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Home My WebLink About04603 - DEL MAR PROPERTIES ASSIGNMENT PURCHASE SALE LEASE PROPERTY Page: 8 Report: Expired Contracts: Oldest Date= / / and XREF=COMMUNITY&ECONOMIC DEV-Summary July 24, 2003 Contract tuber Description Approval Date Expiration Date Closed Date/// A452 C D B G 2001-02, Meals On Wheels 04/04/2001 04/01/2002 Contractor:Mizell Senior Center Insurance Status:A policy will expire soon. f XREF: COMMUNITY& ECONOMIC DEVELOPMENT 7 f✓� T Service: In File A4525 Implementation Of Business Visitation Program 07/03/2002 07/01/2003 Contractor:P. S. Economic Development Corp. Insurance Status: XREF: COMMUNITY& ECONOMIC DEVELOPMENT Service: In File 473+J- on -&-A44106104- 1 melljwlltm,M Insurance Status: XREF: COMMUNITY& ECONOMIC DEVELOPMENT A4591 C D B G 02-03 Subrecipient Agr Scholarships 11/13/2002 06/30/2003 Contractor:P A L Insurance Status: XREF: COMMUNITY& ECONOMIC DEVELOPMENT Service: In File 87 A4603 Lease Tramway Gas Station 12/04/2002 06/01/2003 Contractor:Burnett Development Insurance Status: XREF: COMMUNITY& ECONOMIC DEVELOPMENT N Service: Lease Agreement �jj A4631 Subrecipient Agr Food Vouchers 04/03/2002 04/01/2003 �� .2 Z992, Contractor:A I D S Assistance Program Insurance Status: �! f XREF: COMMUNITY& ECONOMIC DEVELOPMENT P2-" Service: In File A4685 Collect& Recycle Services For Special Event 4-26-03 04/23/2003 06/01/2003 Contractor :Nxtcycle, Inc Insurance Status: XREF: COMMUNITY& ECONOMIC DEVELOPMENT 0, Service: In File m Del Mar Properties 4, Assignment & Lease Agr AGREEMENT #4603 's M07215, 12-4-02 ASSIGNMENT OF PURCHASE AND SALE AGREEMENT AND LEASE AGREEMENT OF REAL PROPERTY THIS ASSIGNMENT OF PURCHASE AND SALE AGREEMENT AND LEASE AGREEMENT OF REAL PROPERTY (this "Agreement") is made this 18t1i day of December, 2002, by and between DEL MAR PROPERTIES VII, LLC, a California limited liability company ("Assignor"), and the CITY OF PALM SPRINGS, a chartered municipal corporation ("Assignee"). RECITALS A. Assignor has a leasehold interest and right to purchase from the Neil R. and Carol A. Arenberg Family Trust ("Owner"), pursuant to that certain Commercial Property Purchase Agreement and Joint Escrow Instructions dated February 7, 2002 (the "Purchase Agreement") and that certain Lease Agreement dated February 7, 2002 (the "Lease Agreement"), attached hereto as Exhibits "A" and `B" respectively, real property located at 2901 N. Palm Canyon Drive in the City of Palm Springs, County of Riverside, State of California, as more particularly described on Exhibit "C" attached hereto (the "Land"), together with (i) all rights, privileges, easements, licenses and interests appurtenant thereto, including, without limitation, all oil, gas, water and water rights (but specifically excluding any pipelines or pipeline easements appurtenant to the Land) (collectively, "Appurtenances"); (ii) all intangible property ("Intangible Properly") owned or held by Assignor in connection with the Land, including, without limitation, development rights, governmental approvals and land entitlements; and (iii) all buildings, improvements and structures located on the land ("Improvements"). The Land, Appurtenances, Intangible Property, and Improvements are collectively referred to herein as the "Property." The Land, Improvements and the Appurtenances are collectively referred to herein as the "Real Property". B. Pursuant to the Purchase Agreement and the Lease Agreement, Assignor has certain rights to assign all of its rights and obligations subject to the written consent of Owner in the form of the Owner's consent to assignment attached hereto as Exhibit "D" and incorporated herein by this reference. This Agreement contemplates an assignment of all of those rights and obligations in the Purchase Agreement and the Lease Agreement. C. The Property has been included in a draft master plan study ("Master Plan") for development of a large mixed comimercial, office and residential development on the Property. The portion of the Master Plan related specifically to this Property is more particularly shown on Exhibit E attached hereto (the "Plan Area"). The Master Plan has not at the present time been reviewed or approved through the City's planning process. The Assignee and Assignor desire to keep the landscaping and public improvement or common areas in and around the Property as part of the integrated Master Plan for the Plan Area and intend to cooperate in a reciprocal access and easement agreement at such time as the remainder of the Plan Area is approved and developed. 1RV#26007 v7 -1- 12/13/02 a : D. Assignor wishes to assign its right, title and interests concerning the Property to Assignee and Assignee wishes to acquire by assignment the lights to lease and buy the Property from Owner pursuant to the terms and conditions of this Agreement. Assignor and Assignee desire to obtain Owner's specific consent to such assignment. NOW, THEREFORE, the parties hereto agree as follows: TERMS AND CONDITIONS 1. ASSIGNMENT OF RIGHTS TO PURCHASE AND SALE AND LEASE AGREEMENTS. 1.1 Assigmment. Pursuant to the terms and conditions herein, Assignor hereby assigns, sells, and conveys and otherwise transfers to Assignee all of Assignor's right, title and interest in and to the Lease Agreement and the Purchase Agreement. Assignor warrants such copies, Exhibits "A" and `B" herein, to be true and correct copies of the entire agreements between Owner and Assignor with respect to the Property. This assignment of Assignor's right, title and interest in the Lease Agreement and the Purchase Agreement to Assignee shall be effective on the Due Diligence Date, defined in Section 6.1 below, provided that Owner consents thereto as evidenced by its execution of the Owner's Consent to Assignment Agreement (Exhibit D). Upon the Due Diligence Date assuming Assignee has made no objections related to title or condition of the Property, Assignor shall no longer remain liable for the performance of any such obligations, terms, covenants, conditions and agreements under the Lease Agreement or the Purchase Agreement. 1.2 Assunnption of Lease and Purchase and Sale. Subject to the satisfaction of the conditions in Section 7 below, Assignee hereby accepts all of Assignor's right, title and interest in and to the Lease Agreement and the Purchase Agreement and assumes and agrees to perform all of Assignor's corresponding obligations, terms, covenants, conditions and agreements under the Lease Agreement and the Purchase Agreement on, from and after the Due Diligence Date. 2. ESCROW; CLOSING DATE. 2.1 Escrow. Escrow No. 08132-KC has been opened by Assignee and Owner with Liberty Escrow Inc., located at 901 E. Talrquitz Canyon Way, Suite A-101, Palm Springs, California 92262 ("Escrow") with the ("Escrow Holder"). An executed copy of this Agreement shall be deposited with Escrow Holder. Escrow Holder shall fax written notice of the receipt of this Agreement to all parties. Notwithstanding the notification, Escrow shall have no responsibilities with respect to this Agreement in that the payment of the Assigmment Cost shall be made outside of Escrow and Assignor shall notify Escrow in writing that the Assigmnent is effective. 2.2 Escrow. Instructions shall be as provided in the Purchase Agreement. 2.3 Closing Date. Escrow shall close on or before March 1, 2003 ("Closing Date"). The terms the "Close of Escrow" and/or the "Closing" are used herein to mean the time the Grant Deed (as hereinafter defined) is recorded in the Office of the County Recorder of Riverside County, California. 1RV#26007 v7 -2- 12/13/02 3. CONSIDERATION. 3.1 Assignment Cost. The assignment cost for the Property is estimated at SEVENTY-EIGHT THOUSAND AND 00/100 DOLLARS ($78,000.00), the actual cost shall be comprised of verified lease payments, and any payments for insurance or taxes, Assignor has made pursuant to the Lease Agreement, ONE THOUSAND AND 00/100 DOLLAR ($1,000.00) assigrunent fee to be paid to Owner, and an additional amount of THIRTY-FOUR THOUSAND AND 00/100 DOLLARS ($34,000.00) representing Developer's overhead and carrying cost in the transaction ("Assignment Cost"). A potential additional payment amount of EIGHTY-FIVE THOUSAND AND 00/100 DOLLARS ($85,000.00) may also become due, for a planning cost reimbursement ("Reimbursement"), solely in the event that the City refuses to approve a Master Plan as set forth in more detail in Section 3.3 below. The Assignment Cost is the total compensation to be paid by Assignee to Assignor and all-inclusive of Assignor's interest in the Property and any rights or obligations which exist or may arise out of the acquisition of the Property for public purposes, which compensation Assignor acknowledges and agrees is inclusive, without limitation, of Assignor's fee interest in the land and any improvements located thereon, severance damages, relocation expenses, loss of business goodwill, costs, interest, attorneys fees, and any claim whatsoever of Assignor which might arise out of or relate to any respect to the acquisition of the Property by Assignee. 3.2 Payment of Assignment Cost. Upon the Due Diligence Date, Assignee shall pay to Assignor the Assignment Cost. 3.3 Master Plan Development Reimbursement. Assignor and Assignee recognize that it was originally Assignor's intent to acquire the Property to be incorporated as a Master Planned development at the strategic entry intersection into Palm Springs. Assignee supports such a Master Plan concept. The panties agree that Assignor has spent some EIGHTY-FIVE THOUSAND DOLLARS ($85,000.00) in costs for such Master Plan which will be lost if the Assignee refuses to approve such Master Plan due to Buyer's acquisition of the Property. However, the parties further agree that the Master Plan must be complementary to the Assignee's use of the Property as a Visitor Center providing tourism services for those entering the community. Assignor has prepared a Master Plan for 100.66 acres in three (3) areas. The two (2) areas on the south of Trainway Road entail about 45.18 acres of residential development to the west and 16.52 acres of commercial development fronting on Palm Canyon. The third parcel involves 38.96 acres of commercial development surrounding the Property. This third parcel is referred to as the Plan Area. With respect to the Plan Area, Assignor undertakes the following obligations: (a) Assignor will submit an application for development of a project ("Project") for the Plan Area within twelve (12) months of the date of this Agreement; (b) The Project will be for cormercial use and be compatible with the Visitor Center use of the Property. Assignor must leave the building on the Property intact, consistent with it's historical heritage, but may modify landscaping, walkways and IRV#26007 v7 -3- 12/13/02 A. parking to integrate the Visitor Center with the overall Project. The Project may include shared access and parking, and lot lines may be adjusted, but in such a configuration that Assignee will retain ownership of adequate legal parking, setbacks and so forth; (c) Assignor's Project will comply with all general plan and zoning regulations of the City; (d) Assignor will obtain environmental approval and comply with all environmental requirements; (e) Assignor will diligently process the Project and bring it to hearing before the City Council within two (2) years of the date of this Agreement in an approvable form; and (f) Assignor will defend any Project challenges or litigation concerning the Project without cost to the City. If Assignor fulfills these obligations, then City Council of Assignee will have one hundred eighty (180) days from the date of the first noticed hearing before the City Council to approve or approve with conditions the Project. If City Council refitses to approve the Project, or where Assignor has not met the above conditions, and City Council refuses to permit Assignor to modify the Project to meet such conditions, then Assignee will be obligated to pay Assignor said EIGHTY-FIVE THOUSAND DOLLARS ($85,000.00), after Assignor's written request for such payment and documentation as to why such payment is due. It is expressly understood that no payment is due if Assignor fails to apply for or diligently process the Project for approval within the above periods, or fails to submit a Project complying with the City's general plan or zoning, or fails to revise the Project to meet the requirements of City. 3.4 Joint Use Covenants. The parties shall develop appropriate joint use covenants recorded against title of all benefited and burdened parcels. 3.5 Repurchase of Property by Assignor. In the event that Assignor and Assignee agree that the Plan Area design and function is achieved best by lot line adjustments to the Property, Assignor agrees to pay the per square foot cost by the greater of (i) the fair market value or(ii)the cost paid herein on a square foot basis by the City to acquire the Property, for the net land removed in any Property line adjustments. Nothing herein shall be construed so as to bind the City to agree to a lot line adjustment in advance. IRV#26007 v7 -4- 12/13/02 4. ESCROW FOR PURCHASE OF PROPERTY. Escrow instructions shall follow those provided in Purchase Agreement (Exhibit"A"). 5. TITLE MATTERS. 5.1 Approval of Title. (a) Promptly following execution of this Agreement (but in no event later than five (5) days therefrom), Assignor shall cause to be delivered to Assignee a preliminary title report issued through First American Title Insurance Company (the "Title Company"), describing the state of title of the Property, together with legible copies of all exceptions specified therein and a map plotting all locatable easements specified therein (the "Preliminary Title Report"). Assignee shall notify Assignor in writing ("Assignee's Title Notice") of Assignee's approval of all matters contained in the Preliminary Title Report or of any objections Assignee may have to title exceptions or other matters ("Disapproved Exceptions") contained in the Preliminary Title Report within ten (10) business days after Assignee's receipt of the Preliminary Title Report ("Assignee's Title Notice"). (b) In the event Assignee delivers Assignee's Title Notice within said period, Assignor shall have a period of ten (10) days after receipt of Assignee's Title Notice in which to notify Assignee of Assignor's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions ("Assignor's Notice"). Assignor shall only elect to decline to remove Disapproved Exceptions which Assignor in good faith believes Assignor's reasonable efforts would not result in removal or as to which removal would result in cost or expense to Assignor other than nominal administrative expense incurred in the process of removal. Assignor's failure to deliver Assignor's Notice within said ten (10) day period shall be deemed Assignor's election to decline to remove the Disapproved Exceptions. If Assignor notifies Assignee of its election to decline to remove the Disapproved Exceptions, if Assignor is deemed to have elected to decline to remove the Disapproved Exceptions or if Assignor is unable to remove the Disapproved Exceptions, Assignee may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). Assignee shall exercise such election by delivery of written notice to Assignor and Escrow Holder within ten (10) days following the earlier of (i) the date of written advice from Assignor that such Disapproved Exception(s) cannot be removed; or (ii) the date Assignor declines or is deemed to have declined to remove such Disapproved Exception(s). (c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Assignee's initial period of review and approval or disapproval of any such additional exceptions shall be limited to five (5) days following receipt of notice of such additional exceptions, together with copies of the underlying documents referenced therein. IRV#26007 v7 -5- 12/13/02 (d) Nothing to the contrary herein withstanding, Assignee shall be deemed to have automatically objected to all deeds of trust, mortgages, judgment liens, federal and state income tax liens, delinquent general and special real property taxes and assessments and similar monetary encumbrances affecting the Real Property, and Assignor shall discharge any such non-permitted title matters of record prior to or concurrently with the Due Diligence Date. 6. DUE DILIGENCE. 6.1 Due Diligence Date. The "Due Diligence Date" shall mean the date which is the later of twenty-five (25) days following the date of the execution of this Agreement or five (5) days from Notice that all title issues and/or environmental issues objected to by Assignee have been satisfied. 6.2 Scope of Due Diligence. Assignee shall have the right to make an analysis of the Property consisting of such engineering, feasibility studies, soils tests, environmental studies, including but not limited to those described in Section 7.3, and other investigations as Assignee may desire to permit Assignee to determine the suitability of the Property for its intended purpose and to conduct such other review and investigation which Assignee deems appropriate to satisfy itself to acquire the Property. 6.3 Review of Documents. Within five (5) days of the Opening of Escrow, Assignor shall deliver to Assignee the following documents which Assignor may have in its possession or control (or reasonable access thereto) for Assignee's review and approval: (a) True and correct copies of any labor, service, employment, supply, property management, leases, subleases, equipment leases, insurance and maintenance contracts which relate to the Property, and any and all amendments thereto. (b) Copies of all engineering reports, soils studies, soils compaction reports, grading plans, geologic studies, drainage plans or reports, tentative parcel maps, development agreements, governmental permits and approvals and any conditions thereto, environmental audits and reports, enviromnental remediation plans (and all correspondence and documents related thereto), enviromnental impact reports, permits, inspections, reports, notices and/or correspondence regarding governmental agency review and approval respecting fire, building, health, zoning and use compliance. (c) The most recently available survey of the Property, if any, showing all Improvements and things located on the Real Property and within ten (10) feet of the outside property line of the Real Property. 6.4 Entryfor hi vestigation. (a) Subject to the conditions hereafter stated, Assignor hereby grants to Assignee, its agents and employees a limited license to enter upon any portion of the Property for the purpose of conducting engineering surveys, soil tests, investigations or other studies reasonably necessary to evaluate the condition of the Property, which studies, surveys, investigations and tests shall be done at Assignee's sole cost and IRV#26007 v7 -6- 12/13/02 expense. The license herein granted shall be co-extensive with the term of this Agreement or any extension thereof. (b) Assignee shall (i) conduct all studies in a diligent, expeditious and safe manner and not allow any dangerous or hazardous conditions to occur on the Real Property during or after such investigation; (ii) comply with all applicable laws and governmental regulations; (iii) keep the Real Property free and clear of all materialmen's liens, lis pendens and other liens arising out of the entry and work performed under this paragraph; and (iv) return the Real Property to its original condition following Assignee's entry. Assignee agrees to indemnify, defend, protect and hold Assignor and the Property free and harmless from any and all loss, liability, claims, damages and expenses (including, but not limited to, attorneys' fees and costs) arising directly or indirectly from the exercise of said license. Such undertaking of indemnity shall survive Close of Escrow or the termination of this Agreement for any reason. 6.5 Approval of Due Diligence Matters. Assignee shall notify Assignor in writing ("Assignee's Due Diligence Notice") on or before the Due Diligence Date of Assignee's approval or disapproval of each item delivered to or available for review by Assignee pursuant to this Section 6 and of Assignee's approval or disapproval of the condition of the Property and Assignee's investigations with respect thereto (excluding title matters which are to be approved or disapproved pursuant to Section 5.1 above) (collectively, the "Due Diligence Items"), which approval may be withheld in Assignee's sole and absolute discretion. 6.6 Approval of Additional Due Diligence Matters. In the event Assignor becomes aware of or obtains possession of any new Due Diligence Items after the Due Diligence Date, it will provide Assignee with written notice of such Due Diligence Item to Assignee. Assignee shall have the right to review and approve such Due Diligence Item in the same mamier as set forth in Section 6.5 above; provided, however, that Assignee's period to review and approve or disapprove such additional Due Diligence Item shall be limited to ten (10) days following receipt of notice of such new Due Diligence Item, together with a copy of any written document relating thereto. 7. CONDITIONS PRECEDENT TO CLOSE OF ESCROW. 7.1 Conditions to Assignee's Obligations. The obligations of Assignee under this Agreement shall be subject to the satisfaction or written waiver, in whole or in part, by Assignee of each of the following conditions precedent: (a) Title Company will issue the CLTA Title Policy as required by this Agreement. (b) Assignee has approved or deemed to have approved the condition to title of the Property on or before the date provided in Section 5.1. (c) Assignee has approved or deemed to have approved all Due Diligence Items on or before the Due Diligence Date. IRV#26007 v7 -7- 12/13/02 Al (d) Assignee's approval with the environmental testing and contingency under Section 7.3. (e) Assignor has removed from the Property all equipment, personal property, debris and waste. (f) Escrow Holder holds and will deliver to Assignee the instruments and funds, if any, accruing to Assignee pursuant to this Agreement. (g) All representations and warranties specified in Section 9.1 are true and correct. (h) Assignee's approval of any other conditions specified in this Agreement. (i) Assignor shall not be in default of any tern or condition of this Agreement. Assignee's approval shall be based upon Assignee's sole and absolute discretion; provided, however, if Assignee has not delivered written notice of approval of the above conditions to Assignor and Escrow Holder by the times provided above, or if no time is provided, on or before the Close of Escrow, each such condition shall automatically and conclusively be deemed to have been disapproved by Assignee. 7.2 Environmental Testing and Contingency. The Closing of Escrow shall be subject to and conditioned upon Assignee's written acceptance, approval of the physical and environmental conditions at, under and about the Property, and the absence from the Property of any hazardous substances, hazardous wastes and/or hazardous materials as such terms are defined in their broadest form under any applicable federal, state or local law or regulation, and any other kind of soil, air, or water contamination. Upon Assignee's review of any Phase I or Phase II Report and completion of any other testing Assignee deems necessary, if Assignee, in its sole discretion, determines that an additional environmental assessment is necessary, then Assignee may elect to obtain such assessment at its sole cost,provided such assessment is complete by the Due Diligence Date. 7.3 Covenant of Parties. All Parties agree to cooperate with one another, at no cost or expense to the cooperating party, in satisfying the conditions precedent to Close of Escrow. Assignee shall be responsible for proceeding with diligence and in good faith to satisfy the conditions to Assignee's performance set forth in Section 7.1 and Assignor shall be responsible for proceeding with diligence and in good faith to satisfy the conditions to Assignor's perfonmance set forth in Section 7.2. 7.4 The Disapproving Termination for Failure of Condition. In the event either party fails to approve or disapprove any condition precedent specified in Section 7.1 or 7.2 or elsewhere in this Agreement on or before the date for approval set forth therein, or in the event of a disapproval of any condition precedent, the other party shall have a period of ten (10) days from receipt of notice of such failure to act or of such disapproval to correct the condition so that Escrow may close. In the event such condition is not corrected within such period, either party IRV#26007 0 -8- 12/13/02 A. may cause the termination of this Agreement by giving such notice to the other party and the Escrow Holder. Any failure to act shall be deemed a disapproval. 8. ADDITIONAL COVENANTS OF ASSIGNEE AND OWNER. 8.1 Environmental Claims. Except as provided herein, Assignee does not release any party from liability under all Environmental Laws asserted at any time in connection with any set of facts or conditions existing in, on or about the Property prior to Closing arising from the Property (hereinafter referred to as "Retained Environmental Liabilities"). For purposes of this Agreement, "Environmental Laws" shall mean all federal, state or local statutes, regulations, ordinances, codes or rules as such have been or may hereafter be enacted, adopted, amended or supplemented and all common law causes of action relating to the protection of human health or the environmental, including without limitations the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C. Section 6901 et seq.), the Federal Water Pollution Control Act, as amended (33 U.S.C. Section 7401, et seq.), the Toxic Substance Control Act, as amended (15 U.S.C. 2601, et seq.), the Safe Drinking Water Act, as amended (42 U.S.C. Section 300f, et seq.), the Federal Insecticide, Fungicide and Rodenticide Act, as amended (7 U.S.C. Section 136, et seq.) and the Clean Air Act, as amended (42 U.S.C. 7401, et seq.), and private rights of action for nuisance or damages to property or persons. Notwithstanding any contrary provisions of this Agreement or otherwise, upon the execution of this Agreement by Assignee, Assignee shall and does hereby release Owner from any liability, cost or expense Assignee may incur as a result of Assignee's purchase of the Property or the presence of any Hazardous Materials (hereinafter defined) which are or may be located in, on or about the property commencing on the Close of Escrow or at any time thereafter, with the exception of the Retained Enviromnental Liabilities. Such release shall survive the Closing Date. For the purposes of this Agreement, Hazardous Materials shall be deemed to mean asbestos, polychlorinated biphenyls, petroleum or by-products thereof, radioactive materials, or any chemical, material or substance included in the definitions of "hazardous substances", "hazardous materials", "hazardous waste", "toxic substances" and/or words of similar import under any federal, state and local laws, ordinances, rules and regulations whether present or future, relating to and/or dealing with the protection of the enviromrrent and/or human health and safety and/or applicable to the generation, handling, manufacture, installation, treatment, storage, use, transportation, discharge, disposal, presence and/or release into the air, soil, water at, above or below ground level (whether accidental or intentional) of such substances or materials. 