HomeMy WebLinkAboutContracts & Agreements_89-2013_CCv0002.pdf FIRST AMENDMENT TO LEASE AGREEMENT
This first amendment to the commercial lease agreement("Lease")dated June 29,2012,by and
between the City of Redlands,a municipal corporation("City"}and Dill Lumber Company,a California
corporation("Lessee)is made and entered into this 21 st day of May,2013{"Effective Date).City and
Lessee are sometimes referred to herein as a"Party"and,together,as the"Parties."
RECITALS
WHEREAS,on June 29,2012 the Parties entered into a Lease relating to a certain real property
more specifically described as the second floor office area located at the east end of the Lessee's
building commonly known as 1740 W.Redlands Boulevard; and
WHEREAS,it is the desire of the Parties to amend their existing Lease,specifically Section 3,
to extend the term of the Lease by an additional one-year to June 30,2014;
NOW,THEREFORE,the Parties agree as follows:
AGREEMENT
Section 1. Section 3 of the Lease is hereby amended to read as follows:
"The term of this Lease shall be for two years commencing on July 1,2012 and ending on June
30,2014,unless sooner terminated as hereinafter provided."
Section 2. All other terms and conditions of the Lease shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this First Amendment, to Lease
Agreement as of its Effective Date.
CITY OF REDLANDS DILL UJMB(ER COMPANY
-X-
I
By 1-
Pete Aguilar,giayor H.Dill,President
ATTEST:
Sam Irwin,Ci tf dJerk
1Aca\djm\AgreememAM11 Lumber.I st Amd.5.9.13.doc
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R1 Ra's
COMMERCIAL LEASE
(GENERAL FORM)
1. PAR nES.
This Lease is made and entered into this 29tj7iay of June 12012 by and between
Dill Ludoer Carpany, A.California Corporation
_. {hereinafter referred to as'Landlord'}and
(hersinafter referred to as'Tenant y.
2. PREMISES.
Landlord hereby leases to Tenant and Tenant he eW teases from landlord,on the terms and conditions hereinafter set' forth that certain
real propert)'and the bugling$nd other improvements located thereon situated in the City of
County of Sari Bernardino - ,State of CA commonly known as
1740 West Pedlands Blvd.
and described as the second floor off{e rei3 �ted at the east end-of the Landlord's
DOW
b cnl known as 1740 W. Redlands Blvd. tDgether with shared use of parking
as set forth in paragraph- 37.
(said real property is hereinafter called the'Premisss•).
3. TERM.
The term of this tease shall be for One Y �Pmment i i!on 1 2012
and ending on jj Me!30. 2013 unseats sooner temrff"herak-m*r provided.
4. RENT. i r
Tenent shall pay Landlord as Fent for the Premises the folloWing sums per month,in adVanaa on Gtte'flrat 11 of each tnorrth during the term of
this Les":
During the XrW term of thk Lease,the sum Of {,QriA _thoigand' {tri himdrtxd
W 1,500 l dollars per month.
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01 the III at"
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dollegs p--wattr.
Tensest shag pay to Landlord upon the execution of this tease the sutra of
($ }dollars as rent fbi
Rent for any period during the term of this Laws which is for tars than one(1)month,shaft b$a pro rata portion of the monthly ins*irr t
Rent shag be payable without notice or demand and without any deduction,off-act,or abatement in tawfui money of the United States to the
Landlord at the address stated herein for notices or to such other persons or such other places"is the Landlord may dedonate to'Cenant in
writing.
6. SECURMY DEPOSM
Tenant shalt deposit with Landlord upon the execution of this Lease the sum of
{$ }dollars`as a security deposit for the Tenattrs faithful performance of the provisions of this I ease.`If Tenant falls
to pay rent or other chivges due hereu xler,or otherwise defaults with respect to arty provision of this Ledse,landlord may use the security deposit,
or any portion of it,to era the defauit or compensate i-andtord for all damages sustained by Landlord resulting from TenarI default. Tenant shall
immediately on demand pay to Landlord the sum equal to that portion of the security deposit expanded or'appGad by Landlord whfch was provided
for in this paragraph so as to maintain the security deposit in the sum initially deposited with Lal?idlo diord shag not be required to keep the
security deposit separate from its general account nor shall Landlord be required w pay Tenant any interest on'ihe security deposit If Tenant
performs all of Tenartrs obligations under this Lease, the security deposit or that portion}tharsof which has not previously been applied by the
Landlord, shag be returned to Tenant within fourteen(14)days after the expiration of the term of this Lease,or after Tenant has vacated the
Prernives,whichever is later'.
WOLCOTTS FORM 873-Rev.4-94a (Price class 2A) Before you ruse xhis form fig in ed bkenks,and make whatever ciran9ss ars approprTata and
COMME7tCkALLEASE{GeneralForm} rsec rYtoY4�vpsrt3atdartrussactiar.0 rauktataveyeriPyaudassbtthafarm`svnmeasf6rwur
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Page 1 of 8 p x4 stSy
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S. USE.
Tenantshall use the Premises only for f f i Ce for the Redlands P'nlj,ce nebId
affiliated staff,
and for no other purpose wdho%:v ws Laindkines prier written conserrt.
