Agenda packet — West Sacramento City Council, April 30, 2025 (part 1 of 4)

WEST SACRAMENTO CITY COUNCIL AND WEST SACRAMENTO REDEVELOPMENT SUCCESSOR

AGENCY & WEST SACRAMENTO FINANCING AUTHORITY
City Council Regular Meeting
APRIL 30, 2025 AGENDA
Martha Guerrero, Mayor
Verna Sulpizio Hull, Mayor Pro Tem
Quirina Orozco, Council Member
Norma Alcala, Council Member
Dawnté Early, Council Member
Aaron Laurel, City Manager
Jeffrey Mitchell, City Attorney
6:00 PM Closed Session Call to Order
7:00 PM Regular Meeting Call to Order
Pledge of Allegiance
Land Acknowledgment
The meeting will be held at City Hall, City Council Chambers, 1110 West Capitol Avenue, West Sacramento GENERAL ADMINISTRATION FUNCTION – PART I

1. PRESENTATIONS BY THE PUBLIC ON MATTERS NOT ON THE AGENDA WITHIN THE

JURISDICTION OF THE COUNCIL
The Council is prohibited from discussing issues not on the agenda brought to them at this time.

According to State Law (the Brown Act), items must first be noticed on the agenda before any discussion or action.

PRESENTATIONS

2. City Manager's Office
PROCLAMATION OF THE WEST SACRAMENTO CITY COUNCIL RECOGNIZING MAY 4, 2025

AS INTERNATIONAL FIREFIGHTERS' DAY
Objective: To recognize and honor the dedication, sacrifice, and service of firefighters in West Sacramento and around the world through the issuance of a City Council proclamation designating May 4, 2025, as International Firefighters’ Day.

Recommendation: Staff respectfully recommend that the City Council adopt the attached proclamation recognizing May 4, 2025, as International Firefighters’ Day in West Sacramento.

3. City Manager's Office
Anyone wishing to address the Council, or any agenda item, may fill out the Request to Speak card and present it to the City Clerk prior to the completion of staff presentation. Items on the Consent Agenda will be considered in one motion and the Request to Speak card should be turned in prior to the first item on Consent.
1 CONSIDERATION OF A PROCLAMATION RECOGNIZING MAY 2025 AS “MAY IS BIKE MONTH”

IN THE CITY OF WEST SACRAMENTO
Objective: The purpose of this report is to facilitate City Council consideration of a proclamation recognizing the month of May 2025 as “May is Bike Month.” Recommendation: Staff respectfully recommends that the City Council adopt the attached proclamation declaring May 2025 as “May is Bike Month”.

4. City Manager's Office
PROCLAMATION OF THE WEST SACRAMENTO CITY COUNCIL RECOGNIZING MAY 1, 2025

AS THE BIG DAY OF GIVING
Objective: The objective of this report is to facilitate City Council consideration of a proclamation supporting the regional non-profit awareness and donation program, the Big Day of Giving.

Recommendation: Staff respectfully recommends that the City Council adopt a proclamation recognizing May 1, 2025 as the Big Day of Giving in West Sacramento.

CONSENT AGENDA

5. Capital Projects

CONSIDERATION OF APPROVAL OF A COMMERCIAL LEASE AGREEMENT WITH CIVIL PACIFIC FOR 2286 DEL MONTE STREET
Objective: The objective of this report is to provide the City Council with sufficient information to consider approval of the commercial lease for 2286 Del Monte Street.

Recommendation: Staff respectfully recommends the City Council: 1) Approve the commercial lease with Civil Pacific for 2286 Del Monte Street; and 2) Authorize the City Manager, or his designee, to execute the commercial lease for 2286 Del Monte Street, in its final form, as approved by the City Attorney.

6. Capital Projects
CONSIDERATION OF APPROVAL OF SECURITY PAVING COMPANY INC. COMMERCIAL LEASE AT 2090 LOCKS DRIVE
Objective: The purpose of this report is to request approval of the commercial lease for 2090 Locks Drive
Recommendation: Staff respectfully recommends that the City Council: 1) Approve as to form, the Security Paving Company Inc. commercial lease; 2) Authorize the City Manager, or his designee, to execute the Security Paving Company, Inc. commercial lease, in its final form, as shall be approved by the City Attorney; and 3) Authorize the City Manager, or his designee, to execute nonsubstantive changes or modifications to the commercial lease with the approval from the City Attorney.
2 7. Capital Projects

CONSIDERATION OF REJECTION OF ALL BIDS FOR FENCE INSTALLATION, MAINTENANCE & REPAIR SERVICES PROJECT (24-066-ITB)
Objective: The objective of this report is to provide the City Council with sufficient information to reject all bids for the Fence Installation, Maintenance & Repair Services Project (24-066-ITB).

Recommendation: Staff respectfully recommends that the City Council: 1) Reject all bids for the Fence Installation, Maintenance & Repair Services Project (24-066-ITB); and 2) Authorize City Staff to revise the and rebid the Fence Installation, Maintenance & Repair Services Project.

8. Community Development
CONSIDERATION OF SECOND READING OF ORDINANCE 24-9 REGARDING PROPOSED AMENDMENTS TO TITLE 17 (ZONING) OF THE MUNICIPAL CODE TO ACCOMMODATE TINY

HOME ON WHEELS AS LEGAL DWELLINGS
Objective: The item is a second reading of Ordinance 24-9 regarding proposed amendments to Title 17 (Zoning) to accommodate Tiny Homes on Wheels (THoWs) as legal dwellings.

Recommendation: Staff respectfully recommends that the City Council: 1) Find that, pursuant to Section 15305 of the CEQA Guidelines, the amendments to Title 17 (Zoning) of the Municipal Code to accommodate Tiny Homes on Wheels (THoWs) as legal dwellingsare categorically exempt from the California Environmental Quality Act pursuant to Title 14, Article 19 of the California Code of Regulations. The project is considered exempt from CEQA pursuant to Section 15305 (a) Minor Alteration to Land Use Limitations because the project consists of adding a new allowable residential housing type which is considered a minor land use change; and 2) Waive the second reading and adopt of Ordinance 24-9 amending Title 17 (Zoning) of the Municipal Code to accommodate tiny homes on wheels as legal dwellings.

9. Community Development
CONSIDERATION OF SECOND READING AND ADOPTION OF ORDINANCE 25-6 REGARDING PROPOSED AMENDMENTS TO TITLE 17 (ZONING) OF THE MUNICIPAL CODE TO REVISE

PUBLIC NOTICING, ENGAGEMENT AND PARTICIPATION PROCEDURES IN THE REVIEW OF

LARGE DEVELOPMENT PROJECTS
Objective: This item is the second reading of an ordinance that would amend Title 17 (Zoning) of the Municipal Code to require enhanced public noticing, workshops, participation and awareness of certain large development projects that meet particular criteria.

Recommendation: Staff respectfully recommends that the City Council: 1) Find that the proposed ordinance amending Chapter 17.35 of the Municipal Code is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA Guidelines as there is no possibility the activity may have a significant effect on the environment; and 2) Waive the second reading and adopt of Ordinance 25-6 amending Chapter 17.35 of the Municipal Code to improve the public review process for large development projects. 3 10. Economic Development & Housing
CONSIDERATION OF RESOLUTION 25-50 AMENDING THE BOOK OF FEES TO AND UPDATE

THE URBAN INFILL IMPACT FEE REDUCTION PROGRAM TO INCLUDE SOUTHPORT

INDUSTRIAL PARK AND SEAWAY PROPERTIES
Objective: The objective of this report is to provide the City Council with information to consider adoption of Resolution 25-50 which adjusts the Book of Fees to include the Southport Industrial Park and Seaway properties in the Urban Infill Impact Fee Reduction Program.

Recommendation: Staff respectfully recommends that the City Council: 1) Adopt Resolution 25-50 (Attachment 1) approving an adjustment to the Book of Fees to include the Southport Industrial Park and Seaway properties in the current Urban Infill Impact Fee Reduction Program; and 2) Delegate certain authorities to implement the reforms to the City Manager and Finance Director.

11. Economic Development & Housing

CONSIDERATION OF AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES

PARTNERSHIP AGREEMENT AND RELATED ACTIONS FOR THE GRAND GATEWAY

AFFORDABLE HOUSING DEVELOPMENT AND SELECT ACTIVE TRANSPORTATION AND

TRANSIT IMPROVEMENTS
Objective: The objective of this report is to provide the City Council with information to consider approval of an Affordable Housing and Sustainable Communities (“AHSC”) Partnership Agreement and related actions to support the City’s AHSC grant application connected to the Grand Gateway affordable housing development and select active transportation and transit improvements.

Recommendation: Staff respectfully recommends that the City Council: 1) Approve an AHSC Partnership Agreement with E. Smith & Company (“ESC”) in substantially the form included as Attachment 1; 2) Approve an Amendment to the Grand Gateway Development Exclusive Negotiating Agreement in substantially the form included as Attachment 2; 3) Authorize the City Manager, or designee, to execute and deliver a Financing Commitment Letter to ESC pursuant to the AHSC Grant Program requirements for an estimated amount of $3,380,000 in substantially the form shown in Attachment 3; 4) Authorize the City Manager, or designee, to execute and deliver a Predevelopment Loan Agreement with ESC in the amount of $50,000 based on the Term Sheet in Attachment 4; 5) Approve Resolution 25-50, included as Attachment 5, authorizing the transfer of $3,412,000 from Measure V (Fund 109) to various bicycle, pedestrian, and bus shelter capital improvement projects (CIP-14057, CIP-14056, CIP-16013, CIP-01349) to serve as gap funding required by the AHSC grant program, an appropriation of $100,000 from the Affordable Housing Trust Fund (Fund 261) to support affordable housing services related to the AHSC affordable housing development, and an appropriation of $50,000 to execute and deliver a Predevelopment Loan Agreement with ESC; and 6) Authorize the City Manager, or designee, to take any other actions necessary to facilitate the City and ESC’s efforts to apply for the AHSC grant application.

12. City Manager's Office

CONSIDERATION OF THE TERMS OF SUCCESSOR AGREEMENT AND ADOPTION OF THE

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF WEST SACRAMENTO AND 4 THE WEST SACRAMENTO POLICE OFFICER’S ASSOCIATION AND ADOPTION OF RESOLUTION 25-54 APPROVING AMENDMENTS TO THE BUDGET FOR FISCAL YEAR 2024/25
Objective: The purpose of this report is to seek City Council consideration of a three-year (3) year successor Memorandum of Understanding (MOU) between the City of West Sacramento and the West Sacramento Police Officer’s Association (POA) and Resolution 25-54, approving related budget amendments.

Recommendation: Staff respectfully recommends that the City Council: (1) Approve the terms of the successor agreement and adopt the Memorandum of Understanding between the City of West Sacramento and the West Sacramento Police Officer’s Association effective January 1, 2025, through December 31, 2027; (2) Approve the updated Classification Plan (Salary Schedule), Benefits Summary and Memorandum of Understanding (MOU); and (3) Adopt Resolution 25-54 approving amendments to the approved biennial budget for Fiscal Year 2024/25 to fund the proposed salary and benefit changes.

13. City Manager's Office

CONSIDERATION OF UPDATES TO PUBLICLY AVAILABLE PAY SCHEDULE, UPDATE AND

APPROVALS OF JOB DESCRIPTIONS AND AUTHORIZED POSITON LIST FOR FISCAL YEAR 2024/2025
Objective: The purpose of this report is to seek City Council approval for proposed amendments and adoption of various job descriptions; updates to the publicly available pay schedule FY24/25 and Authorized Position List for FY24/25.

Recommendation: Staff respectfully recommends that the City Council: (1) Approve the amended and updated publicly available pay schedule (Classification Plan) for Fiscal Year 2024/25; (2) Approve the amended and updated Authorized Position List (APL) for Fiscal Year 2024/25; (3) Approve the amended and updated Extra Help/Special Events Police Officer Job Description; (4) Approve the amended and updated Police Services Coordinator Job Description; and (5) Approve the Roads Maintenance Supervisor Job Description

REGULAR AGENDA

14. Economic Development & Housing

CONSIDERATION OF APPROVAL OF PURCHASE, SALE AND DEVELOPMENT AGREEMENT

WITH RAM COR DEV LLC FOR DEVELOPMENT AND USE OF THE CLUB PHEASANT

PROPERTY
Objective: The objective of this report is to provide the City Council with sufficient information to consider approval of a Purchase, Sale and Development Agreement with Ram Cor Dev LLC for development and use of the Club Pheasant property.

Recommendation: Staff respectfully recommends that the City Council: 1) Find that the proposed project included in the Purchase, Sale and Development Agreement is exempt from California Environmental Quality Act (CEQA) analysis under the Class 32 (Infill Development Projects) 5 Categorical Exemption, under California Code of Regulations, Title 14, Division 6, Chapter 3, Section 15332 and that the Exemption reflects the independent judgment of the City as lead agency under CEQA; and 2) Authorize the City Manager or his designee to execute a Purchase, Sale and Development Agreement with Ram Cor Dev LLC for development and use of the Club Pheasant property consistent with the business terms presented in this report.

