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HomeMy WebLinkAboutReso 52-07 Berkeley Land Purch and Sale Agmt (2) RESOLUTION NO. 52 - 07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* APPROVING A PURCHASE AND SALE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES AGREEMENT WITH BERKELEY LAND cO. FOR A PROPERTY LOCATED AT 11759 DUBLIN BOULEVARD WHEREAS, in August 2006, the City Council adopted Resolution 149-06 approving General Plan Amendment, the Parks and Recreation Master Plan May 2006 Update (Resolution 150-06) and the Dublin Historic Park Master Plan (Resolution 151-06); and approval of the Dublin Village Historic Area Specific Plan; and WHEREAS, the General Plan Amendment and the Specific Plan change the land use designation of the Dublin Square Shopping Center from Retail/Office to Parks/Public Recreation and include the property within the proposed expanded Historic Park; and WHEREAS, the Dublin Village Historic Area Specific Plan's goal is to protect the historic resources in the area; guide design of new development; and enhance the area's image as a historic district; and WHEREAS, the City of Dublin proposes to add additional park lands and expand the Dublin Historic Park; and WHEREAS; in order to accomplish this goal, it is necessary for the City to acquire the property in fee located at 11759 Dublin Boulevard. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin approves the Purchase and Sale Agreement and the Assignment and Assumption of Leases Agreement with Berkeley Land Co., attached hereto. BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute the agreements. PASSED, APPROVED AND ADOPTED this 1 st day of May, 2007, by the following vote: AYES: Councilmembers Hildenbrand, Oravetz, Sbranti and Scholz, and Mayor Lockhart NOES: None ABSENT: None ABSTAIN: None ATTEST: auf ~~ ~\J+::J City Clerk Reso No. 52-07, Adopted 5/1/07, Item 4.9 Page 1 of 1 PURCHASE AND SALE AGREEMENT BETWEEN BERKELEY LAND CO., INC. AND THE CITY OF DUBLIN THIS PURCHASE AND SALE AGREEMENT (hereinafter "Agreement), dated May 2,2007, (the "Effective Date") is by and among the City of Dublin, a municipal corporation ("Buyer") and Berkeley Land Co., Inc., a California Corporation ("Seller"). RECITALS A. WHEREAS, SeHer is the owner of a parcel of real property fronting Dublin Boulevard in the City of Dublin, County of Alameda, State of California, commonly referred to as 11759 Dublin Boulevard, Dublin Square Shopping Center, together with any right, title and interest of Seller in and to all easements and rights-of- way in, on, across, in front of, abutting or adjoining said real property (APN: 941-1560- 007 -01) (the "Property"), more particularly described in Exhibit "A" and depicted in Exhibit "B" attached hereto; B. WHEREAS, Buyer has approved plans for a proposed project for the expansion of the existing Historic Park and adopted a master plan for the Dublin Historic Park Project (the "Project") and a portion of the Project falls within the Property; C. WHEREAS, Buyer desires to acquire the Property in fee, for use in connection with the development of the Project; D. vVHEREAS, Buyer and Sener have agreed to enter into this Agreement in lieu of condemnation, and this purchase and sale is directly and expressly under threat of eminent domain. TERMS OF AGREEMENT In consideration of the mutual covenants and conditions contained herein, the parties hereto agree as follows: 1. PURCHASE. Seller shall sell to Buyer and Buyer shall purchase from Seller, the Property on all of the terms and conditions set forth in this Agreement. 2. PURCHASE PRICE. The purchase price (hereinafter "Purchase Price") for the Property is SEVEN MILLION, EIGHT HUNDRED SIXTY-FIVE THOUSAND DOLL/-\RS AND NO ,Ef\lTS ($7,865,000). 3. PAYMENT OF PURCHl.\SE PRiCE. The Purchase Price shall be payable all in cash upon the close of escrow. 4. Buyer shall cause this Agreement to be placed onto the City of Dublin City Council meeting agenda for May 1, 2007. The Buyer's obligation to purchase the Property from Seller shall be contingent upon the approval of this Agreement by the City -1- . . A .t: A tt ",lh, \ J."....'- ., E:xJublt (h A~ 3.udllJt;t" .. C:',[JocumellLS and Sctungs.\PD\1\Loc3.j S,:tti11gs\Tcmporary lnternel Files\,StLK I F6\960463_1.DOC of Dublin City Council on May 1, 2007. If such City Council for the City of Dublin does not approve of this Agreement on May 1, 2007, this Agreement shall automatically terminate and thereafter be of no force or effect whatsoever. 5. Prior to the Close of Escrow the title company shall be prepared to provide a CL T A standard owner's policy of title insurance in favor of Buyer free and clear of all exceptions to title other than the Approved Exceptions and the Leases, attached to the "Assignment and Assumption of Leases" attached hereto, referred to below. 6. On the Effective Date Buyer and Seller shall cause the opening of escrow (the "Escrow") by delivering a fully-executed copy of this Agreement to North American Title Company, 4255, Hopyard Road, Suite 1, Pleasanton, California, 94588, Attn: Pam Thompson, Title Officer ("Escrow Holder" or "Title Company"). 7. Escrow is to close on or before May 9,2007. In the event escrow fails to close on or before May 9, 2007, Seller's obligation to sell the Property to Buyer and Buyer's obligation to purchase the Property from Seller under the terms of this Agreement shall terminate. 8. By the end of business May 4, 2007, Seller shall deposit into Escrow C? Grant Deed to the Property as provided herein and attached hereto as Exhibit "e," in favor of Buyer. The term "Close of Escrow" or "Closing" as used herein shall mean the date necessary instruments of conveyance for the sale of the Property to Buyer are recorded in the office of the County Recorder for the County of Alameda and the date the Purchase Price is paid to Seller. 9. Concurrent with the Close of Escrow, Buyer and Seller shall each execute the ")\ssignment and Assumption of Leases" attached hereto as Exhibit"D" whereby the Seller assigns to the Buyer all of Seller's right, title, and interest in and to the Leases attached thereto and whereby Buyer agrees to assume each and every obligation of Seller in connection with the Leases which occurs on or after the Close of Escrow. 10. By the end of business May 4,2007, Buyer shall deposit cash or immediately available funds (wire transfer, cashier's check) in the amount of the Purchase Price into Escrow. 11. ESCROW INSTRUCTIONS. This Agreement shall be construed as Escrow Instructions to the Title Company and the parties agree to execute any other additional or supplemental Escrow Instructions reasonably requested by the Title Company provided, however, in no event shali any such supplemental instructions supercede or contradict the provisions of this Agreement and in the event of any inconsistency between the terms of this J\greement, on the one hand, and the terms of any such supplemental Escrow Instructions, on the other hand, the terms of this I-\greement shall supercede and be contiOlling. -2- C:\Documcms and Settings\PDM\Local Settings\Temporary intemet Files\OLK I F6\960463_1.DOC d"'> ..:: .....""""'., 12. All of the Title Company's escrow fees and costs and all deed taxes, recording fees and premiums for any title insurance policy, all documentary transfer taxes, and all personal property taxes and sales taxes owed by the Seller, if any, incurred in connection with the sale of the Property to Buyer as contemplated by this Agreement shall be paid solely by Buyer Any other Closing costs not specifically referred to above shall be borne solely by Buyer. 13. Seller's current property taxes, if unpaid, shaH be prorated to date of Close of Escrow on the basis of a 365 day year in accordance with Tax Collector's proration requirements, together with penalties and interest, if said current taxes are unpaid after April 1 Oth. At Close of Escrow, a check payable to the County Tax Collector for Seller's prorated portion of taxes shall be forwarded to Buyer with closing statement. 14. Any property taxes which have been paid by Seller, prior to opening of this Escrow, shall not be prorated between Buyer and Seller, but Seller shall have the sole right, after Close of Escrow, to apply to the County Tax Collector of said county for refund. This refund would apply to the period after Buyer's acquisition, pursuant to Revenue and Taxation Code Section 5096.7. 15. All items of income or expense from the operation of the Property including rent in connection with the Leases shall be prorated by the parties as of the Closing Date. Any income or expense which cannot be ascertained with certainty as of the Closing Date shall be prorated on the basis of the parties' reasonable estimates of such amounts and shall be the subject of a final proration as soon thereafter as the precise amounts can be ascertained but in no event later than three (3) months after the Closing. A statement with the agreed prorations shall be delivered to the Escrow Company. SeHer and Buyer shall each cooperate with the other diligently and promptly to correct any errors in computations or estimates under this Section provided Seiler or Buyer delivers written notice to the other party of such error within the 3-month period. Seller and Buyer shall promptly pay to the party entitled thereto any refund, credit or other payment. This Section shall survive the Closing. 16. CLOSING. When the Title Company has received all documents and funds identified in Sections 2 and 8, and has received written notification from Buyer and Seller that all conditions to Closing have been satisfied or waived, and the Title Company is irrevocably committed to issue the Title Policy, then, and only then, the Title Company shall: (A) Record the Grant Deed in the Official Records of Alameda County; (B\ , J Issue the Title Policy to Buyer; (C) Deliver to Buyer: (i) conformed copies (showing all recording information thereon) of the Grant Deed (ii) counterpart originals of th':3 Lease Assignment Agreement, and (iii) the Nonforeign Certificates. .., --)- C:',Documents and Settings\PDivl\Local SettingsiTemporary Intemet Files\OLK 1 F6\960463 _l.DOC ,o~ "'": ;t-::;;;" ~ (D) Deliver to Seller: (i) conformed copies (showing all recording infprmation thereon) of the Grant Deed, (ii) the Purchase Price (as adjusted pursuant to the provisions of this Agreement) and (iii) a counterpart original of the Lease Assignment Agreement. The Title Company shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal Revenue Service (with copies to Buyer and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code. 17. In the event Seller is obligated to return any security deposits to any of the tenants in connection with any of the Leases, Buyer shall receive a credit in Escrow in the amount of any such security deposits which are payable to any such tenants. 18. in addition to the Purchase Price, Buyer shall pay to Seller at Closing an amount of Five Thousand Dollars ($5,000.00) in connection with appraisal services conducted pursuant to California Code of Civil Procedure section 1263.025. 19. Buyer and Seller each shall pay their own attorneys' fees in connection with negotiation this Agreement and the conveyance of the Subject Property. 20. All funds received in this Escrow shall be deposited with other Escrow funds in a general Escrow account(s) and may be transferred to any other such Escrow trust account in any state or national bank doing business in the State of California. 21. Buyer and Seller agree to execute and deliver to Escrow Holder any additional or supplementary instructions as may be necessary or convenient to complete this transaction. 22. INSPECTION OF PROPERTY. (A) Buyer acknowledges that previously Seller has made available to Buyer and Buyer's consultants, agents and employees (collectively, "Buyer's Representatives"), reasonable access to the Property for such inspections, examinafions, tests, or any other investigations of the Property ("Inspections") as Buyer deemed appropriate for the purposes of conducting an appraisal and Phase I. (B) Buyer shall indemnify, defend and hold Seller and Seller's agents and employees harmless from and against any Claims arising out of Buyer's inspection of the Property or the Property Files, except to the extent (i) the Claims arise from the acts or omissions of Seller, its agents or employees, or (ii) the Claims arise from matters discovered by Buyer during its investigations and which Buyer did not cause, exacerbate or otherwise contribute to. This indemnity shall survive the Closing or termination of this Agreement. -4- C.\DOClllllents and Settings\PDM\Locl1l Settings\Temporary lntemet Filcs\OLJ( I F6\960463_J .DOC .- l it' '2 g 'u 23. BUYER'S DUTY TO INVESTIGATE. Buyer represents, warrants and covenants that: (A) Buyer has conducted, to the extent Buyer deems appropriate, an investigation of the financial, legal, title; physical and environmental condition of the Property, (collectively, "Condition of the Property"), including without limitation: (i) the design and current physical condition of the Property, (ii) the boundaries and area of the Property and the state of title to the Property, (iii) any settlement or subsidence of any fill or filled ground on the Property or settlement or subsidence of construction thereon, if any, (iv) all governmental laws, statutes, codes and regulations to which the Property is or may be subject in the future, and the extent to which the Property is in compliance therewith, (v) any governmental permits or approvals obtained or to be obtained in connection with the present or proposed use of the Property; (vi) the availability of utilities and services; (vii) Buyer's contemplated use of the Property and the fitness of the Property for any present or proposed use including, but not limited to the parking available on the Property and, (viii) the presence of Hazardous Materials on or about the Property and, in general, its environmental condition, and whether or not any Hazardous Materials may have migrated onto the Property from one or more adjacent or nearby properties, and (ix) the present or past income and expense and the financial results of the operations of the Property and the prospects for future revenues from the Property. . (B) Buyer acknowledges that prior to the Closing Buyer will have had the opportunity (i) to review all of the Property Files provided by Seller, (ii) to thoroughly inspect the Property and (iii) to retain any and all representatives of its choice and expense t9 assist in its due diligence evaluation of the property and that Buyer is purchasing the Property in its "AS IS", "WHERE IS" condition and "WITH ALL FAULTS" and without any representations or warranties whatsoever from Seller except as may be expressly set forth in this Agreement.. 24. Buyer acknowledges that it has had every opportunity to conduct whatever inspection and review of the Property that Buyer deemed relevant to Buyer's decision to purchase the Property. Subject to the other provisions of this Agreement, including the Seller representations in Section 29(A), (1) Buyer will purchase the Property subject to each and every Condition of the Property, (2) Buyer assumes the risk that an adverse Condition of the Property may not have been revealed by Buyer's investigation, (3) Seller has no obligation to correct or compensate Buyer for any Condition of the Property, and (4) by acquiring the Property, Buyer shall be deemed to have waived all objections to the Condition of the Property, even if any Condition of the Property would not have been disclosed by inspection or review. 25. RELEASE AND \tV AI\lER. (A) Except for damages suffered by Buyer directly and solely as a result of a breach by Seller of any express representation of Seller which is materially false, Buyer hereby fully and forever releases, acquits and discharges Seller of and from, and hereby fully and forever waives: -5- C:\Documents and Settings\PDM\LocaJ Settings\Temporary Inteme! Files\OLI<. J F6\960463_J .DOC Q. '~.r V (i) Any and all claims, actions, causes of action, suits, nr,.....,....,-..I"""\,..I;t""'\""""" ""\,....-...__.....l,... ~;......h.(.,... .....1......-....___.... _"...........-4-,... .......".......__.....__ _... _4-'-,....", -----......-.....-""=-- 1-" VvC;C;UII1::I'>, UC;IIICl"U'>, "::I'IL'>, UClI I I CI::I c;'> , vV'>L'>, C;^t-'C;I,;:)C;;:) VI VlIlC;1 vVI'lfJc;II;:)CllIVII whatsoever, WHETHER KNOWN OR UNKNOWN, direct or indirect, foreseeable or unforeseeable, absolute or contingent ("Claims"), that Buyer now has or may have or which may arise in the future arising out of, directly or indirectly, o~ in any way connected with: (A) any condition of environmental contamination or pollution at the Property, however and whenever occurring (including, without limitation, the contamination or pollution of any soils, subsoil media, surfacewaters or groundwaters at the Property); (B) to the extent not already included in (A), above, the prior, present or future existence, release or discharge, or threatened release, of any Hazardous Materials at the Property, however and whenever occurring (including, without limitation, the release or discharge, or threatened release, of any Hazardous Materials into the air at the Property or into any soils, subsoils, surfacewaters or groundwaters at the Property); (C) the violation of, or non-compliance with, any Environmental' Requirement or other Applicable Law now or hereafter in effect, however and whenever occurring with respect to the Property; (0) the condition of the soil at the Property; (E) the condition of any improvements at the Property, including, without limitation, the structural integrity and seismic compliance of any such improvements; or (F) to the extent not already covered by any of the foregoing clauses (A) through (E), above, the use, maintenance, development, construction, ownership or operation of the Property by Seller or any predecessor(s )-in-interest in the Property of Seller, or by any tenant or other occupant of any portion of the Property. (ii) All damages (including, without limitation, damages for death, personal injury, emotional distress, or injury to property, the environment or natural resources), occurring on the Property, foreseeable or unforeseeable, including, without limitation, compensatory damages, consequential damages, punitive damages, and the cost of demolition and rebuilding of any improvements; losses (including, without limitation, lost profits, any diminution in the value of the Property, and any damages for loss of business or restriction on use); costs (including, without limitation, all costs and expenses related to the investigation, monitoring, remediation or other cleanup of Hazardous Materials or which are incurred in order to comply with any Environmental Requirement [including, without limitation, any governmental order, decree or directive] or other Applicable Law now or hereafter in effect); liabilities (including, without limitation, liability to any third person or governmental authority to indemnify, reimburse or otherwise compensate such person or authority for anything); judgments; fines; penalties; fees (including, without limitation, fees for the services of attorneys, consultants, contractors, engineers, experts, laboratories and other professionals); expenses. or other compensation whatsoever arising out of, directly or indirectly, or in any way connected with any of the matters described in section 24 (A)(i), above. (8) Without limiting the ;:;cope or generality of the foregoing release and waiver provisions, those provisions shall specifically include and cover (1) any claim for or right to indemnification, contribution or other compensation based on or arising under CERCL.A, (hereinbelow defined), RCRA (hereinbelow defined), the Carpenter-Presley- Tanner Hazardous Substances Account Act or any similar or other Applicable Law now -6- C.'Documents and Settings\PDM\Local Settings\Temporary Internet Fiks\OLK 1 F6\960463_LDOC ./"\ ~'" ,..., L-/l L, , l""~> I.) or hereafter in effect, and (2) any claim for or based on trespass, nuisance, waste, negligence, negligence per se, strict liability, ultrahazardous activity, indemnification, contribution or other theory arising under the common law of the State of California (or any other applicable jurisdiction) or arising under any Applicable Law now or hereafter in effect. For purposes of this Section 25, the word "at" also means on, under, in, above, and in the vicinity of. (C) Waiver of Civil Code Section 1542: With respect to all releases made by Buyer, Buyer hereby waives the application of California Civil Code Section 1542 and hereby verifies that it has read and understands the following provision of California Civil Code Section 1542: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his settlement with the debtor." Buyer: All of the provisions of this Section 25 shall survive the Close of Escrow. 26. HAZARDOUS MATERIALS; ENVIRONMENTAL REQUIREMENTS. (A) Hazardous Materials. As used herein, the term "Hazardous Materials" means any and all substances, chemicals, wastes, sewage, materials or emissions which are now or hereafter regulated, controlled, prohibited or otherwise affected by any local, state or federal statute, ordinance, code, rule, regulation, order, decree, permit or other law now or hereafter in effect including, without limitation, (i) any substance defined as a "hazardous substance", "hazardous material", "hazardous waste", "toxic substance", or "air pollutant" in the Comprehensive Environmental Response, Compensation and Liability Act, as amended ("CERCLA"), 42 U.S.C. SS 9601, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. SS 1801, et seq., as amended, the Resource Conservation and Recovery Act, as amended ("RCRA"), 42 U.S.C. SS 6901, et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. SS 1251, et seq., or the Clean Air Act, as amended, 42 U.S.C. SS 7401, et seq.; (ii) any substance the presence of which at the Property causes or threatens to cause a nuisance upon the Property or to adjacent properties or poses or threatens to pose a hazard to the health or safety of human beings; (iii) any substance the presence of which at the Property or at nearby or adjacent properties could constitute a trespass; (iv) any substance defined as a "hazardous substance", "hazardous waste", "hazardous substance", "extremely hazardous waste", "RCF(A hazardous waste", "waste" or "hazardous material" in SS 251151, 25117, 25122.7, 25120.2,25124,25281, 25316 or 25501 of the California Health and Safety Code, as amended, or listed pursuant to S 25140 of the California Health and Safety Code, as amended; (v) any chemical or other substance regulated by the California Safe Drinking Water and Toxic Enforcement Act -7- C:\DOCllments nnd SeHIl1gs\PDM\Loe;li Setlings\Temporary Il1temet files\OLK I F6\960463_I.DOC {~) of 1986, California Health and Safety CodeSS 25249.5, et seq., as amended; (vi) any substance defined as a "waste" or "hazardous substance" in S 13050 of the California Water Code, as amended; and (vii) any substance listed in California Labor Code S 6501.7 or 9004, as amended. In addition to the foregoing, to the extent not already included therein, the term "Hazardous Materials" also means (A) asbestos (including, without limitation, asbestos containing materials); (B) flammable, explosive, infectious, carcinogenic, mutagenic, or radioactive materials; (C) petroleum or any substance containing or consisting of petroleum hydrocarbons (including, without limitation, gasoline, diesel fuel, motor oil, waste oil, grease or any other fraction of crude oil); (D) paints and solvents; (E) lead; (F) cyanide; (G) DDT; (H) printing inks; (I) acids; (J) pesticides; (K) ammonium compounds; (L) polychlorinated biphenyls; (M) radon and radon gas; and (N) electromagnetic or magnetic materials, substances or emissions. (B) Environmental Requirements. As used herein, the term "Environmental Requirements" means all present and future statutes, regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises, and similar items, of all governmental agencies, authorities, departments, commissions, boards, bureaus, or instrumentalities of the United States, any state (including, without limitation, the State of California) and any political subdivisions thereof, and all applicable judicial, administrative, and regulatory decrees, judgments, and orders, in any way relating to the protection or other regulation of human health or safety, natural resources or the environment, including, without limitation, all of the statutes, ordinances, codes, rules, regulations, orders, decrees, permits and other laws referred to above. 27 Materiality. The provisions of this Section 23, 24, 25 and 26 are material and included as a material portion of the consideration given by Buyer to Seller in exchange for Seller's performance under this Agreement. 28. REPRESENTATIONS AND WARRl\NTIES. (.A) Seller's Representations and VVarranties. Seller represents and warrants Buyer as of the Execution Date and as of the Closing Date that: (i) Seller is not a "foreign person" within the meaning of Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and does not have nonforeign status under California Revenue and Taxation Code Sections 18692 and 18668. (ii) To the best of Sellers' knowledge, there are no actions, suits, material claims, legal proceedings, or any other proceedings affecting the Subject Property or any portion thereof, at law, or in equity before any court or governmental agency, domestic or foreign. (iii) Until the Close of Escrow, Seller shall maintain the property in its current condition and state of repair and maintenance, and shall perform all of their obligations under any service contracts or other contracts affecting the property. -8- C:\[)ocumcnts and Senings\PDM\Loca 1 Settings\T emporary lntemet Files\OLK 1 F6\960463 _1 DOC ~ 1 (iv) Until the Close of Escrow, Seller shall not enter into any new Lease of any portion of the Subject Property. (v) Until the Close of Escrow, Seller shall not intentionally do anything which would impair Seller's title to the Property. (vi) To the best of Seller's knowledge, neither the execution of this Agreement nor the performance of the obligations herein will conflict with, or breach any of the provisions of any bond, note, evidence of indebtedness, contract, lease, or other agreement or instrument to which Seller's property may be bound, if any. (vii) Until the Close of Escrow, Seller shall, upon learning of any fact or condition which would cause any of the warranties and representations of these Representations and Covenants of Sellers not to be true as of Close of Escrow, immediately give written notice of such fact or condition to Buyer. (B) Buyer's Representations and Warranties. Buyer represents and warrants that: (i) Buyer is duly organized validly existing, and in good standing under California law; (ii) the execution, delivery and performance of this Agreement and any of the other documents executed and delivered on behalf of Buyer have been duly and validly authorized by all necessary action and proceedings; (iii) the persons executing this Agreement and any of the other documents executed and delivered on behalf of Buyer are duly appointed and authorized by Buyer to execute such documents; and (iv) no consent from or notice to any governmental authority, other than the City Council of the Buyer, or any other person or entity is required to permit Buyer to execute, deliver and perform this Agreement in accordance with its terms. (C) Survival. The representations and warranties of Seller under this Section shall survive the Closing for one year. 29. TITLE INSURANCE. North American Title Insurance Company ('Title Company") has provided Buyer with a Preliminary Title Report for the Subject Property dated April 2, 2007 for~ 1759 Dublin Boulevard (APN 941-1560-007-01) (herein the "Preliminary Title Report"). Buyer has reviewed the Preliminary Title Report and the Buyer specifically approves of each exception to title set forth in the Preliminary Title Report, except, Exception NO.5 which must be cleared prior to Close of Escrow. All Exceptions to which the Buyer does not object to shall be herein referred to as "Approved Exceptions". 30. Buyer hereby specifically agrees and acknowledges that it has agreed to purchase the Property from the Seller by assuming each and every obligation arising as of or after the date of Close of Escrow of Seller in all of the Leases. Without limiting the generality of the foregoing, Buyer specifically agrees and acknowledges that in the event any of the tenants ("Tenants") in connection with any of the Leases are entitled to receive any compensation in connection with the Buyer's threatened condemnation of the Property or any actual condemnation which may take place following the Close of Escrow or in connection witrl the termination, cancellation of any of the Leases or the Buyer's refusal to extend the term of any of the Leases the Buyer shall be solely -9- C:IDoC1I1l1ents alld SettingslPDMILocal SettingslTel11)Oorary llltemet FiJeslOLKJ F61960463_J.DOC ! 2~ responsible for the payment of any and all money or other compensation any of the tenants of any of the Leases may be entitled to. Buyer acknowledges that Seller would not have entered into this Agreement without the Agreement of Buyer to take full responsibility for all obligations owing in connection with the Leases including but not limited to, any sums with any such tenants may be entitled to in connection with the . Buyer's development of the Project. The Buyer shall indemnify, defend and hold Seller harmless from and against any and all losses claims, liabilities, judgments, liens, expenses or other costs which Seller may incur or otherwise be subject to in connection with any of the Leases occurring after the Close of Escrow. 31. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. Except as expressly provided otherwise in this Agreement, it is understood and agreed that neither Buyer nor Seller, nor any of their agents, employees, or contractors, has made and is not now making, and Seller and Buyer have not relied upon and will not rely upon (directly or indirectly), any warranties, representations, or guaranties of any kind or character, express or implied, oral or written, past present or future, with respect to the Subject Propeliy. 32. PERMISSION TO ENTER ON PREMISES. Seller hereby grants to Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to Close of Escrow for the purpose of making necessary or appropriate inspections. 33. COUNTERPARTS. This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. 34. LOSS OR DAMAGE TO IMPROVEMENTS. Loss of damage to the real property or any improvements thereon, by fire or to other casualty, occurring prior to the Closing shall not relieve Buyer of its obligation to purchase the Property as contemplated by this Agreement. The parties hereto acknowledge that Buyer intends to demolish the improvements on the Propecty sometime following the Close of Escrow in order for Buyer to develop its Project and that the improvements on the Property have no real value to Buyer. In the event that loss or damage to the real property or any improvements thereon, by fire or other casualty, occurs prior to the Closing, Buyer may elect to require Seller to assign to Buyer any insurance proceeds otherwise payable to Seller in connection with any such casualty 35. CLOSING STATEMENT. Seller instructs Escrow Agent to release a copy of Sellers' statement to Buyer (c/o Elizabeth Silver, Meyers, Nave, Riback, Silver and Wilson, 555 1ih Street, Suite 1500, Oakland, CA, 94607). 36. EMINENT DOfv1Alf\! DISMISSAL. SeHer and Buyer acknowiedge that this transaction is a negotiated settlement in lieu of condemnation. Seller hereby waives any and all claims to any money, all attorney's fees, costs, interest, disbursements, and -10- C'\Documents and Settil1gs\PDM\Local Settings\Temporary Internet Files\OLK 1 F6\960463 ~l.DOC expenses arising out of any potential known or unknown issues relating to condemnation or inverse condemnation except for the payment by Buyer to Seller of $5,000 for appraisal services pursuant to Code of Civil Procedure section 1263.025. 37. CONTINGENCY. It is understood and agreed between the parties hereto that the completion of this transaction, and the Escrow created hereby, is contingent upon the specific acceptance and approval of the City Council of the City of Dublin on or before May 1, 2007. The execution of these documents and the delivery of same to Escrow Agent constitute said acceptance and approval. 38. MISCELLANEOUS. (a) Time of Essence. Time is of the essence with regard to every obligation of this Agreement. Sellers and Buyer hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation and provision hereof and that failure to timely perform any of the terms, conditions, obligations or provisions hereof by either party shall constitute a material breach of and a non-curable (but waivable) default under this Agreement by the party so failing to perform. (b) Entire Agreement. This Agreement (including all Exhibits attached hereto) is t;he final expression of and contains the entire agreement between, the parties with respe~t to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwisee,xpressly permitted herein. The parties do not intend to confer any benefit hereunder on any person, firm or corporation other than the parties hereto. (c) Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. (d) Waivers. No waiver of any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act. (e) Successors and Assigns. The terms and conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. (f) Professional Fees. In the event of the bringing of any action or suit by a party hereto against the other party hereunder by reason of any breach of any of -11- C:\Doctll11ents and Seltings\PDM\LocaJ Seltings\Temporary Inlcmel FiJes\OLK J F6\960463_I.DOC the covenants, agreements or provisions on the part of the other party arising out of this Agreement, then in that event the prevailing party shall be entitled to have and recover of and from the other party all costs and expenses of the action or suit, including reasonable attorneys' fees, and any other professional fees resulting therefrom. (g) Broker's Fees. Buyer and Seller hereby represent to each other that neither has incurred any obligation to pay a broker's commission or finder's fee in connection with the consummation of the transaction contemplated by this Agreement. Buyer and Seller shall each indemnify, defend and hold the other party harmless from and against any and all claims asserted by any broker or other person as a result of the such party's breach of the representation set forth in this Section. (h) Notices. All notices or other communications required or permitted hereunder shall be in writing and either delivered by hand or deposited in the United States mail first-class, postage prepaid and addressed as follows: To Seller: Berkeley Land Co., Inc. c/o Mike Mikulich, V.P., Real Estate 321 Hartz Ave., Suite 200 Danville, CA 94526 To Buyer: CITY OF DUBLIN Richard Ambrose, City Manager 100 Civic Plaza Dublin, CA 94568 cc: Meyers, Nave, Riback, Silver and Wilson 555 12th Street, Suite 1500 Oakland, California, 94607 A TTN: Elizabeth H. Silver - ~._.,.... -~- ---,-----------. -. .--- "---' - -- Claudia J. Gorham FAX: 510-444-1108 -12- C:\DOClll1lents and Seuings\PDM\Local Setrings\Tel11ponny Internet Fiies\OLK I F6\960463 _1.DOC ,r-~~2o, f .I--)()). t.-~ ! '- D "" IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth hereinabove. BUYER/CITY: C~OF DUBLIN ~ By: ~~ ~ Richard Ambrose City Manager SELLER: BERKELEY LAND COMPANY By: ~~- --- ATTEST. f 0 . . By: ~.-t.1J /': / U City Clerk! Depl!+j APPROVED AS TO FORM: By: By: ~)~ I r Eli etl1H. Silver .~ . ity Attorney ----:> -" ..tt;.. -13- C:\DoclIments and Settings\PDM\Loca! Settings\Temporary Inlemet Files\OLK! F6\960463 _I.DOC ~, ....,..' EXHIBIT "A" .k-EGAL DESCRIPTION [Insert Legal Description of Fee Acquisition] BLCM\45831\698682.3 -1- DESCRIPTION: The land referred to herein is situated in the State of California, County of Alameda, City of Dublin, afldis described as follows: PARCEL ONE: BEGINNING AT A POINT ON THE SOUTHERN UNE OF THE STATE HIGHWAY RUNNING FROM HAYWARD TO DUBLIN, 'AS SAID LINE EXISTED AUGUST 12,1930, SINCE THE WIDENING THEREOF, SAID SOUTHERN LINE BEING 40 FEETSOUTHERL Y (MEASURED AT RIGHT ANGLES) FROM THE CENTER LINE OF SAID HIGHWAY, AS RELOCATED AND NOW EXISTS, DISTANT THEREON, 177.8 FEET EASTERLY FROM THE INTERSECTION THEREOF, WITH THE WESTERN LINE OF LAND HERETOFORE CONVEYED BY HANS THERKELSEN AND W1FE, TO MARIE FERRERO, BY DEED DATED JUNE 16, 1921 AND RECORDED JUNE 21,19:21 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMEDA COUN1Y, PAGE 347; RUNNING THENCE NORTH 680 15' EAST ALONG SAID SOUTHERN UNE OF THE STATE HIGHWAY, 114.56 FEE1; THENCE SOUTH 21.45' EAST, 10 FEET TO THE POINT OF BEGINNING OF THE PROPERTY HEREIN TO BE DESCRIBED, SAID POINT BEING DISTANT 50 FEET SOUTHERLY (MEASURED AT RIGHT ANGL.ES} FROM THE CENTER LINE OF THE AFORESAID STATE HIGHWAY, AS RSLOCATED AND AS THE SAME NOW EXISTS FROM SAID POINT OF BEGINNING; RUNNlNG THENCE SOUTH 210 45' EAST, 170 FEET; THENCE SOUTH 660 13' 30~WEST, 113.02 FEET: THENCE NORTH 220 15' WEST. 174 FEET, MORE 'OR LESS, TO A POINT WHICH WOULD BE INTERSECTED BY A LINE DRAWN PARAlLE\.- WiTH THE CENTER LINE OFTHE STATE HIGHWAY AND DISTANT 50 FEET SOUTHERLY (MEASURED AT RIGHT ANGLES) THEREFROM; THENCE NORTH 680 15' EAST. i 14.47 FEET TO THE POINT OF BEGINNING. . PARCEL 'tiN 0 , BEGiNNiNG AT ,b.,POINT Ot-J THE SOUTHWESTERN LINE OF FOOTHILL ROAD, ALSO KNOWN AS THE ROAD FROM DUBLIN TO SU!\lOL. AT THE SOUTHERN EXTREMITY OF THE CURVE CON~-lECTtNG SAlb ROAOWtTH THE SOLfrHEASTERN LINE OF THE STATE HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HiGHWAY NOW EXiSTS, AND AS SAID HIGHWAY LINE AND CUfWE ARc DESCR1BED IN THE DEED FROM FELIX FERRERO Af'JO MARIE FERRERO, HIS WIFE, TO STATE OF CALIFORNIA., DATED MAY 20,1931, RECORDED AUGUST 13,1932. IN BOOK 2857 OF OFFiCIAL RECORDS OF ALAMEDA COUNTY, PAGE 76; RUNNING THENCE NORTHWESTERLY, WESTERLY M-JD SOUTHWESTERLY ALONG SAID CONNECTING ~URVE, BEING ALONG THE ARC OF A CIRCLE TO THE LEFT, HAVING A RADIUS OF 50 FEET AND TANGENT TO SAID LINE OF FOOTHILL ROAD, A D1STANCE OF 75.05 FEET; THENCE ALONG SAlD SOUTHEASTERN UNE OF SAID STATE HIGHWAY, SOUTH 68015' WEST, 105.92 FEET, MORE OR LESS, TO THE . NORTHEASTERN LlNE OF THE PARCEL OF LAND DESCRIBED IN THE DEED FROM FELIX FERRERO ANDMA.RIE FERRERO, HIS WIFE, TO UNfON OIL COMPANY OF CALIFORNIA.. DATED AUGUST 12, 1930 AND RECORDED AUGUST 15, 1930, IN 800K 2418. OF OFFICIAL RECORDS .OF ALAMEDA. COUNTY, PAGE 274; THENCE ALONG THE NORTHEASTERN, SOUTHEASTERN AND SOUTHWESTERN LINES OF SAID LAST MENTIONED PARCEL OF LAND, THE THREE FOLLOWING COURSES AND DISTANCES; SOUTH 21' 45' EAST, 170 FEET; SOUTH 66" 13' 30" WEST, 113.Q2 FEET, AND NORTH 22015' WEST, 174 FEET TO THE SAID SOUTHE!\STERN LINE OF SAID STATE HIGHWAY; THENCE ALONG THE LAST MENTIONED LINE, THE TWO FOLLOWING COURSES AND DISTANCES; SOUTH 68" 15' WEST, "119.34 FEET, MORE OR LESS, AND SOUTHWESTERLY ALONG THE ARC OF A CURVE TO THE lEFT, HA VfNG ft, RAD IUS OF 950 FEET AND TANGENT TO THE LAST MENTIONED COURSES, A D!SIANCE OF 58,63 FEET TO THE SOUTHWESTERN LlNE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL 2", IN THE DEED FROM FELIX FERRERO TO H. B. OXSEN, DATED JULY 1,1936, RECORDED JULY 10,1936, IN BOOK 3317 OF OFFlCIAL RECORDS OF ALAMEDA COUNTY', PAGE 47Q; THENCE ALONG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN liNES OF SAID LAST fviENTlOhlED "PARCEL 2", THE FIVE FOLLOWING COURSES AND D!STANCES: SOUTH 21' .15' EP.ST, 371.91 FEET, MORE OR LESS: NORTH 710 30' EAST, 24.618 FEET; SOUTH 210 15' EAST, 38.60 FEE:T; NORTH 71' :1D'. EAST, 250.80 FEET r\ND NORTH 230 15' WEST, 38.28 FEET, MORE OR LESS, TO THE SOUTHEASTERN LINE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL 1# IN SAID lAST MENTIONED DEED: THENCE ALONG THE LAST MENTIONED LINE NORTH 63.45' EAST, 202.62 FEET TO SAID SOUTHWESTERN UNE OF FOOTHILL ROAD; THENCE ALONG THE LAST MENTIONED LINE NORTH 25' 45' WEST, 325.39 FEET, MORE OR LESS, TO THE POINT OF 'BEGINNING. APN: 94'\-'\560-007-01 BLCM14583 1 \698682.3 EXHIBIT liB" DEPICTION/PLAT MAP OF FEE ACQUISITION [Insert Map of Fee Acquisition] -1- "'., ~-;.:Jr ~/ :~i MAP ~ ,Co'>>> AlnN"..~t~~ 5'~ qqc)~6 i ~-r MAP OF THE PROPER1YOF TAE ESTATE Of' 1l1.-41 1#.' />,:; 2- e:UZ.A~EiH A. OOUGHe:RTY,(s.e.",,~.7'.G? ' . SANTA RITA RANOHO 'J~Youn~ admr; J.D. Par;htcd(&e;r~~ Scalc;'l"" /'00' 40 i;~ ~. ~~:r;: .~'6 ,.;z:;; ). ~ ~,~~~ ~~~-:' ~n~ .! . t co 1..l " 113 ... t: ... '" .=: ~ .", ~ >~,~ ~ IrS .1 1550 To Su~o'- ;?1 i)Uf3\..\ N (Co. eO&o.~\<:l'$~ . ,oo#~tM' H% ~"l.,,-~v.# H.. .-. 'l.2.~"~ .In ~ftI 'fi11 4'11' 'V , ~ ',;,~' l ... >l ill ~ . ",. ".: ......., ". ~!' - ,:.' .. , ~ll' 0c1n o 'm.. P,>j ore;li"rA>'! i Cl:!":,,!=rt'Y.::\ ' ,~em . ' - .. " ..... 1[' . "J.~''&:~ '>i. Il. .,' "l ,. " ~ i' x: ,.'1 ;;# Ii ,19~ ! :r , t I 'f! f- ~q- f., V,l '\ i ,( : .... /' 'J~&. 'Jes~riptjon: Alameda, CA Assessor Map 94 { 1560 J>age: 1 of 1 Order: ac am Comment: ~., -r-:;;o . ~,"'...:~~~::~- L '11""'" '... t....., -' Gt4.Tt "tn.tH " .... N I ~ i1: f'"- - ,[() o .J o - '-- A €> t c~ ~~ 1510 /)/ :.1 !/ I 1100 !It~ , ~! t;.. :t~ ; e g~ ci! !: oS :::~ fE ,~ ~ "'J;ll Clio. ~I;) ~i '~~ ~~ :1 =!' ~'''5 'i'ti ,. "- lO." 8= ".!l 0'- ...0 ....c .e: . i! "'" ~ e Q.~ .. I:ll ::'0 'i~ ..- ~i '" .. c- B~ -:.:0 "'>. E ... $l~ Eli ~~ "I- / /-~, 1.1 H"~~J~ f-\ c''! c'~ \5;t Co c:::. ~ ~:.... ' <:t--~ . ~ .~~~ w. , .::i l:l'l~ , "'.' '~':"O . ,-r I~ (\!u1 'if' 'fJ'~~ .,.!.~ ~ t\l - I I -~ItlW ,I ! .{ - 13 . I . . fdAP, OFTI"IE PROPi~RrY"OF THE ES1~Al<4E Ofl' . . EL1ZA:JJE1nH A. DOUGHERTY, (BK.~.~ 7S.J SANTA R/7~lRANCHO .RS 39.5'l"nr.s.4.t:r/jf )(J,'rountJ u~mf, J~D'. 'PlJehecdf"&t: W~1:.;/.9-;() \~.1 ~~ccillil: Iii iiII fOO' , " ~.. f2 ...l6~t: . )?' ,/ -".,--- , '. I' ffi ~ ~ ~----~ 1550'. ,~~ --- ~~ . _~ 4lf!.!12 \11 ' .. .... -t '-JUl<<~ j:: ill · . '. ~ ..~~ . DueL.\ ~ 0 'a~ '@~ .tc~;p;~:f-;.""' .'. , (C 00' "'"0 \S;5;:;l , , A. A/ j,,/ v !d; ~ ~ ci ~ ~ " .":i'lil'l""'" O. ~ -., ": - LJa~~V~1 nh z.:~ ~-'"'"i.{J ."'~ . . .~'.:ii'r:;;,\;c ~ <. _< '-'" _,,:"8" ..~. ".ta:y" /A~'i..--.,.';i'c)(0c'1iiL/I...TJ)f- h~ ~.:' ~: i ~; ~ f':! in. i.~'~ ~ AI" is ~ :z g ~ ~ If I ~~~~~~ "'~ "," ,~ :.:;: s: "-- .... Cl ~ . $ v ,... 1X.2 a <:..}.::J "'= '<J. III ~oza..o ~k . "H.""u'. '-> a 0.. ,,> <J ~ i --"" '" 0:;::: ~ ~ m ~'.i' ~~~~~~ ! f\ ll-)7f ~. ~~ ~'I.'/ L ~ '\1 Yo . tl ;, ~. 'J' . 0 C _....._~---- - - 'Bi/{c~L OHE r-.. o U1 ~ {'.y'''\.'\j I P;4 R. C f.. L- fvl (] liJ-; -- ~ ~~~ ~ 1-1".4 . ..~. ~ (~)f . ~ . I~. /<, ~'I",.tJ ,.,' ',,,\ , l> l~ t ,'J .' j i:~~jJ .r ........c_ ,. I 'W .lIj/'ft ~. ~ .4> -:~jJ' 10 ~~. ~' :x!~ Ii, If' 8~'I./~i' iJ l\ .,~ ,I) ~ I~ r,! "I b "j I~ \"''' . ,,: 'f kif ;. ~\j? ~. {f~ fJ! . tu1 j ! U /. I. I ,:i './' ,/1 \' I J _/ pill / J t~ 1 cln0/,. '"':'*i"""'''' ..---. .... : <> ' "Jl. ';i-\'l1~. -4,-"-O-P-. .'<\ "' \:::.. 8 J I I I / ! J I It,. \ 1 . ... ~ ,\;, PRtlTE:S:r.ANT ~9!)' \. {:{r: 1'~l!:1'\;:riy ~.;;." \" ." 0 ClT't h. \ .J;l: 'f1 c/'J ". ~~1~~ ~. ...!ll:i...&'< J'!"!=''r..,~.~Jl:l~1- .....; ",,,,,,,,,,","'w_-.- f l'll .. . . " . ,,,.., ',. '" t:..llJ.'11' .. I . .!lOt. / -) 22,;c1 {.r EXHIBIT "C" FORM OF GR.-ANT DEED BLCM\4583I \698682.3 -1- Recording Requested By North American Title Company Order No. 56901-54990438-PRT Escrow No. 54606-57310108- EBC AND WHEN RECORDED MAIL TO: Name City of Dublin Street 100 Civic Drive Address City & Dublin, CA 94568 State SPACE ABOVE THIS LINE FOR RECORDER'S USE CORPORA TION GRANT DEED A.P.N. 941-1560-007-0) The undersigned grantor (s) declare (s): Documentary transfer tax is $ NONE -Exempt City transfer tax is $ NONE ( ) computed on full value of property conveyed, or ( ) computed on full value less value of liens and encumbrances remaining at time of sale. ( ) Unincorporated area: (X) City of Dublin, and FOR A VALUABLE CONSIDERA.TIOl'J, receipt of which is hereby acknowledged, Berkeley Land Company, Inc., a corporation organized under the laws of the State of California hereby GRANT(s} to City of Dublin, a municipal corporation the following described real property in the City of Dublin, County of Alameda, State of California: LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT" A" AND MADE A PART HEREOF Dated Ami] 27. 2007 STA TE OF CALlFORNJA, COUNTY OF On )SS. ) before me. Berkeley Land Company, Inc., a California Corporation Notary Public, personally appeared ". sonally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose narne(s) is/are subSCribed to the within instrument and acknowledged to me that he/she/they executed the same In 1m/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of \Vh ich the person( s) acted, executed the instrument. WITNESS my hand and official seaL per By: F (ank E. Sabatte, President Signature MAIL TAX STATEMENTS TO (This lrea for ofliciaIllotarial seal) SAME AS ABOVE NAME ADDRESS CITY, STA TE. ZIP CIDocuments and SettingslPDMILocai SetlingslTemporary Internet FileslOLK1 F6157310108 - Corp Grant Deed1.RTF CITY OF DUBLIN CERTIFICA TEOF ACCEPTANCE (California Government Code 27281) This is to certify that the Corporation Grant Deed (APN 941-1560-007-01) dated April 27, 2007, executed by Berkeley Land Company, Inc. to the City of Dublin, a municipal corporation ("Grantee") is accepted by the undersigned officer or agent on behalf of the City Council of the City of Dublin, pursuant to authority conferred by Resolution No. 24-87 of the Dublin City Council adopted on April 13, 1987, and the Grantee consents to recordation thereof by its duly authorized officer. Dated: ~UO< 02/ (ZaJ 7 B;- ~~~ Richard Ambrose City Manager DESCRIPTION: The land referred to herein is situated in the State of California, County of Alameda, City of Dublin, and is described as follows: PARCEL ONE: BEGINNING AT A POINT ON THE SOUTHERN LINE OF THE STATE HIGHWAY RUNNING FROM HAYWARD TO DUBUN, 'AS SAID LINE EXISTED AUGUST 12, 1930. SINCE THE WIDENING THEREOF. SAID SOUTHERN LINE BEING 40 FEETSOUTHERL Y (MEASURED AT RIGHT ANGLES) FROM THE CENTER LINE OF SAID HIGHWAY, AS RELOCATED AND NOW EXISTS, DISTANT THEREON, 177.8 FEET EASTERLY FROM THE INTERSECTION THEREOF, WITH THE WESTERN LINE OF LAND HERETOFORE CONVEYED BY HANS THERKELSEN AND WIFE, TO MARIE FERRERO. BY DEED DATED JUNE 16. 1S21 AND RECORDED JUNE 21, 1921 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMEDA COUN1Y, PAGE 347; RUNNING THENCE NORTH 68015' EAST ALONG SAID SOUTHERN liNE OF THE STATE HIGHWAY, 114.56 FEET; THENCE SOUTH 21.45' EAST, 10 FEET TO THE POINT OF BEGINNING OF THE PROPERTY HERE!N TO BE DESCRIBED, SAID POiNT BEING DISTANT 50 FEET SOUTHERLY (MEASURED AT RIGHT ANGLES) FROM THE CENTER LINE OF THE AFORESAID STATE HIGHWAY, AS RELOCATED AND AS THE SAME NOW EXISTS FROM SAID POINT OF BEGINNING; RUNNING THENCE SOUTH 21" 45' EAST, 170 FEET; THENCE SOUTH 66013' 30. WEST, 1 13.02 FEET: THENCE NORTH 22015' WEST. 174 FEET, MORE 'OR LESS, TO A POINT WHICH WOULD BE INTERSECTED BY A LlNE DRAWN PARAlLE~ WITH THE CENTER LINE OFTHE STATE H1GHWAY AND DISTANT 50 FEET SOUTHERLY {MEASURED AT RIGHT ANGLES)THEREFROM; THENCE NORTH 66" 15' EAST. "\ 14.47 FEET TO THE POINT OF . BEGINNING. . . PARCEL TWO: BEGINNiNG AT APDINT ON THE SOUTHWESTERN LINE OF FOOTHILL .ROAD, ALSO KNOWN AS. THE ROAD FROM DUBLIN TO SUNOL. AT THE SOUTHERN EXTREMITY OF THE CURVE. . CONNECTING: SAID ROADVJITfi THE SOUTHEASTERN LINE OF THE' STATE HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HIGHWAY NOW EXISTS. AND AS SAJD HIGHWAY LINE AND CURVE ARE DESCR1BED IN THE DEED FROM FELIX FERRERO AND MARIE FERRERO, HIS WiFE, TO STATE OF CALIFORNIA, DATED MAY 20,1931, RECORDED AUGUST 13, 1932, IN BOOK 2867 OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 76; RUNNING THENCE NORTHWESTERLY, WESTERLY AND SOUTHWESTERLY ALONG SAID CONNECTING 9URVE. BEING ALONG THE ARC OF A CIRCLE TO THE LEFT, HAVING A RADIUS OF 50 FEET AND TANGENT TO SAID LINE OF FOOTHILL ROAD, A DISTANCE OF 75.05 FEET; THENCE ALONG SAID SOUTHEASTERN UNE OF SAID STATE HIGHWAY, SOUTH 68015' WEST, 105.92 FEET, MORE OR LESS, TO THE. . NORTHEASTERN LlNE OF THE PARCEL OF LAND DESCRIBED IN THE DEED FROM FELIX FERRERO AND'MARIE FERRERO, HIS WIFE, TO UNfON OIL COMPANY OF CALIFORNIA, DATED AUGUST 12, 1930 AND RECORDED AUGUST 15,1930, IN BOOK 2418. OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 274; THENCE ALONG THE NORTHEASTERN, SOUTHEASTERN AND SOUTHWESTERN LINES OF SAlD LAST MENTIONED PARCEL OF LAND, THE THREE FOLLOWING COURSES AND DISTANCES: SOUTH 210 45' EAST, 170 fEET; SOUTH 66" 13' 30" WEST, 113.02 FEET, AND NORTH 22" 15' WEST, 174 FEET TO THE SAID SOUTHEASTERN LINE OF SAID STATE HIGHWAY; THENCE ALONG THE LAST MENTIONED LINE, THE TWO FOLLOWING COURSES AND DISTANCES; SOUTH 680,5' WEST, 119.34 FEET, MORE OR LESS, AND SOUTHWESTERLY ALONG THE ARC OF A CURVE TO THE LEFT, HAVING A RADIUS OF 950 FEET AND TANGENT TO THE LAST MENTIONED COURSES, A DIS1ANCE OF 58.63 FEET TO THE SOUTHWESTERN LINE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL 2;', IN THE DEED FROM FELIX FERRERO TO H. B. OXSEN, DATED JULY 1, 1936, RECORDED JULY 'l0, 1936, IN BOOK 3317 OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 470; THENCE ALONG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN LINES OF SAID LAST MENT10NED "PARCEL 2", THE FIVE FOLLOWING COURSES AND DISTANCES: SOUTH 2.\015' EAST, 371.91 FEET, MORE OR LESS; NORTH 71" 30' EAST, 24.618 FEET; SOUTH 210 15' EAST, 39.60 FEET; NORTH 71' 30'. EAST, 250.80 FEET AND NORTH 23. 15' WEST, 38.28 FEET, MORE OR LESS, TO THE SOUTHEASTERN LINE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL '1" IN SA1D LAST MENTIONED DEED~ THENCE ALONG THE LAST MENTIONED LINE NORTH 63045' EAST, 202.62 FEET TO SAID SOUTHWESTERN LINE OF FOOTHILL ROAD; THENCE ALONG THE LAST MENTIONED LINE NORTH 25' 45' WEST, 325.39 FEEl, MORE OR LESS, TO THE POINT OF BEGINNING. APN: 941-'\560-007-01 .J! /! ~ <..-"" EXHIBIT "D" ASSIGNMENT AND ASSUMPTION OF LEASES BLCM\45831\698682.3 " -J- .., i.~ L (. ,-. ASSIGNMENT AND ASSUMPTION OF LEASES THIS ASSIGNMENT AND ASSUMPTION OF LEASES ("Assignment") is executed as of May _,2007, by and between BERKELEY LAND CO. INC., a California corporation ("Assignor") and THE CITY OF DUBLIN, a municipal corporation ("Assignee"). R E C I TAL S: This Assignment is made with reference to the following facts: A. Assignor is the owner of that certain improved real property in the City of Dublin, County of Alameda, State of California, known as 11759 Dublin Boulevard, also known as the Dublin Square Shopping Center (the "P'Jperty") more particularly described in Exhipit "A" attached hereto. B. The Property is currently subject to the leases identified in Exhibit "B" attached hereto (the "Leases"). C. Assignee is acquiring the Property from Assignor subject to the "Purchase and Sale Agreement Between Berkeley Land Co. and the City of Dublin" dated May 2, 2007 ("hereinafter "Purchase Agreement"). D. Assignor desires (concurrently with its transfer and conveyance of the Property to Assignee) to assign and transfer to Assignee its interest, as landlord, under the Leases and Assignee desires to acquire from Assignor the interest of Assignor, as landlord, under the Leases and to assume all of the obligations of Assignor as landlord under the Leases as of and after the date of the Close of Escrow of the above-referenced purchase. NOW, THEREFORE, for good and valuable consideration as set forth in the Agreement, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. Assianment. As of the Effective Date, Assignor does hereby assign, transfer and convey, without recourse, to Assignee all of Assignor's right, titie and interest as landlord under the Leases, including rents, security deposits, last month rent deposits, and any and all other securities, if any. Assignee hereby accepts the foregoing assignment, transfer and conveyance of Assignor's interest as landlord under the Leases, and Assignee hereby assumes all of the obligations of Assignor as landlord under the Leases arising from and after the Effective Date (including without lirnitation, all obligations to return Security Deposits not already returned by Assignor under the Leases). C:\DOClIl11cnts and Scttings\PDM\Local Scttings\Temporary Intemet Files\OLK I F6\960366_1 2.DOe -1- <^ ~ ub.:.-::> ( 2. Indemnification. Assignee shall indemnify, defend and hold Assignor harmless from any claim, loss or liability arising out of or in any way connected with a default of landlord or any other claim by any of the tenants under any of the Leases which occurs on or after the Effective Date. 3. Counterparts. This Assignment may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. 4. Attorneys' Fees. If either party files any action or brings any proceeding against the other arising from this Assignment, the prevailing party in such action shall be entitled to have and recover as an elements of its costs of suit, and not as damages, reasonable attorneys' and experts' fees and litigation expenses to be fixed by the court both at trial and on appeal. 5. Effective Date. The "Effective Date" of this Agreement shall be the date of the Close of Escrow, as defined in the Purchase Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Assignment on the dates set forth below, to be effective as of the Effective Date. "ASSIGNOR" BERKELEY LAND CO. INC., a California corporation Dated: ,2007 By: Its: Dated: ,2007 By: Its: "ASSIGNEE" Dated: 5:.- d- ,2007 THE CITY OF DUBLIN, a municipal corporation By: ~~H~ CITY MANAGER C:\Documents and Seltings\PDM\Local Setlings\Temporary Internet Files\OLK1F6\960366_12.DOC -2- DESCRIPTION: The land referred to herein is situated in the State of California, County of Alameda, City of Dublin, and is described as follows: PARCEL ONE: BEGINNING AT A POINT ON THE SOUTHERN LINE OF THE STATE HIGHWAY RUNNING FROM HAYWARD TO DUBLIN, 'AS SAID LINE EXISTED AUGUST 12,1930. SINCE THE WIDENING THEREOF. SAID SOUTHERN LINE BE!NG 4() FEETSOUTHERl Y (MEASURED AT RIGHT ANGLES) FROM THE CENTER LINE OF SAID HIGHWAY, AS RELOCATED AND NOW EXISTS, DISTANT THEREON, 177.8 FEET EASTERLY FROM THE INTERSECTION THEREOF, WITH THE WESTERN LINE OF LAND HERETOFORE CONVEYED BY HANS THERKELSEN AND WIFE, TO MARiE FERRERO, BY DEED DATED JUNE i6,192~ AND RECORDED JUf\!E 21, 1921 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 347; RUNNING THENCE NORTH 68. is' EAST ALONG SAID SOUTHERN LINE OF THE STATE HIGHWAY, 114.56 FEEl; THENCE SOUTH 21. 45' EAST. 10 FEET TO THE POINT OF BEGINNING OF THE PROPERTY HEREIN TO BE DESCRIBED, SAID POINT BEING DiSTANT 50 FEET SOUTHERLY (MEASURED AT RIGHT ANGLES) FROM THE CE!\.rrER LINE OF THE AFORESAID STATE HIGHWAY, AS RELOCATED AND AS THE SAME NOW EXISTS FROM SAID POINT OF BEGiNNING; RUNNING THENCE SOUTH 21" 45' EAST, 170 FEET; THENCE SOUTH 66. 13' 30~ WEST, i 13.02 FEET: THENCE NORTH 22015' WEST. 174 FEET, MORE . OR LESS, TO A POINT WHICH WOULD BE INTERSECTED BY A LINE DRAWN PARALLE!... WITH THE CENTER LlNE OFTHE STATE HIGHWAY AND DISTANT 50 FEET SOUTHERLY {MEASURED AT RIGHT ANGLES)THEREFROM; THENCE NORTH 66.15' EAST, .114.47 FEET TO THE POINT OF BEGINNING. . PARCEL 'tWO, BEGINNiNG AT A:P.OINT ON THE SOUTHWESTERN LINE OF FOOTHILL ROAD, ALSO KNOWN AS THE ROAD FROM DUBLIN TO SUNOL. AT THE SOUTHERN EXTREMITY OFTHE CURVE CONNECTING: SAlb ROADWITH THE SOtJrHEA8TERN LINE OF THE STATE HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HIGHWAY NOW EXISTS, AND AS SAID HI.GHWAY LINE AND CURVE ARE DESCR1BED IN THE DEED FROM FELIX FERRERO AND MARIE FERRERO, HIS WIFE, TO STATE OF CALIFORNIA. DATED MAY 20, ';931, RECORDED AUGUST 13, 1932. IN BOOK 2867 OF OFFIClAL RECORDS OF ALAMEDA COUNTY, PAGE 76; RUNNING THENCE NORTHWESTERLY, WESTERLY AND SOUTHWESTERLY ALONG SAID CONNECTING CURVE, BEING ALONG THE ARC OF A CIRCLE TO THE LEFT, HAVING A RADIUS OF 50 FEET AND TANGENT TO SAID LINE OF FOOTHILL ROAD, A DISTANCE OF 75.05 FEET; THENCE ALONG SAID SOUTHEASTERN UNE OF SAID STATE HIGHWAY, SOUTH 68.15' WEST, 105.92 FEET, MORE OR LESS, TO THE, . NORTHEASTERN LINE OF THE PARCEL OF LAND DESCR/BED IN THE DEED FROM FELIX FERRERO AND'MARIE FERRERO, HIS WIFE, TO UNION OIL COMPANY OF CALIFORNiA, DATED AUGUST 12, 1930 AND RECORDED AUGUST 15, 1930, IN BOOK 2418, OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 274; THENCE ALONG THE NORTHEA.STERN, SOUTHEASTERN AND SOUTHWESTERN LINES OF SAID LAST MENTIONED PARCEL OF LAND, THE THREE FOLLOWING COURSES AND DISTANCES: SOUTH 21.45' EAST, 170 FEET; SOUTH 66" 13' 30" WEST, 113.02 . FEET, AND NORTH 22415' WEST, 174 FEET TO THE SAID SOUTHEASTERN LINE OF SAID STATE HtGHWA Y; THHJCE ALONG THE LAST MENTIONED LINE, THE TWO FOLLOWING COURSES AND DISTANCES; SOUTH 68.15' WEST, 119.34 FEET, MORE OR LESS, AND SOUTHWESTERLY ALONG THE ARC OF A CURVE TO THE LEFT, HAVING A RADIUS OF 950 FEET AND TANGENT TO THE LAST MENTIONE.D COURSES, A DISTANCE OF 58.63 FEET TO THE SOUTHWESTERN LINE OF THE PARCEL OF LI'\,ND DESCRIBED AS .PARCEL 2;', IN THE DEED FROM FEL1X FERRERO TO H. B. OXSEN. DATED JULY 1, 1936. RECORDED JULY 10, i936, IN BOOK 3317 OF OFFICIAL RECORDS OF ALAMEDA COU"lTY, PAGE 470; THENCE ALOI>JG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN liNES OF SAID LAST MENTlONED ''PARCEL 2", THE FIVE FOLLOWING COURSES AND DlSTANCES: SOUTH 21.15' Ep.sT, 37'\.91 FEET, MORE OR LESS; NORTH 71" 30' EAST, 24.618 FEET; SOUTH 21 n 'i 5' E/',8T, 39.60 FEET; NORTH 71.30'. EAST, 250.80 FEET AND NORTH 23. 15' WEn, 38.28 FEET, MORE OR LESS, TO THE SOUTHEASTERN LINE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL 1" IN S,A.1D LAST MENTIONED DEED~ THENCE ALONG THE LAST MHJTIONED LINE NORTH 63" 45' EAST, 202.62 fEET TO SAID SOUTHWESTERN UNE Of fOOTHILL ROAD; THENCE ALONG THE LAST MENTIONED LINE NORTH 25" 45' WEST, 325.39 FEET, MORE OR \...ESS, TO THE POINT OF BEGINNING, APN: 941-'\560-007-01 "7 2.. ~r "') --:;, ./ Ct.;!-" .;. ..- "') \......".- EXHIBIT "B" LEASES C:IDocuments and Settings\PDMILocal Settings\Temporary Internet Fiies\OLKIF6\960366_12.DOC -5- t- COwAMERCRA.l LEASE AND DEPOS&T RECEIVED FROM The sum of $ 825.00 evidenced by Check Jodv Rhone hereinafter referred to as LESSEE. Ei ht Hundred Twen Five*"'******************"*****,*****************k**************************************** dollars), ' , as a deposit which will belong to Lessor and will be applied as follows: TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY Rent for the period from September 1 to September 31. 2005 $ 400.00 $ $ 400.00 Security deposit (not applicable toward last month's rent) $ 400.QO $ $ 400.00 Other CAM, Taxes & Insurance $ 25.00 $ $ 25.00 TOTAL $ 825.00 $ $ 825.00 In the event this Lease is not accepted by the Lessor within~ days, the total deposit received will be refunded. Lessee offers to lease from Lessor the premises situated in the City of Dublin , County of Alameda State of California, described as the premises located at 11847 Dublin Blvd. Dublin. CA consisting of approximately 700 square feet, upon the following terms and conditions: 1. TERM. The term will commence on September 1.2005 and end on AUGust 31, 2008. 2. RENT. The totai ,ent will be $15,300.00 at 5; 425.00 per month (based on first year's rates) payable on the 1st day of each month. All rents wi!! be paid to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite 200. Danville, CA 94526 or at such other places as may 0S designated by Lessor from time to time. tn the event rent is not paid within ----2- days after due date, Lessee agrees to pay a fate charge of $ ...lliL.....Plus interest at -..!L % per annum on the delinquent amount. Lessee further agrees to pay $ ~for each dishonored bank check. The late charge period is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due. 3. USE. The premises are to be used for the operation of Barber Shop and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenant in the building. 4. USES PROHIBITED. Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permitted to be made upon the premises, nor acts done, which wltl increase the existing rate of insurance upon the property, or cause cancellation of insurance poficies covering the property. Lessee willnot conduct or permit any sale by auction on the premises. 5. ASSIGNMENT AND SUBLETTING. Lessee will not assign this Lease or sublet any portion of the premises without prior written consent .of the Lessor, which will not be unreasonably withheld. Any such assignment or subletting without consent will be void and at the option of the Lessor, will terminate this Lease. 6. ORDINANCES AND STATUTES. Lessee will comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities n8'N in force, or wilich may later be in force, regarding the use of the premises, The commencement or pendency of any state or federal court abatement proceeding affecting the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. 7. MAINTENANCE; REPAIRS, ALTERATIONS. Unless otherwise indicated, lessee acknowledges that the premises are in good order and repak. Lesses villi, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, eiectrical wiring, plumbing and heating and air, conditioning installations, and any other system or equipment. The premises will be surrengered, at telTllination of the Lease, in as good condition as received. normal wear and tear excepted. Lessee will be responsible for all repairs required, except the following which will be maintained by Lessor: roof, exterior wails, a.nd structural foundations (including any retrofitting required by governmental authorities) and: Lessee 0wiil, r=rwill not maintain the property adjacent to the premises, such as sidewalks, driveways, lawns, and shrubbery, which would otherwise be maintdin'e.i by Lessor. No improvement or alteration of the premises will be made without the prior written consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, Lessee will give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability for Ilens. 8. ENTRY AND INSPECTiON. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon masonable notice for ths purpose of inspecting the premises, and wili permit Lessor, at any time within sixty (GO) days prior to the expiration of this Lease, to place upon the premiss" emy usual "For Lease" signs, and pemlit persons desiring to Lease the premises to inspect the premises at reasonable times. 