ATT 1 - AIR CRE Standard Multi-Tenant Shopping Center Lease – New with attached First Addendum to Lease Agreement with Golden Spring Capital, LLC in Draft Form

1. BasicProvisions("BasicProvisions").

1.1 ParƟes. ThisLease("Lease"),datedforreferencepurposesonly October__,2023 ,ismadebyandbetween GoldenSpringCapitalLLC,a Californialimitedliabilitycompany ("Lessor")and CityofMurrieta,amunicipalcorporation ("Lessee") (collecƟvelythe"ParƟes",orindividuallya "Party").

1.2 Premises: Thatcertain porƟonoftheShoppingCenter(as deﬁnedbelow),includingallimprovementsthereinortobeprovidedbyLessor underthetermsofthisLease,commonlyknownas(streetaddress,unit/suite,city,state): UnitB&C("Premises")whicharepartof24620Jefferson Ave,Murrieta, CA92562 ("BuildingParcel")whichcontainsabuildingwith8,404squarefeet("Building") ) ("Premises"). ThePremisesarelocatedinthe Countyof Riverside andgenerallydescribedas(describe brieﬂythenatureofthePremises): approximately4,868squarefeetspace . In addiƟonto Lessee'srightstouseandoccupythePremisesas hereinaŌer speciﬁed,Lesseeshallhavenon-exclusiverightstotheCommonAreas(as deﬁnedin Paragraph2.7below)as hereinaŌer speciﬁed,butshallnothaveanyrightstotheroof,theexteriorwalls,orthe uƟlityracewaysoftheBbuilding ParcelcontainingthePremises("Building")ortoanyotherbuildingsintheShoppingCenter.ThePremisesandtheBuildingaresituatedwithinthe ShoppingCenterknownas Olivewood . ThePremises,theBuilding,theCommonAreas,andallotherbuildingsandimprovementswithinsaid ShoppingCenter,togetherwiththelanduponwhichtheyarelocated,areherein collecƟvelyreferredtoasthe"ShoppingCenter." (Seealso Paragraph2).

LessorownsonlythelotcontainingtheBuildingParcel(APN949-600-015)whichispartoftheShoppingCenter.Allreferencesherein totheBuildingshallincludeallrightsspeciϐiedinthatcertainDeclarationofCovenants,Conditions,RestrictionsandReciprocalEasements recordedonDecember12,2011asInstrumentNo.2011-0546359inthe OfϐicialRecordsofRiversideCounty("CC&Rs"). Lesseeshallhave thenon-exclusiverightsappurtenanttotheBuildingParcelpursuanttotheCC&Rs.ForpurposesofthisLease,allreferencestothe "CommonArea"shallmeanonlythoseCommonAreas(as deϐinedinCC&Rs)applicabletotheBuildingParcelandinteriorutilityraceways andinstallationswithinthePremisesforusebyoccupantsoftheBuilding. Lessordoesnothavedirectoversightorcontrolofallthe CommonAreasintheShoppingCenterotherthanthoserightsasan"Owner"oftheBuildingParceltotheextent speciϐiedintheCC&Rs.

1.3 Term: Six(6) yearsand months("OriginalTerm")commencing ("CommencementDate")andending ("ExpiraƟonDate"). (SeealsoParagraph3)SeeParagraph53.

1.4 EarlyPossession: IfthePremisesareavailableLesseemayhavenon-exclusivepossessionofthePremisescommencing ("Early PossessionDate"). (SeealsoParagraphs3.2and3.3)

1.5 BaseRent: $9,249.20 permonth("BaseRent"),payableonthe First(1st) dayofeachmonthcommencing RentCommencement Date as deϐinedinParagraph54 . (SeealsoParagraph4)
Ifthisboxischecked,thereareprovisionsinthisLeasefortheBaseRenttobeadjusted. SeeParagraph 51 .

1.6 PercentageRentRate: percent( %)ofGrossSales. PercentageRentshallbedueandpayableinaccordancewiththeprovisions ofthePercentageRentAddendum,ifany, aƩachedheretoandmadeaparthereof,andParagraph4 hereof.

1.7 Lessee'sShareofCommonArea OperaƟngExpenses: FiftySevenpointNineTwoFive percent( 57.925 %)("Lessee'sShare"). Inthe eventthatthesizeofthePremisesand/ortheShoppingCenterare modiﬁedduringthetermofthisLease,LessorshallrecalculateLessee'sShareto reﬂectsuch modiﬁcaƟon. ThispercentageappliestoBuildingonly.SeeParagraphs62&63.

1.8 Merchants'AssociaƟonAnnualDues: peryear("Merchants'AssociaƟonDues"). LesseeshallpayMerchants'AssociaƟonDues and/orbecomea memberoftheMerchants' AssociaƟoninaccordancewiththeprovisionsoftheMerchants' AssociaƟonAddendum,if any, aƩachedhereto.

1.9 BaseRentandOtherMoniesPaidUpon ExecuƟon:

1.10AgreedUse: generalandadministrative ofϐiceandanyotherlegallypermitteduse . (SeealsoParagraph6)

1.11AgreedTradeName: CityofMurrieta__ . (SeealsoParagraph6)

1.12InsuringParty. Lessoristhe"InsuringParty". (SeealsoParagraph8)

1.13RealEstateBrokers. (SeealsoParagraph15and25)
tothefollowingagency relaƟonshipsinthisLeasewiththefollowingrealestatebrokers("Broker(s)")and/ortheiragents("Agent(s)"):

Lessor'sBrokerageFirm HarvestRealtyDevelopmentInc. LicenseNo. 01964500 Isthebrokerof(checkone): theLessor;or boththe LesseeandLessor(dualagent).

Lessor'sAgent KeXiao/JessicaZhang LicenseNo. 02072888/01986201 is(checkone): theLessor'sAgent(salespersonorbroker associate);or boththeLessee'sAgentandtheLessor'sAgent(dualagent).

STANDARDMULTI-TENANTSHOPPINGCENTERLEASE-NET
(a) BaseRent: $9,249.20 fortheperiod Third(3rd)MonthRent BaseRentforthe1stand2ndmonthsisentirelyabated. (b) CommonArea OperaƟngExpenses: Thecurrent esƟmatefortheperiod FirstMonth is $4,624.60 . (c) SecurityDeposit: ("SecurityDeposit"). (SeealsoParagraph5) (d) Merchants' AssociaƟonDues: fortheperiod .
(e) Other: for .
(f) TotalDueUpon ExecuƟonofthisLease: $13,873.80 .
(a) RepresentaƟon: EachPartyacknowledgesreceivingaDisclosureRegardingRealEstateAgencyRelaƟonship, conﬁrmsandconsents

Lessee'sBrokerageFirm Cushman& WakeϐieldofCalifornia,Inc. LicenseNo. 00616335 Isthebrokerof(checkone): theLessee;or boththeLesseeandLessor(dualagent).

Lessee'sAgent JohnGallivan LicenseNo. 01096309 is(checkone): theLessee'sAgent(salespersonorbrokerassociate);or both theLessee'sAgentandtheLessor'sAgent(dualagent).
(b) PaymenttoBrokers. Upon execuƟonanddeliveryofthisLeasebyboth ParƟes,LessorshallpaytotheBrokersthebrokeragefee agreedtoinaseparate wriƩenagreement(orifthereisnosuchagreement,thesumof or %ofthetotalBaseRent)forthebrokerage servicesrenderedbytheBrokers.

1.14Guarantor. The obligaƟonsoftheLesseeunderthisLeasearetobeguaranteedby ("Guarantor"). (SeealsoParagraph37)

1.15 AƩachments. AƩachedheretoarethefollowing,allofwhich consƟtuteapartofthisLease:
anAddendum consisƟngofParagraphs 53 through 70 ;
asiteplanmarkedExhibit A depicƟngthePremises;
asiteplanmarkedExhibit B depicƟngtheShoppingCenter;
acurrentsetoftheRulesand RegulaƟonsfortheShoppingCenterpertheCC&Rs; acurrentsetoftheSignCriteriafortheShoppingCenterpertheCC&Rs; aWorkLeƩer;
other(specify): (i)CC&Rs;(ii)RentAdjustments (Paragraph51)and (iii)OptionstoExtend(Paragraph52). .

2. Premises.

2.1 Leƫng. LessorherebyleasestoLessee,andLesseeherebyleasesfromLessor,thePremises,fortheterm,attherental,anduponallof theterms,covenantsand condiƟonssetforthinthisLease. WhiletheapproximatesquarefootageofthePremisesmayhavebeenusedinthe markeƟngofthePremisesforpurposesofcomparison,theBaseRentstatedhereinisNOT Ɵedtosquarefootageandisnotsubjecttoadjustment shouldtheactualsizebedeterminedtobe diﬀerent. NOTE:Lesseeisadvisedtoverifytheactualsizepriorto execuƟngthisLease.

2.2 CondiƟon. LessorshalldeliverthePremisestoLesseebroomcleanandfreeofdebrisontheCommencementDateor theEarly PossessionDate,whichever ﬁrstoccurs("StartDate"),and,solongastherequiredservicecontractsdescribedinParagraph7.1(b)beloware obtainedbyLesseeandin eﬀectwithin30daysfollowingtheStartDate,warrantsthatthe exisƟngelectrical,plumbing, ﬁresprinkler,lighƟng, heaƟng, venƟlaƟngandair condiƟoningsystems("HVAC"),loadingdoors,if any,andallother suchelementsinthePremises,otherthanthose constructedbyLessee,shallbeingood operaƟng condiƟononsaiddate,thatthestructuralelementsoftheroof,bearingwallsand foundaƟonof thePremisesshallbefreeofmaterialdefects,andthatthePremisesdonotcontainhazardouslevelsofanymoldor fungi deﬁnedastoxicunder applicablestateorfederallaw. Ifanon-compliancewithsuchwarrantyexistsasoftheStartDate,orifoneofsuchsystemsorelementsshould malfuncƟonorfailwithintheappropriatewarrantyperiod,Lessorshall,asLessor'ssole obligaƟonwithrespecttosuch maƩer,exceptasotherwise providedinthisLease,promptly aŌerreceiptof wriƩen noƟcefromLessee seƫngforthwithspeciﬁcitythenatureandextentofsuch non-compliance, malfuncƟonorfailure, recƟfysameatLessor'sexpense. Thewarrantyperiodsshallbeasfollows:(i)6monthsastotheHVAC systems,and(ii)30daysastotheremainingsystemsandotherelementsofthePremises. IfLesseedoesnotgiveLessortherequired noƟcewithin theappropriatewarrantyperiod, correcƟonofanysuchnon-compliance,malfuncƟonor failureshallbethe obligaƟonofLesseeatLessee'ssole costandexpense(exceptfortherepairstothe ﬁresprinklersystems,roof,foundaƟons,and/orbearingwalls). Lessoralsowarrants,thatunless otherwise speciﬁedin wriƟng,Lessorisunawareof(i)anyrecorded NoƟcesofDefault aﬀecƟngthePremise;(ii)anydelinquentamountsdueunder anyloansecuredbythePremises;and(iii)anybankruptcyproceeding aﬀecƟngthePremises.

2.3 Compliance. Lessorwarrantsthattothebestofits knowledgetheimprovementsonthePremisesandtheCommonAreascomplywith thebuildingcodes,applicablelaws,covenantsor restricƟonsofrecord, regulaƟons,andordinances("ApplicableRequirements")thatwerein eﬀect atthe Ɵmethateachimprovement,or porƟonthereof,wasconstructed. SaidwarrantydoesnotapplytotheusetowhichLesseewillputthe Premises, modiﬁcaƟonswhichmayberequiredbytheAmericanswith DisabiliƟesActoranysimilarlawsasaresultofLessee'suse(seeParagraph 50),ortoany AlteraƟonsor UƟlity InstallaƟons(as deﬁnedinParagraph7.3(a))madeortobemadebyLessee. NOTE:Lesseeisresponsiblefor determiningwhetherornottheApplicableRequirements,andespeciallythezoning,areappropriateforLessee'sintendeduse,and acknowledgesthatpastusesofthePremisesmaynolongerbeallowed. If thePremisesdonotcomplywithsaidwarranty,Lessorshall,exceptas otherwiseprovided,promptly aŌerreceiptof wriƩen noƟcefromLessee seƫngforthwith speciﬁcitythenatureandextentofsuch non-compliance, recƟfythesameatLessor'sexpense. IfLesseedoesnotgiveLessor wriƩen noƟceofa non-compliancewiththiswarrantywithin6 monthsfollowingtheStartDate, correcƟonofthatnon-complianceshallbethe obligaƟonofLesseeatLessee'ssolecostandexpense. Ifthe ApplicableRequirementsare hereaŌerchangedsoastorequireduringthetermofthisLeasetheconstrucƟonofan addiƟontooran alteraƟonof thePremisesand/orBuilding,the remediaƟonofanyHazardousSubstance,orthereinforcementorotherphysicalmodiﬁcaƟonofthePremises and/orBuilding("CapitalExpenditure"),LessorandLesseeshallallocatethecostofsuchworkasfollows:
(a) SubjecttoParagraph2.3(c)below,ifsuchCapitalExpendituresarerequiredasaresultofthe speciﬁcanduniqueuseofthePremises byLesseeascomparedwithusesbytenantsingeneral,Lesseeshallbefullyresponsibleforthecostthereof,provided,however,thatifsuchCapital Expenditureisrequiredduringthelast2yearsofthisLeaseandthecostthereofexceeds6months'BaseRent,Lesseemayinsteadterminatethis LeaseunlessLessor noƟﬁesLessee,in wriƟng,within10days aŌerreceiptofLessee's terminaƟon noƟcethatLessorhaselectedtopaythe diﬀerencebetweentheactualcostthereofandtheamountequalto6months'BaseRent. If Lesseeelects terminaƟon,Lesseeshallimmediately ceasetheuseofthePremiseswhichrequiressuchCapitalExpenditureanddelivertoLessor wriƩen noƟcespecifyinga terminaƟondateatleast90 days thereaŌer.Such terminaƟondateshall,however,innoeventbeearlierthanthelastdaythatLesseecouldlegally uƟlizethePremiseswithout commencingsuchCapitalExpenditure.
(b) IfsuchCapitalExpenditureisnottheresultofthe speciﬁcanduniqueuseofthePremisesbyLessee(suchas,governmentally mandatedseismic modiﬁcaƟons),thenLessorshallpayforsuchCapitalExpenditureandLesseeshallonlybeobligatedtopay,eachmonthduring theremainderofthetermofthisLeaseoranyextensionthereof,onthedatethatonwhichtheBaseRentisdue,anamountequalto1/144thof the porƟonofsuchcostsreasonablyaƩributabletothePremises. LesseeshallpayInterestonthebalancebutmayprepayits obligaƟonatany Ɵme. If,however,suchCapitalExpenditureisrequiredduringthelast2yearsofthisLeaseorif Lessorreasonablydeterminesthatitisnot economicallyfeasibletopayitssharethereof,Lessorshallhavethe opƟontoterminatethisLeaseupon90daysprior wriƩen noƟcetoLessee unlessLessee noƟﬁesLessor,in wriƟng,within10days aŌerreceiptofLessor's terminaƟonnoƟcethatLesseewillpayforsuchCapitalExpenditure.

IfLessordoesnotelecttoterminate,andfailstotenderitsshareofanysuchCapitalExpenditure,Lesseemayadvancesuchfundsanddeductsame, withInterest,fromRent unƟlLessor'sshareofsuchcostshavebeenfullypaid. IfLesseeisunableto ﬁnanceLessor'sshare,orifthebalanceofthe RentdueandpayablefortheremainderofthisLeaseisnot suﬃcienttofullyreimburseLesseeonan oﬀsetbasis,Lesseeshallhavetherightto terminatethisLeaseupon30dayswriƩen noƟcetoLessor.
(c) Notwithstandingtheabove,theprovisionsconcerningCapitalExpendituresareintendedtoapply onlytonon-voluntary,unexpected, andnewApplicableRequirements. IftheCapitalExpendituresareinsteadtriggeredbyLesseeasaresultofanactualorproposedchangeinuse, changeinintensityofuse,or modiﬁcaƟontothePremisesthen,andinthatevent,Lesseeshalleither:(i)immediatelyceasesuchchangeduseor intensityofuseand/ortakesuchotherstepsasmaybenecessarytoeliminatetherequirementforsuchCapitalExpenditure,or (ii)completesuch CapitalExpenditureatitsownexpense. LesseeshallnothaveanyrighttoterminatethisLease.

2.4 Acknowledgements. Lesseeacknowledgesthat: (a)ithasbeengivenanopportunitytoinspectandmeasurethePremises;(b)ithas beenadvisedbyLessorand/orBrokersto saƟsfyitselfwithrespecttothesizeand condiƟonofthePremises(includingbutnotlimitedtothe electrical,HVACand ﬁresprinklersystems,security,environmental aspects,andcompliancewithApplicableRequirementsandtheAmericanswith DisabiliƟesAct)andtheirsuitabilityforLessee'sintendeduse;(c)Lesseehasmadesuch invesƟgaƟonasitdeemsnecessarywithreferencetosuch maƩersandassumesallresponsibilitythereforasthesamerelatetoitsoccupancyofthePremises;(d)itisnotrelyingonany representaƟonasto thesizeofthePremisesmadebyBrokersorLessor;(e)thesquarefootageofthePremiseswasnotmaterialtoLessee'sdecisiontoleasethe PremisesandpaytheRentstatedherein;and(f)neitherLessor,Lessor'sagents,norBrokershavemadeanyoralor wriƩen representaƟonsor warranƟeswithrespecttosaid maƩersotherthanassetforthinthisLease. In addiƟon,Lessoracknowledgesthat:(i)Brokershavemadeno representaƟons,promisesor warranƟesconcerningLessee'sabilitytohonortheLeaseorsuitabilitytooccupythePremises,and(ii)itisLessor's soleresponsibilityto invesƟgatethe ﬁnancialcapabilityand/orsuitabilityofallproposedtenants.

2.5 LesseeasPriorOwner/Occupant. The warranƟesmadebyLessorinParagraph2shallbeofnoforceor eﬀectif immediatelypriortothe StartDateLesseewastheowneroroccupantofthePremises. Insuchevent,Lesseeshallberesponsibleforanynecessary correcƟvework.

2.6 VehicleParking.Lesseeshallhavetherighttouse18parkingspaceswithoutcosttoLessee.Lesseeshallnotuseandshallnotpermit itsemployeestouseanyparkingspacesintheShoppingCenterexceptforparkingbyvehiclesthatarenolargerthanfull-sizepassenger automobilesorpick-uptrucks,hereincalled"PermiƩedSizeVehicles." Lesseeshallpermititsemployeestoonlyoccupythoseparkingspaces,if any,asdepictedasemployeeparkingspacesontheShoppingCentersiteplan. Lessormayregulatetheloadingandunloadingofvehiclesby adopƟngRulesand RegulaƟonsasprovidedinParagraph2.9. Novehiclesotherthan PermiƩedSizeVehiclesmaybeparkedintheCommonArea withouttheprior wriƩenpermissionofLessor. In addiƟon:
(a) LesseeshallnotpermitorallowanyvehiclesthatbelongtoorarecontrolledbyLesseeorLessee'semployees,suppliers,shippers, contractorsorinviteestobeloaded,unloaded,orparkedinareasotherthanthosedesignatedbyLessorforsuch acƟviƟes. (b) LesseeshallnotserviceorstoreanyvehiclesintheCommonAreas. (c) IfLesseepermitsorallowsanyoftheprohibited acƟviƟesdescribedinthisParagraph2.6,thenLessorshallhavetheright,without noƟce,in addiƟontosuchotherrightsandremediesthatitmayhave,toremoveortowawaythevehicleinvolvedandchargethecosttoLessee, whichcostshallbeimmediatelypayableupondemandbyLessor.

2.7 CommonAreas- DeﬁniƟon. Theterm"CommonAreas"is deﬁnedinParagraph1.2asallareasand faciliƟesoutsidethePremisesand withintheexteriorboundarylineoftheShoppingCenterandinterior uƟlityracewaysand installaƟonswithinthePremisesthatareprovidedand designatedbytheLessorfrom Ɵmeto Ɵmeforthegeneralnon-exclusiveuseofLessor,LesseeandothertenantsoftheShoppingCenterandtheir respecƟveemployees,suppliers,shippers,customers,contractorsandinvitees,includingparkingareas,loadingandunloadingareas,trashareas, roadways,walkways,drivewaysandlandscapedareas.

2.8 CommonAreas-Lessee'sRights. LessorgrantstoLessee,forthe beneﬁtofLesseeanditsemployees,suppliers,shippers,contractors, customersandinvitees,duringthetermofthisLease,thenon-exclusiverighttouse,incommonwithothers enƟtledtosuchuse,theCommon Areasastheyexistfrom Ɵmeto Ɵme,subjecttoanyrights,powers,andprivilegesreservedbyLessorunderthetermshereoforunderthetermsof anyrulesand regulaƟonsor restricƟonsgoverningtheuseoftheShoppingCenter.Undernocircumstancesshalltherighthereingrantedtousethe CommonAreasbedeemedtoincludetherighttostoreanyproperty,temporarilyorpermanently,intheCommonAreas,northerighttodisplay merchandiseorconductsalesintheCommonAreas. Anysuchstorage,displayor salesshallbepermiƩedonlybytheprior wriƩenconsentof LessororLessor'sdesignatedagent,asexercisedinLessor'ssole discreƟon,whichconsentmayberevokedatany Ɵme. Intheeventthatany unauthorizedstorageordisplaysshalloccurthenLessorshallhavetheright,without noƟce,in addiƟontosuchotherrightsandremediesthatit mayhave,toremovethepropertyandchargethecosttoLessee,whichcostshallbeimmediatelypayableupondemandbyLessor.

2.9 CommonAreas-Rulesand RegulaƟons. Lessororsuchotherperson(s)asLessormayappointshallhavetheexclusivecontroland managementoftheCommonAreasapplicabletotheBuildingParcelandshallhavetheright,from Ɵmeto Ɵme,toestablish,modify,amendand enforcereasonablerulesand regulaƟons("Rulesand RegulaƟons")forthemanagement,safety,care,andcleanlinessofthegrounds,theparking andunloadingofvehiclesandthe preservaƟonofgoodorder,aswellasfortheconvenienceofotheroccupantsortenantsoftheBuildingandthe ShoppingCenterandtheirinvitees. LesseeagreestoabidebyandconformtoallsuchRulesandRegulaƟons,andshalluseitsbest eﬀortstocause itsemployees,suppliers,shippers,customers,contractorsandinviteestosoabideandconform. LessorshallnotberesponsibletoLesseeforthe non-compliancewithsaidRulesand RegulaƟonsbyothertenantsoftheShoppingCenter.Lesseeshalldiligentlyenforceallrightsapplicableto theBuildingParcelundertheCC&Rs.

2.10CommonAreas-Changes. Lessorshallhavetheright,inLessor'ssole discreƟon,from Ɵmeto ƟmeasauthorizedbytheCC&Rs applicabletotheBuildingParcel:
(a) Tomakechangesor addiƟonstotheCommonAreas,including,without limitaƟon,changesinthe locaƟon,size,shapeandnumberof driveways,entrances,parkingspaces,parkingareas,loadingandunloadingareas,ingress,egress, direcƟonof traﬃc, elevaƟons,landscapedareas, signage,walkwaysand uƟlityraceways;
(b) TouseandclosetemporarilyanyoftheCommonAreasforthepurposeofmaintaining,repairingandalteringtheShoppingCenter theBuilding,solongasreasonableaccesstothePremisesremainsavailable,andtoclosetemporarilyanyoftheCommonAreastowhatever extentisrequiredintheopinionofLessor'scounseltopreventa dedicaƟonofortheaccrualofanyrightsofanypersonsorofthepublictoanyof theCommonAreas;
(c) TodesignateotherlandoutsidetheboundariesoftheShoppingCentertobea partoftheCommonAreasor tobe enƟtledtousethe CommonAreasonareciprocalbasis;
(d) Toadd addiƟonalbuildingsandimprovementstotheCommonAreas;and (e) Todoandperformsuchotheractsandmakesuchotherchangesin,toorwithrespecttotheCommonAreasandShoppingCenteras Lessormay,intheexerciseofsoundbusinessjudgment,deemtobeappropriate.

2.11CommonAreas- PromoƟonalEvents;SidewalkSales. Lessorreservestheright,from Ɵmeto Ɵme,inLessor'ssole discreƟon,to uƟlize porƟonsoftheCommonAreasfor promoƟonalevents,whichmayincludebutshallnotbelimitedtoentertainment. Lessorfurtherreservesthe right,inLessor'ssole discreƟon,topermitanyoneormoretenantsoftheShoppingCentertoconductthedisplayand/orsaleofmerchandisefrom thesidewalksimmediatelyadjacenttosuchtenants' respecƟvepremises.

2.12CommonAreas-Remodeling. Atany ƟmeduringtheTerm,Lessormayremodelorexpand,inany manner,the exisƟngShoppingCenter, whichworkmayinclude,without limitaƟon,the addiƟonofshopsand/ornewbuildingstotheShoppingCenter (collecƟvely,"RemodeledCenter").

IfLessordeemsitnecessaryfor construcƟonpersonneltoenterthePremisesinordertoconstructtheRemodeledCenter,LessorshallgiveLessee nolessthan60daysprior noƟceandLesseeshallallowsuchentry. Lessorshallusereasonable eﬀortstocompleteanywork aﬀecƟngthePremises inan eﬃcientmannersoasnottointerfereunreasonablywithLessee'sbusiness. Lesseeshallnotbe enƟtledtoanydamagesforany inconvenienceorany disrupƟontoLessee'sbusinesscausedbysuchwork;provided,however,theBaseRentpaidbyLesseefortheperiodofthe inconvenienceshallbeabatedin proporƟontothedegreethatLessee'suseofthePremisesisimpaired. Lessorshallhavetherighttouse porƟons ofthePremisestoaccommodateanystructuresrequiredfortheRemodeledCenter,providedthatifasaresultthereofthereisa permanent decreaseinthe ﬂoorareaofthePremisesof3%ormore,thereshallbea proporƟonatedownwardadjustmentofBaseRentandLessee'sShare.