PUBLIC HEARINGS

15. Community Development

PUBLIC HEARING REGARDING PROPOSED LIBERTY SPECIFIC PLAN AND RELATED LAND

USE APPROVALS
Objective: The purpose of this item is to facilitate the City Council’s review of the proposed Liberty Project, including the Specific Plan, Liberty Development Agreement (DA), and related General Plan and Zoning amendments. On January 30, 2025, the Planning Commission held a public hearing regarding the proposed Liberty project. Following the public hearing, the Planning Commission voted unanimously to adopt Resolution 25-1PC certifying the final Environmental Impact Report (EIR), and Resolution 25-3PC approving the Vesting Tentative Subdivision Map with revisions (conditioned on City Council approval of the actions recommended in Resolution 25-3PC). The Planning Commission also adopted Resolution 25-2PC recommending that the City Council approve: i) Ordinance 25-2 adopting the Liberty Specific Plan with revisions proposed by the applicant in January 2025; ii) Ordinance 25-3 amending the Zoning Code, Zoning Map, and Southport Framework Plan; iii) Resolution 25-18 amending the General Plan 2035; and iv) Ordinance 25-4 approving the Liberty Development Agreement. On March 5, 2025, the City denied an appeal of the Planning Commission’s approvals of Resolution 25-1PC and 25-3PC.

Recommendation: Staff respectfully recommends that the City Council take the following actions:
1) Conduct the public hearing; 2) Find that the Liberty Specific Plan, the proposed amendments to the General Plan, Zoning Code, and the Southport Framework Plan for the Liberty Project, and the Liberty Development Agreement, are consistent with the California Environmental Quality Act (CEQA) based on the Environmental Impact Report (EIR) prepared for the Project and certified and adopted on January 30, 2025 (SCL No. 2016052012); 3) Conduct the first reading of Ordinance 25-2 (Attachment 5), by title and number only, adopting the Liberty Specific Plan with revisions proposed by the Applicant in January 2025/Incorporated Settlement Agreement Terms (Attachment 6); 4) Conduct the first reading of Ordinance 25-3 (Attachment 6), by title and number only, amending the Zoning Code, Zoning Map, and Southport Framework Plan; 5) Adopt Resolution 25-18 (Attachment 7) amending the General Plan 2035; and 6) Conduct the first reading of Ordinance 25-4 (Attachment 9), by title and number only, approving a Development Agreement.

16. Fire

PUBLIC HEARING TO CONSIDER OBJECTIONS TO THE PROPOSED REMOVAL OF WEEDS Objective: The purpose of this hearing is to consider the objections of any parcel owner with respect to being included in the weed abatement program. Property owners have the option of voluntarily clearing the lots themselves prior to May 10, 2025, to avoid the special assessment tax against the parcel(s).
6 Recommendation: Staff respectfully recommends that the City Council conduct the public hearing to consider objections to the proposed removal of weeds and direct staff to proceed with the 2025 weed abatement program.

REGULAR AGENDA

17. Parks & Recreation
CONSIDERATION OF APPROVAL OF RESOLUTION 25-42 UPDATING THE CITY OF WEST

SACRAMENTO BOOK OF FEES FOR WATERFRONT ACTIVITIES
Objective: The objective of this report is to provide the City Council with information to consider adoption of Resolution 25-42 which updates the Book of Fees for use of the Etenesh Zeleke Public Dock for waterfront activities.

Recommendation: Staff respectfully recommends that the City Council: 1) Adopt Resolution 25-42 (Attachment updates the Book of Fees for use of the Etenesh Zeleke Public Dock.

GENERAL ADMINISTRATION FUNCTION – PART II

18. COUNCIL COMMUNICATIONS / ASSIGNMENTS
Bikeshare Policy Steering Committee --------------------------------------------Guerrero, Alternate - Early City/County 2x2 ----------------------------------------------------Guerrero/Orozco, Alternate – Sulpizio Hull City/School 2x2 ------------------------------------------------------Guerrero/Sulpizio Hull, Alternate - Alcala Executive Commission to Address Homelessness --------------------Sulpizio Hull, Alternate - Orozco EIFD Public Financing Authority-----------------------------------------------Guerrero, Alcala, Sulpizio Hull League of California Cities --------------------------------------------------- Alcala, Alternate – Sulpizio Hull Local Agency Formation Commission ---------------------------------------------------------------------- Alcala Port District Commission ---------------------------------------------------------Guerrero, Early, Sulpizio Hull Remote Access Network ------------------------------------------------------------------------------------Guerrero River City Regional Stadium Financing Authority------------------------------------------Guerrero, Orozco Sacramento Area Council of Governments (SACOG) ------------------------Early; Alternate - Guerrero Sacramento Regional County Sanitation District Board --------------Orozco; Alternate - Sulpizio Hull West Sacramento Area Flood Control Agency JPA ----------------------------Alcala; Alternate - Orozco Yolo Animal Servies Planning Agency JPA----------------------------Guerrero; Alternate – Sulpizio Hull Yolo County Housing Authority-------------------------------------------------Early, Alternate - Sulpizio Hull Yolo Transportation District -----------------------------------------------------Early, Alternate - Sulpizio Hull Yolo Habitat Conservancy ------------------------------------------------------------------------------Sulpizio Hull Yolo-Solano Air Quality Management District ----------------------------Alcala; Alternate – Sulpizio Hull Yolo Subbasin Sustainable Groundwater Agency-------------------------Sulpizio Hull; Alternate - Early

COUNCIL INTERMEDIARY REPRESENTATIVES
Delta Protection Commission -------------------------------------------------------Vacant; Alternate - Vacant New Hope Community Development Corporation---------------------------------Early; Alternate - Alcala Yolo County Consolidated Redevelopment Successor Agency Oversight Board--------Sulpizio Hull

19. PART II
A. Council Calendar
7 B. City Manager Report
C. City Attorney Report
D. Staff Direction from City Council Members
E. Future Agenda Item Requests by Council
F. Adjourn
I, Jennifer Cusmir, City Clerk, declare under penalty of perjury that the foregoing agenda for the April 30, 2025 regular and closed session meetings of the West Sacramento City Council, Redevelopment Successor Agency and Financing Authority was posted April 25, 2025 at the rear entrance at City Hall, 1110 West Capitol Avenue, West Sacramento, CA and was available for public review. __________________________________________
Jennifer Cusmir, City Clerk
NOTE: If you challenge the nature of a proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing.

The agenda and agenda reports are also available on the City’s website at www.cityofwestsacramento.org City Council meetings are broadcast live on Wave Cable Channel 20 and rerun the next day at 12:00 PM and the following Saturday at 6:00 PM.

All public materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are also made available for public inspection on the City’s website at:
www.cityofwestsacramento.org. Any document provided at the meeting by staff or by the public will be provided by the City Clerk upon request by phone at (916) 617-4500, or by email at: [email protected].

If you need assistance to participate in this meeting, including translation support, please contact the City Clerk’s Office at 916-617-4500 or [email protected]. Notifying the City Clerk’s Office at least 72 hours prior to the meeting will assist staff in assuring reasonable arrangements can be made to provide accessibility to the meeting. Assisted listening devices are available at this meeting.

Si necesita ayuda para participar en esta reunión o servicios de traducción, comuníquese con la Oficina del Secretario Municipal al 916-617-4500 o [email protected]. Notificar a la Oficina del Secretario Municipal al menos 72 horas antes de la reunión ayudará al personal a garantizar que se puedan hacer arreglos razonables para proporcionar accesibilidad a la reunión.

Los dispositivos de escucha asistida están disponibles en esta reunión. 8 CITY COUNCIL AGENDA REPORT
MEETING DATE: April 30, 2025 ITEM # 2
SUBJECT:

PROCLAMATION OF THE WEST SACRAMENTO CITY COUNCIL RECOGNIZING MAY 4, 2025 AS INTERNATIONAL FIREFIGHTERS' DAY
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[X] Council [ ] Staff Paul Hosley, Public Information Officer City Manager’s Office
[ ] Other
ATTACHMENT [ ] Yes [ ] No [ X ] Information [ ] Direction [ ] Action

OBJECTIVE
To recognize and honor the dedication, sacrifice, and service of firefighters in West Sacramento and around the world through the issuance of a City Council proclamation designating May 4, 2025, as International Firefighters’ Day.

RECOMMENDED ACTION
Staff respectfully recommend that the City Council adopt the attached proclamation recognizing May 4, 2025, as International Firefighters’ Day in West Sacramento.

BACKGROUND
International Firefighters’ Day is observed annually on May 4 to honor the service, bravery, and sacrifice of firefighters worldwide. The date is recognized internationally as a day to express gratitude to those who serve their communities by protecting lives, property, and the environment.

This year we pause to dedicate this day in memory of West Sacramento Fire Engineer Tim Hall who served with distinction for 18 years. He passed away in line of duty during a training exercise in September of 2024, leaving behind a remarkable legacy of service.

The West Sacramento Fire Department exemplifies courage, professionalism, and dedication. Its members respond to emergencies, natural disasters, and medical incidents with skill and compassion. They regularly face risks in the line of duty and represent the highest ideals of public service.

ANALYSIS
Adopting this proclamation underscores the City’s appreciation for its fire service personnel and aligns with its ongoing commitment to public safety, community support, and civic recognition.

Environmental Considerations
N/A
Commission Recommendation
N/A
Strategic Plan Integration
This item supports the City’s goals of fostering public trust, recognizing essential public services, and promoting civic pride.

Alternatives
N/A
Coordination and Review
N/A
Budget/Cost Impact
N/A

ATTACHMENT
Proclamation Recognizing International Firefighters’ Day – May 4, 2025 9 PROCLAMATION

OF THE WEST SACRAMENTO CITY COUNCIL
RECOGNIZING MAY 4, 2025 AS INTERNATIONAL FIREFIGHTERS’ DAY WHEREAS, International Firefighters’ Day is observed annually on May 4th to recognize the sacrifice of firefighters around the world who dedicate their lives to the protection of life, property, and the environment; and
WHEREAS, the City of West Sacramento honors the memory of Fire Engineer Tim Hall, a beloved member of our local Fire Department who served with distinction for 18 years also as a firefighter, investigator, and volunteer, and who tragically passed away during a training exercise on September 23, 2024, leaving behind a legacy of service, courage, and deep commitment to his community; and WHEREAS, the men and women of the West Sacramento Fire Department exemplify valor in their service, responding to emergencies, natural disasters, and medical calls with skill and compassion, continuing to honor and carry with them those who have lost their lives in the line of duty; and
WHEREAS, the City of West Sacramento extends its deepest gratitude to the members of our fire service and their families, acknowledging their daily contributions to public safety and the well-being of our community.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of West Sacramento hereby recognizes May 4, 2025 as International Firefighters’ Day in West Sacramento and encourages all residents to express their appreciation to the firefighters who serve our city with honor and dedication.

PROCLAIMED this 30th day of April, 2025.

ATTEST:

Martha Guerrero, Mayor Jennifer Cusmir, City Clerk
10 CITY COUNCIL AGENDA REPORT
MEETING DATE: April 30, 2025 ITEM # 3
SUBJECT:

CONSIDERATION OF A PROCLAMATION RECOGNIZING MAY 2025 AS “MAY IS BIKE MONTH” IN THE CITY OF WEST SACRAMENTO
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ X ] Council [ ] Staff
[ ] Other
Paul Hosley, Public Information Officer
City Manager’s Office
ATTACHMENT [ X ] Yes [ ] No [ ] Information [ ] Direction [ X ] Action

OBJECTIVE
The purpose of this report is to facilitate City Council consideration of a proclamation recognizing the month of May 2025 as “May is Bike Month.”

RECOMMENDED ACTION
Staff respectfully recommends that the City Council adopt the attached proclamation declaring May 2025 as “May is Bike Month”.

BACKGROUND
The Sacramento Area Council of Governments encourages the use of bicycles throughout the region to improve health and wellness, reduce single-occupant vehicle trips, conserve energy, reduce Vehicle Miles Traveled, reduce local traffic congestion, and improve air quality by reducing Greenhouse Gas emissions. In support of those goals, the League of American Bicyclists promotes May as “National Bike Month”. In recent years, cyclists in the region have used the “May is Bike Month” website, www.mayisbikemonth.com, to log over 5,876,000 miles in over 363,000 separate rides. These trips saved over 384,000 pounds of CO2 and over 19,800 gallons of gasoline.

ANALYSIS
Local bicycle commute promotions have proven to be a successful means of raising awareness of local bicycle programs, bicycle safety, shared micro-mobility options including shared bikes, as well as local bicycle paths, routes and infrastructure that makes bicycle commuting possible.

This proposed proclamation seeks to increase awareness of bicycling, related regional amenities, and informational and promotional events. These include a wide range of informational gatherings and contests, several of which are centered in West Sacramento.

