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HomeMy WebLinkAboutOrdinance 1628 N.C.S. 09/03/1985• j ��(NgIJcE. L J PETALUMA MARINA AND OFFICE BUILDING OUTLINE OF GROUND LEASE Landlord: City"of Petaluma Tenants MARINA OFFICE PARK ASSOCIATES, a California Limited Partnership,' Consisting of Richard Coombs and Bor.ue H. O'Brien as General Partner's 1. GENERAL PURPOSE: To obtain a M:arina'of 'appr.oximately 200'berths (plus or minus 30 berths.) by allowing construction of R office/motel.buildings (the "Commercial Project") on I City. land, the ground rents from which they will;pay for'"the financing needed'to'construct the Marina. 2. DOCUMENTS: A. Agreement Concerning Development ("A.C.D.") - signed by City if August, 1984. B., Ground Lease ("G.L.") - proposed. 3. LAND -COVERED: A. Approximately 32 acres now owned by City ("'Schollenberger Park") . B. The,parties anticipate that the Marina will contain approximately 200 be'nths ('plus or minus 3.0 berths') and . r that, th:e Commerci�a•1. Project- will contain buildi,ng,s, with "` approximately 2-00',0,0.0' square feet!. of•.off,icemotel ` build,ingp 4.. COMMENCEMENT OF CONSTRUCTION:- • ��, _ A. Tenant must commence construction,of at -least one build'i'ng of at least 5,000 square feet within five (5) years of execution of the Lease (G -L., Paragraph 2.3:). 5. PLANNING: .A. All des'i'gn and planning services for both Marina.. and, the Commercial., Project will be provided by, Tenant at their.expense and completed during Feasibi.ltty Period (A.'C.:,D.., Paragraph 3' and G .Lr: '9.10:).. B.: Al 1. Land Use Approvals for, Commercial Proje;ct shad be obtained by Tenant at. their; experise (G.L.`Paragraph 9.1.:1;) • - � • (14 If riot obtained in: 4 -,years;, :Tenant can; terminate,Lease. (2); Th6 'Commercial Project. -is.:not pre;=approved. When spec -if ic,-plansi are prepared., they must :be processed through the Planning pepartments and other norma=l, 'channels• 6, TERM: A:. The'in`itial term of the lease is 50 years with a- single .option to .extend for an. addit-iona,l25 years ar such:=longer initial or option term that may be al-lowalAe•`uade'i any future amendment to City Ch'ar-ter but., .no e�ent'moe than. 99 ;years (G L ,:,Paragnaph But ,if Tenant; does not commence. const"ruction :of the Commerc,1'al Project+;withi'n 5 -y"ear.s, Lease* automat 'ea11 y: 'te'rminates. ('G:L".:, Paragraph 2.,3;) 7. RENTAL: A. Rental; Commencement Date. (1-) Tenant'must commence paying rent on the earlier• of (17),'.,30 drays prior to' -date City _is - - 'requdred -tO commence payments on financing Obtained n -Z to build -.Marina (G.L. Paragraph 3.1) or (ii) 2 1/2 years after Tenant receives a Certificate of Occupancy for one substantial building of the Commercial. Project. (2'), Tenant pays rent twice a year (G.L..•Paragraph 3.4).. B. Calculation of Base Rent (Paragraph 3.2:): ^(1). General Rule: If the.City finances, the construction of the -Marina, rent to be paid by � - Tenant will be equal to the 4 greater, of: , (i,)' Operational Shortfall; .or (i.i) Per:centage Rent (2.8 -of Gross Rents *from the Commercial Project). (2)' Def'init'ions. and Special Rules': (i..)•. Operational. Shortfall is defined as Marina income less "agr.eed' 'and budgeted' operating and, utility- costs" (see G.L. Par-ag"r:aph 3.2'.l) and the City°s installment - payment -on its financing. (ii`) "Gross Rents" ar:e defined in G'. -L. Paragraph '3.,2..3. ,q If the ;Operational•::., :... 'n 1� e r •;Shortfal xceeds`Pe centage Remt, ..theh_Tenant _ - receives a credit -to te: appla,ed irn future s •years 16: which Per=c.-ntage Rent :exceeds` -the. . Operational Shor'tf`all }.(G.I L. Paragraph 3.2-1) . (a,): Aetual Rent. paid cannot be reduced below $20,000. (b.) The City does not pay interest to ' 7 a' _ •. Tenant :on the Shortfall Credit. (c') See Exhibit_"B" of G, L., for, example - 3_ - - �7 is .��,.. - . • l s 2 g' - .. e.>� .:� �� R 2). Partlilmar:ina Financing by Tenant: (1) Same rules as, Section 7C(1), immediately' above:, but that Marina, ncome will be used to repay' City,°sl debt, before it is used 'to pay debt incuroied' by Tenant -in building a portion of the Marina. (,G,.L. Paragraph 3.3-2). Noteli Marina income cannot be used to repay debt Incd-nred by T6nant, to build Commercial `Project -('see, G,. -L-. P&%ragraph ID .0ther, Rent P&id.�by!.Tefiant: 1T6narit.T�must .also dy the following; ,a s, additionaL'.'rent to; •th'ei City: ('a-)•PIPSa- nd,.Impositions�,. for Co .Impositions. . 4 Pr,6j,ect . ('G.I., Paragraph 4). ('b) Insurance for Cbmrd6rcia1-Project (G. ', ll') P&tag,r,aph (c,), Maintenance' and repair of Commercial Project G. P,a,r,a,graph 13). d .:'tl." f Utilities- or. Zommer,cial Project(G.L.. 8 iF,INANCING,70F.,°':IMPROV,EMENTS 'At - .i `tbmmdt;c V r 0J* _7Q,3pct., I:s s ng;ibi' -Lt r -,cannot be'T,':' T f*Or.c4& to, 6�ubotdiinat'e to, construction. and/or permanent; "f-inancing. (G.:L-. Pa,ragraph, .1&'. 2). Tenant' may use only their -leasehold interest as secur-ity (G.L. ParagSaph 18.3 18.7). I B,. Marina., (1)If b-u;'lt :by C°i,ty,,. the City' responsible for: „ obt,aining° ,financing. . (2':) Tenant has theopaibm t;o fi ance all or a- _ portion of--;tfie •construct'ionof th_e Mari"na. 9'.'. CON STRUCT:IONd " A. Comme'r'cial-.Pro;je:ct:: (l L ., Paragraph 9:: 1' To ,oe'' .builti:'by Tenant (see G, 2)' Plans must be approved by City and: 'other. " I `'app icablen°agenci°es (;G:L.•, Paragr;aph 9..1;.:1 and " (3) .'.,_a y has'the right t6. reviewC the construction J . t a'11 significant a gimes (G'.`.L Paragraph 9'.3, an 9 (4j.'a'Tena.n,t has `,the right to: alter, and, "`remodel (yG..L... Paragraph 10), • s (5)) . Tenant; must commence; :constru`ction withkn 5 years -Pa ragr'aph :2 Br Mar;i'na ; y QCi,t and r` (1).-To,".be :burnt •by y e G L. Paragrfaph 9 10 2 ); is, n ( City of required ,to. .!commence, construction until Tenant commences "cons,r,uct ion ofCommercial Pr0j,ect" b (3) City i`s to tart cons;tructlon of ,the-Mdr,ina • z; ;<` with n, 1 'month. afaer Tenant; starts 'construction. :of the C'ommer,c`iai Project, Tenant shall be . responsible fo,r application''fees, and loan r pr•oce-ssi`ng •,docume6tation. Is 10. -OWNERSHI .:: A; Marina: City will own Marina (even if costs of construction ,are wfiol-ly or partially p'ai'd by Tenant);, B., Commer.cial_-Proj'ect: Tenant will lease landbut will .own= ;buihdings 11. OPERATIiONn' - A: Marina: City will rgnt berths, at.fair. market r:ates.. Tenant has, first. right to' manage Marinaa,as C,i'tyOs. agent op..tefmsr agr`eeabl:e to City (G.L,., CPar_agrapfi 9 10:),. .. - B... Commercial Project: Tenant, will managel.-the - f ect, subjectto the limitations s`et forth:, r ♦ Comm,-er,cial4 Pro,j . , „ - i'n, the .Gr-oun& -ease. C. Par,king: Users -of the Mar 'i`na shah be' ent-itled, to -.- pax k opark on.the, -Commercial Project and, vice -versa (G. -L.-, - Paragraph 9:10')• 1.2:: XIABILITY•s A•.; 'Tenant wi]:1 i'ndemni'fy City for,'liability,, connected wi,Gh.Commerckal Pr.oJect.(G.L., Paragraph 22). 13. ,ASB-IGNMENT/SUBDIVISI;ON� OE ,L"E'ASE&: r r A 'Tenant eha11 be= allowed to'>subdiwde thee Ground . Y Lease provided such subdivision does n;ot alter basic-., r c terms of Ground LeaseF or result -in a diminution ofr rentW. z may L ,, Paragraph 1 ° B.. 'Tenant shal`1 generally' not tie allowed to ass"gn the. Ground Lease. or, subd'`-,vided •portions thereof w-'t'hout the Ci-tyOs prior, consent (,G.L..; Paragraph 15.1 15.5). 14. DEFAULT: A.. If the—Tenant. def.au'lts; the City may terminate ,the Ground-;'L"ease (G..L., Paragraph, 20)1. � z m „ -� pK- B`--, If the tity ter-minate,s th,e 'Ground Lease, upon a. ' d,ef;ault by=.Tehant,' then any and all 'improvements 1'oca.ted o,n the Comme'rc'ial P,r.oject ar`e forfeited to the, pf 4. t • 1 21. k } 877 r.. 1U4 L a r. .... - c., , - " .. - .• 1, i GROUND -LEASE> CITY OF PETALUMA (Landlord) d MARINA' OFFICE PARK ASSOCIATES (Tenant:) r - uy ? b� v r 3i� '� � a ' F �x h z, � , Fr + 3`.: r �„s. ,� Jdtf s � -•v - '� - r '+ ,g,z { � - �n x, e i .k � 3 s 7 'i nBt 1-5J--F^+ei . ro . 'ir F' - lsu R7r`i 1 a z._ k.• '..T` �`, xl' �..-F�k ,,4 rye psi- zVxsf7,t. s ,5'•�'r,tw i _ a J >' �. �, �• Zo B JF a xi+.� �+..- s t;L-. j1 }`.."5.# .�' l .. 'tLuby :+'sSLLF� F- �.i M�"'`Pi. .� it � F u � }��.>• -¢regi 4`�'S ��fx �R�' I iS� rcp t Y�4iL % 6+"' `',v � � a .� .� •,r. ,` atm ,,, y • t n`t,F•�' ) t v � � :, �c .� � x a� _. N � �y t..{ � u �t � .at •t. fi .}; ,� F,t 'ls �' y a r � �+ 0l e 3 4 e s ri• � rt z{ t i Rs i GROUND -LEASE> CITY OF PETALUMA (Landlord) d MARINA' OFFICE PARK ASSOCIATES (Tenant:) r - uy ? b� v r 3i� '� � a ' F �x h z, � , Fr + 3`.: r �„s. ,� Jdtf s � -•v - '� - r '+ ,g,z { � - �n x, e i .k � 3 s 7 'i nBt 1-5J--F^+ei . ro . 'ir F' - lsu R7r`i 1 a z._ k.• '..T` �`, xl' �..-F�k ,,4 rye psi- zVxsf7,t. s ,5'•�'r,tw i _ a J >' �. �, �• Zo B JF a xi+.� �+..- s t;L-. j1 }`.."5.# .�' l .. 'tLuby :+'sSLLF� F- �.i M�"'`Pi. .� it � F u � }��.>• -¢regi 4`�'S ��fx �R�' I iS� rcp t Y�4iL % 6+"' `',v � � a .� .� •,r. ,` atm ,,, y • t n`t,F•�' ) t v � � :, �c .� � x a� _. N � �y t..{ � u �t � .at •t. fi .}; ,� F,t 'ls �' y a r � �+ 0l e 3 4 e s ri• � 0.¢o'•:; -. a, 1 a i:• X Chan es Alterations .aid New Co.n's°truct"ion 35• ' 10 ge,,, Alter & Construc:t. " 35 9 1� Right to Chan 10 2 Right to, D'emolisl and' Replace) a 36 , 10;:3 + C'onditions Precedent 3',6 XI Insurance 37 11 1' Casualty Insurance 3'7 11 2 1ity ;and ',O.ther Insurance 38- 11.3.Policies; 38 11 4- 'Le'asehold:Abrtga,ges 39 11S.;Arbitrati6n 3 9' 11 6 'Unearned Premiums• 3 39 71 11Blanket Policies.:' •3'9 11 ;8 nable Insurance_ 39 Unobtai -11 9 Waiver of Subroga-tion,. 11 1;0 Certificates 40 XII-. Destruct Iion andRestoration. 4'p ;Res:toration 40 ' 32 2 Insurance P•roceedsc 4`0 ' t 12 3 End o,f Term'. q,1 XIII; yRepairs, and Maintenance, Inspe'cti`on n_ ,} -..13 r 1 General4 w N "Vast ,TSLYears ofd Term , s 4s3 n ens, =r ayment 1i 14 2� Tenant (Procurement 43 r XV Assi enf - ,Suble,tting x n Gene al ti 44 4nm 15 1 I r -, A r 45 a 15 2 Consent Required r,' 9' t =Leasehold :M'ortgage's. :4;5 :15r 4- 'Sub'le'ases 4'S 15 5 Tenant Controlled' Partnership 45f XVI` "Subtenancies 366-61`- Subtenant `N'on- D1,stur-bance' 4�6 , " 16 2:• •Subgroundlle'ases> 4"6 y.tF4 Ri XUIkI Surrender and *ght to Remove ' 475 sf ,Surrender oft Premises 147 17?F2M :Sub -t' enantS..r, est .yJ� _�F k �,:,..„ r y$'447'��at3• +Teat - s t:tiJa �.1+�7 3 Fixtures ands PersPropet ona}1 ry y its x,48' s aq J� r 4 o i z cz �;4 � "��XY3 �° t� ;: �' '�-v17 r4:;:Abandoned,P,ersonal�`,Property t,;� ��� rr�f,�N•� a ��"4°8r s •w�'��`..•` W x <, rti n G .;p h. $N,'�F �`>»�,` t a e , r:, fv.',-- `� l' c f c,•. - r5 - d' , �7K' n ,,r-•iia?r-,rt3- If' t... L I>. }• � t`, t ,. s.at. Y r�c�... �'�"� a�-� _ s�g¢;�� .F j� A • yr3. a 1,8 1 Landljord Nott to %Encumber: r p i 48 ti J - jlJ`s. L y,. : vs'. it •a •.' J4X.," v ,,; f.*!9••~ N` ' a" K asn:r 1+8 2� ,Inte'r'ests Encumbered :+(r�?t r s r Kyf }'yi a;¢ t a 7 8 4{3'I2ent �_� z�r 49 r r -� 184 °Construction Loans u y F S 4b9 r inn Permanent Loan J �° 5:;0 rte1`8 6Leasehold.:Mortgageea Protections - '1;'8-,7 Lease' Am6ndments 5.6� . 1• b 4 C v4 n )11 'T �, 4 . < _ t r w 1 i $ ' • �� y'v ilk I ` - �q: A 9 11 �A • a ,- t f C n ._ ^vi '1 ?1 {ffS f -t' h yr f it -�'•1 { IP "li` 4! '-r. ., ``,rl �P � .'� ,. 't Y ] .,14 x f ,`41. '- : -_ ^ a' • Y g �' A fr-i — .. . Q•t '1.r r _ S o .�+ t a 3'r4 . µ4,o ' r 4 3 n a . , M INDEX . - TO GROUND LEASE -ARTICLE HEADING PAGE'• I Leased Premises, - 3: 1.,1 In General-.: 3`• 1 2 Designation of Leased Premises 4.. 1 .3 Subdiwided.Ground Leas.e_s 'and Sing.le:• Leases b s, II7. ,_ Term° s 8 Term, g. x 2r 2N-' Option to ERtendi, g rFailiure • to. `Commence -Construction 9 enant" s- Right to Terminate: 2 3'r, 2 4 T 9 =r III' Renu y 9 3.L Rental Commencement Date 9 '• j 3 Calrcul+ation sof Rent, La"ndlord Financing a 10 2 - of Marina Y. 3 Alternative u Calcl.t aion�-of Rent, Tenant 16 financing of" Marina, rµ i - ;3`.4_C Biannual Eaymenfsa' 20 v r 3 5-Net,Lease ' 20 3.,6? Other,' :Rental' 20 �. = IV ?Impositions - 4.1: 'Tenant's Obligations 20 4.;2 Exclusgns= _ 21 4'.3* .Receipt's 21 4.4: Right to Contest 22', 4_5Refusal of Payment 22 V - Landlord `Performance,, of- Tenant"s, Covenants 23 + VI -:Contest of Government':•-Reguatons.s 23 - f. VII Use O£ Property a r24 Existing Improvements' f25 3pIX Y �;� Construction ,and Improvements' `t''�,'•9" 1 'Obll ati'on tb COnS.trtlCtRL' fr'lr „1 '� >'ryy� h rf- 7 9f;,2'*f �Commencementr and'.Phasi;ng D 41 c - � ,9 °3 Inspection,:ands Nonresponsibil-ii °a , y, s x-28 -, { 9r 4 Cbnstruction':Contracts ;, ':~ r r'i t-2. i .-.9,;5{ Remedies Cumulat xe xN 28411j, 4 Completion Requirements` a5� 29 .,. 'Si s .. � a �`" J. is E w w iv ^ 9 -: 9� rs g 7 Public: asements and AsS,essments �' `2 f v 8 Insurance t t;30 9 9 Title 'to Zmpiovements 4 h 30 , 9'-•10 ',Marinal. Psoj!ect•, 3'`" r :30 y' 9 11 Inspection 33 %§ 1.2 '.Com Let ion::;` 34 x P 9 13' Termination of Abandbnment 34 cs 9 14 Un avoid able .Delay, 34 I'll.; 1 J •+ r�`d G � a i e � Ey f�'• -9 w t .. • j ,xI'X Eminent Domain 57 19.1 In Genera-=1, 5.7 19:„2 Taking ofr Entire- Property 57 ' 19..3 Partial. Taking, 58;.* . ` . 19A '=Tak•in,g of; :Other' Property 61 ”. 19.:5 -Temporary, ;Taking 62 .. 19.,6- Sublease"s.. 63' Remedies XX. Default and20 63 1; ,Event, of Default. 613 -26-.2 Term'inationr ;'65 • .; 20 3 r re ent Ne 20 4 .: 'o. Wa'i v r,. _ 6, •. XXL:• -Indemnification ky Tenanfr A k 67TH Miscellaneous XXTI•68 t i= tt 224 1 ''•Nof`ices ` v 68 22_2 Quiet Enjoyment . . 69 22 3 Arbitration' 69 i 22 4 r est 7,0 < _Inte „ 22 5 Litigation:,' 1 70 22 6d `Con'strtucti"on r`7p p Y° 22� 7 Bindsng 71 22 8 'rRecoriiation: r•. 229 ,`Consent q1 22 10 ` Estoppel Certificates Partia•1 Invalidity :°. °�_ ; i. 22° 12 Captions> -. -7,2. 3 13 • Conflicts'; ` a % 2 2, _ 2 .,L4!' ,Right of Fi st 'Refusal 72 .SIGNATURES'' 7''3 f � � f r Z �y' - 7H Tn'"S` Y _ 4. d. 4 �- � a• „t., }_� t%,.•'1 J,, V l i. tFt 's- , i -c +.-eft '4 ait.°u a ,i •„ .> as �. .',Y. 'D k: 'Fy�J 4 '1:. ,LT � ) � t 'i: 'S1 «L ,! � "Fe - �n • [ S. 'ik _ JS •i/ ' �i �' "i,' ;1 C. � L ? v s.,, - Y ,# 1 _ •1 t `1 1 'r. l r:W L. i<34, J ¢ �• s 3r Hi, t4 t }. ,1 t ^`r't iN i' '#�i• �R�'i T 3" �f ++ ! � +Y"' .k`i,. .v R. yy K ,. 4 x 4,;• `� .i .�' 5 i. ai s '•� , � 1. -•. '• �• ., � � r•Fh t , . " ..., ,. • , .,, ,. .;s N 7 � , _ , lt6'��, t � sa r•+ r , RECORDING REQUESTED'BY: x" ) WHEN, RECORDED RETURN TO: GROUND, LEASE' T o t (H L e" 1 erect int as , HIS. GROUND:. LEASE,_ Seas : is, made and ent _ � of"the day'. of 11.985 (the "Effective Date"')' + t, between `then` CITY; OF-, PETALUMAI, a public 'body ::corporate and politic sd h- 9a g a �r s w .• _�. a } ar'. -.d i a r'y a(nLandlord')`, anddMA`RINA OFFICE PARKr ASSOCIATES, a Cal<i`fornia rv� E r ,Limited Partners,rp-, consis;ting�o`f RICHARD'COOMBS `and BORUE He ' C .c Y y"a7-d t.t � d ��, •4j � ;' � : a• > � .. - `� Fit � r - t �:� r '� "5 -. Y ' O,f' BRIEN as` General P,a=tnerar. ("Teri'ant" c.. A I; :S This,.'Lea"se _vs made -and entered, into 'w,ith^ reference to the fon"ow-i ng facts` 'A 'L'andlord is the owner im'fee simple "of .that certain c. real'' property situated on 'approximately; 32 °acre s ,commonly known ' ".2 w y -0 -as.Schorllenbargei Park located in. the City of Petaluma, County of + r L _ ✓' •�. x� l ii sem• -' i Z~; '� M - Sonoma, designated as.'Assessor's NParcelY Nosy 003 0,:60 24 ,ands cP y ty 005 060 27 and more Particularly 'descri.bedr� iii$ Exhibit "At" hereto �c 'h �'= '', ,'„ z` JSal'4q ,D�•*r %: ,� s ori t f Fr+:". c } �•i',.. q, `�•�°'�,riv rl'H 4. :s" e. > r� r. L .t§'tr:«u a 3'.- n_ - rv" =°`� T". rjr.xA,.Tr�a, iJr>p _.i !s v '`i?-,�,'l ` r ^' uM e t F kn a s e 3a+a g; -''K�at �a (4theiu..Re'al'ty PrOPertykYa�ht.:�'� ..::` 4' �S r **l a` n�.: st'^. "•4..;t$ ' -.t;;' i. _ ^7 4w sn� 7w'F °'R"'1..c'4� ' tg '.. 3, '�.i. a� . �BJi7fi ..�.7i,F',. d,$tb J 7 zTr sT Sda- .: , - ",''� r"'y .r' �3° .v =TX•y�-4 c c S. ..,�v,.��.i: ,r#�''..�- a,.• "Ahr'°•tf +'c`r'k v i�,'d� • yt.': �,n°�.:�"' w ^•uz ,,: ``'�..':'w .:.:+' :..'i ��y., °ya't-f+-+n•: x ru* k &1�or d`hand-rTenant<aprevrousl"y=have entered intoi Lan �s a .,t,� 8i,,. - as �"� # 1 L��1` .a c✓• `#,"§ . a. a y:. �` r c .� rr�r°�,.ti••�� N �. � � f';,. ti.r irs _ 1 - .��M 3 <. 'the :Agr,eement- Concern_.ngt DevelopmentT i(hereinkso cal'led)adatedl,:E.}' ,�3•�''�# '�' A t �p3._r y.k.,, 4��T� ? >c � 'C�i+ti�titi�k�j �r n �r � �.'�:;, a ¢198�'�ate� nt -:;N6A, IsY i� r a• u � h.- �� t r r > a 'r d in,the Official Records 'of Sonoma County for the. yn 6 r F t § E t+by�T aa;C t°-(�a ) :F deme opmen enant„of ommercial`:Pro�ec s. herein defined and;,tiy °L'andlord of w Marina• (asi herein= desci-sbed)'' all to be`� als,c i 4_ R,r }' �+3, s th I n 8 r r o s "y.�.,.y x �`;:� � ��� t � •y; �'� 4- �' f .� s r v e r: � a ,. tt a ,�' ?`4 l _�., r r , rt t s h JMF 21 g>1 8'/ 1�3?/ &5 '- i rF sn il .” '4d .�y a f9f� •C1 # t -.>.�3 ,;S." '� k z .c f n-- °a + _ J*.• r i - ,�. y w z 0 YJ 4� v 1 b rc � } •.� xyy. '. J` '� d .� qri �p i't _ r✓ ,. .t ,. * �. _� _ �t � a Tt� , �' "¢ r `a. # t � R .''}�n e. -� ?•' ,, '", - t ..t�`J u y, `� : uXa �'_� 1 ,pti' t� M_ ' .�xy �'r` :. 0 .'t -,� s .H � ` �. -. t f[ , i,. s i t : 1 � 't i Z,a - r I . O I1 4 - - - � F . . 'F.. '- +":Y11 . - . 4 . - .. ` I , _ - - constructed; upon the Real-.P,ropeity The Commero al Projec£'and - ' ' the _Marina. are descbed i•n Ar,trcle IX, "belowl. " , " C . 'the, Marina i si yto be. cons'tr'ucted by ~Land —ord from' - ._ . ' its,; own- "funds ton a po'rtiori :of• the Real Property to be` .located rin ' . ^ . '. accordance with the`terms-'hereof {the` �"Exc'l ia6d `Land"j;. The " C - I•- ._ , Excluded L''and, once formally loca',ted,'^shall riot be.a part of this s t o � . m -' Lease except for;. -such ,easementsf anr.d, mutual Mand reciprocal rights . :,. � ,. 1 - .yf '^ _ ','� r= granted'or' reserved' hereunder , r y. _ W.' r .df . I 1 J _ . K, .. �. '. :. ommerc al Proj`e`ct rs to ±Fie develop_ by Tennant , k D The C ;11. . z y V .. on ,a=portion of",'the real ,property. to bei 1'ocated in accoidaiice • r ¢' h t ter s here f!b�the "Leasedr Premises")t, whrchwill include»�� wit he m o { „� rs onlgf those; portons�of the Real Proper-ty' up'on rwhich the ����F L' t Y s " ",, � Commercial;'ProJect`.is �appro�ed pursuant'°sto . e Landr Use Approvals, -' ' • , Cl 1. '. r z r. F a A} t i 4 a. o `. i d v�, n "zu , k5 z ' '. n , � s is .` r (as herern-defined)r Until the L'andf Use App=o�al�s:are-obtained, n1. �` s ' x , tLandlord and Tenant°'cannot • recisely identify the Leased; H _ k P. . v ' Prem ses,,'but they will do §o upon obtalning14the La1�1nd U.se _ ` Approvals 'pursuant, to; Section 1 2.' of this Lse_ase All • . , ,;�, r ., • . r . "`" 1. "' improvements eonstructedron"-'the 'Leased,tPrem ses,,=and , y` , a ,�� restgra_a ad,,_; o. •and replacement thereof shall, be called:., �;� 7 , ! "Improvements",'and the' Impropements and; the• Leased!., Priemses; f . 1 sr;= , together shall be called the "Property" -1. I � A 1.A� � " E Tha ' Lease ishall no;t su ersedea,,the' A reement a ",1Vn ' (t' M N r- 4 ^: 7 ;� . -. r r t - v .r s G. .. v 4 r,,. r , g i __ 1-�''^ K A. - d a µx.• A-a' `; r y .5�; .�Concerning''Devel"opment° witki%` res 'ect to _,the Commercnal" Pio ect r r • y R K' ' a , t l d P J .� v, , f =. Y. .F 4. hy,''1 <} ,.. '}'..Y 7 Y Y r•^' S 1 e - 'i, •' YC ` Y, u t, 1l� � . L k- `� i .. v ` 3: y # .. 7, p _- F -'�' x� .x r z sit A, �. o ..<. "r` - r$. a �t K -•r a Sr n F r . e zt- ,,`� „ f ,F Oxy .a° lexcept where expressly ,statedtyto the contraryhere n mTheiN �'i`Fy . " f s s +' •:,, `I s i', w r' .'a . k Q ; K, n .� t� ''M, [ 'e- S s. 3"• s a. 1? _ ,� "..., `1'' i . 1 ' E - .c J' .!y "�''3, "'-,..4 UT y rs � . - 44, 4'�s..t ? .�,_'4'�. s �? a .,%, k: , .^ a d -K. -'.� r .,o.+ �, t C g, ^= , Y I .rte X y, a ,5. .'°` J„' ,k,. u �Pf, ,;. Agreement Gonce ningY`D'evelopment :wi11 .'cont nue xin Rfullp force ;and ,„�, `, 4 j c,<� n ? ,a ' kt>,r.: ..J} z-�'.e�r . t t` ry �t'i_ "wI mfc.: S i`1' d� i �. �'.' n�Lv . J rN°: 'SSt i a x:� '* a .l�'-� -CS �5+ c�✓F'' _p ” % ° - I I . "s "t s --r�'> effect,,wi�tYi re§pectato therMarina �and� with re'spec,t <to�ttlie ° - . �^- nit ,, , a £ S:. �a '' vi � °. , h ._,.', k°, : - tint; ,e ', 3 fid•.: +tc+?b y- } it ,� r t '. > y `� '�' S {.. .� ' y �,t+ ,3 ,. -l. r tet" TCommerc"ia1 Protect, as,'heren modified _ '� 3�v f y % F The panties?contemplate that.the Commercial Project F , may, be deyezloped in seueralr.•phases over,. a�periodr o'f seueial. i � ' , ,. -1. . y. ,�. , condit=ions ,o'f .thi_s, ears all in ac"cord'ance with the_ -terms; and I d w d �i s w — 1, ' ' �« �, ,� 3 a tew.� y f ° fiNn It ,_t M - t .. K i 2 r , r, m a L y, r y ..., 4ry r ' 3 4 � '+s' `. t. - - L.. r� 7 'E, -q '�, r •. s s a r '^ � /, JM 21g,1 8/�13T/85 y s m a.• , mat �� ter+� t ova 3n a x 4 t , h ^�, * or � .amu z . . ; - r `Y , F J % ,' �., T 'A ., 1* r a 6 1 F •• v t I 7 s .t5 r ^�., i `Y -n y r.. u :a. F r: ted." at 'A:p� t .r� t . �t : " : ..-� .n ,:� ,, �a 1 s t [ , e 16 Ua '`C a 1 3 sa ' f 1 1 = a � `r "5" z I - r1. ti'. s1 11, .11 „y �. I s r � - 1 ` .; a , w £ ;F ,, I` x g y t, ,IF i�':`:.T•"E- - . = .n .. , 4',. . . II ..r.. -...•d:., - . ..S . ,. ..k -. . . .. 'Y:.. . . r . �dRf • V i Lease.'The parties intend that the; rentals payable. to tandfioid` r.•; =; - pursuant to this Lease will. be utilized'by Landlord to''enable. Landlord' -to f1ha"nce Laridl`ord''s construction of the Marina and: other Marina activities ' G. Th'e .Commercial Projects ,and -Martina; when. 'fully :• ' , deve3.6ped, wi11''b'e:'an'integ"r"ated ;development prof"ect with- certain `' x' i, ` "' rec•procaT`' amenities~ as specifically ,set for-th -ins this aeasey,°but .r �- {will: be 'owned -s'eparately by. Landlord and Tenant Landlord w1`1 be the sole owner of the Marina and Tenant (as grgiind lessee)•:_ pursuant; to the ter-ms;, of this `Lease will 'be, the sole owner of.:'ttie. Commercial Project VA NOW, THEREFORE, inz cons!iderat'ion ofn the „rent,, �+ w>u t,� � r -,� � s �..: t �iy. n,r ,Sand' dlord'`� an�'' ' r covenants; :and agreementsY hereina-fter s'et" forth : Y_, Tenantti hereby covenant andr�agree. asT fol~lows] ' 'resµ:' rt , - ' "' • - y ,� - - 4y - . ARTICLE; ;I Leased' Premises: y} w 1.1 leasesg'to, Tenant:`and In Genera°l. Landlord Hereby IT—enant her-eby -leases from-Landlord those portions of the, Real y r - Property, to be determ'ned pursuant• 'to this.- Article, I (the "Leased: - ��''y ' ' Premises")'`, free' and +clear of any and 'a•11 thi-rd,party liens and ,. : t" encumbrances sub�ecat to theterms_andweonditions{and for.the " iY 1#4 x> rmi purposes* herein set forth,, togetherwith all''easements, 'rights. ��,4 a' .'�.,� µ �� d r.F',j• ,w•, ....yf ?" appurte�,r, ,..v,['u '�. S.,.f air. z`.•. a - 'Aar.,.-.: 'A; 'x`7 i _ w.d 4-ar;r t ' C`.-,.v t - 4 �' . r,.:s vg r,a;F and nanees�Finy,,connection "tkierew.th , �In the <event the �,� , , 4 Y t - fixYy r�- ,i ^ur; 1 ... 4�h.. µii a 1 i�., , ••:.r t t: t'" y,� .i1'•,�r'�a - :;y; ry.' v,n7� 4.�,, �..�ar,� x".._f'"Y'�... .;r as <'t%.+�, ,:::i; �2 a4.. •+ria 'S f.,-•'xy-"t'y - .ri.,' . ••` y 4 y�4..'., ar?y J' . r �„ n f- �� Q R z •F " • tiCommercialt Project nor Marina;osha —J- incrlude lands° owned bye pubrl'-ic, s�- `d`" e H : 2`, j..,' • ,, :: :r �t ,._ ,: �age..-." &'r "�. ,'.a; V lr' S ncies�otherw+W-M. .. is ra r a t r Pte`. ':, � 3 •;h TRET, S^,�•w _ 4'� } ur.`'k �_ :ice 'n.Y .��aa .,.� t..�'�i .{x%' ,, Fr-•,. r" .-'. k, �6 , r - A, x vh fs y� b:-�acqurre sutable;rpossessory.ragh'ts forthe�YPublic� Lands ;from`, the �t : 'f'} - { j 4 Y i �• , � w �'- •t1 "'� a; ° .t l rn �{ -v'z .' a `. 3 i.. � •.'a i i i gyp•• r � ,F � t - �,v a'.f �t �`; q �'a t,:. public agencies,°at fair market 2xe j � air. , a � s � .,� j:`.1 t x 1 '. � `. ! , > ,�`a `• ., rt ry concurrent"ly sublease said-:lands to Tenant pursuant to the terms, s. yr hereof, without increase*of ,:Rent. Specifically, the parties t: here;fo ack-nowled','ge•`that the' State of California may possess V l i k 1 =r T 3 + z JMF1{g1 n h e ire v }a ap,K �, ny pt.x'0�• 4wi a1 a YS- n ."a a' sr -+� t ' ! ' e�'�� I + S Yy y tr mat } �. .. f J•y. _ 4 .; � 5L r- _ i - right's' ,or . c'laim.• to'.:pOs.SesS in- 'a°.pQ rt `Q of the. Real Property and, in certain ar-eas between the: high :td"e and. rowtide marks adj`a'cent ;to then Real Property and possibly other, areas of the' Real ,Property (the -'.Sta'te ,La'nd5",)': ,The parties 'hereto: - - acknowledge 'that the: ;St`at'e Lands are necessi ry for the _ development of, the 'Marina Rro]ect- Landlo rd, hereby agrees to a enter` into' a lease wi't`h the+ State; Land's prior to the timeK Tenant is :r:eady to obt'a'in>th"e fi++nancin:g;descr¢bed in Artr"cle XU�IIZ and y Landlord ,agrees,�to .sublease. the .!State Lands 'to`Ten'ant for the term. and sub]'ecf to 'the eterms and; conditions of ,.th<is . L"ease (or: a for §uch 1•ease 'term -as is .acceptable 'to Tenant) In theJ event ' r Landlord should be unable'kto enter info a lease for the'`Publc Lands and/=or the St`afe +L'and-s, for; the termG of thisF. Leasei (or ,'for a A such"lesser term as would still be sufficient to secure'S.Tenant's+ or handlordst .financing of,,constructlo. Of ';the MaTlna> Pro]ect:.° in �,� ��A• - ' the manner described• in Articles- IX 'and ) VII_f- kie}low) ,; -then Tenant mayp at thele election, terminatE tfiis,,Lease, prodded,:, however,. that ,Tenant' .shall;have,the option,,,:at,lfscJsole ;election, 'to .::p"ay the' consideration necessary to. acquire =th-e:' Pubi c' Land's'- fi,(Vor �St_a'te Lands fo;r purposes. e 1 2 Designation of Leased P•r.em'sesr s 1 2 1 t4Initlal Lease Initlall+y, this Lease steal, r FI , 4 i { i 4-- Ar, qy s � i�' ?. -: 1 •G � `., � F'.. tea, cover }a1�1 ofr the^ ReaT`''Pro ert The artlesulntend,F howe�er,r < ti €� 7 i p r<.�s�A that*this Leaseceventually tshatll ;cover theportions sof the ReapY` "K Y p �" � � : '� 1 - r xn-. a T � ''�* t: 4 r � dP • ° e'er dr i : y t .. a ,r., i+, qj• i.Ga P '4 l � , i`*� Yc� v�. "r z t Y+'' �D. ,s .� 3 rk s a, G ,a^� t :-°t•1 ,d'� aA rc. a"'"rir' r. 14.' Property, —hc- ucied within the fCommerclragl�Pro]ect, and shall # x,� ram {., x 3 rTM l�. aY •� �� �# .4 d� -r r 1,�`r' V 4:esif V exclO­ they lands 1nc41uded w-ithln ;they Ma•rinar, as mo"re par;ticularly� °� _ r described ;'nParagrapki 1 2 "2 :. ' " l P2 v .•. 2" ':Specnif.. lat� ,, ed>Prem_risen s. TonrofLeashe_c arties. acknowl`e'dget`h`at it- presento determiYneF" f dx . - the, exaot 1'ocaton o.f ;the Leased, Premises; because ithea ,portions' of d ' } •fi'!' s . 4' , .,, 4 28 5„. ,+.d•a• ; _ t t•� 4`'' �^' f w,'{'. a e -fur' c �`4 ✓.-, n 4'y, '' k ar �' S r , ,h, t u.; k 'fi �.: the Rea`1. Property to be .allocated' to the Marina and. the Commercial Project remain subject to adjustment pursuant to'the Land Use Approvals (as `herenaf:ter defined).. Upon approval and recordation of. a parcel or _ma-] or subdivision map dividing the, Marina lands' from the Commercial Project, a- memorandum- shall, -be s.-. executed and recdrded by..the: pa•r,ties showing the exact boundaries, of''the Iie'ased,'Pr6mises byi a•. meets :and .bounds: d`escript'ion-with ` reference. to the• approved`,parcel.map.. ,.This.Lea e" shaFl.;be deemed-• to. attach, -'t6, a!1=1, of, -thereal, proper:t"y,:deser-ibed. in said, t memorandum -as the',Leased-P,rem•ises,'ipso facto, upon recordation F 'there _ of, and upon such recordation, ipso fac;to,, this Lease shall 'be deemed- not to encumber ,any port-ibn of, the, Excluded .Property in s aid-'mem0rdndum v As•provided; in 'the Agreement Concerning•,Development this Lease, shall' constitute, the -first. and;only encumbrance on; r that; portion of '-the. Remi Property which %doffs.titutes the, Leased »• P:remises except for the, requirement "that', the, Leased Premises+: -:be ` iised for. -a' public ur ose and the: encumbrances; ex ressl provided p P p. y for: in'thus' Lease, ;i f• any:.: Upons desgriatiojn of the Leased: r. r Premises; .Tenant sha3 1 1 iob"twin, at Tenant's expense, an, ALTA " r polrcyY a of i'tle.insurance +insuring Te'i nant's ntet rest in C, r Lease in such priority and condition-., x '0 �, 1 3SubdividedGround Leases and Single +Leases Ate ..