LEASE AMENDMENT NO. 1
PREMISES 2501 MonarchStreet,Suite 200, Alameda,CA
consistingof approximately32,500squarefeet
LANDLORD: CITY OF ALAMEDA,achartercity and municipal
corporation
TENANT: FACTIONBREWINGCOMPANY,LLC, a
Californialimitedliabilitycompany
LEASE DATE: April 17,2018for referencepurposesonly
This AmendmentNo. 1to the Lease("Amendment"),is datedas of T)eC 1-^ ,2020 for referencepurposesonly, and is entered into by and between the CITY OF ALAMEDA, a charter city and municipalcorporation("Landlord"),and FACTION BREWING COMPANY, LLC, a Californialimitedliabilitycompany("Tenant").
NOW, THEREFORE,in considerationofthe foregoing,whichare incorporatedhereinby reference,and oftheirmutualcovenantscontainedherein,the partiesherebyagree as follows:
1. Background.
A. Landlordand Tenantenteredinto that certainLeaseAgreementdated April 17, 2018 for referencepurposesonly (the "Lease"),for certainpremisesdescribedthereinand referredto as 2501 MonarchStreet,Suite 200, Alameda,CA consistingofapproximately32,500 square feet ("Premises").
B. On October6,2020,theAlamedaCityCouncilapprovedthat certainCovid- 19 rent reliefprogram for commercialtenantsof City-ownedpropertylocatedon Spirit'sAlley and non-profit organizations (the "Program").
C. Tenanthas advisedLandlordthat it wishesto participatein the Programon the terms and condition described herein.
D. Capitalized terms used in this Amendment without definition shall have the same meaninggivento such terms inthe Lease. This Amendmentshallbe effectiveupon the last date set forth below the parties' signatures.
2. Rent Deferral. Section4.1 of theLeaseregardingTenant'spaymentof Base Rent shall be modified as described below:
"(a) Tenant'sobligationto payBase Rent,as describedin Section4.1 of theLease, shall be deferred for a period of nine (9) months ("Deferred Base Rent") commencingretroactivelyon April 2020 and ending on June 2021. The period during which Tenant shall repay DeferredBase Rent shall commenceon July 1, 2021 and end on June 30, 2024 ("RepaymentPeriod").Duringeach twelve (12) month period of the Repayment Period ("Year 1" as to the first twelve (12) months,"Year 2" as to the second twelve (12) months, and "Year 3" as to the third twelve (12) months), Tenant shall repay no less than three (3) months of DeferredBase Rent ("MinimumRepaymentObligation")eitherin a lump sum at thetime Tenantmakes itsfirst Base Rent paymentduringYear 1,Year 2 orYear 3, as applicable,orin twelve(12) equalmonthlypaymentson the date Tenantpays Landlordeach Base Rent sum during Year 1, Year 2 orYear 3, as applicable. A schedulereflectingTenant'sMinimumRepaymentObligationis setoutbelow. (b) Duringthe RepaymentPeriod,ifTenantpays all DeferredBase Rent: (i) priorto the last dayof Year 1,Landlordwill creditTenantthree (3) monthsof Base Rent to beappliedto each of the nextfollowingmonthsof Base Rentuntil the creditis exhausted;(ii)priorto the lastday of Year 2, Landlordwill credit Tenanttwo (2) months ofBase Rent to be appliedto each ofthe next following monthsof Base Rent until the creditexhausted;and (iii) priorto the last day of Year3, Landlordwill credittenantone (1)monthof Base Rentto be appliedto each of the next following months of Base Rent until the credit exhausted. (c) If during Year 1, Year 2 or Year 3 of the Repayment Period Tenant fails to pay theapplicableBase Rent sum, plus theMinimumRepaymentObligationfor any of those years, thenfollowinga written notice from Landlordto Tenant anda three (3) day period for Tenant to cure such Base Rent default and/or Minimum Repayment Obligation default, Tenant shall be in material default of the Lease entitling Landlord to exercise all rights and remedies available to it under the Lease and at law and in equity."