9. INDEMNIFICATION OF lESSOR. Lessor will not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on th,,, premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to indemnify lessor for any expense incurred by Lessor in defending any such claim". - . 1 O. POSSESSION. If Lessor is unable to deliver possession of the premises at the commencement date set forth above, Lessor will not be liable for any damage caused by the delay, nor will this Lease be void or avoidable, but Lessee wiil not be liable for any rent until possession is delivered. lessee may le,m!n~"t0 this Lease if possession is not delivered within ~ days of the commencement term in Item 1. 11.. LESSEE'S INSUlRA.NCE. Lessee, at his or her expense, will maintain piate glass, public liability, and property damage insurance insuring lessee c:nd Lessor with minimum coverage as follows: 1 Million Dollars General Uabilitv Lessee will provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The policy will require ten (10) day's written notice to Le~:'";'Jr prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. Lessor wlll maintain hazard insurance covering one hundred percent (100%) actual cash value cf the improvements through",'..:!. the Lease term. Lessor's insurance will not insure Lessee's personal property, Leasehold improvements, or trade fixtures. 13. SUI3ROGf", TiON. To the maximum extent permitted by insurance policies which maybe owned by the parties, Lessor am! Lessee waive any and "Ii rights of subrogation which might otherwise exist. 14. UT<<;..gTIES. Lessee agrees that he or she will be responsible for the payment of all utiiities, including watH, gas, electricity, heat and other serviG8~' "'o:;"c;'c,; to the p reIn ises 1 exce pi: ::~~***********.. ****"'"k*****"", 'I< **********'i<:*********"** *******************'k*******************'**********'****************" ""*** _ i 5, SiGNS. Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of the premises without the express wri\:<':r1 consent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 16. AR.ANf.lOI\\lME:.J:T er- PREMISES. Lessee will not vacate or abanjon the premises at any time durin,] the term of this Lease. If Lessee does ab8".1or: vacate the premises, or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee .left on the premises will be deemedu be abandoned, at the option of Lessor. F';?;.'J.c i f'-,' 3 ,..:.. v r Property Address 11847 Dublin Blvd. ....._..Ilin, CA <:::ONDEMNATION. If any part of the premises is condemned for public use, and a part remains which is susceptible of occupation by Lessee, this Lease (s to the part taken, terminate as of the date the condemnor acquires possession. Lessee will be required to pay such proportion of the rent for the remaininC' lc., ,,1 as the value of the premises remaining bears to the total value of the premises at the date of condemnation; provided, however, that either party may, at hisO or her option, terminate this Lease as of the date the condemnor acquires possession. In the event that the premises are condemned in whole, or the remainder is not susceptible for use by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee will be entitled to retain any amount awarded to him or her for his or her trade fixtures and moving expenses. '16. TRADE FIXTURES. Any and all improvements made to the premises during the term win belong to the Lessor, except trade fixtures of the Lessee. Lesse:? may, upon termination, remove all his or her trade fixtures, but will pay for all costs necessary to repair any damage to the premises occasioned by the removal. 19. /DESTRUCTION OF PREMISES. In the event of a partial destruction of the premises during the term, from any cause except acts or omission of Lessee, Lessor will not promptly repair the premises. Such partial destruction will tenninate this Lease. 20. HAZARDOUS MA TERlA!..S. Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of such substances that are customarily used in Lessee's b:1Siness, and are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or toxic materials regulated under any environmental laws or regulations applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by Lessee's use of the premises. 21. INSOt.. VENey. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee, wii: constitute a breach of this Lease by Lessee, 22. DEFAULT. In the event of any breach of this Lease by Lessee, Lessor may, at his or her option, terminate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (b) the worth at the time of mvard of the amount by which the unpaid rent which would have been €lamed after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for an the detriment proximately caused by the Lessee's failure to perfonn his or her obligations under the Lease or which in the ordinary course of things would be likely to resu!l therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce all of Lessor's rights and remedies under the Lease, including t!le right to recover the rent as it becomes due under the Lease. If said breach of Lease continues, LE'SSO,' may, at any time thereafter, elect to terminate the Lease. These provisions will not limit any other rights or remedies \'llhich Lessor may have. 23. SECURITY. The security deposit will secure the performance of the Lessee's obligations. Lessor may, but will not be obligated to, apply all or portions oftha deposit on account of Lessee's obligations. Any balance remaining upon termination will be retumed to Lessee. Lessee will not have the right to apply the securi':y deposit in payment of the last month's rent. 24. DEPOSIT REFUNDS. The balance of all deposits will be refunded within three (3) weeks (or as otherwise required by law), from date possession is delivered to Lessor or'pis or her authorized agent, together with a statement showing any charges made against the deposits by Lessor. .ATTORNEY FEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevailing party will be entitled 3sonable attorney fees. :<::'0. WAIVER. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NOTiCES. Any notice which either party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the premises, c:r to L,essor at the address~hown in Item 2, or at such other places as may be designated in writing by the parties from time to time. Notice will be effective five (5j days after mailing, don personal delivery, or when receipt is acknowledged in writing. 28. HOL-DiNC OVER. Any holding over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent of $ 750.00 , payable in advance and othei\vise subject to the terms of this Lease, as applicable, until either party will terminate the tenancy by giving lh(; other party thirty (30) days written notice. 29. TIME. Time is of the essence of this Lease. 30. HEIRS, ASSIGNS, SUCCESSORS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 31. '.AX aNCREASE.ln the event there is any increase during any year ofthe term of this Lease in real estate taxes over and above the amount of such taxes assessed for the tax year during which the tennof thl,' Lease commences, Lessee will pay to Lessor an amount equal to 100 % of the increase in taxes upon the land and building in which the leased premises are situated. In the event that such taxes are assessed for a tax year extending beyond the term of the Lease, the obligation of Lessee will be prorated. 32. COST Of LIVING INCREASE. The rent provided for in Item 2 will be adjusted effective upon the first day of the .month immediately following the expiration of 12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter. in accordance with changes In the U.:3. Consumer Price Index for All Urban Consumers (1982-84 ::: 100) ("CPI"). The monthly rent will be increased to an amount equal to the monthly rent set forth In Item 2, multiplied by a fraction the numerator of which is the CPI for the second calendar month Immediately preceding the adjustment date, and the denomim,'t.:;r of which is the CPI for the second calendar month preceding the commencement of the Lease term; provided, however, that the monthly rent will not be less than the amount set forth in Item 2. 33. Intentionally Left Blank. 34. AMERICANS WiTH DISABit..rnES ACT. The parties are alerted to the existence of the Americans with Disabilities Act, which may require costly structural modifications. The parties are advised to consult \A1th a professional familiar with the requirements of the Act. 35. LESSOIP..'S IIA21li,.ITY. In the event of a transfer of Lessor's title or interest to the property during the term of this Lease, Lessee agrees that the grantee oi such title or interest will be substituted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided. that ali deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee If/ill execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that thi" Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full forer' and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any, and (2] acknowledging that tl,ere 21'8 not, to Lessee's knowledge. any uncured defaults on the part of Lessor, or specifying such defaults if any are claimed. Any such statement may be conclusive;y "'ld upon by any prospective buyer or encumbrancer of the premises. ) At Lessor's option, Lessee's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: ['1 J Jt this Lease is in full force and effect, without modification except as may be represented by Lessor; [2] that there are no uncured defaults in Lessor's performance; and [3J that not more than one month's rent has been paid in advance. (e) If Lessor desires to finance, refinance, or sell the premises, or any part thereof, Lessee agrees to deliver to any iender or buyer designated by Lesser e,lJc!, financial statements of Lessee as may be reasonably required by slIch lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only fOl' the purposes set forth. PJ.rle ;? I..,,~ :5 Property Address 11847 Dublin Blvd. L. _Jlin. CA 37. ENTIRE AGREEMENT. The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties. The following are a part of this Lease: The undersigned Lessee acknowledges that neo 01" she has thoroughly read and approved each of the provisions contained in this Offer, and agrees to t.he terms and conditions specified. l~'OO~0 ~ O,te 9-7--6) Le~oo 0", Receipt for deposit acknowledged by Date ACCEPTANCE The undersigned L.essor accepts the foregoing Offer a!;lCi agrees to Lease the premises en the terms and conditions set forth lOllbo\n,,', 1,1l!^ ilL }/ '/ () i ~ V PVVtUJJt/vV' Lessor Date crl'j/1r ( , Lessee acknowledges receipt of a copy of the accepted Lease on (date) [-------1 L-J (initials) . P:<;" ,;. r;'-i c-' f EXHIBIT A Lessee agrees that should Lessee rent out or sublet another chair, or otherwise receives income from any source whatsoever that 25% of said income shall be paid to Landlord as additional rent. Lessee further agrees that all barber chairs shall become the property of Berkeley Land Co., Inc. upon Lease termination. " ~~62J~ Jod. one . 9-7-os- Date I ~_. :>1 I'';'l- <"} r.... ......-f .:::1"6 'U!--) \."".J COMMER.CIAL l.EASE AND DEPOSiT RECEIVED FROM The sum of $ 6,800.00 will be applied as follows: Simin Lalefar and Hennin Latefar Sixty EiQht Hundred and no/100 dollars), evidenced by Check hereinafter referred to as LESSE=:, . as a deposit which will belong to Lessor an::'; TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY R(:mt for the period from March 1 to March 31. 2007 $ 6.800.00 $ $ 6,800.00 Security deposit (not applicable toward last month's rent) $ $ $ Other $ $ $ TOTAL $ 6,800.00 $ $ 6.800.00 In the event this Lease is not accepted by the Lessor within-1Q........ days, the total deposit received will be refunded. Lessee offers to Lease from Lessor the premises situated in the City of Dublin , County of Alameda State of California, described as the premises located at 11837 Dublin Blvd, Dublin. CA consisting of approximateiy 6,800 square feet, upon the following tenns and conditions: 1. TERM. The term will commence on December 1. 2006 and end on November 3D, 2009. 2. RENT. The total rent will be $224.400.00. Rent for the first three months will be free to the Lessee. ,Rent will be at$ 6,800.00 per month payable on th3 1st day of each month. All rents will be paid to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite 200. Danvilb.s;/), 94526 or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within -2- days after due date, Lessee agrelh m pay a late charge of $ ~lus interest at--!L% per annum on the delinquent amount. Lessee further agrees to pay $ ~for each dishonored ~mni: check. The late charge periOd is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due. 3. USE. The premises are to be used for the operation of Home Furnishino Store and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenantin the building. 4. USESPROHIEnTE~. Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permItted to be rrmde upon the premises, nor acts done, which will increase the existing .rate of insurance upon the property, or cause cancellation of insurance policies covering tne property, Lessee will not conduct or permit any sale by auction on the premises. 5. ASS!GNMENT AND SUBLETTING. Lessee will not assign this Lease or subiet any portion of the premises without prior written consent of the Lessor, which wm not be unreasonably withheld. Any such assignment or subietting without consent will be void and at the option of the Lessor, will terminate this Leas'~, 6. ORDiNANCES AND STATUTES. Lessee wm comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities :1UW i:, force, or which may later be in force, regarding the use of the oremises. The commencement or pendency of any state or federal court abatemc'nt proceeding affecting the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. 7. MAiNl'ENANCE, REPAIRS, .All.. TERA TIO!'~S. Unless othelWise indicated, Lessee acknowledges that the prem\ses are in good order and repair. L.eS3&3 will, at his or her own expense, maintain the premises In a good and safe condition, including plate glass, electrical wiring, plumbing and heating and air " eonditloning installations, and any other system or equipment. The premises will be surrendered, at termInation of the Lease, In as good condition as recei\'cd, normal wear and tear excepted. Lessee will be responsible for ali repairs required, except the fonowing which will be maintained by Lessor: roof, exterior wa.Us, "r<j strIJctural foundations (including any retrofitting required by govemmental authorities) and: -............... ,--- Lessee&m, Owill not maintain the property adjacent to the premises, such as sidewalks, driveways, lawns, and shrubbery, Which would othelWise be maintaincQ by Lessor. No improvement or alteration of the premises will be made v:ithout the prior written consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, lessee will give Lessor at least two (2) days written notice in order that Lessor may post appropriate noticE;s to avoid any liability for iiens. 8. ENTRY AND lNiSi!"5CT!ON. Lessee will permit Lessor or Lessor's agents tb enter the premises at reasonable times and upon reasonable notice fa:- the" purpose of inspecting the premises, and will pen-nit Lessor, at any time within sixty (50) days prior to the expiration of this Lease, to place upon the prerniGe:, 8';,Y usual "For Lease" signs, and permit persons deSiring to Lease the premises to inspect the premises at reasonable times. 9. INiDEMf.!lF!CATION OiF!..ESSOR. Lessor will not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring or1 the premises. Lessee agrees to hold Lessor hannless from any claims for damages arising out of Lessee's use of the premises, and to indemnify Lessor for an:! expense incurred by Lessor in defending any suCh claims. 'I C. POSSESSION. If Lessor is unable to deliver possession .of the premises at the commencement date set forth above, Lessor will not be liable for any damage caused by the delay, nor will this Lease be void or avoidable, but Lessee will not be liable for any rent until possession is de!lvered. Lessee may tGrrni:icil0 this Lease if possession is not delivered within -L days of the commencement term in Item 1, 11. t.ESSEE'S INSURANCE. Lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee gr..;' Lessor with minimum coverage as follo'.'.'5: 1 ':\1i1iion Dollars General liability . Lessee will provide Lessor with a Certificate of insurance showing Lessor as additional insured. The policy will require ten (10) day's written notice to Lf).;3C;;" prior .to cancellation or material change of coverage. 12, LESSOR'S U.lSURANiCE. Lessor wl!i maintain hazard insurance covering one hundred percent (100%) actual cash value of the improvements throuQi",.", the Lease term. .Lessor's Insurance will not insure Lessee's personal property, Leasehold improvements, or trade fixtures. '\13. SUla:ROGA=nO~. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and at: rig:-\;,~ of subrogation which might otherwise exist. 14. UTil..rrUE:S. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat and other services de;;'.' , to. the prem ises t except: ***~~****':Jr**'******* ''-******''kf'*****'k*************'Ir*******'*******'''ir**************************~******,***"**\"*************************' . 15. :r:m:;;wlS. Lessee wlli not place, maintain, nor permit any sign or awning on any exterior dOOf, wall, or window of the premises without the express w:'rttu: consent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 11 6" ABANDOI\!MEi\J!T OF PREM~SES. Lessee wili not vacate or abandon the premises at any time during tile term of this Lease. If Lessee does ah::1iir1of, G7 vacate the premises, or is dispossessed by process of iaw, or otherwise, any persona! property belonging to Lessee left on the premises will be deemed tv [;i" abandoned, at the option of Lessor. F's~,c)(:: 1 af ') .' '" , ! ~. Lf Property Address 11837 Dublin Blvd. DUl.1lIn. CA Exhibit A Floor Plan r r---J 1 I!j Ii _~, I t! f' h ~ ~ ; r-!, i. \. MI ) ~l 'i '~If; ! 1 : \V, I .t ./ ~ lk ' !. .1 II ) f . n.. I J~, .I~ -!I fl 1./ i~ \ t .If} ~ r-':_i_: l ~ I . -- - -- -"'-. .___L: --- ! i L'( j..."'" ~ ti , ./ d".".) .,... t r:, f. 1 I:' ~A t. 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CA Exhibit B Option to Extend Term Tenant shall have the right and option to extend the term of this Lease for one additional period of three years commencing on expiration of the Origin8-: TeF'n specified in ExhibitB of this Lease (the "Option to Extend Term") provided: (a) Tenant has fully and faithfully performed all the terms, covenan1s, and conditions of this Lease for the Original Term specified in item 1 of this Lease, and the Tenant is not in default either at the time of exercise of the option or at the close of the Original Teml of the Lease. (b) Written notice of Tenant's e!e::tion to renew the term of this Lei;lse is delivered by Tenant to Landlord at least 180 days before expiration ui the Original Term specified in Item 1 of this Lease. (c) The renewed term of this Lease shall be subject to the same terms and conditions as are contained in this Lease, except that the amount of rent payable under this Lease for the renewed terms shall be adjusted based on Consumer Price Index, which shall be determined in accordance W;:i Item 32 of this Lease. " , . " or; SHOPPING CENTER LEASE Between BERKELEY LAND COMPANY, INC. a California Corporation, Landlord and CHEF'S TOUCH CATERING Tenant Dated: 1'/2.~hf " , !~ I:>~. ARTICLE 1. 1.0 I. 1.02. 1.03. ARTICLE 2. 2.01. 2.02. . ARTICLE 3. 3.01. ARTICLE 4. 4.01. 4.02. 4.03. 4.04. 4.05. 4.06. i\RTICLE 5. 5.01. 5.02. 5.03. 5.04. .ARTICLE 6. 6.0l. 6.02. 6.03. 6.04. 6.05. t.06. /} i~ SHOPPING CEt-TTER LEASE Table of Contents LEASED PREMISES Agreement to Lease "Premises" Defined Right to Use Common Areas TENANT'S BUSINESS USE A..ND NAME Permitted Business Use Tenant's Business Name TERM OF LEASE Commencement Date and Term RENT l\ND OTHER CHARGES Initial Minimum Monthly Rent Common Area Maintenance Costs Utility Services and Charges Taxes Additional Rent Late Charges IvLA INTENANCE ..AND USE OF COMMON AREAS Maintenance and Control "Cornman Areas" Defined Tenant's Right to Use Tenant and Employee Parking CONSTRUCTION f\ND REP AIR.S Condition of Premises Alterations and Improvements by Tenant Tenant's Construction Alterations and Improvements by Landlord Repairs to Premises Ovvnersmp of Improvements ., , 0 Lit ARTICLE 7. 7.0l. 7.02. 7.03. 7.04. 7.05. 7.06. ARTICLE 8. 8.01. 8.02. 8.03. 8.04. 8.05. 8.06. 8.07. 8.08. ARTICLE 9. 9.0l. 9.02. 9.03. 9.04. 9.05. ARTICLE 10. 10.0l. 10.02. 10.03 AR TrCLE 11. 11.0l. 11.02. 11.03. 11.04. 11.05. , I Lf DESTRUCTION OF PREMISES OR SHOPPING CENTER Notice of Damage Damage or Destruction From Insured Casualty Right to Terminate Lease Abatement of Rent Obligations for Repair or Rebuilding Payment of Insurance Proceeds USE OF PREMISES Storage'" Condition of Premises Prohibited Actions Compliance With Laws Signs and Advertising Rules and Regulations Assignment and Sublease Covenant of Continuous Business Operation JNSURAl~CE Insurance by Landlord Insurance by Tenant Subrogation Waiver Proceeds Indem.T1.ification SUBORDINATION, ATTORNMENT, AND ESTOPPEL CERTIFICATES Subordination Attornment Estoppel Certificates CONDE1vlNATION Termination of Lease Continuation 0 fLease Option to Tenninate Lea..'le Condemnation Award Waiver 11 " I .~ ~ ARTICLE 12. 12.0l. 12.02. 12.03. 12.04. 12.05. 12.06. 12.07. 12.08. 12.09. 12.10. ARTICLE 13. 13.01. . 13.02. 13.03. 13.04. 13.05. 13.06. 13.07. 13.08. 13.09. 13.10. 13.1l. 13.12. 13.13. 13.14. 13.15. 13.16. 13.17. 'r' vJ> DEFAULT AND TERMINATION "Default" Defined Termination of Lease and Recovery of Damages Landlord's Right to Continue Lease in Effect Landlord's Right to Relet Landlord's Right to Cure Tenant Defaults Cumulative Remedies ..... Waiver of Breach Surrender on Termination Holdover Tenancy Attorneys' Fees MISCELLANEOUS No Personal Liability of Landlord Landlord's Operating Agreements With Others Other Covenants of Continuous Operation Removal of Hazardous Materials Landlord-Tenant Relationship Landlord's Right of Entry Brokerage Commissions Interest on Obligations Notices Binding on Heirs and Successors Time of Essence Sole and Only Agreement Exhibits Invalidity or Unenforceability Waivers Captions Reports by Tenants m " , . . Ul.?J1 . .'7:.<:i~1 lr 0 (,/irf<"""' \. SHOPPING CENTER LEASE This Lease is entered into effective , by and between Berkeley Land Company, Inc., a California Corporation ("Landlord") and Chefs Touch Catering ("Tenant"). ARTICLE 1. LEASED PREMISES Agreement to Lease Section 1.01. In consideration of the agreements and covenants contained in this Lease to be kept andperfonned by both Landlord and Tenant, Landlord leases to Tenant and Tenant leases from Landlord the Premises described in Section 1.02 of this Lease. "Premises" Defined Section 1.02. "Premises" means the retail store space that is located at 11851 Dublin Blvd, Dublin, California, consisting of approximately 5,630 square feet on the ground floor of the Dublin Square Shopping Center, as is more particularly described on Exhibit A attached hereto. "Premises" does not include, and Tenant has no right in, the land or improvements below the floor slab of the PremisesGY above the interior ceilings of the Premises. Right to Use Common Areas Section 1.03. Tenant has the nonexclusive right to use, in common \vith others, the Common Areas of the Shopping Center. The term "Common Areas" is defined in Section 5.02 of this Lease. ARTICLE 2. TENANT'S BUSINESS USE AND NM1E Permitted Business Use Section 2.01. Tenant is leasing the Premises to operate and conduct the following business: Food Catering. Tenant may not use the Premises or permit the Premises to be used for any other purpose. Landlord does not represent or warrant that Tenant's permitted business use is presently permitted or will be permitted in the future by applicable laws and regulations. Tenant's Business Name Section 2.02. The name of the Tenant's busine:;s is Chef's Touch Catering. Tenant may not change its business name during the term of tbis Lease without the written consent of Landlord. If Landlord consents to a change in the name, Tenantshall be solely responsible for all costs of changing the name, includb.g costs of changing the name as it appears in any signs of the Shopping Center, if any. 1 , . ARTICLE 3. TERM OF LEASE Commencement Date . Section 3.01. The Commencement Date shall he Octoher 1, 1998. ARTICLE 4. RENT AND OTHER CHARGES Initial Minimum Monthly Rent Section 4.01. Tenant agrees to pay Minimum Monthly Rent in the amount of$500.00 per month for its use and occupancy of the premises. Minimum Monthly Rent shall be payable in advance on the first day of each calendar month without notice, set off or deduction. lithe Term begins (or ends) on other that the first (or the last day) ofa calendar month, the Minimum Monthly Rent for the partial month shall be prorated on a daily basis, based on a 3D-day month. Tenant shall pay Landlord the first installment of Minimum Monthly Rent when Tenant executes this Lease. Rental amounts shall be as follows: 1. Rent shall be $500.00 per month beginning October 1, 1998, and will end on the earlier of Tenant obtaining all proper permits for occupancy or January 31, 1999. 2. Rent shall be $1,000.00 per month for the next three months upon the expiration of item #1 above. 3. Rent shall be increased to $2,000.00 per month upon the expiration of item #2 above and shall continue each and every month thereafter. Common Area Maintenance Cost., Section 4.02.(a) Tenant shall pay to Landlord, as additional rent a proportionate share of Common Area Maintenance Costs (defined below). For each lease year, Tenant's proportionate share of these costs shall be a sum equal to the product obtained by multip lying (1) the total Common Area Maintenance Costs for the lease year by (2) a fraction, the numerator of which is the number of square feet of gross grolL.'1d floor area of the Premises, and the denominator of which is the number of total square feet of gross rentable ground floor area of all areas in the Shopping Center O\vned by Landlord that are available for the exclusive use and occupancy of Tenants of the Landlord. (b) Tenant shall pay its proportionate share of Common Area Maintenance Costs in the arnOlli'1t detennined and billed by Landlord quarterly; provided, however, Landlord may in its discretion bill more or less frequently than quarterly. Payment shall be due within 10 days of delivery afthe bin for such charges. The fu'110unt billed to Tenant shall be based on Landlord's estimate of COITL.'11on Area Maintenance Costs for the current calendar year. That estimate shall not exceed by more than 20 percent the total Common Area Maintenance Costs for t11t: immediately preceding calendar year. V\Tithin 90 days after the end of each calendar year, 'f ... " '" Landlord shall deliver to Tenant an itemized statement of the total Common .Area Maintenance Costs ror the preceding calendar year. If the statement discloses an underpayment by Tenant for the calendar year covered by the statement Tenant shall pay Landlord the amount of the underpayment within 30 days from the date of the statement. lfthe statement disclosed an overpayment by Tenant, Landlord shall pay to Tenant the amount of the overpayment within 30 days from the date of the statement; provided, however, that if Tenant is then in default or otherwise indebted to Landlord under this Lease, Landlord may deduct the amount owed it from the overpayment Landlord agrees that the common area maintenance charges together with the taxes and insurance will be limited to $300.00 per quarter, or $1,200.00 on an annual basis. (c) "Common Area Maintenance Costs" means the cost and expense of managing, operating, and maintaining the COmrrlon Areas (defined in Section 5.02) in a manner deemed reasonable and appropriate by Landlord, including but not limited to all costs and expenses of or relating to the following: operating, heating, cooling, ventilating, repairing, cleaning, replacing, lighting, painting, and maintaining the Common Areas; security services for the Shopping Center; the insurances described in Section 9.01 of this Lease; regulation of traffic; repairing and replacing paved surfaces, roofs, landscaping, drainage, electrical lines, all on-site personnel used for the management, operation, and maintenance of the Shopping Center; vehicles and other equipment used for the management, operation, and maintenance of the Shopping Center; depreciation of machinery, equipment, and other non-real estate assets used in the maintenance and.operation of the Shopping Center; and measures undertaken by Landlord to comply with any environmental or similar law, ordinance, or regulation, including the removal of any hazardous substance from the Shopping Center. Further, "Common Area Maintena..'1ce Costs" shall include a management fee paid to Landlord or to a management company employed by Landlord and equal)o fifteen percent (15%) of the total Common Area Maintenance Costs. Utility Services and Charges Section4.03.(a) Except for utility services as may be provided by Landlord pursuant to Subparagraph (b) of this Section, Tenant shall apply to the appropriate local utility companies for service on the premises, and shall pay the cost of any required deposit, hook-up fee, metering charge, or other charge by the utility provider. Throughout the tenn oftms Lease, Tenant shall pay, prior to delinquency, the cost of all utilities used on the Premises, whether supplied by a local utility company or Landlord. When any service is separately metered and supplied by a local utility company, Tenant shall arrange for the utility company to bill Tenant directly. In the case of any utility services provided by Landlord directly to Tenant, Landlord shall bill Tenant for those services quarterly or at other intervals at the same time Landlord bills Tenant for its proportionate share of Common Area Maintena.."'1ce Costs, and Tenant shall pay the bill for those services at the same time Tenant pays its share of Common Area Maintenance Costs. Fur utility services provided by Landlord that are not separately metered and that are used by Tenant in common with otber Tenants, Tenant shall pay Landlord a proportionate share based on total square footage of gross ground floor area of all Tenants uFing the common utility services. (b) Landlord may elect at any time during the term or this Lease, but without any obligation to do so, to fu.rnish, or to select an agent or independent contractor to furnish, at. ':( oJ " " Tenant's expense,any utility or utilities to the Premises. In that case, Tenant agrees to accept the furnished utility services to the exclusion of any other provider, provided the charge to Tenant for the furnished service is competitive with other providers or has been approved by the appropriate regulatory agency. To the extent Landlord may-furnish any utility service to Tenant, Tenant shall pay to the Landlord or as Landlord may direct, all costs and expenses associated with such service including, but not limited to, connecting or disconnecting fees and all costs and fees for the service consumed or provided to Tenant or the Premises. On at least 30 days' prior written notice to Tenant, Landlord may discontinue furnishing any utility service previously provided to Tenant. In that event, Tenant shall be responsible for obtaining replacement service for the Premises from a provider acceptable to Landlord. Landlord has no responsibility for the curtailment or suspension of any utility services to the Premises provided by a: local utility company, or as may be furnished by Landlord regardless of the reason for curtailment or suspension. Curtailment or suspension of utility services does not constitute a constructive eviction under this Lease. Taxes Section 4.04.(a) Landlord shall pay all Taxes (defined below) that may be levied or assessed against the lalld, buildings, or other improvements in the Shopping Center; provided, however, that Tenant shall pay a proportionate share of Taxes as provided in this Section. "Taxes" means any real property taxes, assessments, and other levies or charges imposed by a governmental entity that are or may be levied., assessed, imposed, become a lien on, or arise in connection with the use, occupancy, or possession of all or any portion of the Shopping Center or t.rre land, buildings, or other improvements in the Shopping Center and including the Common Areas. Notwithstanding the foregoing, "Taxes" do not include any inheritance, estate, succession, transfer, gift, franchise, corporation, income, or profit tax that is or may be levied or imposed on Landlord. Landlord also agrees to limit the t2..xes due to an overall limitation as described in Section 4.02(b). (b) Tenant's annual share of Taxes for each Tax Year (defined below) in the Original Term and the extended term of the Lease shall be a sum equal to the product obtained by mu1tiplying the total amount of all Taxes payable dlli-ing a Tax Year by a fraction, the numerator of which is a nurnb~r equal to the total square feet of gross ground floor area i~ the Premises, and the denominator of which is a number equal to the total square feet of rentable ground gross floor area m the Shopping Center o-wned by Landlord designed exclusively for the use and occupancy of Tenants that is open for business on the first day of the Tax Year (which does not include COIT'..nJ.on Areas). Tenant's annual share of Taxes shall be paid in advance on a quarterly basis in equal installments or upon such other intervals a..YJ.d in pro-rata installments based on the length or the billing period as Landlord may determine and in the amount billed by Landlbrd~ concurrently \vith Tena..'1t's payment of COJr...monArea Maintenance Charges under this Lease. At Landlord's option, L3J"1dlord may estimate the amount of Tenant's quarterly or other periodic share of Taxes, provided the estimate does not exceed by more thc"n 10 percent the actual amOllllt of Taxes for the same caiencrr period in the immediately preceding Tax Year. An official tax bill or copy of the tax bill shall be conclusive evidence of any amount taxed or levied. No later than March 31 of each Tax Year, Landlord shall present T ena.l1t with a written statement for the preceding Tax Year, showing the total Taxes, the amolmt of Taxes actl.lally paid by Tenant for that Tax Year, 4 " and the amount of any underpayment or overpayment for that Tax Year ("Annual Tax Statement"). Tenant shall pay the amount of any underpayment to Landlord within 30 days after the date of the p..nD.ual Tax Statement. In the case of an overpayment, Landlord shall refund the amount ofthe overpayment to Tenant within the same 30-day period governing underpayments; provided, however, that if Tenant is then in default under this Lease or othel"\Vise indebted to Landlord, Landlord may deduct the amount owed to it from the overpayment. (c) "Tax Year" means the 12 full calendar months ofthe term beginning on January 1 immediately following the Commencement Date a.."1d ending on December 31 of that same calendar year, and each successive 12-month period in the Original Term of this Lease and any extended term; provided, however, that the first Tax Year under this Lease shall begin on the Commencement Date and shall end on December 31 of the same calendar year. When the Commencement Date is a date other than January 1 or when this Lease terminates on a date other than December 31, Tenant's proportionate share of Taxes for either year, as the case may be, shall be equitably prorated. (d) Tenant shall not and shall have no right to contest the amount of any Tax assessed or levied or the underlying valuation giving rise to the Tax for purposes of obtaining a Tax reduction or for any other purpose. If Landlord obtains a refund of Taxes previously paid for a Tax Year and for which Tenant has fully paid its proportionate share, Landlord shall refund to Tenant its net proportionate share after first deducting all costs and expenses incurred by Landlord:in obtaining the refund, includL."1g attorneys' and appraisers' fees. Landlord shall have no duty to contest the amount of any Taxes imposed or levied on the Shopping Center. Additional Rent Section 4.05. In addition to the Fixed Rent payable by Tenant under this Lease, any other monetary sum required under this Lease to be paid by Tenant to Landlord or to others is deemed under this Lease to be additional rent payable by Tenant under this Lease ("Additional Rent"), whether or not the monetary sum is so designated as Additional Rent. Unless otherwise provided, all Additional Rent is due and payable at the same time as Fixed Rent, and Landlord has the same remedies for Tenant's failure to pay Additional Rent as it has for Tenant's failure to pay Fixed Rent. . Late Charges Section 4.06. Tenant aclr.nowledges that the late payment by Tenant to Landlord of rent or any Additional Rent or other sums due hereunder will cause Landlord to incur costs not contemplated in this Lease, the exact amount ofwruch will be extremely difficult and impracticable to ascertain. Such costs include, but are not lL."TIited to, processing, administrative and accounting costs. Accordingly, if any installment of rent or any additional rent of any other sorne due from Tenant shall not be received by Landlord with.i...'1 ten (10) days after such amount shall be due, Tenant shall pay to Landlord a late charge equal to five percent (5%) of the delinquent amount. On no more than one (1) occasion during each twelve (12) months, Tenant shall be entitled to notice of delinquency and a five (5) day grace period before any late charge is imposed. The parties hereby agree that such late charges represent a fair and reasonable estimate 5 " . <tl (;.~ of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tena...."1t's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted under this Lease. ARTICLE 5. lV.i..AINTENANCE AND USE OF COMMON AREAS Maintenance and Control Section 5.01. All Common Areas (defined in Paragraph 5.02 of this Lease) of the Shopping Center owned by Landlord are subject to the exclusive control of Landlord. Landlord shall construct, maintain, operate, illuminate, and manage the Common Areas in a manner determined appropriate by Landlord in its sole discretion. Landlord reserves the right from time to time during the term of this Lease to (1) reduce or change the number, type, size, location, and use of any facilities in the Common Areas; (2) construct new improvements, buildings, Or facilities; or (3) remove existing improvements, buildi.ngs, or facilities in the Common Areas, provided the change, construction, or removal does not permanently and umeasonably interfere with Tenant's ingress and egress to the Premises. Landlord may employ and discharge all persoIlllcl hired in connection with the Common Areas; police, and maintain security services for, the Common Areas; use and allow others to use the Common Areas for any purpose; regulate parking by Tenants and other occupants (including their respective employees) and by customers of the Shopping Center; establish, modify, and enforce rules and re..gulations for the COlThllOn Areas; and close the Common Areas when necessary to make repairs, changes, or alterations to the Common l\reas or to prevent the acquisition of public rights in the COITL.'1lon Areas. In the event of a cemporary closure of the Common Areas or the alteration, rearrangement, or other change in the facilities of the Common.A..reas (1) Landlord shall not be liable to Tenant for any resulting loss or damage; (2) Tenant shall not be entitled to any abatement of rent or other compensation; and (3) the closure, alteration, rearrangement, or other change shall not constitute an actual or constructive eviction of Tenant or other grounds for Tenant to terminate this Lease. "Common Areas" Defined Section 5.02. "Corr..mol1 iIJeas" means all areas, facilities, space, equipment, and signs made available by Landlord at any time for the common a..'1djoint use and benefit of Landlord, Tenant, and other tenants and occupants of the portion ofthe Shopping Center o\VD.ed by Landlord, including their respective employees, agents, customers, and invitees. "Common Areas" includes the following, to the extent provided by La..idlord: parking areas, driveways, access roads, landscaped areas, truck serviceways, loading facilities, pedestrian malls, stairs, ramps, sidewalks, public restrooms, and elevators. The rights granted to Tenant to use the Common Areas apply only to COl11...TJ:lon Pueas owned by Landlord. 6 , , Tenant's Right to Use Section 5.03. For the term of this Lease, Landlord grants Tenant and its employees, agents, customers and invitees, the non-exclusive right, in common with Landlord and all others to whom Landlord has or may grant the right, to use the Common Areas, subject to Tenant's compliance with any rules and regulations enacted or modified by Landlord that govem the use of the Common Areas. Tenant agrees to abide by and to use its best efforts to cause its employees, agents, customers, and invitees to abide by Landlord's rules and regulations for the Common Areas. Attached hereto as Exhibit C isa copy of Landlord's current Rules, if any. Tenant and Employee Parking ;. Section 5.04. Tenant and its employees shall park only in those areas that are designated by Landlord as employee parking areas. Further, Landlord may limit the number and parking location of delivery trucks or vans or other business vehicles of Tenant which are at any time in the parking lot or other Common Area of the Shopping Center. Tenant shall at an times during the term of this Lease keep Landlord furnished with a current list of license pla.te numbers for the vehicles of Ten ant and its employees. Landlord may charge Tenant $10 per day per car for each violation of this Section after giving Tenant written notice of the violation. .4RTICLE 6. CONSTRUCTION AND REPAIRS Condition of Premises ?Section 6.01. Tenant has inspected the Premises and accepts it in its "as is" condition. Landlord makes no representations or warranties regarding the condition of the Premises, and Tenant aclG10wledges that neither Landlord nor Landlord's agent has made any representations to Tenant regarding the present or future condition of the Premises. Alterations and Improvements by Tenant Section 6.02. Tenant may not make any alterations or improvements to the Premises during the term of this Lease without first obtaining the written consent ofLartdlord. Landlord's consent to any such alterations or improvements shall not be unreasonably withheld. Any alterations or improvements approved by Landlord shall be performed pursuant to plans and specifications previously approved by Landlord for the specific alterations or improvements, shall not in any way interfere with the normal business operation of Tenant or t~e Shopping Center, and in all respects shan comply with the requirements for Tenant's Work described in . Section 6.03 ohms Lease. Tenant's Construction Section 6.03.(a) At its sole cost and expense, Tenant shall commence and complete consL'!'llction of all improvements or alterations to the Premises that are necessary for the conduct of Tenant'5 business on the Premises ("Tenant's W ark"). All Tenant's Wark must be performed '7 I //' (5 " 'f; in strict accordance with the following: plans and specifications prepared by Tenant and approved in writing by Landlord; and all other provisions of this Lease. (b) If Tenant wishes to perform any alterations, Tenant shall submit two sets of plans and specifications for Tenant's Work ("the Plans") to Landlord for Landlord's approval. Landlord's approval shall not be unreasonably withheld. Within 30 days after Landlord's receipt of the Plans, Landlord shall return the Plans to Tenant and advise Tenant in writing that the Plans are approved as submitted or are approved subject to specific changes required to be made by Tenant. In the latter event, Tenant shall submit to Landlord revised Plans incorporating the changes required by Landlord with 10 days of its receipt of the conditionally approved Plans. Landlord shall approve the revised Plans, provided they contain all required changes, no later than 30 days after its receipt of them. 'Thereafter, Landlord shall promptly return the Plans to Tenant and advise Tenant in writing that the Plans are approved. No later than 10 days after Tenant receives the approved Plans from Landlord, Tenant shall apply for required permits and otherwise commence construction to enable it to complete Tenant's Work as promptly as possible. At the time Tenant submits the Plans to Landlord for its approval, Tenant shall pay Landlord any amounts actually expended by Landlord in reimbursement for Landlord's expenses for review of the Plans. (c) During the period beginning on the date Tenant commences construction and ending on the date Tenant completes construction (the "Construction Period"), Tenant shall procure and maintain, in addition to the insurance described in Section 9.02 ofmis Lease, builder's risk insurance for the Premises. This insurance shall cover the full replacement value of all work performed and all fixtures and equipment installed on the Premises. Tenant or Tenant's subcontractors shall also maintain in effect workers' compensation insurance as required by the laws of the State of California. (d) Tenant shall promptly pay all contractors involved in Tenant's Work and shall notify each contractor and subcontractor in writing that (1) Tenant is solely responsible for payment of all Tenant's Work, and (2) Landlord has no liability for that work. If a mechanic's lien or other encumbrat'"lce relating to Tenant's Work is filed against Landlord, the Premises, or any other portion of the Shopping Center, Tenant shall, at Tenant's sole cost and expense, cause the lien or other encumbrance to be discharged of record or bonded within 10 days after 'Landlord' s written notice to Tenant. If Tenant fails to discharge or bond a lien or other encumbrance within the required time period, Landlord has the right (but not the obligation) to pay the amount of the lien or encmnbrance or to otherwise discharge it by deposit or bonding. If Landlord pays or otherurise causes discharge of the lien or encumbrance, Tenant shall reimburse Landlord, on Landlord's written demand, for the amount expended by Landlord (including all attorneys' fees and expenses), plus interest, at the then-maximum legal rate of interest, accruing from the date of Landlord's expenditure until paid by Tenant. La..."1dlord's right to pa.y or otheIil\'ise discharge such a lien or encumbrance does not preclude Landlord from exercising any other rights or remedies under this Lease, at law, or in equity.r (e) In performing or causing Tenant's Work to he performed, Tenant, at Tenant's sole cost and expense, shall comply with all applicable laws, regulations, orders, and requirements of 8 '. any governmental entity having jurisdiction. Further, Tenant shall obtain all necessary permits required by governmental entities or utility companies. Tenant shall use or cause to be used only new materials in Tenant's Work. At all times during the Construction Period., Tenant shall insure that its construction does not in any way interfere with the nonnal business operation of the Shopping Center. Any materials, equipment, or other items used in the construction shall be kept at all times in the interior of the Premises. The Premises shall be barricaded at the storefront line by full-height barricades so as to prevent access by the public or other non-construction personnel. All debris and rubbish shall be confined to the interior of the Premises and shall be removed at regular intervals by Tenant. lfany portion of Tenant's Work is damaged or destroyed by any cause during the Construction Period, Tenant shall immediately, at its sole cost and expense, repair or rebuild the damaged portion. Tenant's Work shall be deemed complete when a certificate of occupancy for the Premises is filed for record. (f) Landlord's approval of Tenant's Plans or of Tenant's Work shall in no way be deemed to mean that Tenant's Plans are adequate, Tenant's construction is structurally sound, or that the Plans or construction comply with applicable governmental requirements for building, safety, or otherwise. Tenant shall be solely responsible for any defect in construction or design of Tenant's Work. (g) Tenant assumes all liability for personal injury or property damage in any way arising out of the performance of Tenant's Work. Further, Tenant agrees to defend, indemnify, and hold harmless Landlord against all damages, liabilities, or other costs or expenses (including legal fees and costs) that Landlord may payor incur as a result of any claim or lawsuit arising from Tenant' s:"W ork. Alterations and Improvements by Landlord Section 6.04. Landlord may at any time make additions or alterations to any building in the Shopping Center, including the building containing the Premises. Landlord may also construct additional improvements or buildings in the Shopping Center, expand or reduce the size orthe Shopping Center, Common Areas or parking lots in the Common Areas, construct multi-level above-ground and/or below-ground parking facilities or garages, and enclose any open areas of the Shopping Center. Further, Landlord may at any time use any part of the exterior walls, roof, or air space above the finished ceiling of the Premises to carry out any construction described in this Section or any repairs described in Section 6.05 or Article 7. Repairs to Premises Section 6.05.(a) Landlord sha.ll maintain and keep 1"'1 good order, condition, and repair tl.1e foundations, exterior walls (excluding the storefront wall, windows, doors, and plate glass), and the roof ofthe Premises. Lan.dlord's obligation for repairs under this Section extends only to damage not caused by Tenant or Tenant's employees, customers, contractors, agents, or invitees. Landlord is not obligated to malce a..'I1y repair, except in the case of emergency, until it receives Vvntten notice from Tenant of the necessity for the repair. In making any repairs, La.'I1dlord shall w,e its best efforts to perform the work with a minimum of disruption to Tenant's business. 9 " (b) At its sole cost and expense, Tenant shall maintain the Premises in good order and repair. This obligation to maintain and repair extends, but is not limited, to the following portions ofthe Premises: the interior of all walls, floors, and ceilings; the interior and exterior of all doors and windows and the storefront; all plumbing and .sewage facilities that serve the Premises; and air-conditioning and heating systems, if any. Tenant's obligation to maintain and repair does not extend to any areas or portions ofthe Premises that landlord is required under this Lease to maintain and repair. If Tenant fails to make any necessary repairs within 10 days after written notice from Landlord, or after reasonable notice to Tenant in the event of any emergency, Landlord may malce the repairs and Tenant shall pay the cost of the repair to Landlord as Additional Rent. This payment shall accompany the next due monthly payment of Fixed Rent and shall inciude interest at the then-rpaximum legal rate. Ownership of Improvements Section 6.06. All alterations, additions, and improvements, except for Tenant's stock in trade, trade fixtures, furniture, and furnishings, made or placed in or on the Premises by Tenant or any other person shall on expiration or earlier termination of Lease, become the property of Landlord and remain on the Premises. Lfuidlord shall have the option, however, on expiration or termination of this Lease, of requiring Tenant, at Tenant's sole cost and expense, to remove fu'1Y or all such alterations, additions, and improvements from the Premises. ARTICLE 7. DESTRUCTION OF PREJv.ITSES OR SHOPPING CEI\TTER Notice of Damage Section 7.01. Within 24 hours of its occurrence, Tenant shall notify Landlord of any damage or accident occurring on the Premises. Damage or Destruction From Insured Casualty Section 7.02. Subject to the limitations set forth in this Section, if any time during the term of this Lease, the Premises are dmnaged or destroyed by fire or any other casualty covered by Landlord's fire and extended coverage insurance, Lfu'1dlord shall promptly re'iJair, rebuild, or restore the Premises to substantially the same condition as was originally delivered to Tenant under this Lease. Not01ithstanding the foregoing, Landlord shall not be obligated to expend for repairs or rebuilding an amount in excess of the net insurance proceeds for damage to the Premises recovered by it. "Net irlsurance proceeds" means the total amount of proceeds recovered and attributable to the Premise, less any expenses incurred by Landlord in recovering the proceeds; and less any amount required to be paid to Landlord's Lender (defined in Section 10.01 of this Lease). LaD.dlord shall commence repair, restoration, or rebuilding work, as appropriate, not later than 60 days after the occurrence of the event causing damage Of destruction, and shall cause construction to be completed not later than 180 days after the occurrence of the event causing dam.age or destruction. If Landlord does not commence or complete Tenant shall have the right to tenninate this Lease by giving Landlord written notice with 10 days after expiration oftne applicable time period. 10 Ie " ""'} 7~Cf [,;"1.-' l Right to Terminate Lease Section 7.03. Notwithstanding Section 7.02 oftms Lease, Landlord shallhave the right to terminate this Lease .and shall have no obligation to repair, restore, or rebuild the Premises or the Shopping Center, as the case may be, under any of the following circumstances: (a) The premises are damaged or destroyed by a casualty not covered by Landlord's Insurance. (b) Either the Premises of the building in the Shopping Center containing the Premises is damaged or destroyed by any cause (whether or not the damage or destruction actually includes the Premises), and th; cost of repair, restoration, or rebuilding exceeds a total of 45 percent oIthe then-replacement cost of the building. (c) At le~.jp percent of the gross leasable floor area of the Shopping Center is destroyed or damaged by any cause, whether or not the damage or destruction actually includes the Premises. (d) The Premises are damaged in whole or in part by any cause during the last two years of the Original Term ofthis Lease. If Landlord elects to terminate this Lease lL."1der any ofthe above circumstances, Landlord shall give written notice to Tenant not later than 30 days after occurrence oft.~e casualty. This notice shall set forth the date on which the termination is to be effective. That date shall not be less than 30 days nor more than 60 days after the date of the termination notice. If the type of partial or total destruction described in Subparagraph (d) of this Section occurs, Tenant shall have the same right as Landlord to terminated this Lease, subject to the same notice require- ments, provided that Tenant gives its notice oftermination of the Premises. Abatement of Rent Section 7.04. If damage or destruction to the Premises renders the operation of Ten ant's business wholly impossible and Tenant in fact ceases to operate its business, the Minimum Monthly Rent payable under this Lease shall abate either during the period beginning on the date of the casualty and ending on the date Landlord completes repairs, restoration, or rebuilding; or, ifthe damage or destruction results in the termination ofthis Lease, on the date of termination. If Tena....'1t is able to continue partial operation of its business, the Minimum Monthly Rent shall be abated proportionately based on the percentage of ground floor area of the Premises Tenant is able to OCCUf'Y. Obligations fOJ;:" Repair ot Rebuilding Section 7.05. If this lease is not tenninated pursuant to the provisions of this A..."iicle, Landlord's obligation to repair and rebuild is fur..ited to construction of the perimeter wans, flcar, ceiling, and roof of the Premises, and excludes interior finiShi.l1g and the storefront for t.1)e Premises. The Premises as completed by Landlord shall contain approximately the same amount 11 <}. u of gross floor areas as existed prior to the damage or destruction. Tenant must, at its own cost and expense, repair and rebuild the Premises to the extent not repaired or rebuilt by Landlord, in accordance with plans and specifications approved by Landlord and in all other respects in accordance with Sections 6.02 and 6.03 of this Agreement relating to Tenant's Work. Tenant shall commence its repair and rebuilding and diligently pursue the work to completion promptly after receiving written notice from Landlord that Landlord has completed its repair and rebuilding obligations. Payment of Insurance Proceeds Section 7.06. All insurance proceeds payable with respect to the Premises shall belong to and be payable to Landlord. If Landlord does not elect to terminate this Lease, the insurance proceeds, subject to any prior rights of Landlord's Lender (defined in Section 10.01), shall be disbursed in the following order: first, to Landlord's cost of rebuilding or restoration; second, to Tenant's cost ofrebuilding or restoration, excluding costs covered by Tenant's insu""aIlce and also excluding the cost of any Tenant trade fixtures or stock in trade; and third, to Landlord, as Landlord's sole property. No amount shall be paid to Tenant until after the completion of Tenant's Work and the expiration of the period during which a mechanic's lien arising from Tenant's Wark could be filed. .ft,RTICLE 8. USE OF PRKMISES Storage Section 8.01. Tenant may store o-p. the Premises only goods and merchandise intended for retail sale by Tenant from and on the Premises. Condition of Premises Section 8.02. Tenant shall at all times keep the Premises (including the interior and exterior storefront surfaces) in a clean, safe, Slli"1itary, and orderly condition. At is sole expense, Tenant shall replace any cracked or broken storefront glass on the Premises with glass equal in quality and similar in kind to that originally installed on the Premises. ' Prohibited Actions Section 8.03. Tenant may not do any of the following on the Premises: (a.) Permit or commit any waste. (b) Operate, cause, or permit to be operated any catalogue, mail, or telephone order sales in or from the Premises, except for the incidenta.l telephone sale of merchandise that Tenant is pennitted to sell on the Premises to customers. 12 (c) Permit or conduct any public or private auction on the Premises or any sale that would or would tend to indicate that Tenant is going out of business, is bankrupt, or has lost its lease. (d) Place or permit the placement of any pay telepho:q.es, vending machines (except those intended for the exclusive use of Tenant's employees), or amusement or video games on the Premises, without the prior written consent of Landlord. ( e) Use or permit the Common Area adjacent to the Premises to be used for the display or sale of merchandise or for any other business purpose. (f) Permit the making Of any noise or sounds that carry beyond the boundaries of the Premises, whether through loudspeakers, other types of electronic devices, or othenvise. (g) Conduct or permit any type of unlawful conduct on the Premises. (h) Store or use any hazardous substances or materials on the Premises. Compliance with Laws Section 8.04. At its sole expense, Tenant shall comply with all governmental laws, rules, regulations, orders, and ordinances relating to the Premises and to the use and occupancy of the Premises, including any requiring a capital expenditure for or capital improvements to the Premises. Tenant shall also maintain and keep in force.alllicenses and permits required by governmental authorities and shall comply with all requirements, recommendations, and regulations of Landlord's and Tenant's insurance companies. Signs and Advertising Section 8.05. Other than the signage existing on the Commencement Date, Tenant shall not place, install or maintain any other sign, awning, canopy, advertising, or other matter on the exterior of the Premises (including the storefront window and door), or in any place inside the Premises that is visible from the exterior storefront, W11ess it obtains the prior approval of Landlord. Tenant shall maintain all signs and other items described in this Section in good condition and repair and in compliance with any rules adopted by Landlord or as may be modified by Landlord regarding signage. Rules and Regul.ations Section 8.06. Landlord shall have the right from time to time to adopt, amend, or supplement rules a..Tld regulations relating to the Premises, the Common Areas, and the Shopping Center. Rules and regulations in effect as ofthe date afmis Lease, if any, are attached to t.1Us Lease as E:xj1.ibit C and are hereby incorporated by reference. Landlord shall notify Tenant in writing of allY amendment or modification made to the rules and regulations. Rules and 13 regulations shall apply uniformly to all tenants in the Shopping Center. Tenant agrees to comply with all rules and regulations; a failm-e by Tenant to so comply shall constitute a breach under this Lease. Assignment and Sublease Section 8.07.