The regional kick-off event, BREATHE California’s Bike Festival, is scheduled for Saturday, May 3, in the Bridge District. An Energizer Station, offering commemorative bicycling-related items, will be located on West Capitol Avenue at City Hall on Regional Bike to Work Day (Thursday, May 15, 2025). Mileage Madness Week runs from May 11 to May 19 and concludes with the VeloRama party at West Sacramento’s own Bike Dog Brewing. More information about these and other events can be found on the “May is Bike Month” website:
www.mayisbikemonth.com.

Environmental Considerations
N/A
Commission Recommendation
N/A
Strategic Plan Integration
N/A
Alternatives
N/A
Coordination and Review
N/A
Budget/Cost Impact
Adoption of the recommended action will have no fiscal impact.

ATTACHMENT
“May is Bike Month” 2025 Proclamation 11

PROCLAMATION

OF THE WEST SACRAMENTO CITY COUNCIL
DECLARING MAY 2025 AS
“MAY IS BIKE MONTH”
WHEREAS, millions of Americans engage in bicycling because it is an effective form of exercise, a viable and environmentally sound mode of transportation, and a fun and sociable activity accessible to people of all ages, fitness levels, and incomes; and WHEREAS, more than half of commute trips, and three out of four shopping trips, are under five miles in length, which is ideal for bicycling; and WHEREAS, bicycle transportation is an essential part of the planned multi-modal transportation system funded by federal, state, regional, and local agencies to reduce greenhouse gas emissions, improve the livability of communities by reducing traffic noise and congestion, and boost public transit ridership by encouraging riders to traverse the “last mile” between stations and destinations; and
WHEREAS, the City of West Sacramento has completed key investments in support of bicycling, including the River Walk, the Washington District Sustainable Community Infrastructure Project, the Barge Canal Trail, West Capitol Avenue separated bike lanes, and Sycamore Trail Phase 1; and
WHEREAS, the City of West Sacramento is currently working toward several additional major investments in bicycling, including extending the Clarksburg Branch Line Trail from River City High School to Clarksburg, connecting Bryte to Southport through the remaining phases of the Sycamore Trail, including a freeway overpass, the I Street Bridge Deck Conversion for Active Transportation project, the Southport Levee Trail project, and the Port Area Infrastructure & Complete Streets Project; and
WHEREAS, commuting by bicycle can be a safe, enjoyable, efficient, and convenient way to start and end a workday; and
WHEREAS, local bicycle commute promotions—often referred to as “Bike to Work Days” and “Energizer Stations”—have successfully encouraged bicycle commuting; and WHEREAS, “May is Bike Month” helps to increase public awareness of bicycling, educates the community about the benefits of cycling for transportation, and encourages people to try commuting by bike.

NOW, THEREFORE, BE IT PROCLAIMED that the City Council of the City of West Sacramento does hereby recognize May 2025 as “May is Bike Month.” PROCLAIMED THIS 30th day of April 2025.

ATTEST:

Martha Guerrero, Mayor Jennifer Cusmir, City Clerk
12 CITY COUNCIL AGENDA REPORT
MEETING DATE: April 30, 2025 ITEM # 4
SUBJECT:

CONSIDERATION OF PROCLAMATION RECOGNIZING
MAY 1, 2025 AS THE BIG DAY OF GIVING IN WEST SACRAMENTO INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ X ] Council [ ] Staff Paul Hosley, Public Information Officer City Manager’s Office
[ ] Other
ATTACHMENT [ X ] Yes [ ] No [ ] Information [ ] Direction [ X ] Action

OBJECTIVE
The objective of this report is to facilitate City Council consideration of a proclamation supporting the regional non-profit awareness and donation program, the Big Day of Giving.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council adopt a proclamation recognizing May 1, 2025 as the Big Day of Giving in West Sacramento.

BACKGROUND
During the Big Day of Giving, a donation challenge will be held benefiting more than 700 regional non-profit agencies, over 100 of which are located in Yolo County. Participating non-profits serving West Sacramento include:
 Bryte and Broderick Community Action
Network, Inc.
 Center for Land Based Learning
 Creating Opportunities for Educational
Development (COED)
 Downtown Streets Team, West Sacramento
 Meals on Wheels Yolo County
 Mercy Coalition of West Sacramento
 NAMI Yolo County
 West Sacramento Friends of the Library
 Yolo County Children’s Alliance
 Yolo County SPCA
 Yolo Crisis Nursery
 Yolo Food Bank
The Big Day of Giving is hosted and organized by the Sacramento Region Community Foundation in partnership with the Yolo Community Foundation and its affiliates. Since its inception, the Big Day of Giving has helped over 60,000 donors raise more than $91 million for local non-profits in the greater Sacramento region.

ANALYSIS
On May 1, donors will be encouraged to visit www.bigdayofgiving.org and contribute to any participating nonprofit.

All online donations made during the Big Day of Giving will be boosted through matching funds, creating an excellent opportunity for residents to amplify the impact of their generosity.

Environmental Considerations
N/A
Commission Recommendation
N/A
Strategic Plan Integration
N/A
Alternatives
N/A
Coordination and Review
This report was prepared with support from the Yolo Community Foundation and the Sacramento Region Community Foundation.

Budget/Cost Impact
N/A

ATTACHMENT
2025 Big Day of Giving Proclamation
13 PROCLAMATION

OF THE WEST SACRAMENTO CITY COUNCIL
RECOGNIZING MAY 1, 2025, AS

THE BIG DAY OF GIVING
WHEREAS, the Sacramento Region Community Foundation, a trusted resource for contributing to local and regional organizations, will host the thirteenth annual giving day on May 1, 2025, in partnership with local and regional businesses and community leaders throughout the four-county Sacramento region to encourage charitable giving; and WHEREAS, over the past twelve years, more than 60,000 people in our region have donated on Big Day of Giving, raising nearly $91 million that local nonprofits have used to improve the quality of life in our region; and
WHEREAS, this year, over 820 nonprofits will participate in Big Day of Giving, eleven of which are located in the City of West Sacramento and serve its residents; and WHEREAS, Big Day of Giving is an opportunity for City of West Sacramento residents to show their community pride through supporting the good work of our local nonprofits; and WHEREAS, philanthropic investment helps hardworking nonprofits make an impact on the causes that affect us all and provides donors with a sense of ownership and pride in their community.

NOW, THEREFORE, the West Sacramento City Council does hereby proclaim May 1, 2025, as Big Day of Giving and encourages all residents to support the work of local nonprofit organizations who help the City of West Sacramento community thrive.

PROCLAIMED THIS 30th day of April 2025.

ATTEST:

Martha Guerrero, Mayor Jennifer Cusmir, City Clerk
14 CITY COUNCIL AGENDA REPORT
MEETING DATE: April 30, 2025 ITEM # 5
SUBJECT:

CONSIDERATION OF APPROVAL OF THE COMMERCIAL LEASE FOR
2286 DEL MONTE STREET
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Fred Arnold, Senior Program Manager
Capital Projects Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The objective of this report is to provide the City Council with sufficient information to consider approval of the commercial lease for 2286 Del Monte Street.

RECOMMENDED ACTION
Staff respectfully recommends the City Council:

1. Approve the commercial lease with Civil Pacific for 2286 Del Monte Street; and

2. Authorize the City Manager, or his designee, to execute the commercial lease for 2286 Del Monte Street, in its final form, as approved by the City Attorney.

BACKGROUND
In 2018, a letter was signed by the Superintendent of the Washington Unified School District (WUSD), acknowledging its intent to support the development of a recreation and reuse plan for the site at 1100 Clarendon Street. The plan would allow the City to construct and maintain recreation and park space and add the property to the current Joint Use Facilities Agreement between WUSD and the City, resulting in a new 26.5-acre park to be renovated and maintained by the City and open to the public.

The 2019 Parks, Recreation, and Open Space Master Plan noted that the City had a deficiency of 72 acres of developed parkland required to meet national and state standards for developed parks per 100 residents. Within the Master Plan, the 26.5-acre site at 1100 Clarendon Street—the former site of the old River City High School— was identified as a potential location for a new park.

Thereafter, City Parks & Recreation staff identified the 1.12-acre site at 2286 Del Monte Street, which is adjacent to 1100 Clarendon Street and was listed for sale. Staff identified a funding source for the $2,400,000 purchase price ahead of the expiration of the due diligence period on December 31, 2024. The City completed its due diligence and acquired the real property interests as required on or before December 31, 2024.

Since the City is not yet ready to convert the property to park and recreation use, staff has retained a commercial broker, The Vollman Company, to procure a tenant for interim occupancy of the premises.

ANALYSIS
Staff and the broker, The Vollman Company, have conducted a market analysis, marketed the premises, and negotiated a market-rate lease with the owner of Civil Pacific Engineering, Inc. Based on the condition of the property and the improvements needed, the pool of prospective tenants is significantly limited. It could take many months of zero revenue before the space is leased. Civil Pacific's willingness to accept the property as-is underscores the time-value-of-money consideration. To that end, the following assumptions have been made:

Market rents are approximately $1.00 - $1.20 per square foot . However, to make the cost and anticipated delays economically feasible for a prospective tenant, target rents would likely need to be approximately $.70 per square foot per month or $8,400 per month. After subtracting $1,200 per month for a tenant improvement (TI) allowance, the effective rent would be $7,200 per month. Each month of vacancy, therefore, represents a lost opportunity cost of $7,200 per month.
15 Consideration of Approval of the Commercial Lease for 2286 Del Monte Street April 30, 2025

Page 2 ends

The referenced commercial lease provides for lease of 12,000 square feet for a five-year term through March 31, 2030, with a rent credit for tenant improvements required during the first year of the lease term. Additionally, rent during the term of this lease is escalated at a 3% annual rate as follows:

Table 1: 2286 Del Monte Lease Summary
Year Period Monthly Rent
Year 1 April 1, 2025 to March 31, 2026 $0.00 per month
Year 2 April 1, 2026 to March 31, 2027 $7,725.00 per month Year 3 April 1, 2027 to March 31, 2028 $7,957.00 per month Year 4 April 1, 2028 to March 31, 2029 $8,195.00 per month Year 5 April 1, 2029 to March 31, 2030 $8,441.00 per month The commercial lease also provides two options to extend the term of the lease for an additional two years, each following the expiration date at 3% increases in rent. The tenant has agreed to the terms of the lease. The City will gain approximately $387,000 in earned revenue as a result of this lease agreement.

Environmental Considerations
N/A.

Commission Recommendation
N/A.

Strategic Plan Integration
N/A.

Alternatives
The Council’s primary alternatives are summarized below:
1) Approve the recommended actions as described above in this report. 2) Alter the recommended actions, or direct staff to alter the recommended actions. 3) Delay the recommended actions or forgo approval of the lease amendment.

Staff recommends the Council proceed with Alternative 1, as described in this report. The commercial lease is critical to the City in continuing essential operations and services.

Coordination and Review
The commercial lease was coordinated with staff from the City Manager’s Office, Economic Development & Housing Department, Parks & Recreation Department, Finance Department and Capital Projects Department and has been reviewed and approved by the City Attorney. The terms of the commercial lease were negotiated with the prospective tenant and the City’s real estate broker.

Budget/Cost Impact
Fees for a real estate broker to market, secure, and execute a tenant lease agreement for 2286 Del Monte Street were estimated not to exceed $35,000. No additional funding is necessary, as funding is available and appropriated in the Measure G Fund.

ATTACHMENTS

1. Commercial Lease for 2286 Del Monte Street

2. Vicinity Map
16 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 1 of 16

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE - NET (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1. Basic Provisions ("Basic Provisions").

1.1 Parties. This Lease ("Lease"), dated for reference purposes only April 30, 2025 , is made by and between City of West Sacramento ("Lessor") and Civil Pacific, Inc. ("Lessee"), (collectively the "Parties," or individually a "Party").

1.2 Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, commonly known as (street address, city,state, zip): 2286 Del Monte Street, West Sacramento, CA ("Premises"). The Premises are located in the County of Yolo , and are generally described as (describe briefly the nature of the property and , if applicable, the "Project," if the property is located within a Project): +/- 12,000rsf Light Industrial Building zoned M-1. APN: . (See also Paragraph 2)

1.3 Term: 5 years and 60 months ("Original Term") commencing Upon Lease Execution ("Commencement Date") and ending 60 months after lease execution ("Expiration Date"). (See also Paragraph 3)

1.4 Early Possession: If the Premises are available Lessee may have non-exclusive possession of the Premises commencing None ("Early Possession Date"). (See also Paragraphs 3.2 and 3.3)

1.5 Base Rent: $7,500.00 per month ("Base Rent"), payable on the 1st day of each month commencing 12 months after lease execution . (See also Paragraph 4)
If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph 52 .

1.6 Base Rent and Other Monies Paid Upon Execution:
(a) Base Rent: $0 for the period N/A .
(b) Security Deposit: $10,000.00 ("Security Deposit"). (See also Paragraph 5) (c) Association Fees: $0 for the period -- .
(d) Other: NNN for 1st Month occupancy .
(e) Total Due Upon Execution of this Lease: $10,000.00 + 1 Month NNN .