3. Term.

3.1 Term. TheCommencementDate, ExpiraƟonDateandOriginalTermofthisLeaseareas speciﬁedinParagraph1.3.

3.2 EarlyPossession. Anyprovisionherein granƟngLesseeEarlyPossessionofthePremisesissubjecttoand condiƟoneduponthePremises beingavailableforsuchpossessionpriortotheCommencementDate. AnygrantofEarlyPossessiononlyconveysanon-exclusiverighttooccupy thePremises. IfanEarlyPossessionDatehasbeen speciﬁedinParagraph1.4,the ParƟesintendthatLesseeshallhaveaccesstothePremisesasof theEarlyPossessionDateforpurposesofpreparingand ﬁxturizingthePremisesfortheconductofLessee'sbusiness. IfLesseetotallyor parƟally occupiesthePremisespriortotheCommencementDateforanyreason(andforpurposeshereof,"occupancy"shallinclude,without limitaƟon, Lessee'sentryontothePremisesforpurposesofpreparingand ﬁxturizingthePremisesforbusiness),the obligaƟontopayBaseRentand PercentageRentshallbeabatedfortheperiodofsuchearlypossession. AllothertermsofthisLease(includingbutnotlimitedtoLessee's obligaƟonstocarryinsuranceandtomaintainthePremises)shallbein eﬀectduringsuchperiod,exceptthatLessee's obligaƟonstopayLessee's ShareofCommonArea OperaƟngExpenses,RealPropertyTaxesandinsurancepremiumsshallonlybein eﬀectpriortotheCommencementDateif LesseehasopenedforbusinessinthePremisespriortotheCommencementDate. AnysuchEarlyPossessionshallnot aﬀectthe ExpiraƟonDate.

3.3 DelayInPossession. Lessoragreestousecommerciallyreasonable eﬀortstodeliverexclusivepossessionofthePremisestoLesseeby theCommencementDate. If,despitesaid eﬀorts,Lessorisunabletodeliverpossessionbysuchdate,Lessorshallnotbesubjecttoanyliability therefor,norshallsuchfailure aﬀectthevalidityofthisLeaseorchangethe ExpiraƟonDate. Lesseeshallnot,however,beobligatedtopayRentor performitsother obligaƟons unƟlLessordeliverspossessionofthePremisesandanyperiodofrentabatementthatLesseewouldotherwisehave enjoyedshallrunfromthedateofdeliveryofpossessionand conƟnueforaperiodequaltowhatLesseewouldotherwisehaveenjoyedunderthe termshereof,butminusanydaysofdelaycausedbytheactsoromissionsofLessee. If possessionisnotdeliveredwithin60days aŌerthe CommencementDate,asthesamemaybeextendedunderthetermsofanyWork LeƩerexecutedby ParƟes,Lesseemay,atits opƟon,by noƟcein wriƟngwithin10days aŌertheendofsuch60dayperiod,cancelthisLease,inwhicheventthe ParƟesshallbedischargedfromall obligaƟons hereunder.If such wriƩen noƟceisnotreceivedbyLessorwithinsaid10dayperiod,Lessee'srighttocancelshallterminate. Ifpossessionofthe Premisesisnotdeliveredwithin120days aŌertheCommencementDate,thisLeaseshallterminateunlessotheragreementsarereachedbetween LessorandLessee,in wriƟng.

3.4 LesseeCompliance. LessorshallnotberequiredtotenderpossessionofthePremisestoLessee unƟlLesseecomplieswithits obligaƟon toprovideevidenceofinsurance(Paragraph8.5). Pendingdeliveryofsuchevidence,Lesseeshallberequiredtoperformallofits obligaƟonsunder thisLeasefromand aŌertheStartDate,includingthepaymentofRent,notwithstandingLessor's elecƟontowithholdpossessionpendingreceiptof suchevidenceofinsurance. Further,ifLesseeisrequiredtoperformanyother condiƟonspriortoor concurrentwiththeStartDate,theStartDate shalloccurbutLessormayelecttowithholdpossession unƟlsuch condiƟonsare saƟsﬁed.

4. Rent.

4.1 Rent Deﬁned. Allmonetary obligaƟonsofLesseetoLessorunderthetermsofthisLease(exceptfortheSecurityDeposit)aredeemedto berent("Rent").

4.2 CommonArea OperaƟngExpenses. LesseeshallpaytoLessorduringthetermhereof,in addiƟontotheBaseRentand,ifapplicable, PercentageRent,Lessee'sShare(as speciﬁedinParagraph1.7)ofallCommonArea OperaƟngExpenses,as hereinaŌerdeﬁned,duringeach calendaryearofthetermofthisLease,inaccordancewiththefollowingprovisions: SeeParagraph61. (a) "CommonArea OperaƟngExpenses"are deﬁned,forpurposesofthisLease,asallcosts relaƟngtotheownershipand operaƟonof theBuildingParcelShoppingCenter,including,butnotlimitedto,thefollowing:
(i) Costs relaƟngtothe operaƟon,repairandmaintenance,inneat,clean,goodorderandcondiƟon,andreplacementas reasonablynecessary,ofthefollowing:
(aa) TheCommonAreasandCommonAreaimprovements,includingparkingareas,loadingandunloadingareas,trashareas, roadways,parkways,walkways,driveways,landscapedareas,parkinglotstriping,bumpers,irrigaƟonsystems,CommonArea lighƟng faciliƟes, fencesandgates,elevators,roofs,exteriorwallsofthebuildings,buildingsystemsandroofdrainagesystems. (bb) Exteriorsignsandanytenantdirectories.
(cc) Any ﬁre detecƟonand/orsprinklersystems.
(dd) Commonelectrical,plumbingandother uƟliƟesservicinganybuildingintheShoppingCenterand/ortheCommonAreas. (ee) AllotherareasandimprovementsthatarewithintheexteriorboundariesoftheProjectbutoutsideofthePremisesand/or anyotherspaceoccupiedbyatenant.
(ii) Thecostofwater,gas,electricityandtelephonetoservicetheCommonAreasandany uƟliƟesnotseparatelymetered.See Paragraph56.
(iii) Thecostoftrashdisposal(subjecttoParagraph56) ,pestcontrolservices,propertymanagement(including,butnotbe limitedto,apropertymanagementfeetoLessorequalto5%ofBaseRentandPercentageRent),securityservices,andthecostsofany environmental inspecƟons.
(iv) Reservessetasideforequipment,maintenance,repairandreplacementofCommonAreas. (v) RealPropertyTaxes(as deﬁnedinParagraph10).SubjecttoParagraph62. (vi) ThecostofthepremiumsfortheinsurancemaintainedbyLessorpursuanttoParagraph8. (vii) Any deducƟble porƟonofaninsuredlossconcerningtheBuildingortheCommonAreas. (viii)Auditors',accountants'and aƩorneys'feesandcostsrelatedtothe operaƟonoftheBuildingShoppingCenter. (ix) ThecostofanycapitalimprovementtotheBuildingortheShoppingCenternotcoveredundertheprovisionsofParagraph2.3, provided,however,thatLessorshallallocatethecostofanysuchcapitalimprovementoverthestandardlifeoftheitemandallocatedin accordancewithgenerallyacceptedaccountingprincipals a 12yearperiodandLesseeshallnotberequiredtopaymorethanLessee'sShareof 1/144thofthecostofsuchcapitalimprovementinanygivenmonth. LesseeshallpayInterestonthe unamorƟzedbalancebutmayprepayits obligaƟonatany Ɵme.
(x) ThecostofanyotherservicestobeprovidedbyLessorthatarestatedelsewhereinthisLeasetobeaCommonArea OperaƟng Expense.
(xi)TheProportionateShare(as deϐinedintheCC&Rs)applicabletotheBuildingParcelasassessedtoLessorasOwnerofthe BuildingParcel.LessorshallprovideacopyoftheeachandeveryProportionateSharebillingreceivedbyLessorfromtheMaintenance Operator(as deϐinedintheCC&Rs).LesseeshallhavetherighttoreviewsuchcostsallocatedastheProportionateShareandtochallenge sameinthenameofLessorundertheCC&RsifLessorfailstodoso
CommonAreaOperatingExpensesshallnotinclude(i)anyitemssuchasutilitiesandrealestatetaxeswhicharegovernedby Paragraphs56and62,respectively;and(ii)anycapitalrepairsorimprovements,excepttotheextentsuchitemsreduceoperatingexpenses orarerequiredtocomplywithApplicableRegulations.
(b) IfLessordeterminesthatthemethodof proraƟonofanyitemincludedwithinCommonAreaOperaƟngExpensesisinequitable,the partiesshallagreeto LessormayproratesuchitemonthebasisofusageorotherequitableconsideraƟons. AnyCommonArea OperaƟng ExpensesandRealPropertyTaxesthatare speciﬁcally aƩributabletothePremises ,theBuildingortoanyotherpremisesorbuildinginthe ShoppingCenterortothe operaƟon,repairandmaintenancethereof,shallbeallocatedenƟrelytosuchpremisesorbuilding. However,any CommonArea OperaƟngExpensesandRealPropertyTaxesthatarenot speciﬁcally aƩributabletoanypremisesorbuildingortothe operaƟon, repairandmaintenancethereof,shallbeequitablyallocatedbyLessortoallbuildingsintheShoppingCenter. SeeParagraph62regardingreal estatetaxes. LesseeshallhavetherighttoaudittheCommonAreaOperatingExpensesatanytimeutilizingareputableaccounting ϐirm.

Upon ϐinaldeterminationoftheaudit,anyadjustmentshallbepaidbyLessororLessee,asapplicable. (c) Theinclusionoftheimprovements, faciliƟesandservicessetforthinSubparagraph4.2(a)shallnotbedeemedtoimposean obligaƟonuponLessortoeitherhavesaidimprovementsor faciliƟesortoprovidethoseservicesunlesstheShoppingCenteralreadyhasthesame, Lessoralreadyprovidestheservices,orLessorhasagreedelsewhereinthisLeasetoprovidethesameor someofthem. (d) Lessee'sShareofCommonArea OperaƟngExpensesispayablemonthlyonthesamedayastheBaseRentisduehereunder.The amountofsuchpaymentsshallbebasedonLessor's esƟmateoftheannualCommonArea OperaƟngExpenses. Within60days aŌer wriƩen request(butnotmorethanonceeachyear)LessorshalldelivertoLesseeareasonablydetailedstatementshowingLessee'sShareoftheactual CommonArea OperaƟngExpensesfortheprecedingyear. IfLessee'spaymentsduringsuchyearexceedLessee'sShare,Lessorshallcreditthe amountofsuchover-paymentagainstLessee'sfuturepayments. IfLessee'spaymentsduringsuchyearwerelessthanLessee'sShare,Lesseeshall paytoLessortheamountofthe deﬁciencywithin10days aŌerdeliverybyLessortoLesseeofthestatement. (e) If thereareoneormoreMajorTenants(as hereinaŌer deﬁned)withintheShoppingCenter,thenatLessor'ssole opƟon,theamount tobereimbursedbysuchMajorTenantstoLessorforallora porƟonoftheCommonArea OperaƟngExpensesmaybedeterminedby alternaƟve equitablemethods(e.g.,aMajorTenantmaypaydirectlyforits ownsecurity),andtheactualamountpaidbysuchMajorTenantsshallbecredited againsttheCommonArea OperaƟngExpensesallocatedtoothertenantsoftheShoppingCenter;provided,however,thatinsucheventthe rentableareaofthebuildingsleasedtosuchMajorTenantsshallbeexcludedfromtherentableareaoftheShoppingCenterforpurposesof determiningLessee'sShareofCommonArea OperaƟngExpensesforthose speciﬁcitems,notwithstandingthepercentagesetforthinParagraph

1.7. Asusedherein,theterm"MajorTenant"shallmeanatenantleasingatleast15,000squarefeetofrentableareawithintheShoppingCenter. (f) CommonArea OperaƟngExpensesshallnotincludeanyexpensespaidbyanytenantdirectlytothird parƟes,orastowhichLessoris otherwisereimbursedbyanythirdparty,othertenant,orinsuranceproceedsexceptasprovidedotherwiseintheLeaseincludingParagraph

13.6. 4.3 Payment. LesseeshallcausepaymentofRenttobereceivedbyLessorinlawfulmoneyoftheUnitedStates,without oﬀsetor deducƟon (exceptas speciﬁcally permiƩedinthisLease),onorbeforethedayonwhichitisdue. Allmonetaryamountsshallberoundedtothenearestwhole dollar. IntheeventthatanyinvoicepreparedbyLessorisinaccuratesuchinaccuracyshallnotconsƟtuteawaiverandLesseeshallbeobligatedto paytheamountsetforthinthisLease. Rentforanyperiodduringthetermhereofwhichisforlessthanonefullcalendarmonthshallbeprorated basedupontheactualnumberofdaysofsaidmonth. PaymentofRentshallbemadetoLessoratitsaddressstatedhereinortosuchotherpersons orplaceasLessormayfrom Ɵmeto Ɵmedesignatein wriƟng. Acceptanceofapaymentwhichislessthantheamountthendueshallnotbea waiverofLessor'srightstothebalanceofsuchRent,regardlessofLessor'sendorsementofanycheckso staƟng. Intheeventthatanycheck, draŌ, orotherinstrumentofpaymentgivenbyLesseetoLessorisdishonoredforanyreason,LesseeagreestopaytoLessorthesumof$25in addiƟonto anyLateChargeandLessor,atits opƟon,mayrequireallfutureRentbepaidbycashier'scheck. Paymentswillbeapplied ﬁrsttoaccruedlate chargesand aƩorney'sfees,secondtoaccruedinterest,thentoBaseRentandCommonArea OperaƟngExpenses,andanyremainingamountto anyotheroutstandingchargesorcosts.

5. SecurityDeposit. LesseeshalldepositwithLessorupon execuƟonhereoftheSecurityDepositassecurityforLessee'sfaithfulperformanceof its obligaƟonsunderthisLease. IfLesseefailstopayRent,orotherwiseDefaultsunderthisLease,Lessormayuse,applyorretainallorany porƟon ofsaidSecurityDepositforthepaymentofanyamountalreadydueLessor,forRentswhichwillbedueinthefuture,and/ortoreimburseor compensateLessorforanyliability,expense,lossordamagewhichLessormay suﬀerorincurbyreasonthereof. IfLessorusesorappliesallorany porƟonoftheSecurityDeposit,Lesseeshallwithin10days aŌer wriƩenrequesttherefordepositmonieswithLessor suﬃcienttorestoresaid SecurityDeposittothefullamountrequiredbythisLease. IftheBaseRentincreasesduringthetermofthisLease,Lesseeshall,upon wriƩen requestfromLessor,deposit addiƟonalmonieswithLessorsothatthetotalamountoftheSecurityDepositshallatall Ɵmesbearthesame proporƟontotheincreasedBaseRentasthe iniƟalSecurityDepositboretothe iniƟalBaseRent. ShouldtheAgreedUsebeamendedto accommodateamaterialchangeinthebusinessofLesseeortoaccommodateasublesseeorassignee,Lessorshallhavetherighttoincreasethe SecurityDeposittotheextentnecessary,inLessor'sreasonablejudgment,toaccountforanyincreasedwearandtearthatthePremisesmay suﬀer asaresultthereof. IfachangeincontrolofLesseeoccursduringthisLeaseandfollowingsuchchangethe ﬁnancial condiƟonofLesseeis,in Lessor'sreasonablejudgment, signiﬁcantlyreduced,Lesseeshalldepositsuch addiƟonalmonieswithLessorasshallbe suﬃcienttocausethe SecurityDeposittobeatacommerciallyreasonablelevelbasedonsuchchangein ﬁnancial condiƟon. Lessorshallnotberequiredtokeepthe SecurityDepositseparatefromitsgeneralaccounts. Within90days aŌerthe expiraƟonorterminaƟonofthisLease,Lessorshallreturnthat porƟonoftheSecurityDepositnotusedor appliedbyLessor. Lessorshallupon wriƩenrequestprovideLesseewithan accounƟngshowinghow that porƟonoftheSecurityDepositthatwasnotreturnedwasapplied. NopartoftheSecurityDepositshallbeconsideredtobeheldintrust,to bearinterestor tobeprepaymentforanymoniestobepaidbyLesseeunderthisLease. THESECURITYDEPOSITSHALLNOTBEUSEDBYLESSEEIN LIEUOFPAYMENTOFTHELASTMONTH'SRENT.

6. Use.

6.1 Use.
(a) AgreedUse;AgreedTradeName. LesseeshalluseandoccupythePremisesonlyfortheAgreedUse,andfornootherpurpose,and LesseeshalloperateatthePremisesonlyundertheAgreedTradeNameandundernoothertradename. Lesseeshallnotuseorpermittheuseof thePremisesinamannerthatisunlawful,createsdamage,wasteoranuisance,orthatdisturbsoccupantsoforcausesdamagetoneighboring premisesor properƟes. Otherthanguide,signalandseeingeyedogs,Lesseeshallnotkeepor allowinthePremisesanypets,animals,birds, ﬁsh, or repƟles. Lessorshallnotunreasonablywithholdordelayits consenttoany wriƩenrequestfora modiﬁcaƟonoftheAgreedUse,solongasthe samewillnotimpairthestructuralintegrityoftheimprovementonthePremisesorthemechanicalorelectricalsystemstherein,and/orisnot signiﬁcantlymoreburdensometothePremises,and/orisnotin conﬂictwithor incompaƟblewiththe exisƟngor proposeduses(whetherornot exclusive)ofotheroccupantsoftheShoppingCenter.Lessorshallnotunreasonablywithholdordelayitsconsenttoany wriƩenrequestfora modiﬁcaƟonoftheAgreedTradeName,solongasthesameisnotin conﬂictwithor incompaƟblewiththenatureandcharacteroftheShopping Centerorother exisƟngorproposedusesofotheroccupantsoftheShoppingCenter. IfLessorelectstowithholdconsent,Lessorshallwithin7 days aŌersuchrequestgive wriƩen noƟﬁcaƟonofsame,which noƟceshallincludean explanaƟonofLessor's objecƟonstothechangeintheAgreedUse and/orAgreedTradeName.
(b) ConƟnuous OperaƟon. Lesseeshall conƟnuously(i)operateandconducttheAgreedUseundertheAgreedTradeNamewithinthe enƟrePremisesinareputablemannerandinconformitywithindustrystandardsof pracƟceprevailinginthe ﬁeldofbusinessamongmerchants engagedinthesameor similarbusinessinthecityinwhichthePremisesarelocated,(ii) staﬀthePremiseswith suﬃcientsalespersonnel,stockthe Premiseswithadequatemerchandiseandexercisesoundbusiness pracƟcessoastomaximizeGrossSalesforthe beneﬁtofLessor. Ataminimum, LesseeshallkeepthePremises conƟnuouslyopenforbusinessMondaythroughFridayfrom9:00a.m.to6:00p.m.,Saturdayfrom9:00a.m.to6:00 p.m.,andSundayfrom10:00a.m.to6:00p.m. IfLesseefailstocomplywiththerequirementsofthisParagraph6.1(b),thenin addiƟontoanyand allotherrightsandremediesofLessor,LesseeshallpaytoLessoranamountequalto1/15thoftheBaseRentforeachdayor porƟonthereofthat Lesseefailstosocomply. Suchsumshallbein addiƟonto,andnotapartof,theBaseRentotherwisedueunderthisLease. (c) ViolaƟonsofExclusiveUseRights. LesseeacknowledgesthatLessormaygrant,ormayhavepreviouslygranted,exclusiveuserights toothertenantsoftheShoppingCenterandagreesthatamaterial consideraƟontoLessorinenteringintothisLeaseisLessee'scovenanttolimitits useofthePremisestotheAgreedUseundertheAgreedTradeNameassetforthabove. Lessee'sviolaƟonofexclusiveuserightsgrantedtoother tenantsoftheShoppingCenterwillresultinLessor suﬀeringirreparableharmand,therefore,in addiƟontoallotherrightsandremediesavailable toLessor,LessormayseektoenjoinLessee'sbreachofsuchcovenantandLesseeshallbeliableforanydamagesincurredorsustainedbyLessorto suchothertenantswhoseexclusiveuserightsarebreachedbyLessee. InnoeventshallLessorbeliabletoLesseeforanyfailureofanyother tenantsoftheShoppingCentertooperatetheirbusinesses,orforanylossor damagethatmaybeoccasionedbyorthroughtheactsoromissions ofothertenantsorthird parƟes.
(d) OtherTenancies. Lessor,atitssole discreƟon,reservestheabsoluterighttoestablishprocedurestocontrolothertenanciesinthe Building ShoppingCenter. Regardlessofwhetherany speciﬁctenantsareshownonanysiteplan aƩachedhereto,Lesseedoesnotrelyonthat fact,nordoesLessorrepresentthatany speciﬁctenantornumberortypeoftenantsshallorshallnotduringtheTermoccupyany porƟonofthe Building ShoppingCenter,nordoesLesseerelyonanyothertenant operaƟngitsbusinessintheShoppingCenteratany parƟcular Ɵmeor Ɵmes.

Further,noconductbyanytenant,subtenantorotheroccupantof,oranycustomerof,oranysuppliertooruseofany porƟonoftheShopping Centershall consƟtutean evicƟon, construcƟveorotherwise,ofLesseefromthePremises,andLesseeherebywaivesanyandallclaimsthatit mightotherwisehaveagainstLessorbyreasonthereof.

6.2 HazardousSubstances. SeeParagraph65
(a) ReportableUsesRequireConsent. Theterm"HazardousSubstance"asusedinthisLeaseshallmeananyproduct,substance,or wastewhosepresence,use,manufacture,disposal, transportaƟon,orrelease,eitherbyitselforin combinaƟonwithothermaterialsexpectedtobe onthePremises,iseither:(i) potenƟallyinjurioustothepublichealth,safetyorwelfare,theenvironmentorthePremises,(ii)regulatedor monitoredbyanygovernmentalauthority,or(iii)abasisfor potenƟalliabilityofLessortoanygovernmentalagencyorthirdpartyunderany applicablestatuteorcommonlawtheory. HazardousSubstancesshallinclude,butnotbelimitedto,hydrocarbons,petroleum,gasoline,and/or crudeoiloranyproducts,byproductsor fracƟonsthereof. Lesseeshallnotengageinany acƟvityinoronthePremiseswhich consƟtutesa ReportableUseofHazardousSubstanceswithouttheexpressprior wriƩenconsentofLessorand Ɵmely compliance(atLessee'sexpense)withall ApplicableRequirements. "ReportableUse"shallmean(i)the installaƟonoruseofanyaboveorbelowgroundstoragetank,(ii)the generaƟon, possession,storage,use, transportaƟon,or disposalofa HazardousSubstancethatrequiresapermitfrom,orwithrespecttowhicha report, noƟce, registraƟonorbusinessplanisrequiredtobe ﬁledwith,anygovernmentalauthority,and/or(iii) thepresenceatthePremisesofaHazardous SubstancewithrespecttowhichanyApplicableRequirementsrequiresthata noƟcebegiventopersonsenteringoroccupyingthePremisesor neighboring properƟes. Notwithstandingtheforegoing,Lesseemayuseanyordinaryandcustomarymaterialsreasonablyrequiredtobeusedin thenormalcourseoftheAgreedUse,ordinary oﬃcesupplies(copiertoner,liquidpaper,glue,etc.)andcommonhouseholdcleaningmaterials,so longassuchuseisincompliancewithallApplicableRequirements,isnotaReportableUse,anddoesnotexposethePremisesorneighboring propertytoanymeaningfulriskof contaminaƟonordamageor exposeLessortoanyliabilitytherefor. In addiƟon,Lessormay condiƟonitsconsent toanyReportableUseuponreceivingsuch addiƟonalassurancesasLessorreasonablydeemsnecessarytoprotectitself,thepublic,thePremises and/ortheenvironmentagainstdamage, contaminaƟon,injuryand/orliability,including,butnotlimitedto,the installaƟon(andremovalonor beforeLease expiraƟonor terminaƟon)of protecƟve modiﬁcaƟons(suchasconcreteencasements)and/orincreasingtheSecurityDeposit. (b) DutytoInformLessor. IfLesseeknows,orhasreasonablecausetobelieve,thata HazardousSubstancehascometobelocatedin, on,underoraboutthePremises,otherthanaspreviouslyconsentedtobyLessor,Lesseeshallimmediatelygive wriƩen noƟceofsuchfactto Lessor,andprovideLessorwithacopyofanyreport, noƟce,claimorother documentaƟonwhichithasconcerningthepresenceofsuchHazardous Substance.
(c) Lessee RemediaƟon. LesseeshallnotcauseorpermitanyHazardousSubstancetobespilledorreleasedin,on,under,oraboutthe Premises(includingthroughtheplumbingorsanitarysewersystem)andshallpromptly,atLessee'sexpense,complywithallApplicable Requirementsandtakeall invesƟgatoryand/orremedial acƟonreasonablyrecommended,whetherornotformallyorderedorrequired,forthe cleanupofany contaminaƟonof,andforthemaintenance,securityand/ormonitoringofthePremisesorneighboring properƟes,thatwascaused ormateriallycontributedtobyLessee,orpertainingtoorinvolvinganyHazardousSubstancebroughtontothePremisesduringthetermofthis Lease,byorforLessee,oranythirdparty.
(d) Lessee IndemniﬁcaƟon. Lesseeshallindemnify,defendandholdLessor,itsagents,employees, lendersandgroundlessor,ifany, harmlessfromandagainstanyandalllossofrentsand/ordamages, liabiliƟes,judgments,claims, expenses,penalƟes,and aƩorneys'and consultants'feesarisingoutoforinvolvinganyHazardousSubstancebroughtontothePremisesbyorforLessee,or anythirdparty(provided, however,thatLesseeshallhavenoliabilityunderthisLeasewithrespecttounderground migraƟonofanyHazardousSubstanceunderthePremises fromareasoutsideoftheShoppingCenternotcausedorcontributedtobyLessee). Lessee'sobligaƟonsshallinclude,butnotbelimitedto,the eﬀectsofany contaminaƟonorinjurytoperson,propertyortheenvironmentcreatedor suﬀeredbyLessee,andthecostof invesƟgaƟon,removal, remediaƟon, restoraƟonand/orabatement,andshallsurvivethe expiraƟonor terminaƟonofthisLease. No terminaƟon, cancellaƟonor release agreemententeredintobyLessorandLesseeshallreleaseLesseefromits obligaƟonsunderthisLeasewithrespecttoHazardousSubstances, unless speciﬁcallysoagreedbyLessorin wriƟngatthe Ɵmeofsuchagreement. (e) Lessor IndemniﬁcaƟon. Exceptasotherwiseprovidedinparagraph8.7,Lessoranditssuccessorsandassignsshallindemnify, defend,reimburseandholdLessee,itsemployeesandlenders,harmlessfromandagainstanyandallenvironmentaldamages,includingthecostof remediaƟon,whichare suﬀeredasadirectresultofHazardousSubstancesonthePremisespriortoLesseetakingpossessionorwhicharecausedby thegrossnegligenceorwillfulmisconductofLessor,itsagentsoremployees. Lessor's obligaƟons,asandwhenrequiredbytheApplicable Requirements,shallinclude,butnotbelimitedto,thecostof invesƟgaƟon,removal,remediaƟon, restoraƟonand/orabatement,andshallsurvive the expiraƟonor terminaƟonofthisLease.
(f) InvesƟgaƟonsand RemediaƟons. Lessorshallretaintheresponsibilityandpayforany invesƟgaƟonsor remediaƟonmeasures requiredbygovernmental enƟƟeshaving jurisdicƟonwithrespecttotheexistenceofHazardousSubstancesonthePremisespriortoLesseetaking possession,unlesssuch remediaƟonmeasureisrequiredasaresultofLessee'suse(including"AlteraƟons",as deﬁnedinparagraph7.3(a)below)of thePremises,inwhicheventLesseeshallberesponsibleforsuchpayment. Lesseeshallcooperatefullyinanysuch acƟviƟesattherequestof Lessor,includingallowingLessorandLessor'sagentstohavereasonableaccesstothePremisesatreasonable ƟmesinordertocarryoutLessor's invesƟgaƟveandremedial responsibiliƟes.
(g) Lessor T erminaƟonOpƟon. IfaHazardousSubstance CondiƟon(seeParagraph9.1(e))occursduringthetermofthisLease,unless Lesseeislegallyresponsibletherefor(inwhichcaseLesseeshallmakethe invesƟgaƟonandremediaƟonthereofrequiredbytheApplicable RequirementsandthisLeaseshall conƟnueinfullforceand eﬀect,butsubjecttoLessor'srightsunderParagraph6.2(d)andParagraph13),Lessor may,atLessor's opƟon,either(i) invesƟgateandremediatesuchHazardousSubstance CondiƟon,ifrequired,assoonasreasonablypossibleat Lessor'sexpense,inwhicheventthisLeaseshall conƟnueinfullforceand eﬀect,or(ii)if the esƟmatedcosttoremediatesuch condiƟonexceeds12 ƟmesthethenmonthlyBaseRentor$100,000,whicheverisgreater,give wriƩen noƟcetoLessee,within30days aŌerreceiptbyLessorof knowledgeoftheoccurrenceofsuchHazardousSubstance CondiƟon,ofLessor'sdesiretoterminatethisLeaseasofthedate60daysfollowingthe dateofsuch noƟce. IntheeventLessorelectstogivea terminaƟon noƟce,Lesseemay,within10daysthereaŌer,give wriƩen noƟcetoLessorof Lessee'scommitmenttopaytheamountbywhichthecostofthe remediaƟonofsuchHazardousSubstance CondiƟonexceedsanamountequalto 12 ƟmesthethenmonthlyBaseRentor $100,000,whicheverisgreater.LesseeshallprovideLessorwithsaidfundsor saƟsfactoryassurance thereofwithin30daysfollowingsuchcommitment. Insuchevent,thisLeaseshall conƟnueinfullforceand eﬀect,andLessorshallproceedto makesuch remediaƟonassoonasreasonablypossible aŌertherequiredfundsareavailable. IfLesseedoesnotgivesuch noƟceandprovidethe requiredfundsorassurancethereofwithinthe Ɵmeprovided,thisLeaseshallterminateasofthedate speciﬁedinLessor's noƟceof terminaƟon.