• ) , :i''s. f ti•3fk 1 atk" S'i' F yet• f F'` ". P A s vy_ , '•�'v, t ",.� tr x s..a •.Y t. t 'y. y, �r - i x, a 9, anyk.time&and,from,time..o,Rtime during the ,term hereof, Tenantsmay x 3 9 �' w P` s4 } subdivide this#L`ease by�enteringinto t"Subdivided Groundi"Leases" j.Aru• n. t cti1- 'f'.•t-w. ` r l �e4 - •r�nk� +. �qll#;� ; tx` or Singlev..- -•J,' < t s. c w ,,. •c ,. f ; Leases in: the manner':descr bed and subject to the: `: 3 term`s+ and :conditions?'set forth int, this, -Paragraph- l.'.3 At any,,' s :± .. „ r =' time after recordation of the memorandum referenced in Section 2.:2, above, f xing''th' exact boundaries, of__ the Leased, Premises, -, &hd-' thereafter froip,'time to time -during the,> Term of tris,Lease, ., 1 C ; ✓1 r within 30 days after written'notice from,Tenant', Landlord shall ' enter into new- leases which 'col,lect'ively.- shall supplant this ,. Lease.and cover the, entre,Leased-Premises.:. Each such new Lease.. is herein referred to as•a ",Subdivided Ground Lease." Each Subdivided"Ground'Lea`se shah, ., (`a)" Have• the same parties a- 'the part^ies ,to this Lease subject to the -right`s ,of ;as'signment herein' contaiSed, erve>to.release'•from this,Lease the porti on of: the Leased'.P.•remises covered- under the Subdivided= Ground Lease:; ; '+s ... Contain' the same ter •• S:, covenant, .provisions, � conditions: an reements as those d ag contained in•this Lease - Y. except• that t', The' •rent and other ,periodic payinentt'to be „ a made by Tenant'or their a'ss'igns• -°as part of=their obligations; under this Lease: shall, under the: Subdivided Ground Lease, bear substantially the same.proportiori�,,Eo amounts provided°in this, " tease, 'as the net useable•` land- area in: the area •of -'the' Subdivdedf: 'Ground ,Lease. bears to the net useabl6.­Iand ;area '0f:the. entire;- Leased Premises- in this Lease and:- if; applicable;, .shall -contain. the'provisions of Paragraph 3.3, below, concerning self=operating, t uses. As used:.H'ereins, the,'term -",net` useable ,lyand's area'". means: the ;.net acreageexclusiveofp u•b lic `road rights :of way=; park'ing,:`area , and 7 d public:'landscapesor other, public easement areas and open 7 I 'tx"715 h4 ' space _ ,•� tshaYll^s Each�.Subcl v-: Ground°L`easeAI o b >aa ,$'. L P: x •n' z- '' b6ntaih all crus$ easements„ covnt eans • conditions; ,trestrictidhs.' g '1�f1 ,_.w f � A ;, =:and agreements requested by Tenaht provided they reasonably facilitate u separ,atrng:thi"s.liease-into.indiy:d'ual.'leases;+.within:.,. the over -'all intent of this'Lease` and- consistent with the t- integrated use. of. the Marina and Commercial Project,. • � f' (1• Vii, _ i' P. A .. - 1. A ,}' •, 8 / 13tl% 8'S d u' 51" Z, C ,t �` i' •I �.� hl�. Y '' y `� 4. Iw 1 Y. ~ T� i y Tenant ;or Tenant's assignee subject -,to the 'terms of Ar;ticl`e.°XU; below.. - - ARTICLE ;II, x` � Term 2. 1', 'Term. The term of this":Le'ase shall commence on ' s'uchdate. as the. parties ;execute - r f• + ' •, the wr,i ten memorandum t n evidencing the feasibility -'of the„Marin_a Project in the manner described in Paragraph 2 5yof the3Agreement':Concerningr, Development and .�shal ;,;cont nue • thereafter' for a. term of' fifty,• 4 • -: - - f i.-. f (50)'years thereafter,'.• (thee "Term"') . Y " 2r Option�.,,t6 Extend Tenant is,, g,1ven, the option 'to y ,2 _ extend the term on a11the provisions contained in'; -this --Lea' se; sr , Z V F < f it _l for a twenty f vee (25) year�:�rperiod following 'the,expirafi{on of a ” the initial"Term, ,by giving'` notice of `eicerc'rse of• -the opts on to r t e -P,:., Landilord..a''t least six (6) months but not more than: twelve (12) =' months before,=:the exp°i-ration of 'the in'tial Term.." .-As-'used-in, thi ,-Lease.; the 'word "Term"'•shakli� refer'. both,.t'o the initial Term described `in Paragraph 2 1, above., and theextended Term; - ,1, - describe' this Paragraph -2 2 It. is ahe intent; of the parfies'hereto'that tlie-T,er`m of 4. x this: Lease shall,.be consistent wrth the maximum term of;a lease r.. # Z 7 b real property,allowable-under Landlord's Charter In the ,...,;i� _y:r t , J• a r-L'jt f "'YI --,m� J„� �' 6 � � .. 5;.,.. w fir. eL ,g «' W ,eyentx th'aty; the Charter, pis k;amend'ed to a-lwlow.��-anr initial or: option, �.' f r. ,� y � t �J, F, q- •r � .a ^"4 S ,n . a, rn. ?r3 i>f,-.-'i.`a , � z v - cU, e � fl'.�5, s;ri'« oa. �+' t � r -t -i:4 -. 1 4 d? ; -- '>T �P n• d�., r Y',. �Y r, ,r 3' s.l - j✓ }{y�% �" , �,i• s'termcainr excess ?of thea ini^;tial and; o t -ion ter'ms•.•des'cribedin`.'` , r-,�3,14Fti ts'�, Y �;;'�,� a z>�. 4f_%a, np� _._ ,.tG �"` n_ - ar�'8' K,. :.•... -� . -;t N—,y.y;. �', e.�� >. -I- y, ce. w ?' ,.`, ri r +'t :: a - 7- ': ,S Y<},7'}'eJt�' eParagraphsw-2I aLnd 2 ,2heregfa;a then Tenant shall have the ri ht �.. f . b: Mr tr v g7=ra +� "4x�"�'r 'gl.7 '. -..' t Yar '`-' r. :• • ,ate,,;.. 's `, t x . L ^L''Y•-'.s ,, f +�- ._�.• art it e . ri X41}at" any t me;or time's elect4sto increase :the Term=hereof` to{tthe�` 4 �. .� fq '' s a,. x'�i" -,�-`•�z��y� 5•,� : (' r. ',. ?x w ; a �,'�^ �q i �,, maximum inir tial `and/o' option termowablei by Charter Tenantr shall exercise said right Joy. giving ,written jnotice.:to Landlord;Gin 8, the 'manner': described in ParagrapYie 22 1;-2below., and. Landlord an r _ , f ` Tenantshall' forthwithT executes d'"IRemorandu7R'-,!setti'ng forth the`'newd � rr. w S Msr S �. rG ;;'� u L 'x• ' ;W F" f ; 'r 8 � 1,��7 ,7-MF21 l s8/13/85 pi F.• Fa 'r zmev_= t ` $�i �'.Y �" Y7-� �x Y1 3 r•. 3n �. P g`� �� x Y ao tr, " FYn.. _ 4• 3' r'r ` 4k • tti a �: ,� .r ,, '• ,L 4r ,,� z _1`.r r >.- f fr.��'Jv u n Each Subdivided'; ;Ground'Lease' shat -1 cover, a portion; of; the combined Leased Premises "specs±fed by, Tenant. in ;Tenant" s, Lease• notice o;f demand,,; provided- that Tenant shall accompany eachn'otice• •ofdemand with an:a'ccur-ate: survey and. le'ga'-] descrption of the 'portion "bf -trie Lease P.•r:eirise§` to `be - i each. -subdivide - covered n d 'Ground: Lease-. "- any time 'ecution. k of any suchsSubd'1 ided Ground Lease, within30 days after notice Ra of demand: from, :T,enant,,. Landlord "shall enter into a,- single, lease* comk%ining:. any, .two or more, .of the:. Subdivided'«Ground he referred to 6above, co.vering< a1L'portion"s of the pr•emises= covered , by the componento Stbdivi! bd-. Ground* Leases ('herein,+called: a m ° k k ' Single Lease") Wand containin the same' termsr covenant's',. g , 4- a v x provision,.k'con d_ rtionsq, and= agreements as tho's,er contained, irn the ` •P ,,, 4 r componn et Subd .v,ided Ground�Leases, except that ,'.(1) The rent arid.other_ per-i*odic.'_payment's to;.jbe •mad'e by E t a obligation n Tenant as-part.of T,enan u der; the Single Lease 'r shall be: the" sum o`f tke re"nts and` other,; periodic .pa ents payable _ under the component Subdivided Ground .Leases'.•; 4 (4The S' rigIe, Lease shall contain AT 1: y y - t a ;crossheasementa,Acovenants,-conditions; restrictions; and a requee"sled by Tenant pr"ovided€sthey,`reasonably``,� kF d r .s '�ry`: Y''.' 'e?. •c ;t F.hu.� S.n r •tu t �� _ face*litate combningther c mponent Subdivided GroundLeases ands `-. r+ „-� ' +y., ,,`�, '"� _ - QES "1: y:u.'X5 - "! i k +u. -r 4 'M•, M as SG'.mya9iT'}t" mgaJ° + - (.O'a,.rr'd tgrating��thte?..nx, o•p•�'e--re.a_. tF ianr..x c '"�-y5" �rc.;�.•,s� �,r�a�s •5��o. f o'le J qe� t +u' `t ''. + :*'t,T•,`e:'_ k `x^ - T. _.t:" ti r.>. - .�-Y"'ah.. aSubdvidedwGround�Lea'sesr�s;t'ill owtsta'nd-ing, w-rthin ;theover s, v nt '^, Y S k �' ES4' A 4 r .:' -sem z .. s a g" -rrk ,m f a ''t•3 ' y �a r "`ysi • 5• r � a�i�.� � ��� _, vrr . r Y=A_ Sr.c <��=T ; L•�i�' •a• .. �.s 'r��r s�-rM• � . .�«r �Su�'.�m' � A�`.f �: 8. ,�''"Sp.Y,, €..r ;. :Y�M.i ?t ',. I �t�C _ ic r s,- „intenit t ofvth , Lease :a-nd consistent wither the�„int�egrated` `use of ad ¢ �r: y the Marina` and Commercial Pro3ect.: n k „x >' } P E k H Y In each and" every, Su'bd vided:',Ground Lease or '$1ng1e ,� Y Lease, the -'d bl_ to pay Rent.', as such ,obhigation is; described; in, Ar..t'icle III„ ,b'el"ow, "shaLl_;be the responsibility of M J7. ryN. Q•� � � Sc �4r j�1.i t2 F \ „ y 6 Term•and record said memorandum in the Official Record's. of Sonoma County. :Sn no event may any ..amendment or interpretation of the Charter, reduce,. the initia-1 or option Term of this Lease and, in no event may•any amendment or interpretation of.the Charter increase. the initial and/'or:, option Term ;beyond ninety-nine (;99) years of the::commencemen't of the-initia,L:Termas described'L in : P.arart4raph.-2 1 above: 2 3 Failure to Commence Con'struc`tion 1, f' for.. any, reason. Tenant_ has failed to• commence; °construction of at, leasa. one;.,, bum:Tding of at least" •5,Q00:;squar�e. feet on .thee Leased' Premises on 71 or b 6 f o r thbIrTifth (5th) anniversary date of execution 'o£ this l ,�fi Lease, thensthis.;Lease3shall terminate:and Landlord and Tenant U s w both shall; `bei released from:"any responsibility hereunder' 44'.Tenantk"s Right to:Terminate Tenan,trshalRl have_ the ri ht ' : q, •'to terminate this Lease and aTl'of.their obligations `hereunder tin -1 6 s sn Land'lord''can• :remover the deed restrict] on eiicumberi: g th'e- Real _P.rope=ty wh' ch limits ;the use of,'the 'Real.' yq Property ;to park:• purposes ARTICLE` II:1- 1 Rent y ? " ; 3 1 Rental" ;Commencement Date's Landlord and Tenant ' i X agree that" the, ch Tenant sfiall commence. -to make Jyv a .mfr Ica+ .rS c>St �`a. aur r '. • x , 2 '�.. ff h"`'fir ;d+ t,t.v +- •i %_.'•tel .c -�+� t,. .,€,'�. 4mo .6 •...rfi:.?• 4,, '": e:Tk •+' ,a' 1 c.Yr. `'' �_ ���;' +..}s ¢f aper;rodics, rental , a, ents ,(,thee..Rbrifal ,Commencement,,Date")�Q7shall i {P k § i - ' =r �. wr a -= P 1'm,9,.. - t " a _ +�.a a'` � x •-r2 k �' '' wr ut•Llv�" s` _ } a t .•w 3r «r: .£ ..,,,a>< �;y1C 3-r:3y'F'• - u 13°' pit sS r : x `+ .a.,c - ,h... ' { �'E'-rS :2•.i A' `tea .` 6 .,.n w' ter.. r they earlierybf (i), a date two_(2) yearsandsx (6) months..r� ,, yryZ.� 1 b i :a. � M i "%,. 4� ? §4 ; `:.: t fP •F u. - •,a,.. 'a,3 i'� ku.. -�" Vw" � a rt� �" y�'� 4' aptKk�"'+ i �, -6y ..y.ZL, ,•Y k ,jS. n , a ! IT, 'f yea' `"fS7' , -r'I•. �'-9�3s ,�. a +cam �. r -:%� x,;:-+�T t`�t.. l,� r,^ r ,•• Edi" v1• i. , �i,�.'_ 'yv .i: §+. Yw:F , tike=yafter�Tenant receives ;aF�Cer„tificater of ;Occupancy for ,the"first.y3jWj 'g-6A0 �:. i; *_;' 4 ^�k '' a`.��•F s:� SF..,*�< .-:.'v- '" i ' 1 builydingof ate least 5p,000� squarer fee.t�in accordance ¢withathe 79c a's ”. . `• + t �, t •-K'.;,as �•s•�ma a vti ;. cs t4 4c N.4 1 5� c Y . iV u. rx�"Se• -0 a a ' r'. terms of.,Ar,ticles IX„ belrow,r..or, �(-ii) on- a-. -date thirsty (3'0!) days- °z Yr prior to the, da-te Landlord^ ss requ_ fired ;to make its: first ,r jv,` installment payment, on' the ;permanent fnancirig: obt°ainedby r S t.. 3 `cif ' a 1 •?� 't.`x'' zr r j9 iS d @ t I� �• g f >< w �^ 1 9 y c� �JMF21gli 8/i13'/85� 7; V. G r -� 4 ^ �• 1 i � N 1 hA 4 4� ..tom f. .t Yi`'. V y ,� - - t , • �a ..ya, 7t 4 y- 1 `� ". �, �,' k u 'r r � 'n E •! 4. a µ' . _: }. ° AL1. y .' }v a •k1-_ -4 J. f 1 A 1. s Land,l'ord to finance: the, constructionof the Mar -:iiia dh accordance ' -'' w'-th: the,terms='of 'Paragraph 9,:10, R below. 3.2; .Calculat ton of Rent-; Land "lord `Einancing of •Makdna.: - In the event ;Landlord' finances'. Cons.tructi6ri bf the,.Marin'a in the, manner described' in Paragraph 9'.,l,.O,, below„ then `T'enant; shall pay: ' tof Rent in accordance with the. terms :this Paragraph 3'.,2-. In' :the . h„ event Tenant f nances;.all•or any portion of ;the construction.of the.'Marna, Teriant,,shall `pay Rent in accordance with the;term5> of Paragraph 3 3,,- below;. In, the: event Land-lord,•,f,inances construction of: the '. Marina, \t_hen, orn.'tlie Rental, Commencement. Date,, Tenant shall ` i t I r coriunence ,to pay an annual Rent due hereunder equalrto th'e greater - J r n X„ r '0 fthe 'FI z•r .followingu ,.; _ r (Qperat'ional.'Shoftfall) S,. an amount"equalF'to r k 'r the Witannual.-'gross `revenues received; "Landlord'. from by ;'its , '. ownership :,and operation of the Marina .calculated in accordancea wi•th generally'. accepted accounting principles reduced' bY' (ii)r'the 1 - agr,eed and. budgeted annual, operation and utility, .costs ,(as ti desc=abed., In Paragraph 3 2, I, beTow) and scheduled' ins,talflment . payments -Landlord must make' on the loan -'-to: the Cal-forna Department: of Boatingr and Waterways-..(orI any,' ;other =lender) on,'the _ financing Landlord shall obtain for the; purpose of"constructing the facilities 1-ocated on Mier Marinas (}"Operational- SYiortfall' j? � .� t '' � L 3r,.s xe'' 1 e- !� � F S" J N• � } � 3 • ei _ !c- +ct 4 t• L} y �c � � > � �t ra; C•' f ra,: nor �.,� a � f�� ¢ fn i ,r �r � � >� e 7 t �,�, �r ,t 2`f ] �" Y '''" 4 + z .r,.'r* a ,.t l' •- u €• k `, r r' e4• 'Y ` -� -�•�' ; <, � �� ' ���,,�� �;,, �h.��,;,, � � ��,; r °��� ..�:� (b) 1i•(Percentage Rent :2$� of _Gross�Rents,) vc'�ari� �.N���g����� �r'��. °4,'�1-f a o �+�'i;? ] .e,�•`wa r,r: § J a"' ..1 h 1 n"S _'wf Y....,- 4"`t� t k ` �t y yr �'�a.q 4 •t �.rr�`, .a amount equal to aktwo,.percent (2%:) of the Gross Rents (a's defined Ya,`• -is' :.i x -, - r s T �::, �. -•x g"_ -u '''s r b 1 m °, a. Y L g.. ;7 . Jk °tE ,�4 t Paragraph 3r 2y 3, be'low), collected' by.: Tenari't during' E -the k N 4, T tiY preceding rental', period, as: `rental periods ar:e described' in `� _ - Paragraph -3.41,.,b, low. (,".Pereentag'e"'Rent") h 'r u. rte' a � �• ~ 1-'' t re Ft � a; r, R y "'_. � `'ve C s+ °� �, vAto 1'G JMF21jg1'-4/+1:3f/85 r S y .; k 4' - V. k i 0•,"b' b A' y * .t. 7i•r r R� 5_ f 3 n, $ t .. 1 - l? ;. _ 1 •'�' O � � ��t„ � r 6 ; j' � . c� � RS..h t R1 x 7 � d It T 1109 _ f a 3:2:{1 Rent Credit for Subsidy of'Landlord's� Operatibna'l Shbrtfa'll: In the event'that .Tenant at any time during the `term' hereof pays; Rent, for operational Shortfall under' Paragraph.: 3F. 2j;a) , above,^ Tenant .shall be, entitled to a 'credit in - arm"amc`hi , equal to- .the amount of the .d'ifference between, the „= Operatioiia-1 Shortfal2_.calculxated: under the terms: .of Pa'ragrapYi_`. r.• 3 2-(r,a) , abovef, ::and th'e Percentage- Rent.cal'c"ulated';,under':rParagzaph above lit " he Sho` rrtfahl Ced. it") . The .Shortfall Credit,"will ' " .. be earried':forward and shall be automatically appl-ied against'' >+ n, e ti Rent.: or:'any other, monetary ;obligation°=of Tenant that. sh'a=11 m becoe: ` due`"in—any subsequenp yment per -mod in hichthe'.Operational Shortfallwcalcuaated under 'the terms of Paragraph 3 2 (a)r, above ., . ,. = is fess than Per,centa'ge Rent cahculated' under the atermsF of fit � ><�ir. 4 4. �, £y ... ` ,� i � , ... ��` + • . ,, �- _ `�' `�• "" a-. �= Para ra h 3 2 b above rovided� however that i' in.no event K,� r g p ( ) , P (T r ri P r� t a shal_1 the,:'Shorttfall Credit be appl- ed5 int any; yea r.;aggin_s'_t that portion ;of'the.Percentage;Ren't'calculated'`"pursuant to the terms'• ,6 ;Paragraph. 3'.2(a)- wYiich i"s 'greater' •than •z`e'ro• and (ii)• in no' r event shafilJ the .Short -fall Credit ;be applied in any year. to causes the actual cash'r.payment•`fr,om Tenant to''Landlord-to.,be less than :D TWENTY THOUSANDrOLLARS ($20,0001.,00) The'�amount ;of the. "Oi Shortf,ilYiCredit shall not bear interest The 'Shortfall Credit 1- , r IF' , ]y.' i �✓t r i �� r- a5 i t� ry J 4�: *'- �' cannot be 4applerdK retroactivelys of car -reed backward% into any,r s JS •, 1 r(1 , J b 1 C J. R ''' J % 4 ' "A.�. ' �... �4 G { 4- "14 .-.14 - 4 ftt payment period which •occured iprorGto ;they time tkie's�Short'fall,i .' s w' >a-; s -,r ` , f^v h+d -9 �:xt -s • ;sgr*ry�?_y , t Credit is earn_ecl If.`ttie'Short�fal 1 Credit isnotrexhaustedeat s'. -k'k,t5y"i•„-K" ; § e' tsm ,( y;.# r -.. �r r`.. 9 x y -..-a. !r• nt, F `i''' -,-r r".•�"'`+�+E1a.! ,�s„ ,� ��r.s�'q<''x tr r�sT"'�r+�`e• +1^4.x'.-ir'�?Ly :� ;ir,.rifi f a �sr r ,: the teM. rmination of the,term�:of ,th-isk Lease,,�zTenant.shall note ;, �s` 141- f j1 R y_' i Y` '-„i' •,}. s •,�" ic.. 6 1� •c - t "•F i '•v, K` '. W '' i :i"�t "1 „' 4a •s' '^x+f y q k,iIpi,'aaaf a »R., iFera• v.' 3. F u# -T:, J . receivpe army add tional compensatkion� or ,considerations therefor:; A � .x-' -r : , i r - : i a c e ' i•.aa, .r �� �f .� : ti� A tabular, ai'alysi`sw of t'her theoretical operation of Short€all Cred t over the first f"if.teen�year period -1! more ;,. ' particularly described in the example set,'forth ins Exhib'i�t "R at,t'ached.:hereto 'and,_. incorporated 'he rein .^ • t ` �� :4 a S>,- ' r 7 y, '; r #� � e' r •� ,; R `4 i. - _.r !� a¢ ^StG'. II •�, a .•. N` ..4 1 11 .. �' ,_ ,,; .G� ! yf. Y i } ,q ; L e ` :s 4 - ' a s^ I 3„ 2. 2 Agreed and' Budgeted. Arinuai_'Operat"ion a•n&'' Util-ity Costs,:' For. purposes ofi calculatin,g:the Operational Shortfall' Tenant ,may. 'pay as Ren_t', under: the ;provis: ' ons! ,'of Paragraph ,3 .2 (,a), ,, above,, tTen°ant. and' .Landlord` ,shall, each, year ` mutual 1. _ e' y agree. on ra,budget. of 'necessar.y and' reasonables costs that,.. " j". wit -1, be. incurred during the^ year for' ,operating and: uti — tyt, costs of, ;L'andlord" s ,operation of: -the'. -Marina,'.; F.or. the pu-.poses of yt caloulating ,Operati ngd Sho'rtfal'l under Paragraph .`3 2 (2a')', above, f rK x, the: Operational; Shortfall :;as Rentt shal-1 be'equal to the lesser of - c 5 either (r;)'° the ':agreedand budgeted operating.^ and utility, costsY o,f i = K the: Marina or •(;ii) the actual operating and 'utility cos.tsE of 'the F A; Marina lu's 'financing costs and, minus the gross revenue 'received§ •ire r +!�,It, F; I;n by Landlord on a cash- ba'sisifrom Lits ownership and, opera'tiong of�e j 2•+". ,. a'.,, a - '.'.w c" d •.is a i. i- t ,'-. ,e,. ,tM: y Y the Marina' In. the event• the pa t'lesc,cannot-agree upon„a budget tif4-° 3 ,s �n t� by the sixtieth, ; ( 60th') day after ,­the,.ai niver•sary4 of the' ,Rental Commencement 'D'ate, the {dispute shall be. submitted'.to °arb'itra,ton in `the manner d'escri`b•ed in' Paragraph 3'2 -3," -"-be I ow 3 2 3 ± Gross.. Rents; For purposes of calculat'ng, 'L -'+• . r PercentageRent,. the: term, "Gross±'.Rent's” a"s 'used herein 'shall. 'mean the, gross cash -rental; actually: received, by ;Tenant 'from' _any 4 ' ' r subtenant°or other occupant of the Improvements. except it shat}1, r x Fir } x ,4r not include amounts+ paid by Tenah ubtena nt or 'sucsnts tol. Tenant 7fi rt; .AFF` s r X- ._.� 3, F. r 4•@°+.',� +cu rt a. 8` rye 2 �� ,^N'.... .Sr &: °.�' -..A li -E k ,..F•' r rh,( .t.`%i wR.e f aa',' .,y r, 7 j u•- ,,. r?.p t w i �, ai4 ,, �J�n respeeti,of Impositions (Yas defitned, xny Paragraph 44 1„ below)�,���t ,f.. v .;+•:'i f e k( c� r .k- a i r t , ,: } ib I + 7,� ��'� ;s w : .Y y i.' '' � e k.. y`ti .� - ,1, `M' 9 lYinsurance,�utill';ties ,ser�icesi� or;' contributions for matiintenance,�„Y°;; A , a i cd, 3 orre. c c b 73 sp 5 n p ..[ ..f,eratiowof t a^ t + rye airrand,o he:: Leased Premises and Im^rovements to M t n; VJ- u- q. ,: 3'r,� w - r �- i i ti. iY-"a a,.•,,; a; S -t� .i p��� a - � � � s , >$ the extent, thetMsame,'are so earmarked` in�the Sub leases-and,shall f 4, r� s 4 y a P' i.• �� a.. ..- f trT ,; - S' r• -:f 7, i �. - _4. :F yF ria y, +f S a 2 r -:t'{, ” not i+nciude leasing commissions,` collection ,or, ev lctiontcosts�;and c' r a , expensesr',orr refunds ,and rebates to subtenant's Int. addit=ion, in �'u• Jam. .: . •. .. , •` :-: f'a :.. '. " s the, ;event Tenant shoo+ld ground lease un imp roved.land on':the, e Leased Premises t0, "a- properly "permitted subtenant: and/'Or ,assignee.6.1, rr -'-car, 4 &°.` v t is - �ti•.,- x ,F �' _? ,r - ry C�. a3. a z �.✓ L r4 �� S �' 3� r, s A $ i f � c•b x{ n`(4 �� , i t s r �, c . m>' r � lr2 r r 1Y . JMF 21"g l 8r� 13 �ga 5-,- V. 'r' n sa r i. V -c, -. n 4 ` i%� • �` Y zS ti k + Sp ��p*a•, " ,. ,.++- � -' r � L. '�� F� ,s at �.• r r. ;3 yr b a y, y..r .. . R 4 .J i „�-ti^ t r, t t e cc• �' . y , x- 7 F'-.. who 'sha°ll, improve said land, Gross Rents shall not .include any and"a11'ground.-rental and other considerations paid ,to Tenant. and . -' shall not, include, any a.id all receipts and 'income received by the subtenant and/or. assignee from the business conducted on: the +' ground leased land (other than the subleasing of the ground. Teased land to ac; tua3.users) but..shall include the fair market rental value of. the.Improvementst-�,kculated°pursuant, toy -the terms of E;aragraph 3> 3 below, and ,,any, -rental based thereupon' •shall, be* . S 5-.. I p q paid'..pur.suant top,the ai terms ,:of Paragraph 3 .:3,,, below., Tenant shall r , keep: Ln adlord i`n'formed in."writing of ttie scheduled, gross rents payable by Subtenants: to Tenant throughout the term of this Lease, and shall provide to Landlord copies of all. Subleases and i.� 'TM any'.-;modi`f'°ca'tons and'. amendments;•'ther.eto LandlFord sha"11 have�h :, yr the `+si"ght, to review, of audit Tenant'"s `books ,`and records at s Tenant's principal palace of:,business, upon reasonable pzor written not -ice' to. to pant Tenant shall keep said:, and: reco ds: for any: Lease Year •for -a:°period. of 'two (2j years after the expi-ration..pf, said Le1. ase year: Said reV ew:`or, audi°t .sh'all 4 ' conducted ,at Landlord_'s sone costand =•expense - , 3-..2.,,4, Special! Rule >,for Self Operated �1Jses .'of Improvements In determining. Gross Rents+ for purposes of ` s2;¢ -b ' "•I i'7tF L J i.. r x. ,Tl oA w #y,., 4 - ( -,f 4 v'''r y1 k^`w k' . , v� �+ z t„ - .€h y s ba�1r"a` '$. „� ! .'d ,t 't - I.� z'r• _ r n Paragraph 3 �2 k3,;. above, hLandlord and Tenant agree; that the, } `z 1 ti �i.tS;,9. ��.-a- _ 3 ,. N `a.x s,-�"'-�'•_v-1: .� t -:W.. ..<s. ,: a "n;.!"H:.w • { ^¢, a, I,� si4sa? r"yy� artieskfshallcom ute alfa°r�xmarket rentfor`thewLeased Premsest�^r.`�P r �. �. .,, i'Ad.� •'C, �7`f s'^iJ p -c '� M.- p '` „S✓-�` -i'S•a :.._. .y wr.,,Yr• k'^ct1`�r .s} r-. ..^k.,_ -`,�• A+rvu ,Yttt�> `{;' r.,.A.._cur ` . ? .a L` , y z • .. , r ,t.'... T.' i?x- , • -• 's. .... any�p5ortaon thereoyf wh chris..used."bye� Temant or by3 any assigneeW.-I. u < k h ,,,�<;`� �z ±}� r E: Y' J A c ,fie.. yrs - ,c • x r 7i uc _ i .t I t ✓'=�''"M- c s 4 fd x T.: .. �A r+y? - �i a , or>sublessee sunder �ashSubdiuided Groundi4Lease orSngle Lease':who 5,,, ` ' Aa+ 1 n " ::• >: g..•o- rr+� t -rs r -w .t,� '' ..{x �, - �`. a,t, w ',•...�. .si H `£a ++�' arm e: _:• e r� �, } cis ' 4 r n 1 - ;�; ":� 3• : xx a -uses-. saidImprou,ementss�for;his; tiers ori sts oownpurposesr (i e:;; �, f �� {' . ..u`.,f ,� Rti t •T „.. q, , is 1 t .,.'S�- t Zn p '° '(ri n� F h"?y v `;f S `, q - the operating of that -Improvement' doesrnot generate negotiated Gros's Renu) I;t isj tithe intention'. of the par'ties,,that Gross Rents 9 >. " shal'1 .be, d'eterm'ned.'by adding, the' sum of (i)'Gross Rents' actually received - by Tenant from subtenants of the 'Improvements'.which are,. 13 7' JMF21gl ,8/+13/t85 !`� +g£ , S a3 '•, !. v 4-.,�,n o ,, $a m e ' 3'• 'Y` r'... f u. y 3 e ay 4 �, wG + qj � � sublet or assigned, by Tenant to third parse_"s plus (i'i`1 the fair' market rental value-i(',less exclusions .heresna'f-ter..set ,forth,)'of any and all improvements ;located' -on any portion or portions:of.� the Leased Premises. or, any Sub"d•'vided', Ground Lease or Single. Lease .which ;is usedb th y' a Tenant,,ass"gnee,:. or° lessee'.of 'the 2,ing actual Tenant or subdivided, Ground Le'ase�and;:is not generate Gross Rents or,, -if the enure Leased, Pr.emi"ses are=a,assigned s �¢ ' sublet ,to,+an as'srgnee- .or sublessee whop:uses :t41 he entire,' heased `t` r Premise fb s;, cher or its use,y the fair -market renf'al" value';, s r hi r F les§ exelisions,` of all Improvementslocated: on ­the Leasedf = o Premises °In th'e event that only. a portion Aof, the.: Improvements 4 located onw a Subdivided�Groundr Lease or; Single Lease ,ares occupied, A but not generating Gross Ren, thentthe terms of ,this Paragraph , ti '2 shal'1 apply only to that Su a!!.vided'Ground:,,,--"3jx, 3 4z portion .,of+ th'e „ Lease as use _ In the event any of the Leased+ Premises or ,any Subdivided. Ground .Lease or, .'.Single Lease is .u'sed by_.Tenarit or they ` lessee or-`;°assig"nees "triereof,, then_ Land1'ord and therTenant or : lessee or. assignee ,o'f..said'!'Subdivi.ded, Ground Lease sh'all.,mutually j' agree upon„ the fair „marke.t ;r --ental of th'e, Improvements wiJi •` u - thirty (3'.0) calendar days,.Ifrom the timet Tenant or they 1°essee�or� assignee commences, its own use of thea Improvements ina non rent r 4 v 'ih. rt S.E Y �d� ,, _• 1 :c•,� 's ,.',, _ �*�, r..•�(. r, generatingp manner If Landlord :and Tenants ori the tles'see=tor,; s u f a ".i�S, PSCyj s: ,^� t: • :2,`C -_,3 fok > ''s'y,.$ s. '- Za r A rs a 'Fyr ;• Y assignee under the;*Sub�divided Ground" L�ease� or-Siingle� Lease�ca`nnotg r 1 cr y v �= n nbw ^�l y rt ' .n', r i ai ° R: as ci •a , h'n•b zZ,,,t ,,` k.•. `' a r.ee�u onNthe fayirmarketrental va�lue_rof they} ortion� o'f theN� ,ti a ,A� ; p $. 5 I1" J' Im rou.eme'n",ts?which�are'soyused�wthi[n`asa•id,�`tfiirt. x(30, da s rthej�fi `� P r - u� .� 4, d', n: -•+ f"<S. a J`+, , yd y1 a 4� � ,- y i .,c' ,..,, �',.' r R�'r fair rental value shall be determined by appraisal3in-the t ' ;.y folrlowing manners s y 4 t. F e. r;: - i.. -✓.. �' R „,� ".kms (, 1 i. Landlord an 's Ten sit or rLandlord and' the lessee; or .. r s , assignee; under 'the subdivided Ground,SLe.ase or. Single. Lease, ,as-, �, � ,�> , � � > , : w: ,� "`• ,, < ,�5 ,� 14r , ' c- � �, 'JMF�'21��1 8 1`3�% 85�' �_� s -�- ' .n � _. f, r t : y.: ,2 a- 3 t H.. c., ,'Ja -. . • ',� S y ' t es n . o- g � ,,, A G m . i 1 :: P ,je• Y lS }. •5` 9 d " d 4 + u. 2° - S . .S �' ti R+ S' N " +r b J �' 3 r'L :• r�'� 2. a.. F z,sdyi kt a •F t _ J ._-, s , J,t '�, � .�V` 4 �'' 'y d, � �l� �° M� e b' v. J - P e ' �, , E F �r Y F Zb ,.. � {y � V • the case maybe, shall first attempt to mutually 'agree upon an appraiser to determine the fair market rental value of the Improvements 'in question., If said parties -cannot agree upon, the select' on, of an appraiser within. ten (l0) calendar day s after -the:, expiration- of 'ther thirty (30) d'ay,, period referr"ed'"to above, •then each of the two; (2)•'.parties., being• th'e'Land`lord, as on'e.;party`,'and - r i, Tenant (o'r'- lessee or. assignee under th'e SubdividedGround Leaser # " s or S. '416 iLease. as the o,ther) , sh'all have••the right to:4_select: one (l) ,M 'A ;L.. appraiser,,; ,and', the:,,.appraisers so selecYted shall select:; ' 4 a third 'M A. L. 'appr:a'iser `All a apprisers, must have at Teas, ' y seven (7) .years }experienced in appraising Jcommercial real- property f in Sonoma°'County" 11'6-ither` party fai"is to .so setect an _ r 4 appraiser �withiii� thirtyr �days� after, their failure oto ,mutually N * - ! k •.LAY select a.s-itngle appraiser, fthe other party's:Tappraser ,shall be, s a a ;_ deemed mu"tually';agreed upon: Each of the appraisers shall rmake, an' 'ind"e"pend'ent. ,appraisal of all the fair rental value; ;of the' ` Improvements,• that' portionF of the •Leased Premises which :is ,being . used: by Tena or A. l'esse'e or',:ass gn'ee :for its'. own 'pur;poses In making such determination, the appraiser shall: consider all .. I 6 factors which d"etermne rental value including but. not limitedttoE z r rent"s,Yand vacancy levels; for comparable buildings _on the; Leased ?x Premises The appraisers+shall haves the right to consult witYi' a=�' ��a� �jn3'�y,b..,.���#-A �'�a X4.1, tea. r�a� �•�r ��rF9���}�-'� X45 C.�S' �s l�.'k.:"sa �i9r-" �"�.i - � �, 1 f t ex e.rtsands; p e' com etent? authoii'ties #in o der to obta-int�t fa'c-tual" ? z'b4 $j c .s t o ',''"F' •„ °`"' rain' di 'k',1LZ -$,Y ''+re{information ore�idencperta'inin_g to:adeterminat"ions+o f; thefair 7"z. a?e .-N - r 7+ + , 1 a �„�:�"' F 'AUv �fN ; t4 market7rentalrvaluei,butd an ysuch; consulta,t n shal�l��bbe 4made din asp �y _ kark• u.� s`Y a�,.. x z �3 r cr sr•r r .F i xr j n '� s {;*presence of� both :parties and 'with fullz` right on�ather tparf ` f' `x''"� %1'• .x € � i '4�sr+ � - � .t" `rG , :.G � r Y� k F _ -�, � t o,; - ° .f it � a � T , •�, - t ' part to cross examine: The tapprauisersr shall,.have: no power to , modify the. pr{ovisions ofA this! Lea'ae or .'any Subdivided Ground-; r -ease.or S'ingle'. _.f Lease: For pu"!pose`s =of determining Percentage r. p market renta`1 value fore Rent:'under. Paragra h �3 2 (=b) •, the' fair r r y a +f r �JMF21sg1 �8/lr3/85 'ct'r� RFec*-, k� .f� t,n�sV "�h1 r_I r� ��" fr F2 Y� �st• ;'� x �, 2'�` 'u<> a ,�'�fr4 a. (.