8.2 Survival. Notwithstanding any other provision of this Agreement, the provisions of this Section 8 shall survive the Close of Escrow and the delivery of the Grant Deed. 8.3 Assignor Covenants. Except as specifically set forth in this Agreement, the assigmnent of the Property hereunder is and will be made on an "AS IS" BASIS, IN ITS PRESENT CONDITION, WITH ALL FAULTS, IF ANY, AND EXCEPT AS EXPRESSLY SET FORTH HEREIN, WITHOUT ANY WARRANTY OF ANY HIND OR NATURE, EXPRESS, IMPLIED OR OTHERWISE. Assignee acknowledges that Assignee will examine, review and inspect all matters which in Assignee's judgment bear upon the IRV#26007 v7 -9- 12/13/02 Property and its value and suitability for Assignee's purposes. Except as to matters specifically set forth in this Agreement, Assignee will acquire the Property solely on the basis of its own physical and financial examinations, reviews and inspections. Except as expressly set forth in this Section 8.3 of this Agreement, Assignee acknowledges that neither Assignor nor anyone on behalf of Assignor has made any representations, statements or warranties regarding the Property, including the physical condition of the Property, the location of the Property in any Natural Hazards Area, the value, nature or quality of the Property, the soil, water, or geology relating to the property, any income to be derived from the Property, the suitability of the Property for any activities or uses which Assignee may wish to conduct, compliance of the Property with any law, ordinance, rile, or regulation, or the status of any permits or approvals relating to or required in connection with the Property or any other matters. Except as expressly set forth in this Section 8.3 of this Agreement, to the extent Assignor has made or in the future make any information regarding any aspect of the Property available to Assignee, including the Property Documents and the Natural Hazard Disclosure Statement, Assignor has done or will be doing so only as an accommodation to Assignee. Assignor has not made, and is not making, and shall not make any representation or warranty of any nature concerning the accuracy or completeness of Assignor's files or concerning the authenticity, source, accuracy or completeness of any information contained in them or furnished or to be finished to Assignee. No latent or other defect affecting the Property in any way, whether or not known by Assignee or discoverable or hereafter discovered, shall after the Feasibility Period affecting Assignee's right to obtain a refund of Assignee's Deposit or its obligation to purchase the Property, nor shall give rise to any right of damages, recision or otherwise against Assignor. 8.4 Assignor Release from Liability. Assignee and anyone claiming by, through or under Assignee hereby waives its right to recover from and fully and irrevocably releases Assignor and Assignor's employees, officers, directors, representatives, agents, servants, attorneys, affiliates, parents, subsidiaries, successors and assignees, and all persons, firms, corporations, and organizations in its behalf ("Released Parties") from any and all claims, responsibility and/or liability that it may now have or hereafter acquire against any of the Released parties for any and all costs, losses, claims, liabilities, damages, expenses, demands, debts, controversies, claims, actions or causes of actions (collectively "Claims") arising from or related to: (i) the condition (including any construction defects, errors, omissions or other conditions, latent or otherwise, and the presence in the soil, air, structures and surface and subsurface waters of materials or substances that have been or may in the future be deemed to be Hazardous Materials or otherwise toxic, hazardous, undesirable or subject to regulation and that may need to be specifically treated, handled and/or removed from the property under current or future federal, state and local laws, regulations or guidelines), valuation, salability or utility of the Property or its suitability for any purposes whatsoever, and (ii) any information furnished by the Released Parties in connection with this Agreement. This release expressly includes claims of which Assignee is presently unaware or which Assignee does not presently suspect to exist which, if known by Assignee, would materially affect Assignee's release to Owner. Assignee expressly waives any of its rights granted under California Civil Code Section 1542, which provides as follows: A GENERAL RELEASES DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF IRV 926007 v7 -10- 12/13/02 EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. To the extent pennitted by law, Assignee hereby agrees, represents and warrants that Assignee realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to Claims which are presently unknown, unanticipated and unsuspected, and Assignee further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of the realization and that Assignee nevertheless hereby intends to release, discharge and acquit the Released Parties from any and all Claims. Assignor and Assignee have agreed upon the Price relating to the Assignment and other provisions of this Agreement in contemplation and consideration of Assignee's agreeing to the provisions of Sections 8.4 hereof. 9. REPRESENTATIONS AND WARRANTIES. 9.1 Representations and Warranties. Assignor hereby makes the following representations and warranties to Assignee, each of which (i) is material and relied upon by Assignee in making its determination to enter into this Agreement; (ii) to Assignor's actual knowledge, is true in all respects as of the date hereof and shall be true in all respects on the date of Close of Escrow on the Property; and (iii) shall survive the Close of Escrow of the purchase and sale of the Property as well as any future transfer of the Property to any transferee, successor or assignee of Assignee: (a) There are no pending or threatened litigation, allegations, lawsuits or claims, whether for personal injury, property damage,property taxes, contractual disputes or otherwise, which do or may affect the Property or the operation or value thereof, and there are no actions or proceedings pending or, to the best of Assignor's knowledge, threatened against Assignor before any court or administrative agency in any way connected with the Property and neither the entering into of this Agreement nor the consummation of the transactions contemplated hereby will constitute or result in a violation or breach by Assignor of any judgment, order, writ, injunction or decree issued against or imposed upon it. There is no action, suit, proceeding or investigation pending or threatened against Assignor which would become a cloud on Assignee's title to or have a material adverse impact upon the Property or any portion thereof or which questions the validity or enforceability of the transaction contemplated by this Agreement or any action taken pursuant hereto in any court or before or by any federal, district, county, or municipal department, commission, board, bureau, agency or other governmental instrumentality. (b) There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or render Assignor shall survive the Close of Escrow that would adversely affect Assignee's rights with respect to the Property, except as heretofore disclosed in writing by Assignor to Assignee pursuant to Section 6.3. IRV#26007 v7 -11- 12/13/02 (c) Assignor has delivered or, within the period required in Section 6.3, will have delivered true, correct and complete copies of all the documents and other information specified in Section 6.3 in Assignor's possession or control (or has reasonable access thereto). To the best of Assignor's knowledge, the information contained in the said documents is true and accurate. (d) With the exception of the Lease Agreement and Purchase Agreement (Exhibits A and B), there are no executory contracts, options or agreements existing (other than this Agreement) relating to the purchase of all or any portion of the Property or any interest therein. (e) All federal, state, municipal, county and local taxes, the nonpayment of which might become a lien on or affect all or part of the Property, which are due and payable prior to the Closing have been paid, or on the Closing Date will have been paid in full. (f) There are no contingent liabilities arising out of the ownership or operation of, or affecting, the Property or any part thereof which would be binding upon the Assignee or to which the Property would be subject after the Closing. (g) The closing of the various transactions contemplated by this Agreement will not constitute or result in any default or event that with the notice or lapse of time, or both, would be a default,breach or violation of any lease, mortgage, deed of trust or other agreement, instrument or arrangement by which Assignor or the Property are bound. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate any provision of, or require any consent, authorization or approval under any law or administrative regulation or any order, award, judgment, writ, injunction or decree applicable to, or any govermnental permit or license issued to Assignor relating to the Property. All representations and warranties made hereunder are in addition to any representations and warranties implied by law and in no event shall this Section 9.1 be construed to limit, diminish or reduce any obligation of disclosure implied upon Assignor by law. 10. ESCROW PROVISIONS. 10.1 Escrow Instructions. The escrow instructions shall be as provided in the Purchase Agreement. 11. BROKERAGE COMMISSIONS. Brokerage Commission shall be as set forth in the Purchase Agreement. 12. POSSESSION. Possession of the Property shall be delivered to Assignee, pursuant to the Lease Agreement, upon the Due Diligence Date. IRV 926007 0 -12- 12/13/02 13. DEFAULTS; ENFORCEMENT. 13.1 Defaults and Right to Cure. Failure or delay by either party to timely perform any covenant of this Agreement constitutes a default under this Agreement, but only if the party who so fails or delays does not commence to cure, correct or remedy such failure or delay within fifteen (15) days after receipt of a written notice specifying such failure or delay, and does not thereafter prosecute such cure, correction or remedy with diligence to completion. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until fifteen (15) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13.2 Specific Performance. In addition to any other remedies permitted by this Agreement, if either party defaults hereunder by failing to perform any of its obligations herein, each party agrees that the other shall be entitled to the judicial remedy of specific performance, and each party agrees (subject to its reserved right to contest whether in fact a default does exist) not to challenge or contest the appropriateness of such remedy. 14. MISCELLANEOUS. 14.1 Successors and Assigns. This Agreement shall be binding upon the parties hereto and their respective heirs, representatives, transferees, successors and assigns. The transfer of all or any part of the interest of any party hereunder in the Property shall not release Assignor of its obligations under this Agreement. 14.2 Time of Essence. Time is of the essence in this Agreement and with respect to each covenant and condition hereof. Assignee specifically agrees to strictly comply and perform its obligations herein in the time and manner specified and waives any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. 14.3 Time Period Computations. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and California state or national holidays unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time and provide that if the last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or California state or national holiday, such act or notice shall be deemed to have been timely performed or given on the next succeeding day which is not a Saturday, Sunday or California state or national holiday. 14.4 Qualification; Authority. Each individual executing this Agreement on behalf of a partnership or corporation represents and warrants that such entity is duly formed and authorized to do business in the State of California and that he or she is duly authorized to execute and deliver this Agreement on behalf of such partnership or corporation in accordance with authority granted wider the formation documents of such entity, and, if a corporation, by a duly passed resolution of its Board of Directors, that all conditions to the exercise of such authority have been satisfied, and that this Agreement is binding upon such entity in accordance IRV#26007 v7 _13_ 12/13/02 with their respective tenns. Upon request of either party, Escrow Holder or Title Company, Assignee agrees to deliver such documents reasonably necessary to evidence the foregoing. 14.5 Attorneys' Fees; Indemnity. In the event of any dispute between the parties hereto arising out of the subject matter of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall be entitled to have and to recover from the other party its actual attorneys' fees and other expenses and costs in connection with such action or proceeding (including expert witness fees) in addition to its recoverable court costs. In the event of any challenge to the validity of this Agreement or any terms herein naming the City, Assignor shall indemnify and defend the City as against any and all such Claims, suits or actions. 14.6 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. 14.7 No Waiver. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other party hereto under the provisions of this Agreement shall impair any such light or power or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. 14.8 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 14.9 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such tern, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each tern and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 14.10 Merger of Prior Agreements and Understandings. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 14.11 Covenants to Survive Escrow. The covenants and agreements contained herein shall survive the Close of Escrow and, subject to the limitations on assignment contained in Section 14.1 above, shall be binding upon and inure to the benefit of the parties hereto and their representatives,heirs, successors and assigns. IRV#26007 v7 _14_ 12/13/02 14.12 Consent of Parties. Whenever by the terns of this Agreement the consent or approval of Assignee or Assignor is to be given, such consent or approval shall be evidenced by the signature of one person designated for such purpose. Initially such person for Assignor shall be John C Killen and such person for Assignee shall be the City Manager of Assignee. Such designated persons may be changed by the party so designating at any time by the delivery of a written notice to the other party. 14.13 Execution in Counterp. This Agreement and any modifications, amendments or supplements thereto may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. 14.14 Notices. Any notice which either party may desire to give to the other party or to the Escrow Holder must be in writing and shall be effective (i) when personally delivered by the other party or messenger or courier thereof; (ii) three (3) business days after deposit in the United States mail, registered or certified; (iii) twenty-four (24) hours after deposit before the daily deadline time with a reputable overnight courier or service; or (iv) upon receipt of a telecopy or fax transmission, provided a hard copy of such transmission shall be thereafter delivered in one of the methods described in the foregoing (i) through (iii); in each case postage fully prepaid and addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other parties hereto: To Assignor: Del Mar Properties VII, LLC c/o Burnett Development Corporation 1300 Bristol Street North, Suite 200 Newport Beach, CA 92660 Attn: Tom Le Beau Peter J. Laird To Assignee: City of Palm Springs 3200 E. Tahquitz Canyon Way Patin Springs, California 92262 Attention: David H. Ready, City Manager Copy to: Burke, Williams & Sorensen, LLP 18301 Von Kannan Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire, Esq. Facsimile: (949) 863-3350 14.15 Exhibits. Exhibits "A" through "E", inclusive, attached hereto, are incorporated herein by this reference. IRV#26007 v7 -15_ 12/13/02 IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Assigmnent of Purchase and Sale Agreement and Lease Agreement of Real Property as of the date set forth above. "ASSIGNOR" DEL MAR PROPERTIES VII, LLC, a California limited liability corporation By: Title: By: Title: "ASSIGNEE" ATTEST: CITY OF PALM SPRINGS, a chartered municipal corporation 02�, j c.., a 4um By: � F City Clerk m APPROVED AS TO FORM BURKE, WILLIAMS & SORENSEN, LLP David J. Aleshire, Es'q. City Attomey D3 [SIGNATuREs FOLLOW NEXT PAGE] IRV#26007 v7 -16- I2/13/02 - G SCHEDULE OF EXHIBITS EXHIBIT "A" PURCHASE AGREEMENT EXHIBIT `B" LEASE AGREEMENT EXHIBIT "C" LEGAL DESCRIPTION OF LAND EXHIBIT "D" OWNER'S CONSENT TO ASSIGNMENT EXHIBIT "E" PLAN AREA MAP IRV#26007 v7 -is- 12/13/02 ENT BY: LYLE COMMERCYAL;, 780 S25 V199; FEB-7•02 2.40PM; PAdE 2 c n r.t F o n Ff T'n COMMERCIAL PROPERTY PURCHASE AGREEMENT, TT�H FLUAV AND JOINT E ICROW INSTRUCT-IONS O OF R UnLroTtg a (AND RECEIPT FOR DEPOSIT) (NUI'!-RESRk910LrNTIAL) (CA,R..Form CPA 41,Reined 4W) Idle rilfDridna.7,_"09._.. ,at _. . PaJ�Skrin�n -- _ ,Galifnm[a. A 'I-His MAN OFFER FRQefI [b7. �ei�,Ftn AE:ij, rn yr7i_t(c W Iraltvidual(a), ❑ A CrAporalon,© A PaMorehlp,® An LLO,or Cl An LLP,or O Other B. TNEftEALPROPFIITYT6EEACQIIIREDI+daacrlbed as _ 2902 M. enl,pt Cen¢ra�+S.ivu Auiasga'o Palcel No. Wonted In PaLu.SUuLlrt.._ County of }tivRreidq Callromla-('Pfopertyl, C. T11E PUtiC11A5E PRICE ollarod is ,Xtys,J',lyjr p• _Zwg ntv-P7'pj 't jipn�end Dollars S 151 QQQ O, CLDSE Or EaCROW ahall ocwr_ _ Dni"Aaxr Ac-WIjnca(or 19 tin Idar.�a j �OQ3 (daM)), 2. FINANCING;ObwRino ale loapa b6ow la a murtingoncy of this Agreemrmt unlasr(1)al(her 21 or 2J Is chbtkod below or(ii)olhmvdau agreed.nuyar shall Act dilipanty and In good faith to obtain the dmlgnoted loans,Obbunlpg de IL down payment and dosing costs to not a=TAInuvnr4. A- BUYER ItA9 QfVEN A 171`poArr TO THE A0GNYSU6MITY1N0 TIM OFFER .. . .. ... :..... . ..... .... .. . .S _2,QgQ 00 for to❑ _ },mode payable to.— ri h XAM IDecratr - by Ppraonel Cb.dc,or 0 _ __ ,whlcn shall bs heal uncaah.d until ACeeptenoe end then deposhed within Itnrsfne.o dsym after Acvaplance or with Escrow Holder, Olnfo Btokces mist ecmunt of Bvyor ropresento that funds will bu good when dopoeltad with I!wmw Holder. R. INL"RFhRF?C)11EPO617 shall ba rlepoellt+d by Buypf with EscrowHuldur wlriln _. iltpx AftarAa:aptarrcn, . ..5 �`� pea Qp orb LT�uIrL Z4P9 C. FIRST LOAN IN TT(E AMQUf1T OF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . 6 NL-Yd Plmt D064 MTnlntln FaVnr of f] LENDER, ❑ SELLER, aK LJ ASSUMI'llION of(or C)I"eUb)ect to')Existing AW Oeod of Tract mmnibmInif Bro PfoPehy,seounn0 a note payable at maximum Intem�rn of A_ _%fixed rate,or '4 Initial ad)uahibla rate w1tl1 a maximum intaaeal rain cap of %,balonw due in yearn,antultizi d over Yuma.(If chedwd:O and with a nwrgln nut to exmBd %,gad to the Iolbwing Indt:xl Buyer ahull pay loan fceAl olnle not to exceed Addltlunal lurrnsl I D, SIX- ONULOANINTHEAMQUNTW. . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 NEW FIW Deed of TnAt lnfavor of Q LENDER, 0 SELLER, OR 0 ASSUMPTION of TorD.%tibled tu')Existing Second Dand of Trual ortworborinu the Propwly,aecvdng a note payahlei At mtixlmum intnrerat of %Mod rate,or %initial odjwtable rate with a wAAmum Intriml rate c%p,o1 S%,ba)anoa Vue In_ yaaro,arpmff orl over yoora,(ticlwdM:(] and wlih 0.nlarpin ml to exceed %,!laid la the kAlowing Indox: ! }Buyer shall pity ban feWc olnis not to exceed Additional teri m E. ADDITIONAL PINANCING;IERMS: . . . . . . . . . . I . . . . . . . . .L . . . . . . .. . . . .. . . . . . . . . . . . . . . . S P, BALANGI OP FURCIWE PRCE (not including ooaW of oblainmg lotion and outer dozlop w Ihj W be , . ,b ygp.r2no og d.povood with 4v ow l lof er wllnlo outildom do*to close eacmw. G. TOTAL PURCHA411!PRICE . . .'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . , . . S GIY�,EP._P�2o H. LOAN CONTINGENCY uhall rom iln In offolx until the dnsl0natod loans are funded or assunWilon of raxlsdng financing to approved by Irndor(or Day.)Altar Anoopt—,by wNd1 error Buyer shall VIVO[faller wrnlun❑odmr of Buyer'.election In u nml Ihls Agrnearant If Noon Is unto le to d,buln ar.d"1011a%d hens,If 0uym dines not Viva Softer aui;h nallea,the contngancy of obtaining the d"lpnntad loans shay W ranwvod by Ili*nWhod aparJaad In parpgruph 15. - 1. CI NO LOAN cariml4my., (it afinved)0blalnhil urry Joan In paragtophs 20,20.2E or ewoNflere In this Agnew ant is NOT a mnnn0oncy at Vila Aa:txmant.1160yer dues not obtaln the loan(a),and an a m9uft Buyer does not purchase the Property. Seller may be enutlea to BTyeea _ dep Gilt or biber legal fa4dle9. i Illo copydahl laver or Ina United shakos (Thin 17 U.N. Coda) forbid Inc sayer and 8olla'ad:ri Ipt Of t Copy of Plitt page. uwuann Wd TWOVOW of orlo nWlrn,or any pumas thereof.by Prxnomoy puvel's Imbil "..olds or any oawr n'r.ef, InclWkv rscolmlle or tGrryNieroad fonrgb• sidtaea Inbbla ( lI 1 cnpynplp 6 1a149.2001.CAUFORNIA A55CCIATION OF Rf:ALTOR`.v,mc. ryWlarrcd uY A:L RIGHTS RLSEHVEB, aro�aru oeOipnua vnW CPA•11 (PAGE 1 of 10) WIVIMPRCIAI PROPERTYPURCHABS.AGRPEMM(CPA-11 PAGE OF10) LyT'to Camiemd Ili S.Balm[-'srlyou, Palen 3pctinas CA 932a7. V o4c'76D77883,e0 Pax: 7603251069 Lylerummtrolal '1'G13(>Oaa.Zl'X Ld WJd T:SO EBOF TT 'qai £LV966b6b6 'ON XL-1J OHEISHaNu -1131 1.1021J 1 SENT BY: LYLE COMMLRCIAt 760 323 10A9; FE9-7-02 3:35PN; PAGE 2 Properly AdUrau5:22RL.U. rliL^^sL�„rIu ne'�L"�J5ru1n0a,—:__ �--,._Uab:k'ND.aYecx.:_2nnz J. I7 ALL(iA311 OFF"CR: 41 purrDaao the Prnpmty,Buyer shell,vrill+in 6(orp )bays!fir AoozpVmce. provide Salley Wnhen vtinfic lbal or autfidaot funds to doso this trahsaLlian. Seller may cancel IRA Aoreanenl in willing within P Asye After: O Ilme to provide verfficahgn explroe,it puyar FJIIs to provide v6dfcation,or III)receipt of yelificaUpn,II 5ellor reasnnabty dfsappiovea IL K. LOAN APPLfGA11ONS�;PRCOUALIFICATION;WIUbn S for L]_. I Deli Alter Acceptance,Buyer shell provide Seller a la(kohorn kudlel Of M90911 he lour broker slating sta1. Ira"d on a review of Buyer's written application find credo re-pars,Buyar Is pfaqueaned for Ow NF.W latarts)Indicutedl erase,tO Buyer falls b provide such letter within that time,Seller may vonmi Ihla Agroerrlrnl In rrrrgnq, 1-. ❑ APPRAIUAL CONTINGENCY;(if et)eokZJ)Thla Agfeernenl ie aAllangri upon Fmporty appraieine at no Ilea than the opecified tohl ouedimo pdoa. U mere Is a loan;oonunpency, the eppreleol caatlogency shall rmrell+In Atka und)the loan codllnpency Is removod. It dare Is ON loan catUngenty,pie eppraspr conh'nguay shall be nmavad within 10(o(w p )Drys Aver Aw pnr,l,. M tlfir_LER FINANCIHG:fior Any Seller snandna dardon tied above,guys,is w uxIi a note secured by a deed of bust In favor of Seller.on Ole fauns and CofldillorA Ali 5.1 h in Iflo aneched Addendum(C.AR.FOrlll SFA.I1)_ N. A55UMEU OR'SUPJ13L'T TO"FINANCING:Sollar represents that Caller is not dedriquani on any payments due on any Joann.Seller ahall,within the bona specdfiad In pac;igraph 15,pmvide caplap of as applicable notes and deeds of(rest,Ian balances end current ima rash rates to Buyer, Buyer Ohpll than,within yhs gas spoelaad in paragraph 16.pfavide 9ollof wWh rfotioti,if any,as swdaAd In paragraph 15. DtHarancas belween estimated and acival loan balancaa shall he adluitad at Close Of Escrow by Ceuh down paytnohl.Impound R=UI ts,If any, onall oe assigned and diprgad to Dwyer. and cpsi to Sober.8aher is advised that Buyer's fesumpllon of an axirsng loan may not roipasa Seller Irpm 11?bliny on Thal loan. If Pfoperty Is required sublod In an mdsfina ban. Buyer and,Boller are advised Ia consult With legal pounoid regarding the ability of en dxrsdnq tender to cat 014loan due,and tie consequences thereof. ` J. CLOSING AND OCCUPAN�y A. POBaerislDfl and o"pun'cy,Subject to the rights of Maras under exkf.tng lomoa,ahab h0 def"Mri to Buyer at El AM❑Phi,on lilo date of Close or Escrow,0 on„Q2/15/zpp.2 .Ur 0 no later f}Ian pays Aflw Goae Of Eetaryw. B. AI Close 01 EsaoW,SAII'ar aaAlgns to Buyer Any asaigneblo warraaty',dghls for Items ina.dad in me hale and shell provide any ayeliable c❑plea of such Ywanantlaa. and Will not determine the 840grwbJIky of any werrarp e% C. AI Clos9 Of Faaew,Uhtous viherwlae agreed In wddng,Seller shall 6'rovida keys anrpor means In operate all lochs•mailboxes,security systems, ofirms and garapo door openers, If Property is a unit In a wndwnbduo, of pillar co,o an 4deresf sub,nvinlon, buyor tray bo ti gvlrod Ia nay o oepa:il(o the Ownuro'Aesodadon("OA"I m obtain bays be oc sdbkl OA lacilltles. 4, ALcOOAT'ION Of COSTS fit OIOG9e4):If any of the inspucaonbi or rapratr In paragraph 4A.B,G and O fire checked,lhvo what rogmd to mat from, boyar shall have approval,rammral and gncallallon rights,and ubtigettnno as cpedped In pal graph 15. INSPECTIONS AND AUPOIRTS A.0 Buyer ❑ Sollar shall pay foraawe(connedlan,it r0-gIJIW by IaW prior 10 Close Of Eeaan. B.C) nuyvr L) $elkar shallppy to ltaVesopliO orpdvate Sewage disvoaal ay6tem iospacw. c.r] Buyer C1 Seller shall pay to hava domestic welts tested(Or waler eataoti lty and produavily. D 0 Duyor❑ Seller shah pay for a natural hazard zone dbsdosuro repot)propored by GOVERNMENTNEQUIRnMENT8 AND REfROFIr E,❑ Uuyat❑ Saliaf shah p?y for snokn detector Inal2ltal)on apdror waler beater bracing. If requlrod by late-Fhlor W Close OI Estmw.Seller shot proVlda Buyer a mitten statement Cf wnpl(anas In aemrli win Abitibi qnd locet Uvi,sun"a%ernpl, F.(3 Buyer d Seller shell pay pit onsf of avapllanco with Any other tiltph,Ioln mandalery gavemtnonl rebnfrl atth dards, Inspections and reports it roqulrod as a reaction 0 dosing¢screw Under my Law. ESCROW,TITLE AND OTH7R COSTS O.(h1 Buyer 3 Seller shall pay eapvwfea. Shams aaoally Escrow Haider shall bo zitrSt•fv sc*a carat 3axdr+aa N.0 Buyer W Seller shall pay for tavmeelt Mdif ineula m policy apodfledin paragraph id. Owvnei s We policy to he issued by_-.,_ 1'itok 1lgq ,T{t1a t'amP^-ray I .vers (Buyer shall pay for any,flue Insuranr,e policy hlsurinp Buyers Lenrhir,Milml omaiWise numod.) 1. ❑ Buyer Co 8al4rshall pay County tolouter tax or o%n►for kse. h. 0 Buyer IM Sollar shall pay City a'ansraf un or Asrafsr fee. Ic.Q Buyer 0 Sollor phell piy Owoars'Aaeedaton transfer foes. L. (3 Buyer p S511or Shag pay Ovrrw(a'assodason document preptrnrWa faaA, 6. SELI-Ell DISCLOSURES:Whhln hill time spodfled in plragraph 16,Sellar,shall;inside W BOyar,RI wiiilf o.Ole idlcwin9 disclosures and infam-Allon. Boyer Ahab men, wlg,in the pone specJfied In paragraph 14,invasbpaW;rite dlsdacures and Infomtaton, are provida Seller With notice, if any, as specgiid In paragraph 16. A, NATURAL HAZARD TONI:Special Flood HAMM Mies;Pomnllal Flpodlrlq(Inundagon)Areas:Very Nigh Fire I Ia7AN Seveflty tones•,Stiy%Fire Reopo lslblllty Aveatc Ea(gdM ke Fault zones;Seismic Nau(hj Zone:; or any other federal,slats,or locally daafgm(erl zone for which(Anplawfe in required by Levy. 8. PROPERTY DMCMSURES AND PUBMATTONHt Earinduake Guido(and dlsdo&Ursa),ifrugUlred by Law,and Environmental Hazorda 0601det. (:. S1RUOrdKAL MOBIFICPTIONS: Any, known structural addisona or IdArallolle In, of Cie Insiallsdpl, aitorauun, mpair or repbecement of slgninoanl components of Mo elmctura(a)upon the Propady. l I Ito :a"AOnl law. of Iha Lraaad Mies (rlre 17 U.S. Coda) forbid Iha Buyer And SAllaraduraW ♦razolot of a soar of erlt oapq, ua.wr,Nfimd rWi,a„eton or lore form,or lay updbn the-a(by photocopy Buysra lw rotc( )( 1 machine of pay abhor nano, Inaluahlg laanimae or rawvb6ZVd Iprm219. S4114ea ImWa(. 