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HomeMy WebLinkAboutItem 4.09 Dublin Historic Pk Acquisition CITY CLERK File # D[l][f]~-~DJ bOO-30 I17fJ- 2D AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 1, 2007 SUBJECT: Approval of Purchase and Sale Agreement for Real Property at 11759 Dublin Boulevard for Capital Improvement Program (ClP) Project No. 95556 - Dublin Historic Park Acquisition (Heritage Center Expansion) and Approval of Budget Change Report Prepared by: Richard C. Ambrose, City Manager ATTACHMENTS: 1) Resolution approving Purchase and Sale Agreement and the Assignment and Assumption of Leases Agreement for 11759 Dublin Boulevard, (together with Exhibit "A", Agreement) 2) Budget Change Form RECOMMENDATI(WY' \ 1) Adopt the resolution approving the Purchase and Sale Agreement Between Berkeley Land Co. and the City of Dublin and the Assignment and Assumption of Leases Agreement for 11759 Dublin Boulevard and authorize and direct the City Manager to execute the agreements. 2) Approve budget change form in the amount of $7,900,000 FINANCIAL STATEMENT: The purchase price ofthe real property at 11759 Dublin Boulevard required for ClP Project No. 95556 - Dublin Historic Park Acquisition (Heritage Center Expansion) is $7,865,000. The City's portion of the estimated closing and owner's appraisal costs for the subject project are no more than $ 35,000. The budget for the acquisition is paid for through the City's General Fund and development impact fees. DESCRIPTION: At the September 16, 2006 meeting, the Dublin City Council approved an amendment to the 2006-2011 Capital Improvement Program for the Dublin Historic Park Acquisition project. This project provides for the acquisition of the Dublin Square Shopping Center (APN 941-1560-007-01). The Dublin Square Shopping Center totals approximately 40,585 square feet of buildings on approximately 4.25 acres at the southwest corner of Dublin Boulevard and Donlon Way. The City obtained an appraisal of the property and then offered to purchase the property for the appraised amount. COPY TO: Page 1 of2 ITEMNO.~ (' ,,./ The City and Berkeley Land Company, the owner, entered into negotiations which have resulted in an agreement to purchase the property for a total purchase price of $7,865,000. The proposed Purchase and Sale Agreement (see Exhibit A of Attachment 1) calls for, among other things the City to take the property "As Is" - with existing tenants in place. The Purchase and Sale Agreement also recites that the purchase is being made under the threat of condemnation. The City will pay all escrow and closing costs and will reimburse the property owner in the amount of $5,000 for the owner's appraisal costs, as required by law. The Purchase and Sale Agreement provides for close of escrow to occur on May 9,2007. The Assignment and Assumption of Leases Agreement will assign to the City all of Berkeley Land Co.' s existing leases at the close of escrow. The City will then be the lessor until it is able to relocate the tenants. If the acquisition of the property is approved by the City of Dublin, the City, through its staff, agents, and consultants such as Associated Right of Way Services (AR/WS) will comply with all applicable laws including California Code of Regulations Title 25 which includes providing assistance in searching for suitable replacement sites for each business. The City Council will consider approval of the Final Relocation Impact Statement for the Dublin Historic Park Heritage Center Expansion tonight. If approved by the City Council, the City will present each occupant with a Notice of Eligibility, provide assistance in searching for suitable replacement sites for each business, and provide assistance in claiming relocation reimbursement payments from the City. Upon adoption of the Final Relocation Impact Statement, and the close of escrow, relocation efforts will commence. RECOMMENDATION: Staff recommends that the City Council: 1) Adopt the resolution approving the Purchase and Sale Agreement and the Assignment and Assumption of Leases Agreement for 11759 Dublin Boulevard and authorize the City Manager to execute both agreements, and 2) Approve the budget change in the amount of$ 7,900,000. 2~V 19b2~ RESOLUTION NO. - 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 ParksIPublic 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. BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute the agreements. PASSED, APPROVED AND ADOPTED this_day of ,2007. AYES: NOES: ABSENT: ABSTAIN: Mayor Attachment 1 23f)Z~ ATTEST: City Clerk G:IChrislBerkeley LandlPurchase and Sale May 1 2007 Resolution. doc 3f>2"y? 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, Seller 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. WHEREAS, Buyer and Seller 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 DOLLARS AND NO CENTS ($7,865,000). 3. PAYMENT OF PURCHASE 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- Exhibit A of Attachment 1 C:IOoclIments and SellingslPOMILocal SellingslTemporary Intemet FileslOLK 1 F61960463 _1.00e lfct Z3~ 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 ~ Grant Deed to the Property as provided herein and attached hereto as Exhibit "C," 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 "Assignment 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 shall any such supplemental instructions supercede or contradict the provisions of this Agreement and in the event of any inconsistency between the terms of this Agreement, on the one hand, and the terms of any such supplemental Escrow Instructions, on the other hand, the terms of this Agreement shall supercede and be controlling. -2- C:IOoclIments and SeltingslPOMILocal SeltingslTemporary Intemel FileslOLKJ F61960463_1 .ooe t::>uu 2~&f 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, shall 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 10th. At Close of Escrow, a check payable to the County Tax Collectorfor 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. Seller and Buyer shall each cooperate with the other diligently and promptly to correct any errors in computations or estimates under this Section provided Seller 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) 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 the Lease Assignment Agreement, and (iii) the Nonforeign Certificates. -3- e:IOoclIments and SellingslPOMILocal SellingslTemporary Intemet FileslOLK 1 F61960463 _l.OOe l.t; t 23&>f (D) Deliver to Seller: (i) conformed copies (showing all recording information 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, examinations, 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:IOOClIlllents and SellingslPOMILocal SeuingslTemporary Intemet FileslOLKl F61960463_J .ooe ~ en Zg'l 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 to 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 WAIVER. (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:IOocuments and SellingslPOMILocal SellingslTemporary !ntemet FileslOLKJ F61960463_J .ooe ~ <1b23 q (i) Any and all claims, actions, causes of action, suits, n,."ro""rlin,...,... ,...,,...m-....,..I- r:,..h+_ '"'''''.----,...- ---"'- -"'---5-- -... O~....._... --------.&.:-- 1-'1 U\"\J\JUIII~", U\J' IOIIU." II~IIL", UOIIIO~\J", \"Vo;)lo;), v^tJvll co;) VI lIlCI vVllltJCIl;)dllVII 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, or 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 Qroundwaters 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; (D) 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. (B) Without limiting the scope 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 CERCLA (hereinbelow defined), RCRA (hereinbelow defined), the Carpenter-Presley- Tanner Hazardous Substances Account Act or any similar or other Applicable Law now -6- CIOOCLlments and Seltil1gslPOMILocal Sellil1gslTemporary Intemet FileslOLK I F61960463 _I.ooe ~ 1j3q 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. 99 9601, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. 99 1801, et seq., as amended, the Resource Conservation and Recovery Act, as amended ("RCRA"), 42 U.S.C. 996901, et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. 99 1251, et seq., or the Clean Air Act, as amended, 42 U.S.C. 99 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", "RCRA hazardous waste", "waste" or "hazardous material" in 99251151,25117,25122.7,25120.2,25124,25281,25316 or 25501 of the California Health and Safety Code, as amended, or listed pursuant to 9 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- e:\OOClIl11ents and SettingslPOMILocal SettingslTemporary Intemet Files10LKIF61960463_J .ooe lD'bt.~~ of 1986, California Health and Safety Code 99 25249.5, et seq., as amended; (vi) any substance defined as a "waste" or "hazardous substance" in 9 13050 of the California Water Code, as amended; and (vii) any substance listed in California Labor Code 9 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 WARRANTIES. (A) Seller's Representations and Warranties. 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:IOoclIments and SellingslPOMILocal SellingslTemporary Intemet FileslOLKI F6\960463 _I.one t lUCf-34 (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 with 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- e:IOOClIlllents and SettillgslPOMILocal Sellings\Temporary Intemet FileslOLK I F61960463 _l.OOe [2-tf34 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 Property. 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 Property 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 12th Street, Suite 1500, Oakland, CA, 94607). 36. EMINENT DOMAIN DISMISSAL. Seller and Buyer acknowledge 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"\OoclIments and SettingslPOMILocal SellingslTemporary Intemet FileslOLKJ F61960463_J .ooe \3'tf34 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 the final expression of and contains the entire agreement between, the parties with respect 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 otherwise expressly 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:IOocumellts and SettingslPOMILocal SeUingslTemporary Intemet FileslOLK 1 F61960463 _ J .ooe ! Y:1f~4 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 ATTN: Elizabeth H. Silver Claudia J. Gorham FAX: 510-444-1108 -12- e:IDocuments and SeuingslPOMILocal SellingslTemporary Internet FileslOLK I F61960463 _l.Ooe IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth hereinabove. By: ATTEST By: BUYER/CITY: CITY OF DUBLIN Richard Ambrose City Manager City Clerk APPROVED AS TO FORM: By: Elizabeth H. Silver City Attorney SELLER: BERKELEY LAND COMPANY By: ~- By: C:IOoclIments and SettingslPOMILocal SettingslTemporary Intemet FileslOLKI F61960463 _I .ooe -13- l5~34 ACCEPTANCE OF ESCROW HOLDER The undersigned hereby acknowledges that it has received a fully executed counterpart of the foregoing Agreement and agrees to act as escrow holder under the Agreement and to be bound by and perform the terms thereof as such terms apply to escrow holder. North American Title Company By: Escrow No. Name: Title: Title Officer Date: -14- C:\DoclIments and SeltingslPOMILocal SeltingslTemporary lnlemet FileslOLK] F61960463 _1.DOe lCa VfJ~4 1l8b2.34 EXHIBIT "A" LEGAL DESCRIPTION [Insert Legal Description of Fee Acquisition] BlCMl4S 831\698682.3 -1- l~qy3~ 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 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 16,1921 AND RECORDED JUNE 21,1921 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMED~ COUNlY, PAGE 347; RUNNING THENCE NORTH 680 15' EAST. ALONG SAID SOUTHERN LINE OF THE 5T A TE HIGHWAY, 114.56 FEET; 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 50UTHERL Y (MEASURED AT RIGHT ANGLES) FROM THE CENTER UNE 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, 113.02 FEET; THENCE NORTH 220 is' WEST. 174 FEET, MORE 'OR LESS, TO A POINT WHICH WOULD BE INTERSECTED BY A LINE DRAWN PARALLEl- WITH THE CENTER LINE OFTHE STATE HIGHWAY AND DISTANT SO FEET SOUTHERLY (MEASURED AT RIGHT ANGLES) THEREFROM; THENCE NORTH 68015' EAST, 114.47 FEET TO THE POINT OF . BEGINNING. . P:ARCEL1WO:- BEGINNiNG AT A:R.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 ROAD.Wri'fi THE SOUTHEASTERN LINE OF THE STAtE HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HIGHWAY NOW EXISTS, AND AS SAID HIGHWAY LINE AND CURVE ARE DESCRIBED IN THE DEED FROM FELIX FERRERO AND MARtE 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 68"15' WEST, 105.92 FEET, MORE OR LESS, TO THE. . NORTHEASTERN LINE OF THE PARCEL OF LAND DESCRIBED 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 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, 113.02 . FEET, AND NORTH 22015' 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 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 MENTIONED COURSES, A DISTANCE OF 58.63 FEET TO THE SOUTHWESTERN LINE OF THE PARCEL OF LAND DESCRIBED AS .PARCEL2j" IN THE DEED FROM FELIX FERRERO TO H. B. OXSEN, DATED JULY 1, 1936, RECORDED JULY 10, 1936, IN BOOK 3317 OF OFFICIAL RECORDS QF ALAMEDA COUNTY, PAGE 470; THENCE ALONG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN LINES OF SAID LAST MENTIONED "PARCEL 2", THE FIVE FOLLOWING COURSES AND DISTANCES: SOUTH 21. 15' EAST, 371.91 FEET, MORE OR lESS: NORTH 71. 30' EAST, 24.618 FEET; SOUTH 21" 15' EAST, 39.60 FEET; NORTH 710 30'. EAST, 250.80 FEET AND NORTH 23. 15' WEST, 38.2B 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 63045' EAST, 202.62 FEET TO SAID SOUTHWESTERN LINE 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: 941-1560-007-01 L4 'tj31 BLCM\4S83\ \698682.3 z,O"1J~f EXHIBIT liB" DEPICTION/PLAT MAP OF FEE ACQUISITION [Insert Map of Fee Acquisition] -1- 2 (1f31 L MAP ~ .Coo_ A,tib N"..IB'02~ n qq() Os . . 26-00\ ::)lP 0, MAP OF THE PROPERTY' OF TAE ESTATE OF At,41 iii. I D'::' 2- ElIZ"~ETH A. OQUGHERTY.(8.f:'.4.~.?41 . . SANTA RITA RANCHO ~Ctbun" a~mr. J.D. Pl:ICbtCd(.-;t~AN'/ Scal.; I.. 1'00' &.u.-~ ~() .-.; / / / t~ . ;.4 iJ if I~ "6 40 ,. ... c~ ~ ~il:r: ~="-~ ..."..". , I.in ~~~ 'v- .... ! ~ 1550 pu~u~ ;., SUNC.... (Co. ~OA.P \~~ .. . ,/)QtV~I)# NK .............- ,"fT u!.fP' @ ",r ~ ... S~:S~ .. . ,. e:.€) . " .' 113 ... !:: . .. ... .. ... ... .. '.,' ~ .. ." ... p:tl; .~. _.:-'"'"'"1.. .!;s"" 1 __ _~I. L Fl~' ,. '" ..; IL'.' ,: . ~~.t~. .~ . ~ t! .."';, ......-...:-r . e ') . ~.~_. '() Sll ~ '" . . ~eITT. noo s J .il -Q 101.. JO !l '3 ! '5~ u- -I Ii' !-,. 11 t~ .~.!! e.~ .e~ 11 ~!t . !!~ -Q .!I c: g.'1/I .::: ~i f5.!! s! =0 ~~ ol! -;, .511 f-! ,.. ... -' " r.s;;v .tP. I ~ ~. If .111 ~ \ . 0 .." .I .. 0 II?I./.' ...... 115' I:- 8~ ~! ... ~11I'i::r;:rAIiI'T <it::.."'_"''I'!=R''0 . . .5 CiTY. . . . .. "r;.:~. . ".. ."oC .:. ,-~... 115.,0 '. .. 'j , . '." . . . . . I - . . Description: Alameda,CA Assessor Map 94{ 1560 Page: 1 of 1 Order: ae am Comment: ..~.I" .....-10- J ~ \ ~ 1 R ~I l' ~ !t'\ .. ," ~ ... .. JQ ,w. . >> ~ ~,.., ~ " c::) {W\ CD! " ~ '~:,' '\[, ~ -1 (:), , .... .... .....II..-s-: "~50), ~ ""So E' . ~ ~ .., ~ " .. ':s;) FiQ 2M ~~ t'i ~. ;a}> @..f. ~ (') :::j -(, ,. - '. . - ."" 11>-- .. -.:= --'~ ~OOI '-.,s- ~ ~ ~ w OVBL/. ~ Iol . · ~0) .~ " =i -< - , .. -- -- 2. Z~'23? . f" .; ", . -. , -- --- 4-27-82 Rtf 5-09-B&e:!'L 6-1-88 PB" .,'.' ,'f .. BLYP - n~s..'~ > ~ \ ~ tJ\ ~ .~ ~ fIi ~, 't ~, ~ () P 1\1 o. ,~ . .Ot . - '.' olD @ "1: ':1> ." c.:. en ' :0 ~ b I'll '"11" A C:::l: r '-I tD .~:.t N'X n .... ,,,. .1'1'1 2. .... . ~ "'U - Q .... ......_ ""-'i .;~ . Q. - ..... -. :I ii! '" 0 . ..""'\. ::! 3l ~ c..;:a ... .-. ':., C) b)i J>.:G O.':Z. ~ -b0 c " cr.:t: 0 0 g. 0 C""ll . Q-t C') :i:~ Q.. ITIITl ~ :U", ~ -Ien ~ -<-I "d}' ~!4 ~ '!t1'l1 ~ .J\ 0 ~ ~-q ~ ~ t1 n =i @ U1 01 o '0\ / ,C ' 01 r ~ .i ~ ..r' -~ 0 (/J ~ .i ~ r c I c;: <: 2- ~ ~ 230c EXHIBIT "C" FORM OF GRANT DEED BLeM\4583\ \698682.3 -1- Recording Requested By 2~~Z3'1 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 CORPORATION GRANT DEED A.P.N. 941-1560-007-01 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 nON, 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 April 27. 2007 STATE OF CALIFORNIA, COUNTY OF On )SS. ) before me, Berkeley Land Company, Inc., a California Corporation Notary Public, personally appeared per By: Frank E. Sabatte, President sonally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature MAIL TAX STATEMENTS TO: (This area for official notarial seal) SAME AS ABOVE NAME ADDRESS CITY, STATE, ZIP C:IDocuments and SettingslPDMILocal SettingslTemporary Internet Files\OLK1F6157310108 - Corp Grant Deed1.RTF 7, 6 'D2 '3 '1 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 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 16.1921 AND RECORDED JUNE 21.1921 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 347; RUNNING THENCE NORTH 68015' EAST. ALONG SAID SOUTHERN LINE OF THE STATE HIGHWAY, 114.56 FEET; THENCE SOUTH 210 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 CENTER UNE OF THE AFORESAID STATE HIGHWAY, AS RELOCATED AND AS THE SAME NOW EXISTS FROM SAID POINT OF BEGINNING; RUNNING 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 PARALLEl- WITH THE CENTER LINE OFTHE STATE HIGHWAY AND DISTANT 50 FEET SOUTHERLY (MEASURED AT RIGHT ANGlES}THEREFROM; THENCE NORTH 68015' EAST, 114.47 FEET TO THE POINT OF . BEGINNING. . . PARCEl1WO~ BEGINNiNG AT A:PDINT ON THE SOUTHWESTERN LINE OF FOOTHILL ROAD, ALSO KNOWN AS THE ROAD FROM DUBLIN TO SUNOl, AT THE SOUTHERN EXTREMITY OF THE CURVE CONNECTING: SAlb ROADWr'r8 THE SOUTHEASTERN LINE OF THE STATE: HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HIGHWAY NOW EXISTS, AND AS SAID HIGHWAY LINE AND CURVE ARE DESCRIBED 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 CURVE, BEING ALONG THE ARC OF A CIRCLE TO THE LEFr. 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 680 15' WEST, 105.92 FEET, MORE OR LESS, TO THE. . NORTHEASTERN LINE OF THE PARCel OF LAND DESCRIBED 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 NORTHEASTERN, SOUTHEASTERN AND SOUTHWESTERN LINES OF SAID 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 220 is' 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 68015' 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 DISTANCE 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 10,1936, IN BOOK 3317 OF OFFICIAL RECORDS OF ALAMEDA COUNTY, PAGE 470; THENCE ALONG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN LINES OF SAID LAST MENTIONED "PARCEL 2", THE FIVE FOllOWING COURSES AND DISTANCES: SOUTH 21015' EAST, 371.91 FEET, MORE OR LESS; NORTH 710 30' EAST, 24.618 FEET; SOUTH 21015' EAST, 39.60 FEET; NORTH 710 3D', EAST. 250.80 FEET AND NORTH 230 15' WEST. 38.26 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 LINE 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: 941-1560-007-01 . Z0;4JZ3t:( 2:Zt23cr EXHIBIT "D" ASSIGNMENT AND ASSUMPTION OF LEASES BLeM\4583 I \698682.3 -3- 23~3~ 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 "Property") more particularly described in Exhibit "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. Assiqnment. As of the Effective Date, Assignor does hereby assign, transfer and convey, without recourse, to Assignee all of Assignor's right, title 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 limitation, all obligations to return Security Deposits not already returned by Assignor under the Leases ). C:\DoclIrnents and Settings\PDM\Local Settings\Ternporary Internet Files\OLK I F6\960366_1 2.DOC -1- 24Db~ 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. Attornevs' 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" THE CITY OF DUBLIN, a municipal corporation ,2007 By: Dated: RICHARD AMBROSE CITY MANAGER C:\Documents and Settings\PDM\Local Settings\Ternporary Internet Files\OLKl F6\960366_12.DOC -2- ~1Jz3C[ EXHIBIT "A" DESCRIPTION OF REAL PROPERTY C:\Documents and Settings\PDM\Local Settings\Temporary Internet Files\OLKI F6\960366_I 2.DOC -4- 3(1J231 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 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 16,1921 AND RECORDED JUNE 21.1921 IN BOOK 18 OF OFFICIAL RECORDS OF ALAMEDA COUNTY. PAGE 347; RUNNING THENCE NORTH 680 15' EAST. ALONG SAID SOUTHERN LINE OF THE 5T A TE HIGHWAY, 114.56 FEET; 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 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 66" 13' 30~WEST,113.02 FEET; THENCE NORTH 22"15' WEST. 174 FEET, MORE . OR LESS, TO A POINT WHICH WOULD BE INTERSECTED BY A LINE DRAWN PARALLEl- WITH THE CENTER LINE OF THE 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'fWO:- 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 OF THE CURVE CONNECTING: SAtb ROAO'WI''rH THE SOUTHEASTERN LINE OF THE" STATE HIGHWAY FROM HAYWARD TO LIVERMORE, AS SAID HIGHWAY NOW EXISTS, AND AS SAID HIGHWAY LINE AND CURVE ARE DESCRIBED 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 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 DESCRIBED 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 2416. 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,113.02 . FEET, AND NORTH 22015' 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 68.15' WEST, 119.3-4 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 DISTANCE OF 58.63 FEET TO THE SOUTHWESTERN LINE OF THE PARCEL OF LAND DESCRIBED AS .PARCEL i', IN THE DEED FROM FELIX FERRERO TO H. B. OXSEN, DATED JULY 1, 1936, RECORDED JULY 10,1936, IN BOOK 3317 OF OFFICIAL RECORDS QF ALAMEDA COUNTY, PAGE 470; THENCE ALONG THE GENERAL SOUTHWESTERN AND SOUTHEASTERN AND NORTHEASTERN LINES OF SAID LAST MENTIONED "PARCEL 2", THE FIVE FOLLOWING COURSES AND DISTANCES: SOUTH 21. 1S' EAST, 371.91 FEET, MORE OR LESS; NORTH 71" 30' EAST. 24.618 FEET; SOUTH 21015' EAST, 39.60 FEET; NORTH 71. 3D', EAST, 250.80 FEET AND NORTH 23" 15' WEST, 38.2B FEET, MORE OR LESS, TO THE SOUTHEASTERN LINE OF THE PARCEL OF LAND DESCRIBED AS "PARCEL 1U IN SAID LAST MENTIONED DEED: THENCE ALONG THE LAST MENTIONED LINE NORTH 63" 45' EAST, 202.62 FEET TO SAID SOUTHWESTERN LINE OF FOOTHILL ROAD; THENCE ALONG THE LAST MENTIONED LINE NORTH 250 45' WEST, 325.39 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. APN: 941-1560-007-01 32b23Cl 3~~23( EXHIBIT liB" LEASES C:\Documents and Settings\PDM\Local Settings\Temporary Internet Files\OLKIF6\960366_12.DOC -5- t. ~ L{orJ 23q CONlMERCIAL LEASE AND DEPOSIT RECEIVED FROM The sum of $ 825.00 evidenced by Check Jodv Rhone. hereinafter referred to as LESSEE EiQht Hundred Twentv Five*_**'******************************************************************************** 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) $ 400.00 $ $ 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--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 11847 Dublin Blvd. Dublin. CA consisting of approximately 700 square feet, upon the following terms .and conditions: 1. TERM. The term will commence on . Sel?tember 1. 2005 and end on AUQust 31. 2008. 2. RENT. The total rent will be $ 15.300.00 at $ 425.00 per month (based on first year's rates) payable on the 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. Danville.CA 94526 or at such other places as may be ~esignated 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 c/large of $ ....22.-Plus Interest at -1L % 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 bemaOO or permitted to be mllde upon the premises, nor acts done, which will 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 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 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. 7. MAINTENANCE; REPAIRS, ALTERATIONS. 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, 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 received, normal wear and tear excepted. lessee will be responsible for all repairs required, except the following which will be mllintained by Lessor: roof, exterior walls, and structural foundations (including any retrofitting required by governmental authorities) and: lessee &ill, [twill not maintain the property adjacent to the premises, such as sidelNalks, 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 will give lessor lit least two (2) days written notice in order that lessor may post appropriate notices to avoid any liability for liens. 8. ENTRY AND INSPECTION. Lessee will permit 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 sixty (60) days prior to the expiration of this Lease, to place upon the premises any usual "For Lease" signs, and permit per~ons 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 the 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. . 10. 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 delivered. Lessee may terminate this Lease if possession is not delivered within ~ days of the commencement term in Item 1. 11. LESSEE'S INSURANCE. lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee and Lessor with minimum coverage as follows: 1 Million Dollars General Liabilitv 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 lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. 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 trade fixtures. 13. SUBROGATION. To the maximum extent permitted by insurance policies which may be owned by the parties, lessor and Lessee waive any and all rights of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered to the premises. except: ******11'.'**************.*************************************.",******************************************************************* . 15. 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 written consent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the term of this Lease. If 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 deemed to be abandoned, at the option of Lessor. Page 1 of 3 l' ~ SifJ23C-Z Property Address 11847 Dublin Blvd. ...._Jlln. CA 17. CONPEMNATION. 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 the value of the premises remaining bears to the tot<ll value of the premises at the date 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, or the remainder is not susceptible for use by the Lessee, this Lease will terminate upon the date which the condemnor acquires possession. NI 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. 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 any damage to the premises occasioned by the removal. 19. PESTRUCTION 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. HAZARPOUS 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 bt!Siness, and are in compliance with all environmental laws. Hazardous sub$tances 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. INSOLVENCY. The appointment of a receiver, an assignment for the benefits of creditors, or the filing of apatition in bankruptcy by or against Lessee, will constitute a breach of this Lease by Lessee. 22. PEFAUL T. 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 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 terminate Lessee's right to possession, and Lessor may enforce all 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 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 perform,mce of the Lessee's obligations. Lessor may, but will 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. PEPOSIT REFUNPS. 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 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 and Lessee arising out of this Lease, the prevailing party will be entitled to reasonable attorney fees. 26. 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, orlo L.essor 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 will be effective five (5) days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 28. HOLPINC 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 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. HEIRS, ASSIGNS, SUCCESSORS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 31. 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 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.S. 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 denominator 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 PISABILlTIES 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 with a professional familiar with the requirements of the Act 35.LESSOR.S LIABILITY. 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 of such tille or interest will be substituted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that this 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 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 that there are 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 conclusively 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 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 [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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. NI financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. Page 2 of 3 1 . .' 3(0 "b23~ Property Address 11847 Dublin Blvd. ...._oJlin. 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 he or she has thoroughly read and approved each of the provisions contained in this Offer, and agrees to the terms and conditions specified. "',..~ ~ _ 9- 7--6:) La.... Oa~ Receipt for deposit acknowledged by Date ACCEPTANCE The undersigned Lessor accepts the foregoing Offer a~d agrees to Lease the premises on the terms and conditions set forth above. M~ Lessor Date 9 !~/d r Lessee acknowledges receipt of a copy of the accepted Lease on (date) L-J L-J (initials) Page3of3 '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 tenmnation. i, ~~~ Jod one 1-7-os- Date / 31~' ,.. ( .i'~ 2f6"JfJ 23(' " COMMERCIAL LEASE AND DEPOSIT RECEIVED FROM The sum of $ 6.800.00 will be applied as follows: Simin .Lalefar and Hermin Laletar ( Sixty Eiaht Hundred and no/100 dollars), evidenced by Check hereinafter referred to as LESS!:E, . as a deposit which will belong to Lessor and TOTAL RECEIVED BALANCE DUE PRIOR TO OCCUPANCY Rent 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--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 Califomia , described as the oremises located at 11837 Dublin Blvd. Dublin. CA consisting of approximately 6.800 square feet, upon the following terms and conditions: 1. TERM. The term will commence on December 1. 