Hansen Natural Corp. Contracts
Sample Business Contracts
California-Corona-2378 Railroad Street Lease - 27 Railroad Partnership LP and Hansen Beverage Co.
Partnership Forms
STANDARD INDUSTRIAL LEASE
Dated (for reference) as of April 25, 1997
1. DEFINED TERMS. Each reference in this Lease to any of the following terms
shall include the data for such term as stated below with any additional terms
used in this Lease to have the meaning and definition given hereinafter:
TENANT: Hansen Beverage Company LANDLORD: 27 Railroad Partnership L.P.
a Delaware Corporation a California limited partnership
TENANT'S ADDRESS: 2401 East Katella LANDLORD'S ADDRESS: c/o Investment
Avenue Building Group
Anaheim, CA 92806 4100 Newport Place, Suite 750
Newport Beach, CA 92660
DESCRIPTION OF THE PREMISES:
FLOOR AREA OF IMPROVEMENTS: Approximately 66,700 square feet indicated on
Exhibit "A". including +- 3,400 square feet of mezzanine office
Street Address: 2378 Railroad Street, Corona, California 91720
Term: Eighty-nine (89) months
Commencement Date: August 1, 1997
Rent: Fifteen thousand dollars ($15,000) per month
(see paragraph 39).
Taxes, Insurance and Maintenance Reserve Deposit: $3,270 per month
Security Deposit: $25,000; first month's rent to be prepaid at execution hereof
(see paragraph 40)
Insurance Amounts: Bodily Injury per Person Three million dollars
($3,000,000)
Bodily Injury per Occurrence Three million dollars
($3,000,000)
Property Damage One million dollars
($1,000,000)
Tenant Improvement Plans (approved by Tenant and Landlord): See paragraph 41
Tenant's Construction Representative: Rodney Sacks
Uses: Warehousing, packaging and distribution of consumer products/corporate
offices
Tenant's Share (if multi-tenant) of: Real Property Taxes 43.2%
Insurance Expenses 43.2%
Maintenance Expenses 43.2%
2. PREAMBLE. Landlord hereby leases to Tenant, and Tenant hereby leases and
accepts from Landlord, that certain real property, building area, and Tenant
Improvements more particularly described in Paragraph 1 (the "Premises") for the
Term and upon the covenants and conditions hereinafter specified.
3. CONSTRUCTION AND COMMENCEMENT.
3.1 CONSTRUCTION. Landlord shall construct or cause to be constructed the
building and improvements substantially in accordance with the Tenant
Improvement Plans. The Premises shall be ready for occupancy on the date upon
which the work of construction to be undertaken by Landlord has been
substantially completed ("Ready for Occupancy") as determined by the issuance
of a written certificate by Landlord to Tenant certifying (a) that the
improvements have been substantially completed in accordance with the Tenant
Improvement Plans, and (b) the date of such completion. Landlord shall
complete, as soon as reasonably possible, any items of work or adjustment not
completed when the Premises are Ready for Occupancy and such defective or
omitted work undertaken by Landlord of which Tenant has given Landlord
written notice within thirty (30) days after the date the Premises are Ready
for Occupancy. The Premises shall be Ready for Occupancy not later than the
Commencement Date; provided, however, that the Commencement Date may be
extended for a period of time equal to the period of any delay encountered by
Landlord affecting said work of construction because of fire, inclement
weather, acts of God, riot, governmental regulations, strikes, shortages of
material or labor, changes in the Tenant Improvement Plans, or any other
cause beyond the reasonable control of Landlord.
3.2 COMMENCEMENT. The Term of this Lease shall commence upon the earlier
of: (a) the Commencement Date, or if the Premises are not Ready for Occupancy
by the Commencement Date, the date upon which the Premises are Ready for
Occupancy, (b) the date upon which Tenant first occupies any portion of the
Premises, or (c) the date upon which Rent would have otherwise commenced to
accrue under this Lease had Tenant not delayed in the performance of any of
its duties or obligations hereunder or had not otherwise interfered with or
caused a delay in the performance of Landlord's obligations hereunder. If the
work of construction is not completed within one hundred twenty (120) days
after the Commencement Date as extended pursuant to Paragraph 3.1, the sole
remedy of either party shall be the option to terminate this Lease by the
delivery to the other party of written notice of such termination within ten
(10) days thereafter.
4. RENT; NET LEASE. Tenant agrees to pay Landlord at Landlord's address or at
such other place designated by Landlord by written notice to Tenant the Rent,
in lawful money of the United States, in advance, without demand, off-set or
deduction, on the first day of each calendar month of the Term hereof and in
the event the Term commences or the date of expiration of this Lease occurs
other than on the first day or the last day of a calendar month, the Rent for
such month shall be prorated. This Lease is what is commonly called a "net
lease," it being understood that Landlord shall receive the Rent free and
clear of any and all impositions, taxes, liens, charges or expenses of any
nature or kind whatsoever in connection with the ownership and operation of
the Premises, including reimbursement of an asset management fee equal to two
percent (2%) of the Rent. If Rent is not received as provided above, a late
charge shall be payable by Tenant as provided in Paragraph 13.4. In the event
that a late charge is payable, whether or not collected, two times in any
twelve month period, then Rent shall automatically become due and payable
quarterly in advance, rather than monthly.
5. DEPOSITS.
5.1 TAXES, INSURANCE AND MAINTENANCE RESERVE. Tenant shall deposit with
Landlord each month the amount set forth in Paragraph 1 as a reserve to be
used to pay real property taxes, maintenance expenses and insurance expenses
on the Premises which are payable by Tenant under the terms of this Lease. If
the amounts deposited with Landlord by Tenant under the provisions of this
Paragraph are insufficient to discharge the obligations of Tenant, Tenant
shall send to Landlord, upon Landlord's demand, the additional sums necessary
to fully satisfy such obligations. All monies deposited with Landlord under
this Paragraph may be intermingled with other moneys of Landlord and shall
not bear interest.