1� cory IA v fe93-7A01,CALIFORNIA ASSOCwTION or nt!A4"IOf(SO.INC. Al Il dby uran�i r ALL RIGI ITS R,6SERVEP. amMar ar o..ip,w. Data CPA-11 (PAGE 2 of 10) COMMERCIAL PROPERTY PURCHASE,I GREEMENT(CPA-1 f PAGE 2 OF 10) ,(643W44 LVX r 81 Wd8C:5a ENOC! TT 'qaA 'ON XUA -11FIN WOaA ;ENT BY; LYLE COMMERCIAL,;, 700 G25 1080; I'E9.7-02 2;49PM; PACE d i fhnpar(y Addrra-;7slll,..�i,__palm rsnvrr., 1)r3ye P lm ri.,-i....a Pufe-,gypa.r,. 7__3p(b�� D. bOVERNMCNTAL COMPOANCE:Any Improvemortu,addltona, alkiratons.Of rapists MWO by Sonar, or Rnvwn to Seller to IIWU boon evade, wllhOur"Nullad goveanmenWl permlts,flnat Inspections,and approvo ii. E, VIOLIKFTUN NOTIC49;Any notice ofvWetonnofony 1-2WNullw"Uid nualndr We Property and uctuully,Wwwn to SWlw,, F MISGEILANEOU6 ITEMS; Any of Ole fblloWing, It actually known m seller. p) any ormont pending Iawwil(s), Irlvestlaaton(a), Inquhy(lae), ecuon(a), in ut or procaeding(s)offoeting the Properly, or the 1117h1 to use and occupy it; (17) any unsatisfied menflanld or Mateflalman 1(en(a) artnctllo the Propany:and(hill that-try t"Itnt of the PNtMny fa this sublr,<t of a bankruptcy. G. ❑ (If chvokad) GVNDOLaNIUM COhIMON INTEREST 9UBoNI9i(Nd: Pmparry Is a unit In a condominlUm, w o0wr enmmtw Interest subdlvkdvn, Seller short tequ►et from the OA and,upon reGelpt,prD*le to tlUyor, (1)Copiob fit any documents rogWrud by lLatr, 01)dledusUre of Orly pending or III19allon kiy or alalnat the Ok glb;l a stablunont contairdng Iha location and nurrZur of daslgnauld partdng and storage apace-; pv)j Cnploa of ere never rim 12 tomes of OA nfoutas for fepular and epedal meetings,Ir ovallahle;and M me names and oorited IntOmlaton of all Ohs gnvemlng pre Property. N. SUDappUENT D15GLOSURAS: In a,a event Saear, prior In Cbea,Of Escrow, bowrnes otvgm of edv-ras wndIdens ma nrlally affedbhg the Prupr-ly, or any mDduffel.ineccumcy In dlttnai ures, information, or reprooantadons pravlousty providod W Buyer of whidh Buyer is ostervrls► unaware, Solver aludl prorrV4Y provide a iadeaquent err amended,disdasuro, In mling, covering peso Itwms- However, a sulauqusnl or amended drvoloaum affair not bo roqulnRl far Crmdlllone and trwiredal IneccureGlea dlsaloaod In rrpoela tecakved by s4yer, e. SELLER DOCUMENTATION; Within the time speoifled in parograpn 15,.50114if shall provide Buyer the fotowing Inlonnaton.Buyer shall then,WIND III lime opmuTied In paragraph 15,inveadaato lite InlOmraton and provide Sslier watt notice,It any.as specified In paragraph 15. A. OURVM, PLANS AND KNOINEERING DOCUMENT81 copied of suhysy-,plane,npadacadons, and onglneedng documents,if any, in Sellera posesesion or oontrol, B, RENTAL&fiRVICE AGREEMENTS;(I)All Wrront leases,rental agrenmoms,eorvlce wnuada,and other Wiaii llenlf pertarning W live Operation of the Property;And(II)a rental s allca nt induding names of bnantn,rental fetes.period of rental,dOte of last ranl tnrrease,security dapooke, rental aoncaeelono,robe tap,or other batlnfila.If arty,and a list of dollriquent rents and thoir dunton.Sulker raprosahlll that fin lailanl is enlium W any mnroaabn,rebate,orlotiwr bnGhl"Ouptas sat toM In those dlimnlonls, C. INCOME AND EXPBNSF 18TATEMENT9: The booke and records, Indarling A staWmfint of income and axpenea for Iho 12 monlits preceding Acosptance.Ectior represents that tho hooks and rsoords uro Bides rnAlill-l"d in Iha OWInary dud normal COUraa of business, and avoid by Seller in the compubtkn of retinal and Delta inoonta cos rolufnd. U. ral OPPet.GENTIrICAYNa:Tenant E.aloppal varilllca4a corrplolod by Seller or 5aller'4 oeent,aaknewlsdging: 01 that lananic'rental or levee egrepn,enta are unmodlAaq unit In fulf face end afloat(or it moditod,;atatlna all such mvdlflCatona)f(ii)10hif no Iatu Dr defaults "bib and(fit) the 71rvmril of any,prvpald rnn(Orsocuttly tiepoati,Tunanl Faloppel GWARWO ahaN be algrlbd by each tenant of,if la tenant Otani i noralgn,by striker or Sete"ll agonl,Who shall InglCalle wllethar arnot the signature Is bindinp upon the tenant. F. PERMITS:If In 9ollefs poioasslon.Initial at all permits and approvab oonceming the Property,obtained frnm any govemnrental entity,InclOc Ina, but not Ilndted to,CardAcalea or Decutenoy,Gondluonal Ueo Pemite,D volopmenl Plans,and ticid138a and Permib pbrmining to iho operation of file Ptuaerty, �. n (If dhecksd)ENVIRQNMENTAL SURVEY:Within Doya,Rfs3r Acceptance,Buyerdhall ba provided a OW59 Ono anvtonnnnr-d survey roport paid for and obtstood by n Duyor,0 Sall or.Buyer shall then,01hin the alma spudned in paggraph I$.provide Seller Wldh notice,If any,as opeclfisd In paragnaph 15.1 tl CNANGE3 DUR1N0 E3CROWI A, Prior to Close or Escrow,Seller may nnty anilage in the follosing acla("Pmpbsad Changes )sub)Ocl W Buysr's rlohla In paragraph BU:0)font or leaao any Vacant fU1H Of alhot pan of Ira prerriolue;fill albtr,modify,C(irxlond any e)dateg rontul or IeaUb agroarriont;till)anlar Into, adinr,modify or extend any seMq rnhbaGi(s);Of(fV)cMnge Ube eklue W Into aonditvn of Property. 0, sailor shall vivo Vmg.n notca W 8uy"of any Proposed Cl,whga.Hu.-per shall,within(lid Umeapedhed In paragraph 15.proyWo WIV wilt,notice, if any,as speCAN In p9raatop111S.And if Buyardl5approindS Gelhrshoil not makegho Proposed Changes. 9- CONDITION OF PROPERTY;I A. UnlmeO othwvneo agrsud,�) Property IL sold(a) In via PRESENT IPft snail cond(Uan on the date of Aj;o"Mncs and(b) ■ubject to 9uysr I nape Dion rights; (Ill Pniparty.Including pool, spa, landscypinp and grovnds,io W Ion tnainbdnud in substantially the same oondilloh es on the WE or Acceplanoa;and(Ili)at debris end personal property not Included in tha We shell be ramovad by C103o or Faww. U. dSLI-gat SIJA"OIbUM KNOWN AIATERW.PAM AND WlliCTd AND MI OTTER DWI-CIlURES RBgUIR*D UY IOW. C. Buyer has the right to IneplI this PrWony and,boned upon infortilam;,n alAcamrdd in Inwe Infirulaone,may rrabonably raquwt that Wier make Rapalm.r/1fraL'tllne or Ltke 601tur aadtill us spadfrad In pmagroph Ia.: U. NOW to Buyer,You are hitrwraly advised to conduct frnpeativns of die snffm Prolwrty In ordrr to detormins Its praeent cenuNon alnov Saner may not Ice award)of all daeecte efirminp the Property or mane hctors that you corlpilau Impons lt,property Irllpmysmantx may not be built etwording la uodac or In complionvs With aurronl Lavr,or hsva iced iasnifft 4%tead, e, Not*to 9sltwr. Buyermay requurt tlwt you mike certain R■palra end.In IIw even%yogrefuse or are unable to make those Bandits,Duyar may"rroul[file Aprosmant as specified In paroaraph 15. rim r:cpydgre,l." of IIw United ytamr (Tide 17 U.S, rods) krbld Iha bvyerana aillwaOtanD121 ererpraf a copy of lhitpiga. unana,miccd wrrpdp Pll of ua. fe''mm''`` er cry poifall Ihanl, by phamoopy nuyah 1 1114 n,ca,ihw pr any Ouor moans, Inalod Fie `rc Irnfu or wrhavlohliW ronrwa. Saar.Iier �I( I conmrpht m Igo Y2ear.C'ALIFORNIA A5a0(IIATION OF REALTOR66,INC. Alt rVOInERCeLliyeP, n'remYd-y vvwiwSS CPA-11 (PAQEJ We) trokef or DesNnae__^ deed COIMMERCIAL PROPERTY PURr_HASEi AGREEMENT(CPA-1t PAGE 3 OF 1 O) 76a3Aoal,ts t Gd I,Id6T:S0 E00e TT 'gad 76 'OI'I XUJ U21dHIy3NU �Idhl I.IOad — , . .� ..-•� ••� yr rco-r -vim a.v�rmj rHllC u/'V SENT BY: LYLE DOMMUCTAL; 760 A25 IOSB;V FE04-02 3:3GPM; PAGE 314 I Property Addmaa:a o01 N n>,z„ roe v, urn.. tilt y.. c.,r(..na D■le:)^nbnrar lo. FIXTURLra AND PEFli PROPERTY; A. ITEMS INCLUDED INpALE:NI EXISTING fixlurna and Aningo Mal,7rc attached tt Via Property,ate.INCLUDED IN YHE PURCHASE PRICE (unless exauded In paragraph 10D below), and Mail be Iromfened free of thaw and without Seller warrenty. Itoms to be (ranahwW shall Induce, but are not P,Wsfd to, eatcting oleartr_ol, mechanical, lighting, plombinp and Ileban0 Wares, Irmplace iWorta, solar syinerra,Oullbin uppltuncos,ydrldow olio door erta¢no,awninos,ShvNito,Window tovednge, altadaid holy cM0171,lelevislan antennas,owbilite dishes and felatod agolpmoni, private Inlogratad tctcphono nyatema, air CogllirslwndHlonem, pW9apa eaolPfIIri garage door OpanerS)mmole mgaola alWrhow Areplacc eyuipmonl, mailbox,In{1MImd lendecaplag, Inqud{rxt u0oo)uhmbs,and (it owned by Seller)water nohnners,Wato(purldaes and a■cunry systamira F2rma. U, ADDITIONAL ITEMS INCLUDED:A Complete in"nrary Of on IbM1f9nal property of Sellsr c tnf try aced In the opsretion of lho Proparly and Incluwad it)the purdlAse prim,ehwn be delivered la Buyer within Om little opedlleo In peregmph 15,Buyer shalt Ihen.VAInln the lime apselned in phiagraph 15, provide Sallor VAth nonce,If any, as specirleo III polegroph 15.Seller uhea delivar UI(e,to the pelaonal property by Din of solo, nee of an liars Imo encumbrances,and without wnaanty,of condltion,except _ .Ao addlllonal security for any nuke in;favor of Seller for any part of the purchase once, Buyer often execute a VCG7 Fingndng 5411em"nl to be(MI wile Vie Serremry of site,coverin8 the person2i proporty Induded in the punobase,replacement thereof,and any Inal ranoC proceeds, C. 1TRMR EXCL UDEn FROM SALE: I I __ W thin the(lino upeelfiedin paragraph 15,Sailer#hall give BuyV a 11s1 of Axtures nol Owned by Sollar.Buyer ellan then.within tha liar opedned In paragraph is,prdv(de seller with notice,if any,as opedAod In paraglitph 10. 11. DUYER'A INVESTICfATION OF PROPERTY CONDrROW Bvyere at ruplanco of the cpndlton of,and any Otlwr coeliac affecting.VIO Property is a wnlingoney of 016 Agreemont. as specified in MIS paragraph and paregfaptl 15.0uyer shall)lave the fight at Bayer$606DAa, Unless Olharvdse agreed,to conduct Inspections.InyoufigaVr a t.to■la,surreys,and ogler pa,dles("InspEetloneI,including the fight to:11)Inepoot for Iaad-bPeod point and other load-basad plint'hatdrds;and(10 IWod for wood deotroying poor$and organisms,No Inapecllcns shall be made try arty❑ovemrnenlal building or zoning inspecoa S. or povommenl employee.vdUmul Sellora pilot vnitwn conwel, do ao$ raguired fry Lour. Buyaf shah eprnploA those tncpeellons and ohro any Written nneca In Seller wlUri the Itch spneltifpd In paragraph 15.At Sallor&raqueal,Royer aholl glva Seller,at no Cool. mmolote Copts of oil IroPPeoson rapodn oulecod"Ouyera wrltWn ra,nueafa.Seller shill make Proparly Owilable for all Inapc tut,• $0qr shalt hayn Wolof,gas and etecldgty on for Boyea a Inspectors and throuoh Vw dal)posN$slOn-le made AvAilOW■to Buyer. 12. REPAIRS:Ropahc small bui comq(otdd prior to final vsdfiz»i of condtllon unless otherwl■n agreed In wailing.Repairs b bra paffono,od III Salleru dxponae stay be performen;by Seller or through ohms,prvvidod chat W41rA c,ornpte,valet upPecallle Law,Includeill gOwnmmenlal Vernon,Inspectlnn and approval Ropstra shag No performed In a skIIAUI manaaf with at;Wd to of quality and appearance comparable to existing nol6nal9,it Is undaralood that exert raaltJmlion of 011111e2ranc9 or cosfneVO farm fdlawing all Repairs Iney not be pos$lblo.Seller MOD:(1)Obtain rewIPLn for Rapalra performed by olhors; (if)prepare a wrldan SWlumem Indlcallnp the Rupolm pefforMDd by Seller and lho dale of such Repairs; and(Ilg piOVldo Csplee of rccli and slatomenW to Buyor plies lofinal freNAcalion Of condition, ID. BUVER INDL=MNITY AND SELLER proTECTION FUR ENTRY DPOIJ PROPERTY; Buyer shall (I) Aaap Property fro" and dear of liens; 0) indemnity said hold Salter Itprm)oas from an li#blllty, claims, demands, dnmarl and rw#k adcing from InjpacYoru;And ((II) R"Pab all dum"ges adsing from Inspectons,Buyer shell corry.qr euyur Oha7I roqu'ua anyone noanp on Euyo?$behalflo cony poltdaa of)]ability,w•<aieora'fyaml>�saaa+, aqd other applicable Inaurarfr ,dolepolno one protecting Seller front liaclllry for any Injuries for perverts or property oeeu¢inp during any InaP"A(Ons or worK done on th t Propenty at egy"ye direadon Inter to Cloeo Of El uow Salor is advised that certain proledrono attractedSal may be attracted lor by n:uarding a Notice of Non Rcsponelbilily fof lnopecdgn8 and wofif done art Iha Property al Buyera ddmctlon. 11. TTTLE ANO VESTING: i A. Wllhlu the gale eped(led In paragraph 15.Buyer shall be provided a ia,nefrt preliminary(file)fepvM which is only an offer by 61e I tle insurer in Issue a policy of Vve Insulanne,aril Play truck CoplAtn every Item afiecllnp Aga.Buyer Shall provide wrlllon notice 19 Seller In Rucorwanev"rim and wlann the ertw spooned in paragraph•IS. B. At Close Of MUPW, Duyar#hat roculve a grant doud convoying fills,Including oil,minefal and water rfghu if currently owned by Seller-Tin, orwll be subject Ic as en1werbra l aeao~1a,covonania,condlllnrts,roaldcdons,rights and other malterx scot ore of record or dlodO On In Buyur prior W C4 sa Of Escrow,unlash omerniso mquaulod In mitn0•,oy Buyer and agreed to by Sallor wiWn lh■time#Padded In paragraph 76, Florwovor,tide shall nol bra Seblacl to any lions aga nod the Property.VIX0 t for khaae apecrrtod In Ibis Agrdetrlent,11 lie shell vest as danlgnated In BVYnr's supplamenlAl escrowInsoucllans.THE MANNER OF TAKING TITLE MAY HAVP SIGNIFICANT LEGALAND TAX WNSIEQUENCES. C. Bayer enaVi receive a CL'i h policy Oi Tlde Insurance,If avuUgblo teethe Iroparty.A We company,at Ryreh reyuooL ran provide inf xlnatlnn about availability,doafrablllly,covempe, and cost of venous tide asiganx coyoragot And IndoNomenm, It Buyer desires IlW oaWAyo Orhor than that reaulrod by thlelparagrapA,Uuyar shalt InoAupt FscNw lioldm in wdlinp and pay any incrouee in a>vb The cohl loaf of III# WIWI 9latos (TIII■ 17 11.11, Code) lonwal Iha outer and SegorAarjowl alp)afasoay Wells gape. pytgoa �naallwrirAO ropralacann of sus IomL a Yn ponlon Inemor, oWaoex Beyert Ihilals( ""no of■nr one,enoarnl,Includkrp�r,,,rnlio or ooh vaiosbz d fermata. Sellefc Inldats(_ Copyrlera la 199330e1.CALIFORNIA ASSOCIATION of REALTORSO.INC. R—a .ad by r•cwrvery rLL RIGHls iti3$GRVflD, Brol2r or Da donee Data GPA-11 (PAGE 4 of 10) CO MMRBCIAL PROPERTY PURCI IASF AGREEMENT(CPA./i PAGE d OF 10) "1"ea]da42.ZFX OTd Wd0Z:S2 200Z 7T 'Sad �Tt96676G6 'ON XUA 9 f3H1131,11:1 "113N ILIOHE (=RON : HEIL ANENBERG FAX 110. : 941949,36413 Feb. 11 2002 03:21PN P11 I NT '8y: DONUT 0EVi7L0PMENT; 714 544 opno; FE8-7-OP 6:o2pM; PAOF 2 SENT BY: LYLE COMMERCIAL; 780 325 1009; FEB 7.02 3:36PM; PAGE 4/4 pmpa AIk11C5y'29{t1_H Pa is r. „�_➢,r rg nalw t pma ysfjixllary � 15 TINS PERIODS; RI!MOVAL OF CONJINGENCIES; CANCELLATION RIGHTS: The fullowing flat* padods may only tie oxfendi d, allures, modlred or ddungod by mutual wrllfrm egfearrhvnl. ' A. ORDERING,COMPLETING AND iIEVIEWINO NSPLCTIONV AN)RapOR-IB: (1) SELI-.15R HAB: S (or Q )Dayt Aflar Apcoptanca,or os applloalyla,dlacovery,b orda4 rtlgheat or oomplale'pll reports,disdwurea and infom,agon for whldr Seller Is responclble under persgraphs 2N,d,e,a,7,6,10,and 1/-6squr fins 2 Daya After;vcufpil(or nornplation) of any of Ihapp Items to provide II Ia Buyar.Buyer hae A(ar0__,_J D*y+A.(rAr raeeiyi o1(I)each of iho ebpve;tents and(II)notice of violation of Law Under paraQmph 5E and Proposed Chong"under poreigroph a to MVlaw VIo typal.disdosur+or abler Infnmtaton. (2) UUYER HAS:14(or 0 _.._,_._.__)Days After Acceplahcii le connI:lolh all Inspedionz,InvaaproNfona and raNe'w of reporla and Other appllcublo inrdrnialion kr whldi Buyer Iz responsible. D. (1) APPROVAL OR REQUCBTt Within to clines spildfled above(or Paragreh 2H for loan"Ingdmcy).Buyer shall provide Seller with wither (q an UnCo ldlOowl eppmval and removal of Vie applImbla contingency,or fill a masonabia Written request Viet Satiny RsPoir a take ulh*T ocrlon(or for loan cwdingency,wifoo lallon If Buyer ha unglile to obtain Uul daaignabad loan). (2) EFFECT OF BUYER'S REgLIEr P If,pursuant to Bit), Buyer roasonablp inquests that Soller Repair or take ogler eGlion,Buyar and Soller have 6(or 0 )Days After Seller's receipt of Buyers request to reach mutual written agreenlenl on Buynrio ragliozl. it(1)Follur has aoreed In writing to unconditionally and oompletely take trip action rogUaltod by Buyer,or(Ill Buyer an0 Sallar havo renmed a mutual written agmonram with reaped to those Item,then file Imhvotbn shall Proceed of thom l."is,seller has no obl(goGi's,.t re"a or Ilnpiled,to sallafy Buyera RiquYpls, I (s) EFFECT OF NO WRITTEN AGREEMENT ON BUYER'S REGUEBTS! It. at trip expiration of the Um in R(2),tie(ther B(9.m nor(if)has vccuned,Buyer has 2(00 . _)Dayo to cancel clue Agri loam In wdhng C. ACT IYE OR PASSIVE KEMOVAL OF CONTINGtNC Ir.S AND CANCEL LATIDN RIC HTe: !1) 17 nn'7IVe METHOD(ApPllna Doty if dleckodJ: (a) IN.wiluen request or renhoi-al by Deyvd If,Wthin 01e Gore gpedlied In A,Buyer dams not give Salley wntlen t(aVae pursuant In I Seller nlay fAarrl Qua Afp'wn,ontin wJUng,Notwlth]tandmq the CCpuuUon Of Ulu Urn*apocMed,Buye, rolollrsllha dphl to etvs Seller wdhan noaco ubdur B7 at may lirne prior to receiving SoIIV:, wriiten cencaiiaUal. Onto Sullor reoelvos Birybra mWon rugueaL a romovai,ss0or may not ctmoul quo Agravmanl pursuant toparCgrollh C(11(s). i (b) (No written caneallagun by Buyer)If,within the thme specifled.Rnyar does not give Sallar wrlten noUce of cancetlaUon pursumir to B(21, either Buyer at Sell may cancel this y Seller y Agreement in wri11M2 at any lima prior to Buyar and Seller reoohlnp mutual attic* agreement w1m raVbd to any Mquamta nrado pursoonl to 13(1). (2) PAS 9IVE MHTNOD; It,WNhln Vie IImB spedAed,Buyer rhea not give Si1tieC(iJ a reoeonaule Milan roqua*!pureuAnt to DII)(or for loon contingency, canctifiallon It Buyer Is unable UI obtain the designated ban). or (II) wdlton noven of caneaf(atlon purauanl to D(3) I) no agroemunl is reached on Buyer's requests.Ulan Buyer shall tie doenrardi as applicable,to have Approved and nunoved the contingency or wiJndiawn me request Ana waNdd any nahl to CdncJl ass6dal6d YAM the rogagabed Item. 1 D, EFFECT OF REMOVAL: If Buyer ronevos any contingency or canca0atlon HUM by the active or paaelva method, tie applicable. Buyer shall conclusively Do deamud to have: (1) coMplolad ad Inapgalymp, Inva0gag.sns, and review of reportt end oUser applicable Infomlalinn pro disdosursa runUlnrnq to Ural mnUnpanq or mncellalion dghl; (II) eloclonl Io procood wilh the trAhsoci(orn and (li)' gasurmd all II*billly, ielponAhifty,and okpanae bar Repair,or rorectorm pertaining la mat mntiugency or mncallmplon right,or(or Inability ti}obtain financing if the contingency parulins to nnanang,unions,pursuant to 8(2)or eltetvhare In dhtit Agreement,Seiler ogtpas to Mots Repairs pc lake other ecton, E EFFECT OF CANCELLATION ON DEPOSTS:It Buyer or Seller gives wriden NOTICE OF CANCELLATION purgvaot to ilghie duly axnwned under ills Dean of IAIs AgroernenL Buyer and Serer agree to Sion mutual fmlVuclians to nnWl the sale and 96clow aridllaiease dopoalls,lest loos end costs. N the party entitled IC the funds- Fees ano costs may be Iluyahlo to aewioo providers and varidore for s;e vicoa said ploovps provided during escrow.11e1eese of fonds will r"uire pnuluagy,fined rJokm Instrucuoru from Buyar and Bellol;.)udlelal raweloil of arldtvalion award.A Party may be*Ub)acl to a clvg IrenOpr of up to S1,fila for rarusai to algn ouch(natrOctions if(w good(ultb dlspuW aximll as to who Is earthed to t a daposhad funds(Civil Code 41061.9). ! 16. r(HAL VERIFICAMOH OF CONDITION;Buyer shall haw the right to Malin a anal Inspection of the Propony within a(a _I )Pays piton In Close Of Escrow, NOT AS A CONTINQFNCY OF THE SALE,but solely to conflon(I)Property is mpintated pUroua,l t to pnrauroph 9A,(11) Repuhd have boon completed as agread,And(III)Sallar has oompad with S.Ilera other obggoaone. iT ENVIRONMENTAL ITALIRD CONIJULIAT(GN:Buyer and Sallar pcknoaialpc:(1)Fudorat,state,and Ioml Ioghlallon anposi fluhitty,upon existing and former owners wild Users of real pmpalty.0 applicable eltdavmia,for captain legivau.my darned.onvlronrcwnlaliy heigcdouo suuetancee:fill Broker tins made no repwsentegtin concerning Me applloaUiinty of any ouch Imw to thin nansaclion, be Nuyw. or la Soller„ eyaaPI e6 olpervrlao Inalrnbntl rn dt;s Ao,ernbanr; [OB Blekafts) hasuhmus Made tie TOPFBSanlgtom mfoeming the ValelenCa, teadng,dl oomy, Jo Mlon and ev%lui on olltar, and nekt posed by, nnvimnmentally li. rMous sobtranms,if any,Ia,abid on or polgonally affaclIno the Property;and (Iv)Buyer end Sulfur are each edviged to consult aim 10130ull end 1601 mpofts concerning file euiasnm fabling, dlscovary,location, and evali afiw differ, Clod Asks posed by environt"Alany h2nordoua Auhstancea,irany.located on Or polarnally affeedng Ifra Property. is AMERICANS WITH DISABILMS A":The Americana MM Dlaabilites Act('ADA')prohitilbi dlsulunfnaltOo agafngt Indtvlduals with dieshlitties. I he ADA 060S almost nil carivnefr)al fa11116esr and PUbTIC Acoarurrodatldns.The ADA on require,among other things,bullMhgu to be made readily ocresslble to the dlaabfod, DI(reront roquirertwnh apply to new wri3tructon, alterations to rxlatnq buildings,and Mnicbral'of barrlere In axlatlng buildings. C n3pllanoe W(h file ADA may Neoidra algnlflAent costs. Monetary ono( ai)undivo retnerfee may be Incurtad If;:016 Property is not in complianw. A real paWla uroNer Beell not have the teohnical expeulee either Lo dtiWMIna whether a bulding 1, In Cotnptlsnce With ADA requirenW?N, or to 211vls14 a pllndpal Off Ihose IogUlr61nap16. Buyer still Seller are advised to conhad an attorney,rwrlhador;architect.englnoof of offer qualifsd proraulonal of hialhor oM Choosing to determine to whitdegreo.If At all,trio ADA Impaal5(hat principal or ens'*dnsbalon. iv SECURITY D6FGUrr3;Gdaidly depMIM.If Wily,Io rho extent MAY havo nor bivdn applied by Seller in accordanw With any ronlal aorwemon(and Uldeni law,Shall be Irzus")Od to Buyer on Close Or Eaarrlw.Sellershalf nopry oath tenant,6)mmplianco YAM me Civil code,. fill, enayngiA taw, of Uw UMAU State (TWO +y U.S. code) 63Md the Bui.er+rid Selo,.aTnw( ecaipt of a copy of lMa pball ,,,,,•rpo,l,..d np,odudlon of;rile 10m1,or any Fortran unMeWr,py photocopy euyer*Inubvii(�I(/'[ mppin. or any Wear mwene, Inelodl4d fao"14 or M,lp,,lt&:od fGmyla. SWiar+InieW a T `Ili_[C1J:= ) . [,yy,lel,l a 101?a•I001.CALIFORNIA"SOCIATIOIJ OF REALYORS0,INc. f alnip,.yp by ALL RIG14TS RESGRVED. I(eTiokar prOmlpnaa Dula 11 CPA-11 (PAGE 5 of'10) COMMERCIAL.PROPERTY PURCHASE AGRCL'MENT(CPA-11 PAGE 5 OF 10) T(036042,Zvx I I FROM NEIL AHEFIBERG FAX NO. 9494996413 Feb. 11 2002 05:22PM P12 RpIJT �Y: 8UAfJ(7TT 0[V61.6PMI7NT; 71d 544 0900: FFB�7-02 4:25PM; PAGE a ENT GY: LYIF COMMERCIAI.; Tao 325 10110; FEA-7-02 2:49PM; PARE 4 P(oparlY Address 7 n_g 1_,n Py r,,, c nv n U�,Ye_Ya.7__.Liplflap' __.— - -- .Da10'P.n rvary 7 aenP� 20. LIQUIDATED DAMAGES: If ouyer falls in complote thla purChila@ because of Buyer's dofauitr Seller shall retain, as liquidated damages for bruach of contract, the depoalt actually paid, Buyer and Seller agree that this amount In a roasanable aural given that It is Impractical or extremely difficult to astabllah the amount of damages that would actually he suffered by Sailor In the avmnt Buyer wore to breach this Agresmoti, Release of fundu will require mutual. Signed raleave. Instrucllans from both Buyer and Soifer, Judicial decision or arbltratlon award, BUYER AND SELLER SHALL !SIGN A SEPARATE LI DATi!:D DAMAGES PROVISION FOR ANY INCREASED DEPOSIT (C,A.R. FORM RID-11). . Buyors'Initisla .._ ,_ _1 _ Seller'sinitiala st. OIOPUYLa Rt?&OLU`f10W: I A MEDIATION: Buyer and sailor agree to medlale tiny dispute or claim seising boh%ean them Out of thls Agreement, or any reaulang Imrv.ecuon, before reaoNng to arbaration or court action. Parnigrxptt#21 B(2) and (9) below apply whether or not the Arbitration provlxlon Is Initlaled, Medlaton toga,if any,shall be dtvldmd equally among the partles Involved. If,for say dlsputa 01 Balm to which this parsgreph Appllea, any patty mmmenees on ni:tbn without nrat alfemong to resolve the matter through mediation, or refuses to modlata after a request has been made, than that party shall nut be entitled to r' oovar ellomey fans, even If they wrould others lse be avAllable to that party in any such action,THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION Is INITIALED. a. ARBITRATION OF DISPU'TPu-St (1) Buyer end Seller agree that any dlsprrta or claim In Law or equity arloing betwusrh thern out of this Agreement ar any reaulting trensectlon, which, to not settied through mediation, shall be doceded by neutral, binding arbitratlon, Includlnljl and subject to paragraphs 21 B(2) and (3) below. The arbitrator shall he a retired judge or justice, or on attorney with at least 5 years of real ustste transactional Law experlonue, unless the parties mutually agree to a different arbitrator, Who rhfill vender an award In accordance with cubeantivo California "mi. In all other respects, the arbitration shall be conducted In accordance With Part III, Title 9 of ilia Call;urnla Code of Civil Procedure. Judgment upon ilia award of ilia arbltrator(s) rosy be entarad In any court having jurisdiction,The parties shall have the right to dlscovary In accordanea with Coda of Civil Procedure §1I163.0. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION:The followina matters are oxcluded from medlabon and arbitration: (1) a judicial or non-judldal foreclosure or other salon or proceeding to enforce a deed of bust, mortgage, or Instelknent Wnd sale wnttect as defined In Civil Code §2985; (II)an unlawful detal0rer action; (Ili) tho flung or erifu"meut of a rew:hanlca lion; (iv) any triatler that is within tho juriydkllon of a probate,Small claims,ar bankruptcy court; and (v) an actlan for barmy Injury or wrongful doath, or any right of aaan to which Code of Civil PrOM111re§337.1 or§337.16 applies.Tito filing of a Court scdon ra onoble the rewtding of a hotica of pendlrrg adlon, for order of attachment, receiverahlp, injunction, or other provloonal remedies,shall riot mnatitute a violation of the mediation and arbllnation provisions. (3) BROKERS: Buyer and Seller agroo to medlato and arbiaato ihopvtev or dolma involving eft her or loth Brokers, provided ellhol or bolt Bmkale#hall have agreed to such mediation or arbitration prior to,or wlhin o mawrobla tuna aftnr,Ilia dispula or dolm is preaentud to Brokers.Any election by either nr both 13fakors to participate In medlallon or arbitration shall not rocUR in Woken;Wring deemed partles to the Aureomenl. "NOTICE: BY INITIALING IN THE SPACE BELOW YOd ARE AOREEING TO HAVE ANY DIBPUTF ARISING ARISING OUT OF THE MATTERS INCLUDED IN THE rJI,RBrrRATION OF DISPUTES, Pl��OV1SION DIECIDED BY NEUTRAL ARBIYRATIC)N AS PROVIDED 13Y CALIFORNIA LAW AND YOU ARE GIVIf90 UP ANY RIf3HTs YOU MIGUT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIM.. BY INITIAL.INO IN THr SPACE AGLOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLE" THOSF RIGHT'S An SPECIFICALLY INCLUDED IN THV,.'ARBITRATION OF DISPUTES' F RCIVISIOH. IF YOU . REFUSE TO SUBMIT TO ARBITRATION AFTER AGREE114G TO THIS PROVISION,YOU MAY HE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL OROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.- "WE HAVE READ AND UNDERSTAND THE FOREGbING AND AOREE TO SUBMIT �ISPUTES ARISING OUT OF THE MATTERS INCLUDED IN T_H,�E 'A ,R, ATION OF DISPUTES' PROVISION TO NFU_TRA_L ARBITRATION," Buyer's Initials INr / SelloNs inlUrlir ! 1 I The copyltght laws or ,lw UMI+d Sraoa (rhb 17 U.S. Cab) Ibrhld law 'au'lr and eetlor Aamw dptof gimpy 0011&pep*. MAUJ1W,U,,d ,ap,aruara,or ima rurtn, a any aanlon ahe,6-1.