HomeMy WebLinkAboutGittins, Larry; 1996-06-01;”““RTE p= E/ $=Jf=J$y~ ’CJyy --TI
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SHOPPING CENTER LEA:
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B e t w eeri
LARRY GITTINS, RECEIVER FOR
POINSETTIA VILLAGE
SHOPPING CENTER
AS LAL~DLORD,
arid
-.
THE CITY OF CARLSBAD
AS TENANT
1 0 0
I)ASIC LEASE PROVISIONS
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The following Basic Lcasc Provisions constitutc a part of tllc Shopping Ccntcr Lcasc tc arc attachcd.
1. Landlord: Larry Gittins , Receivcr for I-'oinsel;tia Village.
2. A. Tcna n 1:
1 THE CITY OF CARLSBAD
B. Tcnant's Tradc Nanic (if dirfcrcnt from nanic listcd in Itcni 2.A.)
3. P r c m i s cs:
A. Arca: Approximatcly 1,150 squarc rcct of Gross Floor Arca.
B. Locarion: Thc Prcmiscs arc locatcd as shown on tlic sitc pIan for P( VILLAGE SI-1OPPING CENTER (Ihc 'Shopping Ccntcr") attachc Exhibit "A."
C. Addrcss: 7160 Avcnida Encinas, Suitc IO3 , Carlsbad, CA 92C
Lcasc Tcrm: Thc tcrm of this Lcasc shall bc 2 ycars and 0 months.
Anticipatcd Corumcnccrncnt Datc:
4.
Thc Prcmiscs arc bcing lcascd in "as is" condition, with tfic
Comnicnccmcnt Dntc bcing June 1, 1996
Thc Prcniiscs arc bcing Icascd subjcct to Landlord's complction of c
dcscribcd in thc List of Irnprovcmcnts attachcd hcrcto 3s Exhibit " Anticipated Comrncnccmcnt Datc bcing
6. Rcn t:
A. Basc Monthly Rcntnl: $ 1,150.00 pcr month, subjcct to ad. providcd in Articlc 3. No share of Property Tax, Insurance,
maintenance. B. Pcrccnlagc Rcnt: N/A 'K, of Tcnclnt's Gross SaIcs, lcss thc amot Monthly Iicntal pspablc for thc same pcriod (as providcd in Para Pcrccntagc Rcnt shall bc conipurcd on a monthly basis and payablc I or bcrorc tlic loth d-ay or cacti month, with appropriatc prorations for
month(s) during thc Lcasc Tcrm.
7. First Month's Basc Monthly Rcntal: $ 1,150.00 , payable in cash whcn possc: ff
Prcniiscs is dclivcrcd 10 Tcnani.
8. Sccurity Dcposil: .$ 1.150. 00 , pnyablc in cash whcn Tcnant cxccu[cs this
9. Pcrmittcd USC: A Cdtrans Office
IO. Addrcsscs for Noticcs and Paymcnt of Rcnt:
A. If to Landlord: Poinsettia Village Shopping Center
7130 Avenida Encinas, Suitc 202
Carlsbad, CA 92003
Attention: Djck F~O, cPM,Property M
(619) 231-2727
Patty Cratty
y of Carlsbad
~~,-iw ra 97nn9
B. IT to Tcnant:
Dick Fialho a Asscssor f'arccl No.: 214-430-18
Tcnsni
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12.
Landlord's Initials
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. INDEX '1'0
S 1.1 0 i'P I N C C ENTE I< LE AS E
).I.
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1 . PREMISES ..........................................................
1.1. Dcmis .....................................................
J . 2. Construction ...............................................
2 . T.I,RM ..............................................................
2.2. Dclau in Coninicnccmcnt .....................................
3 . - RENT ..............................................................
13n~ Mon t 11 I Y I< cn til 1
Adiusfmcnts to Ihsc Monlllly Rental ...........................
2.1. Gcncrnl ...................................................
3.1.
3.2.
3.4. Additional Rcnt
3.5.
3.6.
3.7.
3.9.
........................................
3.3. Pcrccntarrc Rent ............................................
Latc Charnc g ..............................................
3.8. ScclJrity I>cDo& ............................................
4 . ..................................................................
............................................ Intcrcst on I'nst Dtic Oblifintionz ..............................
Rent Pnvnblc in U.S. Moncy ..................................
Nc~a t io n of l'a r I n c r s 11 i p .....................................
4.1. Pcrrnittctl Usc
4.2. comnliancc with 1.a~
4.3. Ilours of Oncration
4.4. Sip, ns and I)ispl.iys ............................................
4.5. Dclivcrics to 'I'cnnnt
4.6. Covcna n t Am i nst Comnct i t ion .................................
ALTEJIATIONS AND ADDITIONS ......................................
5.1. Gcncrnl ....................................................
5.2. No Liens. ..................................................
5.3.
............................................... ....................................... ..........................................
..........................................
5 .
Tra clc Fix t 11 res.
La n (1 I ortl's II i pti t t o TI c mod c 1
..............................................
5.4. Rcmoval by l'cnant ...........................................
5.5. ..................................
6 . YTILTTI~S ........................................................... R csnons i bi I i t y Tor J'a y mcn 1 ...................................
$? 6.2. Tcnnnt's Shnrc ............................................... Nonliability of 1.nntilortl ................. .'. ...................
Scna r:i t c Mc f cr i ny,
6.1.
6.3.
6.4.
INDEMNIFICATION y?lY TIiNA NT ......................................
7.1. Tcriant's Oblip,ntions .........................................
...........................................
7 .
8 . INSURANCE ..........................................................
burancc CovcraRc by 1.ancilor~l ................................
Jnsurancc CovcrnRc by Tcnnnt .................................. 8.1.
8.2.
8.3. Waivcr of Subromtion .........................................
9 . CARE OF TIIE PREMISES .............................................. c.
9.1. .......................................... La n tl lord's . 0 I) I i ~:n t ion s .........................................
IO . TAXES ...............................................................
Tcnnnt's Ob I isy t ions
3.2.
3.3. No Ntris.inccs .................................................
10.1. Pcrsonal Propcrty Tnxcs .........................................
10.2. I<cal J3tatc T.ixcs
10.3. Ikrinition of Rcnl Estntc Tnxc~ ................................. .............................................
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.. 0 .. .. 2.
c' . . 4 . 1.1 . ' RESTKICrIO N PREMTS~S .........................................
J<vlcs and J<cp,rrlntion$ ....................................... 11.1. Emct or C.C.~:~. ........................................
' 12 . COMMON AREAS ....................................................
12.1. Dcfinition of Common Arcas ................. ................,
12.2. Maintcnnncc of Comnion Arcaq ...............................
12.3. Landlord's Rirrlit 10 Act .....................................
I 2.4. J'ayriicnt of Common Arcas ExDcnscs ..........................
12.5. Usc of Common Arcas ........................................
SIGNS AND ADVERTISING .............................................
13.1. Pcrrniftccl Acfivitics ..........................................
13.2. Proliibitcd Activities. ........................................
13.3. Tcna n t's 0 b I i p.ii t ions .........................................
13.4. . Landlord's Discrction ........................................
LANDLORD'S ENTRY ON PREMlSES ...................................
14.1. ]tip, lit of.Entry. .............................................
14.2. Excavation and Construction ..................................
14.3. Damnp, cs DUG to Entry on I'rcmiscs .............................
ASSIGNMENT AND SUI?I,ETTlNG ......................................
15.1. No hssirunmcrit ..............................................
15.2. Pcrniittctl Transfcrs ..........................................
15.3. Involuntary Assip, nmcn 1 .....................................
16 . ADANDONMENT .....................................................
A 1x1 ntlonmcn t Proli ibi t cd .....................................
1 1.2.
13 .
14 .
1s .
16.1.
17 . TIREACII IIYTENANT . ................................................
17.1. Events of Dcfarilt .............................................
17.2. Curinp, of Dcfault ............................................
17.3. mice or ocrarlit .............................................
17.4. Wnivcr .......................................................
REMEDIES UPON III~EACJI ..............................................
18.1. Ida n (I 1 o rtl's J< c mcd i cz ..........................................
DAMAGE OR DESTRUCTION .............................................
19.1. Ikstruction in Wtiolc or J'art ...................................
19.2. Rcnl hbntcnrcnt ..............................................
19.3. Jlcstornfion of 'I'cnnnI's I'roDcrfy ................................
19.4. \V:iivcr or Civil Cotlc Scclions ..................................
20 . CONDEMNATION .....................................................
20 .I . Dcfinitionz ..................................................
Pnrfics' Rii:lils and ()blip, ations (0 bc C J ovcrncd by 1,casc ............
20.3. Tofa1 Taking .................................................
20.4. Partial Taking ...............................................
18 .
19 .
E
f
20.2.
20.5. Takinn or Oflicr Arcas ........................................
20.6. Wnivcr of C.C. P . Sccfion 1265.1 3Q ................................
20.7. Continuntion of Lcasc Aftcr Contlcrnnation .......................
20.8. Allocation of Condcmnat'ion Award .............................
SURRENDER OF PREMISES .............................................
21.1. Tirnc Pcriotf for Surrcndcr .....................................
2 1.2. I. antllorcl's Itircltts Upon Sirrrcnticr ..............................
2 1.3. Fnilurc to 'I'inicly Srrrrcntlcr ..................... i ............. :
21 .
22 . IIOLDING OVER .......................................................
22.1. Monfh-to-Month Tcnancy .......................................
22.2. Rcntal Dirrinn IIoltIin p. Ovcr ....................................
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22.3. w Provisions Iccniain in Effect. .. .a ..................... . %
1 .. 2. .... ..
. . 23 . ATTORNEY'S F~E ,Si ..................................................
LiIir.ntion Conccrnin r. 1,cnsc ..................................
Litimtion Arisin r. Out of I-casc ...............................
i .
23.1.
23.2.
SALE OF TIlE PREMISES nY I,ANDI.OT<D ...............................
24.1. Ln nd lord's Jt csicl ria I Lii1 bi I i I Y ..................................
QUIET ENJOYMENT ..................................................
25.1. Landlord's Co vcnant .........................................
26 . ESTOPPEL CERTlFICATEs ............................................
26.1. Tcnant's Ob li~ation ..........................................
SUTIORDINATION AND AnORNMENT ................................
27.1.
27.2. Attornrncnt bv Tcnnnt on l.or~cIvsur(;: ..........................
27.3.
27.4. ,E x ccu I ion of DocitnicntS ......................................
24 .
27 .
Subordination or Lcnsc to 1, n ndlord's Finn nci ng ..................
Subordinalion or Lc~c to Cc rtnin Anrccmcnts with Third l'nrtics ...
27.5. Nondistiirbancc of Tcnant ...............................................
28 . I, IMITATION OF J,JAi3JLITY ............................................
28.1. Afmcrncnt by Tcnnnt ......................................... 28.2. Exculnation of 1.antllorti .......................................
. 29 . LIATITLITY OF SUCC ESSOT~S ............................................
29.1. Inurcmcnt ...................................................
MTSCELT, A N EOUS PR OV 1 S J 0 NS .........................................
30 .I . Gcntlcr and NurnIicr ..........................................
30.2. Cantions ....................................................
30.3. 1; n t i rc A Rrcc mc n 1 .............................................
30.4. Govcrninr, I-aw ...............................................
3 0 .
30.5. Tnvalitlity ..............................................................
30.6. Pavmcnts .....................................................
30.7. Tinic of Esscncc ................................................
30.8. I'orcc Ma icor(; ...................................................
NoticcS ....................................................... 30.3.
Itcal Eststc llrokcrs: I'intlcra ...................................... 30.1'0.
30.1 1 . Mcmbcrsliip . Mcrcliant's Assocint ion ..............................
I
SPECJAL PROVISI0N.I ................................................. 31 .
~~clocation .................................................... 31.1.
31.2. Gcncral ......................................................
EXHIDIT A THE PI< EMTSES
EXI.III3IT I3 LJST OF IMPROVEMENTS
EXI-IIDIT C SIGN CRITERlA
EXIIIlllT D GUARANTEE OF LEAS13
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SIIOPPING CENTER LEASE
This SHOPPING CENTER LEASE (the vlLeasel’) is executed at CarlSbC California, as of the 1st day of June I 1-1 betwc
Larry Gittins, Receiver for Poinsettia Village Shopping Center (4 IlLandlordIl and THE CITY OF CARLSBAD (the “Tenant’
1. PR EMJS ES.
1.1. Dcmisc. Subjcct to all thc fcrnis and conditions of this Lcasc, Landlord hcr to Tcnant and Tcnant Iicrcby hircs from Landlord, pursuant io thc icrnis, covcnants, cond
uscs Iicrcin sct forth, tlic Prcmiscs, as morc particularly dcscribcd in Itcm 3 of thc 13:
Provisions. As uscd in this Lcasc, tlic “Gross Floor Arca” of thc Shopping Ccntcr shail bc
lcasablc area of all Prcrniscs in tlic Shopping Ccntcr, as ccrtificd by Landlord’s architcct.
1.2. Go nst r y ct ion.
Landlord agrccs 11131, aftcr cxccution of this Lcasc by both partics, it will, at its solc
cxpcnsc, cornmcncc and pursuc to complction thc construction of thc iniprovcnicn ts to bc c
Landlord pursuant to thc List of Improvcmcnts (Exhibit “B”),
2. TERM
2.1. Gcncra 1.
2.1.1. Thc tcrrn of this Lcasc shall bc as spcciricd in Itcm 4 or thc I3a
Provisions, commcncing on thc carlicst of (1) thc datc which is thirty (30) days aftcr
notifics Tcnant that thc Prcmiscs arc or will bc rcady for occupancy, or (3) thc datc on wliic
shall opcn for busincss in ihc Prcmiscs: Thc datc on which thc Lcasc (crm coninicnccs is
rcfcrrcd to as tlic “Commcnccmcnt Datc.” Thc partics anticipate that thc Comrncnccrncnt
occur on thc Anticipatcd Comnicnccnicnt Da[c spccificd in Itcm 5 of thc Basic Lcasc Prov
If Tcnant shall takc occupancy of thc Prcrniscs on otlicr than
day of a month, tlic tcrni of this Lcasc shall bc cxtcndcd by tlic nunibcr of days rcniaining in
calcndar month of occupancy.
2.1.2.
2.1.3. Tcnant’s taking posscssion or tlic Prcniiscs .on comnicnccmcr
tcrrn shall constitutc Tcnant’s acknowlcdgmcni [hat thc I’rcniiscs arc in good condition.