Tenant shad not do,bring or keep anything an.or about the Premises that will cause a cancenatkhn of any Inaurence covering las Premises or the
building in which the Promises aro located. if the rate of any insurance carried by the Landlord Is Increased as a result of Tenant's use,Tenant shall
pay to i arullord within ten(10)days after written demand from Landlord,the amount of arty such increase. Tenant"'connply with all laws
concerning the Premises or Tsnant's use of the Premises,including without limitation.the obligation at Tenant's cost to after,macrtain.or restore
the.Promises In compliance and conformity with all laws relating to the condition,use,or occupancy of the Premises by Tennant during the term of
this Losse. Tenant shall not use or permit the use of the Premises in any manner that wit tend to create waste or a nuisance or,If there shalt be
more that one tenant of the building containing the Promises,which shall unreasonably disturb any otter tenant.
Tenanthereby accepts the Premises in their condlWn existing as of the date thatTanant possesses the Premises,aceto erg applicable zoning,
municipal,county and state laws,ordinances,regulations governing or re$utating the use of the Promises and accepts this Lease subject thereto
and to an matters disclosed thereby. Tenant hereby acknowledges that neither the Landlord not the Landlcrd'sAgent has made any reprosentudon
or warranty to Tonant as to the suitability of the Promises tar the conduct of Tenant's business.
7. TAXES.
(a)Real Property Taxes.
Landlord shag pay all real property taxes and general assessments levied and assessed againa tthe Promises during the
term of tt io Loose.
If it shag be Tenant's obligation to pay such real property taxa and assessments hereunder,Radford shag use Its best[efforts to caZme the
Promises to be separatsty assessed from other real property owned by the Landlord. If Landlord is ueable'to obtain'such a separate assessment,
the assessor's evaluation based on the building and other improvements that are a part of the Promises shag be used to determine the real.property
taxes. if this evaluation is runt available,the pasties shall equitably allocate the property taxes between the building and other improvements that
are a part of the Premium and all buildings and other improvements included In the tax bill. In making the allocation,the parties shalt reasonably
evaluate the factors to determine the amount of the feat property takes so that the allocation of the tiuliding and other inwavements that we a part
of the Premises will not be lass than thus ratio of the total number of square feet of the building and other improvemasns that are a part of the
Premises boars to the tonal number of square feet In all buildings rill other improvements Included In the tax bIL
Rest property taxes attributable to kind in the Premises shag be determined by the ratio that the total number of square-feet in the Premises bears
to the total number of aquae fest of land included In the tax big.
(b) Personal Property Taxes.
Tenant shag pay prior to the defiiequeney ail taxes assessed against and levied upon the trade fixtures.furnishings,equipment and other,personal
property of Tenant contained in the Premises. Tenant shag endeavor to cause such trade fixtures,furnishings and equipment and sit other personal
property to be assessed aril biped separately from the property of the Landlord. If any.9f Tenant's said parsanai property shalt be assessed with
Landkt•d's property,Tenant shag pay to Landlord the taxes attributable to Tenant within ten(10)days after the receipt of a written statement from
Landlo,d setting forth the taxes applicable to Tenant's property.
S. UTILITIES.
Tenant shall make all arrangements and pay for all water,gas,heat,fight,power,telephone and outer utility services supplied to the Premises
together with any taxes thereon and for all connection charges. If any such services are not separately metered to Tenant,tis Tenant shag pay
a reasonable proportion,to be determined by Landlord,of all charges jointly motored with other promisoa:
9. MAINTENANCE AND REPAIRS.
(a) Landlord's Obligations.
Except as provided In Article 12,and except for damage caused by any negilgent or intentional act or omission of Tenant,Tonaries agents,
employees,or kwitees,Landtord-at its sole cost and expense shall keep in good condition and repair the fo undsliotms,exterior wage,arid exterior
roof of the Premises. Landlord shag•also maintain the unexposed electrical,plsnhing and sewage systems including,without limitation,those
portions of the systems lying outside the Premises;window frames,gutters and down spouts on the building,an s)dowalks,landscaping and other
Improvements diet are a part of the Promises or of which the Promises are a part. The Landlord she#also maintain the heating,ventilating anti air-
conditioning systems servicing the Premises. landlord shag resurface and restripe the parking area on or adjacent to the Promises whah necessary.
Landlord shag have thirty(30)days after notice from Tenant to commence to perform Its obligations under this Arte 9.except that Landlord shag
perform its obligaticne immediately if the nature of tris problem presents a hazard or emergency situation. if the Landlord does amt perfoim its
obliget ons within tiro time limit set forth in this paragraph,Tenant can perform said obligations and shag have the right to be reimbursed for the
amount that Tenant actually expends in the performance of Landlord's oblTenant obligations. If Landlord does not reimburse Tenawithin thirty(30)days
after demand from Tenant,Tenant's sold remedy shag be to institute suit against the Landlord,and Tenant shag not have the right to withhold from
future rent the suints Tenant has expended.
(b) Tenant's Obligations.
Subject to the provisions of Sub-paragraph(a)above and Article 12,Tenant at.Tenan2's sole cost and expense shag keep in good order,condition
and repair the Promises and every part thereof including,without imitation,an Tenant's personal property,fixtures,signs,store fronts,plate glass,
show windows,dodre,interior wags,interior calling,and lighting facilities.