2006 and end on November 30. 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 the 1 st day of each month. All rents will be paid to Lessor or his or her authorized agent, atthe 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 ~ days after due date, lessee agrees to pay a late charge of $ ~Ius interest at-1L% per annum on the delinquent amount. Lessee further agrees to pay $ ~foreach 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 Home Fumishina 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 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 will increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering the property. Les.see will not conduct or permit any saie 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 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. 7. MAINTENANCE, REPAIRS, ALTERATIONS. 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, including plate glass, electrical wiring, plumbing and heating and air '. eonditioninginstallatlons, 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 walls, and structural foundations (including any retrofitting required by govemmental authorities) and: -****...****** Lessee &ill, Dwlil 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 will give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability for liens. 8. ENTRY AND INSPECTION. Lessee will permit 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 sixty (60) 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 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 the 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. 10. 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 deUvered. Lessee may tenninate this Lease if possession is not delivered within ~ days of the commencement term In Item 1. 11. LESSEE'S INSURANCE. Lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee and Lessor with minimum coverage as follows: 1 Million 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 lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. 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 trade fixtures. 13. SUBROGATION. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and lessee waive any and all rtghts of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered to the premises, except: *************************************,*************"**********************.'A'***************,***************1f**ir***************.** . 15. 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 written consent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 16. ABANDONMENT OF PREMISES. lessee will not vacate or abandon the premises at any time during the term of this Lease. If 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 deemed to be abandoned, at the option of Lessor. Page 1 of3 ~. 3f'(,'''bZ3 ( Property Address 11837 Dublin Blvd. Dublin. CA 17. CONDEMNATION. Ifany 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 rentfor the remaining term as the value ofthe 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, 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 movinge)(pellses. 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 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 MATERIAL$. 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 envlronmentallqws 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. 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, will constitute a breach of this Lease by Lessee. h 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 Ule 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 unpaid rent which 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 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 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 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 will not be obligated to, apply all or portions .of the 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 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 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. 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 to reasonable attomey fees. 26. 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, '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 will be effective five (5) days after mailing, or on personal delivery, or when receipt Is acknowledged In writing. 28. HOLDINC 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 $ 10.200.00 , 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. HEIRS, ASSIGNS, SUCCESSORS. This Lease Is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 31. 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 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:S. Consumer Price Index for All Urban Consumers (1982-84= 100) rCPI"). 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, an? the denominator 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 DISABILITIES 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 with a professional familiar with the requirements of the Act. 35, LESSOR'S LIABILITY. 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 of 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 all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that this 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 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 that th~re are 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 conclUSively 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 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 [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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. Page 2 of3 ,,' Property Address 11837 Dublin Blvd. Dl.Iulln. CA 4OZY623r 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: . Exhibit A: Floor Plan Exhibit B: Ootion to Extend the Lease Exhibit C: None Lessee The undersigned Lessee acknowledges that he or she has thoroughly read and approved each e provisions contained In thlli Offer, and sgr to the termli and conditionli lipecifled. .~ Hl~JlJ;@)/~br\1 Dare Date ////;7 /~ 1/ /zd of. Receipt for deposit acknowledged by i. ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and agreeli to Lealie the premises on the terms and condltlonli liet forth above. Lessor ~ 1LwM- Date II/u/lJ t. , 11/2'/ tJ f.. LLJ~ (initials) Lessee acknowledges receipt of a copy of the accepted Lease on (date) Page 3 of 3 ,/ Property Address 11837 Dublin Blvd. DULI"n. CA ... +-- .- . , 1 : I 9 i.,. H r:' f . ' I , , ~;. ~l (~ I I '-$ I J. '\ - . -, - ';;'~~'s ~ ~ .. I I ~ l~ exhibit A Floor Plan ....."" : Ii I ~ .1\ .~~ 'I ! , I. t : , ~ I \ L .. Lf I 'b231" i I. . , . ' : l I ;1 f l I I! ; 1 t t \ (5;'/ / /////../ / /,.~/ ~ I! I .< -),.y/^>'^/<<~~. .j I i I // / / / / //// ;- J \ ' I 11 (/ " = ~l ~ /f/) -r.:::: - - " ~'._~,/I t" . --A . ~ " " " '. " '" ..... ~. '"W . " '- "'" "'""... " , '-').""'- L . / / / // r-.", " ~-:-)- _._..._~-~._~~ . .-:..-: / / /_ .L~-~;.:a ',-;'-. _ Jo.' .' : ! - --_.:::.=:-;:;.-:_::;:-=....=_._~ .-........" .- " " '''''~ .. ~l" -.,,,,,' C'>- '\' ,,'. '\ ~~. ',,, ~ ' tS~<<<<, :<?- ,}:"~\J '~../~<~/~k.~~~ " . '. y >.~~/ /)")T ~. i / . / /.//. ; / / . I i . ~ J.- ~~. -I- 4Z~Z34 ',' Property Address 11837 Dublin Blvd. Duulin. CA Exhibit B Option to Extend Term Tenant shall have the right and option to extend the term of this Lea~ for one additional period of three years commencing on expiration of the Original Term specified in Exhibit B of this Lease (the "Option to Extend Term") provided: (a) Tenant has fully and faithfully performed all the terms,covenanls, 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 Term of the Lease. (b) Written notice of Tenant's ele:;tion to renew the term of this Lease is delivered by Tenant to Landlord at least 180 days before expiration of the Original Term speclfied 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 with Item 32 of this Lease. .<> L[?;, 'tJ23<=j '. . ~ . ,Il- SHOPPING CENTER LEASE "'\ Between BERKELEY LAND COMPANY, INC. a California Corporation, Landlord and CHEF'S TOUCH CATERING Tenant Dated: /1/z.t5/'Jp I, .'J I>P-~. ARTICLE 1. 1.01. 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. ARTICLE 5. 5.01. 5.02. 5.03. 5.04. ARTICLE 6. 6.01. 6.02. 6.03. 6.04. 6.05. 6.06. Lf4~ 234 SHOPPING CENTER LEASE Table of Contents LEASED PREMISES Agreement to Lease ''Premises'' Defined Right to Use Common Areas TENANT'S BUSINESS USE AND NAME <'" Permitted Business Use Tenant's Business Name TERM OF LEASE Commencement Date and Term RENT AND OTHER CHARGES Initial Minimum Monthly Rent Common Area Maintenance Costs Utility Services and Charges Taxes Additional Rent Late Charges MAINTENANCE AND USE OF COMMON AREAS Maintenance and Control "Common Areas" Defined Tenant's Right to Use Tenant and Employee Parking CONSTRUCTION AND REPAIRS' Condition of Premises Alterations and Improvements by Tenant Tenant's Construction Alterations and Improvements by Landlord Repairs to Premises Ownership of Improvements " , . ,~ ARTICLE 7. 7.01. 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. 9.01. 9.02. 9.03. 9.04. 9.05. ARTICLE 10. 10.01. 10.02. 10.03 ARTICLE 11. 11.01. 11.02. 11.03. 11.04. 11.05. 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 INSURANCE Insurance by Landlord Insurance by Tenant Subrogation Waiver Proceeds Indemnification SUBORDINATION, ATTORNMENT, AND ESTOPPEL CERTIFICATES Subordination Attornment Estoppel Certificates CONDEMNATION Termination of Lease Continuation of Lease Option to Terminate Lease Condemnation Award Waiver 11 Lf 5 'fJ 23"1.. " ',,: ARTICLE 12. 12.01. 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. 13.11. 13.12. 13.13. 13.14. 13.15. 13.16. 13.17. LKoCJb23q 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 11l " . . . 41'1J 181 SHOPPING CENTER LEASE This Lease is entered into effective , by and hetween 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 and performed 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" Dermed 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 PremiseSQf above the interior ceilings of the Premises. Right to Use Common Areas Section 1.03. Tenant has the nonexclusive right to use, in common with 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 NAME 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 business is Chefs Touch Catering. Tenant may not change its business name during the term of this Lease without the written consent of Landlord. If Landlord consents to a change in the name, Tenant shall be solely responsible for all costs of changing the name, including costs of changing the name as it appears in any signs of the Shopping Center, ifany. 1 , . . . "1CO "b -Zyt ARTICLE 3. TERM OF LEASE Commencement Date . Section 3.01. The Commencement Date shall be October 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$500.00per 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 offor deduction. lithe Term begins (or ends) on other that the first (or the last day) of a calendar month, the Minimum Monthly Rent for the partial month shall be prorated on a daily basis, based on a 30-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 Ten ant 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 Costs 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 multiplying (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 ground 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 owned 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 amount determined 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 ofthe bin for such charges. The amount billed to Tenant shall be based on Landlord's estimate of Common 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 the immediately preceding calendar year. Within 90 days after the end of each calendar year, 2 '. . .; lq an Z3t:t Landlord shall deliver to Tenant an itemized statement of the total Common Area Maintenance Costs for 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 COmnlon Areas (defined in Section 5.02) ina manner deemed reasonable and appropriate by Landlord, including but not limited to all costs and expenses of or relating to the following: operating, heati1'tg, 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 ofthe 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 Maintenance Costs" shall include a management fee paid to Landlord or to a management company employed by Landlord and equal to fifteen percent (15%) ofthe total Common Area Maintenance Costs. Utility Services and Charges Section 4.03.(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 term of this 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 Maintenance Costs, and Tenant shall pay the bill for those services at the same time Tenant pays its share of Common Area Maintenance Costs. For utility services provided by Landlord that are not separately metered and that are used by Tenant in common with other Tenants, Tenant shall pay Landlord a proportionate share based on total square footage of gross ground floor area of all Tenants using the common utility services. (b) Landlord may elect at any time during the term of this Lease, but without any obligation to do so, to furnish, or to select an agent or independent contractor to furnish, at 3 " . . 8Di1bt31 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 Lind10rd 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 land, 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 the 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 taxes 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 during a Tax Year by a fraction, the numerator of which is a numb~r equal to the total square feet of gross ground floor area in the Premises, and the denominator of which is a number equal to the total square feet ofrentabt.e ground gross floor area in the Shopping Center owned 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 Common Areas). Tenant's annual share of Taxes shall be paid in advance on a quarterly basis in equal installments or upon such other intervals and in pro-rata installments based on the length of the billing period as Landlord may determine and in the amount billed by Landlord; concurrently with Tenant's payment of Common Area Maintenance Charges under this Lease. At Landlord's option, Landlord may estimate the amount of Ten ant's quarterly or other periodic share of Taxes, provided the estimate does not exceed by more than 10 percent the actual amount of Taxes for the same calendar 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 Tenant with a written statement for the preceding Tax Year, showing the total Taxes, the amount of Taxes actually paid by Tenant for that Tax Year, 4 " " '8IVbZ~ 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 Annual Tax Statement. In the case of an overpayment, Landlord shall refund the amount of the overpayment to Tenant within the same 30-day period governing underpayments; provided, however, that if Tenant is then in default under this Lease or otherwise indebted to Landlord, Landlord may deduct the amount owed to it from the overpayment. (c) "Tax Year" means the 12 full calendar months of the term beginning on January 1 immediately following the Commencement Date and 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 shallbegin 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. rfLandlord 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, including 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 acknowledges 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 of which will be extremely difficult and impracticable to ascertain. Such costs include, but are not limited to, processing, administrative and accounting costs. Accordingly, if any installment of rent or any additional rent of any other some due from Tenant shall not be received by Landlord within 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 . , . . '62. 9J ~3Vl 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 Ten ant'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. MAINTENANCE 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, illU'ininate, 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, buildings, or facilities in the Common Areas,. provided the change, construction, or removal does not permanently and unreasonably interfere with Tenant's ingress and egress to the Premises. Landlord may employ and discharge all personnel 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 roles andr~lations for the Common Areas; and close the Common Areas when necessary to make repairs, changes, or alterations to the Common Areas or to prevent the acquisition of public rights in the Common Areas. In the event of a temporary closure of the Common Areas or the alteration, rearrangement, or other change in the facilities of the Common Areas (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. "Common Areas" means all areas, facilitiest space, equipment, and signs made available by Landlord at any time for the common and joint use and benefit of Landlord, Tenant, and other tenants and occupants of the portion of the Shopping Center owned by Landlord, including their respective employees, agents, customers, and invitees. "Common Areas" includes the following, to the extent provided by Landlord: parking areas, driveways, access roadst landscaped areas, truck setviceways, loading facilities, pedestrian malls, stairs, ramps, sidewalks, public restrooms, and elevators. The rights granted to Tenant to use the Common Areas apply only to Common Areas owned by Landlord. 6 . , ~300~3A Tenant's Right to Use Section 5.03. For the term ofthis Lease, Landlord grants Tenant and its employees, agents, customers and invitees, the non-exclusive right, in co.mmon 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 govern 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 is a copy of Landlord's current Rules, ifany. 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 all times during the term of this Lease keep Landlord furnished with a current list oflicense plate 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. ARTICLE 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 acknowledges 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 ofLaIidlord. 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 Ten ant or the Shopping Center, and in all respects shall comply with the requirements for Tenant's Work described in . Section 6.03 of this Lease. Tenant's Construction Section 6.03.(a) At its sole cost and expense, Tenant shall commence and complete construction of all improvements or alterations to the Premises that are necessary for the conduct of Tenant's business on the Premises ("Tenant's Work"). All Tenant's Work must be performed 7 '. 'b<-t aclY1. 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 of this Lease, builder's risk insurance for the Premises. This insurance shall cover the full replacement value of all work perfonned 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 encumbrance 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 encumbrance or to otherwise discharge it by deposit or bonding. If Landlord pays or otherwise 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. Landlord's right to payor otherwise 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. (e) In performing or causing Tenant's Work to be perfonned, Tenant, at Tenant's sole cost and expense, shall comply with all applicable laws, regulations, orders, and requirements of 8 " 35 OZ;22f'( 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. If any 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 Ten ant'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 Ten ant'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 hannless 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 Work. 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 of the 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 wans, 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 shall maintain and keep in good order, condition, and repair the foundations, exterior walls (excluding the storefront wall, windows, doors, and plate glass), and the roof of the Premises. Landlord'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 make any repair, except in the case of emergency, until it receives written notice from Tenant of the necessity for the repair. In making any repairs, Landlord shall use its best efforts to perform the work with a minimum of disruption to Tenant's business. 9 " '3G'b~Y1 (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 of the 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, ifany. Tenant's obligation to maintain and repair does not extend to any areas or portions of the 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 make 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 include interest at the then-xpaximumlegal 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. Landlord shall have the option, however, on expiration or termination of this Lease, of requiring Tenant, at Tenant's sole cost and expense, to remove any or all such alterations, additions, and improvements from the Premises. ARTICLE 7. DESTRUCTION OF PREMISES OR SHOPPING CENTER 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 damaged or destroyed by fire or any other casualty covered by Landlord's fire and extended coverage insurance, Landlord shall promptly repair, rebuild, or restore the Premises to substantially the same condition as was originally delivered to Tenant under this Lease. Notwithstanding 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 insurance 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). Landlord shall commence repair, restoration, or rebuilding work, as appropriate, not later than 60 days after the occurrence of the event causing damage or destruction, and shall cause construction to be completed not later than 180 days after the occurrence of the event causing damage or destruction. If Landlord does not commence or complete Tenant shall have the right to terminate this Lease by giving Landlord written notice with 10 days after expiration of the applicable time p.eriod. 10 " " <67f5b ~:?q Right to Terminate Lease Section 7.03. Notwithstanding Section 7.02 of this Lease, Landlord shall have 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 msurance. (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 the cost of repair, restoration, or rebuilding exceeds a total of 45 percent of the then-replacement cost of the building. (c) At 1~~P 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 of this Lease. If Landlord elects to terminate this Lease under any of the above circumstances, Landlord shall give written notice to Tenant not later than 30 days after occurrence of the 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 ofthe Premises. Abatement of Rent Section 7.04. If damage or destruction to the Premises renders the operation of Tenan.t'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, if the damage or destruction results in the termination of this Lease, on the date of termination. If Tenant 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 occupy. Obligations for Repair or Rebuilding Section 7.05. If this lease is not tenninated pursuant to the provisions of this Article, Landlord's obiigation to repair and rebuild is limited to construction of the perimeter walls, floor, ceiling, and roof of the Premises, and excludes interior finishing and the storefront for the Premises. The Premises as completed by Landlord shall contain approximately the same amount 11 ?; 3~ 2:3t'( 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 tenninate 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 of rebuilding or restoration, excluding costs covered by Tenant's insurance 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 Work could be filed. ARTICLE 8. USE OF PREMISES Storage Section 8.01. Tenant may store on 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, sanitary, 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) Pennit 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 incidental telephone sale of merchandise that Tenant is permitted to sell on the Premises to customers. 12 ~lfJ ~3P( (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~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 pennit 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 otherwise. (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 all licenses 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, unless it obtains the prior approval of Landlord. Tenant shall maintain all signs and other items described in thisoSection 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 Regulations Section 8.06. Landlord shall have the right from time to time to adopt, amend, or supplement rules and regulations relating to the Premises, the Common Areas, and the Shopping Center. Ru1es and regulations in effect as of the date of this Lease, ifany, are attached to this Lease as Exhibit C and are hereby incorporated by reference. Landlord shall notify Tenant in writing of any amendment or modification made to the rules and regulations. Rules and 13 QD'1JZ3tt regulations shall apply uniformly to all tenants in the Shopping Center. Tenant agrees to comply with all roles and regulations; a failure 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 of a 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 subtease 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 Landlord deems appropriate. Any 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 Landlord'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 written agreement for a specific transfer that provides otherwise. The prohibitions against transfer described in this Section include any transfer transaction described above that occurs by operation oflaw, 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 rent 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 transfer, 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 transferee 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 Tenant over the amount of rent payable under this Lease by Tenant to Landlord. (c) Any sublease, assignment, or other transfer agreement described in this Section must recite the following: that it is subject and subordinate to this Lease; and that the termination by Landlord of this Lease will, at Landlord's sole option, terminate the sublease, assignment, or other transfer agreement. (d) The transfer of corporate shares of Tenant by assignment, sale, bequest, inheritance, operation of law, or other disposition shall not be considered a prohibited transfer transaction 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 . . q t'b ~Yt (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. INSURANCE Insurance By Landlord Section 9.01. Landlord shall procure and maintain during 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 and maintain other insurance covering for Shopping Center, including the following: liability insurance 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 year, but not more frequently, Tenant shall increase the amount of public liability coverage, if 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 " " C1211{) 13q (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 of the State of California. Tenant's policy ofliability insUrance shall list Landlord as an additional or a named 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 bya 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. Tenant may maintain all or part of the insurance req~ired under this Lease by means of a blanket insurance policy so long as the provisions of this 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 fife and extended coverage insurance policy or othetwise adversely affect the premiums 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 policies 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 term of this Lease 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 Tenant, and Tenant shall compensate Landlord for the cost of the insurance premiums. Tenant shall reimburse Landlord 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 reimbursement within the time required under this Subparagraph shall be considered a default under this Lease. Subrogation Waiver Section 9.03. Landlord and Tenant agree that in the event ofloss due to any of the perils for which they have agreed to provide insurance, each party shall look solely to its insurance for recovery. Landlord and Tenant hereby grant to each other, on behalf of any insurer providing 16 -. q3~ 2-.?1 iDsurance 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 ordainage 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 hannless 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 assumed 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, AND ESTOPPEL CERTIFICATES Subordination Section 10.01(a) Except as provided in Subparagraph (b) of this Section, this Lease and all of Ten ant'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 instrument ("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 Wlder 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 tmder this Lease and continues thereafter to fully perform all its obligations under this Lease. (b) Notwithstanding the provisions of Subparagraph (a) of this 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 the document, without regard to the execution, delivery, or recording dates ofthe subordination instrument described in this Subparagraph shall not require the consent of Ten ant, but Tenant agrees to execute and deliver, in recordable form, an instrument requested by Lender or Landlord to confirm or acknowledge the subordination. 