpose that the
fire insurance on the improvements on the Premises is thereby cancelled.

 

(2d)                           The
Lessee shall comply at Lessee’s own expense with all laws and regulations of
any municipal, county, state, federal or other public authority respecting the
use of the Premises. These include, without limitation, all laws, regulations
and ordinances pertaining to air and water quality, Hazardous Materials as
herein defined, waste disposal, air emissions, and other environmental
matters.  As used herein, Hazardous
Material means any hazardous or toxic substance, material, or waste, including
but not limited to those substances, materials, and waste listed in the U.S.
Department of Transportation Hazardous Materials Table or by the U.S.
Environmental Protection Agency as hazardous substances and amendments thereto,
petroleum products, or such other substances, materials, and waste that are or
become regulated under any applicable local, state, or federal law.  Neither Lessee nor Lessor is required to make
any alterations to comply with the Americans with Disabilities Act.

 

(2e)                            The
Lessee shall regularly occupy and use the Premises for the conduct of Lessee’s
business, and shall not abandon or vacate the Premises for more than ten days
without written approval of Lessor.

 

(2f)                              Except
in the ordinary course of Lessee’s business, Lessee shall not cause or permit
any Hazardous Material to be brought upon, kept or used in or about the
Premises by Lessee, its agents, employees, contractors, or invitees without the
prior written consent of Lessor, which consent will not be unreasonably
withheld so long as Lessee demonstrates to Lessor’s reasonable satisfaction
that such Hazardous Material is necessary or useful to Lessee’s business and
will be used, kept, and stored in a manner that will comply at all times with
all laws regulating any such Hazardous Material so brought upon or used or kept
on or about the Premises.

 

Utilities.

 

(3)                                  The
Lessee shall pay for all heat, light, water, power, and other services or
utilities used in the Premises during the term of this lease.

 

Repairs and
Improvements.

 

(4a)                            The
Lessor shall not be required to make any repairs, alterations, additions or
improvements to or upon the Premises during the term of this lease, except only
those hereinafter specifically provided for; the Lessee hereby agrees to
maintain and keep the Premises, including all interior and exterior walls and
doors, ordinary maintenance of heating, ventilating and cooling systems,
interior wiring, plumbing and drain pipes to sewers or septic tank, in good
order and repair during the entire term of this lease, at Lessee’s own cost and
expense, and to replace all glass which may be broken or damaged during the
term hereof in the windows and doors of the Premises with glass of as good or
better quality as that now in use; it is further agreed that the

 

3

 

Lessee may make alterations, additions or improvements to or upon the
Premises without first obtaining the consent of the Lessor.

 

(4b)                           The
Lessor agrees to make all necessary structural repairs to the building,
including exterior walls, foundation, roof, gutters and downspouts, and the
abutting sidewalks.  Lessor shall also
make all capital repairs and replacements to the Premises unless such is
necessitated solely by Lessee’s failure to maintain in accordance with subsection 4(a).  The Lessor reserves and at any and all times
shall have the right to alter, repair or improve the building of which the
Premises are a part, or to add thereto, and for that purpose at any time may
erect scaffolding and all other necessary structures about and upon the
Premises and Lessor and Lessor’s representatives, contractors and workers for
that purpose may enter in or about the Premises with such materials as Lessor
may deem necessary therefor, and Lessee waives any claim to damages, including
loss of business resulting therefrom, provided Lessor gives Lessee not less
than 48 hours’ advance notice and such activities are conducted without
material interference with Lessee’s use of the Premises.

 

Lessor’s Right of Entry.

 

(5)                                  It
shall be lawful for the Lessor, the Lessor’s agents and representatives, at any
reasonable time upon 48 hours’ advance notice to enter into or upon the
Premises for the purpose of examining into the condition thereof, or for any
other lawful purpose.

 

Right of
Assignment.

 

(6)                                  The
Lessee will not assign, transfer, pledge, hypothecate, surrender or dispose of
this lease, or any interest herein, sublet, or permit any other person or
persons whomsoever to occupy the Premises without the written consent of the
Lessor being first obtained in writing; this lease is personal to Lessee;
Lessee’s interests, in whole or in part, cannot be sold, assigned, transferred,
seized or taken by operation at law, or under or by virtue of any execution or
legal process, attachment or proceedings instituted against the Lessee, or under
or by virtue of any bankruptcy or insolvency proceedings had in regard to the
Lessee, or in any other manner, except as above mentioned.  Notwithstanding any provision in this Lease,
Lessee may, without Lessor consent, execute and deliver one or more leasehold
mortgages (or leasehold trust deeds) to any lender to Lessee with respect
hereto.