�y rhnko V auyere INWrb I x l rvd,lra a any alhor mane, lioudlna UC41 dta or CWMWredlUd rG,'rn rn- Ballera Initials CopyrlUht C IM-2❑o1,CALIFOR A ASSOCIA-1ION OF RP U-TOR6e.INC. Rrrlaww ay Ali RIG14TE RESERVED. arorarrar Daeipiwa k1�I,n CPA-11 (PAGE a of 10l coNIMERCIAL PROPERTY PURCHASE AGI4EEMENT(CPA•11 PAGE a OF 10) I T6436a42.2Px i Ff201•I : FIL=II_ gl•l1=hNL=RG FRX IJO. 9g911956413 Feb. 11 2002 05:23PM P13 ------------ seat BY: AUNXTT l5rM nPUMT; 7Q E44 0200; 78-7-02 4:MPM; PROF 5 ENT BY: LYLE COMMERCIAL; 780 325 1080; FES-7-02 2;50PM; rune a Pmporiy AdaSmsa'�AIl12y__palar.s'aa�QA�lra YaIm e.: na, ..._..— pakr•T.bivary 7�agg,'L_ 22, PRORKBONa OF PROPERTY TAM AND a(HER ITEMS;Unhrss othurwe,a apraed in writing,the foflumng Marne shall be PAIO CURRENT mid prorotod bstwnarl Buyer and Sager as of Close Of Esdow,real property taxes and"W11451enis,Intar"k rams,OA rsljuw.spWal,and omrergeney duca and asaounmcrits unposed prior In Clms Of Eacm, pramlums no Inmrrltnce uallpolid by 0uyer, paynlenln on bdods and a,s mnnts owumcd by Uuyor,and poymcntrt on Mullo4'loos and 611h r Spacial Asgmatim ant I;Ilah'kk Fonda and aaasasmonla Ural am reiw a lion.lhu follmving ilems ahull lift asouuwd by Buyer WITHOUT CREDIT toward lho purchaao piloe:prorated payrronts an Mello loida end shier Spatial AEA swunrint UIsIdrA Wilds and aasosaments, and OA ape"aasossmenls that are now a lien but not yal due. Pioporty Will be ra abiJi sad Upon change of owtwishlp,Any supplemental lax We shall be paid as loilows p)far pBriode afbor Mae Of Escl ww•by Buyor;and(it)for phriods prior to Close Or Esrrov.by sailer.TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE IIIANDL2D DIRECTLY BETWEEN BUYER AND SELLER. Proraauns shall ha tirade basad on a 90-dayrbmth. Ex�apliona bPrafadony: � __„ 23, WITHHOLDING TAMJ3L Boller and BUynraoraa to axscum any limirNmanl, arfldavil,YLnament at Instruction ryaswably n®oeseary to comply with ledoial(FIRI'TA)and Calhomla vdtflhuidinp Law,if requlrod(C,AR.Forma AS-11',ppd A&11j. 24. PROPERTY DATA 5Ye1TRM: Brokers am authorized to roomt the tulmsi of lhhs banvncUoo to any Property Daly Syshnhl, to bo publlshod and dwwr lnutod to polvrrla and endflgs authodted Io use Diu Information on tosna appmv(w by Ow Property Data byatern. 21. EQUAL OPPORTUNITY;The Property Is SWd In compliance with hadorol,trials and Iowl ml}-dlaorintinagan raw, 2a. A I rORNEY FEES: in any action.ptocaading,or arhillaaon between Buyer and`Srdwr w6ing old of DiN AgieurrbnL the pievailinq Buyur or Salter shill bo onddad to ro:rsnnable atlornoy faca and raab from tho lion-pravaliing au]f�r or Softer.except ps proAdod In paragrapb 21A. 97. 6ELECTION Of SERVICE PR"CIERS:if Elmlioro glve Buyer or Soll.r reforrainr to parsons,vanda-s,or ssrvlco or product providero("Pioyldan'), G,.hero no not gu iranlea ex1 pednrrt antxd of any of unwo Providers,Buyer and 5 tiller may ualuct ANY Prrmdsra of throb awn uhi>DiiIing. 28, TIME OF E65ENCE; ENTIRE CONTRACT; CHANGES: Tlrno Is of Iho eawos. All alalaratandings bstween hla pdrildtil Inawpumied in tbio Apreomont IN drifts are nlonded by lho perhaa as N final.bauplete end exdoalvb expression of their Agreement with rw;ieci'to Its hubinct matter, and may not too conlraelGied by ovldoncw of any prior agmemerit or cantemporsrnaous mat apn:eMINIL If any praNslon of this A{yument la h idd In Ira Ineffective or Invalid, the remaining provisions will nevertholosa be glvon full-Toro and effect NolHror lids Agroomanf'nnr any provlelon In II may ba extondad,amended,modiliad,allerad orrh1rI W.axvspt In vatting$Igrrsd by Buyarand Sulfur. 29. ASSIOld11ENT'Buyor shall not aaatgn all or any pad of 9uyor'ic Ineerosts in this ilQmomont widwut hrel havino obtained tht!wrluon consont of Seller- such Cahaent shall not ba unrweonably withhold, unlow; olhatvdsa ugr%W In wdDng. Any teal or Porllal assltIomohl shall not rall.Va euysf Duym'n obllgnions pur'sunrit to this Apreemonb 70. SUr CeSSORs AND ASSIGNS:Thls Aprecmentshell ba binding upon,and inude to the banefit of,Duyer and Seller and thplr mileullye suomirlip s and accigna,w eptas otherwise prrnldud harsln. a1. COMM Seller and Buyor each ropreswnl(hat Coplaa.fall nip❑di,doclirnenhl,wi-Ocates,approvals,and pthm tlocurn►hitx that are furnlshad to die ndler am true,mnl;ct and urniMml Copkm Who original documents,It Iha orl0mu;am in th4 pasBuealon of the fuml4hing parry. 22 GOVERNING LAW!TIlm AgmenrieriYahaff be govorried by tha Lawn a'Uw ages of Cautornlo- I 33. AUTHORITY: Any pwison or rwrsons slgning this Agreement lepro ntta) prof such person has full power and authority to birW thut pemarv(s)' ndndrvl,and that dw daAlgnated Buynr and Sd)W have Ng i udlorRy to enter Inln and perform this Agmenotinl.Entedup into Ito%Agroomant.and aro c Tlplaaon of the obtigadcala pureuaht to this controal, does not violate any 14riirdas of hicorporwUnn, By Laws, Partnw:shlp Aoroerrwnt, or othof domme ni povwrilna the achvlly of olther Buyer or Soifer, i 3-4. OTHER TERMBAND CONDRTONS,Indudfilit ATTACHED SUPPLEMENTS: A, Q Duver Ineppatlon AAvlsary(C.A.7.Form 81A-11) i 6. ❑ Purchm e.AgreementAddendurn(CAR,Form PA.A-11 paragraph numbfta: ) ! C. ❑ Heller Financing Addondurn and Dlsdoauro(CAR.Fomi SFA•11) B. Q Intent To Exchange Supplement(OAFL Fomi ES-14) _ - F, jl A3-Is {.'QdiUrT.OH, Havrr boa mroa,Le o+d :r1Z laves tideta ana, sto,ti.a�. a rvrvs aCc and Aanwpt:A krra gEop tl in ,its p¢naa t;, " is oaArUt;lan, 2) V.Fr RE97/AIC7'IOA._ rtmvv dear ava.CO off ■ dead eea,lariction zrohihiLsnp gnu VLAa 1® via at the I i Tnb ratryrlmil taws of en Untied memos (raga 17 U'0. Ccd.) fnmld rM Bvyer and Srll,v soon Iptei a Dopy dr IN.page, uoauthor(bw raP'wlucdon of Vac fans,W say portion Iheroa(,by pbobovy Buysrc Inivais( 1( I ) inaoliln. v any o1wr moons, Incluaing buslmoo w m tpumrla.d rwmat.. Sba-ev Initial. 6LL". 1 r le409FIv,GN IrUW41A/1660GIh11UN OF nF?1TORSoI,MC R.viawod by rMWn'Nrr emu.n,al and r¢GDYRVa❑, animrd U.flpriab— Oa1M__�_ CPA-1 I (PA❑E T of 1(J) COMMLRVIAL PROPERTY PURCILAIMAGNEEMENl'(CPA.1d PAGE 7OI'1fi) '1'64361142,MPX ; I 11 ENT BY: LYLE COMMEFICIALI; 760 325 1080; FCD-7.02 2:50PM; PAGE e l� Propally Addtt99:21rg3..},Y,�'alRngaa�fblY�w.Dell .tm rl Dale:JI17.1t11h1-Y--T�-_.,jfJQ I ,YL.-.L144'S87.3.(.,,�71a AHRL>mtat+ls'. the I� = �3�»aler[k v_� i.,11 u^•a�t-i.on o$ kn •P;>�Mra�,iaame nfrr.rmnan, uri»o JS3f'n 66andmwd Sedan trial/Crarew�ra/aI Sinyln-Truant Zwarw--]J'eiL•_piny'1.dtnLr t'erz__ Lro.vuaar.{hn ta_ pyy'RrMR/191 �1o,in3r ar, 3111U3 at r ren 6a2 x'a to of $4r 00_O�iir aw.rr th t�i�.ie »rt, s1]r al »t]u ae rhi ch tm pa�rwble in ndvan4 fS20,UD0J at tho Lkwo or l.,aan .lu,.',u au tj ran. 4) .9WPI[dIA CADd7ZS812'ON: 11roYer shall br p,ed.d d grW1a19.ai oa ❑gcrr.l to if,P>i of au Nalrur yrlar, 93�UPP oflch n�.1,1 bo d dirrokly to HrWlar Sn7.lrs orit of Fuyri''r xwn tat nctyanca prAd I 4_�ul ]rrsr mrOWtlion ,lurd�thr balancr o.T rbiah:xhtil_7, JmI p i :'cola III Upon ctl a ,nz� Y ,r I I ' II I I - I 3�. NOTIGIi S:'l'I'nonayer nntl�l"p{vaR urrd0r rills Anreernanl,wdl npdra bhall by in wdVnp,and snail ne dvllvered prnpnalfy,by fadslmla,or tY Irwn, paswua prupnld. Notloo aholi lea dofiv d to the addroad tat Forte dells.no rsapNnt'a slQnature of acweptanco.Either party may change IIe nnbm addro5s try ptoNablu nobw.T,the nihnrpmrty. sg. DEFINITIONS:Av III In Ih Agreement: A. "APcoNtance"manna th time Iho olier or Moat wunW offeris amtplgd In W716n9 by the otlrnv party and arfnmunicuted In ac xdenca with Nit Aproamenl U the lum>,lbF tits Mal munlor offor, I 9. "AgremnvnC fCaana th�a lerrna and umdlpona of LWv Ganmergfnl Frapa�rty Purrhme Agreement it'd wary fnumor ohbr and addenda, G. "Oays"me9nv calenduFldayc,urdws o7lerwiea reQWratl try Law, G. "Days Aftol"swans nI spedped nllmrrer of calendar days aAnr tF,�pCcurrClnoe of fur gvorttl>f7a[Ifiad,nbt cound»p(ha slander dale IHI Wflldt ula opeaned event pCglllt,and■rMmq at 11:SOr�M do the Final day. k. "Glaaq Of OW ow-means Nw dale line grant deed la recmdad or other ovidenoll of Edo is 4anrfonad-IF sohrdulml close of eaerow falls on a SaluWay.Sunday Ix lop�l hofWay.file"inn dp6e of eoaarr dale snail be this next bevinoca day affor eta scheduled cl au or"cow data. F. "copy"mrldna Copy bylony mocha,InClWing phoWopy,NCR,1aol4mits and eiedmil1c, fi. "Law' means any Pawl taadp, otetula, ordlnenre, regulation, ruie or uedir, which la adopted by a conbofting dry, counly. alalo or Ndnmi lopld'duva,judiclal or aY cueva body oraggrwy. ' N. "Repairs"maims ony II elyd(ilGudlnn post oanbnl),altomoond,ropf"t-nunts,mo liflud"o and Irtrontling of dre Rmperly prnvplpd fur under hrin Apfaarnent, ' I. "Slgnedl moanv aftnorl handwrlheo or deolronlc algnaturu. J. lifppu{ar anti Plural ux Its aoeh 11-01da ale Cdnar,when applopda4l. K. '"C.A.PL Form"nrians , a apecffro)bim norefenced,or another comparable form agrood to by tha paNw- L. "ElecyrrnlG Copy"ar'� 1"Imnlu Signslurs"nnana,me applimblo,an d■cuonlc copy or slWul complying vAth Callfomla raw.buyer and SBllcf aplea tilel aluck to means WE nnl bar used by either one to Irvdlfy cr after Via , Aumt or Integrity of pre Aor""Af t without uto Knovdadpe and WrInantI of the Dolor. Tar coPyvll lawn of the Unbvd Sala& (DW lY U.S. Code) furNd fl» Buyd aM ydlar erl,n*0-�9A,� 7 -1pt of a ovy of,hlc Pape. ulmaa roo~rr unara mrndudd,of Mir p,a MAY fiun un loar,by photx py Ruysre InNo 1 X or nay oamr moon., Includ a Mralmll■ , compoloud farmaW. Sallow InAfnit( )(�/1`7 Capyaam 0 f sl15-200t,CALIFORMI!, CIATIDN OF REe,LTOg9uu,INC. RerI"ay ALL NGHi5 RF5ERVE0. &ewer ar tw D. Dare GPA•ti (PAOC 9 of da) OP MMERCIAI-PROPERTY PURCHASIF AGREEMENT(GP.M11 PAGE a OF 10) TM36042,ZFX . I bTd WcWE:S0 LooaG TT 'qad STh9G6b6b6 'O(1 XHJ E12001,0NH -I17F1 --'--- •'^••• � 14 U•,y fir UU; rcb-r-UL 4:E/rlVl; YHUt / :ENT BY: LYLE COMMUCIAP 760 125 iDBA; FER•7.02 2:50PM; PAGE 7 f'Ivpody AddMsl:Tg9 -11 �aaY.va,rll r. xm �Ior+l o OEM€nlrrFx>=Y �- T.4Q2— ». nglulcr: 1 A, POTENTIALLY COMPi I Nn SUIV11" AND]SELLERS: Buyer undiend Inds Urat Rrokor ropresen ding &yar may also te(aamontolhet patanear buyaha, wno any oonsldd ,Fluke¢tram on or urimatoly avgWnwi Intl Plotwrty.Solinr undrxeilandw that Buy►r may wnvld►r. nlwdn affant on or purclv-u h other prowNoal 31froiarto five Property.Buyer and Wait w1knowledpa and Consont ro Qrwkor(m'reprerrrnWtiun of such potcnenl buyinc and a$II"befma,dUrfoui nd anar Broker(ar eapnlhntat wl of 9uyej ono laollor. A. CUNFIRMATIONt'fIFD following a lianivy mfatorwrdps am hmmby canitnrlod forth;¢Varroacoon: Llwtlnp P.Bant _ _ (print inn Name)Is the agent of(aletdt one): n the Seiler oxduelvoly;I r ❑ both BlryarBM naRRr, 5elliria Agent aL (b>dnt�im1 llama)(il not mama as Itagna Agent la the o0oht of(chock core): ❑ ire Bayer uxduoiwty; Q the Seller elydusively;or IN hodh Birtgr and seller, Real Emile Broken are n pmrilw to the AgrolMlIf bohveen Buywrland Sailer. C, BROKltRAUE:Nalinor BV yet nor%I?er hem liaised the somcdo o!,tar for any other rawari owes mmpawbon to,a flconsud real setaw broker {tndhr{wual or rorporelfa),i nt finder, or other wilily, star than u1 spedbod In this Agreonvord, In oannactlon with any act redallnp be rho Property.inducting,but rl t Iimlled b, IngUldao,4lhoduatioria,cons0tationy,and negollatlptq boding to tifu Aweotnenl Buyer and Bailor each agree to Indamn{ ,daft ,and hold hannleou the other,the Broken)*"rlod horefn,and 01a1r rgentm,From and agAirw any oomw,erper*x or Ilablllly(or wmpbnsadon c almad tovonalatent v}dt the warranty and n/pm=nbtllone in this paragraph. 3e. JOINT Eacrtow waTRuc NS To ESCROW HOLDER: A. Tho rolloriing paraw;;ip h ,or apptteststo pontane thareof, of tail Aaresmant conslllute the)obit escrow bfebvctium of Biryor and$011pr Id Eaaow Haider,whldt toicrow Holder Ic to nos along with tiny nlriling counlar offers and addonda, alit!any mldmunal mulunl InaUtioun r IQ dove glo trarWAadon: 1,2 4,14,15E,19,22.za,28,25it,346,C,DSnd E,15,38,40,42A,and 43.The tame and condidona of the Agreement not eel(drlh in ms speGnld paragraphs are addidonal ntttiee far Iho infirrnallon of Psagv Holder,but about which Escrow Helder Flood not be conceited, Buyer end SO r Will reodva Eacrow f fwddat'e general pl%3yj%wF;dir"y from VAQ-Ow 1-:older and»ill oxioulo war provlelons upon Eaanw Holder";ruadesl,To tho extent the general prov(elona are;nnanmlxlont or dondfcl with this Agrwaman),Bro gorwial prmiaiorn will wntrol as to thn dufieu and ob4 tone of Eroaw Holder only. Buyer and:toter w111 ars-wtc additional Instro0mrib,dowro nis and foram mrrldad by Escrow Holdgrthat aro rt abdynodoaasfy In oamplete this bonaat:0wn B. A Copy or this givervienit shall be dollemed to fEMOw flwldar wlslfn 3 buatrhams days Sher Au»ptanoa lw 0 ___--_1.Eacrmv will bs duOM04 open erfun fTacrow Hallow has glided an srttnowlydgemarrt fit receipt of a Copy of this amapto t Aalvrm■rk, Buyer and Seller authorize Eaerow Hullos to nceapl and rely w Copiva and 61gnalums dwelled In into Pproenwnl, as aiglnalo, IV open eeorew and for ulhar purposos of neorow. The validity of hda Pgnemantas hetwaen Bi jet aid Seller b not affected by wnodror ail,,wtien Facrow Holder Blanc the AoreernenL C. Brakere are a phry 10 the ldfrrw forma Sole purpow at ODmpenaalRori pUmpfint 10 pnrmampha 40 end 42A.Buyer and Seller Irrtv00b1Y aesi{pr to Bfokom wrlpantatonl pecffled, ruspacdvbly, In paragmphe 40 IMd 42A and Inwowbly Irxouct Eaoow Holder to diabdree those funds to Broksm at Clow Of F4Qx Y.Campaleation Inetrumtiaris can be amended or rovokod only velth fire written eonwot or fwkera. ga. Buyor and flulbr sck"wtac' o and am,"Rut 0)6rokore do not ckr0dm what price Bayer vhotdd pay or tte(Ier should ocwpt;III)Brokon do nut uuarantaa the pe gnu or Repaint of others Who hive provirbd asrillcua or prpducto to Buyor or Soifer,and(ill)they will oeok blind, fax, Inruranco,lMo h d other dastrad psista0¢a tram approtprtala professionals. Luygr and Seller furttw acknowledoe and solve thot Broken; (1)dv Fast pun tee(he umd8ion of the Property;(II)shall not be reepwhalbla for dettlbta that ern not krK wn to Brdkrr(a); pfi) cannot loanlbfy Proparty hn tatsty (IRS;; (N)cannot verify inspoollon reports, aquas toptags or rOPI"0 itatlona of alhm; (A canna pmvids legal or taX advim! and (v) will not provide attar sdvlca�nr Information that exceeds the knowledge. aduaWon and OVOrlenaa required to obtaht a real es 'to license. 40. BROKER WMPENUATION FROM BUYER: Upon Goan Of Esuna , tpjyar aplem to pay campenaatoh for aarrloao as fdlowe: Broker- 41. TERMS AND CONPIT1ONS OII .OFFER:Tills is an offer to putchasu dha P(apatty on dio above WIM5 and condWQrrs.All patagrapire will spaDD3 for Ig1t ais Dy Buyer Said Sellor arl incorporated in thl;ABroemanl oniy if Initialed by all padie% It at k',SYt One but Mt colt patd0a)niga),a counter offer Is required unti agroelrlont la It ached, Unteso Aomplanop of agar is Signed try Salter, and a Copy of Q)e SIgned after is personally ri cstued by Buyer,or by_LY t ajazv.,� 0^g2+--'r g88 ,who le out nlwd to nae.efva II,by(data).9,2LQBL2Q.Q2 ,at-5�L4Q..Cl AM® PM. are offer short bs deenlod raw kad and Mal dapooe ohall be rsfuh7od.Smile(has the dgld to mntnua In offer the PmvofV for Bald slid to ateepf ear crier onurat any aims prinr h1 rnnwnlpson M rtoeoprence Fla above, Tip wpyliviR lawn of the tlnllnd 01 Ws Mile it US Cott) forbid an avyor and Uoller Achnawte)(1- CqrinkIA of a natty of alto PAM uneuwKrtuad nprWuctioo of Ho term or any ponlon IharwF,ay phvlowpy ok)afo Initela( ) q� ►' rnucraro fir any gwwr nmanr, indadii g hlnaluiso or oonpuherRea ter it, 501Lfe InlUnic( t Aayevel O A93-tiPul,CALIFORNIA, OCJAT10 4 OF RMg-TORSO.INC. f wv*m by —I oamm�r A111LGfi1'5 RGSaH4CO, oroker or DQ94 e—DAw --, CPA-11 (PAGE a of 10) Cd A MERCIAL PROPERTY PUHGHASE A©NE?EMENT(CPA-1'I PACE 0 OF 10) la+aaoax8x STd Wdb?:S0 zee? TT '9a1 £TV966b6176 : 'ON XUd 02139N3NH IA0H:1 o44 UZL U; FEB-7-02 4:27PM, PAGE R NT-.AY: OLE COMMERCIAL; Teo 325 10f19; FEB-7-02 2:51PH; PACE 8 nrnpr�rty AgrlrnrN:19A]•11 ny3m.Gu>.walk'iXM..3'.01u.�rSnQM-�,...... Buyol han read and sr:knowLxll7ee ftrili Of a Copy of VIN offer and atlreas to Via 8NVB wntrinatlon of agency reladarduriv, 0 11113 offer is aunpled and Buyer oub"llrnntiy deleNta,buyer rrtey be reeponelbla for ppylnCnt of Rrakers'wmpenaallon,7hla Agreement and any suriNsmillil, arlaundum ur modillcayon,indudingisyly Copy,may List$igned In tWO or mnra munlwrrwrie,All of whlda ftKmO eonatituto ono And Ilia w rrm writing. BUYER _-. ^t. .�,� dale .L.I /�f fIUYF':R _ _PAW BY _.T`. fly ^ Name Printed Dd.l 1br YzngerkLo■ V17, Arc Naml:Printed Title,1C•,k, 404yiatt. ,74'Iinagrour -!No AaaresS 1�Op ,�1r1aC41 9Ctwrk rep,.s�Skr. zqa Pddmss Telephon0 4P-4V 4] FaxWD-475--f196 EmYll_ Telephone rax Small NaUw Ayldr1.1Ind erenl 19otice Addleea.If dlffarent 42, BROKER COMPX119A'rioN FItOM BELLC)Rt A, Upon close Of Fsaiaw,Matter agreaa W pay corrlpensadon for sarvkee.an fallovrll: 3.0# of "4mj-,k.4j9e ,m Lyle Caarorxyslal ,Brpkaf,and .In v.._ ,tinker,and (If ohoukpd)D on adrninlednlrrQ4rcn7tpalbn fee of$_ - - ,r_ 10 Broker (or,If nat oomplafed,as par listing agroornent). B. (1)11 escTuw does not dose,eumpen➢aflon in pan➢miTh 42A Is payahle: (I) upon Seller's dalaull It comphil)an of sal■W prersnlad by default of Seller•, of Lill when and If eollcr wli damages from Buyer,by suit v olh"Illo,If compledon of stela Is preventod by default Of Buyer and then In an amount equal to one-hot[of gist dannaaoo r000vani but not to mrvad the above compansatlon. after drat deduoung Ott and r aw o quiWJ :a and Ilia oxpc .rl of w1lachan,If any.(Y)in any eeUon,prodoading or arbllnllon I➢Iadna to the payment or ownpalxvaOul in praagmpu 42A or 1),fine lnvyaUk87 party shall ua ar,eged to manoriabro ollornoy It=and ooetn.axoepl as pfovided In paragraph 21A. ,Q. ACc1111PTANGX OF t]ffRrR:5aJlerwPnrxnW that Wo,Is the owaarof din,lOmperly,or has the>uthdlllyto execute this Agteament.Boller 000apla the ahaw attar,agrees to sell the I'lopody on iha obese WSW and condil anu,an]agrees to the above umfirin ion of w➢ency relaaanahips.Sonar hss retail and arknnwlad0es rarAlpt of a Copy of this AgrucinistIl,and autharlmu Bnakcr io tloK er a Signed Copy to Buyer. Q (11 chiocloid)WoJECTTO ATTACH110 COONTER 61111ER,CIAT&U _,__ -- -__ 9ELLFJi$rl@ �' 1 _Oats 2- .i 11' — SEI.LEB rft_ p-rrat _cIgNi 0 BY Name Pdnled hra.tl R. ammiobesal� Nania Pdrded ipaml A An*uhREy T140 j yi rt,Xe Tide XjUZAee Addiam 29 ,Day DZIMNI :Addntae ajq far Dripf!. raotnu BrAch, .CA -426.54 , _ d rra 4i iie�oh ra' 9�3 Telephone ➢e9-199-6. 4Y9 _PyS9e9-4A9-6�4;0 Emall Telephone 49 e 9 d/13 FaX P49-4➢9-117411 Email• Nolioa Addraoc,I�rf(gronl— NvaoanddrwAr d nt Apancd mWuonahips am confirmed as atury l Real Est de Brokers at.not psrtlsf to the Affroemant nrtwean ouyerand Seller. Agent who sulimlitad Offer for Buyer aldmowdedtfes hNoApt of deposit,If any,Ir,spaclllsd 0 paragaph 2A Real Esmw Broker(5+lling Firm Name) Lyle comeaalal By ooW_.,_ - ego qle Address 121 6, Palm CVn ♦R16,_Pa.Jl11 4tPzin49 ,_ PnOntilllavEmall 760-778-6300/ 760^4'2T5-10119 Real Eelele Broker(Llsling Flrm Name) •„ , BY --Dalai Addrm .!. PhollelFaxlEmall I�nHla oT ) ACKNOWLEf]GMENT Of- RECEIPT; Buyer or auptodmd 20111, a tnoynedpee reuelpt of signed AuvOlAance an (dew) , ,at _ _ L'] AM D I'M. Escrc,w Hold+rALknewladgmentr Esuaw Holder acknowledges recelpl Of d Copy of this Agreement,(If check 11 a deposit in the amount of$ counter offer numbam and _ and aglowto act as Euaow I1oldnr sutJact4r par spreph 38 of this Agroennont,any eupplemantal escrow InstrllcBonS and the term)I of E6crvw Holder's general proVISIcins. The date of cornniunlcrttlon of Acceptance of file Agroarnerit ati belweun Buyer and Seller Is Escmw I folder ..______,._.._ ----PacrowBy �.--- Date Ad(lnv&q PTw1.eFaxlE•mall —.— Eacfuw Hokfer is Ilconsed by the California Defladmant of L7 Gorptimitins, ❑insurance, p Real Estate,Llcenae lHl9 YORM HAS Bf;eN APPRUVT;FJ OY TNC'CAUFORNIA ASSOCIATION OF FMA6'rOR'I6(c AR,).NO REPRESENTATION TO MADE AG TO THE LEGAL VA.IOny On Al)EOIIACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTID4. A REAL l:stiXE OROKER Is THE PERSON QUALIFIED 'to AOVIaII. Oil REAL FSTAIE rn7W aACn0l18,IP YOU OESIRI L60AL OR TAIL ADVICE,coa8 1L7 AN APFKOP'➢AT1'FRQr E35lQNAI. TN tpn da l N AVeble Nr ear by 1tr u,"ml aciere IrviWYy.It IV rwy lmm�aea b bendly [w arar m a REALTOW.REACTOR®it Y reatatarad mIlw:Uva,Irornbelanlp nwrx .tech nmy ba uwd only tq o,MhWW ja1 the NATIONAL AS80CIATION OF RFALTOp•`Ie Wi o euueodba b Ile roost al aedce. UFIE!,codalWred aY sty KEAL ESTa OUSINEe9 sEFMCEa,INC enrh,Wwar L6m CAL1A0RNIAAS50CIAr1ON0FRfz&T0RSv omwara.oaslenna -----D416 a76 Souk Vlrptl Awquu,Los Mpelaa CAaromW edam umi (PACE 10 OF 10) T6a3W42.ZFX CCIMMERCIAI.PROPERTY PURCHASCI At)NCCMENT(CPA-11 PAGH 1p OF 10) Td Wd6S:S0 EOOE TT -9aA £Tb966b6V6 'ON XEid OJ D- ➢ DHIJ -11-3N : 140yd :NT 9`/: LYI.E 1roMMERC7AL' hLU-r-i 4:2rPm; VAUL U , 760 325 101i181 FE8-7.02 2:51PM; ' PARE d AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIALICOMMERCIIAL SINGLE-TENANT LEASE -- NET (DO NOT USE7HIS FORM FOR IMULYI•TIFNANT BUILDINGS) 1, iartic Provhlrnhc('Bralu Prml■lons"). 1,1 P!trth"; This L"tia f1me"),dafvd for aderance purpoew truly, FobrUar.�y ,2uo�,is rrgdf bysndba(Y68f Ncil R, and .Carol, 71. Anenbcrq Family 7,ru,c dotodrl- for Avquat 27, 1984 andllel _Mat PxoPesties Vil, L1,C T - (ccllectivYlvino'Parttar,,`orindlvMu;tllye"Parry"J_ —" -- (�Loasre'1, 1.2 PremiaeM: That ordain real Propeay,Indudlno all Improvemnnlu thorfln Or to be providad byLuaanr under the {Gram of fillo taex,unit commonly known an 2901 N, Palm Can on_Drive, L'alm Svrings looabad in the Cuunly or, liivarside _.Higlu of Cullf orni Y .and lueltually deauibed ae (dauurtbe briuny die nuhrrs of Ulu ple"try and,It applieubl►,oho"I'ro)ool",If the prgreny W luoalud within a Pivj*ull a aingl a _ tenant curranrr.clal rp opaT. nnnslrlann of ahr�hlrnace 2, 500 Sq_ fr, located on sliclttcly less Chan one arr0 �- ------------ ._ _„("Promlres"J• (Sae also Pafupapit 21 I..$ Tom,: _1 _ yuufr writ .__5 — muallah ("Ovlpinnl To"'I mmmvocIng p'ebruary 15�02 ("Curnmonu,montOnto")and ending„ "___ Februtary 20, 2003 ( EapllatlanRete'�) '), (See also Paragraph 1.4 Early Pofaaaalon; _ r.__.._ N/A ("Errty Pollination Date"). (Sea also Parugruptla 4.2 and 3,3) -'-- 1.5 'Ba*v Rant: $4 000.00 par month("Base Real'),paynnle Cn IN) l.Sth day of tech murdh mmmendng _. Fe,6rua,r.Y 15, 2002 (b`ea also Paragraph 4) ❑ If this box is checked.Mom one provmona In tlda Lease for the Beta Rent to be EduStyd. 1.0 haw front Paid Upon F"curion,S_ _ 24 f 000.00 its Base Rant for ilia Period ,. -. .,,. 2/lb/02 - 0/14/02 1.7 Security Orpoait:$ Wai'ved ("S4CUTIty DOPoelt"). (Sue also Paragraph 5) 1.8 use 1- -- --.._.......__.�_ (&ao oleo Paragraph 6) muting Parry: Lessor In the"Invuring Parry"unless orhanldse amind hamin. (Sits also Paragraph A) 1.10 [teal Eamto 17rpkas5t(9+r atw Paragraph 15) lot Hopran e"Voin: 'Tim fnth:wintl real r dale leaka!5 loollnctivoly, the "Dlokara-) and hinkeragu mlallanofdpa udrt In Vila itim"011u1, (�hucN aypliwhle uuxuu): iapltatuta Lunar exdlixivoly("LriworeBrakar7: rpproaania Lessee vioduslvoly("Lrerer's Broker");or �' ___,_._ Ly7.'a Camwerc:Lal ropmaentaboui Lrfaerand Lpns**(^Dual Agenay"). (b) Psymrnt to ❑rgkrrc: Lfnnn exewton and ddlvorY of Urie Leave by bah Patios, Laaum nha4 wy to Ihu Broker the lag agreed to In their"potato wdhen µyraumaril(or If Mara N no such agreement,the sum a'S Ja Aar %of the LOWI Barra Runt for erg brokoiagu aenAcex rendurud by said Broker), 1.11 Guarantor.Tin obilgatoos of the Loewe under[tile Leosa ale to be guaranteed by N/A 1.12 Addenda said Exhibits. Allach id hereln is en Addandrm or Addenda conalsling of Paragraphs 50 Ihmugh 54 and Exh)blls all o(whidh conettale a pad of thin Lon". 2. Premises. 2,1 Letting, I.oarw hereby Ivarep to Lsaeoe,end Leases hemb;r lea<aea from Lessor,the Premises,for the term,at thv nerrtal,raid upon oil of are terns,eownants and condlaona set lath In this Lester. Unlew othnryMg prov dad herein,any&tabimerltOf elz set forth In this Levee,or that cloy have bean used In uelculoling nortW,in no appradma Don which the Pardep uUnw iu roaermnble and Die rental bored thereon Is not sub)eot to ravidon wh ilher or not rho-actual slzo Is more or lees. 2.2 CondiGoh, Lemur shall deliver the Prpmison to Ueoril brt'm daun and hex of debris On ale Conliffmcemeitt pate or the Early Poasa,slun Data,wlllstimr heel uocure("8tart Otte"),and, w long as the mqulrnl savlca Wntrads daecrfbed In Paragraph 7.1N)betvw are drtllnad by Lessee within thirty IN) Jaye fnllaw'Inp the Start Dole, warranla that live a 511I)g elechlrnl, plumbing, fire sprinkler, bghtng, [rooting, vepoladng Snd ale urMidaning sysferrei (`ffVAC"), loadvtp doors,If any,end all other ouch olemunts In the Praml000,oilier than tuwa conslruclad by LesBae,sh M]ha In wood opaiatinii condition an aald data and that the atructurd edmnerall of the roof,boating wullp and touodaton Of tiny buldlrigs an the Prenitaar(Um"Buildidg") aholl be fine of melorisl defects. if a rronl anplklaw with card warranty mina me or the Start Otto, Lusear shall, as Lessor's sole obligodon with respect to ouch fn4hir,except of otherwiaa provided In this a vi a t,pmmpuy after r Ipi:of.1vinn nodoe from Looays selling forth Wth rpaef laity the n0iuru and ealunL or sudh non- arnpllan,:a, neatly same at Leaaor'e oxpenss. If,after the 9ttanI Daly,Lglwog duua not gave Lessor written notes Of any noncanpganm Ydih 611e warranty teithln:p)one your as to the awlauv,of Mf roof and the atnicbu it parlors of tie roal,foundaturhs and bearing walls.(11)six(d)monihs as to the rIVAC s)%anr i,oil)uiiny(30)days as to the ronsntilng ayatame and other eldniobta of are Sutdlno,mnaollon or such nun-cnrnptafuw shall be Die obligation of Lessee at Lo"ve'a solo east and expe iso. 2.3 Clnapllanoa. Leesur warrante that dig Irnprovgmvtita on th!,Pr 11`01 ea comply with all applicable laws,oovananla or r[ratnctbne of tern d, building ar den, rowuhtioW and rvdlnancas ("APPllaablo WaquirertwhI In offna On, Iho Start Oat*. Said warranty done not apply la tie use to whlul t.evieo will put Diu Promisos or to any Alteralanv or Utility Inelnflatlona(as ilafint:d In Paragraph 7,9(a))merle of to be mar')®by Lesson. WE:Laawa is rvyponsibie for dolmrnlNng wheirier or pot the toning Is approprlab for Livia[a Intendad use,and acknuMcdae5 that past uses of Ilia pmutiaes may no laiear lw alivvsu. If Ina Plamlaos do not comply wit,acid wemnty.Lessor!;hall except as atwnWse provkled,prompiy attar rocelpl a(vnWsn natca rten LoaatC sating fart)with spedthity tie nature and extent of such non-eomplinn,a, rncufy the soma at La"ites "we". it Vasa" dads not gNo Lmeon wriuen notce or a nanrmmpllance with this warranty vrthln six(6)months ral:rwnn)the Stan Date,corrseton of Unit rwmurmpllanw shall be the obtlgaton of Lessoo at Lcasad'a bolo )wet end expense. It the Applioabla Rpqukemanlc ails hinaftly dlanped(as opposed to being In ealslanca at the Start Data,w11110 is audraasad in Paragraph 6.2(s)bis*so ar to require dudng,lna leml 07 Oros lease nor cgnalmrnon of an addldon to or on ellW;lIW of Vie Building, No I ainlidiaton of airy hiau1111)tu awba(nnca, Or Bee roinfalnement of other Ph)hslca modilfa711011 of the MIJIMing ("CwPltal P.xpondBut'r"), Lossor.And Losvav aha11 aaocata ma cost of such Work ax falloWC (a) sub)fcr to Paragraph 2.3(c)below, II oudr Capital Expe!,dhs roa am raqulmd an n rswlt of Me epedno and unlaud Use o`f/if CosFrlernisses Page,1 0'11 Inhiala J_' (At rn+ovr_Am.+'i.