2.2. Dtisy in Comrncnccmcnt.
I 2.2.1. Notwithstanding thc Anticipatcd Comnicnccmcnt Datc, if Land
any rcason, cannot dclivcr posscssion of thc Prcmiscs to Tcnant on or bcforc said datc, Landlc
not bc subjcct to any liability tlicrcfor, nor shall such failurc arrcct thc validity of this Lca
obligations or Tcnant Iicrcundcr; providcd, howcvcr, (hat Tcnant shall not bc obiigatcd to
until posscssion of Ihc Prcniiscs is tcndcrcd to Tcnnnt.
2.2.2. If thc Prcmiscs arc not dclivcrcd to Tcnant within six (6) monl
thc Anticipatcd Cornrncnccnicnt Datc, this Lcasc shall bc dccmcd Icrminatcd and Landlo
rcturn any monics dcpositcd by Tcnant.
2.2.3. Wilhin thirty (30) days following tlic Conirncnccmcnt Datc, L
and Tcnant hcrcby confirm that thc Coninicnccnicnt Daic is:
Da IC Landlord’s Initials Tcnan t’s
3. RENT.
3.1. nasc Monthly Rcntnl.
3.1,1. Tcnant shall pay to Landlord at thc addrcss providcd Tor in Itc
rlic Basic Lcasc Provisions, without dcduction or prior notice or dcmand, and Landlord shall
as rcnt Tor the Prcrniscs [hc ”Bnsc Monthly Rcntal” spccificd in Itcm 6.A. of thc Basic
Provisions. Thc Basc Monthly Rcntal shall bc payable in advancc in lawful moncy Of [hc
-1-
biatcs 01 Anicrica oil IC first day of cnch nioiitli of tl~c LC a - criii. Thc first installnic
duc arid payablc as spccificd in Itcm 7 or thc Basic Lcasc Pro1
‘ ’ 5 , ’ no‘cvcnt latcr than 1hc datc on whicli Tcnant acccpts dclivcry of tlic Prcniiscs froln L
iT tfic Lcasc tcrni has not comrncnccd on such datc of dclivcry).
c
I Moiitfily Iicntal slia Y ‘ .
3
3. I .2. In thc cvcnt that thc Commcnccmcnt D~IC is not thc fir
month, Tcnant shall pay to Landlord, prior to thc first day of tlic first full calcnl
occupancy, an amount cqual to tlic Basc Monthly Rcntnl multiplicd by a factor
nunicrator Ihc numbcr of days rcmairiing in tlic first niontli and as its dcnoniinalor tlic I
(30). Thcrcaftcr, tiic Dasc Monthly Rcntal shall bc yayablc in accordancc with tlic
Paragraph 3.1. TIic total considcration for tlic tcrni of this, Lcasc shalt bc incrcnscd 1:
of thc installiiicnt rcquircd by this Subparagrap11 3.1.2.
19 J.L..
3.2.1. Tlic amount of thc Uasc Monthly Rcntal sct forth in 1’ara.g
bc adjustcd as of tlic cnd of cach “Icasc ycar” during thc tcrni licrcof to rcflcct any char
of living. Thc tcrm “Icasc ycar“ shall mcan a twclvc (12) month pcriod bcginning with
of tlic rirst calendar montfi following thc Comnicnccmcnt Datc. Thc first lcasc ycar slia
parlial niontlily pcriod bctwccn tfic Coniiricnccnicnt Datc and thc start of tlic firs1 ca
following thc Conirncnccrncnt Datc.
occurrcd in thc Burcau of Labor Statistics Consunicr Pricc Indcx, Subgrou
givc writtcn noticc to Tcnant indicating thc amount of tlic adjus and nianricr of
cntal for any subscq
ly prcccding tlic dacc 01
atc spcciricd abovc, pci
crciicc to tlic tlicii availab
rcduccd bclow thc Basc Monthly Rcntal for tlic ycar im
of thc rcquircd Indcx and dctcrmination of ilic ;1
ndjustcd rcntal, as rcasonably dctcrniincd by Land
OVCrpaymCJlt shall bc crcditcd against tlic ncxt i
in thc Lcasc.
t thc Indcx docs not cxist in thc sarnc rorn
icia~ indcx publisiicd by t1i.c Uurcau or Labor
cy, as may tllcn bc in cxistcncc and sli;ill bc
unablc to ngrcc upon n subsiitutc indcx, thc parti1
ding arbitration in accordancc with thc rulcs of t
B
succcssor or siniilar govcrnincntal
cquivalcnt thcrcto. If thc partic
tfic clioicc of a succcssor indcx
Arbitration Associa tion.
. In addition to thc Basc Monthly Rcntal, Tcnnnt
nt sliail bc computcd on a monthly b35is
Landlord in tfic ma
total amount of dollars of tlic actu
fi or crcdit, for all salcs of mcrcfiandi
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tivcpf tlic tinlc whcn Tcnant shall rcccivc paymcnt from its customcrs, and
Exclusion rrom Gross SalcS. Gross Salcs sliall not, Iiowcvc
Any cxchangc of goods or nicrchnndisc bctw
t and ncithcr for thc purposc of consuniniating a salc which 11;
othcrwisc would bc rnadc at, in, on, about or from thc Prcn
Thc amount of any cash or crcdit rcfund gi
Id, or sonic part Ihcrcof, is tllcrcaftcr rcturncd by tlic I:
of thc business of
bcncrits of thc salc w
salc whcrc thc nicrcliand
acccptcd by Tcnant;
Salcs of fixturcs wliich arc not a part of Tcn
tradc.
1 Tcnant shall kccp full, coniplctc and f
rccords and accounts (thc ”
Books shall bc Cull, truc and accuratc
cposit rccords, purcliasc rccords, ii
i to Landlord a statcnicrit in writi cacti month during tlic lcasc tcrm, Tcnnnt shall
by Tcnant to bc corrcct, of Gross Salcs Tor tlic
. I’crccntagc Rent sliall bc paic
ns. Within tcn (IO) days ilftc
in writing, ccrtificd by 1
rccntagc Iccnt shall bc co
tlic timc spccificd in Itcm 6.
corrcct, or thc Gross Salcs for thc prcvious niontli. 1
adjustcd on an annual basis.
I furnish any statcmcnt of G
tlic cost of such audit to Landlord.
addition to all othcr rcmcdics affordcd to Landlord undcr this Lcasc, Tcnant shall promi
additional rcnt, thc cost of such audits to Landlord. If any audit discloscs that thc ‘
transactcd by Tcnant cxcccd,s tliosc rcportcd by Tcnant by niorc than two pcrccnt (29b), T
pay to Landlord within rivc (5) days artcr writtcn rcqucst tlic cost of such audit. In tlic i
undcrpaymcnt of Pcrccr8ragc Rcnt, Tcnarit sli;ill immcdintcly pay 10 Landlord tlic ani01
undcrpayrncnt, togcthcr with intcrcsl in accordnncc with Paragraph 3.5. If such Audit di
willrul or matcrial inaccuracy by Tcnant, this Lcasc may, at tlic option of Landlord, bc ir
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l. \’ ’ caricclicd arid tcr~~iina[cd. Any iriforniation obtaincd by Lniidlorcl pursuant to tlic provisi 1’3rngrnpii 3.3. slinll bc trcatcd as confidcrltial, cxccpt in any litigation or arbitration 0
bc(wccn tlic yartics and t!ic disclosurc of sucli information to prospcctivc buycrs arid Icn
7A .I. I.
of opcration an<
nictcrcd), iaxcs, insurniicc providcd by Laadlord, rod arid
kpcnscs, or otlicr cliargcs, as dcscribctl on- ianncr providcti in Articlc 12 (Coiiii~
itagc Rcnt, tlic Atltlitioiinl Itcnt and otiicr amounts I
arc soriictiiiics collcctivcly rcfcrrctl to as and s1i;iIl
3.5. lrilcrcst on Past I>uc(JJ lim(iw. In thc dcfaull by Tcnant in paymcnt ol
of rcnt, ‘I’cnant sliall pay, as Additional I<cnt, intcrcst at thc hiElicst rntc ycrniittcd by I;
such obligation fro111 tlic day it is duc uritii rcccivcd by Landlord.
3.6. Lnrc ClmrfxS. ‘I’cIianl ackiiowlcdgcs thai Intc paytticlit by Tcilailt IO Land1
will C~USC Lancliord to.iricur COS~S not coiitcmi)lntcti by tliis ~c;rsc, tlic cxiict ainount of
bcing cxlrciiicly difficult and i~iiy~actici11 to fix. Such costs includc, without limitation,
ndministrntiori and accounting cliargcs. If any instalIn~ciit of any itcin of rcnt duc fro11
not rcccivcd by Landlord wlicn duc, Tciiant sliall pay to Landlord an additional sun1 ci
Ercatcr of six pcrccrit (6%) of tlic ovcrduc rcrit or Fiftccn Dollars (SlS.00) as a lalc cl.
yartics agrcc that this Iatc cliargc rcprcscnts a fair aiid rcason:rblc cstiiriatc or tlic costs tha
will incur by rcasori of latc paymcnt by Tcnant. Acccptancc of any latc cliargc slmII no1
a waivcr of Tcnant’s dcfault with rcspcct to tlic ovcrtluc nniounts, nor prcvcnt tlic Lam
cxcrcisiiig any of tlic otlicr rights and rcnicdics av;iilablc to Landlord hcrcundcr. Tlic 1x1
latc cliargc shall bc in ncldition to any iritcrcst priyablc by Tcn;iiit unrlcr I’aragrayli 3.5. (
1’3s 1 D u c 0 bl i ga ti om).
3.7. I<cnt Payablc in U.S. Moncy. Rcnt and all otlicr suiiis payablc undcr this
bc paid in Lawful inoncy of tlic Uiiitcd Statcs of Aiiicrica.
3.8. ,~~~urit~(. 6. Upon execution of this lease Tenant sha
$-1,150.00 as a sccurity dcposjt for tlic pcrfortnancc by Tciiant of tlic provisions of
11‘ *I-cli:iiit is iti dcriiult, Landlord Cali usc tIiC sccurity dcposit, or ally portion of it, to curt
or to conipcnsatc Landlord for all dani;igc sustoiiicd by L:iiidlord rcsultirlg Tram l’crtsn
Tcnnnt sli;i11 irnmcdiatcly on dcrnaritl pay to Landlord a sun1 cqu;\l to tl~c portio11 of t
clcposit cxpcndcd or applicd by Landlord os providcd in this paragraph so as to maitltain t
dcjiosit in thc suni initially dcpositcd with Landlord. lfsTCi1iltit is not in dcfaull at tlic cx
tcrinination of this Lcasc, Landlord slrnll rcturii tlic sccurity dcposit to ’Ccnant.
obligations with rcspcct to tlic sccurity dcposit arc tliosc of a tlcbtor and not a trustcc. La
ainiiitain t~ic sccurity deposit scyaratc ahr~ apart from L;lncIlord*s gcricral funds or can COII
sccurity deposit with Landlord’s gcricral and otlicr funds. Landlord sliall riot bc rcqu,
‘I’ciinnt intcrcst on tlic sccurity clcyosit.
8
3.9. malion of Partncrshio. Lalidlord sliall not bccoinc or bc dccnicd a p
joint vcnturcr with I’ciiant by rcnsoii of tlic provision; of this Lcasc.
4. m.
4.1. I’crniittcti Usc. Tlic Prcmiscs shall bc uscd and occupicd by Tciiant undc
naiiic spccificd in 1 tcni 2.11. of tlic Basic Lcasc I’rqvisioiis niid for tlic purposc(s) spcciric
of tlic Uasic Lcasc Provisions aiitl undcr no otlrcr trndc II~CS and for no otlicr purpo!
obtaining tlic consciit of Landlord. I’cnant shall not pcrmit any usc to bc iiiadc or act to
upon or about tlic Prcriiiscs which would incrcnsc tlic cxisting ratc of iiisurancc upori 111
or causc tlic canccllation of any insurancc policy covcring tfic I’rcmiscs, nor slmIl ‘Tcl
pcrmit to bc kcyt, uscd or sold in, upoii or about tlic I’rciiiiscs any articlc wlikli niny bc
by a standard form policy of firc insurancc. In thc cvcnt that I’cnant’s usc incrcascs s
cnuscs tlic canccllation of a policy or iiisurancc, Laiicilortl ~iiay charge ‘I‘cnant, as addition
ntlditional cost of iiisurancc, which incrc;isc sIiaII bc paid to LiindIord witliin ~CII (IO) <
Lniidlord is obligated to pay a prcnliuni on tlic iusurnncc.
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t * * I)
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4.2. ComDliancc with Laws. Tcnant shall promptly comply with all laws
zoning restrictions, rulcs, rcgulations, ordcrs and any rcquircnicnts of any duly const
authoritics now or licrcaftcr affccting tlic USC, safcty, clcanlincss or occupation of thc
Ilours or Omration. Aftcr opcning for busincss, Tcnant shall continu
opcn for busincss at Icast during tliosc days and hours as is customary for a busincss of 1
in thc city in wliich thc Prcmiscs arc situatcd, unlcss Tcnant is prcvcntcd from doing so 1
or othcr causcs bcyond thc Tcnant's rcnsonablc control, and cxccpt during rcasonabl
rcpa iring, clca ning and dccora t ing thc J'rcniiscs.
4.3.
4.4. Sir,ns and DisDlnvs. Tcnant shall not display or scll mcrchandisc 01
portablc signs, dcviccs or othcr objccts to bc storcd or rcniain outsidc tlic dcfincd
pcrmancnt doorways of tlic I'rcmiscs.
Dclivcrics to Tcnnnl. Tcnant sliall USC its bcst cfforts to complctc 01
coniplctcd all dclivcrics, loading, unloading, rubbish rcrnoval and othcr scrviccs prior
of cach day. Landlord rcscrvcs thc right to furtlicr rcgulatc thc aclivitics of Tcnant
dclivcrics and scrvicing of thc Prcniiscs, and Tcnani agrccs to abidc by such furthcr
nondiscriminatory rcgulations of Landlord.
4.5.