17 ?t '-t 6b 22>'1 Attornment Section 10.02. If Landlord transfers its interest in 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 of 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 statut' of this Lease. The certificate shall be in the form 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 with 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 if so, a description of the 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 aclmowledgment 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 Of of Ten ant defenses or offsets against the enforcement of this Lease that may exist prior to the date of the written request for the 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 taken 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 actual physical possession of the Premises is taken by the agency or entity exercising the power of eminent domain. Thereafter, both Landlord and Tenant shall be release from all obligations under this Lease, subject to the provisions of Section 11.04 of this Lease. 18 " .. QSfJ'JYt 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 of the 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 Month1y 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's expense, 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 taking includes any portion of the Premises: (a) More than 40 percent ofthe gross floor area of the 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 (d) 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 parking 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. This 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 eminent domain. 19 ..- ?J&>fJ1.3b1 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. Waiver Section 11.05. Landlord and Tenant 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 termination of this 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) Any 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 ofthe Premises by Tenant. For these purposes, the absence of Ten ant from or the failure by Tenant 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 perform any other provision of this Lease to be observed or performed by Tenant, when the failure continues for 30 days or more after written notice of Ten ant's failure is given by Landlord to Tenant; provided, however, that if the default cannot reasonably be cured within the 30-day cure period, Tenant 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 within: 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 Tenant adjudged a bankrupt or ofa petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, it is dismissed within 60 days); the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Ten ant's interest in this Lease, when possession is not restored to Tenant within 30 days; or the attachment, execution, or other judicial seizure of substantially all of Ten ant's assets located at the Premises or of Tenant's interest in this Lease, when that seizure is not discharged within 30 days. 20 V'fi11fJ 231 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 tho 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 of award of the amount by which the unpaid rent for the balance of the term of this Lease after the time of award exceeds the amount 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 tenns ofthis Lease. As used in Subparagraphs (a) and (b) of this 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) shall be construed as an election to terminate this Lease unless a written notice oftennination is given to Tenant or the termination of this Lease is decreed by a court of competent jurisdiction. 21 " 4C6Db 231 Landlord's Right to Relet 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 term, 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 make alterations and repairs to the Premises. Tenant shall be liable for all of Landlord's costs in re1etting, 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 re1etting. Landlord's Right 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. Anysum 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 this Lease. Cumulative Remedies Section 12.06. The remedies granted to Landlord in this Article shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or provided in this Lease. Waiver 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 surrender the Premises in good order and condition (reasonable wear and 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. rfTenant 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, shall be considered a month-to-month tenancy that may be terminated by either party on 30 days' prior notice to the other. All terms of this Lease shall be fully applicable to the month-to-month tenancy insofar as consistent with a month-to-month tenancy except proportionate share of 22 .' ~ . orqDb Z3CC 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 detennined 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 p~onalliability 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 ownership 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 ofa 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 Ten ant's claim. 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 Tenant 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 (including 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 '. . t OD un "'231 Removal of Hazardous Materials Section 13.04. Ii 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. Landford-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 ispennitted or required to make under this Lease, whether to the Premises, adjoining premises, or the building containing the Premises. For any entry made while Tenant is open for business, Landlord shall use its best efforts to minimize interference with the conduct of Tenants 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 any agent or broker with respect to Tenant's lease of the Premises, each party agrees to defend, indemnify, and hold the other harmless from and against all 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 interest. 24 .. . 10 l Db ;?/3q Notices 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. California 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 manner 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 Section 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. This Lease may be modified or amended only by an instrument in writing signed by both Landlord and Tenant. Exhibits Section 13.13. The following exhibits are incorporated by reference in and constitute a part of this Lease: EXHffiIT A: Description of Premises EXHIBIT B: Outline of Landlord's Property EXHIBIT C: Rules and Regulations EXHIBIT D: First Right 25 ~ I Oz'"1J '2.3q Invalidity or Unenforceability 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 be presumed or implied. Any such waiver must be expressly made in writing 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 in a sum less than what is actually owing shall not be deemed a compromise, settlement, accord and satisfaction, or other final disposition of the amount owing unless Landlord agrees otherwise in writing. Captions Section 13.16. The captions and numbers of the Articles and Sections of this 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 following the commencement of 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 following the end of each lease year at the place then fixed for the payment ofrenta 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 satisfactory to Landlord in scope and substance. The statements referred to herein shall be such form and style and contain such details and breakdown as Landlord may reasonably determine. 26 " Executed on California, () c1- / , 1998, at lD3 en CZ3t{ tvAvnuJ ~ Ca- BERKELEY LAND COMPANY, INC. a Calif1~.o . ration By: Ju& , - nffPA W }u~ Its eu!tf'lAv-V( Ve"ft.r +- /f1.6 7 Ji, c I). tOn . ~~~~. ~~ Cv1/Jf1 W~/~ Its '" 27 ...- . EmmIT A Measurement of Premises Approximately 5,630 square feet measured outside of exterior wall to outside of exterior wall. .. lofl I.DY.Ob~'t ,. [QB-tfJ 2.01 p.02 ...~-- -~----- B r----L . . , , I.' . I:i. '. . I' S -. -i .1 "f- ': >r . I . ~. ",.\ . '. . 1 . ." "'. \,~ '\-"'\;) I' I " '~~~J,' . , ., I '(i~<<~~~~~ ,51 L-./.. ".' ..' ~.'., ." " ..... ~ . . .". . l' .; . :',-. .' .'; '.: "';~~.~ . . '.":' I., .~. .... .- . . .' . . ; ." ..... ." . . :... " '.. . .: EXHIBIT B ." IO~'b Z?fi EXHIBIT C RULES AND REGULATIONS OF THE SHOPPING CENTER A. COMMON AREA 1. All Tenants shall use their best efforts to require their respective customers, invitees and employees to comply with all 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 Cornmon 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 Center for such purposes. B. STORE INiERIORS 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 tenant of the Shopping Center, and until removal shall be stored: (a) In adequate containers. which such containers shall be located so as not to be visible 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. 3. No portion of the shopping Center shall be used for lodging purposes. 4. Neither sidewalks nor walkways shall be used to display, store or replace any merchandise, equipment or devices. 5. No advertising medium shall be utilized which 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 portion or portions thereof which would: (a) Violate any law, ordinance or regulation, 10f3 ~~ \D7oo Z3Cf (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 advertising medium,.shall be utilized within the Shopping Center which can be seen or experienced outside the premises of any tenant advertising any auction, fire, banlcruptcy or going out of business sale. c. CONDUCT OF PERSONS The following rules and regulations for the use of roadways, walkways, automobile parking areas, and other common facilities provided for the use of tenants and their customers, inviteesand employees are hereby established. 1. No person shall use any roadway or walkway except as a 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 manner, in accordance with the directional or other signs or guides. Roadways shall not be used for parking or stopping, except for the immediate 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 or the occupants of such vehicle are customers or business invitees of the retail establishments within the Shopping Center. All motor vehicles shall be parked in an orderly manner within the painted lines defining the individual parking places. During 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 connection with 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 vehicle 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 consent of Landlord, shall be in or on any part of the Common Area to: 20[3 lo~ Vb 231 (a) Vend, peddle or solicit orders for sale or distribution of any merchandise, device, service, 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, p.f.itrol, picket, demonstrate or engage in any conduct that might tend to interfere with or impede the use of any of the Cornmon Area by any Permittee, create a disturbance, attract attention or harass, annoy, disparage or be detrimental to the interest of any of the retail establishments within the Shopping Center. (f) Use any Common Area for any purpose when none of the retail establishments within the Shopping Center is open for business or employment. (g) Throw. discard or deposit any paper, glass or extraneous matter of any kind, except in designated receptacles, or create litter or hazards of any kind. (h) Use any sound-making device of any 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 material or other improvement within the Shopping Center, or .the property of customers. business invitees or employees situated within the Shopping Center. 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 access and convenience in shopping at the retail establishments in the Shopping Center is limited and controlled by Landlord. Landlord and any tenant shall have the right to remove or exclude from or to restrain (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 any unauthorized act, whether or not such party is not the agent of other parties or tenants of the Shopping Center, unless expressly authorized or directed to do so by such party or tenant in writing. 30f3 !D4tJZ~ EXHIBIT D FIRST RIGHT Parties This is an Addendum to the Real Property Lease between BERKELEY LAND COMPANY, -, INC. ("Lessor") and CHEF'S TOUCH CATERING ("Lessee") dated Oc&--/ /q?j'L, 1998, regarding the premises commonly known as 11851 Dublin Boulevard, Dublfu, California (the "Premises''), which isa part of the Dublin Square Shopping Center (the "Property'') owned by Lessor. Lessee intends to operate a delicatessen in the Premises subject to the terms of the Lease. PutPose Lessee is aware 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 selling 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 Lessee a First Right to Negotiate regarding a new lease if Lessor's future use of the Property is, in Lessor's opinion, appropriate fora delicatessen. Lessee's First Right to Negotiate 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 decision 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 lease 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. Procedure for Negotiations In the event Lessor determines that the rebuilt Property is appropriate for a delicatessen, Lessor shall send to Lessee a written notice requesting that lease negotiations commence. 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. Dated: Dated: 0&1- ./_ /'14r C(.AjNP,"''1IJeJ'/~ -+ (Yl ~-rh '0 .~~? ~T~ ~A$Z~ po_, tIts r::tcs1ck'a.!- Lessor: BERKELEY LAND CO., INC. By Its 1 of 1 ..... ..,. IV"-.. IID4b 1-3~ FIRST ADDENDUM to SHOPPING CENTER LEASE between BERKELEY LAND COMPANY, INC. and CHEF'S TOUCH CATERING . (;:-- mr5" 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 Property 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 ~^ ~g bnnn l'Ind exhaust system. Reimbursement is conditioned upon obtaining all applicable city and county permits, approvals, and certifications. - " /6tU AY-t:is. l./p g,rtt..C(//1 <7 W..r-l-vOtJ"Yn ~'.. ArVel 6 Y Ve- SVIr IPrc 1'" '7 .~.-f4 1<o,1ck- Roov' ~ 1- c:, Au- El.Xt I f'm..m- tv J/ r k .u...... , Cftt;fa roo, H tA 7P:r1 n b / ex~J+ ~ s v- fJnJ~Y oP ~ J:rtc(0tnc; ~ fhx;'b StA./~ to a/elL . , lofl ) [ I un 2.~( 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. ("Landlord") and Chefs Touch Catering (''Tenanf'). " PURPOSE This Second Amendment is made with reference to the following: A. Landlord and Tenant wish to have a definite termitlation date of the lease, change section 4.02 (b) of the lease and delete item # 4 of the First Addendum to the Lease. AGREEMENT Therefore it is agreed as follows: 1. Section 4.02 (b) of the lease shall 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 of the 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 of the Lease effective January 1, 2006 Dated:~006 Landlord: :;.t'eI"J~nd~ 11ll:~ Dated: f b-r ,2006 Tenant: Chefs Touch Catering 1 B~~ ..~ Its: ,oFe S/~ { . 1':'- .~ " 1/2- i1()2~( II I COwaMERCIAL LEASE AND DEPOSIT RECEIVED FROM City Ministries Intemational hereinafter referred to as LESSEE, The sum of $ 6.000.00 ( Six Thousand ..............................................__.................._...........******................* doUars), evidenced by Check . as a deposit which will belong to Lessor and will be applied as follows: $ $ $ BALANCE DUE PRIOR TO OCCUPANCY $ 3.000.00 $ 3.000.00 $ TOTAL RECEIVED Rent for the period from November 1. 2005 to November 30. 2005 $ 3,000.00 Security deposit (not applicable toward last month's rent) $ 3.000.00 Other $ TOTAL $ 6.000.00 $ $ 6.000.00 In the event this Lease is not accepted by the Lessor within.....1L- 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 Dremises I~ted 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 SeDtember 30. 2008. 2. RENT. The total rent will be $197.000.00. Rent for the 1st month will be free to the Lessee. Rent will be $ 3.000.00 per month for the zm through 4th month. Rent will be $3.500.00 per month for the 5th through 8th month, and will be $4.500.09 per month for the tjh through 1t" month. Beginning year 2, rent will be $6.000.00 per month. Beginning year 3, rent will be $7.000.00 per month. Rent will be payable em the 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. 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 -L days after due date, Lessee agrees to pay a late charge of $ ..mL-Plus interest at --1L % 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 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 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 will 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 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 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. 7. MAINTENANCE, REPAIRS, ALTERATIONS. 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, 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 received, normal wear and tear excepted. Lessee will be responsible for all repairS required, except the following which will be maintained by l.essor: roof, exterior walls, and structural foundations (including any retrofitting required by 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 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 liens. 8. ENTRY AND INSPECTION. Lessee will permit 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 sixty (60) 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 reasonable times. 9. INDEMNIFICATION OF LESSOR. Lessor will not be liable for any damage or injury to l.essee, 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 premises, and to indemnify Lessor for any expense incurred by Lessor in defending any such claims. 10. POSSESSION. If Lessor is unable to deliver possession of the premises aUhe 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 delivered. Lessee may terminate this Lease if possession is not delivered within ~ days of the commencement term in Item 1. 11. LESSEE'S INSURANCE. Lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee and l.essor with minimum coverage as follows: 1 Million 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 lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. 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 trade fixtures. 13. SUBROGATION. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and lessee waive any and all rights of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, ineluding water, gas, electricity, heat and other services delivered to the premises, except: ***********",*****III-*.***************************************rJrfr*********It***_***ir**********H************************************* . 15. SIGNS. Lessee will not place, maintain, nor permit any sign or awning on any exterior door, wall, or window of the premises withoutthe express written consent of Lessor, which will not be unreasonably withheld, and of appropriate govemmental authorities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the term of this Lease. If 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 deemed to be abandoned, at the option of Lessor. Page 1 of3 .~ .... -. ,. 11~"b231 Property Address 11825 Dublin Blva. _.Jblin. 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 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 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. 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 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 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 the premil::es. 21. 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, will constitute a breach of this Lease by Lessee. 22. DEFAULT. In the event of any breach of this Lease by Less~e, 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 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 terminate Lessee's right to possession, and Lessor may enforce all 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 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 will 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. 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 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 and Lessee arising out of this Lease, the prevailing party will be entitied to reasonable attorney fees. 26. WAIVER. No fail!lre 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 to l"essor 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 will be effective fIVe (5) days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 28. HOLDINC 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 $ 10.500.00 , payable in advance and otherwise subject to the terms of this Lease, as applicable, until either party will tenninate the tenancy by giving the 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. 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. INTENTIONALLY LEFT BLANK. 33. INTENTIONALLY LEFT BLANK. 34. AMERICANS WITH DISABILITIES 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 with a professional familiar with the requirements of the Act. 35. LESSOR'S LIABILITY. 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 grantee of such titie or interest will be substituted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that this 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 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 that there are 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 conclusively 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 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 [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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. Page 2 of 3 Property Address 11825 Dublin Blvd. Dublin. CA , ,... . " . /I r..f: "b "2,.3~ 37. GUARANTY. For valuable consideration, the undersigned Bob Johnson and Jacqueline Johnson ("Guarantor") unconditionally guarantees to Landlord all obligations of Tenant under the herein Lease including paymentand perforrnance of both monetary and no monetary obligations during the Original Tenn and all extended tenns and any holding-over period hereunder. The failure or revocation of this guaranty as to any guarantor whether by reason of death, bankruptcy or otherwise or failure to perfonn 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 tenns or obligations under this Lease, release or substitute or modify the obligations of any guarantor or any security for perfonnance 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 perfonnance. Guarantor waives to the fullest extent pennitted 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 waive any rights arising out of an election of remedies by Landlord. Guarantor waives rights to notices of any kind including demands for perfonnance, notices of protest 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 in default under this Lease have been paid. ~on fV.J{f''- 38. E:NTIRE AGREE:MENT. 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 she has thoroughly read and approved each of the provisionS contained in this Offer, and agrees to the terms and conditions specified. Lessee ~ Dateq...~6)r05::: Receipt for deposit acknowledged by """" C\'X""{, '~JU~i0'--- Dale Ii ~ dn -6-; V Date ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and agrees to Lease the premises on the terms and conditions set forth above. Lessor ~ Date 9h.(}hr .. , Lessee acknowledges receipt of a copy of the accepted Lease on (date) r~~~' Page 3 of 3 "t II 6 '1J23'1 " " . COMMERCIAL LEASE AND DEPOSI-r RECEIVED FROM The sum of $ 3.460.00 ( dollars), evidenced by Check All Video Reoair hereinafter referred to as LESSEE, Three Thousand Four Hundred SixtY *.frlr*************************1rlr************************************.H**********... , as a deposit which will belong to Lessor and will be applied as foUows: TOTAL RECEIVED BAlANCE DUE PRIOR TO OCCUPANCY Rent for the period from ~ to Aoril 30. 2006 $ 1.730.00 $ $ 1.730.00 Security deposit (not applicable toward last month's rent) $ 1.730.00 $ $ 1.730.00 Other $ $ $ TOTAL $ 3.460.00 $ $ 3.460.00 In the event this Lease is not accepted by the Lessor wlthin_1L- days, the total deposit received wilibe refunded. Lessee offers to Lease from Lessor the premises situated In the City of Dublin.. .' County of Alameda State of California. described as the oremises located at 11811 Dublin Blvd. Dublin. CA consisting of approximately 1.730 square feet, upon the follewlng tenns and conditions: 1. TERM. The tenn will commence on Aoril1.2oo6 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. All rents will be paid to Lessor or his or her authorized agent, at the following address 321 Hartz Ave. Suite 200. Danville. CA94526 or at such other places as may be ?esignated by Lessor from time to time. In the event rent is not paid within -3- days after due date, Lessee agrees to pay a late charge of $ ~Ius Interest at -.lL % per annum on the delinquentamounl Lessee further agrees to pay $ ~for each dishonored bank check. The late charge period is not a grace period, and Lessor is entiUed to make written demand for any rent If not paid when due. 3. USE. The premises are to be used for the operation of Reoair and.Sales Audio and Video Eauioment 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 pennitted to be made upon the premises, nor acts done, which will increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering the property. Lessee will not conduct or pennit 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 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. 7. MAINTENANCE, REPAIRS, ALTERATIONS. Unless otherwise indicated, Lessee acknowiedges 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, electrical wiring, plumbing and heating and air " conditioning installations, and any other system or equipment. The premises will be surrendered, at tennination 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 walls, and structural foundations Lessee 0 will, ~ 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 will give Lessor at least two (2) days written notice in order that Lessor may post appropriate notices to avoid any liability for liens. B. ENTRY AND INSPECTION. Lessee will pennit 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 pennit Lessor, at any time within sixty (60) 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 reasonable times. 9. INDEMNIFICATION OF LESSOR. .Lessor will not be liable for any damage or injury to Lessee. or any other persqn, or to any property, ocamlng on the premises. Lessee agrees to hold Lessor harmless from any daims 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. 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 delivered. Lessee may terminate this Lease if possession is not delivered within ..!L- days of the commencement term in Item 1. 11. LESSEE'S INSURANCE. Lessee, at his or her expense, will maintain plate glass, public liability, and property damage insurance insuring Lessee and 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) days written notice to Lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. Lessor will maintain hazard insurance covering one hundred percent (100%) actual cash value of the improvements throughout the Lease tenn. Lessor's insurance will not insure Lessee's personal property, Leasehold improvements, or trade fixtures. 13. SUBROGAnON. To the maximum extent pennitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat and other services delivered to the premises. except: *********************************************..."'.************.***********************************..***************************** . 15. SIGNS. Lessee will not place, maintain, nor pennit any sign or awning on any exterior door, wall, or window of the premises without the express written consent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 16. ABANDONMENT OF PREMISES. Lessee Will not vacate or abandon the premises at any time during the lenn of this Lease. If 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 deemed to be abandoned, at the option of Lessor. Page 1 013 -- i> 1!~J1b7Y7 ProPerty Address 11811 Dublin Blvd. D\lblin. 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, tenninate as of the date the condemnor acquires possession. Lessee will be required to pay such proportion of the rent for the remaining tenn as ~e 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 her option, tenninate 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 tenninate 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. 18. TRADE FIXTURES. Any and all Improvements made to the premises during the tenn will belong to the Lessor, except trade fixtures of the Lessee. Lessee may, upon tennination, 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 teon, from any cause except acts or omission of Lessee, Lessor will not promptly repair the premises. Such partial destruction wllltenninate 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 the premises. 21. 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, 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 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 unpiiid 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 perfonn 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 tenninate Lessee's right to possession, and Lessor may enforce all 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 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 will not be obligated to, apply all or portions of the 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 security deposit in payment of the last month's rent 24. DEPOSIT REFUNDS. The balance of all deposits win be refunded within three (3) weeks (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. 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 to reasonable attorney fees. 26. WAIVER. No failure of Lessor to enforce any tenn 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 althe 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 win be effective five (5) days after mailing, or on personal delivery, or when receipt is acknowiedged in writing. 