6.3 Lessee'sCompliancewithApplicableRequirements. ExceptasotherwiseprovidedinthisLease,Lesseeshall,atLessee'ssoleexpense, fully,diligentlyandina Ɵmelymanner,materiallycomplywithallApplicableRequirements,therequirementsofanyapplicable ﬁreinsurance underwriteror raƟngbureau,andthe recommendaƟonsofLessor'sengineersand/orconsultantswhichrelateinanymannertothePremises, withoutregardtowhethersaidApplicableRequirementsarenowin eﬀectorbecomeeﬀecƟve aŌertheStartDate. Lesseeshall,within10days aŌerreceiptofLessor's wriƩenrequest,provideLessorwithcopiesofallpermitsandotherdocuments,andother informaƟonevidencingLessee's compliancewithanyApplicableRequirements speciﬁedbyLessor,andshallimmediatelyuponreceipt, noƟfyLessorin wriƟng(withcopiesofany documentsinvolved)ofanythreatenedoractualclaim, noƟce, citaƟon,warning,complaintorreportpertainingtoorinvolvingthefailureofLessee orthePremisestocomplywithanyApplicableRequirements. Likewise,Lesseeshallimmediatelygive wriƩen noƟcetoLessorof:(i)anywater damagetothePremisesandanysuspectedseepage,pooling,dampnessorother condiƟonconducivetothe producƟonofmold;or(ii)any musƟnessorotherodorsthatmightindicatethepresenceofmoldinthePremises.

6.4 InspecƟon;Compliance. LessorandLessor's"Lender"(as deﬁnedinParagraph30)andconsultantsauthorizedbyLessorshallhavetherightto enterintoPremisesatany Ɵmeinthecaseofanemergency,andotherwiseatreasonable Ɵmes duringLessee'sbusinesshours aŌerreasonable noƟce,forthepurposeof inspecƟngand/or tesƟngthe condiƟonofthePremisesand/orforverifyingcompliancebyLesseewiththisLease. The costofanysuch inspecƟonsshallbepaidbyLessor,unlessa violaƟonofApplicableRequirements,or aHazardousSubstanceCondiƟon(see Paragraph9.1(e))isfoundtoexistor beimminent,or the inspecƟonisrequestedororderedbyagovernmentalauthority. Insuchcase,Lesseeshall uponrequestreimburseLessorforthecostofsuch inspecƟon,solongassuch inspecƟonisreasonablyrelatedtothe violaƟonor contaminaƟon. In addiƟon,Lesseeshallprovidecopiesofallrelevantmaterialsafetydatasheets(MSDS)toLessorwithin10daysofthereceiptof wriƩenrequest therefor.Lesseeacknowledgesthatanyfailureonitsparttoallowsuch inspecƟonsor tesƟngwillexposeLessortorisksand potenƟallycause LessortoincurcostsnotcontemplatedbythisLease,theextentofwhichwillbeextremelydiﬃculttoascertain. Accordingly,shouldtheLesseefail toallowsuch inspecƟonsand/or tesƟngina ƟmelyfashiontheBaseRentshallbe automaƟcallyincreased,withoutanyrequirementfor noƟceto Lessee,byanamountequalto10%ofthethen exisƟngBaseRentor $100,whicheverisgreaterfortheremaindertotheLease. The ParƟesagree thatsuchincreaseinBaseRentrepresentsfairandreasonable compensaƟonforthe addiƟonalrisk/coststhatLessorwillincurbyreasonofLessee's failuretoallowsuch inspecƟonand/or tesƟng. SuchincreaseinBaseRentshallinnoevent consƟtuteawaiverofLessee'sDefaultorBreachwith respecttosuchfailurenorpreventtheexerciseofanyoftheotherrightsandremediesgrantedhereunder.PriortoLessor's ϐiremaintenance companyenteringthePremisestoconductanytestingorrepaironthe ϐirecontrolunit,LessorshallprovideLesseeatleast5daysprior writtennoticeandLesseeshallhavetherighttohaveanemployeepresentduringsuchtestingorrepairs.

7. Maintenance;Repairs; UƟlity InstallaƟons;TradeFixturesand AlteraƟons.

7.1 Lessee's ObligaƟons.
(a) InGeneral. SubjecttotheprovisionsofParagraph2.2 (CondiƟon),2.3(Compliance),6.3(Lessee'sCompliancewithApplicable Requirements),7.2(Lessor's ObligaƟons),9(Damageor DestrucƟon),and14 (CondemnaƟon)and55(ConditionofPremises),Lesseeshall,at Lessee'ssoleexpense,keepthePremises, UƟlity InstallaƟons(intendedforLessee'sexclusiveuse,no maƩerwherelocated),and AlteraƟonsingood order, condiƟonandrepair(whetherornotthe porƟonofthePremisesrequiringrepairs,or themeansofrepairingthesame,arereasonablyor readilyaccessibletoLessee,andwhetheror nottheneedforsuchrepairsoccursasaresultofLessee'suse,anyprioruse,theelementsor theage ofsuch porƟonofthePremises),including,butnotlimitedto,allequipmentor faciliƟes,suchasplumbing,HVACequipment,electrical, lighƟng faciliƟes,boilers,pressurevessels, ﬁxtures,interiorwalls,interiorsurfacesofexteriorwalls,ceilings, ﬂoors,windows,doors,plateglass,and skylightsbutexcludinganyitemswhicharetheresponsibilityofLessorpursuanttoParagraph7.2. Lessee,inkeepingthePremisesingoodorder, condiƟonandrepair,shallexerciseandperformgoodmaintenancepracƟces, speciﬁcallyincludingtheprocurementandmaintenanceoftheservice contractsrequiredbyParagraph7.1(b)below. Lessee's obligaƟonsshallinclude restoraƟons,replacementsorrenewalswhennecessarytokeepthe Premisesandallimprovementsthereonora partthereofingoodorder, condiƟonandstateofrepair. (b) ServiceContracts. Lesseeshall,atLessee'ssoleexpense,procureandmaintaincontracts,withcopiestoLessor,incustomaryform andsubstancefor,andwithcontractorsspecializingandexperiencedinthemaintenanceofthefollowingequipmentandimprovements,if any,if andwheninstalledonthePremises: (i)HVACequipment,(ii)boilerandpressurevessels,and(iii) clariﬁers. However,Lessorreservestheright, upon noƟcetoLessee,toprocureandmaintainanyorallofsuchservicecontracts,andLesseeshallreimburseLessor,upondemand,forthedirect costthereof.
(c) FailuretoPerform. IfLesseefailstoperformLessee's obligaƟonsunderthisParagraph7.1,LessormayenteruponthePremises aŌer 10days'prior wriƩen noƟcetoLessee(exceptinthecaseofanemergency,inwhichcaseno noƟceshallberequired),performsuch obligaƟonson Lessee'sbehalf,andputthePremisesingoodorder,condiƟonandrepair,andLesseeshallpromptlypaytoLessorasumequalto115% 110%of thecostthereof.
(d) Replacement. SubjecttoLessee's indemniﬁcaƟonofLessorassetforthinParagraph8.7below,andwithoutrelievingLesseeof liability resulƟngfromLessee'sfailuretoexerciseandperformgoodmaintenance pracƟces,ifanitemdescribedinParagraph7.1(b)cannotbe repairedotherthanata costwhichisinexcessof50%ofthecostofreplacingsuchitem,thensuchitemshallbereplacedbyLessor,andthecost thereofshallbeproratedbetweenthe ParƟesandLesseeshallonlybeobligatedtopay,eachmonthduringtheremainderofthetermofthisLease oranyextensionthereof,onthedateonwhichBaseRentisdue,anamountequaltotheproductof mulƟplyingthecostofsuchreplacementbya fracƟon,thenumeratorofwhichisone,andthedenominatorofwhichis144(i.e.1/144thofthecostpermonth). LesseeshallpayInterestonthe unamorƟzedbalancebutmayprepayits obligaƟonatany Ɵme.

7.2 Lessor's ObligaƟons. SubjecttotheprovisionsofParagraphs2.2 (CondiƟon),2.3(Compliance), 4.2(CommonArea OperaƟngExpenses),6 (Use),7.1(Lessee's ObligaƟons),9 (Damageor DestrucƟon)and14 (CondemnaƟon),Lessor,subjecttoreimbursementpursuanttoParagraph4.2, shallkeepingoodorder, condiƟonandrepairthe foundaƟons,exteriorwalls,structuralcondiƟonofinteriorbearingwalls,exteriorroof,ﬁre sprinklersystem,CommonArea ﬁrealarmand/orsmoke detecƟonsystems, ﬁrehydrants,parkinglots,walkways,parkways,driveways,landscaping, fences,signsand uƟlitysystemsservingtheCommonAreasandallpartsthereof,aswellasprovidingtheservicesforwhichthereisaCommonArea OperaƟngExpensepursuanttoParagraph4.2. Lessorshallnotbeobligatedtopainttheexterioror interiorsurfacesofexteriorwallsnorshall Lessorbeobligatedtomaintain,repairor replacewindows,doorsorplateglassofthePremises.LessorshalloperateandmaintaintheBuilding ina ϐirstclassmanneraseconomicallyaspossible. LessorshallpromptlyenforceanyrightsapplicabletotheBuildingParcelunderthe CC&Rs.

7.3 UƟlity InstallaƟons;TradeFixtures; AlteraƟons.
(a) DeﬁniƟons. Theterm"UƟlity InstallaƟons"referstoall ﬂoorandwindowcoverings,airand/orvacuumlines,powerpanels, electrical distribuƟon,securityand ﬁre protecƟonsystems, communicaƟoncabling, lighƟng ﬁxtures,HVACequipment,plumbing,andfencinginor onthePremises. Theterm"TradeFixtures"shallmeanLessee'smachineryandequipmentthatcanberemovedwithoutdoingmaterialdamageto thePremises. Theterm"AlteraƟons"shallmeanany modiﬁcaƟonoftheimprovements,otherthanUƟlity InstallaƟonsorTradeFixtures,whether by addiƟonor deleƟon. "LesseeOwned AlteraƟonsand/or UƟlity InstallaƟons"are deﬁnedasAlteraƟonsand/or UƟlity InstallaƟonsmadeby LesseethatarenotyetownedbyLessorpursuanttoParagraph7.4(a). (b) Consent. SubjecttoParagraph58, Lesseeshallnotmakeany AlteraƟonsor UƟlity InstallaƟonstothePremiseswithoutLessor's prior wriƩenconsent. Lesseemay,however,makenon-structuralAlteraƟonsor UƟlity InstallaƟonstotheinteriorofthePremises(excludingthe roof)withoutsuchconsentbutupon noƟcetoLessor,aslongastheyarenotvisiblefromtheoutside,donotinvolvepuncturing, relocaƟngor removingtherooforany exisƟngwalls,willnot aﬀecttheelectrical,plumbing,HVAC,and/orlifesafetysystems,donottriggertherequirementfor addiƟonal modiﬁcaƟonsand/orimprovementstothePremises resulƟngfromApplicableRequirements,suchascompliancewithTitle24,andthe cumulaƟvecostthereofduringthisLeaseasextendeddoesnotexceedasumequalto3month'sBaseRentintheaggregateora sumequaltoone month'sBaseRentinanyoneyear. Notwithstandingtheforegoing,Lesseeshallnotmakeorpermitanyroof penetraƟonsand/orinstallanything ontheroofwithouttheprior wriƩenapprovalofLessor. Lessormay,asa precondiƟonto granƟngsuchapproval,requireLesseeto uƟlizea contractorchosenand/orapprovedbyLessor. Any AlteraƟonsor UƟlity InstallaƟonsthatLesseeshalldesiretomakeandwhichrequiretheconsent oftheLessorshallbepresentedtoLessorin wriƩenformwithdetailedplans. Consentshallbedeemed condiƟoneduponLessee's: (i)acquiringall applicablegovernmentalpermits,(ii)furnishingLessorwithcopiesofboththepermitsandtheplansand speciﬁcaƟonspriortocommencementof thework,and(iii)compliancewithall condiƟonsofsaidpermitsandotherApplicableRequirementsina promptand expediƟousmanner. Any AlteraƟonsor UƟlity InstallaƟonsshallbeperformedinaworkmanlikemannerwithgoodand suﬃcientmaterials. Lesseeshallpromptlyupon compleƟonfurnishLessorwithas-builtplansand speciﬁcaƟons. Forworkwhichcostsanamountinexcessofonemonth'sBaseRent,Lessormay condiƟonitsconsentuponLesseeprovidinga lienand compleƟonbondinanamountequalto150%ofthe esƟmatedcostofsuch AlteraƟonor UƟlity InstallaƟonand/oruponLessee's posƟngan addiƟonalSecurityDepositwithLessor. (c) Liens;Bonds. Lesseeshallpay,whendue,allclaimsforlaborormaterialsfurnishedorallegedtohavebeenfurnishedtoorfor Lesseeator foruseonthePremises,whichclaimsareormaybesecuredbyanymechanic'sormaterialmen'slienagainstthePremisesorany interesttherein. LesseeshallgiveLessornotlessthan10days noƟcepriortothecommencementofanyworkin,onoraboutthePremises,and Lessorshallhavetherighttopost noƟcesofnon-responsibility. IfLesseeshallcontestthevalidityofanysuchlien,claimordemand,thenLessee shall,atitssoleexpensedefendandprotectitself,LessorandthePremisesagainstthesameandshallpayand saƟsfyanysuchadversejudgment thatmayberenderedthereonbeforetheenforcementthereof. IfLessorshallrequire,Lesseeshallfurnishasuretybondinanamountequalto 150%oftheamountofsuchcontestedlien,claimordemand,indemnifyingLessoragainstliabilityforthesame. IfLessorelectsto parƟcipateinany such acƟon,LesseeshallpayLessor's aƩorneys'feesandcosts.

7.4 Ownership;Removal;Surrender;and RestoraƟon.
(a) Ownership. SubjecttoLessor'srighttorequireremovalor electownershipas hereinaŌerprovided,all AlteraƟonsand UƟlity InstallaƟonsmadebyLesseeshallbethepropertyofLessee,butconsideredapartofthePremises. Lessormay,atany Ɵme,electin wriƟngtobe theownerofallorany speciﬁedpartoftheLesseeOwned AlteraƟonsand UƟlity InstallaƟons. Unlessotherwiseinstructedperparagraph7.4(b) hereof,allLesseeOwned AlteraƟonsand UƟlity InstallaƟonsshall,atthe expiraƟonorterminaƟonofthisLease,becomethepropertyofLessorand besurrenderedbyLesseewiththePremises.
(b) Removal. BydeliverytoLesseeof wriƩen noƟcefromLessornotearlierthan90andnotlaterthan30dayspriortotheendofthe termofthisLease,LessormayrequirethatanyorallLesseeOwned AlteraƟonsor UƟlityInstallaƟonsberemovedbythe expiraƟonor terminaƟon ofthisLease. Lessormayrequiretheremovalatany ƟmeofalloranypartofanyLesseeOwnedAlteraƟonsor UƟlity InstallaƟonsmadewithout therequiredconsent.
(c) Surrender;RestoraƟon. LesseeshallsurrenderthePremisesbythe ExpiraƟonDateoranyearlier terminaƟondate,withallofthe improvements,partsandsurfacesinAS-ISconditionwithnoobligationtoremoveanyTenantImprovementsorrepairanyportionofthe Premises. thereofbroomcleanandfreeofdebris,andingood operaƟngorder, condiƟonandstateofrepair,ordinarywearandtearexcepted. "Ordinarywearandtear"shallnotincludeanydamageor deterioraƟonthatwouldhavebeenpreventedbygoodmaintenance pracƟce.

NotwithstandingtheforegoingandtheprovisionsofParagraph7.1(a),iftheLesseeoccupiesthePremisesfor12monthsorless,thenLesseeshall surrenderthePremisesinthesame condiƟonasdeliveredtoLesseeontheStartDatewithNOallowanceforordinarywearandtear. Lesseeshall repairanydamageoccasionedbythe installaƟon,maintenanceorremovalofTradeFixtures,Lesseeowned AlteraƟonsand/or UƟlity InstallaƟons, furnishings,andequipmentaswellastheremovalofanystoragetankinstalledbyorforLessee. LesseeshallalsoremovefromthePremisesany andallHazardousSubstancesbroughtontothePremisesbyor forLessee,oranythirdparty(exceptHazardousSubstanceswhichweredeposited viaundergroundmigraƟonfromareasoutsideofthePremises)tothelevel speciﬁedinApplicableRequirements. TradeFixturesshallremainthe propertyofLesseeandshallberemovedbyLessee. AnypersonalpropertyofLesseenotremovedonor beforethe ExpiraƟonDateoranyearlier terminaƟondateshallbedeemedtohavebeenabandonedbyLesseeandmaybedisposedoforretainedbyLessorasLessormaydesire. The failurebyLesseeto ƟmelyvacatethePremisespursuanttothisParagraph7.4(c)withouttheexpress wriƩenconsentofLessorshall consƟtutea holdoverundertheprovisionsofParagraph26below.

8. Insurance;Indemnity.

8.1 PaymentofPremiums. ThecostofthepremiumsfortheinsurancepoliciesrequiredtobecarriedbyLessor,pursuanttoParagraphs

8.2(b),8.3(a)and8.3(b),shallbeaCommonArea OperaƟngExpense. Premiumsforpolicyperiodscommencingpriorto,orextendingbeyond,the termofthisLeaseshallbeproratedtocoincidewiththecorrespondingStartDateor ExpiraƟonDate.

8.2 LiabilityInsurance.
(a) CarriedbyLessee. Lesseeshallobtainandkeepinforcea CommercialGeneralLiabilitypolicyofinsurance protecƟngLesseeand Lessorasan addiƟonalinsuredagainstclaimsforbodilyinjury,personalinjuryandpropertydamagebaseduponorarisingoutoftheownership, use,occupancyormaintenanceofthePremisesandallareasappurtenantthereto. Suchinsuranceshallbeonanoccurrencebasisprovidingsingle limitcoverageinanamountnotlessthan$1,000,000peroccurrencewithanannualaggregateofnotlessthan$2,000,000. LesseeshalladdLessor asan addiƟonalinsuredbymeansofanendorsementatleastasbroadastheInsuranceServiceOrganizaƟon's "AddiƟonalInsured-Managersor LessorsofPremises"Endorsement. Thepolicyshallnotcontainanyintra-insuredexclusionsasbetweeninsuredpersonsor organizaƟons,butshall includecoverageforliabilityassumedunderthisLeaseasan"insuredcontract"fortheperformanceofLessee'sindemnity obligaƟonsunderthis Lease. Thelimitsofsaidinsuranceshallnot,however,limittheliabilityofLesseenorrelieveLesseeofany obligaƟonhereunder.Lesseeshall provideanendorsementonitsliabilitypolicy(ies)whichprovidesthatits insuranceshallbeprimarytoandnotcontributorywithanysimilar insurancecarriedbyLessor,whoseinsuranceshallbeconsideredexcessinsuranceonly. (b) CarriedbyLessor. LessorshallmaintainliabilityinsuranceasdescribedinParagraph8.2(a),in addiƟonto,andnotinlieuof,the insurancerequiredtobemaintainedbyLessee. Lesseeshallnotbenamedasan addiƟonalinsuredtherein.

8.3 PropertyInsurance-Building,ImprovementsandRentalValue. (a) BuildingandImprovements. LessorshallobtainandkeepinforceapolicyorpoliciesofinsuranceinthenameofLessor,withloss payabletoLessor,anyground-lessor,andtoanyLenderinsuringlossor damagetothePremises. Theamountofsuchinsuranceshallbeequalto thefullinsurablereplacementcostofthePremises,asthesameshallexistfrom Ɵmeto Ɵme,ortheamountrequiredbyanyLender,butinno eventmorethanthecommerciallyreasonableandavailableinsurablevaluethereof. LesseeOwnedAlteraƟonsand UƟlity InstallaƟons,Trade Fixtures,andLessee'spersonalpropertyshallbeinsuredbyLesseenotbyLessor. Ifthecoverageisavailableandcommerciallyappropriate,such policyorpoliciesshallinsureagainstallrisksofdirectphysicallossordamage(excepttheperilsof ﬂoodand/orearthquakeunlessrequiredbya Lender),includingcoveragefordebrisremovalandtheenforcementofanyApplicableRequirementsrequiringtheupgrading,demoliƟon, reconstrucƟonorreplacementofany porƟonofthePremisesastheresultofa coveredloss. Saidpolicyorpoliciesshallalsocontainanagreed valuaƟonprovisioninlieuofanycoinsuranceclause,waiverof subrogaƟon,and inﬂaƟonguard protecƟoncausinganincreaseintheannual propertyinsurancecoverageamountbyafactorofnotlessthantheadjustedU.S. DepartmentofLaborConsumerPriceIndexforAllUrban ConsumersforthecitynearesttowherethePremisesarelocated. Ifsuchinsurancecoveragehasa deducƟbleclause,the deducƟbleamountshall notexceed$5,000peroccurrence.
(b) RentalValue. LessorshallalsoobtainandkeepinforceapolicyorpoliciesinthenameofLessorwithlosspayabletoLessorandany Lender,insuringthelossofthefullRentforoneyearwithanextendedperiodofindemnityforan addiƟonal180days("RentalValueinsurance").

Saidinsuranceshallcontainanagreed valuaƟonprovisioninlieuofanycoinsuranceclause,andtheamountofcoverageshallbeadjustedannually to reﬂecttheprojectedRentotherwisepayablebyLessee,forthenext12monthperiod. (c) AdjacentPremises. LesseeshallpayforanyincreaseinthepremiumsforthepropertyinsuranceoftheBuildingandforthe CommonAreasorotherbuildingsintheShoppingCenterifsaidincreaseiscausedbyLessee'sacts,omissions,useoroccupancyofthePremises. (d) Lessee'sImprovements. SinceLessoristheInsuringParty,LessorshallnotberequiredtoinsureLesseeOwned AlteraƟonsand UƟlity InstallaƟonsunlesstheitemin quesƟonhasbecomethepropertyofLessorunderthetermsofthisLease.