„� b��{i- v �i ss 97 d -i � }}� r-F'•m " F r i uA v_ purposes; of. deterinining Gross Rent'shall';be the average .of the two ('2) appraisals.. closest'" in value and ,P•ercentage Rent calculated thereupon ,shall. be "payable from: and after, the date th;a-t, the: use commences and,;the.:Percentage ;Rent payable;•,for. the portion of the Leased` Premises in "question shall:, bd equal• to two percent (';2$) bf the ;fair --"market "rental valuer, less •such; :amounts ,as ;r. 5 - - s , y the;apprasers•determne are paid in respectl'o,f impositions>(la; z defined i -n Par;a'graph• >.4 rl below)' ;. insurance;.. utiTlities-seryicess r '- a or 'costs =incurr.ed ine maintenance.',and repair sand leasing, or other _ ubfect. tol the terms of -Paragraph,, 3 2:(a) , :abode;; commissions S i such Percentagex>Rent `shall "be due from, and after the date tthat [ s p r ng" use commences sand shal`1 be pagablez ini 7 q the elf o e ati ;:. a s hist Article III The costs of the i or hs m as rd enc ,wit the ter of t i � -• e ` J.uS:. ¢ - r appraisal ',or,Tap 'shail� be' borne --equally by. Land°lord onz they 4.,. one.;hand and Tenant or the applicable ;1"essee" or assignee; of th_e� -, l Subd-,Ground-Ground Lease or;",Single: Lease on the other, 4 = -In no .event;„ shaxll; the provisions of thisy Paragraph - " 3x 2,:4 apphy •to -any portion'.of the Leased P,r;emises;°`;which• is u - he nr-ented to or' unused" any party or to any.tportion of't Leased P,remisesewhich maybe rented unimproved. or. 'to any ground -,b n ? rent's paid: by air assignee or subtenant.'to Tenant whether or not AI t V the portion of .the Leased Premises subject to said,assig_nment or 5 r - r fi "' ✓t �- ,r- ^ a . sl. °t,. Al �1, + �'J �i•' �_ sublettingis improved or unimproved n ;y Y� fi:� 5� mma3a, s ll a +� .r - ,, Cs .'•y ki` 8 ri"i i- ff a"'r ^, . r. '• Ni. �. { � �_. � �� '��r xr'rt v` X-_ �r uJc. .:J1' � x r AlternativerCalculatiom,,d Rent Tenant Einanc. n y n * y 3 ��, S �• : * r4 _'r �. � ..d�j b . % �i°. � .,�,� { � •. � - t - r•' ;. a of�`Marina,e As an ralternatiye topayment :of E2ent funderPara" ra! h rirc4r�•' w a - ` - g R f !`^, . U ,QS re, ,�" `'`.�"• .�.:.i a"",ru '3,.+. �, .- r;xa: 1 +s...,. .tt F ,r..:. ice,. , ti�3. ^ay w.�` ,. 'a ��'6 _�"S*.a:ic�".-�" �•s'. t.$ J� aboveTenant may, but .shall notb}e�,obTi[gatedy to. construct M�� a '� Marina^. or any portion orr portions thereof as Rr nt+ toy Landlords E W from` funds, acquiered by Ten'antl either through7athe formation of an • r V,.. assessment, distr_,ict .;secured`; by the Leased Premis"es- or from, a� ta ned `by� Tenant' which v not secured, y b; t'he Ma-rina or: f ob rom-'zany. r•c k,�` � v%a '� [n -`T„JMr•F21 Y4 CA - kr t �jg*L 1 r8sp��, 1%3�r�rt85ke arIit r 2 _ s, � � � r rr � b �• z � (P� K, ` r� ry � n - 5r �'v �q C a°`' �.r tt a`� v � u v+ s.'; i p r�� i§ a � %� s .• ` h � � v :t P e � �,i Ms s SV � �b r s � y �: rx t t: t• � t - y 4 " } y other.. source., In such event, Tenant shall pay Rent sol&ly as described. ,im-this 'Pa-ragraph 3.3:, Tn ,the event Tenant finances all or any portion of construction of the, Marina,Rents her',eunder, shall be equal to ,th'e' Renf• otherwise. ;galcula,ted .under 'the terms of Paragraph' 3 2 ," above:. (either 0 era -t'.' 'p iona5l• Skiortfa=ll or"Percerifages Rent,. whichever, is - (• greater) 1'ess`th' applicable credits andVofffs,ets described in' Paragraphs• 3 3.1 o,r 3.3 2,wbelow. r 3,%J3 ,1• Tenant Bu•il`ds :Entire.ryMarina, :.. InYthea euent e Tenant builds the entire Marina :by, -means of:''borrowed funds which, - �r x a do not obligate`Landlord and/or the Laiidlordp ''s roperty-as source t rAor, securityL for,-repayment�or by n meas of` Tenanta s^capita=l tv a ; �. . �• � i k �L' f ?,y �' a 7 .. 7.. f rr _ , J t - y. Il x c _ s s y 'ezpendlitu e,, or;boththe fllh oowing sall occur G ° (a) 'APPl!-1cation,-..of Marina •.C'ash' "F,3ow to �g x Marina^ Oti1 gation A11 income,, rents,',issues,. and, :profYts dewed' va .from the` .ownership aid ,operation of the Marina' -in, =y� La:nd,16rd= ' exce,`ss of the agreed',:andbud geted annual o e ty, p, ration. and utile } I. ' 4costs described n Paragraph t�aboveu C'Marina Cash- Flow")` "Rshazll be appl�ied'by Landlord to the payment of installments due under�any.asses'sment,, loan, 'bond„ mortgage or other obligation , incurred by' Tenant in 'order; to finance .construction of the Marina ti (the:"MarnarObl`igatona )d If the, Marina Ob,�lgatY]On also' ��A`� t'xr'i�'L� r�'ka aa}I $^� •.,, S'e'7L$..... .4 .. ewe.; y f hances�&a7 or,jany'portion�_of the CommercialZ Pro3ect, the Marina k! cr �< t9, .,. - N ..rz'r �• A, pk I -a i` ',4 j` `:.si �y.1 i� •1 .�..t).4�1} -ar rc _', «' u av A,,„' a .?.'"fid •"¢ y -;..� �° ,�1..^._:'� Aft .' a�.,. .nay,; .3•�','s. , �etv.' ,, .0 i g.[•. '" .Z• -s o , . 4 ^;y'��rCashFlowshall be applied only,:torthat•fporton4aoftheMarina-..#�y; J4f •t.+7 n - $.Y' z'Gslys-a �yi' k`•"'�.' C" L��� 1 '' �py s`ti'r''k'.� :.Ts;�d'r t:. i. r�. ..f +;yt7.✓y' y ti :�.x �,1 :a 1p a,p6 , ��, ";: � ra= 7rk5.,'m /,{t �Fv fti y,to?:f uT� ,x °;w?=_a�n,�`� • r.3 Olilr: age aaFtP 1 os n -'." e q2u-�ab T.1 "tiyoyrst;hk?iea�i i;-erscri ea nt4 a 'oa Ofy- ,.4M' Er.LTsHy,,;OS -" €t z .t q n z,•n,`" k.. +vd,c �' i w `f 4 } F.d£M"`t:x . 1 .d'�,7.'.•;v _'+-r. "� •Ir a: .. 1 n R �°W 4s � � nhor allocated taOMarihw development costs Ir it event thats t = a t: �vaa"�y� �'` .t f - ", : � ; , Marina Cash�F1'ow isM ri any year,more�th�an the installment payment ' • i , due _that year ori: the 'Marinaq�Obligat :om;w the.: ,excess:,-in—sald year ' e ' shai`1 be vdid ,to; Land1`ord T "' 4a b r p4p t i t s f F -� t3 -^•'t k " P `^1 i >, t . ,• -'� �i yl �� 4 � k t? � � .ids- r �" {• e - > ,,.y y*t w� d - p, r r t ,,. k a _.. � ,,F `� < syra aRsp- U.a 4 stems ",z lY7y JMF2t1,g1 8/tT`3/85: e' r'�" ♦`'. •�`' 's 'Fa? sbz C4AJ--"x .`4r { v',., "], 'F` --'�' ,'�•3V,3' r t k:q}3yxn'. rt - a 4 3e .f � � t;�a ',N r"r, r ..'�.>_ .z`.: r n .;� fi� �•a v _ v - M � t I - T.. (b) Tenantf Finaricing' Credi.t:, enarit shall be drititledt to .a credit againstRent otherwise ;payable•."under the terms of Paragraph 3.`2 above, `in an, amount.. equal to..the, amount of.the:-difference between. the °amount of Marina Cash,Fiow applied to ;the' Marina Obligation under: Paragraph 3:3.1 ("a);., +abovey..and tkia:tporason,o'f' the annua'I insta'11melts on 'tfie, Marina Ob1+igat`on paid Iby Tenant (,the "Tenant: Firianc ing CreditF') ' 'The - Tenant Financing; Credit wi.-il.yb • f 3 e carried. `forward and'shall: be au omatfically. a`pplied,`agaiisf ,Rent calculated und'e'r Paragrapki' 3 2 or. any other monetary obligation of Tenant :;that shalfl 'become due• a.; in a'ny subsequent payment period.i4 p . rov,:ded,however, that (i)•'in 5 K f z _. 6 - m �;x .,� [ Y -., � •. �.c �r ' noev"ent shallf the Tenant Financing..Credit be applied ink -any year Y �t ' a4 anst tYi'at o=-tion'�,of ran O era,tional`Ui hortfallcalculated Tz ♦ g po y-, p S t pur"suint to the <terms 'of ;Paragraph.. 3 2r(a) which is, greater thanx r . zero. and If in° no event shall the Tenant Financing Credit be' " _ s r applied in any year `to cause the ,actual cash;+payment from Teri'ant > to '`Landlord ,to 'be less than TWENTY ,THOUSAND_'DOLLARS ($2,0.',000 00) The" amount; of .the Teri'a_ nt Financing Credit s2ia11 not bear4 ~ a interest Thee Tenant.:Financing' C=redit +cannotr bei applied' K. retroactively orxcarried backward`into�any payment.perod which 1 wy xr occurred 'prior to +the time"the Tenant.Financ ng Credit sf`earned° r + If the Tenant Financing Credirt iss'+not exhausted a€4the r t b' ri' =a1 •o r �✓• termination of t•the term of -t _00 shll� not •ire 4eue_k�,��S ., w s,' sbsA. any o ;additional ;compensatin nor con_sifderation''><there•for� ti "r :' �,. "�•�zz � e'�; '�_a a��'' �4K 3� ���� R � 1r�� � �' �� ,a a�� •('c)r. u'Recove'ry�of':Inues„tment,Capital`�_Af.ters`n ��';��` z,�s��� -?r1 .ix G.” .♦; �;J Rettlrem6ntJ of Marina:Obligation Inb th`e 5euent that Ten`ant)shall t� t - �5 xr r H �.t is ai s o- y �• , Y,y c �7 W G:r Cam * v r r& ;° e e �. . . , 4 `�.�, 7. i a utilrze any rove"stment^rcaptal in':�the, construction ofaMarina, � ` saids_investment`catawl shaI be recovered in the dorm of�the 7 r f , cancellation, of ` Rent after -`retirement of the yMarn'a Obligation`•+ and the exhaustion of> the Tenant .'Financing C_'redit': that ma be ✓ ,y `F ff - > x " v'a a 1'$ vae�',f tyJMF21g1 +8/1:3/851 rt Rew• t y 2 a ^a t S r of ` e+ x.• 7,.1., r n "4. r f y:, i'4 i f hf r`X, z ' ,f rX�. _ ' t� et ..•1 d t - {7,kT. ' - F r •` a ] 'a. , i hr carried :fdkward;,-provided, ;however,, that in no event shall Tenant pay, Rent in'ian year fess than+T,WENTY ;THOUSAND DOLLARS ('$:20',000..:0b):. After.' (i) the ob'l' :gation is retired-, ('ii') the Tenant Fin'anc!ing Cr.ed-it is :exhaust'ed- and, '(iii.) the capi�tar '_ investipent,;. if any, :has been recovered, Tenant sha-11 'tk5en commence .;fo pay''Rent to tandlord';in the manner d`escri'bed` in:: Paragraph;' 3 2,=above' (,i e;, Operational: Shortfall. or Percentage,-', z, Rent" wh cheve"r�? _ t is greater).. The: first biannual rpayment of Rent would ber,duex s xS d`6),, =months: after: the exhaustion'of all` forms -,of Rent- credi¢,t or c,ancd1lation. descr--abed in -this' Para4raph''3 3..1,;. =- y above N Pai FfS S' y -ii'' DIY A IN t { A f l . fl F _ 4 ..fit• .,.. , Yr I k ! iP k 3 ,2 Tenant Finances P..ortron of Marina In 'the "�$.Anr T,even wthat, Tenant shall finance onxly a.,port]on +of they ?� ' �;r h. h r' construction costs ,of `'the Marina,;' either by incurring ;the Mariana " Obl`gatioii: for said purposesk or througki capital investment, or '.y both°, Teriant, shall be, entitled to the: benefit of ,the offset, 'and credit provisions- ofr Paragraph 3, 3 1 (.aj', (b`) and(Ic) , 'ab`ove, c ri? sprovided, ghowever, that for purposes of applying- ahe terms of. Paragraph :3 3 1 '. the iMarrna -Cash (Flow ;shall' be all. income, ,rents, issues andz'profi s' derived_,by the�­Landl"ord from the Towne ship and ,rq,. 1.G'•t i - 7 -Lid .. _-.' r F operation{¢of� the'.,Marna, reduced by;`both (i) ; agreed and (budgeted 17 pFopleration and uti�lityhcosts.described�,in�Paragraphy-3 2'2 Faboue, ' '' t dx4 ti 2 h"ar s� 4s�?u;�-a rf'�..>a. n �i .,r4 a< ` f r:K w r f ' W' 4�and"x ('iiT){ the sons, a; A entr a�ments Land'l`ord mustrmake roriE tile` �.�' 'n , rP y .7k ,t'-'.rs• -:< ' ;14- rj,, rye VTTc_-,'>� i' (• a ?.y �''h r* r 1, r x r f "G dtil� s:_ b c �Calif6tff-Eat�D"epartment bf ,,*Boating and` WaLterways '�(or any other N, a ts-; t ° "�Fx '' rt v.;et rbc n �'�,.•,S v. ra.'$+ _ w"it h a °m= a r "lenclerj)x ion xthe f�inanciKng6 Landlord shall`- obta M' purpo"sees�of iNtu 9T. "'` 5' 'St -_ f p >•+' .�a �' '" i sH 'JLra���i f ar, tx Xt r r • d - ia^ -. - t Y' c ;'-5. t� �'s ... ,y v� constructing, the faci] itieslocated ,on -the Marina" �?' - theoretical example: o`f the •"operation• o;f" the terms',r { ,� Y h : ') R ,h-- - - . g cif +• _" ' - �`�`,Paragraph F3`• 3 is set or on Exhibit '•Cw attached heret-o_ t i y ti ' r aA. nd incorporated= herein j f y'b1�F } ij �"` Vr �•-,< - < 'iJ r' hF r i ° 4 e 1r'f e•4-' 41!1'6 4 ' der. 19, JMF21g1 8`/1:3/851 T', r #� b a7 '��'"s c� J � u. r �` t < S e � -� s �, •� Y � �f. %� ` . K ' 20 '411 - 7 r r r I Biafinual', Payments The -annual Rent. described. sin ,Para r -a h•:.3.2, g p , .whether it ''be ,Opera,tiona-1 Shortfall under _ P,ar:agraph', ;3 2;(,a).. or Eercentage, `Rent under .P,aragraph 3,:.2 (b) ; above,. shal•1 :be paid biannual"ly Atwice. a y,e'a•r)in two ("2) in's;ta:1 ments with the first; ,installment.,due .on ,the, Rental Commencement Da.fe and'.,tkie d. seconansta3lment due ,six (6,)'.." months later and ah1 "subsequent payments: a'n six (6+) month= intervals-` :•- thereafter,: On the -Rentalm ,:comen'cement Date;; and euery'six Y' k a months 'thereafter,. the part` f s shall d'e.termine the amount of Rent y.` which would be payable during the:precedan .'six V& monthhperiod g under Paragraph -,3 2 (a) and 3 2 (b)`,, above, an TeAAh 4§k. 11F pay, the greater amount Alkl Rent "sh"a1ry1N be *paid` in lawful moneys of` f z & '^ vn ,F:a g e i „•. t s>r'*t i- vu - x _< SV i t r ' 3 5 ;)Net Lease Landlord` and'i Tenant agree that the- , RentY;,payabie under this -Paragraph-, 3 shall ebeu;net to iand`iord° and y that all costs;. ;expenses, efiarges and obligations' of every kind 6 and `nature-, fore-seen'or unfgreseen, rehatrng to,ttie Leased ° Premises which. may be-'attr.ibutable to :or becomes due during 1the, =' term Tof this Lease, ,,sfi"all',b _ try- e paid' by Tenan !3".'_6` 6th r, ' Renta-1.Tenant shall also, pay all .sums, ya Impositions (as defined an Section 4-1 ,,; below) „ costs ands,' x obligations which Tenant, in any"of the_�proesions of this Lease, m .,i�..f-y, u, k 5 assumesc Ory agrees %--o'5-2payt r X3.1& Kit n ¢�, ^ t . qs� x., M ',Mt x q q r, M,S e- 4 v a �?v€M ss , .�kz k tc'A s• ;T s ;rj. x M Al 11RTICI E7 IV i ` - "a 1 _� � - x ?? # 40 a , 3 'a y `.''rc ^a+ N , YY 7•y • S. ,'. s '#rkz r ^. tea, ` .ti �, v. d at< tS ('e ..+ r 2' "Y �•t 4 •q r ..p E 2E T „r' r Fry M.t 5ie �A t" x :w tir �:3�a .h j �d.F . §^' ° 4� t nF> s,f ri�q Im OSrt 10I1S "r n res its. rp fr ' a ri Tenant ¢s Obligations From andr after the _date t°�'t y I , r r. Y - .'.. 'E `5 n __ a 'r•! .v ;y, +Y aF 3,h Lr #S r W z. _ 4 ,rY :..� h .r a. •`h Y r ,_.` ^. u� �n t _. Yr?• �'R x 9i A4-", -,that-cons.truction of the Mariana^ commences„ Tenant couenantsf a'nd f _ ° • agrees to'. a ^ befOre'an f.lne enalt ` Z t g p y, y p y„ interest or cost maybe < ^added the"reto four the•`nonpayment 'thereo`f and at least ,ten (1'Os)` days.; prior, sto d'e3anquencyy,,ill Impositions r ".A s' used herein,.;the e x t ^ I r kl k s s` r , a Y N 20 cJMF21g18/13/b85,' t r � � a Jt = � _--�� i y 8 7 - 7 5�` ;�, ix ut � T'ryH �• r 'i w- ,-r ^,., .tlr�., t r ;�, f f� ' t i�, I � t Y 4cy - !l � : '•t � ,L r � F d s' Y �S s t Yz :4 k '' '^ , (� _ S; fR 4 •F btu_ ^ '� .,t a^Yx t. '',� a 4 .% 0,._lbM161S`i' o t- E r n -t �" , • n `�' atw2t r- . k y. �, 3 .� y: 011_�!�,'-`�= • term, "Impositions" means all taxes., excises, license and'pgrmit f6es:, assessments, refund agreements, utility rates and charges o,f any kind, and' nature whats6everj iffcluding but not limited to assessments ;for.­publ�lc- improvementsor benefits, which' prior to; or during the Term of this Leas,e-are -imposed upon,, or become due and '_p_e, up= a�ab-1 '(:i) the Property, or, any; part thereof ) or' interest therein, in;-.. or' any persora, property, used th eoperation of{ the ease dr inc L, d� -P-rem s6s�:% or .. - ..)., qi�: rbin pme�receive C Sub tenants,' thereof. or' '1 6 e- n see' sor-.; (viii) bn:'tY-& bdsihes"s , 7 Tenant -upbn 'TenahE's. leasing of t h 'e, ja s e d Premises ;However, 5, Y, h ek�'paid ,.in installments: r - '(whether ­or.,n t"intere on, unpaid .,SucI, mposit i'o-n)Tenant may pay `then same i,�,together f' ` any crue'd*'.,,°I:,n'teresrt. on 'the fsuchr,Imvositionin,,", iLhstdlclifients- 9, itr-esp6c.t,iv,6l.,V-;..becoritesf due.,and,!,arjy penalty interest may beadded theret�b fibr-the. nonpayment. of -any � such, 'fhsta!,166nt and i:.ntrst.,ee"­Ay y.,Ir�ppsi�--i= relating to a-. fiscal. -P per,iod,ofr�he�taki ..-auth pe�F.16& is include within xtke Term oV-thi r Lb asW�e% -'htC h Imposition, is assessed upon ,the Real .Prbperty.ov-any pait­theie _.fsh al 1 -be juste d' a*s.. V. . between landrbrd, and commencement' n of of - the',, enant'. to, pay,,�ren ,or:,terminationfdthe ,�-Termof'­­­ -'151'ga ion, ,o fl- of Tenant ,;x3 aT1 ' t, - 6 4. X�� 1 M - 4" X 7 -M �Renta',lL.-,C-OMM' e''n"c'ement-Date bk,',.the' termlnat�±onof theme 4 Term of thus Lease4 g Moth 4 c s I ns�. Lease in ,this '1 require Tianant:'to--pay a ny.-ran nh,�ri't 6 inheritance:, V 41 sticST business 116 enses,. '6apttal, levy tax;. of: iRoh,i b u s- ransf-ex. % ,ok N U" 2 13" zrn +,-A is A f! r 7* 1W I A— %: I andlord. or any income;,. excess profits or, rebenue:'tax or:; any `. other, tax*:,, 'assessment, 'charge. or,'levy ^upon ther,Ren;t. payable by: • •Tenant.. Tenantski'all: also .:not.ibe requ-iced to 'pay any Impositions -incurred `--prior'to the time:' t2 at -`the' 'current; park ;use of- ,t. eReal ^ "Property 'ce_ases- and the construction, of the --Marina, commences r, .,3r,. Receipts:.,,,.;Wthitn',,>90 d'ays of •Land -lord" s' written, request therefor,,, Tenant shall furnish.:recerpts or'otherrfeuid`ence F of proof ,o f, payment o'f Impositions ' Ar ..Az Right; it Contest Tenant shall have the' right w `• ''' ` - before', any: delinquency ,occurs to` contest. Or �Ob]2Ct,t0 -'the amount s or validity of any Impositionby'appropritate legal -proceedings;, ^� i t rxbut this 'shall J.not be ;deemed or construed ain 'any w"aye as reliev`i+ng ; t 5 L F , *v*.r :...' S i ,l✓"-' 2 �' f 'i' 2' tl. t Tenant's covenant to pay Impositions at the titme andFin thei k ,� M a manner in�th`is article provided, 'unless; Tenant shall have �`5 �;•I deposited with 'Landlord good and sufficient,5ecuri`ty,fo the ^ s payment of such'•"Impos`ition,:-in ar' amount sufficient to pay said ' Impositiori together with al'l interest and 'pena}lties th'at'' may , arise in connection aherewiah Upon ;the termination of ouch ° .i ."'-. P roceedings� any moneys so deposited-skiall'be' applied` to, the a -_ent 'and `disehar a of -,said Im os tion if' �an then' ' a able Pym.. g.., P..` Y. , . P Y . and the 6A ance,'. if zany, shall be:• paid} to, Tenant -4 ;,:.Tenant shall a: k be}%entitled!to interest on, the moneys .deposited pussuant'to this 4r aA R 43 `� 4 ,q r ' e ,' 'f = � k t � a r � w vt�� '•- F Jn t -� A�•i'' � ', 'p ,.. '�' �t .. t x g a ° y �1 section at,the r,ate�of °twelve percent erannum Landlord ��, t�v -.�? � � � -0i .. yr ,: -Nre� $ x res-�', b.t"' :; as s5c ""�n�•✓. � : N v a E .; � r� E L z shall loin in rariy Fsuc rproceedingsK -f its, shall be necess'ary� fors' r , - t er -rx 7 4 _ kR e w •� >� �w '� F »'• `fit - t p�'4"k.. ,� 4 t + � F, "•qq '� ;.R�, s' ,m it {to dow so in ,o;rder toy! r.o erl ` Prosecute� such =oceedin s� � y a l P t I t�' `C _0, 'A z-'inr+rLd't+,.S,'x7,- u« zP a 4 ,5 Refusal of ,Payment. In ;case any per -son of ent t K 'Y •r o3 3a : f y . •.. y" s a T _i y�'� z \ it to whom„ any sum is directly~; payab re by Tenant under this}. Article <5 ,yfi w r. shall refuse to°accept' payment of'such 'sum fromt.enant Tenant Fr„ shad pay'auch''sum directly to Landl4ord. and Landlord' shall thereupon, immediately pay uch sum to !such person:'or entity ,( V> k ,�,. U E k w. r ,., , ; ` ; $ - P ^' Y P c d •,s x 'Yr It s' '. 44 b r { I i 3 �y„ -+S � ' I D S `T f i • ° .. S i 1� , �� 5 T k .�..,n •-� ro 6 r Y a r k �' �y N�i 15 �'. ♦° '•,n r _ t u 5 S 4 'i ,' 'd. F n.i°,HSf4 _ ' �, - -w c Y x r r t r :4 ' it - •. ' t Landlord within. thirty (30) days •after the date -such sum.,is required to be paid .shall, furnish Tenant'with an official- receipt from th°e taxing -authority evidencing. such payment.; ARTICLE V Landlord,P,erf'ormance .of - Tdnant,'s, Covenants-' k , _ 5 1 If Tenant shall at any•.time- fail to py, ay an v ;' Impo.sit on or to pay 'for or,%maintain• any of„`the insurance >• Ypo,l des ;provided for in Artic —r' ! .he eof-withi`m',the time f ” ;- permitted -•by this Lease (sub,*ect-,to Unavoidable Delays; as herein ' f'. W. defi"=ned).,,: °then Landlord, After thirty,x(30) days •written notice a to Tenant,may pay such Imposition or,insurance,premium All ums °y roc; -y r•^"`" ''1. -.i iP , ,, y t x so paid byt„Landlord (together with interest whereon at ,the rate�;< 3 s,_; �. ,6• _ t' : , - yrs, x of 1,2$ aper, annum from; the respective date or' dates; of such a payment) shall. becomes payable by Tenant to Landlord on;demand '' flf ” E ` ;ARTICLE VT', . Contest of Govennment, •Regula•tions. 6 ,1 l'T.enant;•. shall° have :the :•night• to,.contest by appropriate proceedings dil-igent"ly conducted in,good faith, ri °rt the ,name of Tenant or; i'f pecessary., in the`namesi:of"both x Landlord and Tenant, :without expense to Landlord, 4the v'a`lidity or = ori d s-_^� �° � r 5 f a �ication of an law ordinance; order rule re V v �y � r ro�Frequirement of the„ nature which directly dor; indire'ctly teffects� sr' d s, i,rtF '�fi✓,`�r ; y tt n?�"A''-'- _ -'t7 S4'�' :.s'.5 +�7�r �' 1 .`eL.,�-�i�# �.,, a s'',�2 - � :. h. •: .P - � ##+:., - #.:,`. ;a ,.c.. . tii, J,e'�owner`shi €or`;io enation of 3th�e Commercial Pio, ect3 ;.vl;f' `�.?R ky x r,V.oFr , Q,$r M11•, n ''r by , - ' 4a '•.- Y;- P,.• P _- E 3"'F- a•� n> - y. ]. .;.a .,f` ;.,`•`� }.; 9 ,mow y, ^ � ' �.r� ��i•� •�rt�* •.y -a ,� r '��' n. � �=5��,� � �;. 5� „o,� ,.. �'�'� e r''z: -y M .� : Ari. ���'r.�3y ; tV:• � 'ti c `isi v n. � rw tf• :- e ;�7 ' ` ""may: v,j_: ' n r , HiaT 3^ s 'F rcomP-l�iancewith; anysuch 1"aw, ord'inance,t order,rule,� r:egulat-on, + ae aaA'0.� 'x'•`.i .y')'�• `5".y�. i,"t a1-1 i s dA $k�,-:'rrTz ac, ;. v N«E a y ;,ks a ;' 2 .'�a+tt ax C nor �requ cement :may legally be delayred,�pendi�ng� the prosec•ution.aof E 'zs , x; �4 �:A •y.?.� :;-ti ���',� ! hod .;�•'� a t� �"i` c � �K ,.��`` � � �' � w.s. i � �' • .a�iS $*�, :.+ y a Ji.; � � � f -t T k r;_�F` N4, <proceeding withqut$f the„tnciir.;r,ence 4of any ,lien against' }the:, ax �f r -w Property and lwithoutYsub7ectikng Landlord to many li:abil'itya, for yf' W s I ailure so`. to, comply ;therewith, 'Tenant may delay compliance ` ” ds �, t� �'' { try 'r J• # k � s -, e r .• 3 therewith- untrl •the final determination' of. such proceeding „Even if a lien,. charge or civil Hability would be' incurred by reason ^ i F T y ( 1 j'x "�F `,�• 4`ty-.^.S>;`,,��"' � .y F . w � M'� M, tG fii`�� gf�: k�"�4.t$ ''.: f '� '"'�„'„ N `-. , � i 23 »r5•�`� � ' c.F� 3 ,v`JMF21'l l' 8/1:3/F'85 a '�i:,;i � rpt ��'���.�t. 3' �,-, �' 7 't� , � f�l'P x �, .���. ,`i J, e,,.}.€ vfx �,d.�=.,ex" rte:, '�"' � ;•' �' �v�,r �. i ;$n 'y _ Y . , i ,. A i , _ t+y-;...''�B ru. `"'F1 jhr'}a -�• Y � � � r z• >t icy• 'sf it ,i - . . z _r . . , of•'any ,such• delay, Tenant ;may eoritest ;as afo esaid' and' de'lay,,.. . . . . .• - prowiided that such ,contes,t' ,or delay does °not : s,ub;j ect Landlord _ ,to' - . = -. . criminal, l ab'liit ` or dams es and Y g, proVrded.that.,Tenant furnishes I., to Landlord"good and suffic ent"..secur ty against any los's"by - °' reason gf;such conte"st ori delay. . 1. .< .La _ _ requi o 'poi any'_ M 1 . �, d <t ndlord I shall riO,t 1. be re n ii 4 s J 7 .. - .. } proe ' d'' referred •-to in•;<thlis' article:' unless, either (�i); tkie,' .. provisions: of a 1fcab,,e 1'aw "shall re u;ire that such PP ..�, q proceedings „ .� x'x be'brough-t' by and/or, in •the..name ,of L"aiidlordP; if!�wkiich event r` Landlord'shall join rn the•proceedings=or permit the, Fs to be �. ;., • . { brought im its n1.ame1. or (i11 �ii) such procee 1ings ,,bear at,,-re,lationsh'i. €% �, . `' ' " to the Land Use;.sApprouals or, development and�;operation of rthe>; � ^� `: rW . .. ` c:; k £ a" d Marina, inJ Which; event Landlord shall participate fulNly<'in� its ; a'•4 'sa ,), r own `nam'e sand atµ;itS OW eX eRSe ` ' z ! r . , _ ; 1 �- Vii, f i p , t ,j � ' r 9 ros _ � 't E# . r > 1 • .yam.. ,., `.�, f ' rt d - €. �. " 11 r \ -. J,: 11 ARTIC_I.E UIfi I x - t;, S �N , : P:roperty _, Use ,of ` - ._ k 1. "� K .. - ? s ' r: ' •'' 7 1 P -riot , the .co`miiiencement of;.eonstrictionlof-:111s Yr a ; *the tkie CommeicralAPro�ect or'"the"Marina Pro�eet orEboth•, , � „ ,s' ' '_. � - , n3.lord "may continue.. -its present', use "of the'VLeased Premises "at � ; rr <I. 6 Landlord's cosf `and e-Xpense• and andtlor.d hereby agrees fo, - °, s t ra • - 7 Yr, L om any costs or o indemnif defend and hold Tenant harmless fr t - 4 �. ^ - r uywhrich may arise from sadprese�u"se After ;the a liabili.t t n v x --1... ,� L v::., '..„ t ,r•Ct �,5. s '` 1, S - y o a '` _ • S., � h ;; z �4t.,.: `i. z �, g : - , _ a . ,,,t-, commencement of .constr4uct ,on of ,the f, ":' eraial Project and � �� "r�r r n n 'i ':l > ,•�vv, �:_ i x� 1 �1 . Z" - j. „ v ,kf' % 5 r , v t`s 7� -. b ., tiya ...4 b +4 � i� 4' f -'t' �" i �1j f r+ 'r n;. 'L6. %�.: ,. + d,`#- r #, v' �, a„x < v Y� � " - " 1' ' " ", -..., hM r a ___.,.,� a � .I... _..sr, �' `' f :....t, ' +. �1m a . �' 3'•y � I. , R h -fir k z 4 s "t d � y.t qM �fp °. rR`', > „><the— . 1. - r durin,gx the,,, term kiereof ; Tenant oma N :use :the r.o pert r , "� +`, `' 5. -i:� `"•, ., ' �y �,+* ,� Ja`� �y 1. s FS S +�y. € S'-4 s• J. Yfy vir'� a "T. .Syv�u",�`.. 1'i� a { R ;; 2�`: -ate 7p� p ,Fk t.�.� 4 _,�3 .*'l , -,- .,,x� �, y �+,e,r y Ly;; .. {rte, sF ,; k`4z, '•,. t V,'• .fOr .3n �2I'„;.,.-n -°` �` e.. . { ! 's_,,_ 11 .. d" �+i - `� '° t: t` yl � .%f. ' •n. se 1 i w��•� �- _ly"� ; �x, 7 y��p ted us allowed rund'eryapplicablen�zon ng�Iaws& and', , i-,`' s _Iv �, ' re, w."4,111s�F r i r+.,x a t, +,Ltt? YI. •ae , .;�> �} a 4�Fn r,,r, i �,.. §,.qs,'S C r3 .y {•n.a� 3 .', ..A ••v t S„ -ii Y "� n :,' y 1 ,,,, ., � §��� � w z �-�. 5 g F: land8 ._set:r:e llldtr � I � ��: �4� . ;u, r�. , 96 .�. .r Fti� r ? .3 . � k� 5 �zh �a 3<�° y �" ttr -a � r.k4l .z .a i g ions �, ythe use,.i *occupation of they Property, 4� F�' , s i � F+ ? i ✓,Ai r,h ;i" i i �+* ! ." s (d +f,, . - 'b-, I a& x lr, - t`-µ:. y,µh! -'k.' t '`. a v, n 95.x.,, i r r ,'a a �''Gt y �'V. ao•+.'k •, ,� .: 1_,,� { c^ ,fir' �,� * ti t Tenant shall comply with acthe* requi ements��of :all go�erninental r fi' t 11- n r 3 a k i° ' ns'v f H �' 4 ` 2 v� A l� ♦' e f t '4 > "� w k.'' laws and =rpegulations > r a' _f t f [{� a off. r 1 ' - u ' v " r ' it Prt- n �.r 5. - a ' . ,k. ` d� e - e - v W J -1 . g' O 1 4 .; . l gill" 1 F. '� >, pts F g n. - '� k -.b, I .N �. g n r" .v a a...t I-" r �,',q 11 y7 i i. `y ,"€' t hNs h r2 _.r d -r --- 1 a.,n `y SS{r h 2. ; z,.;^t i ip..' v U'<- rc t r Zr tcty ^� aZo krM s:� r,�;y",-�ti;.TMF2ltglr g/.3j/85V,t SF M'N t Lw ` t k t y �.. d - ° -, `.� s S „ k,o ,!*, A �S q, :' a'"�•N �' �4• '>; 'Pr N�" arnl. o sr, a -r M ! t r' y. n ; 1, } ,r'n gv , r r °' U r qs 6 9 ,?t k .,,t J M �g �.� * - 3 l lk h ,— 3 q Y T 0. a V 'y ✓ i '� 4� �1x T h} y r U 3 _ ,r [ - • tb i tt. _ p kr . 'b ^ t, 4 � ' , K�4 5[�t (� �( 4i, Ij d �',Y ..v ties e F f .,G -�, R ,1 a b� tr y,k,. r Or i & 1kj6 w(J 5 k. $ S , : St t _ 1. lir'. - v K., µ >� w .�, v ; '� 't �` n '� v illL:•. :�. ; ;� t ", b r 1 o _ } ,�. 7� „ r n l P 1 J` < �n . i 1 6 u t.. •„ P y�+�1.,, °� A _ � ' ..f k e. �„_. 5 r •; . tr •i . x, aha g :. ' " ARTICLE VIII Removal of Existing Improvements 8.,1 Landlord shall have the, right to' 'remove., :at its: '- .expense, any existing improvements on the ,Leased .Prer6iseS on'ror . ;; be•fgre the ,Effective .Date. In the event said_ improvements have, not been -re o,v;edby' said :datey;Tenant° aha'11. at its',` sole. ;cos;f and: " nse d'estro , remove, r ex e p y e1; t'e or, sell sald improvements and perform aY1 site preparation work, for: construction=-o_f,'the ` y } Commercial Pr,oj;'ect r In the. event Tenant' elects `to' sell'said improvements, any and' all proceed"s therefor"shall be the property of,.tTenant. In- the event Tenant elects,;to .use said.imp rovements , i a ,F. ,, it sYiall Have the sole ands 4 xclus-ive r'ig'ht to do: `so during they 3 z y '� k term' of this Lease ands any extension' -thereof.: ARTICIE, IX ,Con'struct'ion° and .Imp rovements. ; 9.1 ' .Oblj"gat ors. to, Con`s ruct. ' 'T'enant,, agrees; to con_strruct_'"'t,e Commercial P.'roject yon` the Leased Premises ,c. including all related;on site and;`off site mprovementsr;provd'ed` that construction of t_he Commerc"al Project is feasible as feasibility is defined i.n Paragr.aph.'2 of the�Agre:ement Concerning,• �' j � '?� nrt•� L i r. 4 l 4d � ..� j t „Ik _' ! J .• : %'3 Y �,F. r DeveTopmtent�il T$e Commercial Project shall consist _of variousv t. +' �� ,( tirt• .#+. e£ T w 3 `'� 4,_ � A. s Y � i 1 t: d � 1 :r r a'r t ti` L detachedbuildings aesignedrvfor commercial uses TheCommercial+ .yk'y"' '�. .G r # a ° 4L "inti sl yHir a 2,ffti.-, T> °v.. 5r E e i -`s Prop-:ect'-'ma Abe-b�ui�lt?'n•a number;of hases.