28. HOLDINC 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 $ 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. HEIRS, ASSIGNS, SUCCESSORS. This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 31. TAX INCREASE. In the event there is any increase during any year of the tenn of this Lease in real estate taxes over and above the amount of such taxes assessed for the tax year during which the tenn 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 fora 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 tenn, 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) ("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 adjusbnent date, and the denominator of which Is the CPI for the second calendar month preceding the commencement of the Lease teon; provided, however, that the monthly rent will not be less than the amount set forth in lIem 2. 33. Intentionally Left Blank. 34. AMERICANS WITH DISABILITIES 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 with a professional familiar with the requirements of the Act. 35. LESSOR'S LIABILITY. 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 of 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 all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: [1] certifying that this 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 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 [21 acknowledging that there are not, to Lessee's knowiedge, any uncured 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 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] th;:tt 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 [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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. Page 2 013 l 1/1 "b '231 Property Address 11811 Dublin Blvd. D....olin. 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 he or she has thoroughly read and approved each of the provisions contained in this Offer, an grees to the terms and conditions specified. Lessee Date ;) -- /7~ lJ 0 Lessee Date Receipt for deposit acknowledged by Date ACCEPTANCE r accepts the foregoing Offer ~!ld agrees to Lease the premises on the terms and conditions set forth above. Lessor Date "2;/'7/66 Lessee acknowledges receipt of a copy of the accepted Lease on (date) L--.J L--.J (Initials) Page3of3 '" . , . , ll<is Db 2-3; DUBLIN SQUARE LEASE William L. Barnett dba: ALL VIDEO REPAIR 11831 Dublin Blvd. Dublin. CA 94566 INDEX TO LEASE I. Page 1 1 1 2 2 3 3 3 4 5 6 6 1. Parties 2. Premises 3. Lease Term 4. Rent 5. Security Deposit 6. Use and Prohibited Uses 7. Signs 8. Business Hours 9. Parking and Common Areas 10. Name 11. Alterations 12. Maintenance and Repairs 13. Compliance ~ith Government Regulations Land Use Permit. etc. 14. Entry by LESSOR 15. Damage or Destruction of Premises 16. Assignment and Subletting 17. Insolvency or Bankruptcy 18. Remedies for Breach 19. Attorney's Fees 20. Surrender of Lease 21. Holding Over 22. Surrender of Premises on Expiration of Term 23. Insurance 24. Indemnification 25. Utilities 26. Taxes 27. Exclusivity and Other Tenants 28. Subordination 29. Transfer or Reversion 30. Rules and Regulations 31. Time is of the Essence 32. No Joint Venture or Partnership 33. Notices 34. Waiver of Breach 35. Captions 36. Successors and ASSigns 37. Interpretation 38. Invalidity of Particular Provision 39. Governing Law 7 8 8 10 10 10 12 13 13 13 13 15 15 15 16 16 16 17 17 17 18 18 18 18 19 19 19 ~ ll<q av"?-3Q DUBLIN SQUARE LEASE William L. Barnett dba: ALL VIDEO REPAIR 11831 Dublin Blvd. Dublin. CA 94566 f~ 1. PartieE{ This lease is made this 29th day of January. 1996. by and between BERKELEY LAND CO.. INC.. herein called "LESSOR". and William L. Barnett. herein 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 1600 net sguare feet located at the Dublin Sguare. The street address is Lt.831 Dublin Blvd.. Dublin. California ("the leased premises") 3. Lease Term A. Co~mencement. February 1. 1996. This lease renewal term shall commence on B. Initial Term. The intial term shall be for a period of five (5)years. or January 31. 2001. C. Option. In addition to the initial term. LESSEE shall have one (1) option to extend the lease for an additional consecutive term of five (5) years. D. Exercise of Ontion. 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 (180) days before the termination of the existing lease term. If the option i6 ~x~r~is~d, th~ l~~s~ sh~ll ~ontinue upon all of the same terms and ~~fidi~i~nsl ~x~~p~ z~r ~h~ rent, whidh ahall b~ aet forth below. 1'20 '1)231 4:. Rent A. Monthly Rent. The initial base monthly rent shall be: 1st Year $ 800.00 per month 2nd Year $ 880.00 Jllftl1 3rd Year $ 960.00 4th Year $1.040.00 5th Year $1.120.00 first month's rent payment for February. 1996. shall be execution of this Lease. . " The due upon 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 ten (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. Option Period Rent. In the event the LESSEE exercises the option referred to in 3e. 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 result in a, rental decrease. The rental ad.iustment shall be accomplished by the mutual written agreement of the parties. if possible. If the parties and their legal representatives cannot reach 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) wri tten appraisals 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 0/2) by each party. 5. Security Deposit On the initial Lease. the LESSEE deposited with LESSOR the sum of $800.00. On this Lease Renewal. this deposit shall remain in effect without 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 1'2 I 0023>~ 6. Use and Prohibited Uses The leased premises shall be used solely for repair and sales of audio arid 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 L.ESSEE 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. SiErns , The LESSEE has already installed an exterior outdoor sign that matches the specifications of the other Dublin Sguaretenants. 8. Business Hours 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. 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 12~1f3" 9. Parkina' and Common Areas A. Definitions 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 ma'y 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 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 Exhibit "B". and the LESSOR reserves 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 eliminate or add any improvements or 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. 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 business 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 r s employees. agents. 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 resrved to LESSOR. No parking fees shall be established and no meters shall be used. 4 1131)234 B. Parkin2 ~~~a 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 nece.s.sary 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. with reasonable provisions for landscaping", access and other accommodation areas. C. Lessee's Parkin2 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 Parkin2 & Common Area Expense During this Lease. the LESSEE shall pay its pro rata 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 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. 5 12...tt1b23{ 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 tradeflxtures. 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 Mechanic's Liens 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 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 therein. 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 1193.l(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 LESSOR within 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 paid rent due in that sum. 12, Maintenance and Repairs A. LESSEE's Direct Maintenance and Repairs LESSEE shall at its o~n cost. keep, repair. 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 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 6 I '2 5~ L1b """2..."3<J 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 ReQ;u:tations. Land Use Permit. .etc. LESSEE shall. at its sole cost 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 reg\.l.lations 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 bea 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 ordinance. statute. rule or regulation. 7 /2u 0(13; 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-liability for alterationt=;. additions or repairs or for the purpose of placing upon the' leased premises any usual or ordinary "For Sale" signs. or for t,he 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 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 (90) 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 exhibiting the premises to any prospective tenant. Such entry shall not interfere with normal business operations. 15. Damage or Destruction of 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 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 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 premises. or if 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 8 l'21tf{f~ar repair or restoration. the LESSOR shall give written notice to the LESSEE wi thin ninety (90) days after the occurrence of such destruction or LESSOR's election either: (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 premises which was originally constructed or added bv LESSOR and shall not involve the repair or restoration of any fixtures or alterations installed bv 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 (30%) of the total square footage of the improvements erected upon the leased premises are destroyed 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. they shall each select an arbitrator. and the two arbi trator.s 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 I 2 '6- ifb2~4 16. AS6i~nment and 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 bv any other person shall 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 be deemed an assignment. requiring LESSOR"s prior written 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 sublettin~. 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. Insolvencv or Bankruptcv 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 entity guaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 18. Remedies For Breach In the event of any breach of this Lease. or any covenant. condition or provision hereof by LESSEE which continues after LESSOR has given 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 10 l2q~z.,~, 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 such property and storing the same in a public warehouse or elsewhere at the cost of and for the account of LESSEE. If, 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 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 right to make alterations and repairs to said premises. Upon each such relet~ing. 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 alterations 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 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 percenta~e rent due from and unpaid bvLESSEE hereunder. The 11 13{)Uf)2~1 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 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'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 of which amount shall be i~mediately due and payable from LESSEE to LESSOR. Any entry by LESSOR pursuant to the provisions of this Lease shall be aJ,lowed 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 required by this Lease shall be ten (10) days if the breach consists of the failure to pay monev. and thirty (30) days if 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 or provisions of this Lease. including actions for unlawful detainer or an action fo.r 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 attorney's fees. 12 1310C;UCi 20. Surrender of tease 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 existin~ subleases or subtenancies. or may. at the option of LESSOR. operate as an assi~nment 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. Holding Over 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. 22. Surrender of Premises on Expiration of Term On the last day, or sooner termination of the lease term. LESSEE shall quit and surrender the premises. broom-clean. in good conditiion and repair (reasonable ~ear and tear and damage by acts of God excepted). to.Q:ether with 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. Specifically. all built-in cabinets. counters. desks and shelves shall remain and become the property of,LESSOR. 23. Insurance 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. 13 I 32. rIb 2--17'1 LESSOR reserves the ri~ht to increase the required amount of nublic 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. 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 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. Certificate of Insurance 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. (' 'J. Fire Ij:lsurance 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 renlacement 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 on LESSEE's property located on the Property. D. Worker's Compensation Wi th regard to any Worker's Compnsation insurance carried bv LESSEE. the LESSEE agrees that it shall waive the right of subrogation against the LESSOR (or its employees. assignees or agents). and such insurance shall provide for such waiyer of subrogation. 14 /33fJ 2~~ E. Waiver ofSuQ~ogation With 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 em~loYees. 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. Utilities 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. 26. T~ A. Personal Property Taxes 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 ProPerty Taxes--Lessee'6 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 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 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 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 15 )~~ {,~1 LESSOR within fifteen ( 15) days after LESSOR 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. 27. Exclusi~itv and Other Tenants LESSOR agrees that during the time this Lease is in force. LESSOR will not lease otper 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 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 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 (10) 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 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. it being 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 Shopping Center. 29. Transfer or Reversion 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 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 given by LESSEE to secure the faithful performance of all or any of the covenants of this Lease on the part of LESSEE. LESSOR may transfer 16 I~S-"b-Z~ and/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 with reference thereto. 30. Rules and Reaulations 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. Ti~e 1S of the essence Time is of the essence of this agreement and each and everY part thereof. 32. No Joint Venture or Partnership Nothing herein shall be construed as. nor shall this Lease create a joint venture or partnership by and between LESSOR and LESSEE. 17 13~ r1b Z34 33. Notices 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 To the LESSEE: William L. Barnett 11831 Dublin Blvd. Dublin. CA 94568 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 ri~ht to terminate this Lease on account of such default. nor shall anv waiver or indUlgence granted by the LESSOR be taken as an estoppel against the LESSOR.. 35. Captions 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. 36. Successors and Assigns 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. 18 1~1<<6 2~ 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. Invaliditv of ~artiGqlar Provision 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 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. 39. Governing La~ 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: BERKELEY LAND COMPANY. INC. By: Frank Sabatte William L. Barnett dba, A~.o. REPAIR f(5;. 0. By: ~ :t:- /' William L. Barnett ' Dated: Dated: 2- ~ g - 7'6 Its: President Its: Tenant 19 --- ,r"'"' . ! ~<g'Vz~( June 28, 2005 All Video Repair 11831 Dublin Blvd. Dublin, Ca. 94568 Mike Mikulich Berkeley Land 321 Hartz ave. Danville, Ca. 94526 " Hi Mike, The enclosed check for $750 will pay for the month of July, for the back warehouse we are renting from your company. I have enclosed receipts for the improvements we have done to the building. I am proposing this will offset the rent we have not paid foJ;' the last three months, for the warehouse. Going forward, this amount will cover the entire rent for the warehouse, on a month to month basis. Please let me know if this meets with your approval. You can reach me on My cell phone, 925-872-4200. Thank you, f)j;; ~~- -- Bill Barnett {t 760- suo -- .~ fM'~~' fo ~~ -? I oj 13~ Z?1 Berkeley Land Company Attn: Mike 1211 Newell Ave Walnut Creek, CA 94596 All Video Repair 11831 Dublin Blvd Dublin, CA 94568 March 28, 2001 " Dear Mike, We will be vacating the building Apri130fu, 2001. This letter serves as our thirty (30) day notice. Our new location will be 7429 Amador Valley Blvd. Our opening date will be April 16lh. We have enjoyed the US~ of the building and thank you for your cooperation. I do have a proposal. I would like to keep renting the building until you find another tenant or the building is tom down. I would be willing to pay a reduced rent of$500.00 per month on a month-to..month basis. We would be using the building as an extra location until we were asked to leave. Given written notice, we could vacate the property anytime, within fifteen (15) days. Please call me Monday, April 2nd and let me know. I can be reached on my cell phone at (925) 872-4200. If you decide not to accept my offer, we will vacate the property by April30fu, 2000. SinJ:ereJy,~ Bill Barnett Owner BB/de f t '-ton 234 COMMERCIAL LEASE AND DEPOSIt' RECEIVED FROM A BEl'"q:~ RESTORATION. INC. The sum of$ N1A ( N/A belong to Lessor and will be applied as follows: hereinafter referred to as LESSEE, dollars), evidenced by N/A . as a deposit which will Rent for the period from to Security deposit (not applicable toward last month's rent) Other TOTAl RECEIVED BALANCE DUE PRIOR TO OCCUPANCY $ $ $ $ $ $ $ $ $ $ $ $ TOTAL 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 Califomia, described as the Dremlses located at 11845 Dublin Blvd. Dublin. CA consisting of approximately 600 square feet, upon the following terms and conditions: 1. TERM. The tenn will commence on November 1. 2005 and end on October 31. 2008. 2. RENT. The total rent will be $24.000.00. Rent will be $ 600.00 per month from November 1, 2005 to October 31, 2006. Rent will be ~ 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 On the 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~ 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 ....L days after due date, Lessee agrees to pay a late charge of $ ~Ius interest at --..JL% per annum on the delinquent amount Lessee further agrees to pay $ --1.lL..-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 Offk;e 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 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 will Increase the existing rate of insurance upon the property, or cause cancellation of insurance policies covering the property. Lessee will not conduct or pennlt 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 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. 7. MAINTENANCE, REPAIRS, ALTERATIONS. 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, including plate glass, electrical wiring, plumbing and heating and air conditioning installations, and any other system or equipment The premises will be surrendered. at tennination of the lease, in as good condition as received, nonnal 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 their share of the taxes. 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 liens. 8. ENTRY AND INSPECTION. Lessee will penn it 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 pennlt Lessor, at any time within sixty (60) days prior to the expiration of this Lease, to place upon the premises any usual "For Lease" signs, and pennit persons desiring to Lease the premises to inspect the premises at reasonable times. 9. INDEMNfFICATION OF LESSOR. Lessor will not 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 .hannless 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. 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 delivered. Lessee may terminate this Lease if possession is not delivered within ...Q..... days of the commencement tenn in Item 1. 11. LESSEE'S INSURANCE. lessee. at his or her expense, will maintain plate glass, public liabUity, and property damage Insurance insuring Lessee and 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 Lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. Lessor will maintain hazard insurance covering one hundred percent (100%) actual cash value of the Improvements throughout the Lease tenn. Lessor's insurance will not insure Lessee's personal property, leasehold Improvements, or trade fixtures. 13. SUBROGATION. To the maximum extent pennitted by Insurance pOlicies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water. gas, electricity. heat and other services delivered to the premises t except *********************..***********************************************************"*****,*~****fMl**.**,**,**.***********.*****.*** . 15. SIGNS. Lessee will not place, maintain, nor pennit any sign or awning on any exterior door, wall, or window of the premises without the express written consent of Lessor, which will not be unreasonably withheld, and of appropriate govemmental authorities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the tenn of this Lease. If 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 deemed to be abandoned, at the option of Lessor. f{. Page 1 of 3 f 1'-f/~'2~4 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 Lease will. as to the part taken. tenninate as of the date the condemnor acquires possession. Lessee will be required to pay such proportion of the rent for the remaining tenn 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 her option. tennlnate this Lease as of the date the condemnor acquires possession. In the event that the premises are condemned in whole, or the rernalnder is not susceptible for use by the Lessee. this Lease will tenninate 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 lJITIount 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 tenn will belong to the Lessor. except trade fixtures of the Lessee. Lessee may. upon tennlnation. 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. DESTRUCnoN OF PREMISES. In the event of a partial destruction of the premises during the tenn. from any cause except acts or omission of Lessee, Lessor will not promptly repair the premises. Such partial destruction will tennlnate 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 ,my toxic contamination caused by Lessee's use of the premises. 21. I~SOL VENCY. The appointment of a receiver, an asslgnm~nt for the benefits of creditors. or the filing 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 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 tennination; (b) the worth at the time of award of the amount by which the unpaid rent which would have been eamed after tennination 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 tenn 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 perfonn 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 altemative, continue this Lease in effect, as long as Lessor does not tenninate Lessee's right to possession. and Lessor may enforce all 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 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 will not be obligated to. apply all or portions of the deposit on account of Lessee's obligations. Any balance remaining upon tenninatlon will be retumed 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 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. 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 to reasonable attorney fees. 26. WAIVER. No failure of Lessor to enforce any tenn of this Lease will be deemed to be a waiver. 2,7. 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, or to Lessor at the address shown in Item 2, or at such other places as may be designated In wrltIngby the parties from time to time. Notice will be effective five (5) days after mailing, or on personal delivery. or when receipt is acknOWledged In writing. 28. HOLDINC OVER. Any holding over after the expiration of this Lease. with the consent of Owner, will be a month-ta-month tenancy at a monthly .rent of $ 900.00 . payable in advance and otherwise subject to the tenns of this Lease. as applicable, until either party will tenninate the tenancy by giving the 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. TAX. Lessee will pay to Lessor an amount equal to ~ of the taxe.s 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 tenn of the Lease, the obligation of Lessee will be prorated. 32. INTENTIONALLY LEFT BLANK. 33. AMERICANS WITH DISABILITIES 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 with a professional familiar with the requirements of the Act. 34. LESSOR'S LIABILITY. In the event of a transfer of Lessor's title or interest to the property during the tenn of this Lease. Lessee agrees that the grantee of such titie or interest will be substituted as the Lessor under this Lease, and the original Lessor will be released of all further liability: provided, that all deposits will be transferred to the grantee. 35. ESTOPPEL CERTIFICATE. (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge. and deliver to Lessor a statement In writing: (1] certifying that this 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 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 that there are 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 conclusively 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 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 (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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. ~. Page 2 of3 I ILl2~ 1,.31 I Property Address 11845 Dublin Blvd. Dublin. CA 36. 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 he or she has thoroughly read and approved each of the provisions contained in this Offer, and agrees to the rms and conditions specified. Date I/-- 2-2 -0 ~ Lessee , Date Lessee Receipt for deposit acknowledged by Date " ACCEPTANCE The undel'slgned LesSOI' accepts the foregoing Offel' and agrees to l.ease the premises on the terms and conditions set fol1:h above. . Lessor ~~ I Date J,k,Jr Lessee acknowledges receipt of a copy of the accepted Lease on (date) L--J L--J (initials) Page 3 of3 ~ 1> ~ /Y-"3'b 2~ NCR (No C~rboo Required) COMMERCIAL LEASE AND DEPOSIT RECEIPT RECEIVED FROM ULTIMATE HOME SOLUTIONS the sum of $ 1,209.59 (One thousand two evidenced by r.hpl"'k , " , , hereinafter r~ferred to as LESSEE, hundred' nine and 59/100 **************~******* 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 $ $ 1,039.73 Rentfortheperiodfrom 6/10/02 to 7/1/02 Security deposit (not applicable toward last month's rent) Other ..................................................... TOTAL.... ......... .'... .., '" ........ .......... .... ....... In the event this ~ease is not accepted by the Lessor within 5 days4, the total deposit received will be refunded. L?ssee offers to lease from Lessor the premises situated in the City of lJublin. , County of Alameda , Stateof r.Rl;fnrniR,desrribltdas TJ,qrphnllSl> RpRl"'P hphinrt TnJ1r-.if'Y r.hllrl"'h - n"hl;n Sl10pping Ct>nter*fc consisting of approximately ,4::>6 square feet, upon the following terms and conditions: 1. TERM. The term will commence pn ,June 17th~ 2002 and.GAd..QA Continue Month-to-~onth ,_. 2. RENT. The total rent will be $ ,Nj A, , ,payable ~t~. 00 , , , per month (based on first year's rates) payable on the Firs t day of each month. All rents will be paid to Lessor or his or her authoriled agent, at the following address 1211 Newell Avenue. Suite 116 Walnut Creek, CA 94596 " or at such other places as may be designated b.y.OLe.{l~or from.time to time. In the event rent is not paid w~thin , 5 days after du~ date, Lessee agrees to QaV. a late charge of $ 5 . UU plus Interest at ' 8 % per annum on the delinquent amount. Lessee fur" ther agrees to pay $ ,2::>.00 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 premisesaretobe used for the operation of Storage of Furn~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. 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 will 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. ASSIONMENT AND SUBLETTINO. Lessee will not assign this Lease or sublet any portion of the premises without prior written con- sent 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 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 co urt 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 repair. Lessee will, at his or her own expense, maintain the premises in a good and safe condition, including plate glass, electri- cal wiring, plumbing and heating and air conditioning installations, and any other system or equipment. The premises will be sur. rendered, 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 foilowing which will be maintained by Lessor: roof, exterior walls, structural foundations (includ- ing any retrofittinM~uired by governmental authorities) and: , . ' , . Lessee c=J will, . 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 com- mencement of any substantial repair, improvement, or alteration, Lessee will give Lessor at least two (21 days written notice in order that Lessor may post appropriate notices to avoid any liabiliW- for liens. ' 8. ENTRY AND INSPECTION. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon reason- able notice for the purpose of inspecting the premises, and will permit Lessor, at any time within sixty (50) days prior to the expira,- tion of this Lease. t!> place upon the premises any usual "For Lease" signs, and permit 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 proper. ty, occurring on the 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. . 'fO~ POSSESSION. If Lessor is unable to deliver possession of the premises at the commencement date set forth above, Lessor will not be liabl~ fo: any .damage caused by the d.elay, n~r will thi.s Lease b~ vo!d or voi~able, bu! L:sse1<fill not be liable for any rent until pos- session IS delivered. Lessee may term mate thiS Lease If possessIOn IS not delivered wlthm days ofthe commencement term in Item 1. 11. LESSEE'SINSURA.NCE. Lessee, at his or her expense, will maintain pl'ilte gjass, ~l.I.blic liRbilityh9-Rd property damage insurance insur- ing Lessee and Lessor with minimum coverage as follows: One m~:LI~on l ~ I, DuO , UVU) , , . Lessee will provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The policy will require ten (10) day's written noti ce to Lessor prior to cancellation or material change of coverage. , 12, LESSOR'S INSURANCE., lessor wil.l maintain h,azard insurance covering one hundred pert;:ent (100%) actual cash value of the improyements throughout the Lease term. Lessor's insurance will not insure Lessee's personal property, leasehold improvements, or trade fixtures. ** See Attached Exhibit "A" of Premises. CAUTION: The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning or computerized formats. ' Page 1 of3 FORM 107.1 (7 -97) COPYRIGHT ~ 1993-97 av PROFESSIONAL PUBLIsHiNG, 880 LAS 6AlUNAS AVE.. SAN RAFAEL CA 91$13 (41514n-1964 FAX (4151 472-206!l ItllI PROFESSIONAl. mpUBLISHING .. " I t.f4~"2 ~1 NCR (No Carbon Required) Property Address 13. SUBROCATION. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. " 14. UTILITIES. Lessee agrees that he or she will be responsible for the payment of all utilities, including water, gas, electricity, heat /;Ind other services delivered to the premises, except: Nl A . .... . . . . 15. 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 written co:nsent of Lessor, which will not be unreasonably withheld, and of appropriate governmel'ltal authorities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the term oi 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.emed 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 which is susceptible of occupation by Lessee, this Lease will, as to the.parttaken, 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 the value of the premises remaining bears to the tota I value of the premis- es at the date of condemnation; prpvided, 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, or the remainder is not susceptible for use by the Lessee, this Lease ~i11 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 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, 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. DESTRUCTIO" OF PREMISES. In the evel:\b<fa partial destruction of the premises during thl:! term, from any cause except acts or omission of Lessee, Lessor will~, repair the premises..~~~ffj8) ~~~kPu:mt~~~~~W<<ltts: . It: ~~~aGeJdX!fJE~:mw.lQic:mtbmc~.Y>f~ps:a4~~lUltIli~~ JQlI\XImJl~~U~~~~~~~ ~tt~~:QitIIfi~~PJtliJ{IO"R'~" . 20. HAZARDOUS MATERIALS. Lessee will not us'e; 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 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 premises. . 21. INSOLVENCY. The appointment of a receiver, an assignment for the benefits of creditors, or the filil1g 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 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 awar.d ofthe 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 i'lmount of such rental loss that the Lesseeproves could be reasonably avoided; and (d) any other amount necessary 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 result therefrom. Lessor may, in the alternative, continue this Lease in effect, as long as Lessor does not terminate Less~e's right to possession, and Lessor may enforce all of Lessor's ~ights 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 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 will not be obligated to, apply all or portions of the deposit on account of Lessee's obligations. Any balanc~ 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 (31 weeks (or as otherwise required by lawl, 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. ATTORNEY FEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevail- ing party will be entitled to reasonable attorney fees. 26. 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, 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 will be effective five (5) days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 28. HOLDING OVER. An7~Q)d~8 over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent of $ . :8. , payable in advance and otherwise subject to the terms of this Lease, as applicablEl", until either party will terminate the tenancy by giving the other party thirty (30) days written notice. 29. TIME. lime is of the essence of th is Lease. 30. HEIRS, ASSIGNS, SUCCESSORS. 31. TAX INCREASE. .~ ~~ ~ CAUTION: The copyright laws of the United States forbid the unauthorized reproduction of this form bV any, means including scanning or computerized formats, . Page20f3 FORM' 01.2 (7-97) COPYRIGHT jf;) 1993--97 BY PROFESSIONAL PUBLISHING. B80LAS GALlINAS AVE,. SAN RAFAEl, eA 94903 (41514n.l964 FAXI415l472'2069 IDiI PROFESSIONAL m PURL.SHINe ~ ( t5iJb Z ~ C) NCR (No Carhon Required) Property Apdress 32. COST OF LIVING INCREASE. The rent provided for in Item 2 will be adjusted effective upon the first day ofthe month immediately fol- lowing the expiration of12 months from date of commencement of the term, and upon the expiration of each 12 months thereafter, iri accordance with changes in the U.S. 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 denominator of which is the Cpl for .the second cal- endar month preceding the coml)1encement of the Lease term; provided, however, that the monthly rent will not be less than the amount set forth in Item 2. ' 55. ~~M~~lRmU{~XXXXX~N~~~~ . . ~. 34. AMERICANS WITH DISABILITIES ACT. '''he parties are alerted to the existence of the Americans With Disabilities Act, which may require costly structural modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. . 35. LESSOR'S LIABILITY. 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 of such title or interest will be susb~tituted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE. . . (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, ac~nowledge, and deliver to Lessor a statement in writ- in'g: [1] certifying that this 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 moqified, 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 th(!t there are 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 conclusively 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 thi:;; Lease or will be conclusive upon Lessee: [1] that 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 pertormance; 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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or bUYer. All financial state- ments will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. 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 exhibits are a part of this Lease: Exhibit A: I.ea~~d Premises Exhibit B: . Exhibit C: The undersigned Lessee acknowledges that he or she has thoroughly read and approved each of the provisions contained in this Offer, and ,agrf!es to e s and conditions specified. . . Date ~t,fiz Lessee ~ Date 02.-/0<""-- , Date L ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and ,,:gre~to lease the premises on the terms a~d conditions set forth above. TICE: The ~mollnt or rate of real e ate commissions is not fixed by law. They are s ally and may between broker. Date Lessee acknowledges receipt of a copy ofthe accepted Lease on (date) [-f [_I linitialsl CAUTION: The copyright !;<jwsof the United States forbid the unauthori~ed reproduction of this form by any means including scanning or computerized! formats. . Page 3 of 3 FORM 107.3 (7.97) C{)PYRIGHH:n993-97 BY PROFESSIONAL PUBLISHING, 880 LAS GAlUNAS AV~. SAN RAfAEL. CA 94903 (4151472,1964 FAX [415) 472.20&9 jRev. by Date I mPROFE5510NAL' mpUBLI5HING 0 63 ...... r ~ Vl Z i W f q ....... 0\ ! / U) r.n . ~ /:) ! ~ f , j ! ! / ~ 'J' '~ - " EXHIBIT' A II f, 98"-0' 1 L}u, ~ Z31' " I '-! I Q{) 23( , FIRST AMENDMENT TO COMMERCIAL LEASE AND DEPOSIT RECEIPT Parties This First Amendment to Commercial Lease and Deposit Receipt is entered into between ANDREW HUNTER, doing business as ULTIMATE HOME SOLUTIONS ('Lessee") and BERKELEY LAND CO., INC., a California 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 feet of storage space (the "Current Space") (a description of which is set forth on Exhibit A, attached hereto) located behind the Journey Church in the Dublin Shopping Center owned by Lessor, a copy of which Lease is attached hereto as Exhibit B (the "Lease'). B. Under the 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 Current Space and occupy instead an adjoining storage space consisting of 5,042 square feet (the "New Space") (a description of which is set forth on Exhibit C, attached hereto) on all the same terms and conditions set forth in the Lease, with the exception ofrent, as set forth below. Agreement Therefore, it is AGREED AS FOLLOWS: 1. Recitals Are True: The recitals set forth above are true and correct. 2. Current Space to be Vacated: On or before September 15, 2002, Lessee shall vacate the Current Space, which Current Space shall be left in a broom-clean condition. 3. Occupation of New Space: Commencing on September 15, 2002, Lessee shall occupy and be the tenant ofthe New Space. 1 ILf~ ~~3~ 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 $2,521.00, set forth above. 5. All Other Terms Lease Unchanged: All other terms and conditions of the Lease remain unchanged and in effect. BERKELEY LAND CO., INC., a California corporation Dated: {J cl .s , ,2002 By: Its: VW\~~ Dated: /0 - :J ,2002 By: ~/~ ANDREW · ER, individually and doing business as ULTIMATE HOME SOLUTIONS 2 NCA (No C"arb.on Required! (' ~;15/;- k' (-- COMMERCIAL LEASE AND DEPOSIT RECEIPT t Lt~ 00 2.3 ~ . , I , . RECEIVED FROM ULTIMATE HOME SOLUTIONS thesumof$ 1,209.59 (One thousand two evidenced by r.hpl'k . , . , hereinafter referred to as LESSEE, hundred' nine and 59/100 ******"**************** dollars), , as a deposit which will belong to Lessor and will beappHed as follows: , . TOTAL RECEIVEOSALANCE DUE PRIOR TO OCCUPANCY Rent for the period from 6/10/02 to 7/1/02 $ 339.73 $ $ 339.73 $ 700.00 $ ----- $ 700.,00 Security deposit (not applicable toward last month's rent) Other ................................................................ $ .~"":"_~____ $ $ ________ TOTAL ............,....................................... $ 1,039.73 $, $ 1,039.73 In the event this ~ease is not accepted by the Lessor 1(Irithin 5 , davs~ the tqtal deposit received Will be refunded. L~ssee offers to lease from Lessor the premises situated in the City Of uub l1n ., County of Alameda , Stateof r.Alif'nTniA,desfribedas WflTphnl1"'p "p::ll'P 'hphinrl Tnl1r""'y r.h,.r...h - nl1'hlin SpQpping C~nt~:r::*f' consisting of approximately .456 square feet, upon the following terms and conditions: 1. TERM. The term will commen~e pn June 17th', 2002 aad.QAd../m Continue Month-to-Month ,_ 2. RpNT. The total rent will be $ Nt A ,paY-able at $ 72.8. 0 . per month (based on first year's rates) payable on the Fl.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. Suite 116 Wa1nuf" Creek, CA. 94596 .. . '... , or at such other places as may be designated b.~oLedBor from .time to time. Inathe event rent is not paid w~hin 5 days after due date, Lessee agrees to Q,ay:a late charge of $ 5. plus Interest at ' % per annum on the delinquent amount. Lessee fur~ tfier agrees to pay $ ,2.5.00 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 Storage of Furn1 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., , 4. USES PROHIBITED. I.,essee 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 willinc;rease 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 written con- sent of the Lessor, wh.ich 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 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 co urt abatement proceeding affecting the use of the premises will, at the option of the Lessor, be deemed a breach of th~~~a , . 7. MAINTENANCE. REPAIRS, ALTERATIONS. 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, including plate glass, electri- cal wiring, plumbing and heating and air conditioning installations, and any other system or equipment. The premises will be sur- rendered, 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' foilowing which will be maintained by Lessor: roof, exterior walls, structural foundations (includ- ing any retrofittinM{uired by governmental authorities) and: , Lessee c=J will, 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 com- mencement 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 Iiabili!y for liens. ' , 8. ENTRY AND INSPECTION. Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon reason- able notice for tl:1e purpose of inspecting the premises, and will permit Lessor, at any time within sixty (601 days prior to the expira~ tion of this Lease, t? place upon the premises any usual "For Lease"signs, and permit 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 orinjury to Lessee, or any other person, orto any proper- ty, occurring on the premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to i nd,emnity Lessor for any expense ,incurred by Lessor in defending any such claims. 1b~ POSSESSION. If Lessor is unable to deliver possession of the premises at the commencement date set forth above, Lessor wi II not be liable for any damage caused by the delay, nor will this Lease be void or voidable, but Lesse1cfill not be liable for any rent until pos- session is delivered. Lessee may terminate this Lease if possession is not delivered within days of the commencementterm in Item 1. 11. LESSEE'S INSURANCE. Lessee, at his or her expense, will maintain plate gJass, Rl.I.bJic liSlbililllOmd property damage insurance insur- ing Lessee and Lessor with minimum coverag,e as follows: One milIl.on ( q> 1. DuO, UI IV) . Lessee will provide Lessor with a Certificate of Insurance showing Lessor as additional insured. The policy will require ten (10) day's written noti ce to Lessor prior to cancellation or material change of coverage. 12. LESSOR'S INSURANCE. Lessor wiU maintain h,azard insurance covering one hundred percent (100%) actual cash value of the improyements throughout the Lease term. Lessor's insurance will not insure Lessee's personal property, leasehold improvements, or trade fixtures. ' ** See Attached Exhibit "A" of Premises. CAUTION: The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning or computerized formats. ' Page 1 of 3 FORM 107.1 !7 -97) COPYRIGHT@ 1993-91BV PROFESSIONAL PUBLISHING. 880 LAS GAlllNAS AVE.. SAN RAFAB.. CA 9ol91l3 1415) 472.1964 FAX 14151472-2069 mp~OFESSIOl\lAL m PUBLlSHINC, (, NCA (No Carbon Requfred) Property Address 13. SUBROOATION. To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. " , 14. UTIUTlES. Lessee agrees that he or she will be responsible for the payment of aU utilities, including water, gas, electricity, heat and other services delivered to the premises, except: NI A 15. SIGNS. Lessee will ,not 'place, maintain, nor permit any signor awning on any exterior door, wall, or window of "the premises without the express written cQnsent of Lessor, which will not be unreasonably withheld, and of appropriate governmental authorities. 16. ABANDONMENT OF PREMISES. Lessee will not vacate or abandon the premises at any time during the term 01 thls,Lease. If Lessee does abandon or vacate the premises, or is dispossessed by process of law, ot otherwise, any personal property belonging to Lessee left on the premises will be de,emed 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 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 asthe value of the premises remaining bears to the tota I value of the premis- es at the date of condemnation; provided, however, that either party may, at his or her option, terminate this Lease as ohhe date the condemnor acquires possession. In the event that the premises are condem ned 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 L~ssor; 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, remo(;e 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. DESTRUCTIOJ\! OF PREMISES. In the eveab'l! a partial destruction of the premIses during the term, from any cause except acts or omission of Lessee, Lessor will ~ repair the premises..~~~D1I~) ~~~~~~M1t fC ~~Jb:e~xqDll!I!t~wmd\l:l!:~!'lC!fIlrillmpraUflltlllm~~~ XQQ:l!:bmqneml~lt~~~ . . ~~ ~~~~~~~, , 20. HAZARDOUS MATERIALS. Lessee will not us'e, store, or dispose of any ha~ardous 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 substanc;es 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 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. , 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;.lb) 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 a mount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to com"pensate 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 ordinai)f 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 Lessfile's right to possession, and Lessor may enforce all of Lessor's (ights 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 terminate the Le<ase. 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 will not be obligated to, apply all or portions of the deposit on account of Lessee's obligations. Any bafancfil 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 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. ATTORNEY FEES. In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevail- ing party will be entitled to reasonable attorney rees. 26. WAIVER. No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 27. NOTICES. Any notice which ei\her party mayor is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the 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 will be effective five (51 days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 28. HOLDING OVER. An'LhQ,ldiJ:1Q over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent of S/2~. UO , payable in advance and otherwise subject to the terms of this Lease, as applicabl~, until either party will terminate the tenancy by giving the other party thirty (301 days written notice. 29. TIME. Time is of the essence of this Lease. 30. HEIRS, ASSIGNS, SUCCESSORS. 31. TAX INCREASE. ( J 5D UO~3 Pf ~ ~ ~D~~ CAUTION: The copyrighllaws of the United States forbid the unauthorized reproduction of this fonn by any, means including scanning or computerized formats. Page 2 of 3 FORM J 01.2 (7-97) COPYRIGHT@1993-97BYPROFEsSIONALPUBLlSHING,aiI0LAS GALLINAS AVE., SAN RAFAEl., CA 94!Hl3 (415147,2-1964 FAX 1415) 472-2069 IDlI PROFESSIONAL 1m! PUBLISHING NCR (No Carbon Required) ( ( 15iu:tJ 2,"31 ',' Property Address 32. COST OF LIVING 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, in accordance with changes in the U.S. 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 denominator of which is the CPI for the second cal- endar month preceding the comr:nencement of the Lease term; provided, however, that the monthly rent will not be less than the amount set forth in Item 2. . .o. ~~IIlMtlW>~lIi~XXXXXXll~~ ~iX:~!<tl;x,ll'ilf.ti"1(1n>tK.Uiln'~~~. 34. AMERICANS WITH DISABILITIES ACT. The parties are aJerted to the existence of the Americans With Disabi lities Act, which may require costly structural modifications. The parties are advised to consult with a, professional familiar with the requirements of the A~ ' 55. LESSOR'S LIABILITY. 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 of such title or interest will be susb~tuted as the Lessor under this Lease, and the original Lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 56. ESTOPPEL CEmFICATE. " , (a) On ten (10) days'prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to lessor a statement in writ- in'g: [1] certifying that this 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 moc!ified, is in full fOrce and effect), the amount ohny security deposit, and the c1ateto which the rent and other charges are paid in advance, if any~ and [2] acknowledging thClt there are not, to Lessee's knowledge, any uncured defaults on the pa rt 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 option, Lessee's failure to deliver such stCltement within such time will be a material breach of this Lease or will be conclusive upon Lessee: [1] that 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 pertorrnance; 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 buyer designated by Lessor such financial statements of Lessee as may be reasonably required by such lender or buyer. All financial state- ments will be received by the Lessor orthe lender or buyer in confidence and will be used only for the purposes setforth. 37. ENTIRE AOREEMENT. The foregoing constitutes the entire agreement between the parties .and may be modified only in writing signed by all parties. The following exhibits are a part ofthis Lease: . Exhibit A: Leal'led Premises Exhibit B: ' Exhibit C: ,The undersigned Lessee acknowledges that he or she has thoroughly read and approved each of the provisions contained in this Offer, aodag",es'.. ..nd,.n;m."",p~=:d.00z L~.... ~ D,t. 4/'z;,,---- Date l ACCEPTANCE The undersigned Lessor accepts the foregoing Offer and a_gre~~to lease the premises on the terms and conditions set forth above. Date Lessee acknowledges receipt of a copy ofthe accepted Lease on (date) [-][-] (initials) CAUTION: The copyright laws of the United' States forbid the unauthorized reproduction of this form by any means including scanning or computerizell formats. ' Page 3 of 3 FORM 107.3 (7-97) C()PYRIGHT@l!i93-97BYPROFESSIONAlPUBlISHING.880LAS GALlINAS AVe. SAN RAFAEl. CA 94903 (415l47Z.1964 FAXt415141~2069 j'Rev. by Date IDlIPROFESSICNAL. [QIPUBLISHING I . , ("--- ( t 52"b ~~4 II EXHIBIT. A " 0 53 I-' t'-I ~ .VI Z W I-' 0\ VIm ;r1,o ~ 9 '" '.(1' ,~ " EXHIBIT'6" r; rfr;;- ;(JMfrJP/l4I'NI -/0 ~-Pm e.. I '.(1" IS'. ;;" I u ~ r fZ ~r.n ~,O ~ 24'.10" ) ! "".()" 15~1J23-( /" I 54-un 23&] :'-1 " :' '1 BERKELEY LAND COMPANY, INC. September 13,2005 Manzullo & Associates 5739 Opus Dr. Carmel, IN 46033 Re: FinishmasterIDublin SquareIDublin Ca ., Dear Ms. Manzullo: This is to inform 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 NNN for the year 2006 and $5,000/month NNN for 2007. If your client is in agreement please have them sign and date this letter in the space provided and return to me. ~ MIchael S. Mikulich Vice President Real Estate B~7~ Title: CFo Date tofU-for 321 Hartz Ave., Suite 200 . Danville, California. 94526. Phone (925) 552-5450 · Fax (925) 552-9987 IS 5 'tZ?1 .ie1. BERKELEY LAND COMPANY, INC. August 20, 2004 Manzullo & Associates 5739 Opus Dr. Carmel, IN 46033 Re: FinishmasterlDublinSquare .c, Dear MsManzullo: This is to inform you that we are willing to extend the current lease with Finishmaster under the same terms and conditions through December 31, 2005. The rent for said extension shall remain the same at $4,700/month plus triple net expenses. If your client is in agreement please have them sign and date this letter and return to me. Thank you for your assistance in this matter. SYMYk.AL. Michael S. Mikulich Vice President Real Estate ~~ Date <lit 3/0 f Title: Cf=C> 321 Hartz Ave., Suite 200. Danville, California. 94526.. Phone (925) 552-5450. Fax (925) 552-9987 \ 1,:;>~-1J 2~1 ASSIGNMENT OF LE~E Parties This Assignment of Lease is made this ~I day of May, 1992, among MATLEY'S, INC., a california corporation ("Assignor"), THOMPSON CAPITAL CORPORATION, a California corporation, ("Assignee"), and BERKELEY LAND COMPANY, a California corporation ("Lessor"). Puroose This Agreement is made with reference to the following facts: " A. Assignor is the lessee of the property known as 11819 Dublin Boulevard, Dublin, California, consisting of approximately 2,600 net square feet, pursuant to a written lease for a term of five years commencing April 1, 1990, and expiring March 31, 1995 (lithe Lease"). B. Assignor wishes to assign the Lease to Assignee. C. Lessor is willing to consent to such assignment, provided Assignee pays to Lessor the reasonable attorney's fees incurred in the preparation of this document. Acrreemont Therefore, it is AGREED AS FOLLOWS: 1. Assianment of Lease: Effective June 1, 1992, Assignor assigns to Assignee all of its right, title and interest in the LeaSe. 2. Ass~Dtion of Lease: Assignee expressly assumes all of the obligations of Assignee under the Lease effective June 1, 1992, and agrees to perform all Obligations of Lessee under the Lease, specifically including the payment of rent, commencing June 1, 1992. 3. Inde~ification of Assianor: Assignee agrees to indemnify Assignor from all obligations under the Lease accruinq on or after June 1, 1992, in accordance with section 9.3 of that certain Asset Purchase Agreement between Assignor and Assignee dated as of April 2, 1992. 4. Non-Release of Assianor: Assignor shall remain liable to Lessor for the performance of all Lessee's Obligations under the Lease unless and until the Lease is canceled and replaced by a new lease 279L5381 1 /61yO 2~1 .' between Lessor and Assignee. In the event that Assignee exercises the option provided for in section 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 deposit in the amount of Nineteen Hundred Fifty Dollars ($1,950), which shall remain on deposit for the benefit of Assignee. Simultaneously with the execution of this Agreement of Lease, Assignee shall pay to Lessor the sum of Two Hundred Dollars ($200) for attorney's fees incurred by Lessor in the preparation of this Agreement. ., 6 . Consent to Assianment: Lessor consents to the assignment on all the terms set forth herein. This consent is not a consent to any subsequent assignment of the Lease. 7. Attornev's Fees: In the event litigation is ever commenced to enforce any of the terms of this Agreement, the prevailing party shall be entitled to recover from the non-prevailinq party a reasonable attorney's fee, plus all costs of suit. 8. Successors: This Assignment of Lease shall be bindinq upon the heirs, successors, executors and assigns of all the parties hereto. ASSIGNOR: HATLEY'S, INC., a California corporation Dated: .~ - S - 9.::L:.. Dated: ~ ('5 /1.7- THOMPSON CAPITAL CORPORATION, a California corporation ~~~:~1tG-- ASSIGNEE: LESSOR: v Dated: ~/O./ -2/, /99..L By: Its: BERKELEY LAND COMPANY, a California corporation J:91)~~ ~1 27915381 2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. II. 12. 13. 14. 15. 16. 17. 18. 19. 20. 2l. 22. 23. 24. 25. 26. 27. 28. 29. 30. 3l. 32. 33. 34. 35. 36. 37. 38. 39. THE DUBLIN SQUARE LEASE William A. Biggs MATLEY'S, INC. 11819 Dublin Blvd. Dublin, CA 94566 1'531J 231 RECEiVED FEel 26m INDEX TO LEASE 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 Entry by LESSOR Damage or Destruction of Premises Assigment 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 Taxes 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 Exhibit "A" Location of Building in Shopping Center .r., Page 1 1 1 2 3 3 3 4 4 6 6 7 8 8 9 10 11 II l3 13 13 13 13 15 15 15 16 l6 l7 l7 17 18 18 l8 18 18 19 19 19 150C Db 2~~ THE DUBLIN SQUARE LEASE William A. Biggs MATLEY'S; INC. 11819 Dublin Blvd. Dublin, CA 94566 1. Parties This lease is made this / fS-/ day of #/l~ I L, 1990, by . and between BERKELEY LAND COMPANY, INC., herein called "LESSOR", and William A. Biggs, herein called "LESSEE". 2. Premises S;~ 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 2600 net square feet located at the Dublin Square Shopping Center. The street address is 11819 Dublin Blvd., Dublin, CA 94566. 3. Lease Term A. Commencement. 1, 19"90. This lease term shall commence on April B. Initial Term. The initial term shall be for a period of five (5) years, commencing on the commencement date described above. C. Option. In addition to the initial term, LESSEE shall have one (1) option to extend the lease for an additional consecu- tive term of five (5) years. D. Exercise of Option. 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 (180) days before the termination of the existing lease term. If the option is exercised, the lease shall continue upon all of the same terms and conditions, except for the rent, which shall be as set forth below. 1 l tfD Orb 1, '] #f 4. Rent A. Monthly Rent. The initial base monthly rental during this lease shall be Nineteen Hundred and Fifty Dollars ($1,950.00). The first month1s 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 hefore the first (lst) day of each month, in advance, u.nd 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 (10) i'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 Dollars ($1,950.00), 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 by the United States Department of Labor --lithe 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 CPI increase shall not exceed seven percent (7%) per annum, or a maximum increase of twenty one percent (2l%) [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 additional five (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 legal representatives cannot reach 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 appraisals 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. . 2 l(()l ~ F. CPI Increase During Option Period. . 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 40, above. c: /feCI<. W: / IF :to ~ b~'1/!