(a) Tenant shall not do any of the following without first obtaining the written consent of Landlord: assign, sell, mortgage, or in any other manner transfer this Lease or any interest of Ten ant in the lease; sublet the whole or any part of the Premises; or permit all or any part of the Premises to be used or occupied by others (whether through the grant ofa concession, license, or otherwise). Any consent requested from Landlord may be given or withheld by Landlord as Landlord in its sole discretion determines and Landlord may condition its consent to any assignment or subk:.lSe where the assignee or sublessee is an entity and not an individual or individuals on the individual owners of any interests in the proposed assignee or sublessee entity signing and delivering to Landlord a guaranty in form as Larldlord deems appropriate. .FillY consent given by Landlord under this Section applies only to the specific transfer transaction for which it is given, and Landlord's consent to a specific transfer transaction does not relieve or excuse Tenant from the requirement that Tenant obtain the prior written consent of Landlord for any subsequent transaction. Any transfer described in this Section, whether made with or without La."'1dlord's prior written consent, does not relieve Tenant of personal liability for the performance as a Tenant of applicable terms and covenants under this Lease (including the payment of rent), unless Landlord executes a \X/ritten agreement for a specific transfer that provides otherwise. The prohibitions against transfer described in this Section include any transfer tra.'1saction described above that occurs by operation onaw, legal process, receivership, bankruptcy, or otherwise, whether voluntary or involuntary. (b) Without in any way waiving its right to approve or disapprove any transfer transaction described in this Section, Landlord may (1) collect Tent from an assignee, subtenant, user, or occupant of the Premises following any transfer described in this Section, whether or not Landlord gave its prior written consent for the trlli"1sfer, and (2) apply the collected amount to the rent due from Tenant under this Lease. In addition, if the rent or other consideration payable to Tenant by a subtenant, assignee, licensee, or other tTansferee exceeds the rent payable under this Lease, Tenant shall pay to Landlord an amount equal to excess of the amount of rent or other consideration payable to Ten;:mt over the amount of rent payable under this Lease by Tenant to Landlord. (c) Any sublease, assignment, or other f:I'at'1Sfer agreement described in this Section must recite the following: that it is subject and subordinate to this Lease; and that the termination by Landlord dthis Lease will, at Landlord's sole option, terminate the sublease, assignment, or oHler transfer agreement. (d) The tra."'1sfer of corporate shares of Tenant by assignment, sale, bequest, irll1.eritance, operation of law, or other disposition shall Dot be considered a prohibited transfer tra.'1saction under this Lease ifit results in the shareholders of Ten ant as of the Commencement Date holding at least 51 percent of the voting power of the corporation. 14 ;:-l , ," (e) Tenant shall pay Landlord a fee of $500 to cover Landlord's administrative costs, overhead, and attorneys; fees in connection with an assignment, sublease, or other transfer transaction approved by Landlord. Tenant shall pay this fee before Landlord executes the document evidencing Landlord's consent to the transfer. < Covenant of Continuous Business Operation Section 8.08. Tenant shall conduct its business in a businesslike and efficient manner on the Premises with minimum hours of operation as set forth in the Shopping Center Rules, if any. ARTICLE 9. INSUR.4..NCE Insurance By Landlord Section 9.01. Landlord shall procure and maintain du..ring the entire term of this Lease, the following insurance coverage: fire and extended coverage insurance in an amount equal to not less than 90 percent of the full replacement value of all improvements constructed or installed by Landlord in the Shopping Center and by Tenant in the Premises (excluding Tenant's trade fixtures). In addition to the foregoing insurance, Landlord in its sole discretion may procure an~ maintain other insurance covering for Shopping Center, including the following: liability ins\rrance for personal injury, death, and property damage; workers' compensation insurance cOvering Landlord's personnel; fidelity bonds for personnel; insurance against liability for defamation and claims of false arrest occurring in and about the Common Areas; rental insurance and plate glass insurance for glass located in or on the Common Areas. The cost of any insurance procured by Landlord for the Shopping Center,. whether mandatory or optional under this Section, is a Common Area Maintenance Cost for which Tenant is obligated to contribute its proportionate share as described in Section 4.04 of this Lease. Insurance by Tenant Section 9.02.(a) Tenant shall, at its own cost and expense, procure and maintain during the entire term of this Lease the following insurance coverage: (1) Comprehensive general public liability insurance insuring against the risks of bodily injury, property damage, and personal injury liability occurring on the Premises or arising out of Tenant's use or occupancy of the Premises, with a combined single limit of liability of at least $1,000,000 and a general aggregate limit of at least $2,000,000. At least every three Yt~ar, but not more frequently, Tenant shall increase the amount of public liability coverage, jf at that time the existing coverage is not adequate in the opinion of Landlord's insurance broker or Lender. (2) Fire and extended coverage insurance, and vandalism and malicious mischief insurance, insuring Tenant's fixtures, goods, wares, and merchandise in or on the Premises for 100 percent of their full insurable and replacement costs, without deduction for depreciation. 15 " (3) Plate glass insurance covering all plate glass on the Premises. (4) Business interruption insurance, payable in the event of a loss covered by the fire and extended coverage or vandalism and malicious mischief insurance Tenant is required to maintain. in an amount not less that the amount of Tenant's Minimum Monthly Rent and proportionate share of Taxes and Common Area Maintenance Costs for a 12-month period following any damage or destruction. (5) Workers' compensation insurance as required by the laws ofthe State of California. Tenant's policy ofiiability insUrance shaUlist Landlord as an additional or arramed insured and shall also contain an endorsement that although Landlord is listed as an additional or a named insured, Landlord shall be entitled to recover under the policy for any loss or damage occasioned ~o it o~ its agents or employees by reason of Tenant's negligence. (b) Any insurance policy Tenant is required to procure and maintain under this Lease shall be issued by a responsible insurance company or companies licensed to do business in the State of California. Further, each such policy shall provide that it may not be canceled, terminated, or changed except after 30 days' prior written notice to Landlord. Tena.,'1t may maintain all or part of the insurance required under this Lease by means of a blan.."'<et insurance policy so long as the provisions ofthis Article are satisfied. Tenant must deliver to Landlord duplicate originals or certificates of all insurance policies procured by Tenant. (c) Tenant may not do, omit to do, permit to be done, or keep anything in or on the Premises that will violate the provisions of Landlord's fire and extended coverage insurance policy or otherwise adversely affect the premium.; paid by Landlord or Landlord's ability to maintain the insurance in effect. If any such act or omission by Tenant results in an increase in Landlord's premiums for any polick:s on the Premises or the Shopping Center, Tenant shall pay the amount of the increase. Landlord may also, at Landlord's option, rectify the condition causing the increase if Tenant fails to do so. In that case, on demand of Landlord, the amount expended by Landlord shall be immediately due and payable by Tenant as Additional Rent. (d) If during the t<~rm of lhis Le2.se Tenant fails to secure or maintain the insurance required under this Lease, Landlord may obtain the insurance for the Premises in Tenant's name or as the agent of Ten ant, and Tenant shall compensate Landlord for the cost ofthe insurance premiu.."TIs. Tenant shall reimburse Lfu"'1dIord the full amount paid no later that 10 days from the date written notice is received that the premiums have been paid. A failure by Tenant to make rei.'n.bursement within the time reqljred under this Subpara.graph shall be considered a default under this Lease. Su'n'ogation'Vaiver Section 9.03. Landlord and Tenant agree tl'1at in the event of1oss due to any of the perils for wrJch they have agreed to provide insurance, each party shall look solely to its insurance for recovery. Landlord and Tenant hereby gra..'lt to each other, on behalf of any insurer providing 16 ../j .:~<.- t1 1. ;?'J<;~~:}f ""yo lw/ \. insurance to either of them with that respect to the Premises, a waiver of any right of subrogation that any such insurer of one party may acquire against the other by virtue of payment of any loss under that insurance. Proceeds Section 9.04. Except as otherwise provided in this Lease, proceeds from any policy or policies shall be payable to the party responsible for the payment of insurance premiums. Indemnification Section 9.05. Landlord shall not be liable to Tenant, and Tenant hereby waives all claims against Landlord, for any injury or damage to any person or property on or about the Premises by or from any cause whatsoever, excepting injury or damage to Tenant resulting solely from the acts or omissions of Landlord or Landlord's authorized agents. Tenant agrees to indemnify, hold Landlord harmless from and defend Landlord, including payment of attorneys' fees and costs, against any and all claims or liability for any injury or damage to any person or property occurring in, on, or about the Premises or Common Areas or any part of the Premises or Common Areas, including liabilities assllJ."TIed by Landlord under contract but excepting any damage or injury caused solely by the act or omission of any duty by Landlord or Landlord's agents or employees. ARTICLE 10. SUBORDINATION, ATTORNMENT, MID ESTOPPEL CERTIFICATES Subordination Section 1O.Ol(a) Except as provided in Subparagraph (b) oftms Section, this Lease and all of Tenant's rights in the Lease shall be subject and subordinate to any mortgage, deed of trust, ground lease, or other instrument of encumbrance (collectively referred to in this Section as a "security instrument") that is now or hereafter placed against any part of the real property on which the Shopping Center is located, the Premises, or any or all of the building currently or in the future located in the Shopping Center. On written request of the holder of any security instnnnent ("Lender") or Landlord, Tenant shall execute, acknowledge, and deliver any documents evidencing subordination that the Lender or Landlord may reasonably request. For each security instrument, the Lender shall agree in writing that, in the event of a default under the security instrument, Lender shall not terminate this Lease and shall not disturb Tenant's right to possession under this Lease, provided Tenant is not then in default under this Lease and continues thereafter to fully perfonn all its obligations under this Lease. (b) Notwithstanding the provisions of Subparagraph (a) oftms Section, any Lender may subordinate its security instrument to this Lease by executing and recording a written document subordinating its security instrument to this Lease as provided in the document. In that case, this Lease shall be deemed prior to the security instrument as provided in t,1.e document, without regard to the execution, delivery, or recording dates ofthe subordination instrument described in this Subparagraph shall not require the consent of Tenant, but Tenant agrees to execute and deliver, in recordable form, an instn.L.'1lent requested by Lender or Landlord to confum or acknowledge the subordination. 17 Attornment Section 10.02. If Landlord transfers its interest m the Premises or if any proceeding is brought to foreclose any mortgage, deed of trust, or instrument to secure debt affecting the Premises or any ground lease made by Landlord, Tenant shall attorn to the purchaser or transferee 0 f Landlord's interest. Estoppel Certificates Section 10.03. Tenant agrees to execute, in recordable form, and deliver to Landlord or a Lender (as defined in Section 10.01 of this Lease), when requested by Landlord or a Lender, an estoppel certificate regarding the status'ofthis Lease. The certificate shall be in the fonn designated by Landlord or the Lender and shall contain at a minimum the following: (1) a statement that the Lease is in full force and effect "rjth no modifications, or a statement that the Lease is in full force and effect as modified, together with a description of the modifications; (2) the Commencement Date and expiration date of this Lease; (3) the amount of advance rent, if any, paid by Tenant, and the date to which the rent has been paid; (4) the amount of any security deposit deposited with Landlord; (5) a statement indicating whether or not Landlord is, in Tenant's good faith opinion, in default under any of the terms of this Lease, and ifso, a description ofllie alleged default and of any defense or offset claimed by Tenant; and (6) any other information reasonable required by Landlord or Lender. Tenant shall deliver the certificate to the requesting party not later than 15 days after the date of the written request for the statement. Tenant's failure to deliver the certificate within the foregoing time period shall constitute an acknowledgment by Tenant that this Lease has not been assigned or modified.; that the Lease is in full force and effect; and that all rent payable under this Lease has been fully paid up to but not beyond the due date immediately preceding the date of Landlord or Lender's written request for the statement. Such an acknowledgment may be relied on by any person holding or intending to acquire any interest in the Premises or the Shopping Center. Tenant's failure to timely deliver the required certificate shall also constitute, as between Tenant and the persons entitled to rely on the statement and as between Tenant and Landlord, a waiver of any defaults by Landlord or of Tenant defenses or offsets against the enforcement of this Lease that may exist prior to the date of the written request for t"1e statement. Landlord may also treat Tenant's failure to deliver the certificate as a default under this Lease. ARTICLE 11. CONDEMNATION Termination of Lease Section 11.01. If at any time during the term of this Lease, title and possession of all of the Premises or of 40 percent or more of the gross floor area of the Premises is tIken under the power of eminent domain by any public or quasi-public agency or entity, this Lease shall terminate as of 12:01 A.M. of the date achml physical possession Gfthe Premises is taktm by the agency or entity exercising the power of eminent domain. Thereafter, bJth L3.J.idlord and Tenant shall be release from all obligations under this Lease, sLlbject to the provisions of Section 11.04 of this Lease. 18 ... Continuation of Lease Section 11.02. If the portion of the Premises taken under the power of eminent domain is less than 40 percent of the gross floor area bfthe Premises,.the following will occur: (a) This Lease shall terminate as to the portion taken as of 12:01 A.M. of the day actual physical possession of that portion of the Premises is taken by the agency of entity exercising the power of eminent domain (the "date of taking"). (b) This Lease shall continue in effect for the remainder of the Premises not taken. Beginning on the day and at the time described in Subparagraph (a) of this Section, the Minimum Montb:ly Rent payable by Tenant under this Lease shall be reduced by the same proportion that the gross floor area taken bears to the gross floor area of the Premises prior to the taking. Promptly after the taking described above, Landlord shall, at Landlord' sexpense, restore the Premises not taken by eminent domain to a condition making the Premises tenantable by Tenant for the use permitted by this Lease; and Tenant shall, at Tenant's expense, make all necessary repairs to Tenant's fixtures, equipment, and furnishings. Option to Terminate Lease Section 11.03. Landlord shall have the right to terminate this Lease iftitle and possession of the following is taken under the power of eminent domain, whether or not the takil'1g includes any portion of the Premises: (a) More than 40 percent of the gross floor area ofthe.building containing the Premises; (b) More than 40 percent of the Common Areas of the Shopping Center. (c) More than 40 percent of the leasable floor area of the Shopping Center; or Cd) Allor a portion of the parking area of the Shopping Center, provided the taking causes the Shopping Center to violate the requirements of the then-applicable zoning law governing the size, location, layout, or other features of the parking area. Notwithstanding the foregoing, this Lease shall continue in full force and effect if Landlord, immediately after the agency or entity exercising the power of eminent domain takes actual physical possession of the parbng area, commences to correct the circumstances giving rise to the right to terminate this Lease, either through obtaining a variance or an exception to the then-applicable zoning law or by providing additional substitute parking areas. TIns action must be at Landlord's sole cost and expense. Landlord may exercise the foregoing right to terminate this Lease by giving written notice to Tenant at lease 30 days prior to the termination date, which shall be the date actual physical possession of the Premises is taken by the agency or entity exercising the power or ewinent domain. 19 Condemnation Award Section 11.04. If at any time during the term of this Lease, title and possession of all or any portion of the Premises of the Shopping Center is taken. under the power of eminent domain, the compensation or damages for the taking shall be awarded to and be the sole property of Landlord, and Tenant shall have no right or claim to that compensation or damages. \lVaiver Section 11.05. Landlord and Tenal1t each agree that this Lease shall govern the respective rights and obligations of each party in the event of a taking by eminent domain. Landlord and Tenant each hereby waives any right either may have at law to petition the court for tennination of tllis Lease in the event of a. partial taking of the Premises. ARTICLE 12. DEFAULT AND TERMINATION "Default" Defined Section 12.01. The occurrence of any of the following constitutes a default and breach of this Lease by Tenant: (a) ..6J1y failure by Tenant to pay the rent or to make any other payment required to be made by Tenant under this Lease, when the failure continues for 10 more days after written notice from Landlord to Tenant. (b) The abandonment of the Premises by Tenant. For these purposes, the absence of Ten ant from or the failure by Tena..'"lt to conduct business on the Premises for a period in excess of 14 consecutive days shall constitute an abandonment. (c) A failure by Tenant to observe or perfonn any other provision of this Lease to be observed or performed by Tenant, when the failure continues for 30 days or more after v'utten notice of Tenant's failure is given by Landlord to Tenant; provided, however, that if the default ca..rmot reasonably be cured within the 30-day cure period, Tena..nt shall not be deemed to be in default if Tenant commences the cure within the 30-day cure period and thereafter completes the curative action witbn a reasonable time. (d) The making by Tenant of any general assignment for the benefit of creditors; the filing by or against Tenant of a petition to have Tens.nt adjudged a bankrupt or of a petition for reorganization or arrangement lliider any law relating to banknlptcy (Wl1eSS, in the case of a petition filed against Tenant, it is dismissed withiL1 60 days); the Rppointment 0 f a trustee or receiver to take possession of substantially all of Tena"lt' s assets located at the Prc,mises or ofTemmt's intereST: in this Lease, when possession is not restored to Tenant withm 30 days; or the attacl1..ment, execution, or other judicLll seizure of substantially all of Ten ant's assets located at the PreIPises or of Tenant' s interest in this Lease, when that seizure is not dischcrged within 30 days. 20 Termination of Lease and Recovery of Damages Section 12.02. In the event of any default by Tenant under this Lease, in addition to any other remedies available to Landlord at law or in equity, Landlord shall have the right to terminate this Lease and all rights of Ten ant under this Lease by giving written notice of the termination. No act of Landlord shall be construed as terminating this Lease except written notice given by Landlord to Tenant advising Tenant that Landlord elects to terminate the Lease. In the event Landlord elects to terminate this Lease, Landlord may recover the following from Tenant: (a) The worth at the time of award of any unpaid rent that has been earned at the time of termination of the Lease; (b) The worth at tl~ time of award of the amount by which the unpaid rent that would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that Tenant proves could have been reasonably avoided; (c) The worth at the time ofaward of the amount by wruch the \ill.paid rent for the balance of the term of this Lease after the time of award exceeds the amO\ill.t of rental loss that Tenant proves could be reasonably avoided; and (d) Any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's failure to perform its obligation under this Lease. The term "rent" is used in the Section shall mean the Minimum Monthly Rent, and all other sums required to be paid by Tenant pursuant to the terms oftrus Lease. As used in Subparagraphs (a) and (b) ofthis Section, the "worth at the time of award" is computed by allowing interest at the rate of 10 percent per year. As used in Subparagraph (c) of the Section, the "worth at the time of award" is computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus 1 percent. Landlord's Right to Continue Lease in Effect Section 12.03. If Tenant breaches this Lease and abandons the Premises before the natural expiration of the term of this Lease, Landlord may continue this Lease in effect by not terminating Tenant's right to possession of the Premises, in which event Landlord shall be entitled to enforce all its rights and remedies under this Lease, including the right to recover the rent specified in this Lease as it becomes due under this Lease. For as long as Landlord does not terminate this Lease, Tenant shall have the right to assign or sublease the Premises, subject to the requirements of Section 8.07 of this Lease. No act of Landlord (including an entry on the Premises, efforts to relet the Premises, or maintenance of the Premises) shaH be construed as an election to terminate this Lease lL'lless a written notice of termination is given to Tenant or the tem1ination of this Lease is decreed by a court of competent jurisdiction. 21 Landlord's Right to Reiet Section 12.04. In the event Tenant breaches this Lease, Landlord may enter on and relet the Premises or any part of the Premises to a third party for any tenn, at any rental, and on any other terms and conditions that Landlord in its sole discretion may deem advisable, and shall have the right to mal:::e alterations and repairs to the Premises. Tenant shall be liable for an of Landlord's costs in reletting, including remodeling costs required for the reletting. In the event Landlord relets the Premises, Tenant shall pay all rent due under and at the times specified in this Lease, less any amount or amounts actually received by Landlord from the reletting. Landlord's }1ight to Cure Tenant Defaults Section 12.05. If Tenant breaches or fails to perform any of the covenants or provisions of this Lease, Landlord may, but shall not be required to, cure Tenant's breach. Any sum expended by Landlord, with the then-maximum legal rate of interest, shall be reimbursed by Tenant to Landlord with the next due rent payment under tIllS Lease. CumuJative Remedies Section 12.06. The remedies granted to Landlord in this Article shall not be exclusive but shall be cumulative 3..'1d in addition to all remedies now or hereafter allowed by law or provided in this Lease. VVaiver of Breach Section 12.07. The waiver by Landlord of any breach by Tenant of any of the provisions of this Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by Tenant either or the same or another provision of this Lease. Surrender on Termination Section 12.08. On expiration of the term of this Lease or the earlier termination of this Lease, Tenant agrees to su.l"Tender the Premises in good order and condition (reasonable wear fu'1d tear excepted). Further, Tenant shall, at Tenant's expense, remove all of its merchandise, inventory, and trade fixtures, and repair any damage caused by the removal. Landlord shall also have the right to require Tenant, at Tenant's expense, to remove any improvements made to the Premises by Tenant and to repair any damage caused by the removaL Holdover Tenancy Section 12.09. IfTemint remains in possession of the Premises after expiration of the term of this Lease without renewing or extending this Lease or entering into a new lease with Landlord, Tenant's continued occupancy of the Premises, at Landlord's option, shaH be considered a month-to-month tenancy that may be terminated by either party on 30 days' prior notice to the other. AU terms ofthis Lease shall be fully applicable to the month-to-month tenancy Lnsofar as consistent with a month-ta-month tenancy except proportionate share oft 22 ,""'"\ '''":< ~; .' ~ . Common Areas Maintenance Costs and Taxes, and any Additional Rent provided for under this Lease. Attorneys' Fees Section 12.10. If any litigation is commenced between the parties to this Lease concerning the Premises, this Lease, or the rights and duties of either in relation to the Premises or the Lease, the party prevailing in that litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to a reasonable sum as and for its attorney's fees in the litigation, which shall be determined by the court in that litigation or in a separate action brought for that purpose. ^' ARTICLE 13. MISCELLANEOUS No Personal Liability of Landlord Section 13.01. Tenant agrees that Landlord shall have no peit"Sonalliability with respect to any provision of this Lease, and that in the event Landlord fails to perform any obligation under this Lease or otherwise breaches this Lease, Tenant shall look solely to Landlord's ovm.ership interest in the real property and improvements constituting the Shopping Center for satisfaction of any judgment or any other remedy of Tenant, subject to any prior rights of any holder of a mortgage or deed of trust covering the Shopping Center. No other assets of Landlord shall be subject to levy, execution, or other judicial process for the satisfaction of Tenant's ciaim. Landlord's Operating Agreements With Others Section 13.02. Landlord has entered or may enter into various agreements with the owners of or occupants of other premises located in the Shopping Center relating to the operation and use of the Shopping Center (hereafter collectively referred to in this Section as "Operating Agreements"). These Operating Agreements may include reciprocal easement agreements, development agreements, and leases. This Lease shall be subject at all times to these Operating Agreements. Landlord shall not be liable to Tena."1t for the breach of any Operating Agreement by any owner or occupant of other premises located in the Shopping Center, and shall not be required for Tenant's benefit to institute efforts to enforce any party's obligations under an Operating Agreement or to terminate any Operating Agreement because of a party's default. Other Covenants of Continuous Operation Section 13.03. This Lease shall not be deemed or interpreted to contain, implicitly or otherwise, any representation or agreement by Landlord that any other tenant (includin:: any department store or national or regional chain retail store) shall open for business or occupy or continue to occupy an portion of the Shopping Center or adjacent property at any time during the term of this Lease. Tenant agrees and affirms that it is not relying on any such representation or agreement in entering into this Lease, and waives any claim with respect to any such agreement or representation. 23 'j" c;/: j l Removal of Hazardous Materials Section 13.04. If any hazardous materials or substances prohibited by law are found to exist on the Premises and the presence of the materials or substances has not been caused by Tenant or by Tenant's use of the Premises, Landlord shall, at Landlord's sole cost and expense, perform necessary removal and cleanup as required by law. If any hazardous materials or substances prohibited by law are found to exist on the premises and the presence of the materials or substances has been caused by Tenant or by Tenant's use of the Premises, Tenant shall be responsible for any required cleanup or removal and for the cost of the foregoing. Tenant shall not use or store hazardous or toxic substances on the Premises or any other portion of the Shopping Center. Landlord-Tenant Relationship Section 13.05. This Lease establishes a Landlord-Tenant relationship between the parties. It shall not be construed or deemed to create any other type or relationship between them, including one of agency, partnership, or joint venture. Landlord's Right of Entry Section 13.06. At any time Tenant is open for business, Landlord shall have the right to enter the Premises to inspect the Premises; show the Premises to a third party; or perform any repairs Landlord is permitted or required to make under this Lease, whether to the P':;rnises, adjoining premises, or the building containing the Premises. For any entry made whik Tenant is open ror business, Landlord shall use its best efforts to minimize interference with the conduct of Ten ants business. Repairs required or permitted to be made by Landlord may, at Landlord's option, be scheduled for times when Tenant's business is not open, provided prior written notice is given to Tenant. In the case of an emergency, Landlord may enter the Premises at any time without prior notice to Tenant, but shall notify Tenant promptly afterwards of its emergency entry. Brokerage Commissions Section 13.07. Neither Tenant nor Landlord has had any dealing or negotiations with any broker or finder with respect to the Premises. In the event of any claim for paYment or compensation by 3IlY agent or broker with respect to Tenant's lease ofthe Premises, each party agrees to defend, indemnify, and hold the other harmless from and agaiIlst a11 costs, fees, liabilities, and other claims incurred by the indemnified party as a result of the claim caused by the conduct of the other party. Interest on Obligations Section 13.08. The payment of any sum due to Landlord under this Lease, however designated, shall be due promptly as provided for in this Lease. Any payment that is not paid promptly shall bear interest from its date until paid at the then-maximum legal rate of interc~st. 24 .. . N ouces Section 13.09. Except as otherwise expressly provided by law, any and all notices or other communications required or permitted by this Lease .or by law to be served on or given to either party to this Lease by the other party to this Lease shall be in writing and shall be deemed duly served and given when personally delivered to the party to whom they are directed or any managing employee of that party, or in lieu of personal service, when deposited in the United States mail, first-class postage prepaid, addressed to: Landlord: Tenant: 1211 Newell Avenue, Suite 120, Walnut Creek., Califomia 94596, 1293 Parkside Drive, Walnut Creek, CA 94596 Either party may change its address for purposes of this Section by giving written notice of that change to the other party in the mann;;;r provided in this Section. Binding on Heirs and Successors Section 13.10. This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of Landlord and Tenant, but nothing in this Section shall be construed as a consent by Landlord to any assignment of this Lease or any interest in. this Lease by Tenant except as provided in Section 8.07 of this Lease. Time of Essence S~ction 13.11 Time is expressly declared to be of the essence in this Lease. Sole and Only Agreement Section 13.12. This Lease, together with the Exhibits described in Section 13.13 of this Lease, constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the leasing of the Premises to Tenant, or the lease term created under this Lease, and correctly sets forth the obligations of Landlord and Tenant to each other as of its date. Any agreements or representations respecting the Premises or their leasing by Landlord to Tenant not expressly set forth in this instrument are null and void. TIris Lease may be modified or amended only by an Instrument in writing signed by both Lfu'1dlord and Tenant. Exhibits Section 13.13. The following exh.5.bits are incorporated by-:reference in and constitute a part or this Lease: EXHIBIT A: Description ,,;[Premises EXFJ:BIT B: Outline of Landlord's Property EXHIBIT C: Rules and Regulations EX..I.T-IIBIT D: First Right 25 tt\ '-" Invalidity or Un enforceability Section 13.14. If any provision of this Lease is held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Lease shall remain in full force and effect. Waivers Section 13.15. No waiver of any term, condition, or covenant of this Lease shall!);:; presumed or implied. Any such waiver must be expressly made in vl/riting by the party waiving the term, condition, or covenant. The acceptance by Landlord from Tenant of any amount paid for any reason under this Lease 1...'1 a sum less than what is actually owing shall not be deemed a compromise, settlement, accord and satisfaction, or other fma1 disposition of the amount owing unless Landlord agrees othenvise in writing. Captions Section 13.16. The captions and numbers of the p-...t-ticles and Sections ofwis Lease are for convenience only and are not intended to reflect in any way on the substance or interpretation of the provisions of this Lease. Reports by Tenant Section 13.17. Within fifteen (15) days after the end of each calendar month of the term hereof, commencing with the fifteenth (15th) day of the month follovving the commencement or the lease term (as hereinabove provided), and ending with the fifteenth (15th) day of the month next succeeding the last month of the lease term, Tenant shall furnish to Landlord at the place then fixed for the payment of rent, a statement in writing, certified by Tenant to be correct, showing in reasonably accurate detail, the amount of gross receipts made in, upon, or from the leased premises during the preceding calendar month including those receipts paid to Tenant by independent contractOrs. Tenant shall submit to the Landlord on or before the sixtieth (60th) day . . rollowing the end or each lease year at the place then fixed for the payment of rent a statement in writing, certified by Tenant to be correct, showing in reasonably accurate detail, satisfactory in scope to Landlord, the amount of gross receipts during the preceding lease year, and duly certified to Tenant by an independent public accountant of recognized standing, which certification shall be one of which is satisractory to Landlord in scope and substance. The statements referred to herein shall be such fOrTI1 and style and contain such details and breakdovvn as Landlord may reasonably determine. "r .LO ,. Executed on California, ( o C/{- / , 1998, at !/vAvn VI tYUu.A~ Cbr BERKELEY'L.AND COMPANY, INC. a California cotIJration By: ~ A.J;.a~ r ' . /'1-!./j/lA ffl t21&:/W/ Its . \j Cu !tNA-.r'1 Ve-fl ~ +- //1,6 7 h c 1), 6f1 ~ CB..EF'S T~ .J ~ ~-~ 0/0<""5" ,r\ ~-. =.J .! By' . _ _~~ [/ve~ /o(lJ{/\ Its 27 EXHIBIT A Measurement of Premises Approximately 5,630 square feet measured outside of exterior wall to outside of exterior wail. 1 of 1 '.....,! , . -", (-------- 1 f------- \ I r' --~ j ---- ..l ..... .r> I -1 J ~i 1(' ~r I s~ I :i"3f ., .[~ J -~ '. \:' - I ~i~~~"" ." i ; "l~ .' '.' .... l~: ~~~\ .,' 1 ~il' I : t~' I g I: \i~' <Ell \; ~~.,~~ I I ~"'" ' . :',' J ' ~", ", ", " " '" '. ~'" ' I kij~ "~c. ~.'.', I ;0))..<.-j;;; . ,>>~ , t , ' '" ",-", ,............ \. x;,\< " ; i \ ~-,!.' ~(//~:" "..-J \ : J.J ~ I ',' ////)~1 '-~-t-_-4?ll,~ ,~W~>-,~"""~I ,: ' E. ,I . ~ "'-.....""'''''' ~'v " \ ',' ..:. f' ]' '.(7~ . l "L' ."i ....l)7/ ' f ' -' ~ t :' ' " '. "j-' .'\ .."". . . . " , .... L_..LLLj.L.ii:~~ "'" '--......'-..... ~~'),'S::~/ .------"""------Y.~ .--~~/ , , ' " - .. ':' : ,. ,. . ..., ,,', . .' ..(5~'J :~'V s ! -'"Hi T-;1 1 ! I , II :'j; " I ..,1 . 1 ; ." .' i \ .! I. t i . ~ I . 1 i . ' ".( i . \ ! . I, I { ~ ! i \ . ( , , ! C:=:>' .,.' '," , ,":. ,,~~"~~~ EXHIBIT B l-"'< EXHIBIT C RULES AND REGULATIONS OF THE SHOPPING CENTER A. COMMON i,.REA 1. All Tenants shall use their best efforts to require their respective customers, invitees and employees to comply with an regulations with respect to the Common Area, including, but no way of limitation, posted speed limits, directional markings and parking stall markings. 2. All of the Common Area shall be maintained free from any obstructions not required, including the prohibition of the sale or display of merchandise outside the exterior walls of buildings within the Shopping Center, including those within any recessed area, except in areas specifically designed within the said Shopping Cemer for such purposes. B. .sIDRE n'ilERIQE~ 1. All store interiors, including vestibules, entrances and returns, doors, fixtures, windows and plate glass shall be maintained in a safe, neat and clean condition. 2. All trash, refuse and water materials shall be regularly removed from the premises of each tena..."'1t of the Shopping Center, and umil removal shall be stored: (a) In adequate containers, which such containers shall be located so as not to be visibie to the general public shopping in the Shopping Center, and (b) So as not to constitute any health or fire hazard or nuisance to any Occupant. ? No portion of the shopping Center shall be used lor lodging ptL.-poses. 4. Neither sidewalks nor walkways shall be used to display, store or replace any merchandise, equipment or devices. 5. No adv:1iising medium shall he utilized wh.ich can be heard or experienced outside of any store interior, including, without limiting the generality of the foregoing, flashing lights, searchlights, loud speakers, phonographs, radios or television. 6. No use shall be made of the Shopping Center or any ponion or portions thereof which would: \a) Violate any law, ordinance or regulation, 1 of3 .,~ C) r (b) constitute a nuisance, (c) constitute an extra hazardous use, or (d) violate, suspend or void any policy or policies of insurance on the Stores. 7. Each tenant shall use its best efforts to require all trucks servicing the facilities of tenant to load and unload prior to the hours of the Shopping Center opening for business to the general public. 8. No advenising medium,.,shall be utilized within the Shopping Center which can be seen or experienced outside the premises of any tena...'1t advertising any auction, fire, bankruptcy or going out of business sale. c. .cONDUCT OF PERSONS The follo\ving rules and regulations for the use of roadways, walkways, automobile parYing areas and other common facilities provided for the use oflenants and their customers, invitees and (,,~1ployees are hereby established. i. No person shall use any roadway or walkway except asa means of egress from or ingress to any store within the Shopping Center .and automobile parking areas within the Shopping Center, or adjacent public streets. Such use shall be in an orderly mar..ner, in accordance with the directional or other signs or guides. Roadways shall not be used for parking or stopping, except for the irnmediate loading or unloading of passengers. No walkway shall be used for other than pedestrian travel. 2. No person shall use any automobile parking areas except for the parking of motor vehicles during the period of time such person orthe occupants of such vehicle are customers or business invitees of the retail establishments within the Shopping Center. All motor vehicles shall be 7Jarked in an orderly manner within the painted lines defining the individual parking places. Dlli-lng peak periods of business activity, limitations may be imposed. as to the length of time for parking use. Such limitations may be made in specified areas. 3. No persons shall use any utility area, truck court or other area reserved for the use in c01mection \7/ith the conduct of business. except for the specific purpose of which permission to use such is given. 4. No employee of any business in the Shopping Center shall use any area for motor vehi~le parking, except the are or areas specifically designated for employee parking for the particular period of time such use is to be made. 5. No person, without the written con1;ent of Landiord, shall be in or on any part of the Common Area to: 20f3 (a) Vend, peddle or solicit orders ror sale or distribution of any merchandise, device, se:-vice, periodical, book, pamphlet or other matter whatsoever. (b) Exhibit any sign, placard, banner, notice or other written material. (c) Distribute any circular, booklet, handbill, placard or other materiaL (d) Solicit membership in any organization, group or association or contribution for any purposes. (e) Parade, rally, PtltroL picket, demonstrate or engage in any conduct that might tend to interfere with or impede the use of my of the Common Area by a.'1y Permittee, create a disturbance, attract attention or harass, a.,.'1ll0Y, disparage or be detrimental to the interest of any of the retail esttlblishments within the Shopping Center. (D Use any COITL'11on Area for any purpose when none of the retail establishments within the Shopping Center is open for business or employment. (g) Tr..row. discard or deposit 3.J.1Y paper, glass or extraneous matter of ar.y kind, except in desi~ated receptacles, or create litter or hazards of any kind. (h) Use any sound-making device of &'1y kind or create or produce in any manner. noise or sound that is annoying, unpleasant, or distasteful to tenants and their customers, invitees, and employees. (i) Deface, damage or demolish any sign, light standard or fixture, landscaping materi 3.1 or other improvement within the Shopping Center, or .the propeny of customers. business invitees or employees situated within the Shopping Cemer. The listing of specific items as being prohibited is not intended to be exclusive, but to indicate in general the manner in which the right to use the Common Area solely as a means of ,lccess and convenience in shopping at the retail establishments in the Shopping Center is limited and controlled by Landlord. Lanr.Uord and any tenam shall have the right to remove or exclude from or to restrai;: (or take legal action TO do so) any unauthorized person from, or from coming upon, the Shopping Center or any portion thereof. and prohibit, abate and recover damages arising from (my lmauthorized act, whether or not such party is not tbe agent of other parties or tenants of th.e Shopping Center, unless expressly authorized or directed to do so by such party or tena.TJ.t in v\'I1ting. .., r" <~ 0... .J EXHIBIT D FIRST RlGBT Parties This is an Addendum to the Real Property Lease between BERKELEY LAND C01Y1P ANY, me. ("Lessor") and CHEF'S TOUCH CATERlNG ("Lessee") dated Gc4-- I Iqq 1998, regarding the premises commonly lmown as 11851 Dublin Boulevard, Dubl , California (the "Premis~s"), which isa p~ of the Dublin Square Shopping Center (the "Property") owned by Lessor'. Lessee intends to Clperate a delicatessen in the Premises subject to the terms of the Lease. ,~>., Purpose Lessee 15 ~ware that Lessor is conSidering various alternatives regarding the future use of the Property, including razing all existing structures and either building a new shopping center or other commercial buildings or se11ing the Property or portions thereof. As Lessor will probably pursue one of these alternatives within the next couple of years, Lessor is unable to grant to Lessee a long term lease, but Lessor is willing to grant to L:ssee a First Right to Negotiate regarding a new lease if Lessor's future use of the Property is, in Lessor's opinion, appropriate for a delicatessen. Lessee's First Right to Negotiat~ If, in the opinion of Lessor, Lessor's future use of the Property is appropriate for a delicatessen and if Lessee is still operating a delicatessen on the Property at the time Lessor makes such deci?ion and if Lessee's lease is not then in default, Lessee shall have the First Right to Negotiate with Lessor for a lease of a portion of the Property for the continuation of Lessee's delicatessen business. In that event, a new l~ase for the delicatessen in the rebuilt property shall be negotiated in good faith by both parties at the then current market rents and other lease terms that Lessor would offer to other prospective tenants for the same or similar locati~ the Property. Pwcedure for Negotiations In the event Lessor determines that the rebuilt Property is appropriate for a deJicatessen, Lessor shall send to Lessee a vvritten notice requesting that lease negotiations COITL"Tlence. If Lessor and Lessee are unable to reach an agreement regarding a new lease within thirty (30) days of such written notice in spite of the good faith efforts of both parties, then lessee's First Right to Negotiate shall terminate in all respects, and Lessor shall be free to negotiate with other prospective tenants for the Premises. D2.ted: t'l" L- /. IC;& (:- Dated: ;I{!./J ~ It 'ti< C.U/ifo..JPrH,/ U&.J't~-+ /'Y'i (-:;-1';1:/;1 1\ e,~-.Lessee: (?iTh~~JCH CATERIl'.JG \.....,.t......,~ ~ ....., ----- -.- '\ 1 C>7l1f C, __ t vev"I'~"",. B,~.'....,,----:;;y J ---... ", Lessor: BERlCELEY LPJ~ID CO., ThlC. By Its Its (tcS1dC?t;- 1 of 1 ..... . "1' R~.. .. o FIRST ADDENDUM to SHOPPING CENTER LEASE between BERKELEY LAND COM:P ANY, INC. and CHEF'S TOUCH CATERING 1.{)rPP;<.-:\ fYUqD 1. Landlord agrees that the term of this Lease will be a minimum of ~ months, beginning on the Commencement Date stipulated in Section 3.01 of this Lease. 2. Tenant can park vehicles and equipment at the rear of the space as long as such vehicles and equipment are wholly within the parking space and not parked diagonally or horizontally. 3. Landlord agrees to repair dumpster site. 4. Landlord specifically agrees that Propeliy Taxes are included in the Common Area Maintenance charge of$300.00 per quarter as further explained in Section 4.02(b) of this Lease. 5. Landlord agrees to reimburse Tenant $4,000.00 for the installation of new restaurant f n oocl~~us:t~1. Reimbursement is conditioned upon obtaining all applicable r~J city and county permits, approvals, and certifications. f\~ --: ~\\lV~ t ,/ (JtU~.5, C/D aSf6-Cf'/1 7""" W..r--fvoOYYl~'. AvId /'-.1...-- t'..... " 1'\ , t J ~ l.." r ,/ 1::'" ~ V\.,Itr me '7 ri q I ( , . / /~) -ft~ Ie: t 7 c/~ hue )// .. D--;/ ~\~~ ~ \ v..? . Ari .Ih,.....~ r3J)u I p{1y~ {Iv If { 6<- 0r\tL. ~ f'J'rtJrr _, -r-y eft 7tf,r/ n b / J--;/l ct~d ( nc; ...f-~ v'-- 0UJ~ Coo/elL. o P-l~ \ ~ lOuCI-I ~'" A1/7A . (Jj- ~ v A VVVv M"t7......J S Hne;'?); .I 1 of 1 SECOND AMENDMENT TO LEASE AGREEMENT PARTIES This is the First Amendment to the Lease Agreement dated October 1, 1998 (the "Lease"), between Berkeley Land Co. Inc. ("Land10rd~~) and Chefs Touch Catering ("Tenant") . ;, PURPOSE This Second Amendment is made with reference to the following: A. Landlord and Tenant wish to have a definite termination date ofthe lease, change section 4.02 (b) of the lease and delete item # 4 of the First Addendum to the Lease. AGREEr~ENT Therefore it is agreed as follows: 1. Section 4.02 (b) oftlle lease shaH be amended to provide that there shall be no cap of common area maintenance charges of $300.00 per quarter or $1,200 per year effective January 1, 2006. 2. The lease is hereby amended such that effective January 1,2006 it will no longer be a month-to-month tenancy but commence January 1, 2006 and terminate December 31, 2008. 3. Item #4 ofthe First Addendum to Shopping Center Lease is hereby deleted. Tenant will pay for its proportionate share of property taxes in accordance with section 4.04 ofllie Lease effective January 1,2006 Dated: !I fr II ,2006 . Landlord: Dated: f /)-f---- ,2006 Tenant: Chefs Touch Catering J .;:==-----.. B-'~ jl~- 'r,.". ~ H.), ~;;t: . ! r "':0,... ~'.sl "oJ. COMMER.CIAL LEASE AND DEPOSrT RECEIVED FROM City Ministries .International hereinafter referred to as LESSEE, The sum of $ 6,000.00 ( Six Thousand *******ir*****"'*****,********-I<-},O",*************,****'1('k***********'k*******li:************** dollars), evidenced .by Check , as a deposit which will belong to Lessor and will beappHed as follows: TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY $ 3.000.00 $ 3,000.00 $ Rent for the period from November 1 ,2005 to November 30, 2005 $ 3,000.00 Security deposit (not applicable toward last month's rent) $ 3.000.QL OO~ $ $ $ $ TOTAL $ 6,000.00 $ $ 6.000.00 In the event this Lease is not accepted by the Lessor within--12...-- days, the total deposit received will be refunded. Lessee offers to Lease from Lessor the premises situated in the City of Dublin , County of Alameda State of California, described as the premises located at 11825 Dublin Blvd. Dublin, CA consisting of approximately 15,136 square feet, upon the following terms and conditions: 1. TERM. The term will commence on October 1 , 2005 and end on September 30. 2008. 2. RENT. The total rent will be $197.QOO.QQ. Rent for the 1 s\ month will be free to the Lessee. Rent will be $ 3.000.00 per month for the 2nd through 4U1 month Rent will be $3.500.00 per month for the 5'" through 8th month, and will be $4,500.00 per month for the 9th through 12u1 month. Beginning year 2, rent will be g3.000.00 per month. Beginning year 3, rent will be F,OOO.OO per month. Rent wlll be payable on the 1st day of each month. All rents will be pale; to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite ZOO. Danville, GA 9452& or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within -L days after due date, Lessee agrees to pay a late charge of $ ~Ius interest at ~% per annum on the delinquent amount. Lessee further agrees to pay $ ..-1!L-for each dishonored bank check. Theiate charge period is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due. 3. USE. The premises are to be used for the operation of General Office and Retail and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenant in the buifding. 4. USES PROHIBiTED. Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permitted to be made upon the premises, nor acts done, which wifl increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering tile property. Lessee will not conduct or permit any sale by auction on the premises. 5. ASSIGNMENT AND SUSLETnNG. Lessee will not assign this Lease or sublet any portion of the premises without prior written consent of the Lessor, which will not be unreasonably withheld. Any such assignment or sublettirQ without consent will be void and at the option of the Lessor, will terminate this Lease. 6. ORDINANCES AND STATUTES. Lessee will comply with all statutes, ordinances, and requirements of all municipal, stat.e and federal authorities now in force, or which may later be in force, regarding the use of the premises. The commencement or pendency of any state or federal court abatement proceeding affecting the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. r. MAINTI2NANCS, REPAIRS, AI.. TERATIONS. Unless otherwise indicated, Lessee acknowledges that the premises are in good order and repair': Lessee will, at his or her own expense, maintain the premises in a good and safe condition, inciuding plate glass, electrical wiring, plumbing and heating and air' conditioning installations, and any other system or equipment. The premises will be surrendered, at termination of the Lease, in as good condition as received, normal wear and tear excepted. Lessee will be responsible for all repairs required, except the following which will be maintained by Lessor: roof, exterior walia, and structural foundations (including any retrofitting required :JY governmental authorities) and:"~. Lessee will be responsible for their share of the common area maintenance, taxes and insurance. No improvement or alteration of the premises will be made without tlcR prior written consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, Lessee will give Lessor at leaA two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability for liens. B. ENTRY AND INSPE:CnON. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon reasonable notice for ti1~, purpose of inspecting the premises, and will permit Lessor, at any time within sixty (50) days prior to the expiration of this Lease, to place upon the premises any usual "For Lease" signs, and permit persons desiring to Lease the premises to inspect the premises at reasonabie times. S. INDEMf'Hr-iCATION OF Less em.. Lessor will not be liable for any damage or Injury to Lessee, or any other person, or to any property, ocoming on ti.e premises. L.essee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to indemnify Lessor for any expense incurred by Lessor in defending any such claims. 10. lPOSSESSHON. If Lessor is unable to deliver possession of the premises at the commencement date set forth above, Lessor will not be liable for any damage caused by the delay, nor will this Lease be void or avoidable, but Lessee will not be liabie for any rent until possession is delivered. Lessee may termir,;,tc this Lease if possession is not delivered within ...9..- days of the commencement term in Item 1. 11. i..E:SSEE'S INSlLiRAIMCE. Lessee, at his or her expense, wilt maintain plate glass, public liability, and property damage insurance insuring Lessee and Lessor with minimum coverage as follows: 1 Million Dollars Generai UabHitv Lessee will provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The policy will require ten (iO) day's written notice to Less:'r prior to canceHation or material change of coveraoe. 112. !:..ES50IR'S INSUI".ANCE. Lessor will maintain hazard insurance covering one hundred percent (100%) .actual cash value of the improvements throug!'i()l!' the Lease tt~rm. Lessor's insurance will not insure Lessee's personal property, Leasehold improvements, or trade fixtures. 13. SIlJ5ROGt1>"fiONo To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and ill! ri'!~;;3 of subrogation which might otherNlse exist. 14. UTil;..f;Tli\i:S. Lessee agrees that he or she will be responsible for the payment. of all utiiities, including water, gas, electricity, heat and other services d',:Jlivm0:: to the premises, except: ***....***** ..,,****.**** *****.*..*****.*,.***************.*******..**.........**.**...*****.:"******.*************...****.*....** . 'li5. SIGNS. L.essee wilt not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of the premises withoutlhe express written consent of Lessor. which will not be unreasonably withheld, and of appropriate governmental authorities. 16. ABANDONMENT OF l"'i<r.IEMISE5. Lessee will riot vacate or abandon the premises at any time during the term of this Lease. If Lessee does ab:':;T'don IC' vacate the premises, or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left on the premises will bo deemed It, be abandoned, at the option of Lessor. PE{::~ 1 Di:3 !'...... .", i l Property Address 1 i 825 Dublin Blve. ~"Jblin, CA CONDEMNA TeON.lf any part of the premises is condemned for public use, and a part remains which is susceptible of occupation by Lessee, this Lease as to the part taken, terminate as of the date the condemnor acquires possession. Lessee wUlbe required to pay such proportion of the rent for the remaining i as the value of the premises remaining bears to the total value of the premises at the date of condemnation; provided, however, that either party may, at his or tier option, terminate this Lease as of the date the condemnor acquires possession. In the event that the premises are condemned in whole, or the remainder IS not susceptible for us(;; by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee will be entltied to retain any amount awarded to him or her for his or her trade fixtures and moving expenses. 18. TRADE FIXTURES. Any and all improvements made to the premises during the term will belong to the Lessor, except trade fixtures of the Lessee. Less8J may, upon termination, remove all his or her trade fixtures, but will pay for all costs necessary to repair any damage to the premises occasioned by the removal. 19. DESTRUCTION OF PREMISES. In the event of a partial destruction of the premises during the term, from any cause except acts or omission of LesseE, Lessor will not promptly repair the premises. Such partial destruction will terminate this Lease. 20. HAZARDOUS MATERIALS. Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of $l;ch substances that are customarily "sed in Lessee's business. and are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or toxic matefi~;is reguiatedunder any environmentai laws or regulations applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by Lessee's use of the premi!"es. 2i. INSOLVENCY. The appointmentof a receiver, an assignment for the benefits of creditors, or the fiUng of a petition in bankruptcy by or against Lessee, wil! constitute a breach of this Lease by Lessee. 22.. DEFAULT. In the event of any breach of tllis Lease by Less~e,Lessor may, at his or her option, terminate the Lease and recover from Lessee: (a) the warth at the time of award of the unpaid rent which had been eamedat the time of termination; (b) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other .amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform his or her obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. Lessor may, In the alternative, continue this Lease in effect, as long as Lessor does not tennlnate Lessee's right to possession, and Lessor may enforce <,i! of Lessor's rights and remedies under the Lease, including the right to recover the rent as it becomes due under the Lease. If said breach of Lease continues, Less", may, at any time thereafter, elecUo terminate the Lease. These provisions will not limit any other rights or remedies which Lessor may have, 23. SECUR~TY. The security deposit will secure the peliormance of the Lessee's obligations. Lessor may, but will not be obligated to, apply all or portions of \11(" deposit on account of Lessee's obligations. Any balance remaining upon termination will be returned to Lessee. Lessee will not have the right to apply the security deposit in payment of the last month's rent. 24. DEPOSIT REFUNDS. The balance of all deposits will be refunded within three (3) weeks (or as otherwise required by iaw), from date possession is delivered to Lessor or"his or her authorized agent. together with a statement Showing any charges made against the deposits by Lessor. - - ATTORNEY FEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevaiiing party will be enf:iticd ,asonable attorney fees. .0,'0, WAIVER. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NOTICES. Any notice which either party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the premises, Qr I:} l,.essor at the address'ishown'in Item 2. or at such other places as may be designated in writing by the parties from time to time. Notice will be effective five (hi days after malling, or on personal delivery, or when receipt is acknowledged in writing. 28. HOl-DINe OVER. Any hOlding over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent cf $ 10.500.00 , payable in advance and otheliNise subject to the terms of this Lease, as applicable, untii either party will tenninate the tenancy by giving tns other party thirty (30) days written notice. 29. TIME. Time is of the essence of this Lease. 30. HEIRS, ASSIGNS, SUCCESS'"';. RS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 3-1 . TAX. Lessee will pay to Lessor an amount equal to 100 % of the increase in taxes upon the land and building in which the leased premises are situated, in the event that such taxes are assessed for a tax year extending beyond the term of the Lease, the obligation of Lessee will be prorated. 32. INTENTIONAl!..L Y LEFT BLANK. 33. INTENTIONALLY LEFT BUNK. 34. AMERICANS WiTH C!SAB!UTIES ACT. The parties are alerted to the existence of the Americans with Disabilities Act, which may require .cm;tiy struciural modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. 35. LESSOR'S UABiLrnl'. In the event of a transfer of Lessor's titie or interest to the property during the term of this Lease, Lessee agrees that the g.antw3 nf such title or interest will be substituted as the Lessor under tl1is Lease, and the original Lessor will be released of all further liabflity; provided, that all deposit", wi:; be transferred to the grant,,,,,. 