Document:

Exhibit 10.32

 

SHOPPING CENTER LEASE

 

Between

Regency
Centers, L.P.

(Landlord)

 

And

 

Wilshire
State Bank

(Tenant)

 

At

 

Woodman Van Nuys Shopping Center

Arleta, CA

 

Dated  November 19, 2009

 

	
   

  	
   

  	
  REGENCY

  CENTERS

  	
  INITIAL

  HERE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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WOODMAN VAN NUYS

SHOPPING CENTER LEASE

 

THIS LEASE, made as of the 19th day of November, 2009, by and between
Regency Centers, L.P., a Delaware Limited Partnership (herein called
“Landlord”), and Wilshire State Bank, a California corporation (herein called
“Tenant”).

 

In consideration of the obligations of Tenant to pay
rent and other charges as herein provided and in consideration of the other
terms, covenants and conditions hereof, Landlord hereby leases to Tenant and
Tenant hereby leases from Landlord the premises described herein for the term
and subject to the terms and conditions set forth herein.

 

ARTICLE 1. INTRODUCTORY
PROVISIONS

 

1.1          FUNDAMENTAL
LEASE PROVISIONS.

 

Certain fundamental provisions are presented in this Section in
summary form to facilitate convenient reference by the parties hereto:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a) 
  Tenant’s Trade Name

  	
  Wilshire
  State Bank

  (Section 7.1)

  
	
   

  	
   

  
	
  (b) 
  Term

  	
  Sixty
  (60) months

  (Section 3.1)

  
	
   

  	
   

  
	
  (c) 
  Premises Space Number

  	
  9700
  Woodman Avenue, Suite A-6

  Arleta, California 91331

  (Exhibit “B” - Part 2)

  
	
   

  	
   

  
	
  (d) 
  GLA in Premises

  	
  1,150
  square feet

  (Section 1.5)

  
	
   

  	
   

  
	
  (e) 
  GLA in Landlord’s Building

  	
  107,614
  square feet

  (Section 1.5)

  
	
   

  	
   

  
	
  (f) 
  Tenant’s Proportionate Share

  	
  Tenant’s
  proportionate share shall be defined as the percentage that the gross
  leasable area (“GLA”) of the Premises bears to the entire gross leasable area
  of Landlord’s Building except as hereinafter provided. In determining
  Tenant’s Proportionate Share of Common Area Costs and contribution for Taxes
  and Insurance, Landlord may exclude from the GLA of the Landlord’s Building
  any premises containing 7,500 12,500 or more square
  feet of GLA if the lease for such premises does not require the applicable
  tenant to pay a prorata share of Common Area Costs, Taxes or Insurance, but
  in that event, Landlord shall deduct from the Common Area Costs, Taxes or
  Insurance any amounts payable by any such tenants specifically for items
  included in the Common Area Costs, Taxes or Insurance.

  
	
   

  	
   

  
	
  (g)  Minimum Annual Rent:

  	
   

  	
   

  	
   

  	
   

  	
  Minimum
  Rent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Minimum
  Rent

  	
   

  	
  (Per
  Sq.ft. of

  	
   

  	
  Minimum
  Rent

  	
   

  
	
   

  	
  Months

  	
   

  	
  (Monthly)

  	
   

  	
  GLA)

  	
   

  	
  (Annual)

  	
   

  
	
   

  	
  1 - 12

  	
   

  	
  $

  	
  2,242.50

  	
   

  	
  $

  	
  23.40

  	
   

  	
  $

  	
  26,910.00

  	
   

  
	
   

  	
  13 -
  24

  	
   

  	
  $

  	
  2,287.54

  	
   

  	
  $

  	
  23.87

  	
   

  	
  $

  	
  27,450.50

  	
   

  
	
   

  	
  25 -
  36

  	
   

  	
  $

  	
  2,333.54

  	
   

  	
  $

  	
  24.35

  	
   

  	
  $

  	
  28,002.50

  	
   

  
	
   

  	
  37 -
  48

  	
   

  	
  $

  	
  2,379.54

  	
   

  	
  $

  	
  24.83

  	
   

  	
  $

  	
  28,554.50

  	
   

  
	
   

  	
  49 -
  60

  	
   

  	
  $

  	
  2,427.46

  	
   

  	
  $

  	
  25.33

  	
   

  	
  $

  	
  29,129.50

  	
   

  
	
   

  	
   

  
	
   

  	
  plus
  applicable sales tax, if any (Section 4.2)

  
	
   

  	
   

  
	
  (h)  Percentage Rent

  	
  N/A

  
	
   

  	
   

  
	
  (i) 
  Commencement Date

  	
  One
  hundred twenty (120) days after the date of Landlord’s delivery of the
  Premises to Tenant.

  (Section 3.1)

  
	
   

  	
   

  
	
  (j)  Use

  	
  The
  Premises shall be used for retail banking and general office.

  (Article 7)

  The use is subject to all exclusives granted by Landlord in the Shopping
  Center which are currently set forth in Exhibit J

  
	
   

  	
   

  
	
  (k)
   Guarantor(s) (if none, so state)

  	
  N/A

  
	
   

  	
   

  
	
  (l)
   Default Rate:

  	
  The
  lesser of twelve percent (12%) per annum or the maximum lawful rate of
  interest permitted by applicable law

  
	
   

  	
   

  
	
  (m) 
  Security Deposit

  	
  N/A

  
	
   

  	
   

  
	
  (n) 
  Brokers

  	
  Regency
  Centers, L.P. representing Landlord and Transwestem representing Tenant
  (Section 25.5)

  

 

	
   

  	
   

  	
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1

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (o) 
  Estimated Common Area Costs for 2009

  	
  $4.16

  per square foot per
  annum (Article 8)

  (Subject to annual
  adjustment)

  
	
   

  	
   

  
	
  (p) 
  Estimated Taxes for 2009

  	
  $1.65

  per square foot per
  annum (Article 5)

  (Subject to annual
  adjustment)

  
	
   

  	
   

  
	
  (q) 
  Estimated Insurance for 2009

  	
  $0.58

  per square foot per
  annum (Article 11)

  (Subject to annual
  adjustment)

  
	
   

  	
   

  
	
  (r) 
  Advertising and Promotion Fund (if none, so state)

  	
  N/A

  
	
   

  	
   

  
	
  (s) 
  Estimated Initial Monthly Payments Required

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Minimum Rent

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $2,242.50

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Additional Rent

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Common Area Costs

  	
   

  	
  $

  	
  398.67

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Taxes

  	
   

  	
  $

  	
  158.13

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Insurance

  	
   

  	
  $

  	
  55.58

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Advertising and Promotion Fund (if none, so state)

  	
  N/A

  
	
  Pylon Signage Fee (if none, so state)

  	
  N/A

  
	
  Satellite Fee (if none, so state)

  	
  N/A

  
	
   

  	
   

  
	
  Total Monthly Additional Rent

  	
  $612.38

  
	
   

  	
   

  
	
  State and County Sales Tax

  	
  N/A

  
	
   

  	
   

  
	
  Total Monthly Payment at Commencement Date

  	
  $2,854.88

  
	
   

  	
   

  
	
  (t) 
  Address for Notice

  	
   

  
	
   

  	
   

  
	
  To Landlord

  	
  c/o Regency Centers Corporation

  One Independent Drive

  Suite 114

  Jacksonville, Florida 32202-5019

  Attention: Lease Administration

   

  With a copy to:

  c/o Regency Centers Corporation

  One Independent Drive

  Suite 114

  Jacksonville, Florida 32202-5019

  Attention: Legal Department

   

  With a copy to:

  c/o Regency Centers Corporation

  915 Wilshire Boulevard Suite 2200

  Los Angeles, California 90017

  Attention: Property Management

  
	
   

  	
   

  
	
  To Tenant:

  	
  Wilshire State Bank

  3200 Wilshire Boulevard, Suite 1400

  Los
  Angeles, California 90010

  
	
   

  	
   

  
	
  (u) 
  Tenant Allowance

  	
  $10.00
  per square foot of the Premises; subject, however, to the terms and conditions
  of the Tenant Allowance provision of this Lease

  
																			

 

	
   

  	
   

  	
  REGENCY

  CENTERS

  	
  INITIAL

  HERE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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2

 

LEASE
PROVISIONS

 

1.2          REFERENCES AND CONFLICTS.

 

References
appearing in Section 1.1 are to designate some of the other places in this
Lease where additional provisions applicable to the particular Fundamental
Lease Provisions appear. Each reference in this Lease to any of the Fundamental
Lease Provisions contained in Section 1.1 shall be construed to
incorporate all of the terms provided for under such provisions, and such
provisions shall be read in conjunction with all other provisions of this Lease
applicable thereto. If there is any conflict between any of the Fundamental
Lease Provisions set forth in Section 1.1 and any other provision of this
Lease, the latter shall control.

 

1.3          EXHIBITS.

 

The
following drawings and special provisions are attached hereto as exhibits and
hereby made a part of this Lease:

 

	
  (a)

  	
  Exhibit “A”

  	
  Legal
  Description of the Shopping Center Land as presently constituted

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Exhibit “B”

  	
  Part 1
  - Site plan of Shopping Center Land; and

  
	
   

  	
   

  	
  Part 2
  - Leasing Plan. (The Premises is identified on the Leasing Plan.)

  
	
   

  	
   

  	
   

  
	
  (c)
  

  	
  Exhibit “C”

  	
  Description
  of Tenant’s Work and Work to be performed by Landlord, if any, in the
  Premises; and “C-1” Shopping Center Signage Criteria

  
	
   

  	
   

  	
   

  
	
  (d)

  	
  Exhibit “D”

  	
  Intentionally
  Omitted

  
	
   

  	
   

  	
   

  
	
  (e)

  	
  Exhibit “E”

  	
  Requirements &
  Restrictions

  
	
   

  	
   

  	
   

  
	
  (f)

  	
  Exhibit “F”

  	
  Tenant
  Improvements

  
	
   

  	
   

  	
   

  
	
  (g)

  	
  Exhibit “G”

  	
  Signage

  
	
   

  	
   

  	
   

  
	
  (h)

  	
  Exhibit “H”

  	
  Intentionally
  Omitted

  
	
   

  	
   

  	
   

  
	
  (i)

  	
  Exhibit “I”

  	
  Intentionally
  Omitted

  
	
   

  	
   

  	
   

  
	
  (j)

  	
  Exhibit “J”

  	
  Existing
  Exclusives granted by Landlord at Shopping Center

  

 

1.4          THE SHOPPING CENTER; LANDLORD’S
BUILDING.

 

The
“Shopping Center” means the land described in Exhibit “A” and improvements
thereon constituting an integrated retail shopping center, as the same may be
modified from time to time throughout the Term of this Lease. The structure or
structures shown on Exhibit “B” as “Landlord’s Building,” as the same may
be altered, reduced or expanded from time to time throughout the Term of this
Lease, is hereinafter called the “Landlord’s Building.” Landlord may at any
time and from time to time change the shape, size, location, number, height and
extent of the improvements in the Shopping Center and eliminate or add any
improvements to any portion of the Shopping Center and add land thereto or
eliminate land therefrom.

 

1.5          GROSS LEASABLE AREA.

 

At
the Commencement Date, GLA is estimated to be, with respect to the Premises,
the number of square feet set forth in Section 1.1(d) and, with
respect to the Landlord’s Building, the number of square feet set forth in
Section 1.1(e). GLA will change with additions or deletions to the Landlord’s
Building and/or the Premises. The GLA is measured from the exterior face of
exterior walls, the exterior face of service corridor walls and the centerline
of interior demising walls. No deduction shall be made for columns, stairs,
elevators or any internal construction or equipment. Unless another provision
of this Lease expressly grants to Tenant a right to certify and/or remeasure
the GLA of the Premises, Tenant shall have no such right to certify and/or
remeasure or otherwise dispute the GLA of the Premises set forth in
Section 1.1(d) above.

 

ARTICLE 2.
PREMISES

 

2.1          LEASE OF PREMISES.

 

Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises
for the Term, at the rent, and upon the terms, covenants and conditions herein set
forth.

 

2.2          PREMISES DEFINED.

 

The
term “Premises” means the space situated in the Landlord’s Building in the
location marked on Exhibit “B” and shall consist of the space thereat
within the walls, structural floor and the bottom of the roof of Landlord’s
Building. The demised Premises shall include only the appurtenances
specifically granted in this Lease, Landlord specifically excepting and
reserving for itself the roof, the air space above the roof, the space below
the floor, the exterior portions of the demised Premises (other than the store
front), and the right to install pipes, ducts, conduits, wire, solar panels and
other mechanical equipment serving other portions, tenants and occupants of the
Shopping Center under or above the Premises, without the same constituting and
actual or constructive eviction of Tenant.

 

	
   

  	
   

  	
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3

 

2.3          DELIVERY OF PREMISES.

 

Landlord
agrees to deliver to Tenant, and Tenant agrees to accept from Landlord,
possession of the Premises when Landlord advises Tenant in writing that the
Landlord’s Work in the Premises (if any) has been sufficiently completed to
permit Tenant’s Work to begin or when Tenant takes possession of the Premises,
whichever first occurs. Landlord’s notice thereof shall constitute delivery of
the Premises without further act by either party. Landlord will deliver
possession of the Premises to Tenant with the
heating, ventilation and air conditioning (HVAC) unit, plumbing, and electrical
systems in good working order with the rest of the Premises
in its current “as-is” condition with the addition of only those items
of work (if any) described on Exhibit “C”. If Landlord encounters delays
in delivering possession of the Premises to Tenant, this Lease will not be void
or voidable, nor will Landlord be liable to Tenant for any loss or damage
resulting from such delay. If the delay in possession is caused by Tenant
(including delays caused by Tenant’s failure to supply the information referred
to in the following sentence), then the date of Landlord’s delivery of the
Premises to Tenant shall be deemed to be the date such delivery would have
occurred but for Tenant’s delay. Notwithstanding the foregoing, Landlord will not be obligated to shall deliver
possession of the Premises to Tenant until within
thirty (30) days after Landlord has received from
Tenant all of the following: (i) a copy of this Lease fully executed by
Tenant, and a Guaranty, if any, executed by the Guarantor(s); (ii) the
Security Deposit and the first installment of Minimum Annual Rent; and (iii)
copies of policies or certificates of insurance as required under
Article 11 of this Lease. If Tenant occupies the Premises prior to the Commencement
Date, such early occupancy shall be subject to all of the terms and conditions
of this Lease, and Tenant will not interfere with Landlord in the completion of
Landlord’s Work (if any). Landlord will give Tenant access for locks to be
changed upon: (i) Tenant’s acceptance of the Premises,
(ii) Landlord’s receipt of two sets of plans and specifications set forth
in Exhibit “C”, and (iii) Landlord’s receipt of a copy of the
contractor’s insurance certificate. Tenant will pay all expenses associated
with changing the locks.

 

2.4          OPENING OF PREMISES.

 

On
or before ten (10) days after delivery of possession of the Premises to
Tenant, Tenant shall commence the Tenant’s Work specified in Exhibit “C”,
diligently and continually proceed to completion, and open for business on or
before the Commencement Date specified in Section 1.1(i). In relation to
Tenant’s Work, Tenant shall execute the Notice of Commencement as Owner
identifying Landlord only as the fee simple titleholder for purposes of
permitting. By opening for business, Tenant shall be deemed to have
acknowledged that all work (if any) required to be performed by Landlord in
connection with the Premises and any and all other obligations to be performed
by Landlord on or before the opening of the Premises have been fully performed,
and that the Premises are at such time complete and in good, sanitary and
satisfactory condition and repair without any obligation on Landlord’s part to
make any alterations, upgrades or improvements thereto.

 

2.5          TENANT’S WORK.

 

In
addition to Tenant’s obligations set forth in Exhibit “C”, it shall be
Tenant’s responsibility and obligation to obtain all building, occupancy, use
and other governmental permits and/or approvals required in connection with the
construction of the Tenant’s Work, a certificate of occupancy for the Premises
upon completion thereof and Tenant’s use thereof, including, without
limitation, the payment of all utility connection/hookup/meter fees and charges
and any development impact fees, transportation uniform mitigation fees and/or
school mitigation fees assessed with respect to the Premises and/or Tenant’s
use and/or Tenant’s Work as opposed to the Shopping Center. In the event
Landlord pays any such fees on Tenant’s behalf, Tenant shall reimburse Landlord
for such fees as Additional Rent within ten (10) days of Tenant’s receipt
of an invoice therefor from Landlord.

 

ARTICLE 3.
TERM

 

3.1          TERM OF THIS LEASE.

 

The
Term of this Lease shall commence on the Commencement Date specified in
Section 1,1(i) and shall continue for the number of months set forth
in Section 1.1 (b).

 

ARTICLE 4.
RENT

 

4.1          TENANT’S AGREEMENT TO PAY RENT.

 

Tenant
hereby agrees to pay Minimum Annual Rent and Additional Rent. The term “Rent”
includes the Minimum Annual Rent and Additional Rent.

 

4.2          MINIMUM RENT.

 

The
minimum amount of rent Tenant shall pay Landlord for each Lease Year is the
amount set forth in Section 1.1(g) (the “Minimum Annual Rent”).
Minimum Annual Rent for the period from the Commencement Date to the first day
of the month following such date shall be prorated on a daily basis and shall
be payable with and in addition to the first installment of Minimum Annual
Rent.

 

The
Minimum Annual Rent for each Lease Year shall be payable in twelve (12) equal
monthly installments, in advance, on the first day of each calendar month. The
first installment of Rent shall be due on Tenant’s execution and delivery of
this Lease to Landlord.

 

4.3          LEASE YEAR DEFINED.

 

The
“First Lease Year” means the period beginning on the Commencement Date and
ending on the last

 

	
   

  	
   

  	
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4

 

day
of the twelfth full calendar month thereafter. “Lease Year” means each
successive twelve (12) month period after the First Lease Year occurring during
the Term.

 

4.4MONTHLY REPORTING.

 

Tenant
shall furnish to Landlord within twenty (20) days after the end of each
calendar month during the Term a complete statement, certified by Tenant (or a
responsible officer thereof if Tenant is a corporation or limited liability
company), of the amount of Gross Sales made from the Premises during said
month, the statement to be in such form and style and contain such details and
breakdown as Landlord may require. Tenant shall also furnish to Landlord with
each such monthly statement a copy of any sales tax report filed with any
taxing authority.

 

4.5GROSS SALES.

 

(a)”Gross Sales” means the actual prices of all goods, wares, internet
based sales and merchandise sold and-the actual charges for all services
performed by Tenant or by any subtenant, licensee, concessionaire or other
person in, at, from, or arising out of the use of the Premises, whether
wholesale or retail, whether for cash or credit, or otherwise, and includes the
value of all consideration received or promised for any of the foregoing,
without reserve or deduction for inability or failure to collect, including,
but not limited to, sales and services:—(i) where the orders therefor
originate in, at, from or arising out of the use of the Premises, whether
delivery or performance is made from the Premises or from some other place and
regardless of the place of bookkeeping for, payment of, or collection of any
account; or (ii) made or performed by mail; telephone, or telecopy orders
received or filled in, at or from the Premises; or (iii) made or performed
by means of mechanical and other vending devices in the Premises; or
(iv) which Tenant, or any subtenant, licensee, concessionaire or other
person, in the normal and customary course of its business, would credit or
attribute to its operation at the Premises or any part thereof. Any deposit
not-refunded shall be included in Gross Sales in the month in which such
deposit is received.

 

(b)The following shall be excluded from Gross Sales: (i) any
exchange of merchandise between stores of Tenant when such exchange is made
solely for the convenient operation of Tenant’s business and not for the
purpose of consummating a sale made in, at or from the Premises; (ii) returns
to shippers or manufacturers; (iii) cash or credit refunds to customers on
transactions previously reported as Gross Sales; (iv) sales of fixtures,
machinery and equipment, which are not stock in trade, after use thereof in the
conduct of Tenant’s business; and (v) amounts which are separately stated
and collected from customers and which are paid by Tenant to any government for
any sales or excise tax. No franchise, capital stock tax, tax based upon assets
or net worth or gross receipts tax, and no income or similar tax based on
income or profits shall be deducted from Gross Sales.

 

4.64.4     ADDITIONAL RENT.

 

Tenant
shall pay, as additional rent (herein sometimes collectively called “Additional
Rent”), all sums of money or charges of whatsoever nature (except Minimum
Annual Rent and Percentage Rent, if any) required to be paid by Tenant to
Landlord pursuant to this Lease, whether or not the same is designated as
“Additional Rent.”

 

4.74.5     WHERE RENT PAYABLE AND TO WHOM;
NO DEDUCTION; LATE CHARGE.

 

All
Rent payable by Tenant under this Lease shall be paid to Landlord on or before
the first fifth (5th) day of each
month without prior notice or demand therefor (except where such prior demand
is expressly provided for in this Lease), without any deductions, set offs or
counterclaims whatsoever, at the place to which notices are to be sent to
Landlord or to such payee and at such place as may be designated by Landlord.
If any payment of Rent or other charges due hereunder is not received by
Landlord in good funds on its due date, Tenant will pay to Landlord a late
charge of five percent (5%) of the amount due.

 

ARTICLE 5.
TAXES AND ASSESSMENTS

 

5.1          TENANT’S PROPORTIONATE SHARE OF TAXES
AND PAYMENT.

 

Tenant
shall pay to Landlord, as Additional Rent, Tenant’s Proportionate Share of all
real estate taxes, current and future, and other ad valorem taxes and
assessments of every kind and Tenant’s Proportionate Share of any reasonable
costs and expenses (such as real estate tax consultant fees) that are incurred
by Landlord in a good faith effort to reduce the amount assessed by the taxing
authority (“Taxes”). In the event any assessments may be paid in annual
installments, only the amount of such annual installment and statutory interest
shall be included within the computation of the annual Taxes for the Lease Year
in question. Tenant shall pay its Proportionate Share of Taxes at the times and
in the manner provided in Section 8.6.

 

5.2          RENT TAX.

 

Should
any governmental taxing authority acting under any present or future law,
ordinance or regulation levy, assess or impose a tax, excise or assessment
(other than an income or franchise tax) upon or against or measured by the
Rent, or any part of it, Tenant shall pay such tax, excise and/or assessment
when due or shall on demand reimburse Landlord for the amount thereof, as the
case may be.

 

5.3          PERSONAL PROPERTY TAXES.

 

Tenant
shall be liable for, and shall pay before delinquency, all taxes and
assessments (real and personal) levied against (a) any personal property
or trade fixtures placed by Tenant in or about the

 

	
   

  	
   

  	
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Premises
(including any increase in the assessed value of the Premises based upon the
value of any such personal property or trade fixtures), and (b) any Tenant
improvements or alterations in the Premises (whether installed and/or paid for
by Landlord or Tenant). If any such taxes or assessments are levied against
Landlord or Landlord’s property, Landlord may, after written notice to Tenant
(and under proper protest if requested by Tenant), pay such taxes and
assessments, and Tenant shall reimburse Landlord therefor within ten
(10) days after demand by Landlord; provided, however, Tenant, at its sole
cost and expense, shall have the right, with Landlord’s cooperation, to bring
suit in any court of competent jurisdiction to recover the amount of any such
taxes and assessments so paid under protest.

 

ARTICLE 6.
TENANT’S CONDUCT OF BUSINESS

 

6.1          HOURS.

 

Tenant
agrees that, from and after the Commencement Date, Tenant will continuously and
uninterruptedly keep open and operate its entire store for no less than forty (40) hours per week in the Premises
for the purpose specified in Section 1,1(j) and under the trade name
specified in Section 1.1(a) with the public daily during such hours as are
customary in the Shopping Center.  However, if Tenant is unable to comply with
the provisions of this Section by reason of national holidays, strikes,
act of God, destruction of the Premises by fire, or any other reason or cause
beyond Tenant’s control. Tenant shall not be deemed to be in default under this
Lease. Tenant shall be allowed access to the Premises twenty-four (24) hours
each day.

 

ARTICLE 7.
USE OF PREMISES

 

7.1          SOLE USE AND TRADE NAME.

 

Tenant
shall use the Premises for the purpose specified in Section 1.1(j) and
for no other purpose whatsoever and shall conduct its business in the Premises
solely under the trade name specified in Section 1.1(a). Nothing in this
Lease shall be construed to grant Tenant an exclusive right to the purpose
specified in Section 1.1(j) or any other purpose or use. Tenant shall
procure, at Tenant’s sole expense, any permits or licenses required for the
transaction of business in the Premises.