5.2 SECURITY DEPOSIT. Tenant has deposited with Landlord the Security
Deposit set forth in Paragraph 1 above as security for Tenant's faithful
performance of Tenant's obligations hereunder. If Tenant fails to pay Rent or
other charges due hereunder, or otherwise defaults with respect to any
provision of this Lease, Landlord may use, apply or retain all or any portion
of said deposit for the payment of any Rent or other charge in default or for
the payment of any other sum to which Landlord may become obligated by reason
of Tenant's default, or to compensate Landlord for any loss or damage which
Landlord may suffer thereby. If Landlord so uses or applies all or any
portion of said deposit, Tenant shall within ten (10) days after written
demand therefor deposit cash with Landlord in an amount sufficient to restore
said deposit to the full amount stated in Paragraph 1 and Tenant's failure to
do so shall be a material breach of this Lease. Landlord shall not be
required to keep said deposit separate from its general accounts. If Tenant
performs all of Tenant's obligations hereunder, said deposit, or so much
thereof as has not theretofore been applied by Landlord, shall be returned,
without payment of interest or other increment for its use, to Tenant (or, at
Landlord's option, to the last assignee, if any, of Tenant's interest
hereunder) at the expiration of the Term hereof, and after Tenant has vacated
the Premises. No trust relationship is created herein between Landlord and
Tenant with respect to said Security Deposit.
6. USE.
6.1 USE. The Premises shall be used and occupied only for the uses stated
in Paragraph 1.
NET NET NET
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6.2 COMPLIANCE WITH LAW; PRIOR RESTRICTION. Tenant shall, at Tenant's sole
expense, comply promptly and continuously with all applicable statutes,
ordinances, rules, regulations, orders, restrictions of record, and
requirements in effect during the Term or any part of the Term hereof
regulating the Use of the Premises. Tenant shall not use or permit the use of
the Premises in any manner that will tend to create waste or a nuisance.
Permanent outside storage shall not be allowed without prior written approval
from Landlord under any circumstances.
6.3 CONDITIONS OF PREMISES. Tenant hereby accepts the Premises in their
condition existing as of the date of the execution hereof, except for those
specific Improvements which Landlord has undertaken to provide in Paragraph 3
and subject to all applicable zoning, municipal, county and state laws,
ordinances and regulations and any covenants or restrictions of record
governing and regulating the use of the Premises, and accepts this Lease
subject thereto and to all matters disclosed thereby and by any exhibits
attached hereto. Tenant acknowledges that neither Landlord nor Landlord's
agent has made any representation or warranty as to the suitability of the
Premises for the conduct of Tenant's business, and that Tenant has made such
legal and factual inquiries with respect thereto as it deems appropriate and
has relied solely thereon.
6.4 HAZARDOUS MATERIALS. Tenant shall not cause any hazardous wastes,
chemicals or materials (collectively "Hazardous Materials") to be used,
generated, stored or disposed of on or about the Premises except with
Landlord's written permission and in strict compliance with all applicable
regulations and using all necessary and appropriate precautions. Landlord's
permission may be withheld for any reason and may be revoked at any time.
Tenant shall be liable to Landlord for any and all damages caused by Tenant's
failure to keep, store, use, maintain or handle Hazardous Materials on the
Premises. Landlord shall not be liable to Tenant for any claims, damages or
losses due to the effects of Hazardous Materials on the Premises that is
caused by owners, tenants, licensees, and invitees of other properties or is
not directly caused by Landlord. Landlord shall not be liable to Tenant
regardless of whether or not Landlord has approved Tenant's activities.
Tenant shall indemnify, defend by counsel acceptable to Landlord and hold
Landlord harmless from and against any claims, damages or liabilities arising
out of a breach of any provision of this Paragraph 6.4.
7. MAINTENANCE, REPAIRS AND ALTERATIONS.
7.1 TENANT'S OBLIGATIONS. Subject to Paragraph 7.3 below, Tenant shall
keep in good order, condition and repair, the Premises and every part
thereof, structural and non-structural, and all adjacent sidewalks,
landscaping, driveways, parking lots, and fences located in the areas which
are adjacent to and included with the Premises. At the cost and expense of
Tenant, the landscaping shall be maintained by a professional gardener and
the exterior of the building shall be repainted at least once every six (6)
years.
7.2 SURRENDER. On the last day of the Term hereof, or on any sooner
termination, Tenant shall surrender the Premises to Landlord in the same
condition as when received, ordinary wear and tear excepted, clean and free
of debris. Tenant shall repair any damage to the Premises occasioned by the
removal of Tenant's trade fixtures, furnishings and equipment. Tenant shall
leave the air lines, power panels, electrical distribution systems, lighting
fixtures, space heaters, air conditioning, plumbing and fencing on the
Premises in good operating condition.
7.3 LANDLORD RIGHTS. If Tenant fails to perform Tenant's obligations under
this Paragraph 7, or under any other paragraph of this Lease, Landlord may,
at its option (but shall not be required to), enter upon the Premises, after
ten (10) days' prior written notice to Tenant (except in the case of an
emergency, in which case no notice shall be required), perform such
obligations on Tenant's behalf and put the same in good order, condition and
repair, and the cost thereof shall become due and payable as additional
rental to Landlord together with Tenant's next rental installment.
7.4 LANDLORD'S OBLIGATIONS. Except for the repair of any latent
construction defects in the structural bearing elements of the building and
the obligations of Landlord under Paragraph 9 and 14, it is intended by the
parties hereto that Landlord shall have no obligation, in any manner
whatsoever, to repair and maintain the Premises nor the building located
thereon nor the equipment therein, whether structural or non-structural, all
of which obligations are intended to be that of the Tenant. Tenant hereby
waives the provisions of California Civil Code Section 1941 and 1942 or any
related or successor provision of law which would otherwise afford Tenant the
right to make repairs at Landlord's expense or to terminate this Lease
because of Landlord's failure to keep the Premises in good order, condition
and repair.
7.5 ALTERATIONS AND ADDITIONS.
(a) Tenant shall not without Landlord's prior written consent, make any
alterations, improvements, additions or Utility Installations which for
non-structural alterations and utility installations shall not be
unreasonably withheld in, on or about the Premises, except for non-structural
alterations not exceeding ten thousand dollars ($10,000.00) during the Term
of this Lease. As used in this Paragraph 7.5, the term "Utility
Installations" shall include carpeting, window coverings, air lines, power
panels, electrical distribution systems, lighting fixtures, space heaters,
air-conditioning, plumbing, and fencing. Landlord may require that Tenant
remove any or all of said alterations, improvements, additions or Utility
Installations at the expiration of the Term, and restore the Premises to
their prior condition. Landlord may require Tenant to provide Landlord, at
Tenant's sole cost and expense, a lien and completion bond in an amount equal
to one and one-half times the estimated cost of such improvements, to insure
Landlord against any liability for mechanic's and materialmen's liens and to
insure completion of work. Should Tenant make any alterations, improvements,
additions or Utility Installations without the prior approval of Landlord,
Landlord may require that Tenant remove any or all of the same.