36. ESTOPPEl'.. CERTiFiCATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acimowledge, and deliver to Lessor a statement in writing: [1] certifying that n',;', Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in fuil foiT'; and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any, and [2J acknowiedging that there CT',) not, to Lessee's knowledge, any uncured defaults on the part of Lessor, or specifying such defaults if any are claimed, Any such statement may be concluslvr',;~' relied upon by any prospective buyer or encumbrancer of the premises. (b) At Lessor's option, Lessee's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: [1] that this Lease is in ful! force and effect, without modific.ation except as may be represented by Lessor; [2] that there are no uncured defaults in Lessor's performance; and [3] that not more than one month's rent has been paid in adv<lnce. (e) If Lessor desires tD finance, refinance, or sell the premis€'-s, or any part thereof, Lessee agrees to deliver to any lender or buyer designated by Lessor :"r:, financial statements of Lessee as may be reasonably required by such lender or buyer. PIli financial stat.ements will be received by the Lessor or the lencer cr buyer in confidence and wi!! be used only for the purposes set forth. P~'I~e 2 ~){ :J Property Address '11825 Dublin Blvcj" Dublin, CA .JI#I.. .... ~, , 31. GUARANTY. For valuable consideration, the undersigned Bob Johnson and Jacqueline Johnson ("Guarantor") unconditionally guarantees to Landlord ai! i obligations of Tenant under the herein Lease including payment and performance of both monetary and no monetary obligations during the Original T arm and ail extended terms and any holding-over period hereunder. The failure or revocation of this guaranty as to any guarantor whether by reason of death, bankruptcy Dr" otherwise or failure to perform under this guaranty shall be in default under this Lease. Landlord may without notice or consent of the guarantor and without affecting his liabilities hereunder modify, waive, release, renew, extend or otherwise change the terms or obligations under this Lease, release or substitute or modify the Obligations of any guarantor or any security for performance of this Lease, or assign this guaranty or the Lease. A separate action or actions may be brought against the guarantor whether or not any action is brought against Tenant or any other guarantor or any security for performance. Guarantor waives to tho fullest extent permitted by law, the benefit Of any statute of limitations affecting their liability hereunder. Guarantor waives any right to require the Landlord to proceed against "tenant, or any security or pursue any other remedy in Landlord's power, and waive any defense of Tenant other than payment in full, and waiv,", any rights arising out of an election of mmedies by Landlord. Guarantor waives rights to notices of any kind including demands for perfonnance, notices of prot8sl and/or creation of new obligations under this Lease, Guarantor shall not recover any amount owed to them by Tenant until all amounts owed to landlord and if. default under this Lease have been paid. --- ~on rVv.J{ff"'- 38. ENTIRE AGREEMENT. The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties, The following aI's a part of this Lease: I The undersigned! Lessee acknowledges that he or she has tholl'Ol.Ighly read and approved each 01\' the provisions contained in this Offell", a~l1d agre; to the terms and conditions specified. Lessee '.?' Date q r" 6> r D ~ '..- ' Receipt for deposit acknowledged by La"", Uil::U, jJ"~AJt0'- D". ~ Date (} "' 7,<:, -1"- dU -:U_ ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and agrees to lease the premises on the terms and conditions set forth ~essor Xfi}1w/w.,~ Date r;be;;.r , I lessee acknowledges receipt of a copy of the accepted Lease on (date) r.LJ r ~C)r. l(initiaIS)U\J F') ::.s '. o~ ?, If ..... '1 COMM5RCIAIL1.5ASe AND DEPOS5T r -::IVED FROM Jm of $ 3.460.00 o"...1(s), evidenced by { Check Al! Video Repair hereinafter referred to as LESSEe::, Three Thousand Four Hundred Sixtv ******************"'************************************************'****"*'******** . as a deposit which will belong to Lessor and will be applied as follows: TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY Rent for the period from 6Qr:iL.:L to April 30, 2006 $ 1.730PL $ :;; 1.730.00 Security deposit (not applicable toward last month's rent) :;; 1.730.00 $ $ 1.730.00 Other $ $ S TOTAL $ 3,460.00 $ $ 3.460.00 In the event this Lease Is not accepted by the Lessor within_1.!L- days, the total deposit received will be refunded. Lessee offers to Lease from Lessor the premises situated in the City of Dublin , County of Alameda State of California. described as the premises located at 11811 Dublin Blvd. Dublin, CA consisting of approximately 1.730 square feet, upon the following terms and conditions: 1. TERM. The term vvHl commence on Aoril 1, 2006 and end on March 31, 2007. 2. RENT. The total rent will be :;; 20,760.00 at:;; 1.730.00 per month (based on first year's rates)payable on the 1st day of each month. AU renb will be paid to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite 200. Danville. CA 94526 or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within -E- days after due date, Lessee agrees to pay a late charge of $ ..lill.-Plus interest at _JL % per annum on the delinquent amount Lessee further agrees to pay $ ~foreach dishonored bani, check. The late charge period is not a grace period, ,,'ld Lessor is entitled to make written demand for any rentif not paid when due. 3. USE. The premises are to be used for the operation of Repair and Sales Audio and Video EQuil?ment and for no other purpose, v.1thout prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment 0: any tenant in the building. 4. USES PROHIBITED. Lessee will not use any portion of the premises for purposes other than those specified. No use wi!! be made or permitted to be made upon the premises, nor acts done, which will increase the existing rate of insurance upon the properly, or cause cancellation of insurance policies covering thz property. Lessee will not conduct or permit any sale by auction on the premises. 5. ASSiGNMENT AND SUBLETTING. Lessee will not assign this Lease or sublet any portion of the premises without prior written consent of the Lessor, which will not be unreasonably withheld. Any such assignment or subletting without consent will be void and at the option of the Lessor, will terminate this Le3S.~, 'RDlNA.NCES A.ND STATUTES. lessee will comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities noVl in . or which may later be I~.force, regarding the use of the premises. The commencement or pendency of any state or federal court abatement proceeding ,ding the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. 7. M.P.lNTENANCE, REPAiRS, ALTERATIONS. Unless otherwise indicated, Lessee acknowledges that the premises are In good order and repair. Lessee vAil, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, electrical wiring, plumbing and heating and air " conditioning installations, and any other system or equipment. The premises will be surrendered, at termination of the Lease, in as good condition as receive::, normal wear and tear excepted. Lessee will be responsible for all repairs required, except the following which will be maintained by Lessor: roof, exterior walls. <inc' structural foundations . lessee 0 wil!, o will not maintain the property adjacent to the premises, such as sidewalks, driveways. lawns, and shrubbery, which would otherwise be maintained by Lessor. No improvement or alteration of the premises will be made without the prior written consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, Lessee wm give Lessor at least two (2l days written notice in order that lessor may post appropriate notiC'"s~o avoid any liability for liens. t, Ei'.J:TRY AND UI'lSPECT!ON. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon reasonable notice for tho purpose of inspecting the premises, and wiB permit Lessor, at any lime within sixty (60) days prior to the expiration of this Lease, to place upon the premises c.ny usual "For Lease" signs, and permit persons desiring to Lease the premises to inspect the premises at reasonable times. S. iNDEMNiFICATION OF L.ESSOR. Lessor will not be liable for any damage or injury to Lessee, or any other pers9n, or to any property, occurring on tr.:,,, premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to indemnify lessor for any expense incurred by Lessor in defending any such claims. 1 O. POSSESSION. If Lessor i2 unable to deliver possession of the premises at the commencement date set forth above, lessor will not be liable for any damage caused by the delay, norwill this lease be void or avoidable, but Lessee will not be liable for any rent until possession j" delivered. Lessee may tefTn\n,Jt~) this lease If possession is not delivered within .Jl_ days of the commencement term in item 1. 11. LESSEE'S iNSiJR.lUI!CE. Lessee, at his or her expense, will maintain plate glass, publlc liability, and property damage insurance insuring Lesses ancl Lessor with minimum coverage as follows: 1 Million Doliars General Liability Lessee will provide Lessor with a Certificate of Insurance showing lessor as additional insured. The policy will require ten (i0) day's written notice to L:)::;s~'r prior to cancellation or material change of covel'age. 12. I..ESSOR'S HNSlIJllANCE. Lessor will maintain hazard insurance covering one hundred percent (100%) actual cash value of lhe Improvements thrmjJi'VJ~;t the Lease term. Lessor's insurance will not insure Lessee'spersonal property, Leasehold improvemenls, or trade fixtures. i 3. SUaROGATIO~. To the m;;:;'mum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and ai! rifJhl.,: of subrogation which might otherWiS&6:([St. '14. UTIliTIES. Lessee agrees that he or she will be responsib!r for the payment of all utilities, including water, gas, electricity, heat and other services d"li'!:?f31 to th e prem ises I except: ******************"A'***~(*****""'******~:"!d:******'f":' ,~^~ ******************,********'ir************"l>-* 'I:********~'II**********************'I'''id<** . "i S. SIGNS. Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of the premises without the express writts:1 ""~sent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. . ABAIIIDONlMENT OF PREWUSES. Lessee will not vacate or abandon the premises at any lime during tivs term of this Lease. If Lessee does aband'~n c, '"te the premises. or is dispossessed by process o~ law, or otherv.1se, any personal property belonging to Lessee left on the premises will be deemed tv L .) abandoned, at the option of Lessor. P~agG 1 (r) II .: , l Property Address 11811 Dublin Blvd. Qublin, CA 17. CONDEMNATION. If any part of the premises is condemned for public use, and a part remains which is susceptible of occupation by Lessee, this Lease will, as to the part taken, terminate as of the date the condemnor acquires possession. Lessee will be required to pay such proportion of the rent for the remaining term as th.e value ~f the pr-emises remaining bears to the total value of the premises at the date of condemnation: provided, however, that eIther party may. at hie, or ner option, terminate thIS lease as of the date the condemnor acquires possession. In the event that the premises are .condemned in whole, or the remainder is not susceptible for use by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee wlil be entitled to retain any amount awarded to him or her for his or her trade fixtures and moving expenses. 18. TRADE FIXTURES. Any and all improvements made to the premises during the term will belong to the Lessor, except trade fixtures of the Lessee. L.essee may, upon termination, remove all his or her trade fixtures, but will pay for all costs necessary to repair any damage to the premises occasioned by the removal. 19. DESTRUCTION OF PREMISES. tn the event of a partial destruction of the premises during the term, from any cause except acts or omission of Lessee, Lessor will not promptly repair the premises. Such partiai destruction will temlinate this Lease, 20. HAZARDOUS MATERiALS. Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of such substances that are customarily used in Lessee's business, and are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or toxic materials regulated under any environmental laws or regulations applicable to the property. lessee will be responsible for the cost of removal of any toxic contamination caused by Lessee's use of thf:! premises. 211. iNSOLVENCY. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee. wiil constitute a breach of this Lease by Lessee. ' 22. DEFAULT. In the event of any breach of this Lease by Lessee, Lessor may, at his or her option, terminate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination: (b) the worth at the time or award of the amount by which the unpaid mnt which would have be:;n earned after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for'ail the detriment proximately caused by the Lessee's failure to perform his or her obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce ail of Lessor's rights and remedies under the Lease, inclUding the right to recover the rent as it becomes due under the Lease. If saId breach of Lease continues, Lessor may. at any time thereafter, elect to tenninate the Lease. These provisions wiil not limit any other rights or remedies which Lessor may have. 23. SECURITY. The security deposit will secure the performance of the Lessee's obligations. Lessor may, but will not be obligated to, apply all or portions cf the deposit on account of Lessee's. obligations. Any balance remaining upon termination wlU be returned to Lessee. Lessee will not have the right to apply the seculity deposit in payment of the last month's rent. 24, DEFOSn' REFUNDS. The balance of all deposits will be refunded within three (3) weel{s (or as otherwise required by law), from date possession is delivered to Lessor or his or her authorized agent, together with a statement showing any charges made against the deposits by Lessor. 25. A TIORNEY FlEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevailing party wit! be to reasonable attorney fees. 25. WAIVER.. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NOT[CES. Any notice which eilher party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee anhe premises, or to Lessor at the address shown in Item 2, or at such other places as may be designated in writing by the parties from time to time. Notice wili be effective five (~i days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 28. HOL!l:lINC OVlER. Any holding over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent or $ 2,595.00 , payable in advance and otherwise subject to the terms of this Lease, as applicable, until either party will terminate the tenancy by giving the, other party thirty (30) days written notice. 29. TiME:. Time is of the essence of this Lease. 30. HEmS, ASSiGNS, SUCCESSORS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 3"1. TAX INCREASE. In the event there is any increase during any year of the term of this Lease in real estate taxes over and above the amount of such taxes assessed for the tax year during which the term of this Lease commences, Lessee will pay to Lessor an amount equal to 100 % of the increase in taxes upon the land and building in which the leased premises are situated. In the event that such taxes are assessed for a tax year extending beyond the term of the Lease, the obligation of Les,;ee wHlbe prorated. 32. COST OF UVING INCREASE. The rent provided for in Item 2 will be adjusted effective upon the first day of the month immediately following the expiration of 12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter, in accordance with changes in the U.S. Consumer Price Index for All Urban Consumers (1982-84 '" 100) ("cPt"). The monthiy rent will be increased to an amount equal to the monthly rent set forill in Item 2. multiplied by a fraction the numerator of which is the CPI for the second calendar month immediately preceding the adjustment date, and the denornimrtor of which is the CPI for the second calendar month preceding the commencement of the Lease term; provided, however, that the monthly rent will not be less tiTJf1 the amount setforth in item 2. 33. InteltttionaUy Left mank. 34. AMEfWGANS WITH OlSA!3I!..RTIES ACii. The parties are alerted to the existence of the Americans with Disabilities Act, whictl may require costly structurai modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. ;'5. LESSOR'S UABH..ITY. In the event of a transfer of Lessor's title or interest to the property during the term of this Lease, Lessee agrees that the gr,c1ii:e6 '"j' such title or interest will be substituted as the Lessor under this Lease, .and the original Lessor '1\111 be released of all further liability; provided, that all deposi~:s \,vi! be transferred to the grantee. 36. ESTOr,>r:<EI.. t..':::Il1'.-rGiFH::;:';"TE. (a) On ten ("10) dayS' prior written notice from Lessor, Lessee will execute. acknowledge, and deiiver to Lessor a statement in writing: [11 certifying thzt trl:" Lease is unmodified and in fu\! force and effect (or, if modified, stating tl,e nalure of such modification and certifying that this Lease, as 50 modifi~d, is in full fow; and effect), the amount of any security deposit, and the date to whicl! the rent and other charges are paid in advance, if any, and [2J acknowledging that tllere ."'" not, to Lessee's knowledge, any uncured defaults on the part of lessor, or specifying such defaults if any are claimed. Any such statement may be conclusiVGiy relied upon by any prospective buyer or encumbrancer of the premises. _ , (b) At Lessor's option, Lessee's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: I'll that this Lease is in fuil torce and effect, without modification except as may be represented by Lessor; [2J that there are no uncured defaults in Lessor's performance; and [31 that not more than one month's rent has been paid in advance. . . , (e) If Lessor desires to finance, refinance, or sel! the premises, or any part thereof, Lessee agrees to deliver to any lender or buyer deSignated by Lessor ,.')e:-l financial statements of Lessee as may be reasonably required by sl1ch iender or buyer. AHfinandal statements will be received by the Lessor or the lender '.;, buyer in confidence and wi!! be used only for the purposes set forth. r3fJe? Property Address 11811 Dublin Blvd. Duolin. CA .;;NTIRE AGREEMENT. The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties. The following are a part of this Lease: The undersigned Lessee acknowledgEs that he or site has thorol.ll91h1y rasa aruil approved! eachef the previsions contained in tb"" OilIer, an~" grees to the. 'l:e ~rms and conditiol'ls specified!. ~_-+ Date J.'-!7~ () Co Lessee Date Receipt for deposit acknowledged by __ Date ACCEPTANCE or accepts the foregoing Offer ax.d agrees to lease the premises on the terms and conditions set forth abcnrsc. Lessor -J Date -V/'7/66 Lessee acknowledges receipt of a copy of the accepted Lease on (date) ~ [-----.1 (initials) (1c~~';J9 3 (!: 2 , . 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29~ 30. 31. ~=j2 . 33. 34. 3f:i . 36. 37. ~~8 . 3Q v. DUBLIN SQUARE LEASE William L. Barnett dba: ALL VIDEO REPAIR 11831 Dublin Blvd. Dublin, CA 84566 INDEX TO LEASE I, Page 1 1 1 2 2 :3 1. <) <... . Parties Premises Lease Term Rent. Security Deposit Use and Prohibited Uses Signs Business Hours Parking and Common Areas Name Alterations Maintenance and Repairs Compliance with Government Regulations Land Use Permit. etc. Etltry by LESSOR Damage or Destruction of Premises 'Assignment and Subletting Insolvency or Bankruptcy Remedies for Breach Attorney's Fees Surrender of Lease Holding Over Surrender of Premises on Expiration of Term Insurance Indemnification Utilities Ta:xes Exclusivity and Other Tenants Subordination Transfer or Reversion Rules and Regulations Time is of the Essence No Joint Venture or Partnership Notices Waiver of Breach Captions Successors and Assigns Interpretation Invalidity of Particular Provision Governing Law 18 18 18 19 19 19 3. 4. 5. 6. 7 . 8. 9, 10. ll. 12. 13. 7 8 8 10 10 10 12 13 13 13 13 15 15 15 16 16 16 17 17 17 18 , I Ii 3 3 4 5 6 6 i\~ I . L --, / , , DUBLIN SQUARE LEASE William L. Barnett dba: ALL VIDEO REPAIR 11&31 Dublin Blvd. Dublin. CA 94566 1. Partie,;;; This lease is made this 29th day of January, 1996. by and between BERKELEY LAND CO., INC., herein called "LESSOR". and ylilliam L. Barnett, herein called "LESSEE". 2. rremisee For and in consideration of the covenants and agreements hereinafter mentioned to be kept and performed by the parties. the LESSOR hereby leases to LESSEE, and LESSEE laasse from LESSOR. a portion of the building area on real property situated in the City of Dublin. County of Alameda. State of California. and more particularly described as follows: Approximately 1600 net square feet located at the Dublin Square. The street address is 11831 Dublin Blvd.. Dublin, California ("the leased premises") 3 . Leqse TEa:ro A. CQmmence~. February 1, 1996. This lease rene1^ral term shall commence on B. Ini..t.isJ. Term. The intial term shall be for a period of five (5)years. or .January 31, 2001. C. Ootion. In addition to the initial term. LESSEE shall have one (1) option to extend the lease for an additional consecutive term of five (5) vears. D. Exer~~_;)ption. In the. event LESSEE desires to exercise the option. LESSEE shall give to LESSOR written notice of exercise of option at least one hundred eighty (1801 days before the termination cf the existing lease term. If the option is ~x~~cis~d, th~ l~~s~ sh~ll continue upon all of the same terms and (:!I~J~d~-t.:lI~ms, (i;i;'tt~~p-C felt" the :t.~8nt, ..:rhic-h ahall be set forth below. 4. Rent A. Monthly Rent. The initial base monthly rent shall be: 1st Year $ 800.00 per month 2nd Year $ 880.00 J); (t11 3rd Year $ 960.00 4th Year $1. 040.00 5th Year $1. 120.00 The first month's rent. payment for February, 1996, shall be due upon execution of this Lease. " As a special consideration, during the first year (1996) the LESSEE shall pay no triple net charges. B. Due Date and Late Charges. All rental payments shall be payable by LESSEE on or before the first (1st) day of each month, in advance, and delinquent if not received by the LESSOR by the tenth (10th) day of each month. In the event that the minimum monthly rent is not received by LESSOR within t~en (10) days of its due date, LESSEE agrees to pay to LESSOR as additional rent a late charge of five percent (5%) of the rental amount due. C. Q:Qtion PeY'io~J;.. In the event the LESSEE exercises the option referred to in 3C. above. to extend the lease renewal term for an additional five (5) years. the initial rent at the commencement of each additional five (5) years shall be adjusted to the then current market value. However. this adjustment shall not resul t in a rental decrease. The rental adjustment shall be accomplished by the mutual written agreement of the parties. if possible. If the parties and their legal representatives cannot rRach such an agreement within sixty (60) days prior to the commencement of the option period. the then current rental market value shall be determined by the average of three (3) written apprais81s from licensed and experienced real estate appraisers. One such appraiser shall be selected and paid by each party. The third appraiser shall be selected by the first two appraisers and paid one-half (1/2) by each party. 5. Security Deposit On the initial Lease, the LESSEE depo6 i ted with LESSOR the sum of $80.J. 00 . On this Lease Rr::mewal. this depos i.t shall remain in effect 'Vzithout change and shall be security for the faithful performance of all the terms of this Lease. The Deposit shall be retained by LESSOR without interest and may be applied against any charges. debts or damages due LESSOR from LESSEE. 2 ,:2 6. Use and ProhibLted Usea The leased. premises shall be used solely for repair and sales of audio and video equipment. 7 LESSEE shall not . without the prior written consent of LESSOR. use or permit said premises. or any part thereof. to be used for any purpose or purposes other than the purpose or purposes for which the said premises are hereby leased. No use shall be made or permitted to be made of the said premises. nor acts done. which will increase the existing rate of insurance upon the leased premises. or any part of the leased premises. unless LESSEE shall pay the difference between normal insurance rates for similar businesses and such increased rate. which additional costs shall be deemed rent herein and paid to LESSOR on demand. Nor shall LESSEE cause a cancellation of any insurance policy covering the leased premises or any part of the leased premises, nor shall LESSEE keep. use or sell. or permit to be kept. used or sold, in or about the premises. any articles which may be prohibited by the standard form of fire insurance policies with extended coverage. LESSEE shall. at its sole cost and expense. comply with any and all requirements pertaining to said premises. of any insurance organization or company necessary for the maintenance of reasonable fire and public liability insurance. covering any part of the leased premises. LESSEE shall not commit, or suffer to be committed. any waste upon the premises or any nuisance. or other act or thing which may damage the leased premises or disturb the quiet enjoyment of owners or tenants of adjoing parcels of real property. 7. ~, The LESSEE has already installed an exterior outdoor sign that matches the specifications of the other Dublin Square tenants. 8. B~ LESSEE shall continuously, during the entire lease term and any renewal thereof, conduct and carrv on LESSEE"s business in the leased premises and shall keep the premises open for business and cause such business to be conducted thereon during each and every business dav for such number of hours each day as is customary for bu'sinesses of like character being conducted in the area in which the leased premises are located; provided. however, that this provision shall not apply if the leased premises shall be closed and the business of LESSEE therein shall be temporarily shut down on account of strikes. lockouts or causes beyond control of LESSEE. 3 9. Earkin~ qpd Common Areap, A. D.e..f.initjons The term "Shopping Center" means the entire area within the outer property limit shown on the plot plan attached hereto and marked Exhibit "A" and all other pieces or parcels of land at any time or from time to time designated by LESSOR for use as part of the Shopping Center. Any additional property designated by LESSOR for use as part of the Shopping Center shall be included until such designation shall be revoked by LESSOR. Any portion of the Shopping Center that may be taken by eminent domain. private purchase in lieu of eminent domain. or dedicated for public use. upon such taking. purchase or dedication. shall be excluded. The term "accommodation areas" means all areas an.d facilities outs ide the premises that are provided and designated by LESSOR for general use and convenience of LESSEE and other LESSEES of all or any part of the Shopping Center and their respective employees. customers. and invi tees. Accommodation areas include. but are not limited to. parking r.:.reas. pedestrian sidewalks and landscaped areas. The 8i te plan of the Shopping Center is attached hereto as Exhibit "B". and the LESSOR reserves the right from time to time to make changes in the shape. IS ize. location. number and extent of improvements. bUildings. accommodation areas. parking layout or areas. and other improvements and to eliminate or add any improvements or buildings to any portion of the Shopping Center; provided. however. LESSOR shall comply Hi th Sub-paragraph B. beloi'!. During the term of this Lease. LESSOR shall operate. manage. and maintain all parking areas. road and accommodation areas within the Shopping Center. The manner in which such areas and facilities shall be maintained and the expenditure for maintenance. shall be at the sole discretion of LESSOR. provided that LESSOR is obligated to reasonably maintain the areas and facilities for the benefit of the Shopping Center. LESSOR shall manage the accommodation areas at direct cost to LESSOR. LESSOR shall use good faith efforts to economize on costs, consistent with good bus iness practices. The use of such areas and facilities shall be subject to such reasonable regulations and changes as LESSOR hereby grants to LESSEE. during the term of this Lease. the right to use. for the benefit of LESSEE and LESSEE's employees. agents. customers and invi tees in common with other tenants of the Shopping Center. their employees. agents. customers and invitees. all commen areas. including the accommodation areas. the parking areaE:. and road. subject to any rights. powers and privileges resrved to LESSOR. No parking fees shall be established and no meters shall be used. 4 I~ -") -,:::. ~ _..t B, J2.arkj nf! Area Within the limits of the Shopping Center. LESSOR shall have hard surfaced. marked, properly drained. adequately lighted and landscaped parking area or area. together with the necessary access thereto. LESSOR reserves the right to change the parking areas and parking layout from time to time. The parties anticipate that the area will be devoted principally to parking. wi th reasonable provisions for landscaping'1 access and other accommodation areas. C. Lessee's Parking LESSEE and its officers, agents and employees shall park their cars only in areas specifically designated for that purpose by LESSOR from time to time. Within five (5) days after request by LESSOR. LESSEE shall furnish to LESSOR the automobile license numbers assigned ot its cars and the cars of all its officers. agents and employees. LESSEE shall not at any time park or permit the parking of its trucks vehicles or the trucks or vehicles of others. adjacent to loading areas so as to interfere in any way with the use of such areas. nor shall LESSEE at any time park or permit the parking of its trucks or the trucks of its suppliers or other. in any portion of the parking lot not designated by LESSOR for such use by LESSEE. This paragraph requires a diligent effort in good faith by LESSEE. and is not an absolute duty. D. Lessee's Share of Parking & Common Area Expense During this Lease. the LESSEE shall pay its prorata share of the common maintenance total cost where the leased premises floor area bears to the total rental floor area in the shopping area. 10. N~ LESSEE covenants that from and after the expiration or earlier terminati.on of this Lease. it shall not operate under or use any name which shall include the name of the Shopping Center or the building. The provisions of this par-agraphshall apply to any person. firm or corporation which controls or is controlled by LESSEE~ 5 11. Alterations A. Limitation LESSEE shall not make or suffer to be made any alterations of the premises or any part thereof. at a cost in excess of $1.000.00. without the written consent of LESSOR first had and obtained. and any additions to or alterations of the said premises. except movable furniture and trade fixtures. shall become a part of.the realty and belong to the LESSOR at the expiration of this Lease or earlier vacancy of the leased premises by LESSEE. B.' li.Q Mechanic' s L i.ens LESSEE shall keep the leased premises and property in which the leased premises are 6i tuated. free from any liens for work performed. materials furnished or obligations incurred by LESSEE. In the event LESSEE shall fail to do so. LESSOR may (but is in no way obligated to) pay any claims for any labor. services. materials. supplies or equipment alleged to have been furnished to or for LESSEE. payment for which may be secured by mechanic's or materialmen ^ s liens against the premises or LESSOR' s interest ~:;,herein . Notwithstanding the foregoing. however. LESSEE shall have the right to contest the validity of any such claim. If LESSEE so elects to contest any claim. LESSOR shall not pay said claimant if LESSEE furnishes such security as LESSOR in its discretion may require to protect LESSOR's interest. LESSEE agrees to execute and file a notice of completion as provided in Section 1183.1(f) of the California Gode of Civil Procedure within ten (10) days after the completion of any contrac.t for any work of improvement. LESSEE agrees to pay the fees and other charges of completion. In the event LESSOR elects to pay any such claim. LESSEE shall reimburse LESSOR wi thin ten (10) da::l's of demand therefor. In the event LESSEE fails to reimburse LESSOR within ten (10) days. the lease . shall be deemed in default in the same fasbion as if LESSEE had not paid rent due in that sum. 12. Majntenan~\..~r..EL A. LESSEE 'EL...D~.JL-,-':19..iI'..tengj,1c;e and P.epa~..J:..Q.. LESSEE shall a.t its own cost. keep. repo.ir. replace. and maintain the leased premises and every part thereof. (excluding the foundation. roof and exterior walls which LESSOR agrees to repair and maintain). including glazing of store front. heating. air conal~ioning. electrical. plumbing. ventilating. fire sprinkling system. if any. and fire extinguishers. and the interior of the premises. in good and sanitary order. condition and repair. LESSEE hereby waives all right to make repairs of any kind at the expense 5 of LESSOR,as provided in Section 1942 of the California Civil Code and all rights provided for by Section 1941 of said Code. In the event LESSEE shall fail to keep said premises in good sanitary order. condition and repair, LESSOR may. after giving LESSEE ten ( 10) days' written notice demanding that LESSEE comply with the requirements of this paragraph, make or cause to be made such repairs or other work as necessary to restore the premises to good and sanitary order, condition and repair. Any expense incurred by LESSOR in the exercise of its option shall be paid by LESSEE immediately upon demand therefor by LESSOR. Regarding heating and air conditioning, LESSEE shall maintain filters. freon, oil. etc. LESSOR is wholly responsible for any major repair or replacement costs. B. LESSOR's Repair Expenses 'The foundation. roof and exterior walls of the building in which the leased premises are located shall be repaired and maintained by LESSOR at LESSOR's direct expense. LESSOR shall also repair and maintain the exterior painting, plumbing and electrical systems in the common areas and building exterior. 13. Compliance with Government Regulations. Land Use Permit. etc. LESSEE shall. at its sole 60st and expense, comply with all of the municipal. county, state. federal. and other governmental or guasi-governmental authorities now in force, or which may hereafer be in force, pertaining to the leased premises. and shall faithfully observe in the use and occupancy of the premises all municipal and county ordinances and regulations, state and federal statutes and regulations and rules and regulations of any other governmental or quasi-governmental authority nOH in force or which may hereinafter be in force. The judgment of any court of competent Jurisdiction, the decision of any arabitrator or the admission of LESSEE in an action or proceeding against LESSEE, whether LESSOR be a party thereto or not. that LESSEE has violated occupancy of the premises. shall be conclusive of that fact as between LESSOR and LESSEE. Notwi thstanding anything to the contrary in the foregoing, LESSEE may contest the validity of any such ordinance, statute. rule or regulation or the applicability thereto to LESSEE, as LESSOR shall in LESSOR's contest (including any appeals for any intermediary court, boards or authorities) shall prove unsuccessfuL LESSEE shall forthwith comply with said 8rdinance, statute, rule or regulation. 7 1..--, lL i j! 14. Entrv bv LESSOR LESSEE shall permit LESSOR and its agents to enter into and upon said premises at all reasonable times for the purposes of inspecting the same or for the purpose of making alterations or addi tions to any portion of the leased premises. including the erection and maintenance of such scaffolding. canopies. fences and props as may be required or for the purpose of posting notices of non-liabili tv for al terationf.i. additions or repairs or for the purpose of placing upon the" leased premises any usual or ordinary "For Sale" signs. or for the purpose of exercising its option as hereinabove provided for ~akingrepairs to the leased premises which are the responsibility of LESSEE and which LESSEE fails to make. or for the purpose of exhibiting the premises to any prospective purchaser or mortgagee of the leased premises or any portion thereof or for the purpose of exercising any right or option herein granted LESSOR . without any rebate of rent and without any liability to the LESSEE for any loss of occupation or quiet enjoyment of the premises thereby occasioned. LESSEE shall permit LESSOR. at any time within ninety (90l days prior to the expiration of the term, to place upon said premises any usual or ordinary .'To Let" or "To Lease" signs and to permit ~Ghe entry during said period of LESSOR for the purpose of exhibiting the premises to any prospective tenant. Such entry shall not interfere with normal business operations. 15. ~J~:o. of :e.remi..s~A A. In the event of a partial destruction of the premises during the lease term resulting from any of the causes insured against by the California Standard Form fire insurance policy with extended coverage endorsement. which said partial destruction does not render the leased premises untenantable. LESSOR shall repair or otherwise restore said premises as speedily as possible, provided. however. that in such repair or restoration. LESSOR shall not be obligated to incur any expense in excess of the insurance proceeds payable as a result of said partial destruction. "Such partial destruction shall in no way annul or void thia Lease. except that LESSEE shall be entitled to a proportionate reduction of rent while such repairs or restorations are being made. such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by the LESSEE in the leased premises. If such partial destruction shall cause the premises to become untenantable. or in the event of a total destruction of the premises. or if the partial destruction shall result from a cause not insured against as aforementioned. or lZ the insurance proceeds payable do not adequately provide funds for 8 ~~ , repair or restoration. the LESSOR shall give written notice to the LESSEE wi thin ninety (90) davs after the occurrence of such destruction or LESSOR's election either: (l) To repair the premises. usinganv available insurance proceeds and supplying additional funds: or. (2) To terminate this Lease. receiving and retaining all insurance proceeds free of any claim by LESSEE. as a result of or arising out of such termination. B. In the event the~LESSOR is obligated or elects to repair or restore damage to the leased premises. such repair or restoration shall encompass only that portion of the leased premises which was originally constructed or added bv LESSOR and shall not involve the repair or restoration of anv fixtures or alterations installed by LESSEE unless those fixtures or alterations are part of the realty and belong to LESSOR and are covered by LESSOR's insurance policy. C. For the purpose of this paragraph. the leased premises shall be deemed untenantable in the event more than thirty percent (3Q%) of the total square footage of the improvements erected upon the leased premises are destroved unless LESSEE and LESSOR agree otherwise in writing. D. In repairing or restoring the leased premises. LESSOR shall not be liable for any delays resulting from strikes. or other labor disputes. acts of the elements or other causes outside LESSOR's control. E. LESSOR agrees that LESSOR will obtain. pay. the premiums on and maintain inforce a California standard form fire insurance policy with extended coverage endorsement. insuring the leased premises for an amount at least equal to the requirements of the holder of any first mortgage on the leased premises. . F. In the event of any dispute between LESSOR and LESSEE relative to the provisions of this paragraph. thev shall each select an arbitrator. and the two arbitrators thus selected shall select a third arbitrator. and the three arbitrators so selected shall hear and determine the controversy and their decision thereon shall be final and binding upon both LESSOR and LESSEE. who shall bear the cost of such arbitration equally between them. 9 16. LESSEE shall not voluntarily assign this Lease or any interest therein and shall not sublet the said premises or any part thereof, or any right or privilege appurtenant thereto, or suff~r any other person (customers. suppliers, guest. agents and servants of LESSEE excepted) to OCCUPy or use the said premises or any portion thereof. without the written consent of LESSOR. which consent shall not be unreasonably withheld. A consent by LESSOR to one assignment, subletting, occupation or use by any other person shall not be deemed to be consent to any subsequent assignment, subletting, occupation o'r use by another person. Any such ass ignment, subletting or occupation or use without the written conser;t of LESSOR shall be void. and shall. at the option of LESSOR, constitute a breach of this Lease. giving rise to all remedies of LESSOR for breach or default set out in this Lease. This Lease shall not be. nor shall any interest therein be assignable as the interest of LESSEE by operation of law without the written consent of LESSOR. Any transfer or shares of stock by LESSEE in excess of twenty- five percent (25%) of the outstanding shares shall be deemed an assignment, requiring LESSOR's prior ..rritten consent. LESSOR's consent shall not be unreasonably withheld. LESSEE shall pay LESSOR's reasonable attorney's fees and costs incured in considering a request for consent to assignment or subletting. In the event that LESSEE assigns or sublets this Lease at a higher rental than the rental set forth herein, one-half (1/2) of such increased rental shall be paid to LESSOR. , 17. Inso]vencv or BankruP~GY The appointment of a receiver to take possession of all or substantially all of the assets of LESSEE. or a general assignment by the LESSEE for the benefit of creditors, or any action taken or suffered by or against LESSEE under any insolvency or bankruptcy remedies of LESSOR for breach of this Lease, giving rise to all remedies of LESSOR for breach or default set out in this Lease. For the purpose of this paragraph, the occurrence of any of the foregoing events to or any prohibited action taken by any person or enti t;y guara.nteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 18. R.e.n.~J~~ In the event of any breach of this Lease, or any covenant, condition or provision hereof by LESSEE which continues after LESSOR has ~iven ten (10) days' notice to LESSEE of such breach as herein provided. the LESSOR, besides other rights or remedies i~ may have. shall have the rights and remedies set forth below. (If 10 i"'1 11- the breach concerns maintenance or repair of the premises. such maintenance or repair must be undertaken within thirty (30) days and proceed to conclusion without unreasonable delay.) A~ LESSOR shall have the immediate right of entry without prior notice or demand and may remove all persons and property from premises. removing silchpropertyand storing the same in a public warehouse or elsewhere at the cost of and for the account of LESSEE. -. B. Should LESSOR elect to enter. as here~n provided. or should LESSOR take possession pursuant to the legal proceedings or pursuant to any notice provided for by law. LESSOR may either: (1) Terminate the Lease: or (2) From time to time without terminating this Lease and without the necessity of notifying LESSEE of the fact. relet said premises or any part thereof for such term or trms (which may be for a trm extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as LESSOR in its sole discretion may deem advisable with the rif2:ht to make alterations and repairs to said premises. Upon each such releti~inF.' LESSEE shall be immediately liable to pay the LESSOR in addition to any indebtedness other than rent due hereunder: (a) The costs and expenses (including attorney's fees and any real estate commission) of such reletting and of such alt.erations and repairs incurred by LESSOR: (b) The amount. if any. by which the rent reserved in this lease for the period of such reletting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the leaed premises for such period of such reletting; (c) LESSEE shall: (1) Pay such amounts to LESSOR immediately upon demand thereof. or (2) at the option of LESSOR such liability shall be paid as follows: Rents received by LESSOR from such reletting shall be applied first. to the payment of any indebtedness. other tb.an the fixed minimum and percentage rate due hereunder from LESSEE to LESSOR: second. to the payment of any costs and expenses (including attorney's fees and any real estate commissions) of such reletting: third. to payment of fixed minimum percentage rent due from and unpaid by LESSEE hereunder. The ; i ... J. residue. if any. shall be held by LESSOR and applied in payment of future installments of fixed minimum and percentage rent as the same may become due and payable hereunder. If LESSEE has been credi ted with any rent to be received by such reletting under option (1) and such rent shall not be promptly paid to LESSOR by the new tenant. or if such rentals received from such reletting under option (2) during any month be less than that to be paid. LESSEE shall immediately uPon demand therefor pay any such deficiency to LESSOR. No such entry or taki~g possession of said premises by LESSOR shall be construed as an election on its part to terminate this Lease unless a written notice of such election to terminate be given to LESSEE or unless the termination thereof be decreed by a court of competent jurisdiction. Notwithstanding any such reletting without termination. LESSOR may at any time thereafter elect to terminte this Lease for such ]:. cevious breach. Should LESSOR at anytime trminate this Lease for any breach. in addition to other remedies LESSOR may have. LESSOR may recover from the LESSEE all damages LESSOR m&v incur by reason of such breach. including the cost of recovering the premises. reasonable attorney's fees, real estate commiss ions and including the worth at the time of such termination of the excess. if any, of th0 amount of rent and charges equivalent to rent reserved ~n the lease for the remainder of the s"tated term over the then reasonable rental value of the premises for the rremainder of the stated term. all of which amount shall be immediately due and payable from LESSEE to LESSOr:.. Any entry by LESSOR pursuant to the ~rovisions of this Lease shall be allowed bv LESSEE without any interference and LESSOR shall not be liable for damages for any such entry, or be guilty of trespass or forcible entry or detainer. The notice of breach required by this Lease shall be ten (10) days if the breach consists of the failure to pay money. and thirty (30) days if the breach consists of anything other thah the failure to pay money. 19 . .l!,jtQr:...~.Ls Fees If either party shall commence an aC~lon to enforce any of the terms or provisions of this Lease. including actions for unlawful detainer or an action for declar,:=ttory rellef to determine or construe this Lease. then the losing party in such action shall pay to the prevailing party such sums as the court may determine as just and reasonable as and for attorney's fees. 1 ') ...l"w 20. Su:o::ender of' Lease Voluntary or other surrender of this Lease by LESSEE or mutual cancellation thereof, shall not work a merger. and shall. at the option of LESSOR. terminate all of any existing subleases or subtenancies. or may. at the option of LESSOR. operate as an ass ignment to it of any and all such subleases or subtenancies. Nothing in this paragraph shall be construed as a consent by LESSOR to the creation of such sublease or tenancies. 21 . Iicld.lng Over Any holding over at the expiration of the term of this Lease. with the c6nsent of the LESSOR. shall be construed to be a tenancy from month-to-month at a fixed minimum rental equal to the last month of the lease term. and shall otherwise be on the terms and conditions herein specified. 22. Surrender of Premise~ Expiration0f Term On the last da.Y, or sooner termination of the lease term. LESSEE shall quit and surrender the premises. broom-clean. in good conditiion and repair (reasonable ....:rear and tear and damage by acts of God excepted), tOR:ether with all .13.1 terations . additions and improvements which may have been in, to or qn the premises, except movable furniture and/or unattached movable trade fixtures installed at the expense of LESSEE. Specifically. all built-in cabinets, counters. desks and shelves shall remain and becoIDe the property of , LESSOR. 23 . Insuranc~ During the entire term of this Lease. LESSEE at its own expense. shall: A. PubLic LUb:i 1 i tv Iu.sur?1J,ce Provide and keep in force for the benefit of LESSOR and LESSEE comprehensive general public liab~lity insurance policies. in insurance companies and in form. of coverage satisfactory to LESSOR. protecting LESSOR and LESSEE against any and all liability, in an amount of $1.000.000.00 per occurrence to LESSOR and LESSEE for both bodily injury. death or property damage incurred by reason of LESSEE' 6 operation in, on or about th.e prerniees. Said policies shall provide for at least thirtv (30) davs' written notice to LESSOR prior to cancellation or material change. The LESSOR shall be named as additional insured on the policy. 13 :'2. ,...- [ '~:>::' LESSOR reserves the ri~ht to increase the r~quired amount of public liability insurance f ,ro time to time dur~ng this lease if LESSOR reasonably believes a~\jitional coverage is required. If LESSEE shall fail to carry any such policies. LESSOR. at its 0:[: ion. may, but shall not be obligated to carry Buch policies: and the amounts paid by LESSOR. with interest thereon at the legal rate from the date of payment. shall become due and payable by LESSEE. as additional rent. with the next succeeding in6tallm~nt of rent. Payment by LESSOP:' of any such preniums or the carrying by LESSOR of any such policy shall not be, nor be deemed to be. a waiver or release of the default of LESSEE with respect thereto. or the right of LESSOR to institute summary proceedings and/or take s1"'.ch other action as may be permissible hereund.er as in the case of ddfault in payment of net rent. B. Certjficate of InsurancA At the commencement of the term of this Leas8. LESSEE shall deliver to LESSOR certificates of insurance manifesting required coverage. and at least tl:-drty (30) days prior to the expiration of each such policy or policies, LESSEE shall pay the premiums for renewal insurance and within such period shall deliver to the LESSOR the original policy or duplicate original with an endorsement tnereon marked "paid" and/or duplicate receipt or otheor information satisfactory to the other. evidencing payment thereof. If the original policy of any such insurance shall be required to be delivered to the beneficiary of any mortgage or deed of trust to which this Lease is subjct and subordinate, the duplicate original or certificate of such policy shall be delivered to LESSOR upon request. LESSEE shall have the right to maintain required insurance under blanket policies. r 'J. 1Li..r:.f'J..Il,E;~C e LESSOR agrees to purchase and keep in full force. fire and extended coverage insurance covering the leased premises as determined by LESSOR"s insurance company"s appraisers. which shall be for full replacement value. LESSEE shall reimburse LESSOR.within fifteen (15) days of receiving a billing therefor. for LESSEE"s prorata share. LESSEE shall maintain replacement value insurance en LESSEE"s property located on the Property, D . t10 rJi..e 'rJ~'o'en,.R ,s t. i ()r~ ~'1i th regard to any Harker r s by LES3EE. the LESSEE agrees tha.t e:ubrogation against the LESSOR (or agents). arid such insurance shall subrogcttio1:15 Compnsatj_on insurance carrlea it ;::hall waive the righi~ of its employees~ assignees or pro'r.ride for SUetl wai ~.rer ()f 14 E. W~r of Subrogation Wi th regard to any insurance reguired to be carried by LESSOR and LESSEE pursuant to this Lease. both LESSEE and LESSOR agree that neither shall have the right of subrogation against the other (or its employees. assignees or agents). and such insurance shall provide for such waiver of subrogation. 24. Indemnification " LESSEE shall indemnify and hold LESSOR harmless and defend LESSOR from any and all claims of liability for any injury or damage to any persOn or property whatsoever incurring in. on or about the leased premises or any part thereof. other than claims of liability arising from the negligence or wrongdoing of LESSOR or LESSOR's agent. 25. UtiU tieEl LESSEE shall pay directly for water, gas. electricity and telePhone services and all other utilities supplied to the leased premises. LESSEE shall also pay for the removal of all garbage from-the leased premises. 2 6 ."T..ax.as.. A. Personal property Tax~s LESSEE shall pay before delinquency any and all taxes . assessments. license fees. and public charges levied. assessed or imposed and which become payable during the lease term upon LESSEE's fixtures. furniture. appliances, personal property installed or located on the premises. B. Real Propert~ Taxes--Lessee's Pror~ta Shar~ LESSOR shall pay before delinquency any and all municipal. county or state real property taxes assessed against the leased premises and the parcel of land upon which the leased. premises are situated. LESSOR shall also pay any local or municipal taxes assessed on rentals or rental income. LESSEE shall. during the term of this Lease, pay its pro rata share of all such real property taxes for the Shopping Center where the leased premises are located in the proportion to the rentable floor area that LESSEE"s premises bears to the total rentable floor area of all building~ from time to time completed in the Shopping Center. ~:rhetheror not leased. LESSEE shall pay to 15 LESSOR within fifteen (15) days after LESSOR submits a bill therefor. LESSEE's share of such real property taxes. LESSOR shall submit to LESSEE a true copy of each current tax bill. and a statement showing the total square feet of all rentable buildings in the parcel represented by that tax bill. 27. E~clusivitv anG Other Tenants LESSOR agrees that during the time this Lease is in force. LESSOR will not lease ot);1.er premises in the Franciscan Center solely as a like business. 28. Subordination LESSEE agrees that this Lease shall be subordinate to any mortgages or trust deeds that may hereafter be placed upon the premises. to any and all advances made or to be made under them. to the interest and all obligati.ons secured by them and to all renewals. replacements and extensions of them. Provided. however. the mortgagee or beneficiary named in any such mortgage or trust deed shall recognize the Lease of LESSEE in the event of foreclosure. if LESSEE is not in default under the terms of this Lease. If any mortgagee or beneficiary elects to have this Lease superior to the lien of any such mortgage or deed of trust. whether this Lease is dated or recorded before or after the mortgage or trust deed. LESSEE, shall. at any time and from time to time. upon not less than ten Cl0) days' prior request by LESSOR. execute. acknowledge and deliver to LESSOR a statement certifying that this Lease is unmodified and in full force and effect (or if there have been modifications. that the same lS in full force and effect as modified and stating the modifications) and the dates to which the fixed rent and other charges have been paid in advance. it being intended any E:uch statement; delivered pure.~uant to this subparagri3.ph may be relied upon by any prospective purchaser or encumbrancer (including ssignees of either) of the Shopping Center. 29 . T crj,n.r~.Q~..JlZ;._r:.s..i.Qn. In the event of a sale or conveyance or other transfer by LESSOR of LESSOR's interest in the leased premises, the came shall operate to release L~SSOR from any future liability, herein contained in favor of LESSEE. and in such event LESSEE agrees to look solely to the responsibility of the successor in interest of the LESSOR in and to this Lease. If any security be giv-en bv LESSEE to secure the faithful per~ormance of all or any of the covenants of this.Lease on the part of LESSEE. LESSOR may transfer 16 .1-.1-' and/or deliver the security as such. to the purchaser of the reversion. in the event that the reversion be Bold. and thereupon LESSOR shall be dischar~ed from any further liability with reference thereto. 30. Ru]~s and Regulationa LESSOR reserves the right to issue such reasonable rules and regulations. relating to the use and occupancy of the leased premises and the access, p~rking and common areas of the Shopping Center as LESSOR may deem appropriate for the best interest of the LESSEE and other tenants in the building. Such rules and regulations may include. with limitation: . A. The right to close. if necessary. all or any portion of the common area. sidewalks. roads. access roads. malls and other facili ties to such extent as may. in the opinion of LESSOR, be legally sufficient to prevent dedication thereof or the accrual of any rights of any person or of the public therein and no such closing shall be deemed an eviction of LESSEE nor shall any rebate or diminution of rent result from such closing: B. The right to control time for loading and unloading of merchandise and the placement and times of disposition of garbage, trash and debris: C. The right to designate employee parking areas. LESSEE shall abide by such rules and cooperate in the observance thereof. Such rules and regulations shall be binding upon LESSEE upon delivery of a copy thereof to the LESSEE. The rules and regulations may be amended by the LESSOR from time to time with or without advance notice. and all amendments shall be effective upon delivery of a copy of them to the LESSEE. All rules promulgated pursuant to this paragraph shall be approved by LESSEE before "taking effect. 31. TimA js of the ~ Time is of the essence of this agreement and each and every part thereof. 32. N~L2int Ventllr~ or Partner~ Nothing herein shall be construed as. nor ohall this Lease create a joint venture or partnership by and between LESSOR and LESSEE. 17 33 . 1'1 o.:ti,~ All notices, statements. demands, requests. consents. approvals. authorizations. offers. agreement.. appointment or designations under this Lease by either party to the other shall be in writing and shall be deemed duly given and served upon the other party if delivered personally to the recipient. upon such delivery. and if sent by mail. upon deposit in the mails. postage prepaid and addressed as follows: To the LESSOR: B~rkeley Land Company, Inc. 1211 Newell Ave.. Suite 120 Walnut Creek. CA 94596 fro the LESSEE: William L. Barnett 11831 Dublin Blvd. Dublin. CA 94568 34. Waiver. of Br~aGb. No waiver of any condition or covenant of this Lease or of the breach of any condition or. covenant shall be taken to constitute a waiver of any subsequent breach of such condit on or covenant. or to justify or authorize the non-observance on any other occasion of the same or any other condition or covenant hereof. nor shall the acceptance of rent by the LESSOR at any time hereof be construed as a waiver of such default or of the LESSOR's right to terminate this Lease on account of such default, nor shall any waiver or indulgence granted by the LESSOR be taken as an estoppel against the I1ESSOR., 35. Captionl':L The paragraph and subparagraph captions of this Lease are for the convenience only and are not a part of this Lease and do no.t in any way limit or amplify the terms of provisions of this Lease. .36 . ~~~$ 8nd Ass is:n..a This instrument shall be binding upon and shall inure to the benefit of the respective parties. their successors. assigns. legal representatives. prOVided that this clause shall not permit any assignment contrary to the provisions prohibiting assignment hereln. 18 , - !6 '-' 37. Interpretati on The language in all parts of this lease shall in all cases be construed as a whole and simply according to its fair meaning and not strictly for nor against the LESSOR or the LESSEE. and the construction of this lease and any of its various provisions shall be unaffected by any claim. whether or not justified. that it has been prepared wholly or in substantial part by or on behalf of the LESSOR. .I, 38. Invali,di tv of Part icular ProYi.e;...iQn. If any term or provision of this Lease or the applicability thereof to any person or circumstance shall. to any extent. be invalid or unenforceable. then the remainder of this Lease. or the application of such term or provision to persons other than those as to ';.thich it is held inV'alid or unenforceable shall not be affected thereby and each term and provision of this Lease shall be 'Jalid and be enforced to the full extent permitted by law. 39. Governi~~ Law This~Lease shall be interpreted and construed according to. and the conduct of the parties hereunder shall be governed by, the laws of the State of California. LESSOR: LE.S~ BERKELEY LAND COMPANY. INC. Frank Sabatte William L. Barnett dba: ,f,\.LL VIDEO RE,PA}R ~Cz9--'-' /,. 11// ~ --;' ~ By: {/V ~-./'-.... /- (~, William L. Barnett By: Dated: Dated: ,) ) ('" - 9 6 ""- -- tf'_ 0 /' I'~ ~ Its: ~pident Its: Tenant 19 -..- 1rh"" ! ?':' i:c /- ~. </r-" June 28, 2005 All Video Repair 11831 Dublin Blvd. Dublin, Ca. 94568 IVlike IV1ikulich Berkeley Land 321 Hartz ave, Danville, Ca. 94526 p; 1i'/fikp ....1..<. 1\ 1 "", The enclosed check for $750 vvill pay for the month of July, for the back vvarehouse we are renting frorn your company. I have enclosed receipts for the improvelnents we have done to the bunding. I am proposing this vviH offset the rent '\J\fe have not paid for the last three months, for the warehouse, Going forward, this anlount win cover the entire rent for the warehouse, on a month to month basis. Please let me know if this n'1eets with your approvaL ....y ou can reach me ouMy cell phone, 925-872-4200, Thanlc you, /:7( , ;/ /'7/1 f/~fr!)/ ~. ". . ..~_u,__---- . ~~:,.~,.- I ~~';"'~ / .o~/ ---..........- . Bin B &."11ett i-; -7''''' 0 --- 't~. J . 's \) {) -- ------ .----- - ~. ----;; j.,t.,o..... <, ri- ~. & I, ! {) J-~. lYifJ;M[''''--' (V ./ ; I !" v~4/j N\,lV~."r\}.;t['~..-4" if' '" ~.:I' t,. Be.rh_~;],e~y :':ompan.y Ann: lvfi~' 1 ::.1 1 Nev'/dl A-.";; \/alnut Creek, eA 9)596 pJ] 'ideo Repair II f"~] Dublin Blvd i CA_ 9456g ]'viarch 2g, 2001 I>ear M:1I.:::.;:, We be vacating the building April30J\ 2001. This letter serv;;;s as out th1"1:y (30) day nOL Our new location will be 7429 k"llador Valley Blvd. Our opening date will be l'Lpril16th. 'VI!e have enjoyed the Ul]~ aftIle building and thank you for your cooperation. I (;0 have a protlosaL I would 111::e to keen rentmr- tne build-in;;: until yOU find another _ .0" .:. ~._ ...." tenant or t1:,,; buildin::T is tom dovvn. I would be wlllinrr to 'Oava reduced rent of$5GO.OO ',.' "-' _..1 per monthJn a momil...to...month basi::. \Ve would be usin the building as an extn, location until we- were asked to leave. Given written notic . we could Vf:' cate the property within]i1een (15) days. Please call me Monday, April :.nci and lee me know. I c2nbe lcached on my cell phone at (925) 872-4200. r decide not to accept my offer, we v..rill vacate; the property by April 30th, '::WOO. Sincerely, /7) ~ . I k /f / ( / Ie.. t/ -", II A/ v~,~ /f('7 _'f.