>rover.,a 'o 11 s 4 • a _ , t ,✓ �y - .. 5,yr,s,a ,,�x 6'r „x t. .f-14 �P , f r^. n.. al�iP-•.'.. c r>r+- wR,-='Y yf.•".b'+a,kca_,�iivr".".:•+�..sd`�"daslh w '�{ 76X ' '4 •�,-' . .� '4 "ftp. #;'?. SevefiiP years �`:'Yr l"�k�`• ,r T` ,' . x -� - a.0 n� ,f- ,r,.r.E'k -,. r x •�•k ,� '- I I -rte e �. - t?��M'°itr-d'�,.-{�a:l.,,.N!: � 'b ;e;.f #� T'��� -W., aa�•x 'h9,p.;s �i k``J X, ";t,'.ws •w?. � z rL;Vi"i.r 'S^^ H,•'" , �r:•. r} pt .1 31"—.� {� k� x.. f :yrt• Y j 'Hj+ t'.. ..�` �..3 5 LandUse�Approvals> er, :Al .�c.mmqaj.• .`4�,._i� tR=6 fr �•'�- f.' 9 encemen ' a + - � . � � c • '!"� $ 1 rK...f� �`�' , _ � � �g� r n H$ •ay v}.,#•y � � S4F ( �� t -�i ti a .t, _ ^' ,-, �- ,S .� t x.'�k` b � g 'Sr L - -rr" '._ :✓ ',..' A• r• ..., z 'c,`'�•� , r - f ,•..{ i' , vx y $-..:_t ° k s .s, r ; ✓k`F i r + the Term o -f this Lease,�Tenant,#shall 'apply for an�•`�;and all �-Y,w „r � '��� a �. -tim "".. rhe r a �,'. �^x d �5�.:'rp •s Yana X... e"�7 v � �;�c f" � i '� y 'fiq . •� s rK "_ S' �. 'e*•n ;� ,� r :; .f �� .a t �°- :^ � a. r `n �s. p•C & h f "'S 4..x w •+. i' -+, tom.¢.-': y. ., .. m:a�• r 3^,,, ��j �i� 5 J , I requsi#te, zoning: ordinancesior amendments, genera, or;, specifi^c� r plan'amendments,;dcondi_tiond- use,°permits ;,x planned` development _ r master plans and' other; approvals required for the ,deve-op ` a .-the, Commercial ;Project and the Marina' (:the ."Land<t Use •Approvals' r — 4 5 v,� � �'�' 4•v - _�4` ?k �'��ra' k'R"i � r �c�„U •.,:- � ^.,x,. �ri: Tx` -� � ^�. �'� P f<i '� ,�5. ,s � yar! �,z, �" r r , �. Yat?. p' e '� " s r t,,= 7 '� 3 � � '•-y r, s, -� S � +^ Jre « n 6 F eJ t�e 4 •`' . rr t =III Tenant phall� preppare the appllcationsi fbr'Land'-'1Js_eAp provals j or, b,Oth - the; Mai-ina 'and the c6mme,rc'L,i-a'1 pr-o-ject. and. 'sfiall':Fia.Y', for all` environmental. documentation, engineering' and, -similar! do t S _S -included in the,,application f or' Land, Use Apjjoval's ,Tor the, Marina-. For, purp6s-6s of• this, Lease-;' any and, all. building g, - -ra'o ,ding r'!demolit-ion, permits and, th'e, temporaty- arid finial ' Ce�rt,kfidate­p'c�'f '0c'cup4ncV which ­Tendh`tTenants pd pro i'slons,��, "c�-i,.Par' 'ed'"to b&.' N agrap4t19_,Z­. below, -;9hd_1T:mot,:15e- d'eem Ladd Use' U,s6-'Approvals' - her'.eunder.�.' 7A." each stage .of. -`such ,:`. , proceedings,, 0. - :Udd;, �c Landlord,: sha' i -gkaht'e P'access i to" co""' f "ATT' . .lingp, p app,l'i'cation',5,;,-*,,drawings , -an ;,plans ;to ,,1bei subm-itEed;to.G th ', q! overnlng�., _T 6%, 'any -,munTcfpa1si:county.jstateor.' f e d 6 fzi,l t k•ty-,�iftclud�inj,Landlord'),'`"W 11 s d' c-tibi o yer, eve opment­­7 J ion{ ,,'connectlon­,wi, Tenant,-s,.,effbr.�� -to.tA' j, secure U's eAr_p�dTs' ;att -leaO. fifteen (15) days prior N to,sub iszio t said- Governing Authorities Landlord = ','-;1_', 'ac)�PO%-e that "'the.; escrlptiow of the, :Cbnne:�,ci al Project eat' L�l d" qos� the nriihg�.- bf,�tfid!s, fease�,Iz, and beginning conceptual P An, -gene ral,, <that _4 .�- �'6 ,s"ul�staii�E.-ia�l.,c,or�trol"- 'y the dbs!qfi,,layout,; a _.fid con,figuratT'on og.ea-" ctth ,,­ e improvements'. e2. a,p_ C'j -sedthe;requirements of-.o,t e -k. Governing,-Au,thdr.it-i4as,.�' ar Yp­ 't!he,-;iiis,ti, ,tu"tiona-,l-,'l'en'der-'f wnanc.fng all or ta° portion of the ' N b T "TLenani:,,i,i�ha"lltl!,-d,-il:%i!ij,n- tmEy-ei., proceed -tb­oblta�ithe aw,. K. p.r,qc 2!n;.­Afarid3',U,sep iN 'It 4 4; App rova-i &, from tAuthorities, b ­ 'lie' :�Gov,6'r.n'-xhT;,-Auth'bt.-it isu gect,i-to, --T ­', _ Approvals ".-.* �,, ". _ .. � , _. - I � : '. , " t - - -, �7, , , .'F . a 4--V De,S�C nPar a 4,ka P 6:r�T- 4'�;',bb below) �ae xpe-dIt" iou-1s7­.y'; :..as p : S. reas-onabliv ftas'ibleJ .,If­:.the'laoVIs have: not :nd Use 15een 'obtained' a, -sl8ld C6ir6&i&iai,- Prb-166t, ink the,- manner. _b 6d .1br- t6a n, Z68,5Z" 4, 1 2� ..;Y f % y t r1 s described in the AgreementConcerning Development within tour (4) years bf the Effective. Date,,, this teas7e may be terminateff, at the. sold'.6ptonofTenant.. Landlord, .shall cooperate. with Tenant in obtaining' sa I id Land Use Approvals (other than those 'to be obtaiffed from -LaIndi6fd.) and sh-akl execute; - any and- ,a11 'submiss-iP Rs applications or other documents, reasonably`, -r e4uested,.'.. by Tieriant.,)or-the,Gbverni,ng,, Authoriei,&s-7 ink connecti1ohz',wt.th, such, ;,i -n-.; Lan s'6,,'4provaLs. sha: L.. -11- �procpss�ana,, sia6k4 to' dbtaf - final approval -from 'the„Public: utd:T-EtvComm is s ion-, orthe rd16caEioii of the. -Ct6ssiftq`f6r� .access ,road to'the _Real - Property,,which _;rLloc'Atibh"siimL-resu -t in access road .­,lb-ecoming -An X en,.s, 'diBiywoo­di-Drive. - re 'Lan `d Use 2eqisy,,thi§� Inten't. jr,--th, Approvals,;-, __ 679 Land,1dkd;--A'n �*-. q e - part ,�Aihiit­ e T nint sha'_ elqpm'e t t"T-e�uest 6fTdrant_ h6cotiat6 a Dev -.,Pro]*,e,c,t pursuant to t eat'erms', - Agi.e'ement, concerning th'4i Commercial; h 6de��S'E��tlons, &586A t"b” of, Gov6rnmeiit� ..0 6?586`91.t: or any successor: 1 .,2'. Construction to_ Conform;. Tefiaht,sh'dTl`.. construct., t�� Co`nnerciai--��r`oje�t'gubitantlaITy- �in,4cor4,�ncewith heh r or ins I 0' 'to 'mi ub -"e' 't 'S" '-- 'a e,,'.,A Pp r -O a during _­ "e,__ o - r, e__,o 11--'Clon, construction, s vallowed under y 'ariations course x u. A 'f 'd" -�the,,f appromd, '0C ."tH6,1 i7n-7- Z_ p ,�kns,an _sp-, .4 ;'o'vern-'i�n"g"x,A"u't'h'o"j:.'t�.�t-'ie-s',"whoseappr,(Dva Z:'y t and b" '1�e­ C Y!�,t onstruttion., en er�,- prict, o, commencement d -of,'such `phase v'� inrp c u r i,n,,qsucn,,, pprqv any changes,, in. su cy pl a n sznd'/or specifications Arre'quired;`by : of the '!Gbvernl;ng,',Authbri-ties"'- T1, jF N 7' JMF,2Tg, 8,/%1 Si pt .'7 or: the Construction, Lender', thenz,Tdnant., to 't-he exte 't;,thei'iarfie.;­' is'so -reguiredi' shall prdcure such pproval,; 9;,.Coffiiencement'and, Pha s i ng As' as reasonably Po�ssible.afbE(r�,,t4e execution of workinq�,dtawingsv, Tenant shall, proceed :with'.�dtfe�'dillgonicia. to compIe:te, the'Cbmmerc'Jal Project, as ,rov.d"ed n,: Sec' ion :1,2,_'suhjlectto 'Unav o "d able,'Delays 71 n­�, d7 -t pnsti;uct:,ion:,aTenant's � y''probeed �1- s p aes�.'the�- :i 'Ph-aS_ 'd�hg.of 'co'nstr'uct':L-6n,-,- ls-'"c"o'ns-istent-Wltht'tlieY terms of': the Land 5_ P-ry-O both timing,.ahc improveme an nr L` rid-lVi s h -11,` I�spedtl n.� Lf4o espdhsib Lit a a • -.haVe-,the rtright�, wenter , uPon the Leased' ' Pke misestifor;'fhe,"p urpos,er, of inspecting' the zth&-c project"ndfo4,.,.- -,notices7 of-ponrespon's�kb, e-thecessari pos ,-any� ii, 4POtect.Tdnd1bid_" interest ime,: eased'qRr'M-x"s'-e mechanics," n i c t," TL FZ T t 9; 1.,4Cbnstr:uction, Cori tra&.ts At", leiast, thirty,',(30)days ' ior-to, commencefndht,, �'o1,!construi�,tion of any phase of t e,: Project, 'Vefiuint., u'6oh,,.tfieiequest'-­df, 'LandTord, -sh&I I, -_4 -make available toi'Landlord; photocopie's�ofss: ,Tenant, cont-ract'is-v"it 1i 'the- cre n6ral contractor .,ivih-'16'h4-r%Wkl;l:'.cbn's,tiiidt!.<t- e�*` _h_ Improvements, -together-h iwit a::..copy-. of,.. the -i, 1h —such .p ase;-_, - 'A e preju lce,:,l --0- VAR1114;,", eefn6d�,�toty, _d U_ z,avaa- P- - Jf. R the Landlord under an h 1,8y�,Lease�;,, a, sup er: proi ein9 i! d m a T ion ,to, t e.- rigate: z_ giVen, Vnd`6rthis Atticfe'- which r 3�ght' s"may' be, enforc6d s" 2�8 JMF-21Yg1-, 4 'fv "pt, s.cx ft 48 N, ­ ,L j t. 4 t J, Improvements in a;good, careful,, proper and workmanlike manner in J. accordance w•th.'the p-lans and specifications with norma=l oh-s-ite changes,, ,and with all provisions. of. 1'aw. Tenant shall, obtain, -all . necessary'. buildngr, g, rade ng; and, `d'emolirton-permits and 'the ; d' S s tem orar and final Certificates of Occu enc, at 'Tenant's -so 6. " * P Y' P y cosi and expenser. 9 ,7' a Publi'c? _Ea5ements ,,and. 's's"essments . Land"lord and Tenant •agree that i.•f,. and when, any governmental entity (-nc'ludng •4 r: Landlord)`or an ubl c utr=lit com an shat re wire the , i• Y P Y q_ n. FaV,,ded'cation=; execution ,and delivery ofs any fee. simple a k 4 s e rights of -,way or: easements in,. over ov along ,any such streets or in,, 'over,• under or through `the ,Le`ased,'Premises for the ,purpose. of providing; roads,,.. streets,,water, ;gas, steam, elecfricrty; teiephone.; storm, and'' sanitary•sewer" or any''other-necessary public utility !service or facility for ,tthe benefit of the Leased Premises -,•.'or landscape, scenic ;or open",space easements;,, then. both.= such parties will° eice"cute,-racknow.ledge� and: -de " er ,suchi. ,+ -.v instrument_ ordocument {as may lbeF required (whether in:-'the4 nature s 4 zd�3 °, ` '�s „ �, , k cof an easement of right of wayr, a -grant: or dedication in: fee E{;, +'..t'> 4'0,' 4+r. .+sr '?'`h,9 a�.;,1•ci•° '�-Ty ,'' .,�'� �+.t... 5 - JV .:.•a. 4 '.:n •�+'� ¢ - �s9}sm ieorotherwise)k,y rouded, `however,�that the,.rlocationand? ¢•`TMK""y?�^"r iM,,..'�§, �,:tt`""'�`9 Pfi •r ."P%.s"`-a, , G.l',a4,. n:. PSr :'.� .+... , T •,r '4 ycF,�,r t + c .Y 4,..: t pa.�,"t;?- a ?, �h ¢�r�• „ ( 1�,�.a,ys,v� q ., a1�. f. '. "fir'Y r�rris:r sizeoft s�uchr,ghts of''way�'and easements, stial+l, be-sub�eettothe� r "Li x •-wtx r 3'�'� ,-s 5� w, .,,` '4j- l.,"„ ' i y r U{� 't. rs yl'7 t. 4 {.. �. .-4.f� -.. •`x� 't r "4 • .R.3 _.4 {, b,; f a'' �•�.F q,e'.' h .it• ri ,.. -3. tl a.5, },x �J.yl• mei. rr Zr r'a r r'or .writ,tenconsent=ioftTenant`�;a>:Landlord:'s coo eration4°' .ayxt.r.,r;• �A`,pp r ., y 4' '+.< "" °H , t ;5 Jy Y Y:3,..s�n. tMy-}r3"'" rYmoce. .. -;r t�, k =x R 1r'• `• P,iv,u,., ;� a' provfided"for herein+,r"`shallnclude,t� among �otfi'er things; 4 granting*r $ r �, ✓3t,�' v. r,i',x 't..�' "'r + oQ2t k Viz; u; war' k " v y x I c. e Y 3 r N r ;necessary approvals, joining in any offers of`dediation; and s 3 i execut n ,acknowled i=n and'delviverin an necessai instruments g.. o 9-. g 9'r Y Y i or documents and;' shall'.�be'- at Tenant's,. expense. Landlord5,'further y agrees that it w-11 .execute` - { upon Tenant' -'s request' any and. all P. Z 9t o JMFr2 l 1 8 /Tl!3 / 8 5 s i i � ,� N �� �� o � � r ° L � b r` a r �j 4 7 �' { ,, 5 '�� w i '. }" c 3 a '' •�.� � ''�� }�• 4 "kk,' � r a � � R -_, s . `� ,� t 5 � a . � r � '] .. � i r•' - r-+1`' '3 7 �a H . ak�a � � A � �'% -,-. •c A; t~ 2 '� � 4 1 t• r4 t ; s r !?�41 Y z r N r s 0 �' V �:� ffzr j�- _� , tr documents "re ui,red by any. public .:agenc F" 4 connection', with the, - creation, of• any assessment :distr, ctr. to: finance the' cost of utilities and street and ro'd''improvements necessary, or' convenient for dey,elopment) o,f the Commerc 1,, Pr___ t ,so 'as-, to, , — cause theas.s:e.ssment ,Tien, thereof to become-;a.—lien ,upon the- ' Tenant"s interest in.:`tlie Lea"sed Premises-.,,,. 3nstallment"s '"payable in ,respect, of such assessments ,shall be, an Imposition for ally" " 4 1 a purposes of this Lease, to"be paid by, Tenant as Herein provided L of { 9 8 Insurance :During; the: tcourse:. of e.. oFf Y the:.' Improvemen;t's, Tenant :shall carry all insurances {requ-red by, -�� _ the Construction- Lender t "9 9 T:itle-to s% Title=�to all Improvements w constructed by' or xfor4<Tenant shall be +-and` remain iiia Tenant unt`al i i 4 the terminati`on 'of1 this Lease, thereupon, all right;; title and�z x T• i� a interest of.Ten in'°the Improvements 'sha11„—automaticaTly'pas's `, a `to ci� rLandlor a . . 9;Q; 'Marina Proi(ect Landhord covenants, ,at',its own h - expense„ to construct _the Marinas, if , _as;, and%'whenyy requi ed" by ,the. Land UserApprovals as: "a °conditson of rapproval of the Commerc,iai , Projject, anything to'-thecontrary in thas Lease notwithstandrng - , Land` lord's obligation, to build4ethe Marina Pr'oject Isf subject the determination of, the fe'alsibiTity 6 the Commercial Project as .y 3 l . , ,: � � r r +,_ r S feasibility +�s, clefinecl in P.artagraph�2 of the":Agreement�Cbncerning r -.. - n { n•p+,' ,Dene_ opment The term f Marina shall nclud6--both -the berths r _ §' , z• s t .' • q ,:'° n > .+e' +' c� ,� ' ; .:: . r.� L`+'4 ,; } , { . S' t k � ' �3 , i> ^• "Gt `w 1 the aMagn,a,} basin".' 'Landlord' s'`obl'-i= at- ons. to ''const�iuct tkte.iMar;lIldx +"` a� a. ` r � f #' .€�y '� '' • moi. ,,,,1 >�' ' • a s'." a ' S ,. �, r - �; f , . a: �, 1. -,.. �l i j r u'c .( ,i R a, ifrr' n �Jera�� u•: xx� e 0 8 3 }> i? yx. 5JL :a• 6 5T4 5,° �,I 1siy dez 4 F. FSS ; < �r ,".�' w includes 'the dredgi°ng 'o'f, the basin of the�Ma•rina kJ ��� 'w� ni o t ti - v �' �' � flc ., xFT -?'4. ��>o• t•�t to i si1 � �}a, hp „Landlordf shall tobtain 'financing for. thel construction= of = the Marina'Pro�ect of its cost and expense provided, however,, _r' e thaf''Tenanshat=l„ at d" °Landlors 'request, pay, for , and all t a 1-icat_onr 'fees• (otHer ahan loan pp.- points, loan origination fees - a iu b f5' - 3`K^M.: 21t4s 5� 6 r4 c 30 i ny ay 7z NAf}"JMF21g1 r:, i `3�ti r V A f +-5,. r i 3' rr y� .' f a p' r .� .. �` �I�„4 'clLSn. rr§• h .i �1 { •3, �. i `i Sy ':N t 7 � 1 k .. / J ^n V BG K � y, 1"•o ST 1, ,0 C f S 7 F �, i J b 7 .�. 7t .f w'r. f +, n� r "'R��' 0`162E q c� ,y €�,C r 1 r .. .� '` _"� /'� „x •� Aai �, ,a"a J. '� ''r v i y3; or .loan brok"er•age fees) and Tenant shall;, at Landlord"Is request.,; prepare any and all loan process•ng,documentation. Land -lord• hereby agrees that -if xequ'ired by its lending agency, it will 'pledge 'its inter,e St; .in this; Lease and its -rights to collect rents. - hereunder as•.:secur ty-for said fi'riancing;. The parties hereto acknowledge :that,'Te shall also *re uire ..financing--- to cons:t•ruc;t 9 4_ the..;Commer;cial; Pro ect .L'andlord.`agrees that .itpshall %n � of obtain- - - its, "financing, or, otherwise>become irreuocaply obligated to obtain: ,. said financing unles '`Tenant agrees in ,a subsequent written.',: - memorandum. that"(1).'Tenant-"has"obt'a•ined`. a=binding`commstment, for, r the `finand Ii Tenant,,needs- to construct the :Commercial ;P.-ro�eclt s or any'Phase thereof' and (2'j Tenant` hash co' nsented�`to the'; amou_nt,+ -� z., interest rate, payment schedule and'ofher terms and Conditions of j s r *, u -x''.7 a, to -�' •i+i` t-� r -•k ,,,. n e .3 ; ; N1� s Landlord's acquisition of construction financing °Tenant and' �r Land^lord shall"execute a, memorandum 'evidencing the"ir mut_ual.: consent' to the terms' _and. coedit`ons of. Land'iord:'s' financing,. After"{Landlord acquire :, f nagc %ng .Landlord =must..:.. s, commence construction, of the Marina no:. later ­than: one (1) month after commences, construction of 'any phase ';of the•-•. a Commerciral'Pro7_ect, and must complete • cons tructn io, within ,...'arc A r•" r +_ 4. h,feena months of ! g (18) the,commencement of construction- Tenant �_ may not commence` construction of the Commercial Project ;unless` a� SSS �' � ._ �-.c� �} ..: r.T � u!: 4 1.�. ry �h- v.. ,x° ` --. _ t � _.. � a,. •; fi �� + a s, ` a a •.t 'r .tom 3 r'"'7e,� _v•k� anduntil� Tenant.Fhasrfirst-obtaineds}thea Land"UseApprovalsj A(?t.v-,,3',� ar"'7'.c '4`�•'a ' .z .�'. 'x d ,.,fig `z y{: -t a ea 1 Sa ,••3.5-:`+! �?•q7.:e{ rt '^'3r �' �° `..1Yi. -G.an+ n ..+- + ,1 j n '': '� P- r a t 4 described in �Par:agraph,x9i 1 1;x above dLandlord sha11 pursue and y k 1� t }T+ .i`j =° �. S _'., 3ki�g +� F4 x r n Q L ; .. ;�\ } '�� .s *t ,+ s I r ,. : y y+ x •� '^' ; � ¢ compl`ete�such�construction with due sdil*igenceKsub@ect tok, y 2 E. n°, x v t 9 _ r 't xy3� - }' 1. -` .r t is v> _'4+ $'Yd' a A -u I } p d 4 . t �. '. i b' Unavoidable elays, as suchadelxays are:de fined12ein:Paragraph�9 14, D x r S S e tom' atp�., o. �^p 4ia t.� e• - ��a below Landlord further covenants that; it will .,its wn , expense comply withId anyt requirements imposedE;by�the Land: Use Appr-'ovals :as to=,deuelopmenta•and constr-uction>,of the Commercial's Pro* eq t, and /'or ;Marina-, which are beyond Tenant's- cont I ands. a 3 L ; �U 3r1 4 JMF21g=1 8/�l'3/85 '11,yel I 'e' 1 ir• ° 7 d' a d r p tilt h ++- j. r ..:T r^ ,., �� 4 �+. 's..• ' A r ii ,1 ��� C..f ?� g"`,r ^oi..;�V�Bj IN 9- _ - cx r ? „ responsibilify :hereunder' and with -in Landlor& S—control --and-, responsib'il lty,, including:.without"` 'imitation, the .granting. -or" dedication of any permanent, landscaping', open,space=;" ,or scenic, easements including but riots li`mi;ted to the. granting. of any. an ` all open space -easements over the, Marina. To tle'extent any.such= requirements are a,condit on of development,and construction o,f f the Commercial Pro,jedt, Landlord ;will save :and, hold,-Jenant harmless and indemnify Tenant from and;,agai`nst any' consequences, Y En to development -and ;construction,;of the%;Commer;cial'Pro�ee.t r, resulting•from'Landlord's failure or delay to comply5wit h such remeiitsm requi ar a Upon completion of the Marina -by Landlord, -or Tenant, e +� e �Landlord shall grant an easement and othersapplicablel t. r encumbrances against the Marina in favor of Tenant 4. T y successors and assigns that. Landlord or; itsknominee wil ;acontnue'k+ _ tom operate the .Marina >for boatiing purposes for theTerm`:of this Lease Said easement',, shalTh.; be' in: the form and' substance' attached 4. tiX hereto asr'-Exhib"it "D"`, and incorporated' .here nk as if set "forth fulls: ..Landlord: shall also grant -to Tenant an ea .ement ,to use .*any• -t K portion o'f.the parkin•q. area, lrocated `onthe Marina, area.,,in, theN. L form and `substance atfachedheretoP as Ezhi+bit "E" Viand p k "' j. X32 . '� � •- .. r ' ? � , a r, S � � 'l: � a�`� -jz f � .�� r "Frz �, .... '�� bo° µ t;� ra � "1�-"° incor,porated her -.cin 1 .The aitiesY'shall:rmaintain +ands rovi'de h' ,3 'u -,.t 4 ''� V , u �'r �; � � F � ,�: � r � y � i s r .. P ':, ,` �? h ;• 4 � a $ P� _ n � sy 4 � ; : v tr�� ,�r � •, r $ � F - � r �• i` .'?ice ar ,� � i t+f. r r��€�" +},,�� f?'r"�' ��tt�ght'ing dto'` the,�mutua'1" arkn a'reain the manner��de"scrrbed�in: ; ays�y F P T: •r i.V p, `m ? 'i.. � m' Es � p x �:?, y -v,, _� � 'fi '..�".5 n .: a ate. Sts �.. �' nN x- .ca..'li'#�. ,ra• -'y'r a� n 3. `' s d 'i v r.• „u� a.,.t1-4 o.,` �*Fa� `F : its tiest_:efforts to rent berth's t'o theme` eneral I° K t � �.�;'� � � � S-. ` u! , �� ,� i '. �; f , � ,� '�• '�'��,✓ x; _.' sr a- , j a �,,... � �, 5'�� •` x � .t'.ac �, r a:� �( J � ' � � 3 Ly. fairr'marketkrate's which rates shall be comparablento+those , fi charged by;'similar fac'i'liti+es in 'the San Fr.anciscon.:Bay t 'd' 'Prior tocommencement• •o£ operation ,of , the. Marina , r, ord agrees;to offer to,'LTenant the opportunity' tomanage the a y:r k 14"T \ •4 4 ti T ' .•'L .fj ✓ i. � Je-. ? '�U i 4, y 1 1 y r°,. 32 fru# r1 x„ JMF21_gl� 8�+1385 tr y:� ";P 1•� i c al � , �t f � ,/�, Mt j ` �r'tC w:qa yam['. "��� P �` y, ;.. � ' 9.�Kr } ������ �'' r �o c v� ,> rt - �. t t t Y-�� 3 -"¢ -• 3 a t"°y�r a .T ' a. W 4 r r; Marina .upon.'terms and"condi;tions'to be agreed upon by the parties.. In the event Ten'ant'and.'Landlordcannot agree''., then Landlord may solicit offers from third pa'rtes.to,manage Marina operations,, provided, however,. if Landlord shall,receve an offer ;,. from a third party to manage, the Marina., Landlord shall first give .Tenant a right of- f ri.st ref-tsah., to. 'operate .the Mar- na, on,the'. ortl) in;, ;sand third: party -offer` - ' same 'terms: and conditions :set, • In ;,the event TenJant ,'does.:not' 'elect to :exercise" saidr ri`ght of; first refusal wi`thin,•twenty. (20)I ;calend"ar days, �L`-andlord' may ' i cepd pa'rtyk'o`f.'fer but, only=,upon. ;tYi'e''''same' terms and•;. ` . t� k_ w conditions - asl were previously d`isclgsed!to:'Tenant.. Inspection -' During then courae of thet 1 , construction and't completionf'ofi[ the Improvements, L'andlord,, at its.aT ;, ti so- le4,expen'se,^ may, enter •upon andsins" thez-Leased Premises for ,e,r c the.puipos'e of see ng° that 'the wo k is: performed in a• workmanlike manner. 'Tenant .shall. keep at the; site all: plans;; and, :f spec ficat'ions� relating; to such -construction„ and, Tenant- shal-1. furnish Landlord;witfr,copies upon written request:„at La'ndlord:'s v . expense,: 3f ;dur'ing. ouch' gonstruction,, Landlord reasonab3y °; deiiermines that 'such"construction•,is not proceeding in accordance 1 t. with3' the ,provisi?ons' hereof and shall give written notice to the } " n rrE Temant specifying>indetaidl the particular deficiency,' Tenantrµ ' er, A” a i �'*- r shall thereupona4;take such steps a`s.are necessary�Eto correct said 3 ft'�el `F .ti`s S a y . a`'. . n t ; i'• }a��i rs G -f � a.....q 1f '.'�2 ?" ZC'�'f3`r a� i• },. a u » x t .< 'ix rt f. L �,,•;� �� � + F�� def c�"ency.;� provided ahowever,}�thatv�f 'Tenant -,-shall contend=,that;A A;T s �M.K*a i'�'�'a'F M "^.c ''•. r sb• 4 t f.' S v:<` �n 9 Sr ,nom pw -'':° �cz LanJdlordi`s'a'cting, unreasonably yin mak ngi anyrsuch,-determination;, 2 '; "l Y yPl¢�•C� "� F� "V tl4 j rbc Y s'. F9 'yi a T 4 �{r: L Wv. :y K �.�f't t! ;ate' S ( I•L ,y f �r i'� f f Y f fi Y: °• . - - r� "Yi r.•�' +� V ithe�rdispute shat=lobe submittedt to sarbitrati7on.�as provideiV3 n s f ' -„ `"�3d/'' c v c'w i +h -u S, Y„ *;a' sv.' n4 'kx�' C+ t .Y' ate.• �'^ j [ 3ecti`on 23:3, bellow Any elay>din construction resulting from, 's r"yr� r -.•"^ '{:. t _ .r r [ �, p• u such arbitration shall be "deemed: •,an Unawoidab`le Delay. under Paragraph ,9 1�4;:.'below c k`". A `ts £e( can 21R2r r fl + 3:3' t JMF21'gld $fixrl+3�85Tp: -, Id e "34 e. �l.. •} hi'4, i "L 'ails °� 3 D ix i 3 M . b !'"_.L' u. 7' `9 v4 " - �'Ala 3 3.1fse ri a ry Jo - I r � k - ri p the Improv.ements-' 9'.1.2 .Completion:. Upon com letion of Tenant. will obtain and deriver to Landlord photocopies.-o'f `proper,`_ certificates of occupancyand-isuch,':oiher cer:tififcates as'; customarily, are, obtained .from'tle'Governing; Mithorities. At times;, ,the' Leased 'Premises shall, 'be free from ,any, .and,al'l mechanics' liens against T,enant's interest. in the Leased, Prem=ses bor'the same shall be eliminated 'in the manner provided°in'. y r `;. Article XXI, below) connected Withthe. construction othe a p.,mpr nits (other than t e lren..of' the Construction Loan) Iove r, `i 9, 13 Terminat 6n or Abandonment =If tth s Leasekis•` �� ..' at terminated: by reason- 6.f.an. Event -'of D'e,fault Ilas ie' scribed1 in a y� k Artscle 20, l„ below) or the election by,lTenant to terminate this +y J t provided in '!Section 9 1 1", Tenant shall delivers to =%� z� �K �' : �" Landlord all engineering and environmental s;tudies,; souls and,, ` o g 4 Y. eol'o is 'curve s'. `and :plans and specifications ,in+ Tenant''s r " possession: - aay; Aa -such terms's used t 9 14 able Del •q thr'oughout,thi.s,,Lease, "Unavoidable Dehay" shall mean delays due _ u: to s,trxkesy, °lockouts;' riots,; acts, of$ God, unusual or unreasonable FJS weather conditions, act or delay to act, on the part lo`f any, public M1 Sor-governmental•:entiy,ty (other than Landlord) "enactment,'of s. c 1 conf-lictin_g state or.,federal laws; or regulations, 'inability to' ` f SY r 'i z a g a P L obtain labor or tmater`ialsr lith a.tionr s }enemyjaacti a on� �g t 4t i� �.R � r;, i Y+• � Y .�,r ; �,���� {r "'• L ; - ;: .. •",: M1•.e ,- 4. z..n.. •.�'fC ..KE ,.:. �.t- C -o. •+l` x r ,i1 - earthquakes,Ycivil commotion, war, unavoidable casualty„A a � �'St. •�� ¢'^�?'. f! .,C r ��r r Tv,.. '� '�r5. - � x+� c ,t`� Y ''e a„ s�' j. .� tan 5 �- i�” �•, -� � s ;M a�'• r;, 7� h r -n r t�'V' "� emic. r t ,�� V. r . - • N hep d_'�, _quarantines restriction, �inab11, l -it ylof Tenantrt•oobtain, k 4- 4 ''rte " p k iF :t- u•+r .; k yd• . i"` 'y.,.a�•. -'? -v > r f -x� �, i •n 4d �. . r. Y;yf� � <, �s�^•4��� {p � r _ -�'n �' --t .:: ,. 3 � .: � � .,.,.i^ , • > •µ �ti i t� tconstructxona fxnancin=g duel to klender delay or �defau+l"t;i shortages a x r >' h Y 't . air .`t' i-` � 5. , � e •� tf "Gt' T S ,�: ... .a•.t ,,.r` l?v{'tnT '. :+. 7"°ls K- f a �,. �''•.� l° a a•-'. r in ey supply; in mogovernmental regulations or similar cause ,or V + �'; aother causes beyond 'the reasonablehcontrol, of the party claiFmingt a is ; , � an • extension of, _time to er' form : ", rovidedry " h`owev ,.� . Y P uva raF x ro i,a 1• a -s 7 JMF213g1 8/r13/85� ,�v .pfi�.t d S t t Y 1 - •, i ;f1 °'; a5 t N4 '4 2S i ,. �f' r ',€ r •. F4 k-!% ,,. ,aa n 'S.y - h �,�, .L h„ ! n 2 rf A z• y '7 A -.. 9 t „ •. -A f i k a - f it .t f;. s,. -.fie -.e ° ' )i- a �♦ r Y i n g Syr t r r ;, sw :.• ^ t to 0� tr i 9 IAS G i t t R. A financial inability of Tenant to perform due to insolvency or. .j luck of credi,tworth•iness shall not be Unavoidable Delay., ARTICLE- X } Chang6s,_Nlterations and New,, Construction 1k.;1 Rigfi;t . to Change:,, .Al,ter;. or Construct.. Tenant shall have the' `right 'at any- :time. or.'times after completion :of the 3 construction of the ::Improv.ements;,descr' bed- in Article :IXatiov,e, k h, ' to ,make,. at its sole i,eost and ex ense' p , changes, al':terat_ons or ' r K additions ,in, oto or Iof the,:Improvement's, sub"ject;,'- to the foll:owinge zz (a) Every structural change"or alteration and x �:y every, change, +alteration, or addit=ion involving in; the aggregate; 7 .'� T.K• �Y ,d`: ty $.. f i. �t 4 __'' '$A'> _�, 4 qi..2 rt S, _� ,°fan a timated Dost ofr'more than $1`00;000 (exc'lusiue of stefiant r s F Chan es made in ::connection with Subleases3zand not `involu.ng a - .''. structural e change or- altra;tion), ahall.:met e` all r_,equirements ;of , ,. =` new.'corfstruct-ion under Article'hX; ab`ove'; fiery _alteration or addition shall:i , (b)i." Any, chan when_r com 1"eted 'be o€' such:a ch ''r . ••Yr, .., '> � ,.. aracte as no;t. to materfa°lly r 4. reduce the value; and: usefulness ,of' the,"Commerc 'al" Pro7ec:t, ;for: the uses,.perm, tted hereunder Y eSlow its value and usefixihess- immedi°ately'before such Xchange+ or alteration , z ` ` r (c)� Any+ change, alliteration or addition=shall be,� ' x y'Z�4 4 E.r`a e fii �'',tre ai!c 3�};•r'rat`" ^1.>,. -?r �t .3 s m i° r I , a -g:, ti._ . a .,.;d a Yi - u.. s w '...,.,oS a •",..r x " - ' .�.: r �Q.; `made prom :tl Fand inz,a o,oci�and workman=1�'ike? manner;'and n,,w' - °es��K xv Jaz PAY r t�I x aaau yi i3 ';hIE '.µ.'r�' e ti- a� .:: a { ' 'i �!:i y :... n.,v. ...SYa.S.-i' (�a accordance- with- alla licable ermits� °and authorizations and; gr '� - ,�' 'fit. PP x P `.'st ,r •7f a v br• a y.+'. G 2 .�+�t,r- t�.. tea,. t 4x P �'it -..t5i b c .s� h t '-i t -'i •, q. :11+"' ;- ,. i%ar� ?h37 M ' '4, s .,}.".at a., - _' 1.. sy: �' ,r,.Y^� -s' a e.<4-..._ x' '' Na tl . , building Land izori-ing, laws and with a+1lf�o - er;governing regulat�ons� 4 . ,fir J in ty ;y�'-V21 �� ....Y .� dt- +2+ a- -Jct .£.d' •it:� y3 - •,F , ;tr ni+ y.., ti - � fit c 3, ti. �', 9� > rtw - •�r ''ti'. r '� t_ �­V:., � x << j � and t 'requiremenst p y 0 ' z a �s x;X: r 4 t r During the period of construction, of anyts t '„(d) 1 °�� r f G T �+ .: t y �aL y �. change, alterationp or ,addition or of any demolition or new �.: construction, Tenant .;shalII.>inainit or cause =to bei maintained .-(i) a comprehehsive:general 1>ability;andproperty damage policgias sSr 1fi. ..." .ix'r; on t "� ' a - 7 ti'F�^l^" Y3 '.4 sS (- �3:s JMF2l l S�L3�85 , 4 r",r: .. - �' r m-:. tis a :} . ✓ f '`i?, 1„y " i . rg :# .. 444 ip J, & 1 i R'r 1i' , �. y nrS S '"Y J� r p r 'i1 ,.• 4 4£fe a�� Sir }1 t� C'^ �- ,Y 3 ar i 3•-a. t:.. �a Vn k C , � '� �� r .y o '• { - m F: � t r k �� 4 r( .;t n, ��o ll � � V �r� - ; o , .;Provided" for, in subparagraRh (a) .Section; 11ion ?.-2'il, b.je low,for the-. limits specified thereundek-, -f or !sai&,new qonstructiori, T.), :ax -1 fir'e insurance policy .proyided for ;in Article, XI', whidh, policy. -insure any change, 'a�it&katl6n.* or, - addition. it i 0'n or y sha.1-1- ails -o' --i new -construction-, -under, a,. broad --"form, alL risks 'bu, il4rs' risk' - completed; value- form .or equdva-lenE': .thereof,; sand ';(,i''ii), woiker-'§ 7 Yl tion i --- - compensa, covering vqrinq al-P.-p�erson&:empl,­o.y.e d int - tra within sLt-atd�t 6 -ion' with he work rk, w S, P 10 �Rlgh, '6'lbem6ll"sli,-,and: Replace At., any ;timet times 6 -e­a-f,ter,_th6., c6fidfience dntf- T`th m during the term,, of 'this 'L6a:,s q e, construction of Imp;�qvemenso..n... th U' d Premises,Tenantnant shi 111' % :F have h e, r, i h,f, to demolish t and ie a c 6; 6r` -a "t "t �T 7 ny-por -f(5fi-.'6f" 4- ement`s.Aoii�`the m-�exis g.,:.,I,. 