If Tenant fags to perform Tenant's obligation as stated herein,Landlord may at its option(but shag not be required to j,enter the Premises,after
ten(10)days prior written notice to Tenant,put the same in good order,condition and repair,and the costs thereof together with interest thereon
at the rate of ten(10%) percent per annum shall become due and payable as additional rental to Landlord together with Tenant's next rental
installment.
Page 2 of 8
11"1�IM��W o�MMANNXWY,
16 ALTERATIONS AND ADDITIONS.
(a) Tenant shall not without the landlord's prior written consent make any aftegrations,Improvements or arkiftlongs In or about the Promises
except for non-stmcturat work which does not exceed$1,000.00 In cost. As a condition to giving any such consent,the Landlord may require the
Tenant to remove any such alterations,improvements,dr additions at the expiration of the term,and to restore the Promises to their prior condition
by giving Tenant thirty(30)do"written notice prior to the expiration of the term that Landlord requires Tenant to remove any such alterations,
improvements,or additions that Taunt has nude to the Premises. If Landlord so elects,Tenant at its"a cost shall restore the Promises to this
condition designated by Landlord In its election before the fast day of the term of the Lease.
defore commencing any work relating to the alterations,additions,or improvements affectingthe Promises,Tenant shall notify Landlord Inwrftggg
of the expected date of the commencement of such work so that Landlord can post and record the appropriate notices of no"esponsibility to protect
Landlord from any mochsnfc`a teens,materialman lions,or any other liens.In any evert Tenant shaft pay,when due,all clalms for labor and materiale
furnished to"for Tenant at or for use in the Premises. Tenant shall not permit any mechanic's liens or materfalmorg's Hens to be levied against the
Premises for any tabor or material furnished to Tenant or claimed to have been furnished to Tenant or Tenant's agents or contractors in co&wc6on
with work of arty character performed or claimed to have been performed on the Premises by or at the direction oftergertt— Tenant shall have the
right to assess the validity of any such lion If,immedisiety on demand by Langford,Tenant procures and records a Hen release bond meeting the
requirements of California Civil Code Section 3143 and shag provide for the payment of any sum that the claimant may recover on the claim(together
with the costs of stint.N It is recovered In the actiord.
,Unless the Landlord requires their removal as set forth above,all afterations,tmprovernents or additions which are made on the Promises by the
TeAsm shall become the property of the Landlord and remain upon and be surrandeirged with the Promises at the expiration of the terns.
Notwithstanding the provisions of this paragraph.Tonant's trade fixtures.furniture,equipment and other machhury,other than that which Is affixed
to the Promises so that it cannot be removed without material or structural damage to the Promises;shag remain the property of the Tenim:and
removed by Tenant at the expiration of the term of this Lease.
11. INSURANCE;INDEMNITY.
(a)Fire Insurance.-
Landlord at its cost shall maintain during the term of this Lease on the Ptamigm a policy or policies of standard*9 and extended
coverage Insurance-to the extent of at least ninety(90%)percent of fVlI replacement value thereof. Said Insurance policies shall be Issued In the
names of Landlord and Tenant as their Interests may appear.
T at' ogst hawlE=aintal uring the term of this Lease aft its personal property,Tergant'�Ahprovsmerrft,and It extent
once,with vandalism and fachief endorsements,to their
Tenon
c shall t 8 12F:
the Prom 2pp( of re and extended coverage I
T�I repla vales. .0o ads from any such poli all be used by Tenant for he=_ Z!it of personal property the stogration of
Improvements or no.
Llabft Insure
Tenant at its Sol at and expense shaft rnaint n during the term of this Lease p c ffggbitlt�and property dam insurance with a single
expense
combined liability of five hundred thous ($600,000.00) dollars, and pro damage Omits of not to that we hundred thouggand
-d
Or
property Zara
op�rgsonga
arty Wo
darn 2- c
'Ing
its of not to that
�guaand
Tenant's
7
son
fish out�gmd
(4100,000.00) Sent,insuring against a ' of Tenant and its authorized re motives arising out of and connection with Tonant's
o oocup f the Premises. p fic fifty insurance and.pro do insurance shaft insure P by Tenant of the Ind
Ind
7
ge of
.6�of
Provisions S )a /b
Sub-paragraph(d)below,w,b the Omits of such insurana however,limit the liability of "ant h9r .
e�. Both
and
maintain Tenant 0 be named as additional reds,and the policies shall cants` oss-liability endorsements. I anent shag fall to proctso maintain
ocure
such' ones the Landlord may, shall not be required to,procure maintain same-at the expe of Tenant and*the cost
ost together
additional
to together
W* interest thereon at the rate ton 0d%1 percent per annum hall become due and payable additional rental to together wit.h
narsfa next rental Instal
(c) WhIVer of Subrogation.
Tenant and Landlord each waives any and all rights of recovery against the other,or againatthe officers,emplgayess,agents,and represinathrps
of the other,for loss of or damage to such waiving party or its property or the property of others under its control,where such lose or dame"is
insured against under any Insurance policy in force'at the time of such loss or damage. Each party shag cause eadh Insurance policy obtained by
it hereunder to provide that the insurance company waives all right of recovery by way of subrogation against either party in connection with any
damage covered-by any such policy.
(44 Hold Harmless.
Tenant shall indemnify and hold Landlord h'armless from and against any and all claim arising from Tenant's use or occupancy of the Premises
or from the conduct of its business or from arty activity,work,or things which may be permitted or suffered by Tenant in or about the Premises
including all damage,costs,attorney's fees,expenses and liabliffies Incurred in the defense of any claim or action or prooggerfing arising flurefforn.