8.4 Lessee'sProperty;Business InterrupƟonInsurance;Worker's CompensaƟonInsurance. (a) PropertyDamage. LesseeshallobtainandmaintaininsurancecoverageonallofLessee'spersonalproperty,TradeFixtures,and LesseeOwned AlteraƟonsand UƟlity InstallaƟons. Suchinsuranceshallbefullreplacementcostcoveragewitha deducƟbleofnottoexceed$1,000 peroccurrence. TheproceedsfromanysuchinsuranceshallbeusedbyLesseeforthereplacementofpersonalproperty,TradeFixturesandLessee Owned AlteraƟonsand UƟlity InstallaƟons.
(b) Business InterrupƟon. Lesseeshallobtainandmaintainlossofincomeandextraexpenseinsuranceinamountsaswillreimburse Lesseefordirectorindirectlossofearnings aƩributabletoallperilscommonlyinsuredagainstbyprudentlesseesinthebusinessofLesseeor aƩributableto prevenƟonofaccesstothePremisesasa resultofsuchperils. (c) Worker'sCompensaƟonInsurance. LesseeshallobtainandmaintainWorker's CompensaƟonInsuranceinsuchamountasmaybe requiredbyApplicableRequirements. Suchpolicyshallincludea'Waiverof SubrogaƟon'endorsement. LesseeshallprovideLessorwithacopyof suchendorsementalongwiththe cerƟﬁcateofinsuranceorcopyofthepolicyrequiredbyparagraph8.5. (d) No RepresentaƟonofAdequateCoverage. Lessormakesno representaƟonthatthelimitsorformsofcoverageofinsurance speciﬁedhereinareadequatetocoverLessee'sproperty,business operaƟonsor obligaƟonsunderthisLease.

8.5 InsurancePolicies. Insurancerequiredhereinshallbebycompaniesmaintainingduringthepolicyterma"GeneralPolicyholders RaƟng" ofatleastA-,VII,assetforthinthemostcurrentissueof"Best'sInsuranceGuide",or suchother raƟngasmayberequiredbyaLender. Lessee shallnotdoorpermittobedoneanythingwhichinvalidatestherequiredinsurancepolicies. Lesseeshall,priortotheStartDate,delivertoLessor cerƟﬁedcopiesofpoliciesofsuchinsuranceor cerƟﬁcateswithcopiesoftherequiredendorsementsevidencingtheexistenceandamountsofthe requiredinsurance. Nosuchpolicyshallbecancelableorsubjectto modiﬁcaƟonexcept aŌer30daysprior wriƩen noƟcetoLessor. Lesseeshall,at least10dayspriortothe expiraƟonofsuchpolicies,furnishLessorwithevidenceofrenewalsor"insurancebinders"evidencingrenewalthereof,or LessormayincreasehisliabilityinsurancecoverageandchargethecostthereoftoLessee,whichamountshallbepayablebyLesseetoLessorupon demand. Suchpoliciesshallbefora termofatleastoneyear,or thelengthoftheremainingtermofthisLease,whicheverisless. IfeitherParty shallfailtoprocureandmaintaintheinsurancerequiredtobecarriedbyit,theotherPartymay,butshallnotberequiredto,procureandmaintain thesame.

8.6 Waiverof SubrogaƟon. Without aﬀecƟnganyotherrightsor remedies,LesseeandLessoreachherebyreleaseandrelievetheother,and waivetheir enƟrerighttorecoverdamagesagainsttheother,forlossofordamagetoitspropertyarisingoutoforincidenttotheperilsrequiredto beinsuredagainstherein. The eﬀectofsuchreleasesandwaiversisnotlimitedbytheamountofinsurancecarriedor required,or byany deducƟblesapplicablehereto. The ParƟesagreetohavetheir respecƟvepropertydamageinsurancecarrierswaiveanyrightto subrogaƟonthat suchcompaniesmayhaveagainstLessororLessee,asthecasemaybe,solongastheinsuranceisnotinvalidatedthereby.

8.7 Indemnity. ExceptforLessor'sgrossnegligenceorwillfulmisconduct,Lesseeshallindemnify,protect,defendandholdharmlessthe Premises,Lessoranditsagents,Lessor'smasterorgroundlessor,partnersandLenders,fromandagainstanyandallclaims,lossofrentsand/or damages,liens,judgments, penalƟes, aƩorneys'andconsultants'fees,expensesand/orliabiliƟesarisingoutof,involving,orin connecƟonwith,a BreachoftheLeasebyLesseeand/ortheuseand/oroccupancyofthePremisesand/orProjectbyLesseeand/orbyLessee'semployees, contractorsorinvitees. Ifany acƟonorproceedingisbroughtagainstLessorbyreasonofanyoftheforegoingmaƩers,Lesseeshallupon noƟce defendthesameatLessee'sexpensebycounselreasonablysaƟsfactorytoLessorandLessorshallcooperatewithLesseeinsuchdefense. Lessor neednothave ﬁrstpaidanysuchclaiminordertobedefendedor indemniﬁed.

8.8 ExempƟonofLessoranditsAgentsfromLiability. Notwithstandingthenegligenceor breachofthisLeasebyLessororitsagents,neither Lessornoritsagentsshallbeliableunderanycircumstancesfor:(i)injuryordamagetothepersonorgoods,wares,merchandiseorotherproperty ofLessee,Lessee'semployees,contractors,invitees,customers,oranyotherpersoninoraboutthePremises,whethersuchdamageorinjuryis causedbyorresultsfrom ﬁre,steam,electricity,gas,waterorrain,indoorairquality,thepresenceofmoldorfromthebreakage,leakage, obstrucƟonorotherdefectsofpipes, ﬁresprinklers,wires,appliances,plumbing,HVACorlighƟng ﬁxtures,orfromanyothercause,whetherthe saidinjuryordamageresultsfrom condiƟonsarisinguponthePremisesor uponother porƟonsofthebuildingofwhichthePremisesareapart,or fromothersourcesorplaces,(ii)anydamagesarisingfromanyactorneglectofanyothertenantofLessororfromthefailureofLessororits agents toenforcetheprovisionsofanyotherleaseintheShoppingCenter,or(iii)injurytoLessee'sbusinessorforanylossofincomeor proﬁttherefrom.

Instead,itisintendedthatLessee'ssolerecourseintheeventofsuchdamagesorinjurybeto ﬁleaclaimontheinsurancepolicy(ies)thatLesseeis requiredtomaintainpursuanttotheprovisionsofparagraph8.

8.9 FailuretoProvideInsurance. Lesseeacknowledgesthatanyfailureonitsparttoobtainormaintaintheinsurancerequiredhereinwill exposeLessortorisksand potenƟallycauseLessortoincurcostsnotcontemplatedbythisLease,theextentofwhichwillbeextremelydiﬃcultto ascertain. Accordingly,foranymonthor porƟonthereofthatLesseedoesnotmaintaintherequiredinsuranceand/ordoesnotprovideLessorwith therequiredbindersor cerƟﬁcatesevidencingtheexistenceoftherequiredinsurance,theBaseRentshallbe automaƟcallyincreased,withoutany requirementfor noƟcetoLessee,byanamountequalto10%ofthethen exisƟngBaseRentor$100,whicheverisgreater.The parƟesagreethat suchincreaseinBaseRentrepresentsfairandreasonablecompensaƟonforthe addiƟonalrisk/coststhatLessorwillincurbyreasonofLessee's failuretomaintaintherequiredinsurance. SuchincreaseinBaseRentshallinnoevent consƟtuteawaiverofLessee'sDefaultorBreachwith respecttothefailuretomaintainsuchinsurance,preventtheexerciseofanyoftheotherrightsandremediesgrantedhereunder,norrelieveLessee ofits obligaƟontomaintaintheinsurance speciﬁedinthisLease.

9. Damageor DestrucƟon.

9.1 DeﬁniƟons.
(a) "Premises ParƟalDamage"shallmeandamageor destrucƟontotheimprovementsonthePremises,otherthanLesseeOwned AlteraƟonsand UƟlity InstallaƟons,whichcanreasonablyberepairedin3 monthsorlessfromthedateofthedamageor destrucƟon,andthecost thereofdoesnotexceeda sumequalto6month'sBaseRent. Lessorshall noƟfyLesseein wriƟngwithin30daysfromthedateofthedamageor destrucƟonastowhetherornotthedamageis ParƟalorTotal.
(b) "PremisesTotal DestrucƟon"shallmeandamageor destrucƟontotheimprovementsonthePremises,otherthanLesseeOwned AlteraƟonsand UƟlity InstallaƟonsandTradeFixtures,whichcannotreasonablyberepairedin3 monthsorlessfromthedateofthedamageor destrucƟonand/orthecostthereofexceedsasumequalto6 month'sBaseRent. Lessorshall noƟfyLesseein wriƟngwithin30daysfromthedate ofthedamageor destrucƟonastowhetherornotthedamageis ParƟalorTotal. (c) "InsuredLoss"shallmeandamageor destrucƟontoimprovementsonthePremises,otherthanLesseeOwned AlteraƟonsand UƟlity InstallaƟonsandTradeFixtures,whichwascausedbyaneventrequiredtobecoveredbytheinsurancedescribedinParagraph8.3(a), irrespecƟve ofany deducƟbleamountsor coveragelimitsinvolved.
(d) "ReplacementCost" shallmeanthecosttorepairorrebuildtheimprovementsownedbyLessoratthe Ɵmeoftheoccurrenceto their condiƟon exisƟngimmediatelypriorthereto,including demoliƟon,debrisremovalandupgradingrequiredbythe operaƟonofApplicable Requirements,andwithout deducƟonfor depreciaƟon.
(e) "HazardousSubstance CondiƟon" shallmeantheoccurrenceordiscoveryofa condiƟoninvolvingthepresenceof,ora contaminaƟonby,a HazardousSubstance,in,on,orunderthePremisesorCommonAreaswhichrequires restoraƟon.

9.2 ParƟalDamage-InsuredLoss. If aPremisesParƟalDamagethatisanInsuredLossoccurs,thenLessorshall,atLessor'sexpense,repair suchdamage(butnotLessee'sTradeFixturesorLesseeOwned AlteraƟonsand UƟlity InstallaƟons)assoonasreasonablypossibleandthisLease shall conƟnueinfullforceand eﬀect;provided,however,thatLesseeshall,atLessor's elecƟon,maketherepairofanydamageor destrucƟonthe totalReplacementCostofwhichis$10,000or less,and,insuchevent,LessorshallmakeanyapplicableinsuranceproceedsavailabletoLesseeona reasonablebasisforthatpurpose. Notwithstandingtheforegoing,if therequiredinsurancewasnotinforceortheinsuranceproceedsarenot suﬃcientto eﬀectsuchrepair,theInsuringPartyshallpromptlycontributetheshortageinproceedsasandwhenrequiredtocompletesaidrepairs.

Intheevent,however,suchshortagewasduetothefactthat,byreasonoftheuniquenatureoftheimprovements,fullReplacementCost insurancecoveragewasnotcommerciallyreasonableandavailable,Lessorshallhaveno obligaƟontopayfortheshortageininsuranceproceedsor tofullyrestoretheuniqueaspectsofthePremisesunlessLesseeprovidesLessorwiththefundstocoversame,oradequateassurancethereof, within10daysfollowingreceiptof wriƩen noƟceofsuchshortageandrequesttherefor. IfLessorreceivessaidfundsoradequateassurance thereofwithinsaid10dayperiod,thepartyresponsibleformakingtherepairsshallcompletethemassoonasreasonablypossibleandthisLease shallremaininfullforceand eﬀect. Ifsuchfundsorassurancearenotreceived,Lessormayneverthelesselectby wriƩen noƟcetoLesseewithin10 days thereaŌerto:(i)makesuch restoraƟonandrepairasiscommerciallyreasonablewithLessorpayinganyshortageinproceeds,inwhichcase thisLeaseshallremaininfullforceand eﬀect,or(ii)havethisLeaseterminate30daysthereaŌer .Lesseeshallnotbe enƟtledtoreimbursementof anyfundscontributedbyLesseetorepairanysuchdamageor destrucƟon. Premises ParƟalDamagedueto ﬂoodorearthquakeshallbesubjectto Paragraph9.3,notwithstandingthattheremaybesomeinsurancecoverage,butthenetproceedsofanysuchinsuranceshallbemadeavailablefor therepairsifmadebyeitherParty.

9.3 ParƟalDamage-UninsuredLoss. Ifa PremisesParƟalDamagethatisnotanInsuredLossoccurs,unlesscausedbyanegligentorwillful actofLessee(inwhicheventLesseeshallmaketherepairsatLessee'sexpense),Lessormayeither: (i)repairsuchdamageassoonasreasonably possibleatLessor'sexpense(subjecttoreimbursementpursuanttoParagraph4.2),inwhicheventthisLeaseshall conƟnueinfullforceand eﬀect, or(ii)terminatethisLeasebygiving wriƩen noƟcetoLesseewithin30days aŌerreceiptbyLessorofknowledgeoftheoccurrenceofsuchdamage.

Such terminaƟonshallbe eﬀecƟve60daysfollowingthedateofsuch noƟce. IntheeventLessorelectstoterminatethisLease,Lesseeshallhave therightwithin10days aŌerreceiptofthe terminaƟon noƟcetogive wriƩen noƟcetoLessorofLessee'scommitmenttopayfortherepairofsuch damagewithoutreimbursementfromLessor. LesseeshallprovideLessorwithsaidfundsor saƟsfactoryassurancethereofwithin30days aŌer makingsuchcommitment. InsucheventthisLeaseshall conƟnueinfullforceand eﬀect,andLessorshallproceedtomakesuchrepairsassoonas reasonablypossible aŌertherequiredfundsareavailable. If Lesseedoesnotmaketherequiredcommitment,thisLeaseshallterminateasofthe date speciﬁedinthe terminaƟon noƟce.

9.4 Total DestrucƟon. Notwithstandinganyotherprovisionhereof,ifa PremisesTotalDestrucƟonoccurs,thisLeaseshallterminate60days followingsuch DestrucƟon. Ifthedamageor destrucƟonwascausedbythegrossnegligenceorwillfulmisconductofLessee,Lessorshallhavethe righttorecoverLessor'sdamagesfromLessee,exceptasprovidedinParagraph8.6.

9.5 DamageNearEndofTerm. Ifatany Ɵmeduringthelast6monthsofthisLeasethereisdamageforwhichthecosttorepairexceedsone month'sBaseRent,whetheror notanInsuredLoss,LessormayterminatethisLease eﬀecƟve60daysfollowingthedateofoccurrenceofsuch damagebygivinga wriƩen terminaƟonnoƟcetoLesseewithin30days aŌerthedateofoccurrenceofsuchdamage. Notwithstandingthe foregoing,ifLesseeatthat ƟmehasanexercisableopƟontoextendthisLeaseortopurchasethePremises,thenLesseemaypreservethisLeaseby (a)exercisingsuch opƟonand(b)providingLessorwithanyshortageininsuranceproceeds(oradequateassurancethereof)neededtomakethe repairsonorbeforetheearlierof(i)thedatewhichis10days aŌerLessee'sreceiptofLessor's wriƩen noƟce purporƟngtoterminatethisLease,or (ii)thedaypriortothedateuponwhichsuch opƟonexpires. IfLesseedulyexercisessuch opƟonduringsuchperiodandprovidesLessorwithfunds (oradequateassurancethereof)tocoveranyshortageininsuranceproceeds,Lessorshall,atLessor'scommerciallyreasonableexpense,repairsuch damageassoonasreasonablypossibleandthisLeaseshall conƟnueinfullforceand eﬀect. IfLesseefailstoexercisesuch opƟonandprovidesuch fundsorassuranceduringsuchperiod,thenthisLeaseshallterminateonthedate speciﬁedinthe terminaƟon noƟceandLessee's opƟonshallbe exƟnguished.

9.6 DamagetoShoppingCenter. Intheeventofanydamageor destrucƟontoother porƟonsoftheBuildingortoanyotherbuildingsinthe ShoppingCenter,whetherinsuredoruninsured(andwhetherornotthereisalsodamageor destrucƟontothePremises),whichcannotreasonably berepairedin6monthsorlessfromthedateofthedamageor destrucƟon,Lessormayeither(i)repairsuchdamageor destrucƟonassoonas reasonablypossiblewithoutexpensetoLessee,inwhicheventthisLeaseshall conƟnueinfullforceand eﬀect,or (ii)terminatethisLeasebygiving wriƩen noƟcetoLesseewithin30days aŌerreceiptbyLessorofknowledgeoftheoccurrenceofsuchdamageor destrucƟon. Such terminaƟon shallbe eﬀecƟve60daysfollowingthedateofsuch noƟce.

9.7 AbatementofRent;Lessee'sRemedies.
(a) Abatement. IntheeventofPremises ParƟalDamageorPremisesTotal DestrucƟonora HazardousSubstance CondiƟonforwhich LesseeisnotresponsibleunderthisLease,theBaseRentpayablebyLesseefortheperiodrequiredfortherepair,remediaƟonor restoraƟonofsuch damageshallbeabatedin proporƟontothedegreetowhichLessee'suseofthePremisesisimpaired,butnottoexceedtheproceedsreceived fromtheRentalValueInsurance. Allother obligaƟonsofLesseehereundershallbeperformedbyLessee,andLessorshallhavenoliabilityforany suchdamage, destrucƟon, remediaƟon,repairor restoraƟonexceptasprovidedherein. (b) Remedies. If Lessorshallbeobligatedtorepairor restorethePremisesanddoesnotcommence,ina substanƟalandmeaningful way,suchrepairor restoraƟonwithin90days aŌersuch obligaƟonshallaccrue,Lesseemay,atany Ɵmepriortothecommencementofsuchrepair or restoraƟon,give wriƩen noƟcetoLessorandtoanyLendersofwhichLesseehasactual noƟce,ofLessee's elecƟontoterminatethisLeaseona datenotlessthan60daysfollowingthegivingofsuch noƟce. If Lesseegivessuch noƟceandsuchrepairor restoraƟonisnotcommencedwithin30 days thereaŌer,thisLeaseshallterminateasofthedate speciﬁedinsaid noƟce. Iftherepairor restoraƟoniscommencedwithinsuch30days,this Leaseshall conƟnueinfullforceand eﬀect. "Commence"shallmeaneitherthe uncondiƟonalauthorizaƟonofthe preparaƟonoftherequired plans,orthebeginningoftheactualworkonthePremises,whichever ﬁrstoccurs.

9.8 T erminaƟon;AdvancePayments. Upon terminaƟonofthisLeasepursuanttoParagraph6.2(g)orParagraph9,anequitableadjustment shallbemadeconcerningadvanceBaseRentandanyotheradvancepaymentsmadebyLesseetoLessor. Lessorshall,in addiƟon,returntoLessee somuchofLessee'sSecurityDepositashasnotbeen,or isnotthenrequiredtobe,usedbyLessor.

10. RealPropertyTaxes. SeeParagraph62

10.1 DeﬁniƟon. Asusedherein,theterm"RealPropertyTaxes"shallincludeanyformofassessment;realestate,general,special,ordinaryor extraordinary,orrentallevyortax(otherthaninheritance,personalincomeorestatetaxes);improvementbond;and/orlicensefeeimposedupon orleviedagainstanylegalorequitableinterestofLessorintheShoppingCenter,Lessor'srighttootherincometherefrom,and/orLessor'sbusiness ofleasing,byanyauthorityhavingthedirectorindirectpowertotaxandwherethefundsaregeneratedwithreferencetotheShoppingCenter address. Theterm"RealPropertyTaxes"shallalsoincludeanytax,fee,levy,assessmentorcharge,oranyincreasetherein:(i)imposedbyreason ofeventsoccurringduringthetermofthisLease,includingbutnotlimitedto,achangeintheownershipoftheShoppingCenter,(ii)achangeinthe improvementsthereon,and/or(iii)leviedorassessedonmachineryor equipmentprovidedbyLessortoLesseepursuanttothisLease. In calculaƟngRealPropertyTaxesforanycalendaryear,theRealPropertyTaxesforanyrealestatetaxyearshallbeincludedinthe calculaƟonofReal PropertyTaxesforsuchcalendaryearbaseduponthenumberofdayswhichsuchcalendaryearandtaxyearhaveincommon.

10.2PaymentofTaxes. ExceptasotherwiseprovidedinParagraph10.3,LessorshallpaytheRealPropertyTaxesapplicabletotheBuilding ParcelShoppingCenter,andsaidpaymentsshallbeincludedinthe calculaƟonofCommonAreaOperaƟngExpensesinaccordancewiththe provisionsofParagraph4.2.

10.3 AddiƟonalImprovements. CommonArea OperaƟngExpensesshallnotincludeRealPropertyTaxes speciﬁedinthetaxassessor'srecords andworksheetsasbeingcausedby addiƟonalimprovementsplacedupontheShoppingCenterbyotherlesseesorbyLessorfortheexclusive enjoymentofsuchotherlessees. NotwithstandingParagraph10.2hereof,Lesseeshall,however,paytoLessoratthe ƟmeCommonArea OperaƟng ExpensesarepayableunderParagraph4.2,the enƟretyofanyincreaseinRealPropertyTaxesifassessedsolelybyreasonof AlteraƟons,Trade Fixturesor UƟlity InstallaƟonsplaceduponthePremisesbyLesseeoratLessee'srequest,orbyreasonofany alteraƟonsorimprovementstothe PremisesmadebyLessorsubsequenttothe execuƟonofthisLeasebythe ParƟes.

10.4JointAssessment. IftheBuildingisnotseparatelyassessed,RealPropertyTaxesallocatedtotheBuildingshallbeanequitable proporƟon oftheRealPropertyTaxesforallofthelandandimprovementsincludedwithinthetaxparcelassessed,such proporƟontobedeterminedbyLessor fromthe respecƟve valuaƟonsassignedintheassessor'sworksheetsorsuchother informaƟonasmaybereasonablyavailable. Lessor's reasonable determinaƟonthereof,ingoodfaith,shallbeconclusive.

10.5PersonalPropertyTaxes. LesseeshallpaypriortodelinquencyalltaxesassessedagainstandlevieduponLesseeOwned AlteraƟonsand UƟlity InstallaƟons,TradeFixtures,furnishings,equipmentandallpersonalpropertyofLesseecontainedinthePremises. Whenpossible,Lessee shallcauseitsLesseeOwned AlteraƟonsand UƟlity InstallaƟons,TradeFixtures,furnishings,equipmentandallotherpersonalpropertytobe assessedandbilledseparatelyfromtherealpropertyofLessor. IfanyofLessee'ssaidpropertyshallbeassessedwithLessor'srealproperty,Lessee shallpayLessorthetaxes aƩributabletoLessee'spropertywithin10days aŌerreceiptofa wriƩenstatement seƫngforththetaxesapplicableto Lessee'sproperty.

11. UƟliƟesandServices.SeeParagraph56.

11.1Lesseeshallpayforallwater,gas,heat,light,power,telephone,trashdisposalandother uƟliƟesandservicessuppliedtothePremises, togetherwithanytaxesthereon. Totheextentanysuch uƟliƟesand/orservicesarenotseparately metered,LesseeshallpayLessee'sSharethereof inaccordancewithParagraph4.2. NotwithstandingtheprovisionsofParagraph4.2,ifatany ƟmeinLessor'ssolejudgment,Lessordeterminesthat Lesseeisusinga disproporƟonateamountofwater,electricityorothercommonlymetereduƟliƟes,orthatLesseeis generaƟngsuchalargevolume oftrashastorequireanincreaseinthesizeofthetrashreceptacleand/oranincreaseinthenumberof Ɵmespermonththatitis empƟed,then LessormayincreaseLessee'sBaseRentbyanamountequaltosuchincreasedcosts. ThereshallbenoabatementofRentandLessorshallnotbe liableinanyrespectwhatsoeverfortheinadequacy,stoppage,interrupƟonor disconƟnuanceofany uƟlityorserviceduetoriot,strike,labor dispute,breakdown,accident,repairorothercausebeyondLessor'sreasonablecontrolorincooperaƟonwithgovernmentalrequestor direcƟons.

11.2Within ﬁŌeendaysofLessor's wriƩenrequest,LesseeagreestodelivertoLessorsuchinformaƟon,documentsand/or authorizaƟonas LessorneedsinorderforLessortocomplywithnewor exisƟngApplicableRequirements relaƟngtocommercialbuildingenergyusage, raƟngs, and/orthe reporƟngthereof.

12. Assignmentand Subleƫng.SeeParagraph65

12.1Lessor'sConsentRequired.
(a) Lesseeshallnotvoluntarilyorby operaƟonoflawassign,transfer,mortgageorencumber(collecƟvely,"assignorassignment")or subletalloranypartofLessee'sinterestinthisLeaseorinthePremiseswithoutLessor'sprior wriƩenconsent. (b) UnlessLesseeisa corporaƟonanditsstockispubliclytradedona naƟonalstockexchange,achangeinthecontrolofLesseeshall consƟtuteanassignmentrequiringconsent. Thetransfer,ona cumulaƟvebasis,of25%ormoreofthe voƟngcontrolofLesseeshall consƟtutea changeincontrolforthispurpose.
(c) TheinvolvementofLesseeorits assetsinany transacƟon,orseriesof transacƟons(bywayofmerger,sale, acquisiƟon, ﬁnancing, transfer,leveragedbuyoutorotherwise),whetherornotaformalassignmentor hypothecaƟonofthisLeaseor Lessee'sassetsoccurs,whichresults orwillresultina reducƟonoftheNetWorthofLesseebyanamountgreaterthan25%ofsuchNetWorthasitwasrepresentedatthe Ɵmeofthe execuƟonofthisLeaseoratthe ƟmeofthemostrecentassignmenttowhichLessorhasconsented,orasitexistsimmediatelypriortosaid transacƟonor transacƟons consƟtuƟngsuch reducƟon,whicheverwasorisgreater,shallbeconsideredanassignmentofthisLeasetowhichLessor maywithholditsconsent. "NetWorthofLessee"shallmeanthenetworthofLessee(excludinganyguarantors)establishedundergenerally accepted accounƟngprinciples.
(d) Anassignmentor subleƫngwithoutconsentshall,atLessor's opƟon,bea DefaultcurableaŌer noƟceperParagraph13.1(d),ora non-curableBreachwithoutthenecessityofany noƟceandgraceperiod. IfLessorelectstotreatsuchunapprovedassignmentor subleƫngasa non-curableBreach,Lessormayeither:(i)terminatethisLease,or(ii)upon30days wriƩennoƟce,increasethemonthlyBaseRentandPercentage RentRateto110%oftheBaseRentandPercentageRentRatethenin eﬀect. Further,intheeventofsuchBreachandrentaladjustment,(i)the purchasepriceofany opƟontopurchasethePremisesheldbyLesseeshallbesubjecttosimilaradjustmentto110%ofthepricepreviouslyin eﬀect,and(ii)all ﬁxedandnon-ﬁxedrentaladjustmentsscheduledduringtheremainderoftheLeasetermshallbeincreasedto110%ofthe scheduledadjustedrent.
(e) Lessee'sremedyforanybreachofParagraph12.1byLessorshallbelimitedtocompensatorydamagesand/or injuncƟverelief. (f) Lessormayreasonablywithholdconsenttoaproposedassignmentor subleƫngifLesseeisinDefaultatthe Ɵmeconsentis requested.
(g) Notwithstandingtheforegoing,allowingademinimis porƟonofthePremises,i.e.20squarefeetorless,tobeusedbya thirdparty vendorin connecƟonwiththe installaƟonofavendingmachineorpayphoneshallnot consƟtuteasubleƫng.

