Document:

Addendum to Commercial Lease-Net

 Exhibit 10.4.1 
 

 
  
 ADDENDUM
TO 
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE-NET 

THIS ADDENDUM TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE-NET (“Addendum”) is made and entered into as
of the 1st day of March, 2005, by and between ATLANTIC AND SHEILA, L.P., a California limited partnership (“Lessor”), and UNIFIED WESTERN GROCERS, INC., a California corporation (“Lessee”), with reference to that certain Standard
Industrial/Commercial Single-Tenant Lease - Net dated of even date herewith, by and between Lessor and Lessee (“Lease”). The promises, covenants, agreements and declarations made and set forth herein are intended to and shall have the same
force and effect as if set forth at length in the body of the Lease. To the extent that the provisions of this Addendum are inconsistent with the terms and conditions of the Lease, the terms of this Addendum shall prevail and control for all
purposes. Unless otherwise defined herein, all terms used in this Addendum and defined in the Lease shall have the same meaning as is ascribed to such terms in the Lease. 
 51. Paragraph 1.3. Paragraph 1.3 is deleted in its entirety and is replaced with the following: 
 “1.3 Term. The period (“Original Term”) commencing on March 1, 2005 (the “Commencement Date”) and ending on December 31, 2019 (“Expiration Date”).”

 52. Paragraph 1.5. Paragraph 1.5 is deleted in its entirety and is replaced with the following: 

“(a) Calculation of Base Rent. When the Improvements to be constructed in Construction Phase 1 are Substantially
Complete, or as soon thereafter as reasonably practicable, Lessor shall provide Lessee with an estimate (“Project Cost Estimate”) of the total Project Costs (as defined in Exhibit “A”) and an estimate of the monthly Base Rent
payable for the first five (5) years of the Lease Term (the “Base Rent Estimate”). The initial monthly Base Rent shall equal the product obtained by multiplying ten percent (10%) by the total Project Costs (less any Direct Pay Amounts
paid by Lessee in accordance with Paragraph 8.2 of the Work Letter), and then dividing said product by twelve. Attached to this Lease as Exhibit “B” is an initial estimate (“Initial Budget”) of the total Project Costs as
contemplated as of the date of this Lease. Within thirty (30) days after final completion of the Improvements for all three Construction Phases (as defined in the Work Letter attached hereto), or as soon thereafter as is reasonably practicable,
Lessor shall provide Lessee with a final statement of the Project Costs and the monthly Base Rent payable for the first five (5) years of the Lease Term (the “Final Base Rent Statement”). If the monthly Base Rent shown on the Final Base
Rent Statement is more than the monthly Base Rent shown on the Base Rent Estimate, then, within ten (10) days following Lessor’s written demand, Lessee shall pay Lessor the difference between the Base Rent paid for the Construction Phases
referenced in subparagraph (b) below and the total Base Rent that should have been paid for such period as set forth in the Final Base Rent Statement. If the monthly Base Rent shown on the Final Base Rent Statement is less than the monthly Base Rent
shown on the Base Rent Estimate, then Lessee shall be entitled to credit against the monthly Base Rent payments next coming due the amount of the overpayment until the full overpayment has been credited against monthly Base Rent. Lessor and Lessee
agree that the preliminary estimate of the full monthly Base Rent to be paid by Lessee hereunder for the first five (5) years of the Lease Term is $81,669.00 per month (assuming that Lessee timely pays all Direct Pay Amounts [as defined in the Work
Letter] and that the Direct Pay Amounts include all Project Costs other than the Acquisition Costs [as defined in Exhibit A]). 
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 (b)
Phasing of Base Rent. Payment of monthly Base Rent and all other Rent payable under the Lease shall commence and be payable as follows: 
 (i) Construction Phase 1. Seventy-four percent (74%) of the total monthly Base Rent and other Rent shall be payable commencing upon the Commencement Date. 

(ii) Construction Phase 2. Ninety-five percent (95%) of the total monthly Base Rent and other Rent shall be payable
commencing upon the Substantial Completion of Construction Phase 2. 
 (iii) Construction Phase 3. One hundred
percent (100%) of the total monthly Base Rent and other Rent shall be payable commencing upon the Substantial Completion of Construction Phase 3. 
 (c) Increases in Monthly Base Rent. Monthly Base Rent shall be increased on the fifth (5th) and tenth (10th) anniversary dates of the Commencement Date of this Lease and at the
commencement of each Option Term (defined below), as applicable (each, an “Adjustment Date”). The adjusted monthly Base Rent as of each Adjustment Date shall be the monthly Base Rent effective on the day preceding that Adjustment Date,
multiplied by a fraction, the numerator of which is the CPI figure for the month occurring three (3) calendar months prior to the month in which the Adjustment Date occurs and the denominator of which is the CPI figure for the month occurring three
(3) calendar months prior to the month in which the previous Adjustment Date, or if none, the Commencement Date, occurred; provided, however, that the monthly Base Rent shall be increased on each Adjustment Date by at least fifteen percent (15%) of
the monthly Base Rent then in effect but not more than twenty percent (20%) of the monthly Base Rent then in effect, which increase shall be cumulative and compounded. As used in this paragraph, the “CPI” means the Consumer Price Index for
All Urban Consumers, Los Angeles - Riverside - Orange County Area, All Items (1982-1984 = 100) published by the U.S. Department of Labor, Bureau of Labor Statistics (“Bureau”), or if the CPI is no longer published, the Bureau’s most
comprehensive official index then in use that most nearly corresponds to the CPI. If such subsequent index is calculated from a base different from the base period (1982-1984 = 100), figures used for calculating the adjustment shall first be
converted to the base period used under a formula supplied by the Bureau. If the Bureau shall no longer publish such an index, another index generally recognized as authoritative shall be substituted by Lessor.” 

53. Paragraph 2.3. The following is added to the end of Paragraph 2.3: 

“However, within thirty (30) days following the expiration or sooner termination of this Lease, Lessor shall
reimburse Lessee for the unamortized portion of the actual cost of the Capital Expenditure required to be made by Lessee under this Lease, subject to the following conditions: (1) the required Capital Expenditure was not necessitated as a result of
any Alteration or Utility Installation, (2) the required Capital Expenditure was not necessitated as a result of Lessee’s use of all or any portion of the Office Building for any purpose other than general office use, (3) the required Capital
Expenditure was not the result of Lessee’s use of all or any portion of the Warehouse Building for any purpose other than general warehouse use, (4) the required Capital Expenditure was not voluntary or necessitated by Lessee’s misuse or
neglect or failure to comply with the terms of this Lease, (5) at the time of such reimbursement, Lessee is not in Default under any of its obligations under the Lease, (6) Lessee has delivered to Lessor, within thirty (30) days following the date
that Lessee originally incurred the required Capital Expenditure, written notice of the nature and cost of the required Capital Expenditure 
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and receipts showing payment thereof, and (7) the cost of the required Capital Expenditure (provided Tenant is entitled to reimbursement pursuant to the terms of this Paragraph 2.3) shall be
amortized on a straight line basis over a period equal to the useful life thereof for federal income tax purposes. For purposes of determining the unamortized portion of the actual cost of the required Capital Expenditure, only that portion of the
useful life of the Capital Expenditure that exceeds the remaining unexpired Term of the Lease (as the same may have been extended pursuant to Paragraph 66 below) shall be considered the unamortized portion.” 

54. Paragraph 5. The following is added to the end of Paragraph 5(a): 

“(b) Pursuant to Paragraph 1.6(b) of this Lease, Lessee is not required to deliver a Security Deposit in connection
with its execution of this Lease. However, if at any time during the Original Term or any Option Term of this Lease, as a result of an “assignment” (as such term is defined in the Paragraph 12 of the Lease), the “Net Worth of
Lessee” (as such term is defined in Paragraph 12.1(c) of this Lease) is reduced by an amount greater than twenty five percent (25%) of such Net Worth as it was represented at the time of Lessee’s execution of this Lease (provided that such
reduction in Net Worth is not merely the result of a change in the method of the calculation of Net Worth in accordance with a revision to applicable generally accepted accounting principals), then Lessee shall, upon five (5) business days’
written notice from Lessor, deliver to Lessor a Security Deposit in an amount equal to twelve (12) times the then current monthly Rent payable under this Lease; provided, however, at Tenant’s election, it may provide Landlord with an
irrevocable standby letter of credit, in lieu of a cash security deposit, provided that such letter of credit (i) is in an amount equal to twelve (12) times the then current monthly Rent payable under this Lease, (ii) is issued by a financial
institution with a Standard and Poor’s rating of “A-” or better and otherwise reasonably acceptable to Landlord, (iii) have an initial term of at least twelve (12) months, and (iv) be in form and content reasonably satisfactory to
Landlord; provided further, however, that if not later than thirty (30) days prior to the scheduled expiration date of any such letter of credit, Lessee fails to (x) renew the term of such letter of credit, (y) replace such letter of credit with a
new letter of credit meeting the requirements of this Paragraph 5(b), or (z) deliver to Lessor cash in the full amount of the Security Deposit required hereunder, then Lessor may immediately make a full draw on such letter of credit. If Lessee
renews the term of such letter of credit or replaces such letter of credit with a new letter of credit meeting the requirements of this Paragraph 5(b), then the foregoing proviso shall apply to that renewed letter of credit or replacement letter of
credit and to any subsequent renewals or replacements. 
 (c) Notwithstanding the foregoing, Lessor shall return
the Security Deposit (or letter of credit, as applicable) to Lessee (less any portion used or applied by Lessor pursuant to the terms of this Lease) in the event that, following Lessor’s receipt of such Security Deposit (or letter of credit),
Lessee reasonably demonstrates to Lessor that the Net Worth of Lessee has (for a period of at least four (4) consecutive quarters) returned to a level that exceeds seventy five percent (75%) of such Net Worth as it was represented at the time of
Lessee’s execution of this Lease (provided that such increase in Net Worth is not merely the result of a change in the method of the calculation of Net Worth in accordance with a revision to applicable generally accepted accounting principals).
Following any refund of Security Deposit pursuant to this Paragraph 5(c), the provisions of Paragraph 5(b) above shall continue in full force and effect and Lessee will be required to deliver a Security Deposit (or letter of credit) to Lessor if
required pursuant to Paragraph 5(b).” 
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 55.
Paragraph 6.2(c). The following is added to the end of Paragraph 6.2(c): 
 “Upon termination of this Lease,
Lessee shall cause any and all Hazardous Substance(s) (including any Permitted Substances) stored on or about the Premises by or with the permission of Lessee and any contamination arising out of the activities of Lessee or any of Lessee’s
Parties to be completely removed prior to Lessee’s vacating the Premises, at Lessee’s expense and in compliance with all Applicable Requirements. Lessee shall be liable for any and all costs, liabilities and expenses incurred by Lessor on
Lessee’s behalf should Lessee fail to fulfill its obligations described in this paragraph. Without limiting anything in the Lease, Lessor shall have the right to conduct periodic (but no more that twice per year) environmental inspections of
the Project; provided, however, that Lessor shall give Lessee not less than ten (10) days prior written notice of any such inspections and shall comply with Lessee’s reasonable requirements regarding scheduling and manner of conducting such
inspections so that the same will cause as little interference as reasonably practicable with the permitted conduct of Lessee’s business at the Premises. Lessee shall reimburse Lessor for all costs incurred in connection with such inspections
(not to exceed $3,000.00 per inspection within ten (10) days following Lessor’s presentation to Lessee of a written invoice therefor.” 
 56. Paragraph 6.3. The following is hereby inserted at the end of Paragraph 6.3: 
 “To the extent that Lessee’s compliance with Applicable Requirements requires Lessee to incur a Capital Expenditure, then Lessor shall reimburse Lessee for the unamortized cost
of such Capital Expenditure in accordance with the terms of Paragraph 2.3 hereof. Furthermore, Lessee shall be responsible for obtaining any permit, business license, or other permits or licenses required by any governmental agency permitting
Lessee’s use or occupancy of the Premises. In no event shall the Premises be used for any of the Prohibited Uses set forth on Exhibit “C” attached hereto.” 
 57. Paragraph 7.3(b). The second sentence of Paragraph 7.3(b) is hereby deleted in its entirety and replaced with the following: 

“Lessee may, however, make Alterations and Utility Installations to the Premises (excluding the roof) without such
consent, but upon ten (10) business days’ prior written notice to Lessor, provided that and only so long as they (i) do not affect structural or exterior aspects of the Buildings or the Project, (ii) do not involve puncturing, relocating or
removing the roof or any existing load-bearing walls or structures and (iii) will not adversely affect the electrical, plumbing, HVAC, life safety or other Building systems or the value of the Project.” 

58. Paragraph 7.4(c). The following is hereby added at the end of Paragraph 7.4(c). 

“Notwithstanding anything in this Paragraph 7.4 or the Lease to the contrary, Lessee shall have no obligation to
remove any Lessee Owned Alterations and/or Utility Installations made or installed with Lessor’s prior written consent and Lessee shall have no obligation to restore the Premises to their original conditions; provided that Lessee shall return
the Premises in good order, condition and repair, ordinary wear and tear excepted.” 
 59. Paragraph 8.2(a).
The following is hereby added at the end of Paragraph 8.2(a): 
 “Lessee shall also carry and maintain in
full force and effect, at its sole cost and expense (i) business automobile liability insurance having a combined single limit of not less than Three Million Dollars ($3,000,000) per occurrence and insuring Lessee against liability for claims
arising out of ownership, maintenance, or use of any owned, hired or non-owned automobiles and (ii) 
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workers’ compensation insurance having limits not less than those required by state statute and federal statute, if applicable, and covering all persons employed by Lessee in the conduct of
its operations on the Premises (including the all states endorsement and, if applicable, the volunteers endorsement), together with employer’s liability insurance coverage in the amount of at least One Million Dollars ($1,000,000).”

 Paragraph 8.5. The following language is added at the end of Paragraph 8.5 of the Lease: 

“Notwithstanding anything to the contrary set forth in this Lease, and without limiting Lessee’s obligations
under this Lease to maintain or reimburse Lessor for the types and amounts of insurance required herein, Lessee shall carry not less than the minimum amount and types of insurance required by a First Lien Lender based on its customary standards for
similar property, as such amounts and types of insurance may be adjusted from time to time by such First Lien Lender.” 
 60. Paragraph 9.3(b). The following language is added at the end of Paragraph 9.3(a) of the Lease as a new Paragraph 9.3(b): 

“(b) If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of
Lessee (in which event Lessee shall make the repairs at Lessee’s expense), and provided that Lessee has not received Lessor’s written notice to terminate this Lease as provided in Paragraph 9.3(a) above, Lessee may elect to terminate this
Lease by giving written notice to Lessor within thirty (30) days after receipt by Lessee of knowledge of the occurrence of such damage. Such termination shall be effective sixty (60) days following the date of such notice. In the event Lessee elects
to terminate this Lease under this paragraph, Lessor shall have the right within ten (10) days after receipt of the termination notice to give written notice to Lessee of Lessor’s commitment to pay for the repair of such damage without
reimbursement from Lessee. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonable possible.” 
 61. Paragraph 9.4(b). The following language is added at the end of Paragraph 9.4(a) of the Lease as a new Paragraph 9.4(b): 

“(b) If a Total Destruction that is not an Insured Loss occurs, unless caused by a grossly negligent or willful act
of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), and provided that Lessee has not received Lessor’s written notice to terminate this Lease, Lessee may elect to terminate this Lease by giving written notice to
Lessor within thirty (30) days after receipt by Lessee of knowledge of the occurrence of such Total Destruction. Such termination shall be effective sixty (60) days following the date of such notice. In the event Lessee elects to terminate this
Lease under this paragraph, Lessor shall have the right within ten (10) days after receipt of the termination notice to give written notice to Lessee of Lessor’s commitment to pay for the repair of such damage without reimbursement from Lessee.
In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonable possible.” 
 62. Paragraph 12.1(c). The following language is added at the end of Paragraph 12.1(c) of the Lease: 
 “In the event that Lessee delivers (and Lessor continues to hold) the full amount of the Security Deposit required under Paragraph 5 of this Lease as a result of the reduction of the
Net Worth 
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 of Lessee
(as provided in Paragraph 5), then an assignment as described in Section 12.1(c) shall not require Lessor’s consent,” 
 63. Paragraph 12.2(e). The following language is added at the end of Paragraph 12.2(e) of the Lease: 
 “Lessor shall not unreasonably withhold its consent to any proposed assignment or sublease by Lessee; however, Lessee agrees that Lessor may consider all reasonable factors relating
to the proposed new assignee or sublessee and the Premises, including, without limitation, the financial capacity and economic condition of the proposed new lessee, wear and tear on facilities, conformity to the use provision in the Lease, credit,
and rent payment history of the proposed new assignee or sublessee. In addition, Lessor’s consent shall be subject to and conditioned upon compliance with reasonable standards and conditions required by Lessor, including, without limitation:

 (1) Lessor’s receipt from Lessee, not less than forty-five (45) days prior to any proposed transfer, of a
written request for Lessor’s consent which request shall set forth (i) the name of the proposed assignee or sublessee, (ii) the financial details and other terms of any proposed transfer, (iii) the type and history of the performance of the
business of any proposed transferee and (iv) such bank, credit, tax returns, financial and other reasonable information concerning any proposed transferee as Lessor may require. 

(2) The assignee or sublessee shall assume in writing, and on a form of document approved by Lessor, all of Lessee’s
obligations under the Lease so assigned or sublet and Lessee has provided Lessor with a copy of such approved form of assignment or sublease at least fifteen (15) days prior to the effective date of such assignment or sublease. 