'Le giid Ei V�T_ mises 71a enamt 4 7, R ' w ' expense 'int accordance withthe provisions *,­ "f ;Ithd�s�Para-g If Tenant`,desires to demolish alyl or any ' -f ., portion - 0, h'a -1, give I a s afii e'w­ Te mprqvement andre � pl han w "Notl e; of l 'S. r i ttEi r� T�Oti:ce�,'o ` such in en, ion C E, .1 emolit6fi-and'-fe-c &n s�t r'Uctlom shallr conformity it n k 1 '-'to 'suc . h Improvements shad i ,L,e.a s eTiTenant,, T t eL. F provided, ''however,the-'Ln,ew,,. mprov em'ts shall lb of su c - fi type;; f; size,t:o-: �p`rbv,-Bd­_e - esign', rid? �ijjjal'ifyw o con struct!ion�so�, a s�-, -e, a'fair �and,reasonable 'econom o ,u,tl,i-�'zat bii,6f-,'rt'hecL'6'aied--,!P"iemi-s'es lons-Pre�ce enVVA sQa.conditdonpred6den� 1k s4 ionu;6 mprovem V M,t&`t e,;fdbmb-lxt_­'l'­' n g'' -'I eA' 5 — t�j IN W_ 0 `�&Wl',­%44 �si As, T f -P idence �thrat each';. _Ft, "t, f � l Aekigtln "subtenant of a portion or',por.tionsi:o eth" knp m ; IPP -l, e aemollsned,� na's,:Dno,�,zc,ia,-im,,or,,,ri'as,�re an claims �rbpo'sed`-t:6�'& S s a 1of it '.such have against Landlord -�resu, t, oi such,.' - 21'- _Y, JMT _S21 g'14:�8/131/85 Bi y 71 `2T released pr go F 4 zt % f Cc - 1 _ d'emoliti'on and' Tenant, hereby agrees, ao defend and hold Landlord harmiess from, any such claims,.: (b) After havingi''commenced demolition. of the existing Improvements,.cont'inue such' demolition to completion witfi due vd'il'igence, sub.3ectc to Unavoidable Delays After completioinf of such:, demolition, Tenant '.shall .proceed•,wi;th, due rdil;;gence--withthea`reeonstr;uction of the Improvements and, substantially complete the same.,within.two•years after,..-; y commencement of` demolition ;'(as,'extended by Tinauoidabib,;Delaysl) ... i - p, -- �. O -:) As, .u'sed herein, ,the term .substantiaT' 'completion „ shall `not - _ include sub tenant improvements IP J , t o e r " N N 4 t' u 4e ARTICLE XI r nsllranCe q. 11 1 Casualty Insurance Tenant,„at their sole - expense,';'shall keep the Improvements i'f any, insured at. all times fo±',;the, b befit ;;of'`Landlord' and -Tenant' as -'named insureds,, against loss or:`.damage by fire°and other risks included''-in=the %broad%aform' of, extended coverage _and`'earthquake coverage;~: including .'but 'not•limr•ted to�vandalism:and malicious mischief;, in r an amount not lgess than, -190$ of the then' full', `replacement' cost. "of a yf the Improvementsy(exclusive-"of the costsiof excavations, r `T, ,>F,4 e' ,y "C>• •t• b t- yf, tr r foundations,, and footng4s,below*<the lowest+basement floor) ~.The awl, n h � i y iw.-+c V `• - sem t -Y6 . t .. = 1T;.�, ?' . ?C�i.•s�> t' 6rtVr s* 'V�f.t'i '_ r..,i�.i., vs x fii. y,.9 ,q`deduction =".•for pan^Toss`~:esu°Ft n"'.fr`om>'-aneath uak`e' sha] 1,_;not= c� t _ Y g, q a ? o t µ y s. m r x E t r GS:3.� \aa°' ''gyp}�a s��k .:.r �iar,e a� M'.1 exceed- the',�standard�fdeduct2:b, es`.tabl5sshed by the,=;Pacif:ica Ft re z� ; . _„ �dt • �'a'�':€+"•.t§`3F+e; .,_ - -n°C .,¢ t -' rV r-.. •,�• I f .,, *s5 ' y: ' �' w, •`; � } y.,', ".'sY :,'� } . lh ':•r-� 3� , a '•a'�, K m€ '+° -i ' r `�r'c. , f r•• V' ;N- `R -i Bureau for earthqua,ke�4 coverage _, The'poli.cxe`sR,of insurance a i is e �, i s ., - a S ,. z tip* } ,� 't 1 ez carried i=n Jaccordance -with this Section, 11 1',shalT;contain tithe, " r ,a �K�. �rt iis' S r, 'itrt . ?" y ° ,�� 2 w ll a'ie y'S '•3'4r E sa Y -z y tVr E •x , t �ijQ.-a n , • �� r -' n7 s t :-�' � rfi c •„ -� r ...s S T 1 }t 4kot 11 f 1 Rephacement Cost Endorsement Such ;full replacement cost sha+11 n. x s •,ori v td:- :3 s � '� 4r � •'o ., r . _ . � -ti >'� �r ,'6 V :; ,c " k� =abe determined (1')" at any "time at Tenant's discretion' and`: ('2) from °'•� _ _ 4 F�` 1. 7 Y.•.., 5'�.N : �� - r time: toy time but not �,moret, frequently than once in: anys 2.4 i}t s consecutive calendar months:`(except:in::the event of,'substant:�a';l: y us r.ys..•^ V f 4 i r.� "S:.s 1 �': to o `�; ur (= *�"'� �� "��t�� � y^ �` i- - i: e t n,, sTL d �n.. U N _} ,U , 2♦ y-1 f t. w fait” •.4f .c'+i Y'+* _ 1 k IV - r 4 r r w',r�'y r,W. '4'q A �� s r,. � ,� Y ? a - ,'r ;� t 3 7 1 „} i k•, ,.. .... g �,� F ., r � � � ,, r •! .S• � � V �.. i k ,.t , 3 � r ,•, > � r 1 .r fV ,. � � } r ° , " ~r,a °�"� 3 F 6 of :`•� r ., g - - �E C� ' a a i a 1� � T 't � � ,J 1, � � ,1 f S �' z � r � l'/ 1 6`ti V'• C i ` . ,ire � '8 tx i - . ;"� :� �+; . � 5 t' -.r •..t �. `., � L changev, alterations or ad&itioffs, to . the ,I'mprovements)':` A COPY. of. ,any such' .'d6terinln&tibn: shall' be -sent -to 'Landlord updn- te�cei thereof by Tenant.. Insurance. - ��2 Liab�ifitcl,y.:an'thiar ranbO.' .. Tenant,at their. Other SU expense•, :bu't for th-e;.4nutual benef it'of: tandl'crd and Tenant as ' a 1 named ds, sh I m n n,: Ca) `comprehensive ' -generalIiabil'ityInsu'r; anceon; m. ury,�'i,.nc,ili�Lditi-g�.'�,�,�',,..m:,,", an..,9ccurr !��aga-lmst,,�dllalfiis' f 6 ipdrpopal I 2� �sis, • lffl�tdtlon bodily -,. without :f- I injury;, de-ath, or property dam a-'gej occur,ring.,,x; -4bo"U" :t.'the,Leased-,'"Premxs6s,,,,or-.' th6, -'igidewa 1 ks e, adjoining --:streets. Improvements an orf,,; th j rr Fry and passageways;,:to:,.4 -limits o,f-.,-not ,l 1- �W respect t. .,,Pe -,r linju-ry--or,i t rmore pe E;or , i} todamage `to hb, Re&l,. Pr' r -T! shall aTs 6 ope -ty- "Such insurance ,v ---,lincludeicoverage bmerageagainst, liability ja injury,biriEY l.ly or r,property damage arising outs of 'tfie`lus& by-Tnzn o 'any person ofn any:.automobile lnthe.'conductbf-zhyoper4tionscaLled,fprlander Lease;,and 6n! ' & all (b) !drl- empibye*es 0 Tenant.. 11 3 tPolicres All policiFes of insurance provided forte °: ,, u v` r p = ; a,,� yin Articles IX,' GX ,and ;XI hereof shall �,be �.issied� by, insurersx whriche � � � - u�i e eL er,.rating A, 4 numerdc& "�r- a:tihg,�,,o�fi'"X-I.I,, D_-'bettdr,.,--.-� A%;ce T, pehereof mfur uant,��to�,th'e` rii'� �'e il 3�� -Y bearing a ,notla:fibn evi encing, tfie-pAyment5 o premium delivered e'd,Tenant to -Suc`h .p d ,�bbtalnaVld contain 7 extents]D, u r e r, an agrelemen�.,. the ins P. -01 - N P"I 5 A WJA K ,I j�. G2,V:,. Vz % Z. lit, policy `shall riot be cancelled w^.thout at least 3'D days, prior iaraten notice . fo`. Landlord., it 14`• 'Leas'6hold°+Mortgages=.:. All,, policies, of insurance regi_ired;'to be furn`i'_shed by, Tenantpur uanf' to 'this Article. XZ: . r. may' have attached •thereto,jthe Lender"s ,Lossr'''Payable Endorsement (F.orm 43_BF,U NS),;I or, ,its equivalent.; for. the; benefit of any r P L`easehold:'Mortgage e. Arbi,trationry If,;,,; at any time during the. ter -m =`P ereof, Landlord ,shall request I{that the amount of" insurance p.' y prov,1,67 y Tenant, as` requ red,Obyruthe ;provisions' of this Lease be increased', the dispute shall b'e submitted >to arbitration' ' 3 P proceedincj's in `a'ccordance`�wi{th iAr'ticle :234 3 , ''below:✓ a 11 6 Unearned Premiums x Upon they.expiration or s .� earlier termination, of `this Lease,; unearned premiums -;upon any of ; such;'insurance policies which are transferred to -Landlord shall } be apport 'oned'.0 Blanket Pol"ici�es . An : 'insurance. re uirement . . provided for ,in this{ ease+&4uayx tie sat shed by a policy= or= t ' ` F `4 N `-' M • i u p olic' es o'f• blanket insurance ana''may,- be continued in such 'forrE, - ; �'' provided, `however, that the amount of the total. -insurance iyi allocated for"t he-Pr operty shall' be such:fi as to furn sh `protect on 1-��^ � �� x{»(+ II Fri+ 'u� R:� �� ti .srp •, F . � k� .' -,��� a _ _ :� 4�ro .'r e+� o Y i ��:R �4.: �' ,' �� k >p the;�,e,quivalent o.- separate polRi�cies in ;the amounts herein . .V..$'Yd�:$ ryUj UEl~r.ed'• z rev01 a� c `�_°� .. .e g' .: r'x+ _• R.+�—'c. RS" ..rwq •w, 'S„L b its yrs}d tri s + a Ya .°A -' ir. .r t� :x .v, ti - i. r r -{ .iz'+ ? a �r w3� :get p�G H l l 8tS Unobta'inablrer Insurance6;I f' anyr ofr�the insurance'. ya7,r Yn Arlyt,- YA_"} 'rxk.' u-. 5 t`- - v a� `t Kr Yr kfr;.�7x 'r :r.,••.�"'s �45 ��f'. t a` ,!'• a - u€ " ` , 7 ; S $ - rv: ,p ate' 7 R - . r. . y°.k}a•,5. a l tr, 'r'... "4s �� ,,pro o -, r �; rovided�.for in'��this Article should af.ter� dvl'igent,�effor:t by�a � � K �'-.„'"r Tenant be.,'unobtafnable thrcu h+ no act "or omv'ssion'onT. the part`Y of "• y, g \s-, •i", ib £ , 4 r W # f `Tenant, and if ^Tenant'. shall.' in such ch, se obta•inx the maximum r , IA �, av e insur-:ance obtainable and promptly giue.notice; to handl"ord of the ' F . extent of Tenant='s inabi`lit''�to -obtain :an'�!.insurance re wired °to Y Y , q Se,ma'intarned he"reurid'er; then the:'faiTure of+','Tenant to procure; f. d .YarrY- r� 4 t?, k7 X39 i �2 Z c t,JMFx21CJ1 � �f1 r 5W Y �''A' �� 4 ^; ,t... p 1Y - Y '� f; V I 3 t11 'I }iit f 1 J d Pr ,F T 4y 0 7;1 t A•.'+s _ {.-., s lr, f ul`R s "$M-�� �'ir +;,; r Z a t '1 G Y5 pt'' 01; y t �,' ti ff t e 3, ¢u r 41 �'3.1 r�..' _ r.,. .. '� _ . `-_ . . _: NM1 _.. � ... to , ° t'4' •i''.., . ..-+ ��.., - is - Unobtainzib e, �a rel .. . � s af bres-aid' shall- ana. maintain, siIch ij�sjjfAnc'6 a s 'be: excused. 11 :,9 Waiver df 'Subro-gation. Each of` the', partie S;. 'her iric eto� waives any,and. aTi rights f recovering against the bt " her.,,' or' againsa the &ffide'kg,,` em to t_;��'��an �--xepresent t-ives of qy.iees agf�p, ch7'-,bthek-party, for. ich.walving, party' or,_.--,. loss -.,of,.'-.' or.�dama -0, their Ir or� 'a:, s, or tli6 "Pr6 r.-, their or x 1:,� arising' -from, an a its ont -o �g under any E s I , I - 4, Y� insur4nce,�',PqVi-jc es­reddis­re&'to . r ic e, or t 9F. Landlord .sha-l. in writ' signed Y, t:s o' request c lng h� d aut, orize officer ice'r.' of Tenant, containing �7a�.,&Ft`dlkil`6 'h g and, i i, nl_,'�force on :.' t h e;R I"" i;�sura:nc'e)pdl61,69��h&n­o�L�stahcii, eaI V A! r�gL insurance i al,n q e roperty,,-'an ..stlat fcomplies � V:Ltha� the ,�,,!, requirements nz. -ARTICL ka-r"­­�, JE1 'Destruction s De trut ion,.andAlestoratf�on, 12 r, Pe`st6ka.tibfi-.,, In, e�-. o"o Pg r estruction­p 0- 'o m rovement -II'th6reof-, by fire or , -'-.dth6r 6au�se the I F� OY, ej�arjt, At� Tenant,. s _sc ether or. 'not the. 'icnsurdnce, whether T 3i,.i' cost, ds, shall be silft i�ci'ent, and: d: d r,r- i e�.v o -f the' a,moun't�,!of-:1t' wi any , d' h 1,, -th' due. d Igence restore, ,,:re repaira'or re V, per .1 cause F,(�d-, a in c by thEs ertif n Aibn:o d same as Y��4s:!Pqs,sl A immediately' { d,�kp YC , ­'apriorj�to': .su6ht-,damdg:e.,bkdestruction* ori -a n g 4 s t,; or N- 41 SSS .a=; +alterations as ,may bemade ataenant's .election con -o rmi!ty*-;- III— ANP ""4 'S' App to ltl�ej I e �, z paymentol`thecbstofthel,&f6i d rp srp,tion,�:rep&i-rs or, re u ii Id i ng.',, o'f; "de &kitlbn and temporary W b includih(� the cost m P d- for - the� �)r'd t d -dt � f", P r o' t re airs an i�ow o- i n perj�p,pen ng. the complet" A 0 JMF2iYgl S ad'fustment or -',collection of sucks loss) . shall'beall ocated.and, distributed as tollows: (a)' . Landlord. shall ',be entitled.. to, receive and retain. -such po'rt'ion thereof •.as .tke, number of : "full Lea "se years. r' immediately preceding;'the'Lease ,,.yea_riIn which, such'. damage or, destruction occurs bears to. the total aggregate number of ye741 ar-s included.. n the�:,term;, and07. ,Tenant;shall..be entitled to:receive and "__retain,.'- 'the, entire remalniiigi balance of -any: such' insurance proceeds,>`'less,•;.ho'we'v.er, the amount of. any indebtedness"'then i u - Y owing+ by ;Tenan" sLease: ; r and the amounts,; if any �requlredto be; paid in order to perform ��•` a{5 , ,s t m {.k p d � tl ,-Y.-r { r E + f•,; + f, ••` r e -r andrdischarge tthe obligations of Tenant,,hereuri er arising prior m� a r~ , - x � � ` L t a T � �' �i � +r {, r C � , .s. __ '�+ � .D e r � �. r n � �; h ;� � i' : 4•s sucermina, ionit - ;; i `t •`r ARTICLE_"XIII Y Repairs and..Maintenance;,, Inspection . 13 1: - General, Tenant'`�covenants� -and agrees, .,throu-ghout the.;term ;;hereo'f,,, to; tk, e andemaintair� -thettl ased'Premises' lncludinga',withoutlimitation, the, sidewalks,'` -roadways,;: parking: areas! in` "the ,Leased Premises_,, fences, rsewers; and drains,. ad.`to a keep'theat same in good` condltlon;� and'vshall promptly make „all a necessary' repaJr,s to `keeps the Real Property In safe F and r N t y x �' �,�,.. 'tw:. i .,.. �. �.5;-:_ r, w,.d� fr .a> ;. C, $. �"; .. .'' _ ,.v`.r .Al..'_ _. ,. _ti',G 'fie i u•.,.' .;_�-'J "#. +. _. _ a >.,. - �' Y� a � ° ¢1 t; rf `x},, ,.t, �� � t .n , ,y ,a t � ° "d dl G'� y '� F.,� �n r zL '^ m " ✓ a� ." �' N - e t a s,a L. pit •{ '� �. �. +(-ti= `psi � k Reconstruction, Tenant' shalYkeep,the�Le_ asedPremises inta6clean � conditlon{� Tenant>Fshall-�havea�no� obllgatlon fto�,perform anyy �. �r< < � r���� � s,° ���'- i"a-1 �E��af ��' 9�t.-�F 1 Zx., ,t P -�i '"� X �, k��t�S hy, +y yR y��s.e x` � i� �'7 ti%'S +'daAaS"v-f y' of •P C R4;9 't• F ,r -1,;6L 9't C�'�'''^` J " z `i.'� >'? i,,. ,xalay. e'l by ''(: 1 f T q .7r1 57.E -''- T• t�rrn t .. :i t.. 4 'Lid, a `L, _ .e •x 4�= �S' }. �' entity iso responsible. (therefor aT6nant•s wild?! -.permit gLandlord ,upon , r r - z'• zx `3 a '>• I } .t « .,-: - x 5 -.fs. 'tt t - ' ¢ :reasonable ;prior-enotice to� enter ,the Leased P -remises ate ? x _:.AS }� •7� �..3, J� - { `. � " s: during usual business: hours"for the purposes 'of �.. reasonable'4 ime in"s"pecting,.the, same Landlord = haL1 exercl;se°due, care.. to avoid P. M. f =• z( �'�� ¢ - it >Jk ,1+' , e3af + t ',� t.. �JMF/+8 5+ � h: S '�,'� tv z x • � f � I `riy y 4 _ Lw. -� 1 #:moi'` + . +lir Y `- b f yrs d .� ' J s � `,.x' �. -�. A 4 a - �, ^ ! +r i. � axx- kz� • � 4 e � p 6 � :..r } �'�'.. k -<,• � ati"9. �' ;� A` � rra E- t o q, 7 ,�•�' t1_4 h ;r 7., S5 of permanent: restoration; ,repair�sy replacements of. rebu' lding?• -. (:all o',,which are referred'. -,to as the "Restoration"'J When, the_; Restbrat on'tias<.,•been. fully-.comp.le.ted and, pa• d,.f:'or in -full,- any balance; .o f; the lnsurance;, money ;shall• be retained by, Tenant:._ 12.3 Endr,.,o'f Term Anything, contained: in this" Article to -the contrary hdtwi",thstanding�;: -if, at .any, time duffing -;they last five (5)°`years,x-of tfie, term,'of this Lease `r'- term (oany,extend'ed hereof) any part of 'Mie Improvements shalll ibe;subsrtantially „ damaged, or cdestoyed (asp defined `.below)% by f+ire or, others casualty r� • k or act of> Goa, 'and provided,- Tenant xs' not ins' de"fau-lt under i',ts :.. S obligations hereunder:; Tenant mayzat its option, ;terminate this v s Lease within six` a 1 ty (60)s Jdays after a determination of, the c,a j y, iib rf^�. �° � •X'; +s- a w� { F w 1 � � •, � , ;.. +H a, � 4 $ } exisetenc, `of said' r ght of 'termin`atlonj either through a` written r' u �stipulat'ion o"f� e,.pa"rties'Y"or through arbitration Tenants may " exercise itsr option'.to ter-minate`_,this 1Lease -under. 'this ;S;ecton ' a 12 3i by serving:^ upon^_Landlord•,a.t any,*,,rime within is'ai5d F6'0; day ~° .,, period a:: 3,0 day written .noticei`of Tena_It's <electon to s'o • term_inate;» without any Nabi=lity yon the part+`of Tenant•'to -v - Landlord. after the date of 'y termination;. Insurance. money; shah be appi_ied tov payment °o f' the cost, of such' demolition ;and removal,: ry -ForFthe"pu_rposes of tkiiskSection'12, 3 any, poArtionaovf *w Improvements which constitutes a :singlei` b u architectral 'un'it sha+11� ✓> � � '� � r* � s .3 a ,.4 f •'\ ' -i g. t• m q ,K t � �• -� z h. � ,�g�•€. v P .. 61 ax 1 ,F z c r-zlhe deemed .substantYally -damaged ;or destro ed if <the est ma�tedn �� t u" �w � s5�� v � r• 'g ���ti� �'"e �z r, �h... l�.�Ji #.•�i• +t �-. x,� c M •-. tcos,t, of>W restoringsuch unity is fiftyrtpercentor ,mores of ,the, ,_ x. �, �r p Ss.+f ay �'d r�k' w -r111 _ 72 7:r. - } kr ar. T.FFM w i �Tlsx•r� estsmatecik)iepl=acemenl cost:*of- "-'tf 'C- fit.= rk r s:, r w,., i- spa "*'�+ 's'4 „ '+1 ''- a `"f' •�•, .•zCsj- .-r ;r��,ce'v'k. 5'�}p {�d•i.Ar4� Rp; �$� +�•"�i'" � �'�- �c._{Js,, r Ingthe event this Leased shall beiterminated pursuantAto �' Oz '{ s _ t�!-�y 7" Y s'' Y,' '�J'`v' zK 1-'v�e,e ,,*� -`m" r rel•., tY.,r d a thea provas"dons sof thr's section, Tthe insurance proceeds recovered r on accountf of„such damage korr destructions (after deauctlng lall reas:onabl;e; expenses incurred Iby ;Tenant iri :connection wrth 0 , �: �� 6+3• inrs` +�,Y _ s JMF21'gl c8/B3;y85�r`% , fi } t � 4' s � P c , • :. F +, ' • t S,� t y�,y -�. a � -' �+' „�7 � � � - i J '��' k e �' � � er �•}ss��' e �i s „*. 4 by, .'as; a '� b. � -�, r"y -:+ �= LLY � 1_4��,^ ev � r.Tg ,�n€ ° v d �0'. lbh i} i i • °• - inconvenience, loss of business or other damage to Tenant or its,' „ Subtenants by reason of making such -repair's or the performance of any such work, or on account of bringing materials, tools or „ equipme'nt 'into or through the Property during the course thereof. 1.3.;2 Last Ten Years of Term:: During the last ten (10)'' years of.'t,he•Term hereof., ',Tenant shall maintain the Improvements or shall. cause the Improvements to be =ma-intained in good' condition and repair,. reasonable. and expected.wear and tear excepted. In the event_ that any subtenant of;'. Tenant.- allowed ,P,arag ra .h+'15.4,: be Tow,, has the prima-ry responsibility to. < under P maintain .any or 'a -1i of `the 'Improvements, Tenant may satisfy its- ' Para h = responsib`ilsfes= under. th-is4. P ra t .13. 2'.;b. assi nsn Tenants' } m : rights; :against said ,su_ btenant,; to; 'Landlord .. :ARTICLE XIV' ' Ut rl':ti e s' `v 14'rc1. Payment. From and after commencement of :of the, I'mprovement's bn the Leased Premises'„ Tenant agrees :to: pay, or. ,cause: to be paid, arid, to hold. Landlord: harmless; from, •all charges; which might be; °a 1"'sen against the Leased ' Premises. for wa� ter sewer a as elec•tr,icit , 1'i ht heat, r telephonexand any other utilsty,service,supplsed to Leased e s r Prem•ses:and trie Improvemen;tsilocated,€hereon Tenant shall riot s , �hi� be responsible for,paysngsthe cost ,of any uti'lstsesron the Leasedf; rv4kr Premses�zprs'or tuo the commencement yof ,construct son of the t , g, Improvemen`tsF and' 1 not Fbe responsible for the 'cost o;f any' a M ¢a WO t� ` utilitses ' on the Marsnar j Xfi Ft' t E `" " -;s 14 2' Tenant Pro"cerement Tenant- expre's ly``agrees, that E ' 4 Landlord ,is not; requs-red,'rtto +fur-n-ish��to'Tena'nt anygas; v x elec_trscit light power ` heat,,. asr conds'tionsng;,, ,or: -Any, other Y, ,'" r , '•: utifi' ties. Tenant shall procure- at. its cos,.t any and all .,� Vie; ,, _ , - - - . • _ : 4 JMF2;1,"g1 8/x;3/85 np+r. �r raa na-• x i... �r c r q ,rix x 1 ""r• . - `' d .. , c i} t `t,4'" , x necessary permits required for the installation,o;f uti-lity s: Systems:. ,'Landlord', <upon. 'request of Tenant';,; an 'at the expense off - Tenant,, w=ill join with Tenant in.,any application required for-, obtaining. 'or- continuing any of :the 'foregoing serv,i,ces'. ARTICLE, XV. ig'nme'n't, •- "Subletting Ass - _ 15: l In General: Sub;j'ec:t to ,the pro"v s"ions' of thi-s, n Article; 'Tenant, is; 'hereby granted; :the rigfi_,t to (4i) assignthis• t .., 'Lease,, -or any. and al -1 'Subdivided= Ground Lease -or Leases^ or Siong+le Leases ori se -s", (i-i;Y; sublet a'll,�or_,any",part of•the Leased ; Premises or. (i"ii) mortgage or, encumber this :-Lease or ;the. Real ,f Property pursuant to"the provisions of this Article XV i n 15 2, "consent,;Requiredvf An asst nment':of th%slLeaset >' wH r: shall be preceded ,by the wr'atten'•.consen't o�f'L`andlor& except_. as x'15 >p-rou,i"ded in. Se'c;fions 1'5 3,, 4 ;and, 15;:5, below Said 'p_"rior.,• ' wr=itten consent of Landlord:sha11- not,be'un'reasonably.,withheId,- ..but "Landlord_•.may 'consider such' f'actor,s_ as t_ he reputat oriR, ; Tinancial'., worth` and stability and' operaai'ng •ability of;. any, proposed Assignee;., ..Al'ong: ,w=ith 'any'request 'for.'consent, -Tenant shall deliver to. Landlord.,a.-true and accurate copy of the r & x n f� sublease or assignment instrument together with a statement from < f t the Tenant' of wkiether. or not the _ proposed a ee•:or suble see sign (` z - is a' f-Yliated with Tenant ' If.. L"andlord-- fa'ils` to ¢consent t6,,% or- to �k d ,sapprove: any proposed as'signmerit with -in twenty. (20), business: '. daysi.after�,writt`en notice from Tenant,_then Landlord shall be .3�,� y 1 °' deemed unconditionaTly°,and irrevocablyytoahave approved such {.n A c ,. .. • . � -„�, 7 ". A}{ nx r: � M1 ass gnment: After any`,: ass`ignment;:-of the ent rety,.of `thi"s Lease; ' s ., " or, o''f any ;Subdivided. Ground" ,.Lease or Single 'Lease,°the assignee - a . • -'';thereof shall.,tYen be deemed to be the;`Tenant hereunder,,°'. ; provided,. however, that'_,-no.such assignment or .t'r"dnsf6r.shal-L'b' JMF21•q-1 8/1`3/`85 n U�';' effective until,Landlord reviews:a copy -of ;such assignment cont'as'ning'a recordable agreement executed by the assignor- and, the assignee whereby `succi assignee agrees to be•bound-by each -and• a:I of the covenants and conditions herein contained on the part of Tenant and'any such assignment or'transfer shall be subject .to each and all of such covenants. and conditions.. Upon delivery of such•'an. agreement 'to Landlord, Te nant:'shaYl be, re.3 eyed<<''of.:any . and';;all obligations_under this -Lease or.any,;Subd vided,'6f6un&.` Lease or., Single.; Lease:, as ;the case iriay'•be., said assignment _ effecting •a complete.novation of pa•rt'ies. 15 ',3 Leasehold: Mor,tgages.:: The, provisions set. forth herein iii:.'this:"Arti'cle Xv . shall, •not .apply. to- a Constructions „ 43E Lende_r,,Permanent F.ee'Lender, or -any other LeasehaldiMortgagee The; ri hts and..obli ations,;of the s g g hand'lord.;,_Tenant, Construction "Lend"er„ P"e`rmaiierit Feej Lender, or..any ,o;ther:=L'easehoTd Mor gagee• , arw'set ;forth :in Article 'XUZII; •below- .15.4 elowc.1.5.4 . Subi"eases t- Notwithstanding, the provisions " hereof-, ":Tenant shall have °the right, ;at :any time during the term `hereof,, 'arid from"time' to.'time:; t0'sublet;all.or anyportion. of the: Property without ;prio-r, consent of •Landlord, ,prov ded`t that Land' -lord shall have no obligatiobrto accept the�attornment (as - y , „P :� S '. Y ,. } ... .� �`. .•' _ hY' Yy of - A • � �• _. y r . def inedin£Paragraph 1°6> 1, below)! of any subtenant except as�r>. 15 1 ed i thi ' f ti - :l ` i r "� � 5 Tenant Contro 1 o�Partnership Anyth ng•,in s A aa, dC s A'rtiel"e, XU ynotwiJ•thstandkng -Tenant may ,assign this Lease'without tit 'See ksnglor;• obtaining L'andlord's approvalk to ;general nor' 1•imited >�- partiaersh of ,which "both R=ichard"€rCoomb`s, and: Bore H O'Brien are eneral a"rtnes Ten g p ant`must deliver to La`ndlord'a copy of any, 'as"signment which%assignment document;timust be•'executed.-in i r,ecordabl'e form by the assignor, ,and` ;the a's,sigriee wherein such`` assignee :hasagreed; to keep' and.'per`form and "Se bound .b.y, each and, all of the covenant's and conditions of thi_s'L'ease,;and any :such assignment, shall be subjedt.:to each and all of said coven"ants -and .conditions. The berms of this, Paragraph 15;,5 shall also' appl:y'to the t-rans•fer of general' or :l'imited partner =interests ink Tenant .,or, any successor partnership'otherwise, allowable, under this P ra Parag 'h::15.5 ARTICLE XVI' Subtenancies. 16h 1 -4 ;.Subtenan;t' =Non Dist-urbaxi`ce-. Tenant is'. ;obligated t6l erect the Coinmer.cial Project': on the `,Lea`sed Premises dnd'. va•r. ous bdildings will •be, ;constructed•- on portions of .thee Real, Property• -for. the'' primary purpose of rental to subtenants°.,on ,terms to b'e def ermined` by. Tenant. in the., exercise .of Tenant' -s sole discretion,and without par,t`icipa;t'ion: by or the prior ,c.omsent.[of Landlord,.; Landlord Ye_"reby .;agrees thatp,: upon,:.the request `o"f r Tenant,.it will. ,execute and' deliver' to. -each subtenant in the :. Commercial Pro,j.e'ct' a•._non.. d-istdrbance agreement between Landlord - and such' Subtendht 'whereby 'Landlord'shall ,agree -to; - the _continued -. y n`an;t in the' •event of the early termination' r ten _pg o f; 'such. s,ubt'e of this Lease, ,upon- ouch form as m' ay be. agreed to by Landlord,,and Tenant, u on the_ execution and de -livery; by uch subtenan k p t of a. copy, thereof ,toi the Landlord, but 'yonly so long as (ti). Rent is, being paid; to Landhord ands •all ,othe_r.` obligations to the;..Landi'ord f are-being,sfully, satisfied uiid`er the terms hereof, Wand ("i"i) such '�r a:'i tenant attorns= t"o Landlord, i e ,;" agrees to recognize Landlord ash ¢ - , the 3lawful: holder of the lessor! s interest in this 'Leasel and agrees? to, pay rent 16 2A ..Subg±,6uhd'leases :: Tenant, may renter iknto portions of `the •;Leased 'Subgrouridleases of` Premise'sr with71 JMF21#1 8 713 --P 85% r t�• sub,tenAnt's for -the purposes of enabling such subtenants t'o construct their own.bu'ild_ings and improvements thereon, provided' that the baild'ing,s. and improvements. are consistent with the Land` Use Approvals;, or, tha:t the Tenant'or`Subgroundlessee secures appropriate amendments to the Land' Use Approvals which are not iricohsistent °with�.the..genera:L desc.ript:ion of the Commercial P. 't "Any such,'. ubgroundlease.' shall include provisions - s ibs:tant ally s'. milar,. to Paragraph 3..3, Articles IX. K, XI.. and X -TI hereof. ARTICLE -XVII . Surrender: and; Right' to -Remove. 1�7 1',- :Surrender, of Premises ,.' On .f, on of_ a he t, inati this. Lease or +:any exfension thereof, the Tmprovements:,,. Toget'h'er all of the: rights, ti,tyle and-, ante est .of Tenant as, 'sublessor;); in, the. then existing subleases,- shall- unconditionally be. ;and` become the: property •'of Landlord.,, gn the date of :'such ex ,rr'atiori or earlier termination., 'Tenant, shall surrender. to -Landlord; the. Leased:Premises and• the', Improvements; 4-n�-.•good, condit 'os and repair,; ;reasonable wear•-and"`,tear excepted,,; free and clear of all Ti'ens.'and encumbranee"s,other than those permitted. hereby or :otherwise screa, ed';' or, consented to Y y Landlord.` k :' I 2 `'Subtenants If ,thea subtenant under any.. sub shall notE=then be fins defaults under�'such, sublease, uch subleases a ;r - ;rshal`l� not +be barred, £erminated, cut offtior foreclosed on the' ,+. : =r early terminate`on�hereof,�providedthat such subtenant�shall'at �, jic.r � .,, `� � & . r x - -. ., u, s a - t o r ..._ a {• s1 rk -. x §i e � t .. E c c.'• �..; <the'request of }L'andlord, ,attorn a'o Land`lord,: or, if requested .:by k 17.3. Fixtures and PerSona'i :Property:.Any furniture,: ' furnishings, fixtures: or, equipment not const_ituting.part ofthe .. Property 'may be re'moved'. (:i) :by Tenant,- or: a. ,Subtenant, :but only at such times ,as .Tenant is not in, default:hereunder; or ,(ii) 'by=, a:ny subtenant, 'but only !at such ."times at or prior,. to the - • -:- .. termination of. it's` Sublease :•3's such subtenant -,Ls not in defaait ther.eunder'; provided;,, however,, that Tenant :shaft :with due diligence and without expense to. Landlord, cause any part 'of' the' Property,6amaged by-:s;uch'remova'l; to. 'be promptly repaired., �. 17.4 AbandonedPersonal Property... `Any ;and' ,All: . furnishing trade,lixtures busii ment and other nesse- u personal :'property 'of -,Tenant or any subtenant •which, sh il, rem'a'iii. r m. anon of this Lease may; at on .the Real Pro ert after the termin p y - ' the option of, 'Land be, 4eemed'•.to. P , be abandoned,`"•by Tenant -'and =: may;either. U be retained; by, Landlord as its property; or. ber'disposed` of •without liability .lq%d'uch ,';manner as the Landlord may' "see fit %, 17i5 Survival. ';The� provisions,bf; this Article jsha'11 • ,• - - - .' - survivethe -eXpira-Eidm or termi'nat ,q o, f, th'is' 1Sed'Se ARTICLE X'VII`j. 'Le&!i&h6ld Mortgages 18 1 ' ;Landlord No:t° to Encumber Landlrord ees ha; agr t t, x a n y rom;and Aafterjthe E£fect ve Date hereof and continuing t throughout! the ,term 'of this Lease;,.• La'ndlor&: ;will- no,, . ,execute ,any .: Mortgage ' 0 on itsF i n the .Real P.toperty, orr-any potion. -or ' _ ,interest f � portions thereof" Landlord unde'ratand's. that Tenant izntends t_ o. wr a,, L L" i c ¢'t;R- .• y 3� ..F � ,:� ' '- J v t .r: � ,,.