Document:

exv10w5

Exhibit 10.5

	ADDENDUM 2 TO AGREEMENT FOR THE AVAILABILITY OF SPACE FOR THE STORAGE OF
GOODS 

AND OFFICES FOR THE MANAGEMENT OF THIS DATED AUGUST 12, 2002

The undersigned:

ProLogis Belgium II BVBA, registered with the RPR under number 0472.435.431, with its offices in
Park Hill, Building A, 3rd Floor, Jan Emiel Mommaertslaan 18, B-1831 Diegem and hereby
represented by Gerrit Jan Meerkerk,

hereinafter referred to as ‘ProLogis II’,

and

Skechers EDC sprl, with its registered office in 4041 Milmort, Parc Industriel Hauts-Sarts, Zone 3,
avenue du Parc Industriel, registered with the RPR 0478.543.758, hereby represented by David
Weinberg,

hereafter referred to as ‘Skechers EDC’ or as ‘CUSTOMER’,

AFTER HAVING CONSIDERED THE FOLLOWING:

	1.	 	On August 12, 2002 ProLogis and Skechers International have signed an “Agreement for the
availability of space for the storage of goods and offices for the management of this”
concerning the following real estate: ProLogis Park Liège Distribution Center I with a total
surface area of approximately 22,458 m 2 and approximately 100 car parking spaces
located in the Industrial Park Hauts-Sarts, Milmort, Liège, Avenue du Parc Industriel
(hereafter referred to as ‘the Availability Agreement’);

	2.	 	On August 27, 2003 Skechers International transfered all its rights and obligations under the
Availability Agreement to Skechers EDC in full accordance with the terms and conditions
thereof.

3. ProLogis and the CUSTOMER have now agreed to align the duration of the Availability Agreement
with the commencement and duration of the Agreement for the availability of space for the storage
of goods and offices for the management of this” concerning the following real estate: ProLogis
Park Liège Distribution Center II between Skechers EDC and ProLogis Belgium III sprl (with its
registered office in Regus Pegasus Park, Pegasuslaan 5, B-1831 Diegem), of the same date as this
Addendum (the “Availability Agreement DC II”).

4. The terms with a capital will have the same meaning as set forth in the Availability Agreement,
unless expressly set forth otherwise herein.

 

 

	HAVE AGREED THE FOLLOWING:

	1	 	Duration of the Availability Agreement

Article 5 of the Availability Agreement is replaced as follows :

	 	 	The availability of the Premises is rendered for a duration of five (5) years as of the
Commencement Date provided for in the Availability Agreement DC II, i.e. in principle on 1
April 2009, to which is referred to as the ‘Commencement Date’, unless parties confirm
otherwise in writing (if the availability of the Premises starts later than 1 April 2009 and
insofar as mutually agreed upon in writing by the Parties).

	 	 	If either party does not terminate the Agreement by registered mail not later than twelve (12)
months prior to the end of the duration set forth in the first paragraph of this Article, i.e.
in principle March 31, 2014 or the date as agreed upon between parties in writing as set forth
in the preceding paragraph, this Agreement shall be tacitly renewed under the same terms as
stipulated in this Agreement for subsequent periods of five (5) years in the absence of the
required termination notification by either party, without prejudice to Article 20 and without
any compensation to ProLogis nor VAT adjustment to be paid, except as set forth in article 2 of
this Agreement. This Agreement will however in any case end by operation of law on the latter
of the following dates : March 31, 2029 or the twentieth anniversary of the Commencement Date
as agreed upon in writing by the Parties as set forth in this Article. After the latter of
these dates, this Agreement can not be renewed in accordance with this paragraph.

	 	 	Notice needs to be given by bailliff’s writ or by registered letter. Notices hereunder shall be
deemed given and effective (i) if delivered by a bailiff, upon delivery, or (ii) if sent by
certified or registered mail, within five (5) days of deposit in the post office.

2 Various clauses

	2.1	 	The other terms and conditions of the
Availability Agreement remain fully
applicable between parties with respect to
the Premises, except for Articles 20 and 22
of the Availability Agreement which are no
longer applicable due to the decision of the
CUSTOMER not to commit to use DC III and DC
IV.
	 
	 	 	No amendment or modification of this Addendum shall take effect unless it is in writing and is
executed by duly authorized representatives of the parties.
	 
	2.2	 	If one or more of the provisions
of this Addendum is declared to
be invalid, illegal or
unenforceable in any respect
under the applicable law, the
validity, legality and
enforceability of the remaining
provisions contained herein
shall not in any way be
affected. In the case whereby
such invalid, illegal or
unenforceable clause affects the
entire nature of this Addendum,
each of the parties shall use
its best efforts to immediately
and in good faith negotiate a
legally valid replacement
provision.