4.6. Covcnnnt AKsinst CornncI it ion.
Tcnant, or any individual, firm or corporation that contrc
ritc or bcconic financially intcrcstcd in a bus
to tlic onc conductcd on thc Prcmiscs within niilcs in ;rrrp.Bwccl inn from thc I
niilcagc to bc mcasurcd on a strniglit-Iinc basis on n map, not following contours of lanc
Upon cxpiration or tcrniination of this Lcasc, Tcnnnt slial,
undcr or usc in any rnanncr any namc that includcs thc words "POINSETTIA VI
"POINSETTIA VILLAGE SHOPPING CENTER."
-
4.6.2.
d A 3. If Tcnant dcfaults in thc pcrformancc undcr this Pa
Landlord can clcct to includc thc gross s;iiLb ;e~+~cll ntlic r busincss in tlic gross salc:
or upon thc I'rcmiscs for thc purposc or computing Pcrccningc Itcnt payavic urrrftf-ckir
5. A LTET7 AT1 0 N S AN D ADD IT1 0 N S.
5.1. Gcncrnl. Tcnant shall not niakc any intcrior altcralions, irnprovcmcnts
to thc Prcrniscs without obtaining Landlord's prior writtcn conscnt, which shall not bc u
withhcld. Any such irnprovcmcnts, cxccpting movablc lurniturc and tradc rixturcs, shall
of tlic rcalty and bclong to Landlord. All altcrntions and iniprovcmcnts s11a11 bc in conf
tlic laws of all applicablc duly constitutcd public authoritics. Tcnant shall not change
appcarancc of' thc Dcrniscd I'rcmiscs without Landlord's prior writtcn conscnt.
5
5.2. No LicnS. Prior to conimcncing any work rclating to any altcrations, im
or additions approvcd by Landlord, Tcnant sliaii notify Landlord in writing of th~ CXPCC
commcnccnicnt. Landlord shall havc thc riglit at any tinic thcrcaftcr to post and main
Prcrniscs such noticcs as Landlord rcasonably dccnis ncccssary to protcct Landlord and t
from mcchanics' licns, matcrialmcn's licns or any othcr iicns. Tcnant shall pay, wlrcn dul
for labor or matcrials furnishcd to or lor Tcnanf for USC in improving thc Prcniiscs. Tcna
pcrmit any mechanics' or niatcrialmcn's Iicns to bc Icvicd against tlic I'rcniiscs arising c
pcrrormcd, matcrials furnishcd or obligations to Iiavc bccn pcrfordcd on tlic I'rcmiscs I
rcqucst of Tcnant. Tcnant hcrcby indcninifics and holds Landlord harmlcss against la
attorney's fccs and a11 othcr cxpcnscs on account of claims of Iicn of Iaborcrs or niati
othcrs for work pcrrornicd or niatcrials or supplics f'urnislicd Tor Tcnant or pcrsons clai
it.
5.3. Tradc Fixturcg Tcnant may install tradc fixturcs, machincry or (
cquiprncnt in conformancc with [tic ordinanccs of all applicablc duly constitutcd public :
Tcnant may rcmovc any of such tradc fixturcs or niac1iincr.y upon thc tcrrnination of
providcd Tcnant is nor tlicn in dcf'ault undcr thc tcrnis and conditions of this Lcasc.
5.4. Rcrnoval by Tcnnnt. In thc cvrlit that Tcnnnt installs improvcmcnts,
and tradc rixturcs, Tcnant shall rcturn tlic Prcrniscs on tcrmi'nation of this Lcasc I(
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\
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', .,
condition as cxistcd at thc datc of cntry, rcasonablc wcar and tcar cxccptcd, including I
of improvcmcnts approvcd by Landlord in Paragraph 5.1., if Landlord's approval was (
upon Tcnant's rcrnoval of said improvcmcnts. Tcnnnt shall, in any cvcnt, rcpnir any dam3
from thc rcrnoval of macfiincry or trndc fixturcs of Tcnant.
5.5. Lnndlord's Rir,ht to Rcmodcl.
5.5. I. Landlord ~11311 havc thc right, at any timc, to rcmodcl all or
thc shopping ccntcr. Tcnant shall bc obligatcd, at Tcnani's soIc cost, to cxtcnd thc bour
Prcmiscs as rcquircd by Landlord's rcmodcling and to rcconstruct or rcniodcl thc st(
storcfronts of thc Prcmiscs, in accordancc with Landlord's final plans and spccirications 3
drawings, if any.
5.5.2. As part of any rcniodcling, Landlord may adopt ncw ex
critcria. If ncw cxtcrior sign critcria arc adoptcd, Tcnant, aftcr noticc from Landlord,
SOIC cost, shall rcniovc (111 cxisting cxtcrior signs and rcplacc thcm with ncw cxtcril
accordancc with thc ncw sign critcria. Tlic ncw signs shall bc crcctcd within sixty
following thc datc of Tcnant's rcccipt of Landlord's noticc. Thc rcrnoval of cxisting sig
crcction of ncw signs shall bc accomplishcd at thc samc tinic so that thc Prcniiscs will a
havc cxtcrior signs. If ncw cxtcrior sign critcria arc adoptcd, thc partics shall jmmcdiatc
an amcndmcnt to this Lcasc replacing Exhibit "C."
6. UTTLTTTES.
6.1. Rcsponsibilifv for Paymcnf. Tcnant shall pay for all watcr, scwcr, gas, I
powcr, tclcphonc scrvicc and any otlicr scrviccs or utility providccl to thc Prcmiscs.
6.2. Tcnanl's Shnrc;. In thc cvcnt (hat any utilitics arc furnishcd by Landlor
shall pay to Landlord its pro ra[a sharc of thc cost thcrcof in thc manncr sct forth in Parag
(Payment of Common Arcas Expcnscs). Tcnant's pro rata stiarc shall bc bascd up0
proportion of thc utility costs which tlic Gross Floor Arca or thc Prcmiscs bcars to thc ti
Floor Arca of tlic Prcniiscs in thc Shopping Ccntcr scrviccd by sucb mctcr and (2) any cxtr
usc which may bc madc by Tcnant. If any utilities arc rurnishcd by Landlord dirccily or
throogti joint mctcring, Landlord shall not bc obligatcd to continuc 10 providc such scrvicc
is in dcrault undcr thc tcrms hcrcof.
6.3. Nonliat~ility of 1,andlortl. Landlord shnll not bc liablc for any failurc or int
of any utility scrvicc bcing furnishcd to thc Prcmiscs.
f 6.4. Scpnrarc Mctcrinx. Tcnant mny, at its cxpcnsc, clcct to install its own mctc
utilities which arc jointly mctcrcd by writtcn noticc dclivcrcd to, Landlord thirty (30) day
thc initiation by Tcnant of any work to crfcctuntc such chnngc and subjcct to whatcvcr
Paragraph 5.1. as may bc applicablc.
7. INDEMNTFICATTON nY TENANT. /
7.1. Tcnant's Ob linntions. Tcnant docs hcrcby indcrnnify, +d&+k+r ,a
* including, without limitation, any liability for injury to thc pcrson or propcrty 01
its agcnts, officcrs, cmployccs, invitccs or trc>passcrs, but cxccpting any lass or injury rcsult
thcencgligcncc of Landlord. Tcnant shall, at Tcnant's cxpcnsc, rcsist and dcfcnd any suc
cfcnsc occurrcd during thc Lcn
8. INSURANCE.
for changes to 7.1 for changi Insurancc Covcrnr.c by La ndlqrd:
8.1.1. Landlord shall maintain, at Tcnant's cxpcnsc as providcd
8.1.
Paragraph 8.1.2., a policy or policics of insursncc protcciing against thc following:
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I e
8.1 .I. 1. Firc and othcr pcrils normaIly includcd' i
covcragc insurancc to tlic cxtcnt of at Icast nincty pcrccnt (90%) of thc rcplaccnicnt v
Prcrniscs, cxclusivc of pcrsonal propcrty, tradc fixtures and cquipnicnt belonging to '
improvcmcnts and bcttcrmcnts madc to tlic Prcniiscs by Tcnant.
8.1.1.2.
0 I.
Loss of rcntal incomc insurancc to tlic cxtcni onc liundrcd pcrccnt (100%) of tlic annual gross rcntals rcccivcd by Landlord from th
Ccntcr.
8.1.1.3. Public liability and propcrty daniagc insu~
rcspcct to tlic Common Arcas in an amount not lcss than 'Thrcc Milliori Dollars ($3,000,000
singlc limit for both bodily injury and propcrt'y damagc.
8.1.1.1. Any othcr insurancc, including, but not j
carttiquakc and/or flood insurancc, as may bc rcquircd by Landlord, Landlord's lcndcr ;I
govcrn mcn t a 1 a gcn cy.
8.1.2. Tcnant shall pay to Landlord, as Additional IZcnt in tfic c
forth in Paragraph 12.4. (Paymcnt of Coninion Arcas Expcnscs), Tcnant's pro rata sliarc I
of thc insurancc rcquircd in Subparagraph 8.1.1. Tcnant's pro rata shsrc of such cost sli
proportion of thc annual prcniiuiris Tor insurancc which tlic Gross Floor Arca of thc Prcr
to tlic total Gross Floor Arca of thc Prcniiscs in thc Shopping Ccntcr covcrcd by such ins
8.2. Insurancc Covcrar.c by Tcnant.
8.2. I. Contcnts lnsrirancc. Tcnant shall maintain in forcc a policy (
of all risk contcnts insurancc, including, without limitntion, sprinklcr lcakagc covcragc
glass covcragc for the I'rcmiscs, with rcspcct to Tcnant's pcrsonal propcrty, trndc fix
cquipmcnt locatcd in tlic Prcniiscs and all iriiprovcincnts and bcttcrnicnts to tlic Prcmisci
Tcnant to thc cxtcnt of at Icast nincty pcrccnt (90%) of thcir insurable valuc. During thc tc
Lcasc, thc procccds or any such policy or policics of contcnts insurancc shall bc uscd solc
rcpair or rcplaccnicnt of tlic propcrry so insurcd. Landlord sliall linvc no claim or intcrc
insurancc and will sign all tiocurticnts ncccssary to cffcctuatc tiic scttlcnicnt of any claim
Tcnant.
8.2.2. 1,iability Tnsurnncc. Tcnant shall maintain during, tlic tcrm of 1
workcrs' cornpcnsa t ion i nsu rn ncc, coninicrcin I gcncra I 1 in bil i t y i nsu ra ncc, including prci
opcrations covcragc and products and coniplctcd opcrntions insurancc with rcspcct to tlic
ndcquatc to protcct Landlord. Such policy of liability insurancc shall add as additional inst
not "nanicd insureds") Landlord and cacll of its partncrs, affiliates, dircctors, agcnts and CI
and shall cxprcssly providc that 1hc intcrcsi of Landlord tlicrcin sliall not bc affcctcd by an
by Tcnant of any policy provisions. Initially, such policy of liability insurancc shall bc in ai
not Icss than Onc Million Dollars ($1,000,000) combincd singlc limit for both bodily in
propcrty daniagc. Thc amounts of such public liability insurancc sIia11 bc incrcascd fron
timc, as Landlord may rcason5bly dcfcrniiiic. Tcnant shrill furnish Landlord with a ccrti
insurancc with rcspcct to such policics prior to Tcnant's cntry into tlic I'rcniiscs. Such polii
bc sccurcd froni insurnncc conipaiiics wirh a Bcst's rating of A+: Class X or bcttcr and pro
thcy may not bc cnnccllcd or altcrcd without fliirty (30) days prior wrirtcn noticc dclivcr<
insurcr to Landlord.
E
8.2.3. Tncrcasc in Aniounl of Ptlblic Linbility and Proncrty Damanc Tn
Not morc frcqucntly than cacli ycar, if, in thc opinion of Landlord's lcndcr or of tlic it
brokcr rctaincd by Landlord, tlic amount of public liability and propcrty daniagc insurancc (
at that time is not adcquatc, Tcnant shall incrcasc tlic insurancc covcragc as rcquircd b
Landlord's Icndcr or Landlord's insurancc brokcr.
8.2.4. Tcnanf's Firc lnsurrrna. Tcnant, at its cost, ~11311 maintain on L
pcrsonal propcrty, Tcnant's improvcnicnts and altcrations, in, on or about thc Prcniiscs, a p
standard firc and cxtcndcd covcragc insurancc, with vandalism and malicious mischicf cndor:
to tlic cxtcnt of nincty pcrccnt (90%) of tlicir full rcplaccmcnt valuc. Tlrc procccds from a
policy shaII bc uscd by Tcnant for tllc rcplaccmcnt .of pcrsonal propcrty or tlic restoration of 1
improvcmcnts or altcrations.
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8
c
I. 0 0
4
8.2.5. I'latc Glass InsurancC;. Tcnant, at its cost, shall maintain
platc glass insurancc on thc Prcmiscs. Landlord shall bc namcd as additional insurcd o
8.2.6. LiaUOr Linbility/DramshoD Linbi 1 it y 1 n s u r ;I n c c. indcrnnification obligations shall cxtcnd to darnagc rcsulting from risks insurablc by so
IiabiIity/dramshop liability insurancc. Thc public liability insurancc rcquircd in Pa shall includc liquor lia bi 1 it y/d ra mshop lia bi I i ty insu ra ncc,
8.2.7. DoiIcr and Machincry Insurance. Tcnant, at its cost, SI
boilcr and machincry insurancc on all boilcrs and othcr prcssurc vcsscls and systcms I
or about thc Prcrniscs. If any of thcsc itcms and thc damagc that may bc causcd by covcrcd by thc standard rirc and cxtcndcd covcragc insurancc rcrcrrcd to in I'aragra
boilcr and machincry insurancc shall havc limits of not lcss than full rcplaccnicnt cost ol
cquipmcnt on thc Prcmiscs. Thc policy of insurancc shall bc issucd in ttlc nalncs of Lan(
and Landlord's Icndcr, as thcir intcrcsts appcar. Thc insurancc policy shall providc that
shall bc niadc payablc to Tcnant and/or Landlord as thcir intcrcsts may appcar. In ca
is tcrminatcd, thc insurancc policy, all rights undcr it, and thc insurancc procccds shal
to Landlord at Landlord's clcction.
8.2.8. Busincss Tntcrruntivn Insurance, Tcnant, at its cost, sh
busincss jntcrruption insurancc insuring that thc minimum monthly rcnt will bc paid IO
a pcriod of up to twclvc (12) months if thc Prcniiscs arc dcstroycd or rcndcrcd inacccss
insurcd against by a policy of standard rirc and cxtcndcd covcragc insurancc, with Vi
malicious mischicf cndorscmcn ts.