(b) Any alterations, improvements, additions or Utility Installations in,
or about the Premises that Tenant shall desire to make and which require the
consent of the Landlord shall be presented to Landlord in written form, with
proposed detailed plans. If Landlord shall give its consent, the consent
shall be deemed conditioned upon Tenant acquiring a permit to do so from
appropriate governmental agencies, the furnishing of a copy thereof to
Landlord prior to the commencement of the work and the compliance by Tenant
with all conditions of said permit in a prompt and expeditious manner.
(c) Tenant shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Tenant at or for use in
the Premises, which claims are or may be secured by any mechanics' or
materialmen's lien against the Premises or any interest therein. Tenant shall
give Landlord not less than ten (10) days' notice prior to the commencement
of any work in or on the Premises, and Landlord shall have the right to post
notices of non-responsibility in or on the Premises as provided by law.
(d) Unless Landlord requires their removal, as set forth in Paragraph
7.5(a), all alterations, improvements, additions and Utility Installations
(whether or not such Utility Installations constitute trade fixtures of
Tenant), which may be made on the Premises, shall become the property of
Landlord and remain upon and be surrendered with the Premises at the
expiration of the Term. Notwithstanding the provisions of this Paragraph
7.5(d), Tenant's machinery and equipment, other than that which is affixed to
the Premises so that it cannot be removed without material damage to the
Premises, shall remain the property of Tenant and may be removed by Tenant
subject to the provisions of Paragraph 7.2.
7.6 COMMON AREA MAINTENANCE. In the event that the Premises are a portion
of a larger building or complex, Landlord, at Landlord's option, may arrange
for any portion of the exterior or common area maintenance and repair. Tenant
shall pay to Landlord upon demand a reasonable proportion to be determined by
Landlord of all costs including a ten percent administration fee on
landscaping, irrigation and exterior lighting charges, in the event Landlord
administrates the same.
8. INSURANCE, INDEMNITY.
8.1 COVERAGE. The following insurance and any additional insurance
coverage that may be required by law, holders of mortgages or deeds of trust
shall be carried protecting Landlord and the holders of any mortgages or
deeds of trust covering the Premises. Any insurance policies provided by
Tenant shall provide that such policies are primary and non-contributing with
any insurance carried by the Landlord.
(a) Insurance covering loss or damage to the Premises in the amount of
the full replacement value thereof, as the same may exist from time to time,
but in no event less than the total amount required by lenders having liens
on the Premises, against all perils included within the classification of
fire, extended coverage, vandalism, malicious mischief, and special extended
perils ("all risk" as such term is used in the insurance industry). Said
insurance shall provide for payment of loss thereunder to Landlord or to the
holders of mortgages or deeds of trust on the Premises. A stipulated value or
agreed amount endorsement deleting the co-insurance provision of the policy
shall be procured with said insurance. If such insurance coverage has a
deductible clause, the deductible amount shall not exceed $5,000 per
occurrence, and Tenant shall be liable for such deductible amount.
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(b) Comprehensive general liability (Landlord's risk only including
without limitation bodily injury, personal injury and property damage
insurance) in the amount of six million dollars or such higher limits as
Landlord may reasonably require.
(c) Insurance against abatement or loss of rent in case of fire or other
casualty in an amount equal to the Rent, Real Property Taxes, and insurance
premium payments to be made by Tenant during one (1) year; and
(d) Comprehensive public liability insurance (including without
limitation bodily injury, personal injury and property damage insurance),
with limits at least as high as the amounts respectively stated in Paragraph
1, or such higher limits as Landlord may reasonably require.
8.2 PAYMENT OF PREMIUMS. Tenant shall obtain the insurance policy called
for in Paragraph 8.1(d). Landlord shall obtain the insurance policies called
for in Paragraphs 8.1(a), (b), and (c) and Tenant shall pay the cost thereof
to the extent not prepaid through reserves paid pursuant to Paragraph 5.1 upon
demand as additional rent. However, if the Premises is a one-tenant building
and Tenant can provide suitable insurance at lesser cost within thirty (30) days
after notice of the company and rate obtained by Landlord; Tenant may do so and
shall not be liable to Landlord for any cost of temporary insurance in excess
of the rate for the substitute insurance. If Tenant fails to maintain
insurance which Tenant has undertaken to provide, Tenant shall pay for any
loss or cost resulting from said failure.
8.3 INSURANCE POLICIES. Insurance required hereunder shall be with
companies holding a Best's Insurance Guide "General Policyholders Rating" of
at least "A" and a "Financial Size Category" rating of at least Class VIII.
Insurance policies shall not be cancelable or subject to reduction in
coverage or other modification except after thirty (30) days' prior written
notice to Landlord. The insuring party shall deposit with such mortgage
holders as Landlord may require, policies, duplicates or certificates as such
holders may require, and shall in all cases furnish the other party with
policies, duplicates and certificates. Tenant shall not violate or permit to
be violated any of the conditions or provisions of any policy provided for in
Paragraph 8.1, and Tenant shall so perform and satisfy the requirements of
the companies writing such policies so that at all times companies of good
standing reasonably satisfactory to Landlord shall be willing to write and/or
continue such insurance.
8.4 WAIVER OF SUBROGATION. Tenant and Landlord each hereby release and
relieve the other, and waive their entire right of recovery against the other
for loss or damage arising out of or incident to the perils insured against
hereunder, which perils occur in, on or about the Premises, whether due to
the negligence of Tenant or Landlord or their agents, employees, contractors
and/or invitees. Tenant and Landlord shall, upon obtaining the policies of
insurance required hereunder, give notice to the insurance carrier or
carriers that the foregoing mutual waiver of subrogation is contained in this
Lease.
8.5 INDEMNITY. Tenant shall indemnify and hold harmless Landlord from and
against any and all claims arising from Tenant's use of the Premises, or from
the conduct of Tenant's business or from any activity, work or things done,
permitted or suffered by Tenant in or about the Premises or elsewhere and
shall further indemnity and hold harmless Landlord from and against any and
all claims arising from any breach or default in the performance of any
obligation on Tenant's part to be performed under the terms of this Lease, or
arising from any negligence of Tenant, or any of Tenant's agents,
contractors, or employees, and from and against all costs, attorneys' fees,
expenses and liabilities incurred in the defense of any such claim or any
action or proceeding brought thereon, and in case any action or proceeding be
brought against Landlord by reason of any such claim, Tenant upon notice from
Landlord shall defend the same at Tenant's expense by counsel satisfactory to
Landlord. Tenant as a material part of the consideration to Landlord hereby
assumes all risk of damage to property or injury to persons, in, upon or
about the Premises arising from any cause and Tenant hereby waives all claims
in respect thereof against Landlord.
