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HomeMy WebLinkAboutReso 1984-11783 RESOLUTION NO. 11783 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND LA JOLLA VENTURE, INC. FOR PARKING RESERVATION FOR GODFATHER'S PIZZA AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain agreement between THE CITY OF CHULA VISTA, a municipal corporation, and LA JOLLA VENTURE, INC. for parking reservation for Godfather's Pizza dated the 15th day of October , 198 4, a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by T~;~~~~ ~. J11:;;~;(,' ~ity At torney ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ;HULA VISTA, CALIFORNIA, this 15th day of October 9 84 . by the following vote, to-wit: Malcolm, McCandliss, Scott, Moore, Cox WES: Councilmen ~AYES; Councilmen ~BSTAIN: CoLflcilmen ~BSENT: Councilmen None None None 1 /){1 , " . .':>.~. '. if'..' Mayor l~jt tr1 City of Chula Vista / J . ' I . ~TTEST/;/! /'( //{ ( /~/. / City Clerk '{'( /d~ 1/ ;TATE OF CALIFORNIA ;OUNTY OF SAN DIEGO :ITY OF CHULA VISTA ) ) 55. ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, )0 HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 11783 ,and that the same has not been amended or repealed. )ATED City Clerk (seal) :C-660 , , .' . . 0' GROUND SUBLEASE between GERALD HANDLER and JUDITH HANDLFR, and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND TRUST, Landlord and LA JOLLA VENTURES, INC. Tenant Dated: s ;!/¿~. For Premises situated at: Broadway & "E" streets Chula Vista, California ~~ \\1~ 0 , . f. f Paragraph 1 2 3 4 5 6 7 7 9 10 11 12 13 14 ~- \\1'<\3 . .0 . ,,"0 0 TABLE OF CONTENTS Subject Premises. . . . . . . . . . . . . . . . . . . . . Construction. . . . . . . . . . . . . . . . . . . 2.1 Protection Against Costs or Claims. . . . . 2.2 Landlord's Right to Discharge Lien. . . . . 2.3 Notice of Completion. . . . . . . . Term. . . . . . . . . . . . . . . . . . . . . . . Ren t. . . . . . . . . . . . . . . . . . . . . . . 4.1 4.2 Initial Rent. . . . . . . . . . . . . . . Cost-of-Living Adjustment. . . . . . . . . 4.3 Commencement of Rent Obligation. . . . . . Possession and Use. . . . . . . . . . . . . . . . Compliance with Law. . . . . . . . . . . . . . . Indemnity and Insurance. . . . . . . . .. . . . . Tenant's Right to Make Alterations. . . . . . . . Mechanics Liens. . . . . . . . . . . . . . . . . Taxes and Other Charges. . . . . . . . . . . . . 10.1 Taxes and Assessments. . . . . . . . . . . 10.2 utilities and Services. . . . . . . . . . . Assigning, Mortgaging and Subletting. . . . . . . Repairs and Maintenance. . . . . . . . . . . . . Reconstruction. . . . . . . . . . . . . . . . . . Entry by Landlord. . . . . . . . . . . . . . . . (i) Page 1 1 1 2 2 3 3 3 3 3 3 4 4 6 7 8 8 9 9 9 . 10 11 , . , , f' . Paragraph 15 16 17 18 19 \ (1 g3 ~~ Subject Events of Tenant's Default. . . . . . . . . . . . 15.1 15.2 15.3 15.4 15.5 Failure to Perform Lease Covenants. . . . Attachment or Other Levy. . . . . . . . . Appointment of Receiver. . . . . . . . . . Insolvency, Bankruptcy. . . . . . . . . . Dissolution of Tenant. . . . . . . . . . . Landlord's Right to Cure Tenant's Defaults~ . ... Landlord's Remedies on Tenant's Default. . . . . 17.1 17.2 17.3 17.4 17.5 17.6 Termination. . . . . . . . . . . . . . . . Reentry without Termination. . . . . . . . Recovery of Rent. . . . . . . . . . . . . Damages. . . . . . . . . . . . . . . . . . Commencement of Cure. . . . . . . . . . . Waiver of Breach. . . . . . . . . . . . . Default by Landlord. . . . . . . . . . . . . . . Eminent Domain. . . . . . . . . . . . . . . . . . 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 Date of Taking. . . . . . . . . . . . . . Abatement of Rent. . . . . . . . . . . . . Tenant's Option to Terminate. . . . . . . Abandonment of Proceedings. . . . . . . . Repossession by Tenant. . . . . . . . . . Division of Award. . . . . . . ... . . . . C os ts . . . . . . . . . . . . . . . . . . . Right of Entry. . . . . . . . . . . . . . Notices. . . . . . . . . . . . . . . . . . Voluntary Conveyance under Threat. . . . . (; n Page 11 11 12 12 12 12 12 13 13 13 13 13 13 13 14 15 15 15 15 16 16 16 17 17 17 17 " , 'J Paragraph 20 21 22 23 24 25 26 27 28 29 30 31 Subject Termination or Expiration. . . . . . . . . . . . Right of First Refusal. . . . . . . . . . . . . . Nonmerger of Fee and Leasehold Estates. . . . . . -Attorneys' Fees. . . . . . . . . . . . . . . . . Sale of Premises by Landlord. . . . . . . . . . . Quiet Possession. . . . . . . . . . . . . . . . . Hold ing Over. . . . . . . . . . . . . . . . . . . Obligations of Successors. . . . . . . . . . . . Trustees' Warranty. . . . . . . . . . . . . . . . Notices. . . . . . . . . . . . . . . . . . . . . Captions and Terms. . . . . . . . . . . . . . . . Miscellaneous. . . . . . . . . . . . . . . . . . Execution by the Parties. . . . . . . . . . . . . . . . . \\1 ~3 \<-" . - - - (iii) Page 17 18 18 18 18 19 19 19 19 19 20 20 22 I , GROUND SUBLEASE DATE: LANDLORD: Ben Rosenblatt, Trustee for Lois J. Richmond Trust Gerald Handler Judith Handler TENANT: LA JOLLA VENTURES, INC. 5770 Calle Miramar La Jolla, California 92037 IN CONSIDERATION of the rents and covenants hereinafter set forth, BEN ROSENBLATT, Trustee for Lois J. Richmond Trust, GERALD HANDLER and JUDITH HANDLER (hereinafter collectively, the "Landlord"), hereby leases to LA JOLLA VENTURES, INC., a California corporation (the "Tenant"), and Tenant hereby rents from Landlord, the following described premises upon the following terms, covenants and conditions, the keeping and performing of which as herein required of Tenant are a material part of the consider a tion for th is Lease and Tenant acknowl- edges that this Lease is made on the condition of such perform- ance: 1. Premises. The Premises consist of the land in the County of San Diego, S tate of California, descr ibed in Exh ibi t A attached hereto and incorporated herein by this reference, (hereinafter called the "Premises"). 2. Construction. 2.1 Protection Against Costs or Claims. Tenant shall payor cause to be paid the total cost and expense of. all "works of improvement", as that ~ 0 \ \ 1 t3 ---------.--.------.---- -----'-- ---" - --.---. . , phrase is defined in the California mechanics' lien law in effect at the time when the work begins. No such payment shall be construed as rent. Tenant shall not suffer or permit to be enforced against the Premises or any part of it any mechanic's, mate- rialmen's, contractor's, or subcontractor's lien arising from any work of improvement, however it may ar ise. However, Tenant may in good faith and at Tenant's own expense contest the validity of any such asserted 1.ien, claim, or demand, provided Ten- ant has furnisheð the bond required in Ca1.ifornia Civil Code Section 3143 (or any comparable provision hereafter enacted for providing a bond freeing the Premises from the effect of such a claim). Tenant shall defend and indemnify Landlord against all lia- bility and loss of any type arising out of work per- formed on the Premises by Tenant, together with rea- sonable attorneys 'fees and all costs and expenses incurred by Landlord in negotiating, settling, de- fending, or otherwise protecting against such claims. 2.2 Landlord's Right To Discharge Lien. If Tenant does not cause to be recorded the bond de- scribed in California Civil Code Section 3143 or otherwise protect the Premises under any alternative or successor provis ion, and a final judgment has been rendered by a court of competent jur isdiction for the foreclosure of a mechanic's, mater ialmen' s, contractor's, or subcontractor's lien claim, and if Tenant fails to stay the execution of the judgment by lawful means or to pay the judgment, Landlord shall have the r igh t, but not the duty, to payor otherwise ~ischarge, stay, or prevent the execution of any such judgment or lien or both. Tenant shall reimburse Landlord for all sums paid by Landlord un- der this paragraph, together with all Landlord's reasonable attorneys' fees and costs, pIus interest on those sums, fees ~ and costs at maximum rate per- mitted by law for obligations in writing, from the date of payment until the date of reimbursement. 2.3 Notice of completion. On comple- tion of construction of the work of improvement, Tenant shall file or cause to be filed a Notice of Completion in the Office of the County Recorder of San Diego County. Tenant hereby appoints Landlord as Tenant's attorney-in-fact to file the notice of completion on Tenant's failure to do so after the work of improvement has been substantially completed, 9234200 15123 . \1~) fL-\ -2- - - - ------- -- ----- 3. Term. The term of (50) years (the "lease term"), lease. this lease shall be for fifty commencing on the date of this 4. Rent. Tenant agrees to pay as rental for the use and occupancy of the Premises, at the time and in the manner hereinafter provided, the following sums of money: 4.1 Initial Rent. Tenant agrees to pay to Land- lord, as the initial annual rent for the Premises, the sum of Twenty-Five Thousand Seven Hundred Eighty Four and 40/100 Dol- lars ($25,784.40). The initial annual rent shall be payable by Tenant to Landlord in equal monthly installments of $2,148.70 each, in advance on the first day of every calendar month dur- ing the lease term, without setoff or deduction. If the lease term commences on other than the first day of a month, then the rent for the first fractional month shall be 1/30 of the month- ly installment for each day in the first fractional month~ 4.2 Cost ofLiv ing Adjustment. At the end of the third year of the 'lease term and at the end of each one (1) year period thereafter, the monthly rent payable hereunder shall be changed to an amount that bears the same relationship to the monthly rental rate in effect at the commencement of the lease term which the Consumer prîce Index for All Urban Consu- mers for the San Diego Metropolitan Statistical Area, All Items (t:he "Index") (published monthly by the united States Depart- ment of Labor, in which 1967=100) for the month dur ing which the lease term commenced~ (the "base month") bears to the Index figure for the month in which each adjustment is to occur. Notwithstanding the use of the Index, in no event shall the rent be increased by an amount exceeding a rate of 6% per cal- endar year during the lease term; nor shall an adjustment in any way reduce the monthly rent below the rent established by the base rent on any preceding adjustment. If publication of said Consumer pr ice Index is discontinued, the parties shall select another index which reflects similar consumer price levels, and if the parties cannot agree on another such index, it shall be determined by binding arbitration in accordance with the rules of the American Arbitration Association. 4.3 Commencement of Rent Obligation. Tenant's rent obligation hereunder shall commence on the earlier of (i) 90 days after the execution of this lease, or (ii) the date all permi ts n.eces.sary. fo.r. ..beg inn inW. c9J1. tr uc~i~n are o~,ta ~ned, or would be obta l~ed~')t u~tl the./luse/ÙY~e <h11gence. WHl.;.H- fl.\ti2 C DN\ Ý- ~ ~\ru-r- ß \. ,.., ~'V'\'-- //ß- 5. Possess i \,. nd Use;' Tenant shall use the pr emises only for purposes of constructing, maintaining 2nd operating commercial buildings, and for no other purpose or purposes 9234200 \,-153 15123 ~- -3- . -.-- ~..