 

7.2          REQUIREMENTS AND RESTRICTIONS.

 

Tenant
agrees to comply with the Requirements and Restrictions set forth on
Exhibit “E” attached hereto.

 

ARTICLE 8.
COMMON AREAS

 

8.1          MAINTENANCE.

 

Landlord
agrees to maintain, as part of Common Area Costs, the Common Areas including
the roof in good condition; provided, however, that the manner in which the
Common Areas shall be maintained shall be solely determined by Landlord. If any
owner or tenant of any portion of the Shopping Center maintains Common Areas
located upon its parcel or premises (Landlord shall have the right, in its sole
discretion, to allow any purchaser or tenant to so maintain Common Areas
located upon its parcel or premises and to be excluded from participation in the
payment of Common Area Costs), Landlord shall not have any responsibility for
the maintenance of that portion of the Common Areas and Tenant shall have no
claims against Landlord arising out of any failure of such owner or tenant to
so maintain its portion of the Common Areas.

 

8.2          COMMON AREAS DEFINED.

 

“Common
Areas” means all areas, facilities, and improvements provided in the Shopping
Center for the convenience and use of patrons of the Shopping Center, and shall
include, but not be limited to, all areas, all parking areas and facilities,
sidewalks, stairways, service corridors, truckways, ramps, loading docks,
delivery areas, landscaped areas, access and interior roads, lighting
facilities and similar areas and facilities situated within the Shopping Center
which are not reserved for the exclusive use of any Shopping Center occupants.

 

8.3          LANDLORD’S CONTROL.

 

Landlord
shall at all times have the sole and exclusive control, management and
direction of the Common Areas and the right to make reasonable changes to the
Common Areas, and may at any time exclude and restrain any person from use or
occupancy thereof. The rights of Tenant in and to the Common Areas are subject
to the rights of others to use the same in common with Tenant. Landlord may at
any time and from time to time close all or any portion of the Common Areas to
make repairs, improvements, alterations or changes and, to the extent necessary
in the opinion of Landlord, to prevent a dedication thereof or the accrual of
any rights to any person or to the public therein.

 

8.4          EMPLOYEE PARKING.

 

Landlord
may from time to time designate a particular parking area or areas to be used
by its tenants and their employees. If Tenant or any of its employees fail to
park their vehicle in any such designated parking areas, Landlord, in its sole
discretion, may give Tenant notice of such violation and, if the violation is
not corrected within two (2) days after said notice is given, Tenant shall
pay to Landlord an amount equal to Ten Dollars ($10.00) per day for each
violating vehicle calculated from and including the day on which notice was
given, to and including the day when all violations by Tenant and its employees
cease. In no event, however, shall Landlord be required to enforce any parking
obligation stated herein.

 

	
   

  	
   

  	
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8.5          COMMON AREA COSTS.

 

“Common
Area Costs” means all costs incurred in a manner deemed by Landlord to be
reasonable and appropriate and for the best interests of the Shopping Center in
connection with the management, operation, maintenance, replacement and repair
of the Common Areas, including but not limited to security, landscaping,
utilities, painting, striping, lighting, management fee of four percent (4%) of
gross revenues and pest control among other items.

 

8.6          TENANT’S PROPORTIONATE SHARE OF COMMON
AREA COSTS, TAXES AND INSURANCE.

 

Tenant
agrees to pay to Landlord, as Additional Rent, Tenant’s Proportionate Share of
Common Area Costs, Taxes and Insurance (as hereinafter defined) in the
following manner:

 

(a)           Tenant
shall pay Landlord on the Commencement Date and on the first day of each
calendar month of the Term thereafter an amount estimated by Landlord to be
Tenant’s monthly Proportionate Share of the Common Area Costs, Taxes and
Insurance. Landlord may adjust said amount at the end of any calendar month on
the basis of Landlord’s experience and reasonably anticipated costs.

 

(b)           Within
ninety (90) days following the end of each calendar year, or as soon as
reasonably possible thereafter, Landlord shall endeavor to furnish Tenant a
statement covering such year just ended, showing the Common Area Costs, Taxes
and Insurance and the amount of Tenant’s Proportionate Share of such costs for
such year and the payments made by Tenant with respect to such year. If
Tenant’s Proportionate Share of such costs is less than Tenant’s payments so
made, Tenant shall be entitled to a credit of the difference or, if such share
is greater than Tenant’s said payments, Tenant shall pay Landlord the
difference within thirty (30) days after receipt of such statement.

 

(c)           Any
failure or delay by Landlord in delivering any estimated or final statement
pursuant to this Section 8.6 shall not constitute a waiver of Landlord’s
right to receive Tenant’s payment of Tenant’s Proportionate Share of Common
Area Costs, Taxes and Insurance.

 

ARTICLE 9.
HAZARDOUS SUBSTANCES

 

9.1          RESTRICTION ON USE.

 

Tenant
shall not use or permit the use of the Premises for the generation, storage,
treatment, use, transportation, handling or disposal of any chemical, material
or substance which is regulated as toxic or hazardous or exposure to which is
prohibited, limited or regulated by any governmental authority, or which, even
if not so regulated, may or could pose a hazard to the Premises, Shopping
Center or property adjacent thereto or to the health or safety of persons on
the Premises or other tenants or occupants of the Shopping Center or property
adjacent thereto, and no such chemical, material or substance shall be brought
onto the Premises without the Landlord’s express written approval. Tenant
agrees that it will at all times observe and abide by all laws and regulations
relating to the handling of such materials and will promptly notify Landlord of
(a) the receipt of any warning notice, notice of violation, or complaint
received from any governmental agency or third party relating to environmental
compliance, and (b) any release of hazardous materials on the Premises
and/or Shopping Center. In addition, Tenant shall immediately notify Landlord
concerning any water intrusion or leakage in the Premises. Tenant shall provide
Landlord with immediate access to the Premises in order to assess the damage.
Repairs to the Premises shall be made by the party responsible. Should Tenant
be responsible for the repairs and fail to correct immediately, Landlord shall
make the repairs at Tenant’s expense. Tenant shall, in accordance with
applicable laws, carry out, at its sole cost and expense, any remediation
required as a result of the release of any hazardous substance by Tenant or by
Tenant’s agents, employees, contractors or invitees, from the Premises and/or
Shopping Center. Notwithstanding the foregoing, Tenant shall have the right to
bring on to the Premises reasonable amounts of cleaning materials and the like
necessary for the operation of Tenant’s business, but Tenant’s liability with
respect to such materials shall be as set forth in this Article. The term
“Hazardous Material” includes, without limitation (i) those substances
included within the definitions of “hazardous substances”, “hazardous
materials”, “toxic substances” or “solid waste” under all present and future
federal, state and local laws (whether under common law, statute, rule,
regulation or otherwise) relating to the protection of human health or the
environment, including, without limitation, California Senate Bill 245
(Statutes of 1987, chapter 1302), the Safe Drinking Water and Toxic Enforcement
Act of 1986 (commonly known as Proposition 65) and the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 and the
Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801. et seq.,
all as heretofore and hereafter amended, or in any regulations promulgated
pursuant to said laws; (ii) those substances defined as “Hazardous Wastes”
in Section 25117 of the California Health & Safety Code or as
“Hazardous Substances” in Section 25316 of the California Health &
Safety Code, or in any regulations promulgated pursuant to said laws;
(iii) such other substances, materials and wastes which are or become
regulated under applicable local, state or federal law or by the United States
government or which are or become classified as hazardous or toxic under
federal, state or local laws or regulations, including, without limitation,
California Health & Safety Code, Division 20, and Title 26 of the
California Code of Regulations; and (iv) any material, waste or substance
which contains petroleum, asbestos or polychlorinated bipheyls, designated as a
“hazardous substances” pursuant to Section 311 of the Clean Water Act of
1977, 33 U.S.C. Sections 1251, et seq. (33 U.S.C.§1321) or listed pursuant to
Section 307 of the Clean Water Act of 1977 (U.S.C.§1317) or contains any
flammable, explosive or radioactive material.

 

	
   

  	
   

  	
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9.2          INDEMNIFICATION.

 

To
the fullest extent permitted by law, Tenant agrees to promptly indemnify,
protect, defend and hold harmless Landlord and Landlord’s partners, officers,
directors, employees, agents, successors and assigns (collectively, “Landlord
Parties”) from and against any and all claims, damages, judgments, suits,
causes of action, losses, liabilities, penalties, fines, expenses and costs
(including, without limitation, clean-up, removal, remediation and restoration
costs, sums paid in settlement of claims, attorneys’ fees, consultant fees and
expert fees and court costs) which arise or result from any environmental
contamination on, in, under or about the Premises, Landlord’s Building or any
other portion of the Shopping Center and which are caused or permitted by
Tenant or any of Tenant’s agents, employees, subtenants, assignees, licensees,
contractors or invitees (collectively, “Tenant Parties”).

 

9.3          SURVIVAL.

 

The
provisions of this Article shall survive the termination of this Lease.

 

ARTICLE 10.
ALTERATIONS TO PREMISES

 

10.1        ALTERATIONS; DAMAGES.

 

Tenant
shall make no structural alterations, additions or changes in or to the
Premises without Landlord’s prior written consent. In no event shall Tenant
make or cause to be made any penetration through any roof, floor or exterior or
corridor wall without the prior written consent of Landlord. Tenant shall be
responsible for any and all damages resulting from any alteration, addition or
change Tenant makes, whether or not Landlord’s consent therefor was obtained.
Any and all alterations, additions and changes made to the Premises which are
consented to by Landlord shall be made under the supervision of a licensed
architect or licensed structural engineer and in accordance with plans and
specifications approved in writing by the Landlord before the commencement of
the work and all necessary governmental approvals and permits, which approvals
and permits Tenant shall obtain at its sole expense. All contractors and
subcontractors utilized by Tenant shall be subject to Landlord’s prior written
approval. Prior to proceeding with any alteration, Tenant shall provide
Landlord with at least fifteen (15) days prior written notice. In the event
that Tenant makes any alterations, Tenant agrees to carry “Builder’s All Risk”
insurance in a customary and reasonable amount approved by Landlord covering
the construction of such alterations. In addition, Landlord may, in its
discretion, require Tenant to obtain a lien and completion bond or some
alternate form of security satisfactory to Landlord in an amount sufficient to ensure
the lien-free completion of such alterations and naming Landlord as a
co-obligee. Upon completion of any alterations, Tenant agrees to cause a Notice
of Completion to be recorded in the office of the Recorder of the county in
which the Shopping Center is located in accordance with Section 3093 of
the Civil Code of the State of California or any successor statute, and Tenant
shall deliver to the Shopping Center management office a reproducible copy of
the “as built” drawings of the alterations. All work with respect to any
alterations, additions and changes must be done in a good and workmanlike
manner and diligently prosecuted to completion to the end that the Premises
shall at all times be a complete unit except during the period of the work.
Subject to the terms hereof, any work done by Tenant without Landlord’s consent
shall be returned to its original condition at Tenant’s expense upon request by
Landlord. Tenant shall pay to Landlord, as Additional Rent, the reasonable
costs of Landlord’s engineers and other consultants for review of all plans,
specifications and working drawings for Tenant’s alterations, within ten
(10) business days after Tenant’s receipt of invoices either from Landlord
or such consultants. In addition to such costs, Tenant shall pay to
Landlord, within ten (10) twenty
(20) business days after completion of any alterations, the actual,
reasonable costs incurred by Landlord for services rendered by Landlord’s
management personnel and engineers to coordinate and/or supervise any of the
alterations to the extent such services are provided in excess of or after the
normal on-site hours of such engineers and management personnel, and such amount shall not exceed Two Thousand
Five Hundred Dollars ($2,500,00).

 

10.2        COMPLIANCE WITH LAWS.

 

Any
permitted changes, alterations and additions made by Tenant shall be performed
strictly in accordance with applicable laws, rules, regulations and building
codes relating thereto including, without limitation, the provisions of Title
III of the Americans with Disabilities Act of 1990. Tenant shall have the work
performed (i) in such a manner so as not to obstruct the access to the
Premises or to the premises of any other tenant or obstruct the Common Areas,
(ii) so as not to interfere with the occupancy of any other tenant of the
Shopping Center, and (iii) at such times, in such manner and subject to
such rules and regulations as Landlord may from time to time reasonably
designate. Throughout the performance of Tenant’s alterations, Tenant shall
obtain, or cause its contractors to obtain, workers compensation insurance and
commercial general liability insurance in form and substance satisfactory to
Landlord and naming Landlord an additional insured thereunder.

 

10.3        INSURANCE AND RECONSTRUCTION.

 

In
the event Tenant shall make any alterations, additions or changes to the
Premises, none of such alterations, additions or changes need be insured by
Landlord under such insurance as Landlord may carry upon the Landlord’s
Building, nor shall Landlord be required under any provisions of this Lease to
reconstruct or reinstall any such alterations, additions or changes in the
event of casualty loss, it being understood and agreed that all such
alterations, additions or changes shall be insured by Tenant pursuant to Article 11
and reconstructed by Tenant (at Tenant’s sole expense) in the event of a
casualty loss pursuant to Article 12.

 

	
   

  	
   

  	
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ARTICLE 11.
LIABILITY, INDEMNITY AND INSURANCE

 

11.1        LANDLORD’S LIABILITY.

 

Landlord
shall not be liable for any damage or liability of any kind or for any injury
to or death of any persons or damage to any property on or about the Premises
from any cause whatsoever, except to the extent any such matter is not covered
by insurance required to be maintained by Tenant under this Lease and is
attributable to Landlord’s gross negligence or willful misconduct.

 

11.2        INDEMNIFICATION BY TENANT.

 

Tenant
hereby agrees to indemnify and save Landlord harmless from all claims, actions,
judgments, suits, losses, fines, penalties, demands, costs and expenses and
liability whatsoever, including reasonable attorneys’ fees, expert fees and
court costs (“Indemnified Claims”) on account of (i) any damage or
liability occasioned in whole or in part by any use or occupancy of the
Premises or by any act or omission of Tenant or the Tenant Parties,
(ii) the use of the Premises and Common Areas and conduct of Tenant’s
business by Tenant or any Tenant Parties, or any other activity, work or thing
done, permitted or suffered by Tenant or any Tenant Parties, in or about the
Premises, Landlord’s Building or elsewhere on the Shopping Center; and/or
(iii) any default by Tenant of any obligations on Tenant’s part to be
performed under the terms of this Lease. In case any action or proceeding is
brought against Landlord or any Landlord Parties by reason of any such
Indemnified Claims, Tenant, upon notice from Landlord, shall defend the same at
Tenant’s expense by counsel approved in writing by Landlord, which approval
shall not be unreasonably withheld. Tenant shall not be liable for damage or
injury occasioned by the gross negligence or willful acts of Landlord or its
agents, contractors, servants or employees unless such damage or injury arises
from perils against which Tenant is required by this Lease to insure and then
only to the extent of such insurance. Tenant’s indemnification obligation under
this Section 11.2 shall survive the expiration or earlier termination of
this Lease. Tenant’s covenants, agreements and indemnification in Sections
11.1, 11.2 and 11.7, are not intended to and shall not relieve any insurance
carrier of its obligations under policies required to be carried by Tenant pursuant
to the provisions of this Lease.

 

11.3        INSURED’S WAIVER.

 

In
the event of loss or damage to the property of Landlord or Tenant, each party
will look first to its own insurance before making any claim against the other.
To the extent possible, each party shall obtain, for all policies of insurance
required by this Lease, provisions permitting waiver of subrogation against the
other party, and each party, for itself and its insurers, hereby waives the
right to make any claim against the other (or its agents, employees or
insurers) for loss or damage covered by the insurance requirements of this
Lease.

 

11.4        TENANT’S INSURANCE.

 

(a)           Tenant
agrees that, from and after the date of delivery of the Premises to Tenant,
Tenant will carry at its sole cost and expense the following types of
insurance, in the amounts specified and in the form hereinafter provided for:

 

1.             Public
Liability and Property Damage Insurance covering the Premises and Tenant’s use
thereof against claims for personal injury or death and property damage
occurring upon, in or about the Premises, such insurance to afford protection
to the limit of not less than $1,000,000.00 in respect of injury or death of
any number of persons arising out of any one occurrence and such insurance
against property damage to afford protection to the limit of not less than
$500,000.00 in respect to any instance of property damage. The insurance
coverage required under this Section 11.4(a)1 shall, in addition, extend
to any liability of Tenant arising out of the indemnities provided for in
Section 11.2; and

 

2.             Tenant
Improvements and Property Insurance covering all of the items included in
Tenant’s Work, Tenant’s leasehold improvements including those constructed as
part of Tenant’s Work and Landlord’s Work (if any), heating, ventilating and
air conditioning equipment, trade fixtures, signage and personal property from
time to time in, on or upon the Premises and, to the extent not covered by
Landlord’s similar insurance, alterations, additions or changes made by Tenant
pursuant to Article 10, in an amount not less than their full replacement
cost, providing protection against perils included within standard forms of all
risk coverage insurance policy, together with such other coverage the Landlord
deems appropriate (i.e. flood and/or earthquake). Any policy proceeds from such
insurance shall be held in trust by Tenant for the repair, reconstruction,
restoration or replacement of the property damaged or destroyed, unless this
Lease shall cease and terminate under the provisions of Article 12.

 

(b)           All
policies of insurance provided for in Section 11.4(a) shall be issued
in form acceptable to Landlord by sound and reputable insurance companies with
general policyholder’s rating of not less than A and a financial rating of
Class VI as rated in the most currently available “Best’s Insurance Reports”
and qualified to do business in the state in which the Premises is located.
Each such policy shall be issued in the names of Landlord and Tenant and any
other parties in interest from time to time designated in writing by notice by
Landlord to Tenant. Said policies shall be for the mutual and joint benefit and
protection of Landlord and Tenant and executed copies of each such policy of
insurance or a certificate thereof shall be delivered to Landlord upon delivery
of possession of the Premises to Tenant and thereafter within thirty (30) days
prior to the expiration of each such policy. As often as any such policy shall
expire or terminate, renewal or additional policies shall be procured and
maintained by Tenant in like manner and to like extent. All such policies of
insurance shall contain a provision that the company writing said policy will
give Landlord at least thirty (30) days’ notice in writing in advance of any cancellation,
or lapse, or the effective date of any reduction in the amounts, or insurance.
All such public liability, property damage and other casualty policies shall be
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contribute
to any policies which may be carried by Landlord. All such public liability and
property damage policies shall contain a provision that Landlord, although
named as an insured, shall nevertheless be entitled to recover under said
policies for any loss occasioned to it, its servants, agents and employees by
reason of the negligence of Tenant. Any insurance provided for in
Section 11.4(a) may be effected by a policy of blanket insurance,
covering additional items or locations or insureds; provided, however, that
(i) Landlord shall be named as an additional insured thereunder as its
interest may appear; (ii) the coverage afforded Landlord will not be
reduced or diminished by reason of the use of such blanket policy of insurance;
(iii) any such policy or policies (except any covering the risks referred
to in Section 11.4(a)(1) shall specify therein (or Tenant shall
furnish Landlord with a written statement from the insurers under such policy
specifying) the amount of the total insurance allocated to the “Tenant
Improvements and Property” more specifically detailed in
Section 11.4(a)(2); and (iv) the requirements set forth herein are
otherwise satisfied. Tenant agrees to permit Landlord at all reasonable times
to inspect the policies of insurance of Tenant covering risks upon the Premises
for which policies or copies thereof are not delivered to Landlord.

 

11.5        LANDLORD’S
INSURANCE.

 

(a)           Landlord shall, as part of the Common Area Costs, at
all times during the Term maintain in effect a policy or policies of insurance
covering the Landlord’s Building and the Common Areas (excluding Tenant
improvements and property required to be insured by Tenant pursuant to
Section 11.4(a)) in an amount not less than the full replacement cost
(exclusive of the cost of excavations, foundations and footings), providing
protection against perils included within standard forms of fire and extended
coverage insurance policies, together with insurance against sprinkler damage,
vandalism, and malicious mischief, and such other risks as Landlord may from
time to time determine and with any such deductibles as Landlord may from time
to time determine and public liability insurance in such amounts as Landlord
deems to be reasonable. Any insurance provided for in Sections 11.5(a) or
(b) may be effected by a policy or policies of blanket insurance, covering
additional items or locations or insureds, provided that the requirements of
Section 11.5(a) are otherwise satisfied. In addition, at Landlord’s
option, Landlord may elect to self-insure all or any part of such required
insurance coverage. Landlord may, but shall not be obligated to, carry any
other form or forms of insurance as Landlord or the mortgagees or ground
lessors of Landlord may reasonably determine is advisable. All insurance
required hereunder may be referred to as “Insurance”.

 

(b)           Landlord may carry rent insurance with respect to
the Premises in an aggregate amount equal to eighteen (18) or more times the
sum of (i) the monthly requirement of Minimum Annual Rent, plus (ii) the
sum of the amounts estimated by Landlord to be payable by Tenant for Additional
Rent and Percentage Rent for the month immediately prior to the month in which
the policy is purchased or renewed.

 

(c)           Tenant agrees to pay Tenant’s Proportionate Share of
premiums for the Insurance provided pursuant to Section 8.6 of this Lease.
Tenant shall have no rights in any Insurance maintained by Landlord nor shall
Tenant be entitled to be a named insured thereunder.

 

11.6        COMPLIANCE
WITH INSURANCE AND GOVERNMENTAL REQUIREMENTS.

 

Tenant
agrees at its sole cost and expense, to comply with all reasonable
recommendations and requirements with respect to the Premises, or its use or
occupancy, of the insurance underwriters and any similar public or private
body, and any governmental authority having jurisdiction over insurance rates
with respect to the use or occupancy of the Shopping Center. Tenant shall not
do or suffer to be done anything upon or in the Premises which will contravene
Landlord’s policies of insurance or cause an increase in Landlord’s insurance
rates.

 

11.7        LIMIT OF
LANDLORD’S RESPONSIBILITY.

 

Except
to the extent such matter is not covered by the insurance required to be
maintained by Tenant under this Lease and is attributable to the gross
negligence or willful misconduct of Landlord, Landlord shall not, without
limiting the generality of Section 11.1 hereof, be responsible or liable
to Tenant or the Tenant Parties for any loss or damage that may be occasioned
by or through the acts or omissions of persons occupying space in any other
part of the Shopping Center, or for any loss or damage resulting to the Tenant
or its property from bursting, stoppage or leaking of water, gas, sewer or
steam pipes or for any damage caused by water leakage from any part of the
Premises or from the pipes, appliances or plumbing works or from the roof,
street or subsurface or from any other places or by dampness or by any other
cause of whatsoever nature, or loss of property within the Premises from any
cause whatsoever or any damage caused by other tenants or persons in the
Premises, occupants of adjacent property of the Shopping Center, or the public,
or caused by construction of any private, public or quasi-public work.

 

ARTICLE 12.
DESTRUCTION

 

12.1        DESTRUCTION.

 

Subject
to the provisions of 12.2, 12.3 and 12.4 below, if the Premises shall be
damaged or destroyed by any casualty, Landlord shall promptly restore same to
their condition immediately prior to the occurrence of the damage to the extent
of insurance proceeds received, and the Minimum Rent and other charges shall be
abated proportionately as to that part of the Premises rendered untenantable.

 

	
   

  	
   

  	
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12.2        LANDLORD’S
ELECTION.

 

If
the Premises (i) are rendered wholly untenantable; (ii) are
substantially damaged (i.e., the cost to repair or replace exceeds 50%  of their value) as a result of a risk
which is not covered by Landlord’s insurance; (iii) are substantially
damaged during the last year of the term or of any renewal term hereof,
regardless of insurance coverage; (iv) or the building of which they are a
part (whether the Premises are damaged or not), or all of the buildings which
then comprise the Shopping Center, are damaged to the extent of fifty percent (50%)  or more of the value thereof, so that the
Shopping Center cannot in the reasonable judgment of Landlord be operated as an
integral unit; or (v) are damaged and the holder of any mortgage, deed of
trust or other lien requires the use of all or any part of Landlord’s insurance
proceeds in satisfaction of all or a part of this indebtedness secured by any
such mortgage, deed of trust or other lien, then or in any of such events, Landlord
may either elect to repair the damage to the extent of insurance proceeds
received or may cancel this Lease by notice of cancellation within ninety (90)
days after such event (whereupon this Lease shall expire and Tenant shall
vacate and surrender the Premises to Landlord). Tenant’s liability for rent,
subject to the provisions regarding abatement of minimum rent contained above,
shall continue until the date of termination of this Lease.