~"~~_ . I 1/\ ,.--. \.~ ......,---- Ir _..t.-( -- . / """-'",.,-,~ ''''~/ E: ill Barilett Owner BB/de l' t LfO{) COMMERCIAL LEASE AND DEPOSrr .-- . "EIVED FROM A BETTER RESTORATION. INC. :um of$ NJA ( N/A ~ Jllg to Lessor and will be applied as follows: hereinafter referred to as LESSEE, .dollars), evidenced by N/A . as a deposit which will TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY Rent for the period from to Security deposit (not applicable toward last month's rent) Other $ $ $ $ $ $ $ $ $ TOTAL $ $ $ In the event this Lease is not accepted by the Lessor within--1!l.- days, the totai deposit received will be refunded. Lessee offers to Lease from Lessor the premises situated in the City of Dublin . County of Alameda State of California, described as the premises located at 11845 Dublin Blvd. Dublin. CA consisting of approximately 600 square feet, upon the following terms and conditions: 1. TERM. The term will commence on November 1, 2005 and end on October 31. 2008. 2. RENT. The total rent will be ~4.000.00. Rent will be $ 600.00 per month from November 1, 20P5 to October 31, 2006. Rent wUl be $650.00 per month from November 1,2006 to October 31, 2007, and will be $750.00 per month from November 1, 2007 to October 31, 2008. Rent will be payable cnthe 1 st day of each month. All rents will be paid to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite 200. Danville, C~ 94526 or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within -EL- days after due date, Lessee agrees to pay a late charge of $ ~lus interest at __.fl.5o per annum on the delinquent amount. Lessee further agrees to payS --1.2..--for each dishonored bank check. The late charge period is nota grace period, and Lessor is entitled to make written demand for any rent if not paid when due. 3. USE. The premises are to be used for the operation of Office Use and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenant in the building. 4. USES PRO!1lIBHTEVl. Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permitted to be made upon the premises, nor acts done, which win increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering the property. Lessee will not conduct or permit any sale by auction on the premises. 5. ASSIGNMENT AND SUBLETTING. Lessee will not assign this Lease or sublet any portion Of the premises without prior .'Jritten consent of the Lessor, which wfll not be unreasonably withheld. Any such assignment or subletting without consent will be void and at the option of the Lessor, will terminate this Leas(^;. r "~!OII\!lANCES AND STATUTES. Lessee will comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities noVl in or which may later be In force, regarding the use of the premises. The commencement or pendency of any state or federal court abatement proceeding <0 .ring lhe use of the premises will, atthe option of the Lessor, be deemed a breach of this Lease. 7. r\liAINTtENANCE, REPAiRS, AI.. TERATIONS. Unless otherwii3e indicated, Lessee acknowledges that the premises are in good order and fE~pair. Lessee will, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, eiectricalwiring, plumbing and heating and air conditioning installations, and any other system or equipment. The premises will be surrendered, at termination of the Lease, in as good condition as received, normal wear and tear excepted. Lessee will be responsible for all repairs required, except the following which will be maintained by Lessor: exterior walls, and structural foundations and: N/A . Lessee will be responsible for theirshare of the taxes. No improvement or alteration of the premises will be made without the prior wlitten consent of the Lessor. Prior to the commencement of any substantial repair, improvement, or alteration, Lessee will give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability far liens. 8. ENTRY IU-lD UI!ISPECTHON. Lessee wUl peonit Lessor or Lessor's agents to enter the premises at reasonable times and upon reasonable notice for the purpose of Inspecting the premises, and will permit Lessor, at any time within sbay (50) days prior to the expiration of this Lease, to place upon the premiso3 Einy usual "For Lease" signs, and pelmit persons desiring to Lease the premises to inspect the premises at reasonable times. 9. INDEMNHFECATICHl!! OFL.IESSOR. Lessor wiflnot be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the premises. Lessee agrees to hold Lessor.harmless from any claims for damages arising out of Lessee's use of the prerriises, and to indemnify Lessor for any expense incurred by Lessor In defending any such claims. . '10. POSSESSION. If Lessor is unable to deilver possession of the premises at the commencement date set forth above, Lessor will not be liable for any damag<:> caused by the delay, nor will this Lease be void or avoidable, but Lessee will not be liable for any rent until possession is delivered. Lessee may terminate this L<:>ase if possession is not delivered within ...!!.- days of the commencement teon in Item 1. 11. LESSEiE'S KNSUP...ANCE. Lessee, at his or her expense, will maintain plate glass, pUblic liability, and property damage insurance insuring Lessee and Lessor ",.nth minimum coverage as follows:. 1 Million Dollars Genera! Liabilitv . Lessee will provide Lessor With a Certificate of Insurance showing Lessor as additional insured. The policy wilt require ten (10) day's written notice to Les."io!' prior to canceHationor material change of coverage. 12. LESSOR'S iNSUfUil.fIIClE. Lessor will maintain hazard insurance covering one hundred percent (100%) actual cash value of the Improvements throughout the Lease term. Lessor's insurance will not insure Lessee's personal property, Leasehold improvements, or lrade fixtures. 13. S!LutiROGATIONl. To the maximum extent permitted by Insurance polir,:ies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might othslWise exist. 'il4. UTiii..&THES. Lessee agrees that he or she will be responsible fOf the payment of aU utilities, inducting water, gas, electricity, heat and other services deliv"w,d to the prernises, except: ******i.-***,*""*****+'****1r***+:******'i;****,"*******1rlr****'k*id-Jd:*'/ddr****p:*******'+it<'[(_*****?d'dc***,*****"iJ',((w'W'il*******'i:*******-;.:**t'*****~'r**-t..!tw . 15. SiGNS, Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wal!, or window of the premises without the express written consentof Lessor, which will not be unreasonably withheld, and of appropriate govermnental authorities. 15. A.BANDOt~MiEI\!T OF PRE!'!lnSES. Lessee \l>iill not vacate or abandon the premises ai any time during th.e term of this Lease. If Lessee does abandon \J; . '" the premises, or is dispossessed by process of law, or othelWise, any personal property belonging to Lessee left on the premises will be deemed to bE, ;oned, at the option of Lessor. ;;; r \. Paga 'j err ~J ( '-f Property Address 11845 Dublin Blvd. Dublin, CA 17. CONDEMNATION!. If any part of the premises is condemned for public use, and a part remains which Is susceptible of occupation by Lessee, this Lear;e will, as to the part taken, terminate as of the date the condemnor acquires possession. Lflssee will be rt?.quired to pay such proportion of the rent for the rCmalnin8 term as the vaiue of the premises remaining bears to the total value of the premises at the date of condemnation; provided, however, that either party may, at his" or her option, termlrlate this Lease as of the date the condemnor acquires possession. In L'1e event that the premises are condemned in whole, or the remainder hi not susc;eptlble for use by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; exoept that Lessee will be entitled to retain any amount awarded to him or her for his or her tracl0 fixtures and moving expenses. 18, TPJU1E FIXTURE::S. Any and all improvements made to the premises during the term will betong to the Lessor, exoept trade fixtures or the Lessee. Le'SGG0: may, upon termination, remove an his or her trade fixtures, but will pay for all costs necessary to repatr any damage to the premises occasioned by the removal. 19. DESTRUCTION OF PREWUSES. In the event of a partial destruction ofthe premises during the term,from any cause except acts or omission of l.essee, Lessor will not promptly repair the premises. Such partial destruction ,...~il terminate this Lease. 20. iilAZAIiU)OiLIS MA TlEmALS. Lessee wUl not use, store, or dispose of any hazardous substances upon the premises,except the use and storage or Guch substances that are customarily used in Lessee's business, anJ are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or toxic materiais regulated under any environmental laws or regulations applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by Lessee's use of the premises. 211. nNSOll.VcNCY. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of a petition In bankruptcy by or against Lessee, wlii conslitute a breach of this lease by Lessee. '.' 22. Sl>5FAULT. In the event.of any breach of this Lease by Lessee, lessor may, at his or her option, tenninate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unp"id rent \/mich would have been eamed after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform his or her obligations under the Lease or which in the ordinary course of things would be likely to fC"uii therefrom. L('~sor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce ~il nf Lessor's rights and remedies under the Lease, inc!udlng the right to recover the rent as it becomes due under the Lease, If said breach of Lease continues, LEsor may, at ao)' time thereafter, elect to terminate the Lease. These provisions will not limit any other rights or remedies which Lessor may have. 23. SECURI1if. The security deposit will secure the perfOlmance of the Lessee's obligations. Lessor may. but will not be obligated to, appiy ail or poftioml of tne deposit on account of Lessee's obligations. Any baiance remaining upon termination wiil be retumed to Lessee. Lessee will not have the right to apply the se:;wity deposit in payment of the last month's rent 24,. 05?051T REFUNDS. The balance of all deposits will be refunded within three (3) weeks (or as otherwise required by law), from date possesSion i,; delivered to Lessor or his or her authorized agent, together with a statement showing any charges made against the deposits by Lessor. 25. ATTORNEY FEES. In any action or proceeding inVOlving a dispute between Lessor aild Lessee arising out of this Lease, the prevailing party wil! be er{ic:., to reasonable attorney fees. 26. WA!VER. No faiiure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NO'neES. Any notice which either party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the premises, cr to Lessor at the address shown In Item 2, or at such other places as may be designated In v.'liting by the parties from time to time. Notice will be effective five (5) days after mailing, or on personal delivery, or wilen reu,ipt is acknowledged in writing. 23. iiiOLlDftNC OVER, Any holding over afterthe eY4Jiration of this Lease, wIth the consent of Owner, wii! be a month-ie-month tenancy at a monthly rer $ 900.00 , payable in advance and otherwise subject to the terms of this Lease, as applicable, llntil either party will terminate the tenancy by giving Hie other party thirty (30) da;ys written notice. 2~. T~ME. Time is of the essence of this Lease. 3CLHEIRS, t\'SS!GifliS,. SII.ICCiESS1JRS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and sucoessors of the parties. 31. TAX. Lessee wi!! pay to Lessor an amount equal to jQ9 o/!!. of the taxes upon the land and building in which the leased premises are situated. In the eVf [hil" such taxes are assessed for a tax year extending beyond the term of the Lease, the ob!igation of Lessee will be prorated. 32. ni\llTt2iN!Ttm~1A\l.L 'f LEFT Ba..Ai\!~'" 33. AMERiCi~JX!~ W~TH i!ll~$A!:m.JnE$i ACT. The parties ~:te alerled to lho existence of the Americans v.~th Disab1lities Act, which may reQuire costiy structural modificulions. The parties are advised to consult with a professional familiar with the requirements of the Act. 34. ~ESSOR'$ !..~AlH;!LWnr. In the event of a transfer of Lessor's t1tle or interest to the property during the term of this Lease, Lessee agrees that the grant(f , cii such title or interest win be substituted as the Lessor und0r this Lease, and the originai Lessor wi!! be released of all further liability; provided, that ail depusits' el' be transferred to the grantee. 35. ESTOfi"F'"g. CEir~nfi~!CAii"E. (a) On ten, "J) days' prior written notice from Lessor, Lessee wm execute, acknowledge, and deiiver to Lessor a statement in writing: [1] certifying that Ih:2 Lea:';eis unm'"iifiedand'in full force and effect [ur, if' modified, stating the nBture of Guch modification and certifying that this Lease, as so modified, is In full to;';O an" effect), tile amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any, and [2J acknowledging that there ;'\;'8 not. to Lesses's knowledge, any uncured defaults on the parl of Lessor, Of specifying such defaults if any are cialmed. Any such statement may be collciu;c!\\)!y relied upon by any prospective buyer 0: encumb",\llcer of lhe premises. (ll) P.t Lessor's option, Lessee's failum to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: Ii' thal this Lease is in full force and sifeol, without rnodiibstion except as may be represented by Lessor; [2] that there are no uncured defaults in Lessor's performance; ,3nd [3] ~_hot not more than onE-; rnonth's n%jt has been paid in advance. (0) If L8S~;or desires to fin21'lce, ref!nrmcc:, or se!! the premises, or any part thereof, Lesse:0 agrees to dellve:' to any lende!' or buyer designated by Le:;!;:'cr (u flnan~:;ial staten1ents of Lessee as rna\! be ref~son:s"blv requinad by i::.~uch lender or buyer. AH financial staternents wlH be received by U"16 Le~,-8or or the lender c;' buyer in confidence iJnd \iVm be us(}Ci ;n!y for th~ pU~iJ()S8S set forth. /I / { . I , \ Jt (~::-'\ i If lY21> "2,3 Property Address '11845 Dublin Blvd. Dublin. CA 36. EWTIRE AGREEMEN.T. the foregoing constitutes the entire agreement between the parties and may be modified only In writing signed by all parties. The following are a PElrt of this Lease: The undersigned Lessee acknowledges that he or she has tliorougldy mad and approve~ each oii'the provisions (:Ol!lltained iill ~l~u," Offer, and agree~ to the rms and conditions specified. Lessee~ ./. Date ,I/- 2-2 -05 Lessee Date Receipt for deposit acknowfedged by Date I. ACCEPTANCE The umierrsigl'ied Lessor accept:;; the 1foregoin9 Offer and! agrees to Lease the premises on the teums and cOl'lldiUans set forth ab~ml'" , Lessor ~ftiUJ.~ I Date J//z~.r Lessee acknowledges receipt of a copy ofttle accepted Lease on (date) L-J L-J (initials) Page:.3 I' -~ ~:; ~:;. ';"r<'- NCR (No Carbon Required} COMMEf:CUU. LEASE AND DEPOSiT RECEIPT RECEIVED FROM _~LTIl1ATE HOME SOLUTIONS thesumof$ 1.209.59 (One thousand two evidenced by .G.h.er k TOTAL ....... . . . . . . . . . . . . ; . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . $ $ $ -:-:-:----- $ 1,039,73 In the event th is Lease is not accepted by the Lessor within 5 days, the total deposit received will be, refunded. L!"ssee offers to lease from Lessor the premises situated in the City of -Pub1i.!L-_, County of Alameda State of r.81ifoYniA,des.(::ribedasJla.r.eh.Q.lj~f' "'P;q('p bphjnd ~TnllrpPY r.hl1YC'h- D'lhHn Shopping r'E>J'1te,">:;f consisting of approximately L~_ square feet, upon the following terms and conditions: , 1. TERM. The term will commence pn June 17th" 2002. and.4iiAd..oA Continue Mont,h-to-Honth ,_,_.. 2. RfNT. Tt!;) total rent will be $ Nj A ,p'ayable ~t$ 728.00 per month (based on first year's ;etas) payable on the" F~rs t day of each month. All rents will be paid to Lessor or his or her authorized agent, at the following address 1211 Newell Avenue. Sui~e 116 Wa1nutCreek~596 or at such other places as may be designated b_y Le}?j;pr from .time to time. In the event rent is not paid w~thin ~_ days after r!us date, Lessee agrees to Qay a late charge of $ 5.0. vv plus Interest at ' 8 % per annum on the delinquent amount. lessee TUT' ther agrees to pay $-1.j .00 for each dishonored bank check. The late charge pedod is not a grace period, and Lessor is entitled lO make written demand for any ,rent if not paid when due. ' ~ ' , . . ;:;>. USE. The- premises are to be used for the operation of Storage or }"urE,u:uy_" and for no other purpose, without prior written consent of Lessor. Lesse," will not commit any waste upon the premises, or any llui- sance or act which may disturb the quiet enjoyment of any tenant in the building. 4. USES; PROHmITED. Lessee will not use any portion of the premises for purposes ether than those specified. 1"10 use will bfi made or permitted to be made upon the premises, nor acts done, which will increase the existing rate of insurance upon the property, or caw;"! cancellation of insurance j<Jiicies covering the property. Lessee will not conduct or permit any sale by auction on the premises. s. P..SSWNMENT Afl.W SlIBLdTIINC. Lessee wif! not assign this Lease or sublet any portion of the premises without pdor written con- sent of the Lessor, which wili not be unreasonably withheld. Any such assignment or subletting without consent will be void and,. 2: the option of the L8S2:X, will terminate this Lease. 6. ORDINANCES AN[) STATUTES. Lessee wH! comply with all statutes, ordinances, and requimments of all municipal, state 2nd fecLJr:c! authorities now in force, or whiCh may later be in force, regarding the use of the premises. The commencement or pendency of a;,) , state Ct fedeml cc urt abatement proceeding affecting the use of the premises will, atthe option of the Lessor, be, leemed a bresch cf this Lease. 7. I\l1P.H\lTENANCE, IREPAmS, tU..TERATIONS. Uniess oth, "wise indicated, Lessee acknowledges that the premises are In good orde'- and repair. Lessee will, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, elect"- cal wiring, plumbing and heating and air conditioning installations, and any other syst(3ri1 or equipment. The premises wi!! be SUi, rendered, at termination of the lease, in as good condition as received, normal wear and tear excepted. Lessee will be responsihle for all repairs required except the following which wiil be maintained bV Lessor: roof, exterior walls, structural foundaiions (in~iud- ing any retrofitting required by governmental authorities) and: _~ _" Lessee c:::J vvill, ~ will not maintain the property adjacent to the premises, such as sidewalks, driVeways, lawns, and shrubber,/, which would otherwise be maintained by Lessor. No improvement or alteration of the premises will be made without the prior written consent of the Lessor. Prior to the corn- mer.cement of any substantial repair, improvement, or alteration, Lessee will give I_essar at least two (2) days written notice in oede,!. that Lessor may post appropriate not: ces to avoid any liability for liens. 8. ENTRY Ar'm INSPECTiON. Lessee will permit Lessor 6r Lessor's agents to enter the premises at reasonable tilTles and upon rei.iSi able notice for the purpose of inspecting the premises, md will permit Lessor, at ali'{ time within shrry (60l days prior to tho explr;,. tion of this Lease, to place upon the premiseS any usual "For Lease" signs, and permit persons desiring to lease the premises. inspect the premises at reasonable times.' 9. IN[JEMi\!!FICATJO N OF I..ESSQ~. Lessor will not be liable for any damage or injury to L,;ssee, or any other person, or to any prop,',r- tv, occurring on the premises. Lessee agrees to h,)ld Lessor harmless from any claims for damages arising out of Lessee's use of tho premises, and to indemnify Lessor for any expense incurred by Lessor in defending &ny such claims. , itL POSSE~5l0N. If Lessor is unable to deliver posse;5sion of the premises at the commencement date set forth above, Lessor wi!! net b:. liable for an';, damage calJsed by th8 delay, nor \Nil! this Lease be void or voidable, but Lesse1rvvill not be liable for any rent unti! pC""" session is delivered. Lessee may terrninate this Lsc)se if possession is not delivered within ~_ days of the r;ommencementts!\, in Item 1. .,"" . ~<'-",-'e "'\!"'"I"'m"~~ l 'h' I '1' . . I I bl' I' ,... d rt' . . ~ L. ....;;,~_'t;~_t;: ,-,. h :;)q",li'..P"IA!\'.'\i.":~~4 0ssee, at IS or+ tler E;)(DenSe, WI I matnta:n pate Ci assf PU IC(19DUIWtan. pr'ope LV QRr-18ge msurance lfL:-iUi'- ing Lessee and Lessor with minimum coVer89~) as fal/olills: _One. m:Ll,;[:iou_ ($l...e~~.!_:::..~_,__________._..___. Lessee vv{ll Pl<ovide Lessor vvith a Certifi~;o:tE; of Insurance shov\,ing Lessor as additional insured* The pcilicy V\fl!t requ~rr.; t;~;'~ {'; . vVr-tlt. not; cp- to Les;;or DriGf to {;ancl2diat1on or rna.t&rtal Cht:1n(H~ of covera.ge. iSU\1J.\',CZ:. l.cclssc;r wili maintain hazard insurance cO~8ring one hur,dred percent. (100%) actUal cash v[i!u8 of inlproyern[jnts thr'oughout the Leer.:i8 terrn. Lessor's insurance vvilf not insure Lessee's pe.rsonal property, leasehold 1rnp;~OVenHj!^,.) :;'[ or trade. f[)~tuies, Other .........,........................................... . , rr.-=,-' hereinafter r-eferred LO as l.ESSEE, hundred' nine and 59/100 Wiki~******i~*'ht*,**1d"h ** dollars],. , as a deposit which will belong to Lessor and will be applied as follows: TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY 339.73' $ $ 339.73 700.00 $ ------ $ 700.00 $ $ $ $ 1,039.73 Rent fortne period from 6/10/02 to 7/1/02 Security deposit (not applicable toward last month's rent) 1"> *'i: See .At:t"BCrled ExLibit ~IAH of Pre.:mises.. ef~UT!O N: The co.pyright ~avli's of the United States forbid thp unauthorized reproduction or this form hy any means including scanning or computerized formats,' Page 1 of 3 FO RtVi 1 Q"7.'f (7 -S7} COPYRIGHT 1f) t!?~:!.-3'i BY ?~{OF;::3SlDNJ\L PU[";~:SH{~,\G, 880 U\S GAlUN,1.S AVE. $f.:,N f1AFAEL CA Sf.;S03 (415": 472~!964 F,~X{<115i 472.20SS J J.1 Uti t,)1.... . . u .. .NCR (No Carbon Required) Property Address 13. SUBROCATION. To th'e maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all fights of subrogation which might otherwise exist. " 14. UTIUTrES. lessee agrees that he or she will be resp.onsible for the payment of all utilities, including water, gas, electricityr heat and other services delivered to the premises, except: N! A . . . . . ." "/5. SIGNS. Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of 1:h e premises. without the express written ccinsent of Lessor, which will not be unreasonably withheld, and of appropriate governmerlltal authGrities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at aiw time during the term 01 this,Lease.lf. Lessee does abandon or vacate the premises, or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left on the premises will be de.smed to be abandoned, at the option of Lessor. 17. CONDEMNA.TION. If any part of the premises is condemned for public use, and a part remains which is susceptible of occupation by Lessee, this Lease will, as to the .part taken, terminate as of the date the condemnor acquires possession. Lessl$e will be required to pay such proportion of the rent for tlie remaining term as the value of the premises remaining bears to the tota I value of the premis- es at the datfJ of condemnation; provided, however, that either party may, at his or her option, terminate this Lease as of the date the condemnor acquires possession. In the event that the premises are condemned in whole, orthe remainder is not susceptible for USE> by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. All sums which may be payable. or. account of any condemnation will belong solely to the Lessor; except that Lessee will be entitled to retain any amount awarded tCl him or her for his or her trade fixtures and moving expenses. 18. TRADE FIXTURES. Any and all improvements made to the premises during the term will belong to..the Lessor, except trade fixtures of the Lessee. Lessee may, upon termination, remove all his or her trade fixtures, but will pay for all costs necessary to repair lmy damage to the premises occasioned by the removal. . . 19. DESTRUCTIO\\! OF PREMISES. In the evellbq!a partial destruction of the premises during the term, from any cause except acts or omission of Lessee, Lessor will ~~~ repair the premises,~Ilfmj~Y~~~Xl:il!~~~c~1.'tJ ~.~!lc::pXlltOO~WmKllII.1{~~~N:~~!~~~~:gi!l$t~},!j~.~~~e{,R[ m~E{orJx~~:lb:e:ioglm~ill:5!eEl~m:~"T.lt:m::MI.t!Dxbm::~~Xlt1mnm-mpm~Iif~:wll:l:i~~~~q[ xmitht!t{JiIle:ro!i~XImc~Im~I1!GKQM.Tt::wI:fil1Ql:i~l$~~1Ar"~'~m'H-m~m:>tmPi~~1J:iKpaif{l:~~;{ ~Vii~\lff~1j:~~;{li~~~W-tY:l'f~:l€Jl&~~~x. .. 20. HAZARDOUS MATERIALS. Lessee will not Use, store, or dIspose af any hazardous substances upon the premises, except theuDe and storage of such substances that are customarily used in Lessee's business, and are in comptiance with all environmental laws. Hazardous substances means any hazardous waste, substance ortoxic materials regulated under any environmental laws orregula. tions applicable to the property. Lessee wi!! be responsible for the cost of removal of any toxic contamination caused by lessee's use of the premises. , 21. INSOLVENCY. The appointment of a receive'r, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee, will constitute a breach ofthis Lease by Lessee. . . ;;:2. DEFAUI.T. In the event of any breach of this Lease by Lessee, Lessor may, at his or her option, terminate the Lease and recover fron, Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination;.{b} the worth at tho time of awar.d of the amount by which the unpaid rent which would have been earned after termination until the time of the i;;ward exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided;{c} the worth at the time 0'" award of the amOUnt by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessorfor af! the detri.. ment proximately caused by the Lessee's faiIureto perform his or her obligations under the Lease or which in the ordinary course or things would be likely to result therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Lessee's right to possession, and Lessor may enforce all of Lessor's ~ights and remedies under the Lease,inciuding the right to recover the rent as it becomes au." under the Lease. If said breach of Lease continues, Lessor may, at any time thereafter, elect to tsrminatethe Lease. These provisions will not limit any other rights or remedies which Lessor may have. ' 23. SECURITY. The security deposit wi.ll secure the performance of the Lessee's obligations. Lessor may, but will nat be obligated lQ.. apply all or portions of the deposit on account of Lessee's obligations. Any balance remaining upon termination wil! be returned to Lessee. Lessee Will not have the right to apply the security deposit in payment of the last month's rent. 24. DEPOSIT RSFUt\lD$. The balance of all deposits wi!! be refunded within three (3) weeks (or as otherwise required by law), from date possession is delivered to Lessor or his or her authorfZ:ectagent, together with a statement showing any charges made against thD deposits by Lessor. ' 25. A"!'TORNEY F!:ES. In any action or proceeding involving a dispute betvveen Lessor and Lessee arising out of this Lease, the prevan- ing party will be entitled to reasonable attorney fees. 28. WAiVER. NofaHure of Lessorto enforce any term of this Lease will be deemed to be a waiver. ::17. NOTICES, Any notice whic:h either party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee st the premises, 01' to Lessor at the address shown in ltorn 2, or at such other places as may be desighated in writing by the parties frarn time to time. Notice will be effective five (5) days after mailing, or on personal delivery, or when receipt is acknowledged in writinG. 28. !{lOL,pil\m OVER. An7~'fJdi88 over after t~e expiration of this Le~se, wit.h the consent of Own,er, will be a mo~th,-to.imon"th ~enanC)lEt a monthly rent of $~~, payable In .advance and othenNlse subject to the terms ofth!s Lease, as appllcable, untIl eltherp8ny will terminate the tenancy by giving the other party thirty (30) days written notice. 29, TiME. Time is of the essence of this Lease. ~C. HiEl!1S, ASSiGNS, SUCCESSORS. 'f,:~@mooM~Ypij;'8Swif*i1;~~~~~Ji]k\'{iik~"-i-<<}(ff~~}i4t:la>l:J;:i&~~~~JEW0Ki;:;g~;'H':H~~. ;:;'Q . TAX INCRE.i~,S!!:. mttK"K?~,emrJ'bl~u!;iIDdrf'~~F".x!.'jJJI'J!';1~;:.FJ\lJi{yJX4IT0tt:1AC')C~'l.})il~o;X~~D'J):1'JiIDrr'Jli~:;:M@yJQIl&i')@\jX!Xi;1:il~l{~:Jt;':;> ~ . "';. '. ~ .. . .. . ':}k:,L.'fl~' :C~""""f"V6'ReR~' L.:e~HN#lrOO!j'\'{:\;~' 1"ef'.BVl:r(~rxliliWl;j't\':'\i'b' "'d'r_-.!'r:i,\:~. ," ~~~)-.;.-:,'d~~~ ~x-'<lr~}-.:lr.:'(~,:<~=);~:j:,.~;q "...):.:t,~r::r:; ~~-'i~~.1,)-;;,~~,~:;,,~:~.,~ i-N-IHi ;+""'%-li'fl€':5~ ~&8~I'l'3'-0I'.'Jt!'I'e'U, ';:N!l'l-&" ~'E;.J'''''''8l-1;,i" KiXdEM100W&,.j{:fTXi[*.:&illHdWiYJfY~iOO~*f-illf1~XI~i51!lxrc@[~~?li}Hr.1[J1!iX!l!g{i)fB;...Jf]7,lQrnIY:q~&.1(E:f~~ew..n1\i:lb~4ll:e:rm'eAllXI&~,Y;'r.L~";;':;'Li..< . TIX!1(!);.i;X~~t}a,'{JXXi!tm"lliff..Qr,:~;~tt"g,XW~liX:;j)Ql~~X~Dili'\fl:[XjlGi[lW.;}lI:IijXC;;tliV,j}:'Nil?)UL'f.aliBijlKl$3{'i)6X. CAUTiON: The cop.yright laws of the United Stales forbid the unauthorized reproductiun oythiz form by 81lymeuns including scanning or c.omputerir.ud formats. . P3ge 2 of 3 FORM :J 07.2 (7.97) COPVRIGHT@ 1993-97 BY PROFESSIONAL PU8L1SHING, 890 LAS Gft.LLlNAS AVE" SAN RAFAEL. CA 94903 (415147~.1954 FAX{4151 ;72.2059 Im1., PM:. ~F!1:S.$1!i:1Ji.i.i'~,b,o:~ !JJ! PllI!llUSm~~c:; NCR (No Carb.on Required) Property A.ddress _ !}2. COST 0::: LIVING INCREP,SE. The rent provided for in Item 2 will be adjusted.effective upon the first day ofthe m ooth immediately fOl- lowing the expiration of 12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter, in accordance with changes in the U.S. Consuer Price index for All Urban Consumers (1982-84= 100) (UCPI"). The monthly rent wiil be increased to an amount equal to the monthiy rent set forth in Item 2, multiplied by a fraction the numerator of which is the Cf'i for the second calendar month immediately preceding the adjustment date, aild the denominator of which is the CPI for the second cid- endar month preceding the coml}1sncement of the Lease term; provided, however, that the monthly rent will not be less than ti w amount set forth in Item 2. . 33. OPTION TO RENEW_X>400~~~~m1w~~fi~Q;;~~;~P\iIQi;WW*~r n';ID!>~~XM.::IDti!.xz.xxJh~r '~.r". . _ oo~rj'ft~l*, ,:lr"1:.v:vV1,'J....."}\"rfi);.11:YIY'.~r.l"'\1:1I:ilW1:.V_VVV'!Z..\7iVY_i!:\{llJ[Y::I?:V.1i." '. . nr r . r r "(\rrv I .QJ.,,-"""'""""""'a--"i"t'""l'"'.......iH~'H"">(~~__'f,:\>H~"'~ 19". 'f . tiS ,,\:-:!i:j . ~ ~ ~~',"XJX:~. . ~~~~m-ua~~ur~~~:ID~Qi;Zd;d l1iIDfiOEm.\illii{l&i}fiAliqilliKilGli''M:li~.KiiJl1f;a~d}]il''~~~. ~4. AMERICANS WITH tnSABILiTliES P.cr. -j-he parties are alerted to the existence of the Americans With Disabilities Act, which may cequire costly structural modifications. The parties are advised to consult with a professional familiar with the requirements of th'~ A~ . 1);5. LESSOR'S UABillTY. In the event of a tcansfer of Lessor's tItle or interest to the property during the term of this Lease, Lessee agrees that the grantee of such title or interest will be susbtitituted as the Lessor undel- this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the gmntee. 36. eSTOPPIEl. CE!tT!~ICArE. . (a) On ten (101 days' prior wrirtt,e' notice from Lessor, Lessee will execute, aclmovvledge, and deliver to Lessor a statement in wrIt- ing: [1] certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying thatthis Lease; as so mocjified, is in full force and effect), the amount of any security deposit, and the date to which the nL It and other charges are paid in advance, if any;,and [2] acknowledging thijt there are not, to Lessee's knowledge, any uncUi"d defaults on the part of Lessor, or .specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective buyer or encumbrancer of the premises. . (b) At Lessor's optic", Lessee's failure to deliver such statement within such time will be a material breach of this Lease or wlli 00 conclusive upon Lessee: [1] that this lease is in fuli force and effect, 'without modification except as may be represented by lessor: [2J that there are no uncured defaults in Lessor's performance; and [3] that not more than one month's rent has been paid in advanc". . (c) If Lessor desires to finance, refinance, or sell the. premises, or any part thereof, Lessee agrees to deliver to any lender or buyer designated by Lessor such financial statements of Le'.'3ee as may be reasonably required by such lender or buyer. All financial s1:;:,ie. ments wil! be received by the lessor or the lender or buyer in confidence and will be used onlv for the purposes set forth. 37. ENTIRE AGr<EEflllr~Nr. The foregoing constitutes the entire agreement between the partie, and may be modified only in writin:;: signed by all parties. The following exhibits are a part of this Lease: Exhibit ,1'>.: ~..a.s..e.rlJ~mises Exhibit B:__ Exhibit C: The undersigned lessee acknowledges that he o. sIla has thoroughly read and approved each of the provisions contained in this 011:::,. and agrf'SS to)};l~ms and conditions specified. " . /..1...... . I Les,,~~' __ D'''~~ ,,,'" ~C< /~_ DatL4b'Z;6:C> F-leceipt for a;{p~sit acknowiedged by . . Date L ACCEPTANCE The tmdersigned l.ess,or accepts the foregoing Offer and agre!;E...to lease the premises 011 the terms and conditions set forth above. Nf?.d.I!CE: The amou:nt or rate of rea! estat8 cornnisslons is notf:ixed by law. They are se:t..QV each broker individu.. --'-"""'d .'- . ~ ." ,. ~. .'-----,.,"~ - ------- - . ~-.....- an m <iY1H':-nt~1ab:le.J..}etweenme--c;WTri.;hC,!U~" _______ --------.... '. ~---' ------ _________. n . ~ . Tne Lessor flQreestooay to ~---.....- .. ... ~___.~:--___. ___.~ tne broker m thIS ,rcl-R$..actlon, ttresumOr"S:= ~--=--=j)ner-flices ienrlereo a~la-a\illlonzp..$..{}roRer-to oaQuct s81cIsU~$11'rfhe depositrecet'7BGl-fr..Qm Lessee. ::>-_ _.. In th.e event th:~.!~ase is ~x.L~nded for a ~!e~init:3.f;l>9'ri~ of time or on a mont;;z:,manth basis afte.r exr::.ir~tion O~~T-i~1 tel:io, . Le:';sor will_J:5J,;(d;d..r'O.B:.:er..a.C'....ar.l.dit.r.Q.naLco.mf'..::w::Sl.e-r.i. (___.~J.nfJ:b.e..toiaLraata' TOr the extended penod. 1 hiS W.I'T,mISSIOf1 Wfl! De (;,.1 and p9-v..d:rie at the co mmencement or t.he-'5Xtendeci period if for a fixE,~,or jf on a month-to-ro.Gfltl~[S, at the termination c;! L~fels occupanc'/or orle-year~w.8tF~er..r~,~ e3[Tre~--'- .~/ In any action fa I' c:ornrnissiOrl, the' prevailing partywilt he entitled to rea20nable attorney f,ees. YJf,~,f.J,-4: A ,II;. r IJ, . _ r;, , Lesso: _J i1ty~.I_/.~.j/j:L~;:'.~::.:..:.~_____. l)3tC \-. (....-- L3ssor ___,___. ._~___. Date__.,~..__._~ Lessee acknowledges receipt of a copy of the accepted Lease on (cL::te! ____._____._____ [__.1' l-J {initbl"f G.I\UTION: The cfipyri!]ht iti1v'ls of the UnHed" States forhid the Ufi8uthoriL:ed !'eproduc.~tinn of thi:; ferm by any. rricans tnciutling sca.uning or cornputsfizeili fnrmats. P;:'f~e 3 of- 3 F':O Hfil1 1 07 ~3 {7~97} CG:PYRlGHT It; i~s3-~r; J'{ pnOFtS~lONAL PUBLiSHING, 880 U.$ C,l\,t.U~gS AVE., SAN AAFAEL, CA !if,SD3 {415i4n~lflfi4 FAJ~ (4\5} 47'2:<W6lJ [Rev. b';f ---=. -_..-~...'.- ! Dato __._..,___'~'" e-\1 ~t::? F; EJs,;;;~~ ~ ',?~1\ fr\:;~~~: ii,,, .. '. ! I i;; 19 I I I L ,-- r , ~'" '\" :' i t''''''".. I~"'~>~j / ,/ I d~,~ " <~';l " ! il'~~(~~~,~~~!i / :" ~ ~"~:::-;-:-:~l :' ;" """"W'P~', '~'i: '''''' ":-n'~.3<.: ~Ii , J~<'\~"""" '<~I' i t]'" ''"''~' ,,,,"'<::~ . . B: <'"'" \." "" ~ ~ ' """""''''''-''-'''''''''''''.'''''~-1~i:!fjT7T) / ( .. I .. LIl - . "II .V', . ".. - , : i ! f .L ~ ' '~.. a : . , I. ... i . -':_:_:_:-;'T~ ~I' = ----.I '4'" <!B'-O' !----. II II EXHIBIT' A 10'..{l" o c OJ r ~ Z' Vl W ' ~ [.I.) >-rJ,O c;, ~ 2.tl'.\0" I~ " ,I, .Po:' .... ./ /~J ,/' l . ~ r , /1 ' ,: f I / / jfJ :/ /1 FIRST AlVIENDMENT TO COMJVrERCIAL LEASE AND DEPOSIT RECEIPT Parties Tllis First i\mendment to Commercial Lease and Deposit Receipt is entered into between Al'IDREVl :HONTER, doing business as uLTIMATE HOME SOLUTIONS ('Lessee") and BERKELEY LJ.J'ID CO., INC., a Cal~tomia corporation ("Lessor") on the date set forth below. Purpose This Agreement is made with reference to the following: A. On June 12, 2002, Lessee and Lessor entered into a Commercial Lease and Deposit Receipt whereby Lessee leased from Lessor 1,456 square [;,;t of storage spz:ce (the "Current Space") (a description of which is set forth on Exhibit A, attached hereto) located behind the JOllilley Church in the Dublin Shopping Center owned by Lessor, a copy ofwllich Lease is attached hereto as EyJUbit B (the "Lease'). B. Under il'1e terms of the Lease, Lessee is a month-to-month tenant at an agreed monthly rental of $728 per month ($.50 per square foot). C. Lessee wishes to vacate the CUlTent Space and occupy instead an adjoining storage space consisting of 5,042 square feet (the "l\feVI Space") (a description of which is set forth on Exhibit C, attached hereto) on all the S<L"J.1e temlS and conditions set forth in the Lease, with the execution of rent. as set forth below. 1. . Agreement Thereiore, it is AGH.EED AS FOLLOWS: 1. ;[(evitaJs Are Tl1~: The recitals set forth above me true and correct. 2. Current Suace to be Vacated: On or before Seutember 15, 2002, Lessee shall ____.~'-_~"_--_-_ J.. vacate the Current Space, whier: Space sha]] be Iefl in a b:roon:-c1e811 condition. 3. OQ.clIQatjoe of}}eJ:l S:QftCe: occupy and be the tenant Space. on~ SCl)teluber 15~ 2002, Lcsse~; 1 I L.f~ 2~~)~' 4. Rent For New Space: The rent payable by Lessee to Lessor for the Current Space in the sum of Seven Hundred Twenty Eight Dollars ($728.00) per month, shall be increased to Two Thousand Five Hundred Twenty One Dollars ($2,521.00) per month, commencing September 15, 2002. The prorated rent for the New Space from September 15,2002 shall be One Thousand Two Hundred Sixty Dollars and Fifty Cents ($1,260.50). Deducting from that one-half of the monthly rent for the Current Space, which is the sum of Three Hundred Sixty Four Dollars ($364.00), leaves additional rent due for the month of September of Eight Hundred Ninety Six Dollars and Fifty Cents ($896.50), which shall be payable upon execution of this Amendment. Commencing October 1, 2002, Lessee shall pay to Lessor, the full base rent of $2,521.00, set forth above. 'i All Other Terms LeaseDnchanged: All other terms and conditions of the Lease remain unchanged and in effect. BERKELEYLAND CO., INC., a California corporation Dated: (Jet 3- " , 2002 By: Its: vwJL;(~ :Dated: /6 ~ :J ,2002 hJ ~. By: L ~ /' ( '\. ANDREW If(}N'fER, individually and doing business as ULTIIVrATE HOME SOLUTIONS 2 . . i , C' t::~;6 /7- It. c-- ~; ::~> .t;;;i NCR {No CarQon Requlred~ COMMERCUU. fLEAse AND Dt::POS~T RECEIPT RECEIVED FROM ULTD1ATE ROME SOLUTIONS thesumofSl.209.59 (One thousand two evidenced by ..check Rentforthe period from 6/10/02 Security deposit (not applicable toward last month's rent) Other. . . ......,.. .. .................... .......... ......... to 7/1/02 ., , _. ' , hereinafte,r r€ferred to as LESSEE, hundred' nille and 59 / 100 ,<<;~'k**'ld:1~****'Jd:-:l:***i~*** dollars;, , as a deposit which will belong to Lessor and will be .applied as follows: , " TOTAL RECEIVED BALANCE DUE PRIOR TOOCCUPANC\' 339.73 $ $ 339.73 700.00 ------ $ 700; 00 $ $ $ $ , $ $ $ $ $ 1.,039.73 1.039.73 TOTA;.. ...................,................ .,...... ......... In the event this Lease is not accepted by the Lessor within ~_ days, the total deposit received will be refunded. l?ssee offers to lease from Lessor the premises situated in the City Of Duhlin ,County of Alameda..__.._, State of-CaJ ffnrnia, described as Jla:r:.ehol1Qp e:pR('t> bpb'inr1 TOl'rna~.hlJrr'n n,,!.l;n <:::hoPP-ip8 Ce..Il..t..e.:J:;2;7;' consisting of approximately l.illL- square feet, upon the following terms and conditions: 1. TERM. The term will commence pn June 17th", 2002 and-lii...d..o;+ Cont:i,JJ.uB Month-to-MQnth ,_, 2. REN1". The total rent wilt be $ N / A , paY-able at $ 728.00 per month (based on first year's: rates) payable on th:;, Firs t day of each month..AlI rents will be paid to Lessor or his or her authorized agent, at the following address 12J.l Newel] Av:~futite 116 ,Wa1nnt Cr~ek, CA 94596", , or at such other places as may be designated ~y, LSdBor from time to time. In the event rent is not paid wihin 5 clays after dus date, Lessee agrees to blav.a late charge of $ O. plus interest aL~% per annum on the delinquent amount. Lessee fu;' tller agrees to pay $~Q.... for each dishonored bank check. The late charge period is not a grace period, and Lessor is entitled tc make written demand for any rent if not paid when dUB. , ' . 3. lJSS. The premises are "to be used for the operation of Storage of FuruJ.ture. and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nui. sance or act which may disturb the quiet enjoyment of any tenant in the building. , tJ,. uses PROHIB!TED. ~essee will not use any portion of the premises for purposes other than those specified. No use will be made Cir permitted to be made upon the premises. nor acts done, which will increase the ,existing rate of insurance upon the propert':{, or caL'S,S cancellation of insurance poiicies covering the property. Lessee will not conduct or permit any sale b'{ aucticn on tbe ,premises. 5. ASS!GNMEI'.-rr #UI!O SUBLETTING. L.essee will not assign this Lease or sublet any portion of the premises vvithout prior written con., sent of the Lessor, which will not be unreasonabh/ withheld. Any such assignment or subletting without conse.nt will be void and, .::;. the option of the Lessor, will terminate this Lease. 6. ORDINAIIlC:ES AND SI'ATUTES. Lessee will comply with ali statutes, ordinances, and requirements of an municIpal, state and federal authorities now in force, or which may later be in force, regarding the use of the premises. The commencernent or pendency of an'"' . state orfederal co urt abatement proceeding affecting the, use ofthe Pl'emises will, at the option of the Lessor, be deemed a breach cf this Lease. , "'. M.!\.!NTENAI"iCE<. ~E?AmS. JU.iERATIONS. Unless otherv<lise indicated, Lessee acknowledges that the premises are in good order and repair. Lessee will, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, eiectri.- cal wiring, plumbing and heating and air conditioning installations, and any other system or equipment. The premises will be !C:U;-n rendered, at termination of the Lease,in as good condition as received, normal wear and tear exoepted. Lessee will be responsib:" for all repairs required, exceptthefol!owing which will be maIntained by Lessor: roof, exterior walls, structural foundations (includ- ing any retrofittinW\3quired by povernmental authoritiesl and: ~~_ ".__< Lessee CJ will, E~ will not r"aintain the property adjacent to the premises, such as sidewalks, driveways, lawns, and shrubbery, 'Nhich would othe rwise be maintained by Lessor. hlo improvement or alteration of the premises will be made without the prior written consent of the Lessor. Prior to the con'" rnencement of any substnntlal repair, improvement, or alteration, Lessfl8 will give Lessor at least two (2) days written notice in onjc,- that Lessor ma',I post apDropriats notices to avoid anv liabillty for liens. . . S. ENTRY ANt: It\lSP'ElCTH)'i\l. .Lesseewm permit Lessor 'or Le'ssor's agents to enter the premises at reasonable times and upon reaso!!., abie notice ror tb" purpose of inspecting the D,ernis&s, and will permit Lessor, at any time within si;;.'ty [6tll days prior to the e;(p'rc> tion of this Lease, t? place upon the premises any usual "FOr LOcii;e" signs, and permit person$ desiring to rease the premises inspect the premises at rr;asonable times. ' _ 9. IrJO:SMNIFiCP.TION Or:!..E~'::SCl'::, Lessor wii! not be liabl;.! for any damage or injUlY to Lessee, or any otlier person, or to any prope.. tv, occurring on the premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of tho premises, and 'to indemnify L.essor for any expense incurred by Lessor in defending any such claims. 1CJ; PO;::>'::ESS!OI\!. If Lessor is Una; 'e to deliver possession o'f the premises at the commencement date set forth above, Lessor will not liab:~ fo~ anj' .damag~1 caus;;\d by the d.ttle\" ~~r will till?, Lease b~ vo.id or v~i~able, bl1~ ~:sse16Nill not be l1?c;ie for any rent unt~i POc- sessIOn IS delivered. Lessee may terminate tnls Lease Ii possessIOn IS not aelivered wltmn '.' aays oTtne commencemen.; tcr, i in Item 1. . '~i" L;SSE~~rS [r;,jsUt~~r"J.C;E..Le~~see, at his or her expenS(~r \tvHl rnaintain plai'8 class, ~ubHc ii9oi.JitV'Do,.nd property damaqa Insurance ins~j;'''' Lessee <:nd Le S8,)r witii minimum coverage iF" follows: _ OLl~ m:Lt.r~?!2-.lt.1. , QUO, 0 U) __. C " __... w;!! provide Lss::or with a Certi-i'ieate of InsurancF; "howing Lessor as additional insured. The poii::'y' wit! require tOil [1 wdtte: not! ce -{o Lessor prior t(\ cance!lation O~ r:latG.rif.',~ ch-rnl,ge of CCVl~t'(.H:~G4 ",:"'. H;<';~JR.AJ~C!:. Lessor will maimain h,3zard insuriince Go~'el'ing or,," ~IUi\dred p)rcent (100%) actual C83h ';taiue of irnproye:-nents throughout the L.ease terrn, Lessor's insurance vvi!! not insurf;' L8SGe~rS personal prDperty, le8sehol.d inlprO\1 GrnSl"1 lC;.. or trade fixtures. *'J~ Se:e Attaclv:?-d E:Kb.ibit 'tfA~n of Prern:i.s8s" CAUTI'Or'J: The copyrinht UHH'itS of the- United States forbid the un:D~thorized rapfoductitlfi of '(his Torn: Oy any mSBriS induding sr~annlng or cornpul~nized formats. . Pa~lE; 1 of:3 F~Jf\ fv'11 07.1 (7..87 j COPYB!GHT i..t,} mS3-97 CY Fr;O~E~$lCN.c.L PUBLISH-lNG, 330 U.S GAlUNA:~ AVE.. S!\N 1--lAfAEL Cf.\ 94S03 1415i 47Z.1864 Ft\;,\ (4151 472-2OOU i/i lU~;t! :C~1HI i r~.l1 ~(~. ,,---. . ( . NCR (No Carbon Required) Property Address 13. SUBROGP,TiON. To the maximum extent permitted by insurance policies which may be owned by the partie:s, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. .' '. UTILITIES. lessee agrees that he or she will be responsible for the payment of alt utilities, including water, gas, electricity, heat and other services delivered to the premises,except: NI A . .. . 'is. SIGNS. Lessee will.nofplace, maintain, nor permit any sign or awning on any exterior door, wall, or window of1:he premises. without the express written co:nsent of Lessor, which will not be unreasonably withheld/and of appropriate governmeOlta! authorities. 16. ABAJ'!DONMENT OF PREMISES. Lessee wiH not vacate or abandon the premises at anytime during the term oithls.Lease.lf Lessee does abandon or vacate the premises, or is dispossessed by process of l;:lw, or otherwise, any personal property belonging to lessee left on the .premises will be deemed to be abandoned, at the option of Lessor. . 17. CONDEMNATION. If any part of the premises is condemned for public use, and a part remains whlch.is susceptible of occupation bV Lessee, this Lease will, as to the .part taken, terminate as of the date the condemnor acquires possession. Lessee will be required to pay sllch proportion of the rent for the remaining term as the value of the prem ises remaining bears to the tota I value of the prem is- es at the date of condemnation; provided, however, that either party may, at his or her option, terminate this Lease as ofthe date th(~ condemnor acquires possession. In the event that the premises are condemned in whole, or the remainder is not susceptible for use by the Lessee, this Lease wi.1I terminate upon the date which the condemnor acquires possession. AI! sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee will be entitled to retain any amount awarded to him or herfor his or her trade fixtures and moving expenses. 18. TRADE FiXTURES. Any and all improvements made to the premises during the term will belong to.the Lessor, except trade fixtures of the Lessee. Lessee may, upon termination, remoOe all his or her trade fixtures, but will pay for all costs necessary to repair an}' damage to the premises occasioned by the removal. _. 19. DS~T~UCTIOIV,OF PREMISES: In the eveB."b'tt.a partial d~struction .of the premises during the term, from any cause except acts or Om!SSiOn of Lessee, Lessor WI!! ~ repaIr the premlses.,.~~~!!lii.l~~~vzg;.) ~1r.:=?l:a:Iltil:;dQt~~~~tU%iXX"~~:n.~'p:~~~~~illm:!W:lt\ij:~WF~~~~'qffKP'a{\;~{ ~l:iKll'bm~xOCocxoom~~eElx:qm;rR~:nt~l)'".d\1:k:l\1:lt!ll:e::K1lElkb;q~Xlt..~FJ.M~>:li~~J.j;Ji~\'i:l't~,el;;~J:j:~.{ Xl"ll!:lthuKj&Den:NKem:J~:ri~~~r.:l3.ix!iOm1~~i:iiX~8~:g~WtJea~~V:~~~J\l~~~~{3:~~~Pgy:: ~4gCm;jff~l~491tlj:~{\;~~~~iliiWY>'{I!mll~~iWebX. . 20. HAZARDOlJS MATERIA!.S. lesse.e will not us'e; store, or dispose of any haz.ardous substance.s upon the premises, except the use and storage of such substances that are customarily used in Lessee's business, and are in compliance with all environmentai laws. Hazardous substani;8s means any hazardous waste, substance or toxic materials regulated under any environmental laws or regula- tions applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by lessee's use. of the oremises. . 21. If-!SO!.VEl\!CY. The appointment or a receive'r, an assignment for the benefits of creditors, or the filif\g of a petition in bankruptcy by or against Lessee, will constitute a breach of this Lease by Lessee. . 22. DEFAULT. In the event of any breach of this Lease by Lessee, Lessor may, at his or her option, terminate the Lea~e and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termir,~,tion;Jb) the worth at t;.'6 time of award of the amount by which the unpaid rent which would have been a.aroed after termination until the time of the aW2i"G exceeps the .amount of such rental loss that the Lessee proves CGuld have been reasonably avoided; (c) the worth at the time oT award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the a mount of such rente! loss that the Lessee proves could be reasoni1bly avoided; and (d) any other amount necessBty to compensate Lessor for all the detri- ment proximately caused by the Lessee's failure to perform his or her obligations under the Lease or which in the ordinary course of things would be likely to rf:jsult therefrom. . Lessor may, in the alternative, continue this lease in effect,as long as Lessor does not terminate Lessee's rightto possession, and Lessor may enforce all of Lessor's ("i9hts and remedies under the Leas.e, including the right to recover the rent as it becomes due under the Lease. If said breach of Lease continues, Lessor may, at any time thereafter, elect to terminate the Lease. These provisions will not limit any other rights or remedies which Lessor may have. - 23. SECURITY. The security deposit will secure the performance of the Lessee's obligations. Lessor may, but wil! not be obligated to, apply all or portions of the deposit on account of Lessee's obligations. Any balance remaining upon termination will be returned to Lessee. Lessee will not have the right to apply the security deposit in payment of the last month's rent. 24. OEPOS!1' RSiFUNDS. The balance of all deposits will be refunded within three {3} weeks (or as otherwise required by law), ff'OlTl date possession is delivered to lessor or his or her authorized agent, together with a statement showing any charges made against the' deposits by Lessor. . 25. ATTORNEY F~eS. In any action or proceeding involving a dispute between Lessor and Lessee arising out o'? this Lease, the prevail.. iflg party will be entitled to reasonable attorney fees. 26. WJWJE:~. No failure of lessor to enforce any term of this Lease will be deemed to be a waiver. 27. f\!OTICES, Any notice which either party mayor is required to gIve, will be given by mailing the notice, postage prepaid, to Lessee 2C the premises, or to lessor at the address shown in Item 2, or at such other places as may be designated inwriting by the parties from time to time. r'>lotice will be effective five (5) days after mailing, or on personal de! ivery, or when receipt is acknowledged in writing. 28;. HO!..OING OVER. Any ;~q.!djD~ over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy i;lC a monthly rent of $-I:~~_, payable in advance and otherwise subject to the terms of this Lease, as appficabl&, until either- pm,'/ will terminate the tenancy by giving the other party thirty (30) dayswrittsn notice. :;>S. TlrJ~E_ Time is of the essenCE) ofthis Lease. '::!lO. Hi:!r~S, fi,,;;SIGr\!S, S;UCCE:;;~:Dr~::;. fiYFKl~M~q1ilBtw.1P6Ei~Xif:&K~,*,'li:ltWJ&V~JlJ).r~~;F~~~.zr.{fJi7i8";;j~6P$~~~;~~rt~~~', ::;;1. TAX II'..':C~IEP.S!'::. }tr.utixwJ'~j(tOO:s:~\[)dm!~Ell"{;\~j"~1&N:.1f..N~J{~:S{}QntM::M~J:r:!Xit.._',!n1rr",RgriIDt~rn;'i1;fVJ:~~la~&~KRY&VfirJX!)m-2I1'iJ{jK},J"?~ ". ~. ~(,Ir.t,G(t. ',I){,I 'cJl,-+;a 'j(e;,.i1~6"~H -Y-. ,*e-o~:".~. 'cft,> ..... ,. .' fHl,sI'C..0tCli't,i"e. R~'7'$,;,b(;;$f;@"tl.,\".~,-, . a~. '(;>~I~~B~' frlfrfilrf,Hilili;ac,cr.".i;.., ~;,-.~",~d.,:r...~!!:;..,,'c..~);' :t:::<' ;.::(l;:.f.~;.;~~CX):~I~. 'l;: _....::t~ ,"';.:.::{~'~d.:F<\o:.'(~:'..:f,-,_~~r,~::();~~:':)C~~~~, -cJ::':;():::::;~. .t",P>,"" ,.~~';r.:('..c;:-.::.:}r.::{~:'~:l:,..:.'.~ ~.qJp0!uw~... .(t,4~UiY>.j'R4\;I', '0 e..rpt tt _#t4-'N;lm;.(l1Y'1J1'84'f'1",~gSlH'F.r;;' "1'l'Lm'1;fb.""<'fI~c B:..L&(Y,EWP{:'"t1";!':'" KIX:7GXt}H;U"@MRJUi'E.;r.s~Jlffi:K~XYF1&1I\t~~J1i\tKar{}]jJ1I1@"';u~XfKiKte:i\i2;ii1BLXfftB.\!Z8;8if;;;)j;E\lQtlKagB2TI:&]GL;W.6>Q{a&'i"lWiK;JW<4GmiZl~[~\.v~j'Li':: 'l~:1~Jf%JKOOf;)OOITm]~aW.l1KQiiJ[!;le..~;;Y%~CiXQ.~:tl~r.V(~(KYj(jliXiKJ@Ii(SZiliJX0(lX.KEiOfr!~iii1%}f:W)lj'2M0X ( 15D li' .JTlON: The copyright laws of the United States forbid the unauthorized reproduction ot this farm uy anymeans including scanning or computerized formats. Page 2 of 3 FO FaVi J 07 .2 (7 -S7} COFYEiGHT@ 1883-9] BY PROFESSIONAL PU8L!SH1NG, aBi) \.AS GALLlNAS AVE.. SAN RAFASL, GA 9'19Q3 (l,lSt '~72~19G4 FAX (415) fn~2L\fiS r;~ ""'..^""."""e.....""''''.'", ~'..l .'...~~....""'.;;"".'..!""M'.,., ~A HJ~ PUJ'~L!5~M~.~ NeB (No Carbon Required} ( ( ! r 1.._/ Property Address i.>2. COST OF J.l\J!\'lJO INCREASE:. The rent provided for in Item 2 will be adjusted effective upon the first day of the month immediately fol. lowing the expiration of 12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter, il1 accordance with changes in the U.S. Consumer Price Index for All Urban Consumers (1982-B4 = 10G} {"CPt"}. The monthly rent 'wii! be increased toan amount equal to the monthly rent set forth in !tem 2, multiplied by a fraction the numerator of which is the CPI for the second calendar month immediately preceding the adjustment date, ahd the denominator of which is the CPt for the second eel" endar month preceding the com!)lencernent of the Lease term; provided, however, that tne monthly rent will not be less than the amount set forth in Item 2. , "",nr'LTV_V1IT.ITV;V;,rY=:VYYY.V.V\T,V)'TY1'2'YY.JOCz.U?T.YYy'y'yvVV,V-Vyvvyv,vyyyvv.llllllry '''''' :::~. OPTiON, TO RENEW, .~~1.[.f1'...J.lPl;OO"'_IS4'\-I!WH'H!1~:r"a,t\;fO"l'F\>-i!""""F""'l'!"Clf'fi'rtmee"e~~S'<:~~e''W'i ~' 'efteV1I'1:h',, ", X~~YJ/kR*H..xXXX1Hr.a\i1li1QC1(;Hl r r., r , ~ . r ,,'.:" " "mp~ '<7.7"""nrv:v:JJ:V :"'""""Y;i!li!,)!::Ji!:1Z",?;;."=Y_VV:VV~!f='!yV:Y:'; ,r " '""Il' iJCY..x"VVyvvy,,'ltV . 'ih';'W:\f\?yv ..c;;i\r~.l~~~t4lUIilWIl-Y""'Iaf:Ib!oll~~~~M~$,g~~~_PH~~ . __ 'n . ~\rf!rnet=1~ f J'l':fe'LB'tijti8retl }~~~~~. -, ~~XimiID{ilUU~~K}~~~~~~~~~11'"KS'~, ~~'t~~~~~. 34. AMERICANS WITH DISABILiTiES: ACT. The parties are alerted to the existence of the Americans With Disabi liUes Act, which m;JY require costly structural modificaTions. The parties are advised to consult with a, professional familiar with the, requirements of the Act. 35. lES~OR'S lIAlSILlTY. In the event of a transfer of Lessor's title or interest to the property during the term ofthis Lease, Lessee agrees that the grantee of such title or interest will be susbst;ituted as the Lessor under this Lease, and the original Lessor will be released or all 'further liability; provided, that all deposits wi!! be transferred to the grantee. 36. 5STOIFPEI. CermFICA'i'E. ' (a) On ten (10) days' prior written notice from Lessor, Lessee witl execute, acknowledge, and deiiverto Lessor a statement in writ" ing: [1 J certifying that this Lease is unmodified and in full force and effect (or, if nlodified, stating the nature of such modification ard certifying that this Lease; as so modified, is in full force and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any;, and [2] acknOWledging thgt there ar,e not, to Lessee's knowledge, any uncured defaults on the part of Lessor, or,speci'fying such defaults if any are claimed. Any such statement mai' be conclusively relied upon by any prospective buyer or encumbr2 neer of the premises. (b) At Lessor's option, Lesse'- s failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: [1] thCic this Lease is in full force and effect, without modification except as may be represented by Lessor: '2J that there a re no uncured defaults in Lessor's perrormance; and [3] that not more than one month's rent has been paid in advance. , (c) If Lessor desires to finance, refinance, or sell the premises, or any part thereof, Lessee agrees to deliver to any lender or bu,/er designated by Lessor such financial statements of Lessee as may be reasonably required by such iender or buyer. All financial st"te- :>lents will be received by the Le,ssDr or the lender or buyer in confidence and will be used only for the purposes set forth. :.!7'. fENTlR5 P.CREEME:f\.!T. The foregoing constitutes the entire agre2ment between the parties and may be modified only in writing signed by all parties. The following exhibits are a pr;ft ofthis LE)ase: Exhi bit A: ...L.e-B.s~1=J~mi s e s Exhibit B: Exhibit C: The undersil:,'(,ed Lessee acknowledges that he or she has thoroughly read and approved each of the provisions contained in this Off,,)(, andagAe~," s and conditions specified. ",' p Lessee ,,~~~-d~ _ Date~/~t Lessee L~ Date /'J/Z:;/6~~"' /~ ( , -y-, Recei~: for Mp'osit acknowledged bY Date [ ACCEPTANCE The undersigned LessQr accepts the foregoing Offer and agrei3s to lease the premises on the terms and conditions set fo.1:h above, !'\""'~T''''''''' T" -I' t "'" r;' --''' ! """h' " b 'b" ,"." !'~:;~[_:=-~m(Hmt '?,l' ..~te Ch re;;l! e~ate comm!s~!On$!s not iDee\..! by aw. ,ey a~e $~C!1 ro"e, mmV!(lU- a~iv and may i:l-e--l't,a;"fiat:i-a~etvifee~--C\l'irner"-GUabroker.. --------______ _____ -~'--~- ------ ~ ,-2:he Less.ora~mes!~pay..~, ,-,'..', ~----------------""" _.. ~==-~~ B.rokerin th1stra-l1'<~~'):1: tile sum of"'"$: ....J~ervlce~ rendered a,n? auth?flZro'l~er to deduct s~lCf",((um fxPrrlfh~ depOSit r~c~..fr.~..e,~s~~_'(" In th~. even,t ~~S8 IS ex.t~nQed for, a ~:li3~11l1~,r;J.0~r time or on a mont:~~lth baSIS afle.r eXP..lf?tlOn of tlJ~-?lg~-lal ttli:~-" Lessor wl1Lp'~~-Ltif:l.P.al.c.onl1:n~l1...o:( %..of..the..to:tal...r.e:;p.tal wrthe extended penod.l hli?.CGrrfffiTsslOn wdl be UU8 ~~..r.:~ at the co mlTlencement-0.~tend~period if for a fix~"~"T1, or if on C1 lT1onth..to-ru.."n~sis, at the temlinatiorl cr Lessee s occupancy or- one year;)~(.h-it5"heve, ie, earlier. ~' in any action for cOi"illT1issioll, the preNa1!ing part~!,will be entitled to reasonable attorney fees. ',/.', /i 1'1 J2 I '4 /rL-;J'Cl-,/_h I. It'ri ". 0J f'-" ".I'l/:, L.essor ..JLfI~_0/LA~~__.. Date __L..!-.! ~~~L,",- Lessor __ Date Le,3sec acknowiedges reseipt of a copy of the accepted Lease on (date) _", [--_1' L-l (initialS) CAUTION; The Gopyright i;,~v/:? of the Uniterf Stales forbid the Ufl3l:thnrized reproducUoH (J this ferm hy nny means including sccHining or compUlerlZ0OJ. iormats. ' ~JaL~,:; 3 of 3 F~:JFHV' 107.3 (7...97j C0<-PYRlGHT <9 IS33-91 8Y PR(1rf~SS:ON.6.L PUGUSHING, H8G LA.S GAlUN.I->S AVE., SAN f1l~FAEI.., CA f:4l102 (f;15i 472~19IH FAX {Ji!5l !tn~2059 i Rev. by ---'-- i l~Dte -====::- '___=:~ ,; " Q q ~ I ~ J"'-~ - 1 ~- - (.- ( II EXHIBIT' A It i"'1?' 1 'S'," I ~""~' :~:~~~i~~~~~~~R:\, ' ~\\""\,\\\l,"'\:'\'\\;\\ ^ ~"q *~~~~~,;,:~1K~s1~li:~1~~h" "_m'~ """.\\\\\"'\.\\\\\' ",,,;,,,'"''\\'''\,'\\''' I ,'.'\;' "'\'.' : ~,' ,'~ :;:'~::',~:\~~::':'~'~1~~~~~!!\\ ~r~~~}~~~~~~:~,\, ~'1"'" "',',,hi 7(717- 1\;':<</ '.i .. ' ' rl/ ( r ,,"', ,,)' "'/'\ ) / "\, "- .\ ''''-' J-j / :'\, ",,"-, ~ ~ I ! / ! i ;' ,~ ~>" ,,(' ,/ ! ;' / " ",'" " '\, j , ,I , ~-;<<>" ',- "'- !i:'/. / w"- ---"::0-';~tit- " /' r t~'/ 1 I ",~ <:;'l~: "''-~ I ! !-PI ij:::;'''- '~:~.~~~ <' '/ /f / 0 J~'\ 'en"'""" ~" ' / I:T1 LJ~,'~~~":'~.'~~~V',ii/ /"l~ o>ll:l./!lLt(.lWl.m1.Ii.'!"~.~~~_''''~.~,. ~ '",- ~ '" ' "'J " : '..._~_.~. ,', \.' "-,,, f / ; '^" ' "',,,-,, " " ,I, " , / ' I __,__-=-__J / .- / ~ ~;'////;': i/~ Nt : / ;' / I ; ,: ; /i ,':/!! ;!~ ~I ,;' '/' ~;-J r~ ~: ?#i' q , ___<B""_ --1- -__LL.1:~ ----.:'...~~b....~ o C t:d r t;;i=-{ 'L" b--:>J ,- ....~ 0\ Y-' c,~ ':rJ;:::) '~ ~ 1'-'2" -, l ? o..;.,'~ L) ~ ~- ~ ., . . If EXH.1B1Tb$-l! r ------- / . ~~f rl ;fc;/ /.JM-t.NPIt1,f;...l {f'J~.-s:e- -fo 13'.(;" ~ '.{;' 1 I I >" 130'tO' ~ .. . J ;l q I IJ I~ II I I 1M.... 1\ I t1 cj to t-< "~ Z ~Cf'1 >.:q -'I . 1,-" cj > ~ tTj r-----1E,J!L- 1>~<''''''~'1 ./ f '" "'-. ", "~'~i [' ~:;~,:~~:~~':::~~:' J i'" >:- ~ .,tn\', " ,; '<, 'hi~~<\', r' . '\00\00. . \ '. g:~"" """~:'~~>~': u . ",,- C(l '5Z' " "" !, ",,- ,'-:r}'Q':". R'""""",, \,4.,,_, ,....,,~.., ~.. " "" '\. '. ~ ..., t..,-, ',," -', ", " '" 7, \.'\.." -',,- ",,- "\.... "" .' ""'" ". "'", ", '., ~-;j>!,>,,-~~J'"""--~~;z.-~L.J 1---.____~______:_"!!iSL 1/ : jl ," \ l : I; 'I' '. ( .f'" 0 k.-'-J-'~~'L1 L-=-___3^Y__ =-~ _-cffi--J " ;;:~ BERKELEY lAND COMPANY, INC. September 13, 2005 Manzullo & Associates 5739 Opus Dr. Carmel, IN 46033 Re: FinishmasterlDublin Square/Dublin Ca " Dear Ms. Manzullo: This is to infonn you that Berkeley Land Co. Inc. is willing to extend the lease with Finishmaster under the same terms and conditions through December 31, 2007. The rent shall be $4,700/month Nl\TN for the year 2006 and $5,000/month Nl~ for 2007. If your client is in agreement please have them sign and date this letter in the space provided and return to me. Thp.nk Y Q'r\., . 7/L1u \,1 {~ If d. (j .. f; l7':CIV /I01Ov..A''''i..X- J\JI1chael S. Mikulich Vice President Real Estate ~ ..._..-.... I ~. . , ,.<"").-,tJ I \"~~1;,~r:6' . ".