/J~ ~'11' '? <;;1 ~ec .b. #"1 f 5"0 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), 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. 5. Security Deposit -. 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 whioh 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 ot 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, cQmply 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 enjoy- ment of owners or tenants of adjoining parcels of real property. 7. Signs During the second quarter of 1990, a new exterior sign shall be installed at the LESSOR'S expense. The "LESSEE and City of Dublin shall approve same before construction of the sign. 3 1(0'2 ~Zhi 8. Business Hours 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, 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. Parking and CommonhAreas A. Definitions The term "Shopping Center" means the entire area within the outer property limit shown on the plot plan attached hereto and marked Exhibit "B" 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 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 ~nd 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 Exhibit "B"', and the LESSOR reserves 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 eliminate or add any improvements or 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. 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. 4 IlLJ=3 'JfJ 2~1 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 and facilities shall be subject to such reasonable regulations and changes as LESSOR sha~l make from time to time. 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 areas, and road, subject to any rights, pOWers and privileges reserved to LESSOR. No parking fees shall be established and no meters shall be used. B. Parkinq Area ., within the limits of the Shopping Center, LESSOR shall have hard surfaced, marked, properly drained, adequately lighted and landscaped parking area or areas, 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, with reasonable provisions for landscaping, 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 to 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 ares,. nor shall LESSEE at any time park or permi t the parking of its trucks or the trucks of its suppliers or others, 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 In addition to the fixed rent, and without deduction therefor from the rent, LESSEE shall, during the term of this lease, pay its share of the parking area maintenance costs and accommodation area maintenance costs in the proportion that the rentable floor area of the leased 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 such sum in advance on the first day of each calendar month 5 l(t)4 0() 1..31 during the term of this lease on account of its share of the parking maintenance costs for each calendar year, or portion thereof during the term of this Lease. "Parking area maintenance cost" shall include all costs and expenses of operating and maintaining the parking and common areas, in such manner as LBSSOR 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~ng and maintaining drainage, landscaping, and directional and other signs with respect to the use of such areas. LESSEE's initial common area maintenance charge shall be Sixty Dollars ($60.00) per month, which shall not increase fo~ at least three Years. n 10 ~ 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 building. The provisions of this paragraph shall apply to any person, firm or corporation which controls or is controlled by LESSEE. 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., $2,000.00, 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 apart 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 Mechanic's Liens 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 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 therein. 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 6 l<.o? 1JL. ~1 discretion may require to 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 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 LESSOR within 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 paid rent due in that sum. 12. Maintenance and Repairs A. LESSEE's Direct Maintenance and Repairs LESSEE shall at its own cost, keep, repair, 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 conditioning (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 order, condition and repair~ LESSEE hereby waives all right to make repairs o~any ~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 event LESSEE shall fail to keep said premises in good sanitary order I condi tion 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. B. LESSEE's Reimbursement of 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. LESSEE shall reimburse LESSOR for such repair expenses of LESSOR on the same prorata basis as described in the paragraph entitled "Parking and Common Areas", above. LESSOR shall also repair and maintain the exterior painting, plumbing and electrical systems in the cornman areas and building exterior. As to these last mentioned items, LESSEE shall reimburse LESSOR on the next billing period following the receipt of a billing therefor for LESSEE's prorata share. 7 10lo~ 2-;1 13. Compliance with Government ReQu1ations. Land Use Permit. ete LESSEE shall, at its sole cost and expense, comply will all of the municipal, county, state, federal, and other governmental or quasi-governmental authorities now in force, or which may hereafter be in force, pertaining to' the leased premises, 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 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 ordinance, statute, rule or regulation. 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 additions 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-liability for alterations, 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 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 (90) days prior to the expiration of the term, to place upon said premises any usual or ordinary liTo Let" or "To Lease" signs and to permit the 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. 8 l(ol tJ()131 15. Damaqe or Destruction of 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 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 resul tof said 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 fuade, such proportionate reduction to be based upon the extent to which the making of such repairs shall interfere with the business carried OIl 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 form a cause 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 wi thin ninety (9 0) days after the occurrence of such destruction or LESSOR's election either: (l) To repair the premises, using any available insurance proceeds and supplying additional funds; or, {2} To. terminate this Lease, rece~vlng 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 by LESSOR and shall not involve the repair or restoration of any. 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 (30%) of the total square footage of the improvements erected upon the leased premises are destroyed unless LESSEE and LESSOR agree otherwise in writing. 9 Uo8U0234 D. In repairing or restoring the leased shall not be liable for any delays reSUlting other labor disputes, acts of the elements outside LESSOR's control. premises, LESSOR from strikes, or or other causes E. LESSOR agrees that LESSOR will obtain, pay the premiums on and maintain, in force 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, they 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. 16. Assianment and 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, guests, 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, 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 in LESSEE. in excess of twenty-five percent (25%) of the outstanding shares shall be deemed an assignment, requiring LESSOR's prior written consent. LESSOR's consent shall not be unreasonably withheld. LESSEE shall pay LESSOR's reasonable attorney's fees and costs incurred 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. 10 lCtf=t"b2b~ 17~ Insolvencv or Bankruptcy 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 insol veney 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 entity guaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 18. Remedies For Breach In the event of any breach of this Lease, or any covenant, condition or provision. hereof by LESSEE which continues after LESSOR has .given 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 unreasona~le 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 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 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 terms (which may be for a term 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 right 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 indebtedness other than rent due hereunder: 11 11DOV237 (a) The costs and expenses (including attorney's fees and any real estate commission) of such reletting and of such alterations 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 leased 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 r~letting 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 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 taking 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 terminate this lease for such "previous breach. Should LESSOR at anytime terminate this lease for any breach, in addi tion 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'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 remainder 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. l2 II I ao l.~1 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 than the failure to pay money. 19. Attorney's Fees 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 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 attorney's fees. ~. Surrender of Lease 20. 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 assignment 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. Holding Over 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. . 22. Surrender of Premises on Expiration of Term On the last day, or sooner termination of the lease te~, LESSEE shall quit and surrender the premises, broom-clean, l.n good condition and repair (reasonable wear and tear and damage by acts of God excepted), together with all alterations, additions and improvements which may have peen in, to or on 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 become the property. of LESSOR. 23 . Insurance During the entire term of this lease, LESSEE at its own expense, shall: 13 ~ 12. 't21/1 A. Public Liabilitv Insurance Provide and keep in force for the benefit: of LgSSOR 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 i: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, 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 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. Fire Insurance 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 fOF full replacement value. . c. Certificate of Insurance 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 Ifpaid" 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 benefi9iary of any mortgage or deed of trust to which this Lease is subject 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. 14 113V0231 D. . Worker's Compensation wi th regard to any Worker's Compensation insurance carried by LESSEE, the LESSEE agrees that it shall waive the right of subrogation against the LESSOR (or its employees, assignees or agents), and such insurance shall provide for such waiver of subrogation. E. Waiver of Subrogation wi th regard to any insurance required 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. utilities 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. 26. Taxes A. Personal Pro-pertv Taxes 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 Property Taxes--Lessee's Prorata Share LESSOR shall pay before delinquency any and all municipal, county or state real property taxes, including special assessments, 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 including state and federal income taxes payable by LESSOR as a result of LESSOR's rental income. 15 llcfO~b1 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 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 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. 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 statment certifying that this Lease is unmodified 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, it being intended any such statement delivered pursuant to this subparagraph may be relied upon by any prospective purchaser or encumbrancer (including assignees of either) of the Shopping Center. l6 1,5~ 23~ 29. Transfer or Reversion 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 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 given by LESSEE to secure the faithful performance of all or any of 1;he 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 LESSOR shall be discharged from any further liability with reference thereto.h 30. Rules and Regulations LESSOR reserves the right to issue such 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 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 facilities 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. Time is of the Essence Time is of the essence of this agreement and each and every part thereof. 17 II&; 0:0 t~ 1 32. No Joint Venture or partnership Nothing herein shall be construed as, nor shall this Lease create 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 ~ollows: To the LESSOR: BERKELEY LAND COMPANY, INC. 12ll Newell Ave., Suite 120 Walnut Creek, CA 94596 To the LESSEE: William A. Biggs MATLEY'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. Captions 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 Lease. 36. Successors and Assigns 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. 18 111D() 13~ 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 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 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. 39. Governing 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: BERKELEY LAND COMPANY, INC. By: de7- ~~r Its: ~~/~T , '{;/i.1fji~ 19 \0 f Il~OO2~ 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 THOMPSON PBE. INC.. A Delaware Corporation. herein called "LESSEE". 2 . P.remises 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 buildin~ area on real propertv situated in the City of Dublin. County of Alameda. State of California. and more particularly described as follows: Approximately 1470 net square feet located at the Dublin Square. The street address is 11815 Dublin Blvd.. Dublin. California ("the leased premises") 3. Lease Term A. Commencement. This lease term shall commence on October 1. 1997. B. Initial Term. The intial term shall be for a period of thirty (30) months. commencing on the commencement date described above. 4 . fumt. A. Monthlv Bent. The initial base monthly rent shall be One Thousand and TWenty Nine Dollars ($1.029.00), The first month's rent payment shall be due upon execution of this Lease, 1 11t1on23~ B. Due Date and Lat~ Charges.. 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 received by LESSOR within ten (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. ". 5. 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 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 beprohibi ted 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 en.ioyment of owners or tenants of adjoing parcels of real property. 6. ausiness Hours 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 bl.l.s iness 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. that this provision shall not apply if the le~sed premises shall be closed 2 '- l ~iJ() 231 and the business of LESSEE therein shall be temporarily shut down on account of strikeS. lockouts or causes beyond control of LESSEE. 7. Parking and Common Areas A. Definitions The term "Shopping Center" means the entire area within the outer property limit shown on the plot plan attached hereto and marked Exhibit "A" andal]", 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 Shoppin~ Center shall be included until such. designation shall be revoked bv 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 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 invi tees. 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 Exhibit "B". and the LESSOR reserves 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 eliminate or add any imprOVements or 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. 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 business 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 common areas. including the accommodation areas. the parking areas. and road. subject to any rights. powers and nrivileges resrved to LESSOR. No parking fees shall be established and no meters shall be used. 3 l~tav 2;~ B. Parking 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. 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 parkin~ 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 Expens~ During this Lease. the LESSEE shall pay its prorata share of the common area maintenance costs including an administrative fee of 10%. Tenants proportionate share shall be a sum equal to the product obtained by multiplYing the total cOsts by a fraction. the numerator of which is the number of square feet in the premises and the denominator of which is the total square feet of rentable ground floor area of all areas in the Shopping Center. 8. Na.m.a 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. 4 (~ 2 U() '2"3. ~ 9. 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. ahall become a part of the realty and belong to the LESSOR at the expiration of this Lease or earlier vacancy of the leased premises bv LESSEE. B. No Mechanic's Liens 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 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 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. 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 a~rees to execute and file a notice of completion as provided in Section 1193. l( 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 LESSOR within 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 paid rent due in that sum. 10. Mai~ten~nce and Renairs A. LESSEE's Direct Maintenance and Repair~ LESSEE shall at its own cost. keep. repair. 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 glazin~ of store front. heating. air conditioning. electrical. plumbing. ventilating. fire sprinkling system. if any. and fire extin~uishers. and the interior of the 5 l '33 J()'2S1 premises. in good and sani tarv 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 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. B. LESSEE's Reimbursement of ~ESSOR-s Repair ExpenSes 'l'he 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. LESSEE shall reimburse LESSOR for such repair expenses of LESSOR on the same proratq. basis as described in the paragraph entitled "Parking and Common Areas". above. LESSOR shall also repair and maintain the exterior painting. plumbing and electrical systems in 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 billing therefor for LESSEE's prorata share. 11. Compliance with Government Regulq.tions. LandOse Permit. etc. 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 judgment of any court of com?etent 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 ?remises. shall be conclusive of that fact as between LESSOR and LESSEE. Notwithstanding anything to the contrary in the foregoing. LESSEE may contest the validitvof 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 ordinance. statute. rule or regulation. 6 l~~1J 23~ 12. Entrv bv LESSOR LESSEE shall permit LESSOR and its agents to enter into and u~on 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 scaffoldin~. cano'Dies. fences and props as may be required or for the pur~ose of posting notices of non-liability for alterations. additions or repairs or for the purpose of placing upon the leased premises any usual or ordinary "For Sale" signs. or for ii,he 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 the purpose of exhibi tin~ 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 o'Ption 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 wi thin ninety (90) 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 exhibiting the premises to any prospective tenant. Such entry shall not interfere with normal business operations. 13. Damage or Destruction of Premises A. In the event of a partial destruction of the premises durin~ 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 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 premises. or if 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 restoration. the LESSOR shall give ~ritten notice to the LESSEE wi thin ninety (90) days after the occurrence of such destruction or LESSOR's election either: 7 \~5 DQ Z"3t1 (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 arisin~ 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 ~hich was origin~.lly constructed or added by LESSOR and shall not involve the repair or restoration of any fixtures or alterations installed by LESS.EE 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 (30%) of the total square footage of the improvements erected uPon the leased premises are destroyed unless LESSEE and LESSOR agree otherwise in ~riting. D. In repa~r~ng or restoring the leased premises. LESSOR shall not be liable for any delays resul tin~ 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. they 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. 14. Assignment and 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 8 I~~ 2~~ 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 laYl without the written consent of LESSOR. Any transfer or shares of stock by LESSEE in excess of t~enty- five percent (25%) of the outstanding shares shall be deemed an assignment. requiring LESSOR's prior written 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. 15. Insolvencv or Bank~l~tc~ 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 paras:raph. 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. Remedi~s For Breach In the event of any breach of this Lease. or any covenant. condi tion or provision hereof by LESSEE which continues after LESSOR has given 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 shall have the immediate right of entry without 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 elsewhere at the cost of and for the account of LESSEE. 9 I~l UfJ2.3Pf 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 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 right 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 indebtedness other than rent due hereunder: (a) The costs and expenses (including attorney's fees and any real estate commission) of such relettin~ and of such alterations 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 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 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. 10 1<c6~2 ?;'1 No such entry or taking 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 t'eletting 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 bv 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 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 required by this Lease shall be ten (10) days if the breach cons ists of the failure to pay money. and thirty (30) days if the breach consists of anythin~ other than the failure to pay money. 17. Attornev's Fe~s 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 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 attorney's fees. 18. Surrender of LB8se 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 existin~ subleases or subtenancies. or may. at the option of LESSOR. operate as an assi~nment 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. 11 l8~ lfJ't]Of 19. Holding Over 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. Surrendpr of Premises on Expiration of Term " On the last day. or sooner termination of the lease term. LESSEE shall quit and surrender the premises. broom-clean. in good conditiion and repair (reasonable wear and tear and damage by acts of God excepted). together with 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. Specifically. all built-in cabinets. counters. desks and shelves shall remain and become the property of LESSOR. 21. Insurance During the entire term of this Lease. LESSEE at its own expellse. 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 fail 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 carrYin@." 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 12 l~D'b t3q the riJ?: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. Fire Insurance 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 cost for which the Tenant is obli.Q:ated to contribute its proportionate share as described in 7.(Dl of this Lease. C. Certificate of InsV~ance 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 sub.ict 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. Worker's Compensation Wi th regard to any Worker's ComDnsation insurance carried by LESSEE. the LESSEE agrees that it shall waive the right of subrogation against the LESSOR (or its employees. assignees or agents). and such insurance shall provide for such waiver of 6ubroJ?:ation. E. Wa:i ver ofSl,lbrogation With regard to any insurance required 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. 13 ltq l~t~ct ?.., -~. Indemnif;i~ation LESSEE shall indemnify and hold LESSOR harmless and defend LESSOR from any and all claims of liabili tv 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. 23. Utilities " 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. 24. Taxe~ A. Personal Property Taxes 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 Propertv Taxes--LessAe-s Prorat~ 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 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 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 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 LESSOR 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. 14 l1~ ~2Y1 25. Exclusivjtv and Other Tenants LESSOR agrees that during the time this Lease is in force. LESSOR will not lease other premises in the Dublin Square Shopping Center solelY as an automobile paint supply store. 26. 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 mortga~ee or beneficiary named in anY such mortR:age 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 mortga~ee 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 (10) days' tn:ior 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 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. it being 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 Shopping Center. 27. Transfer or Rp.version 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 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 given by LESSEE to secure the faithful 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 LESSOR shall be discharged from any further liability with reference thereto. 15 lL13 Db 2~~ 28. Rqles and Regulations LESSOR reserves the right to issue such reasonable rules and regulations. relatin~ 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 ri~ht to close. if necessary. all or any portion of the common area. 6ide~alks. roads. access roads. malls and other facilities 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 re~ulations 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. 29. Time is of the ABsence Time is of the essence of this agreement and each and every part thereof. 30. No Joint Venture or P~rtnership Nothing herein shall be construed as. nor shall this Lease create a joint venture or partnership by and between LESSOR and LESSEE. 16 '. I q 4- Et{) '2~~ 31. Notices 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 bv mail. uPon deposit in the mails. postage prepaid and addressed as follows: b 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. 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. 33. Captions 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. 34. Successors and Assigns 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, 17 r q~ JtJ1--3~ 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 9gainst 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. " 36. Invalidity of Particular Provision 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 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 bv law. 37. Governing 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: BERKELEY LAND COMPANY. INC. By: b< :1 L- 4~ Frank Sabatte (f~ By: ~'- 17-J,;n\A! P- Its: Its: ()~ ~ r,":' .., 18 :' 14~Vb2~1 ~ DUBLIN SQUARE LEASE THOMPSON PBE. INC.. A Delaware Corporation 11819 Dublin Blvd. Dublin. CA 94566 INDEX TO LEASE f, 1. Parties 2. Premises 3. Lease Term 4. Rent 5. Security Deposit 6. Tenant Improvements 7. Use and Prohibited Uses 8. Signs 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 27. Taxes 28. E~clusivity and Other Tenants 29. Subordination 30. Transfer or Reversion 31. Rules aRd Re.e:ulations 32. Time is of the Essence 33. No Joint Venture or Partnership 34. Notices 35. Waiver of Breach 36. Captions 37. Successors and Assigns 38. Interpretation 39. Invalidity of Particular Provision 40. Goverping Law Page 1 1 1 2 3 3 3 4 4 4 6 6 7 7 8 8 10 10 11 13 13 13 13 14 15 15 15 16 16 17 17 18 18 18 18 18 19 19 19 19 (41Db /"3'1 DUBLIN SQUARE LEASE THOMPSON PBE. INC. A Delaware Corporation 11819 Dublin Blvd. Dublin. CA 94566 1. Parties i.~ This lease is made this 1st day of April, 1995, by and between BERKELEY LAND CO.. INC.. herein called "LESSOR". and THOMPSON PBE, INC.. A Delaware Corporation. herein 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 2600 net square feet located at the Dublin Square. The street address is 11819 Dublin Blvd.. Dublin. California ("the leased premises") 3. Lease Term A. Commencement. 