8.3. Waivcr of Subromtion. Landlord and Tcnant hcrcby rclcasc and rclici
from liability and waivc all right to rccovcr against cach othcr Tor any loss or darnagc a
or incidcnt to thc pcrils covcrcd undcr thcir rcspcctivc policics of propcrty insurancc,
occur in, on or about thc Prcmiscs, ncgligcncc of Landlord or Tcnant or thcir rcspc
cmployccs, contractors and/or invitccs. Landlord and Tcnant shall, upon obtaining th
propcrty insurancc rcquircd undcr this Lcasc, givc noticc 10 tlicir rcspcctivc insurancc c<
thc forcgoing mutual waivcr or subrogation is contclincd in this Lcasc.
9. CARE OF TlTE PREMISES.
9.1. Tc nn n t 's 0 bl i ~n I io nz.
9.1.1. GcnCr;ll. Tcnant shall, at its cxycnsc, kccp thc Prcmiscs and
intcrior portions thcrcof, including without limitation windows, doors and a11 othcr g
glass rixturcs, in a ncat, clcan, sanitn'ry and safc condition, and shall kccp thc Prcniisc
trash, rubbish and dirt. Tcnant shall bc solcly rcsponsiblc for glass brcakagc in thc Prcmi
duc to vandalism or othcrwisc. Tcnant sliall mnkc all rcpairs or .rcplaccmcnts thcrcor
using matcrial of [hc sarnc quality as that which was damagcd, whcthcr ordinary or cx
If Tcnant fails to kccp thc Prcniiscs ncat, clcan or in rcasonablc rcpair, Landlord m:
Prcniiscs during rcasonablc hours in ordcr to clcan or rcpair sanic. Tcnant shall imnicdi
Landlord thc rcasonablc cost thcrcof.
9.1.2.
ff
EauiDrncnt and Fixtures. Tcnant shal1,at itssolccost, kccpa
all utilities, fixtures and mcclianical cquipmcnt uscd by Tcnant in good ordcr, condition
Said itcms shall includc, but arc not limitcd to, all plumbing or SCW~~C facilitics, door:
closing dcviccs, windows (including glass), lights, clcctric systcnis and cquipmcnt of
Landlord shall cntcr into a maintcnancc agrccmcnt for tlic maintcnancc of any hcating
conditioning scrvicing thc Prcmiscs with a ycputablc maintcnancc scrvicc company. Tcna
to Landlord in tlic nianncr sct Corth in Paragraph 12.4. (Paynicnt of Common Arca!
Tcnant's pro rata sharc of thc cost of any such rnaintcnancc agrccmcnt for tlic Shopp
Tcnant's pro rata sharc shall bc that proportion of thc cost of thc scrvicc contract whic
Floor Arca of tlic Prcmiscs bcars to thc total Gross Floor Arca of llic Prcniiscs in thc Shop<
scrviccd by such maintcnancc contract.
9.2. Landlord's Ob IiRations.
9.2. I. GcncrnI. Landlord shall kccp in good condition and rcpair t
structural coniponcnts of thc Prcmiscs, but tlic cost thcrcof shall bc pro ratcd bad
proportion which thc. Gross Floor Arca of thc Prcniiscs bcars to thc total numbcr or Icas;
fccr in thc building in which tlic Prcniiscs arc locarcd and shall bc paid by Tcnant in the
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% 0 0 I.
3, %.
\ forth in ,'earagraph 12.4. (Paymcnt of Common Arcas Expcnscs). Landlord shall havc r
lo makc any such rcpairs until Landlord has rcccivcd wrirtcn noticc from Tcnant with r
nccd for such rcpairs. Landlord shall not bc dccmcd to be in dcfault with rcspcct to i to rcpair unless and until Landlord has (I) rcccivcd said writtcn noticc and (2) failcd t
rcpairs within a rcasonablc pcriod lollowing rcccipt of said noticc. Landlord shall, afl
written noticc, cxcrcisc duc diiigcncc in making such rcpairs. Tcnant hcrcby waivcs an
of law permitting Tcnant to makc rcpairs at Landlord's cxpcnsc. Landlord sflall
construction warrantics Cor thc bcncfit of Tcnant to ;hc cxtcrit that thcy arc available,
Lanclfgrd's Rip,ht of Acccs . In ordcr to pcrforni its oblig
this Paragraph 9.2.. Landlord hcrcby rcscrvcs to itsclf and its succcssors thc right of,
cxtcrior walls and roof of thc Prcrniscs and thc right to install, maintain, usc, rcpair
pipcs, ducts, conduits and wircs through tlic Prcmiscs in locations whicli will not nntcria
with Tcnant's usc thcrcof.
9.2.2.
9.3. No Nuisances. Tcnant shall no[ commit or pcrniit any nuisancc, act 01
which may disturb tlic quict cnjoymcnt of thc othcr tcnants of tlic Shopping Ccnicr.
10. TAXES.
10.1. Pcrsonal ProDcrty Taxc~. Tcnant sliall pay prior to dclinqucnc
asscssmcnls, liccnsc Cccs and otticr public charges Icvicd, asscsscd or irnposcd or wl
payablc during tlic tcrm of this Lcasc upon any tradc fixturcs, Curnishings, cquipmcnt, ir
all othcr pcrsonal propcrty of Tcnant installcd or locatcd in thc Prcmiscs. Whcncvcr pos:
shall causc said tradc fixturcs, furnishings, cquipnicnt, invcntory and pcrsonal prc
scparatcly asscsscd. If, howcvcr, any or a11 of said itcms shall bc asscsscd and tax
Prcmiscs' rcal propcrty, Tcnant shall pay to Landlord such taxcs as arc attributable to Tc
fixturcs, furnishings, cquiprncnt, invcntory and pcrsonal propcrty within fiftccn (15
rcccipt of any invoicc from Landlord advising Tcnant oC tlic taxa applicablc to Tcnan
Landlord shall liavc tlic right to pay thcsc taxes rcgardlcss of [tic validiiy of thc Icvy.
in -i IT- . .T- 'p U.L. 1 L.lI L.. dLL I <Inca. 1 LIJaJIIL ILI ab
(Paymcnt of Common Arcas Expcnscs) any and a11 "rcal cstatc taxcs" (3s hcrcaftcr dcfir
or irnposcd, or whicli bcconic a licn upon or bcconic chargcablc against or
ihc Prcmiscs, including Tcnant's cquitnblc propcrty of such rc31 cstatc t
asscsscd. Tcnant shall pay an cquitablc proportion of thc r nd asscssnicn
nry Asscssor's workshcc
st ycar of thc tcrm of this Lcasc Sli31I I
bctwccn Landlord and T
cnccd by iniprovcriicnts or othcr bonds and may bc paj(
amount of such annual jnstnffmcnt, with approprialc proration fol
crcon, shatl bc includcd within a computation of taxcs and asscssr
10.3. ncrinition or RC~I ~stntc Taxc~.
I 0.3. I. "Rcnl cstatc taxcs" sliall nicnn and includc cadi of thc folic
10.3. I. 1. Any form of gcncrsl or spccial asscssnicnt,
liccnsc tax, busincss liccnsc fcc, busincss liccnsc tax, conimcrcial rcntal tax lcvy, chargc
tax, irnposcd by sny authority having thc dircct powcr to tax, including any city, caul
fcdcral govcrnmcnt, or any school, agricultural, lighting, drainage or ollicr irnprovcmcr
district thcrcof, as against any icgnl or cquitablc intcrcst of Landlord in thc i'rcmiscs o
propcrty of which thc Prcmiscs arc a part.
10.3.1.2. Any tax on Landlord's right to rcnt or othcr i
thc Prcmiscs or as against Landlord's busincss of Icasing 111c I'rcmiscs.
. 10.3.1.3. Any asscssmcnr, [ax, kc, lcvy or cliargc in s
partially or total~y, or any asscssmcnt, tax, fcc, ~cvy or chars previously included
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dcfinition of rcal propcrty tax, it bcing acknowlcdgcd by Tcnant and Landlord that Propr
was adoptcd by thc votcrs of thc Statc of California in tlic Junc 1978 clcction and that ass
taxcs, fccs, lcvics and cliargcs may bc iniposcd by govcrnnicnial agcncics for such scrvic
protcction, strcct,sidcwalk and road maintcnancc, rcfusc rcmoval and for othcr govcrnnicnta
CormcrIy providcd without chargc to propcrty Owncrs or Occupants. It is thc intcntion of Tc
Landlord that all such new and incrcascd asscssmcnts, taxcs, fccs, icvics and chargcs, an
asscssmcnts, taxcs, fccs, lcvics and chargcs bc includcd within thc dcfinition of rca1 propcr
purposcs of this Lcasc.
10.3.1.4. Any tax allocablc to or mcasurcd by tlic Gross F of thc Prcmiscs or thc rcntal payablc Iicrcundcr, including, without limitation, any gross ir
or cxcisc tax lcvicd by tlic State or California, any political subdivision thcrcof, city o
govcrnmcnt, with rcspcct to thc rcccipt of such rcntril, or upon thc posscssion, Icasing, o
managcmcnt, maintcnancc, altcration. rcpair, usc or occupancy by Tcnant of tlic Prcmisc
portion thcrcof.
10.3.1.5. Any tax upon this transaction or any documcnt
Tcnant is a party, crcating or transfcrring an intcrcst or an cstatc in thc Prcmiscs.
10.3.2. "Rcal cstatc taxes" shall not includc Landlord's fcdcral or statc
franchise, inhcritancc or cstatc taxcs.
11. RESTRICTION ON PREMTSEZ.
11.1. Effcct 0 f C.C,& R.'s. This Lcasc is subjcct and subordinatc to any
dcclarations, covcnants, conditions and rcstrictions (hcrcaftcr "C.C.SrR.'s") in favor of Land
various major tcnants and owncr/occupants of thc Shopping Ccntcr. Thc C.C.SrR.'s contro
othcr things, signagc, usc of thc Prcmiscs, Landscaping and parking, loading and cxtcrior cl
of buildings, and maintcnancc of thc Shopping Ccntcr. Tcnant acknowlcdgcs that La
dccisions affccting thc dcvclopmcnt, maintcnancc and rnanagcmcnt of thc Shopping Ccntcr
in conformity with thc C.C.&R.'s. \Vhcncvcr approval of Landlord is rcquircd hcrcundcr
agrccs that thc rcquircnicnt of thc C.C.&IZ.'s shall constitutc a rcasonablc basis for La
approval or disapproval undcr thc tcrnis of this Lcasc.
11.2. Rulcs and RcEulatiQnz. Landlord shall havc Llic right from timc to
promulgatc amcndmcnts and rulcs and rcgulations for thc safcty, carc and clcanlincss of thc F
rhc Shopping Ccntcr in w.hich thc Prcniiscs arc locatcd and 311 common arcas, or for thc pres
of good ordcr. On dclivcry of a copy of such anicndmcnts and rulcs and rcgulations to
Tcnant shall comply with thc rulcs and rcgulations, and a violation of any of thcm shall cc
a dcrault by Tcnant undcr this lcasc. If thcrc is a conrlict bctwccn thc rulcs and rcgulations or tlic provisions of this Icasc, tlic provisions of this lcasc shall prcvail. Landlord sIia11 I
rcasonablc cfforts to cnforcc thc rulcs and rcgulations uniformly against all tcnants in thc S
Ccntcr in which tlic Prcniiscs arc locatcd, and no sucli rulcs and rcgulations shrill rcquirc Tc
pay additional rcnt undcr this Lcasc.
12. COMMON AREAS.
I
.-.a.
within thc Shopping Ccntcr outsidc thc cxtcrior boundaries of thc build
structurcs witfiin thc C
ngrcss, cgrcss, parking or visit changcs at any tinic and from timc to Ihc Prcmiscs. Landlord also rcscrvcs
the six, shapc, location, numbcr
changc shall cntitlc Tcnan
. Landlord shall maintain tlic Common Arc
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pro rata sharc of Common Arcas Expcnscs shall bc cqual to thc ratio of thc Gross Floor 1
Prcniiscs to thc Gross Floor Arca of all Prcrniscs in tlic Shopping Ccntcr, as thc sanic may c1
timc to tinic. Tenant's sliarc of Common Arcas Expcnscs shall also includc a
cxpcndcd in connection with thc Common Arcas for all gcncral maint
ntcnancc an
systcms, storm drainagc systcms, and any othc
Monthly Rcntal tlicn payablc by
stcnis; pcrsonncl to implcnicnt SI
scrviccs; dcprcciation and
solcly for thc opcr
any othcr costs 1
's supcrvision of tfic niaintcnancc, rcpair and/or rcplaccnicn[ of sa,
12.3. Lnndlord's Rirht 10 Acl. Landlord shall hnvc thc riglit to:
12.3.1. Prcscribc ccrtain scctions within tlic Common Arcas, or wi
propcrty outsidc tlic Common Arcas not niorc than onc-half (1/2) milc from thc ncarcsf bo
thc Shopping Ccntcr, for usc 3s parking spaccs by Tcnnnt and its authorizcd rcprcscntati
only thosc scctions for parking. Within tcn (IO) days aftcr LandIord rcqucsts, Tcnant 5113
to Landlord thc automobilc Iiccnsc nunibcrs or tlic vcl~iclcs customarily uscd by Tcna
authorizcd rcprcscntativcs, and tlicrcnftcr within tcn (10) days aftcr any cliangc Tcnant st
Landlord of thc changc.