 

12.3        TENANT’S
RIGHT TO TERMINATE.

 

This
Lease sets forth the terms and conditions upon which this Lease may be
terminated in the event of any damage or destruction. Accordingly, Tenant
hereby waives any right to terminate the Lease by reason of damage or casualty
loss, including without limitation the provision of California Civil Code
Section 1932(2) and 1933(4) and any present or future laws or
case decisions to the same effect unless otherwise provided in this Section. If
Landlord fails to commence the restoration within two hundred ninety (290) days
after the casualty and such delay is not caused by Tenant (or any Tenant
Parties) or any events described in Section 25.6, Tenant shall have the
right to terminate this Lease by notice to Landlord given prior to Landlord’s
commencement of construction. In addition, Tenant shall have the right to
terminate this Lease by giving written notice to Landlord of exercise thereof
within one hundred twenty (120) days after the date Landlord’s Building is
damaged or destroyed if:

 

(a)           no part of the Premises
remains tenantable after damage or destruction thereof from any cause; or,

 

(b)           the damage or destruction of
the Landlord’s Building occurs within the last twelve (12) months of the Term.

 

12.4        REPAIR. ETC.

 

In
the event Landlord elects to repair the damage, any abatement of rent shall end
the earlier of (i) sixty (60) days after notice by Landlord to Tenant that
the Premises have been repaired or (ii) the date Tenant reopens the
damaged Premises for business. Unless this Lease is terminated by Landlord,
Tenant shall refixture the Premises in a manner and to a condition equal to
that existing prior to its destruction or casualty, and the proceeds of all
insurance carried by Tenant on its property and improvements shall be held in
trust by Tenant for the purpose of said repair and replacement.

 

ARTICLE 13.
MAINTENANCE OF PREMISES

 

13.1        LANDLORD’S
DUTY TO MAINTAIN.

 

Landlord
will, as part of the Common Area Costs, keep the exterior walls, structural
columns and structural floor or floors (excluding outer floor and floor
coverings, walls installed at the request of Tenant, doors, windows and glass)
in good repair. Notwithstanding the foregoing provisions of this Section,
Landlord shall not in any way be liable to Tenant on account of its failure to
make repairs unless Tenant shall have given Landlord written notice of the
necessity for such repairs and has afforded Landlord a reasonable opportunity
to effect the same after such notice and provided that any damage arising
therefrom shall not have been caused by the negligence or willful act or
omission of Tenant or Tenant Parties (in which event Tenant shall be
responsible therefor) or have been caused to any of the items Tenant is
required to insure pursuant to Article 11. Without limiting the foregoing,
Tenant waives the right to make repairs at Landlord’s expense under any law,
statute or ordinance now or hereafter in effect (including the provisions of
California Civil Code Section 1942 and any successor sections or statutes
of similar nature).

 

13.2        TENANT’S
DUTY TO MAINTAIN.

 

Tenant
will, at its own cost and expense, maintain the Premises (except that part
Landlord has agreed to maintain) in good and tenantable condition, and make all
repairs to the Premises and every part thereof as needed. Tenant’s obligations
under this Section shall include, but not be limited to, modifying,
repairing, replacing and maintaining items as are required by any governmental
agency having jurisdiction thereof (whether the same is ordinary or
extraordinary, foreseen or unforeseen), interior walls and glass, and the
interior portions of exterior walls, ceilings, utility meters, pipes and
conduits within the Premises, and all utility meters, and all pipes and
conduits outside the Premises between the Premises and the service meter, all
fixtures, HVAC equipment (whether such HVAC equipment is located inside or
outside the Premises) in compliance with all Laws including environmental,
sprinkler equipment and other equipment within the Premises, the store fronts
and all exterior glass, all of Tenant’s signs, locks and closing devices, and
all window sashes, casement or frames, doors and door frames; provided that
Tenant shall make no adjustment, alteration or repair of any part of any
sprinkler or sprinkler alarm system in or serving the Premises without Landlord’s
prior approval. Tenant shall contract with a service company approved by
Landlord for the preventive maintenance of the HVAC and a copy of the service

 

	
   

  	
   

  	
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contract
(which contract shall be subject to Landlord’s approval) shall be furnished by
Tenant to Landlord within ten (10) days after Tenant’s opening for
business, and a copy of any subsequent contract shall be furnished by Tenant to
Landlord within ten (10) days after the same becomes effective. Such
service contract must provide for at least four (4) visits, inspections
and services each year and the regular changing of filters. All broken glass,
both exterior and interior, shall be promptly replaced by Tenant with glass of
the same kind, size and quality. Tenant shall permit no waste, damage or injury
to the Premises and Tenant shall initiate and carry out a program of regular
maintenance and repair of the Premises, including the painting or refinishing
of all areas of the interior and the store front, so as to impede, to the
extent possible, deterioration by ordinary wear and tear and to keep the same
in attractive condition. Tenant will not overload the electrical wiring serving
the Premises and will install, at its expense, with Landlord’s written
approval, any additional electrical wiring required in connection with Tenant’s
apparatus. Landlord shall be under no obligation to make any repairs,
replacements, reconstruction, alterations, or improvements to or upon the
Premises or the mechanical equipment exclusively serving the Premises except as
expressly provided for herein.

 

13.3        LANDLORD’S
RIGHT OF ENTRY AND USE.

 

Upon
at least twenty-four (24) hours prior verbal or written notice to Tenant
(except in an emergency in which event no notice shall be required), Landlord
and/or its agents, representatives, and contractors shall have the right to
enter into or upon any part of the Premises at any reasonable time (except in
an emergency in which event entry may be at any time) to inspect the condition,
occupancy or use thereof and to maintain, make repairs and/or perform other
work or improvements to the Premises and/or the Shopping Center or any part or
component thereof including without limitation any spaces adjacent to or
adjoining the Premises. Upon at least twenty-four (24) hours prior verbal or
written notice to Tenant, Landlord and Landlord’s representatives may enter the
Premises during business hours for the purpose of showing the Premises to
purchasers, mortgagees or insurers of all or a portion of the Shopping Center
or, during the last year of the Term of this Lease, to prospective tenants of
the Premises. During the last year of the Term of this Lease, Landlord may erect
a suitable sign on the Premises stating the Premises are available to let.
Landlord has the right to lock any tenant space that has begun construction
without Landlord’s authority or approval.

 

13.4        CONFLICTS.

 

If
there is a conflict between the provisions of this Article 13 and
Article 12, the provisions of Article 12 shall govern.

 

ARTICLE 14.
UTILITIES AND GARBAGE DISPOSAL

 

14.1        GAS, GARBAGE
DISPOSAL, WATER, SANITARY SEWER, TELEPHONE AND ELECTRIC SERVICE.

 

In
addition to Tenant’s obligations under Section 2.5 of this Lease, Tenant
shall pay for all utilities and sanitary services used within the Premises and
make such deposits or pay such permits required by the utility or sanitary
service company providing the same, including but not limited to: application
and installation of temporary and permanent meters for the Premises. Landlord
shall not be liable for any interruption or failure whatsoever in utility
services, nor shall any such failure or interruption constitute an actual or
constructive eviction of Tenant from the Premises or result in or give rise to
any abatement in any Rent reserved hereunder. Upon written request from
Landlord, Tenant will, at Tenant’s expense, contract with the service company
designated by Landlord for the disposal of all trash and garbage from the
Premises. Tenant will furnish to Landlord a copy of such contract prior to
opening for business, and a copy of each renewal of such contract shall be
furnished to Landlord at least seven (7) days prior to the expiration of the
existing contract. Landlord shall have the right to designate vendors to
provide utility services and garbage collection services to the Premises,
provided that the cost of such service is generally competitive in the vicinity
of the Shopping Center. Subject to the preceding sentence, if Landlord now or
in the future has a master contract for waste removal and garbage collection
services, then at Landlord’s election: (i) Tenant shall be billed directly
by the service provider, and (ii) Tenant shall pay all charges
attributable to the Premises pursuant to such contract directly to the service
provider. Should Landlord provide utilities to the Shopping Center, Tenant
shall pay its proportionate share for the use of the utilities in the manner
described in Section 8.6 hereof.

 

ARTICLE 15.
LIENS

 

15.1        NO LIENS
PERMITTED; DISCHARGE.

 

Landlord’s
property shall not be subject to liens for work done or materials used on the
Premises made at the request of, or on order of or to discharge an obligation
of, Tenant. This paragraph shall be construed so as to prohibit, in accordance
with the provisions of State law, the interest of Landlord in the Premises or
any part thereof from being subject to any lien for any improvements made by
Tenant or any third party on Tenant’s behalf (except Landlord) to the Premises.
If any lien or notice of lien on account of an alleged debt of Tenant or any
notice of lien by a party engaged by Tenant or Tenant’s contractor or
materialmen to work on the Premises shall be filed against the Shopping Center
or any part thereof, Tenant, within ten (10) forty-five (45) days after notice of the filing thereof, will cause
the same to be discharged of record by payment, deposit, bond, order of a court
of competent jurisdiction or otherwise. If Tenant shall fail to cause such lien
or notice of lien to be discharged and released of record within the period
aforesaid, then, in addition to any other right or remedy, Landlord may
discharge the same either by paying the amounts claimed to be due or by
procuring the discharge of such lien by deposit or by bonding procedures. Any
amount so paid by Landlord and all costs and expenses, including attorneys’
fees and court costs, incurred by Landlord in connection therewith, and
including interest at the Default

 

	
   

  	
   

  	
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Rate,
shall constitute Additional Rent and shall be paid by Tenant to Landlord on
demand, or be deducted from Tenant Allowance or Construction Allowance monies
owed to Tenant by Landlord, if any.

 

ARTICLE 16.
SIGNAGE

 

Tenant
shall at its own expense erect a sign on the exterior sign band of the
Premises, which sign shall: (i) conform to the general material, size and
appearance of other tenants’ signs at the Shopping Center, (ii) be in
strict conformity with any guidelines or sign criteria adopted by Landlord with
respect to the Shopping Center, including, without limitation, the sign
criteria set forth in Exhibit “C-1” attached hereto and made a part
hereof, (iii) be in accordance with all applicable laws, (iv) be installed
by a contractor or other party which meets with Landlord’s prior approval, and
(v) be otherwise subject to Landlord’s prior written approval. Landlord
will not be liable to Tenant or any Tenant’s contractor or city requirements
pertaining to signage. If at any time during the Term, Landlord determines to
replace the sign above the exterior of the Premises in connection with a
general renovation of the Shopping Center or otherwise, then Tenant shall pay
(or reimburse to Landlord, as the case may be) the cost of replacing such sign.

 

Landlord has constructed or
will construct a pylon sign or signs at the Shopping Center (hereinafter each
of said pylon signs is individually referred to as the “Pylon” and collectively
referred to as “The Pylons”). Tenant desires to place a sign (“Tenant’s Sign”)
on both sides of the Pylon or each of the Pylons and participate in the pylon
sign program at the Shopping Center pursuant to the following terms:

 

1.             Tenant shall contract with Tenant’s sign company for
the design, in accordance with the sign criteria set forth in
Exhibit “C-1” attached hereto and made a part hereof, and installation of
Tenant’s Sign to be installed on the Pylons either: (a) in the location
shown on Exhibit “G-1” attached hereto and made a part hereof, or
(b) in a location to be designated by Landlord. Prior to the manufacture and
installation of Tenant’s Sign, shop drawings prepared at Tenant’s expense shall
be delivered to Landlord for Landlord’s prior written approval. All design,
installation, relocation and/or removal costs of Tenant’s sign shall be borne
solely by Tenant.

 

2.             Tenant’s participation in the Pylon program shall
commence on the Commencement Date and shall continue for the term of the Lease,
including any extensions, renewals or options thereof, unless terminated by
Landlord as set forth below.

 

3.             Tenant shall pay Landlord, as a monthly Pylon sign
fee for each Pylon, a sum of Fifty Dollars and No Cents ($50.00) due and
payable on the first day of each month, which amount shall be subject to annual
increases set by Landlord in its sole discretion and subject to applicable
State sales tax (if any). Said amount shall also be and become Additional Rent.

 

4.             Tenant shall indemnify and hold Landlord harmless
from and against any and all claims and demands whether for injuries to persons
or loss of life, or damage to property, occurring in connection with Tenant’s
Sign.

 

5.             Landlord hereby reserves the right to remove and/or
relocate the Pylons, Tenant’s Sign or any other individual panels  at any time.

 

ARTICLE 17.
ASSIGNMENT AND SUBLETTING

 

17.1        RESTRICTIONS
ON ASSIGNMENT.

 

Tenant
will not assign this Lease in whole or in part, nor sublet all or any part of the
Premises or enter into any license or concession agreements (collectively or
individually, a “Transfer”), without the prior written consent of Landlord,
which consent Landlord will not unreasonably withhold. In no event may Tenant
encumber or hypothecate this Lease. The consent by Landlord to any Transfer
shall not constitute a waiver of the necessity for such consent to any
subsequent Transfer. This prohibition against Transfers shall be construed to
include a prohibition against any assignment or subletting by operation of law.
Any attempted transfer, assignment, subletting, license or concession
agreement, or hypothecation shall be void and confer no rights upon any third
person and shall be a violation of this Section. Any transfer of this Lease from
Tenant by merger, consolidation, liquidation or otherwise by operation of law,
including, but not limited to, an assignment for the benefit of creditors,
shall be included in the term “assignment” for the purposes of this Lease and
shall be a violation of this Section. If this Lease is transferred by Tenant,
or if the Premises or any part thereof are transferred or occupied by any
person or entity other than Tenant, Landlord may collect rent from the
assignee, subtenant or occupant, and apply the net amount collected to the rent
herein reserved, but no such Transfer, occupancy or collection shall be deemed
a waiver on the part of Landlord, or the acceptance of the assignee, subtenant
or occupant as Tenant, or a release of Tenant from the further performance by
Tenant of covenants on the part of Tenant herein contained unless expressly
made in writing by Landlord. Irrespective of any Transfer, Tenant shall remain
fully liable under this Lease and shall not be released from performing any of
the terms, covenants and conditions of this Lease. Without limiting Landlord’s
right to withhold its consent on any reasonable grounds, it is agreed that
Landlord will not be acting unreasonably in refusing to consent to a Transfer
if, in Landlord’s opinion, (i) the quality of the merchandising operation
of the proposed assignee or subtenant is not equal to that of the Tenant,
(ii) such assignee or subtenant may adversely affect (A) the business
of the other tenants, (B) the tenant mix in the Shopping Center, or
(C) Landlord’s ability to obtain percentage rent, (iii) the net worth and
financial capabilities of such assignee or subtenant is less than that of
Tenant and any of Tenant’s Guarantor(s) (if any) at the date hereof or at
the time of the Transfer,

 

	
   

  	
   

  	
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13

 

whichever
is greater, or (iv) the proposed Transfer involves a change of use of the
Premises from that specified herein or would otherwise breach any covenant of
Landlord respecting radius, location, use or exclusivity in any other lease in
the Shopping Center or any Shopping Center agreements. Notwithstanding any
contrary provision of this Lease, if Tenant or any proposed Transferee claims
that Landlord has unreasonably withheld or delayed its consent to a proposed
Transfer or otherwise has breached its obligations under this
Section 17.1, Tenant’s and such Transferee’s only remedy shall be to seek
a declaratory judgment and/or injunctive relief, and Tenant, on behalf of
itself and, to the extent permitted by law, such proposed Transferee, waives
all other remedies against Landlord, including, without limitation, the right
to seek monetary damages or to terminate this Lease. Within thirty (30) days of
Landlord’s receipt of any Transfer Notice and any additional information
requested by Landlord concerning the proposed Transferee’s financial
responsibility, Landlord will notify Tenant of its election to do one of the
following: (i) consent to the proposed Transfer subject to such reasonable
conditions as Landlord may impose in providing such consent; (ii) refuse
such consent, which refusal shall be on reasonable grounds; or
(iii) terminate this Lease as to all or such portion of the Premises which
is proposed to be sublet or assigned and recapture all or such portion of the
Premises for reletting by Landlord. The voluntary or other surrender of this
Lease by Tenant or a mutual cancellation hereof shall not work as a merger but
shall, at the option of Landlord, either terminate all or any existing
subleases or subtenancies or operate as an assignment to Landlord of such
subleases or subtenancies. Notwithstanding the foregoing, Landlord’s consent
will not be deemed unreasonably withheld should Tenant request an assignment of
this Lease within the first eighteen (18) months of the initial lease term. Notwithstanding anything to the contrary contained
in this Section and provided the use does not change. Tenant is not in
default hereunder and Landlord receives prior written notice. Tenant may assign
this Lease or sublease all or part of the Premises without Landlord’s consent
to (i) any corporation or partnership that controls, is controlled by, is under
common control with, or is an affiliate or subsidiary of Tenant: or (ii)  any
corporation resulting from the merger or consolidation with Tenant or to any
entity that acquires all of Tenant’s assets and continues to conduct the
business of Tenant at the Premises. Any assignee or sublessee shall expressly
assume the obligations of Tenant hereunder. Notwithstanding the foregoing,
except as expressly agreed to by Landlord, no such assignment or subletting
shall release Tenant from its responsibility for the obligations of Tenant
under this Lease.

 

17.2        CHANGE OF
OWNERSHIP.

 

If
Tenant or any Guarantor is a corporation, unincorporated association or
partnership, a transfer, assignment or hypothecation of any stock or interest
in such corporation, limited liability company, association or partnership by
any stockholder or partner so as to result in a change in the control thereof
by the person, persons or entities owning a majority interest therein as of the
date of this Lease, shall be deemed to be an assignment of this Lease. This
provision shall not be applicable to Tenant or to any Guarantor if it is a
corporation whose voting stock is listed on a national securities exchange (as
defined in the Securities Exchange Act of 1934, as amended) or is traded in any
recognized over-the-counter market.

 

17.3        REQUIREMENT
FOR ASSIGNMENT

 

In
the event that Tenant proposes any transfer of this Lease or transfer of
leasehold interest, Tenant shall notify Landlord in writing by certified mail,
return receipt requested, at least sixty (60) days before the date on which the
transfer is to be effective, and, included with such notice, furnish Landlord
with: (i) the name of the entity receiving such transfer (the
“Transferee”); (ii) a detailed description of the business of the
Transferee; (iii) audited financial statements of the Transferee;
(iv) all written agreements governing the transfer; (v) if the
Transferee is an individual, a true and correct copy of the Transferee’s
driver’s license; and (vi) any information reasonably requested by
Landlord with respect to the transfer or the Transferee; and (vii) a fee
of twenty-five hundred dollars ($2,500.00) to compensate Landlord for legal
fees, costs of administration, and other expenses to be incurred in connection
with the review and processing of such documentation (whether or not such transfer
is consummated). Landlord shall respond to Tenant’s request for approval or
disapproval of the transfer within thirty (30) days after Landlord receives the
request and documents and information required above. No transfer will release
Tenant of Tenant’s obligations under this Lease or alter the primary liability
of Tenant to pay the Rent and to perform all other obligations to be performed
by Tenant hereunder. Consent by Landlord to one transfer will not be deemed
consent to any subsequent Transfer. In the event of default by any Transferee
of Tenant or any successor Tenant in the performance of any of the terms
hereof, Landlord may proceed directly against Tenant without the necessity of
exhausting remedies against such Transferee or successor.

 

17.4        CONSIDERATION
PAID BY SUBLESSEE OR ASSIGNEE:

 

In
the event that Landlord consents to a sublease and the rental due and payable
by the sublessee (or a combination of the rent payable under such sublease plus
any bonus or other consideration therefore or incident thereto) exceeds the
Rent payable under this Lease, or if with respect to an assignment, permitted
license or other transfer by Tenant permitted by Landlord, the consideration
payable to Tenant by the assignee, licensee or other transferee exceeds the
Rent payable under this Lease, then Tenant shall be bound and obligated to pay
Landlord seventy-five
percent (75%) fifty percent (50%) of all such
excess rental and other excess consideration after
deducting any brokerage commission, tenant improvement allowances and free
rent, and other sub-leasing costs incurred by Tenant within ten
(10) days following receipt thereof by Tenant from such sublessee,
assignee, licensee or other transferee as the case may be. Finally, in the
event of any assignment or subletting, it is understood and agreed that all
rentals paid to Tenant by an assignee or sublessee shall be received by Tenant
in trust for Landlord, to be forwarded immediately to Landlord (to be applied
as a credit and offset to Tenant’s Rent obligations). If Tenant sells the
business being operated at the Premises (either directly or indirectly,
including, without limitation by way of selling, assigning and/or transferring
control of Tenant), to an entity or person not controlled by or under common

 

	
   

  	
   

  	
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control
with Tenant, then Tenant shall pay to Landlord, at the time of the closing of
such sale, an amount equal to twenty percent (20%) of the gross sales price.

 

ARTICLE 18.
DEFAULTS BY TENANT

 

18.1        EVENTS OF
DEFAULT.

 

This
Lease is made upon the condition that Tenant shall punctually and faithfully
perform all of the covenants, conditions and agreements by it to be performed.
The following shall each be deemed to be an event of default (each of which is
sometimes referred to as an “Event of Default” in this Lease):

 

(a)           any part of the Rent
required to be paid by Tenant under this Lease shall at any time be unpaid for
five (5) days after written notice that any such Rent is due; provided,
however, that any such notice shall be in lieu of, and not in addition to, any
notice required under Section 1161 et seq. of the California Code of Civil
Procedure.

 

(b)           Tenant fails in the
observance or performance of any of its other covenants, agreements or
conditions provided for in this Lease, and said failure shall continue for a
period of ten (10) days after written notice thereof from Landlord to
Tenant (unless such failure cannot reasonably be cured within ten
(10) days and Tenant shall have commenced to cure said failure within said
ten (10) days and continues diligently to pursue the curing of the same,
which cure shall occur no later than sixty (60) days from the date of such notice
from Landlord); provided, however, that Landlord shall be obligated to provide
Tenant such written notice of default or failure only a maximum of two
(2) times during any calendar year, and in the event of two (2) such
defaults by Tenant during any calendar year, the next default shall be an
automatic default hereunder without any further obligation on the part of
Landlord to provide notice thereof; provided further, that any such notice
shall be in lieu of, and not in addition to, any notice required under Section 1161
et seq. of the California Code of Civil Procedure.

 

(c)           Tenant fails, after the date
on which it is required by this Lease to open the Premises for business with
the public, to be open for business as required by this Lease, or vacates or
abandons the Premises;

 

(d)           the estate created in Tenant
or any Guarantor hereof is taken in execution or by other process of law, or
all or a substantial part of the assets of Tenant or any Guarantor hereof is
placed in the hands of a liquidator, receiver or trustee (and such receivership
or trusteeship or liquidation continues for a period of thirty (30) days), or
Tenant or any such Guarantor makes an assignment for the benefit of creditors,
or admits in writing that it cannot meet its obligations as they become due, or
is adjudicated a bankrupt, or Tenant or any such Guarantor institutes any
proceedings under any federal or state insolvency or bankruptcy law as the same
now exists or under any amendment thereof which may hereafter be enacted, or
under any other act relating to the subject of bankruptcy wherein the Tenant or
any such Guarantor seeks to be adjudicated as bankrupt, or to be discharged of
its debts, or to effect a plan of liquidation, composition or reorganization,
or should any involuntary proceedings be filed against Tenant or any such
Guarantor under any such insolvency or bankruptcy law (and such proceeding not
be removed within ninety (90) days thereafter). If any insolvency proceedings,
such as those referred to in this Section 18.1(d), are instituted against
Tenant, the Premises shall not become an asset in any such proceedings;

 

(e)           Tenant assigns or otherwise
transfers this Lease or subleases the Premises without prior written consent of
Landlord;

 

(f)            Tenant does or permits to be
done anything which creates a lien upon the Premises; or

 

(g)           any material representation
or warranty made by Tenant in this Lease or any other document delivered in
connection with the execution and delivery of this Lease or pursuant to this
Lease proves to be incorrect in any material respect.