12.2Termsand CondiƟonsApplicabletoAssignmentand Subleƫng. (a) RegardlessofLessor'sconsent,noassignmentor subleƫngshall: (i)be eﬀecƟvewithouttheexpresswriƩen assumpƟonbysuch assigneeorsublesseeofthe obligaƟonsofLesseeunderthisLease,(ii)releaseLesseeofanyobligaƟonshereunder,or(iii)altertheprimaryliability ofLesseeforthepaymentofRentorfortheperformanceofanyother obligaƟonstobeperformedbyLessee. (b) LessormayacceptRentorperformanceofLessee's obligaƟonsfromanypersonotherthanLesseependingapprovalordisapproval ofanassignment. NeitheradelayintheapprovalordisapprovalofsuchassignmentnortheacceptanceofRentorperformanceshall consƟtutea waiverorestoppelofLessor'srighttoexerciseitsremediesforLessee'sDefaultorBreach. (c) Lessor'sconsenttoanyassignmentor subleƫngshallnot consƟtuteaconsenttoanysubsequentassignmentor subleƫng. (d) IntheeventofanyDefaultorBreachbyLessee,LessormayproceeddirectlyagainstLessee,anyGuarantorsor anyoneelse responsiblefortheperformanceofLessee's obligaƟonsunderthisLease,includinganyassigneeorsublessee,without ﬁrst exhausƟngLessor's remediesagainstanyotherpersonor enƟtyresponsibletherefortoLessor,oranysecurityheldbyLessor. (e) Eachrequestforconsenttoanassignmentor subleƫngshallbein wriƟng,accompaniedbyinformaƟonrelevanttoLessor's determinaƟonastothe ﬁnancialand operaƟonalresponsibilityandappropriatenessoftheproposedassigneeorsublessee,includingbutnot limitedtotheintendeduseand/orrequired modiﬁcaƟonofthePremises,if any,togetherwithafeeof$500as consideraƟonforLessor's consideringandprocessingsaidrequest. LesseeagreestoprovideLessorwithsuchotheror addiƟonal informaƟonand/or documentaƟonasmay bereasonablyrequested.(SeealsoParagraph36)
(f) Anyassigneeof,or sublesseeunder,thisLeaseshall,byreasonof accepƟngsuchassignment, enteringintosuchsublease,or entering intopossessionofthePremisesorany porƟonthereof,bedeemedtohaveassumedandagreedtoconformandcomplywitheachandeveryterm, covenant, condiƟonand obligaƟonhereintobeobservedorperformedbyLesseeduringthetermofsaidassignmentorsublease,otherthansuch obligaƟonsasarecontrarytoorinconsistentwithprovisionsofanassignmentorsubleasetowhichLessorhas speciﬁcallyconsentedtoin wriƟng. (g) Lessor'sconsenttoanyassignmentor subleƫngshallnottransfertotheassigneeorsublesseeany OpƟongrantedtotheoriginal LesseebythisLeaseunlesssuchtransferis speciﬁcallyconsentedtobyLessorin wriƟng. (SeeParagraph39.2)

12.3 AddiƟonalTermsand CondiƟonsApplicableto Subleƫng. Thefollowingtermsand condiƟonsshallapplytoany subleƫngbyLesseeof alloranypartofthePremisesandshallbedeemedincludedinallsubleasesunderthisLeasewhetherornotexpresslyincorporatedtherein:
(a) LesseeherebyassignsandtransferstoLessorallofLessee'sinterestinallRentpayableonanysublease,andLessormaycollectsuch RentandapplysametowardLessee's obligaƟonsunderthisLease;provided,however,that unƟla BreachshalloccurintheperformanceofLessee's obligaƟons,LesseemaycollectsaidRent. IntheeventthattheamountcollectedbyLessorexceedsLessee'sthenoutstandingobligaƟonsanysuch excessshallberefundedtoLessee. Lessorshallnot,byreasonoftheforegoingoranyassignmentofsuchsublease,norbyreasonofthe collecƟon ofRent,bedeemedliabletothesublesseeforanyfailureofLesseetoperformandcomplywithanyofLessee's obligaƟonstosuchsublessee.

Lesseeherebyirrevocablyauthorizesanddirectsanysuchsublessee,uponreceiptofa wriƩen noƟcefromLessor staƟngthataBreachexistsinthe performanceofLessee's obligaƟonsunderthisLease,topaytoLessorallRentdueandtobecomedueunderthesublease. Sublesseeshallrely uponanysuch noƟcefromLessorandshallpayallRentstoLessorwithoutany obligaƟonor rightto inquireastowhethersuchBreachexists, notwithstandinganyclaimfromLesseetothecontrary.
(b) Intheeventofa BreachbyLessee,Lessormay,atits opƟon,requiresublesseeto aƩorntoLessor,inwhicheventLessorshall undertakethe obligaƟonsofthesublessorundersuchsubleasefromthe Ɵmeoftheexerciseofsaid opƟontothe expiraƟonofsuchsublease; provided,however,Lessorshallnotbeliableforanyprepaidrentsor securitydepositpaidbysuchsublesseetosuchsublessororforanyprior DefaultsorBreachesofsuchsublessor.
(c) Any maƩerrequiringtheconsentofthesublessorunderasubleaseshallalsorequiretheconsentofLessor. (d) NosublesseeshallfurtherassignorsubletalloranypartofthePremiseswithoutLessor'sprior wriƩenconsent. (e) Lessorshalldelivera copyofany noƟceofDefaultorBreachbyLesseetothesublessee,whoshallhavetherighttocuretheDefault ofLesseewithinthegraceperiod,ifany, speciﬁedinsuch noƟce. Thesublesseeshallhavearightofreimbursementand oﬀsetfromandagainst LesseeforanysuchDefaultscuredbythesublessee.

13. Default;Breach;Remedies.

13.1Default;Breach. A"Default"is deﬁnedasa failurebytheLesseetocomplywithor performanyoftheterms,covenants, condiƟonsor Rulesand RegulaƟonsunderthisLease. A"Breach"is deﬁnedastheoccurrenceofoneor moreofthefollowingDefaults,andthefailureofLessee tocuresuchDefaultwithinanyapplicablegraceperiod:
(a) The vacaƟngorabandonmentofthePremises. LesseeshallbedeemedtohavevacatedthePremisesifLesseeceasesto conƟnuouslyoperateitsbusinessinthePremisesforaperiodof5 consecuƟvedays. (b) ThefailureofLesseetomakeanypaymentofRentoranySecurityDepositrequiredtobemadebyLesseehereunder,whetherto Lessorortoathirdparty,whendue,toprovidereasonableevidenceofinsuranceorsuretybond,orto fulﬁllany obligaƟonunderthisLeasewhich endangersorthreatenslifeorproperty,wheresuchfailureconƟnuesforaperiodof3businessdaysfollowing wriƩen noƟcetoLessee. THE

ACCEPTANCEBYLESSOROFA PARTIALPAYMENTOFRENTORSECURITYDEPOSITSHALLNOTCONSTITUTEAWAIVEROFANYOFLESSOR'SRIGHTS, INCLUDINGLESSOR'SRIGHTTORECOVERPOSSESSIONOFTHEPREMISES. (c) ThefailureofLesseetoallowLessorand/oritsagentsaccesstothePremisesorthecommissionofwaste,actoracts consƟtuƟng publicorprivatenuisance,and/oranillegal acƟvityonthePremisesbyLessee,wheresuch acƟons conƟnuefora periodof3businessdays following wriƩen noƟcetoLessee. IntheeventthatLesseecommitswaste,anuisanceoranillegal acƟvityasecond Ɵmethen,theLessormayelect totreatsuchconductasanon-curableBreachratherthanaDefault. (d) ThefailurebyLesseetoprovide(i)reasonable wriƩenevidenceofcompliancewithApplicableRequirements,(ii)theservice contracts,(iii)therescissionofanunauthorizedassignmentor subleƫng,(iv)anEstoppelCerƟﬁcateor ﬁnancialstatements,(v)a requested subordinaƟon,(vi)evidenceconcerninganyguarantyand/orGuarantor,(vii)anydocumentrequestedunderParagraph41,(viii)materialsafetydata sheets(MSDS),or(ix)anyother documentaƟonor informaƟonwhichLessormayreasonablyrequireofLesseeunderthetermsofthisLease,where anysuchfailure conƟnuesforaperiodof10daysfollowing wriƩen noƟcetoLessee. (e) ADefaultbyLesseeastotheterms,covenants, condiƟonsorprovisionsofthisLease,oroftherulesadoptedunderParagraph2.9 hereof,otherthanthosedescribedinsubparagraphs13.1(a),(b),(c)or(d),above,wheresuchDefaultconƟnuesforaperiodof30daysaŌer wriƩen noƟce;provided,however,thatifthenatureofLessee'sDefaultissuchthatmorethan30 daysarereasonablyrequiredforitscure,thenit shallnotbedeemedtobeaBreachifLesseecommencessuchcurewithinsaid30dayperiodandthereaŌerdiligentlyprosecutessuchcureto compleƟon.
(f) Theoccurrenceofanyofthefollowingevents: (i)themakingofanygeneralarrangementor assignmentforthe beneﬁtofcreditors; (ii)becominga"debtor" as deﬁnedin11U.S.C.§101oranysuccessorstatutethereto(unless,inthecaseofa peƟƟon ﬁledagainstLessee,the sameisdismissedwithin60days);(iii)theappointmentofatrusteeorreceivertotakepossessionof substanƟallyallofLessee'sassetslocatedat thePremisesorofLessee'sinterestinthisLease,wherepossessionisnotrestoredtoLesseewithin30days;or(iv)the aƩachment,execuƟonor otherjudicialseizureof substanƟallyallofLessee'sassetslocatedatthePremisesorofLessee'sinterestinthisLease,wheresuchseizureisnot dischargedwithin30days;provided,however,intheeventthatanyprovisionofthissubparagraphiscontrarytoanyapplicablelaw,suchprovision shallbeofnoforceor eﬀect,andnot aﬀectthevalidityoftheremainingprovisions. (g) Thediscoverythatany ﬁnancialstatementofLesseeorofanyGuarantorgiventoLessorwasmateriallyfalse. (h) IftheperformanceofLessee's obligaƟonsunderthisLeaseisguaranteed: (i)thedeathofa Guarantor,(ii)the terminaƟonofa Guarantor'sliabilitywithrespecttothisLeaseotherthaninaccordancewiththetermsofsuchguaranty,(iii)aGuarantor'sbecominginsolventor thesubjectofabankruptcy ﬁling,(iv)a Guarantor'srefusaltohonortheguaranty,or(v)aGuarantor'sbreachofitsguaranty obligaƟononan anƟcipatorybasis,andLessee'sfailure,within60daysfollowingwriƩen noƟceofanysuchevent, toprovide wriƩen alternaƟveassuranceor security,which,whencoupledwiththethen exisƟngresourcesofLessee,equalsorexceedsthecombined ﬁnancialresourcesofLesseeandthe Guarantorsthatexistedatthe Ɵmeof execuƟonofthisLease.

13.2Remedies. If Lesseefailstoperformanyofits aﬃrmaƟveduƟesor obligaƟons,within10days aŌer wriƩen noƟce(orincaseofan emergency,without noƟce),Lessormay,atits opƟon,performsuchdutyor obligaƟononLessee'sbehalf,includingbutnotlimitedtotheobtaining ofreasonablyrequiredbonds,insurancepolicies,or governmentallicenses,permitsorapprovals. LesseeshallpaytoLessoranamountequalto 115%ofthecostsandexpensesincurredbyLessorinsuchperformanceuponreceiptofaninvoicetherefor. Intheeventofa Breach,Lessormay, withorwithoutfurther noƟceordemand,andwithout limiƟngLessorintheexerciseofanyrightorremedywhichLessormayhavebyreasonof suchBreach:
(a) TerminateLessee'srighttopossessionofthePremisesbyanylawfulmeans,inwhichcasethisLeaseshallterminateandLesseeshall immediatelysurrenderpossessiontoLessor. InsucheventLessorshallbe enƟtledtorecoverfromLessee: (i)theunpaidRentwhichhadbeen earnedatthe Ɵmeof terminaƟon;(ii)theworthatthe Ɵmeofawardoftheamountbywhichtheunpaidrentwhichwouldhavebeenearned aŌer terminaƟon unƟlthe ƟmeofawardexceedstheamountofsuchrentallossthattheLesseeprovescouldhavebeenreasonablyavoided;(iii)the worthatthe Ɵmeofawardoftheamountbywhichtheunpaidrentforthebalanceoftheterm aŌerthe Ɵmeofawardexceedstheamountofsuch rentallossthattheLesseeprovescouldbereasonablyavoided;and(iv)anyotheramountnecessarytocompensateLessorforallthedetriment proximatelycausedbytheLessee'sfailuretoperformits obligaƟonsunderthisLeaseor whichintheordinarycourseofthingswouldbelikelyto resulttherefrom,includingbutnotlimitedtothecostofrecoveringpossessionofthePremises,expensesof releƫng,includingnecessary renovaƟonand alteraƟonofthePremises,reasonable aƩorneys'fees,andthat porƟonofanyleasingcommissionpaidbyLessorin connecƟonwith thisLeaseapplicabletotheunexpiredtermofthisLease. Theworthatthe Ɵmeofawardoftheamountreferredtoinprovision(iii)ofthe immediatelyprecedingsentenceshallbecomputedby discounƟngsuchamountatthediscountrateoftheFederalReserveBankoftheDistrict withinwhichthePremisesarelocatedatthe Ɵmeofawardplusonepercent. EﬀortsbyLessortomiƟgatedamagescausedbyLessee'sBreachof thisLeaseshallnotwaiveLessor'srighttorecoveranydamagestowhichLessorisotherwise enƟtled. If terminaƟonofthisLeaseisobtained throughtheprovisionalremedyofunlawfuldetainer,LessorshallhavetherighttorecoverinsuchproceedinganyunpaidRentanddamagesasare recoverabletherein,orLessormayreservetherighttorecoveralloranypartthereofinaseparatesuit. Ifa noƟceandgraceperiodrequiredunder Paragraph13.1wasnotpreviouslygiven,a noƟcetopayrentor quit,ortoperformor quitgiventoLesseeundertheunlawfuldetainerstatuteshall also consƟtutethe noƟcerequiredbyParagraph13.1. Insuchcase,theapplicablegraceperiodrequiredbyParagraph13.1andtheunlawful detainerstatuteshallrunconcurrently,andthefailureofLesseetocuretheDefaultwithinthegreaterofthetwosuchgraceperiodsshall consƟtute bothanunlawfuldetainerandaBreachofthisLease enƟtlingLessortotheremediesprovidedforinthisLeaseand/orbysaidstatute. (b) ConƟnuetheLeaseandLessee'srighttopossessionandrecovertheRentasitbecomesdue,inwhicheventLesseemaysubletor assign,subjectonlytoreasonable limitaƟons. Actsofmaintenance, eﬀortstorelet,and/ortheappointmentofareceivertoprotecttheLessor's interests,shallnot consƟtutea terminaƟonoftheLessee'srighttopossession. (c) Pursueanyotherremedynowor hereaŌeravailableunderthelawsorjudicialdecisionsofthestatewhereinthePremisesare located. The expiraƟonor terminaƟonofthisLeaseand/orthe terminaƟonofLessee'srighttopossessionshallnotrelieveLesseefromliability underanyindemnityprovisionsofthisLeaseasto maƩersoccurringoraccruingduringthetermhereofor byreasonofLessee'soccupancyofthe Premises.

13.3InducementRecapture. Anyagreementforfreeorabatedrentorothercharges,thecostoftenantimprovementsforLesseepaidforor performedbyLessor,orforthegivingorpayingbyLessortoorforLesseeofanycashorotherbonus,inducementor consideraƟonforLessee's enteringintothisLease,allofwhichconcessionsare hereinaŌerreferredtoas"InducementProvisions,"shallbedeemed condiƟonedupon Lessee'sfullandfaithfulperformanceofalloftheterms,covenantsand condiƟonsofthisLease. UponBreachofthisLeasebyLessee,anysuch InducementProvisionshall automaƟcallybedeemeddeletedfromthisLeaseandofnofurtherforceor eﬀect,andanyrent,othercharge,bonus, inducementor consideraƟontheretoforeabated,givenorpaidbyLessorundersuchanInducementProvisionshallbeimmediatelydueandpayable byLesseetoLessor,notwithstandinganysubsequentcureofsaidBreachbyLessee. TheacceptancebyLessorofrentor thecureoftheBreach which iniƟatedthe operaƟonofthisparagraphshallnotbedeemeda waiverbyLessoroftheprovisionsofthisparagraphunless speciﬁcallyso statedin wriƟngbyLessoratthe Ɵmeofsuchacceptance.

13.4LateCharges. LesseeherebyacknowledgesthatlatepaymentbyLesseeofRentwillcauseLessortoincurcostsnotcontemplatedbythis Lease,theexactamountofwhichwillbeextremelydiﬃculttoascertain. Suchcostsinclude,butarenotlimitedto,processingand accounƟng charges,andlatechargeswhichmaybeimposeduponLessorbyanyLender. Accordingly,ifanyRentshallnotbereceivedbyLessorwithin5 days aŌersuchamountshallbedue,then,withoutanyrequirementfor noƟcetoLessee,LesseeshallimmediatelypaytoLessoraone-Ɵmelatecharge equalto10%ofeachsuchoverdueamountor$100,whicheverisgreater.The parƟesherebyagreethatsuchlatechargerepresentsa fairand reasonable esƟmateofthecostsLessorwillincurbyreasonofsuchlatepayment. AcceptanceofsuchlatechargebyLessorshallinnoevent consƟtuteawaiverofLessee'sDefaultorBreachwithrespecttosuchoverdueamount,norpreventtheexerciseofanyoftheotherrightsand remediesgrantedhereunder. Intheeventthatalatechargeispayablehereunder,whetherornotcollected,for3 consecuƟveinstallmentsofBase Rent,thennotwithstandinganyprovisionofthisLeasetothecontrary,BaseRentshall,atLessor's opƟon,becomedueandpayablequarterlyin advance.

13.5Interest. AnymonetarypaymentdueLessorhereunder,otherthanlatecharges,notreceivedbyLessor,whendueshallbearinterestfrom the31stday aŌeritwasdue. Theinterest("Interest")chargedshallbecomputedattherateof10%perannumbutshallnotexceedthemaximum rateallowedbylaw. Interestispayablein addiƟontothe potenƟallatechargeprovidedforinParagraph13.4.

13.6BreachbyLessor.SeeParagraph69
(a) NoƟceofBreach. LessorshallnotbedeemedinbreachofthisLeaseunlessLessorfailswithinareasonable Ɵmetoperforman obligaƟonrequiredtobeperformedbyLessor. ForpurposesofthisParagraph,areasonable Ɵmeshallinnoeventbelessthan30days aŌerreceipt byLessor,andanyLenderwhosenameandaddressshallhavebeenfurnishedtoLesseein wriƟngforsuchpurpose,of wriƩen noƟcespecifying whereinsuch obligaƟonofLessorhasnotbeenperformed;provided,however,thatifthenatureofLessor's obligaƟonissuchthatmorethan30 daysarereasonablyrequiredforitsperformance,thenLessorshallnotbeinbreachifperformanceiscommencedwithinsuch30dayperiodand thereaŌerdiligentlypursuedto compleƟon.
(b) PerformancebyLesseeonBehalfofLessor. IntheeventthatneitherLessornorLendercuressaidbreachwithin30days aŌer receiptofsaid noƟce,orifhavingcommencedsaidcuretheydonotdiligentlypursueittocompleƟon,thenLesseemayelecttocuresaidbreachat Lessee'sexpenseand oﬀsetfromRenttheactualandreasonablecosttoperformsuchcure,provided,however,thatsuch oﬀsetshallnotexceedan amountequaltothegreaterofonemonth'sBaseRentortheSecurityDeposit,reservingLessee'srighttoreimbursementfromLessorforanysuch expenseinexcessofsuch oﬀset. LesseeshalldocumentthecostofsaidcureandsupplysaiddocumentaƟontoLessor.

14. CondemnaƟon. If thePremisesor any porƟonthereofaretakenunderthepowerofeminentdomainorsoldunderthethreatoftheexercise ofsaidpower (collecƟvely"CondemnaƟon"),thisLeaseshallterminateastotheparttakenasofthedatethecondemningauthoritytakes Ɵtleor possession,whichever ﬁrstoccurs. Ifmorethan10%ofthe ﬂoorareaofthePremises,or morethan25%oftheparkingspacessituatedwithinthe parkingarea,istakenby CondemnaƟon,Lesseemay,atLessee's opƟon,tobeexercisedin wriƟngwithin10days aŌerLessorshallhavegiven Lessee wriƩen noƟceofsuchtaking(orintheabsenceofsuch noƟce,within10daysaŌerthecondemningauthorityshallhavetakenpossession) terminatethisLeaseasofthedatethecondemningauthoritytakessuchpossession. IfLesseedoesnotterminatethisLeaseinaccordancewiththe foregoing,thisLeaseshallremaininfullforceand eﬀectastothe porƟonofthePremisesremaining,exceptthattheBaseRentshallbereducedin proporƟontothe reducƟonin uƟlityofthePremisescausedbysuch CondemnaƟon. CondemnaƟonawardsand/orpaymentsshallbetheproperty ofLessor,whethersuchawardshallbemadeas compensaƟonfor diminuƟoninvalueoftheleasehold,thevalueoftheparttaken,orforseverance damages;provided,however,thatLesseeshallbe enƟtledtoany compensaƟonpaidbythecondemnorforLessee's relocaƟonexpenses,lossof businessgoodwilland/orTradeFixtures,withoutregardtowhetheror notthisLeaseisterminatedpursuanttotheprovisionsofthisParagraph. All AlteraƟonsand UƟlity InstallaƟonsmadetothePremisesbyLessee,forpurposesof CondemnaƟononly,shallbeconsideredthepropertyofthe LesseeandLesseeshallbe enƟtledtoanyandall compensaƟonwhichispayabletherefor.IntheeventthatthisLeaseisnotterminatedbyreason ofthe CondemnaƟon,LessorshallrepairanydamagetothePremisescausedbysuch CondemnaƟon.

15. BrokerageFees.

15.1 AddiƟonalCommission. In addiƟontothepaymentsowedpursuanttoParagraph1.13above,Lessoragreesthat: (a)if Lesseeexercises any OpƟon,(b)ifLesseeoranyone aﬃliatedwithLesseeacquiresfromLessoranyrightstothePremisesorotherpremisesownedbyLessorand locatedwithintheShoppingCenter,(c)if LesseeremainsinpossessionofthePremises,withtheconsentofLessor, aŌerthe expiraƟonofthisLease, or(d)if BaseRentisincreased,whetherbyagreementor operaƟonofan escalaƟonclauseherein,then,LessorshallpayBrokersafeeinaccordance withthefeescheduleoftheBrokersin eﬀectatthe ƟmetheLeasewasexecuted. Theprovisionsofthisparagraphareintendedtosupersedethe provisionsofanyearlieragreementtothecontrary.

15.2 AssumpƟonof ObligaƟons. AnybuyerortransfereeofLessor'sinterestinthisLeaseshallbedeemedtohaveassumedLessor's obligaƟon hereunder.Brokersshallbethirdparty beneﬁciariesoftheprovisionsofParagraphs1.13,15,22and31. IfLessorfailstopaytoBrokersany amountsdueasandforbrokeragefeespertainingtothisLeasewhendue,thensuchamountsshallaccrueInterest. In addiƟon,ifLessorfailstopay anyamountstoLessee'sBrokerwhendue,Lessee'sBrokermaysend wriƩen noƟcetoLessorandLesseeofsuchfailureandif Lessorfailstopay suchamountswithin10days aŌersaid noƟce,Lesseeshallpaysaidmoniestoits Brokerand oﬀsetsuchamountsagainstRent. In addiƟon,Lessee's Brokershallbedeemedtobea thirdparty beneﬁciaryofanycommissionagreemententeredintobyand/orbetweenLessorandLessor'sBrokerfor thelimitedpurposeof collecƟnganybrokeragefeeowed.

15.3 RepresentaƟonsand IndemniƟesofBroker RelaƟonships. LesseeandLessoreachrepresentandwarranttotheotherthatithashadno dealingswithanyperson, ﬁrm,broker,agentor ﬁnder(otherthantheBrokersandAgents,ifany)in connecƟonwiththisLease,andthatnoone otherthansaidnamedBrokersandAgentsis enƟtledtoanycommissionor ﬁnder'sfeein connecƟonherewith. LesseeandLessordoeachhereby agreetoindemnify,protect,defendandholdtheotherharmlessfromandagainstliabilityforcompensaƟonor chargeswhichmaybeclaimedby anysuchunnamedbroker,ﬁnderorothersimilarpartybyreasonofanydealingsor acƟonsoftheindemnifyingParty,includinganycosts,expenses, aƩorneys'feesreasonablyincurredwithrespectthereto.