12.3.2. ScIcct a pcrson to maintain and opcratc any of thc Common A
any timc Landlord dctcrniincs that thc bcst in[crcs[s.of thc Shopping Ccntcr will bc scrvcd 1
any of tlic Conirnon Arcas niaintaincd and opcratcd by that pcrson. Landlord shall havc 111
ncgotiatc and cntcr into 1 contract with that pcrson on such tcrnis and conditions and forsu
of timc 3s Landlord dccms rcasonablc and propcr both as to scrvicc and as to cost.
e
1 2.4. Paymcnt or Common Arcas Exocnscz. Prior to tlic commcnccnicnt of cacli
or such othcr annual accounting pcriod as Landlord sliall utilizc from tirnc to timc, Land
givc Tcnnnt 3 writtcn cstirnatc 01' thc Additional Rcnt payablc by Tcnant during thc con
Tcnant shall pay such csrimatcd amount to Landlord in cqual monthly installments, in ac
thc samc timc thc Dasc Monthly Rcntnl is paid. Within nincty (90) days aftcr thc cnd of (
ycar, or such othcr annual accounting pcriod as Landlord shall utilizc from timc to timc,
shall furnish to Tcnant a statcmcnt showing in rcasonablc dctail thc actual costs inc
Landlord Cor thc opcration and majntcnancc of thc Shopping Ccntcr during tlic ycar tlicn CI
Tcnant shall pay to Landlord Tcnant's proRortionarc sfiarc of thc cost incurrcd in cxcc
paymcnts or Additional Rcnt m3dc by Tcnant within tcn (10) days of rcccipt of such statc
the cvcnt that thc paymcnts of Additional Rcnt madc by Tcnant cxcccd Tcnant's sharc Of t
cost of the opcration and maintcnancc of thc Shopping Ccntcr, tlic amount of any such CX'
bc crcditcd by landlord to thc Additional Rcnt ncxt duc and owing; providcd, l~owcvcr, 11
Lcasc tcrm has cxpircd, Landlord shall accompany said statcnicnt with tlic amount duc to
12.5. ysc of Common Arca5. Tcnant shall havc for its usc and bcncfit thc nom
right in common with Landlord and futurc Owncrs, otlicr Occupants of thc Shopping CC
thcir agcnts, crnployccs, custoincrs, liccnsccs and sublcssccs io usc thc Common Arcas fror:
tirnc cxisting during thc cntirc tcrni of this Lcasc, or any cxtcnsion tlicrcof, for ingrcss an
roadway, autoniobilc parking and sidcwalks. Tcnant's usc of thc Common Arcas shall bc SI
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and in accordancc with sucli.rcasonablc rulcs and rcgulations as may bc adoptcd by Lanc
timc to timc.
J 3. SIGNS AND ADVERTISING.
13.1. Fcrmittcd Activitics. Tcnant niay affix and maintain within twclvc (12:
tfic insidc of any window and upon tfic cxtcrior of tlic building advcrtising its busin
Prcmiscs only such signs, advcrtising placards, nanics, insignias, tradcrnarks and otlicr c
matcrial as shall fiavc first rcccivcd tlic writtcn approval or Landlord 3s io six, typc, coloi
copy, naturc and display qualitics. Said approvaf by Landlord sliall not bc unrcason3bly
Tcnant shall kccp cxtcrior signs lightcd during hours rcasonably cstablislicd by Landlord
13.2. Pro11 ibi t ctf Act ivit ics.
13.2.1.
13.2.2.
Tcnant shall not conduct or pcrniit any salc by auction on tlit
Tcnant shall not display, slorc or scll any nicrcliandisc o
dcfincd cxtcrior walls and pcrniancnt doorways of tlic I'rcniiscs without Landlord's pril
conscnt. Tcnant shall not, without Landlord's conscnt, install any cxtcrior lighting, am
similar dcviccs or use in, upon or about tlic Prcniiscs any advcrtising nicdia tvllicli may b
sccn outsidc thc Prcmiscs, such as flashing lights, scnrcli lights, Ioudspcakcrs, phonograpl
broadcasts.
13.2.3. Tcnant shall not, without Landlord's writtcn conscnt, solicit 1
tlic Common Arcas, nor distributc any hand bills or otlicr advcrtising niattcr in lhc Comn
Tcnnnt's Qblim (ions. Tcnnnt shall install an cxtcrior sign in accordanci
attachcd sign critcria sct forth in Exhibit "C," incorporatcd by rcfcrcncc hcrcin, within I
days from Tcnant's opcning for busincss. Tcnnnt shall nt all tinics maintain its show wir
signs in a ncat and ordcrly condition. If Tcnant, aftcr fivc (5) days wriftcn noticc, sli
propcrly maintain or rcpair any cxtcrior sign, Landlord may do so and thc rcasonablc co
shall bc immcdiatcly payabIc by Tcnant to Landlord. All advcrtisiiig undcrtakcn by Tc
rcrcr to thc location of Tcnant as "I'OINSETTIA VILLAGE."
13.3.
13.4. 1,antllord's Discrction. Landlord niay, at Tcnant's cxpcnsc, rcniovc any itc
constructcd or maintnincd that docs not comply with tlic provisions of this Icasc.
14. LANDLORD'S ENTRY ON PI? EMTSES.
14.1. Rir.lit of Entry. Lancllord and its nutliorizcd rcprcscntntivcs sIia11 liavc (f Ei cntcr thc Prcmiscs at all rcasonsblc timcs for any of thc following purposcs.
14.1. I. To dctcriiiinc wlicthcr tlic Prcmiscs arc in good condition anc
Tcnant is complying with its obligations undcr this Lcasc.
14. I .2. To do any ncccssary main[cnnncc and to mnkc any rcstorat:
Prcmiscs or tfic building and othcr iniprovcmcnts in which tlic Prcniiscs arc locntcd that Lar
thc right or obligation to pcrform.
I: 4.1.3. To scrvc, post or kccp postcd any noticcs rcquircd or allowcd
provisions of this Lcasc.
14.1.4. To post "for salc" signs at any tinic during thc tcrni, to post "Cc
"for Icasc" signs during (lic last six (6) months of rhc fcrm, or during any pcriod whilc Tc
dcfaul t.
14.1.5. To show tlic Prcmiscs to prospcctivc brokcrs, agcnts, buycrs, t
persons intcrcstcd in an cxcliangc at any tirric during tlic tcrm.
I 4. I .6. To sliorc thc foundations, footings and walls of thc Prcmis
Shopping Ccntcr in which tlic I'rcniiscs arc locntcd and lo crccl scafl'oIding and protcctivc b
around and about tlic Prcmiscs, but not so as to prcvcnt cn~ry to tlic Prcmiscs, and to do any
or thing ncccssaty for tlic safcty or prcscrvalion of tlic I'rcmiscs or thc building a
improvcmcnts in which tlic Prcmiscs arc loca lcd.
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J 4.2. Excavation and Construction. If any cxcavation or otlicr construction is un
or is about to bc undcrlakcn on any adjnccnt propcrty or ncarby strcct, Landlord's right u
provision cxtcnds to tlic owncr of tlic adjaccnt propcrty on wliicli cxcavation or construcl
takc placc and tlic adjacent propcrty owncr's authorizcd rcprcscntativcs.
14.3. Dnrnarcs Dtic to Entry on i'rcmisc?.
1.1.3.1. Landlord shall not bc liablc in any manncr for any incon-
disturbancc, loss of busincss, nuisnncc or otlicr dnmngcs arising out of Landlord's cntr
Prcmiscs as providcd in this Paragraph j4, cxccpt damagc rcsulting from tlic acts or onii
Landlord or its authorizcd rcprcscnrativcs.
14.3.2. Tcnant shall not bc cntitlcd to an abatcrncnt or rcduction o
Landlord cxcrciscs any rights rcscrvcd in this Paragraph 14.
14.3.3. Landlord slinll conduct its activitics on thc Prcmiscs as allowc
Paragraph 14. in a manncr that will C~USC tlic lcast possiblc inconvcnicncc, annoyancc or dis
to Tcnant.
IS. &S$l G N MENT A N D S UTI I, ETI- I N C;.
15.1. No AssiEnrncnt.
15.1.1. Tcnant shall not cithcr voluntarily or by opcration of law as!
cncumbcr, plcdgc or othcrwisc transfcr a11 or any part of Tcnant's Icaschold cstatc hcrci
pcrmit thc Prcrniscs to bc occupicd by anyonc othcr tlian Tcnant or Tcnant's cmployccs, or s
Prcmiscs, or any portion thcrcof, without obtaining, in cach such instancc. Landlord's prio
conscnt. Landlord's conscnt shall not bc unrcasonably wichlicld providcd that thc occupancy
lhcrcfroni will not violatc any rights tlicrctoforc givcn to any othcr Lcsscc or occupar
Shopping Ccntcr and that substantially thc sanic typc, class, naturc and quality of
mcrchandisc, scrviccs, managcrncnt rcpulation and financial soundncss of owncrship is m3
and will continuc to bc furnislicd in a mnnncr compnribic witti tlic high slandards contcmt
this Icasc and, providcd furthcr, that nonc or tlic covcnants, conditions or obligations inipo
this Lcasc is thcrcby impaircd or diminishcd.
13.1.2. Any assign nicn t, cncu nibrn ncc or su blcnsc without landlord'!
shall bc voidablc and, at Landlord's clcction, shall constitutc a dcfaulr. Conscnt by Landlo
or mort assignmcnts of this LC~SC or to onc or niorc sublcttings of tlic Prcmiscs shall not o
cxhaust Landlord's rights undcr this Paragrapti 15.1. Thc voluntnry or otlicr surrcndcr of t
by Tcnant or a mutual canccllcltion Iicrcof shall not work a mcrgcr and shall, at thc c
Landlord, tcrminatc a11 or any cxisting sublcascs or subtcnnncics, or slirrll opcratc as an as
to Landlord of such sublcascs or subtcnnncics.
z
t 15. I .3. If Tcnant is n corporalion wliicl~, undcr tlic then current g
publislicd by thc Conimissioncr of Corporations of tlic St3tc of California, is not dccmcd
corporation, or is an unincorporatcd associa tion or partncrship, rlic transfcr, assign
hypothccation of any stock or intcrcst in such corporation. association or partncrship in the 3
in cxccss of fifty pcrccnt (50%) shall bc dccmcd an assignmcnt within thc mcaning and prov
this Paragraph.
15.1.4. Tcnant agrccs to rciybursc Landlord for Landlord's rcasona
and atlorncy's fccs incurrcd in conjunction with tlic proccssing and documcntation of :
rcqucslcd assignmcnt, sublctting, transfcr, ctinngc of owncrsliip or Iiypotliccntion of this
Tcnant's jnfcrcsl in and to tlic Prcrniscs. Thc amount of such attorncy's fccs shall not cxcc
I-Iundrcd FXty Dollars ($350).
15.2. Pcrrnittctl Trnnsfcrs.
15.2.1. If Tcnant dcsircs at any timc to assign this Lcasc or to sc
Prcmiscs or any portion thcrcof, it shall firsr notiry Landlord of its dcsirc to do so 3nd sha
in writing to Landlord (I) thc namc of thc proposcd subtcnant or assigncc; (2) thc nntur
proposcd subtenant's or assigncc's busincss to bc carricd on in tiic I'rcmiscs; (3) thc tc
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t. . . . provisions of the proposcd sublcasc or assignmcnt; and (I) such rcasonablc financial informa
Landlord may rcqucst conccrning thc proposcd subtcnant or assigncc.
15.2.2. No sublctting or assignmcnt, cvcn with tlic conscnt of Landlorc
relieve Tcnant of its obligations to pay thc rcnt and pcrform a11 of the ofhcr obligations
pcrformcd by Tcnant hcrcundcr. Thc acccptancc of rcnt by Landlord from any othcr pcrso
not be dccmcd to bc a waivcr by Landlord of any provision of this Lcasc or to bc a conscnt
assignmcnt or sublctting.
is.3. Jnvoluntary AssiRnmcnt.
i 15.3.1. No intcrcst of Tcnant in this Icasc shall bc assignablc by opcration
(including, without limitation, tlic transfcr of this Lcasc by tcstacy or intcstacy).
following acts shall bc considcrcd an involuntary assignmcnt:
Each
15.3.1.1. If Tcnant is or bccorncs bankrupt or insolvcnt, mal
assignmcnt for thc bcncfit of crcditors or institutcs rr procccding undcr tfic Bankruptcy Act in
Tcnant is thc bankrupt; or, if Tcnant is a partncrsliip or consisis of morc than onc pcrson or c
if any partncr of tfic partncrship or otlicr pcrson or cntity is or bccomcs bankrupt or insolvc
makcs an assignmcnt for thc bcncrit of crcditors.
1 5.3. I .2. If a writ of attaclirncnt or cxccution is lcvicd 01
Lcasc.
1 s.3, I .3. If, in any procccding or action to which Tcnant is a I
a rcccivcr is appointcd with authority to takc posscssion of thc Prcmiscs.
15.3.2. An involuntary nssignnicnt shall constitutc a dcfault by Tcnant,
Landlord shall havc the right to clcct to tcrminatc this Lcnsc, in which casc this Lcasc shall n
trcatcd as an assct of Tcnant.
15.3.3. If [his Lcnsc is assigncd to any pcrson orcntity pursuant to thc provi
of thc Bankruptcy Codc, any and all nionics or. otlicr considcration pnyablc or otlicrwisc t
dclivcrcd in conncction with such assignnicnt shall bc paid or dclivcrcd IO Landlord, shall bc
cxclusivc propcrty of Landlord and shall not consiitutc propcrty of Tcnant or of thc cstatc of Tc
within thc meaning or thc Uankruptcy Codc. Any and 311 nionics or otlicr considcration constiti
Landlord's propcrty undcr thc prcccdinp, provision not paid or clclivcrcd to Landlord shall bc hc
trust Tor the bcncfit of Landlord and bc promptly paid or dclivcrcd to Landlord.
15.3.4. Any pcrson or cntity to whicli this Lcnsc is assigncd pursuant to
provisions of tlic Bankruptcy Codc shall bc dccmcd without furthcr 3ct or dccd to liavc assurncc
of thc obligations arising undcr this Lcnsc on snd aftcr thc datc of such assignmcnt. Any s
nssigncc sIia11 upon dcrnand cxccutc and dclivcr to Landlord an instrumcnt confirming s
fi
assumption. /
15.3.5. This is 3 lcnsc of rcal propcrty in a shopping ccntcr within thc mcan
of Subscction 36S(b)(3) of tlic Bankrupicy Codc.
15.3.6. Ira writ of attachmcnt or cxccution is lcvicd on this Lcasc, Tcnant SI
havc tcn (IO) days in which to causc tlic altachmcnt or cxccution IO bc rcniovcd. If any involunt
procccding in bankruptcy is brought against Tcnant, or if a rcccivcr is appointcd, Tcnant shall h;
sixty (60) days in which to havc tlic involuntary piocccding dismisscd or thc rcccivcr rcmovcd.