 

 

3 Applicable law and competent courts

This Addendum shall be governed by and construed in accordance with Belgian law. In the event of
any dispute relating to the conclusion, validity, the implementation or the interpretation of this
Addendum, the courts of Liège will have sole and exclusive jurisdiction.

This Agreement was made out in four (4) copies in Milmort, May 20, 2008. Each party acknowledges to
have received its original copy.

	 	 	 

	/s/ Gerrit Jan Meerkerk

	 	/s/ David Weinberg
	 

	 	 
	Gerrit Jan Meerkerk,

	 	David Weinberg,
	ProLogis Belgium II Sprl

	 	Skechers EDC

 

 

Appendix 1

List of Additional Items

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Skechers DC#2 Milmort, ADDITIONAL WORKS TI	 	 	INVESTMENT	 	RESPONSIBLE	 	RESPONSIBLE
	 	 	 	 	 	 	Cost Skechers	 	 	Cost	 	OWNED BY	 	MAINTENANCE  *	 	RENEWAL  **
	 	 	 	 	 	 	direct	 	 	Prologis	 	SKECHERS	 	PROLOGIS	 	SKECHERS	 	PROLOGIS	 	SKECHERS	 	PROLOGIS
	Items additional to the Contract Specification
	 		 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5.2	 	Changing 2
fire doors Rf 1h, 4x6 m
	 	 	 	 	 	€	22,050.00	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.3	 	Two extra escape doors
	 	 	 	 	 	€	7,350.00	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.4	 	Barrier next to the parking road
	 	 	 	 	 	€	18,201.92	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.5	 	Adaptions lighting capacity (200 Lux between racks)
	 	 	 	 	 	€	179,295.84	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.7	 	Motion detection in racking lanes
	 	 	 	 	 	€	24,363.09	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.8a	 	Water supplies
	 	 	 	 	 	€	2,076.90	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.8b	 	Slophoppers
	 	 	 	 	 	€	7,703.69	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.9	 	Adaptions acces control Intercom
	 	 	 	 	 	€	5,826.12	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.10	 	High voltage
	 	 	 	 	 	€	124,676.12	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.11	 	Electrical extra existing DC new DC ask by Skechers
	 	 	 	 	 	€	105,515.56	 	 	 	 	 	addendum 1	 	 	X	 	 	 	 	 	 	 	 	 	 	addendum 1
	5.12a	 	IT room on mezzanine
	 	€	23,665.15	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.12b	 	IT room on mezzanine floor cabling
	 	€	108,888.71	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.13	 	Offer for radio-system
	 	€	12,086.54	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.15	 	Extra porte Hall 1 (electrical)
	 	€	8,821.84	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.16	 	24 extra connection Telefoon atenne computer system
	 	€	1,653.60	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.17	 	more high of IT-room
	 	€	8,880.62	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.19	 	addaption of hight doubble doors
	 	€	475.00	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.20	 	reeling removebal
	 	€	5,889.00	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.21	 	addapion of the service road by sprinkler tank
	 	€	5,530.00	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.22	 	barrier between parking and entrance road
	 	€	5,135.00	 	 	€	5,135.00	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.23	 	extra water and sewage in IT Room
	 	€	1,577.49	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.24	 	bicyclesheet
	 	€	4,240.36	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.26	 	painting
	 	€	675.44	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.27	 	woks high tension
	 	€	1,775.00	 	 	€	1,775.00	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.28	 	work on music installation
	 	€	2,234.60	 	 	 	 	 	 	X	 	 	 	 	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	5.29	 	greenery
	 	€	3,940.00	 	 	€	3,940.00	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.1	 	Exit doors
safety as 103 en 106
	 	 	 	 	 	€	11,413.71	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.4	 	Offices fire detectors
	 	 	 	 	 	€	49,524.93	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.5	 	Heating in offices
	 	 	 	 	 	€	43,190.95	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.6	 	Thermostate protection
	 	 	 	 	 	€	1,537.60	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.7	 	Modification sanitary area’s
	 	 	 	 	 	€	9,392.17	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.8	 	Electrical “loze” pipe
	 	 	 	 	 	€	5,789.41	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.11	 	IT locaal (outside walls)
	 	 	 	 	 	€	25,889.94	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.13	 	Sewer pit (sterfput)
	 	 	 	 	 	€	987.48	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.14	 	Change connections fire brigade
	 	 	 	 	 	€	11,439.46	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.15	 	extra lighting
	 	 	 	 	 	€	6,779.59	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.16	 	adaptions control room demanded by fire department
	 	 	 	 	 	€	4,901.00	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 
	6.17	 	parking buffers 50% sketcher. 50% Prologis
	 	€	2,100.00	 	 	€	2,100.00	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.19	 	tiles in
sanitary floor on the mezzanine
	 	 	 	 	 	€	3,153.13	 	 	 	 	 	 	X	 	 	 	X	 	 	 	 	 	 	 	 	 	 	 	X	 

 

			
	*	 	Maintenance as indicated in the lease agreement and the general terms and conditions.
	 