 

Liens.

 

(7)                                  The
Lessee will not permit any lien of any kind, type or description to be placed
or imposed upon the Lessee’s interest in improvements in which the Premises are
situated, or any part thereof, or Lessee’s interest in the land on which they
stand, other than a leasehold deed of trust or leasehold mortgage granted by
Lessee in favor of Bank of America, as Administrative Agent and Wachovia Bank,
National Association, as Collateral Agent and Syndication Agent and the
successors and assigns thereof (collectively “Senior
Lien”) and a leasehold deed of trust or leasehold mortgage granted
by Lessee in favor of Tennenbaum Capital Partners, LLC and the successors and
assigns thereof (“Junior Lien”).

 

4

 

Ice, Snow, Debris

 

(8)                                  If
the Premises are located at street level, then at all times Lessee shall keep
the sidewalks in front of the Premises free and clear of ice, snow, rubbish,
debris and obstruction; and if the Lessee occupies the entire building, the
Lessee will not permit rubbish, debris, ice or snow to accumulate on the roof
of the building so as to stop up or obstruct gutters or downspouts or cause
damage to the roof, and will save harmless and protect the Lessor against any
injury whether to Lessor or to Lessor’s property or to any other person or
property caused by Lessee’s failure in that regard.

 

Overloading of
Floors.

 

(9)                                  The
Lessee will not overload the floors of the Premises in such a way as to cause
any undue or serious stress or strain upon the building in which the Premises
are located, or any part thereof, and the Lessor shall have the right, at any
time, to call upon any competent engineer or architect whom the Lessor may
choose, to decide whether or not the floors of the Premises, or any part
thereof, are being overloaded so as to cause any undue or serious stress or
strain on the building, or any part thereof, and the decision of the engineer
or architect shall be final and binding upon the Lessee; and in the event that
it is the opinion of the engineer or architect that the stress or strain is
such as to endanger or injure the building, or any part thereof, then and in
that event the Lessee agrees immediately to relieve the stress or strain,
either by reinforcing the building or by lightening the load which causes such
stress or strain, in a manner satisfactory to the Lessor.

 

(10)                            Intentionally
Blank.

 

Liability
Insurance.

 

(11)                            At
all times during the term hereof, the Lessee will, at the Lessee’s own expense,
keep in effect and deliver to the Lessor liability insurance policies in form,
and with an insurer, satisfactory to the Lessor.  Such policies shall insure both the Lessor
and the Lessee against all liability for damage to persons or property in,
upon, or about the Premises.  It shall be
the responsibility of the Lessee to purchase casualty insurance with extended
coverage so as to insure any structure on the Premises against damage caused by
fire or the effects of fire (smoke, heat, means of extinguishment, etc.), or
any other means of loss and to insure all of the Lessee’s belongings upon the
Premises, of whatsoever nature, against the same.  With respect to these policies, Lessee shall
cause the Lessor to be named as an additional insured party.  Lessee agrees to and shall indemnify and hold
Lessor harmless against any and all claims and demands arising from the
negligence of the Lessee, Lessee’s officers, agents, invitees and/or employees,
as well as those arising from Lessee’s failure to comply with any covenant of
this lease on Lessee’s part to be performed, and shall at Lessee’s own expense
defend the Lessor against any and all suits or actions arising out of such
negligence, actual or alleged, and all appeals therefrom and shall satisfy and
discharge any judgment which may be awarded against Lessor in any such suit or
action.

 

5

 

Fixtures.

 

(12)                            All
partitions, plumbing, electrical wiring, additions to or improvements upon the
Premises, whether installed by the Lessor or Lessee, shall be and become a part
of the building in which the Premises are located as soon as installed and the
property of the Lessor unless otherwise herein provided.  Notwithstanding any other provisions of this
Lease, Lessee’s furniture, trade fixtures, equipment and personal property
shall at all times remain the property of Lessee.

 

Light and Air.

 

(13)                            This
lease does not grant any rights of access to light and air over the Premises or
any adjacent property.

 

Damage by
Casualty, Fire and Duty to Repair.