1, 1995. This lease term shall commence on April B. five ( 5) above. Initial Term. The intial term shall be for a period of years. commencing on the commencement date described C. Option. In addition to the initial term. LESSEE shall have one (1) option to extend the lease for an additional consecutive term of five (5) years. D. Exercise of Option. 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 (180) days before the termination of the existing lease term. If the option is exercised. the lease shall continue upon all of the same terms and conditions. except for the rent. which shall be set forth below. l q'b "b t;St'1 4 . fum.t A. MQf1tnlv R~nt. The initial base monthly rent shall be Twenty Three Hundred and Forty Dollars ($2.340.00l. The first month's rent payment shall be due upon execution of this Lease. B. Due Date and Late Charges. 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 received by LESSOR within ten (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. cpr Increase. 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 by the United States Department of Labor --"the Index"--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 (3) years] at the CPI increase date. D. Option ~eriod Rent. In the event the LESSEE exerciseS the option referred to in 3C.above. to extend the or?-ginal lease term for an additional three years (3). the initial rent at the commencement of each additional three (3) 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 ~he mutual written agreement of the parties. if possible. If the parties and their legal representatives cannot reach 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 appraisals 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, 2 tq'1 ~ 2~q the LESSOR reserves the right from time to time to make changes in the shape. 13 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 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 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 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 common areas. including the accommodation areas. the parking areas. and road. subject to any rights. powers and privileges resrved to LESSOR. No parking fees shall be established and no meters shall be used. B. Parking 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. with reasonable provisions for landscaping. access and other accommodation areas. C. Lessee's Parkin~ 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. 5 2.00 DlJ l3,Q ~. CPI Increase During Option Period. 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. Security Deposit LESSEE, as Assignee ox 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 Improvements. 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 accom-plished 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 Mgr. ). 7. 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 pl).rpose 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 e}(isting 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 3 " "'20 llfb 23' 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 Gommitted. 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. 8. Signs 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. Business Hours 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. that this provision shall not ap1?ly 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. 10. Parking and Common Areas A. De1;initions 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 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 invi tees. 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 Exhibit "B". and 4 2f)2 un23~ 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. The monthly Common Maintenance charge will be a continuation of $60.00 per month as was in the prior Lease contract. .., 11. 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 building. The provisions .of this paragraph shall apply to any person. firm or corporation which controls or is controlled by LESSEE. 12. A.lteratians A. Limitation IrESSEE 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 becom.e 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 M~~hanic's Liens 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 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 labar. services, materials, supplies or equipment alleged to have been furnished to .or for LESSEE, payment f.or which may be secured by mechanic's or materialmen's liens against the premises or LESSOR' s interest therein. Notwithstanding the f.oregoing. 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 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 U) ~ ~2~1 LESSOR within 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 paid rent due in that sum. 13. Maintenance and Repairs A. LESSEE'e Djrect Maintenance and Repairs ". LESSEE shall at its own cost. keep. repair, replace and maintain the leased premises and every part thereof, (excluding the foundation. roof and exterior ~alls 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 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. B. LESSEE's Reimbursement of LESSOR's R~-pair 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. LESSEE shall reimburse LESSOR for such repair expenses of LESSOR on the same prorata basis as described in the paragraph entitled "Parking and Common Areas". above. LESSOR shall also repair and maintain the exterior painting, plumbing and electrical systems in 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 billing therefor for LESSEE's Prorata share. 14. Compliance with Government Regulations. Land Use Permit. etc. LESSEE shall. at its sole cost and expense, comply with all of the municipal, county, state. guasi-governmental authorities be in force, pertaining to fai thfully 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 ZD4cf{)23Q 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. 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'4LESSEE 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 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 alterations or additions 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-liability for alterations. 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 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 oGcupation or quiet enjoyment of the premises thereby occasioned. LESSEE shall permit LESSOR. at any time within ninety (90) 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 exhibiting the premises to any prospective tenant. Such entry shall not interfere with normal business operations. 16. Damage or Destruction of 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 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 8 205~ 731 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 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 premise~. or if 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 restoration. the LESSOR shall give written notice to the LESSEE within ninety (90) days after the occurrence of such destruction or LESSOR's election either: (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 ~ESSEE. 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 by LESSOR and shall not involve the repair or restoration of any 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 (30%) of the total square footage of the improvements erected upon the leased premises are destroyed unless LESSEE and LESSOR agree otherwise in writing. D. In repalrlng 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. 9 Zf)~ ifJ 2-3q F. In the event of any dispute between LESsbR 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 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. 17. Assignment an~ Subletting LESSEE shall not voluntarily assign this Lease o.r 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 w-i thheld. 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. sublettin~. 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 be deemed an assignment. requiring LESSOR's prior written 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 s~bletting. In the event that LESSEE assigns or sublets this Lease at a higher rental than the rental set forth herein. one-haLE (1/2) of such increased rental shall be paid to LESSOR. 18. Insolvency or Bankruptcv 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. 10 l<O [Db '2 3Pi 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 guaranteeing the obligations of LESSEE hereunder shall have the same effect as if such event occurred to or action were taken by LESSEE. 19. Remedies For Breach In the event of any ereach of this Lease. or any covenant. condition or provision hereof by LESSEE which continues after LESSOR has given 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 shall have the immediate right of entry without 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 elsewhere at the cost of and for the account of LESSEE. 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 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 condi tions as LESSOR in its sole discretion may deem advisable with the right 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 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 alterations and repairs incurred by LESSOR: 11 20'800 2311 (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 pavment 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 bv 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 if such rentale 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 taking 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 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'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 of which amount shall be immediately due and payable from LESSEE to LESSOF.. 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 required by this Lease shall be ten (10) days if the breach consists of the failure to pav money. and thirty (30) days if the breach consists of anything other than the failure to pay money. 12 20.?fVO 13'1 20. Attorney's Fees 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 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 attorney's fees. ..i) 21. Surrender 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 assignment 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. 22. HoldinaOver 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. 23. Surrender of Premises on Expir:ation of Term On the last day. or sooner termination of the lease term. LESSEE shall quit and surrender the premises. broom-qlean. in good conditiion and repair (reasonable wear and tear and damage by acts of God excepted). together with all al terations.addi tions 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. Specifically. all built-in cabinets. counters. desks and shelves shall remain and become the property of LESSOR. 13 2 fD Vb t..~'1 24. Insurance During the entire term of this Lease. LESSEE at i ts o~n expense. shall: A. Public Liability 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 fail 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 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. Fire InsuranCe 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. C. Certificate of Insurance At the commencement of the term of this Lease. LESSEE shall deliver to LESSOR. certificates of inS1J,rance 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 14 211 ~z.~~ be delivered to the beneficiary of any mortgage or deed of trust to which this Lease is sub.ict 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. Worker's Compensation With regard to any Worker's Compnsation insurance carried by LESSEE. the LESSEE agl:'ees that it shall waive the right of subrogation against the LESSOR ( or its employees. assignees or agents). and such insurance shall provide for such waiver of subrogation. E. Waiver of &ubrogation With regard to any insurance required 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. 25. Indemnification LESSEE shall indemnify and hold LESSOR harmless and defend LESSOR from any and all claims of liabili ty 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. 26. Utilities 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. 27. Taxes A. Personal Property Taxes 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. 15 212 U:02~~ B. Real Propertv 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 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 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 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 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. . 28. Exclusivitv and Other Tenants LESSOR agrees that during the time this Lease is in force. LESSOR will not lease other premises in the Dublin Square solely as an automobile supply paint store. 29. 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 bv 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 tru.st 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 statement certifying that this Lease is unmodified and in full force and effect (or if there have been modifications. that the same is in full force and effect as mo.dified and stating the mo.difications) and the dates to which the fixed rent and other charges have been paid in advance. it being 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.pping Center. 16 . . 213 1;13&f 30. Transfer or Reversion 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 vf 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 given by LESSEE to SeCure the faiiFhful 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 LESSOR shall be discharged from any further liability with reference thereto, 31. Rules and Regulations LESSOR reserves the right to issue such 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 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 rule.s 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. 17 214-~ 'l?q 32. Time is of the essence Time is of the essence of this agreement and each and every part thereof. 33. No Joint Venture or Partnership Nothing herein shall be construed as. nor shall this Lease create a joint venture or partnership by and between LESSOR and LESSEE. n 34. Notices 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 ~riting 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. 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. 36. Captions 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. 18 '''''t . Glen Thompson 21? ~ 13~ , Vice President I California Operations IT~J SuppryingAmerica:S Body Shops. 4553 Glencoe Avenue .#200 :37 . Successors and Ass il1ns Marinlt del Rey, CA90292 (310) 306-7112 ph. I (310) 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. ,l. 38. 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. 39. Invalidity of Particular Provision If any term or provision of this Lease or the applicability thereof to any person or circtlmstance 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 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. Governing 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. By: .~~~ LESSEE: THOMPSONP BE.~.INC A Dela~Co ation By: U~ h LESSOR: BERKELEY LAND COMPANY. INC. Its: Frank Sabatte P(Xl?~. Its: 0('i fJt1 er/ld~r 19 / .,""', .....1 A~:SlGNMENT. ASSUMPTION AND CONSENl " ~~ fYL.2' &> i5fJ2.37 Berkeley Land Co., Inc. ("Lessor") and Thompson PBE, Inc. ("Lessee") have entered into a ceZ;; lease dated May 12, 1990 (collectively the "Lease") for certain premises located at 11819 Dublin Square, , V\lajIf f'eek, CA; as more specifically defined 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. 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~ Lease, 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. ~ Th._onPBE,lnc By {;<. Print Name: Robert R. Millard Title: Vice President - Finance Lessee ~?"~<"lnc Print Name: Robert R. Millard Title: Sr. VP -Finance Transferee In consideration of the covenants, agreements and warranties of Lessee and Transferee as set forth above, Lessor hereby consents to the assignment of the Lease to Transferee on the following terms and conditions: 1. Lessee shall remain liable for the performance of all of Lessee's obligations under the Lease, as it may be amended from time to time. 2. Transferee shall operate the Premises for the remaining term of the Lease pursuant to all of the terms and conditions set forth in the Lease. I By ~O.~ Print Name: J4IC~(.,' . 11 Jt::4J/dA Title: t:.(,N.emt...- J.1N\141batL Lessor ~" 2111f~t::f t EXTENSION OF REAL PROPERTY LEASE Parties This Agreement is made between BERKELEY LAND CO., INC, a California corporauon ("Lessor") and FINISHMASTER, INC., a corporation ("Lessee"). Pm:pose This Agreement is made with reference to the following: A. Lessor and Lessee's predecessor, THOMPSON PBE, INC., entered into two related real property leases by which Lessee leased space in the Dublin Square Shopping Center, located on Dublin Boulevard, Dublin, California, owned by Lessor, as follows: 1. Lease dated April 1, 1995, for 2,600 sq. ft., described as 11819 Dublin Boulevard, for an initial term of five years, commencing April 1, 1995, and expiring March 31, 2000 (the "11819 Lease"). The 11819 Lease granted Lessee one option to extend the 11819 Lease term for five years, which was not exercised. 2. Lease dated September 12, 1997;for 1,470 sq. ft., described as 11815 Dublin Boulevard, for an initial term of thirty months, commencing October 1, 1997, and expiring March 31,2000 (the "11815 Lease"). The 11815 Lease contained no option to extend its term. B. Upon the expiration of both Lease terms on the dates set forth above, Lessee continued to occupy the respective premises described in the Leases as a month-to-month tenant, in accordance with Section 22 of the 11819 Lease, and Section 19 of the 11815 Lease entitled "Holding Over". C. Lessee and Lessor have treated both Leases as one single Lea$e. D. Effective June 30, 2000, THOMPSON PBE, INC. assigned the 11819 Lease to Lessee by a written agreement entitled "Assignment, Assumption and Consent," to which Lessor consented (the" Assignment"). The Assignment was intended to refer to both Leases. E. The parties wish to enter into an agreement whereby the Assignment will be deemed to apply to both Leases, the Leases shall be deemed combined, the term of the combined Lease shall be extended, and the rent owed during the extended term specified. 1 '" , " l 21~vrJ3Cj Agreement 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 of this Agreement (the "Lease"). 3. Extension of Combined Lease: The term of the Lease is extended for a period of two (2) years, commencing January 1~ 2002, through December 31, 2003, and expiring on the latter date (the "Extended Term"). 4. &mt: The base rent due lIDder 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 HlIDdred Dollars ($4,500) per month. 5. No CPI: In view of the specified rent set forth above, the Lease shall not be subject to Consumer Price Index rental increases during the Extended Term. 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 of the Lessee as set forth in the Lease, shall remain lIDchanged Lessor: BERKELEY LAND CO., INC. a c~.. orati.'on By:. ~ S. MIKULICH, General Manager Dated: ~I j z--- Lessee: FINISHMASTER, INC., a corpor on ?\) Its: Cfb :S F, ,,(~L Dated: f1!/;?kfl b, Zoo*/:.... . 2 ~ *~ . ;C/.vAc. ,..- z. '-'.- .I';'~ :) . r ~ ('...-....... (:'.~, j .,# 2l~ 1)"130, LEASE AMENDMENT THIS LEASE AMENDMENT to Lease executed on April 14, 1967, is executed in duplicate at Pleasanton, California this 9th day of May , 19~, between BERKELEY LAND COMPANY, a California Corporation, hereinafter referred to as Lessor, and COMMUNITY FIRST NATIONAL BANK, 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 Square 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; WHE:REAS Lessor intends to make certain modifications to the Dublin Square Shopping Center to include, a fascia and signage upgrade of the center's exterior along with related parking lot, landscaping and lighting improvements that will significantly enhance the center's appearance; and WHEREAS Lessee desires to expand its building by approximatelY one thousand one hundred (1,100) square feet on the parcel of land which is the subject of the Lease; NOW, THEREFORE, IT IS AGREED between the parties hereto as follows: AVO/ A:WP50\LEASEAIID. eFB 3/5/90 1 ~ 22 Dii[) 7.. ~&; 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 ofa Notice of Completion by Lessor. Lessor further agrees to complete its improvements on or before December 31, 1990. 2. Building Expansion. 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 construction, Lessee shall obtain Lessor's approval of the plans therefor, prior to making such alteration, improvement, addition or change, which approval shall not unreasonably be withheld by Lessor. Lessee, at Lessee's own expense, shall comply with all present and future governmental requirements relating to the leased property only, arising out of, in connection with, or necessitated by such alterations except as may otherwise be established herein. (e) Lessor agrees to cooperate fully with Lessee's planned expansion, pursuant to the provisions and obligation of both the' Lease and this Lease Amendment. Lessor agrees to cooperate with Lessee to obtain approval of the City of Dublin. Lessor's cooperation shall include, but not be limited to the preparation of traffic engineering studies, application for variance(s) for parking, and such other items as may be required ..... AVD/A,WP50\LEASEAHD.CFB 3/5/90 2 " 221ttt~30 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. Assignment and 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 or persons other than Lessee, or sublet the premises or any part thereof. No part of the leased premises shall be sublet for a purpose which is unlawful, dangerous, noxious or offensive. Any such assignment or subletting shall not be for the conduct of a business that would directly 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 hereto shall specifically agree in writing that such proposed assignment shall so release the assigning or subletting party. 4. Paragraph 10 shall be amended in its entirety to read as follows: 10. Option to Purchase Building: Lessor shall have the option to purchase Lessee's building at Lessee's unamortized cost in the event of destruction or condemnation as provided in Paragraphs 12 and 13, should Lessee elect to terminate this Lease under the provisions of said paragraphs. 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 such event, if Lessee does not sell or remove said building, then it shall become the property of Lessor; and Lessor agrees to indemnify and save Lessee harmless from and against 'any and all claims arising from Lessee's failure to remove said building from said land by any person or to any property, and from anp against all costs, expenses, and liabilities which may be incurred in or in connection with any such claim of proceeding brought thereon. Any such election by either party shall be made by written notice from one party to the other, on or before thirty (30) days 'after the date of the mutually agreed termination of the Lease or the natural expiration of the term of the Lease or the renewal if the option to renew is exercised by Lessee. AVD/A:WP50\LEASEAHD.CFB 3/5/90 3 2 2'21J2 5~ 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 othervlise 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 'bf the then current term of its intent to extend this Lease.. 6. Fair Market Value. "Fair Market Value" shall mean the fair market base rent as defined below, at the time or times in question for the premises, based on the prevailing rentals then being charged to tenants of ground leases in the general vicinity of the premises of, comparable size, location, and under similar circumstances as the subject premises. 7. Determination of Fair Market Value. Lessor and Lessee shall endeavor to agree on the fair market value. If they are unable to see agree within 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~al vicinity, and the two real estate appraisers shall mutually appoint a third appraiser similarly qualified. The three appraisers shall then determine the fair market value by majority vote, and this determination shall be binding on the Lessor and Lessee. Lessor and Lessee shall each bear the cost of its appraiser and shall share equally the cost of the third appraiser. AVO/A:WP50\LEASEAHD.CFB 3/5/90 4 7-2.3 JfJ30( IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease Amendment on the date first above written. BERKELEY LAND COMPANY, A California Corporation ~y: g7 4d#l! By: 6?~ <: LESSOR By: NATIONAL BANK, By: ~VD/~:WP50\LEASEAHD.CFB 3/5/90 5 .~ - -......L.I:o..II.L...:."..~....... . . .__._ ..~J.. ..... .. LV . EXHIBIT A' ! .' . ' ! '~2.4Jf)Z?/f . . ;..... . ~ 1 .. .. ,-,~J ' ---..... ' I ......- . t... '''' .t:. , . .. That parcel of land 1n the Townsh1p of Pleasanton, County or Alameca, State of California. de~Qr1bed as fo~low8: ..... ~ ..... -Tr_ . . Beglnn1ng at the p01nt of 1ntersect1on :Jf the southeastern l1ne of the State H1ghWaV from Haywal"d. to L1ve:r~ore tilth the southwes:cern 'line "', ot the parcel ot land des1gnated as Parcel 21n the <1oed to ~ H. .B. Oxsen' record.ed June to, 1936 in Book 3317 OR, page 470 ) A la.f.ec.a . County Records ; thence along tbe last named' l1ne SOl.lth 210. i5L.east_ 18~ feet; thence north 660 45' east 25 feet to the actual point ot · co~~encement. thence south 210 15' east 90 feet. thence nor~h 680i~5' east 90 teet. thence north' 210 1;' west 90 feet; thence $outh 68Q'~5t west 90 teet to the actual point of co~ence~ent. .' 11'1........................."' A.... .t.. '. . . . .;fO ~ ~, \'i" . ~ ;:;) .' .,;A'/ ;Iff;/;'. .' ~ -...:. ,- ~. " . 1,# q'" , ~~ ,,,,}-\"e: "V ....r ~ ..' [i6. " o~ . 113 0" ~. . SbSJjl PORTION OUTLINED IN REO COMPRISES THE SlOO,SQUARE: FEET LEASED BY LESSEE .... .:: ..... ""t-,~ ~.. G ). ~' '- " , . 6"'.....-/\' ~iJr \ .' ~r,"./~ . \ 4.>> t'I' f \ CP":r. , . '. '\..., .,' .. \ ' ". \ooO~'->>.. . . All; '. . .' ..!tI.lf.t~ ~ .,.......~ .' Id~' .. ..... . ~~S",., . ' , ,.'0 i;:.' ~ 1;:. 11 11. . . ,on . " .' ~ ....... \t\ ,I ,/ 1/ " , , 'r-.... t \ ... . , ... . '" . . .. '. THill I. HOT" e..,llvey O,.Ytlr IoA"O, &lUT ,,, COM'llollO 'ROM O...T... SI<<lWI'C av TliC P'UIIl.IC\ IIECO:t:l5 . \.''!'C....n'. ......"f "'"' ~"". fill....... t,. ..t . . ........ . ....... ""l,. ., 1':'1' tll.....'. . fl' _"" "EXHIBIT A I' . I '.. .. ..:' .. I , BERKELEY LAND COMPANY, INC. 1211 NEWELL AVE.. SUITE 120 WALNUT CREEK. CA 94596 PHONE: 256-1108 ~2.S'b 1.31 January 12, 1990 Robert C. Philcox, President Community First National Bank 749 Main Street Pleasanton, CA 94566 RE: Your Revised Lease Amrnendment at Dublin Square (Received l2/19/89)h Dear Mr. Philcox: I met with Mr. Sabatte (LESSOR) and Mr. William Lane (Architect) regarding the above subject. Mr. Lane displayed his revised rendering with associated cost estimates. After study and evalu- ation, Mr. SaDatte made the following firm decisions: A. We will not expend at this time, nor in the near future, the total project cost as outlined by Mr. Lane. B. We will, in the spring of this year, complete Dublin Square visability improvements, V1Z: Landscaping, per W.Lane Uniform signage, per W.Lane . Exterior painting, perW. Lane Plumberyexterior work to satisfy prior city mandates. We have every intention of completing the above phases, as noted. C. Mr. Lane's revised rendering is available for your perusal. Your architect can use same in order to have design compatibility in your bank expansion plan. I conceive of no reason why you cannot now proceed with your ex- pansion plan. However, your revised amendment should be modified as follows: Page 2 Para.2 Add after LESSOR'S proposed modification "as outlined ip the attached letter of January 12, 1990 by Elmer H. Hansen." Page 3, it5 Change wording to include : Rent to be adjusted to Fair Market Value prior to exercise of option, etc. 22~% "'2?>Cj Robert C. Philcox Community First National Bank January l2, 1990 Page 2 Include Rent shall be subject to CPI increases every three (3) years, not to exceed 7% each time. Mr. Philcox, I feel that we are coming closer to our objectives. Call me if you have any questions at: (415)8-37-4105 (after J p.m.) (4l5)256-1l04 (Tues. Or Thurs.) Thank you for your patience. Sincerely, BERKELEY LAND COMPANY, INC. .., r ,L/. ~...../f J ~ /. . (o.L:-/-?~ ., , . 1. Elmer H. Hansen ~. EHH: j cc: F. Sabatte J. Sabatte W. Lane /90 .. . . 27 28 29 30 31 32 ~' (~. ...''':: .. '--'- -~ -,:'- i, ',., " ' ~., -"": .~- ' 'j 'I J'.b1?/1 1 LAND LEASE THIS LAND"LEASE, executed in duplic~te 'at Pi~~;a~ton, , I". .;'.. " , ." . '. ' .. " , a . corpOrat ion '. California, on April 14, 1967, between , BERKELEY LAND COMPANY/and ~HE ,;, "a,corporataon, ", ,,,,,:',,:., i FIRST NATIONAL BANK ~F PLEASANTON,/hereafter called ~~spe~~i~~lY,1 the Lessor and'Le~se~, without regard to number or gender. .~r_,_:'~"~:',' ,.~,.-.' : ,-':1;' I~ I IT IS AGREED between the parties hereto as follows: 2 3 4 5 6 7 ,', 1. . .- , i .~ DESCRIPTION OF PREMISES: The Lessor hereby leases . _~ ~ _..' ",' . I . 8 p' \ ..- ;.,. l . .: ."' .... ~ f: '~. .' '." 'i~ . l":' ~'., " I '. :~. to~e Lessee the re~l p~operty situated in the DUblin Square . _ ..~. '. 1" t'. . . -,! . .: '. 1": , . ~ '. (; 'Y Shopping Center, on Dublin Boulevard, Dublin, Alameda County, 9 Ie . ". :. 7" .... .. . . - ~.'~ ... .f. ,~,-. California, ~fo x 'gO feet, more particular'ly described in "Exhibit A" 11 V"_ 1 . attached ~ereto and made a part hereof. ~~ "" ('1 t:: . ".~ ~)_ "'-:; ;:, ~,~ 1~ 2. TERM AND RENT: The term shall be for twenty (20) , "\ "'", " . ' " '! -: . ", , " " .., ' "';,.,, . ' . years commencing on the-firstday of October, 1967, at a total '... , ' .', > .' ~. ~, " l . . ;:"t?'~ ! \ _ 'i rent or sum of TWENTY-SIX THOUSAND THREE HUNDRED TWENTY-THREE and 12 13 14 15 .. ..: ~\ i:,. '. ~ . . J. '_ . J\' 20/100 DOLLARS ($26,323.20), lawful money of the United States, 16 . -t.,-"I,' _-; ,_~.....;.:~!