	**	 	Renewal as indicated in the lease agreement and the general terms and conditions.exv10w6

Exhibit 10.6

AMENDMENT TO LEASE AGREEMENT

     THIS AMENDMENT TO LEASE AGREEMENT (“Amendment”) is made and entered into this
18th day of December, 2009 by and between HF LOGISTICS I, LLC, a Delaware limited
liability company (“Landlord”) and SKECHERS USA, INC., a Delaware corporation
(“Tenant”).

RECITALS

     A. Landlord and Tenant entered into a Lease Agreement dated September 25, 2007 (the
“Lease”) pursuant to which Landlord leased to Tenant certain premises as more fully
described therein (the “Premises”).

     B. The parties desire to amend the Lease.

     NOW, THEREFORE, for a good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

     1. The Lease Term (as described on Page 3) shall begin on the Commencement Date and shall end
on the last day of the two hundred fortieth (240th) full calendar month thereafter (the
“Termination Date”). There will be no renewal options, and accordingly Addendum 3 to the
Lease is hereby deleted in its entirety.

     2. This Amendment is intended to enable the Landlord to procure at least Fifty Million Dollars
($50,000,000) in third-party construction financing for the Premises. In the event that
construction financing is not procured in time for construction to begin by June 1, 2010, this
Amendment shall be null and void and of no further effect and the parties shall revert back to the
original Lease in its entirety.

     3. The Base Rent (as described on Page 3) shall be Nine Hundred Thirty-Three Thousand Eight
Hundred Ninety-Four and 44/100 Dollars ($933,894.44) per month during the entire Lease Term, and
Addendum 1 is hereby amended accordingly. The Base Rent is computed as $.513 per square foot based
on 1,820,457 net rentable square feet of space in the Building (and the definition of “Building”
(as described on Page 1) is hereby amended accordingly), but is subject to adjustment as set forth
in Addendum 4, Paragraph 1 if the actual number of net rentable square feet in the Building is
higher or lower than that amount.

     4. The Premises shall consist of the Building, together with the parking areas, landscaped
areas and other areas consisting of approximately 110 acres of land situated at the NWC of Theodore
Avenue and Eucalyptus Avenue in Moreno Valley (Rancho Belago), California, as shown on the revised
Site Plan attached to this Amendment as “Exhibit “A” (Revised)”.

     5. Tenant shall have a period (the “Fixturization Period”) of four and one-half (41/2)
months after the date of Substantial Completion to install its tenant improvements, fixtures and
personal property. All terms and conditions of this Lease shall be in full force

 

 

and effect during the Fixturization Period (including, but not limited to, the obligation to
pay Base Rent and Operating Expenses). Provided, however, that all Base Rent paid by Tenant during
the Fixturization Period shall be credited against Base Rent due for the last four and one-half
(41/2) months of the first year of the Term. The Fixturization Period is in addition to any
additional time afforded to Tenant for fixturization which may arise prior to the date of
Substantial Completion.

     6. The following provisions of the Lease are hereby deleted:

          (a) Delay in Possession (Pages 1-3), except those provisions which relate to the Pre-Ordered
Equipment, which shall remain in full force and effect.

          (b) Tenant Improvements (Addendum 2, Paragraph 6).

          (c) Indemnification Regarding Prior Lease (Addendum 4, Paragraph 7).

     7. The first sentence in Addendum 2, Paragraph 5(a) (Determination of Substantial Completion)
is hereby amended to delete the following: “provided that such commencement of construction shall
not be more than 120 days following receipt of all entitlements, approvals and all required
building permits from the applicable governmental authorities”. The second sentence of Addendum 2,
Paragraph 5(b) is hereby deleted.

     8. The Final Plans shall provide that solar panels will be installed (not later than eighteen
(18) months after the date of Substantial Completion) as required for the office space within the
Building (approximately 52,000 square feet).