- ,- --'----"'__'_00" ~ :;. without the prior written consent of Landlord. Tenant cove- nants and agrees that Tenant will not use or suffer or permit any person or persons to nse the Premises or any part thereof for any use or purpose in violation of the laws of the Uni tea States of America, or the laws, ordinances, regulations and re- quirements of the state, County and City where the premises are situated, or in violation of the regulations of any other law- ful author i ties, and that dur ing said term the Premises, and every part thereof, shall be kept by Tenant in a clean and wholesome condition, free of any objectionable noises, odors or nuisances, and that all health and police regulations shall, in all respects and at all times, be fully complied with by Ten- ant. Tenant shall not use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause, maintain or permit any nuisance in, on or about the pr emises, nor commit or suffer to be committed any waste in or upon the Premises. Landlord agrees to obtain all easements necessary for Tenant to have ingress and egress r~hts from (1) the Premises to both Broadway and "En Streets, a~d (2) in a northerly direction f. rom the ?remi~e~ thr~~~..hn- t1.guous property to Broadway. r F t='<,.s~'1 ßLE ;rt,l?pl( ~.~ /~/" 6. Compliance with Law. Tenant shall not use 'the Prem- ises or permit anyth ing to be done in or about the Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated. ' Tenant shall~ at Tenant's sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or hereafter enacted or established, and with re- quirements of any board of fire insurance underwriters or other similar bodies now or hereafter consti tuted, relating to, or affecting the condition, use of occupancy of the Premises, in- cluding costs of modifying the Premises if necessary to comply therewith. Not¡lÌthct~mding the foregoing, Landlord 'i:lrr:mts =:d~ ~e'~l' ~ ~L ~l'U~"'¡ u~e :: .] is.;;uss7'i it para"rap¡' G conforms t~ 01;: ~;plìcal>10 zoning- O<'~in_n""~!,. conclusion of law of any court of competent jur isdicti t .1 ny admission made by Tenant in any action against Tenant, whe her Landlord is a par- ty thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall 'be conclusive of the fact as between Landlord and Tenant. 7. Indemnity and Insurance. 7.1 Tenant covenants with Landlord that Landlord shall not be liable for any damage or liability of allY kind or for any injury to or death of persons or damage to property of Tenant or any other person from and after Completion of the 9234200 15123 -4- ~.\\1ß3 Premises, from any cause whatsoever, by reason of the use, oc- cupancy and enjoyment of the Premises by Tenant or any person thereon or holding under Tenant, and that Tenant will indemnify and save harmless Landlord from all liability whatsoever, on account of any such real or claimed damage or injury and from all liens, claims and demands ar ising out of the use of the Premises and its facilities, or any repairs or alterations which Tenant may make upon the Premises. This obligation to indemnify shall include reasonable attorneys' fees and investi- gation costs and all other reasonable costs, expenses and lia- bili ties from the first notice that any claim or demand is to be made or may be made. 7.2 'Tenant further covenants and agrees that from and after completion of the work of improvement descr ibed in Paragraph 2 an~prior to expiration of the insurance called for in Paragraph 2.2.7, Tenant shall take out, carry and mainta in, at Tenant' s sole cost and expense, the following types of in- surance, in the amounts specified and in the form hereinafter provided for: ' 7~2.1 Bodily injury liabiality insurance wi th limi ts of at least One Million Dollars ($1,000,000) per person and Three Million Dollars ($3,000,000) per occurrence insuring against any and all liability of the insured wi th respect to the Premises or arising out of the maintenance, use or occupancy thereof, or the sale of products there- from, and property damage liability insurance with a limi t of not less than One Million Dollars ($1,000,000) per accident or occurrence. All such bodily injury liability insurance and property dam- age liability insurance shall specifically insure the performance by Tenant of the indemnity agreement as to liability for injury to or death of persons and injury or damage to property in this paragraph 8 contained. 7.2.2 Insurance covering all improvement within the Premises and trade fixtures and personal property from time to time in, on or upon the Prem- ises, in the amount of their full replacement cost from time to time dur ing the lease term, providing protection against any peril included within the classification "Fire and Extended Coverage", togeth- er with insurance against spr inkIer damage, vandal- ism and malicious mischief. Any policy proceeds shall be used for the. repair or replacement of the property damaged or destroyed unless this lease shall cease and terminate under the provisions of 9234200 15123 @~ \ (\~3 -5- - -._-----_u,--,-- '---..--. Paragraph 14, in the event of which termination the insurance proceeds shall be paid to Landlord. Ten- ant shall, at its own expense, comply wi th all re- quirements, including the installation of fire ex- tinguishers or automatic dry chemical extinguish- ing system of the insurance underwriters or any governmental authority having jurisdiction there- over, necessary for the maintenance of the required fire and extended coverage insurance for the Prem- ises. 7.3 All policies shall be issued in the names of Landlord and Tenant and adding Stacia Bauman and Frank English and thei r successors as additional named insured, wh ich pol i- cies shall be for the mutual and joint benefit and protection of Landlord, Tenant and the additional named insureds. Tenant may include the holder of any mortgage on the leasehold or on the fee or both as a loss payee; or Landlord notice of demand Tenant shall include the holder of any mortgage on the fee as a loss payee to the extent of that mortgage interest. Executed copies of such policies of insurance or certificates thereof shall be delivered to Landlord within ten (10) days after com- pletion of the work of improvement upon the Premises and there- after within thirty (30) days prior to the expiration of the term of each such policy. All public liability and property damage policies shall contain a provision that Landlord, al- though named as an insured, shall nevertheless be entitled to recovery under said policies for any loss occasioned to it, its servants, agents and employees, by reason of the negligence of ¡Tenant. As often as any such policy shall expire or terminate, ~/ renewal or additional policies shall be procured and maintained f' by Tenant in like manner and to likl~~x,tent. All policies of ~-; insurance required by .t~is paragraph.'.'Ínii~t con~ain a provision V that the company wr~t~ng the pol~ y w111 g1ve to Landlord twenty (20) days notice in wr i ting in advance of any cancella- tion or lapse or the effective date of any reduction in the amounts of insurance. All public liability, property damage and other casualty policies shall be wr i tten as pr imary poI i- cies, not contributing with and not in excess of coverage which Landlord may carry. 8. Tenant's Right to Make Alterations. 8.1 Landlord agr ees that Tenant may, at Tenant's own expense and after giving Landlord reasonable advance notice in writing of ib, intention to do so, from time to time during the lease term after completion of Tenant's construction, make alterations, additions and changes to the Premises as Tenant may find necessary or convenient for its use, provided that the value of the Premises is not thereby diminished. All work with 9234200 15123 ~- \ \Î 1i3 -6- . , respect to any alterations, additions, and changes must be done in a good and workmanlike manner and diligently prosecuted to coMpletion. Upon completion of such work, Tenant shall file for record in the Off ice of the County Recorder of San Diego County, a Notice of Completion as permitted by law. 8.2 In the event that Tenant shall make any permit- ted alterations, addi tions or improvements to the Premises un- der the terms and provisions of this paragraph 9, Tenant agrees to carry additional insurance in form and amount satisfactory to Landlord, in connection therewith, if requested by Landlord. 9. Mechanics'Liens. 9.1 Tenant agrees that it will payor cause to be paid all costs for work done by Tenant on the Premises, and Tenant will keep the Premises free and clear of all mechanics' liens and other liens on account of work done for Tenant or persons claiming under Tenant. Tenant agrees to and shall in- demnify, defend and save Landlord free and harmless from and against liability, loss, damage, costs, attorneys' fees and all other expenses on account of claims of lien of laborers or ma- terialmen or others for work performed or materials or supplies furnished for Tenant or persons claiming under Tenant. If Ten- ant shall desire to contest any claim of lien, Tenant shall furnish Landlord adequate security of the value or in the amount of the claim, plus estimated costs and interest, or a bond of a responsible corporate surety in such amount condi- tioned on the discharge of the 1 ien. If a final judgment es- tablishing the validity or existence of a lien for any amount is entered, Tenant shall pay and satisfy the same at once. If Tenant shall be in default in paying any charge for which a mechanics' lien claim and suit to foreclose the lien have been filed, and shall not have given Landlord security to protect the property and Landlord against such claim of lien, Landlord may (but shall not be so required to) pay the claim and any costs, and the amount so paid, together with reasonable attor- neys' fees incurred in connection ther ewi th, shall be immedi- ately due and owing from Tenant to Landlord, and Tenant shall pay the same to Landlord with interest at the maximum lawful rate from the date or dates of Landlord's payment or payments. Should any claims of lien be filed against the Premises or any action affecting the ti tIe to the Premises be commenced, the party receiving notice of such lien or action shall forthwith give the other party written notice thereof. 9.2 Landlord or i f:s r epr esentati ves shall have the r igh t to go upon and inspect the Premises at all reasonable times and shall have the r igh t to post and keep pos ted ther eon 9234200 15123 'f<' \ 11 (3 -7- --~-"~-'- ,-~- --- ~---------- ~-~-------~-~ . . notices of non-responsibility, or such other notice which Land- lord may deem to be proper for the protection of Landlord's in- terest in the premises. Tenant shall, before the commencement of any work which might result in any such lien, give to Land- lord wr itten notice of its intention to do so in sufficient time to enable Landlord to post such notices. 10. Taxes and Other Charges. 10.1 Taxes and Assessments. 10.1.1 Tenant shall pay all real and personal property taxes, general and special assess- ments, and other charges of every description levied on or assessed against the Premises, including so- called rent taxes or lease receipt taxes levied against the rentals from the Premises, or the im- provements located on the Premises, personal proper- ty located on or in the land or improvements, the leasehold estate, or any subleasehold estate, to the full extent of ins tallmen ts fall ing due dur ing the lease term~ whether belonging to or chargeable against Landlord or .Tenant. Tenant shall make all such payments directly to the Landlord at least 10 days before delinquency and before any fine, inter- est, or penalty shall become due or be imposed by operation of law for their nonpayment. If, however, the law expressly permits the payment of any or all of the above items in installments (whether or not interest accrues on the unpaid balance), Tenant may, at Tenant's election, utilize the permitted install- ment method, but shall pay each installment with any interest before delinquency. 