Exhibit 10.4
THIRD AMENDMENT OF
LEASE
THIS THIRD AMENDMENT OF
LEASE (hereinafter called
“Amendment”) is made and entered into November 30,
2006, by and between Watsonville Freeholders , a California
limited partnership (hereinafter called “Landlord”) and
West Marine Products, Inc. , a California corporation
(hereinafter called “Tenant”).
RECITALS
A. By lease agreement dated
June 26, 1997, as amended by (a) Landlord Subordination
dated February 6, 2003, (b) First Amendment of Lease
dated July 27, 2005, and (c) Second Amendment of Lease
dated December 21, 2005 (hereinafter collectively
“Lease”), Landlord leased to Tenant an approximately
eighty-nine thousand, two hundred eleven (89,211) square-foot
premises located at 500 Westridge Drive, Watsonville, CA 95076 (the
“Demised Premises”). The Demised Premises is more
particularly described in the Lease.
B. Landlord and Tenant now desire to
further amend the Lease in certain respects.
AGREEMENT
For and in consideration of the
recitals above made and the promises and agreements that follow,
and other good and valuable consideration, the parties agree as
follows:
1. Expansion . The Demised
Premises shall be increased by the adjacent space (the
“Additional Premises”), shown on Exhibit A attached
hereto, consisting of approximately eleven thousand, six hundred
(11,600) square feet, including access to one exterior door
and the ramp to the rollup door as shown on Exhibit A-1 hereto. The
resultant premises, consisting of the Demises and the Additional
Premises, being all the premises shown on the attached Exhibit A-1
hereto (the “New Premises”), will be a total of
approximately one-hundred eight thousand and eleven
(100,811) square feet. The Additional Premises may be used by
Tenant only for storage space of Tenant’s personal property
and may not be used for office or other purposes than storage. The
Additional Premises does not include the mezzanine about the
Additional Premises.
2. Term for the Additional
Premises . The term for the Additional Premises shall begin on
the later of the date Landlord delivers to Tenant the Additional
Premises in the condition required by Paragraph 5, below
(“Landlord’s Work”) and December 1, 2006
(the “Additional Premises Commencement Date”). Upon the
Additional Premises Commencement Date, the Demised Premises and the
Additional Premises shall form the New Premises, and thereafter all
references in the Lease and herein to the “Demised
Premises” shall be the same as the New Premises.
3. Rent for the Additional
Premises . The Additional Premises are leased on a gross basis,
and the rental rate set forth in this paragraph is inclusive of
common area maintenance, insurance and real estate tax expenses.
Commencing on the Delivery Date, Tenant shall pay Fixed Rent for
the Additional Premises in the monthly amount of seven thousand,
eight hundred eighty-eight and no/100 Dollars ($7,888.00)
($94,656.00 annually).
4. Alterations to the Additional
Premises . (A) Upon the full execution of this Amendment,
Landlord shall proceed with diligence, at Landlord’s sole
cost and expense, in making the to the Additional Premises ready to
enable Landlord to deliver the Additional Premises to Tenant, free
of Hazardous Materials (as defined in the Lease), in broom clean
condition, free of all personal property and other tenants or
occupants, with demising wall in place as described below in this
Section (all of which shall be collectively referred to as the
“Landlord’s Work”).
(B) Landlord shall, at
Landlord’s sole cost and expense, prior to the Delivery Date,
install a chain-link fence to demise the Additional Premises from
the remainder of Landlord’s space adjacent to the Additional
Premises, a minimum of twelve (12) feet high, containing at
the top of such fence a bifurcated three (3)-strand barbwire cap,
for security purpose of Tenant’s property to be stored in the
Additional Premises. Any other improvements and fixturization
desired by Tenant shall be installed by Tenant at Tenant’s
sole cost and expense.
(C) If the Additional Premises shall
not be delivered to Tenant in accordance with this Section entitled
“Alterations to the Additional Premises” by
December 1, 2006 (the “Delivery Date”) and all
other provisions of this Amendment for any reason whatsoever on the
Delivery Date, Tenant may, at Tenant’s option, terminate this
Amendment by written notice to Landlord; whereupon this Amendment
shall thencef