Except for Wgtftord's willful or grossly no~conduct,,Tenant hereby assumes all risk of dome"to property or injury to person in or about the
Premises from any cause.and Tenant hereby waives all claims In respect thereof against Landlord.
(a) Exemption of Landlord from Lial0ty.
Except for LandforTs willful or grossly negligent conduct,Tenant hereby agrees that Landlord shall not be!table for any fr*"to Twurrrs business
or toss of Income therefrom or for damage to the goods,were*,merchandise,or other property of Tenant Tenant's employees,invite", 'customers
or any other person In or about the Prernisew,not shall Landlord be liable for injury to the person of Tenant.Tenant's employees,agents,contractors,
or invitess,whether such damage or injury is caused by or results from fire,steam,electricity,gas,water or rain,or from the breakage,leakage,
obstruction or other defects of pipes,sprinklers.wires,appliances,plumbInM air-conditiorgirg,or fighting fixtures,or from any other cause,whether
such damage results from conditions arising upon the Premises or upon other portions of the building in which the Premises are a paM or from any
other sources or places. Landlord shall not be liable to Tenant for any damages artsing from any act or neglect of any other tenant,if any,of the
building in which the Premises are located.
Page 3 of 8
12. DAMAGE OR DESTRUCTION.
(a)Damage-Insured.
lf,'durMg the term of this Lease,the Premises and/or;he building and other improvements in which the Premises are located are totally 6r partially
destroyed rendering the Promises totally or partially inaccessible or unusable,and such damage or destruction was caused by a casualty cdviaiw
under an Insurance policy required to be maintained hereunder,Landlord shelf restore the Premises and/or the bundling and oii6sr Improvements In
which the Promises are located into substantially the same condition as they were In Immediately before such damage or ciftaxiction,provided that
the restoration can be made under qua existing laws and can be completed within one hundred twenty 0 20)working days after this data of such
destruction or damage. Such destruction or damage shag not termins"this Lease.
If the restoration cannot be made in said 120 day period,then within fifteen it Wdays after the parties hereto determine thin the restoration
cannot be rnade in the time stated in this paragraph,Tenant may terminate this Lease immediately by giving notice to Landlord and the Lee"will
be deemed cancelled as of the date of such damage or destruction. If Tenant fails to terminate this Lease and the Is permitted under
the existing few*.Landlord,at its optiom may terminate this Lease or restore the Premises and/or any other!!q a
in which the Premises
are located within a reasonable time and this Lease"continue in full force and effect. If the existing laws do not permit the restoration,either
party can terminate this Lease Immediately by giving notice to the other party.
Notwithstanding the above,if the Tenant is the insuring party and If the insurance proceeds received by Landlord we not sufficient to effect such
repair,Landlord than give notice to Tenant of the amount required in addition to the insurance proceeds to effect such repair. Tenant may, at
Tenant's option,contribute the rewired amount,but upon failure to do so within thirty(30)days following such n6tice.Landlord's sole remedy shag
be,at Landlord's option and with no liability to Tenant,to cancel and terminate this Lease. If Tenant shall contritrutis ouch amount to Landlord within
said thirty(30)day period,Landlord shelf make such repairs as own as reasonably possible and this Lease shag continue in full fares and effect.
Tenant shall in no event have arty right to reimbursement for any ambunt so contributed.
(b) Dams"-Uninsured.
In the event that the Premises are damaged or destroyed by a casualty which is not covered by the fire and extended coverage insurance which
is required to be carried by the party designated in Article 11(a)above, than Landlord shall restore the same; provided that if the damage or
destruction is to an extent greater than ton(1096)percent of the then replacement cost of the improver on the Premises(exclusive of'renant's
trade fixtures and equipment and exclusive of foundations and footings),then Landlord may elect not to restore and to terminate this Laws. Landlord
must give to Tenant written notice of its intention not to restore within thirty(30)days from the date of succi damage or destruction and,If rot given,
Landlord shall be deemed to have elected to restore and in such event shelf repair any damage as soon as reasonably possible. In this event that
Landlord elects to give such notice of Landlord's intention to cancel and terminate this Lease,Tenant shag have th wright within ton(10)days after
receipt of such notice,to give written notice to Landlord of Tenants intention to repair such damage at Tenant's expense,without reimbursement
from Landlord,in which event the Lease shall continue in full force and effect and Tenant shall proceed to make such repairs as soon as reasonably
possible. If the Tenant does not give such notice within such 10 day period,this Lease shall be conceited and be deemed terminated as of the date
of the occurrence of such damage or destruction.
(a) Damage Now the End of the Term.
N the Premises are totally or partially deptroved or damaged during the last twelve (12)months of the
term of'this Lea".Landlord may, at
Landlord's option, cancel and terminate this Lease as of the date of thq cause of such damageb.giving written notice to Tenant
. — .I y Nix of Landlord's
election to do so within 30 days after the date of the occurrence of such damage.provided,however,that,if the damage or destruction ac"
within the last 12 months of the term and if within fifteeti(15)dap after the date of such damage or destruction Tenant exercises any option to
extend the term provided herein,Landlord shall restore the Premises N obligated to do so as provided in subparagraph(a)or(b)above.