` Ty, . � .x - 'funds; ;a ente Y rj into certain financing�earra'ngements toy obtain the ;, f which to develop. and construct ,trhe- Commercial'Pro�°ect Such r' S s ,-financing' ar-rangemenfs are: contemplated to i'nclud'e` one or, more s irite rm.'Construc'.tion' Loans and one or more; 'permanent, take-out , loans,' all,; of which may be secured by ,one or'"mor.e first `moratgages. .. ..- .� a 4'8 JMF21`gl 8/1;3/85 7. 16�U^- or first deeds of trust,. on- all or port -ions of Tenant's. leasehold in interest ... ' the Real Property;, Lf the Commercial Project is developed in'phases, then 'there will be multiple financing arra•ngemen.ts which may' but are.nof required to be based upon a 21 Subdivided Ground Lease or Single Lease -(as_ defined in the Ground Lease)` for.. the particular phase 'or phases. 1 18:2 `Interests Encumbered::. It is'- spec'if ica•l'ly •agreed: by+;liand-lord ,Find Tenant that~ Landlord is,, not +obligatedi to: subordinate'its:'rigkts and'ownership .interest in -the Leased Premisesor th`e, Real Property to, any, loan or loans., In any; event, 'however,,'Tenant sha"T1 have the right to encumber., -its `lea seho'ld'interest- in, the Real Property, by a Leasehold Mortgage. r = , wrthbut,';such 'subord`nation at .any time. and ,without' prior- wri,E;tent consent, of; Landlord,:. ' 18;x3' 'Rents Rent;`provided ,for, in. this Leaser to be_ paid by'"Tenant'to'tandlord.andc,all other ;sums due Landlord under this Lease shah'"not'.be subordinate to any Leasehold Mortgage and'stiich rent and such other, sums= shall be' ;due and payable; by 'Tenant, throughout the term .of thi_s,Lease regardless*of any such Leasehold Mortgage:: . onstructions Loans Tenant; isPier-,eby g-ven ;the } s tC right with respect to each phase to mortgage or, encumber -Tenant's q r r interest in thew'LeasedFTkemises, in the?Real Property, n�thisz , Lea"seg and./ n. the�Im royements under a leasehold mort a e tor` deeds ' P of> trust to secure the repayment`of arloan f-`rom an'Inst/ utional� `J M fN. d Lender (} a ,s commeresal bank, savings•':and loan association„ r'" insurance ,company, pension ;trust"or a'services company, of sucfiy t P institution) the roceeds ,bf which /: except as may,'otherwi,se. ;be =" a roved' in "wr tin' b:' L'andlord', • shal"1 be. used" solely to de ,PP g y. Y ve]op the Commer.cial:Project 'and to construct 'the Improvements and such r 'JMF21g1 8/1'3°/85 fix:: �' �, 4 • other physic"alimprovements to any adjoinin-g property 'as may =be ' required :by Landlord or the: County of Sonoma to be constructedin connection with development: of: the 'Commercial Project but which are ;not the responsibility 'of-; &ndlord in, connection with. the J Marina Proj�ect (the ,�`Constr;uction Loan'.') Subject to thei. terms of';Paragraph 1,8.2,; -above, the. Landlord' shall obta'n;; _execute„ deliver and 'permit, to be :recorded any and ala documents that - may i` be' required `by the Construction, Lender in connection w-ith thij! " making -of -the Construetion', Loan:;; including, withoutlimifat-ion° the , following,: ' - (a;); '^Any. .a'nd afl 'letters, opinions of. counset:, j estoppel affidavits§,ti certificates of approval,ass•ignmerits of', Constxuctionv contracts, assignments of'guarantees and surety. an& .1— peYf,ormance bohds'.and. other., documents .;and .wr,itten ,reps:e'senfafions=• : tt. ° and" w 'rY.--an i"q§t �reqqimred, by the. Constriiction' Lender,: or that pay be. .n'ecessary. to satisfy''the Construe,tion':Lend er.,that this, `.Lea's e+ -and. ' al`l" acts. and permissions to be = p .performed by. Land'lo'rd hereunder, � ' - are; lawfu-1, valid and (Zpn inuin=okil gations of Eandlord and -,.that the; same w;illy;tie 6rf 6nmed;.bV, Landlord,;' and other°,;;mat`ters, ,,ih'atsoever rnecess'ary or onvenien to`•.,itL nducethe Cbnstrilc:t1 n -.=Lender; to d procee -_v >.. ,or _ conn^+nue to finance the construction and development of,the�,�- r;r Commercial Pro7`ect ,b j m 5 Permanent Loan After ;construction of the rw b1r : x ' F w :' r initial Improvements°, Tenant from time toe, time with respect to ti 1 -it Wim' y .'u each phase. shall have+nthe"> r,ight to refinCx ance' a Construction Loan' i - - �i .n s° ", " or Ja previous Permanent Loan or otherwise mortgage" Tenant's interest in -t et' Prem ses�-in the Real' Property, in thi's - ' • - • .. :. Lease and"in,_, p nts; under`.�a leasehold mortgage o,r_° ' _ the Im r:oveme . " mort,gages or d'' d --or deeds of° trust. to, secure re ent'of a' loan'-' _ .. Pa�ym. a a 5o JMF,21.g1 184/1i3185 ' w 1 6,wrU ' 4. r `from an' Institutional. Lender the: proceeds, of which may' -be' used,to r"ef:inance a Construction Loan or to a finance.a previous Permanent Loan,'subj,ect to ,all of the,"terms hereinbelow set forth (here=in, ;a "Permanent Loan") : Subject to' the terms of'Paragraph, +: 18,:2, above; the Land ord''. shall obtain, execute, deliver and per -mit, to •b& recorde& any and ,all documents. "which; may be. kequired' by tiePerma_nent Lender n'connection.'witl the making.'of'tlie.. Permanent, Loan, includin without limitation the follow ng (a) -Any: and al'`I,'letters, opinions- ,of counsel,,;. estoppel affidavits;, c_er,tificates of" approval, j assignments ,of.„eons;tr:iuction•contracts,,. ,assignments -of, guarantees:.•: and,suret' and: erformance _b t y p ,.^.onds her.d'ocuments;and vrittenti and o representations and warranties required by'the-Permanent Lender or;•tfia,t may k>e :nece'ss'ary fo; satisfy. thePermanent. Lender, that. this. Lease °andall acts anderm'x-ss ons to be performed by Land-lrord' hereunder, aie,'lawful,, valid and continuing obligations of` Landlord' arid, that the same will be performed' by Landlord;., and (b); Any other .matters whatsoever necessary- or convenient to. -induce the Permanent Lender to' make such loan... 18,.6” Leaysehold' Mortgagee Protections: f_� s 1 of ces ,N If the hol"der o,f, any mortgage t i 18 6 i or deed o4fr trust impos`ed;by Tenant upon rit`s'- leasehold interest in a i`. �,�{4 t ��:_ , ',}`� Z { �•-': .g+.L�� r r.W yt,y>£ m` the_YLease"d- Premises and+/or• u on the' interest in tkie Im rovement (t Lefasehold Mort a e ),, shall haves re istered. p ., a " } ' n ✓i• i t4 � a I � L te{, m s . S,. � ,- �u , aP g g g with Landlord by F ���lY 1 � f. •�,}� �_ 9, ,k'k 14 �� ..... , YS f,,i l .m r ✓3 '�'. J �F�i[.� , wry tten% no:tice� speci�f"` ing "the name and. addr.e'sss of such`Feaseliold 1yt Mortgagee .( Leasehold;-'Mor£,gagee�'') , Land'loid 'thereafter''shall give ` such `Leasehold M0":tgagee . ar copy of aeach :notice of default .at the.. same time as- an,d whenever •such notice shall be given, by Landlord to.'Tenant; such,copy to be, addressed' 'to -•the Leasehold Mortgage :at the address lastl furii'ished .to Landlord;. In' - 'the .event' JMF21g1 8'__IT 3/ 85 C. of any such reg'istra;t• on, ';Landlord' shall not be entitled to ._serve a notice ,of such :cancellat 'on and termination upon Tenantt .unless a copy of any ,prior notice; of .default shall ;have" been ,given . the.,Leasehold Mortgagee and: the time as here nafter spec"if ed for•;, • the curing ofsuch default phall•,have expired without the,samei.. havn been cured. The` g performance b the. Leasehold ;Mort acre of �. y' g, g any condition 'or .agi7eem6hti,on the :part of Tenant: to ,be performed hereunder w=i 1.1 be deemed'. -to have been -p. erformed, w- .th "tki& ,same: - 'force and" effect>,. as thou' h_ perf� .. - _ g orined by Tenant.. .. 'P,erform. •. ,. -18.6'.,2 Leasehold Mb=:tgageO- s Ri` hi 'to La'ridloid_'w:ilfl ac-,' - . perf'' mance, by y t_ he Lea`sehol'd.:'Mort`gagee,-. within the- follrowing ,peri°ods of any covenant -or condition on, c T'enant's`part,to. be pe'rfor_med, hereunder.;• with the= same force '•and effect asthough time]y performed' by Tenant: •h \'. - _ (a;). AAs any' Rent; and aa11 o•,ther ;. charges payable ,hereunder;.'within- twenty (20)` :days ,afterwritieni ti ' notice fiom Landlord of such def.ault.'"and` - (b,), A' , ;to all other s defaults,°hereund;er ' ,wi'th-in sixty (6-0;) days more timer than; is, given. Tenant to remedy~ ' • `r l or,,,cause to be; remedied the•de'faultsl ;comply°•fined ofw; or',,. • if. within, r- E d ;. such,'peri'od such: default cannot be-%:,,`(_ to;.:commences to= so cuxeja , „�jk { ' 4y within such period aril dslgently +and continuously- proceed 3- k '%v,: ;}• u- } .fir :9 C + F therewith�'to comp,letron r a 1 - s (c)•' As to any de fault described inl ; za,c I ar SectiFon r20;: 1�(c (d) 1:or (e) below, ory any default under Secton�� ,_ , �fi A', 20 1';(b) ,-below,i:'which,`Leaseiiold Mortgagee cannot cure, Itin lieu, of '' r curing such default, Leasehold. Mortgagee shall have sixty (1601` days; after'; from "+ recep_ t of, written notice Landlord.`of such I ' '. i r - ", Vin. '.. _•_ _ } - .. '' r ,• .. :.` default, within 'which to giV.e Landlord written notice that the',: ' - u _ L"easehold='Mortgagee ,or a:wholly. owned-: subsid a.'ry•'or- affiliate of...r r 52 �JMF 2 lg 1 8 M, 3tb8 5 G(V4.1.r T t 0 '1"6tibt Leaseho'ld,Mortgagee elects to become'the'.lessee under the Lease in.the place•and'stead of the then.Tenant upon al_S the terms, covenants and conditions provided in this Lease. 18.6..3 No Termination,. The Landlord shall not exercise its'.right to terminate rthe. Lease, as hereinafter prov,ided,,., during the time that the,-L`e'asehold • Mortgagee> shall. require, to.,complete it's remedies (inaludingr.'for,ecl"osure or: a' trustee, -!•.s- sale). under such, Leasehotd,.Mortgage,, •provided, however., . and. ,upon, condition: ., (a). That the 'Lea"sehold Mortgagee proceeds; ;promptly and with. reasonable due ,d'il-igence;. with. the remedies under its'morfgage..onthe ,Peasehold: estate a`nd`. 'thereafter prosecutes and..!comp'let, the same wit h: reasonable :due dirligence and (•b'-),. That the Leaseho-ld•. Mortgagee- shall pay; to. Landlord the rent- `and' aa.1 other, charges requiredto, be paid 4by,-Tenant--hereunder wh-ich,have accrued and those which'•shall become- due: and.payakile -during said' period '• of time.; 1'8;.6.:4 Notices, of,.'Defau'lt".and' Termination. Landlord' shall ;also• be obligated to.give any,: notice of r a cancellation and termination to •the ••Leaseho'l'd _.Mortgagee; s?simultaneously ,:with such notice given 'to Tenant No suchF} notice } z 5's.: °` a i s.� --lt `r. ar�F �,a �, _$ �, .• M 4�x_$ ti �, to Tenant;shall •_:be effective, with; respect to,-terminati6n ofrt thi.� ` ..e Lease unless the"nLeas'ehold'Mortgagee,;shall 'a'lso have been sod:.° r t �.i.,d- r�. a A -c2 \, aF-'' , 4. •.� � � X `'. :. xe Y - '' +max, r> L i4 �' t �^� � �. ,-_ M� � ,,. ,y ^ ,,? nots>fied a's aforesaid Ther Leasehold°-Mortga;gee shall ith'en have} ;.,�, '' } v k k•'. ety ..� 6 l,�"'i 7 �, ,}s"`s,� i ,y.. N a. f- .'+ix 1:: .< �� , �.- �i`. w >�'r• the right{!;to no£ify,aLandlord in:•wr�iting, with thin-ty�(30 days _ aafter receipt by the 'Leasehold:Mgrtgagee of such, notice of - ' cancella-tion and term nat onr,�'th_at (;i): Ueasehol"d Mortgagee; -or its. designee; orPfnominee('hereinafter- called the:"approved nominee''l elect's to 5'3 N U 168• lease.the Leased' Premises f -ram the date of termination. -of this Lease Cas- ':speci•fied• in noticeof cancellation and termn'-at ion)' - for; the remainderof the term of this Lease; at".the rent and other charge :herein reserved and otherw-ise upon the.s'ame, terms,, covenants and, conditions as -are; herein set' for£h., with 'the) same - relative. ",priority in time' and 'in, right as th-is Lease '(to: the extent .p.ossible;) ,and �`ha�=ng the: bene,f'it of and vest -i rig 'in -`the Leasehold. Mortgagee', or the approYed 'nominee.; of,: `all of the right's,, t�ltle,, interest,. •powers :and. priU11eg2s of.'the Tenant - -hereunder, and ; Leasehold; Mortgagee• further obY'i,gates:, itself with•.thi'rty. (3b) days,. after del< very, to Landlord r of -such. election• (`a) to cure,`the- defauTt= which 'such termination -•was based;..or ri respect ;to any, d' - efaultf curin' of able not ca -_ p g 'within such.: thirty (3'0') days;,, or which:. _ cannot be:cured: without entry into possess"ion`, t6 roceed'and "•ef"fect cure with reasonable due d•iligehce'followsng delivery of .Possession;; (b') to pay forthwith to:Laadlord ' 2 Nlall Rent. <and tother charges ,idue�under this- Mease upr.to and r r including the, date of ,commencement of the Cerin of ,such news lease 7 s,: fess :any' net rental income 'received by__L'andlord for such; period p and i c (;c) to; pay- forthwith °tIT o_Landlord a, r .. ,, .40, r J& ;expenses and"reasonabhe attorney's •'fees incurred by, Landlord, ? A t c:onnee,tiron with, any such, default and' with the preparation;" <,. }, execiution,:and deliver`jrof such new lease Uppn.perforinanc:e:;`of the foregoing;`requYr;ements by ` Leasehold-Mort`,gagee„,:or theapprovednom"inee_, within such time, 'JMR21,4,11:38/1A3 / $ St w wf f U -r, Landlord shall thereupon execute and,deliver.such new Lease to Leasehold Mortgagee or the; approved,nominee,'havng the same relative priority in time and .rdght;as this Lease and having the- bene•fit.of all of the right, title,-••in:terest, powers and privileges; of the Tenant hereunder in and` to the Leased -Premises, including specifically assignment of Landlord's interest in. and to any then.exi,st ng 'Sub _Ieaselwhere ''the subtenant.may have ' attorned to 'LandTord and •may- :have. been :recognized by Landlord; in accordance with' Articles. `XUI •and ;XVIII- -above-, and which;- at the time of. ca_ricel-lation or termination, o - this fease,,, was prior, ins• right to the Leasehold Mortgage or which -by -'separate- agreement 'or.. by It's, terms had been granted•nondisturbance privileges", Land` -lord, hereby ,agrees that with' `r:espec.t to ';any such, Sublease so assi; 18.6.•6 Ass"ignment by_,Leasehold,.Mortgagee: In = the event tha•t'Leasehold Mor=tgagee.-exercisers its-right under'..' Section 1,8•.6.4above,' to'enter- into a new, Lease (or to, des gna-te- its nominee to. enter into%a new 'Lease), the, Leasehold Mortgagee or :approved mpm ne'e shfa=il have the night to make one -written- ' assignment of this. .Lease ,without requiring;it's''ass gfieel'to_,ent.er' into an 'agreement assuming all of the:;oblig"ations ibf the Lease as required by, Sectzori; ;15'.4, 'above:. After any- such a'ssi„gement' by ;3 L,eas'ehold,;Montgagee or its;[. approved.',nominee, all requirements' of-.. this Lease: including• but: not limited 'to Section” -15.2' of` 'this j Lease .shall be, ! pplicab ` : • ,. R• le to any: 'subsequent• assignment of, this Lease M - 5 "18r 7, Lease. Amendments:., Anyth ng .herein, to the k .. corifrary 'notwithstanding, .Landlord and 'Tenant mutually °agree [that so, Tong as. there exrs:ts an •unpaid Construction Loan, °Permanen;t', A Loan.; or, gther -Leasehold Mortgage, on".th'e leasehold. estate- of - _ Tena_nt•,' tt is, Lease-',or any 'reneiaa*l hereof shal=l not. ber,mo•di'fied, ' amended or: altered and thes..Landlord. sfiall •not acce t a.` surre! p. nd'er ' of °rthe Leased Premise's or, a'-c'ancelia;tion. &f 'tliis, _Lease: ('Provide, that. the LeasehoildMortgagee refnedies:.any default; p - and keep's this .A Sew-. x � Lease current, all as;: hereinabove: pro,vrded): ;prior, �;to they __ exp-rati3on or sooner termination'thereof as fiereinabove"provrd_ed, y' withoutf, er prior 1.wrii ;X ti c� Landlord further. covefiants trhat `f any' Leasehold Mortgagee as a i 34''x f condition -:to makang Farfy Lea'seholdrMortgage�requires any,amendfnent , +c- _ , o the !'&t terms ofrrthis Lease ,pertaining toYthe:.rightst, remedies ,'and F �v �_: x l L_ ,. t_ections affo fo g a't'Is5" t pro rd`ed such a Leaseho,l'd "Mort agee,_under' Hy x; Lease, Landlord ;upon written,+ request f,om Tenant andsuch �« 17 :_; '• 'Leasehold'; Mortgagee, shall execuf;e; sucli.''amendments' as may be -_ required- by such Lend'err,- provided, that: no such amendment­hall 5,6 i ,_:` 'JMF21"cj $ �r,- .. I-- .. { F ,._ .. .. 'Y •<: � tl. � 4 1, •.. ! 7 "y� f - . y 7 .. - r.f u ErC tt _ ._ - r - 5 -•F .. reduce the Rent payable tiere,under and`"except that if the a Leasehold'Mortgagee making such request is not an Institutional Lender,, Landlord•shall have the right, to reject any such, request whieh'unreasonably affects the rights sof Landlord hereunder, ARTrICLE XIX. Eminent Domain 19:. 1, Ifi General:. Irn the .ev;eni- that the; Real Property,, ; or any part thereof`, shali `be taken in, condemnation proceed'ings or by exeroise 'o f: ,any'. right o,f eminent domain or by agreement; between '-Landlord, Ten'ant.;: any Leasehold Aortgagee and those ±author-ized to exercise such right (hereinafter referred to as. condemnation•"proceedings )„ Landlord,'(sub:j:ect to any contrary s g requirement of any Construction L'ban', .Permanent Fee., hoan„ or•. other Leasehold: Mort,gage) ,,, sha'11- be entitled tor:. collect. as .9. ` }: trusted for• Tenant.f=om'any condemnor, -the: ,entire compensation that may be;awarded''in any such proceedings (including the separate.-aiaard,s as well as the: sing -le awafd as hereina-fter , defined) without, deduction therefrom' for ;any estate hereby- yested in or owned by, Landlord; subject 'to'the rights of -Tenant s'et. forth below.: Tenant, agrees to;'execute any'and all further• •that -°ma , be 're ui'red in order to facer. ,ate '•collection documents y q J by Landlord of such awards Tenant arid' any Leasehold Mortgagee s �. - ,�a J, y... iy: i 4� a �*r r 5 - �: c t , r - a i •'± ° r i� yshall have• the r ghtU toy participa`;te t�.n +any condemnation' s t t Y t...'c r ' 19 V Taking of Entire Property E ZfR at !any trine dur:ing�� i` r}_' "s✓.4 1�:•'p•S . ._ ,'i',L ,.t `', C ra ,•T r 'ri _ Y. n "" . ti �.v the ,term of this,,Lease, !theydwhole, of the Real Property shall be ,_ ;t y taken ani any condemnation p` oceed ngsor f isuchi-portion thereof l be so take , shat' e: to use the •rema'i'ning . n as. to make it. unreasonable: por.t'ion,. for the "purposes' ;contemplated `by "this Lease (i ,e , a ' wto:tal taking")':,- ,thenin any of- such events" this .Lease shall J x1g3 a ;1`g1 8°[ - /85: . r J terminate; and expire on, the, date of`;surrender of-:pos'ses's`ion of the `,Real. Property to the condemning authority. Tenant shall continue t_o pay Rent and',keep and observe th'e•'covenants' and. ` condi't'ions. of this Lease to, be-.perfbrmed by, Tenant until sthe date of such sur;.render,, but. not thereafter. In, the e evnt of. a, a, total taking,, and.. if- the �,ud'gmen"t: ,or order ent'ered,,n' such condemnation proceedings- shall make separate'. payments (h:ere'in ;called "separate 'awards"`)' to' the, Landlord -and :Tenant -as compensat_ onH for -the taking.- of ;their:; . respective• inter,ests;,. such. determination ander Separate awards ' sha l be conclusive -,and binding -.upon'`L'andlord and. ``Tenant; and 'any r i• s G person c1a'iming "by, <tfirodg) ii or under either of them Said el separate awdrds:;shall, be paid to 'Landlord and*Tenant dsrectly In the. event of A'a s`total taking, blit if the judgment, ,ora order entered, -in, 'such`: c8hd6mnd'tlon proceed ngs Rall not: make; separate awards,,; but�..r-ather shall' provide; `for the ?payment of a • - - > - K .' lump 'sum °(here`in called "single award'-":) As',compensation, `for 'tfie re'spect'ive, 'interest._ of Landlord`" and `Tenant, :then said s'ngle;.' `. award. sharl be allocated and, doll 'istribut'ed as' "fows ' .Landlord' and °'Tenant, each. ,shal`1 `,bei `entitled. to receiwe;out orf said, single HY award, as com en anon >for i;ts entire i'nteresi&, p thus': taken„ a� sum; • _ R q. - equal to the val"ue` of: ` its s nterest in the Property' to ,be` determined` by Landlord and; Tenanf with regard to ;alil.. relevant "- facts existing' a"t th- ime such taking I'f Landlord ,of Tenant .ti cannot a ree- on esuch"'values, the values shaltl be - g t f f £ i ..� 31 ,fsr„ determined by ar'bitrati`on iri accordance-,wri.�th ,Paragraph- 233, =r'y {�� y f fib' beloia , C :,.yt t Y t• fif � 5 [ � j .y. yi ` 4 � � • �n > 19 3 tPartal Taking f;If' at':any, time during tfie term x Ol ,r her-eof only a part of''he ,Real Pr-,operty' isha11 be" taken !ands the taking, of such" part does. ;not. make, it, unreasonable;.'use the T r L y s 4# ,� 58 a JMF21g1 8/13/85. V 1 28, r id remaining portion thereof for the purpose contemplated by this • Lease (a "partial taking"), this,Lease not terminate and T'enantzhall promptly "repair any damage to,the Real Property resulting from such partial takingi- and restore, replace or ibbdild the Portion of Improv6ments so dam'aged so, as to render it as nearly as possible a complete,6r-ch'i?tect-ural.unit of the same ty, -Ve, and class-immediatel preceA1rig such- taking,, If the+ even't'.-of, °a 'partial al, f'akirfg,, the judgment ,or a 1 order entered in -such condemnation, proceed'in,gs- -shall, make rr separate awards to .Landlord, and TOnant zs 'doiiipensation; of the ..tztTng df their'respe`Ive interest,. then said separate pa r atEdw a rd§, shall !be • col=lected ,by Land and�, th�e:en ire, balance of the lord t, total of. separate 'ivir'd's'sha 11 be;-heldby Landlord,in trust,' for- .1andildrdand,: ,Tenant and­iikespedt�ive o4f":the: determination of,', applied' an 'ority shall be, the - condemning authority -P d, :dl stribiiteld,'in, ac6ordaHce,.with the, provisions- of= clauses (a) ,through` (d,)' imclus,ii7e,, of this Section 19-.3•, 'below,, as: if a single award ha6, b'een', 'granted,. :If in: the event of- a pax-tia"i taking,, ther-e, shall be a s i n g.1, e 4 , award, as,.co s , atio , n,'f or the respec-EiVe,'Ilnterests 'of 4 mpen _161 d. �6f 'said- slngle,_ Landlord g•, vr d -,bete6n —y+awAT as between w i4_' L.�isingle lf,;awar follows, ..... I _ J i,-Fi1rS; any amount awair;d _t7 "Z­ 4'li.� �e oca, e sy-a the solely 0" Seve W -r-p restoning�t _tt�� c -,Rpe 61��;.th6g',p- u- he ose.,o R' P Real:, �rop . the ,injury, h -so-, , _;3 tereto F. p —6omp7eri'sa�eed,.' out' of the" badarice OL (b)'� Next,, f, said sngle �awar-d. (and to the extent�ftot: otherwise paid.'under the terms of' :JMF2-,Ygl7�L8(1°3/85;':�, '4 ng k� % k" V Paragraph, 19..3 above] tso_,much, 'of the remainder. of ;the single award as..'shall-be, r-,easonably'necessa*ry to repair an damage' to, th6 improvements,, or any 'part' thereof,,, resuIting.from, such partial takingi, iand t&..ddmol'ish,, alter-, restcrey replace, or rebuild, the-, Improvements, scr as to render the same "as nearly, as possib'le a archltec�turaT unit* of the sdme, type; immediately` Proced'ing such, 'Partial . takd.n_4•, :subjec.t to, such ch'ange's. -and a1teratIons -in and to the Irwovement!s as 'Tenant ma:v efect to' - Make in,'cqnfor' mity .4i,tHe: provisions o ArticleY above shall the! � �-­a,li be _utiliz ed, 13y"Tenant.for .:the purposes -aforesaid: sub;�stantidIIV in, �h se §et� �forth-!, in', �Artic'le' XII',,; h 7 the same mariner: as those above„ W--i't �respect, to, .,n•surance."prbce68`s;. (c)�, N xt, Lafidl'ord" shall..'be�. ;entit.l&Ct:6, receive afid.,reta, in,,,.t ha,tport-iPP,ofthe, `.'rena`inlng'balance 4o,f­9uc hnvirkgle' -award as ,compensation for-,.itsentire interest thus --t akeinot , a to,,,exce�ed'anc ,t amount equal: (1), ',th6A.di,ffere`hce. between,. the .,mirlket Value of, the lease.d,"PremEsew, -fbdtnot, -the. Improvements), immediately before the, ta Pm. U kl`niq a-.ndl, the -rrfdlrket va�-IuO cfthe., :tea,s,ed_ Premises,." imm6 a' izitelly- after, thetakIng-,,:•suqh, market'"value in each case. being, the.;then market'. I e� easda-']�, es, as+ value of th� �L- t'emis burdened.,bYthe�e se�_,pTus', (-i i) __ present,�,va� ueo fdifference,� - tea f� _, i , - �dnp,� An of Lanallb'raO,ts, residual' interest intlie .,,,., _`be,f6iLe;-'',"­f-t`erth'e,:�tak'ing* n mprovemefitz., .,an,da v(d -The, ient-ire; balance: of th6',­r'ema-inder,,,c sai award shallqq�Yie`paid to Tenant.as1QcoIU-tpe­ n 'sa, H`e,­-t,E;k 4 � e7 1�5 `its�, intei&s d "'th M- trj Ea ease( Premisesr 1 7. j Tenant,. may` in,the;: co'na6mhatIonl proceedings rAC and -shall begi 1'9. kal through (d),, above;. the dispute shall be determined by arbitration inaccordance with 'the terms of Paragraph 22;.3', below.: Effective as of the. -date of any such partial 'taking, - Rent payable 'by Tenant during the rema'ind'er: of the:. Term,. if any, ' shall be .reduced in the same proportion that the square footage r of; total. 4area.of the -leased Pfemises >so'.taken bears to the total.:,' area• of the Leased: Premises praxor tos `such taking.- Any Rent ' .r• becoming :due• - and" payable hereunder, ;between the date of an y partiar taking^ and the date7 ofi final 'd'etermi'nation of the amount. 1 = of .Rent:-reduc;tiom to•:be made `I n, r-.espdc;t.'hereof, sl 'all;- ;subject- to,. r f y• correction upon' such -1nal: determination,, be;. temporarily adjusted .' in, ,an egtiii;table. manner. _ aki-ng of 'Other- P.ioper'ty '.Anything contained in l9 .4" •'T this Article to -the. contrary,:notwithstanding,,. if- any ,of: the' ' fo1lbw1:ng1events shall,occura,. taking in any condemnation proceedkis or' b,y a',greement. between I`andlbrcT and the cbndemn'ing, authority of any, appurtenances '(other.. than' Improvements.) to -the: Leased P.remises;; areas 'or ;projects-ou'tsid.e o'f' the, boundaries• o`f the- -Leased' Premises 'or tights: in;, under:"or.-above, 'the streets: Y LL • adjoining `;the Leased Premises; or; the rights,band'benef'i.ts of light, ajr,,or access to said streets, or of spaceR,; (other than tlrs..;4's ..o s r }:,• , -_. . ^Improvements) ,t below 'the surface of„ or, above, the ,Leased o� Premises then Asn any, =of such events Tenant'shall.. rom ;tl at r :jr j . N .... r a ,: tp p `+.. 11, Tenant's ,and ,in compliance wit'h4hthe 'provisionsr,gf Article •ar'�-a6g'a�ti}-� t 1 <. `fiT7'+aaet expenseo- , -3 tij y 6 j "A' -V "< Stir ,• 8 ,�•: v p � 2' � XII;. above;; make: such repairs, demolitions, ,alterations;:: or rebuildshg< of the Reay Property as shaL1 be neces'shated: by such y a takings ;The separates awards to--1'andlord and tenant or ,the entire,. amount ;o f' any single_ award''for any such taking. or, change in ' -gr:ader. as t,he. case:may, be.; sha1;T constitute a common fund and be r JMF21;g1� h�• paid to and. retained by'Landl6rd:,,. as, trusteefor 'L'andlord and -Tenant and, al.loeated,,. applied: and` distributed by `L'andlord_' as follows: ( ) So much of,,-,saidl common fund as shai'1, -be reasonably, necessary to make such r,epa'irs, ,demolitions,.; alterations, or rebuldingi ha -l- be ;applied' and a'id ,over. a"s' provided im Section 19.,,l toward "the: cost of such' worka, 'The :remaining balance'„ ;if :an_y„ .,of' said - common fund"shall be, :allocated aiid dis.tributed-between Landlord and 'tenant (1) 'where :said, common fund shall,be the, aggregate, of separate awards- :to• Land'lord. and Tenant',, • in :proportson to. the.irr< ` respectige,separ-ate ,awards:;, or ('2)where said common fund shall F' consist, of the :portion, of anysingle award any remaxning..balariee thereof, shall: ,be equitably• apportioned- between, Landlord-land;w Teant toe the :end.'that: both ^parties shall be; compe,rir sated fon "th ne damage."suit fer.ed. b wa of P ' y y.. -' the reduction or .im,airment-;of the' value, rental value- or,usefulness of +both Temant s _Leasehold; ii t S f . interest, 'and Landlord;' s r'eversionary .i'nterestA I."f: they parties N ; f •cannot.agree upon, such;equ,tabl'e div'sion,,:the issue shall be ` submitted, to •arb;itra,tion in_-acdordance with;.Sect on 23, 3,,, below- 4 elowEffective-'as of. the datew�of_such ".taking,; the dnt h'ereui'd - shall my ; be reduced, in such manner Tas may be agreed to by Landlord ands o Tenant or,fa+fl=ing ageement,, the ;quest"ion, shall al"so bei w. SU bmitted-;to arbitration o T95, Temporary Taking If the temporary use of thee, t �,g whole': or' ;any par( o'f the, Real Property shall be;takoen byany` 1Yr,rJ firt lawful power or -,authority by the exercise of 'the right 1 condemnation or eminent domain, or by (agreement betweem`Tenant,) i .• and. the condemning authority,, Tenant, shall give? prompt notice•., -there-of. to, Landlord•„ the, term;. hereof, shall not be -reduced or " 14 Au �, S. j. r • .. 