 

18.2        LANDLORD’S
REMEDIES.

 

Upon
the occurrence of any Event of Default, in addition to all other remedies
available to Landlord at law or in equity, Landlord shall have the option to
pursue any one or more of the following alternative and cumulative remedies
without any notice or demand whatsoever:

 

(a)           Landlord shall
have the immediate option to terminate this Lease and all rights of Tenant
hereunder by giving Tenant written notice of such intention to terminate, in
which event Landlord may recover from Tenant all of the following (i) the
worth at the time of award of any unpaid rent which had been earned at the time
of such termination; plus (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

 

	
   

  	
   

  	
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the amount of such rental loss Tenant proves
reasonably could have been avoided; plus (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 Tenant proves
reasonably could be avoided; plus (iv) any other amount necessary to
compensate Landlord for all the detriment proximately caused by Tenant’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: unamortized Tenant improvement costs; attorneys’ fees; brokers’
commissions; the costs of refurbishment, alterations, renovation and repair of
the Premises; and removal (including the repair of any damage caused by such
removal) and storage (or disposal) of Tenant’s personal property, equipment,
fixtures, alterations and any other items which Tenant is required under this
Lease to remove but does not remove; plus (v) at Landlord’s election, such
other amounts in addition to or in lieu of the foregoing as may be permitted
from time to time by applicable California law. As used in (i) and
(ii) above, the “worth at the time of award” shall be computed by allowing
interest at the highest rate allowed by applicable law and as used in (iii)
above, the “worth at the time of award” shall be computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%).

 

(b)           Landlord shall also have the
right, with or without terminating this Lease, to re-enter the Premises and
remove all persons and property from the Premises. Such property may be removed
and stored in a public warehouse or elsewhere at the cost of and for the
account of Tenant.

 

(c)           In the event Landlord elects
to re-enter the Premises under (b) above or takes possession of the
Premises pursuant to any proceedings or notice provided by law or Tenant
vacates or abandons the Premises, but Landlord does not elect to terminate this
Lease as provided in this Section 18.2, Landlord may from time to time
without terminating this Lease either recover from Tenant all Rent as it
becomes due (pursuant to California Civil Code Section 1951.4) or relet
the Premises or any part thereof upon such terms and conditions as Landlord in
its sole discretion may deem advisable, with the right of Landlord to make
alterations and repairs to the Premises. In the event of any such reletting,
rental and other charges received by Landlord therefrom shall be applied in the
following order: (i) to the payment of any indebtedness other than Rent
due hereunder from Tenant to Landlord, (ii) to the payment of all costs of
such reletting, (iii) to the payment of the costs of any alterations and
repairs to the Premises, and (iv) the payment of Rent and other charges
due and unpaid hereunder. The residue, if any, shall be held by Landlord and
applied in payment of future Rent and other charges due hereunder, as the same
may become due. In the event the rental and other charges received by Landlord
from all such reletting are at any time less than the then aggregate of
(i) through (iv) above, Tenant shall pay such deficiency to Landlord
immediately upon demand therefor, but not more often than monthly.

 

(d)           No re-entry or taking
possession of the Premises by Landlord pursuant to this Section 18.2 shall
be construed as an election to terminate this Lease unless a written notice of
such intention shall be given to Tenant or unless such termination shall be
decreed by a court of competent jurisdiction and Landlord may enforce all of
Landlord’s rights and remedies hereunder, without limitation, the remedy
described in California Civil Code Section 1951.4 (lessor may continue the
lease in effect after lessee’s breach and abandonment and recover rent as it
becomes due, if lessee has the right to sublet or assign, subject only to
reasonable limitations). Notwithstanding any reletting without termination by
Landlord because of any default by Tenant, Landlord may at any time after such
reletting elect to terminate this Lease for any such default.

 

(e)           In any action for unlawful
detainer commenced by Landlord against Tenant by reason of any default
hereunder, the reasonable rental value of the Premises for the periods of the
unlawful detainer shall be the amount of Rent reserved in this Lease for such
period, unless Landlord or Tenant shall provide to the contrary by competent
evidence. The rights and remedies reserved to Landlord herein, including those
not specifically described, shall be cumulative, and except as otherwise
provided by then applicable California law, Landlord may pursue any or all of
such rights and remedies at the same time or otherwise.

 

(f)            No such re-entry or taking
of possession of the Premises by Landlord shall be construed as an election on
Landlord’s part to terminate this Lease unless a written notice of such
intention signed by Landlord is given to Tenant. Notwithstanding any such
reletting without termination, Landlord may at any time thereafter elect to
terminate this Lease for a previous default by Tenant. Should Landlord at any
time terminate this Lease for any default, in addition to any other remedies
Landlord may have, Landlord may recover from Tenant all damages Landlord may
incur by reason of such default, including, but not limited to, the cost of
recovering the Premises and

 

	
   

  	
   

  	
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reasonable attorneys’ fees, all of which amounts
shall be immediately due and payable from Tenant to Landlord. Pursuit of any of
the foregoing remedies shall not preclude pursuit of any of the other remedies
herein provided or any other remedies provided by law or in equity, nor shall
pursuit of any remedy herein or otherwise provided constitute a forfeiture or
waiver of any Rent due to Landlord hereunder or of any damages accruing to
Landlord by reason of the violation of any of the terms, provisions or
covenants herein contained. The loss or damage that Landlord may suffer by
reason of termination of this Lease or the deficiency from any repossession
and/or reletting as provided for above shall include the expense of
repossession and any repairs or remodeling undertaken by Landlord following
repossession. All interest and any late charges imposed pursuant to this Lease
shall be considered Additional Rent due from Tenant under the terms of this
Lease.

 

18.3        ATTORNEYS’
FEES AND COSTS.

 

In
the event that any action, suit or other proceeding is initiated concerning or
arising out of this Lease, the prevailing party shall recover all of such
party’s costs and attorneys’ fees incurred in each and every action, suit or
other proceeding, including any and all appeals or petitions therefrom from the
non-prevailing party. As used herein, “attorneys’ fees” shall mean the full and
actual costs of any legal services actually rendered in connection with the
matters involved, calculated on the basis of the usual fee charged by the
attorney performing such services.

 

18.4        RENT
PAYABLE BY TENANT.

 

For
all purposes of Article 18, in determining the Rent which would be payable
by Tenant hereunder subsequent to default, Rent for each Lease Year of the
unexpired Term shall be deemed to be the amount of Rent payable by Tenant
during the twelve (12) calendar months immediately preceding the Event of
Default.

 

18.5        TENANT’S
PROPERTY TO REMAIN.

 

If
there is an Event of Default, all of the Tenant’s fixtures, furniture,
equipment, improvements, additions, alterations, and other personal property
shall remain on the Premises and, in that event and continuing during the
length of said default, Landlord shall have the right to take the exclusive
possession of same and to use same, without cost, until all defaults are cured
or, at its option, at any time during the Term to require Tenant to forthwith
remove same.

 

18.6        TENANT’S
WAIVER OF REDEMPTION.

 

Tenant
hereby waives and surrenders for itself and all those claiming under it,
including creditors of all kinds (i) any right and privilege which it or
any of them may have under any present or future law to redeem any of the
Premises or to have a continuance of this Lease after termination of this Lease
or of Tenant’s right of occupancy or possession pursuant to any court order or
any provision hereof, and (ii) the benefits of any present or future law
which exempts property from liability for debt or for distress for rent.

 

18.7        COSTS UPON
DEFAULT AND LITIGATION.

 

Tenant
shall pay to Landlord and its mortgagees as Additional Rent all the expenses
incurred by Landlord or its mortgagees in connection with any default by Tenant
hereunder or the exercise of any remedy by reason of any default by Tenant
hereunder, including reasonable attorneys’ fees and expenses. If Landlord or
its mortgagees shall be made a party to any litigation commenced against Tenant
or any litigation pertaining to this Lease or the Premises, at the option of
Landlord and/or its mortgagees, Tenant, at its expense, shall provide Landlord
and/or its mortgagees with counsel approved by Landlord and/or its mortgagees
and shall pay all costs incurred or paid by Landlord and/or its mortgagees in
connection with such litigation.

 

ARTICLE 19.
LIMITATION OF LANDLORD’S LIABILITY

 

19.1        LANDLORD’S
DEFAULT.

 

Except
as otherwise provided in this Lease, Landlord shall be in default under this
Lease if Landlord fails to perform any of its obligations hereunder and said
failure continues for a period of thirty (30) days after written notice thereof
from Tenant to Landlord (unless such failure cannot reasonably be cured within
thirty (30) days and Landlord shall have commenced to cure said failure within
said thirty (30) days and continues diligently to pursue the curing of the
same). If Landlord defaults under this Lease and if, as a consequence of such
default, Tenant shall recover a money judgment against Landlord, such judgment
shall be satisfied only out of the proceeds of sale received upon execution of
such judgment against the right, title and interest of Landlord in the Shopping
Center as the same may then be constituted and encumbered, and Landlord shall
not be liable for any deficiency. In no event shall Tenant have the right to
levy execution against any property of Landlord other than its interest in the
Shopping Center. Upon any such uncured default by Landlord, Tenant may exercise
any of its rights provided in law or at equity; provided, however:
(a) Tenant shall have no right to offset or abate rent in the event of any
default by Landlord under this Lease, except to the extent offset rights are
specifically provided to Tenant in this Lease; (b) Tenant shall have no
right to terminate this Lease; and (c) Tenant’s rights and remedies
hereunder shall be limited to the extent (i) Tenant has expressly waived
in this Lease any of such rights or remedies and/or (ii) this Lease
otherwise expressly limits Tenant’s rights or remedies. Notwithstanding
anything contained in this Lease to the contrary, the obligations of Landlord
under this Lease (including any actual or alleged breach or default by
Landlord) do not constitute personal obligations of the individual partners,
directors, officers, members or shareholders of Landlord or Landlord’s
partners, and

 

	
   

  	
   

  	
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Tenant
shall not seek recourse against the individual partners, directors, officers,
members or shareholders of Landlord or against Landlord’s partners or any other
persons or entities having any interest in Landlord, or any of their personal
assets for satisfaction of any liability with respect to this Lease.

 

19.2        TRANSFER OF
LANDLORD’S INTEREST.

 

In
the event of the sale or other transfer of Landlord’s interest in the Premises
(except in the case of a sale-leaseback financing transaction in which Landlord
is the lessee), Landlord shall transfer and assign to such purchaser or
transferee the Security Deposit whereupon Landlord shall be deemed released
from all liability and obligations hereunder arising out of any act, occurrence
or omission relating to the Premises or this Lease occurring after the
consummation of such sale or transfer. Tenant agrees to attorn to any
successor, assignee, mortgagee or ground lessor of Landlord.

 

ARTICLE 20.
SUBORDINATION AND ATTORNMENT

 

20.1        SUBORDINATION
OF LEASE AND TENANT’S ATTORNMENT.

 

This
Lease is subordinate to the lien of all mortgages, deeds of trust, security
instruments, ground leases, easement agreements and any covenants, conditions
and restrictions (collectively, “Superior Interests”) now or hereafter covering
all or any part of the Shopping Center, and to all amendments, modifications,
consolidations, renewals, replacements and extensions thereof. Tenant also
agrees that, if any mortgagee elects to have this Lease prior to the lien of
its mortgage and signifies such election in the instrument creating its lien,
or by separate recorded instrument, this Lease shall be prior in dignity to
such mortgage. In the event of any proceedings brought for the enforcement of
any instrument of any Superior Interest holder (including but not limited to a
mortgage or lease), Tenant shall, upon demand by the Superior Interest holder,
attorn to and recognize such Superior Interest holder as Landlord under this
Lease. In the event of a sale or assignment of Landlord’s interest under this
Lease or in the Premises, Tenant shall attorn to and recognize such purchaser
or assignee as Landlord under this Lease without further act by Landlord or
such purchaser or assignee. Tenant hereby waives its rights under any current
or future law which gives or purports to give Tenant any right to terminate or
otherwise adversely affect this Lease and the obligations of Tenant hereunder
in the event of any such foreclosure proceeding or sale.

 

20.2        INSTRUMENTS
TO CARRY OUT INTENT.

 

Tenant
agrees that, in order to confirm the provisions of this Article, but in no way
limiting the self-operative effect of said provisions, Tenant shall execute and
deliver whatever instruments may be required for such purposes within ten
(10) days following Landlord’s written request. Should Tenant fail to sign
and return any such instruments within said ten (10) day period, Tenant
shall be in default hereunder without the benefit of any additional notice or
cure periods specified in this Lease.

 

                20.3        NO EXISTING MORTGAGEE.

 

Landlord represents and
warrants that, as of the date of this Lease. Landlord’s fee simple interest in
the Shopping Center is not encumbered by a mortgage, deed of trust or other
security interest. If Landlord later encumbers the Shopping Center with a
mortgage, deed of trust or other security interest, upon Tenant’s request.
Landlord shall use good faith efforts to cause Landlord’s lender to enter into
a subordination, non-disturbance and attornment agreement (SNDA) with Tenant
utilizing Landlord’s lender’s standard form. Tenant shall pay all reasonable
fees, costs and expenses (including attorneys’ fees and costs) incurred by
Landlord’s lender in connection with providing any subordination,
non-disturbance and attornment agreement.

 

ARTICLE 21.
ESTOPPEL CERTIFICATES

 

21.1        TENANT’S
AGREEMENT TO DELIVER.

 

Within
ten (10) days after request therefor from Landlord, Tenant agrees to
execute and deliver to Landlord, or to such other addressee or addressees as
Landlord may designate (and any such addressee may rely thereon), a statement
in writing certifying (if true) that the Lease is in full force and effect and
unmodified or describing any modifications; that Tenant has accepted the
Premises; that Landlord has performed all of its obligations under the Lease
arising prior to the date of the certificate; that there are no defenses or
offsets against the enforcement of this Lease or stating with particularity
those claimed by Tenant; stating the date to which Rent has been paid; and
making such other true representations as may be reasonably requested by
Landlord.

 

ARTICLE 22.
QUIET ENJOYMENT

 

22.1        FAITHFUL
PERFORMANCE.

 

Upon
payment of the Rent herein provided for and the observance and performance of
all of the agreements, covenants, terms and conditions to be observed and performed
by the Tenant, Tenant shall peaceably and quietly hold and enjoy the Premises
for the Term without hindrance or interruption by Landlord or any other person
or persons lawfully or equitably claiming by, through or under Landlord.

 

	
   

  	
   

  	
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ARTICLE 23.
SURRENDER AND HOLDING OVER

 

23.1        DELIVERY
AFTER TERM.

 

Tenant
shall deliver up and surrender to Landlord possession of the Premises upon the
expiration or earlier termination of the Term, broom clean, free of debris, in
good order, condition and state of repair with Tenant’s removal of all of its
signage (except as may be Landlord’s obligation under this Lease and ordinary
wear and tear), and shall deliver the keys at the office of Landlord in the
Shopping Center or to Landlord at the address to which notices to Landlord are
to be sent. If not sooner terminated as herein provided, this Lease shall
terminate at the end of the Term as provided for in Article 3 without the
necessity of notice from either Landlord or Tenant to terminate the same,
Tenant hereby waiving notice to vacate the Premises and agreeing that Landlord
shall be entitled to the benefit of all provisions of law respecting the
summary recovery of possession of premises from a tenant holding over.

 

23.2        EFFECT OF
HOLDING OVER; RENT.

 

If
Tenant or any party claiming under Tenant remains in possession of the
Premises, or any part thereof, after any termination or expiration of this
Lease, no tenancy or interest in the Premises shall result therefrom, but such
holding over shall be an unlawful detainer and all such parties shall be
subject to immediate eviction and removal, and Tenant shall upon demand pay to
Landlord, as liquidated damages, a sum equal to all Percentage Rent, if any,
and Additional Rent provided for in this Lease during any period which Tenant
shall hold the Premises after the Term has expired, plus an amount computed at
the rate of double one hundred twenty-five
percent (125%) for the first two (2) months and one hundred fifty percent
(150%) thereafter of the Minimum Annual Rent for such period. In addition,
Tenant shall indemnify, protect, defend (by counsel approved in writing by
Landlord) and hold Landlord harmless from and against any and all claims,
judgments, suits, causes of action, damages, losses, liabilities and expenses
(including attorneys’ fees and court costs) resulting from such failure to
surrender, including, without limitation, any claim made by any succeeding
tenant based thereon. The foregoing indemnity shall survive the expiration or
earlier termination of this Lease. The foregoing provisions of this
Section 23.2 are in addition to, and do not affect, Landlord’s right of
re-entry or any other rights of Landlord hereunder or otherwise provided by law
or equity.

 

ARTICLE 24.
CONDEMNATION

 

24.1        ALL OF
PREMISES TAKEN.

 

If
the whole of the Premises shall be taken either permanently or temporarily by
any right of eminent domain or conveyance in lieu thereof (each being
hereinafter referred to as “condemnation”), this Lease shall terminate as of
the day possession shall be taken by the condemning authority.

 

24.2        LESS THAN
ALL OF PREMISES TAKEN.

 

If
twenty percent (20%) or more of the GLA in the Premises is taken by
condemnation or if (regardless of the percentage of the GLA in the Premises
which is taken) the remainder of the Premises is divided in two (2) or
more units, then in either event Landlord and Tenant shall have the right to
terminate this Lease upon ninety (90) days written notice after possession is
taken by such condemnation whereupon the Lease shall terminate as of the day
possession shall be taken by such condemning authority. Tenant shall pay Rent
and perform all of its other obligations under this Lease up to that date. If
this Lease is not so terminated, the GLA of the Premises shall be accordingly
adjusted as of the date of the taking, Rent shall be accordingly adjusted and
any pre-paid Rent shall be proportionately credited or debited to Tenant.
Thereafter, the Rent shall be based on the square footage of GLA in the
Premises. Landlord agrees, at Landlord’s cost and expense, as soon as
reasonably possible, to restore the Premises on the land remaining to a
complete unit of like quality and character as existed prior to such
appropriation or taking, provided that Landlord shall not be required to expend
more on such restoration than the condemnation award received by Landlord (less
all expenses, costs, legal fees and court costs incurred by Landlord in
connection with such award).

 

24.3        SHOPPING
CENTER TAKEN.

 

(a)            If any part of the Shopping Center (including any
easement appurtenant to Landlord’s interest therein) is taken by condemnation
so as to render, in Landlord’s judgment, the remainder unsuitable (in
Landlord’s discretion) for use as a retail shopping center, Landlord shall have
the right to terminate this Lease upon notice in writing to Tenant within one
hundred twenty (120) days after possession is taken by such condemnation. If Landlord
so terminates this Lease, it shall terminate as of the day possession is taken
by the condemning authority, and Tenant shall pay Rent and perform all of its
obligations under this Lease up to that date with a proportionate refund by
Landlord of any Rent as may have been paid in advance for a period subsequent
to such possession.

 

(b)            If title to (i) twenty percent (20%) or more of
the GLA of Landlord’s Building or (ii) twenty percent (20%) or more of the
parking required to be maintained in the Shopping Center is so taken, and if
Landlord within one (1) year after such taking has not substituted an
equivalent number of parking spaces in a location reasonably accessible to the
Shopping Center, then either party may terminate this Lease by notice to the
other given within thirty (30) days after the taking or after the expiration of
such one (1) year period, as the case may be.

 

24.4        OWNERSHIP
OF AWARD.

 

All
damages for any condemnation of all or any part of the Shopping Center,
including, but not limited to, all damages as compensation for diminution in
value of the leasehold, reversion and fee, shall belong to the Landlord without
any deduction therefrom for any present or future estate of Tenant, and Tenant

 

	
   

  	
   

  	
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hereby
assigns to Landlord all its right, title and interest to any such award.
Although all damages in the event of any condemnation are to belong to the
Landlord, Tenant may have the right to claim and recover from the condemning
authority, but not from Landlord, such compensation as may be separately
awarded or recoverable by Tenant in Tenant’s own right on account of any and
all damage to Tenant’s business by reason of the condemnation and for or on
account of any cost or loss which Tenant might incur in removing Tenant’s
merchandise, furniture, fixtures, leasehold improvements and equipment.

 

24.5        CONFLICTS.

 

If
there is a conflict between the provisions of this Article 24 and
Article 13, the provisions of Article 24 shall govern.

 

24.6        WAIVER OF TERMINATION RIGHT.

 

This
Lease sets forth the terms and conditions upon which this Lease may terminate
in the event of a taking. Accordingly, the parties waive the provisions of the
California Code of Civil Procedure Section 1265.130 and any successor or
similar statutes permitting the parties to terminate this Lease as a result of
a taking.

 

ARTICLE 25.
MISCELLANEOUS

 

25.1        INTERPRETATION.

 

(a)           The captions appearing in this Lease are inserted
only as a matter of convenience and in no way amplify, define, limit, construe
or describe the scope or intent of such sections of the Lease. The neuter,
feminine or masculine pronoun when used herein shall each include each of the
other genders and the use of the singular shall include the plural.

 

(b)           The printed provisions of this Lease were drawn
together by Tenant and Landlord, so that this Lease shall not be construed for
or against Landlord or Tenant, but this Lease shall be interpreted in
accordance with the general tenor of the language in an effort to reach the intended
result.

 

(c)           Notwithstanding any other provision of this Lease,
if the state in which the Premises is located recognizes a distinction between
an estate for years and a “usufruct,” it is the intention of the parties for
this instrument to create a usufruct and not an estate for years.

 

25.2        RELATIONSHIP OF PARTIES.

 

Nothing
herein contained shall be construed as creating any relationship between the
parties other than the relationship of Landlord and Tenant, nor cause either
party to be responsible in any way for the acts, debts or obligations of the
other.

 

25.3        NOTICES.

 

(a)           Any notice, demand, request, approval, consent or
other instrument which may be or is required to be given under this Lease shall
be in writing and shall be deemed to have been given when delivered to the
party to be notified or when mailed by United States certified mail, return
receipt requested, postage prepaid, or when delivered by a courier such as
Federal Express, addressed to the party to be notified at the address of such party
set forth in Section 1.1(t), or at Landlord’s option to the Premises or
finally, to such other address as such party may from time to time designate by
notice to the other in accordance with this Section.

 

(b)           No notice required to be given to Landlord shall be
effective for any purpose unless and until a true copy thereof is given to each
mortgagee of Landlord’s estate, provided Tenant has previously been given
written notice of the name and address of such mortgagee.

 

(c)           Notices required hereunder may be given by an
attorney acting on behalf of Landlord or Tenant.

 

25.4        SUCCESSORS.

 

This
Lease shall inure to the benefit of and be binding upon Landlord, its
successors and assigns, and shall be binding upon Tenant, its successors and
assigns, and shall inure to the benefit of Tenant and only such assigns of
Tenant to whom the assignment by Tenant has been made and consented to in
accordance with the provisions of this Lease.

 

25.5        BROKER’S COMMISSION.

 

Landlord
has entered into an agreement with the real estate broker specified in
Section 1.1(n) of the Lease as representing Landlord (“Landlord’s
Broker”), and Landlord shall pay any commissions or fees that are payable to
Landlord’s Broker with respect to this Lease in accordance with the provisions
of a separate commission contract. Landlord shall have no further or separate
obligation for payment of commissions or fees to any other real estate broker,
finder or intermediary. Tenant represents that it has not had any dealings with
any real estate broker, finder or intermediary with respect to this Lease,
other than Landlord’s Broker and the broker specified in Section 1.1(n) of
the Lease as representing Tenant (“Tenant’s Broker”). Any commissions or fees
payable to Tenant’s Broker with respect to this Lease shall be paid exclusively
by Landlord’s Broker. Each party represents and warrants to the other, that, to
its knowledge, no other broker, agent or finder (a) negotiated or was
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consummating
this Lease on its behalf, or/and (b) is or might be entitled to a
commission or compensation in connection with this Lease. Any broker, agent or
finder of Tenant whom Tenant has failed to disclose herein shall be paid by
Tenant.

 

25.6        UNAVOIDABLE DELAYS.

 

In
the event that either party shall be delayed or hindered in or prevented from
the performance of any act required hereunder by reason of strikes, lockouts,
labor troubles, inability to procure labor or materials, failure of power,
restrictive governmental laws or regulations, riots, insurrection, war, fire or
other casualty or other reason of a similar or dissimilar nature beyond the
reasonable control of the party delayed in performing work or doing acts
required under the terms of this Lease, then performance of such act shall be
excused for the period of the delay and the period for the performance of any
such act shall be extended for a period equivalent to the period of such delay.
The provisions of this Section shall not operate to excuse Tenant from
prompt payment of Rent or any other payments required by the terms of this
Lease and shall not extend the Term. Delays or failures to perform resulting from
lack of funds shall not be deemed delays beyond the reasonable control of a
party.

