Second Lease Amendment Agreement between ASB Wallkill, LLC and The RAL Supply Group, Inc. for 24 Dunning Road, Middletown, NY

Summary

This agreement is a second amendment to the original lease between ASB Wallkill, LLC (landlord) and The RAL Supply Group, Inc. (tenant) for premises at 24 Dunning Road, Middletown, NY. It adds two billboards to the lease, sets a fixed annual rent of $12,000 for them (subject to annual CPI adjustments), extends the lease term for ten years starting May 1, 2008, and provides an option for a five-year renewal. All other terms of the original lease remain unchanged. The agreement is governed by New York law.

EX-10.07 8 ex10_07.txt EXHIBIT 10.07 Exhibit 10.07 Middletown July 6, 2007 David Berman ASB Wallkill, LLC c/o Decorative Product Source, Inc. 1 Coates Drive, Suite 5 Goshen, NY 10924 Subject: Second Lease Amendment Agreement Premises: MIDDLETOWN, New York, 24 Dunning Road (Approximately 38,000 square feet as described in Schedule A of the May 1, 1998 Lease Agreement plus the office suite described in the November 2003 Amendment Letter) Lease History: a. November 2003 Amendment Letter (the "Amendment Letter") b. Assumption (and Modification) of Lease dated September 30, 2003 (the "Assumption of Lease Agreement") c. Lease dated May 1, 1998 (the "Lease Agreement") Dear Mr. Berman: With regards to the above Lease Agreement and amendments and/or modifications thereto, by and between ASB Wallkill, LLC ("Landlord") and The RAL Supply Group, Inc. ("Tenant"), Tenant hereby agrees to amend the terms of the subject Lease Agreement and amendments and/or modifications thereto as follows: 1. As of July 1, 2007, Schedule A of the Lease Agreement and amendments and/or modifications thereto is hereby modified and amended to include two billboards in the Town of Wallkill, Orange County, New York with a Fixed Minimum Annual Rent to be $12,000 per year ($1,000 per month) which on July 1, 2008 and each year thereafter shall be adjusted for CPI Index increases as described in Schedule B of the Lease Agreement and amendments and/or modifications thereto, except that the Base Month for calculation of this increase shall be May 2007. 2. The Term of the Lease Agreement and amendments and/or modifications thereto shall be and is hereby extended for a term of ten (10) years commencing May 1, 2008 and ending April 30, 2018. 3. The Renewal Terms as described in paragraph 1.3 of the Lease Agreement and amendments and/or modifications thereto shall be and are hereby modified to provide an option to extend the Term of the Lease for one (1) period of five (5) years with the same terms and conditions as described in the Lease Agreement and amendments and/or modifications thereto. Said renewal, if exercised as described within the terms of the Lease Agreement and amendments and/or modifications thereto, as amended, shall extend the Lease Agreement and amendments and/or modifications thereto from May 1, 2018 to April 30, 2023. 4. The validity of the Lease Agreement and amendments and/or modifications thereto shall be governed by the laws of the State of New York. All other terms and conditions of the aforementioned Lease Agreement and amendments and/or modifications thereto shall remain in full force and effect. If this agrees with your understanding, kindly sign below. Sincerely, Agreed and Accepted: The RAL Supply Group, Inc. f/k/a RAL ASB Wallkill, LLC Purchasing Corp. By: /s/ William Pagano By: /s/ David Berman -------------------------------- --------------------------------- William Pagano, Executive VP David Berman, Managing Member (President)