1.7 Agreed Use: Construction Warehouse and associated uses . (See also Paragraph 6)

1.8 Insuring Party. Lessor is the "Insuring Party" unless otherwise stated herein. (See also Paragraph 8)

1.9 Real Estate Brokers. (See also Paragraph 15 and 25) (a) Representation: Each Party acknowledges receiving a Disclosure Regarding Real Estate Agency Relationship, confirms and consents to the following agency relationships in this Lease with the following real estate brokers ("Broker(s)") and/or their agents ("Agent(s)"):

Lessor's Brokerage Firm MBS Realty dba The Vollman Company License No. 02091276 Is the broker of (check one):
the Lessor; or both the Lessee and Lessor (dual agent).

Lessor's Agent Dan Mincher, CCIM License No. 01703483 is (check one): the Lessor's Agent (salesperson or broker associate); or both the Lessee's Agent and the Lessor's Agent (dual agent).

Lessee's Brokerage Firm MBS Realty dba The Vollman Company License No. 02091276 Is the broker of (check one):
the Lessee; or both the Lessee and Lessor (dual agent).

Lessee's Agent Dan Mincher, CCIM License No. 01703483 is (check one): the Lessee's Agent (salesperson or broker associate); or both the Lessee's Agent and the Lessor's Agent (dual agent). (b) Payment to Brokers. Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of or % of the total Base Rent) for the brokerage services rendered by the Brokers.

1.10 Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by ("Guarantor"). (See also Paragraph 37)

1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease:
an Addendum consisting of Paragraphs through ;
a plot plan depicting the Premises;
a current set of the Rules and Regulations;
a Work Letter;
other (specify): .

2. Premises.

2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different. NOTE: Lessee is advised to verify the actual size prior to executing this Lease. 17 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 2 of 16

2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Date"), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"), loading doors, sump pumps, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be in good operating condition on said date, that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the "Building") shall be free of material defects, and that the Premises do not contain hazardous levels of any mold or fungi defined as toxic under applicable state or federal law. If a non-compliance with said warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor shall, as Lessor's sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other elements of the Building. If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense. Lessor also warrants, that unless otherwise specified in writing, Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

2.3 Compliance. Lessor warrants that to the best of its knowledge the improvements on the Premises comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements") that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building ("Capital Expenditure"), Lessor and Lessee shall allocate the cost of such work as follows:
(a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between the actual cost thereof and an amount equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure. (b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is due, an amount equal to 1/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor's share of such costs have been fully paid. If Lessee is unable to finance Lessor's share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.
(c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not, however, have any right to terminate this Lease.

2.4 Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee's intended use, (c) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor, (e) the square footage of the Premises was not material to Lessee's decision to lease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor's sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work.

3. Term.

3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

3.2 Early Possession. Any provision herein granting Lessee Early Possession of the Premises is subject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Date.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 3 of 16
failure affect the validity of this Lease or change the Expiration Date. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

3.4 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

4. Rent.

4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("Rent").

4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier's check. Payments will be applied first to accrued late charges and attorney's fees, second to accrued interest, then to Base Rent, Insurance and Real Property Taxes, and any remaining amount to any other outstanding charges or costs.

4.3 Association Fees. In addition to the Base Rent, Lessee shall pay to Lessor each month an amount equal to any owner's association or condominium fees levied or assessed against the Premises. Said monies shall be paid at the same time and in the same manner as the Base Rent.

5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee's faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor's reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor's reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED BY LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.

6. Use.

6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, and/or is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 4 of 16
the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit. (b) Duty to Inform Lessor. If Lessee knows, or hasreasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice ofsuch fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing orsanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmlessfrom and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys' and consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee). Lessee's obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created orsuffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time ofsuch agreement. (e) Lessor Indemnification. Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee's occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. (f) Investigations and Remediations. Lessorshall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable timesin order to carry out Lessor's investigative and remedial responsibilities. (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, assoon asreasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 timesthe then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence ofsuch Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date ofsuch notice. In the event Lessor electsto give a termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 timesthe then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds orsatisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation assoon asreasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination.

6.3 Lessee's Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessee'ssole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in any manner to the Premises, without regard to whether said Applicable Requirements are now in effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor's written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee's compliance with any Applicable Requirementsspecified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documentsinvolved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. In addition, Lessee shall provide copies of all relevant materialsafety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. In addition, Lessee shall provide Lessor with copies of its business license, certificate of occupancy and/or any similar document within 10 days of the receipt of a written request therefor.

6.4 Inspection; Compliance. Lessor and Lessor's "Lender" (as defined in Paragraph 30) and consultants authorized by Lessorshall have the right to enter into Premises at any time in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting and/or testing the condition of the Premises and/or for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1(e)) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant materialsafety data sheets(MSDS) to Lessor within 10 days of the receipt of a written request therefor. Lessee acknowledges that any failure on its part to allow such inspections or testing will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to allow such inspections and/or testing in a timely fashion the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for the remainder to the Lease. The Parties agree thatsuch increase in Base Rent represents fair and reasonable compensation for the additional risk/coststhat Lessor will incur by reason of Lessee'sfailure to allow such inspection and/or testing. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to such failure nor prevent the exercise of any of the other rights and remedies granted hereunder.

7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 5 of 16
(Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee'ssole expense, keep the Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), and Alterations in good order, condition and repair (whether or not the portion of the Premisesrequiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need forsuch repairs occurs as a result of Lessee's use, any prior use, the elements or the age ofsuch portion of the Premises), including, but not limited to, all equipment or facilities,such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems, floors, windows, doors, plate glass,skylights, landscaping, driveways, parking lots, fences, retaining walls,signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premisesin good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of othersimilar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building. (b) Service Contracts. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractorsspecializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, and (vi) clarifiers. However, Lessor reservesthe right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof. (c) Failure to Perform. If Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premisesin good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof. (d) Replacement. Subject to Lessee'sindemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessee'sfailure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease or any extension thereof, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (i.e. 1/144th of the cost per month). Lessee shall pay Interest on the unamortized balance but may prepay its obligation at any time.

7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It isthe intention of the Partiesthat the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises.

7.3 Utility Installations; Trade Fixtures; Alterations. (a) Definitions. The term "Utility Installations" refersto all floor and window coverings, air and/or vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises(excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems, do not trigger the requirement for additional modifications and/or improvements to the Premisesresulting from Applicable Requirements, such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessorshall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor. (c) Liens; Bonds. Lessee shall pay, when due, all claimsfor labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not lessthan 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessorshall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at itssole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessorshall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount ofsuch contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's attorneys' fees and costs.

7.4 Ownership; Removal; Surrender; and Restoration.
(a) Ownership. Subject to Lessor'sright to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises. (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. (c) Surrender; Restoration. Lessee shallsurrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfacesthereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing and the 21 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 6 of 16
provisions of Paragraph 7.1(a), if the Lessee occupies the Premisesfor 12 months or less, then Lessee shallsurrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee.

Lessee shall also completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) to the levelspecified in Applicable Requirements. Trade Fixturesshall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessorshall constitute a holdover under the provisions of Paragraph 26 below.

8. Insurance; Indemnity.

8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Paymentshall be made by Lessee to Lessor within 10 days following receipt of an invoice.

8.2 Liability Insurance.
(a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not lessthan $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad asthe Insurance Service Organization's "Additional Insured-Managers or Lessors of Premises" Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "insured contract" for the performance of Lessee's indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder.

Lessee shall provide an endorsement on its liability policy(ies) which provides that itsinsurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. (b) Carried by Lessor. Lessorshall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

8.3 Property Insurance - Building, Improvements and Rental Value. (a) Building and Improvements. Lessor The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, asthe same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such policy or policiesshall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises asthe result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver ofsubrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. Ifsuch insurance coverage has a deductible clause, the deductible amountshall not exceed $5,000 per occurrence, and Lessee shall be liable forsuch deductible amount in the event of an Insured Loss. (b) Rental Value. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss. (c) Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee's acts, omissions, use or occupancy of the Premises.

8.4 Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance. (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. (b) BusinessInterruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of accessto the Premises as a result ofsuch perils.
(c) Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by Applicable Requirements. Such policy shall include a 'Waiver of Subrogation' endorsement. Lessee shall provide Lessor with a copy of such endorsement along with the certificate of insurance or copy of the policy required by paragraph 8.5. (d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease.

8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII, asset forth in the most current issue of "Best'sInsurance Guide", orsuch other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidatesthe required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies ofsuch insurance or certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration ofsuch policies, furnish Lessor with evidence of renewals or "insurance binders" evidencing renewal thereof, or Lessor may increase hisliability insurance coverage and charge the cost thereof to Lessee, which amountshall be payable by Lessee to Lessor upon demand. Such policiesshall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same.

8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire 22 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 7 of 16
right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perilsrequired to be insured against herein. The effect of such releases and waiversis not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation thatsuch companies may have against Lessor or Lessee, as the case may be,so long as the insurance is not invalidated thereby.

8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or in connection with, a Breach of the Lease by Lessee and/or the use and/or occupancy of the Premises and/or Project by Lessee and/or by Lessee's employees, contractors or invitees. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessorshall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.

8.8 Exemption of Lessor and its Agentsfrom Liability. Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agentsshall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agentsto enforce the provisions of any other lease in the Project, or (iii) injury to Lessee's business or for any loss of income or profit therefrom.

Instead, it isintended that Lessee'ssole recourse in the event ofsuch damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8.

8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the required insurance, the Base Rentshall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee'sfailure to maintain the required insurance. Such increase in Base Rentshall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease.

9. Damage or Destruction.

9.1 Definitions.
(a) "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. (b) "Premises Total Destruction" shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or lessfrom the date of the damage or destruction. Lessorshall notify Lessee in writing within 30 days from the date of the damage or destruction asto whether or not the damage is Partial or Total. (c) "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.
(d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation.
(e) "Hazardous Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration.

9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessorshall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) assoon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basisfor that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee'sresponsibility) as and when required to complete said repairs. In the event, however,such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessorshall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receivessaid funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date ofsuch notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair ofsuch damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs assoon asreasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.

9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60 days following such 23 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 8 of 16
Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.

9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month's Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence ofsuch damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee'sreceipt of Lessor's written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially reasonable expense, repair such damage assoon asreasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee's option shall be extinguished.

9.6 Abatement of Rent; Lessee's Remedies.
(a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration ofsuch damage shall be abated in proportion to the degree to which Lessee's use of the Premises isimpaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein.
(b) Remedies. If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way,such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not lessthan 60 days following the giving ofsuch notice. If Lessee givessuch notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. "Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs.

9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.

10. Real Property Taxes.

10.1 Definition. As used herein, the term "Real Property Taxes" shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessor's right to other income therefrom, and/or Lessor's business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address. Real Property Taxesshall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to this Lease.

10.2 Payment of Taxes. In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real Property Tax installment due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to or after the expiration or termination of this Lease, Lessee'sshare of such installment shall be prorated. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require thatsuch taxes be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly paymentsshall be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount ofsuch equal monthly advance paymentsshall be adjusted asrequired to provide the funds needed to pay the applicable taxes. If the amount collected by Lessor isinsufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sum asis necessary. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit.

10.3 Joint Assessment. If the Premises are notseparately assessed, Lessee's liability shall be an equitable proportion of the Real Property Taxesfor all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor's work sheets orsuch other information as may be reasonably available.

10.4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor'sreal property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of a written statementsetting forth the taxes applicable to Lessee's property.

11. Utilities and Services.

11.1 Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and servicessupplied to the Premises, together with any taxesthereon. If any such services are not separately metered or billed to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility orservice due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor'sreasonable control or in cooperation with governmental request or directions.

11.2 Within fifteen days of Lessor's written request, Lessee agrees to deliver to Lessorsuch information, documents and/or authorization as Lessor needs in order for Lessor to comply with new or existing Applicable Requirements relating to commercial building energy usage, ratings, and/or the reporting thereof.

12. Assignment and Subletting.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 9 of 16
buyout or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth asit wasrepresented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "Net Worth of Lessee" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. (d) An assignment orsubletting without consentshall, at Lessor's option, be a Default curable after notice per Paragraph 13.1(d), or a non-curable Breach without the necessity of any notice and grace period. If Lessor electsto treatsuch unapproved assignment or subletting as a non-curable Breach, Lessor may either:
(i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.
(e) Lessee's remedy for any breach of Paragraph 12.1 by Lessorshall be limited to compensatory damages and/or injunctive relief. (f) Lessor may reasonably withhold consent to a proposed assignment orsubletting if Lessee is in Default at the time consent is requested. (g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, i.e. 20 square feet or less, to be used by a third party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting.

12.2 Terms and Conditions Applicable to Assignment and Subletting. (a) Regardless of Lessor's consent, no assignment orsubletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. (b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment.

Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor's right to exercise its remedies for Lessee's Default or Breach.
(c) Lessor's consent to any assignment orsubletting shall not constitute a consent to any subsequent assignment orsubletting. (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee's obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor. (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration for Lessor's considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36) (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term ofsaid assignment orsublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment orsublease to which Lessor hasspecifically consented to in writing. (g) Lessor's consent to any assignment orsubletting shall not transfer to the assignee orsublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2)

12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:
(a) Lessee hereby assigns and transfersto Lessor all of Lessee's interest in all Rent payable on any sublease, and Lessor may collectsuch Rent and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee's then outstanding obligations any such excessshall be refunded to Lessee. Lessorshall not, by reason of the foregoing or any assignment ofsuch sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rentsto Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessorshall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration ofsuch sublease; provided, however, Lessorshall not be liable for any prepaid rents orsecurity deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches ofsuch sublessor. (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. (d) No sublessee shall further assign orsublet all or any part of the Premises without Lessor's prior written consent. (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any,specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee.

13. Default; Breach; Remedies.

13.1 Default; Breach. A "Default" is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A "Breach" is defined asthe occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:
(a) The abandonment of the Premises; the vacating of the Premises prior to the expiration or termination of this Lease without providing a commercially reasonable level ofsecurity, or where the coverage of the property insurance described in Paragraph 8.3 isjeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism; or failure to deliver to Lessor exclusive possession of the entire Premisesin accordance herewith prior to the expiration or termination of this Lease.
(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance orsurety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF

RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.
25 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 10 of 16
(c) The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second time then, the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.
(d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.
(e) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. (f) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. (h) If the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease.

13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:
(a) Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any damages to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. (b) Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor's interests, shall not constitute a termination of the Lessee's right to possession.
(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises.

13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, the cost of tenant improvements for Lessee paid for or performed by Lessor, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which concessions are hereinafter referred to as "Inducement Provisions," shall be deemed conditioned upon Lessee's full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance.

13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment.

Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the 26 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 11 of 16
exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance.

13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear interest from the 31st day after it was due. The interest ("Interest") charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.

13.6 Breach by Lessor.
(a) Notice of Breach. Lessorshall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation issuch that more than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion. (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within 30 days after receipt ofsaid notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided however, thatsuch offset shall not exceed an amount equal to the greater of one month's Base Rent or the Security Deposit, reserving Lessee'sright to seek reimbursement from Lessor for any such expense in excess ofsuch offset. Lessee shall document the cost ofsaid cure and supply said documentation to Lessor.

14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise ofsaid power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs.

If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, istaken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice ofsuch taking (or in the absence ofsuch notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect asto the portion of the Premises remaining, except that the Base Rentshall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or paymentsshall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee'srelocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease isterminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.

15. Brokerage Fees.

15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1.9 above, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee or anyone affiliated with Lessee acquires any rights to the Premises or other premises owned by Lessor and located within the same Project, if any, within which the Premisesis located, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then, Lessorshall pay Brokers a fee in accordance with the fee schedule of the Brokersin effect at the time the Lease was executed. The provisions of this paragraph are intended to supersede the provisions of any earlier agreement to the contrary.

15.2 Assumption of Obligations. Any buyer or transferee of Lessor'sinterest in this Lease shall be deemed to have assumed Lessor's obligation hereunder.

Brokersshall be third party beneficiaries of the provisions of Paragraphs 1.9, 15, 22 and 31. If Lessor failsto pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue Interest. In addition, if Lessor failsto pay any amountsto Lessee's Broker when due, Lessee's Broker may send written notice to Lessor and Lessee ofsuch failure and if Lessor fails to pay such amounts within 10 days after said notice, Lessee shall pay said moniesto its Broker and offsetsuch amounts against Rent. In addition, Lessee's Brokershall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor's Broker for the limited purpose of collecting any brokerage fee owed.

15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker, agent or finder (other than the Brokers and Agents, if any) in connection with this Lease, and that no one other than said named Brokers and Agentsis entitled to any commission or finder's fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmlessfrom and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' feesreasonably incurred with respect thereto.

16. Estoppel Certificates.
(a) Each Party (as "Responding Party")shall within 10 days after written notice from the other Party (the "Requesting Party") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "Estoppel Certificate" form published by AIR CRE, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party. (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease isin full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party's performance, and (iii) if Lessor isthe Requesting Party, not more than one month'srent has been paid in advance.

Prospective purchasers and encumbrancers may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. In addition, Lessee acknowledges that any failure on its part to provide such an Estoppel Certificate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to execute and/or deliver a requested Estoppel Certificate in a timely fashion the monthly Base Rentshall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for remainder of the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee's failure to provide the Estoppel Certificate. Such increase in Base Rentshall in no event constitute a waiver of Lessee's Default or Breach with respect to the failure to provide the Estoppel Certificate nor prevent the exercise of any of the other rights and remedies granted hereunder. (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantorsshall within 10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessorsuch financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee's financial statementsfor the past 3 years. Allsuch financial statementsshall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 27 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 12 of 16

17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor.

Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.

18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days.

20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction.

21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party.

23. Notices.

23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, or by email, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing.

23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices delivered by hand, or transmitted by facsimile transmission or by email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

23.3 Options. Notwithstanding the foregoing, in order to exercise any Options (see paragraph 39), the Notice must be sent by Certified Mail (return receipt requested), Express Mail (signature required), courier (signature required) or some other methodology that provides a receipt establishing the date the notice was received by the Lessor.

24. Waivers.
(a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. (b) The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. (c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

25. Disclosures Regarding the Nature of a Real Estate Agency Relationship. (a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows:
(i) Lessor's Agent. A Lessor's agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor's agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.
(ii) Lessee's Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 13 of 16
agent may not, without the express permission of the respective Party, disclose to the other Party confidential information, including, but not limited to, facts relating to either Lessee's or Lessor's financial position, motivations, bargaining position, or other personal information that may impact rent, including Lessor's willingness to accept a rent less than the listing rent or Lessee's willingness to pay rent greater than the rent offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreementsto assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Both Lessor and Lessee should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change. (b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys' fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker.
(c) Lessor and Lessee agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential.

26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. At or prior to the expiration or termination of this Lease Lessee shall deliver exclusive possession of the Premisesto Lessor. For purposes of this provision and Paragraph

13.1(a), exclusive possession shall mean that Lessee shall have vacated the Premises, removed all of its personal property therefrom and that the Premises have been returned in the condition specified in this Lease. In the event that Lessee does not deliver exclusive possession to Lessor asspecified above, then Lessor's damages during any holdover period shall be computed at the amount of the Rent (as defined in Paragraph 4.1) due during the last full month before the expiration or termination of this Lease (disregarding any temporary abatement of Rent that may have been in effect), but with Base Rent being 150% of the Base Rent payable during such last full month. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions.

In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed asif prepared by one of the Parties, but rather according to itsfair meaning as a whole, asif both Parties had prepared it.

29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. Signatures to this Lease accomplished by means of electronic signature or similar technology shall be legal and binding.

30. Subordination; Attornment; Non-Disturbance.

30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, "Security Device"), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as "Lender") shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Optionsshall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.

30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor's obligations, except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month'srent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or credited to such new owner.

30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee'ssubordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a "Non-Disturbance Agreement") from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any optionsto extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessorshall, if requested by Lessee, use its commercially reasonable effortsto obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which issecured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement.

30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessorshall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.

31. Attorneys' Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or notsuch action or proceeding is pursued to decision or judgment. The term, "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, asthe case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' feesreasonably incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action issubsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence forsuch services and consultation). 29 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 14 of 16

32. Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agentsshall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose ofshowing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long asthere is no material adverse effect on Lessee's use of the Premises. Allsuch activitiesshall be without abatement of rent or liability to Lessee.

33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor's prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction.

34. Signs. Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs during the last 6 months of the term hereof. Except for ordinary "forsublease" signs, Lessee shall not place any sign upon the Premises without Lessor's prior written consent. All signs must comply with all Applicable Requirements.

35. Termination; Merger. Unlessspecifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee,shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessor'sfailure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest,shall constitute Lessor's election to have such event constitute the termination ofsuch interest.

36. Consents. All requests for consent shall be in writing. Except as otherwise provided herein, wherever in this Lease the consent of a Party isrequired to an act by or for the other Party,such consent shall not be unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses (including but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consentsto an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor's consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, norshallsuch consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time ofsuch consent. The failure to specify herein any particular condition to Lessor's consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasonsfor such determination, the determining party shall furnish itsreasons in writing and in reasonable detail within 10 business days following such request.

37. Guarantor.

37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by AIR CRE, and each such Guarantorshall have the same obligations as Lessee under this Lease.

37.2 Default. Itshall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor's behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect.

38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.

39. Options. If Lessee is granted any Option, as defined below, then the following provisions shall apply.

39.1 Definition. "Option" shall mean: (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of first offer to purchase or the right of first refusal to purchase the Premises or other property of Lessor.

39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee isin full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning orsubletting.

39.3 Multiple Options. In the event that Lessee has any multiple Optionsto extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.

39.4 Effect of Default on Options.
(a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing untilsaid Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices ofseparate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option.
(b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise an Option because of the provisions of Paragraph 39.4(a).
(c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee failsto pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease.

40. Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor, Lessee agreesthat it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management,safety, and care ofsaid properties, including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its employees, suppliers,shippers, customers, contractors and inviteesto so abide and conform. Lessee also agreesto pay itsfair share of common expenses incurred in connection with such rules and regulations.

41. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 15 of 16
not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documentsreasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions.

43. Performance Under Protest. If at any time a dispute shall arise as to any amount orsum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment "under protest" and such paymentshall not be regarded as a voluntary payment and there shallsurvive the right on the part ofsaid Party to institute suit for recovery ofsuch sum. If it shall be adjudged that there was no legal obligation on the part ofsaid Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof asit was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid "under protest" within 6 monthsshall be deemed to have waived itsright to protest such payment.

44. Authority; Multiple Parties; Execution.
(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrantsthat he orshe is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence ofsuch authority. (b) If this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lesseesshall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same asif all of the named Lessees had executed such document. (c) This Lease may be executed by the Partiesin counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

45. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.

46. Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.

47. Amendments. This Lease may be modified only in writing, signed by the Partiesin interest at the time of the modification. Aslong asthey do not materially change Lessee's obligations hereunder, Lessee agreesto make such reasonable non-monetary modificationsto this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.

48. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS LEASE.

49. Arbitration of Disputes. An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease is is not attached to this Lease.

50. Accessibility; Americans with Disabilities Act.
(a) The Premises:
have not undergone an inspection by a Certified Access Specialist (CASp). Note: A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The partiesshall mutually agree on the arrangementsfor the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises. have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises met all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agreesto keep such report confidential. have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises did not meet all applicable construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it received a copy of the inspection report at least 48 hours prior to executing this Lease and agreesto keep such report confidential except as necessary to complete repairs and corrections of violations of construction related accessibility standards.

In the event that the Premises have been issued an inspection report by a CASp the Lessorshall provide a copy of the disability accessinspection certificate to Lessee within 7 days of the execution of this Lease.
(b) Since compliance with the Americans with Disabilities Act (ADA) and otherstate and local accessibility statutes are dependent upon Lessee'sspecific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee's use of the Premisesrequires modifications or additions to the Premisesin order to be in compliance with ADA or other accessibility statutes, Lessee agrees to make any such necessary modifications and/or additions at Lessee's expense.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY AIR CRE OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE. 31 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM STN-27.30, Revised 10-22-2020 Page 16 of 16
WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED.

The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.

Executed at:

On:

By LESSOR:

City of West Sacramento
By:

Name Printed: Aaron Laurel
Title: City Manager
Phone: 916-617-4558
Fax:

Email: [email protected]
By:

Name Printed:

Title:

Phone:

Fax:

Email:

Address:

Federal ID No.:

Executed at:

On:

By LESSEE:

Civil Pacific, Inc.

By:

Name Printed: Loren Beebe
Title: President
Phone: 916-719-8203
Fax:

Email: [email protected]
By:

Name Printed:

Title:

Phone:

Fax:

Email:

Address:

Federal ID No.:

BROKER
MBS Realty dba The Vollman Company
Attn: Dan Mincher, CCIM
Title: Broker Associate
Address: 11500 Sunrise Gold Circle, Suite E,
Rancho Cordova, CA 95742
Phone: 916-929-2000
Fax:

Email: [email protected]
Federal ID No.: 83-3827357
Broker DRE License #: 02091276
Agent DRE License #: 01703483
BROKER
MBS Realty dba The Vollman Company
Attn: Dan Mincher, CCIM
Title: Broker Associate
Address: 11500 Sunrise Gold Circle, Suite E,
Rancho Cordova, CA 95742
Phone: 916-929-2000
Fax:

Email: [email protected]
Federal ID No.: 83-3827357
Broker DRE License #: 02091276
Agent DRE License #: 01703483
AIR CRE * https://www.aircre.com * 213-687-8777 * [email protected] NOTICE: No part of these works may be reproduced in any form without permission in writing. 32 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM AD-3.10, Revised 10-22-2020 Page 1 of 4

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.

SELLER'S AGENT
A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations:

To the Seller: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller.

To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.