 

25.7        ENTIRE AGREEMENT.

 

There
are no oral agreements between the parties hereto affecting this Lease, and
this Lease supersedes and cancels any and all previous negotiations,
arrangements, letters of intent, lease proposals, brochures, agreements,
representations, promises, warranties and understandings between the parties
hereto or displayed by Landlord to Tenant with respect to the subject matter
thereof. This Lease, including the Exhibits and any addenda, sets forth all the
covenants, promises, agreements, conditions and understandings between Landlord
and Tenant concerning the Premises and the Shopping Center. No alteration,
amendment, change or addition to this Lease shall be binding upon Landlord or
Tenant unless reduced in writing, signed and mutually delivered between them.

 

25.8        APPLICABLE LAW.

 

The
laws of the state in which the Premises are located shall govern the validity,
performance and enforcement of this Lease.

 

25.9        WAIVER.

 

Failure
of either party to insist upon the strict performance of any provision of this
Lease or to exercise any option or enforce any rules and regulations shall
not be construed as a waiver in the future of any such provision, rule or
option.

 

25.10      ACCORD AND
SATISFACTION.

 

No
payment by Tenant or receipt by Landlord of a lesser amount than the Rent
herein stipulated shall be deemed to be other than on account of the earliest
stipulated Rent, nor shall any endorsement or statement on any check or any
letter accompanying any such check or payment as Rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such Rent or pursue any other
remedy provided for in this Lease or available at law or in equity.

 

25.11      LANDLORD’S
SELF-HELP.

 

In
addition to Landlord’s rights of self-help set forth elsewhere in this Lease,
if Tenant at any time fails to perform any of its obligations under this Lease
in a manner reasonably satisfactory to Landlord, Landlord shall have the right,
but not the obligation, upon giving Tenant at least ten (10) days’ prior
written notice of its election to do so (in the event of an emergency, no prior
notice shall be required), to perform such obligations on behalf of and for the
account of Tenant and to take all such action necessary to perform such
obligations without liability to Tenant for any loss or damage which may result
to Tenant’s stock or business by reason of such repairs. In such event,
Landlord’s costs and expenses incurred therein shall be paid for by Tenant as
Additional Rent, forthwith upon demand therefor, with interest thereon from the
date Landlord performs such work at the Default Rate. The performance by Landlord
of any such obligation shall not constitute a release or waiver of Tenant
therefrom.

 

25.12      RECORDING.

 

Tenant
agrees that it will not record this Lease, nor a short memorandum thereof.

 

25.13      JOINT AND
SEVERAL LIABILITY.

 

If
two or more individuals, corporations, partnerships or other business
associations (or any combination of two or more thereof) shall sign this Lease
as Tenant, the liability of each of them shall be joint and several. In like
manner, if the Tenant named in this Lease shall be a partnership or other
business association, the members of which are, by virtue of statute or general
law, subject to personal liability, the liability of each such member shall be
joint and several.

 

25.14      EXECUTION
OF LEASE.

 

The
submission of this Lease for examination does not constitute a reservation of
or option for the Premises or any other space within the Shopping Center and
shall vest no right in either party. This Lease shall become effective as a
Lease only upon execution and legal delivery thereof by the parties, together
with the execution and delivery to Landlord of a Guaranty in the form annexed
hereto by the Guarantor(s), if any, named in Section 1.1(k) and the
delivery by Tenant to Landlord of any documents and monies (if any) required to
be delivered by Tenant to Landlord upon Tenant’s execution and delivery of this
Lease to Landlord. This Lease may be executed in more than one counterpart, and
each such counterpart shall be deemed to be an original document.

 

	
   

  	
   

  	
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21

 

25.15      WAIVER OF
JURY TRIAL.

 

Tenant
hereby waives trial by jury in any action, proceeding, or permissive
counterclaim involving any matters whatsoever arising out of or in any way
connected with the Lease, the relationship of Landlord and Tenant, Tenant’s use
or occupancy of the Premises, or claim for injury or damage.

 

25.16      TIME OF THE
ESSENCE.

 

Time
is of the essence of each and every obligation under this Lease.

 

25.17      TENANT’S
AUTHORITY.

 

If
Tenant executes this Lease as a limited liability company, partnership, or
corporation, then Tenant and the persons and/or entities executing this Lease
on behalf of Tenant represent and warrant that: (a) Tenant is a duly
organized, authorized and validly existing partnership, corporation or limited
liability company, as the case may be, and is qualified to do business in the
state in which the Premises is located; (b) such persons and/or entities
executing this Lease are duly authorized to execute and deliver this Lease on
Tenant’s behalf in accordance with the Tenant’s operating agreement (if Tenant
is a limited liability company), Tenant’s partnership agreement (if Tenant is a
partnership), or a duly adopted resolution of Tenant’s board of directors and
the Tenant’s by-laws (if Tenant is a corporation), and (c) this Lease is
binding upon Tenant in accordance with its terms. Concurrently with Tenant’s
execution and delivery of this Lease to Landlord and/or at any time during the
Term within ten (10) days of Landlord’s request, Tenant shall provide to
Landlord a copy of any documents reasonably requested by Landlord evidencing
such qualification, organization, existence and authorization.

 

25.18      ANTI-TERRORISM
AND MONEY LAUNDERING REPRESENTATION AND INDEMNIFICATION.

 

Tenant
certifies that: (i) neither it nor its officers, directors or controlling
owners is acting, directly or indirectly, for or on behalf of any person,
group, entity, or nation named by any Executive Order, the United States
Department of Justice, or the United States Treasury Department as a terrorist,
“Specially Designated National or Blocked Person,” or other banned or blocked
person, entity, nation, or transaction pursuant to any law, order, rule or
regulation that is enforced or administered by the Office of Foreign Assets
Control (“SDN”); (ii) neither it nor its officers, directors or
controlling owners is engaged in this transaction, directly or indirectly on
behalf of, or instigating or facilitating this transaction, directly or
indirectly on behalf of, any such person, group, entity or nation; and
(iii) neither it nor its officers, directors or controlling owners is in
violation of Presidential Executive Order 13224, the USA Patriot Act, the Bank
Secrecy Act, the Money Laundering Control Act or any regulations promulgated
pursuant thereto. Tenant hereby agrees to defend, indemnify, and hold harmless
Landlord from and against any and all claims, damages, losses, risks,
liabilities and expenses (including attorneys fees and costs) arising from or
related to any breach of the foregoing certification. Should Tenant, during the
term of this Lease, be designated an SDN, Landlord may, at its sole option,
terminate this Lease.

 

25.19RELOCATION.
INTENTIONALLY DELETED.

 

Landlord
shall be entitled to cause Tenant to relocate from the Premises to a comparable
space within the Shopping Center (the “Relocation Space”) at any time upon
written notice to Tenant. Any such relocation shall be entirely at the expense
of Landlord or the third party tenant replacing Tenant in the Premises. Such
relocation shall not terminate or otherwise affect or modify this Lease except
that, from and after the date of such relocation, “Premises” shall refer to the
Relocation Space into which Tenant has been moved, rather than the original
Premises as herein defined. Landlord shall be allowed to with reasonable means
to reuse Tenant’s trade fixtures.

 

ARTICLE 26.
EXCLUSIVE

 

Landlord
will not lease in the future to any tenant in the Landlord’s Building for the
purpose of conducting within the Landlord’s Building as its principal business
the sale of:

 

a
retail banking facility that is 1,500 square feet or smaller.

 

It
is understood that this exclusive shall not apply to any existing tenants. It is
further understood that other tenants or occupants in the Landlord’s Building
may sell one or more of the restricted items as an incidental part of their
business, and permission heretofore or hereafter granted by the Landlord to
conduct such incidental sales shall not be deemed to violate this covenant.
This exclusive shall terminate should this Lease be assigned, and as a result
of such assignment, the use of the Premises is changed from the primary use set
forth in Section 1.1(j) of this Lease or if the use of the Premises
is otherwise changed from the primary use set forth in
Section 1.1(j) of this Lease. Should Tenant become in default under
any provision of this Lease, then this exclusive shall terminate and be of no
further force or effect.

 

Landlord
reserves the right to lease (or consent to the use of) any space in the
Landlord’s Building without imposing any restriction on the use of such space
to any tenant whose principal business at the time the lease is made (or
consent is given) is that of department store, junior department store, variety
store, grocery store, drug store, or to any tenant initially occupying more
than 12,500 square feet of GLA, it being understood that Landlord shall not be
obligated to restrict the use of any of such space in any manner whatsoever.

 

	
   

  	
   

  	
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22

 

ARTICLE 27.
LIMIT ON COMMON AREA COSTS

 

Notwithstanding
the provisions of Article 8 of the Lease, Landlord agrees that Tenant will
not be required to pay its Proportionate Share of Controllable Common Area
Costs which exceeds $4.16 per square foot per annum, increased by 10% for each
calendar year for the initial term which has elapsed since the Commencement
Date.

 

Controllable
Common Area Costs are all of those Common Area Costs described in
Section 8.5 except for the costs of utilities furnished to the Common
Areas, snow removal costs and the costs of any services provided by
governmental authorities or agencies or any expenses relating to government
taxation.

 

ARTICLE 28.
OPTION TO EXTEND

 

Tenant
shall have the option, exercisable by written notice to Landlord, by certified
mail or nationally recognized overnight carrier, return receipt
requested, given not later than six (6) months prior to the expiration of
the initial Term and not earlier than nine (9) months prior to the
expiration of the term or the extended option, if any, as the case may be, to
extend the Lease for two (2) further terms of sixty (60) months each on
the same terms and conditions as provided in this Lease, except that:

 

(a)           Landlord shall have no obligation to make any
improvements to the Premises; and

 

(b)           Minimum Annual Rent for the first extended term
shall be as set forth below:

 

	
   

  	
  Months

  	
   

  	
  $ Per Square Foot Per Annum

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  61
  - 120

  	
   

  	
  95%
  of Fair Market Value

  	
   

  

 

(c)           Minimum Annual Rent for the second extended term
shall be as set forth below:

 

	
   

  	
  Months

  	
   

  	
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  121
  - 180

  	
   

  	
  95%
  of Fair Market Value

  	
   

  

 

(d)           Fair market value will be
equal to whatever monthly Minimum Annual Rent (plus whatever periodic
adjustments) Landlord is then quoting to prospective tenants for new leases of
comparable space in the Shopping Center for a comparable term (as confirmed by written
statement to Tenant by a representative of Landlord). Notwithstanding the above
provisions to the contrary: (A) in no event will the adjusted Minimum
Annual Rent be less than Minimum Rent for the immediately preceding period; and
(B) in the event Tenant has not agreed in writing to accept the monthly
Minimum Annual Rent ninety (90) days prior to the expiration of the then
existing term, Landlord at its option may terminate this Lease as of the
expiration of the then existing term.

 

(e)           There shall be no option to further extend the term.

 

Notwithstanding
the foregoing, this Option to Extend this Lease shall be deemed null and void
if one or more of the following has occurred:

 

1.             Tenant has been late in the payment of rent on three
(3) or more occasions within any twelve (12) month period. For this
purpose, a payment shall be deemed to be late if it is received by Landlord
after the second day of the month in which such rent is due.

 

2.Tenant has been late on three (3) or more occasions within any
twelve (12) month period in furnishing to Landlord the monthly sales reports
required by Article 4. For
this purpose, a report shall be deemed to be late it if is received by the
Landlord on or after the 21st day of the month.

 

3.2.          Tenant is in default in the
performance of any of its obligations under the Lease.

 

4.3.          Tenant has failed to give written notice by
certified mail, return receipt requested, to Landlord six (6) months prior to
the expiration of the initial term and not earlier than nine (9) months
prior to the expiration of the term.

 

5.4.          The Lease has ever been assigned in
violation of Section 17.1.

 

ARTICLE 29.
TENANT ALLOWANCE

 

Tenant
agrees to accept the Premises “as is”. Unless otherwise stated in this Article,
Landlord agrees to reimburse Tenant the amount stated in
Section 1.1(u) of this Lease as a tenant finish allowance. Said
allowance shall be due and payable to Tenant within thirty (30) days after the
following conditions have been met:

 

(a)           Tenant is open for business with the public in the
entire Premises and has paid the first month’s rent due in advance and security
deposit, if any.

 

	
   

  	
   

  	
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23

 

(b)           Tenant has furnished to Landlord original
affidavits, original lien waivers on Regency’s standard waiver form and paid
receipts for physical improvements performed within and for the Premises from
Tenant’s general contractor, and all sub-contractors and material suppliers. This
support provided to Landlord should be reasonably satisfactory in establishing
payment in full for all labor and materials, which may form a predicate for a
claim of lien against the Premises. The actual amount of the reimbursement will
be the lesser of the sum total of all the receipts or the amount stated in
Section 1.1(u) of this Lease.

 

(c)           A certificate of occupancy (or an equivalent) from
the governmental authority having jurisdiction has been delivered to Landlord.

 

(d)           Landlord has received and approved a copy of a HVAC
maintenance agreement as required by Section 13.2.

 

(e)           Landlord has received a certificate of insurance as
required by Section 11.4.

 

(f)            Receipt by Landlord of evidence that Tenant has paid
its utility deposits and local government impact fees.

 

(g)           Receipt by Landlord of Tenant’s As Built plans
confirming compliance with the Americans with Disabilities Act.

 

(h)           Receipt by Landlord of a Form W-9, Request for
Taxpayer Identification Number and Certification, executed by Tenant.

 

(i)            Tenant is not in default.

 

(j)            Tenant has installed its permanent signage on the
exterior of the Premises.

 

If
Tenant fails to request reimbursement of the tenant finish allowance within one
hundred eighty (180) days of receiving its certificate of occupancy for the
Premises, then this Section shall be deemed terminated and null and void.
Tenant may request an extension of the one hundred eighty (180) day period with
thirty (30) days prior written notice to Landlord.

 

ARTICLE 30. LANDLORD’S LIEN INTENTIONALLY
DELETED.

 

TO
SECURE THE PAYMENT OF ALL RENTAL AND OTHER SUMS OF MONEY DUE OR TO BECOME DUE
HEREUNDER AND THE FAITHFUL PERFORMANCE OF THIS LEASE BY TENANT, TENANT HEREBY
GRANTS TO LANDLORD AN EXPRESS FIRST AND PRIOR CONTRACTUAL LIEN AND SECURITY
INTEREST ON ALL PROPERTY (INCLUDING, BUT NOT LIMITED TO, FURNITURE, FIXTURES,
EQUIPMENT, INVENTORY, CHATTELS AND MERCHANDISE AND ALL ACCESSORIES THERETO AND
ALL PROCEEDS THEREOF) WHICH MAY BE PLACED ON THE PREMISES, AND ALSO UPON
ALL PROCEEDS OF ANY INSURANCE WHICH MAY ACCRUE TO TENANT BY REASON OF
DESTRUCTION OF OR DAMAGE TO ANY SUCH PROPERTY. SUCH PROPERTY SHALL NOT BE
REMOVED FROM THE PREMISES WITHOUT THE WRITTEN CONSENT OF LANDLORD UNTIL ALL
ARREARAGES IN RENTAL AND OTHER SUMS OF MONEY THEN DUE TO LANDLORD HEREUNDER
SHALL FIRST HAVE BEEN PAID. ALL EXEMPTION LAWS ARE HEREBY WAIVED IN FAVOR OF
SAID LIEN AND SECURITY INTEREST. THIS LIEN AND SECURITY INTEREST IS GIVEN IN
ADDITION TO LANDLORD’S STATUTORY LIEN AND SHALL BE CUMULATIVE THERETO. UPON THE
OCCURRENCE OF ANY EVENT OF DEFAULT, THIS LIEN MAY BE FORECLOSED WITH OR
WITHOUT COURT PROCEEDINGS, BY PUBLIC OR PRIVATE SALE, PROVIDED LANDLORD GIVES
TENANT AT LEAST TEN (10) DAYS NOTICE OF THE TIME AND PLACE OF SAID SALE,
AND LANDLORD SHALL HAVE THE RIGHT TO BECOME THE PURCHASER UPON BEING THE
HIGHEST BIDDER AT SUCH SALE. CONTEMPORANEOUSLY WITH THE EXECUTION OF THIS LEASE
(AND IF REQUESTED HEREINAFTER BY LANDLORD), TENANT SHALL EXECUTE AND DELIVER TO
LANDLORD UNIFORM COMMERCIAL CODE FINANCING STATEMENTS IN SUFFICIENT FORM SO
THAT, WHEN PROPERLY FILED, THE SECURITY INTEREST HEREBY GRANTED SHALL THEREUPON
BE PERFECTED. IF REQUESTED HEREAFTER BY LANDLORD, TENANT SHALL ALSO EXECUTE AND
DELIVER TO LANDLORD UNIFORM COMMERCIAL CODE FINANCING STATEMENTS IN
SUFFICIENT FORM TO REFLECT ANY AMENDMENT OR MODIFICATION IN OR EXTENSION
OF THE AFORESAID CONTRACTUAL LIEN AND SECURITY INTEREST HEREBY GRANTED. TENANT
HEREBY GRANTS TO LANDLORD TENANT’S POWER-OF-ATTORNEY TO EXECUTE SAID FINANCING
STATEMENTS IN TENANT’S NAME, PLACE AMD STEAD. SAID POWER IS COUPLED WITH AN
INTEREST AND IS IRREVOCABLE. LANDLORD SHALL, IN ADDITION TO ALL OF LANDLORD’S
RIGHTS HEREUNDER, HAVE ALL OF THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER
THE UNIFORM COMMERCIAL CODE AS ADOPTED IN THE STATE IN WHICH THE PREMISES
ARE LOCATED. A COPY OF THIS LEASE MAY BE FILED AS A NON STANDARD FINANCING
STATEMENT.

 

ARTICLE 30.
AUDIT RIGHT PROVISION

 

Subject
to the limitations and restrictions below, Tenant shall have the right, at its
sole cost and expense,

 

	
   

  	
   

  	
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24

 

IN WITNESS WHEREOF, Landlord and
Tenant have duly executed this Lease as of the day and year first above
written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  REGENCY CENTERS, LP.

  
	
   

  	
  a
  Delaware limited partnership

  
	
   

  	
  By:
  Regency Centers Corporation

  
	
   

  	
  a
  Florida corporation

  
	
   

  	
  Its:
  General Partner

  

 

 

	
   

  	
  By:

  	
  /s/ Eric Li

  
	
   

  	
  Print
  Name:

  	
  Eric
  Li

  
	
   

  	
  Its:

  	
  Vice
  President

  

 

 

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  WILSHIRE STATE BANK

  
	
   

  	
  a
  California corporation

  

 

	
   

  	
   

  	
   

  	
  /s/ David Kim

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  David Kim

  
	
   

  	
  Its:

  	
  Sr. V.P

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Joanne Kim

  
	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
  Joanne Kim

  
	
   

  	
   

  	
  Its:

  	
  President and CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tax
  I.D.#:

  	
  95-3509631

  

 

CALIFORNIA
Execution:

 

Corporate: This Lease must be executed
for Tenant, if a California corporation, by two (2) officers of such
corporation one being the chairman of the board, the president or a vice
president, and the other being the secretary, an assistant secretary, the chief
financial officer or an assistant treasurer. If one (1) individual is signing
in two (2) of the foregoing capacities, that individual must sign twice;
once as an officer and again as the other officer. If there is only one
(1) individual signing in two (2) capacities, or if the two
(2) signatories do not satisfy the requirements of (A) above, then
Tenant shall deliver to Landlord a certified copy of a corporate resolution in
a form reasonably acceptable to Landlord authorizing the signatory(ies) to
execute this Lease, unless the bylaws or a resolution of the Board of Directors
shall otherwise provide, in which event, a certified copy of the bylaws or
resolution, as the case may be, must be furnished. Also, the corporate seal of
Tenant, if Tenant has such a seal, must be affixed. If Tenant is a corporation
incorporated in a state other than California, then Tenant shall deliver to
Landlord a certified copy of a corporate resolution in a form reasonably
acceptable to Landlord authorizing the signatory(ies) to execute this Lease.

 

	
   

  	
   

  	
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25

 

EXHIBIT A

 

LEGAL
DESCRIPTION

 

PARCEL
B OF PARCEL MAP L.A. NO. 1744, IN THE CITY OF LOS ANGELES, IN THE COUNTRY OF
LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 22 PAGE 46 OF PARCEL
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

 

EXCEPT
THE NORTHEAST 400.00 FEET THEREOF.

 

ALSO
EXCEPT SUBTERRANEAN MINERAL RIGHTS, INCLUDING OIL AND GAS RIGHTS, BELOW A DEPT
OF 500.00 FEET BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AND INCLUDING ALL
EASEMENT AND APPURTENANCES THERETO, TOGETHER WTH ANY RIGHT, TITLE AND INTEREST
OF GRANTOR IN RIGHT-OF-WAY OR UTILITY AGREEMENTS, AS SET FORTH IN DEED RECORDED
JUNE 10, 1988 AS INSTRUMENT NO. 88-927207, OF OFFICIAL RECORDS

 

	
   

  	
   

  	
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EXHIBIT B

 

PART 1
- SITE PLAN OF SHOPPING CENTER LAND

 

 

 

	
   

  	
   

  	
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EXHIBIT B

 

PART 2
- LEASING PLAN

 

 

 

	
   

  	
   

  	
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EXHIBIT C

 

DESCRIPTION
OF TENANT’S WORK AND WORK TO BE PERFORMED BY LANDLORD

 

A.            Procedure for the
Preparation and Approval of Working Drawings and Specifications.

 

Tenant
shall, within ten (10) days after the date of execution of this Lease,
deliver to the Landlord for its review and approval two (2) sets of
drawings and specifications for the Tenants proposed improvements to the
Premises. One set will be returned to the Tenant and one set will be retained
by the Landlord. Such drawings shall consist of at least a site plan (if
sitework changes to utilities, paving, landscaping, mechanical, electrical, or
plumbing systems etc. are proposed), a floor plan, and exterior building
elevations (if any modifications are proposed to the storefront or exterior
walls) done at a reasonable scale, which will convey detail and intent, as well
as an indication of color selection and graphics. Storefront elevations shall
include specification of materials and color scheme. The following conditions,
as applicable, are to be clearly detailed on the drawings:

 

New roof penetrations, including plumbing penetrations for vent stacks,
or any modifications to the roof system

New equipment (satellite dishes, HVAC, etc.) installed on the roof

Underground utility changes and pavement demolition/replacement

Modifications to exterior walls to include new doors, windows,
finishes, etc.

Anything to be mounted on the exterior walls

Changes to electrical, water, or gas service

Changes to the concrete floor slab

Grease trap location

 

If
Landlord does not, within fourteen (14) days after receipt of the Tenant’s
preliminary plans, indicate its disapproval, the same shall be deemed approved.
However, Landlord shall not be responsible for items noted or inferred to be
furnished and installed by Landlord unless item is specifically noted in
paragraph B or Exhibit C-2.

 

If
Tenant fails to submit its plans and specifications within the 10-day period
provided in paragraph 1, the Landlord may, at its option, in addition to all
other remedies available for Tenant’s default, have the sole right to cancel
this Lease. Indulgences granted to Tenant shall not be construed to be a waiver
of the provisions of this paragraph. Time is of the essence of this agreement.

 

Tenant
shall have access to change locks upon Landlord’s receipt of two (2) sets
of plans, contractor’s insurance and Tenant’s acceptance of space. Tenant will
pay costs of lock change and must make appointment with Landlord.

 

B.            Landlord’s Work.

 

LANDLORD
HAS NO OBLIGATION TO PERFORM ANY WORK WITHIN THE PREMISES OR THE SHOPPING
CENTER UNLESS STATED IN EXHIBIT “C-2”. IF NO EXHIBIT “C-2” IS ATTACHED (AND
SIGNED BY BOTH LANDLORD AND TENANT), TENANT AGREES TO ACCEPT THE PREMISES IN
ITS CONDITION “AS IS” AND SHALL BE OBLIGATED TO PERFORM SUCH WORK AS IS NECESSARY
TO RENDER THE PREMISES USEFUL FOR THE PURPOSES LEASED.

 

C.            Tenant’s Work.

 

All
work not specifically described as Landlord’s obligation in Exhibit “C-2”
shall be the obligation of Tenant and shall be performed in accordance with
approved plans and specifications at the sole cost of Tenant. The following
work shall be at the sole expense of the Tenant and shall be subject to the
approval of the Landlord, unless otherwise expressly provided herein:

 

1.          Furniture and Fixtures - all furniture, furnishings, trade
fixtures and related parts, all of which shall be now unless otherwise
approved by Landlord as customarily found in other first class shopping
centers.