 

(14)                            In
the event of the destruction of the improvements in which the Premises are
located by fire or other casualty, either party hereto may terminate this lease
as of the date of fire or casualty, provided, however, that in the event of
damage to the improvements by fire or other casualty to the extent of
twenty-five (25) per cent or more of the sound value thereof, Lessor or Lessee
may elect to terminate the lease as of the date of such damage by written
notice thereof to the other party. 
Absent such termination by either party or if the improvements in which
the Premises are located be but partially destroyed and the damage so occasioned
shall not amount to the extent indicated above, then the Lessor shall repair
the same with all convenient speed and shall have the right to take possession
of and occupy, to the exclusion of the Lessee, all or any part thereof in order
to make the necessary repairs, and the Lessee hereby agrees to vacate upon
request, all or any part thereof which the Lessor may require for the purpose
of making necessary repairs, and for the period of time between the day of such
damage and until such repairs have been substantially completed there shall be
such an abatement of rent as the nature of the injury or damage and its
interference with the occupancy of the Premises by the Lessee shall warrant;
however, if the Premises be but slightly injured and the damage so occasioned
shall not cause any material interference with the occupation of the Premises
by Lessee, then there shall be no abatement of rent and the Lessor shall repair
the damage with all convenient speed.

 

Waiver of
Subrogation Rights.

 

(15)                            Neither
the Lessor nor the Lessee shall be liable to the other for loss arising out of
damage to or destruction of the Premises, or the building or improvement of
which the Premises are a part or with which they are connected, or the contents
of any thereof, when such loss is caused by any of the perils which are or
could be included within or insured against by a standard form of fire
insurance with extended coverage, including sprinkler leakage insurance, if
any. All such claims for any and all loss, however caused, hereby are waived.
Such absence of liability shall exist whether or not the damage or destruction
is caused by the negligence of either Lessor or Lessee or by any of their
respective agents, servants or employees. It is the intention and agreement of
the Lessor and the Lessee that the rentals reserved by this lease have been
fixed in contemplation that both parties shall fully provide their own
insurance protection at their own expense, and that both parties shall look to
their respective insurance carriers for

 

6

 

reimbursement of
any such loss, and further, that the insurance carriers involved shall not be
entitled to subrogation under any circumstances against any party to this
lease. Neither the Lessor nor the Lessee shall have any interest or claim in
the other’s insurance policy or policies, or the proceeds thereof, unless
specifically covered therein as a joint insured.

 

Eminent Domain.

 

(16)                            In
case of the condemnation or purchase of all or any substantial part of the
Premises by any public or private corporation with the power of condemnation
this lease may be terminated, effective on the date possession is taken or
title is transferred, by either party hereto on written notice to the other and
in that case the Lessee shall not be liable for any rent after the termination
date.

 

(17)                            Intentionally
blank.

 

Delivering Up
Premises on Termination.

 

(18)                            At
the expiration of the lease term or upon any sooner termination thereof, the
Lessee will quit and deliver up the Premises and all future erections or
additions to or upon the same, broom-clean, to the Lessor or those having
Lessor’s estate in the Premises, peaceably, quietly, and in as good order and
condition as when received, reasonable use and wear thereof, damage by fire,
unavoidable casualty and the elements alone and other events not required
hereunder to be repaired by Lessee excepted, as the same are now in or
hereafter may be put in by the Lessor.

 

Additional
Covenants or Exceptions.

 

(19)                            Intentionally
blank.

 

(20)                            Lessee
shall reimburse Lessor upon demand for all premiums for casualty insurance with
extended coverage purchased by Lessee to insure any structure on the Premises.

 

(21)                            Lessee
shall pay when due all taxes, assessments and public charges on the Premises.

 

Attachment
Bankrupt Default.

 

PROVIDED, ALWAYS,
and these presents are upon these conditions, that (1) if the Lessee shall
be in arrears in the payment of rent for a period of ten days after the same
becomes due, or (2) if the Lessee shall fail or neglect to perform or observe
any of the covenants and agreements contained herein on Lessee’s part to be
done, kept, performed and observed and such default shall continue for twenty
days or more after written notice of such failure or neglect shall be given to
Lessee, except that if the failure is of such a nature that it cannot be
remedied fully within the 20-day period, this requirement shall be satisfied if
Lessee begins correction of the failure within the 20-day period and thereafter
proceeds with reasonable diligence and in good faith to effect the remedy as
soon as practicable, or (3) if the Lessee shall be declared bankrupt or
insolvent according to law, or (4) if any assignment of all or
substantially all of Lessee’s property shall be made for the benefit of
creditors, or (5) if on the expiration of this lease Lessee

 

7

 

fails to surrender possession of the Premises, the Lessor or those
having Lessor’s estate in the Premises, may terminate this lease and, lawfully,
at Lessor’s option immediately or at any time thereafter, without demand or
notice, enter into and upon the Premises and every part thereof and repossess
the same, and expel Lessee and those claiming by, through and under Lessee and
remove Lessee’s effects at Lessee’s expense, forcibly if necessary and store
the same, all without being deemed guilty of trespass and without prejudice to
any remedy which otherwise might be used for arrears of rent or preceding
breach of covenant.