>> ' '" \\) ". ~.", ,\ ., ",,_r__. ! B <".""" J)," ~'.r..... ~.... y: ,,-- " Title: Cfb /" I Date (O/.4-<S:/fJ 321 r~arh: /.;.ve., Suite 200 4i DanviHet California 4t, 94526 ~ Phone (925) 552..5.450!) Fax (925) 552-9987 BERKiEl!EY t.A.ND COM~ANYf iNC. August 20, 2004 Manzallo & Associates 5739 Opus Dr. Cannel, ll-T 46033 Re: Finishi-nasterlDubHn Souare " .. Dear MsManzullo: This is to inform you that we are wining to extend the current lease with Finishmaster under the same tem1S and conditions through December 31, 2005. The rent for said extension shall remain the sam.e at $4,700/month plus triple net expenses. If YOUT client is in agreement please have them sign and date this letter and return to me. Th~'1k you. for your assistance in this matter. c~ .~"'''A!' /'1 ~;7\\",vJ..vlY.~ I r. ! Ii 1\ y' U WN-P 1'.;;[1 " I S 1\ .-"!' . lV.l.1Cnae! . NIllGhlCn Vice Pres.ident Real Estate v. <_._~~ ' J r"'::fi" ~\ I '-'( ;. '., .r'\. 'f.."n . B ~",-,..1 . ( ",*-._1l-:V-J ~y: . .' I . /"-~ (J-'-c" ! g Date 9:{t 3/0 -, Title: 1 f"i:~HiI. Ave~l " u ~ is 15[.;1-0 r.... ASSIGNMENT OF LEASE Parties This Assignment of Lease is made this ~I day of May, 1992/ among MP~Tr~Y'S, INC., a California corporation ("AssignorlO), THOMPSON CAPITAL CORPORATION, a California corporation, (trAssigneeli), and BERKELEY LAND COMPANY, a California corporation ("Lessor'l). Purpose This Agreement is made with reference to the following facts: ,,- A. Assignor is the lessee of the property known as 11.819 DUblin Boulevard, Dublin1 California, consisting of approximately 2,600 net square feet, pursuant to a vlritten lease for a term of five years commencing April 1, 1990, and expiring March 31, 1995 (lithe Leasell) . B. Assignor wishes to assign the Lease to Assignee. C. Lessor is willing to consent to such assig'nment, provided Assignee pays to Lessor the reasonable attorney's fees incurred in the preparation of this document. A.gr~~!!.~:nt Thereforer it is AGREED AS FOLLOWS: 1. Assigpment of Leas~: Effective June 1, 1992, Assignor assigns to Assignee all of its right, title and interest in th.e I.ease0 2. Assu1'f!otion of:-Leasg: Assignee expressly assumes all of ~~e obligations of Assignee under the Lease effective JUlle If 19921 an.ti agrees tr.l perform all obl:lgat,ions of Lessee under thE f :i."pacifically including the pa:yment of rent, commencing June If 1.992. 3 . Indentrdf ~9a.tj,-Q!L~i2.i,9:Dot:: Assignee agrees to inde~~ify Assi9~or from all obli.qati.ons u.nder tb.e Lease accruincr on or after Jime l, 1992 ~ in ='\i'"'r<o.;~r!:>>'lf"'''''' ..~v.;t't.: """'c{"'lor' 9 3 o.r: .+-;",,,,'1-"'0,..,,,-1-::;"11'" "l.::'''''''''r '!"hl.....,.....''''',:::,." ~"""- .....'\.J;\..~.... _t__. '\1<.-.. .,tJ.. ~\,"7,;. _...~",. 61. '" J... \-L.il.~__ ~";.ib",,,,,,""I)....r;..~4. .t.Ji>_~~'",<> r~..:....""..LA~""'''''", J.'lgreement bsd:ween and lissig:nee, d;;;:"c€,::d as c,':;'; l1",pril 2? 1992~ 4, p;,ssigno!J:' ~!hal1 remain liable 'to Lf~ss\\c~r for the performance of all Lessee's oblicrations un.der the Leas-s unlE'tss and until Lease is ci::mceled ind by C1. new. lear;:;;c'Z) 279t,}3!;~ '" .l. I ).::. -j ,_,,,.,l t " ~';~r" I between Lessor and Assignee. In the event that Assignee exercises the option provided for in Secti.on 3 of the Lease, the Assignor shall no longer be liable under the Lease. 5. Security Deposit Assignor currently has on deposit with Lessor a security d""posit in the amount of Nin€iteen Hundred Fifty Dollars ($1,950) r ~Jhich shall rermain on deposit for the benefit of l>.ssignee" SimuJtaneouslv with the e~'ecution of this Agreement of Lease, Assignee shall pay to IJessor the StlJD. of Two Hundred Dollars ($200) for attorney's fees incurred by Lessor in the preparation of this Agreement. " 6. Consent to Assignment: Lessor consents to the assignment on all the terms set forth herein. This consent is not a consent to any su~sequent assigmuent of the Lease. 7 " j\.ttorney' s r:E:~s: In th€',; l:went liti.cret:ion ever commenced to enforce any of the terms of this Ag~eementf the prevailing party shall be enti tled to recover from the non-preva.iling party a reasonable at~orney s fear plus all costs of suit. 8 ~ Suc~~!.~s: This igr~ent of Lease shall be binding upon the heirs r successcn:-s." exect:rtcrs and assigns of aJ.l the parties hereto~ ASSIGNOR: Dated: ~..ATLEY f. S f INC. F a california corporation ~ #~ ''''''l/)'1 /~ ~J.<) ",Lac:; ~ ~~"'''''''''''-~~&;'r'"''------.- W_ll~am A. B~~Sf President _.___,J',,_, '__ (~_:)'__ ~~!/__ c1' -2,__,__,__. 1'.)8, ~ted -~ _,._~.~_~_~___._ _~"_'____'_ THOMPSON CAPITRJG CORPORATION! a California corporation / lA--.-J..--7] / ,d'-; / -/ : ",;:.jjfFlr-7' ~'/"?<y ______UJA~- '!1"'.' .~_.._-~- "'t~'~$ ~ .!Y')-~- .... .,.<- ~ ---.- t . ,~~~~.,J.,___ p~SSIG!~E;}::: : a. I~I~ ~3 .3 () F;, : v /;. ,1,;/ ~_"r/ .-f~- /-"' <,( I ,------ / -:0';;1~ '>"-~-' : / \ . 7"'?l',':' /9{J ~~~:-"""~""'---------~'---'-- ICE: ~ /, J . lc-::r"'Pi " -----.--- ~_ f LJc:t:;;;Q; _,<l':vo,/~' /, / 2 r~9t 53t: 1 2 " 10. II. 12. 13. 14. 15. 16. 17. 18. 19. 2G. 2l. 22. 23. 24. 25. 26. 27. 28. ...~ a L.,JI!o 30. 3l. 32. 33. 34. 35, 36. 37c "''' .) 0 . ')Q ..,J~.! 0 THE DUBLIN SQUARE LEASE William A. Biggs MATLEY'S, INC. l1819 Dublin Blvd. Dublin, CA 94566 ",... f., ~i. t"t': RECEIVED F E8 2 E~ INDEX TO LEASE 1. Parties Premises Lease 'I'erm Rent Security Deposit Use and Prohibited Uses Signs Business Hours Parking and Common Areas Name Alterations Maintenance and Repairs Compliance with Govermnent Regulations, Land Use Perrni,t f etc Entry by LESSOR Damage or Destruction of Premises Assigment and Subletting Insolvency or Bankruptcy Remedies For Breach Attorney's Fees Su-render of Lease Holding Over Surrender of Premises on Expiraticn of Term Insurance Indemnification Utilities Taxes Exclusivity and Other Tenants Subordination Transfer or Revers~on Rules and Regulations Time is of the Essence No Joint Venture or Partnership Notices Waiver of Breach Captions Successors and Ass~gns Interpretation Invalidity of Particular Provision Governing Lav? Exhibit "An Location of Building in Shopping Center 2. 3. 4. 5. 6. 7. S. 9. Page 1 1 1 ') "" 3 3 3 4 4 6 6 7 8 8 9 10 II 11 13 13 13 13 13 15 15 15 16 16 17 17 17 18 18 18 18 18 19 1Q ~J 1 c' .4.., ...~ THE DUBLIN SQUARE LEASE William A. Biggs MATLEY'S, INC. IlB19 Dublin Blvd. Dublin, CA 94566 1. Parties This lease is made this / frI day of /f;4J;t? I L_, 1990 r by and between BERKELEY LAND COMPANY, INC., herein called "LESSOR", and William A. Biggs. herein called "LESSEE". 2. Premises For and in consideration o~ the covenants and agreements hereinafter mentioned to be kept and performed by the parties, the LESSOR hereby leases to LESSEE, and LESSEE leases from LESSOR, a portion of the building area on real property situated in th~ City of Dublin, County of Alameda, State of California, and more particularly described as follows: Approximately 2600 net square feet located at the Dublin Square Shopping Center. The street address is 11819 Dublin Blvd., Dublin, CA 94566. 3", Ilease Terrrt A. Commencement. I! 19'90. This lease term shall commence on p~pril B. of five above. Initial Term. The initial term shall be for a period (5} years, cOl1U1\encing on the commencement date described c. Optior!:..:... In addi-tion -to the initial -term, LESSEE shall hctve one (1) option to e~tend the lease for an additional consecu- tive term of five (5) years. D. x:xercise o~_Qpti2.n. In the event LESSEE _desires to exercise the option, LESSEE shall give to LESSOR written notice or exercise,; of opJcion at lea.st one hundred eighty (180) days before the termina.tion or the exis-ting lease term. If the option is exercised, the lease shall continue upon all of the same terms and conditions f except for the rent r which shall be as set ror-th be 10\'1 0 1- i t '"';'~;' ,./" . 4 . Ren t A. Monthly Rent. The initial base monthly rental during this lease shall be Nineteen Hundred and Fifty Dollars ($1,950.00). The first month's rent payment shall be due upon execution of this Lease. B. Due Date and Late Charges: All rental payments shall be payable by LESSEE on or be~ore the first (1st) day of each month, in advance; and delinquent if not received by the LESSOR by the tenth (10th) day of each month. In the event that the minimum monthly rent is not received by LESSOR within ten (lO)"days of its due date, LESSEE agrees to pay to LESSOR as additional rent a late charge of five percent (5%) of the rental amount due. C. CPI Increase. The base monthly rent of Nineteen Hundred and Fifty bollars ($1;950.00), as establi~hed in 4A, above, shall be increased (but never decreased) at. the commencement of the third (3rd) year of the lease term by a percentage equal to the percentage increase in the San Francisco-Oakland-San Jose Consumer Price Index (All urban consumers, all items) as maintained by the United States bepartment of Labor --"the Index"--during the pre- ceding years at which the rent was at the same fixed rate. All comparisons will be based upon the Index figures for the commence- ment of the third (3rd) year, April, 1992, will equal the percentage increase in the Index from March, 1991, through March, 1992. However! the cpr increase shall not exceed seven percent (7%) per annum, or a maximum increase of .twenty one percent (21%) [7% times <. three (3) years[ at the CPI increase date. E. Option Period Rent. In the event the LESSEE exercises the option referred to in 3C, above, to extend the original lease term for an addit~onal f~ve (5) years, the initial rent at the commencement of the additional five (5) years shall be adjusted to the then current market value. However, this adjustment shall not result in a rental decrease. The rental adjustment shall be accomplished by the mutual written agreement of the parties, if possible. If the parties and their leaal reoresentatives cannot reach such an agreement within sixty (60) days prior to the corr~encement of the option period, t.he then current rental marke-t value shall be determined by the average of three (3) written appraisals from licensed and experienced real estate appraisers. One such appraiser shall be selected and paid by each party. The third apFraiser shall be selec-ted by t.he firs.t two appraisers and paid one-half (1/2) by each party. . 2 F. CPI Increase During Option Period. The monthly rent at the commencelIlen.t of the option period, as established in 4Cf above, s:ball be increased, but not decreased, at the commencement of the third (3rd) year of the option period by the same procedure as set forth in Paragraph 40, above. 5. security Deposit ~':fr__ , j.". /C (:;,-A C ~~ ,. /./J..r:::,rl.' /'''l;'''-2-o~''-- '- . /' <'- c..t ~;.~ ~'i~!r I 7 ~~$~'~O ,t),q "1r.,;;'1.,) ...-.~ At the time of the execution of this Lease, LESSEE shall deposit with LESSOR the sum of Nineteen Hundred and Fifty Dollars ($1,950.00) f which deposit shall be security for the faithful performance of all the terms of this Lease. The Deposit shall be retained by LESSOR without interest and may be applied against any charges, debts or damages due LESSOR from LESSEE. ""> 6. Use and Prohibited Uses The leased premises shall be used solely for an automobile paint supply store. LESSEE shall not, without the prior written consent of LESSOR, use or permit said premises, or any part thereof, to be used for any purpose or purposes other than the purpose or pur- poses for which the said premises are hereby leased. No use shall be made or permitted to be made of the said premises, nor acts done, vlhieh 'flill increase the existing rate of insurance npon the leased premises, or any part of the leased premises, lnle88 LESSEE shall pay the difference between normal insurance rates for similar businesses and such increased rate; v;rhich additional costs shall be deemed rent herein and paid to LESSOR on demand. Nor shall LES3EE cause a cancellation of any insurance policy coveting the leased premises or any part of the leased premises, nor shall LESSEE keep, use or sell, or permit at be kept, used or soldr in or about the premises, any articles wbich may be prohibited by the standard form of fire insurance policies with extended coverage. LESSEE shall, at its sole cost and expensep comply with any and all requirements pertaining to said premis,es f of cWY insurance organizati.on or company necessary for the mai.ntenance of reasonable fire and public liability insurance, covering any part of the leased premises. LESSEE shal.l HO.t COlTilllit: p or suffer to be committed r any wast~ upon the premises or any nuisance, or other act or thing vlhich may damage th~ leased premises or disturb the qu.iet enjoy- ment of owners or tenants of adjoining parcels of real property. 7. j?igns During the second quarter of 1990, a new exterior sign shall be installed at the LESSORfS expense~ The "LESSEE and City of Dubli~ 811011 c<ppr")',re sarrh~ b0:~fore conEt~J:.uc,tion. c'r t:.rle Sigllw ..:.. 1(92 o:'~,\ l 8. Business Hours LESSEE shall continuously, during the entire lease term and any renewal thereof, conduct and carryon LESSEEt s business in the leased premises and shall keep the premises open for business and cause. such business to be conduct.ed thereon during each and every business day for such number of hours each day as is customary for busirlesses of like character being conducted in the area in which the leased premises are located; provided, however, that this provision shall not apply if the leased premises shall be closed and the business of LESSEE therein shall be temporarily shut down on account of strikes, lockouts or causes beyond control of LESSEE. 9. Park; nq and Common" Areas A. Definitions The term II Shopping CenterH means the entire area wi t.hin the outer property limit shown on the plot plan attached hereto and marked Exhibit HBu and all other pieces or parcels of land at any time or from time to time designated by LESSOR for use as part of the Shopping Center. Any additional property designated by LESSOR for use as part of the Shopping Center shall be included until such designation shall be revoked by LESSOR. Any portion of the Shopping Center that may be taken by eminent domain, privat.e purchase in 1 ieu of eminent domain p or dedicated for public use, upon such taking, purchase or dedication, shall be excluded. The ten!!. "accommodationareasf1 means all areas and facilities outside the premises that are provided and designated by- LESSOR for general use and convenience of LESSEE and other" LESSEES of all or any part of the Shopping Center and their respective employees. customers, and invitees & Accommodation areas inclUde, but are not limited to, parking areas, pedestrian sidewalks and landscaped areas. The site plan of the Shopping Center is attached hereto as EY.hibit nB!~, and the LESSOR reser-res the right from time to time to make changes in the shape, size,. location, number and extent of improvements..' buildings... accommodation areas.. parking layout or areas! and other improvements and to eli.minate or add any' improvenlents or buildings to any portion of the Shopping Center; provided, hOv.!ever, LESSOR shall comply w'ith Sub-paragraph Bf below8 Ouring the term of this Lease, LESSOR shall operate! manage, and :malntain all parking areas, :r:oad and acco:mrnodation areas within the Shopping Center. The manner in \vhich su.ch areas and facilities shall. he main.tained. and the expenditure for mai.ntenancer shall be at 'eha sole discretion of r~ESSORG provided that LESSOR is obligat:.ed to reasonably maintain t;he areas and. facilities for the benefit of the Shopping Center. 4: ~ I -', I !.O-:;7 LESSOR shall manaqe the .accommodation areas at direct cost to LESSOR. LESSOR shall use good faith efforts to economize on costs, consistent with good business practices. The use of such areas and facilities shall be sub;ect, to such reasonable regulations and changes as LESSOR shaitmake from time to time. LESSOR hereby grants to LESSEE, during the term of this Lease, the right to uset for the benefit of LESSEE and LESSEE's employees v agents f customers and invitees in common with other tenants of the Shopping center, their employees, agents, customers and invitees, all common areas, including the accommodation areas, the parking areas, and road! subject to any rights, powers and privileges reserved to LESSOR. No parking fees shall be est.ablished and no meters shall be used. B. Parkins.L 2\rea Within the limits of the Shopping Centerl LESSOR shall have hard surfaced, markedl properly drained; adequately lighted and landscaped parking area or areaS f together with the necessary access thereto. LESSOR reserves the right to change the parking areas and parking layout from time to time. The parties an'ticipatethat t.he arE,a ",Till be devoted principally to parking f '\'lith rSZtsonable provisions for landscaping I access and other accoIT@odation areas. c. ~esseers Parkina L:f~:-:)EE and its officers! agents and employees ,,;hal1 park " . l' , "'" ' , ~ ~ ' 'd f .L." t:nelr cars on_y In areas speCl:cl.Ca.LJ,Y C1.esl.gna"Ce 'or Ll.ai: purpose by LESSOR from tin,s to -time. Within five (5) days after request by LESSOR, LESSEE shall furnish i:o Ll'!;SSOR the automobile license numbers assiqned to its. cars and the cars or all its officers, agents and e'mployees. LESSEE shall not at any time par};: or permit the park:ing of .l:'C.S trucks vehicles or the trucks or vehicles of others, adjacent to loading areas so as to interfere in any way with the use of such. a.resp. nor shall LESSEE Cl.t any time parle or pern1i t the parking of :1. ts trucks or t:ha truc};:s of its suppl or ot:her8 f in any portion of the parking not: desia-rmted by J....ESSOR for suc;h use by I..ESSEEe This pclragraph 'rer1"1"~'~''''''<:( a "'{, ~ap.nt ef''''ort '~n FC'rl"'r~ ';;-.l'.t"l., 't..,"? I.'r:;\<:'r'EE.. ann 1'". '''''',f- ;1'1 "..... ':1.~~.)....-"" U-_~,.,t..."""'.,,;""".l!. __.L.. ...La ";j.",.....)U .t_C4 ,J>J~ ;";'.1 .t.C!i:)w. i ,~ .1>,;1' J../-.....,....... ............1. 2bsolut8 dutYe D. Lessee I s Share of par}:;incr tx Common )\rea Expens!?, In addition rerit.. and without deduction therefor from ".:118 rent, LESSEE shall, during the term. of lease F share of par:idng are? maintenance costs accom:.rnoda:tion area :maintenance. proportion t.hat rentablt:; :clclc~r Ztl:"ea r;ea,rs, to tIle' a} t l?> during the term. of this lease on acqount of its share of the: parking maintenance costs for each calendar year, or portIon thereof during the term of this Lease.. IUParking area. maintenance costii shall include all costs and expenses of operating and maIntaining the parking and common areas, in such manner as LESSOR may from time to time deem appropriate and for the best interests of the tenants of the Shopping Center, including without limitation, labor, compensation insurance; payroll taxes, materials, supplies, and liability insurance, and all other costs of operating" repairing, lighting.. cleaning.. painting, remark~"nq and maintaining drainagel landscaping, and directional and other signs Hi th respect to the use of such areas. LESSEE f so initial common area maintenance charge shall be Sixty Dollars ($60.00) per month, which shall not increase for at least three years. IO ~ Name LESSEE covenants that from and after the expiration or earlier termination of this Lease, it shall not operate under or use any name which shall include the name of the Shopping Center or the buildingo The provisions of this paragraph shall apply to any person.. firm or corporation which controls or is controlled by LESSEE. 11. Al terat {ons 1"-. Limi tation LESSEE shall not make or suffer to be made any alterations .' of the premises or any part 'chereof I at a cost in excess. of, ':'$2! 000.00 I v1i thout the written' consent of LESSOR first had and obtained, and any additions to or alterations of "the said premises; except movable furniture and trade fixtures, shall become a part of the realty and belong to the LESSOR at the expiration of this Lease. or earlier' vacancy of the leased premises by I~SSEE8 B~ No Me9hanic's Liens f....ESSEE shall keep the lea.sed premises and property in which the leased premises are situatede free from. any liens for war]:::. performed, materials furnished or obligations incurred by LESSEE~ In the event LESSEE shall fail to do SOl LESSOR may (but is in no way obligated to) pay any claims, for any laboro services: materials t! supplies or eCf..1ipmentallege,d to have been furnished to or for )~ESSEED pa:>rrnent for i.'lhich may be secured by l'iJ.echanic~n or ma"terialmen W s liens against. the premises or LESSOR" s interest; therein. Notwithstanding the foregoing. however[ I~SSEE have the :;::."ight to contest,. the validity of any sucb, claim. 3-^-,ESSEE so elects '1:0 contest:. any clain1! LESSOR shall not, pay claimant LESSEE furnishes such. secmcit:'Jt as T..1ESSOR in 6 ,_0 Cc discretion may require t:o protect LESSOR's interest. LESSEE agrees to execute and file a notice of completion as provided in Section 1193.1(f} of the California Code of civil Procedure wi thin ten (10) days after the cornpleotion' of any contract for any work of improvement. LESSEE agrees to pay the fees and other charges of completione In the event LESSOR elects to pay any such claim! LESSEE shall reimburse LESSOR -vrithin ten (10) days of demand therefor. In the event LESSEE fails to reimburse LESSOR within ten (10) days, the lease shall be deemed in default in the same fashion as if LESSEE had not pa.id rent due in that sum. 12. Maintenance and Renairs lL LESSEE IS Direc_t Ma i ntenance and ReDai:r:!2. LESSEE shall. at its own cost f keep, repair F replace and :maintain the leased premises and every part thereof, (excluding the foundation, roof and e)cterior v!alls which LESSOR agrees to repair and maintain); including glazing of stor~ front, heating, air candi tioning (once installed by' LESSOR as provided in Paragraph 6), electrical, plumbing, ventilating, fire sprinkling system, if any, and fire extinguishers, and the interior of the premises, in good and sanitary orderl condition and repair~ LESSEE hereby \1aives all right to make repairs of-any J<;.ind at the expense of LESSOR; as provided in section 1942 of the California civil Code and all rights provided for by section 1941 of said Code. In the Bvent LESSEE shall fail to keep said premises in good sanitary order f condition and repair, LESSOR may! after giving LESSEE ten (10) days\ writt.en notice demanding t.hat LESSEE comply \'lith. the requirements of this paragraph,:make or cause to be :made such repairs or other ",lOr];: as necessary t.o restore the' premises to good and sanitary order; condition and repair. Any e:Kpense incurred by LESSOR ill the exercise of its option shall be paid by LESSEE immediately upon demand therefor by LESSOR. B. LESSEE:' s Reimht,l:r-'sement of LESSOR! s ReDair Expenses The ::E'oUt"1datiol1! roof and exterior walls of the building in which the leas8d premises are locat shall be repaired and maint:ainE!d h::{ LESSOR at LESSOR W s dir.ect e:iLpense. LESSEE shall rairoburse LESSOH for such repair exp,3Dses of LESSOR on the same prorata. bas as described in the paragraph entitl;2d nparking and Common l'.reasl> I' LESSOR shall also repair and m"d.ntain the painting! 1.uubing and e1::;,ctrical <:TI1S -cn:, cammon arsoa,,; and building exterior. 2:,,,s to .'chese, laE;:t merrt.ionecl i :LES,SEf~ s!lal1 reimb1J.rse LESSOf~ on the next billing period :Eollm'lin~r t.he receipt of a therefor for LESSEE ~ s prorata shar:?\~ 7 ,1 j tl;:J 13. compliance with Government Requlations, Land Use Permit, ete LESSEE shallg at its sole cas'\::. and expense, complyv.rill all of the municipal! county, state, federal, and other governmental or quasi-governmental authorities now in forcel or which may hereafter be in force, pertaining to' the leased premises I and shall faithfully obse.rve in the use and occupancy of the premises all municipal and county ordinances and regulations, state and federal statutes and regulations and rules and regulations of any other governmental or quasi-governmental authority now in force or which may hereinafter be in force. The judgment of any court of competent jurisdiction, the decision of any arbitrator or the admission of LESSEE in an action or proceeding against LESSEE, whether LESSOR be a party thereto or not, that LESSEE has violated occupancy of the premises, shall be conclusive of that fact as between LESSOR and LESSEE. Notwithstanding anything to the contrary in the foregoing, LESSEE may contest the validity of any such ordinanceg statutes rule or regulation or the applicability thereto to LESSEE, as LESSOR shall in LESSOR's contest (including any appeals for any intermediary court, boards or authorities) shall prove unsuccessful, LESSEE shall forthwith comply with said ordinance, statute! rule or regulation. 14. Entry bv LESSOR LESSEE sliall permit LESSOR and its agents to enter into and upon said premises at all reasonable times for the purposes of inspecting the same or for the purpose of making alterations or additions to any portion of the leased premises! including the erection and maintenance of such scaffolding I canopies l fences and props as may be required or. for the purpose of posting" notfces of non-liability for alterations, additions or repairs or for the purpose of placing upon the leased premises any usual or ordinary IiFor Salen signs, or for the pm...-pose of exercising its option as hereinabove provided for making repairs to the leased premises which are the responsibility of LESSEE and which LESSEE fai.ls to make" or for the purpose of exhibiting the premises to any prospective purchaser or mortgagee of the leased premises or any portion thereof or for the purpose of exercising any right or option berein granted LESSOR, without any rebate of J::'ent and wit.:l"wut any liability to the LESSEE for any loss of occupation or qttie'c enj o}l11lent of tbe preIr.ises thereby occasioned. LESSEE shall permit LESSOR, at any time within ninety (90) days prior to the e)~iration of the tentt, to place upon said premises any usual or ordinary liTo Let!! or rlTo Leasel~ signs and to permit the entJ:.Y during said period of LESSOR for the purpose of exhibi'ting the l?remis.es t'? any pro~pec:tive tenant. Such entry- shall not' lnterfere vn.."Ch normal lJUSl.ness operations. 8 15. Damage or Destruction or Premises' A. In the event of a partial destruction of the. premises during the lease term resulting from any of, the causes insured against by the California Standard FOr1U fire insurance policy with extended coverage endorsemerit, which said partial destruction does. not render the leased premises untenantable, LESSOR shall repair or otherwise restore said premises as speedily as possible, provided, however, that in such repair or restoration, LESSOR shall not be obligated to incur any expense in excess of the insurance proceeds payable as a result of said partial destruction. Such partial destruction shall in no vlaY annular void this Lease, except that LESSEE shall be entitled to a proportionate reduction of rent while such repairs or restorations are being made, such propor~ionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by the LESSEE in the leased premises. If such partial destruction shall cause the premises to become untenantable, or in the event of a total destruction of the premises f or if the partial destruction shall result form a cau.se not insured against as aforementioned, or if the insurance proceeds payable do not adequately provide funds for repair or restoration, the LESSOR shall give written notiCe: to the LESSEE within ninety (90) days after the occurrence of such destruction or LESSORls election either: (l) To repair the premises r us :Lng any available insurance proceeds and supplying additional funds; or, (2) To, terminate this Lease, receiving and re.ta.ining' all insurance proceeds free of any claim by J""ESSEE, as a result:. of or arising out of such termination. B. In the event. 'CDe LESSOR is obligated or elects to repair or restore damage to the leased premises, such repair or restoration shall encompass only that portion of the leased p!emises iI/h,ich was original~y cons'trt:cte~ ,or added by ~E~SOR and shall not ~nvolve the repa1.r or res"t.ora'\:.lon of any f1.x'\:ures or al terations inst.alled by LESS1::'J'S.. unless those fixtures or altE~ratio:t'1s' are pEort of the realty and belong to LESSOR and are covered by LESSOR's insurance pelicy. C0 For the purpose of this paragraph, the leased premises shall be deemed untenantable in the event more than .thirty percent PO:;'.:) of total square footage of tb.(;t, improve:ment:.s. e:t'c-'!cted upon 'l:hc~ leased premises are dest.royed unless LESSEE IIESS(rF~ a~;rree otJ1er,~,ise i:tl 1rlritjpng $ 9 D. In repairing or restoring the leased premises; LESSOR shall not be liable for any delays resulting from strikes, OI:' other labor disputes, acts of the elements or other causes outside LESSOR's control. E. LESSOR ag:;ees that LESSOR \'lill obtain; pay the premiums on and maintain. ~n force a California standard form fire insurance policy with extended coverage endorsementr insuring the leased premises for an amount at least e0"a1 to the re~~irements of the holder of any first mortgage on the leased premises. " F. In the event of any dispute beb'leen LESSOR and LESSEE relative to the provisions of this paragraph, they shall each select an arbitrator, and the two arbitrators thus selected shall select a third arbitratorl and the three arbitrators so selected shall hear and determine the controversy and their decision thereon shall be final and binding upon both LESSOR and LESSEE, who shall bear the cost of such arbitration equally between "lenL, 16. AssicrnTI'ent and Sublettinq LESSEE shall not voluntarily assign this Lease or any interest therein and shall not sublet the said premises or any part thereof, or any right or privilege appurtenant thereto, or' suffer any other person (customers, suppliers, guests, agents and serva.nts of LESSEE excepted) to occupy or use the said premises or any portion thereof, id thout the vlr i tten consent of LESSORf v.'h1ch consent shall not be unreasonably vrithheld. 1"- consent by LESSOR to one c:ssignment, subletting, occupation or use by any other person shall not be deemed to be consent to any slwsequent assigF.Jnent f suble'cting f occupation or "Use by another person. Any' such assignment, subletting or occupation or use ,"\>,rithout the i'rritten consent of LESSOR shall be void! and shall! at, the option of LESSOR; constitute a breach of this Lease, giving rise to alL remedies of LESSOR for breach or default set out in this Lease. This Lease shall not be, nor shall any interest therein be assignable as the interest of k~SSEE by operation of law without the writt,8n consent of LESSOR$ Imv ~cransfer or share.s of st,ock in LESSEE, in excess of twentY-fb7e percent: (25%) of the outstandi.ng shares shall be deemed an assignment:, recll1.iring LESSORW s prior written consent.. LESSOR, f S consent shall not. be unreasonably vii thhe.ld. LESSEE shall pay LESSOR 11 ED reasonable att::..rney! s fees and costs incurred. in cons:ide.ri.:ng a reCJues.t for conse.nt to assignmen't or subletting. In t;he eVen't that LESSEE assigns or sublr:ots this Lease ai: a hi crher renta.l .than the rental forth hereino one-half (1/2) such increased rental shall be paid to LESSOR. ., n 1..," 17. Insol veney or Bankruptcy The appointment of a receiver to take possession of all or substantially all of the assets of. LESSEE" or a general as~~gnme~t by the LESSEE for the benefit of creditors, or any aC"l:J.on taken or suffered by or against LESSEE under any insolvency .or bankruptcy remedies of LESSOR for breach of this Lease, glvlng rise to all remedies of LESSOR for bre.ach or default set out in this lease. For ~ne purpose of this paragraph, the occurrence of any of the foregoing events to" or any prohibited action taken by any person or entity guaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action Vlere taken by LESSEE. l8< Remedies For Breach In the event of any breach of this Lease I or any covenant, condition or p:::ovision hereof by LESSEE which continues after LESSOR hasgivE:.n ten (10) days i notice to LESS}~E of such breach as herein provided, the LESSOR I besides other rights or remedies it may have,! shall have the rights and remedies s",t forth below. (If th.a breach concerns maintenance or repair of the premlses, such main.tenance or repair must be undertaken vlithin thirty PO) days and proceed to conclusion without unreasonaPtle delay.) A. LESSOR shall have the immediate right of entry yd thout prior notice or demand and may remove all persons and property from premises, removing such property and storing the same in a public warehouse or elsevlhere at the cost of and for ".;.he account of LESSEE. B. Should LESSOR elect to enter, as herein provided. or should LESSOR taJ;:e possession pursuant to t:he legal proceedings or pursuant to <:in:J{ notice provided fo~ by law, LESSOR may ei tl"ler: (1) Ter.minate the Le.ase; or (:2) From time to time \ilit:hout termina:clncr I,ee,se and '(vithout the necessity of notifying L1l:SSEE of the factI' relet said premises or part thereof for such . te:J::"!l1 or terms (v!hich luay bE,J; for a terrll extending -t:he 1:e:1:'111 of Lec~se) and at: such rental or and upon such o'cher 'cerms and conditions as I.J1~SSO:R i:t:.s sCile discr'etion, yaajr ~'li th :righ"t alterations and renairs to said nrerrises. '" "', '=, I) ""~ "" Q "'" SUCrA 1: e.J. shall be lJl1Jll2d,1.at:e1.y to any 11 ~-r t I -:.' ~;~ if,""'" .-.' (a) The costs and expenses (including attorney's fees and any real estate c01llID.ission) of such reletting and of such alterations and repairs incurred by LESSOR; Cb) The amount, if . any, by which the rent reserved in this lease for the period of such reletting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the leased premises for such period of such reletting; (c; LESSEE shall: (1) Pay such amounts to LESSOR immediately upon demand thereofl or (2) at the option of LESSOR such liability shall be paid as follotvs: Rents received by LESSOR from such r.?letting shall be applied first, to the payw,ent of any indebtedness ,ather than the fixed minimum and percentage rate due hereunder from LESSEE to LESSOR; second, to the payment of any costs and expenses (including attorney I s fees and .any real estate. commissions) of such reletting; third, to payment of fixed minimum percentage. rent due from and unpaid by LESSEE hereunder. The residue, if any, shall be held by LESSOR and applied in payment of future installments of fixed minimum and percentage rent as the same may become due and. payable hereunderw If LESSEE has been credited with any rent to be received by such reletting under option (1) and~uch rent shall not be promptly paid to LESSOR by the neVI tenant; or if such rentals received from such reletting under option (2) during any month be less than that to be paid, LESSEE shall ilfu~ediately upon demand therefor pay any such deficiency to LESSOR. No such entry or taking possession. of said prGcmises bv'" LESSOR shall be construed as an election on its part fo tel~inat~ this Lease unless a vlritten notice of such election to terminate be given to LESSEE or unless the -termination thereof be decreed by a court of competent jurisdiction. Notwithstanding any such reletting without termination, LESSOR may at any time thereafter elect to terminate 'this lease for such. previous breach. Should LESSOR at anytime terminate. this lease for any breachr in addi tioD . to other remedies LESSOR may have G LESSOR may recover from the IiliSSEE all damages LESSOR :may incur by reason of such breach, including the cost of recovering the premises! reasonable attorney1s feesf real estate commissions and including worth at the time of such termination of the excess, if anYr of the amount of rEmt. and charge.s equivaleirt. to rent rese:rved in the ..tease for the remainder of the stated ten.! ever .the then reasonable rental. value of the nremises it)!:' the remainder of the stat.ed. tel.lUj' all of vrhich amount shall be im:mediately due and payable from IiliSSEE to LESSOR. Imy ent.ry LESSOR pursuant:. to the provisions of this Lease shelll be all LESSEE viithout cmy interference and :LESSOR shall not be: liabl(~ for d.a:mages for a.nv such ent:rv r or be guilt'v of trespass cr forcible;). or detainer. ~ ~. 12 .. .' The notice of breach required by this Lease shall be ten (lO) days if the breach consists of the failure to pay money $ and thirty (30) days i.f the breach consists of anything other than the failure to pay money. 19. Attorney's Fees If either party shall commence an action to enforce any of the terms 0;:: provisions of this Lease, including actions f;.=:;r unlawful detainer or an aC1:l0n for declaratory relief ..to determine or construe this Lease, then the losing party in such action shall pay to the prevailing party such sums as the court may determine as just and reasonable as and for attorney1s fees. 20. Surrendpr of Lease. Voluntary or other surrender of this Lease by LESSEE or mutual cancellation thereof, shall not Hork a merger, and shall, at the option of LESSORg terminate all of any existing subleases or subtenancies, or may I at the op-tion of LESSOR, operate as an assigm:nent to It of any and all such subleases or subtenancies. Nothing in this paragraph shall be construed as a consent by LESSOR to the creation of such sw)lease or tenancies. 21. Holding Over Any holding over at the expiration of the term of this Lease, 1irJ.th the consent of the LESSOR! shall be construed to be a tenancy f:cOTll month-,to-'illonth at a fixed :minimum rental equal to the last month of t:11e lease term, and shall othen>lise be on the terms and conditions herein specified. 22. Surrender of PreInlses on Expiration of Term On. the last day f or sooner termination of the lease term, LESSEE shall quit and surrender the premises.!' broom-cleanf in good concH tioD and rep2dr (reasonable wear and tear and dam~g; by' acts of God excepted), together with all alterations, addltlons and i:mprovemer:rts which may have peen inn to or on the premisesii' except :mo\'able furnit.ure and/or unat:tached movable' tra.de fixtures - . installed at the e:x:pense of LESSEE ~ specifically, zLl1 buil t~in. cabinetsg counters, desks and shelves shall remain and become propert:y of LESSOR@ .2 3 n JrlsUral1QSl -CarIn this lease.. LESSE:r~ 0i1!l ~ " "J...~ J_3 1'7 ~ t_ Ao ?ublic Liability Insurance Provide and keep in force for the benefit of LESSOR and. LESSEE comprehensive general public liability.insurancepolicie.s, in insurance companies and in form of coverage satisfactory to LESSOR, protecting LESSOR and LESSEE against any and all liability. in an amount of $1,000,000.00 per occurrence to LESSOR and LESSEE for both bodily injury, death or property damage incurred by reason of LESSEE! 5 operation in, on or about ~he premises. said policies shall provide for at least thirty (30) days' written notice to LESSOR prior to cancellation or material change. The LESSOR shall be named as additional insured on the policy. LESSOR reserves the' right to increase the. required amount of public liability insurance from time to time during this lease if LESSOR reasonably believes additional coverage is required. If LESSEE shall fail to carry any such policies, LESSOR. at its option, may G but shall not be obligated to carry such policies; and the amounts paid by LESSORr vlith int'erest thereon at the legal rate from the date of payment, shall become due and payable by LESSEE, as additional rent, with the next succeeding installment of rent. Payment by LESSOR of any 'such premiuIDs or the c2rrying by LESSOR of any such policy shall not be, nor be deemed to be, a waiver or release of the default of LESSEE with respect thereto, or the right of LESSOR to institute su:mmary proceedings and/or take such other action as may be permissible hereunder as in the case of default in pa:l:ment of net rent. Bo Fire Tnsurance I~SSOR agrees to purchase and keep and e)(tended coverage insurance covering the determined by LESSOR~s insurance companyVs shall be fo~ full replacement valu80 . in full force! fire leased premises as appraisers, which c. certificate of Insurance p~t the commencement of th.e term of this. Lease, LESSEE shall. delive:l:" to LESSOR certificates of insurance manifesting recr-1ired coveragef and at least thirty (30) days prior to the e)~iration of each such policy or policies, LESSEE shall pay the premiums for renevlo.l insurance and wi thin silch period shall deliver to the LESSOR the original- policy or duplicate original wi.th an endorsement thereon :marked i!paidU and/or duplicate r'eceipt, or other Inform::lt:ion satisfactory tc;J the. other, evidencing payment 'chereof" If the original polIcy of any such insurance sYwll be required to be delivered to the beneficiary any mortgage or deed of trust to \vhJ..ch this J':'ease is subj Bet, and subordinate, the duplicate original or certificate of such policy shall be delivered to LESSOR upon request. LESSEE shall have. the, rig:bt to maintclin reqLll.re.d insurance under blanket policies. 14 ::;; .... D. Workeris Compensation with regard to any carried by LESSEEp the LESSEE right of subrogation against assignees or agents) I a.nd such waiver of subrogation. Worker's Compensation insurance agrees that it shall waive the the LESSOR (or its employees, insurance shall provide for such E. Waiver of Subrogation \vith regard to any insurance required to be carried by LESSOR and LESSEE pursuant to this Lease, both LESSEE and LESSOR agree that nei t,her shall have the right of subrogation aga1nst. the other (or its employees t assignees or agents) F and such insurance shall provide for such waiver of subrogation. 24. IndemnificatiQrl LESSEE shall indemnify and hold LESSOR harmless and defend LESSOR from any and all claims of liability for any injury or damage to any person or property what.soever incurring" in I on or about the leased premises or any part thereofp other than claims of liability arising from the negligence or'Y-!rongdoing of LESSOH or LESSOR's agent. 25" lIt:LU,~ies LESSEE shall pay directly for '\vater I gas! electricit:y and telephone services and all ot:b.er ut.ilities supplied to -thE:~ leased prmnises. lESSEE shall also pay for:' 'ehe removal of all;rarbage from the leased premises. 26. .'J'axe2. "P-. Personal Property T.a)I~-E. LESSEE shall po.y before delinquency any and all taxesJ aSSBE;sments F license fees; and puJ::'lic charges levied, assessed or imposed and whicll become pavable durincr the lease teJ.:111 LESSEE IS fixtures f furnitur~ appl ianc~s If personal property installed o):~ located on the premis';s. - . E." Rea1Jrop-e~:laxes--'-Lessee I s prored::a Sha:r:~ I-lEISSO}:. as a piq before delinquency any and . reo.l.property ~caxes! inc1.u~ing specia.l aga:mst tne leased premlses ana. the . t:he~ leased px:emises are situated. loca~ or munlclpal assessed on uding ?nd income taxes t:. C}f IJ~BSOI( g s. LESSOR s:ball municipal, county or assessments, assess of. land: upon Fhir::h. sb.all so, pay ()r rerrt:.al lnco:m.e 15 LESSEE shall, during the term of this Lease, pay its prorata share of all such real property taxes for the Shopping Center where the leased premises are located in the proportion to the rentable floor area that LESSEEfs premises bears to the total rentable floor area of all buildings from time to time completed in the Shopping Center, whether or not leased. LESSEE shall pay to LESSOR within fifteen (IS) days after LESSOR submits a bill therefor, LESSEE's share of such real property taxes. LESSOR shall submit to LESSEE a true copy of each current tax bill, and a statement showing the total square feet of all rentable buildings in the parcel represented by that tax bilL 27. Exclusivity and Other Tenants .<, LESSOR agrees that during the time this Lease is in force, LESSOR will not lease other premises in Dublin Square solely as an automobile supply paint store. 28. Subordination LESSEE agrees that this Lease shall be subordinate to any mortgages or trust deeds that may hereafter be placed upon the premises, to any and all advances made or to be made under them, to the interest and all obligations secured by them and to all renewals, replacements and extensions of them. Provided, however, the mortgagee or beneficiary named in any such mortgage or trust deed shall recognize the Lease of LESSEE in the event of fore- closure, if LESSEE is not in default under the terms of this Lease. If any mortgagee or beneficiary elects to have this Lease superior to its mortgage or deed of trust and gives -notice of its election to LESSEE; then this Lease shall be superior to the lien of any such mortgage or deed of trust, whether this lease is dated or recorded before or after the mortgage or trust deed. LESSEE shall, at any time and from time to time, upon not less than ten (10) days' prior request by LESSOR, execute, acknowledge and deliver to LESSOR a sta"cment certifying that this Lease is unmodi.fied and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications) and the dates to which the fixed rent and other charges have been paid in advance, l-t being intended any such statement delivered pursuant to this subparagraph may be relied upon by any prospective purcl1ase:r: or encumbrancer (including assignees o:E either; of the Shopping Center. .., r .to I-r- I 1':/ 29. Transferor Reversio~ In the event of a sale or conveyance or other transfer by LESSOR of LESSOR I S interest in the leased premises, the same shall operate to releas LESSOR from any future liability, herein contained in favor of LESSEE I and in such event LESSEE agrees to loot:: solely to the responsibility of the successor in interest of the LESSOR in and to this Lease. If any security be given by LESSEE to secure .the faithful performance of all or any of i;:he. covenants of this Lease on the part of LESSEE, LESSOR may transfer andj/or deliver the security as such, to the purchaser of the reversion" in the event that the reversion be sold, and thereupon LESSOR shall be discharged from any further liability v1i th reference thereto. 30. Rules and Rec~lations LESSOR reserves the right to issue such reasonable l-ules and regulationsj relating to the use and occupancy of the leased premises and the access f parking and co:nrmon areas of the Shopping Center as LESSOR may deem appropriate for the best intE'orest of the LESSEE and other tenants in the building. Such rl1.les and regu.lations may include, with limitation: A. 'I'he right to closer if necessary r all or any portion of the con~on area, sidewalks; roadsf access roads, malls and other facilities to such extent as may p in the opinion of LESSOR, be: legally sufficient to prevenJc dedication thereof or the accrual of any :t"ights of any person or of the publi.c therein and no such closing shall be deemed an eviction of LESSEE nor shal.l any., :r:ebate or diminution of rent resul.t from such closing; B. The right to control time for loading and unloading of merchandise-and the placement and times of disposition of garbage, trash and debris; c. The right too designate employee parking areas. LESSEE shall abide by Sl1C.tl rules and cooperate in the observance thereof. Such rules and regulat.:Lons shall be binding upon LESSEE: upon de.livery of a COp~l tbereof to. the LESSEE. . 'rhe :t-ules :re:;rulations may be amended by the L.ESSOR from time to time 'Vl'J or without advance noticel and all amend:men'ts shall be ef:fect~7e upon delive::cy a copy of them to the I..ESSEEq li~ll rules promulga pursuant this paragraph shall be. approved LESSEE before taking effect. 31. of the of and each 1.7 :-r t f 32. No Joint Venture or Partnership Nothing herein shall be construed as, nor shall this Lease creat~ a joint venture or partnership by and between LESSOR and LESSEE. 33. Notices All notices, statements, demands, request, consents, approvals, authorizations, offers, agreement, appointment or designations under this Lease by either party to the other shall be in writing and shall be deemed duly given and served upon the other party if delivered personally to the recipient, upon such delivery, and if sent by mail, upon deposit in the mails, postage prepaid and addressed as follows: To the LESSOR: BERKELEY LAND COMPANY, INC. l2l1 Newell ll.ve., suite 120 Walnut Creek,CA 94596 'I'o the LESSEE: William A. Biggs L>1.lvrLEY 1 s, INC. 11819 Dublin Blvd. Dublin, CA 94566 34. Waiver of Breach No waiver of any condition or covenant of this Lease or of the breach of any condition or covenant shall be taken to constitute a waiver of any subsequent breach of such condition or covenant, or to justify or authorize the non-observance on any other occasion of the same or any other condition or covenant hereof, nor shall the acceptance of rent by the LESSOR at any time hereof be construed as a waiver of such default or of the LESSOR's right to terminate this Lease on account of such default, nor shall any waiver or indulgence granted by the LESSOR be taken as an estoppel against the LESSOR. 35. C~tions The paragraph and subparagraph captions of this Lease are for convenience only and are not a part of this Lease and do not in any way limit or amplify the terms of provisions of this Lea.se. 36. ~su~c?ssors and Assis-ns. This instrument shall be binding upon and sball inure to the benefit of the respective parties, their successors, assigns, legal represent.a.tives". providedthci.t t.bis clause shall not permit any aEsignment cont.rar:y t~o the provisions prohibiting assignment 18 l.-r 1 ~ 37. Interpretation The language in all parts of this lease shall in all cases be construed as a whole and simply according to its fair meaning and not strictly for nor against the LESSOR or the LESSEE, and the construction of this lease and any of its various provisions shall be unaffected by any claim, whether or not justified, that it has been prepared wholly or in substantial part by or on behalf of the LESSOR. 38. Invalidity of Particular provision If any term or provisioll of this Lease or the applicability thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, "then the remainder of this Leasep or the application of such term or provision >co persons other than those as.to Which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the full extent permitted by la\v. 39. g,overninq Law This Lease shall be interpreted and construed according to, and the conduct of the parties hereunder shall be governed by, the laws of the State of California. LESSOR: LESSEE: BEP~ELEY LAND COMPANY, INC. By: (-c:.~. r j;; ",/ ( Cf( 7- .--:J ~;Jt~ . ~~~r-'j "',,' ""'."""""__ /" ,,~, ~--..~ ~/X:::::>~"';T ,<- /---- L ( P' In-n 4J{jAtlq.~ William A. B~4g1s Its: 19 , ->".;;: lib DUBLIN SQUARE LEASE THOMPSON PBE. INC. A Delaware Corporation 11815 Dublin Blvd. Dublin. CA 94566 1. Parties This lease is made this 12th day of September. 1997. by and between BERKELEY LAND CO.. INC.. herein called "LESSOR". and THOt.1PSON PBE. INC.. A Delaware Corporation. herei.n called "LESSEE". 2. Premises For and in consideration of the covenants and agreements hereinafter mentioned to be kept and performed by the parties. the LESSOR hereby leases to LESSEE. and LESSEE leases from LESSOR. a portion of the building area on real property situated in the City of Dublin. County of Alameda. State of California. and more particularly described as follows: Approximately 1470 net souare feet located at the Dublin SQUcire. The street address is 11815 Dublin Blvd.. Dublin. California ("the leased premises") 3 . L~M~ T~,J!l A. 1. 1997'. C OlIlU<.fill.s:i...em e rLt. . This lease term shall commence on October B. tni..:tL."JJ. Ter:m.. The intial term shall be for a period of thirt.\1 (30) months. commencing on the commencement date described a bo',,-e. 4 . Rs..n.t. One A . l:t2U.:t,bJ.Y.......R~.~llt_ . 1housand and Twenty The initial base monthly Nine Dollars ($1.029.00>. rent shall be The first month's rent payment shall be due uPon execution of this Lease. 1 B. Ilue Date ~nd IJate Cba.r....~_6.. payable by LESSEE on or before the in advance. and delinquent if not tenth (10th) day of each month. All rental Payments shall be first (1st) day of each month, received by the LESSOR by the In the event that the minimum monthly rent is not recehred by LESSOR Hithinten CI0) dars of its due date, LESSEE agrees to pay to LESSOR as additional rent a late charge of five percent (5%) of the rental amount due. 5. I1L?e and Pr9hibj,:t.ilii~)3 The leased premises shall be used solely for an automobile paint supply store. LESSEE shall not. Without the prior written consent of LESSOR. use or permit said premises. or any part thereof. to be used for any purpose or purposes other than the purpose or purposes for 1'1hL'h the said premises are hereby leased. No use shall be made or permitted to be made of the said premises. nor acts done. which Hill increase the existing rate of insurance upon the leased premises, or any part of the leased premises. unless LESSEE shall pay the difference be:tween normal insurance rates for similar businesses and such increased rate, which additional costs shall be deemed rent herein and paid to LESSOR on demand. Nor shall LESSEE cause a cancellation of any insurance policy covering the leased premises or any part of the leased premises . nor shal.l LESSEE keep, use or sell, or permit to be kept. used or sold. in or about the premises. any articles which may be prohibited by the standard form of fire insurance policies ,,1 th extended coverage. LESSEE she.ll, at its so cost and expense. comply with any and all requirements pertaining to s<3.id premises, of any insurance organization or company necessary the maintenance of reasonable fire and public liability insurance. covering any part of the leased premises. LESSEE shall not commit. or suffer to be committed. any waste upon the premises or any nU.isance. or other act or thing which may damage the leased premises or disturb the quiet enjoyment of owners or tenants of adJoing parcels of real property. 6 ~ BJJ...s.jYJJeJI.etJ.{QJl1:Et shall continuously, during the entire lease term and any renewal thereof. conduct and carryon LESSEE's business in the ed BeG and shall the premises open for business and 6 to be conducted thereon during each and every inese day for such number of hours each day as 1s customary for businesses of 1 r being conducted in the area in ~hich the leased p:t'emises are locc"ted: provided. hOv,re'ver, the,t this provision shall not apply if the leased premises shall be closed ", L. '- 1<6) ~""\,-,,, t {- iLr ,;~ #1~ #(oj \. . (Fl' ~,-, ....'~ ;' U and the business of LESSEE therein shall be temporarilY shut down on account of strikes. lockouts or causes beyond control of LESSEE. 7. Parkin~ and Common Areas A. n,"" "" oj: , ~.... 4 . .;.. t .; . - ~- ~ The term "Shopping Genter" means the entire area within the outer property limit shown on the plot plan attached hereto and marked Exhibit.. A" and all" other pieces or parcels of land at any time or from time to time designated by LESSOR for use as part of the Shopping Center. Any additional property designated by LESSOR for use as part of the Shopping Center shall be included until such designation shall be revoked by [,ESSOR. Any portion of the Shopping Center that may be taken by eminent domain. private purchase in lien of eminent dome.in. or dedicated for public use. upon such taking. purchase or dedication. shall be excluded. The term "accommodation areas" means all areas and facilities outside the premises that are provided and designated by LESSOR for l2.'eneral use and convenience of LESSEE and other LESSEES of all or any part of the Shop-pin.e: Center and their respective employees. customers. and invitees. Accommodation areas include. but are not limited to. parking a:n~as. pedestrian sidewalks and landscaped areas. The site plan of the ShOPPing Center is attached hereto as Exhibit "B", and the LESSOR reserves the right from time to time to make changes in the shape. size. location. number and ex.tent of improvements. buildings. accommodation areas. parking layout or areas. and other improvements and to eliminate or add any improvements or bUildings to any portion or the Shopping Cen-ter: provided. however. LESSOR shall comply with Sub-paragraph B. below. During the term of this Lease. LESSOR shall operate. manage. and maintain all parking areas. road and accommodation areas within the Shopping Center. The manner in which such areas and facilities shall be maintained and the expenditure for maintenance. shall be at the Bole discretion or LESSOR. provided that LESSOR is obligated to reasonably maintain the areas and fa.cilities for the benefit of tb,e ShOPping Center. LESSOR shall manage the accommodation areas at direct cost to LESSOR. LESSOR shall use good faith efforts to economize on costs. consistent with ~ood business practices. The use of such areas and facilities shall be subiect ~o such reasonable regulations and chan~eB as LESSOR hereby ~rantB to LESSEE. durin~ the term of this Lease. the right to use. for the benefit of LESSEE and LESSEE's erilplovees. ai?ents, customers a.nd inyi tees in common Hi th o-ther tenants of the Shopping Center. their employees. agents. customers and invi tees. c; 11 common areas. iI1Cluding the accommodation areas. tb.e parkinB: a:r'eas. and road, sub.i ect to any riE;:h.ts. pO~Jers and urivileges resrved to LESSOR. No parking fees shall be established and no meters shall be used. ") ,,' , I , \, B. Pa~kin~ Ar~ Within the limits of the Shopping Center. LESSOR shall have hard surfaced. marked. properly drained. adequately lighted and landscaped parking area or area, tog-et.her with the necessary access thereto. LESSOR reserves the right to change the parking areas and parking layout from time to time. The parties anticipate that; the area l"ill be devoted principally to parking, with reasonable provisions for landscaping, access and other accommodation areas. b C. L.e~ LESSEE and its officers. agents and employees shall park their c,~rs only in areas specifically designated for that purpose by LESSOR from time to time. Within five (5) days after request by LESSOR. LESSEE sha.ll furnish to LESSOR the automobile license numbers assigned ot its cars and the C.3.1"8 of all its officers. agents and employees. LESSEE shall not at any time park or permit. the parking of its trucks vehicles or the trucks or vehicles of others. adjacent to loading areas so as to interfere in any way with the use of such areas. nor shall LESSEE at any time park or permit "ete pad:ina of :L.ts trucks or the trucks of its suppliers or other. in any portion of the parking lot not designated by LESSOR for such use by LESSEE. This paragraph requires a diligent effort in good faith by LESSEE. and is not an absolute duty~ D . L.eLcB...e.e.:.'..B_J3.hiU:'f.:L...~a:r k :i n!2: t" C .QIDJJ~lL.~_ During this Lease. the LESSEE shall pay its ororata share of the common area maintenance costs including an administrative fee of 10%. Tenants proportionate share shall be a Bum equal to the product obtained multiplYing the total costs by a fraction. the numerator of which is the number of square feet in the premises and he:; denominator of Hhicb. j.s tot 3.1 SQuare feet of rentable frround floor c.rea. of all clreas in the ShoPPin,g Center. F' j ~ t,y !;u~ LESSEE covenants that from and after the expiration or earlier te cf this Lease. it shall not operate under or use any 1 lude the name of the Shopping Center or the T)rovisioDe of this paragraph etlall apply to any 7)(:":1:'(3011" f5..l"'Ifl ()I:-- cor"pot'a.tior:t. vitli,c::l1 c{.)n.'tr"ols or is (;cy.ltrollE;cl .~t)y LE 4 -.t'" ! <::2, ! Lvi: a v. Al.t.erat ion s A. kimi tp,tiQn LESSEE shall not make or suffer to be made any alterations of the premises or any part thereof. at a cost in excess of $1.000.00. without the written consent of LESSOR first had and obtained. and any additions to or alterations of the said premises. except movable furniture and trade fixtures. shall become a part of the realty and belong to the LESSOR at the expiration of this Lease or earlier vacancy of the leased premises by LESSEE. B. No Me.clJan j.c' s Lip.ns LESSEE shall keep the leased premises and property in which the leased premises are situated. free from any liens for work performed. materials furnished or obli~ations incurred by LESSEE. In the event LESSEE shall fail to do so. LESSOR may (but is in no way obligated to) pay any claims for any labor. services. materials. supplies or equipment alle~ed to have been furnished to or for LESSEE. payment for which may be secured by mechanic's or materialmen's liens a~ainst the premises or LESSOR's interest therein. Notwithstandin~ the foregoin~. however. LESSEE shall have the right to contest the validity of any such claim. If LESSEE so elects to contest any claim. LESSOR shall not pay said claimant if LESSEE f1.1rnishes such security as LESSOR in its discretion may require to protect LESSOR's interest. LESSEE a~rees to execute and file a notice of completion as provided in Section 1193.1(f) of the California Code of Civil Procedure within ten (10) days after the cOIDPletion of any contract for any work of improvement. LESSEE agrees to pay the fees and other charzes of completion. In the event LESSOR electe to pay any such claim. LESSEE shall reimburse LESSOR Hithin ten (10) days of demand therefor. In the event LESSEE fails to reimburse LESSOR within ten (10) davs. the lease shall be deemed in default in the same fashion as if LESSEE had not naid rent due in that sum. 1 0 . UQJ.,Il..t_~li.1...ru"~~oJ.:lSf~I22...i. r f'] A .. LE;,:; [.; EK.:-,~L-I1.iJ::.eJ.