(d) Abatement of Rem
it the Premises are partially or totally destroyed or damaged and Landlord or Tenant repairs or restores them pursuant to the provisions of this
Article 12,the rent payable hereunder for the period during which such damage,repair or restoration continues shag be abated in proportion to the
degree to which Tenant's reasonable use of the Premises is Impaired. Except for the abatement of rent,if any,Tenant shall have no claim against
Landlord for any damages suffeied by reason of anjr such damage,destruction,repair or restoration.
.(a) Trade Factures and Equipment
LfLandlord is required or elects to restore the Premises as provided in this Article, Landlord shall not be required to restore Tenant's
improvements,trade fixtures,equipment or alterations made by Tenant,such excluded items being the sole responsibility of the Tenant to restore
hereunder.
M Total Destruction-Multiterrant Building.
If the Promises we a part of a multiterrant building and there is destruction to the Premises and/or the building of which the Premises are a part
that exceeds"(50%)percent of the then replacement value of the Premises and/or the building in which the Premises am a part from any cause
whether or not covered by the insurance described in Article 11 above,Landlord may, at its option,elect to terminate this Lease(whether or not
the Premises are destroyed)so long as Landlord terminates the leases of an other tenants in the building of which That Premises are a part,effective
as of the date of such damage or destruction.
13. CONDEMNATION.
If thiPremises or any portion thereof are taken by the Power of eminent domain,or sold by Landlord under the Threat of exercise of said power
(all of w'hich is herein referredto as"condemnation"),this Lease shall terminate as'to the part so taken
n n
as of the date the con 'authority
takes f*or possession,whichever occurs first. It more than twenty 120%)percent of the floor area of any buildings on the Premises'or core than
twenty (2096) percent of Thai land area of the Premises not covered with buildings,is Taken by condemnation,either Landlord orTenant may
terminate this Lease as of The date the condemning authority takes possession by notice in writing of such efe6tkin within twenty 120)days after
Page 4 of 8
m
FA
"M"I have notified Tenant of such taking or,in the absence of such notice,then within twenty(20)days after the condemning authority
shelf have taken possession.
. it this Lease is not terminated by either Landlord or Tenant as provided hereinabove,then It shag remain in full force and effect as to the portion
of the Promises remaining,provided that the rental shag be reduced in proportion to the floor area of the buildings taken within the Premises as It
bears to the total floor area of all buildings located on the Premises. In this event this Lease Is cot so terminated,than Landlord agrees at Landlord's
sole cost and expense,to as soon as reasonably possible restore the Premises to-a complete unit of ft quality and character as existed prior V
the condemnation.
Ali awards for the taking of any part of the Premises or any payment made under the threat of the exercise of the power of eminent doqwin shall
be the property of the Landlord,whether made as compensation for the diminution of the value of the leaselhold or for the taking of the fee or as
severance damages;provided,however,that Tenant"I be entitled to any award for toss or damage to Tenant's trade fixtures and.ramovable
personal property.
Each party hereby waives the provisions of Code of Civil Procedure 1265.130&flowing either party to petition the Superior Court to terminate
this Lamm In the event of e partial taking of the Premises.
Rent shall be abated or reduced during the period from the date of taking until the completion of restoration by Landlord,but all other obligations
of Tenant under thle Lease shag remain In full force and offect. The abatement or reduction of the rent shall be based on the extent to which the
restdration Interferes with Tenant's use of the Premises.
t4- ASSIGNMENT AND SUBLETTING.
Tenant shag not voluntarily or by operation of taw assign,transfer,sublet,mortgage,or otherwise transfer or encumber all or any part of Tonants
Interest In this Lease or in the Promises without Landlord's prior written consent which consent shag not be unreasonably withheld. Any attempted
assignment,transfer,mortgage,encumbrance,or subletting without such consent shall be void and shall constitute a breach of this Les".Y Tenant
is a corporation,any dissolution,merger,consolidation or other reorganization of Tenant,or the sale or other tranater of a controlling percent,*"
at tho capital stock of Tenant or the sets of at least fifty-ons(51%)percent of the value of the assets of Tenant,shall be deemed a voluntary
assignment The phrase"controlling percentage'means the ownership of,and the right to vote,stock possessirg at toast ftfty-ono(61%)percent
of the total combined voting power of all classes of Tenant's capital stock issued,outstanding,and entitled to vow for the election of d"ctors.'
This paragraph shag rot apply to corporations the stock of which is traded through an exchange or over the counter,
Regardless of Landlord's consent,no subletting or assignment shaft release Tenant or Tenant's obligation to pay the ram and to perform all other
obligations to be performed by Tenant hereunder for the term of this Lease. The acceptance of rent by Landlord from arty other porson shall not
be deemed e wsWw by Landlord of any provision hereof. Consent to one assignment or subletting shall not be deemed oonoem:to any subsequent
assignment or subletting.
16. DEFAULT.
jail Events of Default.
The occurrence of any one or more of the following events shag constitute a default and breach of this Lease by Tenant:
(1)Failure to pay rent when due,If the failure continues for five(5)days attar written notice has been given to Tenant.
(2)Abandonment and vacation of the Premises(faituro to occupy the Premises for fourteen(14)consecutive do" shad be downed an
abandonment and vocation).