8.6 EXEMPTION OF LANDLORD FROM LIABILITY. Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of
income therefrom or for damage to the goods, wares, merchandise or other
property of Tenant, Tenant's employees, invitees, customers, or any other
person in or about the Premises; nor shall Landlord be liable for injury to
the person of Tenant, Tenant's employees, agents or contractors, whether such
damage or injury is caused by or results from fire, steam, electricity, gas,
water or rain, or from the breakage, leakage, obstruction or other defects of
pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting
fixtures, or from any other cause, whether said damage or injury results from
conditions arising upon the Premises or upon other portions of the building
of which the Premises are a part, or from other sources or places, and
regardless of whether the cause of such damage or injury or the means of
repairing same is inaccessible to Tenant. Landlord shall not be liable for
any damages arising from any act or neglect of any other tenant, if any, of
the building in which the Premises are located.
9. DAMAGE OR DESTRUCTION.
9.1 PARTIAL DAMAGE - INSURED. Subject to the provisions of Paragraphs 9.3
and 9.4, if the Premises are damaged and such damage was caused by a casualty
covered under an insurance policy, Landlord shall, or at Landlord's option,
Tenant shall repair such damage as soon as reasonably possible and this Lease
shall continue in full force and effect. If the insurance proceeds received
by Landlord are not sufficient to effect such repair and such insufficiency
is not due to an insufficient policy coverage amount, and Landlord elects to
repair, Tenant shall pay to Landlord upon demand any costs incurred by
Landlord not fully covered by insurance proceeds. If Tenant repairs the
damage, Landlord shall reimburse Tenant for the costs of repair to the extent
of insurance proceeds received by Landlord. Insurance claim shortfalls
greater than $25,000 per occurrence for capital repairs/replacements may, at
Tenant's election, be amortized over the life of the capital asset as
determined by Generally Accepted Accounting Practices 10% annual interest and
paid as additional rent over the remainder of the Term.
9.2 PARTIAL DAMAGE - UNINSURED. Subject to the provisions of Paragraphs
9.3 and 9.4, if at any time during the Term hereof the Premises are damaged
where the cost to repair such damage exceeds $25,000, except by a negligent
or willful act of Tenant (in which event Tenant shall make the repairs at its
expense), and such damage was caused by a casualty not covered under an
insurance policy required to be maintained pursuant to Paragraph 8.1,
Landlord may at Landlord's option either (a) repair such damage as soon as
reasonably possible at Landlord's expense, in which event this Lease shall
continue in full force and effect, or (b) give written notice to Tenant
within thirty (30) days after the date of the occurrence of such damage of
Landlord's intention to cancel and terminate this Lease as of the date of the
occurrence of such damage. In the event Landlord elects to give such notice
of Landlord's intention to cancel and terminate this Lease, Tenant shall have
the right within ten (10) days after the receipt of such notice to give
written notice to Landlord of Tenant's intention to repair such damage at
Tenant's expense, without reimbursement from Landlord, in which event this
Lease shall continue in full force and effect, and Tenant shall proceed to
make such repairs as soon as reasonably possible. If Tenant does not give
such notice within such ten (10) day period, this Lease shall be canceled and
terminated as of the date of the occurrence of such damage.
9.3 TOTAL DESTRUCTION. If at any time during the Term of this Lease there
is damage, whether or not an insured loss, (including destruction required by
any authorized public authority) to the building of which the Premises are a
part to the extent that the cost of repair exceeds fifty percent (50%) of the
then replacement cost of such building as a whole, then this Lease shall
automatically terminate as of the date of such destruction.
9.4 DAMAGE NEAR END OF TERM. If the Premises are significantly damaged
during the last year of the Term of this Lease, Landlord may at Landlord's
option cancel and terminate this Lease as of the date of occurrence of such
damage by giving written notice to Tenant of Landlord's election to do so
within thirty (30) days after the date of occurrence of such damage.
9.5 ABATEMENT OF RENT. In the event of damage described in Paragraphs 9.1
or 9.2, and Landlord or Tenant repairs or restores the Premises, Rent for the
period during which such damage, repair or restoration continues shall be
abated in proportion to the degree to which Tenant's use of the Premises is
impaired, but only to the extent of any proceeds received by Landlord from
rental abatement insurance described in Paragraph 8.1. Except for the
abatement of Rent, if any, Tenant shall have no claim against Landlord for
any damage suffered by reason of any such damage, destruction, repair or
restoration.
9.6 WAIVER. Tenant and Landlord hereby waive the provisions of California
Civil Code Paragraphs 1932 (2) and 1933 (4) or any related or successor
provision of law which relate to termination of leases when the thing leased
is destroyed and agree that such event shall be governed by the terms of this
Lease.
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10. REAL PROPERTY TAXES.
10.1 PAYMENT OF TAXES. Tenant shall pay the real property tax, as defined
in Paragraph 10.2, applicable to the Premises during the Term of this Lease.
If deposits collected for real property taxes as provided in Paragraph 5.1
are not sufficient to discharge the Tenant's obligations, payment of the
balance shall be made at least ten (10) days prior to the delinquency date of
such payment by depositing the payment with Landlord. If any such taxes paid
by Tenant shall cover any period of time after the expiration of the Term
hereof, Tenant's share of such taxes shall be equitably prorated to cover
only the period of time within the tax fiscal year during which this Lease
shall be in effect, and Landlord shall reimburse Tenant to the extent
required within thirty (30) days following expiration of the Term. If Tenant
shall fail to pay any such taxes, Landlord shall have the right to pay the
same, in which case Tenant shall repay such amount to Landlord with Tenant's
next rent installment together with interest at the maximum rate then
allowable by law.