~ 'I, . ~ \......- which sum ~hail' be paid in installments as follows: ONE HUNDRED ,,; '..... ,I 17 NINE and 68/100 DOLLARS ($109.68) on October 1, 1961, ONE HUNDRED 18 .' '. l " NINE and 68/100 DOLLARS ($109.68) on the .first day of each and 19 " , every month thereafter until said total sum of1WENTY-SIX THOUSAND 20 '~-. ',,-1 ;;,'.': _. . .-: \ .' THREE HUNDRED TWENTY-THREE and 20/100 DOLLARS ($26,323.20) has be n 21 22 ". 'I .. .' \ .~' . paid. 3. CONDITIONS: This lease is subject to the following 23 conditions: 24 25 (a) That Lessee receives the necessary permits, . . .~" , ;. ~ l .:" '. _ ::. F:' \(' . . authority and approval of all federal, state, county an 26 r ,~_,. i '. . 1 << . ., municipal agencies having jurisdiction for the construe . ~ ~ ',' . t10n, erection, maintenance and use of a commercial . . ~ ~.. building on the real property described hereinabove. '. ~., . ~- < . . '", '< ", /!'i:: ',i. l". I (bY That the Comptroller of the Currency of the i '\ 1 '~'." '. "\ , ., .... ." . __, United States, or other bank supervisory authority '., ,; '\; . -: ;~ I .;, ;'" >,:, ' .,' , to relocate the Branch of Lessee, now t: grant a permit i ," 1 u.J. located at 11902 Dublin Boulevard, to the demised ....:~ pi-e~I~~; . l" ", (. '1 ,; 'I; I.; : ~ ~~ r\ ,-.I -1- 'r. --.-'---~~f):: r 'l" ~ 31 32 'l!$!:U~.,,,,,,"_ ~ ,. ~," " , . 1 (c) ,. That. Lessor is able to secure ,the r-eleall1E1 f+:om an' existing' deed of trust on the 'entire i.Dubl:l.n ,Square Shopping Center, as to the pertion,of said Shopping 2 s 4 Cefiter,to'be, leased by Lessee, so that :(..esseels,1.~as,- hold iriterestwill.be prior:, superior and paramount. to t:he':Uen"o'fanyfilortgaga' or deed, of..trust ,whichunay now ,'" ., '..,,', or hereeifte':f:affe'ct Lessor' s fee interest" in the'. l~ase<<l' 5 6 7 8 property o':r'any part thElreof~. In the event..~s';!lW:":i.s:,,. unable: ,to' obtain such a release, this lease shall be 9 10 null ~'d void., :;'" \ c , ~.~ 11 12 ';If' any 'of,t:he'foregoinggoverninental, agencies' shquld prohibit,' enjoin or 'penalize Lessee in the' construction, ere~~ion, mai'ritenar.lce) ''Or uSe'ofsaid premises by Lessee , ,Lesse,eshall .~ave the"option"'to ,treat :tbis.:lease as null and void. In :the,!'l.ve,nt .' ; L'e'ssoris\:iIi'able- 'to: '-Obtain .the releasEr of the portion ',Of, 't41';l pre- mi'ses . known as the Dublin Square Shopping Center, described hereinabove. to' be leased, by Lessee, 'from the exis'ting Qeeq.;of Trust on said'premises so that Lessee's leaseholdinte4e$~ as 13 14 15 16 17 18 19 contained he:redn shalt be prior, superior "and 'paraluount:,to s~:td"" 20 deed "of trust, this lease shall be null and void. Lessee shall 21 22 give notice ,in writin,g,to Lessor_ o.f any such election. undeJ;:,.this paragraph'within thirty; (iG)' days of the,date that LeSsee receive knowledge of the failure ',of any of ,the conditions containec;L,herei . Lessor agrees'to give ;nQtice to Lessee in writing within 'Sixty . , ('60)' days' from the date, of the execution, o,f this lease ~!i;lto: . whether or not.;the holder:of said,deed.of trust will subordinate to' Lessee"s' interest, as contained herein. 23 24 25 26 21 28 , 4. ' -CONSTRUCT-lONElY LESSEE: .. . 29 30 , ,. . car' Lessee"$hall at'his;.lsole cO.at'and expense}, con, struct 'on the.' demised premises., a bank building oL..2, 000 feet, mo~~ 'or less~' togE!ther with all.; necessary fixtures, and appu;':,tell~ces. Construction shafl:be diligently, prosecuted to completion, -2- _.......~......_..~-'.ol ..,.,.__.~-,~_..,__.d._,_...;:r' , . ':" II. : ' < ~ '..;' ' -, f:; t?"....m:{:::.::',t;.~:tii..~..1U<;,~...~.~/"~ '!1lIi'",:;o.,~---"'____'._'_"'-"~'.4~"''''''''''''''''""'wl,,,,,,.......... ..___.....~~P- tl>o> .~ . .~". ~ .- L_._~1lt~h;>>"'..""'im~-<<<'1~ ~ ~_"""",,",M. to.. r'" i 2Z?J'b23Vf I I p iv' ~'. . 'i ' 32 -~" ., ''\':' 1 subject to delays covered herein below, and delays. co~s~~ted to by Lessor., Any I?:z::ev:.e~;t:..iqn, ,'i'ielay, or ~toppage, d.u~, to "st.r;i~es., w~lkouta,.-!al?o:t:qispute;s, acts of God, inability,to Clbtai.n,lab~r .. '.... ..'. '" . I .' \ or matez;ials I orr~as,~nable s~sti tutes. thez:e,~o.x: ~ g.Clve~nmla~ta;: x:estrictioqs~ governmental regu~ations, goyernInenta:J.,co~tr9ts, enemy orho$~ile ,governmental action, ci~il commotion,. fire or ....'-. "".- ~ d_.,..l. . - f. . '. ". .' ~ ',J _,. f "~ .. .;t;..~';. o:ther, cl?-,,~al ~~ '" .,~d.:;9~e:r:: c~us~:;;, bey'on? ,> t;h~ ,,~eas,o~fbl~ 9~~ rf?l" of the :f..essElf7'r;!l1~ll:~xcul:le performance by it for a period equal to any such pr~ve~~to~~((:~ela.Y or ~toppa~~~, "', ",,: ,...,':c." ',': ,'" '.;, ~," ,.i' ,; ,(p~:~, J:~ ,t,h~ ,co~st-ructi~~,~~"sai,~ !,)ui~~il1~(": Le~~ee allall, C9l!lpl,y f,~i~l1,,!itH~ ill.Pp,H-c:al?le, F~deral.' s.t~t~ I ~ountYf ~p.d i, ,M~icipal, lawlL Md,),fP.l~s.J ~np reg]J.la;tio~13 o~r the, d~par~m,en,~~ and loureaus hay-ing jur,i$d~ct~o~ there9f. ,~~saor:: <:tgree$ '; t,h~J Lessee, shall 1;le ,~~D\i,!:te~:.1:9~ connE\!c~with. t,11e existing sewer ~ ~at,~F.J !'l?-d elJi!ctr+c,\ line,S. already on t;he prope~ty of the Less~r withp,ut 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 charge~ '..! ", I ~.' ; .. ~ ~....,! .1. ' , 17 ',' "''", '-: (c};:;;~t ,i$A9reed petw~e~, Less?r, arl;d, Le~seel,t,~a~ th bU~ldi~g_,tob~:2pn~f~~c~e9 by Lessee on the lan~ descr~be~ ~erein shall, remainJt~e:;p'er~o~al;p'ropertr of Lessee and ~hall n~t become a fi,x.1fur~. '" ""::'. 18' 19 20 21 22 23 ",.F ';' ~~ .:. ~'! " --\.,'. .;...~..;.~,-:--." ~."~~ -....:..~... ',,~,!o;..,,~ITLE, A,ND SUBORDINATIONl .:Lessor rep,res~~t~ ,an,d wa;r;:raqts:,tp,C!<.t:,:J~"P.o,.l~~.tgl;e to. said re~l pro.perty and }~a.s. ,i!l,lthori ty, t:q, e,p;t~~,iqto ,1;Q~ ,lease herein. ': Lessee desires to obtain a titl~ insurapce :polici:' ;with respect 1::.9,1t8: ;t.e~s~ho1d esta,te. Ti,t.le.;to Lessee's leasehoJ,d estate shall be deliver~d to. 24 25 26 it. frtjle, and ,cleaJ:' "except.tng for covenants f <?ondit;,oDs, res.triqt<.ton~,'.le<!,semf!ll;1,tseJ;'1ghts and r~ghtt:: Of way o~ reco~d, ,}ll ,Of : ,Which (shall be. sttbject;to ,the, app'r;ov~li?f ,Les,see wi.thip fourteen (14);. ~ays 4fter receipt o.f a pre+!.11:t!11.;\,fY U tl~ "re~Qrt on the abo~e-descri~~,c;l,prerni,ses., Title ,shal1,~lso be"sq~j~ct " tOCUl;'rent,pa;i,d, rea;l...property taxes. Tit~e ,ins1;1rance, if obtalne 27 28 29 30 31 by Lessee ,iJh~ll. :pe 3~~,Jtf!l expense. 73- '[ ~ " ~. ' ~....----,.". ~ '-.......- ..-_.>....,.~....._~ ll~::;.;.:~"-'-.-....;,.:;..,~,.;:-,...~_.;.~~...-',';:,~"-,,.....,'%,~__ ."""~.....~#-- ?2Pr Vb2?fJ . ~ ,)'""ll~ ~~! ..~ E '. ~, /1. t' .'J' fl' . '>~"- ..... '.' 1 6. ,T,A.XESt ,; Lessee shall', in addition to all <if the sum 2 a9reed ,to ,be, paid ',by', it; under 'this lease " pay all' ':teal" and' 3 personal, prQperty~ taxes that shall i dur'ing thetenri~ of this "'lease, 4 be asseSf5ep.aqalnst:the demised' premlst'ls ~ ,: 'Lessor' and, 'Lessee" shal " j, ~.~ . r.:.... ! .:::\:-,. 5 each initiate pro-eeedings :with the ASi3essor'6'f~thEF;eoikty;!bf 6 Alc'!Utleda to, seg:re9ate:; the: demised premises fr6iu the area -kn6wn as 7 the;DubHnrSquau,tso thi\t':a separatEF~tax'"flUI':'will'.Ib~ 'received 8 for tbe~demhed prem~sa~~ ':',' ;,~.~~,. ,.t ~,'~_:I:.J,)~ ',. ::'.~~r{;h(1$\.' 9 '-' '..' ""., Hn PARK:tNG;:~P"Itis "ui'lderst6od arid' aqreed"\that the Q~1in Squ~r61 ::'Sl1opp1ng~Centei:',,;ls 'presently' paved, 'liqht:ed'and marked with,,:an,..adequateFparlHng area. ,'That '.said2'parking'flifea::Hi' operawl;l"al\d,-'maintai~ed ;'by 'Lessor and 'cis : for ,'ehcit' parking -'.sf ~..: '. lii.uto,l'llob.i,l,es- rO.f.-ipa.trons, -Q,f,\the ,Dublin Square 'ShOPPing Centei:"i; '~in- ~ ; cl,u.diQq, Lelil,$.tte .~(,: ~a.$e~',$';patronsi s11401.1 have 'the ',:tigh.e,."to'Jus~ ''the parking "area ,of, the tDublin :.:Square Shopping, Center ' for; Customer C>>:, parki,n,g ;~il}: adq.i't~on,tCll'rtihe' port'ioo: ' ti'f the DUbHn'SquareShopping Cente.t:' that is.yleaaed.J3y. ii,tnherein'. ; 'Leissea,llif agents i"employe~is and office.t:'s ::Shall:'.uot."use ,the DUblin Square Sh6pp:!.ri<j Centerhe": except in:-the,even t,) tthat:: such an area may ':be' ee't" aside" fbr:i:Hich PUrpose by,.; r.essor,.1,,:~ 'NQ:kR;ia~"-:i'B--tll4e-J.-ea.se:"B.a.a-li1-':5!'e:S-trie4!:_'&.i . '.:> ),,~ p..oJU.b.U:;... .t.e"Q'e_'.f"~m-J.mPG-il4R~-aaj"_',fea€e;..EH!'_ e't~e-l'':''.aafiie~''7:'''':bl.e.a.u~ '., Iv\,{ ..b~g_:W~J....im.iQ.tJ.QR_,,"'l;.J,EJ;..:;e..eetiElfl-e-€':"64.~G_-a..FEI'WUi_-t.ae_~.ilt4:eA '.', o.f_ .t..be;...Q.u.b.liJ),:..Sq-lia-ire-~fteflP'ing_ €eft'te-ir.:...;t,ea.se4:.. ~:"'i4t~ (' ., Operatihg and'maintenance costs for any and all existing parking'arEl~SI"'as:of ,the dat~ of the exe'c'Ution of 4:hls leas~' -shall be:'J;lorne.iby:: Lessor,:, and shall includ~' without ,<:,'. ".,C", l,i,lllitlltion.' lahar ,..in$lu::ance ,;,' taxes, materials ,:' supplies-ana:' .all othE;!,r' <<;:ost~, of Ope.ra.tinq and j repairing, lightinq',cleaning,i L t, .' pain:ting',.. J;'emov;ing, or' 'rubbish" or- 'debris, policing_ and- inspe'c'ting.' 8. '~,:,:. Lessor, shall not. use, or permit', Or allow any 10 11 12 13 14 15 16 17 18 19 20 ill - . 22 23 34 ~5 ~6 ',7 8 9 o 'oJ, 1 other person to ,use;, any portion,of the'Dublin:Square Shopping'" ,Center On which the demised premises are a part, for,a banJL " -4- I Z3Dq}31 ~', i. ~, t I v. "'" "--"-~-'~'r' ~~~"::;~;".';~;;.,;,;:,:;...'<...~~~",,-,_..~~ ._.-......._-,--..~-.....-.....~....._.....,.. ~~ -~:;'1 'f ,- ~~. .~_.- _II ~.~~..'il'~!llilWll!!!!!i!!\i!P&!'ll.IUrlli IT < ~" 1 d, f' I '.~~ 24 25 26 27 28 29 30 31 32 1 2 :3 r 2911>?3t1 J l (tL.Ll t:t~r:~:' ASSIGNMENT' AND'SUBLE'l'TING: ,Lessee 'shall, have ; the right';1:b"(a19sfgn\, !tnoftqage orhYPbthecate th1s' lease;. 'or any in- teres't,tfn:this'!~l'easej':or permit the 'use :of! the 'prentises'by"any 4 person 'or; ~rllllons other 'than1.essee ~ or ',sublet the <premises. or or its assigns pari ;'the'te'of I'tprovided'1:.hat, in the 'event JLesNe!should ,cea-s_ to . 5 6 c'ond'uct'1:lie"'ope'2tad,ons of"abank', on 'the :delilignated ';premilll'es;- " ':, c Lessor ';'shallhavetlhe;opt!on :;"1:;0 purchase Lessee '. bUi,'lding in accordance' with.lPa:raljraphlO "pertaining. to 9Pt:icm- ;'~!purchase building:'" In-th~i e~nt Lessor edoes l.'lot;,elect'to exexcise its. option to purCha:s.j<f..essee' e 'buildincJ'j';: and ',Lessee isunabllliL.tO( , ass!9n r~r "'iJUbl4kitf<said ~premil!lel\1l ,on, reaaonable ,terms, ,for ~the :purpo of '8. barik~ ,Le&i$etFlIIii1:'IlIUlIiqll or, ' sUblet..',all-;-l or. any, paxt:of,Said premisEis I'providing' Such-assignment., or':-sUblettinq ~~J.liJ:'to, a;busines that-does'not: competewith'can · existing 'busine8s',in: 8ald:~DUblin' , squarei"'Sho~pln9" Cerif:et'G' "NO part '-Of the "lEias.a~ promisesr shall'.' bG ' Sublet;; for....a 'put:~se"'whlch is : unlawful', :aanqexous, noxious or Offensive. Any,,\suCI'i':assigrimeflt. or l!Iublettinq".hal1 :not'bei'for, the conduct'of A'business that would directly compete'with',that 0 another"tenant in~,the'DUblin Square',Shoppinq,;Center....' NO'-llIuch ,;,', asslgnniant10r 'sUblettirtg' shall 'operate to:;'re,Heve. thea..assiqninq party of any"obliqa.tion.ot",liability arising, under the terms of this lease;'\Ullel.il~;,t.~~ other party h~reto ehaU specifica.J.1Ydll.gree in 'writing' that:' SUCh,' p'X'bposed 'assignment shall~ so release,. the 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 aSsiqninlj': or subletting party. 10. OPTION 'TO: PURCHASE BUILDING~:" In' the event Leuee should cEulse :'-to' C'Ohduot 1:he operations bf a'.bl'Ulk, on the-" demised premiSes, Lessee Ishall" give wdttennotice ~o Lessor., Lei3ao:r,. w!-thin thifty;i(30):Hdayef' from 'tne1date of receipt of,; such wr.1tten noti'cEi~frOin' LeisllIe.,'/ shan.- bave. the option. 'to: purch.sethe' buildin 'atLessee'l'S 'Unam.orthedi CO$ts~:" In' the event Lessor,shou-ld <1'.\, ' purchase"the'bU1la.iriq~ "this 'lease"shal1:' terminate. : In: the ;event .- Lessor'reject2l';'sa'i'dJ ,op'tfon to purohase . this lease shall 'continue ws- 'Ii _. '..-'-~~'.~"~"'-"""'.'~lMi#~,' ....... >'i!: :!' t'l ! ;" yo ;: I 32 -S"UII jJ9'.rlloG ~J.Ui :1 2~~q 1 2 in, full; force; anc4.,!;lf't:ect 1 :'and Lessee may lllss.i,gn;or I Sl1Ql,'I;d,n accordanoe wi t.ll" P~u.agral?ll 9 herein, pertaining :. to as!!li9'UIAent anc;t. l$ubletting; c:;L~UI.Oi abaJ,l further have tb~ h option to purchase Lessee I s buildingt~t Lessee ',$ unamortbed.,go~t ,11.} ttlle),eVlI'nt;,;,of de,truction i,or. condemnation ,;~s iprovideci.,in p.aJ;'ag~apQ.lb14\ and ,13 ,..,. Sbouli:lf.LesI54!\e';~11ilQ~rto:'terminate this lease under the provisions of said paragraphs..,;" J;J:;l t.he event Lessoridoet;! .not eleot:tQ;. " " exercise, itfJ_ opt.ion . to '~purchase under said, paragraph.l!!, L~ssee, ",: shall~,have ',the;lrigh1:;.i,to, sell or .remOVe !(laid buUding. "In Quqh,_ event,df"Lessee7d98$ ;,not sell or ~emOYe lil.aici !:>ui:j.ding, then ~t,..1 shall become t.he p;t;Oper~y ;,of Lessor;:.EU;Ld, Leli'lsor agrees t:.O'.~nd~i and. saye".Lessee, h$rmless froI\! and against, any,.1and, a,1,J,. cla11l.ls, arising! from,-..Lelitseets:'(aiJ.,wre to, remove said p\:!iJ,qin~J::f:;9m said 1 by..any pet:'on 01;'G1;Q.-~y property ,:ilnd f~o!ll',and a9ainst',~U,90~~s, exp~nses, and..Liap~J,i t:ies whicll may, })e h ingprred.. in Or ilLc;:onnecti 3 4 5 6 7 8 9 10 11 12 13 14 15 16 witn, any.;sUQ.~?'9J.dl'!1 Qtt:,p~oq~eqing broughtth~~eQn. ,.' . .j.,.... . 17 "" _..,',:.,~ b~Y':;~!Jqhi.ll\leptionJ.l;>y dt.~er_p~rj;.Y"O~~4,bE'l:maqf,! by w~ i tt.~m ,~p~~c~: t.r::9~: IO{l~f,p~r~y ,to,. the , otll~r, ,.on OJ;' be f9re, th~!~y (30) ::days \11.f:.t.l,lI;' ;~e\.q~t~:;.;Qt~ the, mutual a9ree\'ltermi:natiQg,~gt,,1the lea~!!,or, tl}~'lna~u;t:{il~l:"xR;I.~ai;j,on Qf the t:.e~llu)f the,leoj1lse~Qr the r~Jlll\w~l ~:j.,~ ~~e Qpt;Q~ t.o :ri!;lne~I',i.s"exet:oised"l;>y Le/3see., :',:" "',' '. L',~'!rlhd;U~l;3:.*~I.jl;S,;'...~eSl':leeshall pay f9:z:;I;111.,wa1;e~'t- qas, ijE'latH,e~ectrJ..j;:i~Y<,,~4 P9w~r"",l)icb,during" j:;,~e termot .tbh';'4.I:!lU~... 18 19 20. 21 22 23 24 25 llli;\y, be fu;:ni !1iIlledc to t Qr! ,u~ed, on i the demised, prel!lises, : . , \.:,:,..\ 11 ,;,;. -:~ t ~:_; . '. ,-,' l~.t,i,COl!-lPEtfijAT;J:ON'OF PREMISES: In the event of any taking or damag-, Qtull:i.",or:.any part'Qfi,the:leased,premiEl'~ pr th~ !?ui:LQ.ing,,:.o~ r:mY,::~~rt@~lilst\ therein.""by r€las~m ,of any.exe;rQi.se,o:l; ',U tl}e _PQw~i:': o!f,~~il\~J:!t. qom~;!.Jl' wh~th~r:py a condemnation ,pr0geE'l~iP9 Qr:,othe~i~,;;;o;:G@Y, transfer of all or any part of the leased premises or the;)b!J~~d~1)gl!" Of ' any, intE,lrest therein ,mad~ t.tl avo~Q- ance :"lP'f ; a,Il >'4il~et;:'9;ipl~s~1: the power < of ;, eminent clomain (lillJ.!oJ; tJ!./;1l.' fa e- gg:j.nq .I;?€li~g'igeJ:'~~n,,, ,r,fe;-~ed, to, ~S '~apprgpd~tionU,.p~iol'dt~hQr 26 2,7 28, 29' 30 3]; -t;j,.. 'to . <....,.~- -~- ---'[1\ p i: Z3~t>l~q 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 during i,t~~ ::~erm .her.~Qf , (or diU1Y"extensi.oll~oJ: 'renewal. :.,thElreof)l, the l:ig,ht~f~d R-bl~.q~t;,iQns :.of ,Lessor -and Lessee .withrespect to~such ~ppr,()p'riat.A~nJ'AAal~.bea~ ;hereafter.,provi:ded. "'i .,.,Y.~c.':',.J,) ..r r,::',;:J.;1{e,:,:r f.'i: t~ t;l).(a event o;Lany approprution:,ofra]:l'of,"tilie, l,easedpr~:i.IlJ.es and building, this lease shall terminate as of the date of sUC;:):ls.apPJ;'Opriat:i;o1l.. ,;.:...,'.... "C c,',' ~\l','n::' Ol ~ f-'","c";:t: i:':'l':l:'l1:t~,:a c,iIn:'the"event of, ,an appro-p.riatianjofde-ss than. all 0 1;.4~.. J,,~as~d,;p..relll-k~e~:i, this ('+ease ,shall. ,,Continue in full 'forclOr and :l ' ~ff~c:t;,.e}~,cep1;:;:,Jll!l ;.hereafter . provided ,in 'this 'section:.): .The d~ased P..r~s~s"shal.Ll1e reduced.~by the port.ion. ,appropriateCl..,'~ 'The total J,.e~~ rep,t~l' :~or, '$~: ,remainder of the;rte~ :immedlately 'prior: 'to approp:r;;I.~t,;l.Pl\ 1\l1lallbe"i\bated in ,an amount which ,'beuJiLin:/,the ''; s.tuUe< ir~1t,i.o,,;to. ~uchj;otal leaserent.alas, the amount; 'of the :i. entire,A\t{~..d'-r: ,inql,uq,ing :,oo}llpensa,tJ,oni,\damages'; ,and,dnteres'1:;,;,' if: >" ~y." .~4~1:f{i:~,:~1;~spe,ct t,o tne cs.ppropriation. '(inoludinglany "1 ,,'... se~~.I:',~,q~j~~gliUS)il bea,rs ,to ,the, valUe: of the entir-e.:l>eased", premi.~!3i,~ Jmd~(bp.ilcU,n9', immediately prior t.o' :the..app:ropriation,...,~' If,-, t.A~, approp';::).8,tion' shall either (i) render' more ,than.., twilIitv~ , per ,Qen.t;.A. :2Q 9!l of, :the total gr,ound' floor area, of' ,thia:,buiJ:dinq ,,' on ,tp.e, :J.eASed,,,premisesunava.ilable or UIitEmantable..-:or '(il) sub- stan:tially.,-,impair "the, use of the leased premises by Lessee, then in either such case, Lessee shall hav6!therighr to eleotto termina~:' ttlls;'lease., Any such' election shall,: be made. by written' not,ice"L~rom .x.e-ssee to. LeSSor on or before, thirty ,(30)"a.ays 'after th~" date ,pf:J*e, appropriat:.!ou. ),'d'~ .." " ..".. , ",'''' , ,,",J,f\. this: le!"se is terminated pursuant to this section Lessee sha;U be entitled to,the award,. for:, any improvements, to the leas~d,! P~~uV.SElls-Jmadla. by, Lessee plus t.he, , award,;,for"the' "interest of. Leslile~: ~1l~ thi$""lease. ,,' _ " '.,~, ' .. " ,. .:,) .+rk the event of, any, appropriatipnof 'less{; than. all of the,le~sed;premises and if. this lease is not terminated pur- suant to tp.i$ sect~on:; Lessee shall be. entitled to the_ award for -7.-;- 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 v. i' ;1 \ 234- on1.-"">4 1 any,dmprovementsmade by Lessee ,to the partian of ,.tl)e' lease4 premi$esxappropriated plu!'f. the.,award' far, the/inteJ;:~,t::Qf Lesl!IEle. J Lessee,'shall~:have, the right to, elect' to,ma15e any;,restQration of t ,e :::::::::::::::::~.l~~:~d prem~~~:, ,~eQ~~S~ ~~t~t":e~b". ~e::v~re,:en: '~t.:"Qo~':Oa'p~ ~rt et4aJ 1..,)',: ,';.~,d l,13.'ldDES'rRUC'rION OF PREMISES I' ,In: .. ..... ... destructionc;ofd;he said building during: the ,said.term; fro.m any~, 2 3 4 5 e 7 8 cause~ Lesse~ may.^at, its optian, repair"the li'lame",but.'sucp.,partia destruction shalkili. no. wise annul or. void this:: lease~ i except, that, Lessee shall:-be, entitled. to. a ,proportionat.e,.,de4uction' Of, ren whiJ.e:, auchA-repairs 'are, beinq,made,; 5ucb proportionate deduction 9 10 11 12 to 1'>e based upbn' the extent to, which the, making of,; such. repairs shall interfere. with{ the business carried~ on, by'; Lessee in the',' , ' said premises:., ;Lessee may,' at its option, make',su~h.repairs with n a'reaaonable;. time,_,.but in 'no event mare.. than six (6) months" this lease- continuing dn, full: force and effect and,. the ,rent ,tQ ,be'; proport~of1~1:t1l1y "rebated as afore!ilaid, in;, this, paragraph p~ovided. In'~ thee;, event.., that ,Lessee does not so elect to, ma.:!te such repairs, I which oannot'be'made in six (6) months or such,repairs canno~ be, I 13 14 15 16 17 18 19 20 made under,:suph ,laws. and regulationlll,: this lease may be, t~~inate at the: optiofr'of eit.her. party,. ',' ," t':,;' ;,.,,-::,In respect to any partial, destruction,~ which"Lessor s obligated: to "repair or may, elect to repair under the, tepns,.of; thi paragraph, ,the" provisions of Section 1932, Subdivision 2, and of Section 1933, su.bdi vision' 4, of the Civil. Code of. the State:, of 21 22 23 24 25 26 California are,waived by Lessee. ,". J..i. '~''',' 27 : ;':,:J.t;!<l.4.;;, FIRE', INSURANCE: Lessor agrees that,', thet proceeds ofr any;~'fi:re':and: extended coverage insurance policy, ,on, \wpiOh, Legste has insur:e,d' .said; premises, shall be payable to' ,Lessee" ,and Lessor waives' .the ~rightto' claim, ,the proceeds of any porti,on"thereof of any. such insurance policies. 28 29 30 31 32 15,. <LIABILITY INSURANCE:" This ..lea!3e ,is ,ma.pe~ ,upon: t:he -8- v. 'i~~ItI,_ I' \' , " 1. express"condition that Lessor is to 'be free from all l'iability 2~G1J231 2, and; claim" for, damages' by reason of any injury to any peraon or I perpons, including Lessee, or property of any kind whatsoever and! to whomsoever b~l..C)rt91t19, including Lessee, from ,any cause'.or I causes, wpatsoev!,!r",wpile in, upon,' or in any way connected ,with :5 4", 5 6, the,said:.leased land, except the';sidewalks and/or;parking"area adjacent" thereto,' during the term of, this "lease or any' extension.." hereof.:o>>:2~tl.y('occupancy. hereunder, " Lessee hereby, covenanting and aqreein9'~~ to indemnify, and save harmless Lessor from' all: liabili ty , 10813 ",cost'i;;/U\d.;obl~gations on account of or arising out of 'any 7" 8 9. 10 11 such injurie~ or losses, however occurring. _, .., '-: J..!-:: Lessee' further agrees to 'take out and keep in force during,the life ,hereof at Lessee's:expensa public liability 12. 13 14 insurance, to' protect, against any liability to the publioinoident to the use,of or, resulting from any accident occurring in or aboul said premi$as, the',li.abilit:y Under such'insurance to be not 'less than $ 2bO;000.00 - " , for' anyone person injU1"ed, or :? 200.000.00 C', : i for"any: one accident, or $~OO,ooo.oo for property damage. :' I These, poJ,.icies' shall insure the contingentliabili ty of Lessor, arid ! Lessee, agrees i "if Lessee does not keep such insurarice in full' I . force ;,arid "effect the Lessor may take out the necessary insurance I and,pay,the premium and ' the repaying thereof shall be deemed to I b~part'dof ,:the,rental: and payment as such on the next day upon 15 16 17 18 19 20 21 2Z 23 24, which rent becomes due. , ~l I, ! ~ 25 , 1:', 1,6.. ,QUIET ENJOYMENT: ,The Lessee, upon the payment. of 26 the.rent,hereinreserved and upon the performance~of'all-t.he ,t.e,rm of .this..,.leass, shall at all times ,during the lease "term arid durin any ::extensh:m ; or renewal, tertil'peaceablyand' qufetly: en joy-; the . leased,p:roperti1,with free access thereto withoutartY;'distur15ance from:the Lessor ,or from any other person claiming through the 27 28 29 30 31 ." ; \ ' :~ '-.. - ;: '. ~, Lessor. 32 Lessee shall procure and, pay 'for alf" ", ~17. ,. LICENSES: -9- v. 2?>f41JZ3~ l,icenses and ,permits needed in .connection with the' 'operati~n of i ,qUSineli1f, : and ,shall keep'thi-'business 'open on 'ail 'regul.'ar; 'busiri~s ~days., ;",.', r,C':: . 'r '-,' ",.' '~r' 'h ,~.Cl:,;,.i," ,,:,18,.: COMPLIANCE, WITH LAWS: The' Lessee""s'h~il,'at is' sole:,expense~:, promp.tlycomply wi tit 'all presknt' ahd fut'u're"l~ws, regulations''or biles, of any county;;' st'ate,' fed~rar, ~n~d' oh~:~' governmental author.ity and any bure~u'and'departm~n~~thef~~f whi~l may:be appl'icable to the leased property~' The Lessee~ shall 1i~ve the;'right... after' written notice to'the 'Lesso'r to!'bbnt~st by" , .. ,1." .\.._ _~. appropriate~legal~proceedlngs,dlligently conducted'in good faith the- validi t.ysbr' application of: any such: laiw', reguiation; 0:':: rule, and:;.to~'delay;'comp1iance\,therewith pehding the'pros~cutiort<'of such proceedings, '.,provided not civil or criminal liabiHty' woiild' Be; in. curz:edbY;l,the Lessor and' no lien' or 'charge would :be imposed upon ~ I" { " . ~ or.\~atisfied:Lout;,6f :the leased property 'byre'asoif'of' such delay. ',." ',;,:19.[~:,'ATTORNEY"SFEES:' In 1he event' of "the biil1-girlg':bf any 'action. ,by,;either party heretdas, \:it;fainst the 'otherhe'reori"br hereunder, 'or by 'reason ',or toe breach oi"ariy~co';enant-:or;;oriditior on1the .part:of, the other party', 'or arisingtnlt' of this lease," ther and",in. that,. syent the par,ty'in whose 'favor final judgment shall b~ entered shall be: en'Ut1ed to have' and recover' 6Caii'dfrom' the othe reasonable attorney fS' fees to' be fixed' by' the' coliri: wh'e're:i.n' such judgment,- shal'lh:be entered.' {, : 20.;NOTICE: i Any notice under thiS"leaseinust b~ in writing aIld'must'"be' sent' by regist~red or certified mail to the last address of the party to whom the,n<;>t~c~ is to b~ ,giyen, a~ :<, .;:;~;::~..sY:."')>:.(" ...::1 ~..,. " . , ., ..~:.,~<:"~. r'~;'i' '" ..1... -" ' des1gnated1:i>ynsuch party in writing ~ "The 'Lessor hereby designates its address ' as: B_EA~K~LEYLAN.D, COMPANY.",,4550, San Pablo-Avenue,.. Oakland, California 94608. The Lessee hereby designates its address as: --"P.O: Box 220, Pleasanton, California., -: ';' 2l. OPTION TO RENEW: Lessee is hereby granted an option to renew this lease for a further period of twenty (20) -lO-' ~ ~I!ll !~ia~~j~;1 11 -'illl~.n ,,';i;-~"R"Y'''if-~h.i.~'''- ~~ , 2:'1~231 ~. .... ~...t' f'.l :;..... 1 ~ '"1"_ ;_' ~.... -, ~ l' . . - y-. q, - .. ' - :~ _ _,Y,~~'li.f!.t.l~eP~.i~n<!.; ~~_~r,~t~e ~xJ?i~atiOn 'Of ,the"oi'lginalterm at a '2 ::;-e.!ltal of" QN~:.HUNDRED FIFTY-,THREE~P.q.,,~6/1Q9:_D<;>;LLA~ 0~$153. 56) pel :,.. :)........ a:b:~'.'l:.y :::~.c.:;.~ :-.:~.I~,":.. > . -, ". J.~.;:". i'l' ~'.~.:.' t.i(' ::'-.... ,-, .........- ~i.'., ~'r:moritlii "but. otlierwise, upon .tne same', terms. and"conditions -as herein ~':;J' :~.,,}~:~~~~~~c~~;~,:..,:.::,:,,;,< ";',3~,.-7 Co': ,<".":<",,:..i";:,, ;~ :~;c5lP.t:~,tP.~~ l~?iI'{~Pt'i j:h~, pp~ion 1:;o',fepew. '. ~rp:;t~ n.?t,~fe~'6f ,5 "lets~~~! s~;~~~~~oP: 1;~ ~re~~w,'~i~ 'l~a;~ ~ti~.l}~~ ~~':91.vi~~ ~~~ : LellSor ,,_ 9;) t'~ct '~;.) thG a{:~~c -:. :".'.;.;.. < ~ "(.;~.;,-~~:'.'; ;''':-;". 6 at least sixty ,(60) days prior to the expiration of this lease. ,22. ARBITRATION: In the event of any dispute between Lessor and Lessee relative to the provisions of this agreement, they shall e~ch select an arbitrator, the two arbitrators so selected shall select a third arbitrator and the three arbitrator "j.:;,"...;.J' . t' .' '\ '-'.~:':'" so se~~cted~shall hear and~e~ermine the cont~oversy and their '1' ~/. . ,r .. dec'is1.on thereon shalt be final and binding upon both Lessor .. ,'.J-rt;~/->~ and LesB~~~~bo s~all bear tn~ cost of sud~ arbitration equally ,:;<:",-<'~ ...........,'. , . . , ,/~et\e~Fl1em. \ Upo~., notice by ,either party ~:hat: he desires to have\a_:~~tter':~bitr~ted, t~e other party shaf'). within five (5) days th~re)lfe~notifY th~ p:fty reque~ting such arbitration as ,~\~.... . " .. \ ,~\ to the \pam~~~~~n~ddrQS~...?,f :~is :arb.i~~i11S9,~. Thearbi,t:ration shal: \ T'''' 'J" ,,' ' ,-- ,'-- ..'C-' .. --' \.. .. 'b~ ))eard' ari.d~'compietedwHhrn ~hrrty':(-30).:'aa1s fr~ t.he date the /'..',;t.. \ ' ' :":first notice of request to arbitrate was depo;?ited in the United \~~ ~ ~:::' States maiJ:~,or personally delivered to, the :other party. \~'s,. '" : r. 23~< SUCCESSORS AND ASSIGNS: This agreement shall bind and inure to'the benefit of ,the succ~ssors, assigns, personal t; '..' .' ~ representa,riv~~; heirs'an:d legatees of the respective parties. IN WITNESS WHEREOF, the parties have h~reunto affixed their signatures the l4th day of April, 1967. ... ..r. r.. I., ~- " ~ >' 'I"" " ,~'.. BERKELEY LAND COM1? ANY, a corporation 1-; , :{.. jJ fj' -g-;/ /C/ By dC.r; {Aa. ''Ii" 4?, "l".,e::J' I .' I //' c1 /' I' ~ \' " ' ":,./ / ..., , ;., '/ I' " BY: / " . < 1:/1/. 4h'{/ I '(I :1 '~[d"" LESSOR "I1H'tc FIRST ijATIONAL BANK OF PLEAS1U\ a cprporat~on, '."By..~~)(~.,.'i~ 1~~1k:,\\i"'~ , /' \\ .. \ ' presi~nt By '( VI,,' ' Vice presidt9- & Cashiel,] -ll- :1 Ii ~~1fJ231 .--.,,,,.;;,...~,,,,~~(,,.. . ~. That parcel of land in the Township of Pleasanton. County of Alameda, st~te of California. de~cribed as follows: Beginning at the point of intersection of the southeastern line of the state Highway from Hayward to Liverr.lore with the southwes,tern '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 RecoJ:'ds; thence along the last named line south 210 15' east 25 feet'; tMnce north 680 45' east 25 feet to the actual poir.t of co~~encement; thence south 210 15' east 90 feet; thence north 68~;M5' east 90 feet; thence north 210 15' west 90 feet; thence so~th 680'45' west go feet to the actual point of commencement. .;50 "" '" .. Iii fl WI ~ {{fit' Otfl ' i.:'~ " . b ";J ,< '. c......~ ~ \so o --\ "L':l:: ~t~ ...., 0 '\ "'- 't~i.:.. \~ ....,\'l ""- ~'<\~' ~:..'- OUTLINED IN RED COMPRISES ~~ LEASED BY LESSEE ~ ~1-/r\ ,..,;/0 \ _ ~~ r \ \'" ~-::-,.! \ ~~ \ . ,c,--- '" I A.!/~ ;S~~ <. 'I ,"..,. '" ~ .[3.?' ...... !; ~~; .t1l~ I", ~1J.jO ~ ~~ 'C\ 1:> ~\ ~ "r, ,,(,.4, ~.I ,,}.:l {t ~",... r1 /, TH'lU r8 NOr"" aURVCV o,.,.P.1: LAN:), BUT 1'- co."'i":L..E:)FRO~ CAT)" EHOWN BV THi: PUBL.IC Ft.ECO~:)S \"r.c:"'o;'~'" -,~., '- ~ r'll ~ . ~ ..... ... ... I l:fll d. .'''' "EXHIBIT A" , I CITY OF DUBLIN BUDGET CHANGE FORM Z3QugY7 CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: X From Unappropriated Reserves FUND 310 (If Other than General Fund, Fund No - From New Revenues From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity Between Departments (City Council Approval Required) Other Name: Name: Public Facility Fee I Park Dedication $7,300,000 Fund - Dublin Historic Park - Land Acquisition Account #: Name: Account #: 310-95556-750-010 Name: General Fund - Dublin Historic Park - Land Acquisition $ 600,000 Account #: Name: Account#: 001-95556-750-010 Name: Account #: Name: Account #: Name: Account #: Name: Account #: Name: Account #: Account #: ASD/Fin Mgr Date: 7" ;)o/'t1?t Signature REASON FOR BUDGET CHANGE ENTRY: At the City Council meeting on May 1, 2007, the City Council will consider approval of an agreement to purchase property to be used for the Dublin Historic Park in accordance with the Master Plan, This funding will accommodate the funding necessary to purchase the property, Finance Note - Funding Sources Within Public Facility Fee / Park Dedication Fund (1) Residential Park Dedication Fees from project~ outside Eastern Dublin, (2) PFF Community Park Land; and Public Facility Fee Fund Community Park Improvement; Community Park Buildings fees collected from residential & non-residential projects outside Eastern Dublin, (3) - Community Park Land Fees to be generated from PFF as a result of dedication of Community Park Land in excess of amounts credited under the PFF Program Credits pursuant to an agreement with the Lin Family for the Dublin Ranch Community Park dated March 15, 2005 - See, l(a)(ii). City Manager: Date: t/3 oj 6J " As approved at the City Council Meeting on: Date: Mayor: Date: Signature Posted By: Date: Signature H:\CC.FORMSIFORM.budgel change,doc Attachment # ~