DEFERRED RENT REPAYMENT SCHEDULE
Months
Deferred
Nine (9) (April 2020-June2020, August 2020-January2021) Total Base
Rent
Deferred
$191,771.62
Maximum
Possible
Rent Credit
$64,131.42
Repayment
Period
Payment Due
Year 1 Base Rent +$63,508.78whenfirst BaseRent paymentof Year 1 is made or Base Rent + 12 equal, monthlypayments of$5,292.40at the time each Base Rentpaymentis made during Year 1
Year2
Year 3
Base Rent+ $64,131.42when first BaseRent paymentof Year2 is madeorBase Rent+ 12 equal,monthlypaymentsof $5,344.29at thetime each BaseRentpaymentis made duringYear 2
Base Rent+ $64,131.42when first BaseRentpaymentof Year 3 is made or Base Rent + 12 equal,monthly paymentsof $5,344.29 at the timeeach Base Rent paymentis made duringYear 3
3. Deliveryof Possession. Tenantagreesthatthe Premisesshallcontinueto be leasedin its "AS-IS"condition,and Landlordshallhaveno obligationto make any repairsor modificationstothe Premises. Tenantacknowledgesand agreesthat Landlordhas made no representationsorwarrantiesregardingthePremises,including,withoutlimitation,its suitability for Tenant's proposed use.
4. Inspectionby Celtified Access Specialist.Landlorddisclosesthatthe Premises havenotundergoneinspectionby aCertifiedAccessSpecialistas referencedinCaliforniaCivil Code Section1938 subsection(e) whichprovides:"ACertifiedAccessSpecialist(CASp)can inspectthesubjectpremisesand detelminewhetherthesubjectpremisescomplywithall of the applicableconstruction-relatedaccessibilitystandardsunderstatelaw. Althoughstatelawdoes not requirea CASp inspectionof the subjectpremises,the commercialpropertyowneror lessor may not prohibitthe lessee or tenantfrom obtaininga CASp inspectionof the subjectpremises for the occupancyorpotentialoccupancyofthelesseeortenant,if requestedbythe lesseeor tenant.The pattiesshallmutuallyagreeon thearrangementsfor the time andmannerofthe CASp inspection,the paymentofthe fee for theCASp inspection,andthe costof makingany repairsnecessaryto correctviolationsof construction-relatedaccessibilitystandardswithin the premises.r Pursuantto the foregoingSection 1938(e),Tenantacknowledgesandagreesthat, if Tenant wishes to have the Premisesinspectedby a CASp: (i) Tenant must notifyLandlordon or beforethe date when Tenantexecutesthis LeaseAmendment pursuantto theelectionbelow;(ii) the inspectionwill be atTenant'ssolecost and expense;(iii) theinspectionmust be scheduled throughLandlordandin coordinationwith theBuilding'spropertymanager;(iv) anyrepairsor modificationsnecessaryto correctany violationof construction-relatedaccessibilitystandards that is noted in theCASp reportshallbe Tenant's responsibility;and (v) Tenant must providea copy ofthe CASp reportto Landlord on completion.
5. City's Authority. Tenant acknowledges Landlord is entering into thisAmendment modifying the Lease in Landlord's proprietarycapacityand not in itsregulatoryor governmental capacity. Nothing in this Amendment shall be construedas restraining,impairingor restricting the City of Alameda in itsregulatorycapacity,or grantingany rightsupon the Tenantwith respect to the use, occupancy or operation of the Premises in a manner inconsistent with any Laws or applicable requirements.
6. Ratification; Miscellaneous. Except as modified by this Amendment, in all other respects the Lease is hereby ratified and affirmed and remains in full force and effect. This Amendment may be executed in one or morecounterparts.
IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the day and year last set forth below.
DocuSign Envelope ID: C8C2E0D6-5F92-44B7-8BF1-A3D96064DEA7 LANDLORD:
CITY OF ALAMEDA,
a charter city an« oration
Date: J^/jS/^g
Approvedas^Form
By:
n Maxwell (Lira Nelson
Assistant City Attorney
Recommended for Approval
-DocuSigned by:
By: h4rh^utb^
Interim Community Development Director
TENANT:
FACTION BREWING COMPANY, LLC
a California limited liability company
By: Ctouii^
Name: Claudia Pamparana
Title: Co-owner
Date: 12/01/2020
By: J
Name: Rodger Davis
Title: Co-owner
Date: 12/01/2020
H