16. EstoppelCerƟﬁcates.
(a) EachParty(as"RespondingParty")shallwithin10days aŌer wriƩen noƟcefromtheotherParty(the"RequesƟngParty")execute, acknowledgeanddelivertothe RequesƟngPartyastatementin wriƟnginformsimilartothethenmostcurrent"Estoppel CerƟﬁcate"form publishedbyAIRCRE,plussuch addiƟonal informaƟon, conﬁrmaƟonand/orstatementsasmaybereasonablyrequestedbythe RequesƟngParty. (b) IftheRespondingPartyshallfailtoexecuteor delivertheEstoppel CerƟﬁcatewithinsuch10dayperiod,the RequesƟngPartymay executeanEstoppel CerƟﬁcate staƟngthat:(i)theLeaseisinfullforceand eﬀectwithoutmodiﬁcaƟonexceptasmayberepresentedbythe RequesƟngParty,(ii)therearenouncureddefaultsinthe RequesƟngParty'sperformance,and(iii)ifLessoristhe RequesƟngParty,notmorethan onemonth'srenthasbeenpaidinadvance. ProspecƟvepurchasersandencumbrancersmayrelyuponthe RequesƟngParty'sEstoppel CerƟﬁcate, andtheRespondingPartyshallbeestoppedfromdenyingthetruthofthefactscontainedinsaidCerƟﬁcate. In addiƟon,Lesseeacknowledgesthat anyfailureonitsparttoprovidesuchanEstoppel CerƟﬁcatewillexposeLessortorisksandpotenƟallycauseLessortoincurcostsnotcontemplated bythisLease,theextentofwhichwillbeextremely diﬃculttoascertain. Accordingly,shouldtheLesseefailtoexecuteand/ordeliverarequested Estoppel CerƟﬁcateina ƟmelyfashionthemonthlyBaseRentshallbe automaƟcallyincreased,withoutanyrequirementfor noƟcetoLessee,byan amountequalto10%ofthethen exisƟngBaseRentor$100,whicheverisgreaterforremainderoftheLease. The ParƟesagreethatsuchincrease inBaseRentrepresentsfairandreasonable compensaƟonforthe addiƟonalrisk/coststhatLessorwillincurbyreasonofLessee'sfailuretoprovide theEstoppelCerƟﬁcate. SuchincreaseinBaseRentshallinnoevent consƟtuteawaiverofLessee'sDefaultorBreachwithrespecttothefailureto providetheEstoppel CerƟﬁcatenorpreventtheexerciseofanyoftheotherrightsandremediesgrantedhereunder. (c) IfLessordesiresto ﬁnance, reﬁnance,orsellthePremises,oranypartthereof,LesseeandallGuarantorsshallwithin10days aŌer wriƩen noƟcefromLessordelivertoany potenƟallenderorpurchaserdesignatedbyLessorsuch ﬁnancialstatementsasmaybereasonably requiredbysuchlenderorpurchaser,includingbutnotlimitedtoLessee's ﬁnancialstatementsforthepast3 years. Allsuch ﬁnancialstatements shallbereceivedbyLessorandsuchlenderorpurchaserin conﬁdenceandshallbeusedonlyforthepurposeshereinsetforth.

17. DeﬁniƟonofLessor. Theterm"Lessor"asusedhereinshallmeantheownerorownersatthe Ɵmein quesƟonofthefee ƟtletothePremises, or,ifthisisasublease,oftheLessee'sinterestinthepriorlease. Intheeventofatransfer ofLessor's ƟtleorinterestinthePremisesorthisLease, Lessorshalldelivertothetransfereeor assignee(incashorbycredit)anyunusedSecurityDepositheldbyLessor. Uponsuchtransferor assignmentanddeliveryoftheSecurityDeposit,asaforesaid,thepriorLessorshallberelievedofallliabilitywithrespecttothe obligaƟonsand/or covenantsunderthisLease thereaŌertobeperformedbytheLessor. Subjecttotheforegoing,the obligaƟonsand/orcovenantsinthisLeasetobe performedbytheLessorshallbebindingonlyupontheLessorashereinabovedeﬁned.

18. Severability.TheinvalidityofanyprovisionofthisLease,asdeterminedbya courtofcompetent jurisdicƟon,shallinnoway aﬀectthevalidity ofanyotherprovisionhereof.

19. Days. Unlessotherwise speciﬁcallyindicatedtothecontrary,theword"days"asusedinthisLeaseshallmeanandrefertocalendardays.

20. LimitaƟononLiability. The obligaƟonsofLessorunderthisLeaseshallnot consƟtutepersonal obligaƟonsofLessor,oritspartners,members, directors, oﬃcersorshareholders,andLesseeshalllooktotheProject,andtonootherassetsofLessor,forthe saƟsfacƟonofanyliabilityofLessor withrespecttothisLease,andshallnotseekrecourseagainstLessor'spartners,members,directors, oﬃcersorshareholders,or anyoftheir personalassetsforsuch saƟsfacƟon.

21. TimeofEssence. Timeisoftheessencewithrespecttotheperformanceofall obligaƟonstobeperformedorobservedbythe ParƟesunder thisLease.

22. NoPriororOtherAgreements;BrokerDisclaimer. ThisLeasecontainsallagreementsbetweenthe ParƟeswithrespecttoany maƩer menƟonedherein,andnootherpriororcontemporaneousagreementorunderstandingshallbe eﬀecƟve. LessorandLesseeeachrepresentsand warrantstotheBrokersthatithasmade,andisrelyingsolelyupon,itsown invesƟgaƟonastothenature,quality,characterand ﬁnancial responsibilityoftheotherPartytothisLeaseandastotheuse,nature,qualityandcharacterofthePremises. Brokershavenoresponsibilitywith respecttheretoorwithrespecttoanydefaultorbreachhereofbyeitherParty.

23. NoƟces.

23.1 NoƟceRequirements. All noƟcesrequiredor permiƩedbythisLeaseorapplicablelawshallbein wriƟngandmaybedeliveredinperson (byhandorbycourier)ormaybesentbyregular, cerƟﬁedorregisteredmailorU.S.PostalServiceExpressMail,withpostageprepaid,or by facsimiletransmission,orbyemail,andshallbedeemed suﬃcientlygivenifservedinamanner speciﬁedinthisParagraph23. Theaddressesnoted inParagraph70 adjacenttoaParty'ssignatureonthisLeaseshallbethatParty'saddressfordeliveryormailingof noƟces. EitherPartymayby wriƩen noƟcetotheotherspecifya diﬀerentaddressfor noƟce,exceptthatuponLessee'stakingpossessionofthePremises,thePremisesshall consƟtuteLessee'saddressfor noƟce. Acopyofall noƟcestoLessorshallbeconcurrentlytransmiƩedtosuchpartyor parƟesatsuchaddressesas Lessormayfrom Ɵmeto Ɵme hereaŌerdesignatein wriƟng.

23.2Dateof NoƟce. Any noƟcesentbyregisteredor cerƟﬁedmail,returnreceiptrequested,shallbedeemedgivenonthedateofdelivery shownonthereceiptcard,orifnodeliverydateisshown,thepostmarkthereon. If sentbyregularmailthe noƟceshallbedeemedgiven72hours aŌerthesameisaddressedasrequiredhereinandmailedwithpostageprepaid. NoƟcesdeliveredby UnitedStatesExpressMailor overnight courierthatguaranteesnextdaydeliveryshallbedeemedgiven24hours aŌerdeliveryofthesametothePostalServiceorcourier. NoƟces deliveredbyhand,or transmiƩedbyfacsimiletransmissionorbyemailshallbedeemeddelivereduponactualreceipt. If noƟceisreceivedona Saturday,Sundayorlegalholiday,itshallbedeemedreceivedonthenextbusinessday.

23.3 OpƟons. Notwithstandingtheforegoing,inordertoexerciseany OpƟons(seeparagraph39),the NoƟcemustbesentby CerƟﬁedMail (returnreceiptrequested),ExpressMail(signaturerequired),courier(signaturerequired)orsomeothermethodologythatprovidesareceipt establishingthedatethe noƟcewasreceivedbytheLessor.

24. Waivers.
(a) NowaiverbyLessoroftheDefaultor Breachofanyterm,covenantor condiƟonhereofbyLessee,shallbedeemedawaiverofany otherterm,covenantor condiƟonhereof,orofanysubsequentDefaultorBreachbyLesseeofthesameorofanyotherterm,covenantor condiƟon hereof. Lessor'sconsentto,orapprovalof,anyactshallnotbedeemedtorenderunnecessarytheobtainingofLessor'sconsentto,orapprovalof, anysubsequentorsimilaractbyLessee,orbeconstruedasthebasisofanestoppeltoenforcetheprovisionorprovisionsofthisLeaserequiring suchconsent.
(b) TheacceptanceofRentbyLessorshallnotbeawaiverofanyDefaultorBreachbyLessee. AnypaymentbyLesseemaybeaccepted byLessoronaccountofmoniesor damagesdueLessor,notwithstandinganyqualifyingstatementsor condiƟonsmadebyLesseein connecƟon therewith,whichsuchstatementsand/or condiƟonsshallbeofnoforceor eﬀectwhatsoeverunless speciﬁcallyagreedtoin wriƟngbyLessorator beforethe Ɵmeofdepositofsuchpayment.
(c) THEPARTIESAGREETHATTHETERMSOFTHISLEASESHALLGOVERNWITHREGARDTOALLMATTERSRELATEDTHERETOAND HEREBYWAIVETHEPROVISIONSOFANYPRESENTORFUTURESTATUTETOTHEEXTENTTHATSUCHSTATUTEISINCONSISTENTWITHTHISLEASE.

25. DisclosuresRegardingTheNatureofaRealEstateAgency RelaƟonship. (a) Whenenteringintoadiscussionwitha realestateagentregardingarealestate transacƟon,aLessororLesseeshouldfromthe outsetunderstandwhattypeofagencyrelaƟonshipor representaƟonithaswiththeagentor agentsinthe transacƟon. LessorandLessee acknowledgebeingadvisedbytheBrokersinthis transacƟon,asfollows:
(i) Lessor'sAgent. ALessor'sagentundera lisƟngagreementwiththeLessoractsastheagentfortheLessoronly. ALessor's agentorsubagenthasthefollowingaﬃrmaƟve obligaƟons: TotheLessor: A ﬁduciarydutyofutmostcare,integrity,honesty,andloyaltyindealings withtheLessor. TotheLesseeandtheLessor: (a) Diligentexerciseofreasonableskillsandcareinperformanceoftheagent's duƟes. (b)Adutyof honestandfairdealingandgoodfaith. (c)Adutytodiscloseallfactsknowntotheagentmaterially aﬀecƟngthevalueordesirabilityofthe propertythatarenotknownto,orwithinthediligent aƩenƟonand observaƟonof,the ParƟes. AnagentisnotobligatedtorevealtoeitherParty any conﬁdenƟalinformaƟonobtainedfromtheotherPartywhichdoesnotinvolvethe aﬃrmaƟveduƟessetforthabove. (ii) Lessee'sAgent. AnagentcanagreetoactasagentfortheLesseeonly. Inthese situaƟons,theagentisnottheLessor'sagent, evenifbyagreementtheagentmayreceive compensaƟonforservicesrendered,eitherinfullorinpartfromtheLessor. Anagent acƟngonlyfora Lesseehasthefollowing aﬃrmaƟve obligaƟons. TotheLessee: A ﬁduciarydutyofutmostcare,integrity,honesty,andloyaltyindealingswiththe Lessee. TotheLesseeandtheLessor: (a)Diligentexerciseofreasonableskillsandcareinperformanceoftheagent's duƟes. (b)Adutyofhonest andfairdealingandgoodfaith. (c)Adutytodiscloseallfactsknowntotheagentmaterially aﬀecƟngthevalueordesirabilityofthepropertythat arenotknownto,orwithinthediligent aƩenƟonand observaƟonof,the ParƟes. AnagentisnotobligatedtorevealtoeitherPartyany conﬁdenƟal informaƟonobtainedfromtheotherPartywhichdoesnotinvolvethe aﬃrmaƟve duƟessetforthabove. (iii) Agent RepresenƟngBothLessorandLessee. Arealestateagent,either acƟngdirectlyorthroughoneormoreassociate licensees,canlegallybetheagentofboththeLessorandtheLesseeina transacƟon,butonlywiththeknowledgeandconsentofboththeLessor andtheLessee. Inadualagency situaƟon,theagenthasthefollowing aﬃrmaƟve obligaƟonstoboththeLessorandtheLessee:(a)A ﬁduciaryduty ofutmostcare,integrity,honestyandloyaltyinthedealingswitheitherLessorortheLessee. (b)Other duƟestotheLessorandtheLesseeas statedaboveinsubparagraphs(i)or(ii). In represenƟngbothLessorandLessee,theagentmaynot,withouttheexpresspermissionofthe respecƟveParty,disclosetotheotherParty conﬁdenƟal informaƟon,including,butnotlimitedto,facts relaƟngtoeitherLessee'sorLessor's ﬁnancial posiƟon, moƟvaƟons,bargaining posiƟon,orotherpersonal informaƟonthatmayimpactrent,includingLessor'swillingnesstoaccepta rentlessthanthe lisƟngrentorLessee'swillingnesstopayrentgreaterthantherent oﬀered. Theabove duƟesoftheagentinarealestate transacƟondonotrelieveaLessororLesseefromtheresponsibilitytoprotecttheirowninterests. LessorandLesseeshouldcarefullyreadall agreementstoassurethattheyadequatelyexpresstheirunderstandingofthe transacƟon. Arealestateagentisa person qualiﬁedtoadviseabout realestate. Iflegalortaxadviceisdesired,consultacompetentprofessional. BothLessorandLesseeshouldstronglyconsiderobtainingtaxadvice fromacompetentprofessionalbecausethefederalandstatetaxconsequencesofa transacƟoncanbecomplexandsubjecttochange. (b) BrokershavenoresponsibilitywithrespecttoanydefaultorbreachhereofbyeitherParty. The ParƟesagreethatnolawsuitor otherlegalproceedinginvolvinganybreachofduty,errororomission relaƟngtothisLeasemaybebroughtagainstBrokermorethanoneyear aŌer theStartDateandthattheliability(includingcourtcostsand aƩorneys'fees),ofanyBrokerwithrespecttoanysuchlawsuitand/orlegal proceedingshallnotexceedthefeereceivedbysuchBrokerpursuanttothisLease;provided,however,thattheforegoing limitaƟononeach Broker'sliabilityshallnotbeapplicabletoanygrossnegligenceorwillfulmisconductofsuchBroker. (c) LessorandLesseeagreeto idenƟfytoBrokersas "ConﬁdenƟal"any communicaƟonor informaƟongivenBrokersthatisconsidered bysuchPartytobe conﬁdenƟal.

26. NoRightToHoldover. LesseehasnorighttoretainpossessionofthePremisesoranypartthereofbeyondthe expiraƟonor terminaƟonof thisLease. Atorpriortothe expiraƟonor terminaƟonofthisLeaseLesseeshalldeliverexclusivepossessionofthePremisestoLessor. For purposesofthisprovisionandParagraph13.1(a),exclusivepossessionshallmeanthatLesseeshallhavevacatedthePremises,removedallofits personalpropertytherefromandthatthePremiseshavebeenreturnedinthe condiƟon speciﬁedinthisLease. IntheeventthatLesseedoesnot deliverexclusivepossessiontoLessoras speciﬁedabove,thenLessor'sdamagesduringanyholdoverperiodshallbecomputedattheamountofthe Rent(as deﬁnedinParagraph4.1)dueduringthelastfullmonthbeforethe expiraƟonorterminaƟonofthisLease(disregardinganytemporary abatementofRentthatmayhavebeenin eﬀect),butwithBaseRentandPercentageRentRatebeing150%oftheBaseRentandPercentageRent Ratepayableduringsuchlastfullmonth. NothingcontainedhereinshallbeconstruedasconsentbyLessortoanyholdingoverbyLessee.

27. CumulaƟveRemedies. Noremedyor elecƟonhereundershallbedeemedexclusivebutshall,whereverpossible,be cumulaƟvewithallother remediesatlaworinequity.

28. Covenantsand CondiƟons; ConstrucƟonofAgreement. AllprovisionsofthisLeasetobeobservedorperformedbyLesseeareboth covenantsand condiƟons. InconstruingthisLease,allheadingsand Ɵtlesarefortheconvenienceofthe ParƟesonlyandshallnotbeconsidereda partofthisLease. Wheneverrequiredbythecontext,thesingularshallincludethepluralandviceversa. ThisLeaseshallnotbeconstruedasif preparedbyoneofthe ParƟes,butratheraccordingtoitsfairmeaningasawhole,asif bothParƟeshadpreparedit.

29. Binding Eﬀect;ChoiceofLaw. ThisLeaseshallbebindinguponthe ParƟes,theirpersonalrepresentaƟves,successorsandassignsandbe governedbythelawsoftheStateinwhichthePremisesarelocated. Any liƟgaƟonbetweentheParƟesheretoconcerningthisLeaseshallbe iniƟatedinthecountyinwhichthePremisesarelocated. SignaturestothisLeaseaccomplishedbymeansofelectronicsignatureor similar technologyshallbelegalandbinding.

30. SubordinaƟon;AƩornment;Non-Disturbance. SeeParagraph66

30.1 SubordinaƟon. ThisLeaseandany OpƟongrantedherebyshallbesubjectandsubordinatetoanygroundlease,mortgage,deedoftrust, orother hypothecaƟonorsecuritydevice (collecƟvely,"SecurityDevice"),nowor hereaŌerplaceduponthePremises,toanyandalladvances madeonthesecuritythereof,andtoallrenewals,modiﬁcaƟons,andextensionsthereof. LesseeagreesthattheholdersofanysuchSecurity Devices(inthisLeasetogetherreferredtoas"Lender")shallhavenoliabilityor obligaƟontoperformanyofthe obligaƟonsofLessorunderthis Lease. AnyLendermayelecttohavethisLeaseand/orany OpƟongrantedherebysuperiortothelienofitsSecurityDevicebygiving wriƩen noƟce thereoftoLessee,whereuponthisLeaseandsuch OpƟonsshallbedeemedpriortosuchSecurityDevice,notwithstandingthe relaƟvedatesofthe documentaƟonor recordaƟonthereof.

30.2 AƩornment. IntheeventthatLessortransfersƟtletothePremises,or thePremisesareacquiredbyanotherupontheforeclosureor terminaƟonofa SecurityDevicetowhichthisLeaseissubordinated(i)Lesseeshall,subjecttothenon-disturbanceprovisionsofParagraph30.3, aƩorntosuchnewowner,anduponrequest,enterintoanewlease,containingallofthetermsandprovisionsofthisLease,withsuchnewowner fortheremainderofthetermhereof,or,atthe elecƟonofthenewowner,thisLeasewillautomaƟcallybecomeanewleasebetweenLesseeand suchnewowner,and(ii)Lessorshall thereaŌerberelievedofanyfurther obligaƟonshereunderandsuchnewownershallassumeallofLessor's obligaƟons,exceptthatsuchnewownershallnot:(a)beliableforanyactoromissionofanypriorlessororwithrespecttoeventsoccurringpriorto acquisiƟonofownership;(b)besubjecttoany oﬀsetsor defenseswhichLesseemighthaveagainstanypriorlessor, (c)beboundbyprepaymentof morethanonemonth'srent,or(d)beliableforthereturnofanysecuritydepositpaidtoanypriorlessorwhichwasnotpaidorcreditedtosuch newowner.

30.3Non-Disturbance. WithrespecttoSecurityDevicesenteredintobyLessor aŌerthe execuƟonofthisLease,Lessee's subordinaƟonofthis Leaseshallbesubjecttoreceivinga commerciallyreasonablenon-disturbanceagreement(a"Non-DisturbanceAgreement")fromtheLender whichNon-DisturbanceAgreementprovidesthatLessee'spossessionofthePremises,andthisLease,includingany opƟonstoextendtheterm hereof,willnotbedisturbedsolongasLesseeisnotinBreachhereofand aƩornstotherecordownerofthePremises. Further,within60days aŌer the execuƟonofthisLease,Lessorshall,ifrequestedbyLessee,useitscommerciallyreasonable eﬀortstoobtainaNon-DisturbanceAgreement fromtheholderofanypre-exisƟngSecurityDevicewhichissecuredbythePremises. IntheeventthatLessorisunabletoprovidethe Non-DisturbanceAgreementwithinsaid60days,thenLesseemay,atLessee's opƟon,directlycontactLenderand aƩemptto negoƟateforthe execuƟonanddeliveryofa Non-DisturbanceAgreement.

30.4Self-ExecuƟng. TheagreementscontainedinthisParagraph30shallbe eﬀecƟvewithouttheexecuƟonofanyfurtherdocuments; provided,however,that,upon wriƩenrequestfromLessororaLenderin connecƟonwithasale, ﬁnancingor reﬁnancingofthePremises,Lessee andLessorshallexecutesuchfurther wriƟngsasmaybereasonablyrequiredtoseparatelydocumentany subordinaƟon, aƩornmentand/or Non-DisturbanceAgreementprovidedforherein.

31. AƩorneys'Fees. IfanyPartyorBrokerbringsan acƟonorproceedinginvolvingthePremiseswhetherfoundedintort,contractorequity,orto declarerightshereunder,thePrevailingParty(as hereaŌer deﬁned)inanysuchproceeding,acƟon,orappealthereon,shallbe enƟtledto reasonable aƩorneys'fees. Suchfeesmaybeawardedinthesamesuitorrecoveredinaseparatesuit,whetheror notsuch acƟonorproceedingis pursuedtodecisionorjudgment. Theterm,"PrevailingParty"shallinclude,without limitaƟon,a PartyorBrokerwho substanƟallyobtainsor defeatsthereliefsought,asthecasemaybe,whetherbycompromise, seƩlement,judgment,ortheabandonmentbytheotherPartyorBrokerof itsclaimordefense. The aƩorneys'feesawardshallnotbecomputedinaccordancewithanycourtfeeschedule,butshallbesuchastofully reimburseall aƩorneys'feesreasonablyincurred. In addiƟon,Lessorshallbe enƟtledto aƩorneys'fees,costsandexpensesincurredinthe preparaƟonandserviceof noƟcesofDefaultand consultaƟonsin connecƟontherewith,whetherornotalegal acƟonissubsequentlycommenced in connecƟonwithsuchDefaultor resulƟngBreach($200isa reasonableminimumperoccurrenceforsuchservicesand consultaƟon).

32. Lessor'sAccess;ShowingPremises;Repairs. LessorandLessor'sagentsshallhavetherighttoenterthePremisesatany Ɵme,inthecaseofan emergency,andotherwiseatreasonable Ɵmes aŌerreasonableprior noƟceduringLessee'sbusinesshours forthepurposeofshowingthesame to prospecƟvepurchasers,lenders,ortenants,andmakingsuch alteraƟons,repairs,improvementsor addiƟonstothePremisesasLessormay deemnecessaryor desirableandthe erecƟng,usingandmaintainingof uƟliƟes,services,pipesandconduitsthroughthePremisesand/orother premisesaslongasthereisnomaterialadverseeﬀectonLessee'suseofthePremises. AllsuchacƟviƟesshallbewithoutabatementofrentor liabilitytoLessee.

33. AucƟons. Lesseeshallnotconduct,norpermittobeconducted,any aucƟonuponthePremiseswithoutLessor'sprior wriƩenconsent,which consentshallbegrantedordeniedatLessor'ssole discreƟon.

34. Signs. LessormayplaceonthePremisesordinary"ForSale"signsatany Ɵmeandordinary"ForLease"signsduringthelast6monthsofthe termhereof. AllsignsmustcomplywithallApplicableRequirements. Lesseeshallnotplace,construct,ormaintainontheglasspanesorsupports oftheshowwindowsofthePremises,thedoors,exteriorwallsortheroofoftheBuilding,oranywhereelsewithintheShoppingCenteroutsideof thePremises,oronanyinteriorporƟonsofthePremisesthatarevisiblefromtheexteriorofthePremises,anysigns, adverƟsements,names, insignia,trademarks,descripƟvematerialor anyotheritemswithoutLessor'sprior wriƩenconsent,whichconsentshallbegrantedordeniedat Lessor'ssole discreƟon. Lessorshalldesignatethesize,shape,color,design,and locaƟonofallexteriorsign(s)tobeinstalledbyLessee,andLessee shall,atLessee'ssolecostandexpense,fabricate,constructandinstallallsuchsign(s)infullcompliancewithLessor's designaƟonandinaccordance withtheSignCriteriafortheShoppingCenter aƩachedhereto,ifany. Lesseeagreestosubmitplansand speciﬁcaƟonsforLessee'ssign(s)for Lessor's wriƩenapprovalwithin30days aŌerthefull execuƟonhereofandtoinstallsuchsign(s)priortoopeningforbusinessatthePremises.

Lessor,atLessee'scost,mayremoveanyitemplaced,constructedormaintainedin,uponoraboutthePremisesorShoppingCenterwhichdoesnot complywiththisparagraph. Intheeventthereisa pole,pylonormonumentsignfortheShoppingCenter,Lessorshallhavetheright,butnotthe obligaƟon,toinstall leƩering designaƟngLessee'sbusinessonsuchsign,atLessee'sexpense,withLessor'sapprovalof locaƟon,size,styleandcolor.