 

2.          Fixture and Equipment Connections - electrical and
mechanical connection of all merchandising, lighting, floor and wall fixtures
or equipment and related parts, including kitchen and food service equipment
and other equipment peculiar to Tenant’s occupancy.

 

3.          Outdoor seating plan if local ordinance allows.

 

4.          Approved Fire Protection Devices - approved fire
extinguishers or fire protection devices in size, type and quantity throughout
the Premises as required by code and standards of governing insurance rating
boards.

 

5.          All Signs and Graphics - the design, installation and
location of all signs, exit signs and emergency lighting. Landlord must approve
all signs prior to any installation. Signage will be solely Tenant’s
responsibility. Landlord will not be responsible for compliance with city
ordinances or liable for Tenant’s contractor actions.

 

	
   

  	
   

  	
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EXHIBIT C-1

 

SIGN
CRITERIA

 

A.            INTRODUCTION

 

These criteria have been established for the purpose
of assuring an outstanding shopping center and for the mutual benefit of all tenants.
The criteria will also provide guidelines necessary to achieve a visually
coordinated balance and appealing signage environment. Conformance will be
strictly enforced and any installed nonconforming or unapproved signs must be
brought into conformance at Tenant’s sole cost and expense. Tenant must use
qualified licensed contractors under the following guidelines. Landlord retains
full rights of approval of any sign used in the Shopping Center, and no sign
shall be installed and/or fabricated without Landlord’s written approval before
a city permit is sought

 

B.            GENERAL
REQUIREMENTS

 

1.                                      Prior to applying for a sign permit. Tenant shall submit or cause to be
submitted to Landlord for approval before fabrication three (3) copies of
detailed scale drawings (one in full color) indicating the location, size,
layout, illumination, materials, design, colors and installation details of the
proposed signs, including all lettering and graphics.

 

2.                                      All required permits and approvals for signs and their installation shall
be obtained by Tenant or his representative prior to contractual agreement,
fabrication and installation.

 

3.                                      Tenant shall be responsible for the fulfillment of all requirements and
specifications, including those of the local municipality and the Uniform
Electrical Code.

 

4.                                      All signs shall be constructed and installed at Tenant’s sole cost and
expense.

 

5.                                      All signs shall be reviewed by Landlord for conformance with these
criteria and for overall design quality. Approval or disapproval of sign submittals
based on aesthetics of design shall remain the right of Landlord, in its sole
cost and expense, and the local governmental agencies having jurisdiction in
such matters.

 

6.                                      If Tenant is a tenant of a multi-sided freestanding buildings, its signage
will be considered on an individual basis subject to Landlord’s criteria and
city sign ordinances. Total sign area shall not exceed one square foot per
lineal foot of leased frontage.

 

7.                                      Signage for Major Tenants (5,000 square feet minimum with five or more
locations) will be considered on an individual basis subject to Landlord’s
approval and city sign ordinances.

 

C.                                   GENERAL
SPECIFICATIONS

 

1.                                      Tenant signs on the sign fascia shall be of self illuminated individual
channel letters which are shaped to the configuration of the Tenant sign copy
and/or logo. Illuminated background cabinet or box signs will not be permitted.

 

2.                                      Sign shall consist of metal channel letters with plexiglas face and
internal neon tube illumination.

 

3.                                      Projections above or below the sign panel are not permitted.

 

4.                                      The width of Tenant’s graphics on the sign fascial shall not exceed
seventy percent (70%) of the width of the store or shop. The base line of each
letter is to be installed one foot up from the bottom of the sign band. The
sign is to be centered horizontally on the sign band, unless specific Landlord
approval is obtained.

 

5.                                      Maximum vertical letter height is 20 inches for stores with 20 feet or
greater frontage and 18 inches or less for stores with less than 20 feet frontage.
Logo boxes shall be no larger in vertical height than the channel letter
height. Logos shall only be permitted is approved by the local municipality
and, in any event, shall only be permitted if they are a patented trademark of
Tenant and shall not exceed 10% of sign area and shall be incorporated in total
sign area. Major Tenants will be evaluated on an individual basis.

 

6.                                      Signage may be applied to the inside glass storefront of a tenant space
provided such signage does not cover more than 20% of the glass storefront, if
permitted under current municipal code.

 

7.                                      Location of all openings for conduits in building walls shall be
indicated on sign drawings submitted to Landlord.

 

8.                                      Except as provided herein, no restrictions are placed on style or position
of graphics except that they shall be of good taste and design. Creative design
is encouraged.

 

9.                                      Tenants shall identification signs designed in a manner compatible with
and complimentary to adjacent and facing storefronts and the overall design concept
of the center.

 

10.                                Tenant shall be permitted to place upon its premises not more than 144
square inches of decal lettering indicating hours of business, emergency
telephone numbers, etc.

 

11.                                Except as provided herein, no advertising placards, banners, pennants,
insignia or other material shall be affixed or maintained upon the glass panes
and supports of the show windows and doors or on the exterior walls of the
building.

 

12.                                If tenant has a noncustomer door for receiving merchandise, Tenant may have
uniformly applied 2-inch high block letters with Tenant’s name and address.
Color of letter will be as selected by Landlord and will be consistent
throughout the center.

 

	
   

  	
   

  	
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EXHIBIT C-1

 

SIGN
CRITERIA

 

13.           No animated, flashing, audible,
off-premise or vehicle signs are permitted.

 

14.           No exposed lamps, tubing or neon are
permitted.

 

15.           No signs that encroach into the
proximity of utilities are permitted.

 

16.           No exposed raceways, crossovers,
conduits, conductors, transformers, etc., are permitted.

 

17.           Painted lettering is not permitted.

 

D.            CONSTRUCTION
REQUIREMENTS

 

1.                                       Tenant is responsible for the installation and maintenance of sign
illumination.

 

2.                                       Tenant is fully responsible for the operations of Tenant’s sign
contractors.

 

3.                                       Tenant’s sign contractor will repair any damage to center caused by same.

 

4.                                       All penetrations of the building structure required by sign installation
shall be sealed in a watertight and workmanlike condition and shall be patched
to match adjacent finish.

 

5.                                       Electrical conduit, junction boxes and the like are to be concealed.

 

6.                                       Letter fasteners and clips are to be concealed and be of galvanized,
stainless or aluminum metals.

 

7.                                       No labels are permitted on the exposed surfaces of signs, except those
required by local ordinance which shall be placed in an inconspicuous location.

 

8.                                       Plastic surfaces are to be Rohm Hass Co. 3/16” Plexiglas as manufactured
for outdoor advertising. Colors will be considered on an individual basis. Each
sign shall contain one face color, unless Tenant is a Major Tenant, in which
case color will be subject to the approval of Landlord and City.

 

9.                                       All letters shall be fabricated using full welded construction.

 

10.                                 3/4”  trimcap retainers
shall be used at the perimeter of all letters. Color of trimcap retainers is to
match color of plex face.

 

11.                                 Side returns to be minimum 5”. Color to be painted same color as plex
face.

 

12.                                 Tenant will be responsible for providing installation and connection of
sign display and primary wiring at sign location stipulated by Landlord. All
signs to be connected to “J” box provided by Landlord which is connected and
controlled at Landlord’s house panel for uniform control of hours of illumination.

 

13.                                 Internal illumination to be 30 mill-amp neon installation labeled in
accordance with the “National Board of Fire Underwriters Specifications.”

 

14.                                 Tenant shall be required to have any discrepancies and/or code violations
corrected at Tenant’s expense. Any cod violations or discrepancies not
corrected within 15 days of Tenant’s receipt of notice from Landlord may be
corrected by Landlord at Tenant’s expense.

 

	
   

  	
   

  	
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EXHIBIT E

 

REQUIREMENTS
AND RESTRICTIONS

 

Tenant:

 

1.   will not, without Landlord’s
consent, conduct or permit to be conducted any auction, fire, bankruptcy or
going-out-of-business sales, or similar type sale, in connection with the
Premises; provided, however, that this provision shall not restrict the
absolute freedom of Tenant to determine its own selling prices nor shall it
preclude the conduct of periodic seasonal, promotional or clearance sales;

 

2.   will not use or permit the
use of any apparatus for sound reproduction or transmission or of any musical
instrument in such manner that the sounds so reproduced, transmitted or
produced shall be audible beyond the interior of the Premises; will not utilize
an advertising medium within the Shopping Center which can be seen, heard or
experienced outside the Premises, including, but not limited to, flashing
lights, searchlights, loudspeakers, phonographs, radio or television; will not
display, paint or cause to be displayed, painted or placed, any handbills,
bumper stickers or other advertising devises on any vehicle parked in the
parking area of the Shopping Center; will not distribute, or cause to be
distributed, in the Shopping Center any handbills or other advertising devices;
and will not conduct or permit any activities that might constitute a nuisance;

 

3.   will keep all mechanical
apparatus free of vibration and noise which may be transmitted beyond the
confines of the Premises; will not cause or permit strong, unusual, offensive
or objectionable noise, odors, fumes, dust or vapors to emanate or be dispelled
from the Premises; will not burn trash or store or permit accumulations of any
trash, garbage, rubbish or other refuse outside of the Premises except in
compactors or other receptacles approved by Landlord;

 

4.   will not load or permit the
loading or unloading of merchandise, supplies or other property, nor ship, nor
receive, outside the area and entrance designated therefor by Landlord from
time to time; will not permit the parking or standing, outside of said area, of
trucks, trailers or other vehicles or equipment engaged in such loading or
unloading in a manner to interfere with the use of any Common Areas or any
pedestrian or vehicular use and good shopping center practice; will use its
best efforts to complete or cause to be completed all deliveries, loading,
unloading and services to the Premises prior to 10:00 a.m. each day;

 

5.   will not paint or decorate
any part of the exterior of the Premises, or change the architectural treatment
thereof, or install any visible protective devices such as burglar bars or
security shutters or window tinting, without first obtaining Landlord’s written
approval; and will remove promptly upon order of Landlord any paint, decoration
or protective device which has been applied to or installed upon the exterior
of the Premises without Landlord’s prior approval, or take such other action
with reference thereto as Landlord may direct;

 

6.   will keep the inside and
outside of all glass in the doors and windows of the Premises clean; will not
place or maintain any merchandise, vending machines or other articles in the
vestibule or entry of the Premises, on the footwalks adjacent thereto or
elsewhere on the exterior thereof; will maintain the Premises at its own
expense in a clean, orderly and sanitary condition and free of insects,
rodents, vermin and other pests; and will keep refuse in proper containers on
the interior of the Premises until removed from the Premises;

 

7.   will comply (at its sole cost
and expense) with all laws, rules, regulations, orders and guidelines now or
hereafter in force relating to or affecting the use, occupancy, alteration or
improvement of the Premises, including parking requirements (“Laws”) and will
not use or permit the use of any portion of the Premises for any unlawful
purpose or in violation of any recorded covenants, conditions and restrictions
affecting the Shopping Center;

 

8.   will not place, permit or
maintain on the exterior walls or roof of the Premises any sign, advertising
matter, decoration, lettering, insignia, emblems, trademark or descriptive
material (herein called “Signs”) and will not permit any Signs to remain or be
placed on any window or door of the Premises unless the same have been approved
in writing by Landlord; and will maintain any and all Signs as may be approved
in good condition and repair at all times, Landlord reserving the right to do
so at Tenant’s expense if Tenant fails to do so after five (5) days’
notice from Landlord; Tenant acknowledges that it will install its approved
Signs within thirty (30) days from date of possession of the Premises;

 

9.   will keep the display windows
in the Premises electrically lighted and any and all electric signs lighted
during all other periods that a majority of tenants are open for business in
the Shopping Center; and

 

10.    will not use the sidewalks
adjacent to the Premises, or any other space outside of the Premises, for the
sale or display of any merchandise or for other business, occupation or
undertaking.

 

	
   

  	
   

  	
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  /s/ [ILLEGIBLE]Exhibit 10.33

 

Roosevelt
Avenue Corp

 

to

 

Wilshire
State Bank

 

 

Agreement
of Lease

 

 

Premises:

 

150-24 Northern Blvd., Flushing, New York

 

 

THIS LEASE AGREEMENT (“Lease”) made as of this 2nd day of September,
2008 between Roosevelt Avenue Corp., a New York corporation having its
address at 30-50 Whitestone Expressway, Suite 201, Flushing, New York
(“Landlord”) and Wilshire State Bank, a California banking corporation having
its office at 3200 Wilshire Blvd., Los Angeles, California 90010 (“Tenant”).

 

WITNESSETH:

 

1.     Premises: Landlord hereby Leases to Tenant and Tenant hereby
Leases from Landlord, the Premises known as 150-24 Northern Blvd., Unit G4,
Flushing, New York (the “Premises”), shown as Exhibit “A” attached hereto.
In addition, Landlord grants to Tenant the right to use, on a non-exclusive
basis and in common with other tenants, the Common Areas.

 

2.     Term: This Lease is for a term of TEN (10) years (or
until such term shall otherwise cease or expire as hereinafter provided).
Landlord and Tenant expressly covenant that the term of this Lease shall
commence on the Commencement Date and, unless sooner terminated or extended as
hereinafter provided, shall end on the Expiration Date. If Landlord does not
tender possession on the Premises to Tenant on or before any specified date,
for any reason whatsoever, Landlord shall not be liable for any damage thereby,
this Lease shall not be void or voidable thereby, and the Term shall not
commence until Landlord tenders possession of the Premises to tenant. Landlord
shall be deemed to have tendered possession of the Premises to Tenant upon the
giving of notice by Landlord to Tenant stating that the Premises are vacant, in
the condition required by this Lease and available for Tenant’s occupancy. No
failure to tender possession of the Premises to Tenant on or before specified
date shall affect any other obligations of Tenant hereunder. There shall be no
postponement of the Commencement Date (or the Rent Commencement Date) for (i) any
delay in the delivery of possession of the Premises which results from any
Tenant Delay or (ii) any delay by Landlord in the performance of any Punch
List Items relating to Landlord’s Work. Once the Commencement Date is
determined, Landlord and Tenant shall execute an agreement stating the
Commencement Date, Rent Commencement Date and Expiration Date, but the failure
to do so will not affect the determination of such dates. For purposes of
determining whether Tenant has accepted possession of the Premises, Tenant is
deemed to have possession if (i) Tenant receives the “lock and key” to the
premises; (ii) Tenant has an access and has the control over the premises;
(iii) Tenant moves Tenant’s property into the premises; or (iv) any
of Tenant’s agents, personnel or contractor begins work within the premises.

 

3.     Use: The Premises shall be solely used for the operation of
bank and banking related business and for no other purposes unless approved in
writing by Landlord. Tenant shall have a right to install ATM machines within
the demised Premises with Landlord’s prior approval for the location, provided
that such use is in accordance with the Certificate of Occupancy for the
Premises and for no other purpose.

 

The permitted use stated herein authorized by the
Landlord shall not be construed to be a waiver of any and all licenses or
permits that the Tenant must receive from various government and/or private
organizations. Failure by Tenant to receive such licenses or permits shall be
considered a default of this Lease and this Lease will be immediately
terminated.

 

2

 

4.     Rent: During the term hereof Tenant shall pay to Landlord at
the office of Landlord, without set off or deduction for any reason whatsoever,
monthly, on the first day of each and every month in advance, the following
rental rates (“Fixed Rent”), except that the first month’s rent shall be paid
on the execution hereof:

 

	
  Year

  	
   

  	
  Period

  	
   

  	
  Monthly Rent

  	
   

  	
  Annual Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  12/20/08
  –  12/19/09

  	
   

  	
  $

  	
  13,000.00

  	
   

  	
  $

  	
  156,000.00

  	
   

  
	
  2

  	
   

  	
  12/20/09
  –  12/19/10

  	
   

  	
  $

  	
  13,390.00

  	
   

  	
  $

  	
  160,680.00

  	
   

  
	
  3

  	
   

  	
  12/20/10
  – 12/19/11

  	
   

  	
  $

  	
  13,791.70

  	
   

  	
  $

  	
  165,500.40

  	
   

  
	
  4

  	
   

  	
  12/20/11
  –  12/19/12

  	
   

  	
  $

  	
  14,205.45

  	
   

  	
  $

  	
  170,465.40

  	
   

  
	
  5

  	
   

  	
  12/20/12
  –  12/19/13

  	
   

  	
  $

  	
  14,631.61

  	
   

  	
  $

  	
  175,579.32

  	
   

  
	
  6

  	
   

  	
  12/20/13
  –  12/19/14

  	
   

  	
  $

  	
  15,070.56

  	
   

  	
  $

  	
  180,846.72

  	
   

  
	
  7

  	
   

  	
  12/20/14
  –  12/19/15

  	
   

  	
  $

  	
  15,522.68

  	
   

  	
  $

  	
  186,272.16

  	
   

  
	
  8

  	
   

  	
  12/20/15
  –  12/19/16

  	
   

  	
  $

  	
  15,988.36

  	
   

  	
  $

  	
  191,860.32

  	
   

  
	
  9

  	
   

  	
  12/20/16
  –  12/19/17

  	
   

  	
  $

  	
  16,468.01

  	
   

  	
  $

  	
  197,616.12

  	
   

  
	
  10

  	
   

  	
  12/20/17
  –  12/19/18

  	
   

  	
  $

  	
  16,962.05

  	
   

  	
  $

  	
  203,544.60

  	
   

  

 

(a)          The Lease Commences from the
date of execution of this Lease and Landlord provides three month fixed rent
abatement to Tenant starting from the date of Lease Commencement and thus, the
rent is payable on Rent Commencement date; all additional rents including,
without limitation, operating expense charges other than the fixed rent are due
and payable from the Lease commencement date; furthermore, the Landlord shall
give additional rent abatement up to three month if the tenant is unable to
obtain necessary permits despite its best efforts to obtain such permits due to
existing violations, if any, against to the Premises.

 

(b)         If the Rent Commencement
Date is not the first day of a month, then on the Rent Commencement Date Tenant
shall pay proportioned Fixed Rent for the period from the rent Commencement Date
through the last day of such month.

 

(c)          All Fixed Rent and
Additional Rent (collectively hereinafter referred to as “rent”) shall be paid
in such coin or currency (or, subject to collection, by good check payable in
such coin or currency) of the United States of America as at the time shall be
legal tender for the payment of public and private debts, at the office of
Landlord as set forth above, or at such place and to such person as Landlord
from time to time may designate.

 

5.  Additional Rent

 

(a)          Taxes: Tenant shall pay to Landlord Five (5%) of any
and all real estate taxes assessed to the building located at 150-24 Northern
Blvd., Unit G4, Flushing, New York, Block 5032 and Lot 16 within which the
Premises is located starting from fiscal year of 2009/2010. The term “real
estate taxes” or “taxes” when used
in this Article shall also include assessments, Business Improvement
District Charges (“Bid”) and any other charge or levy which shall be a

 

3

 

4.     Rent: During the term
hereof Tenant shall pay to Landlord at the office of Landlord, without set off
or deduction for any reason whatsoever, monthly, on the first day of each and
every month in advance, the following rental rates (“Fixed Rent”), except that
the first month’s rent shall be paid on the execution hereof:

 

	
  Year

  	
   

  	
  Period

  	
   

  	
  Monthly Rent

  	
   

  	
  Annual Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  8/1/08
  – 7/31/09

  	
   

  	
  $

  	
  13,000.00

  	
   

  	
  $

  	
  156,000.00

  	
   

  
	
  2

  	
   

  	
  8/1/09
  – 7/31/10

  	
   

  	
  $

  	
  13,390.00

  	
   

  	
  $

  	
  160,680.00

  	
   

  
	
  3

  	
   

  	
  8/1/10
  – 7/31/11

  	
   

  	
  $

  	
  13,791.70

  	
   

  	
  $

  	
  165,500.40

  	
   

  
	
  4

  	
   

  	
  8/1/11
  – 7/31/12

  	
   

  	
  $

  	
  14,205.45

  	
   

  	
  $

  	
  170,465.40

  	
   

  
	
  5

  	
   

  	
  8/1/12
  – 7/31/13

  	
   

  	
  $

  	
  14,631.61

  	
   

  	
  $

  	
  175,579.32

  	
   

  
	
  6

  	
   

  	
  8/1/13
  – 7/31/14

  	
   

  	
  $

  	
  15,070.56

  	
   

  	
  $

  	
  180,846.72

  	
   

  
	
  7

  	
   

  	
  8/1/14
  – 7/31/15

  	
   

  	
  $

  	
  15,522.68

  	
   

  	
  $

  	
  186,272.16

  	
   

  
	
  8

  	
   

  	
  8/1/15
  – 7/31/16

  	
   

  	
  $

  	
  15,988.36

  	
   

  	
  $

  	
  191,860.32

  	
   

  
	
  9

  	
   

  	
  8/1/16
  – 7/31/17

  	
   

  	
  $

  	
  16,468.01

  	
   

  	
  $

  	
  197,616.12

  	
   

  
	
  10

  	
   

  	
  8/1/17
  – 7/31/18

  	
   

  	
  $

  	
  16,962.05

  	
   

  	
  $

  	
  203,544.60

  	
   

  

 

(a)          The Lease Commences from the
date of execution of this Lease and Landlord provides three month fixed rent
abatement to Tenant starting from the date of Lease Commencement and thus, the
rent is payable on Rent Commencement date; all additional rents including,
without limitation, operating expense charges other than the fixed rent are due
and payable from the Lease commencement date; furthermore, the Landlord shall
give additional rent abatement up to three month if the tenant is unable to
obtain necessary permits despite its best efforts to obtain such permits due to
existing violations, if any, against to the Premises.

 

(b)         If the Rent Commencement
Date is not the first day of a month, then on the Rent Commencement Date Tenant
shall pay proportioned Fixed Rent for the period from the rent Commencement
Date through the last day of such month.

 

(c)          All Fixed Rent and
Additional Rent (collectively hereinafter referred to as “rent”) shall be paid
in such coin or currency (or, subject to collection, by good check payable in
such coin or currency) of the United States of America as at the time shall be
legal tender for the payment of public and private debts, at the office of
Landlord as set forth above, or at such place and to such person as Landlord
from time to time may designate.

 

5.  Additional Rent

 

(a)    Taxes:
Tenant shall pay to Landlord Five (5%) of any and all real estate taxes
assessed to the building located at 150-24 Northern Blvd, Unit G4. Flushing,
New York, Block 5032 and Lot 16 within which the Premises is located starting
from fiscal year of 2009/2010. The term “real estate taxes” or ‘“taxes” when
used in this Article shall also include assessments, Business Improvement
District Charges (“Bid”) and any other charge or levy which shall be a

 

3

 

charge
upon the realty as such. A copy of real estate tax bill issued form a
government and/or government agencies, which has jurisdiction over this
property, shall suffice as evidence to prove the real estate tax amount for any
given fiscal tax year.

 

(b)  Operating Expenses: Tenant shall pay to Landlord eleven and a half
(11.5%) percent of the monthly Fixed Rent as Operating Expense for the Building
which includes, without limitation, common area electricity charges and water
and sewer charges, overall building and parking lot maintenance fees and
expenses.

 

(i)            Sprinklers:
The sprinkler system in the Premises is part of a sprinkler system in other
premises. Tenant shall pay NONE of
all costs related to the entire sprinkler system, including but not limited to,
the cost of sprinkler alarm and supervisory service, inspections and tests,
whenever such tests are required by contract, by an insurance rating or service
organization, by the Fire Department or any other governmental authority or by
law. Tenant shall also pay NONE of the
cost of repairs and replacements to said entire sprinkler system; provided
however, that if any such repair or replacement, wherever it occurs, is caused
by Tenant’s act or omission, or the act or omission of Tenant’s employees,
agents, invitees, licensees or contractors, Tenant shall pay the entire cost of
such repair or replacement, irrespective of the cost. All payments to be made
pursuant to this Article shall be deemed additional rent and shall be paid
to Landlord when Tenant receives a bill therefor.

 

(ii)           Parking
Space: Landlord shall at least reserve three (3) parking spaces during the
Tenant’s normal business hours strictly for the use of Tenant’s customers.

 

(iii)          Utilities
and Cleaning:  (a) Tenant shall pay
the entire cost to heat, cool  and light of the demised Premises as well as for all electricity, gas
and other energy used by Tenant. Tenant shall not permit the temperature in the
Premises to fall below freezing and shall keep the plumbing and water lines in
the Premises, exposed and unexposed, from freezing; (b) Tenant shall, at
Tenant’s expense, keep the Premises, including the windows, clean, and in order
and free from vermin and if the Premises are situated on the ground floor,
Tenant shall keep the adjacent sidewalks clean and free from rubbish, refuse,
snow, ice, mud and debris, if applicable. Tenant, at Tenant’s expense shall
independently contract for the removal of Tenant’s refuse and rubbish.