(3) With respect to any assignment or sublease to any entity other than a Permitted Assignee (unless such assignment or
sublease to a Permitted Assignee is a subterfuge designed to deny Lessor the benefits of this paragraph), payment to Lessor of fifty percent (50%) of any “Transfer Premium” as and when such Transfer Premium is actually received by Lessee.
“Transfer Premium” shall mean the aggregate of all monthly base rent and other consideration (including, without limitation, key money, bonus money or other consideration of any nature paid by a transferee to Lessee in connection with such
transfer, any payment in excess of fair market value for services rendered by Lessee to the transferee or any affiliate of such transferee, any payment in excess of fair market value for assets, fixtures, inventory, equipment, or furniture
transferred by Lessee to the transferee or any affiliate of such transferee in connection with such transfer, and incentives, discounts or complimentary or reduced cost products or services) actually paid to Lessee or which may be realized by Lessee
for the transfer over the entire term of the assignment or subletting which is the subject of the transfer, which is in excess of the aggregate monthly Base Rent payable by Lessee under the Lease for the same period of time (and if such transfer is
for less than all of the Premises, the Transfer Premium shall be calculated on a rentable square foot basis), after deducting (A) to the extent that Lessee has previously assigned or sublet all or any portion of the Premises (in compliance with the
terms and conditions of this Lease) pursuant to a transaction which does not generate a Transfer Premium (a “Below-Rent Sublease”), the amount by which the total consideration received by Lessee in connection with such Below-Rent Sublease
is exceeded (if at all) by the Rent paid by Lessee to Lessor during the effective term of such Below-Rent Sublease (provided that such excess, if any, shall be deducted on a one-time basis only), and (B) the reasonable expenses paid by Lessee for
(i) any tenant improvement or other allowances paid for by Lessee in connection with the transfer, (ii) any out-of-pocket monetary rent concessions provided by Lessee to the transferee, and (iii) any brokerage commissions paid for by 

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Lessee in connection with the transfer. Notwithstanding anything to the contrary, Lessor’s right to fifty percent (50%) of any Transfer Premium shall be personal to the original Lessor named
in this Lease and any Lessor Affiliate. Further, notwithstanding anything to the contrary in this Lease, any Transfer Premium shall be payable only as and when actually received by Lessee; thus, by way of example: (X) if a transfer results in the
transferee paying installments of monthly rent for a period of time which are equal to the installments of Base Rent payable by Lessee during the same period, followed by the payment of installments of monthly rent for a period of time in excess of
the installments of monthly Base Rent payable by Lessee during the same period, then Lessee shall only be required to begin paying the Transfer Premium during the period when such excess is actually paid and received and as it is actually paid and
received, and (Y) if a transfer results in the transferee paying installments of monthly rent for a period of time which are less than the installments of monthly Base Rent payable by Lessee during the same period, followed by the payment of
installments of monthly rent for a period of time in excess of the installments of monthly Base Rent payable by Lessee during the same period, then Lessee shall only be required to begin paying the Transfer Premium at such time, if any, when the
total installments of monthly rent paid by the transferee begin to exceed the total installments of monthly Base Rent paid by Lessee during the same period. For purposes of this Lease, a “Lessor Affiliate” means (i) any entity controlling,
controlled by or under common control with Lessor, (ii) any entity with which Lessor has merged or consolidated, (iii) any entity which acquires all or substantially all of the partnership interests or assets of Lessor, or (iv) any entity that is
controlled by or under common control with any existing (as of the date of execution of this Lease) partner of Lessor. For purposes of determining whether an entity is a “Lessor Affiliate,” the term “control” shall mean the
ownership of substantially all of the outstanding partnership interests or assets of Lessor or any existing partner of Lessor, or the possession (direct or indirect) of power to direct or control the direction of management and policy of Lessor or
any existing partner of Lessor, through the ownership of partnership interests, by contract or otherwise.” 

64. Paragraph 12.4. The following is hereby added after Paragraph 12.3 as a new Paragraph 12.4: 

“12.4 Permitted Assignment/Sublease. Notwithstanding the above, and provided that Lessee is not (i) in Default in the
payment of Rent under this Lease or in Default of any other obligation which, if not taken or remedied, could affect the health or safety of persons or could cause damage to personal property, or (ii) in Breach of any other term of this Lease,
Lessee shall have the right, with not less than thirty (30) days’ prior written notice to Lessor, to, without Lessor’s prior consent, (A) assign the Lease, or sublease the Premises in whole or in part, to a Permitted Assignee (as defined
below), (B) sublease, in the aggregate, not more than fifty percent (50%) of the total rentable square footage of the Office Building, and (C) sublease, in the aggregate, not more than fifty percent (50%) of the total rentable square footage of the
Warehouse Building, provided that all of the following conditions exist: 
 (a) No event as described in
Paragraph 12.1(c) has occurred; 
 (b) The assignee or sublessee continues to operate from the Premises for the
Agreed Use and pursuant to all of the terms and provisions of this Lease; and 
 (c) The assignee or sublessee
shall assume in writing, and on a form of document approved by Lessor, all of Lessee’s obligations under the Lease so assigned or sublet and Lessee has provided Lessor with a copy of such approved form of assignment or sublease at least fifteen
(15) days prior to the effective date of such assignment or sublease. 
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For purposes of this Lease, a “Permitted Assignee” means (i) any entity controlling, controlled by or under common control with Lessee, (ii) any entity with which Lessee has merged or
consolidated, or (iii) any entity which acquires all or substantially all of the shares of stock or assets of Lessee, and which continues to operate substantially the same business at the Premises as had been maintained by Lessee. For purposes of
determining whether an entity is a “Permitted Assignee,” the term “control” shall mean the ownership of substantially all of the outstanding voting stock or assets of Lessee, or the possession (direct or indirect) of power to
direct or control the direction of management and policy of Lessee, through the ownership of voting securities, by contract or otherwise. No such assignment or subletting shall become effective until Lessee has provided Lessor with such resolutions
and documentation evidencing the existence of, the authority of and the assumption of lease obligations by such assignee or sublessee. Notwithstanding any assignment or sublease of this Lease to a Permitted Assignee or any other party approved by
Lessor, Lessee shall continue to remain liable on this Lease for the performance of all terms, including, without limitation, the payment of Rent unless Lessee is expressly released in writing by Lessor.” 

65. Mortgagee Protection. Lessee agrees to give any holder of any mortgage or deed of trust secured by the Real Property,
by registered or certified mail or nationally recognized overnight delivery service, a copy of any notice of default served upon the Lessor by Lessee, provided that, prior to such notice, Lessee has been notified in writing (by way of service on
Lessee of a copy of assignment of rents and leases or otherwise) of the address of such holder of a mortgage or deed of trust for purposes of Lessee giving notice to such holder. Lessee further agrees that the holder of any mortgage or deed of trust
shall have the right to cure or correct such default for an additional sixty (60) days following the expiration of the time allowed for Lessor to cure any default hereunder. Notwithstanding the foregoing, in no event shall any holder of any mortgage
or deed of trust have any obligation to cure any default of the Lessor. 
 66. Option to Extend. 

65.1 Option Right. Lessor hereby grants Lessee four (4) separate options (each an “Option” and together, the
“Options”) to extend the Original Term of this Lease, for periods of five (5) years each (each, an “Option Term”), which Options shall be exercisable only by written notice delivered by Lessee to Lessor as set forth below. The
monthly Base Rent payable by Lessee during each Option Term shall be increased in accordance with Paragraph 1.5(c). 
 65.2 Exercise of Option. Subject to the terms and conditions set forth in Paragraph 39.4 hereof, the Options shall be exercised by Lessee only if Lessee delivers written notice
(“Election Notice”) to Lessor not more than twelve (12) months nor less than nine (9) months prior to the expiration of the Original Term or the applicable Option Term, stating that Lessee has elected to exercise the next available Option.
Lessee’s failure to deliver the Election Notice within the dates specified above shall be deemed to constitute Lessee’s election not to exercise the applicable Option and all subsequent Options, in which case such Option and all subsequent
Options shall be deemed null and void and of no force or effect. If Lessee timely and properly exercises its Options, the Original Term of the Lease shall be extended for the applicable Option Term upon all of the terms and conditions set forth in
this Lease, except that the monthly Base Rent for the Option Term shall be as indicated above. 
 67. Termination
of Existing Lease. Lessor and Lessee are currently parties to a certain Standard Sublease dated November 25, 1997 (the “Existing Lease”) pursuant to which Lessee leases certain portions of the Project consisting of buildings 1 and 4 and
the third floor of the Office Building. 
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 Commencing
upon the later of (i) the date that Lessee is required to vacate the Office Building upon and subject to the terms set forth in Lessor’s written notice or (ii) the date that Lessee actually vacates the Office Building (and removes all of its
personal property therefrom), Lessee’s rent payable under the Existing Lease shall be reduced pro rata by the amount of rent payable by Lessee under the Existing Lease for the portion of the Office Building leased and vacated by Lessee.
Furthermore, commencing upon Lessor’s commencement of the demolition of buildings 1 and 4 (the Human Resource building and Security building) included within Construction Phase 3, Lessee shall be relieved of paying future rent under the
Existing Lease and Lessor and Lessee shall execute a commercially reasonable Lease Termination Agreement promptly following the commencement of demolition of buildings 1 and 4. If after the above-mentioned pro-rata reduction in rent (y) the
remaining monthly rent payable under the Existing Lease for the period following such reduction and until the termination of the Existing Lease plus (z) the monthly Base Rent payable under this Lease for the same period exceeds 100% of the total
monthly Base Rent (as calculated under Paragraph 1.5 of this Lease), then Lessee shall only be responsible to pay an amount equal to 100% of the total monthly Base Rent payable under this Lease as if substantial completion of Construction Phase 3
had occurred for such period, as monthly rental under both this Lease and the Existing Lease. If the Final Base Rent Statement discloses that Lessee has paid in excess of 100% of the monthly Base Rent payable under this Lease (as if substantial
completion of Construction Phase 3 had occurred for such period) for such period, Lessee may deduct such excess from subsequent monthly Base Rent payments until such excess has been fully recovered by Lessee.” 

68. No Abatement or Termination. Notwithstanding anything to the contrary in the Lease or at law, in no event shall Lessee
have any right to abate or withhold full payment of Rent or to terminate the Lease for any reason, except as expressly provided to the contrary in Paragraph 14 of this Lease. 
 69. Rights of Lessee if Lessor Elects to Sell. Subject to the terms and conditions of this Paragraph 69, during the Term of this Lease (as the same may be extended pursuant to Paragraph 66
above), prior to selling the Buildings, or either of them, in an arm’s length transaction to any third party that is not a Lessor Affiliate, Lessor shall deliver a written offer (“Offer”) to Lessee setting forth in reasonable detail
the terms (including, without limitation, price and method of payment) (the “Third Party Terms”) upon which Lessor in good faith then proposes to offer to sell the Building(s) to such third parties (which Offer must be delivered to Lessee
whether the Third Party Terms have been proposed by or to Lessor). Notwithstanding anything to the contrary, in no event shall Lessor be obligated to deliver an Offer to Lessee unless Lessor has determined, in its sole and absolute discretion, that
Lessor is willing to sell the Building(s) pursuant to the terms of such Offer. If Lessor sells the Buildings, or either of them, to a Lessor Affiliate (which sale to a Lessor Affiliate, notwithstanding anything to the contrary, may be consummated
any time, in Lessor’s sole and absolute discretion, upon any terms whatsoever [subject only to the remainder of this sentence], without any requirement to present an offer to Lessee), such Lessor Affiliate shall be bound by this Paragraph 69 in
the event that such Lessor Affiliate subsequently proposes to sell the Building(s) to a third party that is not a Lessor Affiliate. 
 Lessee shall have a right for a period of twenty-one (21) days after delivery of the Offer to elect to purchase the Building(s) on the same terms and conditions set forth in the Offer by
delivery of a written notice to Lessor accepting the offer (the “Acceptance”) accompanied by a deposit (the “Deposit”) in the amount of five percent (5%) of the total sales price set forth in the Offer. If Lessee does not timely
deliver the Acceptance of the Offer without any modification, or if Lessee fails to deliver the Deposit together with the Acceptance, then (a) Lessor shall be free to sell the Building(s) to a third party on substantially the same economic terms as
set forth in the Offer 
 -9- 

 

 
  
 
(subject to the provisions set forth below in this paragraph that permit Lessor to sell to a third party on other terms so long as they are not Substantially More Favorable Terms [as defined
below]), (b) Lessee’s right to purchase the Buildings shall automatically terminate, and (c) Lessee’s right of first offer provided under this Paragraph 69 shall immediately terminate and be of no further force or effect. If Lessor elects
to sell the Building(s) to a third party on terms that are Substantially More Favorable Terms, then Lessor shall present such Substantially More Favorable Terms to Lessee with respect to the Building(s), at which time Lessee shall have ten (10) days
to accept such Substantially More Favorable Terms (if Lessee does not timely notify Lessor of its acceptance of the Substantially More Favorable Terms, then Lessee shall be deemed to have rejected the same). If Lessee rejects the Substantially More
Favorable Terms (or is deemed to have rejected the same), then Lessor shall be free to sell the Building(s) to anyone to whom Lessor desires on the Substantially More Favorable Terms (or on any terms that are less favorable to the purchaser), and
Lessee’s right of first offer and right to purchase the Building(s) shall terminate upon the consummation of such sale of the Building(s) to a third party. The term “Substantially More Favorable Terms” as used in this paragraph shall
mean that the aggregate purchase price offered to the prospective buyer is less than ninety-five percent (95%) of the aggregate purchase price set forth in the Offer. 
 If Lessee timely and properly accepts the Offer (as evidenced by its timely delivery to Lessor of the Acceptance together with the Deposit), then Lessor shall prepare a purchase agreement
on Lessor’s commercially reasonable form (the “Purchase Agreement”) which shall contain the terms of the Offer, shall be on an “as-is” basis, and shall not contain any representations or warranties whatsoever (other than
customary authority representations and representations that Lessor has not granted rights to purchase the Building(s) to other parties). If Lessee fails to execute and deliver the Purchase Agreement (without modification) to Lessor within twenty
(20) days following Lessor’s delivery of the same to Lessee, then (i) Lessor shall be free to sell the Buildings to a third party on such terms and conditions as Lessor and such third party shall agree, which may differ from the terms offered
to Lessee, (ii) Lessee’s right to purchase the Buildings shall automatically terminate, and (iii) Lessee’s right of first offer provided under this Paragraph 69 shall immediately terminate and be of no further force or effect. Neither
Lessee’s rent payments nor any other payments made by Lessee to Lessor pursuant to this Lease shall be applied against the Deposit or purchase price payable under the Purchase Agreement, and Lessee shall be required to pay Base Rent and all
other amounts under this Lease through and pro rated as of the closing date (i.e., the date upon which the sale of the Building(s) to Lessee is consummated). 
 This right of first offer shall be personal to the Lessee named in this lease (the “Original Lessee”) and any Permitted Assignee, and shall not be assignable except to a
Permitted Assignee. Additionally, the rights contained in this Paragraph 69 may only be exercised by the Original Lessee or a Permitted Assignee (and not any other assignee, sublessee or other transferee of the Original Lessee’s interest in the
Lease) if the Original Lessee or the Permitted Assignee directly leases and occupies at least seventy five percent (75%) of the rentable square feet of the Building(s) which are the subject of the Offer as of the date of the Offer and Acceptance.
Neither Lessee nor a Permitted Assignee shall have the right to purchase the Building(s) as provided in this Paragraph 69 if, as of the date of the Offer or Acceptance or, at Lessor’s sole option, as of the scheduled closing of the sale of the
Building(s), Lessee or such Permitted Assignee is in monetary default under this Lease. Notwithstanding anything to the contrary set forth in this Paragraph 69, the right of first offer set forth in this Paragraph 69 shall not apply to any transfer
or sale of all or any part of the Building(s) to any Lessor Affiliate. This right of first offer shall, however, expire and cease to be of any further force or effect (A) in the event Lessee fails to timely or properly exercise its right to purchase
the Building(s) in accordance with the terms of this Paragraph 69; (B) in the event of any 
 -10- 

 

 
  
 
transfer or sale of the Building(s) to any party not described in the foregoing sentence provided that Lessor shall have previously complied with the terms of this Paragraph 69, or (C) if Lessee
shall, for any reason whatsoever, fail to consummate the purchase of the Building(s) as to which Lessee exercised its right of first offer under this Paragraph 69. Upon the expiration or termination of Lessee’s right of first offer, Lessee
agrees to execute any documents requested by Lessor to confirm that Lessee’s right of first offer is of no further force or effect. Notwithstanding anything to the contrary contained in this Lease, if the Purchase Agreement (after execution by
the parties hereto pursuant to this Paragraph 69) is terminated for any reason, then this Lease shall continue in full force and effect as if such Purchase Agreement had not existed (although Lessor and Lessee shall retain any rights they may have
under the Purchase Agreement arising out of such termination). Notwithstanding anything to the contrary contained in this Lease, it is agreed that Lessee’s right of first offer applies to a proposed sale of the Buildings whether individually or
collectively; that is to say, if Lessor proposes to sell both Buildings this Paragraph 69 shall apply and if Lessor proposes to sell only one of the Buildings, this Paragraph 69 shall apply to that proposed sale and the right of first offer shall
continue in effect as to the other Building whether or not Lessee exercises its right of first offer or completes a purchase as to the Building which is proposed to be sold. 
 [SIGNATURES BEGIN ON FOLLOWING PAGE] 
 -11-

 

 
  
 IN WITNESS
WHEREOF, the parties have executed this Addendum concurrently with their execution of the Lease. 

“LESSOR” 
 ATLANTIC AND SHEILA, L.P., 
 a California limited
partnership 
 By: IDS Equities GP One, LLC, its General Partner 

By: IDS Equities, LLC, 
 a California limited liability company 
 Its:
Managing Member 
 By: 
 Murad M. Siam 
 Its: Manager 

“LESSEE” 
 UNIFIED WESTERN GROCERS, INC. 
 a California
corporation 
 By: 
 Name: Robert M. 
 Its: EVP and General Counsel

 By: Gary C. Hammett 
 Name: GARY C. HAMMETT 
 Its: VICE PRESIDENT

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 EXHIBIT
“A” 
 PROJECT COSTS 
 This Exhibit “A” sets forth certain basic terms that shall be applicable to the construction of the Improvements on the Premises, as more particularly described in the Lease and
the Work Letter. This Exhibit shall be deemed a part of the Lease to which it is attached. Capitalized terms which are used herein and not otherwise defined shall have the meanings given in the Lease. 

For the purposes of calculating the monthly Base Rent pursuant to Paragraph 1.5 of the Lease, the total cost to develop
the Project (the “Project Costs”) shall equal the sum of the amounts (without duplication) described in Paragraphs 1 through 3, inclusive, provided, however, that the sum of all Project Costs shall be reduced by the amount of any Direct
Pay Amounts (as such term is defined in the Work Letter) timely paid from Lessee to Lessor as set forth in Section 8.2 of the Work Letter. 
 1. Acquisition Cost. The total costs, fees and expenses incurred by Lessor in connection with its acquisition of the Project, including the purchase price paid and all out of pocket costs
paid or charged to Lessor (including, without limitation, escrow and title charges, broker’s commissions, acquisition fees, loan fees and expenses, insurance costs and fees, legal and accounting fees and fees paid to consultants)
(“Acquisition Costs”). 
 2. Cost of the Improvements. All costs, fees and expenses incurred in
connection with the construction and development of the Improvements and of obtaining all permits, approvals, authorizations and licenses required to construct the Improvements. 

3. Soft Costs. All costs, fees and expenses incurred by Lessor in connection with the design, development and construction
of the Improvements (as defined in the Work Letter), including, without limitation: 
 3.1 Design Fees. All
architectural (including landscape architecture), engineering, and other design consulting fees. 
 3.2
Governmental Fees. All fees, exactions, mitigations, and permit fees imposed or required by any administrative, governmental or quasi-governmental agency with jurisdiction over the Project. 