10.2 DEFINITION OF "REAL PROPERTY TAX". As used herein, the term Real
Property Tax shall include any form of real estate tax or assessment,
general, special, ordinary or extraordinary, and any license fee, commercial
rental tax, improvement bond or bonds, levy or tax (other than inheritance,
personal income or estate taxes) imposed on the Premises by any authority
having the direct or indirect power to tax, including any city, state or
federal government, or any school, agricultural, sanitary, fire, street,
drainage or other improvement district thereof, as against any legal or
equitable interest of Landlord in the Premises or in the real property of
which the Premises are a part, as against Landlord's right to rent or other
income therefrom, and as against Landlord's business of leasing the Premises.
Real Property Tax shall also include any tax, fee, levy, assessment or charge
(i) in substitution of, partially or totally, any tax, fee, levy assessment
or charge hereinabove included within the definition of Real Property Tax or
(ii) the nature of which was hereinbefore included within the definition of
Real Property Tax.
10.3 JOINT ASSESSMENT. If the Premises are not separately assessed,
Tenant's liability shall be an equitable proportion of the Real Property
Taxes for all of the land and improvements included within the tax parcel
assessed, such proportion to be determined by Landlord from the respective
valuations assigned in the assessor's work sheets or such other information
as may be reasonably available. Landlord's reasonable determination thereof,
in good faith, shall be conclusive.
10.4 PERSONAL PROPERTY TAXES. Tenant shall pay prior to delinquency all
taxes assessed against and levied upon trade fixtures, furnishings, equipment
and all personal property of Tenant contained in the Premises or elsewhere.
When possible, Tenant shall cause said trade fixtures, furnishings, equipment
and all other personal property to be assessed and billed separately from the
real property of Landlord.
11. UTILITIES. Tenant shall pay for heat, water, gas, electricity, and any
other utilities and services supplied to the Premises together with taxes
thereon. Tenant shall be responsible for any installation or hook-up charge.
Landlord shall not be liable to Tenant for interruption in or curtailment of
any utility service, nor shall any such interruption in or curtailment
constitute a constructive eviction or grounds for rental abatement. If any
such services are not separately metered to Tenant, Tenant shall pay a
reasonable proportion to be determined by Landlord of all charges jointly
metered with other premises.
12. ASSIGNMENT AND SUBLETTING.
12.1 LANDLORD'S CONSENT REQUIRED. Tenant shall not voluntarily or by
operation of law assign, mortgage, sublet, or otherwise transfer or encumber
all or any part of Tenant's interest in this Lease or in the Premises without
Landlord's prior written consent. Landlord shall not unreasonably withhold
its consent to an assignment or sublet, provided the proposed assignee or
sublessee is reasonably satisfactory to Landlord as to credit and will occupy
and use the Premises for the same purposes specified in Paragraph 1. Any
attempted assignment, transfer, mortgage, encumbrance or subletting without
such consent shall constitute a breach of this Lease and be voidable at
Landlord's election. Tenant shall pay to Landlord five hundred dollars ($500)
as compensation for expenses in connection with any request for Landlord's
consent by Tenant. See addendum.
12.2 NO RELEASE OF TENANT. Regardless of Landlord's consent, no subletting
or assignment shall release Tenant of Tenant's obligation or alter the
primary liability of Tenant to pay the Rent and to perform all other
obligations to be performed by Tenant hereunder. The acceptance of Rent by
Landlord from any other person shall not be deemed to be a waiver by Landlord
of any provision hereof. Consent to one assignment or subletting shall not be
deemed consent to any subsequent assignment or subletting.
12.3 RECAPTURE OF PREMISES. In connection with any proposed assignment or
sublease of the entire Premises, Tenant shall submit to Landlord in writing
(a) the name of the proposed assignee or sublessee, (b) such information as
to its financial responsibility and standing as Landlord may reasonably
require, and (c) all of the terms and conditions upon which the proposed
assignment or subletting is to be made. Landlord shall have an option to
cancel and terminate this Lease with respect to the Premises which is to be
assigned or sublet. Landlord may exercise said option in writing within
thirty (30) days after its receipt from Tenant of such request to assign or
sublease the Premises. If Landlord shall exercise its option, Tenant shall
surrender possession of the entire Premises.
12.4 EXCESS SUBLEASE RENTAL. If, on account of or in connection with any
assignment or sublease of more than 50% of the Premises Tenant receives rent
or other consideration in excess of the Rent called for hereunder, or in the
case of the sublease of a portion of the Premises, in excess of the pro rata
Rent based on the floor area of such portion, after appropriate adjustments
to assure all other payments called for hereunder are appropriately taken
into account, Tenant shall pay to Landlord Fifty Percent (50%) of the excess
of such payment of rent or other consideration received by Tenant promptly
after its receipt.
13. DEFAULTS; REMEDIES.
13.1 DEFAULTS. The occurrence of any one or more of the following events
shall constitute a material default and breach of this Lease by Tenant:
(a) The vacating or abandonment of the Premises by Tenant for at least
thirty (30) days.
(b) The failure by Tenant to make any payment of Rent or any other
payment required to be made by Tenant hereunder, as and when due, where such
failure shall continue for a period of three (3) days after written notice
thereof from Landlord to Tenant.
(c) The failure by Tenant to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by Tenant,
other than described in Paragraph 13.1(b), where such failure shall continue
for a period of thirty (30) days after written notice thereof from Landlord
to Tenant; provided, however, that if the nature of Tenant's default is such
that more than thirty (30) days are reasonably required for its cure, then
Tenant shall not be deemed to be in default it Tenant commences such cure
within said thirty (30) day period and thereafter diligently prosecutes such
cure to completion.
(d)(i) The making by Tenant of any general arrangement or assignment for
the benefit of creditors; (ii) the filing by or against Tenant of a petition
to have Tenant adjudged bankrupt or a petition for reorganization or
arrangement under any law relating to bankruptcy (unless, the same is
dismissed within sixty (60) days); (iii) the appointment of a trustee or
receiver to take possession of substantially all of Tenant's assets located
at the Premises or of Tenant's interest in this Lease, where possession is
not restored to Tenant within thirty (30) days; or (iv) the attachment,
execution or other judicial seizure of substantially all of Tenant's assets
located at the Premises or of Tenant's interest in this Lease, where such
seizure is not discharged within thirty (30) days.
(e) The discovery by Landlord that any financial statement given to
Landlord by Tenant, any assignee of Tenant, any subtenant of Tenant, any
successor in interest or any guarantor of Tenant's obligations hereunder was
materially false.