2 f N.: 62 ti a v JMF,21.g1 8/,1'3"/8`5 i r II '1 affected in 'any way, Tenant shall continue: to pay Rent in full, without reduction or abatement ands. except to the•extent that Tenant is prevented from doing so by reason of any order,of the condemning autHority, shall continue to perform and observe all o the other covenants and conditions`hereo:f to be performed by Tenant,. -Tenant shall be entitledto receive any and,all awards or payment's.'made for such use•: If`•. -he taking- is:for a period.not extending, ;beyond'' the Term hereof, ,and if, such award or payment' is y - made in a lump, sum, the same shall be °paid- over, to arid. become: the: property osf Tenan;f. If the taking. is for a period extending be.y"opd' the,. Term -"'hereof, such award or -'payment shall `be apporti'oned ^between Landlord and 'Tenant . 19.6' Sublessees An rovis1- n• in this: Article X•IX to the contrary, notwithstanding, in. the, event', any one o.r, mor,e. 6f,the y - lessees,under..th'e„Subleases contemplated, here. "in,. their successors.:. ' or ,a signs;,, or any sublessee shall become entitled to any portion. of*the award, in the, total, or part-ial taking in any condemnation or- eminent dom'aln', action:; .such 'award shall. be, deducted from. the. share of Tenant,. ARTICLE XX + Defau'It sand•:Remedies } t t Im casesany of theof Defaul20 1 Evenfollowing e f3 sk t,:, events shall happens and be conte>nuing•. x• q'.Tenant-'�shaY-I at ahyrtime be in default � z;{ - r ,�-7 r ✓x.#!” ra F. w u, x a f .: j. L 1 µ •r 'y.,.;f Y,Q K'T R,, y 4" � ,v. ,r i� & �o i �✓ }. - n Ci tE n a i thereunder as�to� any)ymonetary, obligation and°such default shall ' (H 1 � :�. J ,ah � 4 A rye' t w ;continue for' thirty (3:0)� days after written*"not ice ,from,,,L'andl"or d! to Tenant ',of such default or. T r (b). Tenant; shah bel in default in any, other -of - _ :. itSpromises",, covenants •or'`agreements 'conta''Yned herein, and -ouch default shall, continue for" sixty (6'0) days after 'written notice 63! JMF21g1 8/1'3/8Ar5 j ! 0 r-. I thereof from Xandlordto 'Tenant ;specifying, the particulars` of, - - .• such. default,;, or, - (,c) 'Tenant sha11 abandon ;the Leased Rr,efnises•• <, wh'il'e_in default 1n the payment -of Rent an&'such ;abandonment shall continue for thirty days of -ter iaritten notice, th'ereo"f from Landlord to Te`na`nt; .,or ;Tenant shall, .file 'a voiunf,k y pet tionrIin b'ankrupt'cy' or-, shall, be •adjudicated a-bankr.upf or insolvent., or. < 1 fileiany petition seeking .any r -e, shall g l tiom or anization,,.dissd u ,. similar-reiief nfor tsel `under a °f _ ny law rel1a,ting t'o bankruptcy or-. ' ; r s'. other relief for debtors, or, shat`1 seek' or consent" toy in: the ; z appointment of 'any trustee_,.; receiver or; riquiator of Tenant or 1 C 1 ;f , '� A F war'• y �4 i of 'a11 or -'an of its property, or' shall'make t;any enera'1 gnbenefi�t,.;of creditor,s!, or`"' n,or the ass imetf Y. b -Gt T(e) ,A court shal=l enter an iorder 'or judgment approving "a pet tion--,filed;`against Tenant seeking .any re organization;' dissolution, or, `,s•milar:7rel--ief under any, law ' " relating, to bankru tc", insolvency, p y• or:-other.:relief:' for :debtor's=, and,; such, order, or �,udgment; shall. remain unvacat-ed andunstayed for%90 days i ;THEN, +upon the occurrence3�of any..°of such` events " 5 (an "went; of"Default`."_:) and in additioriAIto£ any a 4;, ZL1 other P 7 rights or •,remedies of 4Land'lord, Landlord shah have the 'right 9to w t y 6 Tf. terminate; -is-`Lease,,;[totre=enter< thecL'easedt.`.Premi'ses,and takes possession°thereof, and to, remove "Tien antrtherefrom, and Tenant's 'h 4 1 9 ,�6u .^. t € , 1 l^.! ♦ ,f\) £': N �A ,,,� E' i" .: Y ..gy S m ?R l '1.>•� ,l ` ' 1 yq Ort ; shall^have no further iclaim sthereon or;hereurider, `provided1,'�' 1.a! :2 2 � iC , that, if the Event,;of Default complained of is of 9uchy r _ rhowever, 1,4 4 = natur_,e, tHat the ,`same `ixs' ,curable but rot within thel periods allowed „r. for curing such;Event `pf' De_fault, � then^„'the right of Landlord to - terminate this ,Lease: Because :ol- such' Eve: t ,of Default':shal'1 `be-. _ V JMF21'J!, 8/13/,85 i r v o ? v 5; � t " G _ s ti a; s.n 't •r � �'-Lsr' Fr tr -' "a r '� a 1,4 r sy r 1 suspended if Tenant shall have ,promptly commenced -within the applicable cure period stated:above to, comply with the provisions hereof (other than scheduled payment of Rent as provided in Paragraph. 20.1(a), above) which have been.breached by it and if and so long as Tenant shall., with diligence, proceed to cure such Event of Default. 20-..2 Termination. Upon the occurring of an Event of . Default,�.should Landlord desire to terminate this Lease (subject >r to the -rights of a Leasehold Mortgagee), Landlord shall* give Tenant. notice of such intention to terminate:. In the event i Landlord shall elect to so terminate this'.,Lease•, Landlord shall be "entitled ;to recover a,mone.tary•award ifrom Tenant only as allowed in, Subparagraphs •20.2:',, 2,0,.Z. 2 and' 20'.2..3,. immediately - below 20..2.1, Pr:ior)to- `Landlord _Financing. -If Landlord r . should terminate:this Lease upon an Event of Default prior to the time Landlord,shall obtain the funds.and irrevocably commit itself. -to the financing necessary to construct the Marina Project (as said ,financing is described 'in Paragraph 9.10, above), then " L'andlordJ"s sole remedy' upon the occurrence of an evenf` of Default ' shall be tb, terminate 'this- sease;:and? Landlord.. shall have. no. right,., .. to a:' ud ` ent for 'monetar . r,ecover a? a'inst •Tenant. for 'un al ' 7 9?n Y Y 9 p ;Rent; or other damages -whatsoever ;except as provided'ii,�P:aragraphw below ; r w :y ` 20 2�2, rDuing_Landlord?'s..Fi:nancirig Ifr' Land`lordn should terminate this:'Lease` u on ,an Event ofrDefauit Burin 'the t` a:. P g term: of repayment. of',the loan or ..other 'finan`cing :obtained;:by ,•_. k;, 'Land`lord to, finances construction of .the. Mar ina-`Pkbject, Landlord. ` - shall. be :entitled to, recover• from Tenant:. -65-,JMF2'.1g1.8J.1'3 85 r r, o` 162. (a) The worth., at the time of the award, of the unpaid Rent that had been earned from the occurrence of the Event of•Default until'the earlier of the date of termination of this Lease or a date fifteen (15).months'•from the Event of -Default; (b) The worth,, at the time of awards of the ' amount• -by -which th'e,.amount of rent due pursuant solely to. the terms of -Paragraph 3.�2'(a), above -(without reference to Paragraphs; 3.$ (b)° and°'3:3) wh•ich 'wouldi -have been: earned -after- the:.date 'of termination of this Lease until the -earlier- of (1) 'the.'time 'o.f •award, (.2) 'fifteen (1'5) 'months - after thd. occurrence of the ',Event ._ sof :Defau-Tt or, (''3'I one, (1) year �fromr`the datei.of termination . i; exceeds the "amount..of- "the :floss of Bard +rent :due :under. Paragraph 3 that. -Tena•nt proves coulds have'reasbnably ,been avoided ,• ' " .savor The -worth, at °th'e: time.of,the award', as• used;•' n, Subparagraphs. 20_-Z. 2 (a•)' and '(b;) , above; shall, be' computed by. -allowing, -interest a:t ten, perc.erit (101).. per - annum. "". 20:'2.3- After Retirement ;of Landlord's, Financing If Landlord, should., terminate this Lease upon the, occurrence of ran.' Event of Default• atter the: time Landlord: pays, of, 'and'. retire's ". financing:, obtained-tof, construct the-• Marina ,P. o7ect, Land11ord'_'°ss sole remedy she'll be to terminate: this° Lease.:and Landlord shall ,• ( t _ =. x . _ have• no, right- to: a 3ud57ent.:,for- oa,monetary recovery against, t' Tenant for,,unpaid rent or any other damages'whatsoever e,xcept;'as s provided in Paragraph 20 Z.',4 jbelow y e 3 n Vnpa t t' -A,,-• ' ' ` ^ 5q 20 2 4• id Rent In he even ,of termination of.ihits.L'ease either prior to acquisition of 'LandlordI's- financing 'or ea_f:ter'the time •Landlord pays off.. and ret'ilies Landlord's financing,, Landlord shall-be.'entitled to recover'.from Tenant the worth.at the tme:of',awar-d. of the 'unpaid,,.-. 66 JMF2%gl 8/1°3/851 . s.. 8 • Rent which had been earned ,from the occurrence of the Event of Default until the.earlier of (i) the. 'date of termination of this Lease or (ii) the date Landlord, if Landlord had diligently pursued' -its remedies hereunder, could have ter'minated.th'is Lease by :appropr"iate legal. process or (ii+i) a date fifteen (15;)' months fromo the Event of Default w, 20 .3'.. -Re -Entry. Should an.Eue-' of Default occur, u,3 _ Land "lord shaT'1 also 'rave the ri•gh,t, upon terminating, 'this- Lease,. - to r;e enter. the Leased Premises and_ remove Tenant and` Tenant' per,sona=l property from the Leased' Prem'i`ses;. ZxceE pt to,the•extent that Landlord 0 4' 'No Waiver fi may 'have otherws a agreed in,writing„ no waiver by Landhord of 5 nya breac by- Ten any;,: of i a h ant; `of is obligations hereunder, shall be � ` , � • deemed to< be a ,waiver" :ofrany subsequent breach of" said ARTICLE,XXI, Indemnification by°,Tenant Tenant' agrees_,,to _indemn'i'fy -•and'• save harmless.: and` -defend;• t 6. Landlord against, :a1`1 cla-ims. by :any. person, arising: ,from zany work donee. on t'he Real; Property wgithin the` control- of Tenant';`and will P. * .f. furtfierl ndemnffy and`?sage Landlord harmless'•and`=defend`"against f Y gall claims by `any person arising during= the' Term hereof' -`from a4 g K_:, - s5 r� of � � F .R t,..w _G_ (i) any eondiltiQn%ofaanny wilding' or improvements ;oni the , ,eased m :} �, A, � Y Premisesor T(ii) ari3sing 4f-romrany breach or Vi,_default ons the part nr'� , 1r _ br"111 ''� a'A ri. s'+`•�21T.r. of Tenant in,".,the', performance Pp, any agr:eement� f Tenant'isN und'e"r p < - d t .v Al ` this Lease; or (kii2i)`arising from* any act�of ;negligence of t+s - - e y' - Tenant, 6t , ) ari�si-rig from any .accident, 'in'Ouryy or damage L wha;fsoever caused to an e=son occurran Burin °.the Term .. ,. Y p g g.,. r hereof ,, in. or about" the Leased •,Premises . Tenant ` shal•1•'not,, S! however:, be liable .for iri'ur y, resul-ting from the ne li ent. or h. ,a 67 JMF21g1 8�/13Q/85 intentional acts or omissions of Landlord,, its agents or, .employees„ whether, (such, •injury is caused to Tenant;; Landlord;, or' any ,other ;per,son or .persons:,. ARTICLE.XXII. - Miscellaneous. 22.1•.,• Notices 'whenever, Landlord or 'Tenant -§h 11, desire to:'give. 'or, setae upon the ,o -her any, notice,,, demar &l.. request or other communication with; respect to this. Lease.,or-'with ,r,espect-to the P.'ropert eachsuch notice d'emanh&,.re`ue`st oi`• ' other communi'c'atiom -sha- 1 °be in, writing; and' shall -�not ;be. effective-unless,the same°shall rbe giuen`or aerue&by,'persona4l' delivery to .th e party or, parties ;to whom such a notice or other, communication, s: directed or by::mailing the, same to s.gh party`or � ' ~part` es by reg Ystered,ma 1"'. postage prepaid; ;retur'n receipt 4 , . requ:ested;,;. addressed ,as 'follows ' If toor ' "Lan3`1 d at. Office, -.of. 'the-, City. Manager. City Hall'„ ! 1,1, Engl ksh•' Stree:t,. Pet all uma, CaEl'•forna 94'_952'. I f- to T ctb Coombs Development mr k 100 E Street, ;Suite° 202 - , r� x i Santa Rosa, Califor,�nia 395404 n � 'z. S• >, -r °wltha' COpy`t0 -_ � a r V ^ k r 3 •:c .:,:�� 'trR ,? c Miller, Starr.,- & Regali}a r n t t ; Ones Kaiser P2lazat,<Su`ite :1650 A & Oakfand,. Ca,1kfornia' 9461'2 a� afi-'�� ; a''• ,; a 'Attention JamesF FT'as set�to `n i ` ° �',� a* , ; y-�' A' .E R .t 't" a ! 'yC- -;} 1,�3-_. Y• J. r ¢ -J"� aa... or,�at suchaother_gaddress,,`or addre"sses as iLandlord or Tenant mazy , M1 from,• time ":toeltime designate by written notice4 given as above provided Every notice or .communication shal`ln bes;.deemed to have _ been' given when -'received %f: by 'personal: defiver.y'„ or-wi`th'in 48;" hours f"rom time :of maling.w _ 5 a JMF21 1 1 a 6t8 •, �. ,..i � r '•'1 - � f.. ; I , v' ��„ far '� -_ q . s I , r.: ' } 01'-E1'61,2`8 f I [ Av " 22.2 Quiet En':joyment., Landlord covenants that Tenant upon paying Rent and all other charges, herein provided for and observing all covenants and conditions of this Lease,on its part to be observed and kept, shall quietly have.and.enj'oy the Leased Premises during the term of th'is''Lease�,without hindrance or e molestation by.anyone Claiming by or ;through Landlord... Landlord in particular:, and ':not in limitation of the preceding paragraph of this S'e"ct'ion 22:2, covenants that it and its predecessors, in .interest have, not= -granted' and will'not grant any righ.t'.to,explore for or 'extract any minerals,, oil or other j hydrocarbons,, wa'ter;,• gravel;,,or, any earth substances or minerals -;of any , k•ind,• in, or upon the_ Leased Premises, and that. Landlord. does` not retain any, right :to explore for"or extr,acf- any :such ' subsvtances whatsoev..er.during the, Term,, hereof, except.that with i pr - or written 'consent of Tenant;, Landlord may extract water.,,, oil_ or: other hydrgcarbons from the Leased Premises provided the same does not involve, surface entry on the: Leased Premises or if it involves,surface entry does not a`ffeet any buildings or Improvements 'and' is conducted in 'a 'manner consistent with the. Improvements and'., operation;-and..generAl. character of the Commercial. Project LandYord covenants: that it will not impair F subadjacent or lateraP support of. the Leased`Premises3and t N, - • ' 1 "J '•. kTMtr of C 4_ Y +�.,; '•, c �" s� ,.:�:�,Improvements inr�'any..,manner,;by .any' sueht �operafions. 'on the`., Leased a. iL z ks 'fy Premises or,elseiahere ��;; iArbitr-ation% I'ff at any time, --or from ,time' to ,� t ns 'd't -, g _;,r. 'e'.i�� mt, rte+ -•o sa a g i �t nY r' x •w 1 r F- time' during the .term tereofA; any dispute, shall occur between n Landlordand Tenant„and If'Land,lord and'Tenant have specifica•1y , - and' expressly agreed in bhi`s Le'as'e tq:" 'the >settl"ement''of such" diisputE by arbitration., succi. dispute shall 4be settled• by • drb.itratioh in accordance with the Rules' -then obtaining of the „ 6,9 JMF21"gl 8/13/85 jj�� '• American Arbitration Association (or a, similar- successor. - - or-gard7at-ion,i. and the' law- of� the State, of Califor-ni'a, and-:, !• judgment upon the award:r.endered; int such arbitration ;may: be _'• „ entered- 'in any, ,court, raving; j'ur-isdlct' on thereof,. ',provided, however, that inany ;arbitration proceeding condnc:ted.pursuant ` hereto, at least sone `arbitrator<. shall, be •an attorney at 'law -;r admi;tted'.to .pr;actice+-in • s California r. 22.4 Interest'., ,All rent and all other; ,sums: ,which mag f: r e ran om; time::to time k ecoine d`u d :payable by , Tenant;; to Landlord und'er',any- ;of .the provisionsr of thas Lease; ;and" not .paid within • ' fi twenty (20;) days after the':due,rdate "shall Yiei sub,j:ect o;`.a slate paymentpenalty; equal'°to fine percent;,,(5$)� of then installment an 2 default andif not, paid within forty, f-iv,et dater shal"1° bearr! interest from and" after` said forty=fiftfi (45th)+ rc= day -at the hi�glest, rate allowable at' the .time of; def under - t the, applicable •usury .laws' of.the •'State of Ca=lifornia or:,_ if no;4 maximum:.-Is.established b law then a•trthe y, prime1,rate of the Bank „ ofr'Amerca- plus= two.=percent (2:)' �• - •' 2 dt 2 5 Li tigatsori..' Lan ord': agrees', that. if any; ; 4. controversy, litigation. or,, our -t' proceeding, is rosecuted ori , by Tenant in,'"connecti`on`with` the Leased Piemirses 'a a 5 � �r5 ,... �� ii:_ .9 ', ;• .` � `� 5 `DRi l j 9 U n W b f :F r °Landlord rw'ill render yal}1 reasonable assistance Tenant iagrees, r ` rh t at',if any controversy li'.tigatbn or;courtapioceeding` is _: prosecuted'. or defendedFby Landlord in.'connecti6n,.with the he Real �». 't r F1y4� �SProperty rand/orthe Marina Tenant wil'1G ren der„allnreasonable-�; ` s r �r yz fL r Y e ass stancerto',,Landl�ord, but at�the+ysole• cost and expensAl x t,, Landlord v 3-' . ” y } 22 Lb y - ° " ; 6+ Constr-;uctronz In,; all eases the language: in alh ; parties of the; :Lease''shall ;be construed' simplaccording to -i`ts ill• fair' meaning and not strictly for:•ot,against Landlord or -_Tenant t �? r � �• � r n t x °s. 7 � e70 SMF21;g1 3,Z8'5'1',, 5 1�. $ I - s r s� , J 1�c �wm -4 _ �. `' , r• r .``r 4 s 5 F , � y =1�6 This tease has beendrafted and negotiated by the joint efforts of Landlord and Tenant and their. respective legal counsel, and the, p rincipal'of construction against.the draftsman shall have no application to this Lease or any provision'hereofp Landlord expressly waives application of the principI-e that contracts and lease's withpublic agencies ar:e'construed against the private, party, thereto.. ng�, -and 22..,T Binding,. This Led.s.e. shall be binding�_u -on shall, inure:-to.the •ben e I, of the parties, hereto and, their respective, :successors- and z:ssigns',i..•and ;,Wherever ;a reference in this Lease ss made to- either,of the parties -hereto such reference s h all. -be d6emed,.to include the-ir ;su cesisors and;assigns;.. 22. 8' Recordation'. This. shall, be .executed by Landiord'-.an& T.6-fiant. ands. -recorded' in the Off-T'Cial-. Records of Sonoma G unty. -22;09 Consents.. Wherever, in. t1fis .'Lease the consent or. approval of Landlord or Tenant is required-„ it is agreed by Lzi-ndlorA and Tenant andthat such, consent; :or approval shall 'not be• unreasonably;` and will be promptly -considered. .-Edtopel Cer'�ificates:, At any time anand..from - -11e'ast�- 20 %,day's time. tb� time�j, Lan&rord on at prior writ'ten., request jy', -V; -it'f-eri- Yeque'9t:- b� T' 't— least .2 O­d`dys'�,'pr' ion, w,r-,.' enan ,,,.an 41kTenan 6h!e.reques 'Pt,, I" �f, Ib I i2i, making 3i2 party � �',E fi statement ih writing certifyingothatthis Lease',I'S7unmo Iie'd%and' "'T Y mo inn , IsY,ri full ,force o;, ectas d IiInddiibrib ��fh.A-'�the* same -mod lf14 c Attip di the:.dAt -6 �h. "h8difi6d"a7n statin'g the' r4, zh es o which he -,any, other, t rent" and d, and;...' - _.Y or"�cfi ch'a'r have, 'been.' a=id. stating h'ether or 'not, "to, th'e' best, knowledge of the party ta: w executing; su-ch...certiiidate, the party request,ing-such statement p n covenant,, "i_ is in -default: in the; performance? ofa yagrepm!ent,,,or, condition contaihedl in t1iis-I'lease. and-, :if, so;. specifying each_ such default of', which the execut'i'ng party ufay JiaVe, Axibwled'ge:,. 22:14 Part ial_Inva1lid1,ty:, 1-f any term or provis-ion,of - this Le'ase, •shii i to any .extent„ be invalid or, unenf or,ceable. the. k remalnder,of this Leaseshalt` not' aff ecied t'fiere�ya'n 6 each term 'and,,provis,ibn .(of tfi'i(s,.,`"ea:s ev. Is hail I hi6l valid; and b'61 enif orced' to the, ­ fullest' ,exfeht penffltt& d, �.;by law., Captions All article V, section and stihs�ec;tA'­*-_­` 2.2. 12,.. ion'. 'headihqs, and c apt io,n,sl 'in this'Lease,..- r' ofil are for I and shall ndt',wffedt the construction: or ­fn er,pret,at-ion,`-' hereof —1-3 Conflicts In�, the er�event'�any-4confllict- :exists 7 -1 etwe�en, the terms:, f ­ chis ­:i1ea:s'&ari `the- terms; of the-�_,Agr` eement=­ -"',tbnc"e.r'.n�i�ng,4-pev'i�'-lopm en't­-,,;L.,Ahia� t-dk,­Y�s of�',thi s,.� LE6:9 e"' shdTT'gove rn., and—,; 22 4V Right; of .First ;Refusal;: If :at ny,.,,timed­u-rih14,- 'to of fbr for , sale e� tandlbrd,. desites� 1 or7 to! the. term �of. this .7, . , transfer 'the Re'al, P-koperProperty-or:,th6 Leased, Premisesvi, or any, iinterest.-herein, or any -portion thereof,.Landl6r& 6 t first Tenan`b'!on� t -"he, db shall not'; -isb;,,vii--th i� .�'f 6ffeking thd, 'i�ame, to same.Prr-ce',and terms as asp Landlord ,"3',pro'p'oses,,"-E9f _�, 9 r 6-f f 6rfor the''ke per'+'y-,A.hdV�'o e the, Leased' L offer to'%' a'n V,h'ave'- the= right ' ..ij'dh-_offer` ­ o:,,accep,t,.�,or�xjejects : Landlord _ _4f with lin. ,th imtyc�,, 3."..esa-i-idt, off 6��,kAffiifif 'ion'. shaTh close z t jT'e_ Tenant n,t:: a c' pse,4,pn, o -f t he`4 terms 'of- t'he' er'-'.-.I,f,. en - s , aid offer4" ,a� .reg,e , c % accept t :wTthin­ --h ,quc may, 4' accept offer;from �a. third party -,br--make` an offer. '-whl'c h' is ''accep'ted, by �such'. third,; rd,'part on, .,terms ='ch'. were - �T- 7, qi T318 JMF2-1 'V/� 4 v q j proposed to Tenant at any time within a period of ninety (90) days following the expiration of1the above-mentioned thirty day period. If. Landlord does not so acceptor make such offer within suchninety (90`), day period, or if Landlord desires to accept or make'an offer on any terms other than,tho'se proposed to do so, Land lord -fir s:t shall again offer., the Re al Vropierty- and/or the Le4sed:_ Premises to Tena,n,t,.,I*lh the same manneri.as aforesaid. before- of fdr,ing• ior.acceptlng an offertherefdffrom anythr`rd-,­party_.. Any uhr6pof ted,°, sale or other,, transf ek,,,-,of, - the. Real.'Proper.ty and"Yor. the Leased'- Rremises;; or 'any, portion! thereof, 'or Any interest' ht 6rbst thereon,, other, than in; compliance. with. --the: terms, of i: 1 ��Section.-' 2,2..14�i. shall abso-y'-&ly' hull' and,'vdid.­, _4 IN WITNESS. WHEREOF, tandl-6rW:,and' Tenant an have execute tbi's JLease asi of they d'ay 'andCy'ear_ fit-st" above written Tenant:, MARINA,. QFFICE PARK ASSOCIATES'- a, ,California Limited' PArtridrship By:, RICHARDI COOMBS, ,Gener-al Partner, " Coombs, Developmen: 00 -,EStreet;,, Suite ,California, 95404 ,,',..' Santal­k8s� Z 411 B W Y,- " V ra, Partner w A `4 -t -4. didr-6ssl:i,,30.11,L-c)homa"' cburt,-_, �H i I l:tb6rbu'gh,'- T4 0.1001-� Landlord.;, CITY OF PETALUMA,,.a—publ c body', corporate.a'nd politic - By,.. Attest' •Joseph For,.est, ' - City Attorney - " Auditor: " .r w , rJ• 4 •- � � i �.. �; ;_< J.E4'r � f "ar Ja s � , «.13- +T ��I '�f .�l � i `•�.,,� �.•4 '.� u t f it 3 + y.. ��, v ,� I. �, tc � �, - E S '' e�•. .� � r' - i -_ 7f yc h �. 'fie �v ,d ,. ,+j. .j�- v •$ t .i ,� 1 gcl I �...� �. y `y ,3f, .� `r, l'rh r r `ru t x°..`�. a 4 S s fir, .r� l a cr :.r o r•� hs ,� :T J! {= I+,, _ P �.•. - zoY li �, .:�. + • f N _ � r J� :. r n van ax^ w wk' S,e w 74 ''� A1gl 8J/i13y/85z ca, JMF2+ " r ✓ ^ i t u i V IH 7 G STATE OF CALIFORNIA ) ss:. COUNTY 'OF' ). On this day of in the year be -for -.e :me (here insert the name` and ;quality of they officer.), Personally appeared. personally :known to me (or- proved orprov.ed to me on the basis of sati's•fact'ory, evidence) to be. the person that executed :this instrument -on behalf of' the partnership, and acknowledged to me that the partnership executed it: IN WITNESS,WHEREOF;- I have hereunto set my hand'.and h affixed; my of,f=icial seal "inthe County of on the date set forth above in this - - . cert•ifica•tel% -- -- - Notary Public, State of�California j My, Commission Ekp` res: STATE OF 'CALIFORNIA • ) ' ' s s'. COUNTY OF, On..thi`s-, day of` -. - - in the, -year before'me, (lie're insert the :name and quality of the•off cer;), personally appeared personally known to me (or proved to. me on the basis of sat "s,facto.ry ..evidence) 'to be the Person that executed' this instrument on behalf'bf the partnership and'' acknowl'edged' to .me, that the. partnership executed it. . IN'.WITNESS'WHEREOF; I have'hereunto se,t'my hand. -and affixed my: official 'seal .in the County of on the date set forth ''above n'ths certificate: J.1 .. r' Notary Pub+lic,'State. 'of California < `-' • a k� mmi�s's'ion Ex ires:e e a FN i �t r M CO p a Y .tiq{ ': fi$ "'}` : '' 3di�i 'f` _ m '�`" r< `Y }� t .E wad utz, tv. 4 rhe` a .y+ fL $ . �' 3 x af>• r '7x F `'` . "s sb tisk • _', �s 16 EXHIBIT "A" I`,ega',T• DeScr*iption O,f . Real Property- A,11 All'that property pert certain, real r -o _- - y ,'situates;: lying, and- being in f'he County 'of Sonoma.,. State 6f ,Cala-fornia;, described as follows;:; . PARCEL, l: • - - - • , • ;C OMMENC ING; ?at a point ,on the lebutheasterly line of '';the• parcel of --land .described 'in deed iq ol 6, 9779 to the State ,of Cali-fornia,,, recorded. December 24;: 1,953 in Volt -12,48.,. page 42;7, .,Of ficial Record's of. the County of Sonoma., d=istant ,alongt,said, southeasterly line S.; 35,°53r 0: 'l811" W-_, 60.:1 -feet - ,fr,om-th& most, - easterly corner "'of. sa'id-Pa`cel 977'9; thence-_ 8.4�0,41'35." `S. �. 597.95 feet, therce".S: 1'3'°`:0;0'48'" .W 4`'5:0,0 ;feet to: the -northerly F line, of the right of way, of they jNorthwestern_;Pac1f c Railroad;_ a r thence; along said northerly; line" S 76°559' 12"' E , 469 36i_ feet to said southeaster=, y lFine,, th"ence .along-last•�said fine N..,35'5`3-''18". D. -,E 252..84 feet to the.point o.f commencement. � _CONTAINING, ,1.548. ac s,:: mor -e- or.-lesss.; re $ j PARCEL 2. - ;'A portion of:,the ;parcel; of land described i -n Deed Noy ` F Y 9789' and all of ;thea parcel. ;of land described °in Deed No 17660, e 11 „ .,bothc,to the State of. California recorded Faebrua " 19 1953k -arid $ :. Januaryi2:7, 195'6. and recorded '-Volumes 118_9 and 141.0,�7pages `305 r Y. 4 ;and' 451; res15 ivel'y.,' tboth,,Oificial Records of the; Countyof_,, ;F =" Sonom ands_ being a . or,ti.on of the, Petaluma Ranch in Towrishi s. ?..,a P_ P i and 5 North, Range 7West, _';M D B;. &M , A P 005 0,6,0'-24• and AP .O �. 0015'=060=2.7, COMMENCING at the a esterly terminus of that curve with an arc length of 785:9. feet•. as .described i°h that deed to. Northwestern;Racific Railroad.•Company, a,`cor:poration, recorded " October, 24, 1;9116' in, -Book •345 of .Deeds, at: page 266,4, Off'icia'l.. Records of Son"oma •County," `s'ai"d easterly, terminus lying Ton the,. i southely ',line, on of the Northwestern -Pacific Pacific Railway right of way rthence r from a tangent that bears N;. 76`59"`12"° Wr .along said, �cur,ve to the left with a radius'ro'f 352.;20 feet, through> ;an yangle ;of -1,27°42'', an arc lrength of 784 ;9�8 Ffeet to the northeas:terlyF - " line, of the Northwestern Pacific, 'Railway right of way thence' 4 along said northeasterly line S 2-',4P' a �northerl„ bank8o"f3PetalumanCreek7othence alon30sa�dfnortherlhe y g yr �«. + bank+,N 136r 00 feet, and S. 65°37'4°2 1 E",. 1'25` 00 r ry feetOt-_ thence ll`eavingsaid. norther -ay Fbarik and: running n,. a general , q F3. s e r nortfierly`;direcfion N 50°5"2'1t7"F:;E 421j64Meet, E 44k feet;;'Nq E "1342 34 feet, N°°18'+0"* E t ,1.00 {5.4"°52'52" ry 130'6,5 feet N."61°06-',16" We -"2 feet N.; 9°0.7'-21"¢ W 12�7y 39 : n r =" a. a, .u; w i rt - •! r r o " S feet•=and N. x1,0 {09 03, ".E , r560 70'�feettto first,mentionedr>� ' "southerly right' of way line: thence alongF said southerly':line N 76°59'12"•:W 78':4 8`9,feet to the,Point,=of commencement �S xV CONTAINING 30 616 acres;, more or rless> f TOGETHER WITH ,an' ;easement for road purposes- upon, over andacro: s: the ,fol•lowing'descri:bed. Land:. ', ` N L a'• 'i 4 i; L. i J "S:_ .l 4 •P' L C.. C. y - Y.�; �yy 8 U 6 a 1ti= a A strip of land, 40 feet wide, .lying southerly of and contiguous to the .southerly line of the Northwestern Pacific Railway hi:ght of way, lying easterly of the course described above -with a length of 560.,70 feet,and lying westerly 'of the northwesterly line of that certain parcel of land conveyed to the Cityof Tetaluma by deed recorded 'March- 1'•2, 19'09 in Book 253 of Deeds at page 3,61, Official Recors of Sonoma County. 7 � 3 A �5 •� � _ Sy �. ` M 5t Y r' 1 1 y v B h -,x y .J •.:� 5 , - i Sr i 7 i Y i a x y y N x >Y g v S ! f ^• �*< q j F +R9/ � A'� 1(L Y.1 � c'� 5 � _ t3 1 ` L L. Net Incare To City ('4) $0 $0 $0 '$0 t$.0 $0 $0 $2,000 $18;000 '$34,,000 $51.,000 $72,000: $185,000' $212-,000' (4) Exclusive of>anccme to City from property. tax - ran, er'cial,Project and frcan boats_'berthed at Marina,;' IA !77 7J "•y�' �' / �7r d ayd °y 3 r ;til ti4-3 i I , , e EXHIBIT _B„ EXAMPLE OF' RENT CRF3)ITS ;UNDER T3_12.1 ,2 r x(Dollar figures in Thousands ofiDollars)' 42` CITY OF PETALUMA CASH FLCiW. P1nJB TION r , Marina. and Office Canplex (1) yk.Developer v = Developer ,. Marina Net Fran Marina Marina Rents Due ' Actual (3)s ':Ov it _ CiurLulative Lease- ` Marina b;Opeating -:Marina F Debt Cash 3.. , 2� of Office Developer (Under Developer Year Income/ 2) _. ( Expenses Operations'' 'Service Flow Gross'„ Payments;. Payment) Credit 9 1 $x7800$ 1800) $70,0000 9,00 0 $279000, _ $279,000 $02 $190000 ;0 , ($18;000) 26; .2; ;$182,0 $1560 000 $435,000;0 n $286*,;00 $108,000 s 000 0 r$288,00 9, 000 $475,000 - $114Y001.0' $189;000 $270;000 ._ ($81,000) ',$65,000' - $81y000' $16.;'000 $991.,000 . 5. $321,000 :", $121;000 $200;000 $270;000-` ($70;000)';'$69,000,, ,' $70„000• $1,000 $492,000. :. 