This LEASE AGREEMENT (this “ Lease ”), dated September 13, 2007 for reference purposes only, is made by and between William H. Channell, Jr. and Carolyn Channell (collectively, “ Lessor ”), on the one hand, and Channell Commercial Corporation, a Delaware corporation (“ Lessee ”), on the other hand.
WHEREAS, Lessor and Lessee wish to enter into a lease for the Premises (as hereinafter defined), on the terms and subject to the conditions set forth herein;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Premises. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, during the term and for the rent amount provided herein, and on the other terms and subject to the other conditions set forth herein, that certain real property situated in the County of Riverside, State of California more particularly described on Exhibit A hereto (the “ Premises ”).
2. Term. The term of this Lease shall commence on September 13, 2007 (the “ Commencement Date ”) and shall end on December 31, 2015 (the “ Original Term ”), unless sooner terminated pursuant to the terms hereof.
2.1 Options to Extend . Lessor hereby grants to Lessee two (2) consecutive five-year options to extend the Original Term from January 1, 2016 through December 31, 2020 (the “ First Extension Period ”), and from January 1, 2021 through December 31, 2025 (the “ Second Extension Period ”, and together with the First Extension Period, the “ Extension Periods ”), each such option to be exercised by Lessee, in its sole and absolute discretion, and (i) with respect to the option for the First Extension Period, to be exercised not later than ninety (90) days prior to the expiration of the Original Term and (ii) with respect to the option for the Second Extension Period, to be exercised not later than ninety (90) days prior to the expiration of the First Extension Period. The terms and conditions of this Lease during the Original Term, including, without limitation, the rental amounts payable hereunder, shall apply to the Extension Periods.
2.2 Option to Terminate . If Lessee has not commenced construction of a work