Document:

Exhibit 10.16

 

REAL PROPERTY LEASE

 

PARTIES:

 

LEE JOINT VENTURE, a joint venture of Robert
B. Lee, Ronald E. Lee, and Terry N. Lee (“Lessor”). NATIONAL R.V. HOLDINGS, INC.,
a Delaware corporation (“Tenant”).

 

AGREEMENTS:

 

1.                         PREMISES.
  Lessor hereby leases to Tenant the real
property referred to as Country Coach Building # 14 and the improvements
thereon (“Leased Premises”).

 

2.                         TERM.   This lease shall run for a period commencing
on October 1, 1999, and terminating at 12:00 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 Three Thousand
Four Hundred Ninety Four Dollars ($3,494.00) 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 October of each year beginning with 2000, 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
$3,494.00.

 

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.

 

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

 

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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 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 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 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

 

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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 dear 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 without 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 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

 

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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 this lease exceeds 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 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

 

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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 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

 

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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 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 expenses.

 

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 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.

 

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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.

 

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,

 

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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
for any delay occasioned by the appraisal process.

 

26.                   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 of 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.

 

27.                   WAIVER OF SUBROGATION
RIGHTS.   Each of the parties hereto hereby

 

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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.

 

28.                   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 (100%)
per month more than the rent due prior to such termination, payable as provided
in this lease.

 

29.                   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:

 

PO Box 400

Junction City, OR 97448

 

Ronald E. Lee

94862 Link Ridge Drive

Junction City, OR 97448

 

TENANT:

 

National R. V. Holdings, Inc.

3411 North Perris Boulevard

Perris, CA 92571

 

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.

 

30.                   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.

 

31.                   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.

 

32.                   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.

 

33.                   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.

 

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34.                   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 2nd day of November, 1999.

  	
   

  
	
   

  	
  LEE JOINT
  VENTURE

  
	
   

  	
  By:

  	
  /s/ Robert B. Lee

  	
   

  
	
   

  	
   

  	
  Robert B. Lee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald E. Lee

  	
   

  
	
   

  	
   

  	
  Ronald E. Lee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry N. Lee

  	
   

  
	
   

  	
   

  	
  Terry N. Lee

  
	
   

  	
   

  
	
   

  	
  NATIONAL R.V. HOLDINGS, INC.

  
	
   

  	
  By:

  	
  /s/ Wayne Mertes

  	
   

  
	
   

  	
   

  	
  Wayne Mertes

  
					

 

10Exhibit 10.17

 

LEASE RENEWAL AGREEMENT

 

PARTIES:

 

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

 

and

 

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

 

RECITALS:

 

A.                                   Lessor
and Tenant are parties to that certain real property lease dated October 12,
1995, a copy of which is attached hereto (“Lease”).

 

B.                                     The
Lease provides in paragraph 21 for Tenant to have two options to renew the Lease,
each for an additional period of five years, by giving written notice to Lessor
not less than 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.

 

C.                                     By
letter dated October 26, 2000, Tenant gave notice of its desire to exercise
the option to renew said Lease for one additional period of five years commencing
on November 1, 2000, and ending on October 31, 2005 (the “Renewal Term”).
Despite the fact that the notice of the option to renew was not timely given, the
parties wish to renew the Lease as though notice of the option to renew had
been timely given.

 

AGREEMENTS:

 

1.                                       Recitals.
The above recitals are deemed true and are incorporated herein.

 

2.                                       Renewal
Period. For valuable consideration, receipt of which is hereby acknowledged, the
parties hereby agree that the Lease be deemed renewed for the Renewal Term on
the terms and conditions provided for in the Lease as though the Tenant had
given timely written notice thereof to Lessor pursuant to Paragraph 21 of the
Lease.

 

	
  DATED this 2nd day of January 2001.

  	
   

  
	
   

  	
   

  
	
   

  	
  LEE JOINT VENTURE

  
	
   

  	
   

  
	
   

  	
  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 L. Courtemanche

  	
   

  
	
   

  	
   

  	
  JACK L. COURTEMANCHE

  
	
   

  	
   

  	
  Chairman, CEO

  
						

 

1

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