     9. Addendum 4, Paragraph 3 (Expansion Site) is hereby deleted in its entirety and replaced
with the following:

     
“Expansion Rights. Tenant may elect to expand into
another building (the “Expansion Building”) of approximately
500,000 net rentable square feet to be constructed on the
approximately 24.2 acres of land which is situated to the west of
where the Building is to be constructed, as depicted on Exhibit “A”
(Revised) (the “Expansion Area”), provided the following
conditions are satisfied:

     (a) Tenant shall give Landlord notice of its intention to
expand (the “Expansion Notice”) not later than a date which
is five (5) years after the date of Substantial Completion, time
being of essence.

     (b) The Expansion Building must contain approximately 500,000
square feet of net rentable space, and the style of the Expansion
Building and quality of the construction of the Expansion Building
shall be consistent with the style of the Building and the quality
of the construction of the Building.

2

 

     (c) Construction of the Expansion Building shall commence as
soon as possible after Tenant gives the Expansion Notice, subject to
reasonable time periods to develop plans, specifications and
construction drawings (which shall be subject to mutual approval of
Landlord and Tenant), to obtain any necessary entitlements
(including building permits), to obtain consents of governmental
authorities and third parties, and to procure construction financing
reasonably acceptable to Landlord. The expansion of the Building
will be subject to Landlord and Tenant jointly procuring
construction financing which requires that Landlord provide no more
than thirty percent (30%) of the hard costs of construction as
equity.

     (d) If the expansion right is exercised by Tenant and the
Expansion Building is constructed, for all purposes under this Lease
the term “Building” shall thereafter be deemed to include the
Expansion Building.

     (e) Tenant shall take occupancy of the Expansion Building no
later than ten (10) business days after the date of Substantial
Completion. Upon Tenant’s occupancy of the Expansion Building, Base
Rent under the Lease shall be increased to account for the net
rentable area within the Expansion Building, and shall be computed
as the Base Rent for the original Building (on a per square foot
basis), increased for (i) increases in construction and ownership
costs, including increases in costs of financing, and (ii) increases
due to general increases in the market rental in the geographic area
in which the Premises are situated (it being understood that any
such increases are independent of the increases in clause (i)
above).

     (f) If Tenant fails to timely exercise its right to expand, or
if Tenant exercises its right to expand but any of the foregoing
conditions are not satisfied (either at the time that Tenant gives
the Expansion Notice, or at any time thereafter until construction
of the Expansion Building commences) then Tenant shall have no right
to expand, the expansion right shall terminate, and the portion of
the Premises upon which the Expansion Building was to be constructed
shall be deemed removed from the description of the “Premises”.
Tenant acknowledges that Landlord shall thereafter be free to use or
develop such land in any way that it deems proper, and Tenant shall
have no rights whatsoever with respect thereto, or to object to any
such use or development, all of which rights are expressly waived by
Tenant.

3

 

     (g) The parties will execute any further amendment to the Lease
or other documentation reasonably required as a result of the
exercise (or non-exercise) of Tenant’s expansion rights and/or the
construction of the Expansion Building.”

     10. Notwithstanding anything to the contrary in the Lease, Operating Expenses shall not
include any property management fee payable to Landlord, or any affiliate of Landlord, or any third
party, and Tenant shall have no obligation to pay any property management fee.

     11. If Tenant (or its affiliate) becomes a member of Landlord, then any default by Tenant (or
such affiliate) under the Landlord’s Operating Agreement (beyond any applicable notice and/or cure
period set forth therein) shall be an immediate Event of Default under the Lease.

     12. The Final Plans (as defined in Addendum 2, Paragraph 1 of the Lease) as approved by the
Landlord and Tenant, are attached hereto as Exhibit “B”.

     13. Capitalized terms used in this Amendment shall have the same meanings as set forth in the
Lease, unless a different definition is set forth herein.

     14. Except as amended herein, all terms and conditions of the Lease shall remain in full force
and effect, as originally written.

     15. This Amendment shall not be effective unless and until the parties, or their
affiliates, have entered into a “joint venture agreement” as described in that certain term sheet dated December 18, 2009
and initialed by the parties.

(signature page follows)

4

 

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 	 	 

	“LANDLORD”	 	“TENANT”	 	 
	 
	 	 	 	 	 	 	 	 
	HF LOGISTICS I, LLC, a Delaware 

limited liability company	 	SKECHERS USA, INC., a Delaware
corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Iddo Benzeevi 
	 	By
	 	/s/
David Weinberg 

	 	 
	 

	 	Iddo Benzeevi, President and
	 	Its	 	COO 	 	 
	 

	 	Chief Executive Officer 	 	 	 	 

	 	 
	 

	 		 	 	 	 	 	 

5

 

EXHIBIT “A”

(REVISED)

SITE PLAN

 

 

EXHIBIT “B”

SPECIFICATIONS

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