16. ATIANDONM-ENT.
16.1. hbandonmcnt Proiiibifcd. Tcnant shall not vacatc or abandon tlic Prcmiscs at 2
time during the tcrm of tfiis Icrrsc nor pcrmit rhc I'rcmiscs to rcniain unoccupicd for 3 pcriod
Iongcr than fivc (5) consccutivc days during thc tcrni of this Lcasc. If Tcnant shall abandon, vac:
or surrcndcr thc Prcmiscs, or be disposscsscd by proccss of law, or o[Iicrwisc, any personal propci
or trade fixturcs bclonging to Tcnant and lcft on thc Prcniiscs shall, at thc option of Landlord,
dccmcd abandoncd, In such casc, Landlord may disposc of said pcrsonal propcrry in any nmnncr a
is hcrcby rclicvcd of all liability for doing so. Tlicsc provisiolis shall not apply if thc I'rcmiscs S~OL
bc closed and busincss tcmporarily discontinucd thcrcin on account of strikcs, lockouts or simil
C~USCS bcyond thc rcasonablc control of Tcnnnt.
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17. DREACII T3Y TENANT.
6
17.1. pvcnts of Dcf;lul[. Thc occurrcncc of any of tlic following shall constitutc i!
and matcrial dcfault of this Lcasc by Tcnant:
17.1.1. Thc failurc of Tcnant to pay or causc to bc paid wlicn duc a
monics or chargcs rcquircd by this Lcasc to bc paid by Tcnant whcn such failurc continu
pcriod of thrcc (3) days aftcr writlcn noticc thcrcof from Landlord to Tcnant; or
17. I .2. Thc abandonnicnt of tlic Prcmiscs by Tcnant wirhin thc mca
Paragraph 16.1.; or
17.1.3. Tlic failurc of Tcnant to do or causc to bc donc any matcrial ac
than paymcnt of rcnt, monics or chargcs, rcquircd by this Lcasc if failure to pcrform is nc
within thrcc (3) days aftcr noticc has bccn givcn to Tcnant; or
17.1.4. Tcnant causing, pcrmitting or suffcring, without [tic prior
consent of Landlord, any matcrial act whcn this Lcasc rcquircs Landlord’s prior written COI
prohibits such act; or
17.1.5. Tlic occurrcncc of any cvcnt of insolvcncy or bankruptcy with
to Tcnant, including any of tlic following by way of illustration:
17.1 .s. I. Any gcncral assignnicnt or gcncral arrangcmcnt
bcncfit of crcditors;
17.1 S.2. Thc filing of any pctition by or against Tenant
Tcnant cldjudgcd a bankrupt or a pctition for rcorganization or arrangcrncnt undcr any Inw I
to bankruptcy, unlcss such pctirion is filcd against ‘Tcnant and ihc sanic is disniisscd within si.
days;
17.1 s.3. Thc appointnicnt of a trustcc or rcccivcr to takc PO!
of substantially all of Tcnant’s asscrs locatcd in ihc Prcniiscs or of Tcnanr’s intcrcsr in this L
Tlic attachment, cxccution or otlicr judicial sciz
substantially a11 of Tcnsnt’s asscts locatcd at tlic I’rcmiscs or of Tcnant’s intcrcst in this
providcd howcvcr, that Tcnant slia11 hnvc tcn (10) consccutivc days in whjch lo causc thc atta(
or cxccution to bc rcmovcd.
17.1 S.4.
17.2. Curinr, of Dcfaulr. If tlic dcfault of Tcnant as sct forth in Paragraph 17.1.
g rcasonably bc curcd within thrcc (3) days, Tcnant shall no[ bc in dcfnult of this Lcasc if *
commcnccs to curc thc dcfault within thc thrcc (3) day pcriod and diligently and in goo(
continua to curc thc dcfauli, bui in any cvcnt thc pcriod during which tlic dcrnult can be curc
not cxcccd nincty (30) days. I
17.3. Nolicc of Default. Noriccs givcn undcr this Paragraph 17. sIial1 spccify thc :
dcraul t.
17.4. Waivcr.
17.4. I. No dclay or omission in tlic cxcrcisc of any riglit or rcmcdy of La
on any dcfault by Tcnant shall impair such a riglit ox rcmcdy or bc construcd as a waivcr.
17.4.2. Thc rcccipt and ncccptancc by Landlord of dclinqucnt rcnt sh:
constitutc a waivcr of any othcr dcfault; it shall constitutc only a waivcr of timcly paymcnt f
particular rcnt .payment involvcd.
17.4.3. No act or conduct of Landlord, including, without limitatio
acccptancc of thc kcys to thc Prcniiscs, sin11 constitute an acccptancc of thc surrcndcr of thc Prc
by Tenant bcforc tlic cxpiration of thc tcrm. Only a noticc from Landlord to Tcnant shall coni
acccptancc of thc surrcndcr of thc Prcniiscs and accomplish a termination of tlic Lcasc.
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17.4.4. Landlord's conscnt to or approval of any act by Tcnant
Landlord's conscnt or approval shall not bc dccmcd to waivc or rcndcr unncccssary
conscnt to or approval of any subscqucnt act by Tcnant.
17.4.5. Any waivcr by landlord of any dcfault must bc in writing an bc a waiver of any othcr dcfault conccrning thc s3mc or any othcr provision of thc Lcas
18. REmDTES UPON IIREACII.
18.1. Lnndlord's RcmcdiG. Landlord sliall liavc thc following rcmcdics if Tcnai
a dcfault. Thcsc rcmcdics arc not cxclusi;c; tticy arc cumulntivc in addition IO any rcmcd
latcr allowcd by law.
18.1.1. Collcct Rcn t Withoo t Tcrniinntinn 1,cns~. Landlord may rcc
Tcnant thc rcnt as it bccomcs duc and any othcr amount ncccssary to compcnsatc Landlc
dctrinicnt proxiniatcly csuscd by Tcnant's failurc to pcrforni its obligations undcr this Lcas
in thc ordinary coursc of things would bc likcly to rcsult thcrcfrom. Landlord may su(
annually or aftcr such qual or uncqual pcriods as Landlord dcsircs for amounts duc 1
Subparagraph 18.1.1. Thc right to collcct rcnt as it bccomcs duc shall tcrminatc upon thc tc
by Landlord of Tcnani's right to posscssion of thc Prcniiscs. Tcnnnt's right to posscssion SI
tcrminatcd unlcss and until Landlord dclivcrs fo Tcnnnr writicn noticc thcrcof.
18.1.2. Tcrminnfc Ixasc. Landlord, cithcr as an altcrnativc or sub:
exercising thc rcmcdics sct forth in Subparagraph 18.1.1.. niny tcrminatc Tcnant's right to
of thc Prcmiscs by and upon dclivcry to Tcnant of wriltcn noticc of tcrniination. Landlord
imrncdiatcly rccntcr thc Prcmiscs snd tnkc posscssion thcrcof pursuant to Icgal proccc
rcmovc all pcrsons and propcrty from thc Prcmiscs. Such propcrty may bc rcniovcd and s
public warchousc or clscwlicrc at thc cost of and for thc account of Tcnant. No noticc of tc
shall bc ncccssary in thc cvcnt that Tcnant has abandoncd thc Prcmiscs. In thc cvcnt that
clccts to tcrminatc Tcnant's fight of posscssion, Landlord niny rccovcr (111 of thc followin
Thc worth at thc tinic of award of thc unpaid r
had bccn carncd at thc time of tcrniination. "Worth at thc timc of award" shall bc con
allowing intcrcst at tlic niaxiniuin ratc an individual is pcrmittcd by Inw to cliargc from thc
thc brcach occurs.
1 8.1.2.1.
1 8. I .2.2. Thc worth at thc timc of award of the amount
thc unpaid rcnt which would havc bccn cnrncd aftcr tcrminntion until the timc of award c:
amount of such rcntal loss that thc Tcnant provcs could hsvc bccn rcasonably avoidcd. "Wc
timc of award" sha11 bc dctcrmincd by allowing intcrcsi at thc maximum ratc an ind
pcrmiitcd by law to cliargc from thc first day 3 brcach occurs. ~
1 8. I .2.3. Thc worth a1 rhc timc of award by which the UI
for thc balance of thc tcrm aftcr 4.11~ tinlc of award cxcccds thc amount of such rcnta1 10s
Tcnanr provcs could bc rcasonably avoidcd. "\\'or[h at chc timc of award" shall bc con
discounting such amount at tlic discount ratc of thc Fcdcral Rcscrvc Uank of San Franci
timc of award, plus onc pcrccnt (1%).
1 8. I .2.4. Any othcr amount ncccssary to compcnsatc Lar
all thc detriment proximatcly causcd by Tcnant's failurc to pcrform its obligations undcr
or which in thc ordinary coursc of things would bc likcly 10 rcsult thcrcrrom, includini
limitcd to, cxpcnscs of rclctting, attorncy's rccs, costs of altcrations and rcpairs, rccording f
fccs and any othcr cxpcnscs customarily resulting from obtaining posscssion of lcascd Prc
rclcasing.
18.1.3. 1,;lndlord's Rirlit to C urc Tcnant's Dcraull. Landlord, at any 1
Tcnant commits a dcf'ault, can curc tlic dcfault at Tcnant's cost. lf Landlord n( any tinic,
of Tcnant's dcfault, pays any sum or docs any act 11131 rcquircs thc paynicnt of any sum, thc
by Landlord shall bc duc immcdiatcly from Tcnant to Landlord at thc tinic tlic sum is pa
paid at a latcr datc sliall bcar inlcrcst at thc maximum ratc an individual is pcrniittcd
charge from thc datc thc sum is paid by Landlord until Landlord is rcirnburscd by Tcnnnt.
togcthcr with intcrcst on it, slinll LC nddilional rcnt.
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19. DAMAGE OR DESTRUCT JON.
19.1. Destruction in Wholc or Part. In Ihc cvcnt that thc Prcniiscs or tlic building i tlic Prcmiscs arc locatcd is partially or complctcly damagcd or dcstroycd or dcclarcd unsafe
for occupation by any authorized public authority Tor any rcason otlicr than Tcnant's act:
occupation, which declaration rcquircs rcpairs to cithcr (Sic Prcniiscs or tlic building in w
Prcmiscs arc locatcd, thc rights and obligations of Tcnant and Landlord shall bc as follows
If thc damagc is covcrcd undcr tlic form of' propcrty insurancc
by Landlord, Landlord sliall rcpair such darnagc 3s soon as is rcasonably possiblc af'tcr ir
procccds arc madc availablc to Landlord, and this Lcasc slinll continuc in full forcc and cf
In tlic cvcnt that sucli damagc is not covcrcd by thc form of F
insurancc carricd by Landlord, Landlord shall rcpair such damagc; providcd, howcvcr, that
darnagc or dcstru'ction cxcccds twcnty pcrccnt (20%) of tlic thcn rcplaccnicnt valuc
improvcrncnts on tlic Prcmiscs (cxclusivc of lradc f'ixturcs, cquipnicnt and foundations), L
shall havc no obligation to rcpair such daniagc.
19. I .I.
19.1.2.
19.1.3. Notwilhstanding anything containcd hcrcinabovc, (I) if thc P
are damagcd or dcstroycd to any cxtcnt during tlic last twclvc (12) months of thc tcrm of thi
(2) if tlic uninsured portion of such damagc cxcccds twcnty pcrccnt (202) of tlic thcn rcpl;
valuc of' tlic building of wliicli thc Prcmiscs constitutc all or a part, or (3) if ovcr fifty pcrcci
of thc Prcmiscs shall bc dnmagcd or dcstroycd at any tinic whctlicr such casualty is insurcd
Landlord may, at Landlord's option, canccl and tcrminatc this Lcasc by dclivcry of' writtcn n
Tcnant to so tcrminatc. Said writtcn noticc shall bc madc within thirty (30) days aftcr tlic
occurrence of such damagc or dcstruction and shall bc crfcctivc as of the datc or such no
noticc is not givcn within said thirty (30) day pcriod, Landlord shall bc dccmcd to havc clc
rcstorc tlic damagc or dcstruction and shall rcpair such damagc as soon as rcasonably possit
Rcnt hbntcrncnl. IT Landlord clccts or is rcquircd to makc rcpnirs to thc Pr
Tcnant sliall bc cntitlcd to a rcduction in thc Dnsc Monthly Rcntal during tlic timc in wh
rcpairs arc bcing nindc to tlic cxtcnt to wliich Tcnant's usc of thc Prcniiscs is impaired.
19.2.
19.3. Rcstorntion of Tcnnnt's Proucrty. Landlord's obligation to rcstorc shall not i
thc rcstoration or rcplaccrncnt of Tcnnni's trndc rixturcs, cquipnicnt, mcrchandisc t
improvcnicnts or nltcrations madc by Tcnnnt to thc J'rcniiscs. Tcnant shnll rcstorc and rep1
samc in tlic cvcnt that Landlord is obligntccl or clccts to rcpnir any danmgc or dcstruction
P rc m iscs.
B I 9.4. Wnivcr of Civil Coclc SccIions. Tcnnnt waivcs tlic provisions of' Civil Codc ,
1332(2) and Civil Codc Scction 1333(4) with rcspcct to any dcstruction of' thc Prcmiscs.
20. CONDEMNATION.
9 20. I. Dc f i n i t ions.
20.1.1. "Condcrnnation" mcans (I) tlic cxcrcisc of any govcrnmcntal
whcthcr by lcgal procccdings or othcrwisc, by a condcmnor and (b) a voluntary salc or tranr
Landlord to any condcmnor, cithcr undcr thrcat of condcmnation or whilc lcgal procccdir
condcmnation arc pcnding.
20.1.2. "Datc or taking" mans thc datc tlic condcninor has tlic right to pOs
of' thc propcrty bcing contlcmncd.
20.1.3. "Award" rncans a11 cornpcnsation, sunis or anything of valuc aw
paid or rcccivcd on a total or partial condcmnation.
20.1.4. "Condcrnnor" mcans any public or quasi-public autliority, or I:
corporation or individual, having thc powcr of cqndcnmation.
20.2. Partics' ItiRlits and Oblir,ntions to bc Govcrnctl by Lcasc. If, during the tc
during thc pcriod of' timc bctwccn thc cxcc-:tion of this Lcnsc and thc datc thc tcrm commcnccr
is any taking of' all or any part of' tlic building, otlicr improvcmcnts or land of which tlic Pri
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arc a part or any intcrcsf in this Icasc by condcmnation, thc rights and obligations of thc part]
be dctcrniincd pursuant to Pnragraphs 20.1. through 20.5.