Allsignsthatarepermanently aƩachedtothePremisesor BuildingshallbecomethepropertyofLessoratthe expiraƟonor earlier terminaƟon hereof;provided,however,thatLesseeshallpromptlyremoveallsuchsignsifLessorsoelects,andLesseeshallpromptlyrepairalldamagecaused bysuchremoval. Lesseeshallnotplace,constructormaintainin,uponoraboutthePremisesanysearchlights, ﬂashinglights,loudspeakers, phonographsorothervisualoraudiomedia.SeeParagraph57

35. T erminaƟon;Merger. Unless speciﬁcallystatedotherwisein wriƟngbyLessor,thevoluntaryorothersurrenderofthisLeasebyLessee,the mutual terminaƟonor cancellaƟonhereof,ora terminaƟonhereofbyLessorforBreachbyLessee,shall automaƟcallyterminateanysubleaseor lesserestateinthePremises;provided,however,thatLessormayelectto conƟnueanyoneorall exisƟngsubtenancies. Lessor'sfailurewithin10 daysfollowinganysucheventtoelecttothecontraryby wriƩen noƟcetotheholderofanysuchlesserinterest,shall consƟtuteLessor's elecƟonto havesuchevent consƟtutethe terminaƟonofsuchinterest.

36. Consents. Allrequestsforconsentshallbein wriƟng. Exceptasotherwiseprovidedherein,whereverinthisLeasetheconsentofaPartyis requiredtoanactbyorfortheotherParty,suchconsentshallnotbeunreasonablywithheldordelayed. Inthoseexpressinstanceswhereconsent iswithinthesole discreƟonofaparty,thepartyshallhaveno obligaƟontoadheretoastandardofreasonableness. Lessor'sactualreasonable costsandexpenses(includingbutnotlimitedtoarchitects',aƩorneys',engineers'andotherconsultants'fees)incurredinthe consideraƟonof,or responseto,a requestbyLesseeforanyLessorconsent,includingbutnotlimitedtoconsentstoanassignment,a subleƫngor thepresenceoruse ofaHazardousSubstance,shallbepaidbyLesseeuponreceiptofaninvoiceand supporƟngdocumentaƟontherefor. Lessor'sconsenttoanyact, assignmentor subleƫngshallnot consƟtutean acknowledgmentthatnoDefaultorBreachbyLesseeofthisLeaseexists,norshallsuchconsentbe deemedawaiverofanythen exisƟngDefaultorBreach,exceptasmaybeotherwise speciﬁcallystatedin wriƟngbyLessoratthe Ɵmeofsuch consent. Thefailuretospecifyhereinany parƟcular condiƟontoLessor'sconsentshallnotprecludethe imposiƟonbyLessoratthe Ɵmeofconsent ofsuchfurtherorother condiƟonsasarethenreasonablewithreferencetothe parƟcular maƩerforwhichconsentisbeinggiven. Intheevent thateitherPartydisagreeswithany determinaƟonmadebytheotherhereunderandreasonablyrequeststhereasonsforsuch determinaƟon,the determiningpartyshallfurnishitsreasonsin wriƟngandinreasonabledetailwithin10businessdaysfollowingsuchrequest.

37. Guarantor.

37.1 ExecuƟon. TheGuarantors,ifany,shalleachexecuteaguarantyintheformmostrecentlypublishedbyAIRCRE.

37.2Default. Itshall consƟtuteaDefaultoftheLesseeif anyGuarantorfailsorrefuses,uponrequesttoprovide: (a)evidenceofthe execuƟon oftheguaranty,includingtheauthorityofthepartysigningonGuarantor'sbehalftoobligateGuarantor,andinthecaseofacorporateGuarantor,a cerƟﬁedcopyofa resoluƟonofitsboardofdirectorsauthorizingthemakingofsuchguaranty,(b)current ﬁnancialstatements,(c)anEstoppel CerƟﬁcate,or(d) wriƩen conﬁrmaƟonthattheguarantyis sƟllin eﬀect.

38. QuietPossession. SubjecttopaymentbyLesseeoftheRentandperformanceofallofthecovenants, condiƟonsandprovisionsonLessee's parttobeobservedandperformedunderthisLease,LesseeshallhavequietpossessionandquietenjoymentofthePremisesduringtheterm hereof.

39. OpƟons. IfLesseeisgrantedany OpƟon,as deﬁnedbelow,thenthefollowingprovisionsshallapply.

39.1 DeﬁniƟon. "OpƟon"shallmean: (a)therighttoextendorreducethetermoforrenewthisLeaseor toextendorreducethetermofor renewanyleasethatLesseehasonotherpropertyofLessor;(b)therightof ﬁrstrefusalor ﬁrst oﬀertoleaseeitherthePremisesorotherproperty ofLessor;(c)therighttopurchase,therightof ﬁrst oﬀertopurchaseortherightof ﬁrstrefusaltopurchasethePremisesor otherpropertyof Lessor.

39.2 OpƟonsPersonalToOriginalLessee. Any OpƟongrantedtoLesseeinthisLeaseispersonaltotheoriginalLessee,andcannotbeassigned orexercisedbyanyoneotherthansaidoriginalLesseeandonlywhiletheoriginalLesseeisinfullpossessionofthePremisesand,if requestedby Lessor,withLessee cerƟfyingthatLesseehasno intenƟonof thereaŌerassigningor subleƫng.

39.3 MulƟple OpƟons. IntheeventthatLesseehasany mulƟple OpƟonstoextendorrenewthisLease,alater OpƟoncannotbeexercised unlesstheprior OpƟonshavebeenvalidlyexercised.

39.4 EﬀectofDefaulton OpƟons.
(a) Lesseeshallhavenorighttoexercisean OpƟon: (i)duringtheperiodcommencingwiththegivingofany noƟceofDefaultand conƟnuing unƟlsaidDefaultiscured,(ii)duringtheperiodof ƟmeanyRentisunpaid(withoutregardtowhether noƟcethereofisgivenLessee),(iii) duringthe ƟmeLesseeisinBreachofthisLease,or (iv)intheeventthatLesseehasbeengiven3 ormore noƟcesofseparateDefault,whetheror nottheDefaultsarecured,duringthe12monthperiodimmediatelyprecedingtheexerciseoftheOpƟon. (b) Theperiodof Ɵmewithinwhichan OpƟonmaybeexercisedshallnotbeextendedorenlargedbyreasonofLessee'sinabilityto exercisean OpƟonbecauseoftheprovisionsofParagraph39.4(a). (c) An OpƟonshallterminateandbeofnofurtherforceor eﬀect,notwithstandingLessee'sdueand Ɵmelyexerciseofthe OpƟon,if, aŌersuchexerciseandpriortothecommencementoftheextendedtermor compleƟonofthepurchase,(i)LesseefailstopayRentfora periodof 30daysaŌersuchRentbecomesdue(withoutanynecessityofLessortogive noƟcethereof),or(ii)if Lesseecommitsa BreachofthisLease.

40. SecurityMeasures. LesseeherebyacknowledgesthattheRentpayabletoLessorhereunderdoesnotincludethecostofguardserviceor othersecuritymeasures,andthatLessorshallhaveno obligaƟonwhatsoevertoprovidesame. Lesseeassumesallresponsibilityforthe protecƟon ofthePremises,Lessee,itsagentsandinviteesandtheirpropertyfromtheactsofthird parƟes. WhileLessordoesnotassumeanyresponsibilityto provideanysecuritymeasuresor anyliabilityforfailuretoprovidesecuritymeasuresor foranyinadequacythereof,Lessorshallhavetheauthority to insƟtuteor conƟnuesuchsecuritymeasuresasLessorinitssole discreƟondeemsnecessaryorappropriatefrom Ɵmeto Ɵme,thecostand expensesofwhichshallbeconsideredCommonArea OperaƟngExpenses. TothedegreedirectedbyLessor,Lesseeshallcoordinateitssecurity measuresatthePremiseswiththesecuritymeasures insƟtutedbyLessor,if any.

41. ReservaƟons. Lessorreservestheright:(i)togrant,withouttheconsentorjoinderofLessee,sucheasements,rightsand dedicaƟonsthat Lessordeemsnecessary,(ii)tocausethe recordaƟonofparcelmapsand restricƟons,and(iii)tocreateand/orinstallnew uƟlityraceways,solong assucheasements,rights, dedicaƟons,maps, restricƟons,and uƟlityracewaysdonotunreasonablyinterferewiththeuseofthePremisesby Lessee. LesseeagreestosignanydocumentsreasonablyrequestedbyLessorto eﬀectuatesuchrights.

42. BuildingPlanning. Lessorshallhavetherightatany Ɵmeor Ɵmes,upongivingLesseenotlessthan60daysprior wriƩen noƟce,toprovide andfurnishLesseewithspaceofcomparablevisibilitylocatedelsewherewithinanyofthebuildingswithintheShoppingCenterandtomoveLessee intosuchnewspace,providedthattheusableareaofsuchnewspaceisnotlessthantheusableareaofthePremisesandprovidedthatallof Lessee'sreasonableout-of-pocketmovingexpenses(includingbutnotlimitedtothecostofmovingLessee'spersonalproperty,thecostof reprinƟngLessee's staƟoneryorotherbusinessmaterialswiththenewaddress,andthecosttorelocateandreinstalltenantimprovementsand Lessee's telecommunicaƟonsandcomputerequipment)shallbepaidbyLessor,andprovidedfurtherthatLessorshallconstructatLessor'sexpense suchimprovementstosuchnewspaceasshallbenecessarytoplaceitina condiƟonthatissubstanƟallycomparabletothePremises. Exceptas providedintheimmediatelyprecedingsentence,Lessorshallhaveno obligaƟontoimprovesuchspaceorpayanyotherexpensesincurredby Lesseeasaresultofsuch relocaƟon. Onsuch relocaƟon,thetermsand condiƟonsofthisLeaseshallremaininfullforceand eﬀect,includingbut notlimitedtotheBaseRentpayablehereunderandLessee'sShare(eveniftheusableareaofsuchrelocatedPremisesisinexcessoftheusable areaofthePremises),exceptthatthePremisesshallbeinsuchnew locaƟon. UponLessor'srequest,the ParƟesshallexecuteanamendmentto thisLeaseinformrequiredbyLessor conﬁrmingthe relocaƟonofthePremisestosuchnew locaƟon. IfthenewspacedoesnotmeetwithLessee's approval,whichapprovalLesseeshallgiveor withholdinaccordancewithParagraph36,LesseeshallhavetherighttocancelthisLeasebygiving Lessor wriƩen noƟcethereofwithin15daysofreceiptofLessor's noƟﬁcaƟonofitsintenttorelocateLessee. Lessee'sfailuretogivesuch noƟce withinsuch15dayperiodshallbedeemedLessee'sapprovalofthenewspace. If Ɵmely noƟceisgivenbyLessee,thenthisLeaseshallterminate unlessLessorrescindsLessor'sprior noƟceofitsintenttorelocateLesseewithin10days aŌerLessor'sreceiptofLessee's noƟceof cancellaƟon.

43. PerformanceUnderProtest. Ifatany ƟmeadisputeshallariseastoanyamountorsumofmoneytobepaidbyonePartytotheotherunder theprovisionshereof,thePartyagainstwhomthe obligaƟontopaythemoneyisassertedshallhavetherighttomakepayment"underprotest"and suchpaymentshallnotberegardedasavoluntarypaymentandthereshallsurvivetherightonthepartofsaidPartyto insƟtutesuitforrecoveryof suchsum. Ifitshallbeadjudgedthattherewasnolegal obligaƟononthepartofsaidPartytopaysuchsumoranypartthereof,saidPartyshallbe enƟtledtorecoversuchsumorsomuchthereofasitwasnotlegallyrequiredtopay. APartywhodoesnot iniƟatesuitfortherecoveryofsums paid"underprotest"within6 monthsshallbedeemedtohavewaiveditsrighttoprotestsuchpayment.

44. Authority; MulƟple ParƟes; ExecuƟon.
(a) IfeitherPartyheretoisa corporaƟon,trust,limitedliabilitycompany,partnership,orsimilar enƟty,eachindividual execuƟngthis Leaseonbehalfofsuch enƟtyrepresentsandwarrantsthatheorsheisdulyauthorizedtoexecuteanddeliverthisLeaseonitsbehalf. EachParty shall,within30days aŌerrequest,delivertotheotherParty saƟsfactoryevidenceofsuchauthority. (b) IfthisLeaseisexecutedbymorethanonepersonor enƟtyas"Lessee",eachsuchpersonorenƟtyshallbejointlyandseverallyliable hereunder.It isagreedthatanyoneofthenamedLesseesshallbeempoweredtoexecuteanyamendmenttothisLease,orotherdocument ancillarytheretoandbindallofthenamedLessees,andLessormayrelyonthesameasif allofthenamedLesseeshadexecutedsuchdocument. (c) ThisLeasemaybeexecutedbythe ParƟesincounterparts,eachofwhichshallbedeemedanoriginalandallofwhichtogethershall consƟtuteoneandthesameinstrument.

45. Conﬂict. Any conﬂictbetweentheprintedprovisionsofthisLeaseandthe typewriƩenorhandwriƩenprovisionsshallbecontrolledbythe typewriƩenor handwriƩenprovisions.SeeParagraph67.

46. Oﬀer. PreparaƟonofthisLeasebyeitherpartyortheiragentandsubmissionofsametotheotherPartyshallnotbedeemedan oﬀertolease totheotherParty. ThisLeaseisnotintendedtobebinding unƟlexecutedanddeliveredbyallParƟeshereto.

47. Amendments. ThisLeasemaybe modiﬁedonlyin wriƟng,signedbythe ParƟesininterestatthe Ɵmeofthe modiﬁcaƟon. Aslongastheydo notmateriallychangeLessee's obligaƟonshereunder,Lesseeagreestomakesuchreasonablenon-monetary modiﬁcaƟonstothisLeaseasmaybe reasonablyrequiredbyaLenderin connecƟonwiththeobtainingofnormal ﬁnancingor reﬁnancingofthePremises.

48. WaiverofJuryTrial. THEPARTIESHEREBYWAIVETHEIRRESPECTIVERIGHTSTOTRIALBYJURYIN ANYACTIONORPROCEEDINGINVOLVING THEPROPERTYORARISINGOUTOFTHISAGREEMENT.

49. ArbitraƟonofDisputes. AnAddendumrequiringthe ArbitraƟonofalldisputesbetweentheParƟesand/orBrokersarisingoutofthisLease is isnot aƩachedtothisLease.

50. Accessibility;Americanswith DisabiliƟesAct.
(a) ThePremises:
havenotundergonean inspecƟonbya CerƟﬁedAccessSpecialist(CASp). Note:A CerƟﬁedAccessSpecialist(CASp)caninspectthesubject premisesanddeterminewhetherthesubjectpremisescomplywithalloftheapplicable construcƟon-relatedaccessibilitystandardsunderstate law.AlthoughstatelawdoesnotrequireaCASp inspecƟonofthesubjectpremises,thecommercialpropertyownerorlessormaynotprohibitthe lesseeortenantfromobtainingaCASp inspecƟonofthesubjectpremisesfortheoccupancyorpotenƟaloccupancyofthelesseeortenant,if requestedbythelesseeortenant.The parƟesshallmutuallyagreeonthearrangementsforthe ƟmeandmanneroftheCASp inspecƟon,the paymentofthefeefortheCASp inspecƟon,andthecostofmakinganyrepairsnecessarytocorrect violaƟonsof construcƟon-relatedaccessibility standardswithinthepremises.
haveundergonean inspecƟonbya CerƟﬁedAccessSpecialist(CASp)anditwasdeterminedthatthePremisesmetallapplicable construcƟon-relatedaccessibilitystandardspursuanttoCaliforniaCivilCode§55.51etseq. Lesseeacknowledgesthatitreceivedacopyofthe inspecƟonreportatleast48hourspriorto execuƟngthisLeaseandagreestokeepsuchreportconﬁdenƟal. haveundergonean inspecƟonbya CerƟﬁedAccessSpecialist(CASp)anditwasdeterminedthatthePremisesdidnotmeetallapplicable construcƟon-relatedaccessibilitystandardspursuanttoCaliforniaCivilCode§55.51etseq. Lesseeacknowledgesthatitreceivedacopyofthe inspecƟonreportatleast48hourspriorto execuƟngthisLeaseandagreestokeepsuchreportconﬁdenƟalexceptasnecessarytocompleterepairs and correcƟonsof violaƟonsof construcƟonrelatedaccessibilitystandards.

IntheeventthatthePremiseshavebeenissuedan inspecƟonreportbyaCASptheLessorshallprovideacopyofthedisabilityaccess inspecƟon cerƟﬁcatetoLesseewithin7 daysofthe execuƟonofthisLease. (b) SincecompliancewiththeAmericanswith DisabiliƟesAct(ADA)andotherstateandlocalaccessibilitystatutesaredependentupon Lessee's speciﬁcuseofthePremises,Lessormakesnowarrantyor representaƟonastowhetherornotthePremisescomplywithADAoranysimilar legislaƟon. IntheeventthatLessee'suseofthePremisesrequires modiﬁcaƟonsor addiƟonstothePremisesinordertobeincompliancewithADA orotheraccessibilitystatutes,Lesseeagreestomakeanysuchnecessary modiﬁcaƟonsand/oraddiƟonsatLessee'sexpense.

LESSORANDLESSEEHAVECAREFULLYREADANDREVIEWEDTHISLEASEANDEACHTERMANDPROVISIONCONTAINEDHEREIN,ANDBYTHE EXECUTIONOFTHISLEASESHOWTHEIRINFORMEDANDVOLUNTARYCONSENTTHERETO. THEPARTIESHEREBYAGREETHAT,ATTHETIMETHIS

LEASEISEXECUTED,THETERMSOFTHISLEASEARECOMMERCIALLYREASONABLEANDEFFECTUATETHEINTENTANDPURPOSEOFLESSORAND LESSEEWITHRESPECTTOTHEPREMISES.

ATTENTION:NOREPRESENTATIONORRECOMMENDATIONISMADEBYAIRCREORBYANYBROKERASTOTHELEGALSUFFICIENCY,LEGAL EFFECT,ORTAXCONSEQUENCESOFTHISLEASEORTHETRANSACTIONTOWHICHITRELATES. THEPARTIESAREURGEDTO:

1. SEEKADVICEOFCOUNSELASTOTHELEGALANDTAXCONSEQUENCESOFTHISLEASE.

2. RETAINAPPROPRIATECONSULTANTSTOREVIEWANDINVESTIGATETHECONDITIONOFTHEPREMISES. SAIDINVESTIGATIONSHOULD INCLUDEBUTNOTBELIMITEDTO:THEPOSSIBLEPRESENCEOFHAZARDOUSSUBSTANCES,THEZONINGOFTHEPREMISES,THESTRUCTURAL

INTEGRITY,THECONDITIONOFTHEROOFANDOPERATINGSYSTEMS,COMPLIANCEWITHTHEAMERICANSWITHDISABILITIESACTANDTHE SUITABILITYOFTHEPREMISESFORLESSEE'SINTENDEDUSE.

WARNING: IFTHEPREMISESARELOCATEDINASTATEOTHERTHANCALIFORNIA,CERTAINPROVISIONSOFTHELEASEMAYNEEDTOBEREVISED TOCOMPLYWITHTHELAWSOFTHESTATEINWHICHTHEPREMISESARELOCATED. [SIGNATURESONFOLLOWINGPAGE]
ThepparƟesheretohaveexecutedthisLeaseattheplaceandonthedates speciﬁedabovetheirrespecƟvesignatures.

Executedat: _____________________________
On: _____________ ,2023
ByLESSOR:

GoldenSpringCapitalLLC,aCalifornialimitedliabilitycompany By:

NamePrinted: ZhenyuXing,
Title: Manager
Phone:

Fax:

Email:

By:

NamePrinted:

Title:

Phone:

Fax:

Email:

Address: SeeParagraph71
FederalIDNo.:

Executedat: ________________________
On: ___________ ,2023
ByLESSEE:

CityofMurrieta,amunicipalcorporation
By:

NamePrinted: KimSummers
Title: CityManager
Phone:

Fax:

Email:

By:

ATTESTED:

NamePrinted: CristalMcDonald
Title: CityClerk
Phone:

Fax:

Email:

Address: SeeParagraph71
FederalIDNo.:

APPROVEDASTOFORM:

ALESHIRE&WYNDER,LLP
By:_________________________________
TiffanyIsrael,CityAttorney
BROKER
HarvestRealtyDevelopmentInc.

AƩn: KeXiao/JessicaZhang
Title:

Address: SeeParagraph70
Phone:

Fax:

Email:

FederalIDNo.:

BrokerDRELicense#: 01964500
AgentDRELicense#: 02072888/01986201
BROKER
Cushman& WakeϐieldofCalifornia,Inc.

AƩn: JohnGallivan
Title:

Address: SeeParagraph70
Phone:

Fax:

Email:

FederalIDNo.:

BrokerDRELicense#: 00616335
AgentDRELicense#: 01096309
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.

RENTADJUSTMENT(S)
(ORIGINALTERM)

I. ConsumerPriceIndex.
a. ThemonthlyBaseRentshallbeincreasedon andevery months thereaŌerduringtheOriginalTerm("CPIIncreaseDate(s)") commensuratewiththeincreaseintheCPI(asherein deﬁned)determinedasfollows: themonthlyBaseRentscheduledforthe ﬁrstmonthofthe OriginalTermshallbe mulƟpliedbya fracƟonthedenominatorofwhichistheBaseCPI(asherein deﬁned),andthenumeratorofwhichisthe ComparisonCPI(asherein deﬁned). Theamountsocalculatedshall consƟtutethenewBaseRentunƟlthenextCPIIncreaseDate,butinnoevent shallanysuchnewBaseRentbelessthantheBaseRentforthemonthimmediatelyprecedingtheapplicableCPIIncreaseDate. b. Theterm"CPI" shallmeantheConsumerPriceIndexoftheBureauofLabor StaƟsƟcsoftheU.S.DepartmentofLaborfor(select one): CPIW(UrbanWageEarnersandClericalWorkers)or CPIU(AllUrbanConsumers),for(ﬁllinUrbanArea): or theareainwhich thePremisesislocated,AllItems(1982-1984=100). Theterm"ComparisonCPI" shallmeantheCPIofthecalendarmonthwhichis2fullmonths priortotheapplicableOriginalTermCPIIncreaseDate. Theterm"BaseCPI"shallmeantheCPIofthecalendarmonthwhichis2fullmonthsprior totheCommencementDateoftheOriginalTerm.
c. Ifthe compilaƟonand/or publicaƟonoftheCPIistransferredtoanothergovernmentaldepartment,bureauoragencyoris disconƟnued,theninsteadtheindexmostnearlythesameastheCPIshallbeusedtocalculatetheBaseRentincreaseshereunder.If the ParƟes cannotagreeonsuch alternaƟveindex,thenthe maƩershallbe submiƩedfordecisiontotheAmerican ArbitraƟon AssociaƟoninaccordancewith thethenrulesofsaid associaƟonandthedecisionofthearbitratorsshallbebindingupontheparƟes,withthecostofsuch arbitraƟonbeingpaid equallybythe ParƟes.

II. FixedPercentage. ThemonthlyBaseRentshallbeincreasedon andevery 12 months thereaŌerduringtheOriginalTerm ("PercentageIncreaseDate(s)")by three percent( 3.0 %)ofthemonthlyBaseRentscheduledtobepaidforthemonthimmediatelyprecedingthe applicablePercentageIncreaseDate.TheincreasesshalloccurontheanniversaryoftheRentCommencementDate.

III. FixedRentalAdjustment(s)("FRA").

ThemonthlyBaseRentshallbeincreasedtothefollowingamountsonthedatessetforthbelow:

On (ﬁllinFRAAdjustmentDate(s)): ThenewBaseRentshallbe:

BROKER'SFEE: ForeachadjustmentinBaseRent speciﬁedabove,theBrokersshallbepaidaBrokerageFeeinaccordancewithparagraph15ofthe

Leaseorifapplicable,paragraph9oftheSublease.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.

OPTION(S)TOEXTENDTERM

STANDARDLEASEADDENDUM
Dated: October__,2023
Byand Between
Lessor: GoldenSpringCapitalLLC,aCalifornialimitedliabilitycompany Lessee: CityofMurrieta,amunicipalcorporation
PropertyAddress: Unit B&C("Premises")whicharepartof24620JeffersonAve,Murrieta,CA92562 ("BuildingParcel")which containsabuildingwith8,404squarefeet("Building") )
(streetaddress,city,state,zip)
Paragraph: 52 OPTION(S)TOEXTENDTERM. Subjecttotheterms, condiƟonsandprovisionsofParagraph39,LessorgrantsLessee two(2) opƟon(s)toextendthetermoftheLease("Extension OpƟon(s)"),witheachExtension OpƟonbeingforatermof sixty (60) months,commencing whenthepriortermexpires("OpƟonTerm(s)"). InordertoexerciseanExtension OpƟon,Lesseemustgive wriƩen noƟceofsuch elecƟontoLessor andLessormustreceivesuch noƟceatleast nine(9)months butnotmorethan twelve(12) monthspriortothedatethattheapplicable OpƟon Termwouldcommence, Ɵmebeingoftheessence. If ƟmelyandpropernoƟﬁcaƟonoftheexerciseofanExtension OpƟonisnotgivenbyLessee and/orreceivedbyLessor,suchExtension OpƟonshall automaƟcallyexpire. Noticeofexerciseofanoptionshallbemadeconsistentwith Paragraph23.3.Exceptas speciﬁcally modiﬁed,theterms, condiƟonsandprovisionsoftheLeaseshallapplyduring OpƟonTermsbuttheamount ofRentduring OpƟonTermsshallbeestablishedbyusingthemethod(s)selectedbelow(checkmethod(s)tobeusedand ﬁllinappropriately):

I. ConsumerPriceIndex.
(a) Duringthe OpƟonTerm(s)whichstart(s)on ,themonthlyBaseRentshallbeincreasedon andevery months thereaŌerduring such OpƟonTerm(s)("OpƟonTermCPIIncreaseDate(s)")commensuratewiththeincreaseintheOpƟonTermCPI(asherein deﬁned)determined asfollows: themonthlyBaseRentscheduledforthemonthimmediatelyprecedingthe ﬁrstoccurring OpƟonTermCPIIncreaseDateshallbe mulƟpliedbya fracƟonthedenominatorofwhichisthe OpƟonTermBaseCPI(asherein deﬁned),andthenumeratorofwhichisthe OpƟonTerm ComparisonCPI(asherein deﬁned). Theamountsocalculatedshall consƟtutethenewBaseRentunƟlthenext OpƟonTermCPIIncreaseDate duringtheapplicable OpƟonTerm,butinnoeventshallanysuchnewBaseRentbelessthantheBaseRentforthemonthimmediatelypreceding theapplicableOpƟonTermCPIIncreaseDate.
(b) Theterm"OpƟonTermCPI"shallmeantheConsumerPriceIndexoftheBureauofLabor StaƟsƟcsoftheU.S.DepartmentofLaborfor (selectone): CPIW(UrbanWageEarnersandClericalWorkers)or CPIU(AllUrbanConsumers),for(ﬁllinUrbanArea): or theareain whichthePremisesislocated,AllItems(1982-1984=100). Theterm"OpƟonTermComparisonCPI" shallmeantheCPIofthecalendarmonth whichis2fullmonthspriortotheapplicableOpƟonTermCPIIncreaseDate. Theterm"OpƟonTermBaseCPI"shallmeantheCPIofthecalendar monthwhichis2fullmonthspriorto(selectone): CommencementDateoftheOriginalTerm, startoftheapplicable OpƟonTerm,or (ﬁll inmonth) .
(c) If compilaƟonand/or publicaƟonoftheCPIistransferredtoanothergovernmentaldepartment,bureauoragencyoris disconƟnued,then insteadtheindexmostnearlythesameastheCPIshallbeusedtocalculatetheBaseRentincreaseshereunder.Ifthe ParƟescannotagreeonsuch alternaƟveindex,thenthe maƩershallbe submiƩedfordecisiontotheAmericanArbitraƟonAssociaƟoninaccordancewiththethenrulesofsaid associaƟonandthedecisionofthearbitratorsshallbebindinguponthe parƟes,withthecostofsuch arbitraƟonbeingpaidequallybythe ParƟes.