�,,,Indueulol RWl Estale A69 latlon WIND PORN BT1,14-1r976 Td Wd(O:SO EOOE TT 'TDA FT09661761t,6 : 'Ord XUJ 140N-d r l•I J.." ucv V' rru-r -vc n:Cor'IVI' ENT BY; LYlE C0MMrflCTA(,; 760 325 10139; roue luI eu by I.tssee as r-nmpurud with Unas by lunettes In guearol, Ledsoo shall be fully rorpapalbla for pm cart Iharoof, provided, however that if such c2fival t_xBondltum Is nquitud during the lust two(2)yarn of d'la Lease And Vie WUL IhtrQc'f.'soda eat(6)«wnme'112" , y rprssapa temrwon Rant,Luosoo ma Invleod rem,lnaw(])is Una"Lesornetllrs Lauded, W notlw that Lessor has elmclao to Fey me dlrforanca between Die 2lclu9l cast thwaaf and the anlorinl equal to nix(6)momms' Blaao flint, If Lou*"e(ochr thm-Inaton.Lasses"I imrlondlnfely caasa the Res or ma PranJla4 vMlvh rowirsu such Clrpl4-H 6xpsndlfuty q1d dsUvrr w Lessor carillon ❑aum opadfyinp■Wmdnaton date at least nlcwq(nfn days Uuhneannr. Such Armloallon data shall,bowavon In no event ba earlier tan IhO last day(hilt Lawoe ckwld legally wanes Us pnmllN without varnerr,ndrrg Ruch WrAtal Expondlhhre. (b) If such Capital "ndiWre 1s net Via nmull of dw epudty said unique use of ma Premla*o by Laemee (such as, gwor tinily nhnndaled seismic modin©tims), then Laranl and Lessee shall albcoto the obliaaton to pay for tort,uorb pursue nt to 1}ra Fula I&lahs of Peragr2cpll 71(cY. proMed, hrW wnr, that If such Capftal Expendlbnm Is raqulnd during the lash Iwo years of mis Leosi or If LosRor reasonably detemnlnsu Oral It Is not omnomically reaalLlo w paying sheer Ibertol,Lessor shall linvs Iho option to la ardnaw ads l.oaso upon ninety(90)days prior miaon Iota.to Favors uniaoe Unnee notifies Leasrth,In wrlUrvd,wlmin Ian(10)days affair recalpl of Lem We lmminsUon nollm Viet Lmcee will pay for such CaplDa LxponWhire.It Lersm doss na clear w terminate,end fails to tender Us share of any such Captal Eylponrllhum, Lessw may advance audl fund*and deduct some,with latsrset, teem Ran[until Losbor'6 share of such wets have been fully paid. If Leusoa In uumbla to finance Lesbos sham,ar II Uho balilnoo of the Relit due and payable For Hie hornaindm of this Loofa Is not sufiolent to filly rslmb4rou Leamae on all off at"via, Loaf QIWII heivo the rVit to torirmnaf!Vila lnase upon thrifty (301 days wdher noboo to Imager. (a)Norwhrmtandint the above.Die provision concerning Capitol EtpendIturaa are Inl.ndad to apply only to non-voluhlary,unexpaotsd,and new Applicable Roqulromen4. ff Ina Capital Rxpandilureu era Instead trtggorud by l-asses as a result of an actual or prnporW ehengo In use,ohangs In intetstly of use,or Inddlllcadon to the profiles than,and In that event,Lasses•atoll bo fully nsponeible fur the coal furpr af,and lasses shall not have any dghl to terminate IN,Laaao. 7,d ACknVwkdgsmrrrk. Laaaao acknovledgaa that: (a)It her,been advlusd by Lfaaor and/or Broken to satisfy Itself with rugpact to His condllivn of the Prom(smr(indudino Mat not Finned to cos aleciAal,FNAC and'IW rpdn4w sy¢haro,sincerity,envlronmamill UPPects,mid compliance Win) Applicable Raqulrumanls),and molr sultahgUly,for Lceiasdn Inwndad use;(b)Laao Iws made Ruch IHvastgaDon at R 4a0+ns racessory war mhrsnce to suer nraftn'and auumes all reuponsloHaly lherofor w the sane raWtu to it, :,cuuosnoy of the Pmxnlssa;and (a)Will Lessor,Lessons wiwnts,nor eery Dmkar halt made any oral or,wihwn rapnswhwlfons or warrant!—with faspuA to said rrhaten other man as set fodh fur elk Lamm. In addition, Li aw dalme.rledmem then:(a)broker fibs made no repmP nwtbnR,prominos or warwit oa[oncoming Inggeo'a ability In how the Leeso or sulleblllty,To oacupy Ira Prnmieov:and(1,)11 Is Ls rs NWo raepoesimilpr IQ Inveslfbalu the Mendel aPalabll ty archer sullAlAry of Bit propuged tenants. 2A 1 aassu AN Prlor Owrar/Oasupent, Tn►waoant]"made by Lus;or In Paragraph 2 shall be of no force or uftacl It Invrtediaurly prior lu to SIxt Dale laosea was Ina ownar or occupant of the Premloas In such avant, Leuacma tires be itelpornsiNe for any noceaaary cormcmve work. a. Tomb. 5.1 Term, T110 Conmtanoemant Date,Esptrailon Data and Original Toren of Wa Leiria are as apedhed In Pa Ussrph 13. 3.2 Early Poassastnn. If Laasae totally or pe,aully ooaupiu,the Prenysea prior to tea Commencement Data,the ublloadon to pay Balsa Rani shall ba abroad to Ira padot of such Billy fx,aveasion. At othor tunna of mlw'Lease(Includino,but not emllea lu,the 016000WIS b)pay Real Pmparty Taxes and Incinanos ru"vor s and to frf rim Pnmb ea)shall, howvvur, be in elfed during moh Bedad. Any sud) early possession shad not attest trim 6,pinouon Data- 3,3 Dulay In rawsoaslom LaRuar ogress W One its beet commnro)a1t,roasgnabto offorta to dollver posasaelon of tee Prardrum to Lessee by the Cohrnloneamont Data, It,driaplbs said aftwilm, WwOt is unable to 6611vnr poasassiun as mgrr=ad,Lessor shell not be sulojeel In eery IiabUlly therefor,nor shall such failure a(feo( doe validity of cols Lease, I-sa6oe shelf not haweveir, be obligated fu pay Rant or par(arm Ira Piths,obligations final H nyxlvm pussasa:Lon at oho pnmisox. It posausdlo0 Is rat delivered within Nxty(60)days after the,Commencement Date, L.oauee may, at its updar, by node,, In writing witiln ten(to)days after the and of aucir sixty(60)day pedod,cancel'cols Leave,In whkh oven(Iho Porfiss chat be dlsdiarged From all oMigatona hwhwneur, If eudl written notrx 16 nor oe nlved by Legaor within sold Ian (I O)day padnd,Lr,6 r ,s tight to cancel ahedl termhlafe Eitoopt As oeWrdse pmvideU,It possession W flat tendered to Lesuua by she Shutt Data and Larrseeldaes not terminate Lhis Lasso,Pic aforssaW,any Foaled of nail whabrment marl I,C3ae.Y would omerwlaa have enloyad Strait tun film ale Oils of dellsery of powee3len and continuo Lure period"URI to luiint Lassno would oglerwlse,have enloysd under ma urns hereof, out minus tiny days of delay came)by tie acts or omisslorra of Lessee. If possswion of the PraBllsre Is not dsrlvwnd wlmin four(4) months offer the Comminaeuwril Date, this Lease shall Lerndneln unless olhor aomanenta are reached between LosSOf and L.esaee. In m tillu. 3.4 Lotsee Compftsmo. Lmeeor shall nut Ire required to Warr possesalan or Diu Pramisss to Laetse until Lesson winpilan with Its ohtigaaon IQ provldu Avicenna of ingurunco(Pamgreph If Pending doltwry of such ovidance,Loaoee shell her required o perform all of its Motions under tlus LAnee non, end after Ilse Start Rate, Inoluding tiro payment of Rant, nohvllhsbmding Leesorh elmsllop to wlihhdd posaaealon pondln0 raealpt of such evIc anon of Inauranca, Further, IF Letwao is rrtquinxl to perform any other oondtlo is pow to or caicunent vnlh Ind 6lart Data,she Start Date shall owcur ton I Cason they elect In wldlhold pose*aelon Until such Conditions are satisfied, a. Plant. 'I.1, Rent Mired, NI monalwy obllpafons of Loswe to Lnusur under the lwrru of mio Lome(except for file Searhy Dopoelt)arc desmod to w not("nenr). 47 payment. Lessee shall twigs payment of Rent to Us mcelvud hi Lessor in Iawlul money,of fro United 6tatea, wilhoul offset of deduction (except as epadfloagy permitted In Ills Lease),on or before Iho day on which a Is dua. Rent for any period during Die blim firi wheal to for kiss man me (1)full nlan)ar monUi shall b¢prorated based upwl the acUlal number of dayu of said month, Peymont of Rom sham hi heads to Lessor al Its adt reRr Rrated Innoln a w such other puismhs or phim as Lisa may from it"to una dAal;nato In wdtno. Accnptance or a payment istildh Is lean Hirai me mnarml man rive Stnll not be A weivaf of Leenal'e nohla to fie hall nw of n11d1 Rent IBgin t.ess of Lemor'a endorsement of any Bhoolk no slating. 6. Lini-wity Do"It. L-osaas shall daflosllvdDt Lesson upon exeo1111on hereof the Sif VAPOR],as aswhity to lxaaus'a talUNul Performance of Ire ohIlgBUora under Hilo Lease. If Lessee falls a pay Rohl or otherwise Defaults under this Leasd, Les"may use,apply or retain at or any porton of said 9uaudty L7npoail far the payment of any amount due Lusaar or to reimburse yr atmpsnsala Lessor for any I ahlUty,expense,lase or dAnisqu which Low muy suffer or incur by reasan menxaf. If Lessor uses or applies all or any(Igrdon of said Ssmrily Deposit, Leasae 11W wIth1n ben(iu)days arse wtltan request tiomtor doposll mfunt;l;Win Wssor sufficient to Lesions Bald Sogurity Dopceil to the hell amount required by Ihls Leine, If tita Bass Rant Incrta " during ma fermi of this Lease. Lassen shall,upon wduan raqued Irmh Leeson,deposit admflora)nnnre9 vAth Lessor so teal Hie total amount of Die Security Dopowl shall at air Umoa boar life sail*proporllon to the inoreaasd(lase Rant at;:ha InlUel Security Depoah hom to cos Initial Base Rent. 6bould Ifs Aprand Uay bo amanded to Bocgnnodale a material dhanga in the business of Lasaeee or to accrmmodals a subleseea our asslgnoA,Leona shall have Ira IVA to watmo the Securhy Doposil to ale extant rn leivry,in Lessors roosonebll;Judgmeni,to occounl for any Incro36ed"at and tear that Die Pnmises may suh.r sa o mall thwoof, If a c ar g s In control of Leomee occurs during this Le isi+and fotkrcr'uhp eUrh chops the financial condition of Le,oee Is,In L9eeor'e raunonaula Judunen(,slpnlnu-mlly nducad,I.saera shall deposit such addll"null nronihs with Lasew ae ahnll ho sufftient Io veuse urn Securlry Ulslwsll to Lro el s ern imerdally ronsonablo level based on'laid change In Prianolal wndiUon. L,assar shall not tea required to keop the SoNdly Deposit soparalo from Ike ganoml acl:*unls. wlmih fourfaan (14)days after the expiration of lamdnaunn at tits Loire,if Lmliw elects ke apply me S ictinty Deposit ally to unpaid Rant, and omensliur within thirty(30)days dtr Ilse Promises have bean vocaed pursuant for Paragraph 7 4(o)below,Lmli6or shall tourer that portion of the Security Ihlpoell not used or apptud by Leaser. No part of He Security Depnaf;Jhall Ire considered In be held In Lunn,to bear interest ar to be prepArymont for any monies to be pail by I,.oasus under Ilse Leaso. r.. U.B. 6.1 Use. Lessee almll use and Occupy the Premlaes only for,rile&,reed U6o,of any other legal use Which Is reasonably cornpnmbie Iht clo. and for no umor pmtsosu. Lsosoe shall nil Has Or pu nil the use of gig Premise,Ili a manna tat W unlawful,potato daniaoe,waste or a nuwence,or that dlnlud,s ownwr7 And/or occupants of.ar onuses damage to ns(ghboring pmpelene Latsor shall not unmgsonablY wlmhold or delay Ito Aonsenl to any Willen cegvwl nor u rnodlHaaliwt of Ihu Agreed Liar, so Jury as the *erne will n;a '"pair the struawral integrity of the irtlprmamonls m the Remises or "'a mochenloht o Alrmlried eyelemes ttigiein, le nut alg141101 y more buRIC1150 s Iq the Pramieea, It Lessor alech tv wllhhold consent,Lessor shad wghln hwa (5)uualhasa nays after such request gees vnlli in naflVaelon of sarw,whlch nena,.(hXl Include an explanation of Luria`s obJacuom to mo change In use. 6.2 Reaaraara SUI] anaea, (a)Rupvrwuhs Us"Rugvirs,Gursent. Thu Wen'Rasannvu, avaal n. 'wo unad in this LaaaS shell mean any product,subsellm.or wnslu alivau preuvnw, use, nimunhd❑te, dl,posal, rranepvitapon, In hetaere. clue,by u*olr or In wmbb,Seon with other nlatellala amused Iyeh be/on the ,y1' Paull 2 a'11 hauls Aft senior IN uns"eTId Ar Im7r I'd WdEO:S0 E00e TT 'qad £'T h966b6b6 'Oil ?ALJJ D219Rh19NU _lI7hl WIJNd :N7 BY: LYLr, COMMERCIAL-; 760 325 10fi10; FF0.7.02 2:52Pld; PAGE 11 )2B Praminoe, Is either: (1) potunVally In)urlotw 10 Ole public nealln, Barely or victilille. the snvhontneut Of Um Pmmlooe, ill) nVUIOIlsd or fWlft❑rod by any 7overnmenbnl auhorhy,or pd)a bssis for pnfanilal Ilablfily of L assof to any goNOmU onfal agency or dtlyd patty under 40y appnwt> abatutb OK W11(rirn law Uloory. Iiumenov Suhglungso chat) Indudo. WI not na Itrnlhud W. hydr000,gono, petroleum, gasoline, auditor crude oil or any {noducts,uy plyducu or d-acriug6 tharoU. Lvin eu shell Pal engage In any activity in or an Ilia Plurrespu whlah oanrtllules a R.oportable Use of HnmNtwal Bubmlancen Yaltun t the dswess piles writhir,a spent of LOW leltd nrnaly rmmnlianw(at l-oseea'9 oxptnae)with all APPIk>8ble Requln3nlanl%- "14parial Umv-aria,medo(I)taw lrima;wlon or eta of any above or below Ostend elor❑Da Yank. (Ii) nw uene,pegn poeuuaslon, stosapd, we, tranapurtatlun, cw'dlapowal of u rfazaedwo SuDetnntw Innt taqulreol a panml horn.w wtUl rags sot be whid,a nipart,ne4W, rophirallon w huatneu plan Is regdUod ar he aleD NAU,, any ga✓erinartntal atia,Orlry,adror(lit)Uta preadnco al the PrtunlrYa or a tiizalNuul Sabi l9nu,114Ih,.spec!W whicil eery Applesable RygWmfnonia requirem her a nodrn be plvdn to caucus rnterlog or occupying btu Pro,misas cr nNphllaihip piv)aurace. INandVialandln0 the tcnequnp,Leeax my u»any ordir y and Welefnfuy n,atellals raexswibly r4g1ured to be used In liee nwirwl comen of the Adraed Urn,u,Tong as sud,usv Io In vompnanoo with WI AppVoallk:Reglarelvainti,N not a Reportable We,and does riot expasy file Promlnes or neighboring pmporrr In,ny meaningful rlak of owberligag9n or damage or expose LBDaor i4 any ttyb1iny Ihafofor. In nddltkin,Lssaor may oentllgpn As consent to arty R*9Qdribla We upon rav dving auch oddlffonal o"uperim a4 Leoiiw rasaanably deama tom mtty to prouid jS n,Uw public,the Pramla rz and/or the fnrlrpnmeal agm,bt d srriage,4Gnlaminatlon.In)ury and/or Ilget47y,induding,but not Umlled to, Ulu ou;ta law laud nWTOvel on or the 6ecunty WpoilIC (b)�4fly to Iriforrrl Lessor, if Lsaeaa kllowg,M haz raasnnahle o+'UJq M eprimY,3,Li10.{D HazardW a SnhaMhei hoc apm0 W oa located r, on.unida r ar about the Pmrnlscs,olhar Venn as pmviaualy cat ecmed to by Laulvor,:.aasaa Ahae immed4rioly area:arum notice of auch wet to Laoeor,and govida Lasser still a oipy of any roilvil,nolic e,claim or ohrr doeumantelbn vefikh It has conoaminD ha presoneo of such Nrtaardaus Siabotariea. (c)f-azalea Romediallon. Lewes shall not MOST,or peonlT any ij,"j jO43 subabogie to be spelled a refused in,on,under,or about Ulu Promise3 (Indualing Ihaa,ph ha pfWrhlnV or aanlhiry Newer syatmml and shalt limn nl)y,at Laaaee's evalluo, take all Ima6Vgatery and/or nm4dlol action .uautnwUfy mrwanucendod, whether w flat foonully Wdcrad W requited,for the daanup of any cmtaminadW of.Ind for Via maintanvia, ""wily avidlar n onhanng of Ula pfemill" or natphbodnd pmperuna,that Was!%tamed or momdall) contributed to by Leasie,or periaina,dl W or Involving nny Tiearrdoua Sd,sbance brought onto the Pleniiees dWlna ale tarn of thirl_ease,by offer Lava",or any hind party. (d)I s sou IndePlraaaetlan- Lessee stlall indemridy, darnnd aria had Lessor,Ile agentn, arnployese,Fendara and gnaond aueor,V wry, vann14s4 (rein and agatnsl any and all loss of ranks W-uVor datiri ,nabllldaa,ludgroa hht ,rtnunc,axtaln9ei,,ponnvies,arid albmnayN'yid rnnaulWnl±foul poising con of to ilivutvkU)oily Hazardous 6ubotanee teoupld note the Prrnnhieu by or for Lessee,of any third peaty(rimvldsxl,however,that I asno,shall nave no IWbillry under min t naM with respect tat undar'y'oUnd nilgretlon of any Wtuarilota SubrraaCm under the Premises final udlill prap ritieu). Lirssea'a obil0ulhais shah toovdo,bill not be billed to.Ure uNOCIS of alry centarnineUon W In)uy to prison,property❑r he envlrw,msnt Ixaaletf of Huff RsId by Lessee, and 010 Quit of I11v4yuaJon, li anavol, runiedlstlon, reatoratitin an)Dr abetaltlen: and shall ovwlvm the akplfedor or hrm,inauon of tide Lease. No INnfihwllun,uno,lloOlin or"INMA■saresnwnl miltererd Into by Lm4atx and ll.Tivien stlall relearns Lover"Mom Its oadtaanona under Vila Lima with Is rpect to I loaiuilous 8utwwfxsr,unions apaalflpully so agrasd by Lessor In ircillnu at ins time M such agresinsu+L (0)Laeoor Indrmhlaraflpn, Lessor and!is euowaoors and pssitdnu shall Indwmilfy.defend, reimburaa and held Ubaag.lls eaop"%% and load«w, haoMeso from and adalnxt any end oil cnvira inunluf d"itne, Ilia ding the cost of remeUledon, which existed as a result Of Ilaxardoue 906tenoea on the Prhmlaaa prior to Live Start Oslo or which%to WUesd by the pgviW nedlllimcu or wIIINI mlcconducl of Lawor, Its au4nlo ar nmproyees- Lvrwofa uWlgallwla, Ill and when ii quIrad by Ilia Applicable Raquirorrax M, shill tndude, but not he limited lo, the cool Of Invaellua9an, removal, roloolutlon.reatumVon endlor ai,atemont,and shall survive the akpfraflor,or Ia unlra dal of this[ages, (I) Irivnef ipillonw and Romodiallons. Lesser shall retain the rasnonslhillN Arid pay for any fnwatlgotio(e or MM1141s4or maa6Llrati required by governo onol erlUdee having)mladidlorl wUh respect to Uw ex)alenne of Hauldous Suhbhtncos on ilia Pfefnlem prior to the Start Data,unless guilt nenediadon fraasura It vaqutrad as a react!of Leacee$use orejudlog-AlteraUona',go defined In PenloAlPh 7.3(0) below)of the Pullo1W,In Wild, ovum Lessee anal)be feapansibl0 for auch paymanL Lassos shall Woperata e,my i,nny such acVvUies nt Ins rowaat of leaser,Inducing allawing Leeaor and Loa6orw vpanio to have rdaaw,aDla oconsu W the pram)aoa at lirWeonable Urines n ofUef to airy out Lea40y4 imn;i Bativa and hria dial rosponalnlllfka. (0) Lca for unillnt"On Optlon, If a Hazardous SuMtanoa, Cwldiflon omira during the (arm Of pea Lell unless Lessee Is logotly rusponsibig Iharsfor Ila which r-,asm Loewe shall make ha InvasGgation and remo dimon thereof required by the App)Ieallle fiequlrefylenro and Vila Lease shall oal0nue ill full foln.Bind oftud,but mbjbd to Leosels dahls under Parggrmph 0.2(d)and Paredrtph 13),Watt lacy,at Leasol'a option,aithur(I)Investigate and romodlata such tlazardain Sutelialla Coadl6on, If tngitirod, aI Boon ax raawonably paanibla At Lesaol's "pa"a. In wigdt event Vila Lci m slmlf rondnuo In Fall foe,and effect, or(0)If the eslinall el slat to ramediaie Such coMilJon exeeoda LOW,(12)Unlee the Own monthly bN50 Ronl or S 100-000, wnlchuver In gfo:vlor, give wriion nodal to Lotauu, withln thirty (an) days allay receipt by Lessor or krimtedpe of ilia occurrailm of Nadi ligoadWw Subshnlm CaltdRion,of I.uunur,desire to pollinate IN.Llwao as of ilia date silty(60)calm IoUowin t ho dote of 4Ueh notice, fit(he seat Loaaa'muds to pka a imndnutlon nova,tiessee may,WhAn Sun(10)days ifrefe irior,give wdna n notice to Lwooll of Lessee's conmrement to pay Out amount by wild)ilia ursl of the rcmudiodan or bind, 1-buurddUa Subalivow Condttim exceedil an allWpnt equal to IyNvp (12)Umap Ilia Ulpn Monthly BA68 R00t C4 $100,000, ivMdiovoe to genial, Loan"shall provide I.aeaor with said funds or eatiutachlry ataurarim Iherecf wiVirci thirdly(3U}days MILYWing such wranllmnnl in stall avenl,Vila I,aaoa%hall randlwe ill full fordo and affect,and Lamor ollall tnoxed to make auch MM6aLion as Watt as reesalebly poaolblo after the required fund; are uvmiloble, If Lessee doe;riot Alva such Pella And proyldO Ilia ragWrad funds or assurunco uhbrwf within the lime provided, ally L42M shall tunnlnals on of Via data specified In Lasaor m office of turmino0an. a,3 Luuetev Complieneo with ApfilllAbts RegelremOnta. E',c4pl Am OthsnaisR provided In Ihl4 1-44s?, f.eeava shall, at Lessee's $olo Mitionre, duly, dillgen Uy and In a unimly rnennar, malodedy minty v,inl oil Nppll,nble Royulramenln, the toqulmmelto of any mpplloabln the Itmurvice undanvtnu or mling horrwu,and the rdoommendatlons of Lossw'n onolnoen and)or conounarta which roraly in any muiner M the P,crninlxs,without ro0wd In whatltur snld raqulrorrwnts arm row In effect or b4Carna VITOCOw after VIP S;IrT Data. Leasan 2h30.trAthln ton(10)days after leWIPt of Le$Wii written faquaNL plovldd tam ol-win, copies of an permits Arid other dacumanla, and o6ar Infannaflon evidencing Lessee'a oomplienw will' any Applicable Raqulremente epeotf(erl by Lessor.and shall Iml'Mdlittely upon rmoalpi,notify Ltlrroi In WfianO(with Wplei of any docurriente Mro(ved)of Any(hreU(ADOO 0r @dual halm, relics, dlallan,wpfMntl, COMPlakil or tap❑d pertaalndng ITT of inm;lvinB Vio fsilurs of Llksaea or the Promises to catµUy will) any Applicable Requirements. 0.4 Inspscnon; Compllanoo. Leeror and LKW'o'Londe(us,mftned In paragraldp 30 hafow)and Wrlsullants shall hav4110 right to enter ilia Pramtxna at any finis.In that Lmsa of an aniraapency, and otherwise al madCfnunle Vince,for lh0 purpose of Ulepecting the condition of Vie Premises Blvd fur vadtyllio carnpnancu by Lss400 with Ihls Lmage, Trw owl of any such Inape%liti;shall be,paid by Ltisaof,unlaaG a wloladon of Ajppltoabta Rdqulrwmw,lr.. a a mntendnado l is fotuld to axial of bo Imminbiill,of the hlapeotleo is roquill o-otdcrod by a govwinni alai auhodty. In each uasa,Lsnrrae shall upon o,cjucsl harmhursc Leexdr fill'the cost of such.lnupections,ae long ga guen Inepecllor•is reasonabty rolatefl m Ilia Wolali0rl a ooniDmlfiaUnn. 7- MAIntananco;Repairs. u011ty Inetolladotn;Trade Plxtuma and Albfnllons, 7.1 Lask"'s 011001110M. fat In Oxniti-al. 6ubldct !o the pmvislons of PAmplgph 22 (Galdillon), 23 (CompllpnQu), 8.5 (Lbsaeul: Gompilanrr With APPsMITIN Raqulrprn0nla},7.2 iLAesol'e Ob4Daho O,9 parnABB or Deslivailn),and id(I3008hvl011011), L4asam shall,at Laasede ode expcnsa, poop the Prernleai , viably Imimlladona,and Altbaaone in rend nnlaL 2alldiUOn and repair(whoUier ar ae,l ilia poltan of the Premiss requhifig repairs,or ilia mash:of phiaking Ilia same,era reasonably or readily accaaalble to Lessee,Jiro whbtilm or nil Cis need for aud'repaira oecufs ee a fasnv of Larlav"'a use,any Pdor use,the elements fir Ulu ana o m f such porduo of the pulbow). Including bud not gnVlmd to, all squlponont or radlliva, such Bit plumping. Iwatlnp, vsnUladna, alrvcondlUnnlnp,a)acmlcal,fiphllop fooli0e'a,b❑llan,pressure v"mrs,(re leolautlon eyntem,Vxtufm,waUu(interior and mloflar),fwlndallonn,Militia,,Iwru, lloora.'MnAnws.Stools,PIMU!,ulbas,akytiphul,tandirspinu, Wilrvvnrya,Parking lids, 'lams,rotaadng waits,signs,aldsvralka and parkways located 41,al,or adjacent to 410 Prembee. L4a6ee, in k4sping Via prsmisos in BOW chief,ccndili>n and Impuir, shell dxerclse and perform good f iatifwnance prilaw, a PMclfically including the pluunclmtnt and maintananoe or Ute surtllOa donpn„:is icqulred by parlpmph 1.1(b)haloW, L"x0es oldigabona shall hvJuda reeloadons, replacsmanla ai renewals when nprsaaary to kaap Ilia Promises and gal Improv4mante Ihoreon or a PaR thereof In goal oidei, condiion osi sills of repair, Lnsvvo anon?, during its tern of thl0 LaaSd, keep The oxiefOr oppliwonw of the Bullding in it nraltcw3s Imldl6on pm;IstrultvdUr Ulu exlodor appearance of 0aaler i dmttar faaliti� of oOmpmrahle hoe and sire to Ulu vicinity,blclmling,Mien vragcnaary.me Balsam rapainbnp brihB B1IM111g. Oil 8mrvics Cfntrschh. Lessee shalt,at Lessee's ado axpetim,t MC UM and mabilain mneaas,Will sonar 10 Lessor,in oilotbnlary lam and aubatanco Ito,and Whn Wrilractota speGallzing cold 4kparl@AuW In me rmllnm WOO Of Rib 101lawm9 oqulpnlenl and Impfovenatate,It any,if and when hlebalfexl rut ilia PrrxPlawa: (i)IIVAG aquiprtwn4 till ocelot,and pleasure irmrsa)h,ill,,Ike exitnpulahing aydldrtla,hlduding the nlann undlar onmkm dsmdlran, ((v)tmlldsWph+g and inigeelon nyalerna, tv)loci cov{Mng arld drelnn, top ddvor,eyn and pwkfng(on,.(vlb dsdnam MR)bmmtc udllly town to 010 parameter of Page 30 1 1 - enau a>•,��mre annn� •-.•.L+...,...,.,�I,I�I Oe�I F�,Jn arm^-Iwnnn eI\n1Ie1, Sd WdhD:SO Z020 TT 'qaJ �Ib966b6h6 'ON XHJ J213HI,13HU -113N : WONJ I-ROPI : Ht=t L fO'19-IBERC, Fnx Ho. : 9494996413 Feb. 11 2002 05:05PP1 P4 SENT 8Y: MANUT DNPLOPMENT; 714 544 N 00; FED-7-np 4:30PM; PACE 12120 ;INT OY: IYIG C0WR(,U1 760 325 Inge; FEB-7-02 2t53PM; PAUL 12/20 Uw Dulldng,gild OX)any uthar aqulpglvnI,If reasonably mubvd by Lool or. of RojeAcomonl.Sublacl to LASllWo dndsmnificaGon of Lessor Ad sell forth in f uroUraph 6.7 b%low,and vrllheul lollavtnp Leas ell of Iha Wary me"UWAIj from Lena Cc rallree to exrYdx• end puiranp good rAllntenan04 Presence',If Ilse Dmic Elements desutlbed In Paraprliph 7.1(h)mnner be repel red other I an gt a filet whlol,to In excaoa of 50%of the oast of ropluciog auoll aasic IElununlu,men Audi a0910 ClsrnBills shall be mFAama ey Lam Dr.and the coal thereof a flat I ba proramd between the Pet gee end Loess"%hall only be aboga ad IA pay, sad,mofUI barbs% the rnfpalrtdev of toe tam,or M Lea"u,at Ole dalA on which Uaae ftent Ix d,w,.a,amount equal to Uho yroduat of MUMPiyino mo';mI Or SUe11 replamim+m by a trau m,the nuniertkX or wtllct ol on a, and Ile ddnornlno.tof of WN011 is VW numb4r of mootha at ale urrful Ole of such raalacumenl an nueh uaeful Idle la speditad pursuant 6 F4dar41 if,"Aa tax (0011134om or auiddma.^, fur d4pr4datlon thdoeot (inct4fig Whowl on VIA unan a ftad bulanee as Ic then ourn",daty masaneDic in the Judgment of L.Caeal'e acZoUtdanlu),MNh Leauea rewervinry ills rightto 1%npay lie obtmatlon at an!-Ikon, 7-2 Lw..Qek 061113a110m. sub}od to lulu puwlolom of Paragraph, s.�l (Condltpn),23 (compflonce), g (Dbnsaga w Notructon) and 41 (Condwrijum), it In Intended by the Part"berate Vial Lasaor have no obllaaliay In %ny manner wmb3 orar,to kapalr and mainhAn the Promiaco. or the ", ulpment D,omin, all of whidl abllgotione are Intended In be Unit of Via Lotwo. II N,the IhtenUan of the Parfae that the larma of Vila Lie=oovem Uw raspadivo obUgaUons at the Pallas ac to malnranence and repair of Iho,Promisol,an they axpresaly wuivo the b.msfit of any Btaluka now nr hereafter in allied to the(o ient it is inOh'»l*Urnt rvlth the toning of this Laasn. 7.3 Utility tnatal)"ont;Trade Flictmes,11.11"(loni% tie)VetinWons; Corr.•ht Required. The lonn "UUkty IrwldledbMf"mfom to all door and window cavodn(la, air lime, po'rar panels, eladnc71 dlsldhuUon, rauidly and fire protedla, syelenw, ounimdmlloallo n sysleri-.s. IIIJnIng faille, HVAO rxp,lpmanl, plumbino, and funuinU In at on rh, Premteas. 