6 $340,';000 $128,000 :_$212;000 -' $270;000-_,' ($58,,0.00,)? $74x,000' $58,;000' .. ($16,000) $476,000 7, ' $361;000. {• -$136,;000 ` $225,000.<''. v $270;',000. ($45,;000) `.=$76,000 ; $45,000', ('$33,000) $443,;OQ0 8 $383;000 $144,000 $239;000 $27,0',000 :.:: ($31;000) ,$82,000: $3°1,000, ($51,000)` $392;000; $405;000 p $153;000 !. $252;000 $270',000 ; '',($18-000) ,!$88,000' $20,000, (.$68,;000) $324,000 $430;000 „,' $162;000 ,.: $268;000,,':: $270';000 ($2,000) $93,000? $20,000 ($73,000), $251,000 $456,'000°1 $172;000 ';$284;000 $270;;000-'.• $14';000 $99,000: $20.,000 ($79,000) $172,000 r, 1'2; $483;000 $182;000" .:$301;000 5270;;000 $31,,000 $20,000 ($84,000) $88,000 13,' $512,000 ; n .$193;;000 ; '$319,;000 - x$205;:000 . $270-,'000 $49„000 $-T11,000; $23',000" ".. ($88,000); $0 = 1'4 ', $543;000 '• $338,000 ;t . " $270;000. $68;000 $I17"",000 _ : '$117Q00 $0 $0 $575,;000 ' .. " $217,;000 .$358',000 " $270;000 $88;000 $3'24,000 5124'000 $0 $0 :(1) . - t s 6i Inflation for- Expenses and,'Income;'for Both Marina aryl Offices -(2) .As'sumes .6,0 Lineal -Feet of Berths''and .at 00 . Marina Oceiipancy 30�";First, Year, 70$„Second Year; 100$, Thereafter: "- (3) Minimum Developer Cash Payments are, 20,000,.Per Year in!Accordance witfi Lease" Net Incare To City ('4) $0 $0 $0 '$0 t$.0 $0 $0 $2,000 $18;000 '$34,,000 $51.,000 $72,000: $185,000' $212-,000' (4) Exclusive of>anccme to City from property. tax - ran, er'cial,Project and frcan boats_'berthed at Marina,;' IA !77 7J "•y�' �' / �7r d ayd °y 3 r ;til ti4-3 , , EXHIBIT "C" EXAMPLES OF ALTERNATIVE RENT CALCULATED UNDER, PARAGRAPH 3.4 [,To be attached] �� f %i� q` ' <• � � � (2 :1 f` 'JD` \ -�" i k� � +k 3 5 dl. 4� 3 K' .•oC i M 7 . , 6 $�" n .41 3 p � a:�� � �7• �•r u�5 ,��"� �1.� it- -'S �k ,su .st ,�� a�,.� 4th �i i � � r :. {�� ry - t v'`-�;� •' � ��-'. �t?$rrr �a 4 '�. \ ` "' i'.� . �N� t.� 0 16f; E,kH I BI•,T "'D” RECORDING REQUESTED;BYE WHEN RECORDED ;P.ETURR TO;. Richard Coombs'.. • c/o Coombs Development ' 707 2nd Street, Suite 326 , S'an't'a,Rosa, California 95404 ` GRANT ,.OF 'EASEMENTS.. (Ope'ration 'of Mar-iri&); This :Grant_. ,of Easements; is 'made this day of 1+9.8 by and between the CITY :OF r PET_A•LUMA., & pub`'Iac.Body corporate .and politic ("Landlord") andiF MARINA OFETCE'PARK ASSOCIATES, a Cal-ifornia_Limited Partnership consisting, of RICHARD6 COOMBS and 'BORUE'. `H l Oi' BRIEN ' as General A f Partners .(herein- called "T;enant")•, T A Lg S; N, r ; This Grant, of Eas_'ement is mad'ey and; - 're nd :entered +into with- , t n reference `to 7� h'e. (following "facts"' N, T, s A Landlor3 holds "the'-' title interest in that certain; mar,iha.-Ioca•ied on' those'certa ri parcels ofreaL 'property x loca=ted ire'+ the Getty'of Peta-luma, `County of,,Sonoma,,,Sta te: of California." more' parta'cularly described in.:Ekhibits"1" attached i heret0:'and lncor-poratea ?Herein... Sa'iCl' real `proPerty is_;flerein'., co3;Iect-i've,ly,''referred ,to, as the "Mariria" ; B Tenants have leased from_Landicrd.,on a long term' basis that certa-in realproperty ad3aacent to -then Marina `located in they'Ci'ty of ,Petalluma, County, o Sonoma,.. State of California;, more, part'cular`l`y deseritied'. r`n; Ekhibi`t: !`Z" .attached, hereto and, incorporated herein Tenant shali construct - a commercial pro.ject j.on said real property •and dial"1 own title to:. all mproveinents;' h, located,.r,thereon, which :shall,;.collectively herein. a referred to; as the "Commercial �ProJe_et" The leasing"(of the Comrner'cia°l; Protect and e ownership of •4the improvements is smore particular.l`ya gr' described 'in that certain+ Ground xLease ;dated,= , t F 198_ and recorded 1;98 ;a`s Instrument No ;} in the Off-idial. `Records ,o•fti Sonoma, County (the{ "Ground Lease" Commerc2al Proect th3,t Landbord'';cont`ifnue to` maintains the Mar na,+ <�as open rna spacend to i contnue, to';operate=the ,Marinas for'iboating r• ac tiv It le s;. :..i - is 4 k �.. 1� 444 v. >r,ix.fi 4 t •: �'i.? ., , ' D; Landlord wishes to encumber, the;Marina to rovide r F f p - €' for its o eration in?;, he manner 'Hereina'fter ;set -forth =s ACCORD--INGLY;: in consideration of ti%e'Ground Lease .arid _ for.'other- good and` va�luable..considerat . the receipt and - suf:ficiency oaf• wghich ..is hereby .acknowledged;; _the. parties'•'hereto agree as follows' d M • T 5 ld 1- 1.. RECORDATION: This Grant of Easements shall be recorded 'in the Official Records of, the County of Sonoma at such, time, as, the exact locations of 'the Marina and Commercial Project ,. are determined pursuant t0. the terms .Of. the Ground Lease. • 2>: GRANT OF EASEMENTS: Landlord, for itself and its assigns, successors and transferees; hereby grant to Tenant, an • easement,and,,se,rvitude over the Marina for the purposes hereinafter :set forth subject to the terms of this -document. Said easement shall continue for the term of the Ground Lease. - - Landlord 'agrees to coht-inueto'.operate.:regu'lar boating operations. ' - on the Marina during the term hereof. - 2..1 Use by Landlord: Landlord hereby agrees that •.,'. '- f;or 'the term, o.f. this...Easement'""it" •shall. Operate the Marina as a regular bgatzng and docking operation :and recreational uses which'. ' are compa,ti'ble`.'with the operation of a Marina. Landlo=d or its '.• nominees shall'refr'ain from conStruct'ing any improvements,ther.eon' including '_but not limited- to bu'i-1d'ingq,,. power - lines .or roadways that are not. directly related to+boating or recreational use or -hie _ otherwise needed to;. `supply .service t0 7 dd-j'acent' CoImni6rc`ial ` _ Pro-ject. In. the event Land-lord.shall ;bieach ;the terms of this „ Paragraph ;2 1;, Landlord and Tenant ag,ree that'Tenant•may appl-y to . a• "court'of; competent jurisd'sction, and.'shal1,,; as: °a matter-' df. ' right, Lbe-entbled to intinative :-relief tq require `Landlord to ' COntinuEi operat'lOn': rat _ 2:,2' Tenant''s. Right, to :operate: In the .event that ^•. at any, time during the term hereof.,d-1 rd or it's nominee shad T.' if - cease to operate the Marina andfor any`. other. recreational i faci Y -Pit on the .Marina or in.. the: event that Landlord 'shall fail ` •` `'` •.. to commence operations of the Marin,al orany other-..recreationdl faci-lity., .Tenant, their assigns 'or nominees, shall have the ;right but, mct ,the Ob°il ation to. ;enter' ;Onto. the Mar,ina., without, liability. - - to 'Landlord and to 'Operate' the -Marina• or, ;any and all other _ recreational, facil'ity..,on `their.:own. be11a'lf..-` - In..such event, Tenant, -may collect, any and •all revenues generated. by the operation of „ the; Marina 'includi"ng; any and a11, profit. Tenant -;may' cancel any, contracts with 'personnel 'under contract ,With.liand'lord i'n: connection' with -the Marinas to the extent said contract's are cancellable and Tenantmay enter,. -into new contracts to operate the at their discretions Landldrd:"shall indemnify, defend ,Marina; and, Yiold Tenante''free and harmless. from an and all: lzabrlit that ! -•,� .` �r' �r 6_h;may ;ariryse :ori be aired lyeindir-ectly ~connected with Landlord,'s p .v, rrr ;t v`tx operations of `they Marina or :•any ac,t or=omission which +occurs �, Y w M whole or nkpar�£,�prior to-, the, time that' Tenant takes wove control{ �k ofd the Marina "� n exerci,§er their Paragraphs �, : Tenant; may rights under this F 2�+2by g ving�Landlor:dwritten no;tice,' n tkie"manner sp,eC3.fled'in i` • • '`� } c" s • R the-. Ground: Leage If any dispute: arise between Landlord and - i 5 Teriant. "over the rights g afted bythis,.,paragr.aph 2;; the. dispute shall be submitted to arbitration,in.the manner described in -the 'Ground,.Leas . Tenant -'s remedy, described in this,. _Paragraph 2..2,: is not exclusive`..and' is in add"itlon.'to .a11 other rig Yits and'-remed'ies., ' Ten -ant may pos§e'ss at law or i•n equi'ty-.. ` '' a'•' Notwithstanding 'anyth'ing stated above. t0'. the contrary,. - in the event, the Ground Lease ,is'subdivided in the 'manner �escr-ikied :in the Ground Lease,, then the named Tenants hereof 2•_ 1628 (Bor:uebl'Brien and RichArd Cbombs or any partner ship, 7enture or- .- corporation- in, which they own. an - intere'shave-shall personally� hzv an the' •first -,ri4ht. (but not' the obligation), to 6xerci'se the remedies described in thi,b`Par 21 provided- they, still. ag-rap ;hold' ,an interest imthe Leased' Premis. 3; elfAR'ACTERI OF 'EASEMENTSr'- The easements granted hiE�kelhare appurten.ant to.- the Commercial Prbject or, -any'- on- e= br. subdivisions thee , eof'as dominant te'nement more and Ys a se-rvitud6; on the 'Marina,.. A.. '-,DEkRIP.T ION, ,AND_, LOCATION'` OF., EM-ErAtNta- `Th`e easements' -;and 0erv,i°tudes igraiifed, herein .are for. the -co ''-in ei uat,`ion of the Ma�etin,a operat-i n,.and area located on the Marina' r" J60e, :pdrtlcularly 66sbk "bed,in :Ekhibit 5"l - EXCLUSIVENESS dF'', Landlord ' dgkee s,� th;a"t" the; shalt EASEMENTS�i' a -ft -hot. grant an, easement,.over—thel 1�arina- to'any. oth-eir, part.�,- pr­partles!:.or f-jrfor, t , he 1 necessary.. 4eratdon'ofi-t 'marinaor• ,adjacent .Comm6rci:al_Pr,-03,ec, 6 CONSIDERATION,: Th'e' ea sbmdn�ts',dhd, sdY.,%i1-tiides granted -Afit6d 'hereim, are part'. of ' the, �consideration " g i V'eH-._the -" for,, Ghbii Lease :L `;inst il" ument-contalms;the -­�.. ENTIRE f­-A�GREEMEt4T '-Th�­s. 7— 1% parties eretb:xe, ating e, -E �betw,66n the �par,' h a representations 0`the tl eiii., reserve n 7. - e em 6h, rights , herein modifications concerning this 11s" i'4trunier�tshall be :of-fb -'an �nb'_., X ce , �d a,l 1. "subsequent mods catfo Ir w of frtting, i-Wign d' b y parties.. bINDING�'_llr !T`ihqs- ihstrWnent! shal,l bin- And, inure 'to 'the benefit p rep �:Eesent,&:E-ives.; _ , Pi7 �eres respective s,: pefs�d�al-*, uc es-s'o'- s cr r!;� and ass�-.i qnS, of, the ,,parties -heretd,..,,_-' IN' WITNESS =+WHE'AE6P,,�"-the;.'parties hereto have dk,6cute& , EM a. s'instrument- %on, the day- andyear first written: above.'" T'ANDLORD:1 - CITY'" OF,PETALUMA BY- �6 if µT. iTENANT N� A MARINA .OFFICE PARK ASSOC q a, -1-f o r -n - fa- ,.Limited 8 By :Gen er(&1Par. ther,,- P Y.: _B­ JBORUE H!. Genpraf Partner. "A' V- 4 f + J P tj EXHIBIT "�&" RECORDING"REQUESTED BY: WHEN RECORDED RETURN' TO: " DECLARATION, OF EASEMENTS, COVENANTS, AND' RESTRICTIONS' - �. ''• < CONCERNING DRIVEWAYS;; PARKING, AND ACCESS ' This Dec,lara:tion is executed' .this d'a of y, 198_, by,. and: between' the CITY OF"'iPETALUMA, `a : public body'- corporate andpolitic (he reina-fter referred o as . - "Landlord'.",) and =MARINA' OFFICE PARK.ASSOCIATES; a,, California: Limited, ;Partnership,: consisting -,o'f 'RZCH'kRD, COOMBS;.;,and ;BORUEH. " O'BR n x IEN -as Generaul Partners, (hereinafter re�ferred;� to as "Tenant .) - ' R E. C I T, `A L,Sn {� This D`eclarationYis made and entered into with" ! x ° references to the following facts • f! i j -A Landlord hollds the.t fee tittle i'nteres't in)=.that certain mazIna located on' -those certam,� parcels of real F t _•_1"oc'ated i -n° thea'CiFty_•,of `Pe,tasuma;; County: of ..Sonoma;: State; of Cal -forma; more:. par.tcularly;descr.ibed' in'Exhibit: "1"',.'a•ttached ; : J hereto and incorporated herein Said •real property, is, herein:,. : y col'lectivel referred; to "as the .'=Marina"" B. Tenants have -Teased'` from: Land lordon-r a- long term' " basis, "that• certain''real pro ert ad acent to- the., Mar, ina' .located P" J P Y'{ : m tfie Cit of Petaluma Count of Sonoma Sltate,o a:, more. art• cularly',describd myExhibit.;=' V 'attachef heretorn P d hereto and, •., _ incor;brated,herein ,- Tenant shall construct. amcommerciaT.project a f on said real -property and : shall. own ti.tle> oto- all'"improvements - e located thereon which'shall collectivel:y herein be ­,referee toKas the'"Commercial"„ProJect” -RThe leas mg, 'of the Commercial; ProJect -' and :the ownership ofy `the improve mentsr, ?s mores art culaT'r1, S- P Y s . - z described' ;in that cer.tam Ground Lease dateda: / `, < 198 ''and°recor`,ded r 1'98+ as Instrument_No the"Off cial,;:Records offSonomaf.Coun'ty (the-�"Grounds ! `,The Marina and tlie`t Commercial. Proj;ectx together shah: be ' to as the* "Real Property:<" 7n° �refe'ired r6 �� {.: rf.�-s.r -..s. ati •, ,: .. #. xC Land1or3L shall n co'struct� and a ,mi'ntan parking F•;yyfacs'1itiEes,on the Marina and Tenant "shal`1con'struct �andmainta"ins r ` r ;'k ^x ;` a j ptarkngk-facilites`on4ttie�C'ommercialK PWc a}� roJect.;', The>>•partes hereto '�Y f f ;agree that'.it, IWKessenti`al for th'e option of"`the Commerc al N r °� y = ah'atthea parking located �on the.Marna be used by�users s on th'e Commercial Project and that` its r'sg essentia-1" for the { t a ,.Y ,:. operation^_•of the'; Marina that the; parking" located oni the "Commercial ProJect kie`. used by users of .the 'Marina;- ,4 x r, ? The part'_* h ereto ''d'esire; td• provide. � for ;the ;common .- use of the., parking,- facilit=ies ;located :on the Marina and the •- Commercral'Pro,je'ct im accordance with -'the ter` -mss, hereof., . y ' � F� , qk °yam " r >.. t t 1- L ki •9 Y'T'R t 'r ,. to `4 ! i 3 162 u jl,- �, (Attach .acknowledgmentsand Exhibits "1 and "2,"] i �l � � t�- i �';� v.s� --� i� r � "� c t t r ...1 i • • i � � y :� Od � 'dl- d �_ + 'I � Li > * g _.Y! . Y 4 - • x THEREFORE, Landlord and Tenant hereby declare that 'the Marina and the Commercial P"ro.ject, and each of them, shall be held:, transferred" encumbered, used,, conveyed, leased and occupied subject to the covenants, cond"itions, restrictions, easement's., and sights her.e'in set forth for the use ,and benefit cI the,Mar na and -Commercial P'rojeet and.each part thereof. All of th"e iimitations,'eas'ements.j uses; obligations, covenants, restrictions and 'conditions 'stated`hersin shall run. with the 'Real Property, shall be, binding; on Landlord and Tenant and on all parties 'having or acquiring any- Yight,,, title or interest in the desc'ribed,Real.Property or any`pa'rt thereof,.and shal'l,be, for the benefit of each owner tenant or -occupant of any portion -of the Real.";Proper,ty: or any other: interest `tkierei:n, .and shall inure to the )benefit :of "and be•.bind'ng upon' each -successor in i'nter,est of` the owners thereof.; Each and al'l of:'the "said, Yimtations, easerents., uses, ; obl=igations, cove'narits,- conditions and: restrict ons, sh°a"11,-be 'deemed• to;'be,,; and sh'a!I1 .be construed as • equ_itable ser`v:i.tudes;, enforceable by a_ny -of the owners or operators of, the Marina-.on—the ' 'tenant- 'or. subtenants of -'the Commercial Proj,ect,,; against". any :o`the.r owner., tenant., or occupant j of the "Marina or the Commercial; Project. „ 1, Creation of•Easements: There are created ,for"the mutual -"of, the Marina, and;; the, Commerc-i'a-1" Project, ands .each: i o`f them, the following mutual Iand reci:procal..easements: - �= - n ," -. '(a) ,. ` :Easements for 'Common "Driveway.;: The Marina, ad- the°"Commercial` Project as the' dominant tenement shall .have, and there is; hereby granted anon=exclusive easement'appurtenant.to the,Marina and the Common;_Eroject for vehicular and non -vehicular ingress •to and, egres-s from the 'Mar••ina. over the Commercial Project. as, servient tenement .'and from the eommer''cial.`Project.and the. " Marina as servient over and upon, each; driveway, parking, area,, access .rout'& 'and "other portion --".of the Real Property- reserved for -, vehicular t ;affio'or..parkirg whether' in existence on the date of recordat.ionhereo•f or•constructed at"any time or times!hereaf.ter. The= Marina and :the Commerc-al P.ro'ject; as the servient tenement, shall be subjec:f 'to' "the easements for- ingress! and egress enjoyed ' ursuart to the. P,reced'ing sentence..Y b'_.each of said P•ro -erties,r said. easements ,exist for •tfie •"term of 'the Ground ;Lease, acid- r -shat-1,, al extensions or renewals thereof:,: .r (b)` Parking Easements ; rThe Marina .and the - Commercial Project ass the dominant tenement. shalYl ':have ,F Wand tY ere '' *,- is: N, eby-`'gran: d, a=non exclusive easement -appurtenant to then " 4 Marina` an&, the Commercial P o3ect for ;parking purposes `for.•users of the Marina„upon the park=ng i facilties located or to"zbe >° k” iN located af.any time or times hereafter .on the Commercial Project `g ' as servient tenement°yand fo'r uses of commercial P,roJect; upon _they '- parking faciilities located or to�rbe located at any,;time or times ' ` hereafter -on the Marina as Aservi'ent tenement-:: The; Marina and"' e --- -. Commercial='Project, ra's serv.ient."'rtenement,,, shall be subject to. the - ¢ easement.,for parking .enjoyed by_ each 'of said', properties ,pur"suant to the preceding sentence :" 4For.purpose`s of :this' Paragraph •1;(b), "- '' parking ;faci.lites shall ncludeany and all;.=par"king lo ts and" a areas whether" -covered„ or"uncobe=ed located` on 'the 'sRea , 'Property.. i. (c), Secondary, Easement's': • As a, part of,. the easements above-described,, 'there shall 'be secondary easements fo. upkeep„ mai-ntenance,-repair and,replaceinent of the driveway and F 62 , r. �Pr parking; surfaces and., for' .access,, ingress and egress -in-connect'ion:" therewith by all equipment and personnel required" for the proper, ' enjoyment :of said secondary easements•: 2 User of Easements: '';The easements for,°ingress, and egress 'above-descr"ibec ,sh'a11 'be used Ib y .the operator of'`=the Marina and- by `the tenant or' tenants of the. Commercial Project, their employees,, guests,: inyifees, lessees,'. sublessees,, and - assigns, tor -the pur=poses ,above-described; ;subj'ec:t•. to "the fo11,owing restr ctions. There shall be 4no parking o,f motor vehicles upon•"the portions :of the Real',Property °wh'ich are designated; as 'driveways, and. no� other obstr'uc;tion,to passage along - the drive s of an nature whatsoever--' whether. : � WaY Y. r, partial"or ,- complete,, temporary or permanent,.: P.rovrided,, that in connecti6n- °. with;maintenance.or repair- of improvements located upon any portion ,of, the Real Property, or` in of .emergency ginvolving " _ease life, or, ro er't service: ,and°• emer enc vehicles; ma be asked: temporarily -fora a period not to ;exceed` -418 hours,'upon fa, drivewayf in. such manner-, as to�obstr-uctpas'sageto the ae_ast extent. fea bre si no case so ;as to violat'et any; ordinance 'of the ' fa City° of P a"talism i ai = 3 Expense _of Ma°'intenance„ Re air°;and Replacement of ; Driveway Surface; ,AIT costs, and expenses of;`.main taining„ repair -ng, replacing the driveway and parking surface of;.the i Marina Driveway'shall be borne by •L'an&lord, ^and .aT'1 costsr and^6 G' expenses 'of mai`ntainrng, repairing and' replyacing the driyeway� sand , r - par --inc surface" of the Commercial: Projeet stalls be. ,borne by Tenant subject ,o the 'terms, of t'he, Ground' Lease.. ';;P,rovided that if Landloid,% it's employees or independent contractors'wil'lfu`lly h ' . ` cause more; than. 'the usual -wear' and tear:•o'fd the imp_r-ovements. located. on: the 'Commercial P-ro�ect°or, -f"Tenant, thei-r employees 1-. or independent.•'contraetors .willfully; cause, more, •than .usual -wea-r and. tear, to the: impr=ovements "loca=ted 'on. the rMarina, the rcost, ;of repairing?,such'addit-ion damage shall. -be borne solely} by," the par y, :- •_ 'who cause, ;'such•d'amage. 'Landlord.;and Tenant:;both. for, themse3ues y and 'for any •future,operator., tenant or subtenant of :the, 'Mar.ina; ' and+/;or 'the: Commercial P;roj,ect:pay the "amounts allocated to it;" or them•�underf the two preceding -sentences,,, :.Any 'd sp, t' concerns=ng the responsibility for costs and,'rexpensues of: maintaining`; v # PrP „" F: av arepairinfgr,� and replacing said vm improeents shall `be submiatted_ to °" G ,arbitratlo t x x n inn the s'ameFmariner as provided iri' Paragraph 5tbelow, b �s and the partitessshall ,be bound by the :decisions of 'the ors u ! b ya err jarb.iFtratAli 4 Use oft Real Property The easements. herein creaitedv shall ber u"sed win: con7,unction with .any _,and, ali' property perms+ttedf N" usesr'o-I-.,t he Rea=1'Property including bufs,not Limited to any and= •, ,aa 3 _� + a x k _ )r .Y y a f i' Sz. s.1 , d J r .. ,ova } ti. J" T}fit ' alle subdivisionsl-aof they Ground Lease ° r n � , -.a �' '? '" � . � v 'y, 'k ,err U Y'� �.b.. '.• o r 5 . �, + } e s..- ,..w 6 .. r r d y'�, rV � a" � . t � r ."�'� r sit 9" � ` a, f -. "' `.,' k ` c ,f& - � �. 7 4 -. r ;x•"' 4. + s 4. ; r? .. �, Sf Decisions,, Concerning User, Maiitenanee, h2e air and��i p. Replacemeri,t, 'Arbitration All decisionsx re a'rdin :..theuse of the �'LL g. g. 1 � 4• S c , �� „ � •N ,easemen.ts" herein:, created, and the, maintenancel, repair" and 3 R x ay=- repylacement of the driveway ,and', .parking. surface shall be' made .;by aF< = mutual tagreement lof Landlord ,on one handy and ,Tent or nl lther> p ' a e r` J ;• • �� S": event that. the G ound;Lease "is ,subdivid'ed by ,'these -,tenants whop ; n'p F rent,. a ma_�;ority °of the: rentable 'area of the ',Commercial" kPro�ect" on„ -, the;other.':hand, or, rf they cannot so -agree,, +.shall�bemmade b}= binding• arbitration as, hereinafter• described,... e €'�' hC• a i `� z R t � ! i �'•' S `-. 'Tg F ' � = y 3, fn c— Either party may, at 'any "time elect by wr-i:tten•notice to the other party to invoke arbitration of any dispute.arising • under the 7proVisions of. this Decl_arat'ion, Said notice shall designate an arbitrator satisfactory to.the,party giving notice. W,i-thin. five. (5:) working: days from the :date :of such notice, the other party 'shall either :(i) by written notice give their consent to 'arbitratiorr before the: 'single arbitrator- so selected', or (ii:) by written notice designate a, second' arbitrator'. If two ' arbitrators are so designated by the respective sides of the •: dispute, the two, arbitrators sh`al..l select --a third_ 'wi'thin .five (.5•) wor-king• days 'there'after,.The :dispute shall then be .submitted to the ar)Aiiatbr'(.$) who Shall 'hold - a. hearing; `and' consider all _• y 'asp'ects o'f: the dispute at .a' ..time <to b"e de`s'ignated by, the ' arb-itratord(ls,),, The arbitrators shall;r,ender a decision within fi�•ft'een. (;15): days after submission of;,,the dispute arbitration, -to and their ,decision sh'all,'8_ binding upon all' parties, in the absence q'f'fraud or: gross, abuse. of discretion amounting to fraud. - The arbitrators ,shal`1 be authorized to, ,gra_nt. relief in the natur'e', r 611 monetary,:damages and ,in the nature, -,of equitable' relief in - con'necton with use, maintenance; r.epair,.and,replacement•of the easemerits,)hereiri•created. _ Reasonable, fees for the. arbitration- `. shall be assessed."by •the,•.arb'itra;tors, 'and-`sh'all be pai:& as determined- by the arbitrators: -This shalFz be construed: ,as an. arbitration agreement with'i'n the?,provisions..of, the California. - Code;, of Givil .P,rocedurer,, 'and the: partie's here for- itself` and, themselves and.all,suecessors in interest to'all or any part of the,'Real Proper-ty or any, °merest therein incorporates ,here iii, all. • .' . of such provisions- and specifically. incorporates' •California Code of Givi1'.Procedure.§1283 05=. Each p ty, ag.reesi to abideFby. the terms and provisions. of tEis Paragraph 5, and to abide by the,. <' dec'isi'oh,pf the arbitrator,s.of.any. arbitration conducted hereunder. b.. Notices:, Unless otherwise. specified in writing to the other: party - in; the manner se.t forth herein-, the address of each party, for'all.purposes shall be as follows-. Land'lord's; 'Office' of the CityManager Gaty Hall 11 Engl-ish .S;treet„ h Petaluma, Cakliforni:a.9'4`952• - { Tenants Coombs Development x1,00 E Street; Suite 20 2° . u e ., �1 Santa Rosa, California 9;5404 S Any ngtices required to be given hereunder shall be "-,-sen yr-, by registered or ;cern=fled , :-return arecept requested, u to �s�uch addresses, wifh copies�.to each"party;:; ji Service;,;of wri:tten�i. notice shall be ideerned to :15 ffective twenty four (24�)'shour ;� s ? �• shown on the' receipt issued 'byethe,- post, of -ice, for , r a after the° date t ,. , " . r' such" registered ;or ¢e'rtifred maYil = 7 Attorneys' Fees'In-'the'-event' that. ;any' party,; . institutes;: an action;at law. or ity r equto •'enfor.ce or --interpret, ' provislons�.o-f 'thi's DecTaratTon, to `compel arbitration., or to enforce ,they awarded' of arbitra"tors, the, prevailing party or• parties in such°action shal_1,be entitled, to an award of, reasonable�.'attorneys. ,and experts fee"s and courts costs .in addition.. t9 any -'and, all. other remedies awarded, by the- court. 0. 1:6'2 8' r. i ?,i: 8. +Binding?: .•Ther terms and provisions of this a Dec=laratidnr shall i-nure to.'the benefit of,; and,be,' binding upon., the ,parties heretbland to their guests; invatees,-';lessees; sublesseesp , ,•.grantees contract urchasers successors, ;estates, adm%nistr-a'tors,. executors;, devisee,s,; heirs; ass-igns., arid' subassigns.. ' - 9,. Confhiets In the -event -any eonfli2c`t exists" _ between the terms, of thin `Declar tion on:" -one, band, and then te_r_ms. of the Ground, .Lease (-qr, any Subd''ivided'Ground Lease entered . F pursuant 'fo th•e,',terms'- thereof) on the .otherhand.;,_, the terms. of; .. thds•.D'eclaration shall • 10 ;Further ;Assurances: Th:e, parties ,here,to agree'! to execute ;any and;,;all further agreemeTlt:s,.,iIlst-ruments.-or. 1 time 6 nstructions at.any time •or- s' hereafteY ;whYch °may •be> necessary -,or convenient to, acbomjJ11sh' the purposes. of v th s • Declaration in1. cluding- but. not .1`mted`=to any. docuiiients'. requested b y„any `title insurer of_ tYi•e: Commercia'1 'P.roject 't'o ';nsu're ,: L' rights+,granted `to Tenant .over thea Marina as' herei-nabove' set r° forth EEffect ve Date The Effective°Datefof th-is 1 "Declarationshall be, deemed -'to be; the '.'Effec.tiue Date" o -f the GroundfiLea9e asi': t*he rea:nl. 4sp_ecified4" a IN WITNESS LJFIEREOF, the?' parties , t hereto execute, hisY • eclaration on�jthe-,da'.tefirst set forth ab"oue D r -LANDLORD ;C�ITY'OF PSTALUMA,,,.`a u :p, blic; body;- corporate ,and P. : Attest'4 :Joseph Forest,. P City,'''Attorney u. .y t Jp r + S .,r~- i t ;• �e �. a- 1 ,3. r . " fit . Auditor : } s x - i• �;^ Ia y t _ ' "t ,+. 7, F oi•. `S. ^, �.� •F t .� t-`yir u.,' e ? + t _ �• r c TENANT `r, MARINA -'OFFICE PARK ASSOCIATES,, r " Califor'nia Limited, Partnership,' 1 k yC N E .. k t !: f y"• y: 1 F .. +. i- $ �1 d 4 Y J i �•' .� V t ry Q S 4 J •,AI'+ Y' NL -P7 t �'� j x.. F >- By!r r ,,,, 'A<�a.' i ! }�° COOMBS,, sy r¢ ener• - s`fie,. 2, G" �d i tlr L - � 4 - � + +xr 1 - Y Rte• � " 2 k• � J' E'" , 1. F a:a BORUE H O'BRIE , r General Partner: .c y t tach Exhibits �T 1 �+ 'and"':2­11 - - °- ` . r • t '� , g 4 i � iJ" ' � r �T # r• 'S � C � k ' - yE � J+1 M i'1 � <. M .y4.l �. - �' 14 ti� ' On this: d'ay.of` in,the year before me„ , a Notary Public, ;State. ,of California.; duly.. conn nissioned and sworn., personalhy appeared RICHARD COOMBs.;, personally. known to me (or - proved on the -bas s of satisfactory evidence),to,be the person " whose name is subscribed to the within instrument, and „ acknowledged to me that executed -the same. IN WITNESS WHEREOF,, I have hereun•to,set.my hand and ;. affixed: my ,official ;seal in the Countyof i on the date' set forth, abovein this cert;ificate;., Notary Public`,: State'of California y• My Commission -Expires r _ STATE OF.CALIFORNIA'. Y.SCJ.. _ 1 COUNTY ,OF` On t - - day of° ; in;. the year ` hist . _ ,;- before: meEj y -a-Notary ' PubT'ic, 'State of: California; duly.comm'issioned and sworn, ;.. er-.sonal`l; a eared ';BO ;O;' BRIEN p, y, pp, personally kn"own -to.•me (or proved on. the basis of sat'sfact;ory evidence) to ;be the.,person Fihose name is, subscribed ;to• --the :w,ithin` i trument., and4 " acknowTed'ged to'' me, that executed,' tfie same>,,. THE S IFIHERE :IN W,I S OF, I have .,hereunto se't,'my hand and` of -fixed my. official ,seal.' in. the . Cou:qty of. ". " - on the date;set"forth, above in th'is': certificate _. t Ncta'ry;Public•,, State,—of Californ-ia { v- My''. Commission,. Expires:. i. F;' I� 1 f) {)'