An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

BUYER'S AGENT
A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. This includes a Buyer's agent under a buyer-broker representation agreement with the Buyer. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:

To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer.

An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salesperson and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.

In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer. (b) Other duties to the Seller and the Buyer as stated above in their respective sections.

In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered.

SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent's role. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect their own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation. Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODE PRINTED ON THE BACK (OR A SEPARATE PAGE).

Buyer Seller Lessor Lessee Date:

Agent: MBS Realty dba The Vollman Company DRE Lic. #: 02091276 Real Estate Broker (Firm)
By: DRE Lic. #: 01703483 Date:
(Salesperson or Broker-Associate)
33 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM AD-3.10, Revised 10-22-2020 Page 2 of 4
THIS FORM HAS BEEN PREPARED BY AIR CRE. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF THIS FORM FOR ANY SPECIFIC TRANSACTION. PLEASE SEEK LEGAL COUNSEL AS TO THE APPROPRIATENESS OF THIS FORM.

AIR CRE * https://www.aircre.com * 213-687-8777 * [email protected] NOTICE: No part of these works may be reproduced in any form without permission in writing. 34 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM AD-3.10, Revised 10-22-2020 Page 3 of 4

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP
CIVIL CODE SECTIONS 2079.13 THROUGH 2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13. As used in thissection and Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a) “Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or broker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes vendee or lessee of real property. (c) “Commercial real property” means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobile home, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) “Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. (e) “Listing agreement” means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer, including rendering other servicesfor which a real estate license isrequired to the seller pursuant to the terms of the agreement. (f) “Seller's agent” means a person who has obtained a listing of real property to act as an agent for compensation. (g) “Listing price” is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the seller's agent. (h) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) “Offer to purchase” means a written contract executed by a buyer acting through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller. (j) “Real property” means any estate specified by subdivision (1) or (2) of Section 761 in property, and includes (1) single-family residential property, (2) multi-unit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobile home as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (k) “Real property transaction” means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase. (l) “Single-family residential property” or “single-family residential real property” means any of the following: (1) Real property improved with one to four dwelling units, including a leasehold exceeding one year's duration. (2) A unit in a residential stock cooperative, condominium, or planned unit development. (3) A mobilehome or manufactured home when offered forsale orsold through a real estate broker pursuant to Section 10131.6 of the Business and Professions Code. (m) “Sell,” “sale,” or “sold” refersto a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (n) “Seller” meansthe transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which they are the owner from an agent on behalf of another. “Seller” includes both a vendor and a lessor of real property. (o) “Buyer's agent” means an agent who represents a buyer in a real property transaction. (p) “buyer-broker representation agreement” means a written contract between a buyer of real property and a buyer's agent by which the buyer's agent has been authorized by the buyer to provide services set forth in subdivision (a) of Section 10131 of the Business and Professions Code for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
2079.14. (a) A copy of the disclosure form specified in Section 2079.16 shall be provided in a real property transaction as follows: (1) The seller's agent, if any, shall provide the disclosure form to the seller before entering into the listing agreement. (2) The buyer's agent shall provide the disclosure form to the buyer as soon as practicable before execution of a buyer-broker representation agreement and execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent, the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer. (b) The agent providing the disclosure form specified in Section 2079.16 shall obtain a signed acknowledgment of receipt from the buyer or seller except as provided in Section 2079.15.
2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form.
2079.17(a) As soon as practicable, the buyer's agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller. (C) CONFIRMATION: The following agency relationships are confirmed for thistransaction.

Seller's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one): o the seller; or o both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one): o the Seller's Agent. (salesperson or broker associate); or o both the Buyer's Agent and the Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE, SAMPLE ONLY License Number Is the broker of (check one): o the buyer; or o both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE, SAMPLE ONLY License Number Is (check one): o the Buyer's Agent. (salesperson or broker associate); or o both the Buyer's Agent and the Seller's Agent. (dual agent) (d) The disclosures and confirmation required by thissection shall be in addition to the disclosure required by Section 2079.14. An agent's duty to provide disclosure and confirmation of representation in thissection may be performed by a real estate salesperson or broker associate affiliated with that broker. 2079.18 (Repealed pursuant to AB-1289, 2017-18 California Legislative session) 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any 35 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/1/2025 2:53 PM AD-3.10, Revised 10-22-2020 Page 4 of 4
compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.
2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 (a) A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. (b) A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) “Confidential information” means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a seller's agent from also being a buyer's agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent. 2079.23 (a) A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. (b) A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lender's approval of the transaction, the homeowner or listing agent to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. 36 4905-2839-9659.1 007203.004

51. IMPROVEMENTS AND ALTERATIONS BY LESSEE: None. Lessee shall not be required to install any improvements to the Premises. Should Lessee desire to install improvements or make alterations, all work shall conform to applicable building codes, be performed by a licensed contractor who shall provide a certificate of insurance naming the owner as an additional insured, be at Lessee's sole cost, and to be approved by Lessor in writing prior to beginning construction. Lessee shall comply with the terms of Section 7.3 herein, and shall present construction plans for any improvements to the Lessor for review and approval not less than thirty (30) days prior to the expected commencement of construction. Lessor shall not unreasonably condition, delay or withhold approval of Lessee's plans. Lessee hereby acknowledges that all improvements, other than trade fixtures, made by Lessee shall become the property of Lessor at the termination of the lease.

52. RENTAL PAYMENT SCHEDULE: The monthly base rent, not including the Operating Expense costs, and the cost of fire, hazard and liability insurance coverage for the Project (“NNN/CAM”), shall be paid in monthly installments as follows:

Period Monthly Base Rent
12 months from Lease Commencement $0.00 (abated) + NNN
Months 13 thru 24 $7,725.00 + NNN
Months 25 thru 36 $7,957.00 + NNN
Months 37 thru 48 $8,195.00 + NNN
Months 49 thru 60 $8,441.00 + NNN
37 4905-2839-9659.1 007203.004

53. RESPONSIBILITY FOR OPERATING EXPENSES AND OPERATIONS: Lessee agrees to pay all Lessor Operating Expense charges and expenses for the Premises, including those actually incurred by Lessor. Said Operating Expense charges shall include, but not be limited to, all costs and expenses of owning, maintaining and operating the Premises including, without limitation, all metered and none metered utilities, water, electricity, landscaping, exterior painting, and trash collection and removal. Although there will be no real property taxes assessed against the Premises because Lessor is a public agency, there may be possessory interest taxes imposed on Tenant’s possession or right to possession to the Premises under Revenue and Taxation Code section 107.6. In such an event, Tenant shall pay all possessory interest taxes and assessments on or before the date on which they are due as well as any other special assessments or taxes imposed on the Premises during the course of this Lease.

A. Payments and Statements: Lessee shall pay estimated NNN costs each month in an amount reasonably determined by Lessor, along with the monthly base rent payment. Said NNN charges will be reconciled annually to reflect new costs. Lessee shall pay or be credited for any discrepancy between actual NNN costs upon receipt of the reconciliation. In the event Lessee vacates the Premises after the expiration of the term, but prior to the final determination of Lessee's actual pro rata share of the NNN expenses, Lessee shall upon notice of any under payment immediately pay Lessor any amount owing and, conversely, any over payment made shall be immediately rebated by Lessor to Lessee. Lessor shall use its best efforts to reconcile the accounts, prepare the statements and provide same to the Lessee within ninety (90) days of the end of each calendar year. Failure of Lessor to submit reconciliation statements as called for herein shall not be deemed to be a waiver of Lessee's requirement to pay any amounts due.

B. Lessee's Obligation's: Lessee hereby agrees to make all repairs other than those listed in paragraph 7.2 to the Premises which Lessor deems necessary during the term of this Lease. The Lessee further agrees to hold the Lessor harmless from any expenses regarding said repairs.

C. Insurance Indemnity: Lessee hereby agrees to acquire the insurance called for in paragraph 8.2 at its sole expense. The Lessee shall cause the Lessor to be carried as an "Additionally Insured Party" under the insurance policy, provide the lessor copies of said policies and cause the policy to require thirty (30) days notification to the Lessor for any modifications or cancellations. Should any glass breakage take place it shall be covered by the policy and the Lessee shall be responsible for the amount of the deductible unless such breakage is caused by Lessor. If breakage is caused by Lessee, it's agents, invitee or vendors, Lessee shall be responsible for the entire repair/replacement cost. Lessee shall provide the Lessor a certificate of insurance prior to taking occupancy of the Premises.
38 4905-2839-9659.1 007203.004
D. Utilities: Lessee hereby agrees to pay for all utilities, including but not limited to those items listed in paragraph 11, and any sewer and water charges which may not be separately billed. Lessee hereby agrees to hold the Lessor harmless from any and all utility expenses regarding the use of the Project.
54) PAYMENT OF RENT: Rent shall be paid to:

City of West Sacramento
1110 W Capitol Ave. West Sacramento, CA 95691Attn: _______________

55. RETURNED CHECK CHARGES: Lessee hereby acknowledges that Lessor shall charge Lessee Twenty-five Dollars ($25.00) for each check presented by Lessee to Lessor which is not accepted for any reason by the financial institution on which it is drawn. Lessee hereby acknowledges and agrees that Lessor reserves the right to require Lessee to pay the rent in the form of cash, cashier’s check or money order for the remainder of the Lease term should the lessee present the Lessor with two (2) or more personnel or business checks which are dishonored.

56. OPTION TO EXTEND LEASE: Provided that Lessee is not in default under any terms of this Lease at the time Lessee exercises the option or at the time the option period begins, Lessee shall have two (2) options to extend the term of this Lease for an additional period of two (2) years on the same terms and conditions contained in this lease, except that base monthly rent to be paid by Lessee to Lessor for the extended term shall increase by 3% annually from the then current rate at the time of exercise of each option. To exercise these options, Lessee must give notice in writing to Lessor not later than ninety (90) days prior to expiration of the original term or the previous term, as applicable.

Lessee, in order to exercise this option, must not be in default of any terms and conditions of this lease. Once an option is exercised it shall be irrevocable.

57. SIGNS: Subject to all necessary government approvals, Lessee shall have the right to install and obtain a sign on the building's exterior surface in a location satisfactory to Lessor and Lessee. Sign shall consist of Lessee's name, with the size, placement, and style of lettering to be approved in advance by Lessor, such approval not to be unreasonably withheld. The expense of obtaining approvals, installation and maintenance of the signs, including electricity, shall be paid by Lessee. If a sign is removed, Lessee is responsible for having the building surface restored to its original
condition, ordinary wear and tear excepted. If a sign falls into disrepair, Lessee shall have ten (10) days to effect repairs following Lessor's written notice to do so. If repairs are not completed within such period, Lessor has the right to make repairs and charge Lessee for same. At the end of the expiration of the Term or earlier termination of the Lease, Lessee shall remove all signs at its own expense and have the building surface restored to its original condition, ordinary wear and tear excepted.
39 4905-2839-9659.1 007203.004

58. RE-KEYING: Lessee may, at his sole option and expense, have all locks to the Premises re-keyed and will provide Lessor with a workable key to each new lock pursuant to paragraph 32 of lease for any emergency situations that may occur. Prior to causing any lock to be re-keyed the Lessee will consult with the Lessor to insure coordination with Lessor’s master key program.

59. DOCUMENT PREPARATION: This Lease has been prepared merely as a service to Lessor and Lessee by MBS Realty dba The Vollman Company. MBS Realty dba The Vollman Company makes no representations as to the legal sufficiency, legal effect, economic effect or interpretation, or tax consequences of this agreement or the transactions relating hereto, and Lessor and Lessee are hereby advised to consult their personal attorneys regarding agreements.

60. RENTAL INDUCEMENT: Lessor, in consideration of the Lessee’s execution of this Lease and subsequent occupation of the Premises under the terms and conditions contained in the Lease, hereby grants Lessee 12 months of abated base rent (see Para 52). Lessee shall enjoy the abated rent in the first through twelfth months of the Lease Term; provided, however, that any Lessee default during the term of the Lease and any extensions thereof shall cause the total abated rent to be due and payable on Lessor demand.
40 ·,
0 1
·-l 1 .
..
.:
•
N
A
MILES

0.08 2286 DEL MONTE STREET, WEST SACRAMENTO
CA 95691
Located on Del Monte St between the intersections of
Terminal St and Cebrian St.

Prepared on
4/21/2025 by
cierras
Parks and Recreation
Department
City of West
Sacramento
Attachment 2
41 CITY COUNCIL AGENDA REPORT
MEETING DATE: April 30, 2025 ITEM # 6
SUBJECT:

CONSIDERATION OF APPROVAL OF SECURITY PAVING COMPANY INC.

COMMERCIAL LEASE AT 2090 LOCKS DRIVE
INITIATED OR REQUESTED BY: REPORT COORDINATED OR PREPARED BY:
[ ] Council [X] Staff
[ ] Other
Fred Arnold, Senior Program Manager
Capital Projects Department
ATTACHMENT [X] Yes [ ] No [ ] Information [ ] Direction [X] Action

OBJECTIVE
The objective of this report is to provide the City Council with sufficient information to consider approval of Security Paving Company, Inc. commercial lease at 2090 Locks Drive.