13.2 REMEDIES. In the event of any material default or breach by Tenant,
Landlord may at any time thereafter, with or without notice or demand and
without limiting Landlord in the exercise of any right or remedy which
Landlord may have by reason of such default or breach:
(a) Terminate Tenant's right to possession of the Premises, in which case
this Lease shall terminate and Tenant shall immediately surrender possession
of the Premises to Landlord. In such event, Landlord shall be entitled to
recover from Tenant all damages incurred by Landlord by reason of Tenant's
default including, but not limited to, the cost of recovering possession of
the Premises; expenses of reletting including necessary renovation of the
Premises, reasonable attorneys' fees, and any real estate commission actually
paid; the worth at the time of award by the court having jurisdiction thereof
of the amount by which the unpaid Rent for the balance of the Term after the
time of such award exceeds the amount of such rental loss for the same period
that Tenant proves could be reasonably avoided; and that portion of the
leasing commission paid by Landlord applicable to the unexpired Term of this
Lease. Unpaid installments of Rent or other sums shall bear interest from the
date due at the lesser of twelve percent (12%) or the maximum rate then
allowable by law.
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<PAGE>
(b) Maintain Tenant's right to possession in which case this Lease shall
continue in effect whether or not Tenant shall have abandoned the Premises.
In such event, Landlord shall be entitled to enforce all of Landlord's rights
and remedies under this Lease, including the right to recover the Rent as it
becomes due hereunder.
(c) Pursue any other remedy now or hereafter available to Landlord under the
laws or judicial decisions of the State of California.
13.3 DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord
fails to perform obligations required of Landlord within thirty (30) days
after written notice by Tenant to Landlord and to the holder of any mortgage
or deed of trust covering the Premises whose name and address shall have
theretofore been furnished to Tenant in writing, specifying wherein Landlord
has failed to perform such obligations; provided, however, that if the nature
of Landlord's obligation is such that more than thirty (30) days are required
for performance, then Landlord shall not be in default if Landlord commences
performance within such thirty (30) day period and thereafter diligently
prosecutes the same to completion.
13.4 LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant to
Landlord of Rent and other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed on
Landlord by the terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of Rent or any other sum due from Tenant
shall not be received by Landlord or Landlord's designee within five business
(5) days after such amount shall be due, then, without any requirement for
notice to Tenant, Tenant shall pay to Landlord a late charge equal to five
percent (5%) of such overdue amount. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of late payment by Tenant. Acceptance of such late charge by
Landlord shall in no event constitute a waiver of Tenant's default with
respect to such overdue amount, nor prevent Landlord from exercising any of
the other rights and remedies granted hereunder.
14. CONDEMNATION. If the Premises or any portion thereof are taken under
the power of eminent domain, or sold under the threat of the exercise of said
power (all of which are herein called "Condemnation"), this Lease shall
terminate as to the part so taken as of the date the condemning authority
takes title or possession, whichever first occurs. If more than ten percent
(10%) of the floor area of the building on the Premises or more than twenty-
five percent (25%) of the land area of the Premises which is not occupied by
any building is taken by Condemnation; then Tenant may, at Tenant's option to
be exercised in writing only within ten (10) days after Landlord shall have
given Tenant written notice of such taking (or in the absence of such notice,
within ten (10) days after the condemning authority shall have taken
possession), terminate this Lease as of the date the condemning authority
takes such possession. If Tenant does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to
the portion of the Premises remaining, except that the Rent shall be reduced
in the proportion that the floor area taken bears to the total floor area of
the building situated on the Premises. No reduction in Rent shall occur if
the only area taken is that which does not have a building located thereon.
Any award for the taking of all or any part of the Premises under the power
of eminent domain or any payment made under threat of the exercise of such
power shall be the property of Landlord, whether such award shall be made as
compensation for diminution in value of the leasehold or for the taking of
the fee, or as severance damages, provided, however, that Tenant shall be
entitled to any award for loss or damage to Tenant's trade fixtures and
removable personal property. In the event that this Lease is not terminated
by reason of such Condemnation, Landlord shall, to the extent of severance
damages received by Landlord in connection with such Condemnation, repair any
damage to the Premises caused by such Condemnation except to the extent that
Tenant has been reimbursed therefor by the condemning authority.
15. EXAMINATION OF LEASE. Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option to lease.
This instrument is not effective as a lease or otherwise until execution and
delivery by Landlord and Tenant.
16. ESTOPPEL CERTIFICATE.
(a) Tenant shall, at any time during the Term, upon ten (10) days prior
written notice from Landlord execute, acknowledge and deliver to Landlord a
statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification
and certifying that this Lease, as so modified, is in full force and effect)
and the date to which the Rent and other charges are paid in advance, if any,
and (ii) acknowledging that there are not, to Tenant's knowledge, any uncured
defaults on the part of Landlord hereunder, or specifying such defaults if
any are claimed. Any such statement may be conclusively relied upon by any
prospective purchaser or encumbrancer of the Premises.
(b) At Landlord's option, Tenant's failure to deliver such statement
within ten (10) days of receipt of written notice shall be a material breach
of this Lease or shall be conclusive upon Tenant (i) that this Lease is in
full force and effect, without modification except as may be represented by
Landlord, (ii) that there are no uncured defaults in Landlord's performance,
and (iii) that not more than one month's Rent has been paid in advance.
(c) If Landlord desires to finance, refinance or sell the Premises, or
any part thereof, Tenant hereby agrees upon ten (10) days prior written
notice to deliver to Landlord such financial statements of Tenant as may be
reasonably required by a lender or purchaser. Such statement shall include
the most recent three years' financial statements of Tenant. All such
financial statements shall be received by Landlord in confidence and shall be
used only for the purposes herein set forth.
17. LANDLORD'S LIABILITY. Whenever Landlord conveys its interest in the
Premises, Landlord shall be automatically released from all liability as
respects the further performance of covenants on the part of Landlord herein
contained provided the assignee executes an assumption agreement expressly
agreeing to assume all of Landlord's obligations with respect to this Lease.
If requested, Tenant shall execute a form of release and such other
documentation as may be required to further effect these provisions. Tenant
agrees to look solely to Landlord's estate and interest in the Premises for
the satisfaction of any liability, duty or obligation of Landlord in respect
to this Lease or the relationship of Landlord and Tenant hereunder and no
other assets of Landlord shall be subject to any liability therefor. Tenant
agrees it will not seek and hereby waives any recourse against the individual
partners, directors, officers, employees or shareholders of Landlord or any
of their personal assets for such satisfaction.