3.3 Financing. All interest, costs and loan fees payable by Lessor on any construction loan or loans obtained by Lessor
for the construction of the Improvements (the “Construction Financing”), together with all taxes and insurance required by or related to such Construction Financing. 
 3.4 Commissions. Commissions paid or incurred by Lessor in connection with this Lease in an amount equal to Two Hundred Thirty One Thousand Five Hundred Thirty Two and 63/100 Dollars
($231,532.63) (the “Lease Commissions”), which Lease Commissions are payable to IDS Real Estate Group. 

3.5 Contractor’s Fees. All fees and charges of Contractor and any other contractor (including profit) with respect to
the Improvements. 
 -1- 

 

 
  
 3.6
Construction Management Fee. A fee equal to four percent (4 %) of the total hard and soft costs in connection with the design, engineering and construction of the Improvements; provided that following Lessee’s approval (or deemed approval) of a
cost estimate based on the Approved Final Plans, such four percent (4%) fee shall not be charged against costs in excess of the cost estimate approved (or deemed approved) by Lessee (but only to the extent that any such excess costs are not the
result of (i) a Change Order or Change Orders, (ii) any Lessee Delays, (iii) any category of costs not covered by the cost estimate). 
 3.7 Other Costs. All costs arising from the maintenance of completion and other bonds with respect to the construction of the Improvements; all premiums for insurance policies maintained
by Lessor covering the Project and in connection with construction of the Improvements from and after the date of this Lease; the cost of any and all surveys performed in association with the construction of the Improvements, and all other costs,
fees and expenses (including, without limitation, legal, accounting, professional and consultant fees, costs and expenses) incurred and/or paid by Lessor in connection with the design, permitting, construction and development of the Improvements,
and all other costs, fees and expenses designated in the Lease or the Work Letter as “Project Costs.” 

All Project Costs shall be calculated on an “open book” basis and Lessee shall have the right to review all
documentation reasonably related to Lessor’s determination of the Project Cost, provided, however, that Lessee shall keep all such documentation confidential and shall not disclose any such documentation (or any information therein) to any
person or party other than Lessee’s accountants and attorneys, or except as otherwise required by law. If Lessee desires to review any such documentation, Lessee shall provide Lessor with at least 48 hours prior written notice and Lessor shall
make such documents available for Lessee’s review at Lessor’s offices. 
 -2- 

 

 
  
 EXHIBIT
“B” 
 INITIAL BUDGET 

 

 
  
 INITIAL
BUDGET 
 1 HARD COSTS Contracted & Projected 

2 
 3 Bldg 2 (3-story Office Building) 
 4 Relocate
front & rear glass entry doors $10,500 
 5 Add elevator $86,400 

6 ADA Ramp to elevator $16,200 
 7 Elevator Structure $118,800 
 8 Repaint bldg.
Exterior $5,638 
 9 Outdoor Seating Area/Lunch $6,300 

10 ADA Bathrooms $0 
 11 Electrical Gear east of Bldg. 2 $115,000 
 12
Demo 3 floors of Tl $87,630 
 13 Per UWG floor plans rec’d on 10/14/2004 $884,575 

14 Chiller Repairs $0 
 15 Boiler Repairs $0 
 16 $1,331,043 

17 Bldg 3 (Warehouse) 
 18 Repair dock levelers allowance $914 
 19 Repair
3 downspouts $0 
 19a Repair draft curtains in warehouse $8,400 

20 Repaint bldg. Interior $0 
 21 Repaint bldg. Exterior $22,000 
 22 Tl remodel
allowance $ 276,272.66 
 23 Landlord contribution to HVAC cost $ (48,373.33) 

24 Demo dry heads in warehouse $3,825 
 25 Replace fire hoses $0 
 26 Re-certify system
$500 
 27 Patch/Repair slab throughout $3,026 

28 Remove demising walls /maint. Area office $0 
 29 Remove drive-in ramp on east side $0 
 30 Remove
‘spotty’ insulating and replace $0 
 31 Repair slab at removed cooler walls $0 

32 Warehouse interior demo (consolidated) $71,935 
 33 remove dock doors, replace with singles $13,350 

33a WH perimeteter hollow metal door repl/repairs $10,400 

34 Add pilasters to split dock doors into singles $0 

35 Add bollards for track protection $16,200 
 35a Repair WH column bases where damaged $11,000 

36 Install six new pit levelers (mechanical) $0 
 37 Add dock indicator lights $5,000 
 38 Add dock
restraints 
 39 ADA Ramp $27,117 
 1 OF 5 

 

 
  
 INITIAL
BUDGET 
 40 Additional warehouse strip lighting $0 

41 Re-lamp / re-ballast ex fixture as needed $19,155 

42 $440,722 
 43 Bldg 1 (Old Bank Building) 
 44 Remove $39,398

 45 Bldg 4 (Gym building) 
 46 Remove $7,344 
 47 Bldg 5 (Unified Western
Grocers Demo) 
 48 Remove $37,508 
 49 $84,250 
 50 Site-Truck Loading/Parking

 51 Remove all interior trees $8,208 
 52 Pulverize asphalt $7,121 
 53 2 double head
light poles in truck area $0 
 54 Remove 6” for export $5,500 

54a Export for balance of site $10,164 
 55 Fine grading above area $0 
 55a Fine grading
for balance of site $21,780 
 56 Remove Trash Enclosure $0 

57 Remove all planters $1,350 
 58 Demo Fence E. Parking Area $0 
 59 Metal Dowels
@ 18” OC $812 
 60 Remove concrete east sid eof bldg 3 $0 

61 Phase I consolidated site demo $0 
 62 6” concrete apron (Ph I) $116,090 
 62a
6” Concrete apron (Ph II) $198,372 
 63 deduction for asphalt in lieu of concrete $0 

64 Phase I demo budget total $0 
 65 Phase I demo budge variance $0 
 66 Relocate
hydrants (3) $27,000 
 67 Concrete patch-back by KCS $0 

68 $396,396 
 69 Office Parking Lot 
 70 Remove center planters
$3,240 
 71 Remove existing fence east side $4,860 

72 Remove existing glass breezeway $2,700 
 73 Conc-block + overhead steel awning $219,455 
 74
Grade transition between office and parking $8,640 
 75 Install C & G immediately around building $6,566

 76 Landscaping $64,260 
 77 Install W.I. Fence $40,500 
 78 1” Asphalt
Over-lay office parking lot $57,936 
 79 $408,157 

80 
 2 OF 5 

 

 
  
 INITIAL
BUDGET 
 81 Phase I Supervision $11,258 
 81a Phase II & III Supervision $24,000 
 82

 83 Siesmic upgrade $1.70 per sq ft (per Ajit) $215,560 

84 $250,818 
 85 
 86 Subtotal $2,911,386 

87 
 88 Insurance $43,671 
 89 General Conditions
$116,455 
 90 Contractor’s Contingency $0 

91 Contractor’s Fee $279,751 
 92 Total $439,877 
 93 

94 Cafeteria (including consultant) $100,000 
 95 Scissor lift for Cafeteria loading $15,000 
 96
$115,000 
 97 
 98 Total Hard Costs $3,466,264 
 99 

100 SOFT COSTS 
 101 
 102 Shell & Site Renovation Architectural
Fees 
 103 Elevator shaft & stair drawings (include MPE) $55,000 

104 Civil Engineering Drawings $25,000 
 105 
 106 T I Architectural fees Bldg. 2

 107 Warehouse TI Drawings $12,318 
 108 Warehouse MEP Drawings $4,700 
 109 Soil
engineer for yard work $750 
 110 Warehouse building permits $2,230 

111 Warehouse health dept plan check $667 
 112 Space Planning and Design $.15 x 36,480 ft $0 

113 Record Drawings Data Base $.15 x 36,480 ft $0 
 114 TI Mech/Plumbing drawings $27,000 
 115 TI
Electrical Engineering $0 
 116 Construction Documents $1.50 x 36,480 ft $54,720 

117 
 118 Reimbursible Expenses $36,055 
 119 

120 City Permits / Fees $35,000 
 121 
 122 Course of Construction Insurance $7,100

 123 Total Soft Cost $260,540 
 124 
 125 Total Cost $3,726,803 

126 Construction Management Fee $149,072 
 127 Project Total $3,875,876 
 3 OF 5 

 

 
  
 Atlantic
and Sheila, LP 
 Summary of Invoices 
 1/28/2005 
 Prepared For Unified Western Grocers

 Payee Invoice Amount Description 
 Acquisition Price 
 Seller Escrow/Title $
9,350,000.00 Acquisition Price 
 Fidelity National Title Escrow/Title $ 2,209.00 Title Charges 

Fidelity National Title Escrow/Title $ 4,940.00 Escrow Charges 

Fidelity National Title Escrow/Title $ 2,530.00 Loan Title & Escrow Charges 

Subtotal: $9,359,679.00 
 Acquisition Fee 
 IDS 366 $ 93,500.00 Acquisition
Fee 
 Subtotal: $ 93,500.00 
 Acquisition - Legal 
 Thomson & Knight $
8/4/2004 12,500.00 Legal fees for Loan 
 Assayag Maus 24587 $ 22,172.84 Legal fees 

Assayag Maus 24664 $ 521.90 Legal fees 
 Assayag Maus 24882 $ 446.00 Legal fees 
 Jones,
Bell Abbot 19180001 $ 6,417.31 Legal fees 
 Allen Matkins 136251-012 $ 1,448.55 Legal svs. 

Allen Matkins 137773-012 $ 195.75 Legal svs. 
 Subtotal: $ 43,702.35 
 Environmental Insurance

 Intercontinental Brokers 14091 $ 67,369.07 Environmental Insurance 

Subtotal: $ 67,369.07 
 Acquisition Due Diligence Costs 
 Thomsen Eng.
2004141 $ 9,242.58 Alta Survey 
 Air Technical 240729 $ 360.00 Inspect HVAC System 

IRC 34308 $ 3,450.00 Roof Survey 
 Cal Pacific 2003 $ 860.00 Air Sample Test 
 Urban
Concepts 24251 $ 2,372.32 Entitlement Review 
 Hazard 604008 $ 2,381.50 Review Environmental Reports 

Thomsen Eng. 2004141 $ 6,770.55 Civil Eng. Svs. 
 Thomsen Eng. 2004209 $ 390.07 Civil Eng. Svs. 

Thomsen Eng. 2004250 $ 190.00 Civil Eng. Svs. 
 Thomsen Eng. 2004290 $ 3,641.25 Civil Eng. Svs. 

MA Design Group 226-1 $ 9,988.00 Design Svs. 
 Hazard 704007 $ 2,630.00 Oversee Phase 1 & 2 surveys 
 Hazard 804026 $ 540.00 Follow-up insurance matter 

Hazard 904012 $ 1,105.00 Follow-up insurance negotiations & letters 

PPI 2168 $ 5,928.25 Phase 1 
 PPI 2176 $ 10,641.20 Phase 2 
 Ajit Randhava
04-176-1 $ 1,000.00 Consulting Svs. 
 Energy Design 2091 $ 510.00 Prof. Svs. 

Energy Design 2106 $ 170.00 Prof. Svs. 
 Sattar & Assoc. 1861 $ 850.00 Prof. Svs. 

Subtotal: $ 63,020.72 
 Loan Origination Fees (Bank & Broker Fees) 

Guaranty Bank Statement $ 86,526.00 Bank Fee 
 IDS 111572 $ 51,916,00 Loan Consultant Fee 
 HMA
Property 108708 $ 34,610.00 Loan Consultant Fee 
 Subtotal: $ 173,052.00 

Acquisition Costs $ 9,800,323.14 
 4 OF 5 

 

 
  
 Leasing
Commission Build-up 
 Iteration 1 
 Total Costs $ 9,800,323.14 
 10% Rent Factor $
980,032.31 
 Leasing Commision 1st 5-Years $ 147,004.85 

Leasing Commision 2nd 5-Years $ 84,527.79 
 Estimated Commission for Project Costs $ 231,532.63 

Grand Total $ 10,031,855.77 
 Iteration 2 
 Total Costs $ 10,031,855.77

 10% Rent Factor $ 1,003,185.58 
 Leasing Commision 1st 5-Years $ 150,477.84 

Leasing Commision 2nd 5-Years $ 86,524.76 
 Estimated Commission for Project Costs $ 237,002.59 

Grand Total $ 10,268,858.37 
 Iteration 3 
 Total Costs $ 10,037,325.73

 10% Rent Factor $ 1,003,732.57 
 Leasing Commision 1st 5-Years $ 150,559.89 

Leasing Commision 2nd 5-Years $ 86,571.93 
 Estimated Commission for Project Costs $ 237,131.82 

Grand Total $ 10,274,457.55 
 Iteration 4 
 Total Costs $ 10,037,454.96

 10% Rent Factor $ 1,003,745.50 
 Leasing Commision 1st 5-Years $ 150,561.82 

Leasing Commision 2nd 5-Years $ 86,573.05 
 Estimated Commission for Project Costs $ 237,134.87 

Grand Total $ 10,274,589.83 
 Iteration 5 
 Total Costs $ 10,037,458.01

 10% Rent Factor $ 1,003,745.80 
 Leasing Commision 1st 5-Years $ 150,561.87 

Leasing Commision 2nd 5-Years $ 86,573.08 
 Estimated Commission for Project Costs $ 237,134.95 

Grand Total $ 10,274,592.96 
 Iteration 6 
 Total Costs $ 10,037,458.09

 10% Rent Factor $ 1,003,745.81 
 Leasing Commision 1st 5-Years $ 150,561.87 

Leasing Commision 2nd 5-Years $ 86,573.08 
 Estimated Commission for Project Costs $ 237,134.95 

Grand Total $ 10,274,593.03 
 5 OF 5 

 

 
  
 EXHIBIT
“C” 
 PROHIBITED USES 
 The following types of operations and activities are expressly prohibited on the Premises and Project: 
 1. automobile/truck maintenance, repair or fueling, except for automobiles and trucks owned or leased by Lessee in connection with its business; 

2. battery manufacturing or reclamation; 
 3. ceramics and jewelry manufacturing or finishing; 

4. chemical (organic or inorganic) manufacturing; 
 5. drum recycling; 
 6. dry cleaning; 

7. electronic components manufacturing; 
 8. electroplating and metal finishing; 
 9.
explosives manufacturing, use or storage; 
 10. hazardous waste treatment, storage, or disposal; 

11. leather production, tanning or finishing; 
 12. machinery and tool manufacturing; 
 13.
manufacturing of any type; 
 14. metal shredding, recycling or reclamation; 

15. metal smelting and refining; 
 16. mining; 
 17. paint, pigment and coating
operations; 
 18. petroleum refining; 
 19. plastic and synthetic materials manufacturing; 

20. solvent reclamation; 
 21. tire and rubber manufacturing; 
 -1-

 

 
  
 22.
underground storage tanks; and 
 23. residential use or occupancy. 

-1- 

 

 
  
 EXHIBIT
“D” 
 WORK LETTER 
 THIS WORK LETTER (“Work Letter”) is entered into by and between ATLANTIC and SHEILA, L.P., a California limited Partnership (“Lessor”), and UNIFIED WESTERN GROCERS,
INC., a California corporation (“Lessee”). 
 R E C I T A L S: 

A. Lessor and Lessee have entered into that certain Standard Industrial/Commercial Single-Tenant Lease - Net dated of even
date herewith, by and between Lessor and Lessee (the “Lease”) to which this Work Letter is attached, covering certain premises (the “Premises”) more particularly described in the Lease. This Work Letter is attached to the Lease
as Exhibit “D”. The Lease is hereby incorporated into this Work Letter by this reference. Capitalized terms not defined in this Work Letter shall have the meanings given to such terms in the Lease. 

B. In consideration of the mutual covenants contained in the Lease and this Work Letter, Lessor and Lessee hereby agree as
follows: 
 A G R E E M E N T: 
 1. Definitions. As used in this Work Letter, the following terms shall have the following definitions: 
 1.1 “Business Days” or “business days” shall mean any day other than Saturdays, Sundays and legal holidays (that do not fall on a Saturday or Sunday) on which federal
banks located in Los Angeles County are closed for business. 
 1.2 “Improvements” shall mean the
improvements and Site Work set forth on the Final Plans. 
 1.3 “Site Work” means the on-site
improvements, parking lot improvements and restoration, demolition of any buildings located in the Project, landscaping (additions and removals), and hardscaping. 
 1.4 “Lessee Delays” means any delay in the Substantial Completion (defined below) of the Improvements or any portion thereof resulting from any or all of the following: (1)
Lessee’s failure to timely perform any of its obligations pursuant to this Work Letter, including any failure to timely pay any amounts or sums payable by Lessee hereunder and any failure to complete, on or before the due date therefor, any
action item which is Lessee’s responsibility pursuant to this Work Letter, including Lessee’s failure to grant approvals within the time frames described herein; (2) any delay or period of time specifically referred to herein as a
“Lessee Delay”; (3) Lessee’s request for materials, finishes, improvements or installations which are not readily available or which require long lead times to acquire, (4) Lessee’s failure to timely vacate the third floor of the
Office Building prior to the commencement of Construction Phase 2 as set forth in the Lease or (5) any other act or failure to act by 
 -1- 

 

 
  
 Lessee,
Lessee’s Representative, Lessee’s employees, agents, independent contractors, consultants and/or any other person performing or required to perform services on behalf of Lessee. 

2. Architect Selection; Lessee’s Cooperation. 

2.1 Lessor’s Architect. Lessor has retained M/A Design Group, Thompson Engineering and Kendrick Construction
Services, Inc. to design and engineer the Improvements. Notwithstanding that the foregoing companies will provide different design and engineering services, M/A Design Group, Thompson Engineering and Kendrick Construction Services, Inc. shall
collectively be referred to herein as the “Lessor’s Architect.” Furthermore, as used herein, the term “Lessor’s Architect” shall mean that company comprising Lessor’s Architect that is responsible for the
particular design or engineering component of the Improvements, as determined by Lessor. 
 2.2 Lessee’s
Cooperation. Lessee acknowledges that it and its architects, designers, engineers, project managers and representatives, including Larry Schell and Mark Allison (collectively, “Lessee’s Representatives”), shall be actively involved in
the preparation, design, engineering and processing of the Preliminary Plans and Final Plans and that Lessor, Lessor’s Architect, Lessee and Lessee’s Representatives shall work together in a cooperative effort to prepare, design, engineer
and process the Preliminary Plans and Final Plans. 
 3. Improvements. 