(3)Failure to perform any other provision of this Lease If the failure to perform Is not cured within thirty(30)days after written notice thereof
has been given to Tenant by Landlord. If the default cannot reasonably be cured within said thirty(30)day period,Tenant shall not be k1i d~
under this Lease if Tenant commences td cure the default within the thirty(30)day period and diligently prosecutes the sarno.to completion.
(4)The making by Tenant of any general assignment,or general arrangement for the benefit of creditors;the filing by or against Tenant of
a pedddn to have Tenant adfudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy unless the same
Is dismissed within sbrty(60)days;the appointment of a trustee or receiver to take possession of substantially all of Tenants assets located alt the
Premises or of TonsaWs interest in the Lease,whete possession is not restored to Tenant within thirty(30)days;or the Attachment,execution or
other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest In the Leese,where such seizure Is not
dtscharoed within thirty(30)days.
Notices given under this paragraph shag specify the alleged default and the applicable lease provisions,and shag demand that Tenant perform
the provisions of this Lea"or pay the rent that is in arrears as the cue may be,within the applicable period of time. No such notice shad'be
deemed a forfeiture or a termination of this Lease unless Londlord so elects In the notice.
(b) Landlord's Remedies.
The Landlord shall have the following remedies if Tenant commits a defaultunder this Lease.These remedies ere not excl usivis but are cumulative
andin addition to any remedies now or hereafter allowed by taw.
Landlord can continue this Lease In full force and effect,and the Lease will continue in affect so long as Landlord does not terminate Tenaints
right to possession,and the Landlord shall have the right to collect rent when due. During the period that Tenant is in default,Landlord can enter
the Premises and retet them,or any part of them,to third parties for Tenants account. Tenant shall be gable Immediately to the Landlord for all
costs the Landlord Incurs in rilletting the Premises,including,without Hniftetion,brokers.commissions,expenses of remodeling the Premises required
by the reletting,and like costs. Reletting can be for a period shorter or longer than the remaining term of this Lease. Tenant shag pay to Landlord
the rent due under this Lease on the dates the rent is due,less the rent Landlord receives from any retorting. No act by Landlord allowed by this
paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease. After Tenant's default and for so
long as Landlord has not terminated Tenant's right to possession of the Premises,if Tenant obtains Landlord's consent Tenant shag have the right
to assume or sublet its interest in the Lease,but Tenant shag not be released from liability. Landlord's consent to the propoped assignment or
subletting shag not be unreasonably withhold.
Page 5 of 8
If Landlord elects to mist the Premises as provided In this paragraph,any rent that Landlord receives from such m11A shad apply first t,to
payment of any Indebtedness from Tenant to Landlord Other than the rent due from Tenant to Landlord;secondly,to all costs,Including maintenance,
incurred by Landlord In such retorting,and third,to any rent due and unpaid under this Lane. After deducting the payments referred to In this
paragraph,any sum remaining from the rent Landlord receives from such reletting shall be held by LarW$ord and applied In Payment Of future rent
as rent becomes due under this Lease. In no event shall tenant be entitled to any excess rent received by Landlord. It,on the date rent is due under
this Lease,the rent received from the retorting is less than the rent due on that date,Tenant shall pay to Landlord,In addition to the rwmk*V rent
due,all costs,including maintenance,that Landlord shall have incurred in reletting that remain after applying the rem received from reletting as
provided In this paragraph.
Landlord can,at its option,terminate Tenant's right to possession of the Premises at arry time. No act by Landlord other than giving written
notice to Tenant shall terminate this Lea". Acts of maintenance,efforts to relet the Premises,or this appointmem of a receiver on Landlord's
initiative to protect Landlord's Interest In this Lease shall not constitute a termination of Tenant's right to possession. In the event of Such
termination,Landlord has the right to recover from Tenant:
(1) The worth,at the time of the award,of the unpaid rent that had been earned at thj time of the termination of this Lea";
(Z The worth,at the time of the award,of the amount by which the unpaid rent that would have been earned after the date of the termination
of this Lease until the time of the award exceeds the amount of the loss of rem that Tenant proves could have been reasonably avoided;
(3) The worth,at the time of the award,of the amount by which the unpaid rem for the balance of the term after the im of the award exceeds
the amount of the loss of rent that Tenant proves could have been reasonably avoided,and
(4) Any other amount,including court costs,necessary to compinsate Landlord for ad detriment proximstatV caused by Tenant's default
*The worth at the time of the award,*as used in(1)and(2)of this paragraph Is to be computeq by allowing Interest at the maximum rate an
individual Is permitted by law to charge. "The worth at the time of the award,* as referred to In (3)of this paragraph is to bo computed by
discounting the amount-at the discount rata of the Federal Reserve Bank of San Francisco at the time of the award,plus one(I%)percent
If Tenant Is In default under the term of this Lease,Landlord shall have the additional right to have a receiver appointed to collect rent and
conduct Tenant's business. Neither the filing of a petition for the appointment of a receiver nor the appointment itself shall constitute ail election
by Landlord to terminate this Lease.
Landlord at any time after Tenant commits a default,can cure the default at Tenant's cost and expense. If Landlord at any time,by mason of
Tenant's default,pays any sum or does any act that requires the psyment of any sum,the sum paid by Landlord shall be due Immediately from
Tenant to Landlord at the time the sum is paid,and if paid at a later data shad bear Interest at the maximum rate an I individual Is permitted by law
to charge from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant. The sum,together with Interest thereon,shall be
considered additional rent.