18. SEVERABILITY. The invalidity of any provision of this Lease as determined
by a court of competent jurisdiction shall in no way affect the validity of
any other provision hereof.
19. INTEREST ON PAST-DUE OBLIGATIONS. Except as expressly herein provided,
any amount due to Landlord not paid when due shall bear interest at the
lesser of twelve percent (12%) or the maximum rate then allowable by law from
the date due. Payment of such interest shall not excuse or cure any default
by Tenant under this Lease.
20. TIME OF ESSENCE. Time is of the essence.
21. ADDITIONAL RENT. Any monetary obligations of Tenant to Landlord under the
terms of this Lease shall be deemed to be rent.
22. INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No
prior agreement or understanding pertaining to any such matter shall be
effective. This Lease may be modified in writing only, signed by the parties
in interest at the time of the modification.
23. NOTICES. Any notice required or permitted to be given hereunder shall be
in writing and may be given by personal service or by certified mail, return
receipt requested. Notice by certified mail shall be deemed served on the
date of delivery as shown on the postal receipt. Either party may by notice
to the other specify a different address for notice purposes, except that,
upon Tenant's taking possession of the Premises, the Premises shall
constitute Tenant's address for notice purposes. A copy of all notices to be
given to Landlord hereunder shall be concurrently transmitted by Tenant to
such party or parties at such addresses as Landlord may hereafter designate
by notice to Tenant.
24. WAIVERS. No waiver by Landlord of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Tenant of
the same or any other provision. Landlord's consent to or approval of any act
shall not be deemed to render unnecessary the obtaining of Landlord's consent
to or approval of any subsequent act by Tenant. The acceptance of Rent
hereunder by Landlord shall not be a waiver of any preceding breach by Tenant
or of any provision hereof, other than the failure of Tenant to pay the
particular Rent so accepted, regardless of Landlord's knowledge of such
preceding breach at the time of acceptance of such Rent. Partial or
incomplete payments accepted by Landlord shall not be a waiver or considered
an accord and satisfaction of any amounts due.
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<PAGE>
25. CAPTIONS. Paragraph captions are not a part hereof.
26. HOLDING OVER. If Tenant remains in possession of the Premises or any part
thereof after the expiration of the Term without the express written consent
of Landlord, such occupancy shall be a tenancy from month to month at a
rental equal to the Rent during the last month of the Term increased by
twenty percent (20%) and upon all the terms hereof applicable to a
month-to-month tenancy.
27. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies
at law or in equity.
28. COVENANTS AND CONDITIONS. Each provision of this Lease performable by
Tenant shall be deemed both a covenant and a condition.
29. BINDING EFFECT; CHOICE OF LAW. Subject to the provisions of Paragraphs 12
and 17, this Lease shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, assigns and legal
representatives. This Lease shall be governed by the laws of the State of
California.
30. SUBORDINATION.
(a) This Lease, at Landlord's option, shall be subordinate to any ground
lease, mortgage, deed of trust, or any other hypothecation or security now or
hereafter placed upon the real property of which the Premises are a part and
to any and all advances made on the security thereof and to all renewals,
modifications, consolidations, replacements and extensions thereof.
Landlord's election to subordinate this Lease shall not be effective unless
the ground lessor, mortgagee or trustee shall execute with Tenant a
nondisturbance agreement recognizing that Tenant's right to quiet possession
of the Premises shall not be disturbed if Tenant is not in default and so
long as Tenant shall pay the Rent and observe and perform all the provisions
of this Lease. If any mortgagee, trustee or ground lessor shall elect to have
this Lease prior to the lien of its mortgage, deed of trust or ground lease,
and shall give written notice thereof to Tenant, this Lease shall be deemed
prior to such mortgage, deed of trust, or ground lease, whether this Lease is
dated prior or subsequent to the date of said mortgage, deed of trust or
ground lease or the date of recording thereof.
(b) Tenant agrees to execute any documents required to effectuate an
attornment, a subordination or to make this Lease prior to the lien of any
mortgage, deed of trust or ground lease, as the case may be. Tenant's failure
to execute such documents within ten (10) days after written demand shall
constitute a default by Tenant hereunder, or at Landlord's option, Landlord
shall execute such documents on behalf of Tenant as Tenant's
attorney-in-fact. Tenant does hereby make, constitute and irrevocably appoint
Landlord as Tenant's attorney-in-fact and in Tenant's name, place and stead
to execute such documents.
31. ATTORNEY'S FEES. If Landlord or Tenant brings an action to enforce its
respective rights hereunder, the unsuccessful party therein agrees to pay all
costs incurred by the prevailing party therein, including reasonable
attorney's fees and court costs to be fixed by the court.
32. LANDLORD'S ACCESS. Landlord and Landlord's agents shall have the right to
enter the Premises at reasonable times for the purpose of inspecting the
same, showing the same to prospective purchasers, lenders, or tenants, and
making such alterations, repairs, improvements or additions to the Premises
or to the building of which they are a part as Landlord may deem necessary or
desirable. Landlord may at any time during the last one hundred twenty (120)
days of the Term hereof place on or about the Premises any ordinary "For
Sale" or "For Lease" signs, all without rebate of Rent or liability to Tenant.
33. AUCTIONS. Tenant shall not conduct any auction without Landlord's prior
written consent.
34. SIGNS. Any sign placed on the Premises shall contain only Tenant's name
and slogan or the name of any affiliate of Tenant actually occupying the
Premises, but no advertising matter. No such sign shall be erected until
Tenant has obtained Landlord's written approval which shall not unreasonably
be withheld, of the location, materials, size, design, and content thereof
and any necessary permit therefor. Tenant shall remove any such sign upon
termination and return the Premises to their condition prior to the placement
of said sign.
35. MERGER. The voluntary or other surrender of this Lease by Tenant, or a
mutual cancellation thereof, or a termination by Landlord, shall not work a
merger and shall at the option of the Landlord, terminate all or any existing
subtenancies or may, at the option of Landlord, operate as an assignment to
Landlord of any or all of such tenancies.
36. EASEMENTS, BOUNDARY CHANGES. Landlord reserves to itself the right, from
time to time, to grant such easements, rights, dedications and enact boundary
and common area configuration adjustments that Landlord deems necessary or
desirable and to cause the recordation of parcel maps and restrictions, so
long as they do not unreasonably interfere with the use of the Premises by
Tenant. Tenant shall sign any of the aforementioned documents upon request of
Landlord and failure to do so shall constitute a breach of this Lease by
Tenant.