7ho term`Yrade Flatumv-shall moan L•...e'a nhadilnery and egWpmcnYlViat cur be romwad without domes material damayo to the PtemWoa. I he farm-Alfurartoru'ebalt mean any modifiralion of Oro Improvarmrds,othar Ib an t.liliny inomllapoda eI Tr.4m Flxtura4, whgUwr by addlUcA of doofioA. •'Leg"W Ownaa Anan%nprra antller Uilllly lutallsklona"am doannd ee Alteratlf as hmdfor VUllty thslelleuonc"do by Lasn"tint are riot yet owned by Lewnr purnuan,la Perngmph 7.4(.). I—e s % ail,rot makes any NUIndtana el, L rutty lnctallatons in the Promisee vAlhoot L.noaor'a prior wrUbm" consent. t uonaa Amy, howovar, make non bookual Ulslty Inafndatlww W the WOW at it,,-Pilifo Abs(sr uudlnlf the rool)wlUWOI Bach consent but upon nosh In Lessor, ee lend as They we nut vlobla hunt the NjWila,do not InvoWe f%ma(udnp, relneatirra or runovirld Via roof or any mrlodnp walla, and the can UAaVvo ctml theranf during Ihls I ease as axtonded does riot nxc&td MI)QU to Uta agaragalu a'810,M)to any orm yvar- (h)Consnm- Mly Nlrmhtoos or Utility Inatrltalione that Loeaco t hull idusire to make and which raqulr4 the consent of the Lessor alw11 be ploumbid to Lessor In wdlWn loml wllh dbhluuu fuarw. Congant ,hlol be d44mud =raldWonod Upnn Lessee's: (If acquiring all aµpol bt• govarrvmn4l pnrrnve,(II)nanlsldng Leeaor with copies of 40to the pe,mlts and the plans and spin idctidonm prior to commentament of Via urork,and(III)wmplla-w with all mataduna'uf said permits and other Appliaibla rtagov.roontg In a prompt and mlpnd&ro&manner. Any AJt-milonn or()Nifty loelldlationd nhad be flOTIV hlad Ili a wmkmanllka manmar wddh good arid 4Ufddant material%. L"lod,shad proropdy upon compLaeon h,mtah Leosar with ell-built plmm and apod6,aUonx.For uttk Witch o L4 an a Mean,nqudf he lho aroabrr of one niahtnb Dame Fient,or$11).Wi;l Lunar may condition(Ili c lnsont upon Lamm provkltW a tan and cothpla Uon bald In an amourd agtoi to one aid are-half Uro%s the os%ated ocm, of Much Afteraton or LJHRIV Insla6atfon widlor upon LligalleS DaOAU An addOlurial Somrity,Usprwll Win Leeaar. (c)uklamntficaDan. Lmsee ahall pay. when dup, all o)mlms fa labor or melerlals fumishad or alleged to have bean fumiahOd to or for Lfresae at'or for use on the pr%frdgos,whip,clalme are or unry be lfeduid by a,•y rpnehanles or rnalerialman'A Ilea g4ol(W the Pramises or any Interest dhereu,, Lswda shall give Leaaof riot lwa v,gn ton(10)dmya'noOce prior to the a mmilnuemant of any work In,an cr aaout the PnnUm.and La d or shall how t,A fight Id Debi nolloau M non-IveponONVY. it L4a"09 shad contest the rolldl(y of any sUch Oqp. Balm or dammIlod, thee,Lassie" shelf, "t Its sale ewlanaa dcrond oral protect Ilsen, I-Agaar and Iha Pr%nties apairwt Vie gains grit!rdmil pay and Witty any stud,Olfurse II COlnerlf slat may,be rendsNd thereon beforo fYta enforcement lnaroof. If 1401W shag require,Lessee shall(urnla) a Ilumty pond In an ammunt Klink m ono end om>h"If Ulnas the amourd of sud)colneatad Han.dalm or dmnand.Indemnilylha Leeeor against liablllty,for the serve. It-awes elects to ploftipaln In any sell,oullom Lassa"alfell pay Legal s avanillya'feob and coo to, 7.4 ow,.mhlp;Inummml;6rmaadar;add Rsal"retion. is) 0Wrtar's)ilp, 6ub(ock to Lesaor'4 f(Ahl to raA,lre, removal or I;dod oumarohip as harvltw Wr Pravldad, all Alleintlons and UUIIIY iustalisdalts made by I.eeaoo shall lies the property of Lase",but-r odsrad g part at the Pramless. LAuur may,al arty tote,oleot In WOna to big IN armor of mil or any spodaed park of the Lessee'Owood Alteration. and Ufllity Inetallnanne. IJnleds otherwise bheUuded pUr,l'amorepil 7.4(b)harshf, all Lossue Ownnld Alieradons and Nutty InsoRiflons WhaU,at lho axplrallon or terminalNm at bile I.Vaea,boumw Uw emparty of Leaner end be 5urrand4red by Loscaa ,vllh II14 PieAtpaa- (D)Iiamoval. By actively to Laaaee of wdllen notix from Lassa not m6ler than olnoty(go)and not later than dirty,(30)days Prior w the and of low!l000 of Ut"LYaao,1 o5,0,may mgidru dint Orly,Or all I(ragas Owned Albhr%tluns of UUllty I1,31AH OT's bn rantuved by Iha e%pirnt 91 iY aemarW test of this Laois. I rsuur nmy roqubu me refrlaval At Orly dale of all or any part of any tssaeve(XM5d AJtefatlons ot-00111y Ia IVIetonn rhado without the requifod consent ' (ci 8umandetlReatoraUan. Leaaee shell vunendar the Prem{sts b)7 the Fxplradon Uat'a or any Miller urminagon data,Will a0 of the ImprovornfinW, panes Afld edrfacas'Iheraof broom CIO%,tut free of d4hrts,and In good 0p4r2gnp older, condillon and ataW of repair.ordinary VNar and tsar excepted. "Ordinary yeses,grid teat"shell Ant induda any damage of datedIXallon mat would have bed Q Ohm by good ordto gnu dlof Uufl InotallaL�le�n�s, shall reed, any dambSln caalstonlfc by U»InstaUa6on,m4lnt4rwncv nr romoval or 7vadg Flxturoc, �' lVinlshinp., and %gkApmant as wail as Ula rernnvul of any%tmmga lank Irwbdlad by or(Irr I.waoe,and the fernuval, replaPemank a rernedladorl of any aril, mated,[or 9rovnowetcr contuminalad by Loaadic Trade I'Mehos gholl romaln Iha pupArty Or Loam mid shall W removed by Lea"40. The rallure by Lrraeo W Urrwly vacate the Promtam puretuail hi Uric Paragraph 7A(c)Mthoul kill exprm wdnan coneenl of Laaaor shall b M,dj u6'a Iwldovnf under tilt provl"Iorm.d Paraoloph 26 b4lea" a. 6urence;Indemnity. For lnauranm. Leee%a shall pay Wall Insul-dnca rdcillr%gl tghdar Paragraph 8 exDapl to Ute extent of era cost atq(htlahle to 6.1 Payment F (leblifly,rouranc" r rrikd by Lasser Undw Parimpraph 8.2(b)In 1161 eR of 52,000,U)D por eecananca, Proallurn%hN policy podod"oolllmendn4 poet'a5 0 axtanding beyond the Leese form shall be Prpfabed to cane"pond to the Lease fi-ov, Payment shall be made by Leaaoa to Lases%wtgUn Ion (1n)days followlno reoglpl Otani Imvlao, B,2 Liability InisurNmv, Ad (al C.rrlod by Lassen. Leases shall obfdln and keep In forte a Cagnrrwfdal L3anlxai Liablilry policy of tnaurah w prolnd Inp tab rice of L4aaw aoainat Wpllne for badly injury.personal tdury and property damage baea)upon or ArInIRO atl Of the avmerahip, till,Dreupanry the Prealsw and all areas appullanant plarHlO. 6uch huwrahce shall he on On 0CAIR illm meta pravwtlp stop(%Ilmll overage in An amount not love than 12,000,000 poi..WAencu with an"Additional(nWWO'd-ManlaarU'N Lassos of Pranll-,as Ettdgts4moy"%end1131 Wnain 2m IntIdnrNit ei ex ualo"PON(dio s C.xclu4ion�EnJaaumunl'till danraoa caused by heal!amaica or fulraw fiom a f 0""file. Tthn Pdlcy shall not mntsdn arty Ir1Va-1neUred exdusltxu/ ill botwaan Insured Psrsana or r,ovolzaUada.but ahedl lnoludo eoverep tar Unhility 40Whed ursior tiles Lahore m an'Insul»e se,wrli Wicr for 11it parapailode of pr Lnsaou'% indofnntly ohlalallalx under mrs Lame The Ilm" of Wald Inuuranoa eight not, ho"a"r, lain the "ability aT Lcsaee trot rnlievn i.nas"e of any Obllaruk,n hereunder, All insumnea t:1TIFA by Leaaea Blrgt be pilmary in grid red ehntduftor ty vAm any z4odar Insu"mca sir w try Lases,whoaa)neuranoa shell be CO'nsldoned nxccsa,irwuranaa Only. and nor In llou ill,]lie(b) carriad by Lomf, L%s%of shall rtalatsln fiabplty IntUtdtC% an I:ascr U In Paragraph therein e N,2(a),in addldM,to, Inruranre rrsµdred lu be AwItalrtad by la4sae. t.nsaee"half nal.be Await as An addiautnl fmrain. g.3 Prooerty Insurance-9Ulld(ntb hinprovamonts and PA MaI Woo. (a)Boilding and Impfwameflty, The inaurlrlp Party shall ubtain anti keep to turtle a po icy or pogdee In U a name al Leaser,1'Af(1 lour payable lu Luaior,Any gmundlreaor,and to any L4Ader(")Irwudn0 lobe or demean to ides promtI4e The ilny any of audh u, but III stl M bn equal to iris full m,plao+Men, coal of the Prenvsos. ea dle "ante shell exist front Unie In Ume, a' mu arnounl required by any Ltndals, but in no oven! rrrorq man Ole mr. owned coAvr,.,vn+ly , 111Y In saeonebla and evallabiu ip,,(rablammble ineuredf yes�taa,alder Pa ugmila B.4wramer man by La or , ly oovna errdpmk11 oyar pt leuond Trade r-iKr m,.and Loasun'n personal props 1y commerdally appmpdete.auah paficy of 1,010 5 mtartl Instira 61Jatnnt ail naffs of dinrtt rihyalcay�Aa�n ufrom pities of i7ra and me enlntwmarii of an u damotlUon. unlaces neltA,,j by a Leader),tndUftrl muarvga Tor alibl"'ron"a"fa llon remit trucAian a r%plocetnenl of Any portion of till Ptenhlu"as th•r"o"of a an,gnnl toga. said Polley or pollcrm•atoll elm ccnnln an pal'"y'in yrJunyn Drovwlon in lieu or any minsufanv" agues. mh rr of submiallnn.and fnaatinn VVahi Nomcdon r�uglnp an Irlubaso in Ion of prVP"rl�.4—.--- .,n Papa a or 11 ....,.,,,. I �,L.n,�d.._,.i+l Y...r K.++b•eH...r,ml..n aalllQ CIh C./hrYV 6Y W A In". + FROM : NEIL A1,01BERG FFlX 1,0. 9,194996413 Feb. 11 2002 05:06P[l P5 SENT NY: 6UNNE'fT DEVELOPMENT; 714 544 02100; FEN-7-02 4;30PM; PAGE I3/20 IFNT BY: LYLE COMMERCIAL; 768 1125 tOttO'. FE6-7-02 2154PM; PAGE 13120 ¢rvsrnge amount Oy a factor at PC[lees than Ilia udimbid U.S,Department of Lab<i Cineuracr Price Indus far Ill Urhpn Consorrwv fof Isle city rearast to whore u,u Prandooa era I.Iod. If Duch Inxuranw covarupv hax a deductible din w, the deduautic amounl siren not nxcaoo$i,ouo per ors xroncm, and Lessee shell bu Ilablu for aueh deductible Amount In ale Avant of an Irosurad Low, 0)Rental value. The Inauriau Party shall obtsln end keep In ta('a a folksy or policlea b)liar name tv Leads worn lone payatile to urivor end may Landar, 6,etirinu Ulu loop of the NO Rent for one(1)year. Sold lnaurena uhnll peovlda that In the event the Lease is temJnarerl by reeson of an Inaurod s s i, One prided of Ittdmnndy for retch covarxae ahall be eKlendod buYand tia dials of Div tarrgriodvn of repabs or replecxxlaail of the Premises, to provide for one fill year'm lose of Rant from Ube dale of arty curb lobs• Said Insurohoo shall imam on agreed valt fion pf"31on In Use of any ocineunmnca dause,And Inn mrioum of covarage What bo adJWbrd wnuaty to miltcl rho po)s C1ec,,Rent abor Mao payable by Laaaoo, roe the nest halve(12)rnoolh Period. LrrB¢ea shall 6s llabl.for any deducdhlo amount In Ilia avant of auCi losa, (o)Ad)acanl Nnemaaa. If DID,Pr.mlxes are part of a larsW bmtNt ra,,,,r of a group of bulid inns owned by Lessor which Ass gd)arxud to a,o PremiDe3, tic [-"&YD shall pay foe tiny lnorouuu In the pmmtump (or the property Autumnov of cud, uulruing or bulWlnps It "Id Increase le caused by Lamas cob,omisslana,tear or occupancy of dui Plemlees. t.d Lsssoa'a Pfvpwbll0uelnaax Intetruptob Inli vanm (A)Proparky Damaga. Leszez shall obtain and malntaln Insurance uovarage an all of Lus.:o personal property, Trade Fixtures, and Lcssae CTMIOd Alterations and Ullli(y InstAIlAUwur. Such Inriiranr shall be full roplarpmunl cost eov.rage with o deductible of not to exuf ld bf,ODo psi mciamnte. 'nu,prouaw.Iran any suoh Insurance ahall be Used by lnspam for the rupleatrhent of personal PmPorty, Tmdo Ftxhusa and L.ceeuo Owned Allsrandno and Utility InslullaVons. Lapaau&bop pmvlda Lb6aer WhIl veitrcn Avldonre Ural such Ingurmnou Is in folva, (h)Rosiness Irdurruptlan. t.aeuu shell abmin mod malntuln icn.v dI inconhe and colic axpanan mauranou In omom b;as wall mimbune Lessee fir duties or indirect lost of•amin &alalbulablo to all perils commonly insae.d npaluxr by prudonl leaeaw In Ow bUalnsaa of L.aax.e a atbibulabta to pu,venbun of Dmoaa to Ole f'mrrdNoe as a faAUR efsal"Pallas. (c)No ReprtxNhtatlan of Adoqualer Coverage. Lasser aiskoe no repmaantaliwr that the Ilmlta or forms of Covempe of Irwurance spadfl•d thurahl-Jim a&aIuath to arvw Lduaco's plupa*.bualnasa oh•raOons or❑blloallons .uutalr this Lease, 8.6 Inrurunvo Polloloa. InNUMITli Idquhred herein shall be by compsiva<t duly Uponcad or admitted to Irensactbutlhaaa In thn otota Amara to Pnsrnisac ale ballad, and mutritalnlng during Ilia policy term a"General P(Acyhf.ldenl l3aUng•of at leapt O+, V, ai set forth In the moat corrool bents AT 'nast'a liwaanm Guide",or such OD)w rafrng AN may ha rogUlraf by a Lender. LUWhea shall not ao ar parodt to be dew gnyttling Whltlh InmNdetas the required Insurance polldme. Le&Doe Abell,poor m the$Lad arim deliver to Loaxoe arUlfed tophms of paid"of Ruda Insurenoe or cdOUIcates evidencing ills uxiclunce mad amotalu of tha naqulm l InebmlluA- NO such podrry ghee be oaacelabirt,or eub)ecl to modtfiicvslion etcapt attar thlty (so) days Drtof wiluan nolint!o Ldas'rx 1-6mos shall,at least Inldy fait)days pile to tlo Oxphtlucn of such pcUdaa,bgnlrh Lgaaa•W th avldancu o(ronavmis or'traumnrn bindArx" avltldneing renewal Uisrect,or Lebeor may order Ouch Inuuranoft and choral the east dhnr.of to L nueae,which ehrounb abut)be ptiyabirr by L.mseo W Lauer uhxm demand Suct,fkaldis shall be tar a[elm of at leas)W16 year,w ule IenpOl u1 tub Inmaininti term of Oils liana,wnldhaysr In lama. If arbor potty ehaU fall%procuta end flaintAln the ineurence regUI Ad m he nomad bV It the ottlef Party m;ly,bUl rlhall not be rbqufred to,piloarre and maintain the Name. 8.6 Walter of Subrogation. Without aUectnp any other right&of rcn(ndidds.Lemm find Lessor eadh hereby release And relleve(he ouan.and ,.-oleo shear enure riuht to romver dAmagt's apafnet the odhw,foe lost of err dornapa lD lln proparty ArlatnU out of ar Inddpnl to sae pMr11x rogtllred Iv bo Y)turPd apalmt herein. The enact of such falOasea and w,9varo is not 6mitad by the umoum of:usurance eanled w required.of by any Oehbxcablen Appllazblo hereto. The Palaga gnreo in haven Uhe)f faspadhni prppeity daniege tneuranpa rardera yrahv av dplht to cubroffatoo Ihgt cud,cornpahfon tray flave aualnst Lase,+ or Leseaa,as Ole ruse rimy ba.so Ionp ue mo Insurenoe to riot luvalidotld thoraby. 8.7 Indemnity, Except for Leaaul"s gross negU11"aw or willful rnlewnduel Lessee eliall Indomnlry, protect, defend and hold hgmllean Ulu PromisAs,LUsaor and its aganis.Lplmor'S f/raererOr pmund lessor,pah'Ilhare end t.ar doe,from and ggainal Any and all Claims,lass of rents andloi darnali". liens, )udgfnonls, penalties, aOorneya' and consuUsnts'files. Axpenses undror habflldaa arlaing out of, in(olying, Of In connection with, Iha Maa and/of occupancy of Ilia Prornixae by Lessee, 11 Any nodal or proceeding is brought agalnsl;1-6mor by roaaon of airy of Ulu faegoin0 mgttele,Lessee ehelt upon notice defend the mama at Leeee'e axganee by counsel reasonably ealsfeolory b)Lotuor And Loaoce shall axpgm(o With Lassos In euLh defrinxa. Lessor auuw net have Nrat pold any Ouch claim In order to ba dule(tdad a'InrlAil}nutmd. DID Exwopbun of Lessor f)vin Liability- I aanerahull oot be lbblu for Injury V dmmna to Ole person or goods.Wame,nharchandlve of emir prupurly of LaaYoa,lJau•ai u uniphayoua,.114N94ed6,in-Am&e.Wsb)"mt,or any otner parson It,or about Ofe Ptomlaoe,vtllbules eudl danfage of ayury Is causad by ff results from firs,ab}fidrh, m)aWidly,Vila,water w rain,or them the bremkapu,(oakago,obstruction or olfwr deface Of plpos,lbp gpdnkivra,}Nrea, ;epplWnuas,plumfnj p%HVAL-nr nghtng fth Tres,or hem VY 0tr4r cause•uhiathor ilvi s,sid Ir)Ory or damage re iulU from ctAd(tiana arinlnp upon the Promises or upon other ponlons of Ole OuIWIry of which the Prundaom are u pad,or from olhar nourtau w plavac. Lower shall not ha PAbla foe any denuagol IUWIIO Irvin any gel or mruect of Ally utter tenant of Lessor.HawAt holanding Lasaol'ta nnilllgnncw or breach of Ujis Lease,Losnor shall under no drovillmlanoea be liable for Injury to Lome s's bustnAsa or for ally loea of irunrno or Profit therefrom. U- pamldaorpawtactlan. U-1 oellnllfww. (o) "Promise+ PortFst nano gu"ab.11 mean d2oW6 or desmtcOc,t W U,a Improvements w the Promises, olher than LAsw6 owned Allaretong and Uullry Insfellationa,whldi can roemonubly bo rePalred In pill(8)mOntha a fens from the date Of film damage or divaiocuon, Lessor alall notify I-misa In willing vdUnn thirty(30)dayu from rho dam of ft denclou at daslru:8nn Am to mheOler Or not Illb damage isPaitlel or Total. (b) "PromlpHt Total Devtrim(lon- shalt maul damaUn or deetruouon to Ulu prvmises, other lien Lease UWramd Adtareuons And UJUly Inslullubona and"fmdA FNLures,,whloh cannot roaeont"y hs rapalrod in DIY(6)monlhn or IAAa Troll,too date of Din darilu'a)u or dextrucatln. Leworahall unify Lail InwdIlng within thirty(30)days five the dale of aid dnmege a dwlnlrWon as bs MQUiaer wnot tlo damaga Lp Pallet or Tvbal. ' (c)"Inaurod Loon"shall mean damarla or destruction to Imeraverronls on Ole Prnnll�",otflor then Lewes Owned Altamt)ons And Willy InslallafissnD and Trade Fitter",whloh weu caused by an event Isolated to bs covatud by the tnsurance desa(bed in PeravAph 8.3(a),Irreeperltve of Reny dedueuhlo omounty her oavarege limits 14VOMd, (0)"Rppla,borront Cost"ehuu mean Ito 0MI to fepalr of tenu)Id[ha Impfovomenta tlwrad egAo by Lr at toe Into of Iho nccMrnnc*10 ttantr condlllon exie6ng Immali WIY prior Uherola,Incdudidg demolition,dAbris removal and updra WV dlng requlrtd by the Operation of Applicable Requir11hi, end w101oul deduction for deprtciallon, (sJ"Numrdmw the Aubidenca Condldon"ahaV Friar,tie oceunehoo I:,r dlscov lug ory of a conOWerl 1111tU prasen,O of Ma cell, 3f'Inm UUn 6y,a I Inwnlmfu SulroWnw as dofinbd In PalagraPl 8,$(A),In,nil,or undarO a Proln4laa. 0,2 partial Damhge -Injured",tv- If A Pramis¢t Partial Oamesm trial)a en lneurt'd Was ocu", Olen Leanor eholl, at LeAsur'A expense. . repair ouch damnon(but not [r No ,m I'mori Fixturea or Lossea Owned Ansort0rs And Udllty Inatullations)as soar all fegwnatiV vWUite arm 116 Lease stet O,nUoua In full force and uffucq provided,however,Ulat l.eaoua shall,at l,osnDr'ereleatlon,make the repair of any darruW ordeAbmateO Ulm lotal cost to repah of which le Lio,obe or loos, And.In aoch ovont.Lsgaor shall make Any applititble insuren4a pfOtae L%evotahkr to LexNae on a reason lrAe M1111 for Brut panroasi. NVtwilthstrrldbtg tie 1w CgaIPQ,if t1rA riaeq(fmd 4lpurnnf)a WW net In fartlp of(htl fngltAllGe precalld&are not sufficient TO affect ag tile repair, ,e lnpudllg Pony phult prouq)uy contribute Ibe ah,.,dlape In proved, (Axrapt As In the dtdoctiYon ofhlich supra e a r of the limpl') lz 1gr Is wren ein rirequired euired to -1110tw raid fupabu. In Ilia uvobL h"llj r,much aharllepa Was due 18 Use lad rlutl,by 4 cost Inuuranw vowmgo Wae not corli"fy ply nnaannAhis and avallmhle,LrsAor shall have no oUligauun to Any for Iho Ana logo In Ineumrhre piooeods or w fully reuhlrxe Uln unfquA Aeper.-Lv of Ufa Prem)sea unless Lessee pmYldbm L"srlf ud(h Itne(unlde to cover gamA,or sdwafia assurJntw lhmraluh wiU11n pen till) en dayo lollovrinp rocatpt of WrlUar notice of sutJl shortage and requost IhgotV. I`• bafiew maives sold hrnds',or adegilele aamumna Ihutovf o battn Dail m (f o)duy proi0q,Ole party ramponxibla tar nurkinO tho reprlra shall oomplele them W mpat As reasonably posslbte end thle Leeaa shot cw'nain lh lull taco anti curies. II ouch funds or aaspranAA ate rat rocelvad,LUAW may ravonbela a.acl fly wdOen notlot to LAssaa wlUlln Wn(10)days Inarearlaf to: 0)make aecb reatrxuch fwUlin and rnr an am b cifam o ally rtsuNonabiA whir Lba5tir paying Any shwitagv in prooDAds.In whfoh oA9e rube 1-teas ehau inrnnin in Bill tcfa and oUcn,ar ha�ro dills Lurie tutmtluily Ihlrry(30)days UaorouUur• I.assmp ahgll trot la sr(UUed in nurbursumAnt oP any luaus cOrrttlwrgd by Layaae to repair any smcb damage W dwebu'oiic,. Rral,ia parijAl LnemaQe due to nood or sofinqumkI snit bo xuNOq to WON h A.h9,aoewhthxtanding tnA1 u,pie may n7 _ . ursrto¢�44p a: 'pt'Viis'tdl.p?;br, t%llx 'tp!Y etitihann'ce�8'{r�°,e,O.t>,( ,' ';opb'+y aGRfla;l4'Champalrp Olirwda,liy'.¢l;dinri?.grt•/- '., �Y .;9,a ' FiS,a'Ilmlil'w(naifv+ll., toad W+!tY-'.. ,R.-..,,-r-.• is ,Y, I�^ r 1y T6trtr'..r L'hgtA`et`,':.T+aNi era; uritel 3t+uxad.by e rr 1'h flit �,i�at� t >� � r..ibf irui act o4 x'A fin wYdc'�1 evap�M:mra 'tff( 'Ngkf tFfx IakArat lep"a''y`"e;tY�l'l i.dldsor fppy,MGlek:. l)S' +Dr'�'sdh E¢arFgrpta tie 6m`uh a o t ,r r '�a^aolMa of t+TASOrG oxpana� tr hvtWd+,o4' a db`h.l'b1i�Hr- u�+slrnrIf hi r La'%,aljll alfo%f, Pp uunTazalx ihrk t erMtb bC L',f kullluYl nol✓-s the v„dun thlrly b56)drl;9 airnr t�asvPl byI out, L<is oT kmwvl)sh'Eie-yvr ,is zee,?a!fi aaglrai+^f++SY Velrar»a4rin'allail"@;v sv�fb�d r iiff .•;!��' .. ,. fire^efA!.RX�IJS.`.l";•f' • FROM I L I L R•IEN9ERG FOX NO. : 9,19,1996,113 Feb. 11 2002 05;08Pi9 P6 IIRNEri �EVELOPMENi; 714, 544 4:11Pli,i PAGE 14120 ;ENT 9Y; C4LE COMMEIICIAL; 760 325 IM; FEB-7-02 2:54PM; PADk 14/20 mo dale of such rwtico, In the uVeril Lesedr sleds to unklIa s"Iles-(98sel lmagnat cb0thaVe the IipmailNn Nn(to)dnyp gflof leWlpl of the Nnninotion palm to gNa written Rollo to Leacw of Leaeae s tnnVnihiml to A*for this rapatr or such dinning,WlVhoul,almhursamanl Rum Lorpr, Ln-sd.*f q proVlde LOaam Kith sold funds or bz1Wan;ay abaulanoe thereof a41hln thirty (311)dove after making audh cunmllmant. In such avant Use Leaag shell continue In full tcaw and el(Cd,and Losaor shoe vvwcwd to auks much rapelfs"anon as raeSonahly pomiaa Army and requlrad fund.pie Av,Mlablo. It I ossaq door not nuke the rogWrall mnun111'Mnl,this Lass shall tanninule u of I g I;lale spedfiad In tilt lamin dion no ot. VR Total WafnnUlrm. IfotadlhaUandbnp Wly ether movfebn hereof.llalhlwnlues Tow Odrouclon w m.thl.In•sashen mnnlnata+Illy Cook Jaya Idlwlnt Much OgehucUmh. I!rho deplete or tmabati{on Wee Mused by Ihq ghme nanppanm ar Wilful mixcantlAm or(canes,La++dr shall hrva GIr rinhl ...... uamap.,or wnm we Copt on.¢pair axuadt one 11)monni bane Runt,whether or not an mauled Loup,Lgnaor play toffnlnpW Alin LP-0ab affecfrva P1*(90)Palo;I limlog the data of orilrrrnos(( Mud)denWpe by giving a wdtlon lumdrugon notioo to Leaneei whhln UNIy(301 dayw ulcer Ole dabs of uccorance of suds ds nggg, Not+oubovdblp Ilia Iwelpdng,11 Leoaee st Vral Ante has An eyrlrlaame oplfen to 01e0111 OVA Luua or w pumnase Ohe Premises,than Ltuoaa nwy Dncoa, n into Lassa by,Is) nwonl4gl such option slid N)providing Insoor%111l mly shouUga In Insurance oovoeada(or odaqusta aN3vimi n VvaIW)needed to maka the nKMrim on or u-furo Ole satin,u(Ill an Oslo 410116 tan days aMr L:asseds tacolpt of Learoe,wrllion notion pump ai(r9 to lamlinale this Lea".or III)he day kelp ke the date upuo Won Muuh uPbw WPINo. 11 Leoaee only search"such option dbdno umh p0rlod and pruvidos r a..pr with two, (a ano quale naaumnw thftmal W cmur Any aWnlWaa In adva lm procaods,Lemor shall,al LA,.,WS oomrhkm rally leaeonable anvmme e,rep+tr suds dampen oa Mona m rsaronaoly possolo and(hit Lass+ahbll wtha ue in full holm and xllsd. It Loaeoe halls W exmd-a such option mid provide Audi Rmds or esauramoo dwlna vooh ooriod ill.,,Uvs L.AaA than k.nalrule on Ihu data gp elrlod In the tnhmineNoh nuilw And nnonal's opdon than ba axvinifulshed. 9.6 Abetoahant 8f Rdoli LaaP+'M Ig-aadW. (a)Auxlamont. In the avant Of Protrllws Partial 11=009°r pnanlsaa'Total Llesbecton era Naaaidoue NuUatance Oondluerl fa whiah Levee le not muponlibla under His I.W9.the Rend pavabW by Lp,aga for the ported rNlrund for th,pipets,rompoleeon Or m anoraton of nuch dmnaGe shall kill dinned In pho(wnlon to U,N Ostroff,In w1Odf LoaMee's use of Uw Promis"la l npulrod,but not to cxcahxt the Woods(eoolved from the R+nRaI Valuo tltaurxoca. NI rAhar cbl)tallm"of Luvahx hafauadar ahall hY pgrhxmed by La6aAp,and Lra,ea shad have na liability for any Much damage,driNlructlon, remudsbon,VMpah of fe ilnraUon mfoapl as pmvldod harm. Ill)Kernsddea. It LeSour shall be obintaled to npelr or rerkom thn Pmmimu And does not Wri m inca,In A subaaollol and rnaenintkd my. ouch repah a rannomilan w!Ulh ninety f4i days Roes eucll obligation shall Dennis,Lsaaar may,at my thine pilot I-the OemmonwotiRn of such roiwlr" ,eeloratian,Alva wdlben nollW to LaspW and is any Lundere of milli t Ace has dtueif notln,of Lanes s Clacton to letmlr2tC thl9 LA;m4 On a cols not low Then 0xly(all)d9ye fohawinq the plNng of Such noiloo. If Lu,ag plus$ouch rebm and such rop-dU or rutonailm IN not commonred A(thoi Utitly(301 doya Ihurin thir,his Loaw,hall lontunnta a*of Oise del,apaafxd In auld OuUra. It Vhs ropolr or rwtryAlion K commenwd within said thirty(301 daya,Uda Laaao Nunn mnHA.0 in Rill rocx, and ufkcL 'Coma ease bNq ound,dialer the unsm.nijennl euthorbuigm of Via pnpsratark of the laqulrad pl-ns, od ate b+Oa,Nng of ma Addpl work on the Pmmlaea.Whlcham f VdQvWm- 9.7 Tsnnfnstlan•AdvAnep Pryrnpnta. Upon ICnnilAuon o(ehlp IsMaa IaulMUan!to Parspru,ph D2(p)d'P•mlaANh 9,wi equflaule arOwOrwnl cnall he m,dq mnGa ai np A,houl o Deco,mall aid any other advance payumnm amuse by LONoto W Ln.aor. LCu ee shhal),in am1flon,Ielum In,Lascoo,60 uh anuch of LOcu'a 9ocdrdy Depoall at has root bun,or h;riot then mciplrod W be,upadnby Losaor, Ulf Wrive 81dutos• Lnsaur and Letsaa nor**Vol Uw flans of 1116 Laura*hail if m nv tits affect of any dpfagta to or 041WUlon d Ulu Plemlaea,,a ll faaPerl in mo Iamlina 000 at the Lurie and hereby wvlva the prWinons 0f any present W fuhre alalulO to Ulu Client mmnalymndt"myn dh. loll Pool Prup+aiy Tamar. IM Roflnitfon of'Real Proparty Trans." As used hemin,the harm"Reid Freitag*TURav$hall InNude any form of Wileaament;reel aalale, Generel,epudal,wdinaty tx axbanot a ry,or rental levy or lair(other than 1fd19111NCE!,parmnal Inwmp of M6aw lawn);Improvdmenl hand,mxVar 11"IM99 Ire fnq,aaud upw.a Imwed saxhmt Any hdpi,W agWawa Inleml of USam Un M,s Pron ulda. I arms bold to offror Innxrc lelntronh andAur Wild ' buelm'."of IMaab,p,by any aIlthanty IWvithM ill"daeol or Indlreol povros W tax and vdmm i ho funds Mrs ppnorAnod with rofIXanoo W Ifs DW ding nddr+rp and whore the pr0000ds so generated am 10 be gppted try the dtV.county W other Iwat Nidavo aulh-ily o1 a Suamhdan Wil On wbid,me Pnnillma we MOW, 'ma loot"Karl prop.Ay 1•axse"Shall 4100 Induce any tall,fur:.levy.rWaaamenl W daahye,a any,loonkave Plata .Impostd by real of uwnm Woorillfp dudnp Ow lam of his Lease.Including but not limited 10,a drdnga In Ihq wmonlda of the Pnmlxal, i o.2 (A)Payment M TaM••. Lrmaeo sham Amy the Real Propety T,.nas uppllcabb to the PremiAp dunnp Na Will al tda L•sAa, 5ub;ud to ParaOnaAl 10.2tb), all ,all peyrnamn 911311 be made at(pawl Lan (10)dAYA poor bit any dalinvicer cy date. Lesam ,hap PmmpUy futNah Lxnea with Madsfactcuy evidanoa than audt lax"'huva been paid. it any such taxes shill wvaf Iffy panod of Vow prior to or offer IN ANplraeon W Ramification or 9n1'- Lel s ,WinIg's sham of Wit tepee ahgll be pmntsd to over only that portion o'Ins Iw bit apploaW to eta perWd Uhat Iola Lee7e in in chunk,and Lao,or vhWl ntinkutae LF.yal'Aa iW nnY uvtapnylnpM, I1 Lt'sbae 6haa fall w only anY mquq,d plaal ProPSrrY TMxo,,lAanu shall hav Vn+dpht W wr IIIC damn,Mnd n+se.a stall ralnn(h)A t arias drarofu L In Inn li%tA. $etmAie the annoy (t)yutvMnce PaynaanL NI the¢vent La10 I n lM1eun a m Marge.1n Any Renl payment,P)III Losaor mpY.At l.aa6or'a option, Real Proparly,Taxes,and require teal auth toga be PAl41M1 ndriO(a b laSaol b:(LaWae,eith¢th Ili In p tamp war emannl equal ro'he Its6160rent due,At re Walt twenty(20)days Ada to the apptcaiW delinquency dew.«N)m0nth4Y ta adYlCna,Wth the➢aylnerd of the taeee Ram If 47Ssof elaae LO fogNra payment mowighly in pdvarim,Ulu monully paylawt ehau he an alnOUTlequal w tea g(noont of OR%Sskint,Nd builafmant of We;divided by IA•numtwr or months nmainlnp More Vice month Mwfilch add W 1plhwn[Mrotoofe dplhquenL "allthe eeWal rMnauil a<11W nPpllelWe ta%tNll"Mad m,Ina arinlnn of lacilod by Much equal mad va hry admn faSynlsno,Shalt be adjhukd IS required In provide Oho limits 6OeUud gla mtPnofAnU�sudh allfona�l ad es as am aMa�.ry w pav Levier IN irlauflldenl la PAY Mud,Ntol Property TAxaa VITRO duo,Laing"Alsip ph/'Llwmr,ul *soh ObEgormna. All monin paid to LoS under Vya PenWnph may bs InronnlnMlW'mht afiar nroNos of lneu'M and thall n4,h+nv InwrusL In iN avanLaf A Drumm by LRaxes In AhN parhNnVnm of ill uhppgtlnoe under thl,Leaaa,oven any taimim of furldA paid W Laura wider the provlalon,or this pam0rapb may,al a)o option at Lanaol,be treated iS kin amehica pt Sucaby Min"AlL 193 JahN Asom*ye•nl, if U,s Pronitsea Mrs npl millmandY a i d• 'd Delf pi u attpoloon�il fairy efgN° ° by I aorl�rom0p,e Taxev for ant of the land and Impfdvmnonta InGudad wthln Via tax pa tugWtvil YMtuddans eselgngd 10Ing Gisexeoys work ahlAals or mud)Other Infounaqua en may be ropuan.bly Nvulbdtt.. 10.4 PetAnnsl PWI AMY'll Lassas SAW1 pay("tor Of dolihx{Uenoy,Ali talon Aessaaod slosh*t and lovisd upon LouNne Vvym d Nluralfals. VbUty Inatallutons,Tfudd Fbtlhrres,rurrdsllaR10-aqutpouml all( all pursoni d prmMmy hif Laxasa. tan of pwulblr.Laaaaa slwll cgayn audh proMtiY W bd aeauvsad QuickUlllmd aspvrnWly hula the Taal property of l�[*nr. If tiny or I.aune9 laid pm,oltal PtOpatny.hall he amwaed will,I—,*'$teal P'vwnly. I e aoe Ghall pay LoNam tar Wilds athnmWuh,10 Lwud heal, Ohy power`a l(1u) a Unel ml».1.,a oll or uUldav and eavA w mippllmd In Its Plana", 1 L Ddllllrw 1.*a,+shall pay to sit WAWr,gam, Iopola:r wall may Wwa Imindon. If any,uch uerrine,Ram On'tdanodely puk"od to Lunaoa,I .�.--Shall pay a raal,ornnlo pmpoNal,W Wa delem,kle ay Lassa,nl ail cirolgaa Jollity hNlorad. ",TI�tCrv- 11 L,aitmnual And Subletting. 121 l-oeaw'1 Oonaord fta(ulro0. u ar sash mrwnl'"I or (-)hu9aga ill, tank vdonlwiv M by oporallon of law Waiyo,Imnahn,mwhlomil or cmmngra imlipatvgiy,"NOW 0 sublet all a any part of Loarne',Intarsal In d`61111%el an the PnnA*+s wirhWl t"Mat'a a�le�vnlllen cnnsanL (b)A o411de In to-canton of Loanno-hdl oouattukc on malpnnxud omuhinA eonsen6 Thu mastic.ism a eumulaVva boils,of twenty^file Cartoon(ad%v)or mh:n d tine vopnt wnlonl of Loss-*hall m"ohn-A CiW Gs In tuhMW fa All$PAfI"'W' . M uleloun, Ilnundn (c) fha ITvavumhdll of Lciuloo or lit amloc�In cry Uutvu0con,a aides of IttauuaGona(by way or rpbrper, ales W 9 uvhrler,teveragad mrybut a o1h+PM—),W'di nr or not a axmal axaignmdnL or h1nollhac.Ua l df%a m.0h Not WaU6Y It weswNn word at the Shia I0 mauh In a pducaon of m.Nut Wanh.l We*s1 by 11-mount Gnat"'clan r sly flan parasol(?6`!a) r°Pfrr ttlY Prier to said fraisocdan or it,,ovu,oub-at Oft LaavM"U,m+4me at its haul 16OWaa•sslpmn-nt to Widen I+ws*i•has wnno vWd,or en it exufa Imnfedia hsnaacton.mnaUWling ouch r U,dvon.Wt lid,rwur was or It emal',elect be amsldar-o on asaCorhmant of VAs 1.0*9*to which LA"OT navy WU'hdd Its wne+n4 "lint W.afi or Loccw"plot nwan than+[vronh of Lena.