 

(iv)          Tenant
shall install a separate sub-meter for water, sewer, gas, electricity  or any other utility at
Tenant’s own cost and solely responsible to pay such bills in a timely manner
and it is deemed Additional Rent.

 

(c)   Charges for real estate tax increases, assessments, sewer and
water charges and other operating expenses shall constitute additional rent.
Tenant shall pay such charges promptly after Landlord renders a bill therefor.
Whenever any assessment is payable in installments, Tenant shall be responsible
to pay for only those installments falling due within the term of this Lease or
any extended term.

 

6.    Security: (a) Tenant has deposited
with Landlord the sum of NONE as security
in a non-interest bearing account for the faithful performance and observance
by Tenant of the terms,

 

4

 

provisions
and conditions of this Lease; this money is not required to be deposited in a
separate bank account but can be deposited in the Landlord’s general bank
account and commingled with other monies within the account; it is agreed that
in the event Tenant defaults in respect of any of the terms, provisions and
conditions of this Lease, including, but not limited to, the payment of rent
and additional rent, Landlord may use, apply or retain the whole or any part of
the security so deposited to the extent required for the payment of any rent
and additional rent or any other sum as to which Tenant is in default or for
any sum which Landlord may expend or may be required to expend by reason of
Tenant’s default in respect of any of the terms, covenants and conditions of
this Lease, including but not limited to, any damages or deficiencies in the re-letting
of the Premises, whether such damages or deficiency accrued before or after
summary proceedings or other re-entry by Landlord. In the event that Tenant
shall fully and faithfully comply with all of the terms, provisions, covenants
and conditions of this Lease, the security shall be returned to Tenant after
the date fixed as the end of the Lease and after delivery of entire possession
of the Premises to Landlord. In the event of a sale of the land and building or
leasing of the building of which the Premises form a part, Landlord shall have
the right to transfer the security to the vendee or lessee and Landlord shall
thereupon be released by Tenant from all liability for the return of such
security, and Tenant agrees to look to the new owner of the building or
building lessee solely for the return of said security; and it is agreed that
the provisions hereof shall apply to every transfer or assignment made of the
security to a new owner of the building or building lessee. Tenant further
covenants that it will not assign or encumber the monies deposited herein as
security and that neither Landlord nor its successors or assigns shall be bound
by any such assignment, encumbrance, attempted assignment or attempted
encumbrance.

 

(b) Additional
Security: Intentionally omitted

 

7.     Repairs: (a) Tenant, at Tenant’s sole cost and expense,
shall take good care of the Premises and the equipment, fixtures, systems and
appurtenances thereof, and keep, put and maintain the same, and every part
thereof, together with any and all alterations, additions and improvements
thereto, in good repair and condition and make and do all repairs, alterations,
additions or changes of any and every kind and nature that may be necessary or
be required to the Premises, including, without limitation, its plumbing
(including water meters), heating, cooling and electrical systems and said
‘systems’ pipes and lines and the doors, floors, windows and the equipment,
fixtures and appurtenances, therein whether the same be ordinary, extraordinary,
foreseen or unforeseen, or of any other nature and Tenant shall, in the event
anything is required to be replaced, at Tenant’s sole cost and expense, replace
and renew the same with like kind and quality so that at all times the Premises
shall be in thoroughly good order and repair. Tenant shall keep the roof and
roof drains free from debris.

 

(b)    Notwithstanding
anything to the contrary set forth in paragraph (a) of this Article,
Landlord shall repair roof leaks and shall make structural repairs to the exterior
walls and load-bearing members of the Premises. Landlord shall not be required
to make any repair or replacement under this paragraph (b) unless Tenant
has given notice to Landlord of the necessity therefor. Tenant, not Landlord,
shall make all roof repairs arising out of the penetration of the roof by
Tenant’s improvements including, but not limited to, vents, fans and Tenant’s
HVAC systems, anything to the contrary in this paragraph or Lease
notwithstanding.

 

5

 

(c)    If
any repair or replacement required to be made by Landlord under paragraph (b) of
this Article is necessitated by the act or omission of Tenant, its agents,
employees, invitees, licensees or contractors or by trespassers, Tenant shall
be responsible to make and pay for such repair or replacement. Landlord’s sole
obligation for repairs and replacements shall be as set forth in paragraph (b) of
this Article and in the case of fire or other casualty as set forth in Article 41.
All other repairs and replacements shall be made by Tenant.

 

(d)    Except
as specifically set forth in Article 39 or elsewhere in this Lease, there
shall be no allowance to Tenant for a diminution of rental value and no
liability on the part of Landlord by reason of inconvenience, annoyance or
injury to business arising from Landlord’s, Tenant’s or others’ making or
failing to make any repairs, alterations, additions or improvements in or to
any portion of the building or the Premises or in and to the fixtures,
appurtenances or equipment thereof. The provisions of this Article 7 with
respect to the making of repairs shall not apply in the case of fire or other
casualty with regard to which Article 10 hereof shall apply.

 

(e)    The
Tenant shall promptly replace any and all broken glass with the original style
and color on the premises at its own cost and expense. The Tenant may maintain
and pay for plate glass insurance on said premises; but in the absence of any such
insurance, the Tenant shall remain liable for any damage to the glass occurring
in the demised premises during the term of this Lease or any extension or
renewal thereof

 

8.      Alterations: (a) Tenant
may, at Tenant’s sole cost and expense, make nonstructural alterations,
changes, additions and improvements (collectively, “alterations”) to the
building on the Premises provided that the same shall not affect utility
services, or plumbing and electrical lines and, in the aggregate, shall not
exceed the sum of $2,000 in any twelve (12) month period. In the event the estimated
cost for such alterations shall exceed such sum, Tenant shall obtain Landlord’s
written consent thereto which may be withheld by Landlord for any reason or no
reason.

 

(b)     Tenant
shall, at its expense, before making any alterations obtain all permits,
approvals and certificates required by any governmental or quasi-governmental
bodies and (upon completion) certificates of final approval thereof and shall
promptly deliver duplicates of the same to Landlord.

 

(c)     Tenant
shall carry, and will cause its contractors and sub-contractors to carry, such
workman’s compensation, general liability, personal and property damage
insurance as Landlord may require and landlord shall be an additional insured.

 

(d)     All
alterations, fixtures and all paneling, partitions, railings and like
installations, installed at the Premises at any time either by Tenant or by
Landlord on Tenant’s behalf, shall, upon installation, become the property of
Landlord and shall remain upon and be surrendered with the Premises unless
Landlord, by notice to Tenant no later than twenty (20) days prior to the date
fixed as the termination of this Lease, elects to relinquish Landlord’s right
thereto and to have them removed by Tenant, in which event the same shall be
removed from the Premises by Tenant prior to the expiration of the Lease at
Tenant’s expense. Nothing in this Article shall be

 

6

 

construed
to give Landlord title to or to prevent Tenant’s removal of trade fixtures,
moveable office furniture and equipment, but upon removal of any such from the
Premises or upon removal of other installations as may be required by Landlord,
Tenant shall immediately and at its expense, repair and restore the Premises to
the condition existing prior to installation and repair any damage to the
Premises or the building due to such removal. 
All property permitted or required to be removed by Tenant at the end of
the term remaining in the Premises after Tenant’s removal shall be deemed
abandoned and may, at the election of the Landlord, either be retained as
Landlord’s property or sold, stored, destroyed or removed from the Premises by
Landlord without any obligation on the part of Landlord to account for same.
Tenant shall pay to Landlord the cost incurred by Landlord in removing,
selling, storing, destroying or otherwise disposing of any such personal
property.

 

9.   Mechanic’s Liens: If
any mechanic’s lien is filed against the Premises or the building of which the
same forms a part, for work claimed to have been done for, or materials
furnished to, Tenant, whether or not done pursuant to Article 5, the same
shall be discharged by Tenant within thirty (30) days thereafter, at Tenant’s
expense, by filing the bond required by law or otherwise.

 

10.   Assignment, Sublease and
Mortgage: (a) Tenant, for itself, its heirs, distributees, executors,
administrators, legal representatives, successors and assigns, expressly
covenants that it shall not assign, mortgage or encumber this agreement, nor
permit the Premises or the building of which the Premises form a part to be
encumbered, nor underlet or suffer or permit the Premises or any part thereof
to be used by others, without the prior written consent of Landlord in each
instance; nor shall Tenant enter into or permit any transaction or series of
transactions which, directly or indirectly result in a change of control of
Tenant or any person or entity which, directly or indirectly controls Tenant
without the prior written consent of Landlord in each  instance. For the purposes of
this paragraph, the term “control” shall mean, with respect to: (i) a
corporation, ownership or voting control, directly or indirectly, of at least
fifty (50%) percent of all the voting stock, (ii) a partnership, limited
liability company or joint venture, ownership, directly or indirectly, of at
least fifty (50%) percent of all the general or other partnership or voting
membership interests; and (iii) any other entity, ownership, directly or
indirectly of at least fifty (50%) percent of all the equity or other
beneficial interests therein, or with respect to a corporation, partnership,
limited liability company, joint venture or other entity, the power to direct
the management and policies of such entities. If this Lease is assigned, or if
the Premises or any part thereof is underlet or occupied by any person or
entity other than Tenant, Landlord may, after default by Tenant, collect rent
from the assignee, under-tenant or occupant, and apply the net amount collected
to the rent herein reserved, but no such assignment, underletting, occupancy or
collection shall be deemed a waiver of this covenant, or the acceptance of the
assignee, under-tenant or occupant as tenant, or a release of Tenant from the
further performance by Tenant of covenants on the part of Tenant herein
contained. The consent by Landlord to an assignment or underletting shall not
in any way be construed to relieve Tenant from obtaining the express consent in
writing of Landlord to any further assignment or underletting.

 

(b)    During
the term of this Lease Tenant shall permit inspections of the Premises by or on
behalf of existing or prospective mortgagees or purchasers. During the one year
immediately preceding the expiration date of this Lease Tenant shall permit access
to the Premises by

 

7

 

prospective
tenants and shall permit Landlord to post “To Let” or “For Sale” signs. Such
inspections shall be at reasonable times during normal business hours and upon
reasonable prior notice to Tenant, which may be oral.

 

11.  Insurance: (a) Tenant, at its sole
cost, during the entire term of this Lease, shall keep in force comprehensive
general liability insurance, including contractual liability insurance, protecting
Landlord, its partners, members, officers, directors, stockholders and
employees and Tenant as insured in the minimum amount of FIVE MILLION ($5,000,000.00) Dollars  combined single limit for
personal injury, death and property damage occurring on, in or about the
Premises and any sidewalks, streets, alleyways, passageways and parking areas
adjoining or appurtenant to the Premises. A certificate evidencing workers compensation
coverage and proper endorsements shall be provided by Tenant in advance of any
construction or alteration.

 

(d)           All
insurance policies shall include a full coverage for plate glass, with a total
replacement cost including parts and labor.

 

(e)           All
insurance policies shall include Loss of Rent for Landlord.

 

(f)            All
insurance policies mentioned in this Article shall be written by good and
solvent insurance companies authorized to do business in New York State. Tenant
shall provide Landlord with a certificate of said general liability insurance
duly executed by an authorized agent of the insurance company upon the
execution and delivery of this Lease to Landlord and a copy of said insurance
policy within sixty (60) days after the execution and delivery of this Lease.
Said policy shall provide that such insurance shall not be cancelable unless at
least thirty (30) days’ notice of cancellation in writing is given to Landlord.
The certificate and policy shall contain no language exculpating the carrier
from giving the required notice to Landlord.

 

(g)           If
Tenant fails to comply with the provisions of this Article. Landlord may, at its
option, and in addition to all other remedies it may have, procure such
insurance for its own benefit, in which event the premiums for such insurance
shall be chargeable to Tenant as additional rent, payable when Landlord submits
a bill therefor

 

(h)           Tenant
shall furnish the Certificate of insurance, with Landlord as an  Additional insured, at the
execution of this Agreement.

 

12.    Occupancy: Tenant will not at any time use
or occupy the Premises in violation of the certificate of occupancy issued for
the building of which the Premises are a part. Tenant has inspected the
Premises and accepts them as is, subject to any work required to be done by Landlord.
In any event, Landlord makes no representation as to the condition of the
Premises or the building and Tenant agrees to accept the Premises subject to
violations whether or not of record. If any governmental license or permit
shall be required for the proper and lawful conduct of Tenant’s business,
Tenant shall be responsible for and shall procure and maintain such license or
permit.

 

13.    Joint & Several Liability:  Intentionally omitted.

 

8

 

14.   Landlord’s
Consent: (a) Notwithstanding Article 12, Tenant, in
connection with a bona fide sale of majority control of Tenant’s issued and
outstanding voting stock, or if Tenant is not then a corporation, in connection
with the bona fide sale of majority control of Tenant’s entity, or a bona fide
sale of the bulk of Tenant’s assets, may assign this Lease to the purchaser of
such stock, control or assets, as the case may be, provided that written
consent to such assignment is obtained from Landlord, which consent shall not be unreasonably
withheld or delayed. Request for such consent shall be in writing,
made at least thirty (30) days before the commencement of the proposed
assignment and shall be accompanied by a duplicate original of the proposed
assignment and an assumption by the proposed assignee of all of the terms and
provisions of this Lease.

 

(b)   The
Landlord’s consent shall be conditioned on the following:

 

(i)                                     In addition to
the security then being held by Landlord, two month’s Fixed Rent shall be
deposited with Landlord, at the prevailing rental rate at the time request for
consent to the assignment is submitted to Landlord. (The security shall be held
under the provisions of paragraph 29(a) hereof or if consent to the assignment
is refused by Landlord, such sum shall be returned to the assignee.)

 

(ii)                                  Tenant shall
furnish such documents, including financial statements of the proposed
assignee, and such information pertaining to the assignee as Landlord shall
reasonably require.

 

(iii)                               The Landlord’s
consent to the assignment shall not be deemed consent to any further or other
assignment or subletting and each assignment shall so provide.

 

(iv)                              The Tenant
shall not be in default under the Lease at the time of requesting consent or at
the time of the commencement of the assignment. In the event Landlord shall
refuse consent because of Tenant’s default, Landlord shall notify Tenant of the
nature of the default.

 

(v)                                 The reasonable
cost of Landlord’s attorney’s fees and any other costs incurred by Landlord in
connection with such assignment shall be paid to Landlord or its attorney, on
demand.

 

(vi)                              The Assignee
shall make an additional two (2) month security deposit with Landlord.

 

(vii)                           If Landlord
shall decline to give’ its consent to any proposed assignment, Tenant shall
indemnify, defend and hold harmless the Landlord against and from any and all
loss, liability, damages, costs and expenses (including reasonable legal fees)
resulting from any claims that may be made against Landlord by the proposed
assignee, brokers or other persons claiming a commission or similar
compensation in connection with the proposed assignment.

 

9

 

15.  Signage: Tenant
shall not, without Landlord’s prior written consent, place or erect any signs
of any nature on the exterior part of the Premises or the building of which it
is a part, or the sidewalk adjoining said building or upon the roof except that
Tenant’s name may appear on the door of the Premises. Tenant shall install no
more than THREE (3) signs on the exterior part of the building and ONE (1) sign infront of the
demised Premises within the building. No property of the Tenant shall be placed
on the roof of the building which is reserved exclusively for the use of
Landlord or Landlord’s designees, anything to the contrary set forth in this
Lease notwithstanding. Landlord shall have the right to erect, or cause to be
erected, signs on the roof of the building. Access to the roof by Landlord, its
agents and contractors shall be permitted by Tenant. All exterior signage shall
be in accordance and congruence to the Landlord’s approved design and
specification, including color, size and placement. Tenant is solely
responsible to obtain permits and licenses prior to installing signs from any
and all local government authorities and upon Landlord’s demand such permits
and licenses must be provided to Landlord. Any violations or summons issued in
connection with the signs are strictly Tenant’s responsibility and if Landlord
incurs any costs and expenses including, without limitation, reasonable
attorney fees to resolve such matters, then such costs and expenses shall
become an Additional Rent and it becomes due and payable upon Landlord’s
presentment to Tenant.  In addition, all
building directory, window (plate glass signage), and exterior building signage
shall be made by the Landlord’s preapproved vendor and shall be bill directly
to Tenant, including the parts and labor. Tenant is responsible to remove all
signs upon expiration of the lease or renewal of lease.

 

16.  Heating, Ventilation and Air Conditioning: Tenant
shall furnish or cause to be furnished to the Premises the equipment only for
heating, ventilation and air-conditioning (“HVAC”). Tenant at tenant’s sole
expense, shall be responsible for the installation of the HVAC System. Landlord
shall have access to all air-conditioning, fan, ventilating and machine rooms
and electrical closets and all other mechanical installations (collectively,
“Mechanical Installation”), and Tenant shall not construct partitions or other
obstructions which may interfere with Landlord’s access thereto or the moving
of Landlord’s equipment to and from the Mechanical Installations. Tenant shall
not at any time enter the Mechanical Installations or tamper with, adjust, or
otherwise affect such Mechanical Installations. Landlord shall not be
responsible if the HVAC System fails to provide cooled or heated air, as the
case may be, to the Premises. Tenant shall install, if missing, blinds or
shades on all windows, which blinds and shades shall be subject to Landlord’s
approval, and shall keep all of the operable windows in the Premises closed,
and lower the blinds when necessary because of the sun’s position, whenever the
HVAC System is in operation or as and when required by any Requirement. Tenant
shall cooperate with Landlord and shall abide by the rules and regulations
which Landlord may reasonably prescribe for the proper functioning and
protection of the HVAC System. Finally, the HVAC System shall be periodically
maintained and serviced by the Landlord’s preapproved vendor at the Tenant’s
own cost. Landlord, at its election, may bill directly to Tenant for its
proportionate share of the maintenance and operating cost of the HVAC System.

 

17.  End of Term: Upon the expiration or other termination of the
term of this Lease, Tenant shall quit and surrender to Landlord the Premises,
vacant, broom clean, in good order and condition, reasonable wear and tear and
damage by fire or other casualty excepted and, subject to the provisions of Article 5,
Tenant shall remove all its property from the Premises.  Tenant’s

 

10

 

obligation
to observe and perform this covenant shall survive the expiration or other
termination of this Lease.

 

18.  Bills and Notices: Except as otherwise in this Lease provided,
a bill, statement, notice or communication which Landlord may desire or be
required to give to Tenant, shall be deemed sufficiently given or rendered if,
in writing, delivered to Tenant personally or sent by certified or registered
mail addressed to Tenant at the building of which the Premises form a part or
at the last known residence address or business address of Tenant or left at
any of the aforesaid premises addressed to Tenant, and the time of rendition of
such bill or statement and of the giving of such notice or communication shall be
deemed to be the time when the same is delivered to Tenant, mailed or left at
the Premises as herein provided. Any notice by Tenant to Landlord must be
served by certified or registered mail addressed to Landlord at the address
first hereinabove given or at such other address as Landlord shall designate by
written notice.

 

19.  Late Payment: If Tenant fails to make payment of Fixed Rent by
the tenth (10th) day of the month in which such rent is due or fails to pay any
item of Additional Rent within ten (10) days of the due date, Tenant shall
pay, as additional rent, a service charge to defray the cost incidental to
handling such delinquent payment equal to $250.00
for an administrative fee plus five
(5%) percent of the amount of the delinquent payment. Said charge
shall be paid when the next succeeding monthly rent shall fall due. The
imposition of such charge shall be in addition to all of Landlord’s rights and
remedies hereunder in the event of Tenant’s default.

 

20.  Inability to Perform: This Lease and the obligation of Tenant
to pay rent hereunder and perform all of the other covenants and agreements
hereunder on the part of Tenant to be performed shall not be affected, impaired
or excused because Landlord is unable to fulfill any of its obligations under
this Lease or to supply or is delayed in supplying any service expressly or
impliedly to be supplied or is delayed in making any repair, additions,
alterations or decorations or is unable to supply or is delayed in
supplying any equipment or fixtures if Landlord is prevented or delayed from so
doing by reason of strike or labor troubles or any cause whatsoever beyond
Landlord’s sole control including, but not limited to, government preemption in
connection with a national emergency or by reason of any rule, order or
regulation of any department or subdivision thereof of any government agency or
by reason of the condition of supply and demand which have been or are affected
by war or other emergency.

 

21.  No Waiver: The failure of Landlord to seek redress for
violation of, or to insist upon the strict performance of any covenant or
condition of this Lease, shall not prevent a subsequent act which would have
originally constituted a violation from having all the force and effect of an
original violation. The receipt by Landlord of rent with knowledge of the
breach of any covenant of this Lease shall not be deemed a waiver of such
breach and no provision of this Lease shall be deemed to have been waived by
Landlord unless such waiver is in writing signed by Landlord. No payment by
Tenant or receipt by Landlord of a lesser amount than the monthly rent herein
stipulated shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement of any check or any
letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or

 

11

 

payment
without prejudice to Landlord’s right to recover the balance of such rent or
pursue any other remedy in this Lease provided. All checks tendered to Landlord
as and for the rent of the Premises shall be deemed payments for the account of
Tenant. Acceptance by Landlord of rent from anyone other than Tenant shall not
be deemed to operate as an attornment to Landlord by the payor of such rent or
as consent by Landlord to an assignment or subletting by Tenant of the Premises
to such payor, or as a modification of the provisions of this Lease. No act or
thing done by Landlord or Landlord’s agents during the term hereby demised
shall be deemed an acceptance of a surrender of said Premises and no agreement
to accept such surrender shall be valid unless in writing signed by Landlord.
No employer of Landlord or Landlord’s agent shall have any power to accept the
keys of said Premises prior to the termination of the Lease and the delivery of
keys to any such agent or employee shall not operate as a termination of the
Lease or a surrender of the Premises.

 

22.  Remedies of Landlord
and Waiver of Redemption: In case of any such default, re-entry, expiration
and/or dispossess by summary proceedings or otherwise, (a) the rent, and
additional rent, shall become due thereupon and be paid up to the time of such
re-entry, dispossess and/or expiration, (b) Landlord may re-let the
Premises or any part or parts thereof, either in the name of Landlord or
otherwise, for a term or terms, which may at Landlord’s option be less than or
exceed the period which would otherwise have constituted the balance of the
term of this Lease and may grant concessions or free rent or charge a higher
rental than that in this Lease, (c) Tenant or the legal representatives of
Tenant shall also pay Landlord as liquidated damages for the failure of Tenant
to observe and perform said Tenant’s covenants herein contained, any deficiency
between the rent hereby reserved and or covenanted to be paid and the net
amount, if any, of the rents collected on account of the subsequent Lease or
Leases of the Premises for each month of the period which would otherwise have
constituted the balance of the term of this Lease. The failure of Landlord to
re-let the Premises or any part thereof shall not release or affect Tenant’s
liability for damages. In computing such liquidated damages there shall be
added to the said deficiency such expenses as Landlord may incur in connection
with re-letting, such as legal expenses, attorneys’ fees, brokerage,
advertising and for keeping the Premises in good order or for preparing the
same for re-letting. Any such liquidated damages shall be paid in monthly
installments by Tenant on the rent day specified in this Lease and any suit
brought to collect the amount of the deficiency for any month shall not
prejudice in any way the rights of Landlord to collect the deficiency for any
subsequent month by a similar proceeding. Landlord, in putting the Premises in
good order or preparing the same for re-rental may, at Landlord’s option, make
such alterations, repairs, replacements, and/or decorations in the Premises as
Landlord, in Landlord’s sole judgment considers advisable and necessary for the
purpose of re-letting the Premises, and the making of such alterations, repairs
replacements, and/or decorations shall not operate or be construed to release
Tenant from liability hereunder as aforesaid. Landlord shall in no event be liable
in any way whatsoever for failure to re-let the Premises, or in the event that
the Premises are re-let, for failure to collect the rent thereof under such
re-letting, and in no event shall Tenant be entitled to receive any excess, if
any, of such net rents collected over the sums payable by Tenant to Landlord
hereunder. In the event of a breach or threatened breach by Tenant of any of
the covenants or provisions hereof, Landlord shall have the right of injunction
and the right to invoke any remedy allowed at law or in equity as if re-entry,
summary proceedings and other remedies were not herein provided for. Mention in
this Lease of any particular remedy shall not preclude Landlord from any other
remedy, in law or in

 

12

 

equity. Tenant hereby expressly waives any and all rights of redemption
granted by or under any present or future laws.

