1 LEASE AMENDMENT NO. 2
PREMISES 2501 Mona rch Street, Suite 200, Alameda, CA
consisting of approximately 32,500 square feet
LANDLORD: CIT Y OF ALAMEDA, a charter city and municipal corporation
TENANT: FACTION BREWING COMPANY, LLC, a
California limited liability company
LEASE DATE: Apri l 17, 2018 for reference purposes only This Second Amendment to the Lease ( "Second Amendment" ), is dated as of ______________________, 2024 for reference purposes only, and is entered into by and between the CITY OF ALAMEDA, a charter city and municipal corporation ("Landlord"), and FACTION BREWING COMPANY, LLC, a California limited liability company ("Tenant").
NOW, THEREFORE, in consideration of the foregoing, which are incorporated herein by reference, and of their mutual covenants contained herein, the parties hereby agree as follows:
1. Background.
A. Landlord and Tenant entered into that certain Lease Agreement dated April 17, 2018, for reference purposes only (“ Lease”), for certain premises described therein an d referred to as 2501 Monarch Street, Suite 200, Alameda, CA consisting of approximately 32,500 square feet ("Premises").
B. Landlord and Tenant entered into that certain First Amendment to the Lease dated December 15, 2020, for reference purposes only, as part of the Alameda City Council approved Covid-19 rent relief program for commercial tenants of City -owned property located on Spirit’s Alley and non-profit organizations (the “Program”). The total Deferred Base Rent was repaid in full before the Repayment Period had concluded.
C. Capitalized terms used in this Amendment without definition shall have the same meaning given to such terms in the Lease. This Amendment shall be effective upon the last date set forth below the parties’ signatures.
2. Rent Deferral.
Section 4.1 of the Lease regarding Tenant’s payment of Base Rent shall be modified as described below:
“(a) Tenant’s obligation to pay Base Rent, as described in Section 4.1 o f the Lease, shall be deferred for a period of three (3) months (“Deferred Base Ren t”) commencing retroactively on February 2024 and ending on April 2024. The period during which Tenant shall repay Deferred Base Rent shall commence on May 1, 2024, and end on April 30, 2025 (“Repayment Period ”). During each one (1) month period of the twelve (12) Repayment Period, Tenant shall repay no less than DocuSign Envelope ID: 3AFA2E69-77F5-415A-B829-9292E872572E DocuSign Envelope ID: 85949E87-C887-4FE8-86DF-E712AF2B2DDE DocuSign Envelope ID: E52A5189-93CD-4014-8527-C3D2E93A936C April 2
Exhibit 4
2 $5,839.84 of Deferred Base Rent (“Minimum Repayment Obligation”) in addition to their monthly Base Rent rate. A schedule reflecting Tenant’s Minimum Repayment Obligation is set out below.
DEFERRED RENT REPAYMENT SCHEDULE
Months Deferred Three (3) (February 2024-April 2024)
Total Base Rent
Deferred
$70,078.11
Repayment Period Payment Due
Month 1 Base Rent + $5,839.84 when first Base Rent payment is due Month 2 Base Rent + $5,839.84 when second Base Rent payment is due Month 3 Base Rent + $5,839.84 when third Base Rent payment is due Month 4 Base Rent + $5,839.84 when fourth Base Rent payment is due Month 5 Base Rent + $5,839.84 when fifth Base Rent payment is due Month 6 Base Rent + $5,839.84 when sixth Base Rent payment is due Month 7 Base Rent + $5,839.84 when seventh Base Rent payment is due Month 8 Base Rent + $5,839.84 when eighth Base Rent payment is due Month 9 Base Rent + $5,839.84 when ninth Base Rent payment is due Month 10 Base Rent + $5,839.84 when tenth Base Rent payment is due Month 11 Base Rent + $5,839.84 when eleventh Base Rent payment is due Month 12 Base Rent + $5,839.84 when twelfth Base Rent payment is due
3. Delivery of Possession. Tenant agrees that the Premises shall continue to be leased in its "AS-IS" condition, and Landlord shall have no obligation to make any repairs or modifications to the Premises. Tenant acknowledges and agrees that Landlord has made no representations or warranties regarding the Premises, including, without limitation, its suitability for Tenant’s proposed use.
4. I
nspection by C ertified Access Specialist. Landlord discloses that the Premises have not undergone inspection by a Certified Access Specialist as referenced in California Civil Code Section 1938 subsection (e) which provides: "A Certified Access Specialist (CASp) can inspect the subject premises and detrmine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The patties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any DocuSign Envelope ID: 3AFA2E69-77F5-415A-B829-9292E872572E DocuSign Envelope ID: 85949E87-C887-4FE8-86DF-E712AF2B2DDE DocuSign Envelope ID: E52A5189-93CD-4014-8527-C3D2E93A936C 3 repairs necessary to correct violations of construction-related accessibility standards within the prernises.1' Pursuant to the foregoing Section 1938(e), Tenant acknowledges and agrees that, if Tenant wishes to have the Premises inspected by a CASp: (i) Tenant must notify Landlord on or before the date when Tenant executes this Lease Amendment pursuant to the election below; (ii) the inspection will be at Tenant's sole cost and expense; (iii) the inspection must be scheduled through Landlord and in coordination with the Building's property manager; (iv) any repairs or modifications necessary to correct any violation of construction-related accessibility standards that is noted in the CASp report shall be Tenant's responsibility; and (v) Tenant must provide a copy of the CASp report to Landlord on completion.
5. City’s Authority. Tenant acknowledges Landlord is entering into this Amendment modifying the Lease in Landlord’s proprietary capacity and not in its regulatory or governmental capacity. Nothing in this Amendment shall be construed as restraining, impairing or restricting the City of Alameda in its regulatory capacity, or granting any rights upon the Tenant with respect to the use, occupancy or operation of the Premises in a manner inconsistent with any Laws or applicable requirements.
6. R
atification; 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 more counterparts.
7. E lectronic Signature. This Second Amendment may be signed by electronic signature and any such electronic signature shall have the same force and effect as an original signature. Without limitation, “electronic signature” shall include faxed versions of an original signature or electronically scanned and transmitted versions (e.g., via pdf) of an original signature. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
DocuSign Envelope ID: 3AFA2E69-77F5-415A-B829-9292E872572E DocuSign Envelope ID: 85949E87-C887-4FE8-86DF-E712AF2B2DDE DocuSign Envelope ID: E52A5189-93CD-4014-8527-C3D2E93A936C 4 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the day and year last set forth below.
LANDLORD:
CITY OF ALAMEDA,
a charter city and municipal corporation
By: _____________________________
Jennifer Ott
City Manager
Date: _____________________________
TENANT:
FACTION BREWING COMPANY, LLC
a California limited liability company
B
y: _____________________________
Name: _____________________________
Title: _____________________________
Date: _____________________________
Approved as to Form
By: _____________________________
Len Aslanian
Assistant City Attorney
B
y: _____________________________
Name: _____________________________
Title: _____________________________
Date: _____________________________
R
ecommended for Approval
By: _____________________________
Abigail Thorne-Lyman
Base Reuse and Economic Development Director
DocuSign Envelope ID: 3AFA2E69-77F5-415A-B829-9292E872572E 3/6/2024
Claudia Pamparana
OWNER
Brewer/Owner
3/6/2024
Rodger Davis
DocuSign Envelope ID: 85949E87-C887-4FE8-86DF-E712AF2B2DDE DocuSign Envelope ID: E52A5189-93CD-4014-8527-C3D2E93A936C