RECOMMENDED ACTION
Staff respectfully recommends that the City Council:

1. Approve as to form, the Security Paving Company Inc. commercial lease;

2. Authorize the City Manager, or his designee, to execute the Security Paving Company, Inc. commercial lease, in its final form, as shall be approved by the City Attorney; and

3. Authorize the City Manager, or his designee, to execute non-substantive changes or modifications to the commercial lease with the approval from the City Attorney.

BACKGROUND
The Stone Lock Facility encompasses approximately nine acres within the City located at the eastern end of the Sacramento River Deep Water Ship Canal (DWSC) and is part of a barge canal connecting the Port of West Sacramento to the Sacramento River. The property is bounded by Jefferson Boulevard to the west, South River Road/Village Parkway to the east, north of Locks Drive to the south, and industrial property to the north. The Stone Lock Facility was built by the United States Army Corps of Engineers (USACE) as part of the DWSC navigation project (“Navigation Project”). The Navigation Project was authorized by the River and Harbor Act of 1946, consisting of the DWSC, the Barge Canal, the Barge Canal Bulkhead Closure Structure (“Bulkhead Structure”), a bascule bridge and two channel locks. Although never fully realized, the Stone Lock Facility was intended to support transportation of cargo from the Port of West Sacramento to McClellan Air Force Base.

In 2015, following the dissolution of the West Sacramento Redevelopment Agency by the State of California, the City took possession of the Stone Lock Facility and nine acres of the surrounding area for public purposes. These public purposes include flood protection and recreation. While the Stone Lock Facility no longer supports active industrial uses, it still contains industrial infrastructure, including an underground petroleum pipeline.

Recently, the City received interest from commercial entities proposing to lease a portion of the Stone Lock Facility—specifically, 1.9 acres. Security Paving Company Inc. has proposed operating a business focused on the storage and distribution of aggregate materials.

ANALYSIS
Staff conducted a market rent analysis and has negotiated a lease with the principals of Security Paving Company, Inc. The one-year lease provides for monthly compensation of $3,000, totaling $36,000 annually, for the term from May 1, 2025, through April 30, 2026, with an option for a one-year extension.

The lease also includes an option to extend the term for an additional year following the expiration date, with a 3% increase in rent. The tenant has agreed to the terms of the lease. The City will pay a negotiated 5% commission, in the amount of $1,800, upon execution of the lease and upon any subsequent exercise of extension options, pursuant to a separate listing agreement with The Vollman Company.

Environmental Considerations
Not applicable.
42 Consideration of Approval of Security Paving Company, Inc. Commercial Lease April 30, 2025

Page 2 ends

Commission Recommendation
Not Applicable
Strategic Plan Integration
Not applicable.

Staff recommends the Council proceed with Alternative 1, as described in this report. The lease is critical to the City in continuing essential operations and services.

Coordination and Review
This item was coordinated with staff from the City Manager’s Office, Port of West Sacramento, Finance Department, and Capital Projects Department, and has been reviewed and approved by the City Attorney. The lease terms were negotiated with the property owner's real estate broker.

Budget/Cost Impact
The one-year lease provides for monthly compensation of $3,000, totaling $36,000 annually to the City, for the term from May 1, 2025, through April 30, 2026. The lease includes an option to extend for an additional year at a 3% increase in rent. All related revenues and expenditures should be deposited into and expended from the Stone Lock Maintenance Fund (Fund 261).

ATTACHMENTS

1. Security Paving Inc. Commercial Lease

2. Vicinity Map

3. Area Map
43 ________ ________
________ ________

STANDARD INDUSTRIAL/COMMERCIAL LAND LEASE - GROSS
(DO NOT USE THIS FORM FOR BUILDINGS OR FOR LEASES PROVIDING FOR THE CONSTRUCTION OF BUILDINGS)

1. Basic Provisions ("Basic Provisions").

1.1 Parties. This Lease ("Lease"), dated for reference purposes only April 30, 2025 , is made by and between City of West Sacramento ("Lessor") and Security Paving Company, Inc. ("Lessee"), (collectively the "Parties", or individually a "Party").

1.2 Premises: That certain real property, including all improvements thereon or to be provided by Lessor under the terms of this Lease, commonly known as (street address, city,state, zip):2090 Locks Drive, West Sacramento 95605 ("Premises"). The Premises are located in the County of Yolo , and are generally described as(describe briefly the nature of the property and the improvements on the property, if any, and , if applicable, the "Project", if the property islocated within a Project): +/- 1.9 acres, Zoned Waterfront commercial, construction lot . (See also Paragraph 2)

1.3 Term: One year years and Zero months months("Original Term") commencing May 1, 2025 ("Commencement Date") and ending April 30, 2026 ("Expiration D ate"). (See also Paragraph 3)

1.4 Early Possession: If the Premises are available Lessee may have non-exclusive possession of the Premises commencing Upon Lease execution and proof of insurance ("Early Possession Date"). (See also Paragraphs 3.2 and 3.3)

1.5 Base Rent: $3,000.00 per month ("Base Rent"), payable on the First day of each month commencing June 1, 2025 . (See also Paragraph 4)
If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph .

1.6 Base Rent and Other Monies Paid Upon Execution:
(a) Base Rent: $3,000.00 for the period May 2025 .
(b) Security Deposit: $3,000.00 ("Security Deposit"). (See also Paragraph 5) (c) Other: -- for -- .
(d) Total Due Upon Execution of this Lease: $6,000.00 .

1.7 Agreed Use: Construction yard, staging of construction materials, and storing of construction vehicles. No construction, manufacturing, or use/storage of hazardous material. . (See also Paragraph 6)

1.8 Insuring Party. Lessor is the "Insuring Party". The annual "Base Premium" is . (See also Paragraph 8)

Lessor's Brokerage Firm MBS Realty dba The Vollman Company License No. 02091276 Is the broker of (check one):
the Lessor; or both the Lessee and Lessor (dual agent).

Lessor's Agent Dan Mincher, CCIM License No. 01703483 is (check one): the Lessor's Agent (salesperson or broker associate); or both the Lessee's Agent and the Lessor's Agent (dual agent).

Lessee's Brokerage Firm MBS Realty dba The Vollman Company License No. 02091276 Is the broker of (check one):
the Lessee; or both the Lessee and Lessor (dual agent).

Lessee's Agent Dan Mincher, CCIM License No. 01703483 is (check one): the Lessee's Agent (salesperson or broker associate); or both the Lessee's Agent and the Lessor's Agent (dual agent). (b) Payment to Brokers. Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of $1,800.00 or 5% % of the total Base Rent) for the brokerage services rendered by the Brokers.

1.10 Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by ("Guarantor"). (See also Paragraph 37)

1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease:
an Addendum consisting of Paragraphs 51. RIGHT TO USE through 54. PROPERTY TAXES. ; a plot plan depicting the Premises;
a current set of the Rules and Regulations;
a Work Letter;
other (specify): .

2. Premises.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 2 of 15
purposes of comparison, the Base Rentstated herein is NOT tied to square footage and is notsubject to adjustment should the actualsize be determined to be different. NOTE: Lessee is advised to verify the actual size prior to executing this Lease.

2.2 Condition. Lessor shall deliver the Premisesto Lessee free of debris on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Date"), and warrants that the existing electrical, plumbing, lighting, if any, and all othersuch elementsin the Premises, other than those constructed by Lessee, shall be in good operating condition on said date. If a non-compliance with said warranty exists as of the Start Date, or if one of such systems or elementsshould malfunction or fail within the warranty period, Lessorshall, as Lessor's sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent ofsuch non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty period shall be 30 days. If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessee'ssole cost and expense. Lessor also warrants, that unless otherwise specified in writing, Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

2.4 Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Lessor and/or Brokersto satisfy itself with respect to the size and condition of the Premises (including but not limited to the improvements, if any,security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee's intended use, (c) Lessee has made such investigation asit deems necessary with reference to such matters and assumes all responsibility therefor asthe same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor, (e) the square footage of the Premises was not material to Lessee's decision to lease the Premises and pay the Rentstated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease orsuitability to occupy the Premises, and (ii) it is Lessor'ssole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee wasthe owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work.

3. Term.

3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

3.2 Early Possession. Any provision herein granting Lessee Early Possession of the Premises issubject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rentshall be abated for the period ofsuch Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Date.

3.3 Delay In Possession. Lessor agreesto use commercially reasonable effortsto deliver exclusive possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessorshall not be subject to any liability therefor, nor shallsuch failure affect the validity of this Lease or change the Expiration Date. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, Lessee may, at its option, by notice in writing within 10 days after the end ofsuch 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. Ifsuch written notice is not received by Lessor within said 10 day period, Lessee'sright to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

3.4 Lessee Compliance. Lessorshall not be required to tender possession of the Premisesto Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee isrequired to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

4. Rent.

4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("Rent").

4.2 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor isinaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amountset forth in this Lease. Rent for any period during the term hereof which isfor lessthan one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rentshall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which isless than the amount then due shall not be a waiver of Lessor's rightsto the balance of such Rent, regardless of Lessor's endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agreesto pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future paymentsto be made by Lessee to be by cashier's check. Payments will be applied first to accrued late charges and attorney's fees,second to accrued interest, then to Base Rent and Operating Expense Increase, and any remaining amount to any other outstanding charges or costs.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 3 of 15
payment of any amount already due Lessor, for Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessorso that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessorshall have the right to increase the Security Deposit to the extent necessary, in Lessor'sreasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor's reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor asshall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Lessorshall return that portion of the Security Deposit not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any moniesto be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED BY LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH'S RENT.

6. Use.

6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which isreasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premisesin a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessorshall not unreasonably withhold or delay its consent to any request for a modification of the Agreed Use, so long asthe same will not be significantly more burdensome to the Premises. If Lessor electsto withhold consent, Lessor shall within 7 days after such request give written notification ofsame, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use.

6.2 Hazardous Substances.
(a) Reportable Uses Require Consent. The term "Hazardous Substance" as used in this Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, byproducts or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee's expense) with all Applicable Requirements. "Reportable Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan isrequired to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materialsreasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long assuch use isin compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit. (b) Duty to Inform Lessor. If Lessee knows, or hasreasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice ofsuch fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing orsanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmlessfrom and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys' and consultants' fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee). Lessee's obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created orsuffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time ofsuch agreement. (e) Lessor Indemnification. Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee's occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor's obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. (f) Investigations and Remediations. Lessorshall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee's occupancy, unless such remediation measure is required as a result of Lessee's use (including "Alterations", as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable access to the Premises at reasonable timesin order to carry out Lessor's investigative and remedial responsibilities. (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.3(a)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such 46 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 4 of 15
Hazardous Substance Condition, if required, assoon asreasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 timesthe then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence ofsuch Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date ofsuch notice.

6.4 Inspection; Compliance. Lessor and Lessor's "Lender" (as defined in Paragraph 30) and consultants authorized by Lessorshall have the right to enter onto Premises at any time in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of inspecting and/or testing the condition of the Premises and/or for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see Paragraph 9.3(a)) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant materialsafety data sheets(MSDS) to Lessor within 10 days of the receipt of a written request therefor. Lessee acknowledges that any failure on its part to allow such inspections or testing will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to allow such inspections and/or testing in a timely fashion the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for the remainder to the Lease. The Parties agree thatsuch increase in Base Rent represents fair and reasonable compensation for the additional risk/coststhat Lessor will incur by reason of Lessee'sfailure to allow such inspection and/or testing. Such increase in Base Rent shall in no event constitute a waiver of Lessee's Default or Breach with respect to such failure nor prevent the exercise of any of the other rights and remedies granted hereunder.

7. Maintenance; Repairs; Utility Installations; Trade Fixtures and Alterations.

7.1 Lessee's Obligations.
(a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee'ssole expense, keep the Premises, in good order, condition and repair (whether or not the need for such repairs occurs as a result of Lessee's use, any prior use, the elements or the age ofsuch portion of the Premises), including, but not limited to, plumbing, lighting facilities, landscaping, driveways, parking lots, fences, retaining walls, signs,sidewalks and parkways located on, or adjacent to, the Premises. Lessee, in keeping the Premisesin good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the appearance of the Premises in a first-class condition (including, e.g. graffiti removal). (b) Service Contracts. Lessee shall, at Lessee's sole expense, procure and maintain a contract, with copies to Lessor, in customary form and substance for, and with a contractorspecializing and experienced in the maintenance of the landscaping and irrigation systems, However, Lessor reservesthe right, upon notice to Lessee, to procure and maintain such service contract, and Lessee shall reimburse Lessor, upon demand, for the cost thereof. (c) Failure to Perform. If Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Lessee's behalf, and put the Premisesin good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof.

7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises. It isthe intention of the Parties that the terms of this Lease govern the respective obligations of the Parties asto maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.

7.3 Utility Installations; Trade Fixtures; Alterations. (a) Definitions. The term "Utility Installations" refersto security and fire protection systems, lighting fixtures, plumbing, and fencing on the Premises.