II. FixedPercentage. Duringthe OpƟonTerm(s)whichstart(s)on ,themonthlyBaseRentshallbeincreasedon andevery months thereaŌerduringsuch OpƟonTerm(s)("OpƟonTermPercentageIncreaseDate(s)")by percent( %)ofthemonthlyBaseRent scheduledtobepaidforthemonthimmediatelyprecedingtheapplicable OpƟonTermPercentageIncreaseDate.

III. FairMarketValue.
(a) Duringthe OpƟonTerm(s)whichstart(s)on endofthethenexistingTerm ,theamountofRentshallbetheamountforecastedtobethe fairmarketrentalvalueofthePremisesduringsuch OpƟonTermestablishedpursuanttotheprocedures,terms, assumpƟonsand condiƟonsset forthherein("FairMarketValue");provided,however,regardlessofsuchFairMarketValue,BaseRentduringan OpƟonTermshallnotbelessthan theBaseRentscheduledasofwhenthepriortermexpires. StarƟngasofLessee'sexerciseoftheapplicableExtension OpƟon(butnotearlierthan six(6)monthsbeforestartoftheapplicable OpƟonTerm),the ParƟesshallforthirty(30)days("NegoƟaƟonPeriod") aƩempttoagreeuponthe FairMarketValue. If duringthe NegoƟaƟonPeriodthe ParƟesdonotagreeontheFairMarketValue,thentheFairMarketValueshallbe establishedpursuanttotheproceduressetforthherein,whichshallbebinding. (b) EachPartyshall,within ﬁŌeen(15)days aŌertheendofthe NegoƟaƟonPeriod,in wriƟngsubmittotheotherPartysuchParty's determinaƟonoftheFairMarketValue("SubmiƩedValue(s)"). Ifa Partyfailsto Ɵmelyprovidea SubmiƩedValue,thentheotherParty's SubmiƩed ValueshallbetheFairMarketValue. Ifboth ParƟes Ɵmelyprovide SubmiƩedValues,theneachPartyshall,within ﬁŌeen(15)daysaŌerboth ParƟeshaveexchanged SubmiƩedValues,in wriƟng noƟfytheotherPartyofsuchParty'sselectedvaluatorwhoshallmeetthe qualiﬁcaƟonsset

forthherein("AdvocateValuator(s)"). LessorandLesseemayselectanAdvocateValuatorwhoisfavorabletosuchParty's posiƟonandmay,prior toor aŌerappointmentofanAdvocateValuator,consultwithsuchParty'sAdvocateValuator. Ifa Partyfailsto Ɵmelyandproperlyprovide noƟce ofsuchParty'schosenAdvocateValuator,thentheotherParty's SubmiƩedValueshallbetheFairMarketValue. (c) Ifboth ParƟes ƟmelyandproperlydesignateAdvocateValuators,thensuchAdvocateValuatorsshall,within ﬁŌeen(15)daysaŌertheir selecƟon,chooseathird(3rd)neutralvaluatorwhoshallmeetthe qualiﬁcaƟonssetforthherein("NeutralValuator"). TheNeutralValuatorshallbe engagedjointlybyLessorandLessee. IfAdvocateValuatorsfailtoagreeuponand ƟmelyappointaNeutralValuator,thenthePresidentofAIRCRE shallappointsuchNeutralValuatorwithin ﬁŌeen(15)daysaŌerrequestbyeitherParty. IfthePresidentofAIRCREdoesnot Ɵmelyappointthe NeutralValuator,theneitherPartymay ﬁleanappropriatelegal acƟonforajudgewithcompetentjurisdicƟonoverthe ParƟestoappointthe NeutralValuator.
(d) TheAdvocateValuatorsandtheNeutralValuator("Valuator(s)")shallbedulylicensedrealestatebrokersorsalespersonsingoodstanding inthestateinwhichthePremisesislocated,shallhavebeen acƟveoverthe ﬁve(5)yearperiodbeforetheirappointmentintheleasingof properƟessimilartothePremiseswithinthegeneralrealestatemarketofthePremises. TheNeutralValuatorshall addiƟonallynotberelatedtoor aﬃliatedwitheitherPartyorAdvocateValuator,andshallnothavepreviouslyrepresentedina realestate transacƟona Partyoranyonerelatedto or aﬃliatedwitha Party. All maƩerstobedeterminedbytheValuatorsshallbedecidedbyamajorityvoteoftheValuators,witheachValuator havingone(1)vote. TheValuatorsmay,astheValuatorsdetermine,holdhearingsandrequirebriefs,includingmarketdataand addiƟonal informaƟon.
(e) Withinthirty(30)daysaŌer selecƟonoftheNeutralValuator,theValuatorsshall ﬁrstdeterminetheFairMarketValueestablishedby takingintoaccounttheterms, assumpƟonsand condiƟonssetforthherein("Valuators'MarketValue"),thendecidewhichParty's SubmiƩedValue iscloserinmonetaryamounttotheValuators'MarketValue("SelectedMarketValue"),thenprovidethe ParƟesa copyoftheValuators'Market Valueand ﬁnally noƟfythe ParƟesoftheSelectedMarketValue. TheSelectedMarketValueshallbetheFairMarketValue. TheValuatorsshall havenorighttodecideaSelectedMarketValuewhichisacompromiseto(or modiﬁcaƟonof) the SubmiƩedValues. ThedecisionoftheValuators shallbebindinguponthe ParƟes. ThePartywhose SubmiƩedValueisnottheSelectedMarketValueshall,withinten(10)daysaŌertheValuators decidetheSelectedMarketValue,paythefeesandcostsofallthree(3)Valuators. (f) IftheFairMarketValuehasnotbeenestablishedbeforethestartoftheapplicableOpƟonTerm,thenLesseeshall conƟnuetopayto Lessorrentintheamountpayableforthemonthimmediatelyprecedingthestartofsuch OpƟonTermandLessor'sacceptanceofsuchrentshall notwaive,adversely aﬀector prejudicethe ParƟes'righttocompleteestablishmentoftheFairMarketValueorLessor'srighttocollectthefull amountoftheFairMarketValueoncetheFairMarketValueisestablished. Lesseeshall,withinten (10)daysaŌerestablishmentoftheFairMarket Value,paytoLessorany deﬁciencyinrentthendueforthe OpƟonTerm. FollowingestablishmentofFairMarketValue,the ParƟesshall,withinten (10)daysaŌerrequestbyeitherParty,signanamendmenttothisLeaseto conﬁrmtheFairMarketValueandthe expiraƟondateofthisLease,but the ParƟes'failuretorequestortosignsuchanamendmentshallnot aﬀectestablishmentoftheFairMarketValueorextensionoftheLeaseterm. (g) TheValuators,indecidingtheValuators'MarketValue,shalltakeintoaccountrentrates,rentabatements,periodicrentincreases,real propertytaxes,insurancepremiumsandother operaƟngexpenses,tenantimprovementandotherapplicableallowances,buildingservices,length ofleasetermandotherfactorsprofessionalrealestatebrokersand/orappraiserscustomarilyconsiderindeterminingfairmarketrentofproperty inanarm'slength transacƟonbyready,willingandable parƟesforspaceofcomparable locaƟon,size,age, condiƟon,quality,parking,visibility, view,signageandaccessibilityif thePremisesweremarketedinanormalandcustomarymannerforareasonablelengthof Ɵmeontheopen markettobeleasedtoatenantwith ﬁnancialstrengthandcreditworthinesscomparabletoLesseeandguarantors(ifany)ofthisLease(asof Lessee'sexerciseoftheExtension OpƟon)foratermcomparabletothelengthoftheapplicableOpƟonTermandusedfortheAgreedUse(orother reasonablycomparableuses). TheValuators,indecidingtheValuators'MarketValue,shallnotconsiderasacomparable transacƟonanyofthe following: a sublease,leaseassignment,leaserenewalorextension;leasewithatenantthathasequity,isrelatedtoor aﬃliatedwiththelandlord; oraleaseofspacethatwassubjecttoa rightof ﬁrstrefusal,rightof ﬁrst oﬀer,expansion opƟonorotherencumbrances. TheValuators,indeciding theValuators'MarketValue,shallreducetheFairMarketValueonaccountof AlteraƟonsandimprovementsmadebyLesseetotheextentthecost thereofwaspaidsolelybyLessee(inexcessofanyapplicableimprovementallowance,abatedrentinlieuofimprovementallowanceorother consideraƟonprovidedbyLessorforLessee'simprovementofthePremises),shallnotreducetheFairMarketValueonaccountofanyrealestate brokeragecommissionsavingsbyLessor,andshallnotreducetheFairMarketValueonaccountofdeferredmaintenanceor repairofthePremises forwhichLesseewasresponsibleundertheLeasebutdidnotperform.

IV. FixedRentalAdjustment(s)("FRA").

ThemonthlyBaseRentshallbeincreasedtothefollowingamountsonthedatessetforthbelow:

On (ﬁllinFRAAdjustmentDate(s)): ThenewBaseRentshallbe:

V. ConƟnuaƟonofOriginalTermAdjustments.

ThemonthlyBaseRentduringthe OpƟonTerm(s)whichstart(s)on shallbeincreasedinaccordancewiththesameformulaprovidedinthe LeasetobeusedtocalculateincreasesintheBaseRentduringtheOriginalTermoftheLease.

BROKER'SFEE: ForeachadjustmentinBaseRent speciﬁedabove,theBrokersshallbepaida BrokerageFeeinaccordancewithparagraph15ofthe Leaseorifapplicable,paragraph9oftheSublease.

AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.

1 ____
____
Lessee Initials
____
____
Lessor Initials
FIRST ADDENDUM TO LEASE AGREEMENT DATED ______, 2023
Between Golden Spring Capital LLC and City of Murrieta
PARAGRAPHS 53-70

53. LEASE COMMENCEMENT DATE (Paragraph 1.3). The Term of the Lease shall commence on the last to occur of: (i ) the delivery of the Non -Disturbance Agreement (as defined in Paragraph 69) to Lessee, and _________, 2023 (“Lease Commencement Date” or “Commencement Date”) and expire six (6) years from the Rent Commencement Date (as defined in Paragraph 54). Upon receipt of Lessor’s Commencement Date Memorandum in the form attached as Exhibit A to this Addendum, Lessee shall return to Lessor an original executed copy within in ten (10) days.

54. R ENT COMMENCEMENT DATE. The Rent Commencement Date shall be the earlier of (i) the date Lessee opens for business to the public in the Premises, or (ii) One hundred twenty ( 120) days after the Lease Commencement Date (“Rent Commencement Date”).

55. CONDITION OF PREMISES.

55.1 REQUIRED IMPROVEMENTS. Prior to delivering the Premises to Lessee, Lessor shall make the following modifications to the Premises at Lessor’s sole cost and expense in accordance with Applicable Regulations:
• The Premises shall be fully demised separately from Unit A. • Water, gas and electricity shall be separately metered to the Premises. • The hot water piping shall be fully insulated.
• The electrical and water pipe systems need to be isolated from each other so as to not be touching.
• The water heater duct is to be modified so as to not go through the Premises or otherwise modified by installation of a rated assembly to protect the Premises from the possibility of CO2 from seeping into the Premises.
• The water heater must be modified to only serve the Premises. If it serves the entire Building, then Lessor must be responsible for maintaining the water heater as well as all costs incurred in running it.

55.2 AS-IS. Lessee acknowledges that the Premises are being leased in an "as-is" condition, and, except as specified in Paragraphs 2.2, 2.3, 55.1, 63 and 64, Lessor makes no representations or warranties regarding the suitability, condition, or compliance of the Premises for Lessee's intended use except that Lessor has no actual knowledge that the Premises are not suitable for Lessee’s use. Lessee acknowledges that it shall be responsible to construct all Tenant Improvements pursuant to Paragraph 58 including any requirements applicable to the Tenant Improvements to comply with Applicable Regulations or Lessee’s specific use. Possession of the Premises shall be delivered to Lessee free of all third parties or persons.

56. UTILITIES: Electricity, gas and water shall be separately metered to the Premises. Lessee shall pay the costs of electricity for the Premises directly to the electric company. HVAC is governed by Paragraph 69. Lessee shall pay to Lessor the amount of gas and water charges based on the meter readings which shall be provided to Lessee with the specific bill for same. Lessee may install its own trash bin in the trash area. Trash services shall be provided directly to Lessee which, as the City, is exempt under the charges under the City’s service contract with the contractor.

57. SIGNAGE: To the extent permitted by the CC&Rs, Lessee shall be entitled to place one panel on the Kalmia Street monument sign at the entrance of the Shopping Center without any compensation to Lessor (“Monument Sign”). Lessee shall be entitled to place one panel on the other monument signs as requested by Lessee. Lessor shall cooperate with obtaining any approvals pursuant to the CC&Rs.

Lessee shall have the right to install signs on the Building (“Building Signs”) but shall bear all costs associated with the designing, manufacturing, installation, maintenance, repair and removal of any signage displayed on

2 ____
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Lessee Initials
____
____
Lessor Initials
or in relation to the Premises and any necessary permits or governmental approvals required for the Building Signs and in compliance with the CC&Rs. Lessee shall engage a licensed and reputable sign contractor to perform the necessary tasks related to the Building Signs. Lessee shall obtain written approval from Lessor for the proposed Building Sign design and contractor before proceeding with any work which approval shall not be unreasonably withheld, conditioned or delayed. Lessee shall be solely responsi ble for ensuring that the Building Signs comply with all applicable laws, regulations, and Building codes. Lessee shall obtain any required permits or authorizations from the appropriate governmental authorities and provide copies of such permits to Lessor upon request. Lessee shall, at its sole cost and expense, maintain the Building Signs in good condition throughout the Lease Term including, regular cleaning, repair, and replacement of any damaged or non - functional parts. Lessee shall promptly address an y maintenance issues that may affect the Building Sign's appearance or functionality. Upon prior written notice, Lessor shall have the right to inspect the Building Signs at any reasonable time during Lessee’s normal business hours to ensure compliance wi th this Paragraph. If Lessor determines that the Building Signs are not being properly maintained or is in violation of any applicable laws or regulations, Lessee shall, upon receipt of written notice from Lessor, remedy the situation promptly at their own expense. Any alterations, modifications, or additions to a Building Sign shall be subject to the prior written approval of Lessor which shall not be unreasonably withheld, conditioned or delayed. The obligations under this Paragraph shall survive expiration or termination of the Lease.

58. TENANT IMPROVEMENTS. Lessee shall have the right to make improvements or alterations to the Premises as Lessee elects in its sole discretion which include, but not limited to, demolition of pony walls at the entrance, conversion of a restroom to a convenience room, etc. (“ Tenant Improvements”) at Lessee’s sole cost and expense subject, however, to the Lessee Improvement Allowance (as defined in Paragraph 59).

Lessor shall have no responsibility or liability for the design, construction, quality or compliance of any Lessee Improvements with Applicable Regulations. Lessee shall obtain all necessary permits, licenses, approvals, and inspections as required by Applicable Regulations. All Lessee Improvements shall be completed by Lessee using contractors properly California licensed, bonded, and insured $1,000,000 workers compensation, $2,000,000 general liability, and $1,000,000 vehicle liability in the State of California.

59. TENANT IMPROVEMENT ALLOWANCE. Lessor shall reimburse to Lessee the sum of Twelve Thousand One Hundred Seventy Dollars ($12,170) for the Lessee Improvements (“Tenant Improvement Allowance”). Lessor shall pay the Lessee Improvement Allowance to Lessee within twenty (20) days from the last to occur of the following: (i) expiration of all applicable lien periods; (ii) Lessor’s receipt of proofs of payment evidencing all costs paid by Lessee; and (iii) a final unconditional lien release from Lessee’s general contractor.

If the Lease terminates prior to the end of the Term as a result of breach by Lessee , then the unamortized portion of such Lessee Improvement Allowance (amortized on a straight-line basis over the initial six (6) year term) shall be repaid by Lessee to Lessor.

60. RIGHT OF FIRST OFFER. Lessee’s space requirements may continue to increase. In order to accommodate such growth, Lessee shall have a right of first offer to expand into the balance of the space in the Building (“Expansion Space”) as and when it becomes available during the Lease Term. As of the Effective Date, Lessor represents and warrants to Lessee that (i) the existing lease for the Expansion Space will terminate on or before ____, 20__ and the existing lessee of the space has no options to extend that lease and (ii) no third party has any rights to the Expansion Space. As of the Effective Date, Lessor covenants that it will not grant to the current lessee nor any third party any rights with respect to the Expansion Space.

When Expansion Space becomes available for lease, Lessor will give Lessee written notice (“ROFO Notice”) of that availability and the terms and conditions on which Lessor is willing to lease the Expansion Space to Lessee, which terms and conditions will be the then-prevailing market terms and conditions for the Expansion Space.

The ROFO Notice must state the actual or estimated availability date of the Expansion Space. Lessee has the right, within thirty (30) days following receipt of the ROFO Notice, to elect, by written notice to Lessor, to lease the Expansion Space on the terms and conditions contained in the ROFO Notice (“Election to Lease Notice”).

If Lessee provides the Election to Lease Notice in the time and manner specified, Lessor and Lessee will enter into an amendment to this Lease within thirty (30) days after delivery of such notice, documenting and

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incorporating into this Lease the terms and conditions contained in the ROFO Notice.

If Lessee fails to deliver the Election to Lease Notice in the time and manner specified, then Lessee will be deemed to have elected not to lease the Expansion Space and Lessor has ninety (90) days (“Pass Period”) to lease the Expansion Space to a third party upon the terms specified in the ROFO Notice. If Lessor does not execute a lease upon such terms for the Expansion Space with a third party within the Pass Period, the Expansion Space will be reoffered to Les see. If Lessor executes a lease for the Expa nsion Space with a third party during the Pass Period, all rights of Lessee with respect to that Expansion Space under this Paragraph will cease. If the Expansion Space becomes available for lease again at a future date, the provisions of this Paragraph will again be applicable.

61. COMMON AREA OPERATING EXPENSES. Lessee shall pay to Lessor, as Additional Rental, Lessee's Proportionate Share of the Common Area Operating Expenses (hereinafter referred to as " Operating Expenses") on the first day of each calendar month in accordance with an estimate of the annual Operating Expenses prepared by Lessor. Lessor's estimate of such expenses shall be delivered to Lessee within thirty (30) days after the Term Commencement Date and, thereafter, at least ten (10) days prior to the commencement of each calendar year of the Lease Term, provided that Lessor's failure, for any reason, to so deliver such estimates shall not in any way affect Lessor's right to collect Lessee's Proportionate Share of Operating Expenses. Lessee shall pay, monthly in advance, one-twelfth (1/12th) of Lessor's estimate of such amounts as Additional Rental. If, for any reason, Lessor is unable to provide to Lessee the estimate of any of such charges at least ten (10) days prior to the commencement of any calendar year, then Lessee shall continue to pay monthly the same amount of such charges as was applicable for the previous month until thirty (30) days after receipt of such estimate, at which time, Lessee shall commence paying as of the first day of the calendar month after delivery of such new estimate, the new estimated amounts and the difference between the previous charges and the new estimated amounts. An annual adjustment based on actual Operating Expenses shall be made by Lessor within ninety (90) days following the close of each calendar year and either a refund to Lessee or an additional payment by Lessee, as applicable, shall be made within thirty (30) days after such annual adjustment. In the event of any dispute with respect to the amount of Operating Expenses or Lessee's Proportionate Share thereof, certification of such amount by Lessor's accountant shall be conclusive upon Lessee. Lessor may direct Lessee to pay all or any portion of the Operating Expenses directly to a maintenance director, property manager or similar person or entity in accordance with payment procedures deemed appropriate by Lessor. Any installment of Addi tional Rental payable for any portion of a calendar month or Lease Year shall be a pro rata portion of the installment payment for a full calendar month or Lease Year, based upon a thirty (30) day month. Lessee's Proportionate Share of Operating Expenses shall constituted Additional Rent.

62. REAL ESTATE TAXES. Lessor will cooperate with Lessee and do all acts reasonably necessary and appropriate to secure and maintain the property tax exemption of the Premises pursuant to Article XIII, Section 3 of the California Constitution. Lessor will either pay to Lessee the amoun t of any reduction or refund of property taxes resulting from such exemption or credit such amount against the Base Rent payable hereunder, as soon as possible after Lessor receives the benefit of the tax exemption. If such exemption is granted for a fiscal year which is, in whole or in part, after the date of expiration or earlier termination of the Lease Term, then, with respect to that portion of such fiscal year which is after the Lease Term, Lessor will pay to Lessee the amount of such reduction or refund of property taxes in cash or immediately available funds. If required by the County to qualify for the tax exemption, the Parties shall execute and acknowledge a memorandum of lease to be recorded in the official records of the County.

63. MOLD DISCLOSURE. With respect to the Toxic Mold Protection Act of 2001 (California Health & Safety Code Paragraphs 26100, et seq., as amended from time to time, "Mold Act "), to the best of Lessor's actual knowledge without inquiry or investigation of any kind, as of the Lease Commencement Date, there is no mold (as defined in the Mold Act; "Mold") in or on the Shopping Center and/or the Premises, visible, invisible and/or hidden that affects the improvements thereon, that exceeds the exposure limits established by the Mold Act or that poses a health threat prohibited by the Mold Act. If, at any time during the Term, Lessee knows, or with the exercise of reasonable diligence could ascertain that Mold is present in or on the Premises; the Building of which t he Premises are a part; the heating, ventilation and air conditioning systems that service

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the Premises; or in an appurtenant structure; and/or that there is a condition of chronic water intrusion or flood, in each case, within two (2) business days after Lessee knows or with the exercise of reasonable diligence should know of such condition, Lessee shall notify Lessor in writing of such condition and Lessee immediately shall repair such condition. The remediation of any such condition shall be Lessee's responsibility provided that same were caused by the acts or negligence of Lessee. At all tim es during the Term, Lessee shall make the Premises available to Lessor, its agents and employees for appropriate assessment and/or remedial action upon prior reasonable notice.

64. HAZARDOUS MATERIALS. Notwithstanding anything to the contrary in Paragraph 6.2, to the best of Lessor’s knowledge as of the Lease Commencement Date, Lessor represents and warrants to Lessee that the Premises and Building are not in violation of any federal, state or local law, ordinance or regulation relating to the presence of hazardous materials.

65. ASSIGNMENT AND SUBLETTING. Notwithstanding anything to the contrary in Paragraph 12, Lessee shall have the right to sublease or assign any portion of the Premises to another public entity without any profit sharing or Lessor’s consent. Lessee shall have the right to sublease or assign any portion of the Premises to a third party with Landlord’s written consent which shall not be unreasonably withheld, conditioned or delayed.

If Lessor fails to respond to such a request from Lessee within fifteen (15) days of Lessee’s request, Lessor shall be conclusively deemed to have consented to such sublease or assignment.

66. NON-DISTURBANCE AGREEMENT. Prior to the Lease Commencement Date, Lessor shall obtain and deliver to Lessee a non-disturbance agreement in a form satisfactory to Lessee from all lenders with a deed of trust on the Property (“Non-Disturbance Agreement”).

67. CONFLICT WITH LEASE. In the event that the provisions of this First Addendum conflict with the provisions in the Lease, the provisions in this First Addendum shall prevail.

68. HVAC SYSTEM. The HVAC for the Premises (“Premises HVAC”) only serves the Premises and no other portion of the Building. L essee shall have control over the Premises HVAC during the Term. As the electricity to the Premises is separately metered, Lessee shall not be subject to any after-hours charges. If such HVAC units or system requires major repairs and/or replacement during the Lease Term, Lessor shall be responsible for any such major repairs and/or replacement, which may be capitalized and amortized over the useful life of the capital item in accordance with GAAP and added to Common Area Operating Expenses pursuant to Paragraph __.

69. LESSOR DEFAULT: Paragraph 13.6(a) is amended to change 30 days to 10 days. Paragraph 13.6(b) is amended to change one (1) month’s rent to three (3) month’s rent and to allow Lessee to recover actual damages.

70. NOTICE. All notices to be provided to Lessor and Lessee as follows:

Lessor: City of Murrieta
1 Town Square
Murrieta, CA 92562
Attn: __________________

With copy to: City of Murrieta
1 Town Square
Murrieta, CA 92562
Attn: __________________

Lessee: Golden Spring Capital LLC
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Murrieta City CouncilMay 20, 2025

Murrieta City Council
May 20, 2025