10.1.2 For the first and final years of the lease term, all payments of taxes or assessments or both, except permitted installment payments, shall be prorated for the initial lease year and for the year in wh ich at least the first installment fell due before commencement of the lease term. Tenant shall pay all installments falling due after commencement of the term. For permitted installment payments of which the first installment falls due dur ing the final year of the term, Lessee shall pay only the installments falling due before expiration of the lease term. Tenant may el~ct to reduce or not to 'reduce the assessments or charges to install- ments but shr\ll pay the required percentage before expiration of the lease term. 9234200 15123 111t3 ~-\ -8- . 10.1.3 Tenant may contest the legal validity or amount of any taxes, assessments, or charges for which Tenant is responsible under this lease, and may institute such proceedings as Tenant considers necessary. If Tenant contests any such tax, assessmen t, or charge, Tenant may withhold or defer payment or pay under protest but shall protect Landlord and the pr emises from any lien by adequate surety bond or other appropriate security. 10.1.4 Tenant shall defend and indemnify Landlord and the Premises against liability for tax- es and other impositions in the nature of a tax on the right to do business when Lessor's collection of rent under this lease is defined as doing business. 10~2 utilities- and Services. Tenant shall pay a1.l charges of every kind and description in connection with utili- ties and all other services of any kind and description to the Premises, and shall hold Landlord harmless from any liability in connection with charges and costs therefor. 11. Assigning, Mortgaging and Subletting. 11.1 Tenant may not transfer, assign, sublet, enter into license agreements, change ownership, mortgage or hypothe- cate this lease or Tenant I s interest in and to the Premises wi thout first procur ing the wr itten consent of Landlord, wh ich consent shall not be unreasonably withheld. If~nant may 5ub- l~:O: ;~~ ~~~:o =t:~ L:::OC~'e' 1U#"'¡;"t/for peri- ods gnr!i'."J uithiR tÀe leacH~ tCl'H\.7I'~' .> , /'. ,/' / 1,\ I , ~, 1< ,r'¿ -.- ' , 12. Repairs - and Maintenance"" - ,l./ 12.1 Tenant agrees at all times, from and after completion of the construction, and at Tenant's own cost and expense, to repair, replace and maintain in good and tenantable conditi6nthe Premises and every part thereof including without limitation all such items of repair, maintenance, alteration and improvement or reconstruction as may at any time or from time to time be required by a governmental agency having juris- diction -thereof. 12.2 Upon any surrender of the Premises, Tenant shall redeliver the pr emises and all improvements ther eto made by Tenant pursuant to this Lease to Landlord in good order, condition and state of repair, ordinary wear and tear excepted. 1~.3 Tenant further covenants and agrees that Land- lord may go upon the Premises and make any necessary repairs to 9234200 15123 \\1~3 ~- -9- ----- ------ ---------- . . the Premises and perform any work therein (i) which may be nec- essary to comply with any laws, ordinances, rules or regula- tions of any public authority or of the Insurance Service Of- fice of of any similar body should Tenant fail to perform such work or (ii) that Landlord may deem necessary to prevent waste or deterioration in connection with the Premises if Tenant does not make or cause such work or repairs to be made or performed or cause such work or repairs to be performed within 30 days after receipt of written demand from Landlord. Nothing herein contained shall imply any duty on the part of Landlord to do any such work which under any provision of this lease Tenant may be required to do, nor shall it constitute a waiver of Ten- ant's default in failing to do the same. No exercise by Land- lord of any rights stated in this Paragraph 12.3 shall entitle Tenant to any damage for any injury or inconvenience occasioned thereby nor to any abatement of rent. Tenant shall pay the cost thereof to Landlord, forthwith, as additional rent upon receipt of a bill therefor. 13. Reconstruction. 13.1 In the even t the Premises shall be damaged by fire or other perils covered by Tenant's fire and extended cov- erage insurance, Tenant shall: (i) wi thin a period of thirty (30) days thereafter, commence repair, reconstruction and re- storation of the Premises and prosecute the same diligently to c'ompletion, in wh ich event th is lease shall continue in full force and effect (it being understood that commencement of re- pairs shall mean application for an appropriate building or re- construction permi t from the appropr iate governmental agency): or (ii) in the event of a partial or total destruction o.f the Premises during the last five (5) years of the lease term, ei ther Landlord or Tenant shall have the option to' terminate this lease upon the giving of written notice to' the other of exercise of such option within thirty (30) days after such des- truction, in which event seventy (70%) of all insurance pro- ceeds shall be paid directly to Landlord. For purposes of (ii) above, "partial destruction" shall be deemed a destruction to an extent of at least thirtythree and one-third percent (33-1/3%) of the then full replacement cost as of the date of destruction. 13.2 In the event the Premises shall be damaged as a result of any flood, earthquake, act of war, nuclear reac- tion, nuclear radiation or radioactive contamination, or from any :>ther casualty not covered by fire and extended coverage insurance, to any extent whatsoever, Tenant may within sixty (60) days following the date of such damage, commence repair, reconstruction or restoration of the Premises at Tenant's ex- pense (except as to cost) and prosecute the same diligently to 9234200 15123 ~.\\1~) -10- -:-. -----~ ---'--- ---". --.----- --------- completion, in wh ich even t this lease shall continue in full force and effect, or wi th in said sixty-day per iod elect not to so repair, reconstruct or restore the Premises, in which event this lease shall cease and terminate. In either event, Tenant shall give Landlord written notice of i~ /~n~ntion within such sixty-day per iod. ~~ .--7 ' 13.3 Upon any termination~Oj/the lease_under any of the provisions of this Paragraph U(/tthe parties shall be re- leased thereby without further obligations to the other party coincident with the surrender of' possession of the Premises to Landlord, except for matters or items which have theretofore accrued and are then unpaid. 13.4 In the event of repair, reconstruction and re- storation as herein provided, Tenant shall continue the opera- tion of its business on the Premises to the extent reasonably practicable from the standpoint of prudent business management: and the obligation of Tenant hereunder to pay rent shall remain in full force and effect~ Tenant shall not be entitled to any abatement or reduction of rent or compensation or damages from Landlord for loss of the use of the whole or any part of the premises, or any inconvenience or annoyance occasioned by such damage, repair, reconstruction or restoration. 13.5 Tenant hereby waives any statutory rights of termination wh ich may ar ise by reason of any partial or total destruction of the Premises which may be inconsistent with the express provisions of this lease. 14. Entry by Landlord. On ten days' wr i tten notice to Tenan t, and to any sublessee of Tenant in possession of the premises~ Landlord shall at reasonable times have the right to enter the Premises and inspect the same, to submit said Prem- ises to prospective purchasers or tenants and to post notices of non-responsibility in accordance with Paragraph 9, as Land- lord may deem necessary, without abatement of, rent hereunder. Any entry to the Premises obtained by Landlord by any means consistent with this provision shall not be construed or deemed to be a forcible or unlawful entry in~, or a detainer of the Premises, or an eviction of Tenant from the Premises or any portion thereof. 15. Events of Tenant's' Defaul t. Each of the following events shall be a default by Tenant and a breach of this lease: 15.1 Failure To Perform Lease Covenants. Abandon- ment or surrender of the premises or of the leasehold estate, or fa ilur e or refusal to pay when due any ins tallmen t of r en t or any other sum required by this lease to be paid by Tenant, 9234200 15123 \(\ t3 ~, -11- ---------- m ----------------- h_-- --------'----- --no- - ----,----- or to perform as required or conditioned by any other covenant or condition of this lease; 15.2 Attachment 'or Other Levy. The subjection of any right or interest of Tenant to attachment, execution, or other levy, or to seizure under legal process, if not released within thirty (30) days; 15.3 Appointment of Receiver. The appointment of a receiver to take possession of the Premises or improvements or of Tenant's interest in the leasehold estate or of Tenant's operations on the Premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary or involuntary bankruptcy proceedings, but not including receiver- ship (i) pursuant to any lien of a mortgage or deed of trust permi tted by prov isions of th is lease relating to purchase or construction of improvements, or (ii) instituted by Landlord, the event of default being the event justifying the receiver- ship, if any, rather than the appointment of a receiver at Landlord's instance; 15.4 Insolvency, Bankruptcy. To the extent permit- ted by law, an assignment by Tenant for the benefi t of credi- tors or the filing of a voluntary or involuntary petition by or against Tenant under any law for the purpose of adjudicating Tenant a bankrupt; or for extending time for payment, adjust- ment, or satisfaction of Tenant's liabilities; or for reorgani- zation, dissolution, or arrangement on account or to prevent bankruptcy or insolvency; unless the assignment or proceeding, and all consequent orders, adjudications, custodies, and super- visions are dismissed, vacated, or otherwise permanently stayed or terminated wi thin 30 days after the assignment, filing, or other initial event; - 15.5 Dissolution of Tenant. Upon the dissolution of Tenant, unless Landlord consents to assignment of this lease to the dissolved Tenant's successor, if any; 16. Landlord's Right To Cure Tenant's Defaults. After expiration of the applicable time for cur ing a par ticular de- fault, or before the expiration of that time in the event of emergency, Landlord may at Landlord's election, but is not ob- ligated to, make any payment required of Tenant under th is lease or under any note or other document pertaining to the fi- nancing of impr ovemen ts on the pr emises, or per form or comply wi th any covenant or condi tion imposed on Tenant under this lease or any such note or document, and the amount 50 paid plus the reasonable cost of any such performance or compliance, plus interest on such sum at the maximum rate permitted by law from the date of payment, performance, 'or compliance (herein called 9234200 15123 \\1 ~3 ~- -12- ------ -- -- --- --------------- -.'- -- - .