37. QUIET POSSESSION. Upon Tenant's paying the Rent, additional rent and
other sums provided hereunder and observing and performing all of the
covenants, conditions and provisions on Tenant's part to be observed and
performed hereunder, Tenant shall have quiet possession of the Premises for
the entire Term hereof, subject to the provisions of this Lease.
38. AUTHORITY. If Tenant is a corporation, trust or partnership, each
individual executing this Lease on behalf of such entity represents and
warrants that he is duly authorized to execute and deliver this Lease on
behalf of said entity. If Tenant is a corporation, trust or partnership,
Tenant shall, within thirty (30) days after execution of this Lease, deliver
evidence of such authority satisfactory to Landlord.
See addendum for paragraphs 39 through 45.
The Parties hereto have executed this Lease on the dates immediately
above their respective signatures.
Dated: April 25, 1997 Dated:
-------------------------
Hansen Beverage Company 27 Railroad Partnership L. P.
a Delaware corporation a California limited partnership
By: Investment Building Group,
By: /s/ Rodney C. Sacks a California corporation,
general partner
Its: Chairman
By: By:
-------------------------------- -----------------------------
Jack M. Langson, president
Its:
-------------------------------
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ADDENDUM TO STANDARD INDUSTRIAL LEASE
DATED APRIL 25, 1997 BY AND BETWEEN
27 RAILROAD PARTNERSHIP L.P. ("LANDLORD") AND
HANSEN BEVERAGE COMPANY ("TENANT")
39. RENT INCREASES. The Rent as called for in Paragraph 1 shall commence at
fifteen thousand dollars ($15,000) per month. The Rent shall be increased
periodically according to the following schedule:
Months Monthly Rental
----------- --------------
1 through 5 $15,000
6 through 24 $23,200
25 through 45 $24,700
46 through 69 $25,900
70 through 89 $27,200
40. ADDITIONAL SECURITY DEPOSIT. As additional Security Deposit, Tenant will,
during months 4 through 28 of the Term, provide in favor of Landlord an
unconditional, irrevocable standby letter of credit, available to Landlord's
drafts at sight, drawn on a major bank in the amount of fifty thousand
dollars ($50,000) ("Additional Security Deposit"). Such Additional Security
Deposit shall be submitted to Landlord in a form satisfactory to Landlord
prior to the commencement of the construction of the additional office
improvements contemplated in Paragraph 41 below. If the letter of credit is
issued for less than the 24 month period as shown above, Tenant shall replace
the letter of credit prior to its expiration. Any draws on the letter of
credit shall become a cash Security Deposit only and be governed by the
provisions of Paragraph 5.2 and shall not be considered payments for amounts
due nor shall such draws cure any prior defaults. If Tenant cures the default
and pays the amount of any prior draw so that all Tenant's defaults are
cured, Landlord shall upon written request from Tenant return the balance of
the Security Deposit to Tenant provided Tenant shall again provide to
Landlord the letter of credit in an amount as outlined above.
41. TENANT IMPROVEMENT ALLOWANCE. Landlord shall provide a tenant improvement
allowance (the "Improvement Allowance") in the amount of two hundred and ten
thousand dollars ($210,000) for the design and construction, etc., of
additional offices and other improvements as outlined in Exhibit "B" or any
other improvement approved by Landlord ("Improvements") as well as for
payment of any upgrade costs that may be incurred toward initial 1,800 sq.
ft. of existing office space over the specified allowances and rates provided
therefore. In the event that the Improvements cost more than the Improvement
Allowance, Tenant shall have the right to reduce the Improvements to limit
the cost to the Improvement Allowance; or, alternatively, Tenant shall pay to
Landlord on demand the cost of the Improvements above the Improvement
Allowance. If Tenant does not pay to Landlord the extra costs above the
Improvement Allowance or notify Landlord of the items to be eliminated within
ten (10) days of written notice from Landlord, Landlord may in its sole
discretion eliminate items to bring the budget within the Improvement
Allowance and proceed with the construction of the Improvements as revised.
In no event shall commencement of Rent be delayed due to any delay in
completion of the tenant improvement items. Up to ten percent (10%) of any
Improvement Allowance unspent after the first year of the Term may be applied
toward the Rent.
Tenant shall provide Landlord with the mutually acceptable office tenant
improvement plan on or before September 15, 1997 and Landlord shall cause the
construction of the additional offices to be completed no later than January
31, 1998.
42. RENT WAIVER. Landlord hereby grants a rent waiver to Tenant in the amount
of sixty thousand dollars ($60,000) to be applied toward the Rent due under
this Lease as follows:
Months 1 - 6 $6,000 per month
Months 7 - 12 $4,000 per month
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In the event of a default as defined in paragraph 13 of the Lease and the
Lease is not reinstated within sixty (60) days of such occurrence, the rent
waiver shall automatically be deemed deleted from this Lease and of no
further force and effect, and any portion theretofore previously credited
against the Rent shall be immediately due and payable by Tenant to Landlord
and recoverable by Landlord as additional rent due under this Lease.
43. ADDITIONAL IMPROVEMENTS TO BE INSTALLED BY LANDLORD. Landlord shall,
prior to occupancy by an adjoining tenant, construct the required full height
demising wall to partition the Premises.
44. FENCING OF VEHICLES ON SITE. Subject to Landlord's reasonable approval on
scope and configuration and Tenant compliance with other governmental codes,
Tenant shall be permitted to erect fences in the paved areas onsite adjacent
to the Premises for the purposes of vehicular security.
45. INITIAL PREMISES SPECIFICATION: The Premises include approximately 1,800
sq. ft. of HVAC office space with "bonus" structural mezzanine above. At
Landlord's expense the Premises shall be modified from the existing
construction plans to include a total of ten (10) dock high loading doors.
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EXHIBIT "A" - PREMISES
[map]
* Exact separation wall OWNER/DEVELOPER
location subject to minor Investment Building Group
adjustment. 500 N. State College Boulevard
Suite 525
Orange, California 92668
(714) 634-1111
<PAGE>
EXHIBIT "B"
Tenant Improvements
and
Cost Estimates
Budget
Item Estimate
---- ---------
Partition existing offices $ 12,000
Build +- 1,600 sq. ft. of additional mezzanine 17,000
Add two stairways 5,000
Add +- 5,000 sq. ft. office 150,000
Add shop restrooms 15,000
Architectural/Engineering plans and permits 11,000
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Total $210,000
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