The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph

7.4(a).
(b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the Premises without such consent but upon notice to Lessor, aslong asthe cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum equal to one month's Base Rent in any one year. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessorshall be presented to Lessor in written form with detailed plans. Consentshall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions ofsaid permits and other Applicable Requirements in a prompt and expeditious manner.

Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost ofsuch Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor.
(c) Liens; Bonds. Lessee shall pay, when due, all claimsfor labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises or any interest therein. Lessee shall give Lessor not lessthan 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessorshall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at itssole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessorshall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount ofsuch contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects 47 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 5 of 15
to participate in any such action, Lessee shall pay Lessor's attorneys' fees and costs.

8. Insurance; Indemnity.

8.1 Payment of Premium Increases.
(a) Lessee shall pay to Lessor any insurance cost increase ("Insurance Cost Increase") occurring during the term of this Lease. Insurance Cost Increase is defined as any increase in the actual cost of the insurance required under Paragraph 8.2(b), 8.3(a) and 8.3(b), over and above the Base Premium as hereinafter defined calculated on an annual basis. Insurance Cost Increase shall include but not be limited to increasesresulting from the nature of Lessee's occupancy, any act or omission of Lessee, requirements of the holder of mortgage or deed of trust covering the Premises, increased valuation of the Premises and/or a premium rate increase. The parties are encouraged to fill in the Base Premium in paragraph 1.8 with a reasonable premium forsuch insurance based on the Agreed Use of the Premises. If the partiesfail to insert a dollar amount in Paragraph 1.8, then the Base Premium shall be the lowest annual premium reasonably obtainable for the required insurance as of the commencement of the Original Term for the Agreed Use of the Premises. In no event, however,shall Lessee be responsible for any portion of the increase in the premium cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. (b) Lessee shall pay any such Insurance Cost Increase to Lessor within 30 days after receipt by Lessee of a copy of the premium statement or other reasonable evidence of the amount due. If the insurance policies maintained hereunder cover other property besides the Premises, Lessorshall also deliver to Lessee a statement of the amount ofsuch Insurance Cost Increase attributable only to the Premisesshowing in reasonable detail the manner in which such amount was computed. Premiums for policy periods commencing prior to, or extending beyond the term of this Lease,shall be prorated to correspond to the term of this Lease.

8.3 Property Insurance - Improvements and Rental Value. (a) Improvements. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee and not by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender or included in the Base Premium), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver ofsubrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not lessthan the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. Ifsuch insurance coverage has a deductible clause, the deductible amountshall not exceed $5,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss. (b) Rental Value. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss. (c) Adjacent Premises. If the Premises are part of a larger property owned by Lessor , the Lessee shall pay for any increase in the premiums for the property insurance ofsuch adjacent property if said increase is caused by Lessee's acts, omissions, use or occupancy of the Premises.

8.4 Lessee's Property; Coverage; Worker's Compensation Insurance. (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned 48 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 6 of 15
Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. (b) Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by Applicable Requirements. Such policy shall include a "Waiver of Subrogation" endorsement. Lessee shall provide Lessor with a copy of such endorsement along with the certificate of insurance or copy of the policy required by paragraph 8.5. (c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease.

8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perilsrequired to be insured against herein. The effect of such releases and waiversis not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation thatsuch companies may have against Lessor or Lessee, as the case may be,so long as the insurance is not invalidated thereby.

8.8 Exemption of Lessor and its Agentsfrom Liability. Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agentsshall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises, from any cause, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agentsto enforce the provisions of any other lease in the Project, or (iii) injury to Lessee's business or for any loss of income or profit therefrom. Instead, it is intended that Lessee'ssole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee isrequired to maintain pursuant to the provisions of paragraph 8.

9. Damage or Destruction.

9.1 Insured Loss. If the improvements on the Premises are damaged and such damage is an Insured Loss, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessorshall make any applicable insurance proceeds available to Lessee on a reasonable basisfor that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are notsufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except asto the deductible which is Lessee's responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises.

9.2 Uninsured Loss. If the improvements on the Premises are damaged and such damage is not an Insured Loss, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon asreasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice.

9.3 Abatement of Rent; Lessee's Remedies.
(a) Abatement. In the event the improvements on the Premises are damaged or a Hazardous Substance Condition for which Lessee is not responsible under this Lease occurs ('Hazardous Substance Condition' shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance on or under the Premises which requires remediation), the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises isimpaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. (b) Remedies. If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way,such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election to terminate this Lease on a date not lessthan 60 days following the giving ofsuch notice. If Lessee givessuch notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. "Commence" shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs. 49 ________ ________
________ ________

9.4 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.

9.5 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith.

10. Real Property Taxes.

10.2 Payment of Taxes. Lessorshall pay the Real Property Taxes applicable to the Premises provided, however, that Lessee shall pay to Lessor the amount, if any, by which Real Property Taxes applicable to the Premisesincrease over the fiscal tax year during which the Commencement Date Occurs("Tax Increase"). Payment of any such Tax Increase shall be made by Lessee to Lessor within 30 days after receipt of Lessor's written statement setting forth the amount due and computation thereof. If any such taxesshall cover any period of time prior to or after the expiration or termination of this Lease, Lessee's share of such taxes shall be prorated to cover only that portion of the tax bill applicable to the period that this Lease is in effect. In the event lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that the Tax Increase be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly paymentshall be an amount equal to the amount of the estimated installment of the Tax Increase divided by the number of monthsremaining before the month in which said installment becomes delinquent. When the actual amount of the applicable Tax Increase is known, the amount of such equal monthly advance payments shall be adjusted asrequired to provide the funds needed to pay the applicable Tax Increase. If the amount collected by Lessor is insufficient to pay the Tax Increase when due, Lessee shall pay Lessor, upon demand, such additional sums as are necessary to pay such obligations. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit.

10.3 Additional Improvements. Notwithstanding anything to the contrary in this Paragraph 10.2, Lessee shall pay to Lessor upon demand therefor the entirety of any increase in Real Property Taxes assessed by reason of Alterations or Utility Installations placed upon the Premises by Lessee or at Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties.

10.4 Joint Assessment. If the Premises are notseparately assessed, Lessee's liability shall be an equitable proportion of the Tax Increase for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available.

10.5 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor'sreal property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of a written statementsetting forth the taxes applicable to Lessee's property.

11. Utilities and Services.

12. Assignment and Subletting.

12.1 Lessor's Consent Required.
(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "assign or assignment") orsublet all or any part of Lessee'sinterest in this Lease or in the Premises without Lessor's prior written consent. (b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a change in control for this purpose. (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth asit wasrepresented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "Net Worth of Lessee" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. (d) An assignment orsubletting without consentshall, at Lessor's option, be a Default curable after notice per Paragraph 13.1(d), or a non-curable Breach without the necessity of any notice and grace period. If Lessor electsto treatsuch unapproved assignment or subletting as a non-curable Breach, Lessor may either:
(i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.
(e) Lessee's remedy for any breach of Paragraph 12.1 by Lessorshall be limited to compensatory damages and/or injunctive relief. (f) Lessor may reasonably withhold consent to a proposed assignment orsubletting if Lessee is in Default at the time consent is requested. (g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, i.e. 20 square feet or less, to be used by a third party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting.

12.2 Terms and Conditions Applicable to Assignment and Subletting. 50 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 8 of 15
(a) Regardless of Lessor's consent, no assignment orsubletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. (b) Lessor may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an assignment.

13. Default; Breach; Remedies.

RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.
(c) The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second time then, the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.
(d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment orsubletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42, (viii) materialsafety data sheets(MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.
(e) A Default by Lessee asto the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default issuch that more than 30 days are reasonably required for its cure, then itshall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. (f) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee'sinterest in this Lease, where 51 ________ ________
________ ________

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 9 of 15
possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicialseizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. (h) If the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms ofsuch guaranty, (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor'srefusal to honor the guaranty, or (v) a Guarantor's breach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any such event, to provide written alternative assurance orsecurity, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantorsthat existed at the time of execution of this Lease.

13.2 Remedies. If Lessee failsto perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason ofsuch Breach:
(a) Terminate Lessee'sright to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental lossthat the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental lossthat the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee'sfailure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any damages to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. (b) Continue the Lease and Lessee'sright to possession and recover the Rent asit becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, effortsto relet, and/or the appointment of a receiver to protect the Lessor'sinterests, shall not constitute a termination of the Lessee's right to possession.
(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee'sright to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease asto matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises.

13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, the cost of tenant improvements for Lessee paid for or performed by Lessor, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee's entering into this Lease, all of which concessions are hereinafter referred to as "Inducement Provisions," shall be deemed conditioned upon Lessee's full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure ofsaid Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time ofsuch acceptance.

13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costsinclude, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amountshall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason ofsuch late payment.

Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly in advance.

If more than 25% of the Premises, istaken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takessuch possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect asto the portion of the Premises remaining, except that the Base Rentshall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee'srelocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease isterminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.

15. Brokerage Fees.

15.2 Assumption of Obligations. Any buyer or transferee of Lessor'sinterest in this Lease shall be deemed to have assumed Lessor's obligation hereunder.

Brokersshall be third party beneficiaries of the provisions of Paragraphs 1.9, 15, 22 and 31.

17. Definition of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if thisis a sublease, of the Lessee's interest in the prior lease. In the event of a transfer of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor.

Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessorshall be binding only upon the Lessor as hereinabove defined.

18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Days. Unless otherwise specifically indicated to the contrary, the word "days" as used in this Lease shall mean and refer to calendar days.

20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners, members, directors, officers orshareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members, directors, officers or shareholders, or any of their personal assetsfor such satisfaction.

21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrantsto the Brokers that it has made, and isrelying solely upon, its own investigation asto the nature, quality, character and financial responsibility of the other Party to this Lease and asto the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 53 ________ ________
________ ________

23. Notices.

23.1 Notice Requirements. All noticesrequired or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, or by email, and shall be deemed sufficiently given ifserved in a manner specified in this Paragraph 23. The addresses noted adjacent to a Party'ssignature on this Lease shall be that Party's address for delivery or mailing of notices. Either Party may by written notice to the otherspecify a different address for notice, except that upon Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing.

23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date isshown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices delivered by hand, or transmitted by facsimile transmission or by email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday or legal holiday, itshall be deemed received on the next business day.

24. Waivers.
(a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor's consent to, or approval of, any actshall not be deemed to render unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. (b) The acceptance of Rent by Lessorshall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. (c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

25. Disclosures Regarding the Nature of a Real Estate Agency Relationship. (a) When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokersin thistransaction, asfollows:
(i) Lessor's Agent. A Lessor's agent under a listing agreement with the Lessor acts asthe agent for the Lessor only. A Lessor's agent or subagent hasthe following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.
(ii) Lessee's Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor's agent, even if by agreement the agent may receive compensation for servicesrendered, either in full or in part from the Lessor. An agent acting only for a Lessee hasthe following affirmative obligations. To the Lessee: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: (a) Diligent exercise of reasonable skills and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties.

An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.
(iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent hasthe following affirmative obligations to both the Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee asstated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not, without the express permission of the respective Party, disclose to the other Party confidential information, including, but not limited to, facts relating to either Lessee's or Lessor's financial position, motivations, bargaining position, or other personal information that may impact rent, including Lessor's willingness to accept a rent less than the listing rent or Lessee's willingness to pay rent greater than the rent offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreementsto assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Both Lessor and Lessee should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change. (b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys' fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker.
(c) Lessor and Lessee agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 12 of 15
during such last full month. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions.

30. Subordination; Attornment; Non-Disturbance.

34. Signs. Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs during the last 6 months of the term hereof. Except for ordinary "For Sublease" signs, Lessee shall not place any sign upon the Premises without Lessor's prior written consent. All signs must comply with all Applicable Requirements.

INITIALS INITIALS
© 2019 AIR CRE. All Rights Reserved. Last Edited: 4/10/2025 1:55 PM LG-15.23, Revised 10-22-2020 Page 13 of 15
consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasonsfor such determination, the determining party shall furnish itsreasons in writing and in reasonable detail within 10 business days following such request.

37. Guarantor.

37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by AIR CRE.

39. Options. If Lessee is granted any Option, as defined below, then the following provisions shall apply.

39.3 Multiple Options. In the event that Lessee has any multiple Optionsto extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.

40. Multiple Properties. If the Premises are a part of a group of properties controlled by Lessor, Lessee agreesthat it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care ofsaid properties, including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee also agreesto pay its fairshare of common expenses incurred in connection with such rules and regulations.

42. Reservations. Lessor reservesto itself the right, from time to time, to grant, without the consent or joinder of Lessee,such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long assuch easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documentsreasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions.

45. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.

47. Amendments. This Lease may be modified only in writing, signed by the Partiesin interest at the time of the modification. Aslong asthey do not materially 56 ________
________

INITIALS
Last Edited: 4/10/2025 1:55 PM

Page 14 of 15 ends

West Sacramento City CouncilApril 30, 2025

West Sacramento City Council
April 30, 2025