 

Neither the termination of this lease by
forfeiture nor the taking or recovery of possession of the Premises shall
deprive Lessor of any other action, right, or remedy against Lessee for
possession, rent or damages, nor shall any omission by Lessor to enforce any
forfeiture, right or remedy to which Lessor may be entitled be deemed a waiver
by Lessor of the right to enforce the performance of all terms and conditions
of this lease by Lessee.

 

In the event of any re-entry by Lessor,
Lessor may lease or relet the Premises in whole or in part to any tenant or
tenants who may be satisfactory to Lessor, for any duration, and for the best
rent, terms and conditions as Lessor may reasonably obtain. Lessor shall apply
the rent received from any such tenant first to the cost of retaking and
reletting the Premises, including remodeling required to
obtain any such tenant, and then to any arrears of rent and future rent
payable under this lease and any other damages to which Lessor may be entitled
hereunder.

 

Any property which Lessee leaves on the
Premises more than ten (10) days after abandonment or expiration of the
lease, or for more than ten days after any termination of the lease by Lessor,
shall be deemed to have been abandoned, and Lessor may remove and sell the
property at public or private sale as Lessor sees fit, without being liable for
any prosecution therefor or for damages by reason thereof, and the net proceeds
of any such sale shall be applied toward the expenses of Lessor and rent as
aforesaid, and the balance of such amounts, if any, shall be held for and paid
to the Lessee.

 

Holding Over.

 

In the event the Lessee for any reason shall
hold over after the expiration of this lease, such holding over shall not be
deemed to operate as a renewal or extension of this lease, but shall only
create a tenancy at sufferance which may be terminated at will at any time by
the Lessor.

 

Attorney Fees
and Court Costs.

 

In case suit or action is instituted to
enforce compliance with any of the terms, covenants or conditions of this
lease, or to collect the rental which may become due hereunder, or any portion
thereof, the losing party agrees to pay the prevailing party’s reasonable
attorney fees incurred throughout such proceeding, including at trial, on
appeal, and for post-judgment collection. The Lessee agrees to pay and
discharge all Lessor’s costs and expenses, including Lessor’s reasonable
attorney’s fees that shall arise from enforcing any provision or covenants of
this lease even though no suit or action is instituted.

 

Should the Lessee be or become the debtor in
any bankruptcy proceeding, voluntarily, involuntarily or otherwise, either
during the period this lease is in effect or while there exists any outstanding
obligation of the Lessee created by this lease in favor of the Lessor, the
Lessee

 

8

 

agrees to pay the
Lessor’s reasonable attorney fees and costs which the Lessor may incur as the
result of Lessor’s participation in such bankruptcy proceedings. It is
understood and agreed by both parties that applicable federal bankruptcy law or
rules of procedure may affect, alter, reduce or nullify the attorney fee
and cost awards mentioned in the preceding sentence.

 

Waiver.

 

Any waiver by the Lessor of any breach of any
covenant herein contained to be kept and performed by the Lessee shall not be
deemed or considered as a continuing waiver, and shall not operate to bar or
prevent the Lessor from declaring a forfeiture for any succeeding breach,
either of the same condition or covenant or otherwise.

 

Recitals.

 

The recitals of this Lease are hereby
incorporated in to this Lease and made a part hereof.

 

Notices.

 

Any notice required by the terms of this
lease to be given by one party hereto to the other or desired so to be given,
shall be sufficient if in writing, contained in a sealed envelope, and sent
first class mail, with postage fully prepaid, and if intended for the Lessor
herein, then if addressed to the Lessor at DFA, LLC c/o Ahern Rentals, Inc.,
4241 S. Arville Street, Las Vegas, Nevada 
89103 and if intended for the Lessee, then if addressed to the Lessee at
Ahern Rentals, Inc., 4241 S. Arville Street, Las Vegas, Nevada  89103. 
Any such notice shall be deemed conclusively to have been delivered to
the addressee forty-eight hours after the deposit thereof in the U.S. Mail.

 

Heirs and
Assigns.

 

All rights, remedies and liabilities herein
given to or imposed upon either of the parties hereto shall extend to, inure to
the benefit of and bind, as the circumstances may require, the heirs,
successors, personal representatives and so far as this lease is assignable by
the terms hereof, to the assigns of such parties.

 

In construing this lease, it is understood
that the Lessor or the Lessee may be more than one person; that if the context
so requires, the singular pronoun shall be taken to mean and include the
plural, and that generally all grammatical changes shall be made, assumed and
implied to make the provisions hereof apply equally to corporations and to
individuals.