- , - ,-- ---- - -- - - d- '. "act"), shall be deemed to be additional rent payable by Tenant with the next succeeding installment of rent. No such act shall constitu~e a waiver of default or of any remedy for de- fault or render Landlord liable for any loss or damage result- ing from any such act. 17. Landlord's Remedies on Tenant's Default. If any de- fault by Tenant shall continue uncured (following notice of de- fault if required by this lease for the period applicable to the default under the applicable provision of this lease) Land- lord has the following remedies in addition to all other rights and remedies provided by law or in equity, to which Landlord may resort cumulatively or in the alternative: 17.1 Termination. Landlord may at Landlord's elec- tion terminate this lease by giving Tenant notice of termina- tion. On the giv ing of the notice, all Tenant's rights in the Premises and in all improvements shall terminate. Promptly after notice of termination, Tenant shall surrender and vacate the Premises and all improvements in broom-clean condition, and Landlord may reenter and take possession of the Premises and all improvements and eject all parties in possession, or eject some and not others, or eject none. Termination under this paragraph shall not relieve Tenant from the payment of any sums then due to Landlord or from any claim for damages previously accrued or then accruing against Tenant. 17.2 Reentry Without Termination. Landlord may at Landlord's election reenter the Premlses, and without termina- ting th is lease, at any time and from time to time relet the Premises and improvements or any part or parts of them for the account and in the name of Tenant or otherwise. Landlord may at Landlord's election eject all persons or eject some and not others or eject none. Any reletting may be for the remainder of the lease term or for a longer or shorter period. Landlord may execute any leases made under this provision either in Landlord I s name or in Tenant I s name and shall be entitled to all rents from the use, operation, or occupancy of the Premises or improvements or both. Tenant shall nevertheless pay to Landlord on the due dates specified in this lease the equiva- lent of all sums required of Tenant under this lease, plus Landlord's expenses, less the net proceeds of any re1etting or attornment. No act by or on behalf of Landlord under this pro- vision shall constitute a termination of this lease unless Landlord shall give Tenant written notice of termination. 17.3 Recovery of Rent. Landlord shall be entitled at Landlord's election to each installrnen t of ren t or to any combination of installments for any per iod before termination of this lease, plus in ter.est at the maximum rate permitted by 9234200 15123 \\1 <b3 ~- -13- -.--- -.- -------- - .. law for obligations in writing from the due date of each in- stallment. Net proceeds 'of reletting or attorned subrents shall be applied, when received, as follows: (i) to Landlord to the extent that the net proceeds for the per iod covered do not exceed the amount due from and charged to Tenant for the same period, and (ii) the balance to Tenant. Landlord shall make reasonable effor ts to mi tigate Tenant's liability under th is prov ision. 17.4 Damages. Landlord shall be en ti tIed at Land- lord's election to damages from Tenant in the following sums: f (i) all ar'teu~,t§.k t:9a~ ?1J?,uld have fallen due as rent between the rff/ time of~clmina ~\\..~n~ o,f this lease and. the time of the: claim, AI' judgment, or other' ""ãJ'b.rd, less the avalls of all relettlngs and Iljj attornments and less all amounts by which Landlord should rea- sonably have mitigated those rental losses. 17.5 Commencement of Cure. Notwithstanding any other provisions of this Paragraph 17, Landlord agrees that if the default complained of, other than for payment of monies, is of such a nature that the same cannot be rectified or cured wi th in the thirty (30) day per iod requir ing such rectification or curing as specified in the written notice relating thereto, then such default shall be deemed to cured if Tenant within such period of thirty (30) days shall have. commenced the curing thereof and shall continue thereafter with all due diligence to cause such curing and does so complete the same with the use of all due diligence. 17.6 Waiver of Breach. The remedies given to Land- lord in this paragraph 17 shall be in addition and supplemental to all other rights or remedies which Landlord may have under the laws then in force. The waiver by Landlord of any breach of any term, covenant or condi tion herein con tained shall not be deemed to be a continuing waiver of the same, or any other term, covenant or condition herein contained. The subsequent acceptance of rent by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. No covenant, term, or condition of this lease shall be deemed to have been waived by Landlord unless such waiver is in writing and signed by Landlord. ,18. Default By Landlord. If the Premises or any part thereof are at any time subject to a first mortgage or a' first deed of trust and this lease or the rentals due from Tenant hereunder are assigned to such mortgagee, trustee or beneficia- ry (called Assignee for purposes of this Paragraph IS only) and 9234200 15123 ~- \\1n -14- Tenant is given written notice thereof, including the post of- fice address of Assignee, then Tenant shall give written notice to Assignee, specifying the default in reasonable detail, and affording Assignee a reasonable opportunity to make performance for and on behalf of Landlord. If and when the Assignee has made performance on behalf of Landlord, such default shall be deemed cured. 19. Eminent Dorna in. If, dur ing the lease term there is a tak ing or transfer of or damage to all or any part of the Premises for a public use by any individual or enti ty, public or private, possessing the power of eminent domain, whether by a condemnation proceeding or otherwise (hereinafter referred to as "taking," "transfer" and "damage"), the rights and obliga- tions of Landlord and Tenant, with regard to such taking, transfer or damage shall be governed by the provisions of this Paragraph 19. 19.1 Date of, Tak ing. The date of tak ing, as used in this Paragraph 19, is defined as the earliest of the follow- ing dates: (a) The date legal possession is taken, which is defined as the date, if any, after which the condemnor may take possession of the property, as stated in an order author izing the condemnor to take possession. (b) The date a final order of condemnation or final judgment is filed or recorded or the date a deed is recorded in the event of a transfer ~ (c) The date the physical possession of the property is taken. 19.2 Abatement of Rent. Th is lease shall, as to the part transferred or taken, terminate as of the date of tak- ing as herein defined, and the rent payable hereunder shall be adjusted so that the Tenant shall be required to pay for the remainder of the' termorily such portion of such rent as the value of the part remaining after the taking bears to the value of the entire premises at the date of taking. 19.3 Tenant's option to Terminate. In the event only a portion of the Premises is taken or transferred and the part remaining is not susceptible to the use to which Tenant had put the premises prior to such taking or transfer, or if no land is actually taken but the entire property is damaged by reason of the taking of access rights or similar valuable prop- erty rights so that the en tire remainder is not susceptible to such use, then th is lease may be terminated at the option of Tenant by written notice to the Landlord. Such option to term5_nate must be exercised at the earlier of the following dates: Prior to expiration of ninety (90) days after the serv- ice of summons in any condemnation action brought by the con- demnor, or at the date legal possession or physical posses- sion is taken or the date the entire property is damaged as 9234200 15123 ~- \ \1K3 -15- ---..---.-.-..-----,------------ ----- ------- --'.-"--. --'.-._--,------- --- -- '. herein defined. Such termination shall be effective at the da te of the f il ing or record ing of a final order of condem- nation or final judgment or the date the condemno~. s legal or physical possession, whichever occurs first. . .~/ ' 1/" / ~/ , 7 19.4 Abandonment of Proceedings. In.:....fhe event the condemning agency shall aba~don an eminent domain proceeding after service of any notice~i o.£!./termination by the Tenant, as provided for in Paragraph fß~5/ then Tenant may, at its option, revoke and cancel such notice by notifying Landlord in writing, not more than ten (10) days after there has been an express or implied abandonment~ Upon an express or implied abandonment, either party hereto shall have aright to contest the condem- nor IS abandonment and a right to its respective costs and dis- bursements. 19.5 Repossession by Tenant. If, after the condem- nor takes possession or Tenant vacates the property sought to be condemned in compliance with an order of possession, the condemnor abandons the proceeding as to such property or a por- tion, thereof, or if it is determined that the condemnor does not have authority to take such property or portion thereof by eminent domain, and the condemnor is required by law to deliver possession of such property or such portion thereof to the par- ties entitled to the possession thereof and pay damages as are Erovided for in California law, then the Tenant shall be en- titled to retake possession of the Premises; and, in the event of such repossession by Tenant, all the terms of this lease shall remain in full force and effect. 19.6 Div ision . of Award. In the event that an award is made for an entire or partial taking or for damage to the Premises or any interest therein in any action in direct or in- verse condemnation, or in the event of a transfer as herein de- fined, the parties agree that their respective rights to the award or compensation paid shall be as follows: . 19.6.1 If there is a transfer, as herein defined, and the parties cannot agree as to their respective interest in the consideration received, they shall select an appraiser to evaluate their respective interests and to apportion the considera- ,tion received in the same ratio as such evaluation is reported. The appraiser selected shall be a mem- ber of the American Institute of Real Estate Ap- praisers and shall make his report in writing and use acceptable appraisal techniques employed by the appraisal profession. The costs of such appraisal ar e to be borne equally. In the event the par ties 9234200 15123 \(\t3 ~- -16- .. hereto cannot agree as to the selection of an ap- praiser, either party hereto shall have the right to apply to the presiding Judge of the Superior Court of the state of California, in and for the County of San Diego, to appoint such an appraiser. 19.6.2 Any in ter est paid on the award in condemnation shal1 be divided between the parties in the same ratio as the award has been divided under the terms of Subparagraph 19.6.1 above. Interest payable because of a tak ing of legal or physical possession or damage to the Premises by the con- demnor shall be paid to the Landlord. 19.7 Costs. Each party shall bear its own costs, attorneys' fees, appraiser fees and all other costs in connec- tion with any matter contained in this paragraph except as may be otherwise provided. 19.8 Right of, Entry. Neither party hereto shall grant a right of entry to any condemnor without the written consent of the other party. 19.9 Notices. In the event either party hereto re- ceives actual or constructive notice of any acts on the part of an enti ty possessing the power of eminent domain which would cause or allow any of the provisions of this Paragraph 19 to be invoked, then, in that event, such party shall immediately no- tify the ~t~ party in writing of such information. /~.- ;o../" /::.