-:t3Q~tn:t.e.nanS:~--3...llii_Jiej2~Li.J;::.e,L LESSEE shc~ll at its Qi.m cost. keep. repair. rE;"i:::lace and maintain the leased premises and every part thereof. (excluding the foundation. roof and exterior walls which LESSOR agrees to repair G;nd ma.intain).. includi.ng glazing of store front. heating. air conditi.oning. electrical, plumbing:. yentile,ting, fire sprinkling' S'lstem. If any, cmd fire extin;;.mlshers, and the int;erior of the 5 premises. in good and sanitary order. condition and repair. LESSEE hereby waives all right to make repairs of any kind at the expense of LESSOR. as provided in Section 1942 of the California Civil Code and all rights provided for by Section 1941 of said Code. In the event LESSEE shall fail to keep said premises in 200d sanitary order. condition and repair. LESSOR m~Y. after giving LESSEE ~en (10) days' written notice demanding that LESSEE comply with the requirements of this paragraph. make or cause to be made Such repairs or other work as necessary to restore the premises to good and sanitary order. condition and repair. Any expense incurred by LESSOR in the exercise of lts option shall be paid by LESSEE immediately upon demand th~refor by LESSOR. B. LESSKE's Reimbu.rsement of LESSOR's Repair Kxpense;; The foundation. roof and exterior walls of the bUilding in ;:tnlch the leased premises are located shall be repah~ed and maintained by LESSOR at LESSOR"s direct expense. LESSEE shall reimburse LESSOR for such repair ex'penses of IJESSOR on the same prorate; basis as described in the paragraph entitled "Parki.ng and Common Areas". above. LESSOR s1:1all also repair and ma5.ntain the exterior painting. plumbing and electrical s':!stems in the common areas ared bu.ilding exterior. As to these last mentioned items. LESSEE shall reimburse LESSOR on the next billing period fol1o,.;ring the receipt of a billing therefor foJ.~ LESSEE's proratashare. 11 . Gomp 1 i a,~ H t th.....G"O~,Sin.t~JJ.1l.t..i.o~ U 6..e__ p", r..m j t, F; tD........ LESSEE shall. at its sole cost and expense. comply with all of the municipal. county. state. federal. and other governmental or quaSi-governmental authorities now in force. or which may hereafer be in force. pertaining to the leased premises. and shall faithfully observe in the use and occupancy of the premises all municipal and county ordinances and regulations. state and federal statutes and regulations and rules and regulations of any other governmental or quaSi-governmental authority now in force or which may hereinafter be in force. The :iudgment of any court of .iurisdiction. the decision of any arbitrator or the c\dm lon of LESSEE in an action or proceeding against LESSEE. whether LESSOR be a party thereto or not. that LESSEE has violated occup::mcy of premises. shall be conclusIve of that fact as LESSOR Notwithstanding anyth~ng to the . LESSEE may contest the validity of any snch ord statute. ::u1e or rei Jltltir)n or the applicability the:';,c'to to , at;; LESSOR 11 i~'1 LEsson' f:: conteGt (including 'cln:i- C,PI"e<:~ls fe" an:\' r'medi\?J:Y court. or atithori tieS'<) shall prove unsuccessful. LESSEE shall forthwith comply with said ordi~ance, sta'tu.te. rule or regulation. 6 if:;') J'. 12. ~rv bv LES~QB LESSEE shall permit LESSOR and its agents to enter into and U1;Jon said premises at all reasonable times for the purposes of inspecting the same or for the purpose of making alterations or addi tions to any portion of the leased premises. including the erection and maintenance of such scaffoldin~. canopies. fences and props as may be required or for the purpose of posting notices of non-liabili tv for alterations . additions or repairs or for the purpose of placing u~on the leased premises any usual or ordinary "For Sale" signs. or for i;;hepur:oose of exercising its option as hereinabove provided for making repairs to the leased premises which are the responsibility of LESSEE and which LESSEE fails to make. or for the purpose of exhibitin~ the premises to any prospective purchaser or mortgagee of the leased premises or any portion thereof or for the purpose of exercising any right or option herein granted LESSOR. 'Id thout any rebate of rent and w-ithoutany liability to the LESSEE for any loss of occupation or quiet enjoyment of the premises thereby occasioned. LESSEE shall permit LESSOR. at any time within ninety (901 days prior to the expiration of the term. to place upon said premises any usual or ordinary "To Let;" or "To Lease" signs and to 'Permit the entry during said period of LESSOR for the purpose of ex.hibi ting the premises to any prospective tenant. Such entry shall not interfere with normal business operations. 13. ~~~LP~..&L A. In the event of a part tal destruction of the premises during the lease term resulting from any of the causes insured against bv the California Standard Form fire insurance policy with extended coverage endorsement. which said partial destruction does not render the leased premises untenantable. LESSOR shall repair or otherwise restore said premises as speedily as possible. provided. however. that in such repair or restoration. LESSOR shall not be obligated to incur any expense in excess of the insurance proceeds payable 0.6 a result of said partial destruction. Such pctrtial destruction shall in no way annul or void this Lease. except that LESSEE shall be entitled to a proportionate reduction of rent while such repairs or restorations are being made. such proportionate reduction to be based upon the ex.tent to which the making of such repairs shall interfere with the business carried on by the LESSEE in the leased premises. If t:;ucb. partial destruction shall cause the premises to become untenantable. or in the event of a total destruction of the premises. or if the partial destruction shall result from a cause not insured a~ainst as aforementioned. or if the insurance proceeds payable do not adequately provide funds for repair or restoration. the LESSOR shall give written notice to the LESSEE: -within ninety (DO) days ('?,fter the occurrence of such 1estruction or LESSOR's election either: '"1' ( Z,::.~, (1) To repair the premises. using any available insurance proceeds and suPPlYing additional funds; or. (2) To terminate this Lease. receiving and retaining: all insurance proceeds free of any claim by LESSEE. as a result of or arising out of such termination. B. In the event the LESSOR is obligated or elects to repair or restore damage to the leased premises. such repair or restoration shall encompass only that portion of the leased preillises which was originq~ly constructed or added by LESSOR and shall not involve the repair or rest.oration of any fixtures or alterations installed by LESSEE unless those fixtures or ali;erations are 1:Jart of the realty and b,:;lona to LESSOR and are covered by LESSOR's insurance policy. C. For the purpose of this paragraoh. the leased premises shall be deemed untenantable in the event more than thirty percent (30~;;) of the total square foota,t;e of the improvement.s erected Upon the leased premises are destroyed unless LESSEE and LESSOR agree otherwise in writing, D. In repairinJ2: or restoring the leased premL';es. LESSOR. shall not be liable for any delays resulting from strikes. or other labor disputes. acts of the elements or other causes outside LESSOR's control. E. LESSOR. agrees that LESSOr( will obtain. pay the premiums on and maintain inforce a California standard form fire insurance policy pith extended coverage endorsement. insuring the leased premises for an amount at least equal to the requirements of the holder of any first mortgage on th~ leased premises. F. In the event of any dispute between LESSOR. and LESSEE rela.tive to the provisions of this paragra1:jh. they shall each select an arbitrator. and the two arbitrators thus selected shall sele:ct a third arb! trator. and the three al::,bi trators 60 selected sh8..1.1 h.ear and determine the controyersy and their decision thereon shall be final and binding UPon both LESSOR and LESSEE. who shall bear the cast of such arbitration equally between them. 1.4, . LESSEE shall not voluntarily assign this Lease or any interest in and shall not the said premises or any part thereof. or any right or priv apPurtenant thereto. or r any other person (cus re. Euppliers~ guest~ agen~6 and servants of e.i~c'3PtE~d) to oco\..".P-:'1' or Use tb.e said prem1.see:; or an"?' port tnereof. wi the written consent of LESSOR. which consent shall not be unreasonably withheld. A consent by LESSOR to one assignment. 6Llblet::; occupation or use by any other pe:r'son sru:tll 8 L not be deemed to be consent to any subsequent assignment. subletting. occupation or use by another person. Any such assignment. subletting or occupation or use without the written consent of LESSOR shall be void. and shall. at the option of LESSOR. constitute a breach of this Lease. giving rise to all remedies of LESSOR for breach or default set out in this Lease. This Lease shall not be. nor shall any interest therein be assignable as the interest of LESSEE by operation of law without the written consent of LESSOR. Any transfer or shares of stock by LESSEE in excess of twenty- five percent (25%) of the outstanding shares shall b3 deemed an ass ignment. requiring LESSOR' s prior written consent. LESSOR's consent shall not be unreasonably withheld. LE.SSEE shall pay LESSOR's reasonable attorney's fees and costs incured in considering a request for consent to assignment or subletting. In the event that LESSEE assigns or sublets this Lease at a higher rental than the rental set forth herein. one-half (1/2) of such increased rental shall be paid to LESSOR. 15 . Ins 01 ~.ilQ.Y~~..Y. The appointment of a receiver to take possession of all or substantially all of the assets of LESSEE. or a general assignment by the LESSEE for the benefit of creditors. or any action taken or suffered by or against LESSEE under any insolvency or bcmkruptcy remedies of LESSOR for breach of this Lease. giving rise to all remedies of LESSOR for breach or default set out in this Lease. For the purpose of this paragraph. the occurrence of any of the foregoing events to or any prohibited action taken by any person or entity ~uaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 16. ReJJlf'&i.~~ In the event of any breach of this Lease. or any covenant. condition or provision hereof by LESSEE which continues after LESSOR has .g:iven ten (10) days' notice to LESSEE of such breach as herein provided. the LESSOR. besides other rights or remedies it may have. shall have the rights and remedies set forth below. (If the breach concerns maintenance or repair of the premises. such maintenance or repair must be undertaken within thirty (30) days and proceed to conclusion without unreasonable delay. A. LESSOR 8 11 have the immediate right of entry without 'prior notice or demc,nd and may remove all persons and property from premises. removing such property and storing the same in a public warehouse or elsewhere at the cost-of and for the account of LES 9 ! ""<'i '-1-" , , u' '") B. Should LESSOR elect to enter. as herein provided. or should LESSOR take possession pursuant to the legal proceedings or pursuant to any notice provided for by law. LESSOR may either: (1) Terminate the Lease: or (2) From time to time without terminating this Lease and without the necessity of notifYing LESSEE of the fact. relet said premj.ses or any part thereof for such term or trms (wh.ich may be for a trm extending beyond the term of this Lease) and at such rental or rentals and UPon such other terms and condi tions as LESSOR in its sole discretion may deem advisable with the ri,ght to make alterations and repairs to said premises. Upon each such reletting. LESSEE shall be immediately liable to pay the LESSOR in addition to any indebtednees other than rent due hereunder: (a) The costs and expenses (including attorneY's fees and ~nY real estate commission) of such reletting and of such alterations and repairs incurred by LESSOR: (b1 The amount. if any. by ",hich the rent reserved In this lease for the period of such reletting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the leaed premises for such period of such reletting: (0) LESSEE shall: (1) Pay such amounts to LESSOR immediately upon demand thereof. or (2) at the option of LESSOR such liability shall be paid as follows: Rents received by LESSOR from E;uch reletting' shall be applied first. to the payment of amr indebtedness. other t the fixed minimum and percentage rate due hereunder from LESSEE to LESSOR: second. to the payment of any costs and expenses (including attorney's fees and any real estate commission.s) of such reletting: third. to payment of fixed minimum percentage rent due; fl.~om c!.l1d unpaid by LESSEE hei>::::uJl.der. The residue. if any, shall be held by LESSOR and applied in payment of future installments of fixed minimum and percentage rent as the same may become due pa hereunaer~ If LE has been crecUt,,::d 'filth [,ny j:"Emt rj,'::' recei.ved by 6uch relett 1..1.nder (1) &nd such rent shall not be promptly to SSOR the new ten~nt. or if such rentals received such re u.:nder o"pt (2) dLl'?;,->ir:lg C1.:t1.'.\"t rU:)11t;:h t)~ lese~ tlla~ tb.,at to LESSEE shall tely ~pon demand therefor pay any 6~cll cleric tC) LtESS()R. 10 7: tf.l No such entry or taking possession of said premises bY' LESSOfl. shall be construed as an election on its part to terminate this Lease unless a written notice of such election to terminate be given to LESSEE or unless the termination thereof be decreed by a court of competent .iurisdiction . Notwithstanding any such reletting without termination. LESSOR may at any time thereafter elect to terminte this Lease for such previous breach. Should LESSOR at anytime trminate this Lease for any breach. in addition to other remedies LESSOR may have. LESSOR may recover from the LESSEE all damages LESSOR may incur by reason of such breach. including the cost of. recovering the premises. reasonable attorneY' 6 fees. real estate commiss ions and including the worth at the time of such termination of the excess, if any. of the amount of rent and charges equivalent to rent reserved in the lease for the remainder of the stated term over the then reasonable rental value of the prem.ises for the rremainder of the stated term.. all of which amount shall be immediately due and payable from LESSEE to LESSOR. Any entry by LESSOR pursuant to the provisions of this Lease shall be allowed by LESSEE without any interference and LESSOR shall not be liable for damages for any such entry. or be guilty of trespass or forcible entry or detainer. The notice of breach reauired by this Lease shall be ten Cl0) days if the breach consists of the failure to pay money. and thirty (30) days if the breach consists of anything other than the failure to pay money. 17. AttQrn~v"s F~~~ If either party shall commence an action to enforce any of the terms or provisions of this Lease. including actions for unlawful detainer or s.n action for declaratory relief to determine or construe this Lease. then the losing party in such action shall pay to theprevailin~ party such sums as the court may determine as just and reasonable as and for attorney"s fees. 18 , S U Y.:J:f'.J:l.dJ:>dLSJ f Ie a ~ Voluntanr or other surrender of this Lea.se by LESSEE or mu-:.ua.l cancellation thereof. shall not work a merger. and shall. at the option of LESSOR. terminate all of any existln.G<: subleases or subtenancies. OJ::' may. at the option of LESSOR. op~;::rate 2l1:: an aBsi~nment to it of any and all such Bub es or subtenancies. Nothing in this par,::tgraph shall be constrl1.ed as a consent by LESSOH to the cre,3.tion of such sublea.se or tenancies. i ' ". J. I Q-~! {JJ 1 (;) ,.-.." lJ 19. HQl.d.ing O\t~r.. Any holding over at the expiration of the term of this Lease. with the consent of the LESSOR. shall be construed to be a tenancy from month~to-month at a fixed minimum rental equal to the last month of the lease term, and shall otherwise be on the terms and conditions herein specified. 20. SU~p.r of Pr~mi.se6 on Expiration of Term .i~ On the last day, or sooner termination of the lease term, LESSEE shall qui tand surrender the premises . broom-clean. in u~ood conditiion and repair (reasonable Hear and tear and d5.mage by aots of God excepted). together with all 8.1 terations. additions and improvements 'V:rhich may have been in. to or on the premises, except movable furniture and/or unattached movable trade fixtures installed at the expense of LT\:SSEE. Specifically, all built-in cabinets. counters, desks and shelves shall remain and become the property of LESSOR. 2 1 . I nE'&r..illLQe.. During the ant expense. shall: term of this Lease. LESSEE at its orIn. A. Pu bJ i G rti.a.b.Jj,j~Y..-1~ Provide and keep in force for the benefit of LESSOR and LESSEE cOt'mreb.ensiire general public J ili tv insurance policies. in insurance companies and in form of coverage satis factory to I!ESSOR, protecting LESSOR and LESSEE against any and al11iabilit:r. in an amount of $1.000,QOO.00 per occurrence to LESSOR and LESSEE for both bodily in.iur;r, death or property damage incurred by reEuson of LESSEE's opera.tion in, on or about the premises. Said policies shall pl."OVide for .::l.t lea.st thirty (30) de,ys ' written notice to LESSOR prior to cancellation or material change. The LESSOR shall be named as additional insured on the policy. r'eser"\lf.=:S th_e~ 'public liab itv LESSOn rea,sonabb' right to increase the required amount of from to time during this if addi coverage is required. I-F' . ... [inti t,1:18 ; i~ a _~ ..../i.-} optio1. m cry~ , to carry any such policies. LESSOR. at obligated to carry such pol , ~fJ,ttl ~Gl1eJ:"eorJ. at the cf pc"~lmt)t!t, i2: 11 become due and paYable rV3xt Stlcc;eed,irlt2: 't c~f e,f ars.Y' pre'm:LtllilS cJr tIle policy shall not be. nor be deemed to a e of the ault of LESSEE with respect thereto. or r.'.~:;tJt, ~ LESSOE 01: any valver or :re 10 ..t...t." the ri~ht of LESSOR to institute summary proceedings and/or take such other action as may be permissible hereunder as in the Case of default in payment of net rent. B. Fi~ Insuranc~ LESSOR agrees to purchase and keep in full force. fire and extended cover~ge insurance covering the leased premises as determined by LESSOR's insurance company's appraisers. which shall be for full replacement value. The cost of any insurance procured by the Landlord is a common area maintenance cos.t for which the Tenant is obligated to contribute its proportionate share as described in T.(D) of this Lease. c. C~ of Insu,J:::anC;Q At the commencement of the term of this Lease. LESSEE shall deliver to LESSOR certificates of insurance manifesting required Coverage. and at least thirty (30) days prior to the expiration of each such policy or policies. LESSEE shall pay the premiums for renewal insurance and within such period shall deliver to the LESSOR the original policy or duplicate original with an endorsement thereon marked "paid" and/or duplicate receipt or other information satisfactory to the other. eVidencing payment thereof. If the original policy of any such insurance shall be required to be delivered to the benefiCiary of any mortgage or deed of trust to which this Lease is subjct and subordinate. the duplicate original or certificate of such policy shall be delivered to LESSOR upon request. LESSEE shall have the right to maintain required insurance under blanket policies. D. \1Q:rh:er 'R E~~.i.oJ:l \<lith regard to any Harker's by LESSEE. the LESSEE agrees that subrogation against the LESSOR (or agents). and such insurance shall subrogation. Comonsation insurance carried it shall waive the right of its employees. assignees or provide for such waiver of E . W..Q~-E.lib...r:.Pga t to D, \-1i th regard to anV' insurance required to be carried by LESSOR and LESSEE pursuant to this LeaBe. both LESSER and LESSOR agree that ne1ther shall have the ria:ht ofe;ubrogation against the other (or its ~mploYees. assignees or agents), and such insurance shall provide for such waiver of subrogation. 4 ~, J..v ~r~ .t,."$ 22. IndemrLj f'igation LESSEE shall indemnify and hold LESSOR harmless and defend LESSOR from any and all claims of liabili tv for any in.iury or damage to any person or property whatsoever incurring in. on or about the leased premises or any part ther'eof. other than claims of liability arising from the negligence or wrongdoing of LESSOR or LESSOR's agent. ? ~. ., -'-' . Q t i 1 i t L~fi.. ", LESSEE shall pay dtrectly for water. gas . electricity and telephone services and a 1 other utilities supplied to the leased premises. LESSEE shall also pay for the removal of all garbage from the leased premises. 24. 'I'.ax~e; A. GrsonQ~..rtv TaxeD LESSEE shall pay before delinquency any and all taxes. assessments. license fees. and public charges levied. assessed or imposed and which become payable during the lease term upon SEE's fixtures. furniture. appliances. personal property installed or located on the premises. B . Rea L_tr:DPe r.tL-1.ax..ejL~-'~J,-.l:l:.D rQ ta _ S h q, re LESSOR shall pay before delinquency any and all municipal. county or state real property taxes assessed against the leased premises and the parcel of la.nd upon 1;,Thich the leased premises are situated. LESSOR shall also pay any local or municipal taxes asses on rentals or rental income. LESSEE shall. durinr:r the term of this Lease, pay its prorate. share of all Guch real property taxes for the Shopping Center where the le~Bed premiSes are located in the proportion to the rentable floor area that LEGSEE~B premises bears to the total rentab_e floor area of all buildings from time to time completed in ShOPPing Center. whether or net leased. LESSEE shall pay to LESSOR within fifteen (15) davs after LESSOR submits a bill refer. LESSEE's share such real property taxes. LESSOn ehall enlbwL t to L 2. true COpy of e,s.ch current tax bill. and 1:1. st21..Je t "t.otal Squ.t,::tre feet of all reri.t:e~bl.e LCl in "tlle parcel represent tb.at t,,3.X bill. 14 I t:/I-\ '." i. /.t. ,,:- 25. E '~ rron.a.nt.tl LESSOR agrees that during the time this Lease i8 in force, LESSOR will not lease other ~remises in the Dublin Square ShoPPing Center solely a8 an autamabile paint supply stare. 26. Subo:rdinatiQn LESSEE agrees tha-t this Lease shall be subordinate to any martgages or trust deeds t,hat may hereafter be placed upon the premises. to. any and all advances made ar to be made under them. to. the interest and all obligations secured by them and to all renewals. replacements and extensians af them. Provided. hawever. the mortgagee ar beneficiary named in any such mortgage or trust deed shall recagnize the Lease of LESSEE in the event of fareclasure. if LESSEE is not in default under the terms of this Lease. If any mortgagee or beneficiary elects to. have this Lease superio.r to the lien o.f any such mortgage or deed of trust. whether this Lease is dated or recorded before or after the mortgage or trust deed. LESSEE shall. at any time and from time to. time. upon not less than ten (101 days' prior request by LESSOR. execute. acknowledge and deliver to LESSOR a statement certifying that this Lease is unmodified and in full force and effect (or if there have been madifications. that tbe same is in full force and effect as modified and statin~ the modifications) and the dates to which the fixed rent and other charges have been paid in advance. it bein~ intended any such statement delivered pursuant to. this subparagraph may be relied upon by any prospective purchaser or encumbrancer (inclUding asignees of either) of the Sho~ping Center, 27 T:..x:.an..s fer ("J~ V e :cRJ,..QXl In the event of a sale or conveyance or other transfer by LESSOR of LESSOR's interest in the leased premises. the same shall operate to. release LESSOR from any future liability. herein contained in favor af LESSEE. and in such event LESSEE agrees to look solely to the responsibility of the successor in interest of the LESSOR in and to this Lease. If any securlty be given by LESSEE to secure the faithful performance of all or any af the covenants of this Lease on the part of LESSEE. LESSOR ffiSY tran6~er and/or deliver the secur:Lty as such. to th(;:; purch(';lser of the reversion. in the event that reversion be sold. and thereupon LESSOR shall be dis any further liability with reference thereto. ~ .:.v\ .1..'-," /2 :~~: 28. Ru1es '2n.d...E.eguJation~,- LESSOR reserves the right to issue Buch reasonable rules and regulations. relating- to the use and occupancy of the leased premises and the access, parking and common areas of the ShoPPing Center as LESSOR may deem appropriate for the best interest of the LESSEE and other tenants in the building. Such rules and regulations me,y include. v<ith limitation; A. The ri~ht to close. if necessary. all or any portion of the common area. sidewalks. roads. access roads, malls and other facil! ties to such exte:nt "as may. in the opinion of LESSOR. be leRally sufficient to prevent dedication thereof or the accrual of an:! rights of any person or of the publ:Lc therein and no such closing shall be deemed an eviction of LESSEE nor shall any rebate or diminution of rent result from such closing; B. The right to control time for loading and unloading of merchandise and the placement and times of disposition of garbage, trash and debris: C. The right to deSignate employee parking areas. LESSEE shall abide by such rules and Cooperate in the observance there~f. Such rules and regulations shall be binding uPon IJESSEE l1.p::Jn delivery of a copy thereof to the LESSEE. The rules a:ld regu ions may be amended by the LESSOR from time to time with or without advance notice. and all amendments shall be effective upon delivery of a COpy of them to the LESSEE, All rules promulgated pursuant to this paragraph shall be approved by LESSEE before taking effect. 29 . T i rL\f;~....QS:.......t~..,=-.....eJ:;;'(i~.c-...fi Tim~ is of the essence of this agreement and each and every PE'.r'G t.h.ereo:E. ;3 0 . t{Q-~[Q~il2LY..e.r:..t_~1l:.s:Li.?J;:..--,':.Q,J;':.t~J:fJl.iJ2. Not.hing herein C:CU:lt,c;; a joint ventuy'e 1 construed as. nor shall this Lease or partnership by and between LESSOR and 16 '. 31 . Not, i CF;S All notices. statements. demands. requests. consents. approvals. authorizations. offers. agreement. appointment or designations under this Lease by either party to the other shall be in writing and shall be deemed duly given and served upon the other party if delivered personally to the recipient. upon such delivery, and if sent by mail. Upon deposit in the mails. postage prepaid and addressed as follows: To the LESSOR: Berkeley Land Company. Inc. 1211 Newell Ave.. Suite 120 Walnut Creek. CA 94596 To the LESSEE: Glenn Thompson THOMPSON PBE. INC. A Delaware Corporation 11815 Dublin Blvd. Dublin. CA 94566 32. W~LYer of Breach N6 waiver of any condition or covenant of this Lease or of the breach of am" condl tion or covenant shall be taken to constitute a waiver of any subseauent breach of such condition or covenant. or to Justify or authorize the non-observance on any other occasion of the same or any other condition or covenant hereof. nor shall the acceptance of rent by the LESSOR at any time hereof be construed as a waiver of such default or of the LESSOR's right to terminate this Lease on account of such default. nor shall any waiver or indulgence granted by the LESSOR be taken as an estoppel against the LESSOR. "Cl ,) \../ . Caption.s ----.-.-- The paragraph and subParagraph cap~lons of this Lease are for the convenience only and are not a part of this Lease and do not in any way limit or amplify the terms of provisions of this Lease. 34 . S uQ.2..~~~J. ~:~1itL5El!?. This instrument shall be binding upon and shall inure to the benefit of the resoective parties. their successors. assigns. legal re-oresentativec. orov:Lded tha..t this clau.se shall not. perm! t 8J1V assignment contrary to the provisions prohibiting assignment herein. . 17 ~r:?; I 35. Interpretation The language in all parts of this lease shall in all cases be construed as a whole and simply according to its fair meaning and not strictly for nor ~gainst the LESSOR or the LESSEE. and the construction of this lease and any of its various provisions shall be unaffected by any claim. whether or not justified. that it has been prepared ..,holly or in substantial part by or on behalf of the LESSOR _ il 36. Invalidity of Particular P1;:ovision_ If any term or provision of this Lease or the applicability thereof to any person or circumstance shall. to any extent. be invalid or unenforceable. then the remainder of this Lease. or the application of such term or provision to persons other than those as to i"hich it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the full extent permitted bv law. 37. G9'lerniw~Lq;;i This Lease shall be interpreted and construed according to. and the conduct of the parties hereunder shall be governed bv. the laws of the State of California. LESSOR: ---. ~.KSSEE: BERKELEY' LAND COHPANY. INC" Its: THO MP,9-8 t\~mr:-r i:*'G . 1:1 Det:;ja.re corp,ation ///1; I ~ By, fl/"'1 I FM-- r/d () J<1""", (j r I VI,,: -' Its:~_C_ /. ~I :::---::;rR<e '-I I r'l) ':;~V-... ,.--.... ( ) rrf '-- - . " "" -,' '" ~ """'-"'f!:~'-"""", : __u /7,"\ \ (-- <:;] CA~;),'!c-?,f ' ~.----v,r:;;..4--.-r--'--,..___._....____,~____ Frank Sabatte 18 " DUBLIN SQUARE LEASE THOMPSON PBE. INC. A Delaware Corporation 11819 Dublin Blvd. Dublin. CA 94566 ~ 1. Parties 2. Premises 3. Lease Term 4. Bent 5. Security Deposit 6. Tenant Improvements 7. Use and Prohibited Uses 8. Signs Page 1 1 1 2 3 3 3 4 4 4 6 6 9. Business Hours 10. Parking and Common Areas 11. Name 12. Alterations 13. Maintenance and Repairs 14. Compliance with Government Regulations Land Use Permit. etc. 15. Entry by LESSOR 16. Damage or Destruction of Premises 17. Assignment and Subletting 18. Insolvency or Bankruptcy 19. Remedies for Breach 20. Attorney's Fees 21. Surrender of Lease 22. Holding Over 23. Surrender of Premises on Expiration of Term 24. Insurance 25. Indemnification 26. Utilities .,...,. I '7 , 8 8 10 10 11 13- 1:3 13 i3 14 15 15 15 16 16 17 27 .. TlaJt6S 28. Exclusivity and Other Tenants 29. Subordination 30. Transfer or Reversion 31- 32. Rules a~d Regulations Time is of the Essence No Joint Venture or Partnership Noi:ices \"iEllver of Breach (:aTJ.tiorlS Successors and Assigns In-ternretation Invalidity of Particular Provision Governing Law " ,",' J_ I 18 18 .... " '1)~) ,. 34. 18 35, 36~ ~) 7 . as. 18 18 19 19 19 19 '"'Q .)v. 40. I -?, I-I ",,i' DUBLIN SQUARE LEASE THOMPSON PBE, INC. A Delaware Corporation 11819 Dublin Blvd. Dublin, CA 94,566 1. P~l~ti~L This lease is made this 1st day of April, 1.895, by and between BERKELEY LAND CO.. INC., herein called "LESSOR". and THOMPSON PBE.. INC.. A Dela\.-7are Corporation, herein call~d "LESSEE". 2 "- Prem.iJ3eA For and. in considerc.tion of the covenants and agreements hereinafter mentioned to be kept and performed by the parties, the LESSOE. hereby leaP-leG to LESSEE. and LES2.EE leases from IJESSOH, a. portion of the building area on real property situated in the City of Dublin, County of Alameda, S-;:;a"Ge of California. and more particularly desc~ibed as follows: Approximately 2600 net square feet located at the Dublin Square. The street add.ress is 11819 Dublin Blvd.. Dublin. Ccd.ifornia ("the If"3ased prerr;.ises to ) 3 ~ LA8....h~ fr!~nl A, QOm.ID~~llls..nt. 1, 1995. This lease term shall commence on April B. 111i.tJ.J2,l....T<e.:clJl. The 1nt ia.l term shall be for >3. period of i:i^(le (5) y'ea.L'S'1 comrnellC; ()n trle C()ll'lIaencemrr:;rlt, (late d.esc~ribed t~'b()'l;te ~ C. In addition to the have one (1 option to extend the consecutive term of five (5) yea~8. initial term. LESSEE shall lease for an additional D. In th..3 event LE:3SEE def:lres to xerci~e the give to written notice o~ eX~r]lSe of vian at least cne hundred e ty (180) before til<::: tt(::rn.1ir:t,s, '. j~C}Jl c~f t.b.e E;A:1st le~afje -t.er-rn _Q If t:he lon is exercised, tile lease shall continue upon all of the same terms and conditions, for the rent~ whi,ch shalJ_ be set forth below. [ cr'iS, 4 . Re.rLt A. Monthl~. The initial base monthly rent shall be Twenty Three Hundred and Forty Dollars ($2.340.00}. The first month's rent payment shall be due upon execution of this Lease. B. Due Date and Late Char~es. payable by LESSEE on or before the in advance. and delinquent if not tenth (10th) day of each month. All rental payments shall be first (1st) day of each month. received by the LESSOR by the In the event that the mini.roum monthly rent is not received bY LESSOR within ten (101 days of its due date. LESSEE agrees to pay to LESSOR as additional rent a late charge of five percent (5%) of the rental amount due. c. ~r~Qrease. The base monthly rent of Twenty Three Hundred and Forty Dollars ($2.340.00). as established in 4A. above. shall be increased (but never decreased) at the commencement of the third (3rd) year of the lease term by a percentage equal to the percentage increase in the San Francisco-Oakland-San Jose Consumer Price Index (All urban consumers. all items) as maintained bv the United States Department of Labor --"the lndex"--during the preceding years, at which the rent was at the same fixed rate. All comparisons will be based upon the Index figures for the commencement of the third (3rd) year. April. 1997. will equal the percentage increase in the Index from March. 1996. through March. 1997. However. the CPI increase shall not exceed seven percent (7%) per annum. or a maximum increase of twenty one percent (21%) r7% times three (31 years] at the CPI increase d~te. D. O-pJLLQIlJJ',;t.r:,:LD..JL.Jlan..:t. In the event the LESSEE exercises the option referred to in 3C. above, to extend the original lease term for an additional three years (31, the initial 'rent at the commencement of each additional three (3) yeErs shall be adjusted to the then current market value. However. this adjustment shall not result in a rental decrease. The rental adjustment shall be accomplished by the mutual written agreement of the parties. if possible. If the par~leE and their legal representatives cannot reach such an agreement within sixtv (60) davs prior to the commencement of the option period. the then current rental market value shall be determined bv the average of tl:u~ee (3) virl i~ten a-ppraisals from licensed and experienced real eej~ate appr~,:U3eri3. One such apprcdser shall be selected and paid bv e<.;,ch party. The third 8.ppraiser shall be selected by the first two appra5_sers and po.id one-half (1/21 by each party, :2 .: the LESSOR reserves the right from time to time to make changes in tl'e shape. size, location, number and extent of improvements, buildings. accommodation areas. parl\:ing la.yout or areas. and other improvements and to eliminate or add any improvements (~ buildings to any portion of the Shopping Center: provided. however. LESSOR shall comply with Sub-paragraph B. below. During the term of this Lease, LESSOR shall operate, manage. and maintain all parking areas, road and accommodation areas within the Shopping Center. Th.e manner in which such areas and facilities shall be. maintained and the expenditure for6 maintenance, shall be at the sole discretion of LESSOR. provided that LESSOR is obligated to reasonably maintain the areas and facilities for the benefit of the Shopping Center. LESSOR shall manage the accommodation areas at direct cost to LESSOR. LESSOR shall use good faith efforts to economize on costs. consistent with good business practices. The use of such areas 8.ud facilities shall be sub.iect to such reasonable regulations and changes as LESSOR hereby grants to LESSEE. during the term of this Lease, the right to use, for the benefit of LESSEE and LESSEE's employees, agents. customers and invi tees in common with. other tenants of the Shopping Center. their employees. agents. customers and invitees. all common areas. including the accommodation areas. the parking (:',1'ea6. and road, subject tc any rights. powers and privileges resrved to LESSOR. No parking fees shall be established and no meters shall be used. B. P..-a.rk inELJJ rea Within the limits of the Shopping Center. LESSOR shall have hard surfaced. marked, properly drained. adequately lighted and landscaped parking area or area. together with the necessary access thereto. LESSOR reserves i~he right to change the parking areas and parking layout from time to time. The parties anticipate that the area will be devot,ed principally to parking, with r,sasonable provisions for landscaping. access and other accommodation areas. c ~ L~:Q~eJ'~ ~s--E ~i..LUg, LESSEE and its officers. agents and employees shall park their c::;,rs only in o.ree.s specificc..llv deeignated for t,hat purpose by LESSOR from time to time. Within five (5) days after request by LESSOR. ['ES~3EE shall furnish -[,0 LESSOR the automobile llcexl.i:ie numbers assigned ot its cars and the cars of all its officers. agents and emplovees. LES~jEE shall not at anv t:Lm.c:: park OJ::' TX:2L'mit the parki,ng of its trucks y-ehicles or the truc~s or veh.icles of ()tl"'~,er6 ~ acen.t t,o lc)ar:t ar'ecu::~ so as t.o :Lri"'c.er'fer'c i::l. arl;?" W.~l'Y~ wi~h the use of such areas. nor shall LESSEE at any time or permit the ing of its ~rl~cks or the trucks of its iers or other. in a~y portion of the parking lot not des by LESSOR for 6UC}1 use by LE,&SEE~ This paregraph requires a diligent effort in good, fai trl LESSEE ~ a.fld is D.ot c~n. c:tDsol1.Jte d1.:ct.y ~ ~ .j ...., ""'-i ir~:' E. CPI Increase Durin~ Ontion ~. The monthly rent at the commencement of the option period. as established in 4C. above. shall be increased, but not decreased. at the commencement of the third (3rd) year of the option period by the same procedure as set forth in Paragraph 4D above. 5. ~cl1ritv Deposit. LESSEE, as Assignee o.f Lease. on June 1. 1990. had a Nineteen Hundred Fifty Dollar ($1.950.00) deposit transferred to the LESSOR (from Matley's contract) which deposit shall be security for the faithful performance of all the terms of this Lease. The Deposit shall be retained by LESSOR without interest and may be applied against any charges. debts or damages due LESSOR from LESSEE. 6. Tenant Im.l2..r.Qvement&. Due to an edict from Dublin City Planning (Robert White) and the Daugherty Fire Authority (Robert Snodgrass), fire code update changes will be made to the rear paint mixing area of the store. These changes shall be accomplished by ,June 1. 1995. at a contractual cost of $25.600.00. The LESSEE shall pay $17,152.00 (67%) of the fixed price contractor cost. and 'the LESSOR shall pay $8,448.00 (33%) of the cost. The letting and administration of the contract shall be by Tom Eastland (Store Hgr. ). '( . f]p,e and Prohibit~ed US~ The leased premises shall be used solely for an auto.m.obile paint supply store. LESSEE shall not. wi thout t~he prior wri'tten consent of LESSOR. use or permit said premises. or any part thereof. to be used for any purpose or purpoees other -ch3..n t.he pu,rpose or 'purposes for which the said premises are hereby leased. N~ use shall be made or permitted to be made o~ the said premises, nor acts done. which v.rill i11crease th.e e2tistil'1g rate of t:n.6lJ..ranc~e llPOD. t~l~(::; leased premises, or any part of the leaEled, premises. unless LESSEE shall pay ~cbe difference between normal insurance rates for similar businesses and such increased rate. which additional costs shall be deemed rent herein and paid to LESSOR on demand. Nor shall LESSEE cause a c2ncellation of any insurance policy covering the leased premises or any part of the leased p~9mi8e8. nor shall LESSEE keep. use or sell. or permit to be kept. used or sold. in or about the nremises, any articles which may be ibited by the standard form of fire insurance policies with extended cover~ge. LESSEE shall. at its sole cost and expense. complY with any and all requirements pertainin..g t.o s8.ict premises, eff an-:l lrtSt:trarlCt3 organizati\")rl or ':) ,j .' pertaining to said premises. of any insurance organization or company necessary for the maintenance of reasonable fire and public liability insurance, covering any part of the leased premises. LESSEE shall not commit. or suffer to be committed, any was-te upon the premises or any nuisance. or other act or thing which may damage the leased premises or disturb the quiet enjoyment of owners or tenants of adjoing parcels of real property. 8 . 5.Jgna During the second quarter of 1990. a new exterior sign was installed at the LESSOR-s expense. The LESSEE and City of Dublin approved the sign. 9. B.l..:Li;linee;s Hoi.-lrn.. LESSEE shall continuously, during the entire lease term and any renewal thereof. conduct and carryon LESSEE's business in the leased premises and shall keep the premises open for business and cause such business to be conducted thereon during each and every business day for such number of hours each day as is customary for businesses of like character being conducted in the area in which the leased premises are located: provided. however. th;,;..t this provision shall not apply if the leased premises shall be closed and.the business cf LESSEE therein shall be temporarily shut down on account of strices. lockouts or causes beyond control of LESSEE. 10. Eax:k.:Lnfl C\wlS&IDIrl.QYi Are..!2..R A. ,-. ,... "~' JJ e :t J,.ll.l.J.'-J. 0 n. i;l The term "~3hopping Center" means the entire a.rea within the outer property limit shown on the plot plan attacbed hereto and marked Exhibit "A" and c,ll other pieces or parcels of land ,at any time or from time to time designated by LESSOR for use as part of the Shopping Cerl.ter. Any ad..:iitional property designated by LESSOR. for use as part of the Shopplng Center shall be included until such clef;] shall be rev'oked by LESSOR. Any portion of the E>hopp Cent-.er tha.-t may be taken by eminent domain, privat:e purchase in lieu of eminent domain, or dedicated for public use. upon such tak . purchas,e or dedication~ shall be excluded. The "tjerm U accom.rnod.at l.[)D~ a~~eas H n_',ean.6 all area.s and feLcili ties Ollts id.e the premises that are provid~d and designated LESSOR for general tL!:;e D,n.cl c()nven,i.enc;e; cr'f' LE:BSE:8: a!}d ot~b.er I.lE:SSEES of all c~r ctn';l r)r3~rt, of the Shopping Center and their respective employee3~ cus-tomers. and invitees. Accommodation areas include..but are not limited t0~ areas, pedestrian sidewalks and landscaped areas. The site f,l,3.n 0:1: tb.e Center is at.t;ached her'eto as Exhibit "B", and 4 202 D. L€6SAB ^ sShara of~kj ng & Common Arp,a EXDenS8 During this Lease. the LESSEE shall pay its prorata share of the common maintenance total cost where the leased premises floor area bears to the total rental floor area in the shopping area. The monthly Common Maintenance charge will be a continuation of $60.00 per month as was in the prior Lease contract, 11. ~ LESSEE covenants that from and after the expiration or earlier termination of this Lease. it shall not operate under or use any name which shall include the name of the Shopping Center or the building. The provisions of this paragraph shall apply to any person. firm or corporation which controls or is controlled by LESSEE. 12 . A] t e r aIL.1..Qn.a. A. Limit8t'iOtl I.rESSEE shall not mal:.e or suffer to be made any a1 terations of the premises or any part thereof. at a cost in excess of $1,000.00, wi t~hout the written consent of LESSOR first had and obtained, and emy additions to or alterations of the said premises, except movable furniture and trade fixtures. shall become a part of the realty and belong to the LESSOR at the expiration of this Lease or earlier vacancy of the leased premises by LESSEE. B . lkL1:1.f:~ an i c ^ 6 ~,~~"Q..s. LESSEE shall keep the l'~ased premises and property in which the leased premises are situated. free from any liens for i--Tork performed. material$ furnished or obliga.tions incurred by LESS,EE. In the event LESSEE shall fail to do so. LESSOR may (but is in no way obligated to) pay any claims for any labor. services. ma-terials, supplies or equipment alleged to have been furnished to or for LESSEE. payment for which may be secured by mechanic's or mai~erialmen' s liens agairu,t the premises or LESSOR's interest 'there in . Notwithstanding the foregoin.g, hN,ever. LESSEE shall have i~he right t.o contest 'the validity of any such claim. If L,ESSEE so elects to contest any claim, LESSOR shall not pay said claimant if LeSSEE furnishes such security 0.8 I,ESSOH in its discretion may require to protect LESSOR"s interest. LESSEE agrees to execute and file a notice of completion as provided in Sect~on 1193.1(f) of the California Code of Civil Procedure within ten (10) days after the completion of any contract for any work of improvement. LESSEE agrees' to pay the fees and other charges: of completion. In -the event LESSOR elects to pay any such claim, LESSEE shall reimburse 6 2-D LESSOE? wi thin ten (10} days of demand therefor. In the event LESSEE fails to reimburse LESSOE? within ten (10} days, the lease shall be deemed in default in the same fashion as if LESSEE had not paid rent due in that sum. 13 . tlaint!~JJ~WJ:L!le..l?...aj rF.i A. L.EliliEE's Direct t1air]terLG.:C:l.Ct";. and F...e.uairf{ l. LESSEE shall at its own cost, keep, repair, replace and maintain the leased premises and every part thereof. (exclUding the foun.dation. roof and exterior walls which LESSOR agrees to repair and maintain), including glazing of store front. heating, air conditioning. electrical, plumbing, ventilating, fire sprinkling system. if any, and fire extinguishers, and the interior of the premises, in good and sanitary order. condition and repair. LESSEE hereby waives all right to make repairs of any kind at the expense of LESSOR, as provided in Section 1942 of the California Civil Code and all rights provided for by Section 1941 of said Code. In the event LESSEE shall fail to keep said premises in good sanitary order. condition and repair. LESSOR may, after giving LESSEE ten (10) days' written notice demanding that LESSEE comply with the requirements of this paragraph. make or cauc;e to be made such repairs or other work as necessary to restore the premises to good and sanitary order, condition and repair. Any expense incurred by LESSOR in. the exerciEie of its option shall be paid by LESSEE immediately upon demand therefor by LESSOR. B , r.LE..SfurE~_.Re.J._mJ::ru.r~"g;Jrl~ n t 0 f LESS 0 H ~..':i .....'9 e n ;:;dr.Ji;~nB3..e.. The foundation. roof and exterior walls of the building in wnlch the leaf:;ed premises are loca-ted shall be repaired and maintained by LESSOR at LESSOR's direct expense. LESSEE shall reimburse LESSOR for such repair expenses of LESSOR on th,:: same prorata bas is as described in the paragraph entitled "Parking and Common Areas". above. LESSOR shall also repair and maintain the exterior painting, plu~bing and electrical systems i~ the common areas and building exterior. As to these last mentioned items. LESSEE shall reimburse LESSOR on the next billing period following the receipt of a billi:ngtherefor LESSEE's prorata share. 14 . Co m.:g 1 i" ,:::;r1S..if~F j 1~ l:L...G..2Y e rTl111'?JJ~!;_r~~lL1Lli<\j:. i QJ1~ L QJ..1 d _ U E; ~J~f;3Lmj~~::'_,-..~t!.:::,_,- LESSEE shall. at its sole cost and expense, comply with all of the munic I, COUD state, guasi-governmental 8Ilth.orities be in force~ perteining to faithfully observe in the use federal, and other governmental or now in force. or which may hereafer the leased premises, and shall and occupancy of the premises all 7 Z-DCf municipal and county ordinances and regulations. state and federal statutes and regulations and rules and regulations of any other governmental or quasi-governmental authority now in force or which may hereinafter be in force. The judgment of any court of competent jurisdiction. the decision of any arabitrator or the admission of LESSEE in an action or proceeding against LESSEE'. whether LESSOR be a party thereto or not. t-ihat LESSEE has violated occupancy of the premises, shall be conclusive of that fact as between LESSOR and LESSEE. NotHi thstanding anything to the contrary in the foregoing, .LESSEE may contest the validity of any such ordinance, statute, rule or regulation or the applicability thereto to LESSEE. as LESSOR shall in LESSOR"s contest (including any appeals for any intermediary court. boards or authorities) shall prove unsuccessful, LESSEE shall forthwith comply 'Hi th said ordinance, statute,. rule or regulation. 15. Entrv bv LESSOR LESSEE shall permit LESSOR and its agents to enter into and upon said premises at all reasonable times for the purposes of inspecting the same or for the purpose of making al"terations or additions to any por.tion of the leased premises. including the erection and maintenance of such scaffolding, canopies, fences and props as may be required or for the purpose of posting notices of non-liability for alterat,ions. additions or repairs or for the purpose of placing upon the leased premises any usual or ordinary "For Sale" signs, or for the purpose of exercising its option as hereinabove provided for making repairs to the leased premises which are the responsibility of LESSEE and which LESSEE fails to make, or for ~ne purpose of exhibiting the premises to any prospective purchaser or mortgagee of the J.eased premises.or any portion thereof or for the purpOSt:; of exercis ing any right or opt~ion herein gran'ted LESSOR. without any rebate of rent and without any liability to the LESSEE for any loss of occupation or quiet enjoyment of the premises thereby occasioned. LESSEE shall permi i: LESSOR, at any t.ime >-ii thin ninety (80) days prior 1::'0 the expiration of the term, to place upon said premises any usual or ordinary "To Let" or "To Lease" signs and to l>ermit tr18 ent;ry during said period of LESSOR for the p1:l-rpose of exhibiting the premises to any prospective tenant, Such entry shall not interfere with normal business operations. 1 .. ~,b " Dam.l2 q e .2L-I2.e.6j,J:1JDt j 0 n..-,~r.0.m1-BJ:;J'i A. In the e'lent of a partial destruction of the premie]es d.u,Y'i.rlg tb.e lease tern1 ret}1)Ali::ir1g from <:1.ny of i:11€-; ca'U.Eies :Lrlsured~ against by the California Standard Form fire insurance policy with extended coverage endorsement, which said partial destruction doe~ not render the leased premises untenantable, LESSOR shall repair or other'wise ~estore saj_d premises as speedily as possible~ provj_ded~ however. that in such repair or restoration. LESSOR shall not be e i,. <,"1 obligated to incur any expense in excess of the insurance proceeds payable as a result oIsaid partial destruction. Such partial destruction shall in no way annul or void this Lease. except that LESSEE shall be entitled to a proportionate reduction of rent while such repairs or restorations are being made, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried on by the LESSEE in the leased premises. If such partial destruction shall cause the premises to become untenantable. or in the event of a total destruction of the premiseE;;. or Lf the partial destruction shall result from a cause not insured against as aforementioned, or if the insurance proceeds payable do not adequately provide funds for repair or restoratioL. the LESSOR shall give written notice to the LESSEE within ninei~y' (90) daY6 after the occurrence of such destruction or LESSOR's election either: (1) To repair the premises, using any availa,ble insurance proceeds and supplying additional funds: or, (2) To terminate this Lease, receiving and retaining all insurance proceeds free of any claim by LESSEE. as a result of or arising out of such termination. B. In the event the LESSOR is obligated or elects to repair or restore damage to the leased premises. such repair or restoration shall encompass Jnly that portion of the leased premises which was originally constructed or added by LESSOR and shall not involve the repair or restoration of any fixtures or alterations installed by LESSEE unless those fixtures or a1 t>:;rat ione are par't of the n~al ty emd be long to LESSOE( cU1d are covered by LESSOR's insurance policy. C. For the purpose of this paragraph, t.he leased premises shall be deemed untenantable in the eveht ciore than thirty percent (30%) of the total square footage of the improvements erected upon the leased premises ~re destroied unless LESSEE and tESSOR agree otherwise in writing. D . Hi :Lng shall not be liable for labor'" d.isI).l.lt<~S, t:iC;1:.G LESSOB.~s c01:}~tr-ol~ Ol~ restor'irlg tJ:'ie leeu:~ed prerniser3 ~ r.JIESSOR any delays resulting from strikes. or other o:f the elements or otb,er cat,1ses oute3ide E. LESSOR agrees that LESSOR will obtain, pay the premiums ()n and. ID2.LirLtct..in j rlt:i.')rce a (:.:ll5.fort"l..ia St.Et1"ld.ar'd IC}lP<ID .fire irlf3tl.r'~;ty.1':;e J;"1() lie;;/" 'r:~ i t.Il .e)ci~(:::n.cl;3(1 CC;'Vf:;r.ag,e t:;ndor~:.;,eU'J.;,:~n.t, ~:~r!.St;lr tX1e ed ~p:r'e,n1j~s'es for~ an (;1.rrlOtln,t~ a.t. lecL}3t e(Jtla~l tiC) tb,e ~"'"'equ~irernentc ("J.t: 'L,~1~~ holder of a~y fj.rst mo on the leased premises. D ,. v F. In the event of any dispute between LESSOR and LESSEE relative to the provisions of this paragraph. they shall each select an arbitrator. and the tl'TO arbitrators thus selected shall select a third arbitrator. and the three arbitrators so selected shall hear and determine the controversy and their decision thereon shall be final and binding upon both LESSOR and LESSEE, l'Tho shall bear the cost of such arbitration equally between them. 17. AssignmenT~nd Subletting LESSEE shall not voluntarily assign this Lease or any interest. therein and shall not sublet the said premises or any part thereof. or any right or privilege appurtenant thereto. or suffer any other person (customers. suppliers. guest. agents and servants of LESSEE excepted) to occupy or use the said premises or any portion thereof. without the written consent of LESSOR, which consent shall not be unreasonably withheld. A consent by LESSOR to one assignment. subletting. occupation or use by any other person shall not be deemed to be consent to any subsequent assignment. subletting, occupation or use by another person. Any such assignment, su.bletting or occupation or use wi-'chout the written consent of LESSOR shE,ll be void. and shall. at the option of LESSOR. constitute a breach of this Lease. giving rise to all remedies of LESSOR for breach or default set out in this Lease. This Lease shall not be. nor shall any interest therein be assignable as the interest of LESSEE by operation of law l'Tithout the written consent of LESSOR. Any transfer or shares of stock by LESSEE in excess of twenty- five percent (25%) of the outstanding shares shall be deemed an ass ignment. requiring LESSOR r 13 prior written consent. LESSOR.' s consent shall not be unreasonably wi Ulheld. LESSEE shall pay LESSOR's reasonable attorney's fees and costs incured in considering a request for consent to assignment or s~bletting. In the event that LESSEE assigns or sublets this Lease at a higher rental than the rental set forth herein. one-half (1/2) of such increased rental shall be paid to LESSOR. 18. ID6olTIu:~Q_y:' or Ban~ The appointment of a receiver to -take possession of all or substantially all of the assets of LESSEE. or a general assignment by the LESSEE for the benefit of creditors. or any action taken or Buffered by or against LESSEE under any insolvency or bankrup~cy remedies of LESSOR for breach of this Lease. giving rise to all ~emejies of LESSOR for breach or default set out in this Lease. 10 For the purpose of this paragraph. the ~ccurrence of any of the foregoing events to or any prohibited action taken by any person or entity guaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 19. Remedi.e~Brp.aoh In the event of any breach of this Lease. or any covenant. condi tion or provision hereof by LESSEE which continues a:fter LESSOR has given ten (10) days' rlOtice to LESSEE of such breach as herein provided. the LESSOR. besides other rights or remedies it may have. shall have the rights and remedies set forth below. (If the breach concerns maintenance or repair of the premises. such maintenance or repair must be undertaken within thirty (30) days and proceed to conclusion without unreasonable dels.y.) A. LESSOR shall have the immediate right of entry without prior notice or demand and may remove all persons and property from premises. ~emoving such property and storing the same in a public warehouse or elsewhere at the cost of and for the account of LESSEE. B. Should LESSOR elect to enter. as herein provided. or should LESSOR. tal,-e possession pursuant to the legal proceedings or pursuant to any notice provided for by law. LESSOR may either: (1) Terminate the Lease: or (2) From time to time without terminating this Lease and without the necessity of notifvinR LESSEE of the fact. relet said premises or any part thereof for such term or trms (which may be for a trm extending beyond the term or this Lease) and at such rental or rentals and upon such o~ner terms and conditions as LESSOH in :i.ts t:;ole discretion tD8.Y deem advisable with the right to make alterations and repairs to said premises. U:,oon e8.oh such relc'"tting. LESSEE shall be immediately liable to pay the LESSOR. in tion to any indebtedness other than rent diY;; r(:;l'.n(ier: (a) The costs and expenses fees and any real estate commi.ssion) of such alterations and repairs incurred by LESSOR: (including attorney's relett and of sl~ch 11 20 l l:i (b) The amount. if any. by which the rent reserved in this lease for the period of such reletting (up to but not beyond the term of this Lease) exceeds the amount agreed to be paid as rent for the leaed premises for such period of such reletting; (c) LESSEE shall: (1) Pay such amounts to LESSOR immediately upon demand thereof. or (2) at the option of LESSOR such liability shall be paid as follows: Rents received by LESSOR from such reletting shall be applied first. to the payment of any indebtedness. other than "the fixed minimum and percentage rate due hereunder from LESSEE to LESSOR: second, to the payment of any costs and expenses (including attorney's fees and any real estate commissions) of such reletting: third. to payment of fixed minimum percentage rent due from and unpaid by LESSEE hereunder. The residue. if any. shall be held by LESSOR and applied in payment of future installments of fixed minimum and percentage rent as the same may become due and payable hereunder. If LESSEE has been credited with any rent to be received bv such reletting under option (1) and such rent shall not be promptly paid to LESSOR by the new tenant, or ir such rentals received rrom such r.eletting under option (2) during any month be less than that to be paid. LESSEE shall immediately upon demand therefor pay any such deficiency to LESSOR. No such entry or ~aKlng possession of said premises by LESSOR shall be construed as an election on its part to terminate this Lease unless a written notice of such election to terminate be given to LESSEE or unless the termination thereof be decreed by a cour.t or competent jurisdiction . Notwithstanding any such reletting without termination. LESSOR may at any time thereafter elect to terminte this Lease for such previo1J.s breach. Should LESSOR at anytime trminate this Lease for any breach. in addi~ion to other rernedies LESSOH may have . LESSOR may recover from the LESSEE all dama.ges LESSOR may incur by reason of such breach, including the cost of recovering the premises., reasonable attorney's fees. real estate commissions and including the worth at the time of such termination of the excess. if any. of the amount of rent and charges equivalent to rent reserved in the lease for the remainder of the stated term over the then reasonable rental value of the premises for the rremainder of the stated term. all or ",b.ich a.m01.mt shall be immediately due and payable from LESSEE to LEi3S0R. Any entry by LESSOR pursuant to the provisions of this Lease [';11Ei1l be &llo'Fed by LESSEf'~ wii~hout any interference and LESSOR shall not be liable for damages for any such entry. or be guilty or trespass or forcible entry or detainer. The notice of breach required by this Lease shall be ten Cl0) days if the breach consists of the failure to pay money~ and thi.rty (30) days if the 6reach consists or anything other than the failure to pay'" rD.c~ne\~. 12 .r , .~~. J. ,.1 ...,... 20. Attorn~Y's FeeQ If either party shall commence an action to enforce any of the terms or provisions of this Lease, including actions for unlawful detainer or an action for declara'torv relief to determine or construe this Lease, then the 108 ingparty in such action shall pay to the prevailing party such sums as the court may determine as .iust and reasonable as and for attorney's fees, ,,0, 21. 5.ur1-en~~ Voluntary or other surrender of i~his Lease by LESSEE or mutual cancellation thereof. shall not work a merger, and shall. at the option of LESSOR. terminate all of cmy existing subleases or subtenancies. or may, at the option of LESSOR, operate as an assignment to it of any and all such subleases or s0btenancies. Nothing in this paragraph shall be construed as a consent by LESSOR to the creation of such sublease 0 tenancies. 22 . R 0 1 <tinrz QYl;2L Any holding over at the expiration of the term of this Lease, with the consent of the LESSOR. shall be construed to be a tenancy from month-to-mouth at a fixed minimum rental equal to the last month of the lease term. and shall otherwise be on the terms and conditions herein specified. 23 , fu2.r:.J:B.rtJir~Q.fJ-X:.B m:i s ~ 6 (ill_J3;;;{p -L r:atJ..QD~-L.T8 rm On 'the .1aElt day. or sooner termination of the lease term. LESSEE shall quit and surrender the premises. broom-qlean. in good condit-lion and repair (reasonable weaL and tear and damagr~ by acts of God excepted), "cogether 'Vdt.h all alterations , additions and improvements which may have been in. to or on the premises, except movable furniture and/or unattached movable trade fixtures installed at -the expense of LESSEE. Speclfic8.11y, all built-in catblnets. desks and shelves [;';1'1.'3.11 remain and become .the property of LESSOR~ 13 -) t .