3.1 Preliminary Plans. Attached hereto as Schedule 1 is a schedule of current “as built” plans for the interior
improvements currently located in the Office Building and Warehouse Building, a proposed space plan prepared by Lessee for the interior portion of the Improvements, a proposed site plan for the Project and design development plans and specifications
for the Improvements (collectively, the “Preliminary Plans”). The Preliminary Plans are hereby approved by Lessor and Lessee. 
 3.2 Preliminary Budget. Attached hereto as Schedule 2 is a preliminary budget (“Preliminary Budget”) for the Improvements based upon the approved Preliminary Plans. Lessor and
Lessee hereby approve the Preliminary Budget. 
 3.3 Final Plans. As soon as reasonably practicable following the
execution of the Lease by Lessor and Lessee, Lessor shall cause Lessor’s Architect to prepare and deliver to Lessee proposed final plans, specifications and construction drawings for the Improvements (the “Proposed Final Plans”). The
Proposed Final Plans shall be prepared in accordance with and based upon the Preliminary Plans. Lessee acknowledges that Lessor shall have the right to submit any component of the Final Plans (defined below) to the City of Commerce, County of Los
Angeles or any other governmental or quasi governmental agency or authority having jurisdiction over the Project or the construction of the Improvements (collectively, and as applicable, the “Authorities”) for plan checking and the
issuance of applicable permits prior to or after the submission of any other portion of the Final Plans, provided that Lessee has approved (or shall be deemed to have approved) the portion of the Final Plans submitted. If Lessor elects to process
any portion of the Final Plans separately from the remainder of the Final Plans, then Lessor shall have the right to not incorporate into the Proposed Final Plans such plans, specifications and construction drawings to be separately processed and,
with respect to such portion of the Proposed Final Plans, Lessor and Lessee shall follow the procedures in this Section 3 regarding approval and finalization thereof. Within five (5) business days of Lessee’s receipt of the Proposed Final
Plans, Lessee shall either approve the same or specify proposed changes to Lessor in writing, however, Lessee shall work with Lessor and Lessor’s Architect to reconcile any such 

-2- 

 

 
  
 
proposed changes, Lessee’s approval of the Proposed Final Plans shall not be unreasonably withheld or conditioned. Lessee’s failure to notify Lessor in writing within such five (5)
business day period of any changes Lessee desires to be made to the Proposed Final Plans will constitute Lessee’s unconditional and irrevocable approval thereof. Lessor shall review Lessee’s proposed changes to the Proposed Final Plans and
endeavor to cause Lessor’s Architect to revise the Proposed Final Plans within ten (10) business days after Lessor’s receipt of Lessee’s requested changes. Lessor and Lessee shall continue the process above until Lessee has approved
of all changes to the Proposed Final Plans. The Proposed Final Plans, as approved or deemed approved by Lessee, or revised to incorporate Lessee’s requested changes thereto, shall be referred to herein as the “Final Plans”. Lessor
shall submit the Final Plans (as approved or deemed approved by Lessee pursuant to this Section 3.3 or Section 3.4 below) to the applicable Authorities for plan checking and the issuance of a building permit and other necessary permits for the
Improvements. 
 3.4 Preliminary Construction Budget. Within ten (10) business days after the finalization of the
Final Plans (but before any Plan Check Changes [defined in Section 3.5 below] are issued), Contractor shall endeavor to prepare a preliminary construction budget (“Preliminary Construction Budget”) for the Improvements based upon the Final
Plans. Contractor shall submit the Preliminary Construction Budget to Lessee (with a copy to Lessor) for Lessee’s review and approval. Within five (5) business days after Lessee’s receipt of the Preliminary Construction Budget, Lessee
shall either approve or disapprove the Preliminary Construction Budget or particular construction cost line items therein by providing Lessor with specific written notice of those items to which Lessee objects (“Preliminary Construction Budget
Notice”). Lessee’s failure to deliver to Lessor the Preliminary Construction Budget Notice (specifying with reasonable particularity the reasons therefor) within said five (5) business day period will constitute Lessee’s unconditional
and irrevocable approval of the Preliminary Construction Budget. If Lessee timely and reasonably disapproves all or any portion of the Preliminary Construction Budget as set forth in the Preliminary Construction Budget Notice, then Lessee shall have
the right to value engineer the Final Plans (or any component thereof) in order to try to reduce the estimated construction costs of the Improvements as shown on the Preliminary Construction Budget. Lessee’s sole remedy in the event it
disapproves of all or any portion of the Preliminary Construction Budget is to value engineer the Final Plans (or any component thereof) as set forth above. If Lessee timely and reasonably disapproves of all or any portion of the Preliminary
Construction Budget, then Lessor, Lessee and Lessor’s Architect shall work in good faith to revise that portion of the Final Plans to which Lessee timely and reasonably objected in an effort to reduce the proposed construction costs. Lessee
shall use its best efforts to cause Lessor’s Architect to revise the Final Plans and deliver the revised Final Plans to Contractor within five (5) calendar days of Lessee’s delivery to Lessor of the Preliminary Construction Budget Notice.
As soon as reasonably practicable after Contractor’s receipt of the revised Final Plans, Contractor shall prepare and submit to Lessee (with a copy to Lessor) a revised Preliminary Construction Budget (“Revised Preliminary Construction
Budget”) based upon the revised Final Plans and Lessor and Lessee shall again follow the procedures set forth in this Section 3.4 with respect to the approval of the revised Final Plans and Lessee’s approval of the Revised Preliminary
Construction Budget. 
 3.5 Plan Check for Final Plans. As soon as reasonably practicable after Lessor’s
Architect’s completion of the revised Final Plans, Lessor’s Architect shall submit the revised Final Plans to the applicable Authorities for plan checking and the issuance of a building permit and other necessary permits for the
Improvements based upon the revised Final Plans. If no plan check changes are required by the applicable Authorities, then the Final Plans, as approved by the applicable Authorities, shall constitute the “Approved Final Plans.” However, if
plan check changes are required, then Lessor shall deliver to Lessee copies of the Final Plans showing all plan check changes or corrections suggested or required by the applicable Authorities (“Plan Check Changes”), if any, 

-3- 

 

 
  
 
together with a revised budget to reflect the Plan Check Changes. Within five (5) business days of Lessee’s receipt of the Plan Check Changes, Lessee shall either approve the same or deliver
written notice to Lessor of Lessee’s proposed changes to the Plan Check Changes. Lessee’s approval of the Plan Check Changes shall not be unreasonably withheld or conditioned. Lessee’s failure to notify Lessor in writing within such
five (5) business day period of any changes Lessee desires to be made to the Final Plans as a result of Plan Check Changes will constitute Lessee’s unconditional and irrevocable approval of the Plan Check Changes. Lessor shall review
Lessee’s proposed changes to the Plan Check Changes and endeavor to cause Lessor’s Architect to revise the Final Plans within ten (10) business days after Lessor’s receipt of Lessee’s requested changes to incorporate the changes
requested by Lessee. As soon as reasonably practicable after Lessor’s Architect’s completion of the revised Final Plans, Lessor’s Architect shall submit the revised Final Plans to the applicable Authorities for plan checking and the
issuance of a building permit and other necessary permits for the Improvements based upon the revised Final Plans. Lessor shall deliver to Lessee copies of the revised Final Plans showing all additional plan check changes or corrections suggested or
required by the applicable Authorities (“New Plan Check Changes”) and the parties shall follow the same procedures set forth above until all additional plan check changes or corrections suggested or required by the applicable Authorities
are approved by Lessee. Once the applicable Plan Check Changes or New Plan Check Changes are approved or deemed approved by Lessee, Lessor’s Architect shall make all necessary Plan Check Changes or New Plan Check Changes (as applicable) to the
Final Plans (which, when approved by the applicable Authorities, shall constitute “Approved Final Plans”) to obtain building and other applicable permits for the Improvements. 

3.6 Cost Estimate. Upon completion of the Approved Final Plans, Lessor shall instruct Contractor to obtain competitive
bids for the Improvements from at least three (3) qualified subcontractors (which may include subcontractors selected by Lessee and approved by Lessor) for each of the major subtrades that are not included as part of the Contractor’s self
performed work and to submit the same to Lessor and Lessee for their review and approval within five (5) business days after Contractor’s submission. Each bid shall, to the extent reasonably practicable, contain an itemization by trade and
shall include a schedule of values. Lessor shall select the lowest qualified bid for each major subtrade, unless Lessor and Lessee agree otherwise within said five (5) day period. Upon selection of the subcontractors and approval of the bids,
Contractor shall prepare a cost estimate for the Improvements described in the Approved Final Plans, based upon the bids submitted by the subcontractors selected. Contractor shall submit such cost estimate to Lessee (with a copy to Lessor) for
Lessee’s review and approval. Within three (3) business days after Lessee’s receipt of the cost estimate, Lessee shall either approve or disapprove the cost estimate in writing delivered to Lessor, which approval shall not be unreasonably
withheld or conditioned; provided, however, that Lessee shall have no right to disapprove (and Lessee shall be deemed to have approved) of the cost estimate of the total construction cost of the Improvements set forth on such cost estimate if it is
within (and including) the total construction cost for the Improvements set forth on the last revision of the Preliminary Construction Budget. Lessee’s failure to deliver to Lessor written notice of its approval or disapproval within such three
(3) business day period shall constitute Lessee’s approval of the cost estimate. If Lessee timely disapproves the cost estimate, Lessor and Lessee shall work together in good faith to identity those areas that should be reasonably rebid to
reduce construction costs and Lessor shall instruct the Contractor to resolicit bids from subcontractors based on such areas of the Approved Final Plans, in accordance with the procedures specified above. Following any re-solicitation of bids by
Lessor pursuant to this Paragraph 3.6, Lessor and Lessee shall again follow the procedures set forth in this Paragraph 3.6 with respect to the submission and reasonable approval of the cost estimate from Contractor; provided, however that the period
between Lessee’s disapproval of the first revised cost estimate and Lessee’s final approval of a cost estimate shall constitute a Lessee Delay. 
 -4- 

 

 
  
 3.7 No
Representations Regarding Lessee’s Intended Use. Notwithstanding anything to the contrary contained in the Lease or herein, Lessor’s participation in the preparation of the Preliminary Plans, the Final Plans, the Approved Final Plans, or
any other plans, drawings and specifications and the construction of the Improvements shall not constitute any representation or warranty, express or implied, that the Improvements will be suitable for Lessee’s intended purpose. Lessor’s
sole obligation shall be to arrange the construction of the Improvements substantially in accordance with the requirements of the Approved Final Plans; and any additional costs or expense required for the modification thereof to more adequately meet
Lessee’s use, whether during or after Lessor’s construction thereof, shall be borne entirely by Lessee except as otherwise provided in this Work Letter. 
 4 . Contractor. Lessor has selected, and Lessee approves, Kendrick Construction Services, Inc. as Lessor’s “Contractor” to construct the Improvements. 

5. Construction of the Improvements. Lessor shall enter into a construction contract with the Contractor on a form
reasonably acceptable to Lessor (“Construction Contract”) for the construction and installation of the Improvements in accordance with the Approved Final Plans. Lessor shall cause the Contractor to construct the Improvements in a good and
workmanlike manner, in accordance with the Approved Final Plans and in compliance with all Applicable Requirements. Lessor shall cause the Improvements to be constructed in three (3) phases (each, a “Construction Phase”), as generally
described on Schedule 3 attached hereto. The three Construction Phases are referred to herein and in the Lease as “Construction Phase 1,” “Construction Phase 2” and “Construction Phase 3.” 

Lessor may work on or pull permits for each Construction Phase independently or in any combination (i.e., Lessor may work
on or pull permits for two or three Construction Phase at the same time). 
 6. Substantial Completion of the
Improvements. 
 6.1 Substantial Completion. For purposes of this Lease, “Substantial Completion” of
the Improvements for each Construction Phase shall occur on the date that Lessor and Lessee have received certificates from Lessor’s Architect certifying that the Improvements for such Construction Phase have been substantially completed in
accordance with the Approved Final Plans pertaining to such Construction Phase, with the exception of any punch list items and any of Lessee’s fixtures, work-stations, built-in furniture, or equipment to be installed by Lessee. 

6.2 Delay in Substantial Completion. Except as provided in this Section 6.2, the Commencement Date and Lessee’s
obligation to pay Base Rent for the Premises shall occur as set forth in the Lease. However, notwithstanding anything to the contrary contained in this Work Letter or in the Lease, if there shall be a delay or there are delays in the Substantial
Completion of the Improvements (or any Construction Phase) as a result of any Lessee Delays, then, notwithstanding anything to the contrary set forth in the Lease or this Work Letter and regardless of the actual date of the Substantial Completion of
the Improvements, the date of Substantial Completion thereof shall be deemed to be the date that Substantial Completion would have occurred if no Lessee Delay had occurred. 
 7. Change Orders. If Lessee desires any change in the Approved Final Plans, such changes may only be requested by the delivery to Lessor by Lessee of a proposed written “Change
Order” specifically setting forth the requested change. Change Orders shall also include those changes specified in this Work Letter as “Change Orders.” Lessor shall have five (5) business days from the receipt of the proposed Change
Order to provide Lessee with the Lessor’s Architect’s disapproval of the proposed change stating the reason(s) for such disapproval, or if Lessor’s Architect approves the 

-5- 

 

 
  
 proposed
change, the following items: (i) an itemized breakdown of any increase in the cost caused by such change (the “Change Order Cost”), (ii) a statement of the number of days of any delay caused by such proposed change (the “Change Order
Delay”), and (iii) a statement of the cost of the Change Order Delay (the “Change Order Delay Expense”), which Change Order Delay Expense shall be the product of the number of days of delay multiplied by the estimated daily Base Rent
first due under the Lease. Lessee shall then have one (1) business day to approve the Change Order Cost, the Change Order Delay and the Change Order Delay Expense. If Lessee approves these items, Lessor shall promptly execute the Change Order and
cause the appropriate changes to the Approved Final Plans to be made. If Lessee fails to respond to Lessor within said one (1) business day period, the Change Order Cost, the Change Order Delay and the Change Order Delay Expense shall be deemed
disapproved by Lessee and Lessor shall have no further obligation to perform any work set forth in the proposed Change Order. The Change Order Cost shall include all costs associated with the Change Order, including, without limitation,
architectural fees, engineering fees and construction costs, as reasonably determined by Lessor’s Architect and Lessor’s Contractor, respectively, together with a four percent (4%) fee of these costs as reimbursement for the expense of
administration and coordination of such Change Order by Lessor. The Change Order Delay shall include all delays caused by the Change Order, including, without limitation, all design and construction delays, as reasonably determined by Lessor’s
Architect and Lessor’s Contractor. Lessee shall pay Lessor for such Change Order Costs and the Change Order Delay Expenses within fifteen (15) days following Lessor’s delivery to Lessee of a request for payment (which request for payment
shall contain reasonable supporting documentation including vendor or contractor invoices and details of costs covered by such request for payment). Lessor shall have no obligation to commence with the applicable Change Order until it receives
Lessee’s approval of the Change Order (including Lessee’s approval of the Change Order Cost and the Change Order Delay Expense). Any delay in revising the Approved Final Plans or in constructing the Improvements resulting from
Lessee’s failure to timely pay the applicable Change Order Cost and Change Order Delay Expense, as set forth above, shall be deemed a Lessee Delay. 
 8. Financing of Construction of Improvements. 
 8.1
Lessor’s Financing. Lessor may elect to finance the construction of the Improvements (or any portion thereof) with the proceeds of a loan (“Project Loan”) from a third party lender (“Lender”) at the then prevailing market
rate and market terms for similar projects. The documents securing or given in connection with the Project Loan, if any, are herein collectively called “Loan Documents.” Any Project Loan may be secured by the lien of a deed of trust
encumbering the Project. Lessee agrees to execute and/or provide all documents reasonably required by any Lender in connection with any Project Loan, including, without limitation, estoppel certificates, subordination agreements (subject to a
non-disturbance agreement which is reasonable and customary), consents to the assignment of this Agreement, written confirmation of the satisfaction of closing conditions, and evidence of the due execution, validity and enforceability of this
Agreement, provided that such documents do not increase Lessee’s liabilities hereunder, impose additional obligations on Lessee or impair Lessee’s rights and remedies hereunder. 

8.2 Lessee’s Financing. Notwithstanding anything to the contrary contained in the Lease (including, without
limitation, this Work Letter), Lessee shall pay Lessor directly for the costs, fees and expenses of every component of the “Project Costs” other than Acquisition Costs (the “Direct Pay Amount”). Lessee shall pay Lessor for the
applicable portion of the Direct Pay Amount within fifteen (15) days following Lessor’s delivery to Lessee of a request for payment for the portion of Project Costs coming due (which request for payment shall contain reasonable supporting
documentation including vendor or contractor invoices and details of costs covered by such request for 
 -6-

 

 
  
 payment).
Only Direct Pay Amounts timely paid to Lessor shall not be included in the total Project Costs upon which Base Rent is calculated under the Lease. 
 9. Walk-Through and Punch List. Within five (5) business days after Substantial Completion of each Construction Phase of the Improvements, Lessee, Lessor and Lessor’s Architect shall
jointly conduct a walk-through of the applicable portion of the Premises and shall jointly prepare a punch list (“Punch List”) of items of the Improvements needing additional work or repair (“Punch List Items”); provided,
however, the Punch List shall be limited to items which are required by the construction contract between Lessor and Contractor, the Approved Final Plans, Change Orders and any other changes agreed to by the parties. Lessor shall endeavor to repair
or complete the Punch List Items within forty-five (45) days following the date of Substantial Completion of each Construction Phase of the Improvements, as applicable, to the extent reasonably possible. Lessor shall use reasonable efforts to repair
the Punch List Items in a manner that minimizes any unreasonable interference to Lessee in its use of the Premises. 
 10. Cooperation. Lessor and Lessee agree to cooperate with one another and to cause their respective employees, agents and contractors to cooperate with one another to coordinate any work
being performed by Lessor and/or Lessee under this Work Letter, and their respective employees, agents and contractors so as to avoid unnecessary interference and delays with the completion of the Improvements. 