-..,,- 19 ~ 10 voluntary Conve ance under - Threat. For the purposes of this paragraph ~1áJ voluntary sale or conveyance in lieu of condemnation; b to under threat of condemnation, shall be deemed an appropriation or taking under the power of eminent domain. 20. Termination or Expiration. At the expiration or earlier termination of the lease term, Tenant shall surrender to Landlord the possession of the Premises and all improvements to the Premises in good condition, reasonable wear and tear and uninsured casualty excepted.. Tenant shall leave the surrender- ed Premises and any other property Tenant is required to su- rrender under this Lease in good and broom-clean condition ex- cept as provided to the contrary in provisions of this lease on maintenance and repair of improvements. All property that Ten- ant is required to surr ender shall become Landlord I s property on termination of the lease. All property that Tenant is not required to surr ender but that Tenant does abandon shall, at Landlord' 5 election, become Landlord's property at termination of th is lease. If Tenant fails to surr ender the Premises at 9234200 15123 ~,\ \1t3 -17- -- .--.- ,.- ,----,.----- .'--_., " . the expiration or sooner termination of this lease, Tenant shall defend and indemnify Landlord from all liability and ex- pense resulting from the delay or failure to surrender, includ- ing, without limi tation, claims made by any succeed ing tenant founded on or resulting from Tenant's failure to surrender. -~1.~ight-of-First Refusal. "*l-.l---I-f-Irand-lo-Fd--determines-to-se-l-l--Landlord's in- .ter est-in-the--premises, Land-lo-Fd-- shal-l--notify---Tenant of----the-' te~m&-on-w~ich-Landlðrd _will be wil~n~~. If Land~&rð, wi..thi.n-thi-r-ty (30) da-ys---a-f-ter-r:eceipt-o-f - Landlord' 3 notice, in- dicates--i~~in~s agreement to p~hase La~d'3 i~er- -es-t--in-the-PFem-i3co on /the t-e£-ms--s-t:a-t.ed--in L'andl-&ro I s notice, -Lanca.o.r;.d--s1:1.a-l-1--se-1:-~onvey s.uch--interest to.-'!'ena~ ~~m&-&ta-ted in the notice. If Tenant-does-not--indicate i-ts aqr-eemen-t--w-i--t.h-in--th-irty (30) daY3, Land-10£d--thereafter shall have--t~£-i-<Jht--to--sel-1--and comrey' Landlord' s-uinter est--in the P-r€ffi-is-esto a th-ird party on . the-same---terms- stated--in--t-he no ~iee. I-:€--Irandlord doe:) not :Jcll --and con\.ycy Landlord's in te r- es-t-in---the--premises ..iÏ th in 90 days, -any-- fur-ther--transaction .shall--be--deemed--a ncw determination by..-Landlord to sel-l----anG- COIWCY LandJo&r:d--'s intcrcot in the Prem-i-s-eg--~the provi3ions or Ll¡i;:, PdLa':!Ld.!?l¡ 21 ~hdr:t-be d.ppl.it,;able. \:;I";-.¡./'jt.,H--- ~~~ 21.2 If Landlord purchases all Tenant's inteiest in the premises Landlord shall remit to Tenant any prepaid and un- earned rent. 22. Nonmergerof ,Fee and Leasehold Estates. If both Landlord's and Tenant's estates in the premises or the improve- ments of both become vested in the same owner, this lease shall nevertheless not be destroyed by application of the doctrine of . merger except at the express election of the owner and the con- sent of the encumbrancers under all mortgages existing under provisions of this lease relating to the purchase or construc- tion of improvements. 23. Attorneys' Fees. In the event that either Landlord or Tenant shall institute any action or proceeding against the other relating to the provisions of this lease, or any default her eunder , then ~ and in that event, the unsuccessful party in such action or proceeding agrees to reimburse the party for the reasonable expenses and disbursements incurred therein by the prevailing party, including reasonable attorneys' fees. 24. Sale of pr emises By Landlord. In the event of any sale or exchange of the premises by Landlord and assignment by Landlord of this lease, Landlord shall be and is hereby entire- ly freed and relieved of all liability under any and all of its 9234200 15123 \\\ tJ ~~ -18- -- ---. - ---- ",---,---,--- '- --- ---- -- ,----- -------,- - "... ---. ----- --,-- -- covenants and obligations contained in or derived from this lease ar ising out of any act, occurr ence or omission relating to the Premises occurr ing after the consummation of such sale or exchange and assignment, provided such purchaser or assignee shall expressly assume the covenants and obligations of Land- lord. ' 25. Quiet Possession. Landlord agrees that Tenant, upon paying the rent and performing the covenants and conditions of this lease, may quietly have, hold and enjoy the Premises dur- ing the term hereof or any extension thereof. 26. Holding Over. This lease shall terminate without further notice at expiration of the lease term. Any holding over by Tenant after expiration shall not constitute a renewal or extension or give Tenant any rights in or to the Premises except as otherwise expressly provided in this lease. 27. Obligations of Successors. The parties hereto agree that all the provisions hereof are to be construed as covenants and agreements as though the words importing such' covenants and agreements were used in each separate paragraph hereof, and that all of the provisions hereof shall bind and inure to the benefit of the parties hereto, and their respective heirs, legal representatives, successors and assians. 28. Trustee's Warranty. Ben Rosenblatt, as Trustee of the Lois J. Richmond Trust, represents and warrants to Tenant that he has the full legal capacity and authority to execute this Lease on behalf of the Lois J. Richmond Trust, and shall indemnify and hold Tenant harmless from any action by any beneficiary of 'such Trust or any other person contesting the entry of the Trust into this Lease. 29. Notices. Wherever in this lease it shall be required or per- mitted that notice or demand be given or served by either party to th is lease to or on the other, such notice shall not be deemed to have been duly given or served unless in writing and personally delivered to or forwarded by certified or registered mail, addressed to and individual principal of the party, at the addresses of the parties specified on page one hereof. Either party may change such address or desiqnate specific in- dividuals to receive notice by written notice by certified or registered mail to the other. 9234200 15123 \\~t3 R- -19- . "--'---,_u", -_._----,-- ---_u....----.- 30. Captions and Terms. The capt ions of sections and paragraphs of th is lease are for convenience only, are not a part of this lease and do not in any way limit or amplify the terms and provisions of this lease. The neuter pronoun used herein shall include the masculine and feminine as the case may be, and the use of the singular shall include the plural. 31. Miscellaneous. 31.1 It is agreed that nothing contained in this lease shall be deemed or construed as creating a partnership or joint venture between Landlord and Tenant or between Landlord and any other party, or cause Landlord to be responsible in any way for the debts or obligations of Tenant or any other party, except as otherwise provided in this Lease. 31.2 It is agreed that if any provision of this lease shall be determined to be void by any court of competent jurisdiction, then such determination shall not aff~ct any other prov ision of th is lease and all such other pr6visions shall remain in full force and effect¡ and it is the intention of the parties hereto that if any provision of this lease is capable of two constructions, one of which would render the provision void and the other of which would render the provi- sion valid, then the provision shall have the meaning which renders it valid. 31.3 It is understood that there are no oral agree- ments between the par ties affecting th is lease, and th is lease supersedes and cancels any and all previous negotiations, ar- rangements, brochures, agreements and understandings, if any, between the par ties or displayed by Landlord to Tenant wi th respect to the subject matter thereof, and none thereof shall be used to interpret or construe this lease. All negotiations and oral agreements acceptable to both parties have been merged into and are included herein. There are no other representa- tions or warranties between the parties and all reliance with respect to representations is solely upon the representations and agr eemen ts con ta ined in th is documen t. Th is lease cannot be amended or modified except by a written agreement. 31.4 The laws of the State of California shall gov- ern the val idi ty, per formance and enforcement of this lease. Although the prov isions of th is lease were drawn by Landlord, this lease shall not be construed ei ther for or against Land- lord or Tenant, but this lease shall be interpreted in accord- ance with the general tenor of the language in an effor t to reach an equitable result. 9234200 15123 \ \ '\ t3 <?-- -20- " 31.5 Landlord's consent to, or approval of, any act by Tenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent to or approval of any subsequent similar act by Tenant. 31.6 Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obta in labor or mater ials or reasonable substitutes therefor, governmental restrictions, governmental regulations, govern- mental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, shall excuse the performance by such party for a per- iod equal to any such prevention, delay or stoppage, except the obligations imposed with regard to payment of rent and other charges to be paid by Tenant pursuant to this lease. 31.7 Tenant hereby acknowledges that late payment by Tenant to Landlord of rent or other sums due hereunder will cause Landlord to incur costs not contemplated by this lease, the exact amount of which will be extremely difficult to ascer- tain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed cover ing the Premises. Accordingly, if any installment of rent or of a sum due from Tenant shall not be received by Landlord or Land- lord's designee within ten (10) days after written notice that said amount is past due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of such overdue amount. The parties hereby agree that such late charges represent a fair, and reasonable estimate of the costs that Landlord will incur by reason of the late payment of rent by Tenant. In the event of any dispute between Landlord and Tenant as to the amount or propriety of any payment required by this lease to be made by Tenant to Landlord, Tenant agrees not to withhold the same, but to make the payment to Landlord under protest, pend- ing resolution of such dispute. 31.8 Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event: of Tenant b~ing evicted or dispossessed for any cause, or in the event of Landlord obta ining possession of the Premises by reason of the violation by Tenant of any of the covenants and conditions of this lease or otherwise. The rights given to Landlord herein are in addition to any rights that may be given to Landlord by any statute or otherwise. 31.9 Landlord and Tenant may execute and record a Memorandum wi th th is lease wh ich shall, among other usual pro- visions, state Tenant's right of first refusal to purchase 9234200 15123 ~-\ \lt3 -21- --._---- -_u_.. -._-- - _.. ---- ---.-__-h..- ,..- . ~\.t\ )\-\ìv J\-\3 ., I \ '-'- IJ \ -, \ ~-I( J \ I ~ ., Landlord's interest in the Premises pursuant to Paragraph 22. 31.10 Time is of the essence of th is lease and each and all of its provisions in which performance is a factor. IN WITNESS WHEREOF, Landlord and Tenant have duly exec- uted this lease on the day and year first above written: - / LANDLORD: ..' VI-, rLC'//,'-/I',-~'ril'((<- / , - ' . .' " ~'GERALD HANDLER -~ -. -~' '-' "".- , JUDITH HANDLER (J ~ Jl{, . ~ " 'I) " 'I ",v.,' ',J '¡'"'-'1^, :(..;;..:~/' '-.../171, ,-[ì ..... BEN ROSENBLATT, Trustee for Lois J. Richmond Trust LA JOLLA VENTURES, INC. A c~~ni~4/~ ./ ' By:' ,. , ---------- Norman Hahn, President -+.