 

23.  Fees and Expenses: If Tenant shall default in the observance
or performance of any term or covenant on Tenant’s part to be observed or
performed under or by virtue of any of the terms or provisions in any Article of
this Lease, then, unless otherwise provided elsewhere in this Lease, Landlord
may immediately or at any time thereafter and without notice perform the obligation
of Tenant thereunder. If Landlord, in connection with the foregoing or in
connection with any default by Tenant in the covenant to pay rent hereunder,
makes any expenditures or incurs any obligations for the payment of money,
including but not limited to attorney’s fees, in instituting, prosecuting or
defending any action or proceedings, then Tenant will reimburse Landlord for
such sums so paid or obligations incurred with interest and costs. The
foregoing expenses incurred by reason of Tenant’s default shall be deemed to be
additional rent and shall be paid by Tenant to Landlord within five (5) days
of rendition of any bill or statement to Tenant therefor. If Tenant’s Lease
term shall have expired at the time of the making of such expenditures or
incurring such obligations, such sums shall be recoverable by Landlord as
damages.

 

24.  Default: (1) If Tenant defaults in fulfilling any of the
covenants of this Lease other than the covenants for the payment of rent or
additional rent; or if the Premises become vacant or deserted or if this Lease
is rejected under the Bankruptcy Code or if any execution or attachment shall
be issued against Tenant or against Tenant’s property whereupon the Premises
shall be taken or occupied by someone other than Tenant; or if Tenant shall
have failed, after five (5) days’ written notice, to redeposit with
Landlord any portion of the security deposited hereunder which Landlord has
applied to the payment of any rent or additional rent due and payable
hereunder; then in any one or more of such events, upon Landlord’s serving a
written five (5) days’ notice upon Tenant specifying the nature of such
default and upon the expiration of such five (5) days if Tenant shall have
failed to comply with or remedy such default, or if the said default or
omission complained of shall be of such a nature that the same cannot be
completely cured or remedied within said five (5) day period, and if
Tenant shall not have diligently commenced curing such default within such five
(5) day period, and shall not thereafter with reasonable diligence and in
good faith, proceed to remedy or cure such default, then Landlord may serve a
written three (3) days’ notice of cancellation of this Lease upon Tenant,
and upon the expiration of said three (3) days, this Lease and the term
thereunder shall end and expire as fully and completely as if the expiration of
such three (3) day period were the day herein definitely fixed for the end
and expiration of this Lease and the term thereof and Tenant shall then quit
and surrender the Premises to Landlord but Tenant shall remain liable as
hereafter provided.

 

(2)  If the notice
provided for in Section (1) hereof shall have been given, and the
term shall expire as aforesaid; or if Tenant shall default in the payment of
the rent reserved herein or in any item of additional rent herein mentioned or
any part of either or in making any other payment herein required; then and in
any of such events, Landlord may, without notice, re-enter the Premises either
by force or otherwise, and dispossess Tenant by summary proceedings otherwise,
and the legal representative of Tenant or other occupant of the Premises and
remove their effects and hold the Premises as if this Lease had not been made,
and Tenant hereby waives the service of notice of intention to re-enter or to
institute legal proceedings to that end. 
If

 

13

 

Tenant
shall make default hereunder prior to the date fixed as the commencement of any
renewal or extension of this Lease, Landlord may cancel and terminate such
renewal or extension agreement by written notice.

 

25.  Transfer After Bankruptcy: (a) If this Lease is assigned
to any person or entity pursuant to Title 11 of the U.S. Code (the “Bankruptcy
Code”), all consideration payable in connection with such assignment shall
belong to Landlord.

 

(b)  If Tenant assumes this Lease and
proposes to assign the same under the provisions of the Bankruptcy Code to a
person or: legal entity making a bona fide offer to
accept an assignment, Tenant shall give notice to Landlord stating (i) the
name and address of the proposed assignee, (ii) the terms and conditions
of the offer, (iii) the assurance of future performance of the proposed
assignee under this Lease, including the assurance to be provided under §365(b)(3) of
the Bankruptcy Code as the same may be amended. Such notice shall be given not
earlier than twenty (20) days before Tenant makes application to the court for
approval or authority for the making of such assignment and Landlord shall have
the right within ten (10) days after receipt of such notice to accept the
assignment upon the same terms and conditions but less any brokerage commission
payable out of the consideration for the assignment.

 

26.  Access to Premises: (a) Landlord or Landlord’s agents
shall have the right (but shall not be obligated) to enter the Premises in any
emergency at any time and at other reasonable times to examine same and to make
such repairs, replacements and improvements as Landlord may deem necessary or
desirable to any portion of the building or which Landlord may elect to perform
in the Premises after Tenant’s failure to make repairs or perform any work
which Tenant is obligated to perform under this Lease, or for the purpose of
complying with laws, regulations and other directions of governmental
authorities. Tenant shall not be entitled to any abatement of rent while such
work is in progress nor to any damage by reason of loss or interruption of
business or otherwise.

 

(b)    If
at any time entry to the Premises shall be necessary for the inspection or
protection of the property or in the event of an apparent abandonment of the
property by Tenant, and entry cannot be obtained by Landlord or its agents
during reasonable hours, Landlord or its agents shall have the right to enter
same by force or otherwise without rendering Landlord liable for damages and
without such entry constituting a trespass.

 

(c)    The
provisions of this Article are not to be construed as an increase of
Landlord’s obligations under this Lease or to impose any obligation upon the
Landlord, nor shall the making of any repairs by Landlord be deemed a waiver of
Landlord’s rights arising out of Tenant’s defaults; in the event of such
default repairs shall be made for the account and at the expense of Tenant and
shall be billed as additional rent to the Tenant.

 

27.     No Representations by Landlord: Neither
Landlord nor Landlord’s agents have made any representation or promises with
respect to the physical condition of the building, the land upon which it is
erected or the Premises, the rents, Leases, expenses of operation or any other
matter or thing affecting or related to the Premises or the building except as
herein expressly set forth and no rights, easements or licenses are acquired by
Tenant by implication or

 

14

 

otherwise
except as expressly set forth in the provisions of this Lease. Tenant has
inspected the building and the Premises and is thoroughly acquainted with their
condition and agrees to take same “as is” on the date possession is tendered
and acknowledges that the taking of possession of the Premises by Tenant shall
be conclusive evidence that the said Premises and the building of which the
Premises form a part were in good and satisfactory condition at the time such
possession was so taken. All understandings and agreements heretofore made
between the parties hereto are merged in this contract, which alone fully and
completely expresses the agreement between Landlord and Tenant and any
executory agreement hereafter made shall be ineffective to change, modify,
discharge or effect an abandonment of it in whole or in part, unless such
executory agreement is in writing and signed by the party against whom
enforcement of the change, modification, discharge or abandonment is sought.

 

28.  Building Alterations and Management: Landlord shall have the
right at any time without the same constituting an eviction and without
incurring liability to Tenant therefor, to change the arrangement and or
location of public entrances, passageways, doors, doorways, corridors,
elevators, stairs, toilets or other public parts of the building and to change
the name, number or designation by which the building may be known. There shall
be no allowance to Tenant for diminution of rental value and no liability on
the part of Landlord by reason of inconvenience, annoyance or injury to
business arising from Landlord’s or other Tenant’s making any repairs in the
building or any such alterations, additions or improvements. Further-more,
Tenant shall not have any claim against Landlord by reason of Landlord’s
imposition of any controls of the manner of access to the building by Tenant’s
social or business visitors as the Landlord may deem necessary for the security
of the building or its occupants.

 

29.  Quiet Enjoyment: Landlord covenants and agrees with Tenant
that upon Tenant’s paying the rent and additional rent and observing and
performing all the terms, covenants and conditions on Tenant’s part to be observed
and performed Tenant may peaceably and quietly enjoy the Premises hereby
demised, subject nevertheless to the terms and conditions of this Lease
including but not limited to, Article 39 hereof and to the ground Leases,
if any, underlying Leases, if any, and mortgages, if any, hereinbefore
mentioned.

 

30.  Failure to Give Possession: If Landlord is unable to give
possession of the Premises on the date of the commencement of the term hereof
because of the holding over or retention of possession of any tenant,
undertenant or occupants or if the Premises are located in a building being
constructed, because such building has not been sufficiently completed to make
the Premises ready for occupancy or because of the fact that a certificate of
occupancy has not been procured or if Landlord has not completed any work
required to be performed by Landlord, or for any other reason. Landlord shall
not be subject to any liability for failure to give possession on said date and
the validity of the Lease shall not be impaired under such circumstances, nor
shall the same be construed in any wise to extend the term of this Lease, but
the rent payable hereunder shall be abated (provided Tenant is not responsible
for Landlord’s inability to obtain possession or complete any work required)
until after Landlord shall have given Tenant notice that the Premises are
substantially ready for Tenant’s occupancy. If permission is given to Tenant to
enter into the possession of the Premises or to occupy premises other than the
Premises prior to the date specified as the commencement of the term of this
Lease, Tenant covenants and

 

15

 

agrees
that such occupancy shall be deemed to be under all the terms, covenants,
conditions and provisions of this Lease, except as to the covenant to pay rent.
The provisions of this Article are intended to constitute “an express
provision to the contrary” within the meaning of Section 223-a of the New
York Real Property Law.

 

31.  Brokerage: Tenant represents and warrants that it dealt with
no broker, real estate salesperson, finder or the like (collectively, “broker”)
in connection with this leasing. Tenant hereby indemnifies and saves harmless
the Landlord against any loss from claims for brokerage commissions and
expenses arising out of Tenant’s acts involving any other broker. Such expenses
shall include, but not be limited to, legal fees incurred by Landlord in
defending any such claim. Landlord has dealt only with Vernon Property Inc. in
connection with this lease or the negotiation or execution thereof and Landlord
is solely responsible for the broker’s commissions and fees according to the
separate commission agreement.

 

32.  Prior Improvements: Tenant acknowledges that the installations
and improvements installed by Tenant are the property of the Landlord and shall
be maintained by Tenant as provided in Article 7 of this Lease. Tenant
shall obtain and keep in force throughout the term of this Lease a contract for
the servicing of the HVAC unit installed by Tenant. A copy of the contract
shall be furnished to Landlord and, upon Landlord’s request, evidence of
payment of the price for the contract.

 

33.  Excavation and Shoring: If an excavation shall be made upon
land adjacent to the Premises, or shall be authorized to be made, Tenant shall
afford to the person causing or authorized to cause such excavation, license to
enter upon the Premises for the purpose of doing such work as said person shall
deem necessary to preserve the wall or the building of which the Premises form
a part from injury or damage and to support the same by proper foundations
without any claim for damages or indemnity against Landlord, or diminution or
abatement of rent.

 

34.  Property Loss and Damage: Landlord or its agents shall not be
liable for any damage to property of Tenant or of others, nor for loss of or
damage to any property of Tenant by theft or otherwise, nor for any injury or
damage to persons or property resulting from any cause of whatsoever nature
happening on, in or about the Premises. Landlord or its employees will not be
liable for any such damage caused by other tenants or persons in, upon or about
said building or caused by operations in construction of any private, public or
quasi public work. If at any time any windows of the Premises are temporarily
or permanently closed, darkened or bricked up for any reason whatsoever,
including but not limited to Landlord’s own acts. Landlord shall not be liable
for any damage Tenant may sustain thereby and Tenant shall not be entitled to
any compensation therefore nor abatement or diminution of rent nor shall the
same release Tenant from its obligations hereunder nor constitute an eviction.

 

35.  Estoppel Certificate: Tenant, at any time, and from time to
time, upon at least ten (10) days’ prior notice by Landlord, shall
execute, acknowledge and deliver to Landlord, and/or to any other person, firm,
corporation or other legal entity specified by Landlord, a statement

 

16

 

certifying
that this Lease is unmodified, in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and
stating the modifications), stating the dates to which the rent and additional
rent have been paid, and stating whether or not there exists any default by
Landlord under this Lease, and if so, specifying each such default.

 

36.  No Personal Liability: Tenant shall look solely to the estate
and property of Landlord in the Premises or to the land and building of which
the Premises form a part, as the case may be, for the enforcement and
satisfaction of any and all rights and remedies of Tenant in the event of any
default or breach by Landlord of any of its obligations, covenants,
representations or warranties in this Lease or of any other liability of
Landlord to Tenant. Tenant waives the right to seek any monetary damages or
other relief against the Landlord personally, or against any partner, member,
principal, shareholder, officer or director of Landlord, or against any assets
of Landlord or such persons other than the interest of the Landlord in the
Premises or the land and building of which the Premises form a part, such
exculpation of personal liability to be absolute and without any exception
whatever.

 

37.   Indemnity: Tenant shall indemnify and save
harmless the Landlord and its agents against and from all liabilities,
obligations, losses, personal injuries, damages, penalties, judgments, claims
(even if such claims be groundless or fraudulent), costs, charges and expenses,
including reasonable attorneys’ fees arising from a law suit between Landlord
and Tenant or between Landlord and a third party, which may be imposed upon or
incurred by or asserted against Landlord by reason of any of the following during
the term of this Lease, or during the period of time prior to the term that
Tenant may have been given access to the Premises:

 

(a)   any
work or thing done by Tenant or done at Tenant’s instance or any condition
created by Tenant in, on or about the Premises or any part thereof;

 

(b)   any
use, non-use, possession, occupation, operation, maintenance or management of
the Premises or any street or space adjacent thereto;

 

(c)   any
negligence on the part of Tenant or other wrongful act or omission of Tenant or
any of its subtenants, agents, contractors, employees, licensees or invitees;

 

(d)   any
accident, injury or damage to any person or property occurring in, on or about
the Premises or any street or space adjacent thereto;

 

(e)   any
failure on the part of Tenant to perform or comply with any of the covenants,
agreements, terms or conditions contained in this Lease on its part to be
performed or complied with; and

 

(f)    any
condition arising from any hazardous materials, defined as any petroleum or
petroleum products, lead, asbestos, toxic substance, hazardous waste, substance
or related material or any pollutant or contaminant in, on, above, under, about
or migrating to or from the Premises, or a violation of environmental law,
order or regulation, federal, state or local, which

 

17

 

condition
or violation arises from the act or omission of Tenant, its subtenants, agents,
contractors, employees, licensees or invitees.

 

The provisions of this Article shall survive the
termination of the Lease.

 

38.  Waiver of Trial By Jury: Landlord and
Tenant hereby waive trial by jury in any action, proceeding or counterclaim
brought by either of the parties hereto against the other (except for personal
injury or property damage) on any matters whatsoever arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant,
Tenant’s use or occupancy of said Premises, and any emergency statutory or any
other statutory remedy. It is further mutually agreed that in the event
Landlord commences a summary proceeding for possession of the Premises, Tenant
will not interpose any counterclaim of whatever nature or description in any
such proceeding nor attempt to consolidate any other proceeding with the
summary proceeding.

 

39.  Destruction, Fire and Other Casualty: (a) If the Premises
or any part thereof shall be damaged by fire or other casualty, Tenant shall
give immediate notice thereof to Landlord and this Lease shall continue in full
force and effect except as hereinafter set forth.

 

(b)    If
the Premises are partially damaged or rendered partially unusable by fire or
other casualty, the damages thereto shall be repaired by and at the expense of
Landlord and the rent, until such repair shall be substantially completed,
shall be apportioned from the day following the casualty according to the part
of the Premises which is usable.

 

(c)    If
the Premises are totally damaged or rendered wholly unusable by fire or other
casualty, then the rent shall be proportionately paid up to the time of the
casualty and thenceforth shall cease until the date when the Premises shall
have been repaired and restored by Landlord, subject to Landlord’s right to
elect not to restore the same as hereinafter provided.

 

(d)    If
the Premises are rendered wholly unusable or (whether or not the Premises are
damaged in whole or in part) if the building shall be so damaged that Landlord
shall decide to demolish it or to rebuild it, then, in any of such events,
Landlord may elect to terminate this Lease by written notice to Tenant, given
within ninety (90) days after Tenant has notified Landlord of such fire or
casualty, specifying a date for the expiration of the Lease, which date shall
not be more than sixty (60) days after Landlord has given such notice, and upon
the date specified in such notice the term of this Lease shall expire as fully
and completely as if such date were the date set forth above for the
termination of this Lease and Tenant shall forthwith quit, surrender and vacate
the Premises without prejudice however to Landlord’s rights and remedies
against Tenant under the Lease provisions in effect prior to such termination,
and any rent owing shall be paid up to such date and any payments of rent made
by Tenant which were on account of any period subsequent to such date shall be
returned to Tenant. Unless Landlord shall serve a termination notice as
provided for herein, Landlord shall make the repairs and restorations under the
conditions of “b” and “c” hereof, with all reasonable expedition, subject to
delays due to adjustment of insurance claims, labor troubles and causes beyond
Landlord’s control.

 

18

 

(e)      After
any such casualty, Tenant shall cooperate with Landlord’s restoration by promptly
removing from the Premises Tenant’s inventory, equipment, furniture and its
other property and debris and shall give Landlord access to the Premises in
default of which, Landlord may remove the same and in addition to all other
damages sustained by Landlord, the fixed and additional rent shall not be
abated. Subject to the provisions of this paragraph “e”, Tenant’s liability for
rent and additional rent shall resume five (5) days after Landlord has
given written notice to Tenant that the Premises are substantially ready for
Tenant’s occupancy.

 

(f)       Nothing
contained herein shall relieve Tenant from liability that may exist as a result
of damage from fire or other casualty. Notwithstanding the foregoing, each
party shall look first to any insurance in its favor before making any claim
against the other party for recovery for loss or damage resulting from fire or
other casualty and to the extent that such insurance is in force and
collectible and to the extent permitted by law, Landlord and Tenant each
releases and waives all right of recovery against the other or anyone claiming
through or under each of them by way of subrogation or otherwise. The foregoing
release and waiver shall be in force only if both releasors’ insurance policies
contain a clause providing that such a release or waiver shall not invalidate
the insurance. If, and to the extent, that such waiver can be obtained only by
the payment of additional premiums, then the party benefiting from the waiver
shall pay such premium within ten (10) days after written demand or shall
be deemed to have agreed that the party obtaining insurance coverage shall be
free of any further obligation under the provisions hereof with respect to
waiver of subrogation. Tenant acknowledges that Landlord will not carry insurance
on Tenant’s furniture and or furnishings or any fixtures or equipment,
improvements, or appurtenances removable by Tenant and agrees that Landlord
will not be obligated to repair any damage thereto or replace the same.

 

(g)     Tenant
hereby waives the provisions of Section 227 of the New York State Real Property
Law and agrees that the provisions of this Article shall govern and
control in lieu thereof.

 

40.  Eminent Domain: If the whole or any part of the Premises shall
be acquired or condemned by Eminent Domain for any public or quasi public use
or purpose, then and in that event, the term of this Lease shall cease and
terminate from the date of title vesting in such proceeding and Tenant shall
neither have claim for the value of any unexpired term of this Lease nor the
reimbursements of any form paid in return of eminent domain.

 

41.  Subordination: This Lease is subject and subordinate to all
ground or underlying Leases, if any, and to all mortgages, if any, which may
now or hereafter affect such Leases or the real property of which the Premises
are a part and to all renewals, modifications, consolidations, replacements and
extensions of such underlying Leases and mortgages. This clause shall be
self-operative and no further instrument of subordination shall be required by
any ground or underlying lessor or by any mortgagee. In confirmation of such
subordination, Tenant shall execute promptly any certificate that Landlord may
request.

 

42.  Requirements of Law: Prior to the commencement of the Lease term,
if Tenant is then in possession, and at all times thereafter, Tenant shall, at
Tenant’s sole cost and expense, promptly comply with all present and future
laws, orders and regulations, foreseen or unforeseen,

 

19

 

ordinary
or extraordinary, of all state, federal municipal and local governments,
departments, bureaus and agencies or offices thereof and of all public and
quasi-public authorities and any direction of any public officer pursuant to
law, and all orders, rules and regulations of the New York Board of Fire
Underwriters, or the Insurance Services Office, or any similar body which shall
impose any violation, order or duty upon Landlord or Tenant with respect to the
Premises, whether or not arising out of Tenant’s use or manner of use thereof,
or, with respect to the building, if arising out of Tenant’s use or manner of
use of the Premises or the building (including the use permitted under the
Lease). Tenant shall not do or permit any act or thing to be done in or to the
Premises which is contrary to law, or which will invalidate or be in conflict
with public liability, fire or other policies of insurance at any time carried
by or for the benefit of Landlord. Tenant shall not keep anything in the
Premises except as now or hereafter permitted by the Fire Department, Board of
Fire Underwriters, Fire Insurance Rating Organization and other authority
having jurisdiction, and then only in such manner and in such quantity so as
not to increase the rate for fire insurance applicable to the building, nor use
the Premises in a manner which will increase the insurance rate for the
building or any property located therein over that in effect prior to the
commencement of Tenant’s occupancy. In the event Landlord’s fire insurance
premiums are increased due to Tenant’s use or occupancy, including the use
mentioned in Article 12, Tenant shall pay such increases to Landlord as
additional rent within ten (10) days after Tenant receives a bill
therefor. If the Premises are on the ground floor, Tenant shall make all
repairs required by law to the sidewalks and curbs adjacent to the Premises. If
Tenant shall receive a notice of violation, a copy of same shall be immediately
provided to the Landlord.

 

43.  Definitions: The term “Landlord”
as used in this Lease means only the owner for the time being of the
Premises or of the fee of the land and building of which the Premises form a
part. In the event of any transfer of the ownership interest in the Premises or
such fee, the transferor shall be entirely relieved of all covenants and
obligations of Landlord under this Lease and it shall be deemed and construed,
without further agreement between the parties or between the parties and the
transferee of the Premises or such fee, that such transferee has assumed and agreed
to carry out any and all covenants and obligations of Landlord under this Lease
subject to the provisions of Article 36 hereof (“No Personal Liability”).

 

The term “rent” includes
the annual rental rate whether so expressed or expressed in monthly
installments as described in Article 4 as “Fixed Rent”, and additional
rent. “Additional Rent” means all
sums which shall be due to Landlord or new owner from Tenant under this Lease,
in addition to the annual rental rate.

 

44.  Construction of Terms: In
any construction of the terms of this Lease, none of its terms shall be
construed against the Landlord by reason of the fact that the Landlord or its
attorney drew the Lease, nor shall any of its terms be construed against the
Tenant by reason of the fact that Tenant or its attorney modified or drew
provisions of this Lease since the final terms of this Lease are the result of
the joint efforts of the attorneys for the Landlord and Tenant.

 

45.  Invalid Terms: If any term or provision of this Lease or the
application thereof to any person or circumstances shall, to any extent be
invalid or unenforceable, the remainder of

 

20

 

this
Lease or the application of such term or provision to persons or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term and provision of this Lease shall be valid and
enforced to the fullest extent permitted by law.

 

46.  Captions: The captions are inserted only as a matter of
convenience and for reference and in no way define, limit or describe the scope
of this Lease or the intent of any provision thereof.

 

47.  Successors and Assigns: The covenants, conditions and
agreements contained in this Lease shall bind and inure to the benefit of
Landlord and Tenant and their respective heirs, distributees, executors,
administrators, trustees, successors, and except as otherwise provided in this
Lease, their assigns.

 

48.  Option Lease: Tenant
has two-time opportunity to exercise their Lease Option to extend their lease
for an additional five (5) year period at market rent and additional terms
to be negotiated at that time if Tenant has complied with the following
conditions:

 

(a)          Tenant has not been in
default in paying their Rent and Additional rent stated herein more than twice
during the Lease term;

 

(b)         Tenant must provide Landlord
with written notice of their intent to exercise their Lease Option at least ONE
(1) year prior to the Expiration Date of the Lease; and

 

(c)          Tenant shall be up-to-date
in payment of all rent and Additional rent prior to exercising their Lease
Option.

 

[Signatures to Follow]

 

21

 

In Witness Whereof, Landlord and Tenant have respectively
signed this Lease as of the day and year first above written.

 

 

	
   

  	
  ROOSEVELT
  AVENUE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Lee

  
	
   

  	
  DANIEL
  LEE, PRESIDENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILSHIRE
  STATE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joanne Kim

  
	
   

  	
  President
  & CEO

  
	
   

  	
  Name
  and Title

  

 

22

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