11. Lessor’s Warranty. Lessor does not warrant that the Improvements or any component thereof shall be free of latent
defects or shall not require maintenance and/or repair within any particular period of time, except as expressly provided below or in Paragraph 2.2 of the Lease. Lessee acknowledges and agrees that it shall rely solely on the warranty or guaranty,
if any, from the Contractor, Lessor’s Architect, or other material and/or service providers relative to the proper design and construction of the Improvements or any component thereof. Lessor shall endeavor to have all warranties or guaranties
issued by the Contractor, Lessor’s Architect or other material and/or service providers issued in the name of Lessor and Lessee, provided that any excess costs payable in connection with issuing such warranties or guaranties in Lessee’s
name shall be paid by Lessee within ten (10) business days after Lessor’s written demand therefor. 
 12.
Representatives. 
 12.1 Lessee’s Representative. Lessee has designated Larry Schell and Mark Allison as its
sole representatives with respect to the matters set forth in this Work Letter, either of whom, alone, shall have full authority and responsibility to act on behalf of the Lessee as required in this Work Letter. All notices, documents and materials
required to be delivered to Lessee under this Work Letter shall be delivered to Lessee at the address set forth in the Lease. 
 12.2 Lessor’s Representative. Lessor has designated Nadir Elfarra as its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to
Lessee, shall have full authority and responsibility to act on behalf of the Lessor as required in this Work Letter. All notices, documents and materials required to be delivered to Lessor under this Work Letter shall be delivered to Lessor, at the
address set forth in the Lease, but to the attention of Nadir Elfarra. 
 [SIGNATURES BEGIN ON FOLLOWING PAGE]

 -7- 

 

 
  
 IN WITNESS
WHEREOF, this Work Letter is executed as of the date first written above. 
 “Lessor” 

ATLANTIC AND SHEILA, L.P., 
 a California limited partnership 
 By: IDS
Equities, LLC, 
 a California Limited liability company 

Its: general partner 
 By: 
 Murad M. Siam 

Its: Managing Member 
 “Lessee” 
 UNIFIED WESTERN GROCERS, INC.

 a California corporation 
 By: 
 Name: 

Its: EVP General Counsel 
 By: Gary C. Hammett 
 Name: Gary C. Hammett

 Its: VICE PRESIDENT 
 -8- 

 

 
  
 SCHEDULE 1

 PRELIMINARY PLANS 

 

 
  
 2500 S.
Atlantic 
 Working Drawings Manifest 
 Phase I 
 Prepared By Sheet Title Sheet No. Date
Prepared 
 Thomsen Engineering, Inc. A.L.T.A. Survey 1 7/28/2004 

Thomsen Engineering, Inc. LSWPPP / WWECP - Repavement of Existing Parking Lot 1 12/20/2004 

M/A Design Group, Inc. General Notes, Sheet Index, Site LocationPlan, Building Information, Vicinity Map A 0.1 2/14/2005

 M/A Design Group, Inc. Specifications A 0.3 2/14/2005 

M/A Design Group, Inc. Specifications (Attachment A) A 0.4 2/14/2005 

M/A Design Group, Inc. Construction Plan A 3.1 2/14/2005 

M/A Design Group, Inc. Power & Communication Plan A 4.1 2/14/2005 

M/A Design Group, Inc. Reflected Ceiling Plan A 5.1 2/14/2005 

M/A Design Group, Inc. Wall & Floor Finish Plan A 6.1 2/14/2005 

M/A Design Group. Inc. Exiting Plan A 7.1 2/14/2005 

M/A Design Group, Inc. Interior Elevations EL.1 2/14/2005 

M/A Design Group, Inc. Construction Details CD.1 2/14/2005 

Ajit S. Randhava & Assoc. Roof Framing Plan S-1 2/15/2005 

Ajit S. Randhava & Assoc. Details S-2 2/15/2005 

Ajit S. Randhava & Assoc. Details (continued) S-3 2/15/2005 

 

 
  
 Certified
Grocers of California 
 Existing Floor Plan 

Miller Brands Building / Basement Floor Level 
 1/8 =1’-0” 
 North 

 

 
  
 Certified
Grocers of California 
 Existing Floor Plan 

Miller Brands Building / 1st Floor Level 
 1/8’=1’10” 
 North 

 

 
  
 Certified
Grocers of California 
 Existing Floor Plan 

Miller Brands Building / 2nd Floor Level 
 1/8’=1’-0” 
 North 

 

 
  
 PERIMETER
OFFICES 
 INTERIOR CUBICLES 

 

 
  
 SCHEDULE 2

 PRELIMINARY BUDGET 

 

 
  

PRELIMINARY BUDGET 
 1 HARD COSTS Contracted & Projected 
 2

 3 Bldg 2 (3-story Office Building) 
 4 Relocate front & rear glass entry doors $10,500 
 5 Add elevator $86,400 
 6 ADA Ramp to elevator
$16,200 
 7 Elevator Structure $118,800 
 8 Repaint bldg. Exterior $5,638 
 9 Outdoor Seating
Area/Lunch $6,300 
 10 ADA Bathrooms $0 
 11 Electrical Gear east of Bldg. 2 $115,000 
 12
Demo 3 floors of Tl $87,630 
 13 Per UWG floor plans rec’d on 10/14/2004 $884,575 

14 Chiller Repairs $0 
 15 Boiler Repairs $0 
 16 $1,331,043 

17 Bldg 3 (Warehouse) 
 18 Repair dock levelers allowance $914 
 19 Repair
3 downspouts $0 
 19a Repair draft curtains in warehouse $8,400 

20 Repaint bldg. Interior $0 
 21 Repaint bldg. Exterior $22,000 
 22 TI remodel
allowance $276,272.66 
 23 Landlord contribution to HVAC cost $(48,373.33) 

24 Demo dry heads in warehouse $3,825 
 25 Replace fire hoses $0 
 26 Re-certify system
$500 
 27 Patch/Repair slab throughout $3,026 

28 Remove demising walls /maint. Area office $0 
 29 Remove drive-in ramp on east side $0 
 30 Remove
’spotty’ insulating and replace $0 
 31 Repair slab at removed cooler walls $0 

32 Warehouse interior demo (consolidated) $71,935 
 33 remove dock doors, replace with singles $13,350 

33a WH perimeteter hollow metal door repl/repairs $10,400 

34 Add pilasters to split dock doors into singles $0 

35 Add bollards for track protection $16,200 
 35a Repair WH column bases where damaged $11,000 

36 Install six new pit levelers (mechanical) $0 
 37 Add dock indicator lights $5,000 
 38 Add dock
restraints 
 39 ADA Ramp $27,117 
 1 OF 4 

 

 
  

PRELIMINARY BUDGET 
 40 Additional warehouse strip lighting $0 
 41
Re-lamp / re-ballast ex fixture as needed $19,155 
 42 $440,722 

43 Bldg 1 (Old Bank Building) 
 44 Remove $39,398 
 45 Bldg 4 (Gym building)

 46 Remove $7,344 
 47 Bldg 5 (Unified Western Grocers Demo) 
 48
Remove $37,508 
 49 $84,250 
 50 Site-Truck Loading/Parking 
 51 Remove all
interior trees $8,208 
 52 Pulverize asphalt $7,121 

53 2 double head light poles in truck area $0 
 54 Remove 6” for export $5,500 
 54a Export
for balance of site $10,164 
 55 Fine grading above area $0 

55a Fine grading for balance of site $21,780 
 56 Remove Trash Enclosure $0 
 57 Remove all
planters $1,350 
 58 Demo Fence E. Parking Area $0 

59 Metal Dowels @ 18” OC $812 
 60 Remove concrete east sid eof bldg 3 $0 
 61
Phase I consolidated site demo $0 
 62 6” concrete apron (Ph I) $116,090 

62a 6” Concrete apron (Ph II) $198,372 
 63 deduction for asphalt in lieu of concrete $0 

64 Phase I demo budget total $0 
 65 Phase I demo budge variance $0 
 66 Relocate
hydrants (3) $27,000 
 67 Concrete patch-back by KCS $0 

68 $396,396 
 69 Office Parking Lot 
 70 Remove center planters
$3,240 
 71 Remove existing fence east side $4,860 

72 Remove existing glass breezeway $2,700 
 73 Conc-block + overhead steel awning $219,455 
 74
Grade transition between office and parking $8,640 
 75 Install C & G immediately around building $6,566

 76 Landscaping $64,260 
 77 Install W.I. Fence $40,500 
 78 1” Asphalt
Over-lay office parking lot $57,936 
 79 $408,157 

80 
 2 OR 4 

 

 
  

PRELIMINARY BUDGET 
 81 Phase I Supervision $11,258 
 81a Phase II &
III Supervision $24,000 
 82 
 83 Siesmic upgrade $1.70 per sq ft (per Ajit) $215,560 
 84 $250,818 
 85 

86 Subtotal $2,911,386 
 87 
 88 Insurance $43,671 

89 General Conditions $116,455 
 90 Contractor’s Contingency $0 
 91
Contractor’s Fee $279,751 
 92 Total $439,877 

93 
 94 Cafeteria (including consultant) $100,000 
 95
Scissor lift for Cafeteria loading $15,000 
 96 $115,000 

97 
 98 Total Hard Costs $3,466,264 
 99 

100 SOFT COSTS 
 101 
 102 Shell & Site Renovation Architectural
Fees 
 103 Elevator shaft & stair drawings (include MPE) $55,000 

104 Civil Engineering Drawings $25,000 
 105 
 106 T I Architectural fees Bldg. 2

 107 Warehouse TI Drawings $12,318 
 108 Warehouse MEP Drawings $4,700 
 109 Soil
engineer for yard work $750 
 110 Warehouse building permits $2,230 

111 Warehouse health dept plan check $667 
 112 Space Planning and Design $.15 x 36,480 ft $0 

113 Record Drawings Data Base $.15 x 36,480 ft $0 
 114 TI Mech/Plumbing drawings $27,000 
 115 TI
Electrical Engineering $0 
 116 Construction Documents $1.50 x 36,480 ft $54,720 

117 
 118 Reimbursible Expenses $36,055 
 119 

120 City Permits / Fees $35,000 
 121 
 122 Course of Construction Insurance $7,100

 123 Total Soft Cost $260,540 
 124 
 125 Total Cost $3,726,803 

126 Construction Management Fee $149,072 
 127 Project Total $3,875,876 
 3 OF 4 

 

 
  
 Leasing
Commission Build-up 
 Iteration 1 
 Total Costs $ 9,800,323.14 
 10% Rent Factor $
980,032.31 
 Leasing Commision 1st 5-Years $ 147,004.85 

Leasing Commision 2nd 5-Years $ 84,527.79 
 Estimated Commission for Project Costs $ 231,532.63 

Grand Total $ 10,031,855.77 
 Iteration 2 
 Total Costs $ 10,031,855.77

 10% Rent Factor $ 1,003,185.58 
 Leasing Commision 1st 5-Years $ 150,477.84 

Leasing Commision 2nd 5-Years $ 86,524.76 
 Estimated Commission for Project Costs $ 237,002.59 

Grand Total $ 10,268,858.37 
 Iteration 3 
 Total Costs $ 10,037,325.73

 10% Rent Factor $ 1,003,732.57 
 Leasing Commision 1st 5-Years $ 150,559.89 

Leasing Commision 2nd 5-Years $ 86,571.93 
 Estimated Commission for Project Costs $ 237,131.82 

Grand Total $ 10,274,457.55 
 Iteration 4 
 Total Costs $ 10,037,454.96

 10% Rent Factor $ 1,003,745.50 
 Leasing Commision 1st 5-Years $ 150,561.82 

Leasing Commision 2nd 5-Years $ 86,573.05 
 Estimated Commission for Project Costs $ 237,134.87 

Grand Total $ 10,274,589.83 
 Iteration 5 
 Total Costs $ 10,037,458.01

 10% Rent Factor $ 1,003,745.80 
 Leasing Commision 1st 5-Years $ 150,561.87 

Leasing Commision 2nd 5-Years $ 86,573.08 
 Estimated Commission for Project Costs $ 237,134.95 

Grand Total $ 10,274,592.96 
 Iteration 6 
 Total Costs $ 10,037,458.09

 10% Rent Factor $ 1,003,745.81 
 Leasing Commision 1st 5-Years $ 150,561.87 

Leasing Commision 2nd 5-Years $ 86,573.08 
 Estimated Commission for Project Costs $ 237,134.95 

Grand Total $ 10,274,593.03 
 4 OF 4 

 

 
  
 SCHEDULE 3

 CONSTRUCTION PHASES 
 CONSTRUCTION PHASE 1: Warehouse Building and Partial Yard Renovation 
 Remove interior improvements in the Warehouse Building except for existing office improvements and repair the building slab, as necessary 

Remove the existing truck apron in the Warehouse Building and replace the same with concrete to the property line of
Lessee’s property located adjacent to the Premises 
 Paint the interior and exterior of the Warehouse
Building with building standard colors to be selected by Lessee 
 Renovate the dock area of the Warehouse
Building and provide ten positions, each with levelers 
 Renovate existing offices and associated restrooms in
the Warehouse Building 
 CONSTRUCTION PHASE 2: Office Building Renovation and Parking Renovation 

Remove existing tenant improvements (restroom and core to remain in their current locations) 

Install new tenant improvements per Lessee’s specifications 

Install new exterior elevator and exit stairs on the north side of the Office Building 

Renovate the HVAC system serving the Office Building to be in good working condition 

Repair and/or resurface the parking area serving the Office Building 

Revise the automobile parking layout (remove interior landscape) to join with the Lessee’s parking lot located on the
Lessee’s property adjacent to the Premises 
 CONSTRUCTION PHASE 3: Building Demolition and Yard Expansion

 Demolish the existing Human Resource building and Security building (as shown on the Site Plan) in the Project

 Remove existing landscape in the area of existing Human Resource building and Security building 

Install new trailer storage yard in the area of existing Human Resource building and Security buildingStandard Industrial  Lease

 Exhibit 10.5 
 

 
 DERMODY PROPERTIES 

STANDARD INDUSTRIAL LEASE 
 Lease Preparation Date: November 15, 2001 

Dermody Properties and Dermody Family Limited Partnership II, Landlord and Unified Western Grocers, Inc., Tenant

 

 
  
 TABLE OF
CONTENTS 
 Page 
 1. LEASE TERMS 1. 
 2. DEMISE AND POSSESSION 2.

 3. PAYMENT OF RENT 3. 
 4. COMMON AREAS 3. 
 5. ADDITIONAL RENT 4.

 6. SECURITY DEPOSIT 5. 
 7. USE OF PREMISES; QUIET CONDUCT 6. 
 8. PARKING
9. 
 9. UTILITIES 10. 
 10. ALTERATIONS AND MECHANIC’S LIENS 10. 
 11.
INSURANCE 11. 
 12. INDEMNIFICATION AND WAIVER OF CLAIMS 13. 

13. MAINTENANCE AND REPAIRS OF PREMISES 13. 
 14. AUCTIONS, SIGNS, AND LANDSCAPING 14. 
 15.
ENTRY BY LANDLORD 15. 
 16. ABANDONMENT 15. 

17. DESTRUCTION 15. 
 18. ASSIGNMENT, SUBLETTING AND TRANSFERS OF OWNERSHIP 16. 
 19. DEFAULT BY TENANT 18. 
 20. REMEDIES OF
LANDLORD 19. 
 21. SURRENDER OF LEASE NOT MERGER 22. 

22. ATTORNEYS FEES AND COLLECTION CHARGES 22. 
 23. CONDEMNATION 22. 
 24. RULES AND REGULATIONS
23. 
 25. ESTOPPEL CERTIFICATE 23. 
 26. SALE BY LANDLORD 23. 
 27. NOTICES 24.

 28. SURRENDER OF PREMISES 24. 
 29. HOLDOVER 24. 
 30. DEFAULT OF LANDLORD;
LIMITATION OF LIABILITY 25. 
 31. PRIORITY 25. 

32. DEPOSIT AGREEMENT 26. 
 33. GOVERNING LAW 26. 
 34. NEGOTIATED TERMS 26.

 35. SEVERABILITY 26. 
 36. BROKERS 26. 
 37. QUIET POSSESSION 26.

 38. MISCELLANEOUS PROVISIONS 27. 
 39. CHANGE ORDERS 28. 
 40. SPECIAL PROVISIONS AND
EXHIBITS 28. 
 41. OPTIONS TO EXTEND LEASE TERM 29. 

42. TERMINATION OF EXISTING LEASE 30. 
 -i- 

 

 
  
 DERMODY
PROPERTIES 
 STANDARD INDUSTRIAL LEASE For Landlord Use Only: (NET-NET-NET) L/A: GS (SINGLE TENANT) Bldg: 354

 Lease Preparation Date: November 15, 2001 

Landlord: Dermody Properties, a Nevada corporation, as to an undivided one-half (1/2) interest, and Dermody Family
Limited Partnership II, a Washington limited partnership, as to an undivided one-half (1/2) interest 

Tenant: Unified Western Grocers, Inc., a California corporation 

Trade Name (dba): Unified Western Grocers 
 1. LEASE TERMS 
 1.01 Premises: The Premises
referred to in this Lease include the land consisting of approximately fourteen and 12/100ths (14.12) acres and all improvements including the building containing approximately two hundred ninety-one thousand, three hundred thirty
(291,330) square feet (the “Building”) and other improvements including the parking area thereon, as depicted on Exhibit A, and all appurtenances thereof. The address of the Premises is: 1888 South East Street, Fresno, California.

 1.02 Project: [Intentionally omitted.] 

1.03 Tenant’s Notice Address: Tenant’s Notice Address is the address of the Premises as defined in
Section 1.01 unless otherwise specified here: 
 1.04 Landlord’s Notice Address: Landlord’s Notice
Address is 1200 Financial Blvd., Reno, Nevada 89502. 
 1.05 Tenant’s Permitted Use: warehousing and
distribution of grocery products and grocery related merchandise now or hereafter commonly sold in grocery stores and supermarkets, and related office uses, in full compliance with the terms of this Lease. 

1.06 Lease Term: The Lease Term commences on May 1, 2002 (the “Lease Commencement Date”) and expires ten
(10) years thereafter, subject to extension as provided in Section 41.01 below. Tenant shall also be entitled to the options to extend the Lease Term for two (2) additional periods of five (5) years each (the “Extension
Terms” as defined in Section 41.01 below), subject to and in compliance with the terms and conditions specified in Section 41.01 below. For purposes of this Lease, the term, “Initial Lease Term,” shall mean the initial ten
(10) year term of the Lease specified above, and the term, “Lease Term,” shall mean and include the Initial Lease 
 1. 

 

 
  
 Term,
together with the Extension Term(s) to the extent the Extension Option(s) are exercised by Tenant pursuant to Section 41.01 below. 
 1.07 Base Monthly Rent: Base Monthly Rent shall be payable in lawful money of the United States of America in accordance with the following Schedule: 

Period Base Monthly Rent 
 Lease Commencement Date - April 30, 2007 $80,000 

May 1, 2007 – Expiration of Initial Lease Term $92,000 

Base Monthly Rent during the Extension Terms shall be determined pursuant to Section 41.02 below. 

1.08 Security Deposit: Forty-six Thousand, Four Hundred Forty-seven Dollars ($46,447) in lawful money of the United States
of America. Tenant’s security deposit in this amount under Tenant’s lease with Landlord for the Premises dated as of May 1, 1991 as amended (the “Existing Lease”) which shall be terminated effective as of the Lease
Commencement Date pursuant to Section 42.01 below shall be retained by Landlord in payment of the Security Deposit under this Lease. 
 1.09 Proportionate Share: [Intentionally omitted.] 