 

9

 

IN
WITNESS WHEREOF, the parties have executed this Lease
on the day and year first hereinabove written, any corporate signature of
Lessee being by due authority of its Board of Directors and any signature of
Lessor being by due authority of its managing member.

 

	
  Lessor:

  	
  Lessee:

  
	
  DFA, LLC

  	
  AHERN
  RENTALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ DON
  F. AHERN

  	
   

  	
  By:

  	
  /s/ DON
  F. AHERN

  	
   

  
	
   

  	
  Don F.
  Ahern, Manager

  	
   

  	
  Don F.
  Ahern, President

  
								

 

10

 

EXHIBIT A

 

LEGAL
DESCRIPTION

 

The land
referred to in this Lease is situated in the City of Sacramento, County of
Sacramento, State of California, and is described as follows:

 

PARCEL A:

 

PARCEL 4, AS
SAID PARCEL IS SHOWN ON THAT CERTAIN PARCEL MAP, PORTION OF SOUTHEAST 1/4 SECTION 35,
T. 8 N. R. 5E., M.D.B.&M,, FILED MARCH 9, 1976 IN BOOK 25 OF PARCEL
MAPS, AT PAGE 11, IN THE COUNTY RECORDER’S OFFICE.

 

EXCEPTING
THEREFROM ALL OIL, GAS, OTHER HYDROCARBON SUBSTANCES AND MINERALS BELOW A DEPTH
OF 200 FEET.

 

PARCEL B:

 

AN EASEMENT
FOR ROAD PURPOSES OVER A STRIP OF LAND 50 FEET IN WIDTH, THE CENTERLINE OF
WHICH IS DESCRIBED AS FOLLOWS:

 

BEGINNING AT A
POINT LOCATED SOUTH 89 DEG. 19’ 00” WEST 1545.12 FEET AND NORTH 0 DEG. 30’ 00”
WEST 1410.95 FEET FROM THE SOUTHWEST CORNER OF SAID SECTION 35 RUNNING THENCE
SOUTH 0 DEG. 30’ EAST TO FLORIN ROAD; EXCEPTING THEREFROM ANY PORTION LYING
WITHIN THE REALTY HEREIN DESCRIBED.

 

PARCEL C:

 

AN EASEMENT
AND RIGHT OF WAY, BUT NOT THE EXCLUSIVE RIGHT, FOR INGRESS AND EGRESS, ON, OVER
AND ACROSS ALL THAT PORTION OF THE SOUTHEAST ONE-QUARTER OF SAID SECTION 35,
DESCRIBED AS FOLLOWS:

 

BEGINNING AT
THE SOUTHWEST CORNER OF THE PROPERTY CONVEYED TO ORIVILLE 0. CLARK, ET UX, BY
GRANT DEED, RECORDED JULY 11, 1962 IN BOOK 4477, PAGE 633, OFFICIAL
RECORDS; THENCE FROM SAID POINT OF BEGINNING ALONG THE WEST BOUNDARY OF SAID
TRACT OF LAND THE FOLLOWING FOUR COURSES AND DISTANCES: (1) NORTH 01 DEG.
18’l0” WEST 22.36 FEET; (2) CURVING TO THE LEFT ON TAN ARC OF 840.00 FEET
RADIUS SAID ARC BEING SUBTENDED BY A CHORD BEARING NORTH 16 DEG. 29’ 10” WEST
440.01 FEET; (3) CURVING TO THE RIGHT ON AN ARC OF 1670.85 FEET RADIUS
SAID ARC BEING SUBTENDED BY A CHORD BEARING NORTH 30 DEG. 59’ 29” EAST 39.62
FEET AND (4) NORTH 89 DEG. 03’50” EAST 34.53 FEET; THENCE SOUTHEASTERLY
CURVING TO THE LEFT ON AN ARC OF 1640.85 FEET RADIUS, SAID ARC BEING SUBTENDED
BY A CHORD BEARING SOUTH 31 DEG. 21’ 40” EAST 26.65 FEET; THENCE CURVING

 

11

 

TO THE RIGHT
ON AN ARC OF 870.00 FEET RADIUS, SAID ARC BEING SUBTENDED BY A CHORD BEARING
SOUTH 16 DEG. 21’ 10” EAST 460.96 FEET; THENCE SOUTH 01 DEG. 18’ 10” EAST 22.29
FEET TO A POINT ON THE SOUTH BOUNDARY OF SAID 3.000 ACRE TRACT OF LAND; THENCE
ALONG SAID SOUTH BOUNDARY SOUTH 88 DEG. 32’ 50” WEST 30.00 FEET TO THE POINT OF
BEGINNING.

 

 

APN: 064-0100-004-0000

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