20.3. Toto1 Taking. If tlic Prcrniscs arc totally takcn by condcmnation, this Lca tcrminatc on thc datc of taking.
20.4. partial Taking. If any portion of tlic Prcmiscs is takcn by condcmnation, thi sliall rcmain in cffcct, cxccpt that Tcnant can clcct to tcrniinatc this Icasc if rirty'pcrcent (
morc oT thc total numbcr of squarc fcct in thc Prcmiscs is takcn. If Tcnant clccts to tcrniin Lcase, Tcnant must cxcrcisc its right to tcrminatc pursuant to this paragraph by giving nc
Landlord within thirty (30) days artcr thc naturc and thc cxtcnt oT thc taking havc bccn
dctcrniincd. If Tcnant clccts to tcrminatc this Lcasc as providcd in this paragraph, Tcnant sh
notify Landlord of thc datc of tcrmination, which datc shall not bc carlicr than thirty (30) dl
latcr than nincty (90) days, aftcr Tcnant has norificd Landlord of its clcction to tcrminatc;
that this Lcasc shall tcrniinatc on [tic datc of raking if thc d3tc of taking falls on a datc bcfi
datc of tcrmination as dcsignatcd by Tcnant. If Tcnant docs not tcrminatc this Lcasc wit1
thirty (30) day pcriod, this Lcasc shall continuc in full forcc and cffcct cxccpt that minimum ni
rcnt shall bc rcduccd pursuant to Paragraph G.A. of thc Dasic Lcasc Provisions.
20.5. Tnkinp, of Oflicr Arcas. If any portion of thc Common Arcas, parking
driveways is takcn by condcninntion, this Lcasc sliall rcniain in full forcc and cffcct, cxccpt
rifty pcrccnt (50%) or morc of tlic Common Arcas is takcn by condcmnation, cithcr Tcn
Landlord sliaII havc thc clcction to tcrminatc this Lcasc pursuant to this paragraph. IT cithcr
clccts to tcrmjnatc this Lcnsc, it must tcrminaLc pursuant IO this paragraph by giving noticc
othcr party within thirty (30) days afrcr [tic naturc and thc cxtcnt of thc taking havc bccn I
dctcrmincd. Thc party tcrrninnting this Lcasc also sha11 notify thc othcr party of thc d
tcrmination, wliich datc shall nor bc carlicr than thirty (30) days or latcr than nincty (90) day:
thc tcrmjnafing party has notiricd thc othcr party of its clcction to tcrminatc; cxccpt that this
shall tcrminatc on thc datc of inking if rhc dnic of taking falls on a datc bcforc tlic d
tcrminntion dcsignatcd in thc noricc from tlic tcrniinating party. If this Lcasc is not fcrm
within thc thirty (30) day pcriod, it shall conlinuc in full rorcc nnd cffcct.
20.6. Waivcr of C,C.P. Scction 1265.13Q. Each party waivcs thc provisions of Code of
Proccdurc Scction 1265.130 allowing citlicr party to pctition thc supcrior court to tcrminatc this
in thc cvcnt of a partial taking of tlic Prcmiscs.
20.7. C:0ntinirnfiOn of 1,cnsc Aftcr Condcninntion. If this Lcasc is not tcrniinat
Landlord or Tcnant, it shall rcmain in Tu41 forcc and cffcct as to tlic portion of thc Prc
rcmnining; providcd, howcvcr, tlint tlic Dnsc hlonthly Rcntal and Tcnant's sharc of Common
Expcnscs shall bc rcduccd in proportion to thc rcduction of thc Gross Floor Arcn of thc Prcmisc
such cvcnt, Landlord shall, 31 Lnndlord's cxpcnsc, rcstorc thc Prcniiscs to a coniplctc unit 01
quality and cliaractcr, cxccpt as to sizc, as cxistcd prior to thc datc on which thc condcn
a u t h o r i t y took p osscs s ion.
c
/
20.8. Allocation of Conclcmnalion Award. AI1 awards for tlic taking of any part 0
Prcniiscs or procccds from rhc salc nindc undcr tlic tlircat of ~lic cxcrcisc of thc powcr of cm
domain shall bc thc propcrty of Landlord, wlictlicr niadc ns conipcnsation for diminution of va1
thc Icascliold cstatc, for tlic taking of tlic Tcc, or as scvcrancc daniagc; providcd, howcvcr, that Tc
shall bc cntiilcd to any award Tor loss of or damage to Tcnant's tradc fixturcs and rcmovablc pcr!
propcr t y.
21. SURRENDER OF PREMISES.
21.1. Timc Pcriod for Strrrcndcr. On cxpiration or Tivc (5) days aftcr tcrmination o
term, Tcnilnt shall surrcndcr 10 Landlord thc Prcniiscs and a11 Tcnant's improvcmcnts and altcra
in good condition (cxccpt for ordinary wcar and tcar occurring after thc last ncccssary niainfcn
madc by Tcnant and dcstruction to rhc Prcrniscs covcrcd by Paragraph. 19.1.) cxccpt for altcrat
that Tcnant has the right to rcinovc or is obligated to rcmovc undcr tlic provisions oT Paragraph!
and 5.4. Tenant sliall rcmovc all of its pcrsonal propcrty within tlic nbovc-statcd timc. Tcnant !
pcrrorm a11 rcstoration niadc ncccssary by thc rcmoval oT any altcrntions or Tenant's pcrs
propcrty within tlic timc pcriods stntcd in this paragr;lph.
2 1.2. La n d Iord's R i r,li I s I 1 DO n Surrcncicr. Landlord can clcct to rctain or disposc or in
manncr any alterations or Tcnanl's pcrsonnl propcrly 11131 Tcnnnt docs not rcmovc from thc Prcn
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on cxpiration or termination of thc tcrm as allowed or rcquircd by this Lcasc by giving at 1
(IO) days noticc to Tcnant. Tiilc to any such altcrntions or Tcnant's pcrsonal propcrty that L
clccts to retain or disposc of upon cxpiration of thc tcn (10) day pcriod shall vcst in Li
Tcnant waivcs all claims against Landlord for any damagc to Tcnant rcsulting from La
rctcntion or disposition of any such altcrations or Tcnnnt's pcrsonnl propcrty. Tcnant shall 1
to Landlord for Landlord's costs Cor storing, rcmoving and disposing of any altcrations or 1
pcrsonal propcrty.
2 1.3. Fnilurc to Timclv Surrcndcr. If Tcnant fails to surrcndcr thc Prcmiscs to L
on cxpiration or fivc (5) days aftcr tcrniination of tlic tcrrn as rcquircd by this Paragraph 21.,
shall hold Landlord harmless from 311 dimagcs rcsulting from Tcnant's failurc to surrcn
Prcmiscs, including, without limitation, claims madc by a succccding tcnant rcsulting from 7
failure to surrcndcr thc Prcmiscs.
22. ITOLDTNG OVER.
22.1. Month-to-Month Tcnnncy. If Tcnant, with Landlord's conscnt, remains in pos of the Prcmiscs aftcr cxpiration or tcrmination of rhc tcrm, or aftcr thc datc in any noticc 81
Landlord to Tcnant tcrminating this lcasc, such posscssion by Tcnant shall bc dccmcd to bc a
to-month tcnancy tcrminablc on thirty (30) days noticc givcn at any timc by cithcr party.
22.2. Rcntnl Durinp. Iloltlinr, Ovcr. During any such month-to-month tcnancy, '
shall pay a11 rcnt rcquircd by this Lcasc, and if pcrccntngc rcnt is rcquircd by tlic Lcasc it s
paid monthly on or bcforc thc tcntli (10th) day of cacti month.
22.3. Lcnsc Provisions Rcmain in Effect. A11 provisions of this Lcasc, cxccpl
pertaining to tcrm, option to cxtcnd and option to acquirc [tic Prcmiscs, shall npply to ttic mo
month tcnancy.
23. ATTORNEY'S FEES.
23. I. Litimtion Conccrninr. 1,cnsc;. If cithcr party bccomcs 3 party to any liti
conccrning this Lcasc, tlic Prcniiscs or rhc building or othcr irnprovcnicnts in which thc Prcmi!
Iocatcd, by rcason of any act or omission of tlic othcr party or its nuthorizcd rcprcscntativcs, a,
by any act or omission of tlic party that bccomcs a party to that litigation or any act or omks
its autliorizcd rcprcscntativcs, thc party that causcs thc othcr party to bccomc involvcd i
litigation shall bc liablc to that parry for rcnsonablc attorncy's fccs and court costs incurrcd b:
thc litigation.
23.2. . Litination Arisinp. Ouf of 1,cgs~. If cirhcr party cornmcnccs an action again
other party arising out of or in conncction with this Lcasc, thc prcv,ailing party ~11311 bc cntit
havc and rccovcr from tlic losing party rcasonablc attorncy's fccs and costs of suit.
24.
P
SALE OF TllE T'REMlSES,RY LANDLORD.
24.1. Landlord's Rcsidual Liability. Notwitlistanding any provisions of this L
Landlord may assign, in wholc or in pnrt, Landlord's intcrcsr in this LCSSC and may sell all 01 of thc rcal cstatc of which thc Prcmiscs arc a part. In thc cvcnt of any salc or cxchsngc o
Prcmiscs by Landlord and assignmcnt by Landlord of this Lcasc. Landlord shall bc 3nd is hc
cntircly freed and rclicvcd of all liability undcr any and all covcnants and obligations contain
or dcrivcd from this Lcasc.or arising out of nny act, occurrcncc or omission rclating to thc Prcl
which occurs aftcr thc consummation of such sak, cxchnngc or assignmcnt.
25. OUTKT ENJOYMENT.
25.1. T,andlord's Co vcnant. If Tcnnnt is not in brcacli undcr tlic covcnants madc in
Lcasc, Landlord covcnants that Tcnant sliall liavc pcaccful and quiet cnjoymcnt of thc Prcr
without hindcrancc on tlic part of Landlord. Landlord will dcfcnd Tcnant in tfic pcaccful and (
cnjoymcnt of thc Prcmiscs against claims of a11 pcrsons claiming through or undcr thc Landlor
26. ESTOPPEL CERTTFTCATES.
26;I. Tcnant's Oblifinlion. Tcnant shall at any tinic durinE thc tcrm of this Lcasc. wi
fivc (5) days of writtcn noticc from Landlord, cxccutc and dclivcr to Landlord a statcnicnt in wri
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certifying that this Lcasc is ur\modificd and in full forcc and cffcct or, if modified, stati,
naturc or such modification. Tcnant's statcmcnt shall includc othcr dctails rcqucstcd by Lan
sucli as the datc to which rcnt and othcr cha'rgcs arc paid, Tcnant's knowlcdgc concernin
uncurcd dcfaults with rcspcct to Landlord's obligations undcr this Lcasc and the naturc o,
dcfaults if thcy arc claimcd. Any such sfatcnicnt may bc rclicd upon conclusivcly by any prosp
purchaser or cncumbranccr of thc Prcmiscs. Tcnant's railurc to dclivcr such statcmcnts withi
timc shall bc conclusivc upon Tcnant that this Icasc is in full forcc and cffcct, cxccpt to thc
any modification has bccn rcprcscntcd by Landlord, and that tlicrc arc no uncurcd dcfaults
Landlord's performnncc, and that not morc than onc month's rcnt has bccn paid in advancc.
27. SURORDTNATJON AND ATTORNMENT.
27.1. Subordination of I-casc to Lnncllord's Financing. Exccpt as othcrwisc pro
Iicrcin, this Lcasc is hcrcby niadc subordinatc to tlic licn of any mortgagc or dccd of trust t
bank, insurancc company or othcr lcnding institution, now or hcrcaftcr in forcc against th
propcrty of which the Prcmiscs constitute a part, and to all advanccs madc or hcrcaftcr niadc
rhc sccurify thcrcof. Any mortgagcc of any mortgagc or bcncficiary of any dccd of trust at an'
cxisting or cncunibcring tlic cstatc of Landlord may, at its opiion, subordinatc its mortgagc 01
of trust to this Lcasc.
27.2. bttornmcnt by Tcnnnt on Forcclosurc. In tlic cvcnt any procccdings arc brougl
forcclosurc, or in thc cvcnt of thc cxcrcisc or thc powcr of salc undcr any first mortgagc or first
of trust madc by Landlord covcring thc Prcmiscs, Tcnant shall attorn to thc purcliascr upon any
forcclosurc or salc and rccognizc sucli purchascr as Landlord undcr this Lcasc.
27.3. Subordination of 1,cnsc to Ccrtnin ARrccmcnls with TtiirtJ ?'attics. Upon tlic rc
of Landlord, Tcnant will subordinntc its rights licrcundcr to any Dcclaration of Rcstriction
Grant of Eascmcnts or any othcr opcration and reciprocal cascnicnt agrccmcnt for acccss and pa
bctwccn Landlord and tlic Owncr(s) or any propcrty locatcd within or adjaccnt to thc Shol
Ccntcr whcncvcr, in tlic rcasonablc discrction of Landlord, it is dctcrmincd that any sucli agrcc
would bc bcncricial to thc usc and opcration of thc Shopping Ccntcr.
27.4. Execution or Documents. Tcnant, upon rcqucst of any party in intcrcst, shall CXI
promptly sucli instrumcnts and ccrtificatcs to carry out tlic intcnt of tliis Articlc 27. as sha
rcqucstcd by Landlord. Tcnant hercby irrcvocably appoints Landlord as attorncy-in-fact for Tc
with lull powcr and authority to cxccutc and dclivcr in thc namc of Tcnant any sucli instrun
and/or ccrtificatcs. If, within tcn (IO) days afrcr thc datc of a writtcn rcqucst by Landloi
cxccutc such instrumcnts, Tcnant shall not II'avc cxccutcd thc samc, Landlord may cxccutc thc
pursuant to thc powcr of attorncy grantcd in thc prcccding SC~~CIICC. B
I
27.5. Nondisfurbancc of Tcnant. Notwitlis\anding any subordination by Tcnant o
intcrcst undcr this Lcasc, Tcnant'i right to quict cnjoymcnt of tlic Prcmiscs shn11 not bc disturbc
Tcnant is not in dcfault undcr tlic tcrms of this Lcasc nnd this Lcasc sliaII rcniain in full forcc
cffcct for tlic full tcrm of this Lcnsc.
28. LIMITATTON OF LIADTLTTY.
28.1. Ar,rccmcn( by Tcnnnt.
28.1.1. In considcration of'tl~c cxccution of this Lcasc by Landlord, Tcr
agrccs in thc cvcnt of any actual or sllcgcd failurc, breach or dcfault hcrcundcr by Landlord:
28.1.1.1. Thc solc and cxclusivc rcmcdy shall bc against
psrtncrship and its partncrship asscts;
28.1. I .2. No pnrtncr of Landlord s1;ould bc sucd or nanicd :
party in any suit or action (cxccpt as may bc ncccssary to sccurc jurisdiction of tlic partncrship
NO scrviccor proccss SI1311 bc nndc against any partnc 28. I. I .3.