1.10 Index: The Index for calculating cost of living adjustments in the Base Monthly Rent during the Extension Terms shall
be the Consumer Price Index for All Urban Consumers, U.S. City Average (1982/84=100) or such substitute Index specified in Section 3.02 or 41.02 below. 
 1.11 Tenant Improvements: Tenant is entitled to the use of all vehicle parking spaces within the Premises subject to the provisions of Article 8. of the Lease. 

1.12 Landlord’s Work: None. During the Lease Term, Landlord will be under no obligation to alter, change, decorate or
improve the Premises. 
 1.13 Guaranty: [Intentionally omitted.] 

2. DEMISE AND POSSESSION 
 2.01 Landlord leases to Tenant and Tenant leases from Landlord the Premises. By entering and occupying the Premises over the past ten (10) years, Tenant acknowledges that it has
examined the Premises, is fully familiar with the Premises, and accepts the Premises in their present condition. Nothing contained in this Lease, including any Exhibits hereto, shall be interpreted or is intended in any way as a representation or
warranty by Landlord as to the quantity, quality, or fitness of the Premises, including, without limitation, a fitness for any particular purpose, each of which is expressly disclaimed by Landlord hereunder. Tenant acknowledges and agrees that
(i) Landlord is not making and has not made at any time any warranties or representations of any kind or character, express or implied, with respect to the Premises, including, but not limited to, any warranties or 

2. 

 

 
  

representations as to habitability, merchantability, or fitness for a particular purpose, and (ii) Tenant is
occupying the Premises “as is, where is, with all faults” and Tenant has not relied on and will not rely on, and Landlord is not liable for or bound by, any express or implied warranties, guarantees, statements, representations, or
information pertaining to the Premises or relating thereto made or furnished by Landlord or any of its representatives, or any real estate broker or agent representing or purporting to represent Landlord, to whomever made or given, directly or
indirectly, verbally or in writing, unless specifically set forth in this Lease. 
 2.02 [Intentionally omitted.]

 2.03 [Intentionally omitted.] 
 3. PAYMENT OF RENT 
 3.01 On the first day of every
calendar month of the Lease Term commencing on the Lease Commencement Date, Tenant will pay, without deduction, abatement, or offset, prior notice or demand, Base Monthly Rent and Additional Rent at Landlord’s Notice Address. In the event that
the Lease Term commences or ends on a day other than the first day of a calendar month, a prorated amount of Base Monthly Rent shall be due on the Lease Commencement Date and/or on the first day of the final month of the Lease Term, as applicable,
and will be calculated using a thirty (30) day month. 
 3.02 [Intentionally omitted.] 

A. [Intentionally omitted.] 
 B. [Intentionally omitted.] 
 C. [Intentionally
omitted.) 
 3.03 Any installment of Base Monthly Rent, Additional Rent or any other charge payable which is not
paid within ten (10) days after it becomes due will be considered past due and Tenant will pay to Landlord as Additional Rent a late charge equal to five percent (5%) of the delinquent amount. All past due amounts of Base Monthly Rent and
Additional Rent, including, without limitation, late charges and all other amounts payable by Tenant under the terms of this Lease, shall bear interest at the lesser of (i) twelve percent (12%) per annum, or (ii) the maximum per annum
rate permitted under applicable law (the “Default Rate”) from the due date thereof until paid. All such interest shall constitute Additional Rent due under this Lease. 

3.04 [Intentionally omitted.] 
 4. COMMON AREAS 
 4.01 [Intentionally omitted.]

 4.02 [Intentionally omitted.] 
 3. 

 

 
  
 4.03
[Intentionally omitted.] 
 5. ADDITIONAL RENT 

5.01 All charges and all other amounts payable by Tenant under this Lease other than Base Monthly Rent whether directly or
to Landlord are defined herein as “Additional Rent.” The term “Rent” whenever used in this Lease includes both Base Monthly Rent and Additional Rent. 
 5.02 A. [Intentionally omitted.] 
 B.
[Intentionally omitted.] 
 C. [Intentionally omitted.] 

D. [Intentionally omitted.] 
 5.03 A. The term, “Real Property Taxes,” means (i) any fee, license fee, license tax, levy, charge, assessment, penalty or tax imposed by any taxing authority against the
Premises (including any special taxes assessed under any special taxing district, such as, for example, any community facility district); (ii) any tax or charge for fire protection, streets, sidewalks, road maintenance, refuse or other services
provided to the Premises by any governmental agency; (iii) any increase in taxes based upon the sale, transfer or other disposition of the Premises or any part thereof which constitutes a change in ownership which would require or allow the
reassessment of the Premises or any part thereof (a “Change of Ownership Reassessment”), but only with respect to one (1) Change of Ownership Reassessment during the Initial Lease Term and one (1) Change of Ownership Reassessment
during each Extension Term; (iv) any charge or fee replacing, substituting for, or in addition to any tax previously included within the definition of Real. Property Tax; and (v) Landlord’s reasonable cost of any tax protest relating
to any of the above; provided, however, that any such protest shall be performed after prior notice to and in cooperation with tenant. Real Property Taxes do not, however, include Landlord’s federal, state, or local income, franchise,
inheritance or estate taxes. 
 B. Tenant shall pay directly to the applicable taxing or other authority as
Additional Rent all of the Real Property Taxes accruing during the Lease Term as provided in this Article 5. on a timely basis and prior to delinquency. Landlord agrees to timely forward to Tenant all invoices for Real Property Taxes received by
Landlord and cooperate with Tenant to have said invoices delivered directly to Tenant. Tenant shall provide to Landlord evidence of timely payment of all Real Property Taxes within five (5) days of payment of the same. At the expiration or
earlier termination of the Lease Term, all Real Property Taxes shall be prorated between Landlord and Tenant, and all amounts due to either party as a result of such pro-ration shall be paid within ten (10) days of the expiration or earlier
termination of the Lease Term. 
 C. Tenant will pay prior to delinquency all taxes and assessments charged
against trade fixtures, furnishings, equipment or any other personal property belonging to Tenant. Tenant will have personal property taxes billed separately from the Premises. 
 4. 

 

 
  
 5.04
Tenant agrees to pay as Additional Rent all parking charges, utility surcharges, occupancy taxes, or any other costs resulting from the statutes or regulations, or interpretations thereof, enacted by any governmental authority in connection with the
use or occupancy of the Premises or the parking facilities serving the Premises, or any part thereof. 
 5.05
[Intentionally omitted.] 
 5.06 Tenant has the right to seek a reduction in the amount of and to contest the
Real Project Taxes, personal property taxes and other charges, surcharges, taxes and costs for which Tenant is responsible under Sections 5.03 and 5.04, subject to the following conditions: 

A. The contest must be conducted in accordance with all applicable laws, rules and regulations relating to the contest in
question. 
 B. On final determination of the contest, Tenant agrees to pay or discharge any decision or judgment
rendered, together with all costs, charges, interest and penalties. 
 C. Tenant must protect the Premises from
foreclosure of the lien of any such charges, surcharges, taxes and costs during the pendency of the contest by surety bond or other appropriate and effective means. 
 D. Landlord will not be required to join in any contest unless the provisions of the applicable laws, rules or regulations require that the contest be brought in the name of Landlord or
any owner of the Premises. In that event, Landlord agrees to join in the contest or to permit the contest to be brought in Landlord’s name; provided that Tenant agrees to pay all costs and expenses incurred by Landlord in joining in the
contest. 
 6. SECURITY DEPOSIT 
 6.01 If Tenant defaults with respect to any provision of this Lease, Landlord may retain, use or apply all or any part of the Security Deposit to compensate Landlord for any loss or damage
suffered by Tenant’s default including but not limited to, the payment of Base Monthly Rent and Additional Rent, and for payment of amounts Landlord is obligated to spend by reason of Tenant’s default. If any portion is so retained, used
or applied, Tenant, upon demand, will deposit with Landlord an amount sufficient to restore the deposit to its original amount. Landlord will not be required to keep the Security Deposit separate from its general funds, and Tenant will not be
entitled to interest on it. If Tenant fully and faithfully performs every provision of this Lease, the Security Deposit or balance thereof after deducting damages, costs of cleaning, repairing, and preparing the Premises for occupancy, and all other
amounts then due Landlord under this Lease will be returned to Tenant within thirty (30) days after the expiration of the Lease Term. In no event will Tenant have the right to apply any part of the Security Deposit to any Rent payable under
this Lease. 
 6.02 Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code and
all other provisions of law, now or hereafter in effect, which (i) establish the time frame by which Landlord must refund collateral or security for performance of a tenant’s obligations under a lease, and/or (ii) provide that
Landlord may claim from collateral or security for performance of a tenant’s obligations under a lease only those sums reasonably necessary to remedy defaults in the 
 5. 

 

 
  
 payment of
rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified hereinabove and/or those sums reasonably necessary to compensate Landlord for any loss or damage caused by
Tenant’s breach of this Lease or the acts or omission of Tenant or any employee, agent, contractor or invitee of Tenant. 
 7. USE OF PREMISES; QUIET CONDUCT 
 7.01 The
Premises may be used and occupied only for Tenant’s Permitted Use as set forth in Section 1.05 and for no other use or purpose, without obtaining Landlord’s prior written consent, which Landlord agrees not to unreasonably withhold.
Tenant will not perform any act or carry on any practices that may injure the Premises. The keeping of a dog or other animal other than seeing- eye or guard dogs on or about the Premises is expressly prohibited. 

7.02 As used in this Article 7., the following terms shall have the following meanings: 

A. The term, “Environmental Laws,” means all federal, state, and local statutes, laws, rules, regulations, and
ordinances relating to the protection of human health or environmental matters, including, without limitation, those relating to fines, orders, injunctions, penalties, damages, contribution, cost recovery compensation, losses or injuries resulting
from the release or threatened release of Hazardous Substances (as hereinafter defined) and the generation, use, storage, transportation, or disposal of Hazardous Substances, in any manner applicable to Tenant or the Premises, including, without
limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.); the Hazardous Material Transportation Act (49 U.S.C. § 1801 et seq.); the Resource Conservation and Recovery Act of
1976 (42 U.S.C. § 6901 et seq.); the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.); the Clean Air Act (42 U.S.C. § 7401 et seq.); the United States Environmental Protection Agency’s Rules Concerning Underground
Storage Tanks; the Toxic Substances Control Act of 1976 (15 U.S.C. § 2601 et seq.); the Safe Drinking Water Act (42 U.S.C. § 300 et seq.): the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.); the Federal Hazardous
Substances Act (15 U.S.C. § 1261 et seq.); the Emergency Planning and Community Right-to-Know Act (42 U.S.C. § 11001 et seq.); the California Hazardous Waste Treatment Reform Act of 1995 (Stats 1995, ch 638 [SB 1222-Calderon]); the
California Unified Hazardous Waste and Hazardous Materials Management Regulatory Program, Stats 1993, ch 418 (SB 1082-Calderon); the Carpenter-Presley-Tanner Hazardous Substance Account Act, the California Expedited Remedial Action Reform Act of
1994; Health and Safety Code, Sections 25396 et seq.; the Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. Health and Safety Code § 25249.5 et seq.); the Hazardous Waste Control Act (Cal. Health and Safety Code § 25100 et seq.):
the Hazardous Materials Release Response Plan and Inventory Act (Cal. Health and Safety Code § 25500 et seq.); and the Porter-Cologne Water Quality Control Act, Water Code Sections 13000, et seq.; and all rules, regulations, orders and decrees
now or hereafter promulgated thereunder; and the Uniform Fire Code; each as heretofore and hereafter amended, modified, replaced or supplemented, and any future or present local, state or federal laws, statutes, rules and regulations promulgated
thereunder or pursuant thereto, and any other present or future law, ordinance, rule, regulation, permit or permit condition, order or directive addressing environmental, health or safety issues of or by the federal government, any state or any
political subdivision thereof, or any agency, court or body of the federal government, or any state or any political subdivision thereof, exercising executive, legislative, judicial, regulatory or administrative functions which are applicable to the
Premises or Tenant. 
 6. 

 

 
  
 B. The
term, “Hazardous Substances,” means (i) any chemical, material, substance, mixture, waste, or item defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous
materials,” “extremely hazardous waste,” “regulated substances,” “restricted hazardous waste,” “toxic pollutants,” “pollutants,” “toxic substances” or words of similar import under any
applicable local, state or federal law or under the regulations adopted or publications promulgated pursuant thereto, including, without limitation, Environmental Laws, or which is or becomes listed, regulated, or addressed by any federal, state,
regional or local governmental authority because it is any way hazardous, toxic, polluting carcinogenic, otherwise adversely affects any part of the environment or creates risks of any such hazards or effects; (ii) any oil, petroleum or
petroleum derived substance, any drilling fluids, produced waters or other wastes associated with the exploration, development or production of crude oil, any flammable substances or explosives, any radioactive materials, any hazardous wastes or
substances, any toxic wastes or substances or any other materials or pollutants which (I) pose a hazard to the Premises or to persons on or about the Premises, or (II) cause the Premises to be in violation of any Environmental Laws;
(iii) asbestos in any form which is or could become friable, radon gas, urea formaldehyde foam insulation, polychlorinated biphenyls; (iv) infectious or medical waste; and (v) any other chemical, material or substance, exposure to
which is prohibited, limited or regulated under any Environmental Law. 
 7.03 Tenant represents, warrants,
covenants, and agrees that (i) Tenant does not intend to and Tenant will not, nor will Tenant (I) negligently or intentionally allow any other person or entity (including partnerships, corporations, joint ventures, limited liability
companies, and other entities), during the Lease Term to manufacture, process, store, distribute, use, discharge or dispose of any Hazardous Substances in, under or on the Premises (but the foregoing does not apply to the migration or spreading of
any Hazardous Substances from any adjoining property) or (II) allow any of Tenant’s sublessees, employees, agents, contractors, representatives, or licensees during the Lease Term to manufacture, process, store, distribute, use, discharge or
dispose of any Hazardous Substances on, under, or in the Premises or any property adjacent thereto, in each case except in full compliance with all applicable Environmental Laws; (ii) Tenant shall notify Landlord promptly in the event of any
spill or release of Hazardous Substances into, on, or onto the Premises regardless of the source of spill or release, whenever Tenant knows or suspects that such a release occurred; (iii) Tenant will not be involved in operations at or near the
Premises which could lead to the imposition on the Tenant or the Landlord of liability or the creation of a lien on the Premises under the Environmental Laws; and (iv) Tenant shall, upon ten (10) days prior notice by Landlord or such
shorter period as may be required in the case of emergency, permit Landlord or Landlord’s agent access to the Premises to conduct an environmental site assessment with respect to the Premises. 

7.04 Tenant for and on behalf of itself, its successors and assigns, undertakes to and hereby does protect, indemnify,
save and defend Landlord, its agents, employees, directors, officers, shareholders, partners, members, affiliates, consultants, independent contractors, representatives, successors and assigns (collectively, “Landlord Indemnitees”)
harmless from and against any and all liability, loss, loss of value, damage, cost, claims, penalties, fines, assessments, suits, judgments, and expense, including, without limitation, attorneys’ fees and costs and all other costs and expenses
of any kind or nature, that Landlord or any other Landlord Indemnitee, whether as Landlord or otherwise, may suffer as a result of, with respect to, or in any way related to: 
 7. 

 

 
  
 A. The
violation by Tenant or Tenant’s agents, employees, invitees, licensees, representatives, or contractors of any Environmental Law, including the assertion of any lien thereunder and any suit brought or judgment rendered regardless of whether the
action was commenced by a citizen (as authorized under the Environmental Laws) or by a government agency; 
 B.
To the extent caused, directly or indirectly by Tenant or Tenant’s agents, employees, invitees, licensees, representatives or contractors, any spill or release of or the presence of any Hazardous Substances on, in, or under the Premises whether
or not the same originates or emanates from the Premises or any contiguous real estate, including any loss of value of the Premises as a result of a spill or release of or the presence of any Hazardous Substances; 

C. To the extent permitted (through negligence or intentional misconduct or omission) or caused, directly or indirectly by
Tenant or Tenant’s agents, employees, invitees, licensees, representatives or contractors, any other matter affecting the Premises within the jurisdiction of the United States Environmental Protection Agency, or any other federal, state, or
local governmental or administrative agency or authority, including, without limitation, costs of investigations, remedial action, or other response costs whether such costs are incurred by the United States Government, the State of California, any
other governmental or administrative agency or authority, or any Indemnitee; 
 D. To the extent permitted
(through negligence or intentional misconduct or omission) or caused, directly or indirectly by Tenant or Tenant’s agents, employees, invitees, licensees, representatives, or contractors, liability for clean-up costs, fines, damages or
penalties incurred pursuant to the provisions of any applicable Environmental Laws; and 
 E. To the extent
permitted (through negligence or intentional misconduct or omission) or caused, directly or indirectly by Tenant or Tenant’s agents, employees, invitees, licensees, representatives, or contractors, liability for personal injury or property
damage arising under any statutory or common-law tort theory, including, without limitation, damages assessed for the maintenance of a public or private nuisance, or for the carrying of an abnormally dangerous activity, and response costs.

 7.05 In the event of any spill or release of or the presence of any Hazardous Substances affecting the
Premises for which Tenant is responsible under this Lease if Tenant fails to remedy or cure such matter after notice and opportunity to cure as provided in Section 19.01B, or such shorter period as is required in the case of emergency or by
law, rule, code, or regulation or governmental or administrative authority, the foregoing shall constitute a material default by Tenant under this Lease entitling Landlord to all available rights and remedies, including, without limitation, at its
election, but without obligation so to do, to give such notices and/or cause such remedial work to be performed at the Premises and/or take any and all other actions as Landlord shall deem necessary or advisable in order to remedy said spill or
release of Hazardous Substances or cure said failure of compliance and any amounts paid as a result thereof, together with interest thereon at the Default Rate, shall be paid by Tenant to Landlord as Additional Rent upon demand. 

7.06 [Intentionally omitted.] 
 8. 