16. SIGNS.
Tenant shall not have the right to place.construct or maintain any sign,advertisement,awning,banner,or other exterior decorations on the
building or other Improvements that are a part of the promises without Landlord's prior,written consent,which consent shaft not'be unreasonably
withhold.
17. EARLY POSSESSION.
in the event that the Landlord shall permk Tenant to occupy the Premises prior to the commepcerqoM date of the term of two Lease,such
occupancy shall be subject to aft the provisions of anis Lease. Said early possession shall not advance the termination data of-this Lease.
18. SUBORDINATION.
This Los",at Landlord's option,shad be subordinate to any ground lease,mortgage,deed of trust.or any other hypothecation for security now
or hereafter placed upon the real property of which the Premises are a pan and to any and all advances made an the security thereof and to all
renewal,modifications,and extensions thereof. Notwithstanding any such subordination,Tenant's right to quiet possession of the Premises shall
not be disturbed If Tenant Is not in default and so long as Tenant shall pay the rent and observe and perform all the other provisions of this Lame,
unless this Lease Is otherwise terminated pursuant to-its terms. If any mortgages,trustee,or ground lessor shag elect to have this Lease prior to
t. the Can of Its mortgage or deed of trust or ground tease,and shad give written notice thereof to Tenant,this Lease sh4tbe deemed prior to such
mortgage,deed of trust or ground lease,whether this Lease Is dated prior to or subsequent to the date of such-mortgage,dead of trust or ground
tease,or the date of recording thereof. Tenant agreis to execute any documents requiring to effect such subordination or to make this Lease prior
to the lien of any mortgage,deed of trust or ground lease,as the case may be.and failing to do so within ten(1 0)do"after written demand from
Landlord does hereby make,constitute and irrevocably appoint Landlord as Tenant's attorney in fact and In Tsmnes name,piece and stead to do
60.
19. SURRENDER.
On the last day of the term hereof,or on any sooner termination,Tenant shall surrender the Promises to Landlord in.good condition,broom dean.
ordinary wear and tear accepted. Tenant shalt repair any damage to the promises occasioned by its use thereof,or by the removal of Tenant's trade
fixtures,furnishings and equipment which repair shall Include the patching and filling of holes and repair of structural damage. Tenant shall remove
all of its personal property and fixtures on the Premises prior to the expiration of the term of this Lease and If required by Landlord pursuant to Article
10(8)above,any alterations,improvements or additions made by Tenant to the Promises. If Tenant fails to surrender the Premises to Landlord on
the expiration of the Lease as required by this paragraph,Tenant shaft hold Landlord harmless from all damages resulting from Tenant's failure to
vacate the Premises.including,without limitation,claims made by any succeeding tenant resulting from Tenant's failure to surrender the Premises.
20. HOLDING OVER.
If the Tenant,with the Laridlord's consent,remains in possession of the Promises after the expiration or terminatioM.of the term of this Lease,
such possession by Tenant shad be deemed to be a tenancy from north-to-month at a rental in the amount of the last&nthfy rental,plus all other
charges payable hereunder,upon all the provisions of this Lease applicable to month-to-month tenancy.
Page 6 of 8
1110111�1�L"J/JJl/.ill./.11111'IUIl1/IJJYJ.r■."\''�1L111I/!�".�h`\11111'111Jllllll111..�"�►11Ui1/
r-4218iUDI"NG 7NSUCCES
The terms,conditions and Covenants of this Lease shag be binding upon and shall Inure to the benefit of each of the par4s hereto,their hairs,
personal representatives,successors and assigns.
22. NOTICES.
Whwwww under this Lease a provision is made for any demand,notice or declaration of any kind,it shall be in writing and served eirtheir
personally or sent by registered or certified United States mail,postage prepaid,addressed at the addresses&a forth below;
TOLANDLORD AT: 2.0. BOX• 1ggg, Red larid S, TENANT AT: :JS Cajon S11-
CA. 9237-3--with copy to 411--Brookside-Ave. . RedlandsCA92373
Redlands, CA 92373
Such no*.m shall be deemed to be received within forty-eight(48)hours from the time of mailing,If mailed as provided f6r in this
paragraph.
23. LANDLORD'S RIGHT TO INSPECTION:
Landlord and Landlords agent shag have the rightto enter the Premises at reasonable times for the purpose of inspecting same,showing
the same to prospective purchasers or lenders,and'making such alterations,repair*,improvements or additions to the Premises or to the building
of which the Premises are a pan as Landlord may deem necessary or desirable. Landlord may at any time place an or about the Premises;any
ordinary*For Sale"signs and Landlord may at any time during the last one hundred twenty(120)days of-the term of this Lease place on or
about the Premises any ordinary"For Sate or Lane' signs,all without rebate of rent or nativity to Tenant.
24. CHOICE OF LAW.
This Lease shall be governed by the laws of the state where the Premises are located.
25. ATTORNEYS FEES.
If either Landlord or Tenant becomes a party to any litigation or arbitration concerning this Lease,the Premises,or the building or other
improvernsift in which the Premises are located,by reason of any act of am"On of the other party or its authorized representatives,and not
by reason of any act or omission of the party that becomes a party to that litigation or any act oromisslon of its authorized representatives,
the party that causes the other party to become involved In the litigation shall be liable to that party for reasonable attorney's fees and court
costs Incurred by it in this litigation.