-, i'':'' \ U 24. l.rJ.t;urance. During the entire term of this Lease. LESSEE at its own expense, shall: A. Public Liabilitv Insurance Provide and keep in force for the benefit of LESSOR and LESSEE comprehensive general public liability insurance policies. in insurance companies and in ',form of coverage satisfactory to LESSOR. protecting LESSOR and LESSEE against any and all liability, in an amount of $1.000.000.00 per occurrence to LESSOR and LESSEE for both bodily injury, death or property damage incurred by reason of LESSEE - s operation in. on or about the premises. Said policies shall provide for at least thirty (30) days ' written notice to LESSOR prior to cancellation or material change. The LESSOR shall be named as additional insured on the policy. LESSOR reserves the right to increase the required amount of public liability insurance from time to time during this lease if LESSOR reasonably believes additional coverage is required. If LESSEE shall ~ail to carry any such policies. LESSOR. at its option. may, but shall not be obligated to carry such policies: and the amounts paid by LESSOR. with interest thereon at the legal rate from the date of payment. shall become due and payable by LESSEE. as additional rent. with the next succeeding installment of rent. Payment by LESSOR of any such premiums or the carrying by LESSOR of any such policy shall not be. nor be deemed to be. a waiver or release of the default of LESSEE with respect thereto. or the right of LESSOR to insti tut,e summary proceedings and/or take such other action as may be permissible hereunder as in the case of default, in payment of net rent. B. Fjre _I.lliilJ...r:.a~ LESSOR agrees to purchase and keep in full force. fire and extended coverage insurance covering the leased premises as determined by LESSOn' 6 insurance COnlp,;:m,iT' (3 appraisers, which shall be for full replacement value. c. C&t-r~,~~SL~~1)rB.rJC;~ At the commerlcement of the term of this Lea6e~ LESSEE eD.Gtl1 clel:tv'er to L:ESS{JE?, cert.ificates of inGt:tl~arlce marLj~fe8t.in.g requ.ired coverage, arid at least thirty (30) days prior i,~o the expiration o~ each such policy or policies. LESSEE shall pay the premiums for renewal insurance and within such period shall deliver .to the LESSOR the original policy or duplicate original with an endorsement thereon marked "paid" and/or duplicate receipt or other information satisfact6ry to the other. evidencing payment thereof. If the original policy of any such insurance shall be required to 14 be delivered to the beneficiary of any moitgage or deed of trust to which this Lease is BubJct and subordinate. the duplicate original or certificate of such policy shall be delivered to LESSOR upon request. LESSEE shall have the right to maintain required insurance under blanket policies. D. ~rkEU"~~OmDensati.on Hi th regaxd to any Worker r S COIDPnsation insurance carried by LESSEE, the LESSEE ag'!:'ees that it shall waive the right of subrogation against the LESSOR ( or its employees. assignees or agents). and such insurance sh8.11 provide for such waiver of subrogation. E . Na..i~j'......Bl) brQf? ~.Qll With regard to any insurance required to be carried by T..,ESSOB. and LESSEE pursuant to this Lease. both LESSEE and LESSOR agree that neither shall have the right of subrogation against the other (or its employees, assignees or agents), and such insurance shall provide for Buch waiver of subrogation. 25 . loo~n.i.fh:1jLiQn LESSEE shall indemnify and hold LESSOR harmless and defend LE3S0R from any and all claims of liability for any injury or damage to any person or property whatsoever incurring in1 on or about the leased premises or any part thereof~ other than claims of liability arising from the negligence or wrongdoing of LESSOR or LESSOR'e: agent;. 2 (3 ~ QtiliJ.iJ.-"-sitt LESSEE shall pay direct ly for vl'ai;er, gas, electricity and telephone services and all other utilities supplied to the leased premises. LESSEE shall also pay :Eor the rem:>val of all garbage from the leased premises. 97 L. ( . TJ.;l~.D_ A. LESSEE shall pay before delinquency any and all taxes. asse6sments~ license fees~ and pu'blic charges levied~ assessed or imposed and which become payable dur the lease term upon L SEE" B f lxturss .. I1..lrrli tc'tre , appliartces'l persori,:il pr\)pe installed or located on the premises. "I '(;~ .L ;.) . , ~7 17 '-" .- B. Real Property Taxes--Lessee's'Prorata Share LESSOR shall pay before delinquency any and all municipal. county or state real property taxes assessed against the leased premises and the parcel of land upon ",hich the leased premises are situated, LESSOR shall also pay any local or municipal taxes assessed on rentals or rental income. LESSEE shall. during the term of this Lease, pay its prorata share of all such real property taxes for the Shopping Center ",here the leased premises are located in the proportion to the rentable floor area that LESSEE's premises bears to the total rentable floor area of all buildings from time to time completed in the Shopping Center. whether or not leased. LESSEE shall pay to LESSOR. wi thin fifteen (15) daYS after LESSOE submits a bill therefor. LESSEE's share of such real property taxes. LESSOR shall submi t to LESSEE a 'true copy of each current tax bill, and a statement showing the total square feet of all rentable buildings in the parcel represented by that tax bill. . 28. Kxcl1J.sivitv and Other Tenan't.a LESSOR agrees that during the time this Lease is in force. LESSOR. Hill not lease other premises in the Dublin Square solely as an a!)tomobile supply paint st;ore. 29. QunoY'dination LESSEE agrees that this Lease shall be sU.bordinate to any mortgages or trust deeds that may hereafter be placed upon the premises. to any and all advances made or to be made under them. to the int;e:cest and all obligations secured by them and to all renewals. replacements and extensions of them. Provided. however. the mortgagee or beneficiary named in auy such mortgage or trust deed shall recognize the Lease of LESSEE in the event of foreclosure. if LESSEE is not in default under the terms of this Lease. If any mortgagee or beneficiary elects to have this Lease sl.1Perior to the lien of any such mortgage or deed of trust. 'ilhether thls Lee\.se is da"ted or recorded before or after the mort.gage or tru.st deed ~ LESSEE shall. at any time and from time to time. upon not less than ten (10l days" prior request by LESSOR. execute. acknowledge and deliver to LESSOR a statement certifying that this Lease is u:nmocli.:fied and in fU.ll force and effect (or if .there have been mOQLl ".Cc~.GlOns. thcli~ 1;;ne same is in full force and effect a'3 modified and stating the modifications) and the dates to which the fixed rent and other charRes have been paid in advance. it being j.ntended any ,::;uch I;;tatement delivered pl.l.rsuant to this 8v,bp3.ragraph may be relied upon by any prospective purchaser or encumbrancer (including as 8 of either) of the Shopping Center. 1.6 ~ '"":,1 ! ;;' 30. Trans.fer o~eversi()n In the event of a sale or conveyance or other transfer by LESSOR of LESSQR"s interest in the leased premises. the same shall operate to release LESSOR from any future liability. herein contained in favor of LESSEE. and in such event LESSEE agrees to look solely to the responsibility of the successor in interest of Ute LESSOR in and to this Lease. If any security be given by LESSEE to secure the faiifh:ful performance of all or any of the covenants of this Lease on the part of LESSEE. LESSOR may transfer and/or deliver the security as such. to the purchaser of the reversion. in the event that the reversion be sold. and thereupon LESSOg shall be discharged from any further liab~lity with reference thereto. 31. ~~eglllatiQn.El LESSOR reserves the right to issue such reasonable rules and reg1J.lations. relating to the use and occupancy of the leased premises and the access. parking and common areas of the Shopping Center as LESSOR may deem appropriate for the best interest of the LESSEE and other tenants in the building~ Such rules and regulations may include. with limitation: A. The right to clos~. II necessary. all or any por~~0n of the common area. sidewalks. roads. access roads. malls and other facili ties to such extent as m;:Sl.Y. in the opinion of LESSOR, be legally sufficient to pr'event dedication thereof or the 8.ccrual of any rights of any pEt'son or of the public therein and no such closing shall be deemed an eviction of LESSEE nor shall any rebate or diminution of rent result from such closing; B. The right to control time for loading and.unloading of merchandise and the placement and times of disposition of garbage. trash and debris: C. The right to designate employee park areas. LESSEE shall abide by such rules and cooperate in the observance thereof. Such rules and regulations shall be binding upon LESSEE upon. delivery of a copy thereof to the LESSEE. The rules arl regulations may be amended by the LESSOR from time to time with or without advance notice, and all amendments shall be effective upon delivery of a copy of them to the LESSEE. All rules promulgated pu.rsu.arJ.t. to -this pere,graph shall be ap'pro'\red by' LESSEE before ~C{~~E, effec'"t. ~ 17 32. Time is of th~ eSSence Time is of the essence of this agreement and each and every part thereof. 33. No .Joint. Ventl,~rship Nothing herein shall be construed 8.S, nor shall this Lease create a joint venture or partnership by and between LESSOB. and " LESSEE. 34. NotJnes All notices. statements. demands, requests. consents, approvals. authorizations. offers, agreement, appointment or designations under this Lease by either party to the other shall be in writing and shall be deemed duly given and served upon the other party if delivered personally to the recipient, upon such delivery. and if sent by mail, upon deposit in the mails, postage prepaid and addressed as follows: To the LESSOR: Berkeley Land Company. Inc. 1211 Newell Ave., Suite 120 Walnut Creek. CA 94596 To the LESSEE: Glenn Thompson THOMPSON PBE. INC. A Delaware Corporation 11819 Dublin Blvd. Dublin. CA 94566 35. MJ.ver QL~ci1.. No waiver of any condition or covenant or: this Lease or of the breach of any condition or covenant shall be taken to constitute a waiver of any subsequent breach of such condition or covenant, or 1:0 jus.tify or authorize i~he non-observance on cU1Y other occasion of the same or any other condition or covenant hereof. nor shall the aceeptance of rent by the LESSOR at any time hereof be construed as a waiver of such default or of the LESSOR's right to terminate this Lease on account. of such default, nor sh8.11 any waiver or indulgence granted by the LESSOR be taken as an estoppel against the LESSOE. ~,\ 6 ~ C:.? 1:) t ii2J.l..Et The paragraph and subparagraph captions of this Lease are for the convenience only and are not a part of this Lease and do not in any way limit or amplify the terms of provisions of this Lease. lB ''''\ GI-ai1 Tnomps@rf; i , Vice President / California Operations :2- ""'~ SupplyingAmelica's Body Shops. 4553 Glencoe Avenue #200 :37. Successors and Assignp, Marina de1Rey; CA 90292 (310) 306-7112 ph. / (10) 306-7271 fax This instrument shall be binding upon and shall inure to the benefit of the respective parties. their successors, assigns, legal representatives, provided that this clause shall not permit any assignment contrary to the provisions prohibiting assignment herein. 38. l~pret,8t}QQ The language in all parts of this lease shall in all cases be construed as a Hhole and simply according to its fair meaning and not strictly for nor against the LESSOR or the LESSEE. and th~ construction of this lease and any of its variol.l.s provisions shall be unaffected by any claim. whether or not justified. that it has been prepared wholly or in substantial part by or on behalf of the LESSOR. 39. InyQ].i.i).j tv of Pa:rticul_il.L-ITOv.ig,j_oIL If any term or provision of this Lease or the applicability thereof to any person or circumstance shall. to any extent, be invalid or unenforceable. then the remainder of this Lease, or the application of such term or provision to persons other than those as tc which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the full extent permitted by law. 40 . G.c':.Y:S:J:":..n.ing La Fi This Lease shall be in.terpreted and construed according to, and the conduct of the parties hereunder shall be governed by, the laws of the State of California. [t.Kf"..5.Qf< : L.El!JiEE...L THOMPSON PEE, IN[~ A DeJJ:H-Tft(:fe):r Co:r..pcf;faticm / /; ",/,'7 -r'1 (I ~ II If'7el2j:!~~.- jjy' ~ .._-_:::::~,------_._...!..~".:::::.:-"~~~.._--_._--~~ BERKELEY LAND COMPANY. INC. }j I"2\D.l:: Bcltfa't i~i::~ ,L1:,8~ }~:::){;) p ( i '..\ ..c. ..... .. : /~'1.-=/ _,rl~- f'- T t C' . J /'''/1 .6 [f IUI-,/'v / ....... .II,,] ~ _~~______~__"__.___.__,__~-'--_~,_ 19 / """. . ....~:-";~~ f{YL2J ",.M~ ,J:,.yJ; Berkeley Land Co., Inc. ("Lessor") and Thompson PBE, Inc. ("Lessee") have entered into a cert~n lease dated May 12, 1990 (collectively the "Lease") for cenain premises located at 11819 Dublin Square" \~~ek, CA; as more specifically defmed in the Lease (the "Premises"). Lessee now desires to transfer and assign to FinishMaster Inc., ("Transferee") all of Lessee's right, title and interest under the Lease, and Lessee and Transferee desire to obtain Lessor's consent to such assignment. r A~~IGNMENT. ASSUMPTION AND CONSEN1 Now, therefore, Lessee and Transferee, for mutual consideration and intending to be legally bound hereby agree that effective on June 30, 2000 (the "Effective Date"): 1. Lessee does hereby assign, transfer and set over to Transferee, its successors and assigns, all right, title and interest of Lessee under the Lease. 2. Transferee does hereby, for itself and its successors and assigns, and for the benefit of Lessee and Lessor, covenant and agree that it assumes and agrees to be bound by and perform all covenants and conditions, obligations and duties of Lessee under th~Leasc, whether or not they have accrued prior to the effective date of the assignment. 3. Lessee and Transferee hereby accept Lessor's consent under the conditions set forth below. ) ~\ c_I~~mlpson PBE, Inc. / By _ ~"''1.:fl-:t- ~, {V~29_~ Print Name: Robert R. Millard Title: Vice President - Finance Lessee I I (---...... ' ~ <inish1v'!aster, Inc. j{ :i:E2"'! i. t::J.S:(" 'Il\m. . __if""" '~,' /''\t'''...... I By ~'~, . _1 ~'" , I . .-'y. . - ' Print Name: Robert R. Millard Title: .fu......YP - Fina.nce Transferee In consideration of the covenants, agreements and warranties of Lessee and Transferee as set forth above, Lessor hereby c~mseDts to the assignment of the Lease to Transferee on the following terms and conditiow;; 1. Lessee shall remain liable for t11e pen01mance of all of Lessee's obligations under the Lease, as it may be arnencled from time to time. 2. Tramferee shall operate the Premises 10r the remai,,'1ing term of the Lease pursuant to all of the terrflS and cGrlChtions set f01th ill the Lease. I . rkeley Land Co., Inc, ----"'<:- \fi 1\ t, ":;A 'I /'-.!.! -Ii ,f 1,' By __-1lfZCJL A,,tJiU!,,=u,(l --.-,-_ . ,-t f' ". .. ,. ;r,ll) ,,,.M..& ",/ CO lVi/V::} J ,," !:'rlnt J:~an1e: _ rfl ~..,.,.ita...i?"rt.'.(... ~".. I" ( M. 'f'~Ji* "T"''< .,.11 --;.,----,---:-;;--.. f,~, tA 4' . J.rtle: _&1'}1;j~nl.,~ !~""/A',,<"^~~I4~,_ Lessor ~'!1 EXTENSION OF REAL PRQPE.BTY LEASE Parties This Agreement is made between BERKELEY LAND CO., INC, a CaIifamia corporaiiall ("Lessor") and FU.:rrSHJ:vlASTER, INC., a corporation C'Lessee'} Purpose This Agreement is made with reference to the following: A. Lessor a.l1d Lessee'spredecessor, THOMPSON PBE, INC., entered. t'vvo related real property leases by which Lessee leased space in the Dublin Square Shohlng Center, located Oll Dublin Boulevard, Dublin, Califorui,!. o'ilVUed by Lessor, as foHov/s: 1. Lease dated April 1, 1995, for 2,600 sq. ft., described as 11819 Dublin Bouhwurd, for an initial term of five years, commencing April 1 , 1995, and expiring J\1arch 31, 2000 (the "11819 Lease"). The 11819 Lease 6rranted Lessee one option to extend the 11819 Lease term for five years, \Tv-hich. was not exerc:ised. 2~ Lease dated September 12, 19517,'for 1,470 sq. ft., described as 11815 Dublin Boulevard, DJI' an initial term oft11irty months, commencing October 1, 1997, and expiring 1.,larch 31,2000 (the "11815 Lease"). The 11815 Lel:1Se contained no option to extend its term. B. Upon the expiration afbath Lease tenns on the dates set forth above, Lessee continued to occupy the respetive premises described in the Leases as a mOl1th~to"moJ1th tenant, in accordance .with Section 22 of the 11819 Lease, and Sr)ctiOl1 19 of the 11815 Lease entitled "Holding Over", C. Less(::e alId Lessor have treated both Leases as one single Lea.se. D~Eftective Jurle 30, 2000~ I110MPSC)N f.t'fCQ assigned. the 11819 Lease to by a vvrhtenagree;_-nent entitled "Assignment, Assumption and CO:1sent," to which /, The Assignment was intended to refer to both Leases. vvhereby the Assignment combined, the term)f be 1-1ease8 be the [leas::,; sllall . ~ , terrD.. SlJeCII:+ea.. 1 .. ~-r 0' , " fI, _..~ ,....,: .,. ,"I .,;.:~.o.d<' L V "'2&\ ,,,,) p ~ement Therefore, it is AGREED AS FOLLOWS: 1. Assignment Includes 11815 Lease: The Assignment is deemed to include the 11815 Lease, so that the Assignment refers to both Leases. 2. Leases Combined: The Leases are deemed combined into one Lease for all purposes after the date oftrus Agreement (the "Leasen). 3. Extension of Combined Lease: The term of the Lease is e:h'tended for a period of tvvo (2) years, commencing January h 2002, tbroughDecember 31,2003, and expiring on the latter date (the "Extended Term"). 4. Rent: TIle base rent due under the Lease for the Extended Term shall be as follows: January 1,2002, through December 31, 2002: Four Thousand Dollars ($4,000) per month; January 1,2003, through December 31, 2003: Four Thousand Five Hundred Dollars ($4,500) per month. 5. No CPI: In view of (he specified rent set forth above, the Lease shall not be subject to Consumer Price Index rental increases during the Extended Teml. 6. Other Terms: All other terms and conditions of the Lease, including the Lessee's obligations regarding common area maintenance expenses, insurance, and real property taxes, as well as all other obligations afthe Lessee as set f01111 in the Lease, shall remain unchanged. Lessor: Dated: ~lj~ I . ,../ I"cusee,: Fn,rrSHIv1ASTER, INC., a corporajon <~ ~;~~~rf), r(J I Bv:..,.,.,...)......J "-'" ~ i ~ " 'i~-J~-- A ~ fy ':;:-' , Its:__CfO 3' "'''': '1-1....{,A:vJL\5' _ ~ . , fi/(/}o') ?'~'I iJ / "" ~ 1j~!'i'n'n~ IF rlW!':';'.{..,;...f~' to' /,,'/.jI'..);t"'I-;?" -,,_>.,-i,..{,\..(..,.l..p 't:<"'... ,.".~....",,-.'>,.. ~.~._--- 2 '1.1' , , ,/ ..,. L-.- 1': j ;..\' Ie /.1,.//<1 c " '~~ "'" - , ~.~ .- ,""j ~ I. I LEASE AMENDMENT THIS LEp..SE Z,.J.'IENDr"iEN'r to Lease executed on April 14[ 1967 f is executed in duplicate at Pleasanton1 California this 9th day of Hay 193iL, between BERKELEY LAND CON:PANY I a California Corpora'tion, hereinafter referred to as Lessor rand COMI1UNITY FIRST NATIONAL BANKl a Corporation, hereinafter referred to as Lessee. RECITALS WHEREAS Lessor and Lessee have entered into a Lease dated April 14, 1967 for a portion of the real property in the Dublin Souare Shopping Center more specifically identified in said Lease, and; WHEREAS said Lease was extended by letter dated December 5, 1986 to and including October 31, 2007, and; vJHEREAS Lessor intends to make certain :modif ica'tions 'to t.h,e Dublin Square Shopping Center to include, a fascia and signage upgrade of the cerl'cer t s exterior along wi i:h relat::ed parking lo't r lrmdscaping and lighting improvements that will significan\_ly enhance the center's appearance; and ~TtIEREAS Ltessee rlesires to expa.nd4 i"ts lding by ly one th",)usand one humJred (1; 100) square feet on T,h.e parcel of land is t:he of 'the Lea se i ~.JO~\' r ~CI-IJ~~RI~FC)I~E; ? Iff AGREED between the l1erE~t.o a,;::~ [:::-)1 F;.VDI J.._: ~1?50\LE?:.sI::}>.IW" Cf:.'S 3/5.'90 1 -'- ;2n ~~,~f! 1. Paragraph 2 shall be amended to add the following provisions: Upon completion of the expansion proposed by Lessee herein (which shall be defined as issuance of Certificate of Occupancy by the city of DUblin) Lessee shall pay to Lessor, in advance, at the address set out after the signature of Lessor or at such other place or places, a monthly rent of Nine Hundred Dollars ($900.00) to include payment in full for parking rights. In addition, Lessee agrees to pay their pro-rata share of maintenance of common parking area, landscaping, and lighting, not to exceed $100.00 per month. said sum shall be due on the first day of each calendar month in lawful money of the United"States of America. Notwithstanding the above, Lessor further agrees and acknowledges that said increased monthly rent herein described shall not commence until such time as Lessor has completed all phases of Lessor's proposed modification as outlined in the attached letter of January 12, 1990 by Elmer H. Hansen, to the Dublin Square Shopping Center, of which the subject property isa part. Completion of Lessor's project and the concurrent commencement of monthly rental obligations shall be evidenced by final approval of the city of Dublin and recordation of a Notice of. Completion by Lessor. Lessor further agrees to complete its improvements on or before December 31, 1990. 2. Buildina EX.l2ansio!1. Paragraph 4 is hereby amended to .add the following additional provisions: (d) Lessee shall be permitted to expand the existing bank building on the demised premises, at its sole cost and expense, to provide for up to an additional 1,100 square feet, more or less, together with all necessary fixtures and appurtenances. ~ Prior to commencing construc.tion f Lessee shall obtain Lessor! s approval of the plans therefor, prior to making such alteration, improvement, addi.tion or change, ,,-lhich approval shall not unreasonably be INi thheld by Lessor. Lessee r at Lessee! s ovm expense 1 shall comply ".Ji th all present and future governmental requiren,ents relating to the leased property only, arising out of, in connection with, or necessitated by such alterations except as may ot:henvise be established herein. (e) Lessor a.grees to cooperate fully with :Lessee l' s planned expansion, pursuant to the provisions and obligation of both t.lle. Lease and "chis Lee.se A.mend111ent.. Lessor agrees t.o c0op8rat.e with Lessee;: t.Q obta.in approval of t.he cit.y of Dublin. I..I8fJSOrt s (,.;oclr.H~ra:tiorl stiall incllldf;;: r but ~not be li:mit:ed t:o .t:.h.~::; preparation of traffic engineering studies, application for \72riance( s) for parl:ing f and such other it:ems as may be required l>.:VD! 1... ~ \i}P=,O\I.1:;AS!~A~J)" CJ?B 3/5/90 -) '" j .::- by the city of Dublin. (f) Should .the expansion proposed by Lessee herein fail to obtain the necessary City approval, the provisions of this Lease Amendment relating exclusively to the proposed expansion will be of no force or effect. 3. Paragraph 9 shall be amended in its entirety to read as follows: 9. Assiqnment aDd Subletting: Lessee shall have the right to assign, mortgage or hypothecate this Lease, or any interest in this Lease, or;'permit the use of the premises by any person ':.\r persons other than Lessee, or sublet the premises or any part. thereof. No part. of the leased premises shall be sublet for a llU:cpose which is unla\<lflJ..l f dangerous f noxious or offensive. Any such assignment or subletting shall not be for the conduct of a business that would direc.tly compete with that of another tenant in the Dublin Square Shopping Center. No such assignment or subletting shall operate to relieve the assigning party of any obligation or liability arising under the terms of this Lease unless the other party here'co shall specifically agree in writing that. such proposed assignment shall so release the assigning or subletting party. 4. parEHJI:caph 10 shall be amended in its entirety Oeo read as fol1o~vs : 10. QQt.1pn .to Pu:x;:r,;:hase Bull diner: Lessor shall have the option to purchase Lessee's building at Lessee F s unamortized cos.t in the event of des.t.ruction or condemna tiOD as provided in Paragraphs 12 and 13, should Lessee elect to terminate this Lease und ;:' t.he provisions of said paragraphs 0 In the event. Lessor does. not elect to exercise its option to purchase under said paragraphs, Lessee shall have the right to sell or remove said building. In . ev~nt'.i if Lf2ssee does not se.~l or rE~~ove ~;aid building, then stwll t)eCOID8 the propm:ty of Lessor, ano. Lesso~ agrees to iC.ld.emrli and save LesseE; harmless from and against any and all claims arising from Lessee's lure to remove said building from said lan.a by any person or, t.o. a~:ry. prop.e~t:y t and frr;m anp ag~inst all. CGsts, expenses, and IJ..abJ.LLtl0s 'lfmlch may be J.Dcurred :i.n or COlClection Jch any such elahT! of proceeding brought thereon. such E:lection by e1. tner party shall be made t:ten :not:.,::;e from one to t:he oOcher, on or before thirt:y (30) the mut.ually agreed termination of t}le I~!:~';a.Sf:: ~)].:- tl1C~ I1D..t:ura>1 "tion of tJle t.er"rn (1f tr1.e Lease or tX18 renewal the to rel1ew e){ercised. by Lessee~ -" .... -l-J''''-~ ""..,. ~? ~ l:? 5. Paragraph 21 shall be amended to add the following provision: Lessee is hereby granted and shall have, if not at the time in default under this Lease, an option to extend the term of the Lease for an additional period of fifteen (15) years only from October 31, 2007, but othe~lise on the same terms, covenants, and conditions herein contained, provided however, that rent shall be adjusted to the then current fair market value as defined below. Thereafter rent shall be subject to adjustment every three years to an amount equal to the lesser of (i) the change in the Consumer Price Index; or (ii) seven percent (7%). Lessee shall notify Lessor in writing not less than one hundred eighty (180) days in advance of the expiration ~f the then current term of its intent to extend this Lease.. 6. Fair Market Value. "Fair Market .Valuen shall mean the fair market base rent as defined below f at the time or times in question for the premises, based on the prevailing rentals then being charged .to tenan'cs of ground leases in the general vicinity of the premises of comparable size, location, and under similar circuwstances as the subject premises. 7 0 Determination of Fa:L;r Marke.t Vallill. Lessor and Lessee shall endeavor to agree on the fair market value. If .they are unable to see agree \iJi thin thirty (30) days after receipt by Lessor of Lessee's notice of exercise of its option to extend, Lessor and. Lessee shall each designate a licensed real estate appraiser who is active in the leasing of office space in the gene:r:al vicinity; and the bii!O real es.tate appraisers shall mutually appoint a third appraiser similarly qual . - :U3o. . The three appraisers shall then de"cer:min,e the fai:c market value by majority vote, and this determination 51:10.11 be binding on the Lessor and Lessee. Lessor and Lessee shall each :bea.r 'the cos.t of i'cs appraiser and s1:1o.11 sJ:lal"'e eqllal tIle cost. of third appraiser. A.VD/J..: ~>JP~>O\LEA::-";E",\_HD~ ern 3/5/90 4. IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease p.mendment on the date first above vJri tten. BERKELEY LAND COMPANY, A California Corporation l!Y: -&1" _4;:,* By: ~ LESSOR COl\:lNUl' -TY FIRST NA'I'IONAL BANK I p, Cor;: oration ~ o ~_____ _ T5 -. L :;. ~ , . . ~ . ..--:- ... -..:d. ! . .....-;'7 k"'- .. . i.J " ...... --i'C.~,II.l"ft Ii ..:....... .....__.......~~ " . '* I. I . , EXHI.BIX A .. (. v --... . ~~.*""",,4 i " "-''1'" til t. .t:, . . '" - That parcel of land in the Townshi? of ?leasar.ton~ County o~ Alameda~ Stat& or Ca11rornia~ dasar1bcd as to~lOW6: Beginning at the point of intersection of the southeastern line ot the State Highway trom Hayward to Liver~ore with the southwes~e~n 'line '" of the parcel ot land designated as ?a:>cel 2 in the d.eed to H. .E. Oxsen recorded June '1o~ 1936 in Book 3317 OR~ page 470~ J..la:t.eda . County Records; thence along the last named: line south 210, 151--east_ 1J!~ teet; thence north 680 45' east 25 teet to the actual point ct · co:n.."'Aencement; thence south. ~Uo 15' east 90 teet; thence nor:h 680..45' " east. SOreet; thence north' 210 151 west 90 :t:"'eet:.; thenoe south 68Q' 45' Best sa teet to the ac~ual pOint or oommence~entq ,f... ~-'" lo~ ............,~........._"" ~ '. " '" *{O ~ ~~~ 51/17, () f,..t? .' lAY jJ.;t1te fiN ", . . I ~'~t; '" 4151\N~' \'t'4~~ \):. $'8 "f)....' ~\. ~" j'~ .' ~~ \ ~~:. \ ~~~. \~ ~ .~ ~ 'f"l\..l;>. \ t,,~:"\ ~:\'" ~~\...... ~-:.~ ~....... ..\l~ ~ '.l:.. COlf'J1?R:tSES '-" ' {')~~--_...- '" "" y \ ~1~~9uARE: Fi::E~' ~.@!;~E!=!~~B.Y~gSg:..! \ .......,.1 "'\,...,,,. "'(j",,=~r/\\\, "'''~ ~~ t..- \ ":.""" ~f~rj:;; \ \~,b /1"11 ;;_1 f \ \:\!~ ~~r'! \ \' ~\~~ ~ \ \ .' ;".;\;.~. .,"""\"\ ..:.:. . \ .r, .' f; e~......."''-- . ~ .,1 \~.4J:~: c: ;.f;:.:-- . --;:. Ii ~""\""'<I "t<"(J.~~""-~""""" , t '" r.. a~,x~? t -.1r/<;~~',p.c , ~ ~ ...,....~i-:i~l;<.vv.o ...~\ :!I ~ "'. ;. J<H ~.\\:,>.<.d". . i, ~:~ i_ , .~ / ~. '""' ~ ~;. '"" "' . 1"1 .. (".' ~ .", \.'l ,.,. '~. I ,0</' f" /(t~ "\/h~ t:~:;' ~ {i" If . \ , . ., '. T~Hf,: t~ NOT A ~U~V~~ a~~fMC k#.N~, ~IJJT t" CQ.-ol:~H,;t';,} (o.~Q,j..~ "At';., fr~'1~~fN (U'( tl'U:FL.UH"t<: ~:c;a":':t::G ~l' ~""'r""" . <l , '" ff/'-~' t 1ft ~ I ~ . ..... It f . ~ .. . ..'It I', t> l (~ t ~, 'ir~l ~ .j, ..tH, f. . t,~ .t~~* IlE:X.H!E!T . I I ~. f. , , BERKELEY L4.ND COMPANY, INC- l.21l NEWELL AVE. SUITE 120 WALNUT CREEK. CA 94596 PHONE: 256-1108 72- p-. January 12, 1990 Robert Cq Philcox, President Community First National Bank 749 Main street Pleasanton, CA 94566 RE: Your Revised Lease ZUnmendmen't at Dublin Square (Received 12/19/89)- Dear ~rr. Philcox: I met "lith Hr. Sabatte (LESSOR) and lY".u:. William Lane (Architect) regarding the above subject. Nlr. Lane displayed his revised rendering ,-,rith asso(:dated cost estimates. p~fter st.udy cmd evalu- ac~ion{ Mr. Sabatte made the follm.ring firm decisions: A.. We will not expend at t.his ,time, nor in then,ea.r future, the total project cost as outlined by Mr. Lane. B. We 'will r in the spring of thi.s year f complete Dublin Square visabi.li ty imprC?vements r viz: Landscaping, per N.Lane Uniform signager per W.Lane . Exterior painting, per W. Lane . PI1L~beryexterior work to satisfy prior city mandates. We have '?ilery intention completing the above phases, as noted. C. 1:.1r. Lane 1 s revised rendering is available for your perusal. Your architect: can use same in order to ha.\re design compa..tibiLL ty in your bank expansion plan. I conceive of no reason why you pausion plan. , your a.s 1:01.J_ows: cannot nmv proceed "I"ri th your ex- t should be 's proposed let.ter of nas 0",--1 Ul.-.!.. :Ela.r13e:n OJ H a. 5 in.81 ude ~, ReIl.t tCJ b(~ aclj L1st,ed. -to to exercise of option, etc~ 22~ Robert C. Philcox Community First National Bank January 12, 1990 -Page 2 Include Rent shall be subject to cpr increases every three (3) years, not to exceed 7% each time. Mr. Philcox, r feel that we are coming closer to our objectives. Call me if you have any questions at: (415)837-41D5 (after 3 p.m.) (415)256-1104 (Tues. or Thurs.) Thank you for your patience. Sincerely, BERKELEY LAND COMPANY, INC. .'1' / ;&!/~~.' J :- -,' ' / '/ ' /~;J'7t.?;;o:.../ " / r .~ ~ 1/. Elmer B. Hansen ~, EHH:j cc: F. Sabatte ,}. Saba tte \fi., Lane .:i 7~~ ~ . I~-=~ / I <Sf CJ 9~_ d 18 [I 13 I' 14 1,1., 15 I' 16 !1 It 17 [f 18 I) II 19 Ii 20 II 1/ 21 II 22 P 2311 II 24 !i, 25 II H 28 II II n 2'7 H H i! I' 28 II 1! 29 !I 30 1/ " II :.51 Iii I I' ;:;2 11 '..' '- ,I !I Ii Ii ell '~~" . , I ! I I 1 I I 2 3 I 4 ! 5 ,) 6 7 II 8 9 Ie 11 wl1'\l'D LEASE ~ ~; th.e I . ~ '. Lessor and Lessee, without regard to number or gender. ,;, 1 ~ ":'~' -, . ":1; , " I'l' IS I\GP-EED between the parties hereto as follovm: real property situated in th~ Dublin Square ". \' >, '. i . ,.,t.:'!' Shopping Center, on Dublin Boulevard, Du.blin, Alameda County, - ...J...,. '. California,"S'O ;x: '90 feet, more particularly described in "Exhibit An 'l'_ .;, attached ~ereto and made a part hereof. . . ~ l' !~ I t: 2. TEm"! Al\1D RENT: \.J_ The term shall be for tvNmty (20) ~~c " [ ,. -, I :..'!- __ 1 " ~ ; rent 07; sum of Tv-TENTY-SIX THOUSAND 'l'HP-EE HUNDRED Ti1ENTY-T:~REE and I " ,.. . "'. 0" I 20/100 DOLLARS ($26,323,20), lawful money of the United States, ! . . '-' I ONE HUNDRED I i NINE ,md 68/100 DOLLARS ($109068) on October 1, 1967, ONE BUNDRED I NINE and 68/100 DOLLARS ($109,68) on the first d.av of each and I every month therea.ft:er until said. total sum of 'li11E:'iTY-SI'X TR~USAND i -c, '..-, . ,.' ", , . i THREE HUNDRED TWENTY-THREE and 20/100 DOLIJ\RS ($26,323.20} has been ~ONDrTrON2' This lease is subj.ct to the fOll~Wi~gl I I i ! and a.r:)pro\7al of a.ll federal ~ sZ'.ate! coun:ty e.n(~ o.g'encies having juri8dic~-ion for the c,~nstruc1 , mi1intenance and use o:E a camrrrercdtd ," I ! I I r I i , 'I I ! j I J i -_.".....~........_".,,,.O'('!~.:<lI_.~..,,,,,,.w.z>7"'_,,lf;~l:.~~~="".;)~~i\ " ;l . ,,) :. t. _ . ,.' ~ ..., ... . years commencing on the first day of October, 1967, a t a tota.l wh:Lch ,sum 5ho.11 be paid in installments as follows: paidq cond:ttions: (a) That: L(-;ssef: receives the nec€:ssary pe :rrni ts t a.uthori :', tion: en th:3 real property described herein&DOVe, ,.'!\' . fh'. 'i.'~" if lrha t the Comnt:~o 110'; r of the Currency of the .-..j Unit.{;)(:l '. i.... Stat:8S I' O'~ other bank elutho:r:.:L t.y Sfi: an t4 I$csseo f n01',,1 !~eloca.t.e the. c to of 10(>:: "Ce-d .JJ..., ,..;.. 11902 D'Ctolln Bouleva.r:-d, t.o th',2; d{smJ.s~ed :;:.;..... , c' . '...,' '" ',1 --1- -:1 13 I 141 15 I :: I miri~B'known BS the I! Ii 18 II Trust en saidp:t:emi.ses !,I' is> 'I 20,Ii ! 22 I :: II 24 II J 25 J ! 26 I ! 271 II 281: 1.1 -29 I: II .30 II II Ii E;-t:ruct 'on the. dertd.sed Zl fI Ii ", r. II ....,.~ r, Ii q .if !! .,,,,,,...,.,..,IJJ _'_'0 - . 'i~ :,",' f 1 I 2 I i 3 II 4 II 5 ! 6 1 I r ! ~ n (e)' TlmtL.soor i. ablo to'.cure ,the r~l.aao from J 1 1 I I ! I f I , ! I I an existing 'deed of trust on the'entire:J;)ubl:j,n :Square Shopping Centerl as to the portion,of said Shopping Cehter:to'be'leased by Lessee, so that :(.,esseets.J.~f!f:H~- hold itit.erest "dll, be prior,' superior and parel\\ount to the"He.m"of any fuortga.ge or deed; of. ' trust ,which:may now 7 '".'. 'or he.rea'fte':ttaffect Lessor's fee interest., in the" l.,easec) , 8 property Or'any part th€lreof~ In the event, ,Leasor" is" ' II 9 I unable: ,to' obtai.n such a release, this lease shall be 10 null and void. . ~ :' 'r:: "\ 11 "If' any '0'1" t.he 'foregoing governtnent'al. agencie,s' shquld 12 I prohibit.,' enj'oin or 'penalize Lssseein t.he' construction F ereotion,! maintenance',: "or use bfsaid premises by Lessee , Lesse$ shall .have I j I I;essor 1'5 '\iri'able 'to:cobtain 'the releasE' or: the portion ',of;, 'tq.~ pJ~e- I I I I I I I ; i the 'optiori""t'otreat. "this :lease 'as null and void. In "the\3yen'c Dublin Square Shopping Center, described hereinabove f to' be leased. by Lessee, 'j:rom the ,e~dsting Deeq: of so that Lessee's leasehold inter,est as, i. i , I i deed of trust, this lease shall be null and voi.d. Lessee shall ! , - I give notice'in.,,'ri{:inc to J..essor of anv such election under this i paragraph' '^'ithin t.h1. ,::y: ($0 j days 'Of t~e, date that I,e$see recei v'ssl .. I knowlt9dge of 'ene failure., of any of ,t.he condi t.ions contctineq :,herein{, - '., ...., h' ';- I L'3SS0:r: agree:;r t~o gl:ve 'not2.:ce to Le$a;ee 1.n ~n~J. t.:Lng ,'iJ..'C .lU 'S1.K~Y' I , (60)' days' from the date .of the 61\e,cution, o,f this lease <:+$1:0" I contained iie'rein shall be prior, superior "and ':pararllo~nt :.to said:, 4 ~' 1 I I I I I I I I :'et:S!::le" $:..a11 at: hJ.s:, sole cost, and expense", COl\1 a ba.nk building oL2 ,000 fE~et, mo;'~ ~cLth z,j.::,' necoeE:ary fixt:urerJ T /:tnd i'l.ppu)~'i::e1.~ances. j I I I i I . i .. "-.. ~__"....~ -~'-""""'''i'!.'~J::,.;>~;<;:;'"~.,,-,>-wr.r,:<j."~;;!.r,i.,,,;,,:,-_..*? '\>f-.f.': i. .' 11 1./ 'i;lhethe:t or' not.:the holder' Df ;:;~dd, deed of tru$,t; "ill !H1bordinat:e to' Lessee:' s . interest' as contained n01':e.l.ll$ - CONSTRUCTION BY LESSEJl;: I, ------......---.----- CaY l.e;s;s"(' - toge"the:e Const:t':uction to completion, be d.iHgent.l:\:". prosecuted ") -",- _'''''-:'''';''An._'~,.,.. 'j" __'''::'~~~~,:o'~$'l~):~~,'~vk'*,-\fi~U;1~~Ths2~l:''5~~~~Li;;;m'S'i;.f~B"'S~"5',~rk:J,.;,;:r;;:'~~.'~;::.,<v,,-:;'.~;:,,-,~~,i:1;,.:;;$c~'''il;;':i..n'';st',.2ti''~";1'1Y=,,"~''::-''''''''''''''''-___'.~'__'--'----_--:-'_' 2 13 I 14 I I 15 ,/ <' 16 Ii Ii 17 !II II 18'1',11',1 19 . 20 II II 21 II II' 22 II 23 Ii !' i! 8.1, jI 25 1/ ~ I 1r 26 II c2? II II 28 I! 29 II 30 II II :::~l 11 :;; Ii li I' l! II H .J}" '<:I!~~:<;:;~";'. I i I I 1 II 2 II 3 I 4, I 5 I 6 I 7 I 8 I 9 I 10 ,I 11 I , 12 I I 1 ! I I subject to delays covered herein below { and delays, con,s:I}'ced to byl I i f fi .! or materials, Qrre,asonable sJ.lbsti tutei1l ther,e.,~()x:, g.oller. nmen.ta1.., ~ ", ./ ! enemy or )loii):ti~.e .iSli;?vernmenta+. acti,on.' civil. ,c?mmS'tior>. ~"fir~,.?r 1 other, ca~~al!:y <," "11:d~9u:e~ ce:use7. bey'on?, t;h~~easo~7bl~ .. g~~ ~~?J:, of I I I I i I 'I I bureaus haying j1J.risdict~on thereof, .t~ssoragreesthat: Les3ee, I shall be .p!2:rlr\j.j:.teSc.}:oc conn'i'.c:t wi':;:h th"" existing se\'ler ~ ~~at'7cf,< and I ! I i . : .. ~...1! I .~!".;? ,P-9"re.e:c1. p.ettJle.,e~1, LC~81?;c.~ o'I?~6" ~he:~seeL:~~la~. th1 ! by Lessee on the land described hel:ein ,-. . Lessor.. Any f.reV,6]1t:,.iC?n, .-;ielay, or stoppage due, 1:0 "stri~es, walkouts, .l.al?o:; .:dispute,s, acts of God, inability. to qb;:ai,n .labor ' . ".., ..' "".. , r.estrictio~s l governmental regulations, go~ernmeI!tal ,co~tro,!s I the Lasse,~ r :?h<'i,ll, ~xcuEle pel:forrnance by it for a period equal to any such pr~ve~~t;~o~~t(,:delflY or, ~topp~,~~ ~ ~ ..-,: "I ~ 'C ,.~ '. ':; . , -', ~., c.,. i ,'. :(~L: ~r;. . tp.~ cons tructiC:I1 ,~f/ sai~ bui~,~in1!,,_: Le~~ee shall.col!lP~y,,,\c!i~J:1,,:!~,l~app'l:Lc;ableF,,:deral, StEt~, ~ounty e ,,!-pd ~ . ". -. Municipal1aws"<4'1.dJ.FE1,,?sf)~nd regj.lla::ion.s o~;: the de;J?~r::ru,e!1,~r and electricclin.8?,alreadyon the prope:r;'~Y of. the Lesse));: 'itli thout" . chargE: :' .. (0) br'.;Lldin,s:.to be 5110.11 r~main.: t~:::t~~:~~~}':~jo~al: propE::t:ty' of Lessee an~5 ~hall no.:!: become CI. tiJ:turs. '., .,'- ",,:, "'10,":";.-,:,' ,!~TL~..:._A:I.'P SrJBORDINNl'WN: Lessor r~pres~l'lt:s and i ! I I I tol \tlc;;t-;~iU1tS. .;tp.,q.,:~.. to said real .property and }~,,'.s. ,;l\.1t1~{):ri t~y, ,.~.):~t.o .t;he .1ea$e hc:.rei.~l ~ Lesse.e desires to obtain E;, : p015,c? y{i.th respe.c:~. 1:;,0., its, ;Lea.s'!3hold es t.at:e.. :to 's lea.sc.;:hold es;;,ate shall be delivered i:;, a.ud for C(JVen2mts ( <:ond.i.t;~ons r. if.J ~r5:ghts ani:: right.s oJ; way o~ of:which!shall b~ :. t.o thE~ E!-pprov~l..,pf I.essee (lL] ):' C:1 ~\ys rec(-;;i]?t of a Dr~+~~~lilFto~:Y ,tit:l~ em t.b:"l , -, a,DOY0} -o'('i!,:,: Title sht~.11 ;],lS0 be t>~) t.u:xes ~ Ti t~l'6: if h\l' t.'~::B dE~C, ij expense", " . -~...", t"~. r -<,.';" -~.,: (' l' J 2 I 3 4 5 6 7 8 9 10 11 12 13 14 II 15 16 ,I II 17 18 JI 19 II ( 20 I ~l 22 i 23 I ~)Ll. !I ....0:.. II ~5 Ii II ;G I, II '7 L 'I B II 9 II 0 Ii " Ii 1 II )1 II II II " if )) 6 . TAXES,.. I.e. see ahan, in addition to all ,,~ the a uJ agreed ,to ,be paid 'by, it, under 'this lease , r pay all' ~tear and " 1 perso~al propert:ih taxes that shall i during the term' of this "lease, I be aSk1lessepaga.tnst':t:he demised" premises'.':, Lessor aild, Lessee' shal each initiate pro'Ceooings :trJith the Assesso~'~~ 'th~:,~~~ty'!o:e Al&mada to,segJ!'egate',the:demised premises from the area'lth6wn as the ',. Dublin r Square';'; , t 80 ttlttt,> a separate~ tax '-'5111':'wilJ: ,) b~ ' rE\oel ved for the 0 demised prOBm:!,S$fl:~ ",~ L '~. ' ',I <:' ;.... ;..i -:1.~ '" ~ :'.~~ t' '-.:n r.:l.t ,:,. ...: !.., Co~,' 7.1i1 :eAHKING;:AREIU:'o.:ttis'understood and' agre&:d'""tftat the Q~J.i.'1 Scau~rGJ :'ShQPpinSP~Canter ,:is 'presently' peved, 'lighted:aAa: marl~e9. -.,i th van,: adequate r,parlHng- area.,' That ':sai(Fpa:r.king':i3:fea~i.ii -r operat~c\"al\'Lmaintai!fecl ,-by 'Lessor and -,is: for ,'thG! parking .:6f :', :, I b-ll -F" ".,.."., ..' C' "'\'0", ,,' auto)Uo -", es IIJ),";'.lpatrorrS'O.f ."the ,DubJ.l.n Square :,,;>tlopp.tng enter',' J:U- ',! cludiJ;,lg" Les,Olee .::(': ~'es.$Ge."..$' .;patrons sl1a;ll have 'the ',righ'li,"to-'usei ..,the I parking rarea,o:t; t'lle Wublin :.:Square 'Shopping, Center 'for: 6usi6rrler t~; I parl;;i,n,g -tix;,: ad9i:t~on.,to,t:the' portion"or the DUblin 'Square Shopping I Center that i,s,yle.aaed.,by iit;"-he~:eirl. J-,es6ee\~r agents i""t~mplayees and officers j3hall",not ''UEna .';;116 DUblin SqUare Shopping Center";'" eJ:c8pt in :the event,jthat:, such an area may, be set-'aside 'for' shell ~J - '~ I' \ ." PU~pose by, Lessor:, 'NG~k~Rs-4fl-~fl46-~~~se-6~al~_~e~~~~€~_e~' ~'~~ll~ t;.~ - P~Oh~~~~ssqe_~.gM-~~PQa~A~-aRy~~eR€e_e~_e~He~_~~~4e~~_4R€~~J~ l1~t \:1/1'1 VI ~Ug-Wi~ho~-~~~.~a~,Q~~~he~~~~€~Ae~~eg~a4~~G_e~e~~@'_~he_~e~~4~~'~ I o~_ .tht:.:"- [)ub.l..in.;,. .sq~a~e - 1i3.aepp'ing- €0Jn-t.ei,,:" .;he-a,sea:'" ey-'4-.-t." " Operatihgand maintenance costs for any and 2.11 existing pa:rking'a:t:E!~S)':tLs ,of ,the dilte of the exe'c'titicn of :thls lcas;;;-:' ,shall be:,porne', by. Lessor,: and shall lnclud~' wi thout . ,':;' , ,',i.:'_" 1,i.l1lit;:-.ti0l1,' lahor n,iJ.1Sllrl:'lT.lCe ,:,'taxes, ;materials ,:' gUpplies-a.ncf'"-'all othe,r ,r,:osts. of ope:t'a,ting :and .repairing r lighting', clea.n:.Lng';-i [,: paint:ir;,g:,,, remov"i..ng, of- 'rtl.t.lbiSh,'0r 'deb::ris I polici.ng . and, inspe'ct.in'J.' 8. ' USE:,: .Lessor ,shall not use, OT perm:;.,::', <'::>r a11m'! any c~ther pe..rson to . uZ:1e~. eI.uy pO~t'tir}n 't.of ~;he r Dub:~in; -Squ.are Hhopp1,n~J' . ( I I i I J._, --"~'M...<:.!.,._.i!;'i~'4-:';l~'~1i;;.::rt-:~~")'l't'.>!' _,! . !:.; Center on '''lh..teh the demis~d premises ax'!.,: ci part., fo;:. a hank~ ',. "'4- Vr '.; d. I ~' i, If ji I 1 I 2 3 4 5 6 7 8 9 I 10 11 I I 12 I 13 I 14 I ;1 15 II iI 16 Ii II ''7 II J.., 18 19 , 20 I 21 /, I I 22 I 23 'I II 24 11 I: 25 II Ii " 26 'I Ii 27 II II 28 )1 29 II 30 11 !' 31 II 11 3:;; II 'I 11 11 II I ~ H il N ,',,~.l ;'1$1'::;' ASfJIGm.wr::!T Jl..ND'SUBLE'I"1'ING: .Less!;!e 'sha.:!.;!" n<ilire ;t.he righi:::';-to'\(asid:gn\ '!ncll::tgage or hypothece: tethis' leazl/J! ;~oromy in- , i , I I &rW'1 ~I I .,:',": I , I I I ! I { opt'ion to FH:i:tcha:s~ ';~liH,,1~U)j , $.l:;n:;:Udi.ng',': and 'r.$$'see is .w; able .d;'O.L . i <i;ms:i.~ 'or."'~nilil~et}..eliiid:"premise9 "on, reaSon<1!.ble.term$,'for'tha'purpo$~ of'e, hemk~ L€l'I"H!lee;'l\\E\Y'&$l!1;J.gn O;:,f21ubJ.et till"or, any. pllJ,rt.:.of' Baid .JI prc-!!mis('Js {providit;:g , eu6h.a$s~;gl1mel'i.t or':sl1.1bletting. :'i"pto \ a: husines ' ! I I r I I the cCindttct: of d.' Duslnemlil that would dirsdtly compste' witht.J),tJ.t o~ I I i I I I I this lease;.unli;Gie!'J;I.~_ Oth0Z' party h~:1:'~tc shall I",pec:l.fioally,...ugree I in ....":citlng' liltttlh.proposedas&1i.gnm.'nnt "halLso release:.the, I I I I I 'the't' ,iat€~ of. !"@oeipt of:.- such '~!r.',"./t:t.len i I ' fr.-don' [,.e:'il!'iJlii~ ,0' zh~;Il; have. .to. .the build.:tnJi . co",t.~ ~ : \! Ili the o~leht I,'2i$80r, aTI;OUld ,,','c r In. t.he '<1;1?<:mt:: ./ I :{)P~.;j,-'::Jn to p't~~rfJhtzS1$ r ; thi_s, 1, ~cte~ 't{11aJ~'1 .con 't::tXA'i,j;~ 1 I i .~ .............."".<"~ ...."""..R..t<{~~;~_:/v ~<;&: teies't.tfri:t:hia'!~:;:e'ase;':or permit the'use 'of' the 'premises 'by ,any pcir80n'6r:~rli9onti' other' thl'1n 1.,eBae""~o:rsublet t.hetpramislillS/.. or or its assigns par"2:the~eof ("1provided..t.nat in the 'ev"$nt 'Less$e/should -ce&se; to CO!ld'uct O,tii'e:'o~';t\titioria ora. .bank, on ithe'designatad'pzemis-es/' Less:o:n:' J"!l1hall:ha~S;tlhs;oPtion::'to 'Purcheo.$c L<9l!ll!iee's btii.lding in accordance ~11 th' lParaq1'aph1.0 'pertaining d:d Qption, ",!:c'purohase l::iul1dirig;"; It,.t.!',d,ltlterlt' Lossorn:1.oeEl'lot;,el@ct,to exercise j~~s that - ~loGlg: riot comp.ete withe an'<<<1!iSt1.ing 'l:msinafilfl' ,in: s&id '~Dlablin' SquarEi"Shopplng Cr",ribSd:." ..NO part 'Of the ,1eSl.i\H:Hl~ prenu&€!!1Jishall. be sublet:; fo::,"'ii "!;l\.1.t-p~lje"';fhioh i.sunla~rfu:J:faimg0rOus,. no:-d.cn,'lG or cffen~i~let' 1',.nt"iiiUCh"oi.c;signment or I1:t1.bl~tt;i.ng'1;,(h~ll; not bei'for '') t~ another '. ifi~,..tha <btiblin nqu.arE'a"'-Shoppin~J ~Centar~; No:~ fJtlCh ,:.l;....J,. ~~1~;~~l\:,~~: 1,\ r' r 01.... ~ ; g:hall ff>perni:~ tC~;'relietlm' tJl\~. ,s'szignin.g party' of i:mY'Obl:tg&tiot/.>or'-liRbilit.y 13,ris;Lng. under t.he terms of a.-Bsi:;p::Lin~r7 or SW..l.1i1tttJ.ng !flart}'. tC~1i b)?~!~!mCHi{SE pur~;:N~j;.', :In' the event ~iJ)",ee uhr)uld G'on-dtic.;.t "'ehe bf. a:. bani\: , on t.he'" d!'!;mis€ld prend.t%'$$l' L0Ei0e~ giv~.l !{;:n:i tten notice t.O' Les-~HJr~. I,~e$E!.or t . 'Id.thiil, t1i..:' .rAn t' l5eGi' r, ~g .th4!i' l! tb,ig' 1,1N?i[;;f~ ,<ahZil1!, t>$:nrlitll!lt:a ~ r~$ f3 t~:c I! k;5'=' rt; , , 14 II 1511 16 II 17 II <I 18 Ii I'll 19 20 I 21 I 22 ! Ii 2311 24 If 25 II 1/ 2611 I, 2.7 28, I 29'11 30 I , i :31 I 32/1 ,I Ii Il - IJ ~f.r r j..1g I'..G f,:J-Yr; "f 1 in, full; fOrQ6: ano. ,:;\?t feet,. :'and Lessee . may assign ..or I sUQ1E1't:.:;.i,.n 2 accorda.no~ Wittl,PaJ;agraph !}. nerein, pertaini,ng.to asS\igIUl.'\ent; an.o.: subletting; c:~;L\;1aso~ ana:!,1 further have. tt!E?.. option to purchase 3 4 Lessee! s buildi,ng ~I;l,t Lessee '. Ii! unamorthed,~QOE;t ,il}t theu,eVlilnt.;,or 5 de$truction lor.' condemnation ;ifs ;.prQvide4..inP.a1;"agl::aphS,jl~ a,nd.13., ',: shou,ldfLeasee .;~l~o'!.>rto'terminate 'this lease under the provisions of said paragraphs,;;:.. Il:l :the event Lessoridoefi '.not ele,.ct'j:,Q;. ;, " 6 7 8 exerGiseit~.. option, to '~purchase under sai.:LparagraphlJi, Lessee,,,,; 9 shall ~.hav€l,the_lright_.,tQ . sell or ,remove Ejaid puilding. "In s,uqh,. 10 event , ,,:,if. Leuee.,dt:;.HHI :nQt sell or z.:emOvj:l. !>,aid bui~ding, then ~t.,; shall become the pl;Oper:ty ~of. Lessor t ,and Le;!6\oJ: agrees 1:0 '.$"nde.mnif 11 12 and. saye,,,LeSsee, h91J,.-mless fro1'\! and against, any..1and /il:!,l,. clairo..s " l ariaing!fromt.'Le~",~et~:'J;;ai;l.\;!:l:'e to, remove said 1)\:!i~qing::f~9m sa~dla;, d I by..any per:~on o;;::GtQ:~Il,Y property,: and f~o!ll,and agai~st.S'.Hi'90I;>t.s, I 6l,penses. and, '.lia,p.:L1ities W4icp. may be. ingurred.in or iIl",oonnectio/n .. I I I i I I , I ! ! i I I 11~>&.t, ,'.el.ectri9:L;y"F.!nq. PP~(jlr :1tJhich, du:r;:J.ng, the term ?:Etr,:i.a-,~?liuJ'>~,_ I 13 ".;i tho any ,.suqh,~,gJ-a.i~ 9f. DP?;oQ!"eqing . b"=oughtth~;eon, ,;.(: i:k'.J2~,(,s,;I,~ghi.e.lt;)qtion ;by eit4er',po.ri;:y ~!>e;t,1. bel.' IDaqE!' by w:;;itt<!?n ,~?'f::;!.c<p ~f,r9:@ilop.[:3,',p?r~y .to~,the. othfiJ:' !...on. 0;1;' pefqre th~rty (30) ,;days \,<i!,t:6f ;1161 t1~t~;:;Qf ~ the. mu:~ual agree4.terminatiql1,: 9L. ~he 1ea<J.!". or t:J.}~ 'ina tl.,l~.;l.?i:@"cRi~a tion Qf the ~:e1":m, pf ths, le&sEil ~ Qt' th~ ren~"'~l ~.tf j;:he 9PQ01:l, t.o.r~nei:r ,is "exerdsed.J;:.y Lessee ,. :'. :.\ _.:):L'\.'~':~;!3~,;r"m~e.i o",:!:,essee' shaH pay fi;n:, i;lllMai;er;'I, gas, may, be fUl:nl~hed,. tOtQrr,u~ed, on \ the demised. prellliaes, . l?'c.;,GO~WE~iNp.TION'OF PRENISES: In the event or any taking or dilmaSH7l qt:Jl;\lLJpr""my part' of O. t.h.e:le~sed, premi~!\!1? 9r t11.", I pui),<i.ing:,..:,yJ; n~lY.:#,~t9;;:l?Bt\: the~ein'f ,': by :[::''i'asonof an.y'@:I,!);i;q;i.se .0:1; ',U I a condernnat.lon, prq~~~alp.g t I q= .ot!:va:t;.~~:i~t?Zj .;o~(?-fP~1r ~ t.ransfer of 9.11 or: al1Y part of the leased i t;herEin, made i:~), avo.j,q:- , . f ' ,', "',,;. d'o"-'n {,," ,,,,", f'o"L,,- tne po\:",e:;::, 0 :. en..l,1.....,.._ r"o.~ ,Q1.'." : .oJ" .- _ J..1", tQ as ".appr9E)J;:.i(:',tionl'L.p~J..O~;it<?",9r I __._.._...._.L.._.~_:--,;.. . :'1.J1 the "pqw\,\i';. 01f[~~i.r~{;H:!1.::. qo,:\~.i,!:jt whrth~r, prerniscs or i or a,n.y. allC~i)j:)f ,em gg~..ng 1;1?il1gigerEt'!it.'!;,~k -0-- ~. r I i 1'; II ~. ,l. ~ ~ iJ l ~ ~ fl '1 :! , ;;., ~ fe', b 1 2 :3 4, 5 6 I 7 II 8 9 10 II 11 12 ,I 13 II 14 II H 'i II 15 II 16 p 17 II 18 ,I 19 II 20 II II 21 I I 22 i i 23 II :C~4 I if 25 II l[ 26 iI /37 !I I' 28 ! ;:;Sl II II 30 :1 31 II 'I 39' I. ,- ii p II /1 !l F lz ~ I ! I ! during !;the ::i;er:m,her.~9f ~ (oJ: '.<.ny..extension ..0J::' renet'l'al"thereoft, the I ! i .. _~t::,~:.. ': :,(:,;'. ,".r .j ! ! J,ea.l'Iedp:r~lllJ.\ii.es and bUilding, this lease shall terminate as of thel , ~ 'I ::::,\j~:)n;:. G.;. :~ F.:,:;.-::,,"-I,t.:i I ","':,:;:~1:':~,:';\ cfln the>;event Of"ar;., appro.p::d:ation:.;ofde-S'i!> trtan, <ill1 ofl I ;x:ight;; F~d "i\b1ig~i;ions :.of cLessora.'"ld Lessee-vJithrespect to~suoh a.ppr,aJ?.ria:~i,o.n d1}4all "be.as..heJ::eaft@;r ,p"rovidgd, ''- ,:. ;::, {; '::~ .:.: .:< ,II! t:l).e event o;L;;>.ny Cl,pproprution :,of ;'aLltof.t:he, date of su9):'!; _~app~?~r~ati;o'n.,", l- ~.. .- t;.h~ . .1,eased...p..rem.;i,:S1elbj, this (4-ealtle .shalL ,cont.inue in full' fo:u:'c"i' and :0 ~f feqt:.a~c~p'Q., ,,8E\ ;,hereafter . provided in -this 'If\ection'~): .The :J;~a5ed I p.l:'!'imisfZs..shal)..,Q(!\ .r.'sduced.;by the pOJ:"t.ion. .appr.opriate'd,; '; :The total I l,ec;s\$: l':eptf-\l. :~qJ:, . the;; ;l;emaj.nder of th"o,,:.erxn :immedi.ately . pr:tor: "to I t ! i entire'1J.4vttl;X'.Ii.,-;,inqluq.ing ,co;mpensationc.',damageEJ';' ,and.i.interest," if. . >,1 I f 1 f i approp:r;iat;i.pr~ ~JlalJ,., be abeted in.an amount. which !hears. in.:<.the . ., aame, ;ratt.;i,o,:co )~uQh:totf.,l lee.se.. rent.al as. the amount.. 'of the '~i." any,. ::l;'espe.ct to the ,Jlppropriation(inoluding any" se\:e:~_~~';,.n_q~~~ bee.,X's ,to, ..the ,ralue-' of. the entire i.l!eas_ec'l" . ,-~.pd~~b~..ildi~g.. inullec1iately prior tCL:the..apPJ;opriat::i.on-.,... . i I Ij::+~ t#q~, app.:t~op=:;L~t<ion sha.ll e.ithar (i) _re:r~der more. '.than.. twerit~t~ \ i i i f , 81.10"'# I' I tl"lE:Hl ! I Any slJ,ch' election shall: be made, by Hx:itten I I f I I I ;L.:z, terminated pursuant to this section!. I :LeS2G6 sha)..l he{ e:qtitle,d to the aWLlxo,: .for: .any improvement.s. to the i I mode by. Lessee plus :the, aWfJ.rd. ,ft)l\ the..),intereEt of >[ 1 I I ofiess':thal:l. all I I per .0~:m,.t.d20 ~) of~. :the total gr,ound' floor arEa/'ll o:t',the: 'bui:l:d:Lng on ,~c!1e. u:cavail(,-lble or tLYitenant;sIJler'.',Ol:' \'{.1:i) impc.:d.J: ,the., us,,! of the leased premises by Lessee, J..n eithf2'.r P~U"'f}, Lessee shall havs: the xig'h't. t.o' elect to sl1ch thL9:' ~~r()m l~,). J~G,ssor on or jy"fore t.hlrty (30.) ,daj7saft.er 'L~e'ssee dt~'~,$ JJf' ,~., -, :Z:n...t,hf;~ 0". ,.. e"Fcnt !lny of t.l}e, &21,d i:f this lGas~ is noi: terminated pu:r". S€E tJ.1..i~c\D. to I :to t:ho: a'{;'~rd f,:;r i I I ...._._'".._...........L"... LefBse.s sh~.J.ll be. ent.:l.tl.sd v, 1 2 3. 4 5 6 7 8 9 10 11 I 12 I 13 14 15 16 17 , 18 ! 19 ! 20 J I 211 22 .I " 23 ! I 24 I 25 ! I 26 I Ii 27 II ,I H 28 I 29 j 30 II it :51 11 32 d Ii II II q II I, .1 \ !7-Z IV~ any.dmprovements 'made by Lessee .to the portion of .,the leaseCi ! I Lessee"gha.ll':.have, the right to, elect: tOc!ftal):,eany;,restQ:\:'ation of tbie I appropriat.ion.'.,:;:.: ,.,. ,i,'" . ", ,,""' 'J t~,)'.: ,'" ~.d l,,13.. '~dDESTRUCTION OF Pl?..EM~~ES!' '~~ ~~~.,~:~~:,:' of,:a',pl :~tia ., " I destruction"ofd;.he said building during the .~aid ,1;,erm" ;!:rorn any.. r ! :::"::.:;~::: ~:' w:::i::u:e::i:~:e t:: ~.:::, ~:::e::tial that i Lessee sha.ll.be. entitled, to a 'proportionate",degu.ction' of, rent while:. such.1.repairs . are , beincj".made,: such proportionate deduction I J ' -I ! shall ,interf,e"X.'SL'fJith:' the. business carried'on. l;,rv.Lessee in the" :-. l . ... . .. " 1 8aid premises., ,Lessee may,' a.t its option. make su~h, .repairs vIi ~l:d!JI1 a:' reazonable:. timeobut in 'no event more.., than six (6j months., th~l?,! lease' continuing; in fulL~ :EOl:ce and effect. and, tller'ent ,to. bei premillles.~appropriat6d plm'l the"award' fot': the!inter.~rpt::Qf Lessee. remaindarcofithe;leased premises, neoessitated..by,reasQP:og.the to be baaed upon the extent to' which the. making of," such, repairs proport~op~~~ly rebated as aforef>aid in this ,paragraph PFovided. In" t.he,' event~.. that, Lessee does not so elect to. make such repa.irs ,;'.hich. cannot' be made in .six (6) months or such. repairs cannot be" I made under:ouch 1a,,;I\;. and regu1ations;this lease may be. tea:nninate1. at the.. option' of ",i the:!:', party. I ,," L.' i_,,:.'In resl;)ect to emy partj.al, destruction: which,r.essor ~s I obligated,' to ..repair or may' elect to repa.ir under the'. te:nns. of , thi~l pc.ragrai?h, .tllS- provizions of Section 1932, Subdivision 2 r and of I' Section 1933, StiJ.idiVis5:-cn 4, of the civil. Code or t:he s.tate~ of I I I j I and:,' extended cover,,l,qe :Lnsu:r.ance poli,cy, ,On\;.t,hich Lesst,s I , sa;Ld; p!:{ilmisea, shall o<a. pe,ye.ble.. to' ,Lessee ,. .and L€>,ssorl' waive~)..t.h6) t:o' claim, ,t:he- proc,ee4s. of anv ..t11ereof . . I of z;.r~y. 811Ch insurZ:1.~:..c€) pol:l.cies" I 15.. 'L!l-\,BIL!TX INsura\NCE:,' !J,'h,:Ls .le1:1.$6 ,is malle~.up'Q!l, j:he i ----- I ..,-,_",,__ _.....__J.. Califo:rni:~'! are: 'NaiV80. by Lessee, ....~ " ,)_.:' \ J.,t,: . :rIRE .INSURhNCE: Les;z~oX' agrees that., the, 'proc~eds of' 11',,1.$ -8-" \Or 1-l,o;l;P-b.;', J.1 .[ I" , , i l, i: Ii ~ ~ I e'tpress' ' condition that Lessor is to' be:E.:ee from all liabiE ty ! t and; claim.- for dar...ages' by reason of any injury -Co allY person or. ' ~ i per~onsl including Lessee, or property of any kind whatsoever and i to vlhornsoevar b~:l:Ol:l... .glng, including Lessee ,'. from any cause'..or I I j causes. what$oev~r",while in r upon,' or in any way connected. 1i.:U.:h I the.. said, leased land I except the" sidewalks and/or ',parking" area ! adjacent:. tllere:to,d.uring the term of. this' lease or. any extension..f. l hereof,' o:::::'!l.nycocclJ,pancy, hereunder! " Lessee. hereby. covenanting and I agreeing:~to ,indem..I'1.:kfy,and save harmless Lessor from all: liability,l 10S6 ".Cost7.i2aitd.;obl~.gat:l.ons on account of or a=ising Gut of any. .1 such inju=ie~ or J.o8St:!s,ho,Qever oCCUli:'1:ing. .\ . ,.L.!,' L9!l:See' further agrees to -take out and keep in I i rorce during,the lifeherecf at~ LesBee's:e~~pense public liability i I insurance. to' protsct: against. any l:l.abil:l:ty to the public :incident i . I to .the:t'..$c., of or; result.ing from any ac~cident occurring .in. or abou~ 1:11; 2) , 3 I 4'~1 5 6e[ '" I ( 'I 8 I I I I '9 10. 12 13 14 15 I lsll Ii 17 II 18 II Ii II 19 II 1'1 01", 21 I. 11 2::; 'I I 23,1 24; 1 25 II 26 II II :37 b ::::8[1 ~>lf '~UII 3111 32 'j[' 1" jf 11 II II $ ~QQo'.o'o ..1 :.:for'Lmy one perstm injured, or I I I 1 $ _ 200. OOQ.bO ~ : Scdd premises f the-.:UabilH:y lmder such'il'iSUrance to be :not <less 'than for any: one &ccd.d<.an.tr or $3.:~.~L2..00~__ fol:' property damage" i i I arid i 'IhesH'2:.. poJ..icies. shall insure the c01'itingent liabil.ity of Lessor f Less.ee~' agr"~H~B., .~if Lessee does not. keep "such insl1:'Carice i.n full v:hich :.ccnt 'bee-ontes due: I' out the necessary insurance I i I I I I the pe:rfOr:D:lanCe ~of ' all. t:he ,term4 ,during the IGase't'enn a.rid durin~ fOL'c-e :.e~rid ';effect: the Le.ssor.- Utay take and.~ pC).:'{ ~ tlle premiunt and' the rep&ying thereof shall be deemed 'co b~ part,..c,f ,:the: ..~.:r.-er~tal: aJ."1.d pa.Y:GH:;nt as such on the nex'c day upon ,.',' 16.. : QUIET ENJOYri1E~NT' = The Lessee, upon the payment of .!'c.he...J::ent,',',:h€lre.ln res~;:rved and 'upon of .th.is".,l"";~lse", shall at allt:l..InEJi'J any ,~e";:t::engi~Jn . or renQ~ml tenn'peaceably and q1J.iei~ly: enjoy,)t:;h~ IG~a,tq~~d prop'Si-rt',y .wl th 1:;:ee t;;.ccess th(~j::'Erto 'V,rit.t.v:..Jut dist,'U!.\bance froin :t:he l.Jessor ~or f~om a.ny cthel~ .p6tson ;~lrd..mj.ng th1:'ough the Le8S0~;, "17. IA;~~ f, se(~ shr~ll pl~OC~J-J.:'G erne. pa:t i f1'J::+ all: -9- " ~ HI o'l-___,- I " :j! I ,. 1 ,2 3 ,? 5' .6 7 8 9 10 II . , ~icensesandpermits needed in.connection with the' operation of i .i:lusines:f:f, ~and ,shall: keep'f.he"business open on "allregular 'busiri:es :d&ys. .~ ~ . , -'. ::\\ ';". I".,-t -~:' CCl.\:.. i,-' .:. :La..:' COMPLIANCE WITH Ll\NS: The' L~sseeJ~h;;il ,at is' sole:'eXpense~,.promptlycomply ~1i th'cil1 pres'~n:t: ahd futu're"laws, regUlations'br rules' of any county;' st'ate'- federai;, ~ii-c!' oth€/i.:: .' governmental autho~ity and any bureAu 'and'depart~~'n.t,..the'f'~~''f whi~J may;be appl:\,cable to the leased prope:tty~' The. Lessee~ shall have the ;.right~ after' written notice to the 'Lesso';t to"~bnt~st by . . ..' . 1.,' ,<.. ,.. appropriate::'<legal: proceedings,. diligently conducted in good faith the, validi tysbr' appHcation of: any.' suet;' law', . rsg=Uiation; at' rule, 12 and ~ to :-delay ;'compliance ",therewi th per,dil19'Che. prosecutiort "of such 13 proceedings, '.,provided nOI civil or criminal liabiiity' woillo.)5e 'in' 14 cur:t:edbY;l the LSssor and' no 1 ien or' charge would :be imposed upon J.5 or.\lJatisfiedlout :.df :the leased propert:fby rea~oi{of' su6h dela:y. J.6 I ! any ',action .by"either party heret.cas, :ag'ainst the 'otheih<;::'reoJf'~r 18 I . . , . ',.., I hereu.t1dar, 'or by:teasol'1 '.01' .the br~ach of 'any' co-Jenarit"or conditior 19 i' oDithe part: of, the othe:r: party F 'or arising out of this lease," ther I fu.'1d." ,in. that., e:vent the party in ,'lhosefavor final' judgment shall bE 11/' entered shall be :erd:.i tIed to have and recover' 6:f"ai-i'd from' the oth€ Iii reasonable attorney's' fees to. be fixed' by' tile' 'court: wh'e'rein such 23 II judgment;"s,ha:!::h:be entered.' II Ii II writing "'-rld 'must-be' sent byregifltored or ccrt:ifie,d mail to the II II its address' as : 'I Ii Oakland, Californ.:La 94608, The Lessee hereby d.e,signates its II address a:3: P.O. Box 220, Ploa.sant.on, Ca.lifornia. II q II option to renew this lease ior c\ fu~ther> 1X.,riod of tVleni:y (20) H II H It II '.;..19 ,r ':.'ATTOR1\JEY'S FEES: In the event Of 'the' bdtlgiilg:; bf 17 20 21 22 2f Any notice \mder t.his. lease lnQst be 20 ,;.NOTICE: in 25 26 last address of the party 'co '-'Thom the ,ns'!::~?e is: to ~p..giyen, .as ;':.:...~:,;:~Y '-"..1 \...' _ _ .~. .,.;.", . des;!;gna:te0.:b~r'such party in wJ:itir.,g:;'The 'Lessor hereby designates f27 28 HE,RK}!;LEYLAND COl'lPP.NY.,._.4550 San, P.abl.o" Avenue " 29 3.0 ~51 21. is hereby granted OP~~ION TO RENEW; ~-----,_......- LessE'.e an -1.0-' ,~, '! I I \ I ~."'''''''r.):,:j :;~... '\ ~"\'~. .~.' ~ ~., ., ~ ~ . ....... .., - .. ,~ ,y,ea':;;a 1" frow,' .arid . afterthto (driiraHon 'or ,the"'oi;iginalterm at a ~. _" ,-.~~...;.~'''' ~...f;"~ ....'.......~.,. ;..;" .....~.. ,. 2 ::re:nta1 of" o.~:e.:.HUNDRED FIFTY-.THJ;<.EEi;1P.q.,56/199:.D9LLA.RgJ ,J$153. 56) pel ~i. "I : "'i!'~~; ~~~L<i9i.~~,':.e:, uP"nt,':::a~~:;;;~",:' ~"". :c, on~i t i:on, ~ < ~~ herein 0." I i\ ,c~~~~~~~' ~~~.b;; l,i: o~~i 0; tc~~p~~.'.. ';rl t~~" · ~;'ti ~"::~~ . (~~f \';~e:a,~~~ i:~;~~~t~oh,~: t~ren~~(~h~~ .1~a:i~;1;~:.l,i:'~~'-gi~(~/~t,? ~Le8sor " .. -" .. ,) ... 6- ... \J " , I ... ...1.;; a (, v -' ~ .... -'. .' -. t.~ .~...., ...." ". . . 6 -at least' sixty ".{6'O') "d~ys prio~"to~ ,the' expiration of this lease, 7 122. ARBITRA'rION: In the event of any dispute bet"reen 8 Lessor and Lessee relative to the provisions of this agreement, ,: III 11 12 l~ ,J I 14 I 15 j J, 'I 16 II ~: 1\, IS' !l " ! i 20 I 21 I 22 23 I 24 Ii 25 II 26 II 27 II L 'I 28 I 29 i 30 II II 31 II :-52 II II Ii j' .! they shall e~ch select an arbitrator, the two arbitrators so selected shall select a third arbitrator and tl1e three arbitrator ,l.:r/',...-,' so ael~,c;ted';'shall hear and determine the controversy and their nec'is':iol1 thereon shalt be final and binding Upon both Lessor "lr'lL/~ and Lesae~i~:~~l;o shall beeu:: the cost of such arbitration equally . ,,;:;-:(/,~::,~.\ r ',: , . ,.b.e...:\!~e:\!\,,,"1;:hem. \, UP010" nm::te8 by either party ~hat he desires to .. ~ ~ \ '" "", have\a\roatterctfbitratec1, t,he other party shal;!. '\I!ithin five {5} '~-,~', ~'1..'~! r,._",,~t ' :" ;: -:{.' - a.ays 0:~~.~9;r't€r notify th6. party requesting such arl?i::tration as ',> 'co the \p.3.me:"andac1dress of ,his arb:ttJ:atQr. The arbitration ghal: " ~_:.~.:_:_,;_~,.'_'.;.' ....'.-..._. '. __ <_::._" '. ~::i: ~:":' ,. \,. 'So heard ahd:'co;no1.eted wH:hln thirty'(-30)-:aa~s from the dat.e the .~i \ - . :-'fi~8t not:':i.CB of rec:n,les't to arbitrate was deposited in the united . \:~~.... ... :' Sta tes mail~~pr personally deli \re:red t? tl:'!e', other. party, 23 :\ SUCCESSORS Al\fD P,SSIGNS: This agreement shall bind and inure to "the benefit of ,the sU:cces~ors, assigns, personal :repreBenta'~i'\i'~s; heirs ared legatees of the respective pc-.rtiss. IN NI{r~"ESS vJHEP"EOF r the pa.rt..ies ha\re h~reunto affixed their signa'tures the 14t~h day of l\pril r 1967" . .r:. !!.l 1",- 'I'H1?" FIRST, L'iliTION]1,L BI\.NK cr,' PLEl"SAl; a c.orporat ~on, ";' ('v-.:... \ BY""~ {)..':.~",8~~.~~, ~ I.... ~\' -" /1 ( \~\ '~ PresiC:'S'1t By !tIAfv'vv-- !1~{;;:'6"L ~~ -i--<~-~.-v~...~~.v;-7'-----"- Vice 1?rcsid~*~( 0: Cashier i/ I,] BERKELEY LAND CO~~ANY, a corp-oration /:> ' - ::t' - / idzali' .,.. ( c"'), Bv ,.-1{"".,J,.-"I'Z" < r-1 j;"l< -_-;..:-/..<;:'i/,././ (I; 'r.t-:; . .. ~..:-;.:......-___~__' v" /' ! ."- _~._.~~_.;..,_ . ! - / --11- i ~=t ,. j) "'r--- -~.... - ~.~;."......~.... '...,............M........'._, """'-~...............'.....~..~". . :t' .. I ~' ii..... t , g I: .\1 (!" .~ . . : t\ f~~ , :... Ii 'ilt. t ~ lcz ~! ,H. e i I;' That parcel of land 1n the Township of Pleasar.ton. County of Alameda, state of California, desoribed a3 fol10wn: Beginning at the point of intersection of the southeastern line of the state Highway from Hayvlard to 1i':e:>:'>.1ore with the south'"estern 'line of the parcel of land designated as Parcel 2 in the deed to : H.B. Oxsen recorded June 10, 1936 in Book 3317 OR, page 470, Alameda County Record:;; thence along the last named line south 210 15' east 25 feet'; thence north 680 45' east 25 feet to the actual poir.t of co~~encement; thence south 210 15' east 90 feet; thence north 680jM5' east go feet; thence north 210 15' west 90 feet; thence south 680'45' west go feet to the actual point of corr~encerr.ent. . "vJ;ii ;)ff(J"V./ ~" '\-~ ,Iff/a f.~8 f> -0 of S~ ,- fc (1 y;v:>yr . \ ":::J f{'fi ,../'""\\" ". ;' J) I ../" c--.. ~. 01--" . F~../" ,.'_~ ~ v,, .. ~~~ ~ \~u " {; . ,~~ ~~\. \~\ ~ ~ ~ .(;'>o,.>~~ ,,",." ,-" '\ . . ~-T. t'. ~ . \'::::, ,,-,\0, '\ 't . /" '\...,. \ \<;;:-.. ~ ,..... \~ .,// \"C'>.\' \ ~ . ,~~ Sf \. N \' ,~ "-\ 'I.:?--f....' \ \ :'> ~\~.., '"\sbfP' U \ j~- . ~ I'OR'l'ION OUT.wINED IN RED C_OMPR~SE.S \ ~ \\~l:ffi 8100 SQUARE FEE'l' LE.i\SE~ BY LESSEE )\ '-~ .. 6"'/ \ ~\~ 1~0)::t \ ~ ~~~O I, ~ f'I'''' f \ \\~ ~ "2. ! \ \ ~j:~. \ \ 'v' fc.~ "'- " 04.[.".' (: y/'. ~ Ii 'I~~" 1"1003300':;;---':'- . , "1f050 ,,"' ';.:.\';:. II ~ f : ,.~ 2-~ ;......'" , j- . ~. I ' '. ~ r "l,oI!' .. <('f, ;. )..l(/{. Y ,;..:-1;' ~'6/ ( iJ r' .;.fO <:" ",' THlru IS NOT ^ ~U1'{Y&l" Or-'1H"- L...ND. UlIY r~, '::':(hU":U:~ ;:'RO,Y, CAT,.', e;HOWN BY ;'H4: J"UTJ1..1C rt:ECO:1;:)'S. \~'~~"'C>:"",," , 1:;1 I IlEXHIBIT A"