~rJM-1 SMC~ rJAAlLSf-t lA"Ûl,reP u,1r+ff r>r (aPi' 01=- i1-fE ls;"V * (~tV\plt'\-vJ Û~"'O Coli~/((,'Ýq A-J--! ihlD AU P,/Jt"RJC+tl)j 0,,/ tHt P~Qt~R--t'-{ (jf\'II~ LEASfO f-f\o.~'~ (D...JfR¡)(-tjO;'/ C\-1---( Or- C\.{J\A \/¡j1-A .s~lL APf{ov¡:: 1i-1f p,4h!Ly,'¡q' , R.. ~ QJ \ RiO ('1\ f ¡v-t' () ç 1+1 ( j p~ OPf.I(-f-( A-J ~1 a F fi-{f 'r::\ oJ tf (\1:'15+ A (/ ÆA <\1<-(- c.. L"ptr>\./5 ~~Llr-{ì f~\QtZ to ~"\.z-t- Dr (Ù'Ý~-tr(J C-+/:kv', Vvf(\V ~ -tt\E 1-ffè N\ of -\"iIJ l6'iJf \ r:rJtf MA"'( ß~ -S~ÆJf;O o-Jl, p,S f1 \,Jc\ D~t4( t-+EM 0,.) tf-.\I? fv1etlv'- -h~tJ'A)-r J~.ll D'¿. RfrçJII<~O tv fv¿-r ¡V°ítC[ o~ IV~'V' /rEJfc,../.IiP¡Li7\ Ð-J (O/\", J-T R J l-kp,.J ..r l tf: u¡ t+N I -v' lOP 11 '-f J 0 r: Co}) IylfJt/ CE M e-l-r of- Li/oRH.' O'Z p~(tv'~¡{'Y o~ ;Y1AtEfr4 ( fo +HE Ðo{JSlfE.. \Ji4tcJ.(¡:::JeR. (O""..1~j t:1;Qj-1"" T .f/ IV A,..r-1" S-HAl( {:;f-.i I( +f..{ Ë (,7 Jt' CoJ~t' (o~"h -i- ,4Ð^1!iVl,jtl'.4+¡JE {Vf<...~~SA4"1 fp.)£M~T.f. (~ +~E fV'E-Ñ~- 1J,A-1- VDPE'-<:£: r ~ .( f--(t../ l\ J PAt fl -++t E !( ~ S ~ U 11 E Rr;. /J+- A 9 Jl)~ +- M :=:^/-r i TENANT: Dr::- )\0/-1 ~+J ~f/VE YJ FEEj Ft-fU F 'Z OðTAI..J!V4 tlv'1 CH I c.J(E/V' fE Ç-v III E J J IIP/r E A f,,1:J--ÆèA-tn? hj T /] ( 9234200 15123 -22- R-\ \ 1t_3 ..., '-------------' -- ..'----.-.-'-,----..-------.".-_u ---- --- '..-n, That portion of Lot 8 contained in numbered sections 19 and 20 as sho~m on the attached page 24 of Assessor's Map Book No. 565 consisting of approximately 21,487 square feet. n--_n__n , -.., .. ~'l ~-\\\ _:J EXHITI IT A -;. 1 .------ ---------- ' -~~~--r- r' ""1'.', . , ' '" - ., \ \ I : ; I ;.i.~ ~~'~~:~~1 Jt' ~\ _..-, II II . .:.,;.',:~:; I _..:::_~.~--~- 1 ...:.: :'. " ,\:: \ .~ - .'ð' :D:;;J In- :r: (y , .,.,..-: o::¡ . . (- -- :-< ~ ';;: ~ ' .... ' ' ,-:.,_.....:~- ::; g' r~~ s::'::'CK . ..-,' ~X'A"=' .' , '~ ~.,~;~~:\¿:-'~J,,:,.: I ;,' , r:-;('"./'l:~:I"." r ~. ::: ';":"",,7'.,~~ '. Q; - '~:.',':-:<:£::~~;.:' ,- .. ~ Q ,";"'.~.:'). ~,-~'.. ,:;,:-:,.:.:,~:,.\.:',,' ' ." ,..,:,' ~ f:~ ,"c IC; :-~ P' .:5T PÞ.RK LANE :{: .;.' ¡\:, ŒJ7' ASH AVE -,.. ... , -" >- ,'c. " ~":¡ ~.;J . r,~ :',.:. , " . . ,- . , .. : - . ~ " \,'~.. : í' ... . / ~ .. - -"-- ~ " . "'-: --,~ .~' . 1 ;:; ¡ , -,"':;; '-,': : ',' - '-: '~ ¡: CD --'0' : , .." ::',- ~,:. ;, ~~ , ,-- .' \ J ' , . ::: ~- ~ -; , . .:¡; ..( " Ct , - " :.i . - , ' .---- "\ ..,,1_: u '. ~ 'n' Ù""'" fT'I:s:.~ ~~t-. :' - \~ \ *-' I \ ,\ k-:' ~----_. ------~-~~--------~- 6~_----~- n_~~.--._----' \'~\' - ~ - - -: ~ I ' ii :" ' ' , § ð ----------zu,~------------ . . BROADWAY .;,: ~-' > :; '" .:.. .-" ~ ~. ,; ~, "'" ' rr' r.JJ I.:>J loa J,I .IS IS I I I I I I I I I I , 1 I I I I I I I I. I 1 I I I I Ô It) b \ô \(3 .~O ..r.--W._.1- ..R--..L-V- L<¿' -1- J1Z __1_- - _"'N--- Ju.JS ,...- ------------ -- ~ --------- - -- -------------- ,tf) :-t ..... ...- ..~ . , ~ '. ~ ~¡ :. - - --...---' , @: ~ ' ' 1 A IÓ1 " ' . I u:.,r 0 0 --- --"-- ..L----¡,-/:;:¡---:----------- ------------- -.,- ---- -- - --- '" ., P\> ~> 0 ~~ f) ï--~--- I r: I I ------------------------- . " 'I @ ~4r' . . ," . 1,"-'-;' ':0 ~ Of' ..", '.1 ~ ; ¡ ~ I..' '.. I' ~~~ ' i ~ ~ \1 11 ~ _.J--< ¡;'~_d : ~.~ r ... -. PO, r,O- or n pc:n. LOT - i P::'8, , ' " ....'.,: , .. ,-.,- ,- ~: ~ ',~, ~: \.\' V~" . ,:::,F _..' '. , " " '.:. "." -, " d' , --,0"---- P--- \ \ "1 g 5' £.x¡.-\¡'b¡( A -?.. ~í5 ~/\\ ø ,\:, p '\)... LEA S E by and between LILLIAN M. ENGLISH and EARL L. RICHMOND and LOIS J. RICHNOND and GERALD HA~"DLER and JUDITH HANDLER * vHLLIAr-l A. YALE of YALE, HILSON and YALE Attorneys at Law Suite" 2050 First National Bank Bldg. 530 'B' Street San Diego, California 92101 233-8821 -Ì. \?I\ 13 /:j..\\' " V LESSOR LESSEES -- ~ J.;j. . '; ,""'," " ~ STATE OF CALIFORNIA 5S. =jÇ.,!,r.llt""1 I?{,B On this S "1';' day of .f)¿ '"..,. , ' ~, before me, the undersigned, a Notary Public in and for said County and State, personally appeùred LILLIAN M. ENGLISH, known to me to be the person whose names is sub- scribed to the within instrument and acknowledged to me that she executed the same. WITNESS my hand and official seal. 0 COUNTY OF ,SAN DIEGO ~~~ County a~d State, /117tf'G-LlE R I Ie: ¡:;;Ltc'¿;c/llBO¡f'G- Type or Print Notary's Name M~'GCJEOITE 'M<ENBORG Notary PulJli., C.lilornia Principal O:iicç San Diego County I My commiuione"pire. Mey ó(';';ð'?O STATE OF CALIFORNIA) ) COUNTY OF SAN DIEGO) On this ~ day of I{/i~!/. 19t! before me, the undersigned, ,a Notary Public in and for said County and State, personally appeared EARL L. RICHÞ10ND and LOIS J. RICHMOND, known to me to be the persons whose names are subscribed to the-within instrument and acknowledged to me that they executed the same. WITNESS my hand and official seal >/7 .. /~¿:?ß~ Notar5~~bliC in and for s~l County and State I~ I/.I/¿", lit-#? '/I~ '7 ¡;"L~ Type or Print Notary's Name SS. " <,~--=',~,~<)Go)o...a'),':)-:-~.> },,:>,,'3, l~ ~~:~' W,:Uiam .d.. 1"a~~ 1) . o~--,,~,: " èi r-"c-,-,.,,;:,',',': ,.;OTA!V .":'11: - 0., ~, fO¡"'I,~ å ¿"::."""~"!. ."~~~i?¡,,It:"'-":'IN ::. f' (\: ,,:,,-..,1 ..u Q¡,jO CC,L;,IT '" ...' -.c":'-"'-' -~. ~,' ~¿;~OO90~~~o~ð~V ;It, Co,:nmission1>x¡Jires May 13, le7l STATE OF CALIFORNIA SS. j COUNTY OF SAN DIEGO /4 rE~~t t On this ~ day of III/I!I/whn , 196-"t, before me, the undersigned, a Notary Public in and for said County and State, personally appeared GERALD HANDLER and JUDITH HANDLER, known to me to be the persons whose names are subscribed to the within instrument and acknow~edged to me that they executed the same. ItITNESS my hand and Officia~t~ t:? ~~ , Notary Publ~c ~n and ~ said ; r:-,..:"-'~-:',;,<><»="'~'~'.:"""" County and State U : /:..;;'>\ 1;Wi.tc., .:t. ~',~;" tvlt ¿ Inm /I. //)i!' c::. .' ...cu,., ,~"",C"..f~':" ;:' ~~: .,' ":-) .:,' ,_,';,l <:c' :." ,> Type or Print Notary's Name Ci\;,":;;; ~~N~;.~j-,.,lY ;: Ô?<'~;'::-ÓOC?Öç,j~ :';.",.., "v., ,'v ;Vir ComuÜ:.;;IOD !:.X['lIc. ¡<loy ~:J, :_" ~ ~ -2- ~~) ~ ~;\ ~ ,~ -- ~ ~ - '. .:",. ~ , . ,. . .:- ~fter Recordinq Mail To: Earl L. Richmond 5114 El Cajon Blvd. San Diego, California 92115 .1,7,7, ') r' 't..., , " "" ~,'" '::~.~: --~~-' ...' .... """.-,, .- '(::<-'I/.,'/.,.~t.'- -,~L.~'~~'--'~~~ ¡;AR I J:¡3 n; °j3 "~,' ': :: . j'. ,\ , i ,he, ,;Fiï':I.','.r.::C'1F.:': r:'Hr.I~~.]ro"<-'- ro,t" ~ f.,S,~,¡;'/,ý,i;L¿~;;¡;~;l" ~2.S0 RICill~OND, LOIS J. ~ MEr.\ORl\NDUM OF LEASE LILLIAN M- ENGLISH, as lessor, and EAP~ L. RICHMOND, GERALD HANDLER and JUDITH HANDLER, as lessees, acknow- ledge that they have entered into a ninety-nine (99) year lease commencing as of January 1, 1968, relating to that certain real property located in the County of San Diego, State of california, described as follows: That portion of Lot 8 in Quarter section 150 of Rancho de 1a Nacion, in the city of Chu1a vista, County of San Diego, state of california, according to Map thereof No. 50S, filed in the Office of the County Recorder of San Diego County March 13, 1888, described as follows: Beginning at the Ncrthwesterly corner of sa-id Lot B; thence Easterly along the Northerly line of said Lot, a distance of 180,00 feet, to the Northeasterly corner of land described in deed to walter G- English, et ux, re- corded April 11, 1940 in Book 1016, page 230 of Official Records; thence Southerly along the Easterly boundary of said land, 332.35 feet to the center line öf "E" Street as shown on said Map No. 505; thence westerly along said center line, 90.00 feet to the southwesterly corner of said English'S land; thence Northerly along the westerly boundary. of said land, 190_00 feet to the Southeasterly corner of land described in 'Deed to walter G. English, et ux" recorded May 20, 1939 in Book 909, page 201 of Official Records; thence westerly along the Southerly boundary of said land, 90_00 feet to the westerly line of saîd Lot 8; thence Northerly along said westerly line, 142.35 feet to the point of heginning. " F¡;fJ.<:IIA-A'Y 5'" ¡,"bIt" DATED:' DEC¡;;¡:n¡,;p. -' 1967. ~ r\,~'? \\. Q-' D.-vJ LOIS J. RICHHO~ ~ b.~¿/ ~-?(d ~ GERALD li¡\NDLER J¿ d l;f; JIJPITH HIINDLER ~ -:l/<J.u...aÆ.. / LESSEES -- -=. -1- LEASE THIS LEASE is entered into by and between LILLIAN M. ENGLISH, herein called LESSOR and EARL L. RICHMOND and LOIS J. RIC}~OND, husband and wife as joint tenants as to an undivided one-half (1/2) interest, and GERALD HANDLER . and JUDITH HANDLER, husband and wife as joint tenants, as to an undivided one-half (1/2) interest, herein collectively called LESSEES. 1. LEASED PREMISES: The real property covered by this lease is located in the City of Chula Vista, County of San Diego, State of California, designated as Parcel 19, Book 565. Page 24, County Assessor's Map (approximate size, 90 foot frontage on E Street and 292.35 depth running in a northwest direction) and shown as Parcel 20, Book 565, Page 24, County Assessor's Map (approximate. size 142.35 foot frontage on Broadway and 90 foot depth running in a southeast direction). A copy of said County Assessor's Map is attached hereto as EXHIBIT A. 2. \'il>RRANTY OF TITLE: LESSOR warrants that she is the sale owner of the leased premises and that said real property is free and clear - Page One - :\~') @--'" of all encumbrances, excepting 1967 - 1968 real property taxes. 3. TERH: The term of this lease shall be for NINETY-NINE (99) YEARS, commencing JANUARY 1, 1968, and ending DEC~BER 31, 2067. 4. RENT: Rental under this lease shall be NINE HUNDRED AND NO/IOO ($900.00) DOLLARS per month for the first TWELVE (12) MONTHS; FOUR HUNDRED AND NO/100 (~400.00) DOLLARS per month for the next TvillLVE (12) MONTHS (commencing January I, 1969); and SIX HUNDRED A~ NO/100 ($600.00) DOLLARS per month (commencing January 1, 1970) for the balance of the term of this lease. Upon signing this lease. LESSEES shall pay LESSOR the sum of FIVE THOUSAND, THREE HUNDRED AND NO/100 ($5,300.00) DOLLARS advance rent to be credited for the first month in full, with the remaining $4,400.00 to be credited at the rate of $400.00 per month for the last ELEVEN (11) MONTHS of the first year. All rental installments shall be payable on the FIRST day of each month, in advance. 5. REAL PROPERTY TAXES: LESSEES shall, when due, pay, during the term of this lease. all real property taxes. which may be levied and assessed against the real property covered by this lease, including improvements hereafter constructed thereon. 6. EXISTING IMPROVEMENTS: LESSEES shall have the right to remove all existing improvements located upon the leased premises. All improvements (?-- \118'3 - Page Two - constructed upon the leased premises shall belong to LESSOR upon termination of this lease. 7 . GROUND LEASE: It is acknowledged that this is a ground lease only and LESSOR shall have no responsibility relating to removal of existing improvements or any responsibi~ity relating to repairs, replacements or fire insurance concerning future improvements, all of such items to be the sole responsibility of LESSEES. An event of fire or other destruction, in whole or in part. to the improvements locate~ on the leased premises shall not affect or impair the obligatïons of LESSEES under this lease. 8. COHPLIANCE WITH LA\'JS: LESSEES shall faithfully observe and comply with all municipal and county ordinances and state and federal statutes now in force, or which hereafter may be in force, in connection with ~1eir use of the leased premises. 