 

 
  
 7.07
Landlord for and on behalf of itself, its successors and assigns, undertakes to and hereby does protect, indemnify, save and defend Tenant, its agents, employees, directors, officers, shareholders, partners, members, affiliates, consultants,
independent contractors, and representatives (collectively, “Tenant Indemnitees”) harmless from and against any and all liability, loss, damage, cost, claims, penalties, fines, assessments, suits, judgments, and expense, including, without
limitation, attorneys’ fees and costs and all other costs and expenses of any kind or nature, that Tenant or any other Tenant Indemnitee, whether as Tenant or otherwise, may suffer as a result of, with respect to, or in any way related to:

 A. The violation by Landlord or Landlord’s agents, employees, invitees, licensees, representatives, or
contractors of any Environmental Law, including the assertion of any lien thereunder and any suit brought or judgment rendered regardless of whether the action was commenced by a citizen (as authorized under the Environmental Laws) or by a
government agency; 
 B. To the extent caused, directly or indirectly by Landlord or Landlord’s agents,
employees, invitees, licensees, representatives or contractors, any spill or release of or the presence of any Hazardous Substances on, in, or under the Premises whether or not the same originates or emanates from the Premises or any contiguous real
estate; 
 C. To the extent caused, directly or indirectly by Landlord or Landlord’s agents, employees,
invitees, licensees, representatives or contractors, any other matter affecting the Premises within the jurisdiction of the United States Environmental Protection Agency, or any other federal, state, or local governmental or administrative agency or
authority, including, without limitation, costs of investigations, remedial action, or other response costs whether such costs are incurred by the United States Government, the State of California, any other governmental or administrative agency or
authority, or any Tenant Indemnitee; 
 D. To the extent caused, directly or indirectly by Landlord or
Landlord’s agents, employees, invitees, licensees, representatives, or contractors, liability for clean-up costs, fines, damages or penalties incurred pursuant to the provisions of any applicable Environmental Laws; and 

E. To the extent caused, directly or indirectly by Landlord or Landlord’s agents, employees, invitees, licensees,
representatives, or contractors, liability for personal injury or property damage arising under any statutory or common-law tort theory, including, without limitation, damages assessed for the maintenance of a public or private nuisance, or for the
carrying of an abnormally dangerous activity, and response costs. 
 8. PARKING 

8.01 Tenant and Tenant’s customers, suppliers, employees, and invitees have the exclusive right to park in the
parking facilities located on the Premises; provided, however, that Landlord shall not be responsible for enforcing any of Tenant’s exclusive rights provided hereunder. 
 9. 

 

 
  
 9.
UTILITIES 
 9.01 During the Lease Term, Tenant will be responsible for and shall pay for all water, gas, heat,
light, power, sewer, electricity, janitorial, trash removal, snow removal, security or other services metered, chargeable to or provided to the Premises, including any taxes thereon. 

9.02 Landlord will not be liable or deemed in default to Tenant nor will there be any abatement of Rent for any
interruption or reduction of utilities or services to the Premises except to the extent solely caused by Landlord’s negligence or intentional misconduct, Tenant acknowledging and agreeing that Landlord is not responsible for the provision of
utilities or services to the Premises. Tenant agrees to comply with energy conservation programs implemented by Landlord by reason of enacted laws or ordinances. 
 9.03 Tenant will contract and pay for all telephone and such other services for the Premises subject to the provisions of Section 10.03. 

10. ALTERATIONS AND MECHANIC’S LIENS 
 10.01 Tenant will not make any alterations to the Premises without Landlord’s prior written consent, which consent shall not be unreasonably withheld subject to the following
provisions; provided, however, that Tenant may make nonstructural alterations to the interior of the Premises not to exceed a cost of One Hundred Thousand Dollars ($100,000) in an one (1) work or time or Three Hundred Thousand Dollars ($300,000)
over the Lease Term without Landlord’s prior written consent, provided that Tenant otherwise complies with the terms and provisions of this Article 10, and the other provisions of this Lease. Landlord’s consent shall be contingent upon
Tenant providing Landlord with such items and information as may be required by Landlord in Landlord’s reasonable discretion, including, without limitation, the following items or information, all subject to Landlord’s approval: (i)
Tenant’s contractor, (ii) certificates of insurance by Tenant’s contractor for commercial general liability insurance with limits not less than Two Million Dollars ($2,000,000) General Aggregate, One Million Dollars ($1,000,000)
Products/Complete Operations Aggregate, One Million Dollars ($1,000,000) Personal & Advertising Injury, One Million Dollars ($1,000,000) Each Occurrence, Fifty Thousand Dollars ($50,000) Fire Damage, Five Thousand Dollars ($5,000) Medical
Expense, One Million Dollars ($1,000,000) Auto Liability (Combined Single Limit, including Hired/Non-Owned Auto Liability), Workers Compensation, including Employer’s Liability, as required by state statute endorsed to show Landlord as an
additional insured and for worker’s compensation as required, and (iii) detailed plans and specifications for such work. The types and amounts of insurance coverage specified above shall be subject to revision by Landlord from time to time in
Landlord’s reasonable discretion by delivery of written notice by Landlord to Tenant. Tenant agrees that it will have its contractor execute a waiver of mechanic’s lien and, except where Tenant is contesting the lien as provided in Section
10.04, that Tenant will remove any mechanic’s lien placed against the Premises within ten (10) days of receipt of notice of lien. In addition, before alterations may begin, valid building permits and other required permits, approvals, and
licenses required must be furnished to Landlord, and, once the alterations begin, Tenant will diligently and continuously pursue their completion. At Landlord’s option, any alterations may become part of the realty and belong to Landlord.
Tenant shall at Tenant’s expense remove all alterations and repair all damage to the Premises at the expiration or earlier termination of this Lease unless otherwise agreed in writing by Landlord; provided that Landlord must exercise

 10. 

 

 
  
 this
option by written notice given to Tenant not later than one hundred twenty (120) days prior to the expiration of the Lease Term, otherwise Landlord will be deemed to have elected not to require that Tenant remove any such alterations.

 10.02 Notwithstanding anything set forth in Section 10.01, Tenant may, with the prior written consent of
Landlord, install trade fixtures, equipment, and machinery in conformance with the ordinances of the applicable city and county, provided that they are removed upon termination of its Lease and any damage to the Premises caused by their removal
repaired by Tenant at Tenant’s sole cost and expense. Landlord acknowledges and agrees that all trade fixtures, equipment and machinery at any time installed in or about the Premises by Tenant (whether the same is owned, leased, or rented by
Tenant) will at all times during the Lease Term be and remain removable personal property notwithstanding that the same may be affixed to the Premises by means of bolts, screws, strapping, or other similar means, and Tenant (or any other owner or
lessor of the same) will be entitled at any time and from time to time to add to, modify, alter, remove and/or replace any such trade fixtures, equipment and machinery, subject to the repair at Tenant’s cost and expense of any damage occasioned
thereby. Tenant, at Landlord’s option, shall at Tenant’s expense remove all such trade fixtures, equipment and machinery and repair all damage to the Premises occasioned thereby at the expiration or earlier termination of this Lease.

 10.03 Any private telephone systems and/or other related telecommunications equipment and lines must be
installed within the Premises and, upon termination of this Lease removed and the Premises restored to the same condition as before such installation at Tenant’s sole cost and expense. 

10.04 Tenant will pay all costs for alterations and will keep the Premises free from any liens arising out of work
performed for, materials furnished to or obligation incurred by Tenant; provided that Tenant has the right to contest the amount or validity of any such liens, subject to the following conditions: 

A. The contest must be conducted in accordance with all applicable laws, rules and regulations relating to the contest in
question. 
 B. On final determination of the contest, Tenant agrees to pay or discharge any decision or judgment
rendered, together with all costs, charges, interest and penalties. 
 C. Tenant must fully protect the Premises
from foreclosure of the lien during the pendency of the contest by surety bond or other appropriate and effective means. 
 10.05 [Intentionally omitted.] 
 11. INSURANCE

 11.01 [Intentionally omitted.] 
 11.02 Tenant, at all times during the Lease Term and at Tenant’s sole cost and expense, will maintain and keep in force a policy of standard fire and extended coverage insurance with
“all risk” coverage on all Tenant’s improvements and alterations in or about the Premises and on all personal property and equipment to the extent of at least ninety percent (90%) of their full replacement value. 

11. 

 

 
  
 The
proceeds from this policy will be used by Tenant for the replacement of personal property and equipment and the restoration of Tenant’s improvements and/or alterations. 
 11.03 Tenant, at all times during the Lease Term and at Tenant’s sole cost and expense, will maintain and keep in force a policy of commercial general liability coverage with limits
of not less than Two Million Dollars ($2,000,000) per occurrence and Four Million Dollars ($4,000,000) aggregate, combined single limit for bodily injury and property damage insuring against all liability of Tenant and its authorized representatives
arising out of or in connection with Tenant’s use or occupancy of the Premises. Not more often than once in every five (5) years during the Lease Term, Landlord and Tenant agree to cooperate with one another in reviewing and adjusting, if
reasonably appropriate, the foregoing coverage amounts, provided, that in no event will such coverage amounts be reduced below the foregoing amounts. Such insurance shall be an occurrence basis with an additional insured-managers or lessors of
premises indorsement and contain the amendment of the pollution exclusion indorsement for damage caused by heat, smoke or fumes from hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations,
but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Tenant’s indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of
Tenant nor relieve Tenant of any obligations hereunder. 
 11.04 Tenant shall, at all times during the Lease Term
and at Tenant’s sole cost and expense, maintain and keep in force a policy or policies of “all risk” property insurance in the name of Landlord, with loss payable to Landlord and any lender(s) insuring loss or damage to the Premises.
The amount of such insurance shall be equal to the full replacement cost of the Premises (exclusive of excavations, foundations, and subsurface footings) , which shall initially be Fourteen Million, Six Hundred Thousand Dollars ($14,600,000) or the
amount required by any lenders of Landlord. Such policy or policies shall insure against fire and such other risk as may be included in extended forms of fire and extended coverage insurance available from time to time and otherwise insure against
all risks of direct physical loss or damage (including, without limitation, flood and earthquake losses), including coverage for debris removal and the enforcement of any applicable requirements requiring the upgrading, demolition, reconstruction or
replacement of any portion of the Premises as a result of the covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any co-insurance clause and an inflation guard protection causing an increase in the
annual property insurance coverage amount by four percent (4%) and such other provisions as may be reasonably required by Landlord’s lender(s). If such insurance has a deductible clause, the deductible amount shall not exceed Two Hundred
Fifty Thousand Dollars ($250,000) per occurrence and Tenant shall be liable for such deductible amount in the event of any casualty. 
 11.05 Tenant shall, at all times during the Lease Term and at Tenant’s sole cost and expense, maintain and keep in force and effect a policy or policies of (i) business
interruption insurance covering at least one (1) year’s Rent payable under this Lease, (ii) products and completed operations coverage in an amount reasonably approved by Landlord, (iii) contractual liability coverage necessary
to cover Tenant’s obligations under the Lease, and (iv) auto liability, workers’ compensation, and boiler and machinery insurance coverage in amounts reasonably approved by Landlord. 

11.06 In addition to the other requirements specified in this Article 11., all insurance required to be provided by Tenant
will (i) name Landlord and/or Landlord’s designated partners, 
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 members,
and affiliates as an additional insured, (ii) include an express waiver of any right of subrogation by the insurer in favor of Landlord, (iii) release Landlord from any claims for damage to any person, to the Premises, and to Tenant’s
personal property, equipment, improvements and alterations in or on the Premises, caused by or resulting from risks which are required to be insured against by Tenant under this Lease, (iv) be issued by an insurance company authorized to do
business in the state in which the Premises are located and which has and maintains a rating of A/VIII in the Best’s Insurance Reports or the equivalent, (v) be primary and noncontributing with any insurance carried by Landlord, and
(vi) contain an endorsement requiring at least thirty (30) days prior written notice of cancellation to Landlord before cancellation or change in coverage, scope or limit of any policy. Tenant has the right to maintain required insurance
under so-called “blanket” policies insuring the Premises as well as other property owned or occupied by Tenant so long as Landlord is named as an insured and provided that the coverage and other requirements of this Section 11. are
met. Tenant will deliver a Certificate of Insurance or a copy of the policy evidencing the foregoing requirements through endorsements to Landlord upon execution of this Lease and will provide evidence of renewed insurance coverage at each
anniversary, and prior to the expiration of any current policies. Tenant’s failure to provide evidence of this coverage to Landlord will constitute a default under this Lease and Landlord may, but shall not be required to, procure and maintain
the same and charge the cost thereto to Tenant, which amount shall be payable as Additional Rent by Tenant to Landlord upon demand. 
 11.07 Tenant and Landlord each waive any and all rights against the other, or against the officers, employees, agents, partners, owners, and representatives of the other, for the loss of
or damage to such waiving party or its property or property of others under its control, where such loss or damage is insured against under an insurance policy required to be in force under this Lease at the time of such loss or damage. Tenant and
Landlord shall upon obtaining the policies of insurance required hereunder, give notice to the insurance carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 

12. INDEMNIFICATION AND WAIVER OF CLAIMS 
 12.01 Tenant waives all claims against Landlord for (i) injury to any persons, including death resulting therefrom, regardless of time of occurrence, except to the extent caused by
the negligence or willful misconduct of Landlord, its agents, employees, representatives or contractors, and (ii) damage to any property in or about the Premises regardless of cause or time of occurrence, except to the extent caused by the
negligence or willful misconduct of Landlord, its agents, employees, representatives or contractors. Tenant undertakes and hereby does defend, indemnify and hold Landlord harmless from and against any and all claims, actions, proceedings, demands,
damages, liabilities, costs, and expenses, including, without limitation, attorney’s fees, arising out of, connected with, or resulting from any use of the Premises by Tenant, its employees, agents, visitors, invitees, contractors, or
licensees, including, without limitation, any failure of Tenant to comply fully with all of the terms and conditions of this Lease, except to the extent caused by the negligence or willful misconduct of Landlord, its agents, employees,
representatives or contractors. 
 13. MAINTENANCE AND REPAIRS OF PREMISES 

13.01 Tenant shall, at its sole cost and expense, (i) keep, maintain, repair and replace the Premises and every part
and component thereof, including, without limitation, the roof, parking area, 
 13. 

 

 
  
 structural
and interior load-bearing and non-load bearing walls, utilities and lines within the exterior boundary of the Premises, all windows, skylights, doors, plate glass, store fronts, floors, and the interior of the Premises, in good and sanitary order,
condition and repair, (ii) keep, maintain, repair and replace all utilities, fixtures, plumbing and mechanical equipment included in the Premises in good order and repair, (iii) furnish all expendables (light bulbs, paper goods, soaps,
etc.) used in the Premises, (iv) furnish all security, trash removal, janitorial, and snow removal services for the Premises, and (v) maintain, repair, resurface and restripe all parking areas, loading and unloading areas, roadways,
driveways, and other asphalt and concrete areas within the Premises as reasonably necessary. The standard for comparison and need of repair and replacement will be the condition of the Premises at the time of commencement of this Lease, allowing for
reasonable and ordinary wear and tear, and all repairs and replacements will be made by a licensed and bonded contractor approved by Landlord. Without limiting the foregoing, it is specifically intended that Tenant shall be solely responsible, at
its sole cost and expense, for all costs and expenses incurred in connection with the operation, maintenance, repair and replacement of the Premises and every part and component thereof during the Lease Term. Except as expressly provided in
Section 13.02, Landlord shall incur no expense or have any obligation of any kind whatsoever in connection with maintenance of the Premises and Tenant expressly waives the benefits of any statute or law now or hereafter in effect which would
otherwise afford Tenant the right to make repairs at Landlord’s expense or to terminate this Lease because of Landlord’s failure to keep the Premises in good order, condition, and repair. 

13.02 Tenant shall, at its sole cost and expense, make all capital improvements and other additions and modifications to
the Premises which may be required by any governmental authority, law, rule, code, or regulation, including, without limitation, the Americans With Disabilities Act of 1990 and all regulations thereunder (the “ADA”), all as in effect from
time to time during the Lease Term as a result of (i) Tenant’s specific use of the Premises, (ii) any use of the Premises which shall be determined to constitute a “public accommodation” under the ADA, or (iii) any
alterations, improvements or changes made to the Premises by Tenant or at Tenant’s request, whether or not Landlord’s consent is required pursuant to Section 10.01 hereof. Except as provided in this Section 13.02, Tenant shall
have no liability or obligation respecting the making of any such required capital improvements, additions and modifications to the Premises, all of which shall be made by Landlord, at Landlord’s sole cost and expense. 

13.03 [Intentionally omitted] 
 13.04 In the event Tenant does not make any repair, modification, or replacement or otherwise satisfy its obligations under this Article 13. during the Lease Term, the foregoing shall
constitute a default by Tenant under this Lease. In addition to each of its other rights and remedies under this Lease, at law, or in equity, Landlord may, at its option, perform any obligations on behalf of Tenant hereunder as to which Tenant is in
default and Tenant shall reimburse Landlord for all such costs upon demand. All such costs shall constitute Additional Rent and be subject to the provisions of Section 3.03 above. 

14. AUCTIONS, SIGNS, AND LANDSCAPING 
 14.01 Tenant will not conduct or permit to be conducted any sale by auction on the Premises. 
 14. 

 

 
  
 15. ENTRY
BY LANDLORD 
 15.01 Tenant will permit Landlord and Landlord’s agents to enter the Premises at all
reasonable times and on reasonable notice (except in the case of emergency, in which event no notice shall be necessary) for the purpose of inspecting the same, or for the purpose of exercising Landlord’s rights and remedies in the event of a
default by Tenant as provided in Section 19. below, including the erection and maintenance of such scaffolding, canopies, fences and props as may be required, or for the purpose of posting notices of nonresponsibility for alterations, additions
or repairs, or for the purpose of showing the Premises to prospective tenants during the last six (6) months of the Lease Term, or placing upon the Premises any usual or ordinary “for sale” or “for lease” of similar signs,
without any rebate of Rents. 
 16. ABANDONMENT 

16.01 Tenant will not abandon the Premises. If Tenant abandons the Premises, or is dispossessed by process of law, or
otherwise, any personal property belonging to Tenant left in or about the Premises will, at the option of Landlord be deemed abandoned and may be disposed of by Landlord in the manner provided for by the laws of the state in which the Premises are
located. Notwithstanding the foregoing to the contrary, Tenant will not be deemed to have abandoned the Premises so long as Tenant is performing its obligations under this Lease, even though Tenant may not be conducting business in the Premises or
may have vacated the Premises. 
 17. DESTRUCTION 

17.01 In the event the Building or other improvements on the Premises are damaged or destroyed, partially or totally, from
any cause whatsoever, whether or not such damage or destruction is covered by any insurance required to be maintained under Article 11., Tenant shall repair, restore, and rebuild the Premises to their condition existing immediately prior to such
damage or destruction and this Lease shall continue in full force and effect. Such repair, restoration, and rebuilding (all of which are herein called “repair”) shall be commenced within a reasonable time after such damage and destruction
(provided, however, that Tenant shall not be obligated to commence such repairs until the insurance proceeds, if any, from the insurance policy maintained pursuant to Section 11.04 have been made available to Tenant) and shall be diligently
prosecuted to completion. There shall be no abatement of Rent or of any other obligation of Tenant hereunder by reason of such damage or destruction. The proceeds of any insurance maintained under Section 

11.04 shall be made available to Tenant for payment of the cost and expense of the repair, provided, however, that such
proceeds may be made available to Tenant subject to reasonable conditions including, but not limited to, architect’s certificate of costs and retention of a percentage of such proceeds pending final notice of completion and any reasonable
conditions to disbursement that any lender of Landlord may impose under its loan documents, but subject to the covenants and agreements of Tenant and such lender under any subordination, nondisturbance and attornment agreement the parties may have
entered into. In the event that the insurance proceeds are insufficient to cover the cost of repair, then any amount in excess thereof required to complete the repair shall be paid by Tenant. 