(+Mvmdlnp any Oupr nrorr)aalnbiiafhad andw ponoN)N° pin:d A°onuntlna pirhdpla,. (d) An ax*ipnn.ant onyub4vanp v hoed Od Wta1L At Laourd chptan,be a Dalaull nurlililu1.1.d spar nua[u par Panhgra Ran ddnlahewaaln n-natmb6 atnerh W host Lhv ru+ry"it,or MnY oopce�khd gmcx Wn`"d. If La.wh abc4 is Ir*al ludo unavuraverl aul9nmann w whlelilnp . PaIW 6 uF 11 told" m1uB1•Amgrlan InduaglAl R•II Estate AuoGNUan R tVKFlt FORM-M-6.319TC D I-Rol,1 : I-ILH., n1,10,I13L=RG FAX P(o. : 9494996413 Feb. 11 2002 05: 10PI1 P1 SFNi DY: OURNETT ONCLOPMENT; 714 5,14 0200; rrn•7-02 4:02PM; PAGE 15/20 ENT BY; I.YIF 000171`10,TAI 7130 M i001); MI-7-02 2:55PId; I F'AflL 1b/zu Biguch, Loeauf may airier, (I) terminate He Lease,or Ili)upon Briny(30)days wrUlan fieaoe. Incmus the monthly Brio Rent to One hundred inn percent 1110°%) of the Baia Rnnl than In offacl. Fuithor. In the event at ouch Breeoh Lid mmAill adjuabnefit. (1) the purctinem price of any npltno to pufo hRoa Inn P,ernbses hold by Leaaoe alkali be suh)ept to elrnifar edirgunant be one hundred loin lyroonl (110%) of in*price raWoualy it,attack, and Ill) all Uxty) and fluo-ilypd rental Kristrr a ila scheduled dudnd tha remslnder of the I-vase Lsnn shall bo Incmabid hA one Honored Ton Pampanl (11o%) of rho saedulad ad)u51bd iunl- (o)Laailueh rclnl"dy for any bileach of lOaragropn 121 by Laeuw aitadq be uml,ted to mmpebaatory deroage,ondror Irganotve munf, 12.2 Tefree and Cond1tiona A"IicebIs to Asaldemonl and 8ubietdn9. (n)Reoardla bi at Lemcw's❑onaard,any asuigrrnenl or sublatanp Ohua not: 0)ha offeei„a vyfthout the aapPuzu lroItrnn assumption by seep msiuneb or sublea&w of Ole obltpallons of Leaaee urlear lhts Lease; (U)rab,2" LanDaa of Orly obflliauana horourrden w(11) char the priwory eablIby of -AAA, ,for ere payrneni Of Ront or for the partunnadoo bf any clear obRpallona W be perflarmed by Laceioe. (b)Les4nf ttgy accept Rahl at poftormance of Lessee's eblf90.tons flora any pa,aon deer Uwn Loosen pondino Approval or disapproval of an assignirwnl. N411W a deity to the approval or disapproval at Ruch assl fire n inl rear WM acceptance of Rent or parformanoo limit bonaluuta a waiver or asloppal of Le5eor's right to aeardso Its rornedim far L.psawg Niaun or tlmacti- (c)Lcsior's C011eent to any aa5tpnmxlt ursublolUnp shall not constirpW a consent to any yubasnvent acolgnment or subtetlinp. (d) 111 the event lit any 6pRdult ar Branch by Lestma, La6W ma;r ixccxied dlfady ap*lnat Leaaoe, any Oooranwr" x an"rin else faal>nndUila for IN perforuianoa of Lessee's obliaotiorw under aria Lease.is ducting any acuignoa or subleetss, wldlovi Onit ex huustkig I..eeea'e remedial apamal snv other IPPAoti or annty raspouclbin U[emlbre to Lessor,ar any aawhdhy held lily Lessor. (a) Fach roclitut for Gorlaant to an QuWnmled m srahabino ntiali ba In wdur,n, eccomPhudad by Information falovank to Lewrv'u uutarminadm as to kill,flnpndat and 0puraUmhel re5pop"hbbiy and appropdalonora of the prupoatd aaalOnse or w bieasseu, Inducting but not linttad to the ,mended use iandlor regvlrad inudltimbon of the Prpmleou, t any. tloelhor whin a felt of Sl Onl! or ten peioanl 11044)of 0-4 wrverht monthlV B0,44 Ran( hppii able Iv Ile portion of the PrOmieae Which Ill flip sualact of Ina propm&d aardppunent.Or sublel"u.whichever Is praaler, ag eorsidarabon for Lohiirot's crimIduring and prowsainji said squeal. I Oeaae agrebS to nrovhle Lesser vAul Du:h sib" or addhkruif information and/or as may be romorrobly foquested, (1)Airy assign*" of, or SUbleasap undor, Ihle Laaaa Shall, by lesson of tcrspbng slid,asslpnMM of entering into tech aublilaso, be dasnlad to have aasumod arhd p[Iraad In nwifetel Ord Comply uAffl each and laYerylerin, Wvtnunl, earkawon and bWluhUw herein to he olh"ea,wd Or per tuniad by laODae dt](109 the term Of said adsignrrrent of adnleaee.Other Ulan such eblipaUons as are twnbary to w incona4rr+nt Will r,,Ovtulona of an 2miunniant or wblpaaer to which Leader has*peoificaly aonsentad ro in writing ` 12.1 AddWorhai TermR and Cotdlflona Aplillablo to Sublettinp. The fidiowlnu Inirm grid cciridltlons shall apply to any subleliliip by Lome of all of any pelt lit Old prarnises And shall be(Wanted includad irk all aubiaaDoa under tlla Luaca v(wtfnkt or not Wresaly Ineaeporalad El"Rolm (a)Lassen herebY msalgns and Itansfars w Lessor all Of Leeeee'a Iniarbot in tip Rent payable on ally Wd"3su,end Lasser Array av)Dct such Reef and apply Santa ILY"rd Leaaea'* mhllgalinns under this Lease: provided, howevrir, Ilud until a 6raarlh shall occur In Via pwtorrnariM of LeeaOU'" obiipationa,Lasses may collod paid Rant L49arx shay not,by reawkk m era foroddng rx Oily atelpnmont of Soon aublasna,ear bar raisin"bf the hollac)lor,d Rent.be deemed liable be Ula aublbeaaa for any failure of Lenaee to perfulrn and lxI Oply wkh airy of Lessee',dillphallons to such subl}rsin. Uns"ll�hope of rebY Irtnvocabiy audrdd2as and d1wis any audl eubulial", upon rom(nt of a Wilton notice arum dh L"W aioUrip that a brea eaiata n the Lessee's obllgnk",A under this Lend*,to Pay to Lessor all Rant due and to become due undor the Rublesxe. SUbhaaaee she))rely upon any Arch natdr fnan, Laasor and shall flay all Rants to Lpianr wthabi any obligallarl or dpht to Innubi,at lau,h"thvr crich RNacli nYleta, notwllhoLbadirlg ally CIWFP fleck L+ "ll to ftio wihm, {A) In file evtnl of a Broach by Lessee, Lassa may, al Ile apdon, require stl0laacee to attack to 14iashx, In width event Lnuaor shall uildetpKo (ha obll9anona df Vie aubloetor under 4Vdk sublaasa from qte Ume M Ibe ipirdno a►Old oplion to Ule aYplrallon of such Suhiaana:provided, a,,mevut,I haaof shell not be liable for nPY popald rabbi m i'mu(ly d°poalt paid by suoh sublaesoe to ouch 5vblaauo,'or for any prior 001au1 W o, Uroberro of buds 6ublovaor. (c)Any nn,rlc,r rogWrinp ter ueh3ent of the sublOs6ar undor a sublenoii shall Vigo require rho i,Anaenl❑1 LeeaDL (d)No subiossoa shall further apDlgn w eublo[ap or any aa,i of the premises wflhout Lasiuht ps ex"ifien cano❑rrl, a copy of orry«uUa Of oe(alon of Bfeanh by Ul'cDaa to des oubiesoae,who shaft haw the dgiN town the pehnill of In auch twacv. The Wbaaesae shall bsv❑a fight nr rehmbmsemmnt and o (.eases within the afeca pedal,If any,spa fbat lean and a9alnst LADYYd for (n)l.Osaor shall dritvnr dtlsd any such L)Wfau)ta raxad by die subUdaas. 13. (o m UP140fl;R aisulf, amadioa. a by the tor 13.1 Bofaull; Broach. A"ndaulr'Ill doifnnd as a fadu xxsea mpty w1Ua iO perform any of the tntm , x s ,r ) s a b rules undor ads louse. A"[ircech"Is defined as rho ccuirronca of one or more of Ina foflO�winp i?otautls,and the 1a11uro of lAsecnover W turellsn efhcfh Uulavit vAUen any appllcabia grata period: the vacating of Ina Pramlltos Wlrhiaua(xavldlPD a commerdaV roaaonable level of suwrity, or (a)The abandonment of the Pre,,j4d in Parey a' whore Ina covnra9a 01 the prpppl"t1'In,uranoa doaa9orapl, d,9 in iaaperdiand as a walkIhdroof,or wllltwt Aaavlding laaaonatlle a°°uranrxs w Inlnpn,zs paianital V7ndalixin, ant of Rani w ohy 5acialty,PepmaV Inquired td be 1112,1111 by Lau»nulauntler,v to ear iq (b)1he fallum of Lwwe to Moo any payment bond,or to fulfill any obligoUon under INS Loaaa yrtdoh orldanpars Lus ter or to a third party,when due,W provide Peaaonabia avldonce of iraboanco or"Leah' aarvia ounirads, or bnoawna llte ar proponY'miehe d",h w1ure conUnueo for a pprlod of tiros(9I buslnuap days IWIOWIsg arriitafl P adt�e to Leespe. (o)The fatlum by tilw to Provide(q roes drip.a w(dgn tegievidencectml4�>�(v)It rree4qua�d w1burdinav°n, (VI) (hence oollran)np any Ili)) in" rgye,s5101h of an unauUhulizad aDslUa>nwnt 1X aukaiatdnD. (1vy a Eatop'Pn guaranty mallvr 9vuranmr,full)any dot: roqumol°(undor pm,,Uraph a2(aaDamunitx),or(vile any other documanWUan a Infunnaler, wield,t lriinr Lmanay rnwom,Wy rndulr(dif LwW A Rot under hy the h' tic to thelame, covenants ux dse.Where any su'Z iVirars or pinvisjuns of thisorw Le,"a,easof e,Or Ofhm'ru�kla andaptndau tinder Pnstgm('''ao for a Plied of dl Do Partial, ur 10 trial) hrmnvur iihaJdl in a nau tip Of Loss��FaUI[:0 Ilk or t.a areas nthirtyau (,)0)(aye are reasonabty requtnd for lts wro,ftwi�i it ah-41 n4tw noUco;p deemed to its a B+}T1ho L siao wriai of Ot th9 followito it) nphaven1,.t(I1 the m)aklna of cninY 9u Rl "011 oil anail8a and thereafter lmantyor agelpnrnMle far jb t ilvto a ace itin;Ci) o "debbxT as dnflnlsd In 11 ply of. 9 toll or g a err , ROT athlete Iherekl (mnioss. In the cast of is lsettion It aylainst(„ipaaae,the seine is hecornlnp chicken[Of a inhaled at temiyvr to Ulm Praaeaalnn of S�°w 1 nr❑ Dl Of twChn-ita� zoeuutiorr�rr 011 the UlenilDaod vdthln a1xtY (fao) drays); (III) Uio aPP Fibmtae9 Or of Lusse"'a Inlnhuet In fills Logan'where po"Oas,an to not restored w f.,44'a w;Udrh tlildy(3 )days; vac,ka Res event IOCR any 11n'nsidn of this subpafagraptt 13.1 lei Ill eenbary to ally appl[Ceblo I"W.Such luru•lla' shall ludtdal oelture of aulratru,Ually all of Leaaeo3 upsets looalad al Ina prontafs of of LADDpo'a hitoruat In Ihp lease,wfiara curb seizure Is na[dlenhatpe list wiUan ihhkty igil)days!pnOiwUd,Pours . be of no hvco or pffdcl,and Pal off"rho vpndlly of 010 mly along pV Guea,anlor given In Losses Wes;met..12Vy iairui Ole IcrminaUon of u (q The diacoveiy dial Arty VAa rlal siatameril of l erase m art any the daatlh of n Gwenlor: (11) W) if inn pa,lomhanoe of Lenae'a oblIOUonc under this Leas*is 9uararlloed: (I) k n(d of tw ellbf apt or v a GuanmtSic Dreaoh ct ifs ouhmAty matpaton on en anticipatory ra°ta.and Civalaut❑i°tlabllily with respo:=t to thL Lease oltkai lean bh aaordanca with Uie harms oaf surd guaranty:(ili)a Guaranlor'a biacomb[q of a UanNfupwy filing; (h!)a OubranII" refusal W htsloY the Buaf lY' O ❑t rro Urne of of a!yee's hlluro,within sixty(at))day faUowhng wdllan nnbcs of any eadA evank,to t'n"We'wdi4,n ailnmatva ossuranco or CpWr{(y,vfiddl,wtmn ccu Leah ilia own e,withisung rAbdy lea of LaY+an, pqunla or Orfeadc fho eophbindd 002WO raeemrCrib Of L"s and Ina Qbara flora bha[cabled aafmmr any of Its afU[m'atHa tlu„u5 Or'obllgaijons,vruan bn (1U)days aner wAtlan ne" fur in W&e Or an ,,,'WO"or lhta Lose°, Do(llal Iin lied to the olik"I" g of 13.2 Remedlee., It LugD"falls trip ariemh sud, duty dr obagDlion an lAaS o'p nA and alPy u of any ouch parpaananoa by Leaser omergeney.vAihoul rhodca), Laaaor may, at ilc optlm, p emits a apP> 4- - Tno oasis ,seance ihcuas,or owwwesnlal pWneee,po 6 Ltyena xihaY nix Pa[rahMad by Nebank upon w`h�i dl it lhor roanonst,ry rayulled bands,6 f� c1lur:i,tflWm W Leaw Y re ali pia uuu and 40 bane I i Conan upon receipt at Invoicb theroloi', If dnY Leakage by It ahlpfS dleoti, in pee Weill of a Broad',IJjsSof may, r eke all fultlro payrnanle W bo made by W raaDon of such 13raadr la(,awn,&let kl,il Ira deem mRv 1 h a IAMul means,In VA1101 raw rid.Laaea shall SGrrfYnptc and Lcna=,elrall witnou[kidhet nadco or damamd,and wlrhout llndW,g Lsirtw In liiabx,rdee of anY right Or rem' whldi Lasepr may a,ava (a)Talrniinte Le'svr��a rttlht w paux ssls"of the PrcrnLlus Y rri _ Ualdala Yp Pope 7 Of 11 i cnvu w'ru�.vnrR rafNi'apn i ,e..nu,.anwrran Indn.lrlae Rod/«+�' ' FROI;l : HEii- nf,auD RG MX 110. : 949,1996413 Feb. 11 2002 05: 11PN P2 SC:NT BY'. B(1BNE1'T DEVELOPMENT; 714 544 02010; FER-7-02 4:33PM; PAOF 16120 FIT- BY: LYI.F COMMERCIAL; 760 325 10011; FCR-7-02 2:5BPM; PARE ael2u gnmedlobly Aunnndar posloaslai W Lesea. In such event Lmoor shall be eptibed m rotover from Lesaoe; (I)the unpold(lent whlM rod bean oumed of Nu Ville of anminatinn;Ill)lhs,worth at Ole dine of award of dw omounf by amain ihv unpaid met wh4ch amid have boon eamod After berminhow unto one Uma of award cxcosde rho amount of eueh mAtsl loss that the LgsN pmvee fauld huva born mAvonsibly evalded;fill the Wertrl at the tine of award at the amount by which tie unpaid rant for tha baburoa Of the term after the Itnw of mwaN mccacd%by hni of Audi rmhtei Imp that via Losep prove❑ meld bit reaaunably avoinod;and(Iv)any oNer amount rleee isary to ramponeato Lessor for all the ddtrimant proximately utuse❑by Vie Leeaeaa failure to pertain]Re obllvetlons under IN. I a FI I W which a1 Uw ordinary oo❑ree of things lv,uld ee ukehl W nesuu thOmfrwn,including but tier Ourtgril to the cowl of r ,,,,r ng paesetsion of Pro Prtmtees,azpenoes of raletling,Including neo"Okury❑onwrylun anti allorallon of the Ponrnlees,reasonable mUckoloya'fam,and that portion of any loc,_ving axnrnlnnloo paid by Lasmr In e:orenecYm Wit that Ls,som uppflcgbto lb She uneuepltnd tivm of Nis Learso. The worm Pitthe dine of award of file amount nforrgd to h pimliti (Ili)ter the irminodlataly pmoilding senlenco that)by computed by disw intng such amount ut Via dlePollnr nouo or the federal Reconv Bark pF Uhe UlcMet within whlth the Prnmla¢a uro Weatvil at tin limo of bwanU pia one Percent(iy). 6HurLn by L.eerxx to miYoeta dantageo whrovtl by Ledsue's Broads of lhle Lease shall not weivo l.nasort light to teorv,r damag,a ander Paragraph 12. If termllhsUan crude Inane W obteinud through Uha ptavtsionnl 1anizdy of unlawful detahnar.Lessor shalt have the right to meovwr in 1woh,praceadvg any unpaid Rant anti damages as am mc❑vnrybW Norehn, or Les"or may receive Uw Fight to reoovar all Or any pad Ihereof In a aepetato oWL If a nodcu and grace period tequlred under Paraleoph 13.1 vine her prvvioufv oWw,,a notice to pay rent of quit,`w to perform or quit glven to I-0rwo under mo unlawful delaine statute eiWl nran cgnroVttriv ilia notice mgvlrod by f1&fagreph 18,1. In uuctf caeo, No appllcabiu uraca porlod rs,qulmd by Paramaph 13,1 aria the unlawful doleinaraLiluls shall nth C0loorr ty,and DID !alien of Lbusea ro slum Nu Dalaull willon the groaler Fit Inc " Unuh gram pruh4li rhall WnRutulo both an unlawful duWlna'and a 131",1111 of NIB 1 wrv.a art Lemur to the rufnadisa provided for In Oil%Le¢sU andlat by said slaude. (b) C ant iuu the Laaea aril I-alkii 's light In polseselon and recOvur gnu RCnt am It becomso due, in vdllch avant Leeoue navy aubbl of a+aign, subject ally to rensome bin blnlladrris. Axis of malnlenamd, efforts Iv odol, andlof the opydnlnieut of a moalvar to prult,"the Lur"Des intonate, ehpil not mnshhule a to min2Uon of the Leosou'o moil to frassatuon. (o)Porwuu any olhar ramody now o hansvi uvallabla under the lave or Judicial dedsicxw of ilia%bats wthoraln the Preni am located. -rho dxpirotl❑n a l omh adon of!line Lwow endrur the temJhubon of Lvga as 6 right x,powsrelon shah Fiat rQllovo Leouvv Iran Ilablllly,under any icdemnlly provhsicaw or this LAa6o as to malts-re tKrwdng at acc-ming during the tetra hmvW a try rtttuon of Lnxuw'a ocWpcnoy of alp Prandsua, 13.3 Inducornunt rta"Fr m t. Any aprmmpnt for free or abutod Foul Ar.ebrar fhargw,or for Ihd giving a'paying by fa000r to or for Loeadu of any "Or or other bonus, fi dllovnlenl of amNd.ruUun for Lascaek ente4no Into lilt L6Aao, ail of witch mncosalata art hereinafter'rafarted to or, "Inducamenl ProvleMna,m Ah¢ll be dapmod 0ol dillonad upon I.efII full Intl fanyhy Pmdonnsnoa of Fill of the lotme. cuirpnanea and oondh one of Uits La¢ta. Upon Breach of lhts Lease try Lesotw,any such InduCarhmnt Prevision shall ant email ally be degrnsd dolatod tram this Leaoa and of no furihv foCa or egad, and any IeenL other chelTre- bonus. Inducamanl or mnslderollon Uwralelanh abated, glvah a paid by Lmasor under such en Inducvmont Pravirbrt ahail Dr,InsnudlaMy tim and poynblo bV Loss"to Lower,noiwidnstandinp tiny subuequent cure of said Branch by Lessee. ihv awepbance by Lsasor of Bt1d or(he Clue of mu Hraedl which InlVatsd the oparadon of this paragraph allall trot be doemcd a waiver by Leaser of Ora prpvtslonn of DOE paragraph uniltsa specthully so stated In writing by Lessor at this tlma of such acrapiancn. 13.4 Late Chsfpaa. Leas ere hereby bcknOvdeTA9lse that LAID poyvienl by I.easea of Rmht will mite Laasor to Inay taste not Contemplated by Nis Laaao,Uto exact mnounl of which will bo¢NtrarrnN dlrncWl W asotdaln. Such ooAm inuudu,but ary hilt boiled fo, pra❑wainu and¢u xiunenp sherds,%,and lalu charges which may be irgmsed upon Leasor by any Lender, AcoOrd'unIlly. If any Rant shall not he receved by Lessor within five (5)days after audh enxnml don bo duo, Ihan,Vimout pay logtboment for notice to Lerida, Lacsue shill pay to Laasor a ono Until lato throe equal td tan percent(10%)of each 9uoh overdue enlount. Tfie ParlICS hereby agree that such Ieh; Merge repre ionbt a (oar and reeemuure Gatmahe of the rnetl Laasgr Will incur by roaWn of euoh late paymanl. Aomptonoo of cddl IAhu dlergo by Lee&or shall In no avant rmsuluta a walvw of Loco re'a tWitull rx Breach wilt meoect In such overdue Amount, nor Pruvatit mM axurclse of any al the Dollar rights and namadies granlgd hereunder, In Um,event that a tale dharou it, payable hereunder, whether or not wlleclVid,for three (3) bonaeCOM Inslaliments of Daae'!ton"than nohNfhotanding Any proliNon of lhfs Lone to the oonbnry. Buse Ronl shall,at Lvssorx oDUon,beoamo due and payshah quarvrb In 3thAnce. f3.5 Internal. Any frieriusly paymdlt duo L,ea❑r herounder, oNer also tale oharpos, not received by Leslar,when due as $a scheduled paymen(a(seal ere Patve Rent)or wllhln NlrW(3U)days fahumng U1e dale on witch 11 wan dice bur hon.edudulatt payrrw'nl,shall IJear inlonat train ins data when dia,As to sdlnd�uled payments.or the Itarkyfilot(31sp day After it was duo as to non-mdhodulad payments.-Ilia Interest("lutpltri")chAMed short tie equal IQ Na prime rate telitAbd In ilia Well Shoat Journal as pUhtshed ntosost pdot'b Ong date whon duo plus four carom!(49'e), fail shall not a�csod Ilia maximum rate allowed by law, Interest Is payable In addition to ilia polenbal hlv chards provided bur in Paragraph 13.4. 13.6 breach by Law Or. (a) Notiao of broach, Lessor Shall not tie doomed In broach ❑t'Ihls Lease unlmss Leeaor falls within a maaonable Untie to perform an ohllgaUon required to ba perfornead by rainier. For purpose a thle paragraph,a roersenabla time shall In no event be Iasi 71dn thirty(30)days affix rbratpl oy Lo or.and any Lender whose name and address eheY have bean IUrnSt ed trice in wdtng for such parpate,or written nullca arn"Frinil wheran such obngallon of L.osaor has not Doan perromrod;provided,howeYar,that if the naum of L"501`e oldondon Is such that more Ilion thirty(30)days ens marrinabiy re:q,llmll lie it, perfbllesoce, Own Lessor shall I at be In broach if th rlennanGu to RDmrionced wwlln such t1114 (30) day parfal and dhdl'Cw(Mr dlilganty firmuad in hxmpleGnn. (b)Perfamanae by Logan at Behalf of Laaeor, In the want that nelNer Luator nor IRader cures Bald breach wlUdn Uhttly(30)days after recalpl of aald police,err if 1lavug oanurnauoed said slam they do riot dlllpently pursua II to comPlaUon, than Leeds a may eloot to curd,cold breach of L-411 'a expense and oaeet awl Rant an amount NOW to the limaler of we ntcnt'hb Paso Rout err the 6arurtw RaPoslL, alit to pay an ssre:a of such expense undor prutust.heaving Lasaea's right to mIntbprenmimt ham Laraw. LDleioe shall docurriont Ole cast of said curt and supply moll docllmantr+Gon to Ldilvx, 14. Condsrrmatlun. If the pmn-jeee ix any portion thereof ore taken Under Ulu power of eminent domain or sold under ttw[)neat of the exeteiee o1 sold power(Wfec'dveiy"Gonggimiatlon'1,tills L.oase shalt tetndnsta on 1n the Puri bkern au of the dale 010 condemning aulltaity hakes tide or Poasasaion, ,,N1ld)avu brat oaura, If more Ulan tan pe=rd(10%)of any bWlding IsCi of the Pismloas,effects ilydn twentyilvA p►rant(25%)of Uhe land area portion of the PtomI6O811of occdpWd by any bulldlw,Is take(1 by CundbmnabaP,Lessee ma;fe,atLaaaaa a aphon.Lobe exercised in wilting within ton(10)daya Affar Loeser shall have given Lessee wrllien notice of sOoh taking(or In Uho absencor of ehrhth noOoe,Within lots(1B)days altar Ole u3 ndamning adlharlly ahaU have taken possesalon) binitwte ode Loam as of Ulu dote the randernniflg outhodtY-lakes Stich PostearJrn, If Less" does not lemrillate this Lease In ziacordanm with the feeregotng,tide Lease shall rom tin In fWl!ores and elect as to Ih0 WOOD of the Promises mmelnhq,oxcapt then the Haas,Rent&flail be ,educed In proporuoo to the redUcUon In uVllty of Dar prmhlses calmed by sudi Cend�atnin0joh (:end❑mnadnn avwrh)s arltOa puynwnls shall 6o U,e ptraporY of Leaamr, whaNur sucil owdrd shun tin ronmh ea e,mponsadon for dlminuUdn In valve of rho laasohold, the value of (he pert iti or nor 901,Wanco damspes, Provhd,,�r, Iwwevar, drat Lessee shall be anUiDd la shy componaota, for Lessaa'v ralaoaton axpenaas, Ies"of busetaes goaihw and/or Trodv Flxurtrs,MMOUI rtrgtrrd to Wholther or not ffilm Leow is lormdnrol d pursuant to DID privisinkm of Fits Paragraph, AR AlUrratYm and Utility muthRalimfq made to Do Prrmbses by t.esa,a, for pur"Ins of Condomnaton only,shall ba coridder i Via property of ere Lassos and Lossoe uhall De en(1(I20 10 any and ell wn"penratlorr which tx payable Ihamfor. In Ulu avant that thla Lease is not talminalell by imaan of UIe Cgndbrnnatow.LeAu r shall ropalr any damage to the Pfemisea caudod by suds Candonvwdan. 15. Brokns,pall. 15.1 Additional C❑Inmisuion, In addition 10 the payments awed flussirant to Paraoraph 1.10 abovit, and unleaa L"Llor and the Dro i olhtmwilo aordv in writing,Looser agiolau Had! (9)if tgssho mxenlaaa rely()ptlon,Pry If Leaman ac4lihBa any dUhis in the Pr"knike of otwr prs,mious uvmsd by I muir arxi located within tip mane,Protect, If any,within which the Prerhisea is located, (u)if t.nseao rwrnulne in PO"i lrrion Of Uw pounce".with the wiuem of Lo"or,after ilia to tAi anon of this Loaw,or(it)U Brio Ron'le Imroaeud,hNhelhar by bmamnent or Dra"Oun of An esratadon clause hnvin,Uhen, Loaanr shall pay HmUely a fat In ar:curdanca WILD the schedule of sold Bmkem In onust atlhs time of(her execution of this Leade. 16,2 Assumption of ObIlpaUonr. Any buyat or InnePorea of L.aaDIP7s interest in hits Lurie shoo be daantod to have asaurnad Lki"Oea ouUmaUun horaundef, Each Braper shall ba u veld party tierlelWery of she pmvismne 1d wmgnaphi 1.1U,f 5,22 and 9i. If Leaatlr fails to paY io n EmKor any anlaunu duo ve and tw COmoolsot❑(1e porfaeJmt to Unto Lease when due.than sudfi amounts shall a=lm InlereaL in ddrlilkan, If Lessor faits to pay Shy umou ils to LoenoD's bmkor whin duo,l❑asee'o Bmkot may send wale"notice to Luria and Lwaue of such(anima and if Letaor fait¢to pay such amarmis wttdn Len fit))Jaya otter said nolim,Leaddd shall PAY said MORA a to Its Broker and,?faun such amounts apablal RsnL In"Ilion,1,41 s Rroher shag I» doomdd to Up a thud party banangary of any"ilmfealon zignaemoril entered Into by hsnarof balwepn LaLaW ant tzsivll 01MfBr. 15.3 taaureaennalioru and 111damnlUaa or 9rolcor RefadobahlpA. Lemon]and Ltssa estn rep'Nenl and"arrant to the outer anal it rat had no deallnNi with any PCPoa, Mil, broker or i nitor(other than tie amkam, If any)fn connection Will this IAasa, ens that no one Other UUn 11 1Hli1 f113111ed Paoa9of lT InIUaLs ^, I=Reel : NEII_ AHEMBERG FAX N7. : 94194996413 Fah. 11 2002 05:13PIll P3 GFINT BY: BURNETT DEVELOPMENT; 714 544 020,'1; FED-1-02 4;34PM; PAGE 17120 SENT V ( vLC COMMM'TAL; 760 325 INN; FED-7-1)2 2:5APM; PARE 17)2n thokara In cnuded to cloy ocinunfaul❑n Or Mdeys fact in connection Irarawftr. Lessen find Lessor do each hereby agree to Indarmilry,prefect,defend arnf hold the other hanniesm free,and agelnsl imbillly rat comparwVoe w chmlQ"whloh may be iaQVned by any such unnAined orohor,tinder or omen surdlar parry Hy raa6❑r,of any dealings or adl❑ns of Ole lonmenifying party.Including any Deeps,,srpa,wae,and/or attorneys'loom roos❑nably Incurred w101 rupars&wro e. 16. RutopPal carldicohw. (a) EuJ+ Pare, (all,"RrmYrondlrrp Party")shall wirhb, Ion (ill dare east writion nasw kw ate otter rarly Mo "Reghwattng forty") exomle. arknowh0go mnd dailvut to lee Requesting Pony a ptaNmunt In willing In f❑ml alnlllar w the 04n meat uarent-C41oppal Certificate" form thJ UNI'lM by Uha fvnadoan hnSuautgl Real Eslate Assndaton, plus such addltionll infwrrwlun, axtAnnaOdn and/or alatomanfs act miry bit reasonably fequa■tod by m,Roquoeing Party. (b) If Diu RuaponArig Pertv shall fall to exacuto or deliver tine Edluppel Gadticate within ouch Imp day,period,the Roquasinq Party may execute,an Estoppel Cbdtficala sWilij thaV. (i) use Lrul la In full !Drain end Mtfoot Wthdut modllimUon orolipt as may be raptesented by uw Raquoa0ng Party,(II)llteln am no uncured defaults In the Rmqumadno Party's pdrformanee,artd,(UI)It Lemmor is the Ragw5tng Pally,Fiat more Ulan one more h)i Runt had boron paid in advance-prnspadlxe flumb"kin;and may rely upon the Requeotow Pafty'a Lutappei r nrtdcare,and die Rampondfrio PYrl, shop tw estoppsd fnxn donyinp tin uvih of era tidy mAlainmd in Bald Catuficatc (o)If Lko eor d")NO(e flnafire,mbrarim ur call the Pelnnt s,of any patt thereof,Lossse and all Guarantors stall deliver W any potential larrd it or purthieux dusi}gfeiod by Leader ouch financial slalanbnts na may ue maaoimbiy nqulfecl by xucb letideew orpurchasar,Inonsding,but not umltad to, Leasep'a ananciai utenarrtann for 010 past Ones IS) yeans. All Both analwial xraldmenta shall bat reumtvod by Leeeor and inch fender or purdwaer In wnhdgnco and atoll bo Oiled only for the purpogpP eosin Mitt faith, IT, Dollnitan of Lessor. The term"Lessor"an road h1efth ehai mean um uwoar or uwnan lit tie tie in quoaGorl of Oho fmo VUa to Ott Plamlape. of, It Ulna IN a eubloase,of Ulu Losgoa'M Moonlit In the pew laasa. In the ovanl of u lgmwtaf of Lesu&%pile or In)oravt in the Prifnrlesa or Oils LOA",Loouor shah a°Ilvor to lira Iranakmo of aasionaa(In outs or by aediq any urm{wl Sacuriy lujMil held by Lessor. Cxcapt In;provided In Parooreph 16,upon such Wnsfcr or a•*51[leinotd and delivery of tho Security Unpoalt,ad aloresaid,the prior Lancer shall be regevtd of all Oubigly wile reepuol to the rrbllgations andrur Wvenanls en,to, tau Lueem tltcreeller to his pmfor nsd by the I.mcaor. Sublect to,the foregolnp, Ina obhantiuns andlar wvwwhtr In Hill; Lariat W b: perlurrned by Oil, I I:asor s,bau Ue 01019 ally upon Ole Lessor U beeirtatrawr d(raned. Norwtdiauritdlno Phil ahnva, and aPLQact kr Iba fxovtalona of Pnf mufupb 21)WOW, the alpine)I ussur uidar this Lassa,and all aubsnctuac t hddera'A U»L- kle a Inturost In Yea Lease stall remain Yabb Ym1 rsapvnslble wig)regard W ate potonUal dullas and IIJUB006 of Lessor perfaiNay to Haurtoua Suhntarl As oullited In Paragraph B abase. 19, anvarablllty. The InvaPility of arry psrnWall of this Laasa,as detetmined by a courl of usryhmNniJu/lsdltinn,Owl in no way enact Urn valldily of any ollor PrOA610n Waal- iU, nays. UnWes MorMae spoEito611Y Indicated to Oho❑ rifrery,Pea word•'dairy"as Used in this least ahult nwan and rafar to oelandar days. 20. Llmltstloh on t Iehlllly, b'ubjacl to(he provlolam of Paragraph 1T above,live obllgatons of Lessor under thin Londe ip-mall not oonethda pemonal obigpiono of Laasor, One Indvidual partriara of Lenpor or Its or UlWr IndlMual 0aftwol, dlrootors,ofil ut hapahoidark, end Lassa shall look to DO Prerniaea, and to no other Wools a I-rasor,fur the se6atadton of any UdbOlty of Lemaor with follim l to cola Laaee,mid mil full soak ramur m 2Oalnst Iha IrldMual partnara or Luaaor,or Its or their Individual parMoro,dtrQQWro,officiate or aharaholdrue,a arty of thUW perwmui""115 for euah satbfaaOon. 21, Tlnte of Favorite. Time IF of the eeasnce wrlh rrr DW to Old patfolmancq I7f All ebllgatbne W be Partamed or observed by the Partial order Iris Lease. 