9. PUBLIC LIABILITY AND INSURANCE: This lease is made upon the express condition that LESSOR is to be free and harmless from all liability and claims or damages by reason of any injury to any person or persons, including LESSEES, or property of any kind what- soever and to whomsoever belonging, including LESSEES. from any cause or causes whatsoever while in, upon, or in any way connected with the premises leased hereby. LESSEES agree to indemnify and save LESSOR harmless from all liability, loss, cost, obligation, or attorneys' fees on account of, o~ arising out of any such injuries or losses, or claims thereof, ~ \\iÍ-3 - Page Three - ,,~H'-.-~ ~---~-_.:J' '--,--- -- --.-- --- ---- ----r in force during the term hereof at LESSEES' expense, public liability insurance to protect against any liability to the public incident to the use of or resulting from any accident occuring in or about said premises and parking area, the liability under such insurance to be not less than ONE HUNDRED THOUSAND ($100,000.00) DOLLARS for anyone person injured, or THREE HUNDRED THOUSAND ($300,000.00) DOLLARS for anyone accident, or TíÆNTY-FIVE THOUSAND ($25,000.00) DOLLARS for property damage. These policies shall insure the contingent liability of LESSOR and a copy of such policy or policies is to be placed with LESSOR, and LESSEES are to obtain a written obligation on the part of the insurance carriers to notify LESSOR in writing prior to any cancellation thereof, and LESSEES agree, if LESSEES do not keep such insurance in full force and effect, the LESSOR may take out the necessary insurance and pay the premium and the repayment thereof shall be deemed to be part of the rental and payment as such on the next day upon which rent becomes due. 10. ENTRY BY LESSOR: LESSOR reserves the right to enter upon the leased property either in person or by her agent, at any reasonable times for the purpose of inspecting the leased premises, posting notices of non-responsibility for work or repair or improvement made by LESSEES or for any purposes q..""'" to enable LESSOR to enforce the terms and provisions of this lease. 11. ASSIGNMENT: LESSEES shall not assign this lease or any portion ,,() \ of this lease without first obtaining written consent of - Page Fro r - LESSOR. LESSOR agrees not to unreasonably withhold her consent to an assignment in whole or in part. In addition to any other interpretation of what is an "unreasonable withholding of consent, II it is specifically understood that any asignee also must have a greater net worth than the present LESSEES and it is specifically understood that an assignment to a corporation will not be al1owed unless there are adequate provisions to protect LESSOR in full in the event of the corporation's bankruptcy. 12. SUBORDINATION: It is acknowledged that LESSEES have entered into this lease with the objective of developing the leased premises by constructing improvements thereon and will from time to time obtain loans for construction and long term financing. Provided that no default then exists under this lease, LESSOR agrees that her ownership interest in the leased premises may be encumbered by deeds of trust securing such ~oans, provided the following conditions and limitations are complied with: A. The lenders of any such loan shall be limited to a bank, savings and loan association (state or federal), insurance company or mortgage company authorized to do business in the State of California. B. The amount of any con- struction loan shall not exceed the estimated cost of construction The term "cost of construction" shall include normal loan expenses, impound accounts that may be withheld by the lenders, ens ineering-, archi tectural and dra fting fees, oíl-si te improvement expenses, subdividing charges, permit fees and actual costs of Q-- \.'1 ß3 - Page Five - construction. LESSEES agree that the loan agreement incident to any such construction loan will provide that the proceeds thereof will be disbursed under a voucher or fund control system for construction expenses. LESSEES agree that any money obtained from any and all construction loans which may be secured by the leased premises will be used solely for the cost of construction as above defined and for no other purpose. Upon completion of construction and upon payment of all expenses thereof, if any surplus funds should exist from such construction loan, said surplus shall be repaid to the lender to credit against said loan. c. The amount of any long term financing loan or replacement thereof, shall not exceed the fair market value of the improvements constructed , -' upon the leased premises or construction upon the portion of leased premlses encumbered by the deed of trust securing such loan. D. The interest rate of any construction loan, or long term financing loan, or any replacement thereof, shall not exceed the then prevailing rate for comparable loans made in the County of San Diego, and in any event, shall not exceed the maximum rate of interest permitted by law. The repayment period for any construction or long term loan shall correspond with the then prevailing terms of repayment for like loans then being made in San Diego County, but. in any event, shall be payable in full before the expiration date of tllis lease. LESSOR agrees to si<jn the deed or deeds of trust \' <t) ~_\ - Page Six - securing such construction or long term financing loan or loans with full recognition that such encumbrance will constitute a lien against LESSOR'S ownership interest. LESSOR will further sign for purposes of approval, but without incurring any personal liability e1ereunder, all promissory notes, loan agreements or other loan documents or title insurance company documents then commonly required by lenders or title insurance companies for like loans in San Diego County, incident to the consummation of said loan and the issuance of title insurance relating to such encumbrances. It is acknowledged that the documents relating to said loan or loaps may include provisions then in common use for like loans, such as, but not limited to, acceleration clauses, repay~ent provisions and late payment penalties. LESSEES agree that all improvements to be constructed upon the leased premises shall be made pursuant to a competitive bid construction contract awarded to a general contractor, licensed by the State of California, and that such contract shall include a provision re~uiring the contractor to provide a lien and completion bond. LESSEES expressly indemnify LESSOR from loan liabilities, construction costs and agree to satisfy in full any valid mechanic's liens recorded against the leased premises and to save and hold LESSOR harmless of any mechanic's liens whatsoever recorded against the leased premises while this lease is in effect. LESSEES shall have the discretion of determining the size, quantity and design of ~ll improvements constructed upon the leased premises, subject to the" limitation that such improvements, pursuant to good business judgment, shall ~j\ÎCJ - 'D..,~~ C:"'n~'" - increase the value of the leased prem1.ses in an amount equal to the cost of construction. It is mutually agreed that if any dispute should arise between LESSOR and LESSEES pursuant to the provisions of this paragraph, such dispute shall be resolved pursuant to the rules of the American Arbitration As,sociation. If the arbitrator should determine that LESSOR has acted or failed to act in an unreasonable or arbitrary manner. so as to preclude or delay LESSEES proposed financing and improvement program. then in such event the arbitrator shall be empowered to make an award directing LESSOR'S compliance with the provisions of this paragraph, and. in addition thereto. to award attorney's fees and ddmages to LESSEES for any expenses or losses occasioned by such act or omission to act by LESSOR. Any affirmative act required of LESSOR pursuant to such arbitrator's award, if not performed by LESSOR, may be specifical: enforced by a decree of a Court of competent jurisdiction. If the arbitrator should determine that LESSEES or LESSOR have acted or failed to act, in an unreasonable or arbitrary manner. the arbitrator shall be empowered to award to the successful party in such arbitration, attorneys fees and such damages. expenses or losses as may be determined by said arbitrator to exist by reason of such act or omission to act. 13. DEFAULT: If LESSEES should breach this lease, LESSOR, in addition to all other rights and rem~dies provided by law. shall have the right, with or without giving notice to LESSEES, to re-enter the premises and remove all property therefrom and store the same at the expense of LESSEES and to re-1et Ð1e ~ \\1~3 .~ - Page Eight - premlses, or any part thereof, for such term and upon such rental and conditions as LESSOR deems advisable, together with the right to make alterations and repairs upon such re- letting - LESSEES shall pay all cost and expense of re-letting and of the alterations and repairs, together with the amount of rent reserved under this lease for the period of such re- letting after deducting the rent to be paid pursuant to such re-letting. Such re-entry of the premises or re-1etting shall not constitute a termination of this lease by LESSOR. LESSOR will not enforce any remedy for the breach of this lease by LESSEES unless such breach shall continue to exist from and after the expiration of THIRTY (30) DAYS following the giving of a notice by LESSOR to LESSEES of their default hereunder. 14. INSOLVENCY OF LESSEES: Any attachment, execution or other judicial levy upon the leasehold estate hereunder, or assignment of said leasehold estate for the direct or indirect benefit of creditors of LESSEES, or any of them, or the judicial appoint- ment of a receiver or similar officer to take possession of the leasehold estate, or the filing of any petition by, for or against LESSEES, or any of them, under any chapter of the Federal Bankruptcy Act, shall be a breach of this lease at the absolute right and option of LESSOR. A termination of this lease b~sed solely upon a default under this paragraph shall not terminate the rights of then existing sub-tenants. 15. NOTICES: All notices to be given to LESSEES may be given ln writing personally or by depositing the same in the United States mail, certified or registered, postage prepaid, \. \ 1 g-3 ~- - Page Nine - return receipt requested, addressed to LESSEES at 5114 El Cajon Bou~evard, San Diego, California. All notices to be given to LESSOR may be given in the same manner, addressed c/o Miss Marguerite Falkenborg to LESSOR at 727 Third Avenue Chula vista Calitornia. If such notice is personally served, service shall be conclusively deemed made at the time of service. If service is certified or registered mail. service shall be con- clusively deemeò made twenty-four (24) hours atter the deposit thereof in the United States mail. LESSOR and LESSEES may change in the manner set torth herein, their address for the purpose of receiving notices or demands hereun~er. 16. ATTORNEYS FEES: . The successful parties in any litigation between LESSOR and LESSEES pertaining to this lease shal~ be entit~ed to be paid reasonable attorneys' fees and costs of suit. 17. RIGHT OF FIRST REFUSßL: LESSOR sha~l not, prior to the termination hereoI, accept any offer I:or tne purcIlase-and-sale or excnange of the ~eased property, or contract for the purchase-and-sale or exchange of the leased property, untiL and unless LESSOR shùl1 have given LESSEES written notice stating the price and terms of said offer or contract, and LESSEES shall have failed or refused to tender to LESSOR, within THIRTY (30) DAYS after service of such notice, a written offer to acquire the leased property at the same price and upon the same terms and conditions as are set for~ì in said offer or contract first above referred to. ~. \ \ 1 ~3 - PaGe Ten - la. NEHORANDUM OF LEASE: Upon request of LESSEES, LESSOR shall deliver to LESSEES a memorandum of this lease designating the description of the leased premises, parties hereto and term of this lease, signed and acknowledged in recordable form. 19. l-lISCELLANEOUS: The waiver by LESSOR of any breach of any term. covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition of any subsequent breach of the same or any other term. covenant or condition herein contained. The subsequent acceptance of rent hereunder by LESSOR shall not be deemed to be a waiver of any preceding breach by LESSEES of any term, covenant or condition of this lease, other than the failure of LESSEES to pay the particular rental so accepted, regardless of LESSOR'S knowledge of such preceding breach at the time of acceptance of such rent. The use herein of the neuter gender shall include the masculine and/or the feminine, and the use herein of the singular number shall include the plural, wherever the context hereof requires. Ar ticle headings are for convenience only and are not a part of the text hereof. Time l.S of the essence of this lease. This lease and all the provisions hereof shall bind and inure to the benefit of LESSOR and LESSEES and their respective heirs, administrators, executors and assigns. Any holding over after the expiration of the term of this lease, or any extended term, with the consent of LESSOR, shall be construed to be a tenancy from month to month, at a monthly rental - Page Eleven - ~- ,Yl g'3 ~~ "-,,V .loB LIlt:: ~d¡¡l\:.: dHlUUU L ú~ L!LL: .Lc:.o... L ¡¡lUll LJI UL L!L.L::> .LedSe. DATED THIS ~ DAY OF Féð¡{"(/t1~ r , 196~ . ~' p~ ",;;/ --.