Landlord (cxccpt as may bc ncccssary to sccurc jurisdiction of thc partncrship);
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28.1.1.4. No partncr of Landlord shall bc rcquircd to answ(
othcrwisc plcad to any scrvicc of proccss;
28.1.1.5. No judgmcnt will bc ta(kcn against any partnc
Land lord;
28. I. I .G. Any judgmcnt takcn against any partncr of Landlord
bc vacatcd and sct asidc at any timc without licaring;
28.1 A.7. Tlicsc covcnants and agrccmcnts arc cnforccablc bot
Landlord and also by any partncr of Landlord.
28. I .2. Tcnant agrccs that cacli or [tic foregoing covcnants and agrccmcnts s
bc applicablc to any covcnant or agrccmcnt cithcr cxprcssly containcd in this Lcasc or imposcc
statutc or at common law.
28.2. Excvloation of 1,nntllord. Landlord sliall not bc liablc to Tcnant for any damag
Tcnant or Tcnant's propcrty from any causc. Tcnant waivcs all claims against Landlord for dan
to pcrson or propcrty arising Tor any rcason.
29. LlAIIl1,TTY OF SUCC ESSO R .T.
29.1. Inurcmcnt. Thc covcnanls and conditions hcrcin containcd shall apply to and 1
thc hcirs, succcssors, cxccutors, adminis~rators and assigns of a11 of [lie partics Iicrcto, and ail of
partics hcrcto shaIl bc jointly and scvcrally liablc for thc covcnants containcd hcrcin consistcnt 1
thc provisions of Paragraph 15. hcrcof.
30. MTSCELLANEOUS PRQVISTONS.
30.1. Gcndcr nntl Numbcr. \Vlicncvcr thc singular numbcr is uscd in this Lcasc, tlic s;
shall includc thc plural, and thc masculinc shall includc tlic fcniininc and ncutcr gcndcr, and
word "pcrson" shall includc corporation, firm or association, wlicn rcquircd by thc contcxt. '
30.2. Cb. Thc hcadings or titlcs to tlic articlcs and scctions of this Lcasc arc
convcnicncc only and do not in any way dcfinc, liniit or construc thc contcnts of such articlcs :
scctions.
30.3. Entirc Anrccmcnt. This Lcas'c and its cxliibits contain all of tlic agrccmcnts :
conditions niadc bctwccn thc partics with rcspcct to thc hiring of thc Prcmiscs and may not
modiricd orally or in any othcr manncr otlicr than by a writtcn instrumcnt signcd by all tlic par
to this Lcasc.
I
I
30.4. Govcrninp, Law. Tlic laws of thc Statc or California slia11 govcrn thc validi
pcrrormancc and cnforccnicnt of t~ds tcnsc.
30.5. Invnlidity. If any provision of this Lcasc is dctcrmincd to be void by any court
compctcnt jurisdiction, such dctcrmination shall not affcct any otlicr provision of this LCGSC, a
such othcr provisions shall rcmain in full rorcc and cffcct. IT any provision or this Lcasc is capa
of two constructions, onc which would rcndcr tlic provision void and onc which would rcndcr I
provision valid, Ihc provision shall bc intcrprctcd in thc manncr which would rcndcr it valid.
30.6. Psymcntz. Except as may othcrwisc bc cxprcssly statcd, cach paymcnt rcquircd
bc madc by Tcnant shall bc in addition to and not in subsritution for othcr payments to bc madc
Tcnant.
30.7.
30.8.
Timc of Esscncc. Timc is oT tlic csscncc of cadi and cvcry provision oT this Lca
Forcc Maicurc. Any prcvcntion, dclay or stoppagc duc to strikcs, lockouts, lab
disputcs, acts of God, inability to obtain Iabor or niatcrials or rcasonablc substitutes tlicrcfc
govcrnmcntal rcstrictions, rcgula[ions or controls, cncniy or Iiostilc govcrnnicnt action, ci*
commotion, Tirc or othcr casualty, and otlicr causcs bcyond rhc rcasonablc control of thc par
obligatcd to pcrform, shall cxcusc tlic pcrforniancc by such party for a pcriod cqual to that rcsulti
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from such prcvcntion, dcIay or stoppagc, cxccpt tliosc obligations of Tcnant to pay rcnt and t
charges pursuant to thc terms of this Lcasc.
30.9. Pot kc$.
30.9.1. All noticcs to be givcn by onc party to the othcr undcr this Lcasc bc in writing, and shall bc mailcd or dclivcrcd to thc otlicr party at thc addrcsscs spccificd in Itc
of thc Basic Lcasc Provisions.
30.9.2. Mailcd noticcs shall be scnt by Unitcd Statcs Postal Scrvicc, ccrtifi rcgistcrcd mail, postagc prcpaid, and shall bc dccrncd to havc bccn givcn on thc datc postcd b
Unitcd Statcs Postal Scrvicc.
30.9.3.
address to which noticcs shall bc scnt.
Eitlicr party may, by propcr noticc, at any timc dcsignatc a diff
30.10. p. Tcnant rcprcscnts that it has not had dcalings wit
rcal cstate broker, finder or othcr pcrson with rcspcct to this Lcasc in any manner, cxccpt thc b
idcntiricd in itcm 11 of thc Basic Lcasc Provisions. Tcnant shall hold Landlord liarmlcss fro
damages resulting from any claims that may bc asscrtcd against Tcnant and/or Landlord by any
brokcr, findcr or otlicr pcrson with whom Tcnant has or purportcdly lias dcalt.
30.1 1. * McnibcrshiD. Mcrchant's Association.
30.11.1. . Tcnant sliall join and maintain mcmbcrship in good standing
nonprofit mcrchants' association ("the Association") consisting of mcrchants in thc shopping c(
Mcmbcrshipshall incIudcTcnant's obligation topayducs and asscssr
as dctcrrnincd by.thc Assbciation to covcr tlic cxpcnsc of a11 advertising and othcr activities cni
in by ihc Association for thc mutual bcncfit of its mcmbcrs, including, without limitation
cornpcnsation of an cxccutivc sccrctary cmploycd by thc Association for thc purposc or dirc
public rclations and promotions. In no cssc shall Tcnant's contribution for ducs and asscssmci
nny year bc less than twcnty ccnts (S.20) pcr squarc foot of thc total nurnbcr of squarc fcct i
P rcm i scs.
30.1 1.2.
30.1 1.3. Tcnan t sliall also pay to tlic Association on Landlord's dcmand an ii
nsscssrncnt, in addition to thc foregoing ducs and asscssmcnts, in ;1 sum cqual to twcnty-fivc
($.25) per square foot of the total nurnbcr of squarc fcct in. thc Prcmiscs. This sum shall bc USC
tlic purpose of dcfraying the promotional cxpcnscs to bc incurrcd by tlic Association in connc
with Tenant's initial opening in thc Shopping Ccntcr.
31. SI'ECTAL PROVISIONS.
e
31.1. Jlclocation. It is uhdcrstood and agrccd that thc plot plan attached hcrc
Exhibit A is prcliniinary and that prior to thc commcnccmcnt of thc tcrm Ilcrcof Landlord
rcvisc said plot plan and chrlngc tlic location of Tenant's dcmiscd Prcmiscs; providcd, hoa
rcIocation of Tenant's dcmiscd Prcniiscs shall bc subject to Tcnant's approval. In thc cvcnt TI
docs not approve said rclocation, Tcnant may canccl this lease, in which cvcnt any sccurity dc
or prcpaid rcnt paid by Tcnant shaSl bc refunded to Tcnant, and neithcr party shall thcrcaftcr
any further obligations to cacli othcr rcspccting this Lcasc.
3 1.2. Scncrsl. By inscrtion or nupbcrs'in the following blanks, Landlord and T
acknowlcdgc that Paragraph(s) -- -321;33 islarc attachcd hcrcto and made a part hcrcc
nurnbcrs fiavc not bccn set forth in thc blank in this Paragraph 31.2., it is conclusivc th
additional provisions arc a part of this Lcasc.
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IN WITNESS WIIEREOF, Landlord and Tenant havc executed this Shopping
Center Lease as of the day and year first above written.
LANDLORD :
\
Date: X/4/&
//
APPROVED AS TO FORM:
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ADDENDUM
32. It is understood by Tenant and Landlord that at the
expiration of the original 12 month term that the tenancy will
automatically continue on a month to month basis until
terminated by either party with not less than 30 days written
notice. If either party wishes to terminate the tenancy at the
end of the original 12 month term, written notice must be
given to the other party not less than 30 days prior to the
expiration of the original term. The effective termination day
of this tenancy shall only be on the last day of the month.
33. Tenant shall use their best efforts to park their vehicles in the parking spaces designated on the attached map as
"Caltrans Parking." Parking on site is limited to not more
than four (4) cars or pick up trucks. No heavy trucks or
other machinery .
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- EXHIBIT A
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LIST- 01: IMl'I<OVISMENT~ b
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Landlord shall providc 10 Tcnant tlic following iaiprovcmcnts:
1. Elcctricnl Scrvicc PmcI. 100 amp scrvicc pcr Lnndlord's jllans.
2. EIcclricaI Outlets. Scvcn (7) wall duplcx convcnicncc outlcts (including onc (I) in r(
3. Lighting. LiEtiting rixturcs shall bc four-tubc florcsccnt light rixturcs rcccss-nlounl
switclicd, pcr Tittc 24 rcquircnicnts; with switcl~s at front ilnd rcar cntrics. Approx
(I) rixturc for cacli 1 15 squnrc rcct of Gross Floor Arcn.
4. Sign Lighting. Landlord sliall supply n junction box IO 11ic cxtcrior sign location wit
wiring froin clcctrical yancl.
5. IIVAC. Rcrrigcratcd air conditioning (approxinintcly 1 ton pcr 400 squnrc fcct of flo
Landlord's plans) and hcatinp, in snlcs arcn.
6. TcIcplionc. Onc (I) outlct locatcd ncar tlx rcnr of tlic storc.
7. Itcstroom. Onc (1) with Iiandicappcd rixturcs, locntcd at tlic rcnr or tlic storc as dcs
Landlord, providcd with slicct vinyl floor covcring, toilct, wall-hung lavatory, cxliau
(I) liglit fixturc, onc (I) duplcx outlct, privacy locksct and iiiirror.
8. Cciling. Suspcndcd 2'x.l' (-bar, acoustical throughout cxccyl in rcstrooni, wliicli shall
tapcd, tcxturcd and yaintcd.
9. Floor. Concrctc slab on gradc,
10. Walls. Drywall tapcd, tcxturcd and paintcd (Navajo whitc), ovcr sluds or innsonry as 4
by Landlord. Dcnlising walls slisll bc full Iiciglrl.
I I. Storcrront. I'cr Landlord's dcsign, onc 3'x7' door or pair 3.~7' as indicntcd on plans wit
lock.
Any otlicr improvcnicnts slinll bc at tlic solc cost and cxpcnsc of Tcnant and shall bc ycr
accordancc with Articlc 5 of said Icnsc. x Landlor 's Initials Tcnaril t s B
- EXI~III~IT 11, PAGE I -
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EXIIIDIT C
SIGN CR ITERTA
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I NTR 0 D UCTI 0 N
It is the intcntion of POINSETTIA VILLAGE to providc an cnvjronmcnt of thc highcst ql
for tliosc who work in thc buildings and for thosc who shop in tlic ccntcr. Thc plar
architccturc, intcrior and landscaping all rcrlcct this conccrn for a wcll-dcsigncd atniospli~
wliicli to work and shop. Consistcnt with this approach, tlic Landlord has paid particular attc to the design and placcmcnt of all signing clcmcnts on, in and around thc projcct. Eacl
location lias bccn carcfully considcrcd, and tlic sign critcria has bccn dcvclopcd so that properly adlicrcd to:
I.
2.
3.
Each tcnant will havc adcquatc idcntification.
Each tcnant will be allowcd to display its corporate synibol, fradcmnrk or logo.
All signing wilI fiavc a consistcnt appcarancc.
APPROVAL OF SIGNING
Each Tcnant shall submit proposctl sign dcsign with colorcd clcvation showing copy
conrjguration, drawn to scalc and dimcnsion to Landlord for rcvicw and cornmcnt.
Aftcr Landlord’s rcvicw is complctcd, thc Tcnnnt sltall submit sign dcsign to tltc City of Carl
Planning Dcpartnicnt for approval and sign pcrinit and shall pay any rccs associatcd thcrci
No signs arc to bc Tabricrttcd or insrnllctl until thc nbovc pcrniit is issucd.
TENANT STGNAGE TYPES
Wnll Sirs: Each building, tcnant or uscr may liavc .G squarc rcct of wall sign Tor cvcry li
foot of building frontrtgc (LC., 20 lincnl fcct of storc front would bc allowcd 12 sqonrc fcc
wall sign.) Sign shall bc locatcd on tlic fa-scia imnicdiatcly in front or Tcnant’s storc or on
wall surfacc immcdiatcly in front of Tcnant’s storc if: a fascia docs not cxist. No wall signs
uscd as part of thc copy.
Size: Maximum lcttcr or logo hcigltt for shops is 24” and n minimum ficight shall bc 12”.
Marcrial: Individual clrnnncl Ic‘ttcrs intcrnally illuminatcd. Facc to bc colorcd plastic. Sidc
bc bronzc colorcd. Rcfcr to Sign Typc C-I.
c allowed to face 1-5 Frccway or frccway on-ramp. Corporntc symbol, tradciiiark or logo ma:
ARCADE TENANT 1DENTIFICATJON
Each Tcnant sltall liavc onc wall-mountcd bladc sign undcr tllc arcadc ncxt to thc cntry dc
Sign is to bc doublc faccd, chain mountcd on standard wall brackct.
&: Sign facc cnn havc a total arc3 not to cxcccd 3 squarc fcct with ~naxiniuni hcight of 2 f
or n niaximum width of 2.5 fcct.
Matcrial: cdwood sandblastcd, carvcd and/or paintcd. Rdcr to Sign Typc D-I.
Landlord’s c.‘ Ini t ia Is * Tenant's lniti
- EXI~IIDIT C, PAGE I -
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