22. he Pllor or Other AgrootmIlls; Broker D1061mor, The Lease MriUno an adroamanla bohvoen the Partaa with roopoct to any meter menuonad 110MR.and Ila otter OW or carfbsnrporlstl agraatfmnt er underainndtng ahxtl be erhoogve. lessor unit Lossoo each represents and warrpnta to the aruvets chat it has made,and is rely(nfl suety upon,Its rxn InvaalIPAIM an 111010 nawle,quells, cthareobor and Marlebil reapondlbil(Y of 61e olioh Party to this Laoto and as to the AAWfe,quAIN and chaeactar ar Pea prarrdaoa- BiNrnra have to ledparelblllty vAOI rospeet thanata or Win respect to any tlefuull or❑rxwiclh hereon by either Perry, To ri efellty Qndhmding ewurl Coals and Afmm'iyd 10"),of any 13rukaf with rwDact M 11000W tlon,ox"enba,dafivary or aafkof tiro o by either y elth rx Lagmae utxtor lets Leases or shy amendment a i*niliflcaUon horeto shall be tmlbxt 10 an arnxnn It up W the tw reoelvad by such fitaer pulaaent W thin!.cede;provided, hemsevve,that the 101egaing Ilmltatlun u�t each 9rokol'a eahlllty shalt nut himuppllCablo to Any pro"nagugdnca or wll)hiI mlamrtduu of such ttrokor. zl. Notooa. 23A Nolled RequlMmenls, All neyous requited or pemtitled by Us Londe shall be M willing and may bat delivered in pnrsan (by hand or by courier)or may be eonl by rat 11W,MkIlad or IayloWred mall or U.S-Poabal$oNVta.Exptams Mall,with patiagn prepaid,Or by(aCelmge Iron mlission,and ed In a mehoar&DOrleed In tl iu Parvgi-aph 21. The addruoaea Mine adlatsxht to a Party$slunelure on this I1nse uhall be doomed culNdonlly given It nery shall he that norty'a a Melva to dallvary ormaiGnri of note". Ether Party may by Nirillen nolla+to the upshot speGry a dlfferonl edclrwa for mice,axeept ti,et upah Loaaoli s taking pn5zk%%%t h of the Promldes.the poll' w shall conattluiq Lncapd5 addli se far noaco. A copy,of all nodes to Lorinr shall tdI Mgcuhendy Lransmlued m ouch party of parties at nuoh addroase5 W I.mscnt may ffonn Oma in t)nre haruallar dasWille in wubng. 23.Z bolo of Nat{cat. Any mubca sent by rrrgletnrhxl a cartfied rnnd,tetum rncetpt roqusoted,shell be dddmed given m1 Ohe date W delivery shb m on rho rooelpt nerd.or If m doniery dale Ie ehoVID,the poelmak Ihfugen. I1 Want by nhgular mist Ue nhllea seat bat dea+ried gluon fatty-might(dQ))tours ntmr the wm9 la uddiacmud ate nsuluhed he,dn and "W will MIA00e )repaid. Nogfa� delivered by UDltad Statute Exproae Melt Of OVemlghl cornier Deal ghwrenroo hot day delivery otter bo donnhed given hv.nb i❑ar(2b)h❑i ns ants thavety of Drill dame to Ore Plntal rervfoe or dourler, N❑eoea tronsmited by tacanris uanamishar,or similar means shag toe deemed dallvQW1 Upon telephone anadon of racelpL provided a copy la also delivered via delivery or malt. If rages I$ratttved on a 8at ay a tinlaY.wid tegaL hot".it shall be deemed ro udmoelved an bin nett buelneas day, 24- WAI lore. No vralwr by Lessor Df t a C1 4auri u 3re oh of any term,eavanarit a mndlUcfi bored try Lavifee,steal)be deemed A WOW of any other mtm, wvonsbt or c9ndlton haluot, or of any,eubdaquAM Befenl(ar 9Teadh by L"I" of the egme or of any otfler temp, oltheh3aL or wridOion Inxoof. Lo"Cra oondehl to.or approval of,any act shag not be deemed to rasher unrrecesma.I`the obtaining of Laseufa Daman[to,arapproval of,any subaequbdt of slmHar aci by tMIM. or be carubuull as fie basis of an estoppel 10 enforce lhu Wirislal or pl'oviglOrla of this Loam raqulfing BUch cataonl. Thu shall not be a WiI o1 arty Default or Greaeh by Legal). My payment by LeetMa Inlay be aaxrptsd by LMuur on o=ulti W acroplenco fit Renl by Lassa nwoles or damages due Lessor, noIWlh6tanding MnY qualifying dlatanhants a Medlullas madatby��L❑a h.io situ Omo ntdaposltctof due�t��n and/or oandia❑no shall be or no Force or effect Wlhetaoev+r unless speelfltatry agraod k If, U Y 25, R.acordlnd. 61lher Lector or loosing{flat,upon roolueut of rile other, ekeaile,nrknowledoe and deliver W the others short farm arapwrandutn of the Lauuo felt M<xadlhah pulposcs. The Party rttqusaling recordation ahail he raspohalbio for payment of any fees alrlyieaMa Ihstala. 2a, Nt atghl To Ruldnver, 1-0—hue;no right to retain po sse,21on of the pnlmieee or any pall thereof beyend the Migration or tmrminmlon of Ih4 Leads. In the event mat Lessee hdde oiler,than the Bam Rent shelf be Inuoased la Cina hundred fity poruwnt(15096)at the Baisu Rohl appNCabb durtng the nhonUt Invnadlafoty pnhalding iha axplmllon or terrnlrlaton. NuINItf rAmbd fall herein shall be owillfued ate obneentby Lassa any holding oar by Leases• 27, Crnnulutve Romu4lso. No remedy Or electon herourldar small bo doomMdl exclusive but shall, wherever paalble„be arnwlaOVM will all Quiet fonardwo al haw Of In equity. 2a. Gevo Bets and CondItlonn; ConL*,F, ,al of Aingf,and d p am 1911 an' of edb Loadonon of to Ulu f be gko only or and shall flat be rorvoidorad a part of fined by Leaeeb era not wvananlr; and rundlllorw. In Dq,S nnmm�tcx 0 a singulariaw�ulgl Induce Pre plural and a wtvvorta This Lowe sell col be cone rued ea if Prepared by ore'of tho I auxin, whenever required by L the Padlms,but ralhur accord(no to Ina fnlr maanlnU act a vdtote,w if bads Padime had pnepardd it. euouwaoa aM s aale ns and be 2a Wilding turfed; choke or Low. This t e a ahall be binding upon the paftoo, their personal repreoontatyes, oovsmorl by(he laws or the Slink*In W ila the pebtrik m are located. Any 1160250n between Ulu P"Ifies hefeto oam'sallog Otis Lease shall bm inLtiated In Uta cumly in which the Premises era lorded. 30, subordination;Attonlmanr,Non-pleturbanG, deed of bull, 3d-1 8ubadlnsUon. This Lassa and Ony Option platted herebywiall be subject and plain loam O any ground(tend mortgage, or odtsr hypothecation or eecurlty,dovine(Dolled ilt ly, "Sscurlfy bavlcn7,ffQw oY haahater placed that Hit tea d of any La any end all advances made on du aemirlly Itroreof, and to all renewals, madlaaataree, end exlonsiona thereof. thecae Aprnae 1ha1 Iha hddare Di any audl SOWf14' tiatd❑W (In life LAes4 rogoinar roiorrod ' Iladllry or obilipr n to peddnll Any of me oliggadons of Leaaor u Iri nder s Lease, Any Lender may to ate Leaso(a LeM1er`)atoll have n0 91W haV BadgliO aurhLeone boundlin na shaYb Opo\aned PdrN'fa ation granted rlufh Smartly viefe, roLWUor 0 the 000 of ietagifing the ercL011vp daleenW thutdocurrta�n LtntCul Or McordhrMnn her�aol. Jo,2 Atlum oils*t. 11 ha 0l I❑Iha n❑tMlQlur1111 pIWIMIane of Pi rafyafln BUM, LuMaail Moraoe to ahem to a Lender w any 011W, party WHO In.gvlf6v OwneRlifp of fro Prnmldou try reason of a foreoloeura ore 3eo.nily liovfoe, ago Wier In Ills event❑f sUuh romclooure,Emil nmv rarrlmr shall not; (I) page 0 of 11 ' CA1Y\r 4TPJlr/"Ya N.,n"r •-_�-r�_.�r�.a.._,..._,u...,l 4..,..r+ non...nUJlnr aC\"uCh FRODI : NE I L �At{ENBERG FAX 110. : 94134996413 Feb. 11 2002 05: 14P19 P4 SENT EIY: MANETT DEVELOPMENT; N 544 0200; FED-7-02 d:94PM; pace ier20 ENT BYI LYLC COMMEROIAL; 700 525 1689; FEB-7.02 2:57PM; PAW 18120 be flable for tiny ad of omloWun of any print uaasm or w1th romped to ov■nla azurung poor to acquisition or o'miDrship; (II) bo subjeol b any olkdes or defariws which Losses might have wiainet any pdnr lowoe or(19)be bound by prvpsymunt or more than one(1)umfwa rent. 10.3 Non4)IsWrmsn". With W;Pea to Seoudty Da0cas anbrad Into by I-■slor aneruhe Mxucutlon or this Lease,Lad000 t subordthaUon of this Lnaeo shall be auWact to receiving a coardav Bally lvaconaW■ non-dialutbaaw agleemonl (a "Nun•bI lturhAnc* Apra■merr) born me Leaader whlcra Non niatumance Agreomont pruvldea that Laspa's Paeaeaala)of the Prvailks,and Ids laoee,including any opllona to exiew the loam heavof,wet nor be dlswruwd oolong as Ldo:gaa is rim In Brasada harao(and aHomc b U+e rouatd wvrrnr aF Nha Promloa■. Furthsr,wlthlrh tilts(eo)days sitar t,a+aacugon of Ihls L ilo,J- snr shall use to cominorcially lumaxmhla off"10 obhlna Non-0lN;iW0Qrxn AgreramaM from"hoWar or anyPn-malatng Sorority L,-Aoe welch as oaNrod qy tits Prnnhlaos, 1n b1a evsnl that,LwaDt la unable fu praxYldO)fh■Nrrh-Dllrturb■nor Agrnamvnl Wlmrn Sold vfxly{hod)grrys.tithe Leaeaa may, nt Le,sev'a option.dlrncliy,contact Lesseri hundorand Attempt to negot ihi for ton ax*wllOn and d■lfvery of a tdorr 0isturbunw Aproemem. 30,4 Uff-ExecuHnp, The agroamantc conlelned in this Paragraph 30 :hall to elfacave vdiflout d,o e"allflon of any Wrthor dorsrnonlu; providuf,hrrwavor,that,upon written roctissi Gam LaLsor or a Lander In m allidion wNa a Nato.Unaarrino or relhauneing or Ibe,Premises,L■sass■rut Lowor shall execaul such further wriinge as rnaY ha I'easonably mqulmd to separately ducuralanl any aubordinnllon,atlomm lit and/or Non.0lstu(banoe Agraenaent Provided for herein. 11. Attorneys'Feev, It any Party or Broker orinpa an action or prnandiny Ih'lib ing the PrantiMus to anforce the tormo horaof of W declare rfphte heounder,tin PleMllnp Party(all hereener dagnrxd)e1 any such p,uocvdehy,Arlon,or appe l tlattorn,ate all be antluod In maaNnnbla ouarueye fuea, umch new may be se+ardoO In me Sallie sult or rocovarod In a&aPwaW suh,wh..thar Or licit Much corm or PnOeadinp la ildmood to daaicio l or landam®rit The loan, "Prevailing Party" shall include, without Irrigation, a Party or Broker who eukwlanValfy eblalns or rkbals the relief■augh4 as Ith► 0000 rally W,. "i or by Wrnpr,Nruse,aaltletrwnl,ludgnten4 or the vbandunrrwni by an,other Paray or Broker of]to claim or def@ns i. 71no sltoaaoyd Joan award shaf nat b i maipuled In anCOrdance with any court fen schedule.bill shop be such■e to fully!Wmbursa all aUWnaye't—rraaonably Ineu"d. In addlerni,Leeson $hag hu*nttlod to altomays'fees, msLs and expopees Instilled In the pmpa-auch and aorvini of rakes of Rel-auR and mnud4ltans In connection tMrowth, whether or not a lopal adlon to sub queoty o'irnmenoad In connection with,%ch Qafaull or raaUltn9 Broach 32 Lausore Access;Showlnq Prannigasl R.apativ. Lessor and L.aasor's soon IN shall have the right to enter the Pn.miaas at any Roo,In th■ease of an enmrouncy,and OU3erW2N at ruaSOALIWo (Imes for the purpose of ahowing Hw *sing in proameolre purcha&wa, l.n,da , or looses, and rnaklnp .aril olmiatlono, repair@, thprovemeaw or additions to to Pren xav as Insaar nary deean neOeaNary. NI Audi RtWIIIoa shall be without abufwnwnt of Met or liability W Lessee, Le-Saor may at any gain Plate on the Premiser any ordinary"For i4ad■"signs unit Lo,:xar nay cheerio the Iaa(ale(e)moneu of the mull Ihoroo(place on Ilia pri a ho4s any ongilary"For L"we aigne. 1- ac may at ally Hall)plow on of about the Promises any Ordinary"Far 3ubla.ac"Vial, 33. Auctions. l,oaaau shall not i;O„m,d,nor pur"!to be conducted,any auoijan upon the Prumivas wMand Lsasnr';prior wrilhen consent. lessor shalh not be oollgatcd to exeMise any alandard of neuaahable"so in dabmeung Winthhr to Iwnrul an auedon, 3•L Signs. Exwpt heir ordinary Tor Bubleasa"alons, Leased shaft no(pteee airy slpn upon the Prern"isee without Lsslise4 prior Wlltton consent, All slpna must canpty with at Appilcaule Requll'Pavants. ' is, Tsrminaflon; Monier. UnIM cpoclfloally staled dlherwloe In Viling by Uiaeor, the voluntary or other surrender of this Lsaga by Lt+agau, Die nwtu lI a nalnabon or cancellation hereof,me termination haroof by Lasearfaf Bwoll by,Lactga,shall all mabeallY tarminete pity eublDaae 0r Ieaser"bile in the Prenimes;prOVided.hoWuve[that L OSMiff may cIpGt to contrive any One or all mialing uubtenancies. L,oal nee(allure wtlhin%n flu)day*following any such event to elect ro the aanuary by written notice to Hie hold*,of any Such lesser 1041Ml,shall combiube Leader's eleation to have such bVOnt Waled la Ole(urminalion of tiudi inherit. ail, CQiaf n 1. Except as otherwise provided heruf^,%s erovor In kills Lease dig;xnaa t of a Party Is requlrod loan sot by of for the ether Panty,such cons ehl eholl not by unreasalaMy witihald or dolayed t.esaor'e ardual rmt&onabto cri@ta,cod o,peneee(induding, but na(Ilntitad to,ardaih+cts',aUwney9`, enoln"W and othor conhsUlGnlN'tees)picuoed In the mnaiderellon of,or reisi onau to,a request by Lassos for any Lavacf consent,btcludthp,but not DOW In, mnaanla to at, asslgrtnpnl, a aubleWnp or fie Prasenw Or use of a Nazardoua:Substance- shall he paid by Leacae upon 10C' t of tin Jnvuca and aupl101Ung docLlmaptaUpl rhvmmr. LOoaor'4 mnaont w eny ac4 asnlgnmaen[at auolat(ng ataall not aonlitituto an ad0aatded9mgnt that no l)ofaldl or Bhwaria by Lwaou of this Lou"exlsts, nor shall ama♦h consort be doorned a wet,ar of any then a iffung Ontauft or ar^ddt.axcepl es may he othErnfde apoollloally staled In Werio by Leeear at rho none of ouch wnaonL Ilia foilule to or heron any podh,elar oondlton to t6VSO's cdncenl shalt not fxsdude the Imposidon by Lessor tit Van Hate of oonsvnt of such furtur or Other c andilu&ia as are ell'n remonaDle with rrrferenea 10 the partcadar matter forwlaldl consort Is b.lnp given. In Ulu Ovsnt prat aiarar Party dleagn=ei with any delsmtlnallea Inada Qry the Amer harourlder and roaaonably rsr(uosts tie reasons for surJt determinetrm,she determining puny shall fumkh Ito reasons In writing and In moonfwMla detail within ten(10)buslness dap(allowla4 stictl request. JT. 37A ?oY. gw 37.1 cutlon. ThD Guarantds,iF arry,shaft etch nxararm s guemnty In the Joan mpsl mconty Published by Ira Amallran lnduatnal Kull &sWlu AmodaUon,end each ouch Guarantor shall navy the Same Obllgatune are Lassen under DIN Lease. 372 gadaarll. II shall cof-I a Default of the Levees If any Gua.amlor tuts or refuses,upon request to Provide: (0)evklefave of the WWCVU 0 or Hie austerity,Including the elltharity of Ilia party atgning an GueraMw'h g behalf toa o ORIOR (Jua(sntar,and In the c po cola of a c« tato Oasr-lit-a cerdfled Dopy of a maulbuon of Its uoard or a ileelam autacrWilo the rnakbg Of ull ly,(h)c+manl finenual etaWmemis,(e)N Tenancy Sla1e1101%Of(d)wdtton mnnurxu;on dial toe guaranty Is atit 1n eff%C-t• 3t. quiet Poevesalon. Sulbuct to peymant by LeWea of to Ronk and parfmhriance of all of the rnven■,e P wnmtrvha and he l a n)l 00 Lessee"'pen to be ob*wwd and parforrand under Uilo Lo"e.Loose s shrill have quiet posesaalon slid dulul onloynionl of the Proml*as during the lain hgreal. 39. Options. 39,1 13e1"lnfll0a- "0ptfon"shall mean; (a)the dghl to aytand the teen of:or follow this Lease or to extend or renew any kni ta Vol Lessee r tine on othgF properly of loess,(b)the 11ph1 of trot rMuuhd or first niter W lease tither the',Prolydaes or ofhaf ptafwrty of Lseaw,(0 9 rlytd of grill refusal 10 purdhsss the Prsmlgea or oahar property Of Lessor. 39.2 Japilme,Personal To 0aiynal Losses. each OPgOh gmnlad to Leesaa In this Levee is p ssessInglid la the original Leaand, and cannot be essigneo❑r ruenriaed by anyone other UM said uriglnal LDsoes and only while no ddj)hlal Leaeea 19 In full peesnsafOn of the Promises and,1!(equalled uY Looser,With Lessee codifying Halt Lomeli hw no Intention of Htareaftw aaalpMng or sLbloltng. 9-3 Multtph,Options. in(ha event that lsssga hat any rnultlplo OpUblla to extend or meow this Leave,a later Option oamnal bo e1(er0lsed 3 unities the pdor OPUona here boon vtllldlyaxerdasd. 39.4 131fect of Woolf on 0001VAN• of any nPtice of MfOug and (a) Leases shag have no digit to rxerdae an OPUrn; ll) during the period eomhwnClnq Wllh tiro pMnfl ng the oondnuing unVI said DoNell Is ourad,00 during vhDie tho event that Wa Any g o has�bound9lwino Hiroo 1ul 1)or nnae a to aolfi x of aDparma 14afaulven �e��s o" orlNraul the thaws L%4011 Is Ia Braadh of'Ilia Lhasa,or( ) DOIeuIN are cured,during the tWolve(12)fraonUl period imnrod12tdV precadlnu Hie exeadao of the Option. lh)-11ae Period Of Una w1Wn wliaeb an Option may be exercised shut(Itot be ghdanLlod ur ordarged by was on di LQyC4V s inability to a,rNdso on fh,lion bacauaa of the 1lfoylaksm Of Paragraph 30.4(a). , (c)An Option shall Lein h"'10 and be of uo further hence or uhfecl,nOlvdlhslarldtng Lessee's due anti tgthely eweftlaa oft l OpUa1.IL Sfax audl exudse had prior In she WaIRIa)eomenl of the extonda)Non, (I)Laseau falls to pay Runt for a laaifed of thirty(3111 days agar g oiloln Iz.nt bac 2)01 dug (wlthool any nnaw■Ity,of Lu"ur to 91vs ROUCA wm■ot),(it)Laseor Dives to Leauee thrtie(3)or mole nutoea of Soprunle[)Otaull during my Inelva(tY)rnamn psr4ou.wheuaar or not the Oelaults era cured,or(it)if Lessor crmaplls a Broach of into Lease- ao. M cif of pulldlnQs, If Uto Premis0s are a part d a group or butdlnus oxhpctod by Leeaor.Lasser agree&ghat it vdll observe all rau onabla-rinse era rrpulatiu,v.uNrh Lsestr naY matt'from ems In firm for the rryAnpgenienl,safety,and mie of geld PmIlOttasl,indudlnfl uw Wia sPld u)atdhn=v&of rho and tMJ .rid Including the parlu y kiadinp end unloading of v*hlolaa,and shot I seism veil pay Its TWr share of O0narnon aupanoec Inaned s, cahMCdan ther"Mui. 41. Security Mousur'es. Lussae horsily ecknoaviadgha thvrhotaoave�rl tpoaprolvv-ides r Lereasedeaaaa�ulnea ll tail citaeponslb)fdy for Ulu d aOrWA prolaotonor otlamir o( the security rneaaurM , sad that LAaaOf Shall have no obllga•fromhater this0i third Partial. Paaarileec,Leanne,its Meenta will inNrdes and hair v^dpedY 42. R■sarvadone, Iweaor reserves W Doefr ter FiDht Rot^ame to final.to grant,P grout the cement nd foloictium,go la�asi u do ui,such lit,aggortm,fIghrscdond dadloaone that LtIN" deaah&ngcrosgrY.Ir t ro t Ili Uae01f1Preiintwii by Lome. L.asrt agrees to sign any docuhtonts raasunabhy raqu"a f by rnapo and restictala do not unlaoaonobly Ln ,ot to Aner sae any sudr ea.anhent fight,406"tkxr,map Or rssvScfaonV, ��I�, Pugs to or It Initelo ■Aid V aTMA-yla'aF ___ aelNatn ' A • �RDN : NE I L nl•IEPIDERG FnX 1,10. : 9194 9964 1 3 Feb. 11 2002 05:16PH PS SENT 9P � MMIqq ` ) ��4 �� ; ��-7.0� d:35PM• : PACE 10/20 IMT VY LYLE COMMERCIAL; 760 325 1000; , FES-7-02 2:50PM; PADE 19/20 ly, Poliar ilm Undor Prclost If of any VMS a 016PUto shall Wine m to any 11MOOM o,sum 01 many to ho paid by one'patty to fire other midi(Vie provisions norwi, the Party aaalnal"url aha obllgagan to Pay Ito MWOV le 36ebAad shall have thb Nglit to make ptyn-eAr'iiirtrlor protoor and arch peyman(ahall Twl be mgurded"A inwUntary payment and!hula shall curAvo the light on die part of nW Party to lneaa/tei eVltigr rcrvvm'y a such npn, If it shall be adjudged Ihal thorn woe rlo legal obliga116n On the pan Of$414 POrty to pOy such*gM or any pan tharfof, old Party shell he WTaaer(to roamer such ium ur;a much thereof an If Wan mI 16OWly hK Wrerl to{ray. I 44. Aull,01ty, Itslum Patty herstD It a mrponean,train,Arnud ILsbldly rnmpany, pattouel t .or erallar ontly.Hour mdl W1.121 exaaalieg ally tease on bahull of noon Ehdty Iaprasonts and Werru"is that he Or shs le duly aulft - to aaooure and dollar this Louse wits behtOL Each Parry aludl,W tWri thirty (30)ddya WWr tanusel,delWer{a One other Carly saUxfacwry evldarlge of such a eddy. 45. Cenfllct, Any raMlol helwoan the printed pwvisiotw of Ifila I-osuo and'the typomItlon or hendwdtten provlslorn iehall be canbollad by ahf IYI)BMlllah or 1landwdllen provWorm dB. Offer. Proparauan of ode Leese by diner Party or Moir agent and subrulMkiri of wma la for,other Forty shall lint be deemYd err alTer to kxm to U)%other Polly, This Loacsa is nDl Innndod to be bindlnp n)(M oxeeutod wet daltvarad by all Porilee helalo. 47, Amordmfnle, This Laus may no modldnd only In wdling,signed by the PLrlt"in Into t at aha dale of Gies hlodlnmilan. AS tong u they do not materially duands Lessee's obdgalmnt naroundat.t aas41 aprons to Ttaka such ressonobla non.rame(ary midldaalims to ads 1-mo as may be reasonably regwnal by a Lender In rora.oam With the obtairing of norioal financing yr nanandriv a ma Pwr"iair. 0. MdUlphl Pardee, If mare ulna ono paean or entity It norned Mnln as Wails Lessor or Lesaeo,ouch mWaple PeAiev olrall twva)oidt and sovcvur tauponsiblllty to eontpiy m0i the lanno at Ural Lease, 41t, Medbill n And Arbitration of T11%polp, An Addendum requiring thin IAWLrEVn antLor the Aibitrdon of all d4puloe between gig Parent and/or Urotaro arising out of d49 Lease CJ Is Q to Hat altgchsd to 11,10 LeUaV. LESSOR AND LESSEE HAVE CANEF0N.Y FIPAD AND REVIEWED 71119 LEASE AND EACH TERM AND W)VI610N CONTAINED HMFIN,AND DY THE EXECITIIUN OF TIVU LEASE SI IOW YHEIR INFORMED AND VOLUNTARY COWsKNT TIIERE.TO. TNC--PARTIES HHRrx9Y Aj3REE l FUtT,AT ll,iE TIME THIS LEASE 19 EXRCUTED, THE IfRMS OF THIS LEASE ARE COMAO:f'iCW1Y REASONABLE AND EFFECTLJA'rE TIIE INTENT MID V11rtf,09E OP 1 ESSOR AND LG53FE W1T41 NE51'ECT YU THE PHEMItiES. [IR"QLATEG. NU RvHvENTATION OR NE- EN ON IL MADE 6Y TftC'ROKER A8 TO TNk LEGAL 8U"If;JF'NCY,LIWAL EFFECT,ORTA%COMflOUENCES OF THllf LEASE OR THI!TRANUACnoN TO wtuct THEPARTIPSAREUROED10: EK ADVICE OM COUNSEL AS TO THE LEGAL ANDTAX CONbRCAIENrp"Dr THIS LFJ+fiE. TAIN APPROPRWTE GONHULTANYH TO RGtr{EINANUINYEbT1GATE TTik'fi0N61T10N OF THb PREMtHQY, RAID tNVt8T1OA710N 31101Jov DE RUT NOT HH LIMITED TO: nit POSBIeLE PR611TPNCE OF HAZA1'U!IOUS 8U0STANGES, THt ZONING OF THII PRJaM1It'I,>1, THG OIURAL INTrORITY. THE CUNOITION OF ThF ROOF AND OPERATING UYbTEW, AND THH SUITAJdWTY QFTHE PREMISES FUiIF THE PREH10kb 19 LOCATEDINASTATc•OTHERTHAN CALjb,mg1A,cr:kTAiTI PROVISION& OF Tl IE LPASE MAY NEED TO B5D Trr COMPLY WITH T lk LAW$OP THE STATE IN WHICH THE PREMis GSI Id LOCATED.__ — Ilia parties huraan this Leads at are plats$lid ten Iho daau apadM1od aho�m awls Iespective nlgnalurea, i Fse7atfd on: try LE9IBC�[: ny I ESeDRI NEll, R, lino C(1ttOL A, ANENBERjG FAMTLY TRUST �E� I!IAR PftUI'BRTIES VII, LLc` DATED AUGUST n+27t-,1964 2C f�4 Hr —L c�tre�t "•,'' — By' 'dnted; C,L. Uvrnett Nmna Printed, , - Noll 1z Narndf An Hach 7 — Net Manager Tits: TIlk��XU9lde/ --•••• . cryfYe/ !�' v � i�7�y Nurno Pdrded, Carbl A. , nenbeCg_- lair ----^,,..T— Addrass:130U BrisCdl SL' No Ste. 7.00 __ .�__ 2p RN D7i on , Addrans: �. _.—Y_—.._--_---_' 'Na hart Roach, CA 926G0 476-4125 Tuluphnlle:(949) Talnphrv,a:(U4 U) a99�1;4:1.3 r Mirile: 949) 475'A9.36 Fucnl/nllr(949) 499-6413 ....-- — Fad star It)No. Fndaml ID No- NOTE:These forms are Ann rnodlRlJd Eo moat[he'o119H9)n9 reQUIraMnIS Of IQIN Und industry bocds. AIWDyr Write oc l:al)to make ours you are o9lizInU Ole most Comets Tolml AMERICAN INDUSTRIAL PF..IU-'ESTATE ASSOCIATION,too So.FfoWor Sb sal,SuHa 6411, Las AaUAW,C3401lpt9 00011'.(2.13)687.8T7T.Fax No.(213)687-KIG Page di of 11 FORM tl7P1•a-1J87'E uslsilon RGVivn 4r14a7 -ArrlfrlCsn Inddtlrlal Rsal Reatta AAy •FR019 : HEII_ 01,101SENG FAX 110. : 9494996413 7P SENT 0Y: DIIIINETT bEVELOPMEN1; rib. 11 2aa2 es:sM F6 714 544 0200; FED-7-02 4:36PM; PA65 20120 CNT BY: LYLE COWEPCTAL; 766 325 1089; FEI1-7-02 2:56pM; PAQE 20120 .I.r ,ICI f.f6r'I;LAM.61�N': — r _,...v.,..r..._.�,... isyy iq r'I. Now - .. ........ ...., ,..r ,,. - ..r„a I Ir.._....._Nl,,.lal,l.............r..r..........,,.......r.. ..._,...-1.,—............ ...r_... , _ - LT'I" �.Yi.r:ii v�!ii.iri::i;pr•�? Y _ LEASE AVI)ENDU14M N0, 1 Lvacor: NEIL R, AND CAROL A, ANENBERG FAMILY TRUST DATED AUGUST 27, 1984 l.lvs.ee: DEL MAR PROPERTIES VII, LTD pr.mlaas: 2901 N. Palm Canyon Drive Palm Springs, California 50. Salo Agreomant; Interim Occupancy, Lessor as Seller and Lessee as Huyer, have entered Into a Purchase and sale agreement for the MI property laased herein. Close of escrow for that agreement is schodulerd to occur on March 1, 2oo3. This leas;o agreement constitutes an intarirn'occupancy agreement pending c1nae of sale. 51, Lease Tenn. Notwithstanding anything to the contrai herein, the lease harm begins' February 1fi, 2002, and continues until the earliest of: (a) the data scheduled for close of escrow of the purchase and sale agreement as specified above, or as extEitlded in wdting: (b) the dose of escrow of the purchase and sale agmement; (c) cancellation of file purchase and sole agreement: or(e) torvnlnation of Lease by process of law, 52, use Restriction, Lessee acknowledges the existence of a deed restriction prohibiting a go$ station uee at the Premises. i 53. Condition of Premises. Notwithstanding anything herein to the contrary, Les4 ee accepts the Premisea In the condition in which they now are,without representation or warranty, axprocs or implied, in fact or by law, by the Lessor. 54. other Terma. Except as expressly provided othen+rise in this Addendum, all termp, conditions and covenants of the Lease to which this Addendum Is a part shall remain unmodified and in full force and affect. i I I i I I i i I i NNN F}u� I I , I Y' EXHIBIT "C" LEGAL DESCRIPTION OF LAND The Land is that certain real property located in the City of Palm Springs, County of Riverside, State of California, described as follows: That portion of the Northwest quarter of Section 3, Township 4 South, Range 4 East, San Bernardino Base and Meridian, more particularly described as follows: Commencing at the intersection of the centerline of the State Highway, with the North line of said Section 3, being 89 degrees 43'15" East a distance of 1321.90 feet from the Northwest corner of said Section 3; Thence South 38 degrees 32'45" East, a distance of 522.32 feet on the centerline of said State Highway; Thence South 51 degrees 27'15" West, a distance of 41 feet to the point of beginning; Thence continuing South 51 degrees 27'15"West a distance of 220 feet; Thence North 38 degrees 32'45"West, a distance of 220 feet; Thence North 51 degrees 27'15" East, a distance of 220 feet to the Southwesterly line of said State Highway; Thence South 38 degrees 32'45"East, a distance of 220 feet on the Southwesterly line of said State Highway to the point of beginning. APN: 504-040-001-8 IRV#26007 v7 C-1 12/13/02 R )rYl[-IIBIT "D" OWNER'S CONSENT TO ASSIGNMENT The City of Palm Springs, a chartered municipal corporation ("Assignee"), has represented to The Neil R. and Carol A. Arenberg Family Trust ("Owner"), that it shall perform all obligations of Del Mar Properties VII, LLC, a California limited company ("Assignor") under that certain Lease Agreement and Purchase and Sale Agreement between Owner and Assignor, both dated February 7, 2002. Based on such representations, Owner wishes to consent to the assignment subject to the terms set forth herein. Owner hereby agrees to forever release Assignor from the performance of any such obligations, terms, covenants, conditions and agreements under the Lease Agreement or the Purchase Agreement conditioned upon the following: 1. All the payments and obligations of the Lease Agreement and Purchase and Sale Agreement between the Owner and Assignor, both dated February 7, 2002, have been filly performed except as modified by Condition 5 of this Consent set forth herein below. 2. All attorneys fees incurred by Owner in connection with the consideration and approval of the assignment shall be paid by Assignor or Assignee pursuant to paragraph 36 of the Lease tided "Consents." Said attorneys fees shall be paid through escrow upon close of escrow or, in the event escrow fails to close, then by Del Mar Properties VII, LLC, the existing tenant. J. Assignor shall pay a $1,000 assignment fee pursuant to paragraph 12.2(e) of the Lease as consideration for Lessor's considering and processing the assignment. i� Assignor l' 1 r d by -h. Ei,,.,lgncr OI Assignee Shall pay all eSCrCV✓ ree5 as inlay be I'e�linreu by escrow in connection with processing of the assignment of the sales agreement. 5. Assignor and Assignee shall have the right to close escrow early, however, in no event shall escrow close earlier than January 2, 2003, and only upon the payment of$5,000.00, plus all current rent due under the terms of the Lease payable on a pro rata, daily basis to the date of close of escrow, plus Seller's escrow fees in consideration for Landlord's loss of rental income IRV 426007 vS D_1 12/23/02 for January, February and March of 2001. If such early close is pursued by Assignor and Assignee then said additional funds shall be paid through escrow upon close. Date: if�- !!'>av J THE NEIL R. AND CAROL A. ANENBERG FAMILY TRUST By: ' By: �" � i IRV 926007 v8 D_2 12/23/02 z As - \ PARLFI MAP RN vk- J. 77 v �- ��- fc `