~. AN M :-"EJ;thSH - J-- ---f.. LESSOR U/~t,Q r::~ LOIS fJ.. RICHMOND ~À~ &~~ ~ GERALD HANDLER A-. ,/z~Zf! /'~ J1}D ITH HANDLER - Page Twelve - LESSEES ~ 8<1-39'; 2~S 'I Rt'LL'ROU) IN Cn,<ïJ\L kt:'Ll~I¡¡¡:' £F SPJ.'DltLO l(À,N'7 't CA -- Recording Requested by and When Recorded, Return To: I-:', OCT I;: r:: ( 3~, I .YEf<All"'fLE ' ~,::.n ì,EL(J"Dé~; David E. Lundin, Esq. Fredman, Silverberg & Lewis, Inc. 3252 Fifth Avenue San Diego, California 92103 Space above for Recorder's Use AGREEMENT RESERVING PARKING I ~:~ S/ ~ I ON THAT PORTION OF LOT 19 FOR LOT 20 AGREEMENT by and between LA JOLLA VENTURES, INC., a California Corporation ("LA JOLLA"), THE CITY OF CHULA VISTA, a Municipal Corporation (" CITY"), GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND Trust, ("TRUST"), and BANK OF SAN DIEGO, a Financial Institution, ("BANK"). WHEREAS, GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND Trust, is the Lessee under a ninety-nine year lease of Lot 20 and a portion of Lot 19 as shown at Book 565, page 25 of the Assessor's Map as attached hereto as Exhibit "A" located at Broadway and "E" Streets, Chula Vista, California, and WHEREAS, GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND Trust, is a Lessor to LA JOLLA VENTURES, INC. of a fifty year lease for the above-described property, and WHEREAS, BANK OF SAN DIEGO is providing a loan of money for construction of a building on Lot 20 to be leased to SAN DIEGO PIZZA NUMBER ONE, INC., dba GODFATHER'S PIZZA, and WHEREAS, in order to use Lot 20, LA JOLLA must provide adequate parking which is not available on Lot 20, and WHEREAS, all parties wish to reserve a portion of Lot 19 as committed parking for the benefit of Lot 20. THE PARTIES HERETO AGREE AS FOLLOWS: 1. LA JOLLA agrees to and hereby does reserve that portion of Lot 19 leased pursuant to a fifty-year ground lease for parking for the benefit of Lot 20 for the full term of said fifty-year ground lease. \\~} ?--\ 2. All parties agree that the right to build on and use Lot 20 is personal to ~ JOLLA and does not run with the land or accrue to successors in interest. This Is 8 true certified copy of the reoord if it bears the seal, imprinted in purple ink. of the Recorder. ~,'::;IA"'{{"""" ,,- 'oJ" D'", " ~ ,"'r" í'.:.:-,,~ ':::~,"\ " ':"':'>';:-" ,. '.:.¡ "'.\ ! , b v ':'\ (~~U~;~~~;:,':~ -;;"'>. './ , , \. ",.:,~: "- p' c' "" Recorder ~ -i;'"'"J,c:';\:~'i"./ II';'",!!fO\\'.:# IJJfmlf>~ ~ Irlw~.¥ SaIl DI8cD CuaIIJ. I'.1IIfumia ~ DCT 1 8 J984 ,/ \1~3 ~-\ ~ " ' ~ ~ecording Requested by nd When Recorded, Return To: ) ) ) ) ) ) ) Space above for Recorder's Use David E. Lundin, Esq. Fredman, Silverberg & Lewis, Inc. 3252 Fifth Avenue San Diego, California 92103 AGREEMENT RESERVING PARKING ON THAT PORTION OF LOT 19 FOR LOT 20 AGREEMENT by and between LA JOLLA VENTURES, INC., a California Corporation (" LA JOLLA"), THE CITY OF CHULA VISTA, a Municipal Corporation ("CITY"), GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND Trust, ("TRUST"), and BANK OF SAN DIEGO, a Financial Institution, ("BANK"). WHEREAS, GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for LOIS J. RICHMOND Trust, is the Lessee under a ninety-nine year lease of Lot 20 and a portion of Lot 19 as shown at Book 565, page 25 of the Assessor's Map as attached hereto as Exhibit "A" located at Broadway and "E" Streets, Chula Vista, California, and WHEREAS, GERALD HANDLER and JUDITH HANDLER and BEN .DSENBLATT, Trustee for LOIS J. RICHMOND Trust, is a Lessor to LA JOLLA VENTURES, INC. of a fifty year lease for the above-described property, and WHEREAS, BANK OF SAN DIEGO is providing a loan of money for construction of a building on Lot 20 to be leased to SAN DIEGO PIZZA NUMBER ONE, INC., dba GODFATHER'S PIZZA, and WHEREAS, in order to use Lot 20, LA JOLLA must provide adequate parking which is not available on Lot 20, and WHEREAS, all parties wish to reserve a portion of Lot 19 as committed parking for the benefit of Lot 20. THE PARTIES HERETO AGREE AS FOLLOWS: 1. LA JOLLA agrees to and hereby does reserve that portion of Lot 19 leased pursuant to a fifty-year ground lease for parking for the benefit of Lot 20 for the full term of said fifty-year ground lease. 2. All parties agree that the right to build on and use Lot 20 is personal to LA JOLLA and does not run with the land or accrue to successors in interest. Æ- //7cYß 3. LA JOLLA further agrees that this reservation of use may be recorded with the County Recorder for the County of San Diego, California. DATED: /.tt //~/:'~ 7 !.~ ATTEST - . //~lerk L/ ATTACH NOTARIZATION FOR ALL SIGNATORIES Q- \\'"\t3 '= LA JOLLA VENTURES, INC., a California Cor ation CITY OF CHULA VISTA, a ;:~~Ma& C GERALD HANDLER and JUDITH HANDLER and BEN ROSENBLATT, Trustee for ~~ GERALD HANDLER, \ ,\ CtL )~O'-u~ ~ J ITH HA DLER, Municipal -fìvL.w1i~ tee THE BANK OF SAN DIEGO, a Financial ?iE [ Q- Thomas E. Anderson, V1ce President By Le~~~Sident ---- - (Public Agency) STATE OF CALIFORNIA G ) COUNTY OF SAN DIE 0 ) SS. On this 17th day of October , in the year DUANE M. HUGHES personally appeared, known to me to be Mayor of the City of Chula Vista, and known to me to be the person(s) who executed the within instru- ment on behalf of said public corporation/ Agency and acknowledged to me that said Agency executed the same. ^ I I I I I I ~ p::: ~ :J:: ¡i3 ~ p.., ~ E-< 'J) I I I I ! v WITNESS my hand and official seal. Signature /!~¿fIZ/7L/~Ä" 4[~- --7 ~- \ Ilt3 OF CALlFO8.NIA D. y OF ~an lego October 17, 1984 lotary Public, personally appeared Ben Rosenblatt } ss , before me, the under- lIy known to me) (proved to me on the basis of satisfactory ) to be the person_whose name_-1-S-..--subscribed 'hin Instrument and acknowledged that he executed the \ /~.-'.4.~ A~ajk¥ '82: Çì..~ \ \lt3 T. NO, NNOO737 21945 CA (1-83) rporation) 1984 before me GREGORY R. COX Title òl'.a",.y,.aaa",. a.......a ",a aaa""".. .""""'.l'J'.""'."'a """. "V ~ OFFICIAL SEAL 5 -- ~. DUANE M. HUGHES == ~ IÜ .0 NOTARY PUBLIC - CALIfORNIA :. , PRINCIPAL OFFICE IN ~ SAN DIEGO COUNTY My CommissIon Expires March 23. ÜJ86 (Notarial Seal SEAL ~ ," d"'li:f".-.J'cM~ ~ ~f-6 q.'V.Th"'~~ V tf ~ m ::¡;. «"""-~ O¡::FICIÞ,L $I::!.L ~ /- ,«r,~t.. ,,'" , ~ ";"1..";"'.-;'" "'RDr::L¡ ~, A C".)'v,1.'1 ','- ., ù\" n. - -,- .. d !'\j\ ?1 ~~ t:;r~"':'"..~ NOTARY PUSLiC. CALIFORNIA ,P "",'. ¡¡ ";; tp.:, " '0 PR,INCIP. J\L OFFICE IN ~" ~- '" 'i,' .J1. ~ ' . St.N DiEGO COUNTY ~, .' My Ccmmi:sicn E~p, Ju:y 25. 1988 ;:e "^ ""Y'.htt:l'r:l'¡J" ."'¡,¡8..8.. "';'~ ",,""%"r:"'f:l'.fiñPr1'~ ~ TICOR TITLE INSURANCE ;TATE OF CALIFORNIA ;OUNTY OF ....5~/1 /~~'<9 ¿;: I' )n C'c h. h,-,' " 7/ /'/ i <7 before me, the undersigned, a Notary Public in and for aid State, personally appeared' A,'///;J~/'", /~/.-'rl ,../ lersonally known to me or proved to me on the basis .f satisfactory evidence to be the person who executed he within instrument as the 'resident, and-'-'---'--"'--"'.- _.--------- ------.---per.sonally known to me or ,roved to me on the basis of satisfactory evidence to be he person who executed the within instrument as the ---------- Secretary of the Corporation hat executed the within instrument and acknowledged D me that such corporation executed the within instru- 1ent pursuant to its by-laws or a resolution of its oard of directors. vITNESS my hand and official seal. /- < /' / / ignature /"'.'f:7 /' /~ 'lj:?-,,/~ } ss. f""""""""'" Y.I'J'-rl'.h"""""""""""" . ". c............,., ..<:' ,~ OFFICIAL SEAL :; ~~....-\~ DUANE M. HUGHES ~ ~" 0 NOTARY PUBLIC - CALIfORNIA $ , PRINCIPAL OFFICE IN ~ SAN DIEGO COUNTY My Commission Expires March 23, 1986 .. .'" .......... "'...... ... ... ee".. .... a .. a....., ç:L-\ \10 (This area for official notarial seal) IE OF CALlFOR~-!1ì> >¡ /. JNTY OF)-" /--"'- d~~.~, / ~'Yt.y;,.~ 0FFIC1ÆL SEAl VtRGINA M. AMERSON MW!Y POOUC. CAlIFORNIA ~PAl OffiCE IN SAN DIEGO COUNTY ., CIIIMIissioa EIp. Jea. 16. 1988 JWLEDGMENT -General-Wolcotts Form 233CA-Rev. 5>82 2 WOLCOTT5. INC. (price class 8>21 }, e '7/ /! C¿. '. "-. ' " c,t On this / . dayof", ]' h Lo.. , In the year 19~, before me, thë;.~Br~i?;;~,:) Nota~~~~~/~)¿~~ ~ said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person- whose name"':' subscribed to the within instrument, and acknowledged to me that _he- executed it. WITNESS my hand and official seal. ~- .. - u >:; Q A,cV-----/ '-= - ,/ Notary Public in' ;nd for sait " State, ìtJ ~ ~ ~ 0 ~ u ~ ~ ~ ~ ~~ () z :: 0 ¡:::; z ~ UL-119 An 'A,LlFORNIA -:' ~. / UNTY OF '\.~ ..c-;-<./ Corporation Acknowledgment STATE OF CALIFORNIA COUNTY OF } 55. On October 1 8, , 19~, before me, the undersigned, a Notary Public in and for said County and State, personally appeared Thomas E. Anderson, personally known to me (or proved to me on the basis of satisfactory evidence) to be the -------------- Vice- ,President, and Leanna L. Wheat , known to me to be the Vice-Pre§~~MIf of the corporation that executed the within instrument, and known to me to be the persons who executed the within instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed the within instrument pur- suant to its By-Laws or a Resolution of its Board of Directors. Notary Seal WITNESS my hand and official seal. OFFICIAL SEAL CYNTHIA ß, GENIZA NOTARY PUBUC. CALIFORNIA SAN DIEGO COUNTY My Comm. Expire. Jon. 2, 1988 r~~ ç6 þ~~~ CYNTHIA B/ G~IZA Notary Public in and for said County and State. ~,\\l~ ..-, / /, ". "-" " ~ ~,. ~ ../.' }ss . '---, " On thiS/ ::rrX day of E 7;L ' , in the year 1 ~ "2( before me, ttle!J~dersigned, a Notary/. -P. liC... in and for said State, personally appeared l / ../.... T Ç/, .'J/fo"o¿ ,,' A.~ CWICIM. 8M. 'e. VIRGINA M. AM. IIOTMY puauc - CMJRIIIIII ..ICM CJIIF8 . . -~..., , . "60. -..... , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person- whose name.,.d subscribed to the within instrument, and acknowledged to me that She- executed it. ~OWLEDGMENT -Generai-Wolcotts Form 233CA-Rev. 5.82 82 WOLCOTTS, INC. (price class 8-2) -nt3 /----, . I '- ) ( // ' ~ .-<C ~ ~ ~ ¿ /"~. <,,-' , / -' ~/-;7:7 ;7 /-L-~ Notary Public i~ and for said State. WITN ESS my hand and official seal. "