EXHIBIT 10.04
PIONEER REALTY HOLDINGS, LLC
00 XXXXXX XXXXXX
XXXXXXXXX, XXX XXXXXX 00000-0000
February 21, 2007
Xxxxxxx Xxxxxx, President
The RAL Supply Group, Inc.
00 Xxxxxxx Xxxx
Xxxxxxxxxx, XX 00000
Re: Modification of Lease (the "Third
Modification of Lease Agreement")
Pioneer Realty Holdings, LLC as Landlord,
with RAL Purchasing Corp., as Assignee of
RAL Supply Group, Inc., f/k/a RAL
Purchasing Corp., as Tenant
Premises located at 0000 Xxxxx 0, Xxxx xx
Xxxxxxxx, Xxxxxxxx Xxxxxx, XX (the "Fishkill
Store")
Lease dated September 1, 1998 (the "Lease
Agreement")
Modification of Lease dated September 30,
2003 (the "First Modification of Lease
Agreement")
Modification of Lease dated April 12, 2005
(the "Second Modification of Lease
Agreement")
Dear Xx. Xxxxxx:
With regard to the above Lease, it is understood that the Lease Agreement as
amended by the First Modification of Lease Agreement and Second Modification of
Lease Agreement (as so amended, the "Lease") is hereby further modified and
amended as of the Effective Date as defined below.
1. Paragraph 1.1 is hereby amended to read as follows:
"1.1 Leases Premises
----------------
Landlord hereby leases to Tenant the premises more
particularly described in Schedule A, attached hereto and
made part hereof, consisting of approximately 25,947 square
feet, hereinafter sometimes called "Leased Premises."
2. Paragraph 1.2 is hereby amended to read as follows:
"1.2 Initial Term of Lease and Effective Date
----------------------------------------
a. The "Initial Term" of this Lease for the Leased
Premises shall be for a period commencing on the
Effective Date, and terminating on March 31, 2017.
b. The term "Effective Date" means the date of issuance of
a certificate of occupancy for the Leased Premises (as
defined below) by the Town of Fishkill for the purpose
of distribution of heating, ventilating and air
conditioning ("HVAC") and plumbing equipment, parts and
accessories."
3. Paragraph 1.5 is hereby amended to read as follows:
"1.5 Covenant to Pay Rent
--------------------
Tenant shall pay to Landlord the Annual Fixed Rental as
set form on Schedule B, annexed hereto, in equal monthly
installments, in advance, without setoff or defense, on the
first day of each and every calendar month, beginning upon
the "Effective Date" as defined herein, until the expiration
of the term of this Lease and any Renewal Term."
4. Schedule B, paragraph 1.1, is hereby amended to read as follows:
"1.1 The "Annual Fixed Rent" for the Leased Premises during
the initial term shall be the sum of $245,844 per year,
payable $20,487 per month in advance on the first day of
each month."
5. Schedule B, paragraph 1.3, is hereby amended to substitute "May
2006" in place of "May 1998" as the "Base Month," and to substitutes
May 2007 for May 1999 in such paragraph.
6. Schedule B, paragraph 1.4, is hereby amended to read as follows:
"1.4 The Annual Fixed Rent for the second year of the Initial
Term shall be $245,844 per year, increased by the percentage
of the Index of the Comparison Month (May 2007) over the
Base Month (May 2006), except that in no event shall the
increase be less than a two (2%) percent increase over the
previous year or more than an eight (8%) percent increase
over the previous year."
7. The examples in Schedule B are hereby modified in accordance with
the amendment effectuated by the foregoing Sections.
All other terms and conditions of the Lease shall remain in full force and
effect.
If this agrees with your understanding, kindly sign below.
Sincerely, Agreed and Accepted:
Pioneer Realty Holdings, LLC The RAL Supply Group, Inc. f/k/a RAL
Purchasing Corp.
By: /s/ Xxxxxxx Xxxxxx By: /s/ Xxxxxxx Xxxxxx
------------------------------ ------------------------------
Xxxxxxx Xxxxxx, Member Xxxxxxx Xxxxxx, President
Accepted and Approved:
Colonial Commercial Corp.
By: /s/ Xxxxxxx Xxxxx
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Xxxxxxx Xxxxx, CFO