-If either party commences an action against the other party arising out of or In connection with this Lease, the prevailing party shag be
entitled to have and recover from the losing party reasonable attomeys fees and costs of suit.
26. LANDLORDS LIABILITY.
The term*LindI6rd*as used In this Les"shall mean only the owner or owners at the time in question of the fee title or a Lessee's Interest
in a ground lease of the Premises,and in the event of any transfer of such title or interest,Landlord herein named(a nd In cue of any subsequent
transfers to the then successor) shall be relieved from and after the date of such transfer of an liability In respect to Landlord's otifigatioiiis
thereafter tQ be perf9wried. The obligatkino contained in this Lease I to be performed by,Larriolord shall be binding upon the Landlord's succes"(3
and assigns,only during their respective periods of ownership.
27. WAIVERS.
No waiver by Landlord of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by
Tenant ons the same or an'V other provision. Landlord's consent to or approval of any act shall not be dawned to render unnecessary the
obtafnind of Landlord's consent to Or approval of any subsequent act by Tenant. The acceptance of rent hereunder by Landlord shaft not be
a waiver of any precediling breach by Tenant of any provision hereof,other than the failure of Tenant to pay the particular rent so accepted,
regardless of Landlord's knowledge of such preceding breach at the time of its acceptance of such rent.
28. INCORPORATION OF PRIOR AGREEMENTS.
This Lease contains all agreements of the parties with respect 10 any matter mentioned herein. No prior agreement or understanding
pertaining to any such matter shall be effective. This Lease may be modified only in writing,and signed by the parties In Interest at the time
of such modification.
29. TIME.
Time is of the essence of this Lease.
30. SEVERABILITY.
The unenforceability,invalidity,or Illegality of any provision of this Lease shall not render the other Provisions hereof unenforceable,Invalid
or Illegal.
31. ESTOPPEL CERTIFICATES.
Each party,within ten(10)days after notice from the other party,shall execute and deliver to the other party a certificate stating that this
Lease is unmodified and in fun force and effect.or In full force and effect as modified,and stating the modification. The certificate shall also
state the amount of minimum monthly rent,the dates to which rent has been paid in advance,and the amount of any security deposit or prepaid
rent, if any, as well as acknowledging that there are not, to that parry's knowledge, any uncured defaults on the part of the other party,
or specifying such defaults,if any,which are claimed. Failure to deliver such a certificate within the ten(110)day period shaft be conclusive
Page 7 of 8
I IJ1A 1(NOW"
upon the party failing to deliver the certificate to the benefit of the party requeadng the cartiftcate that this Lamm Is in full force and affect,ttiatiham
we no uncured defaults hereunder,and has not been moTAed except as may be represented by the partyrequesting the�rdficsw
32. COVENANTS AND CONDITIONS.
Each provision of this Lease performable by Tenant shag be deemed both a covenant and a condition.
33. SINGULAR AND PLURAL
When required by the context of this Lee",the singular shall indicate the plural.
34. JOINT AND SEVERAL OBLIGATIONS.
'Party*shall mean Landlord arid Tenant and if more than one person or entity is the Landlord or Terwrt thif obligations imposed on that party
shall be Joint and several.
aG. 913*4011+8 l9fth18
Aa-Wed that*wAmA shall &a!elten be kv defoult hatatmidet,%tent shall hows elm option W extend the tie In of disim�to
additional year periods upon the same term and conditions herein contatried,except for fixed Minimum in
',upon delivery
by Tenant to Landlord of written notice of its alaction to sicarolse such option(s)at Jesse ninety(90)d to the siviradon of the original for
extended)term hereof. The parties herato shall have thirty(30)days after the LxWkwd r option notice In which to agree on the nitnimurn
monthly rental during the extended tarrnis). if the parties agree on the eewrethly rem for the extended far., during the period,they shall
Immediately execute an amendment to this tease m monthly rem In the event that two Is more than one option to extend the
term of this I"**,the pard**harem shat! the tWmmum mmftyrant asset forth herein for each extended teem atthis lease.Ifthe partko
*hereto are unable to agree mmimu rn monthly rem for the extended termW within said thirty(30)day period,the option notice shelf be of
nus~a e shall expire at the and at the term. Neither party to this Laws"have the right to have a court or other third parry set
36. ADDENDUM.
Any addendum attached hereto and either signed or Initialled by the parties shall be deemed a part hereat and shaft supersede any oonfBad#V
terms or provisions contained In this Lease.
37. Parking: During daylight hours tenant and tenants invitees shall avoid
Parking in the spaces in the two marked rows of spaces immediately east of
the building and in the marked row immediately south of the building.
Tenant recognizes that Landlord has rented the downstairs portion of the
building to an antique mall for sale of antiques at retail. Tenant agrees
to cooperate with the dawnstairs tenant so as to avoid interference with
the normal conduct of the antique business. Incept as herein provided
tenant way use the paved areas east and south of the building for parking.
38. Interior Premises: Tenant has inspected the premises and agrees to
accept them in "as is" condition. During the term of the lease tenant shall
provide janitor service as required.
The areto have executed this Lease on the data first above written.
have executed this Lease data above wri
RD. L P&IV TENANT
RY:
Pete Abu or
Attest It SW
fl%r- �Ta—m lr�win, CU* -OP-r
Page 8 of 8