Lease Agreement between Signature Eyewear and Roxbury Property Management for 498 N. Oak Street, Inglewood

Summary

This agreement is between Signature Eyewear (tenant) and Roxbury Property Management (landlord) for leasing approximately 64,000 square feet at 498 N. Oak Street, Inglewood, CA. The lease term is 25 months starting June 1, 2005, with specified monthly rent and an option to extend for two more years at a higher rate. The landlord will make certain property improvements, and the tenant is responsible for routine HVAC maintenance and partial costs of major repairs. The agreement also addresses security deposits and payment terms.

EX-10.6 3 exh10-6_13237.txt LEASE AGREEMENT EXHIBIT 10.6 ------------ January 21, 2005 Mr. Michael Prince President and CEO SIGNATURE EYEWEAR 498 N. Oak Street Inglewood, CA 90302 Mr. Lucas G. Staubitz, SIOR Principal THE KLABIN COMPANY 6601 Center Drive West, #300 Los Angeles, CA 90045 RE: 498 N. OAK STREET, INGLEWOOD - SIGNATURE EYEWEAR Dear Michael and Luke: We discussed with Ray Renta Signature's latest Proposal to Lease 498 N. Oak Street. The ownership is prepared to enter into a new two (2) year lease under the following terms and conditions. 1. PREMISES: Approximately 64,000 square feet consisting of the original approximate 44,000 square foot premises and the adjacent 20,000 square feet of expansion premises. 100-car parking. (AGREED.) 2. TERM: Twenty-five (25) months commencing June 1, 2005 and ending June 30, 2007. (AGREED.) 3. RENT: (AGREED.) Months ------ June 1, 2005 to June 20, 2005: 2/3 N/C June 21, 2005 to June 20, 2006: 12 $46,400 June 21, 2006 to June 20, 2007 12 $48,000 June 21, 2007 to June 30, 2007: 1/3 $16,000 --- 25 Lessee shall pay taxes, insurance and common area maintenance for the entire period, including June 1- June 20, 2005. 4. RENT PAYMENT: Rent shall be due on the 21st of each month. RENT SHALL BE LATE AT 5:00 PM ON THE 24TH OF EACH MONTH AND WILL BE SUBJECT TO A LATE FEE THEREAFTER PER THE TERMS OF THE LEASE. Any rent received before the 21st of any month will be held uncashed until the 21st to encourage timely rent payment. 5. OPTION TO One (1), two (2) year Option to Extend the Lease upon 180 EXTEND: days prior written notice. (AGREED.) 6. OPTION RATE: Rent shall increase to $51,200 per month ($.80 per square foot, net) for the two (2) year Option Period, if exercised. (AGREED.) 7. SECURITY The Lessor currently has a Security Deposit of $76,000. DEPOSIT: Signature Eyewear is holding Diagnostic Product's Security Deposit of $18,000. Concurrent with the execution of a new lease, Lessor shall transfer $18,000 of Signature's $76,000, thereby reducing Signature's deposit to $58,000, and Lessor shall become responsible for the return of Diagnostic Product's Security Deposit when appropriate. 8. LESSOR'S Lessor shall, at Lessor's sole cost and expense, complete IMPROVEMENTS: the following promptly after the execution of the new lease: (AGREED.) A. Replace all carpets in the original approximate 13,500 square feet of office area. B. Clean the carpets where they are stained in the offices added by Lessee. C. Paint all of the offices in the original approximate 13,500 square feet of office area. D. Replace all of the stained or damaged ceiling tiles in the entire office area (original offices and new offices). E. Repair all current roof leaks. F. Clean all skylights and wash all windows. 9. HVAC Lessee shall immediately put into place an HVAC service contract for the HVAC units with Mann Air OR OTHER MUTUALLY AGREEABLE SERVICE PROVIDER. Lessee shall continue to be responsible for routine repair of the HVAC units. In the event a compressor or major component of an HVAC unit fails requiring, i) replacement of the unit or, ii) the repair of the unit exceeds 50% of the cost to replace that unit, Lessor shall pay for said replacement or repair and Lessee shall reimburse Lessor for 50% of the cost of replacement or repair. LESSOR REQUIRES THAT THE SERVICE CONTRACT WITH MANN AIR BE REVIEWED AND APPROVED BY LESSOR. LESSOR SHALL OBTAIN ADDITIONAL BIDS. (AGREED.) 10. EXPIRATION: This Proposal shall expire January 26, 2005 at 5:00 PM. Landlord will prepare Lease for review by Friday, January 28, 2005. Thank you for your consideration of this Proposal and we look forward to your favorable response. Sincerely, THE KLABIN COMPANY /s/ F. Ronald Rader - ------------------------- F. Ronald Rader, SIOR Executive Vice President FRR:aw ACKNOWLEDGED AND AGREED: LESSEE: SIGNATURE EYEWEAR By: /s/ Michael Prince January 26, 2005 ---------------------------------------- Michael Prince, Chief Executive Officer LESSOR: ROXBURY PROPERTY MANAGEMENT By: /s/ Raymond Renta January 22, 2005 ---------------------------------------- Raymond Renta, Manager