Exhibit 10(u)
COMMERCIAL LEASE
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THIS AGREEMENT, made and entered into this First day of September
2003,
between MERVIN D. LUNG BUILDING COMPANY,
INC., an Indiana Corporation, of
St. Joseph County, State of Indiana,
hereafter known as "LESSOR", and PATRICK
INDUSTRIES, INC., an Indiana corporation
with principal offices in Elkhart
County, Indiana, hereinafter referred to as
"LESSEE", for and in consideration
of the covenants and agreements hereinafter
mentioned, that real estate located
in Elkhart County, State of Indiana, and
more particularly described in ITEM 1.
LEASED PREMISES.
WHEREAS, LESSOR is owner of certain property situated in
Elkhart,
Indiana; and
WHEREAS. LESSEE is desirous of leasing said property.
NOW, THEREFORE, in consideration of the mutual promises
hereinafter
contained with applicable ordinances, laws
and regulations, the parties agree as
follows:
1. LEASED PREMISES: the LESSOR hereby leases to LESSEE those
premises
bearing the street address of 3905
Lexington Park Drive, Elkhart, Indiana,
46514, more particularly described as
follows:
Part of the Northeast Fractional Quarter of Section Two (2),
Township Thirty-seven (37) North, Range Four (4) East,
Cleveland Township, Elkhart County, Indiana, and more
particularly described as follows:
Commencing at the Southeast corner of said quarter section;
thence due North along the east line of said quarter section
one thousand two hundred ninety-three and forty-five
hundredths (1293.45) feet to the south right-of-way of the
Penn Central Railroad; thence south eighty-nine (89) degrees
fifty-nine (59) minutes west along the south right-of-way line
of said railroad three hundred sixty-five (365) feet to the
point of beginning of this description; thence continuing
south, eighty-nine (89) degrees forty-nine minutes along the
south line of said railroad three hundred twenty-five (325)
feet; thence due south four hundred thirty-eight (438) feet to
the north right-of-way line of a 60-foot road; thence north
eighty-nine (89) degrees fifty-nine (59) minutes east along
the north line of said road three hundred twenty-five (325)
<PAGE>
feet; thence due north four hundred thirty-eight (438) feet to
the point of beginning.
2. TERM: The term of this Lease shall be for two years, from the
1st of
September 2003, through the 31st day of
August, 2005.
3. RENTAL: Lessee agrees to pay to Lessor in advance of the first
day
of each month throughout the term of this
lease, a rental of Nine Thousand One
Hundred Forty Six Dollars and Forty Gents
($9,146.40) Dollars per month (40,381
sq ft including 1,056 sq ft of office).
Lessee further agrees to pay all
insurance premiums for fire, extended
coverage and hazard insurance on the
leased premises in amounts provided for in
this agreement. Lessee additionally,
agrees to pay, Real Estate Taxes assessed
after the 2002 tax year, payable in
2003, as provided in this Agreement.
4. CONDITION. USE AND CARE OF LEASED PREMISES: Lessee hereby
accepts the leased premises in its present
condition. Lessee agrees to use said
premises for its warehousing and display,
sales, repair and modification of its
products, and for all additional uses and
purposes as may be customarily
incidental to the operation of Lessee's
business.
Lessee agrees that in no event shall it conduct any business on
said
premises which would be in violation of any
local, state or federal rules,
regulations, ordinances, or statutes.
Lessee agrees that it shall place no sign upon leased premises
until
Lessor shall first have approved, in
writing, the size and location of said
sign.
Lessee agrees to maintain the leased premises in good condition at
all
times, subject only to reasonable
wear and tear of the
kind normally accounted
for by depreciation; and Lessee agrees to
maintain the leased premises in a neat
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and presentable condition at all times and
not to permit accumulations of any
unsightly deposits of rubbish or other
matter.
Lessor reserves the right to make an inspection of the leased
premises
at reasonable times during business hours
no oftener than once every three (3)
months; provided, however, that said
inspection shall not in any way interrupt
Lessee's normal business operations.
Lessee shall have the right to make such interior changes,
improvements, and alterations to the leased
premises, at its own cost and
expense, as may be desired or necessary to
adapt the leased premises to the
business to be carried out by the Lessee;
provided, however, that no structural
change shall be made in such leased
premises without prior written consent of
the Lessor, and Lessee will not allow any
liens or encumbrances to attach to the
premises for any such changes,
improvements, and/or alterations, and will hold
the Lessor harmless for any such liens and
encumbrances that may arise
therefrom. Any changes, alterations, and/or
additions made by the Lessee in the
leased premises shall be and become a part
of such premises and remain thereon
or the property of the Lessor; but if such
alterations, changes or additions, or
any of them, are removable without injury
to the premises, then the same may be
removed at the option of the Lessee.
5. EFFECT
OF DESTRUCTION OF THE LEASED
PREMISES: If the leased premises
should be wholly or substantially destroyed
without any fault on the part of the
Lessee, then an equitable adjustment of the
rental due hereunder shall he made with
respect to the length of time between
the date of the destruction and the date
when the premises are restored, said
adjustment to be made upon
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a prorata basis. If Lessor elects not to
restore the destroyed premises or if
such restoration is not completed within
four (4) months from the date of such
destruction, then this lease shall
terminate as of said date of destruction.
6. TAXES AND UTILITIES: Lessor agrees to pay all real estate
taxes
levied with respect to the leased premises
at the rate of taxes assessed for the
2002 taxes payable in 2003, subject to
other paragraphs of this agreement.
Lessee agrees to pay, installments, any increase in real estate
taxes
le