17.02 If the Premises are totally destroyed or partially damaged (such that repair costs exceed One Million, Two Hundred
Fifty Thousand Dollars ($1,250,000) during the last twelve (12)
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 months of
the Lease Term either Landlord or Tenant may, at its option, cancel and terminate this Lease as of the date of occurrence of such damage by giving written notice to the other of its election to do so within forty-five (45) days after the date of
occurrence of such damage; provided, that if Landlord gives such notice, Tenant may prevent the cancellation and termination of this Lease by giving Landlord written notice, within thirty (30) days of receipt of Landlord’s cancellation and
termination notice, of Tenant’s exercise of any option to extend the term of this Lease which Tenant may then be entitled to exercise. If Tenant prevents the cancellation and termination of the Lease as provided in the immediately preceding
sentence, then the damage or destruction is to be repaired and restored and insurance proceeds disbursed as provided in Section 17.01. If the early termination election is exercised under this Section 17.02, the proceeds of any insurance maintained
under Section 11.04 shall be made available to Landlord and in the event that insurance proceeds are insufficient to cover the cost of repair, then any amount in excess thereof required to complete the repairs shall be paid by Tenant. 

17.03 Upon termination of this Lease pursuant to this Article 17. a pro rata adjustment of Rent based upon a thirty
(30) day month shall be made. Landlord shall, in addition, return to Tenant so much of Tenant’s Security Deposit as has not thereto fore been applied by Landlord. 
 17.04 [Intentionally omitted.] 
 17.05 Tenant shall
in no case be entitled to compensation for damages on account of any annoyance or inconvenience in making repairs under any provision of this Lease. Except to the extent provided for in this Article 17., neither the Rent payable by Tenant nor any of
Tenant’s other obligations under any provision of this Lease shall be affected by any damage to or destruction of the Premises or any portion thereof by any cause whatsoever. Without limiting the generality of the foregoing, with respect to any
damage or destruction to the Premises, Tenant waives all rights to terminate this Lease pursuant to rights otherwise presently or hereafter afforded by law, including, without limitation, any rights granted under Section 1932, Subdivision 2,
and Section 1933 of the California Civil Code. 
 18. ASSIGNMENT, SUBLETTING AND TRANSFERS OF OWNERSHIP

 18.01 Tenant will not assign, sell, mortgage, encumber, convey or otherwise transfer all or any part of
Tenant’s leasehold estate or interest in this Lease, permit the Premises to be occupied by anyone other than Tenant and Tenant’s employees, or sublease the Premises or any portion thereof (collectively, “Transfer”), without the
prior written consent of Landlord, which shall not be unreasonably withheld, subject to the provisions of this Article 18. Tenant hereby covenants and agrees to supply Landlord with any and all documents deemed necessary by Landlord to evaluate any
proposed Transfer at least sixty (60) days in advance of Tenant’s proposed Transfer date. Any voluntary or involuntary Transfer without Landlord’s prior written consent shall be voidable and, at Landlord’s election, shall constitute a
default under this Lease. 
 18.02 Landlord’s consent to any Transfer shall not be unreasonably withheld and
the reason for any denial shall be made in good faith and identified for the following or other reasons: (i) Tenant is in default under this Lease or any other lease with Landlord; (ii) the transferee will use the Premises for a purpose
other than the Permitted Use; or (iii) if Tenant has requested and Landlord 
 
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 has agreed
to release Tenant from further liability under this Lease, the proposed transferee is of a financial condition or capability which is not commensurate with Tenant’s. 
 18.03 [Intentionally omitted.] 
 18.04 Any
Transfer, any consent to any Transfer which may be given by Landlord, or the acceptance of any rent, charges or other consideration by Landlord from Tenant or any third party, will not constitute a waiver by Landlord of the provisions of this Lease
or a release of Tenant or any guarantor of Tenant from the full performance by it of the covenants stated herein or in any guaranty; and any consent given by Landlord to any Transfer will not relieve Tenant (or any transferee of Tenant) from the
above requirements for obtaining the written consent of Landlord to any subsequent Transfer. 
 18.05 If a
default under this Lease should occur while the Premises or any part of the Premises are Transferred, Landlord, in addition to any other remedies provided for within this Lease or by law, may at its option collect directly from the transferee all
rent or other consideration becoming due to Tenant under the Transfer and apply these monies against any sums due to Landlord by Tenant, and Tenant authorizes and directs any transferee to make payments of rent or other consideration directly to
Landlord upon receipt of notice from Landlord. No direct collection by Landlord from any transferee shall be construed to constitute a novation or a release of Tenant or any guarantor of Tenant from the further performance of its obligations in
connection with this Lease. 
 18.06 [Intentionally omitted.] 

18.07 In the event of any proposed Transfer, Tenant agrees to pay to Landlord as Additional Rent all reasonable
attorney’s fees incurred by Landlord for review, preparation, and/or approval of any and all documents reasonably necessary to Transfer Tenant’s interest in the Premises, not to exceed, however, the sum of Two Thousand Dollars ($2,000) for
any single transfer. 
 18.08 Notwithstanding the foregoing provisions of this Article 18., and provided that
Tenant complies with all of the provisions of this Article 18., Landlord hereby consents to the assignment of Tenant’s entire interest in the Lease or the subletting of all or any part of the Premises to an “Affiliate” of Tenant as
hereinafter defined (a “Permitted Transfer”). For purposes of this Lease, an “Affiliate” of Tenant shall mean any subsidiary of Tenant in which Tenant owns a majority of the issued and outstanding shares of voting stock, or any
corporation with which Tenant may merge or be consolidated, wherein Tenant is the surviving corporation. Any such Permitted Transfer shall only be effective if (i) Tenant shall provide not less than thirty (30) days prior written notice of
any such intended Permitted Transfer to Landlord, (ii) at the time of notification of the Landlord of the Permitted Transfer and at all times on and prior to the effective date of such Permitted Transfer, Tenant shall not be in default under
this Lease beyond the applicable cure period(s), (iii) at the time of the notification of such Permitted Transfer and at all times during the term thereof, the Affiliate shall not be or become the subject of a bankruptcy petition or have a
receiver, custodian or trustee appointed for all or substantially all of its assets, and (iv) the Permitted Transfer, if an assignment, shall provide for the express assumption by the Affiliate of all obligations, covenants, representations and
warranties of Tenant under this Lease in a form reasonably acceptable to Landlord. No Permitted Transfer shall (i) constitute an express or implied 
 
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 consent to
any other Transfer, assignment, or sublease of all or any part of Tenant’s leasehold estate or the approval of Landlord by Landlord of the occupation of the Premises by anyone other than Tenant or the Affiliate or their employees,
(ii) constitute a waiver by Landlord of any of the provisions of this Lease, (iii) in any way release Tenant or any person or entity claiming by, through or under Tenant of any of its covenants, agreements, liabilities and duties under the
Lease (including, without limitation, all duties to cause and keep Landlord and others named or referred to in the Lease fully insured and indemnified with respect to all acts or omissions of Tenant, the Affiliate or their respective agents,
employees or invitees or other matters arising by reason of the Lease, or the Affiliate’s use or occupancy of the Premises), as the same may be amended from time to time, notwithstanding any provision to the contrary in the Permitted Transfer,
or (iv) constitute the approval by Landlord of any of the provisions of the Permitted Transfer or any document or agreement entered into thereunder and shall not be construed to amend the Lease in any respect. The provisions of this
Section 18.08 do not constitute and shall not be construed or implied to be a consent to any other matter for which Landlord’s consent is required under the Lease. 
 19. DEFAULT BY TENANT 
 19.01 Tenant will be in
default under this Lease if at any time during the Lease Term (and regardless of the pendency of any bankruptcy, reorganization, receivership, insolvency or other proceedings in law, in equity or before any administrative tribunal which have or
might have the effect of preventing Tenant from complying with the terms of this Lease): 
 A. Tenant fails to
make payment within ten (10) days following receipt of written notice of any installment of Base Monthly Rent, Additional Rent, or of any other sum herein specified to be paid by Tenant, when due (which notice shall be in lieu of and not in
addition to any notice required by California Code of Civil Procedure Section 1161, et seq. or any other law, rule, or regulation now or hereafter in effect requiring that notice of default be given prior to commencement of an unlawful detainer
or other legal proceeding); 
 B. Tenant fails to observe or perform any of its other covenants, agreements or
obligations or otherwise breaches any of its representations and warranties under this Lease, and such failure is not cured within thirty (30) days after Landlord’s written notice to Tenant of such failure; provided, however, that if the
nature of Tenant’s obligation is such that more than thirty (30) days are required for performance, then Tenant will not be in breach if Tenant commences performance within such 30-day period and thereafter diligently prosecutes the same
to completion. The 30-day notice described herein shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161, et seq. or any other law, rule, or regulation now or hereafter in effect
requiring that notice of default be given prior to the commencement of an unlawful detainer or other legal proceeding; 
 C. Tenant or Tenant’s assignee or guarantor becomes insolvent, makes a transfer in fraud of its creditors, makes a transfer for the benefit of its creditors, is the subject of a
bankruptcy petition which is not dismissed within sixty (60) days of commencement, is adjudged bankrupt or insolvent in proceedings filed against Tenant, which proceedings are not dismissed within sixty (60) days of commencement, or
Tenant’s assignee or guarantor, a receiver, trustee, or custodian is appointed for all or substantially all of Tenant’s or Tenant’s assignee’s, or guarantor’s assets, or such entity or person fails to pay its debts as they
become due, convenes a meeting of all or a portion of 
 
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 its
creditors, or performs any acts of bankruptcy or insolvency, including the selling of its assets to pay creditors; 
 D. Tenant has abandoned the Premises as defined in Section 16.01 above.; 
 E. [Intentionally omitted.] 
 F. If the performance
of Tenant’s obligations under this Lease is guaranteed: (i) the death of a guarantor, (ii) the termination of a guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) the
guarantor’s refusal to honor the guaranty, (iv) the guarantor’s becoming insolvent or the subject of a bankruptcy filing, (v) any default by guarantor of its obligations under the guaranty, including, without limitation, the failure to
provide evidence of execution of the guaranty, current financial statements, an estoppel certificate, written confirmation that the guaranty is still in effect; or 
 G. Tenant’s failure to vacate and surrender the Premises as required by this Lease upon the expiration of the Lease Term or termination of this Lease. 

H. [Intentionally omitted.] 
 20. REMEDIES OF LANDLORD 
 20.01 Nothing contained
herein shall constitute a waiver of Landlord’s right to recover damages by reason of Landlord’s efforts to mitigate the damage to it by Tenant’s default; nor shall anything in this Section adversely affect Landlord’s right, as in
this Lease elsewhere provided, to indemnification against liability for injury or damages to persons or property occurring prior to a termination of this Lease. 
 20.02 All cure periods provided herein shall run concurrently with any periods provided 
 by law. 
 20.03 In the event of default, as
designated herein above, in addition to any other rights or remedies provided for herein or at law or in equity, Landlord, at its sole option, shall have the following rights: 
 A. The right to give a written termination notice to Tenant (which notice may be the notice given under any Subsection of 19.01 above, if applicable, and which notice shall be in lieu of
any notice required by California Code of Civil Procedure Section 1161 et seq. and/or any other law, rule, or regulation now or hereafter in effect requiring that notice of default be given prior to the commencement of an unlawful detainer or
other legal proceeding and, on the date specified in such notice, this Lease shall terminate unless on or before such date all arrears of Rent and all other sums payable by Tenant under this Lease and all costs and expenses incurred by or on behalf
of Landlord hereunder shall have been paid by Tenant and all other events of default at the time existing shall have been fully remedied. Following termination, without prejudice to other remedies Landlord may have, Landlord may (i) peaceably
reenter the Premises upon voluntary surrender by Tenant or remove Tenant therefrom and any other persons occupying the Premises using such legal proceedings as may be available; (ii) repossess the Premises or relet the Premises or any part thereof

 
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 for such
term (which may be for a term extending beyond the Term), at such rental and upon such other terms and conditions as Landlord shall determine, with the right to make alterations and repairs to the Premises; and (iii) remove all personal
property therefrom. 
 B. The remedy described in California Civil Code Section 1951.4 (“lessor” may
continue 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) to recover Rent as it becomes due.
Landlord, without terminating this Lease, may, during the period Tenant is in default, enter the Premises and relet the same, or any portion thereof, to third parties for Tenant’s account and Tenant shall be liable to Landlord for all costs
Landlord incurs in reletting the Premises, including, without limitation, brokers’ commissions, expenses of remodeling the Premises and like costs. Reletting may be for a period shorter or longer than the remaining Term. Tenant shall continue
to pay the Rent on the date the same is due. No act by Landlord hereunder, including acts of maintenance, preservation or efforts to lease the Premises or the appointment of a receiver upon application of Landlord to protect Landlord’s interest
under this Lease, shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease. In the event that Landlord elects to relet the Premises, the rent that Landlord receives from reletting shall be applied to
the payment of, first, any indebtedness from Tenant to Landlord other than Base Monthly Rent; second, to all costs, including maintenance, incurred by Landlord in reletting; and, third, to Base Monthly Rent and Additional Rent due under this Lease.
After deducting the payments referred to above, any sum remaining from the rental Landlord receives from reletting shall be held by Landlord and applied in payment of future Rent as Rent becomes due under this Lease. In no event, and notwithstanding
anything in Section 18 to the contrary, shall Tenant be entitled to any excess rent received by Landlord. If, on the date Rent is due under this Lease, the rent received from the reletting is less than the Rent due on that date, Tenant shall pay to
Landlord, in addition to the remaining Rent due, all costs, including maintenance, which Landlord incurred in reletting the Premises that remain after applying the rent received from reletting as provided hereinabove. So long as this Lease is not
terminated, Landlord shall have the right to remedy any default of Tenant, to maintain or improve the Premises, to cause a receiver to be appointed to administer the Premises and new or existing subleases and to add to the Rent payable hereunder all
of Landlord’s reasonable costs in so doing, with interest at the Applicable Interest Rate from the date of such expenditure. 
 C. Notwithstanding Landlord’s exercise of the remedy described in California Civil Code Section 1951.4 in respect of any event or events of default, the right to thereafter at any
time elect to terminate this Lease for such previous default on the part of the Tenant, and to terminate all the rights of Tenant in and to the Premises. 
 20.04 Pursuant to the rights of re-entry provided above, Landlord may remove all persons from the Premises and may, but shall not be obligated to, remove all property therefrom, and may,
but shall not be obligated to, enforce any rights Landlord may have against said property or store the same in any public or private warehouse or elsewhere at the cost and for the account of Tenant or the owner or owners thereof. Tenant agrees to
hold Landlord free and harmless from any liability whatsoever for the removal and/or storage of any such property, whether of Tenant or any third party whomsoever. Such action by the Landlord shall not be deemed to have terminated this Lease.

 20.05 Upon any such termination by Landlord, Landlord may recover from Tenant as damages, in addition to the
remedies permitted at law: 
 
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 A. The
worth, at the time of the award, of the unpaid Base Monthly Rents and Additional Rents which had been earned at the time this Lease is terminated; 
 B. The worth, at the time of the award, of the amount by which the unpaid Base Monthly Rents and Additional Rents which would have been earned after the date of termination of this Lease
until the time of award exceeds the amount of the loss of Rents that Tenant proves could be reasonably avoided; 

C. The worth, at the time of the award, of the amount by which the unpaid Base Monthly Rent and Additional Rents for the
balance of the Lease Term after the time of award exceeds the amount of such rental loss for such period as the Tenant proves could have been reasonably avoided; and 
 D. Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s breach of its obligations under this Lease, or which in the
ordinary course of events would be likely to result therefrom. The detriment proximately caused by Tenant’s breach will include, without limitation, (i) reasonable expenses for cleaning, repairing or restoring the Premises, (ii) reasonable
expenses for altering, remodeling or otherwise improving the Premises for the purpose of reletting the Premises, (iii) reasonable brokers’ fees and commissions, advertising costs and other expenses of reletting the Premises, (iv) reasonable
costs of carrying the Premises such as taxes, insurance premiums, utilities and security precautions, (v) reasonable expenses of retaking possession of the Promises, (vi) reasonable attorney’s fees and court costs, and (vii) any unearned
brokerage commissions paid in connection with this Lease. As used in Paragraphs 20.05A. and 20.05B. above, the “worth at the time of the award” shall be computed by allowing interest at the Default Rate or the maximum rate permitted by
law, whichever is less. As used in Paragraph 20.05C. above, the “worth at the time of the 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%). 
 20.06 In any action brought by the Landlord to enforce any of its rights under or arising from
this Lease, Landlord shall be entitled to receive its costs and legal expenses including reasonable attorneys’ fees, whether or not such action is prosecuted to judgment. 
 20.07 The waiver by Landlord of any breach or default of Tenant hereunder shall not be a waiver of any preceding or subsequent breach of the same or any other term. Acceptance of any Rent
payment shall not be construed to be a waiver of the Landlord of any preceding breach of the Tenant. No acceptance by Landlord of a lesser sum than the Rent then due shall be deemed to be other than on account of the earliest installment of such
Rent due, nor shall any endorsement or statement on 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 payment without prejudice to Landlord’s right to
recover the balance of such installment or pursue any other remedy provided in the Lease or otherwise available at law or in equity. The delivery of keys to any employee of Landlord or to Landlord’s agent or any employee thereof shall not
operate as a termination of this Lease or a surrender of the Premises. 
 20.08 The specific remedies to which
Landlord may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other rights, remedies, or means of 
 
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 redress to
which it may lawfully be entitled in case of any breach or threatened breach by Tenant of any provisions of the Lease. In addition to the other remedies provided in the Lease, Landlord shall be entitled to damages and all other legal and equitable
remedies, including, but not limited to, a restraint by injunction of the violation or attempted or threatened violation of any of the covenants, conditions, or provisions of the Lease or to a decree compelling specific performance of any such
covenants, conditions, or provisions. 
 20.09 [Intentionally omitted.] 

20.10 The failure of Landlord to insist in any one (1) or more cases upon the strict performance of any term,
covenant or condition of the Lease will not be construed as a waiver of a subsequent breach of the same or any other covenant, term or condition, nor shall any delay or omission by Landlord to seek a remedy for any breach of this Lease be deemed a
waiver by Landlord of its remedies or rights with respect to such a breach. 
 21. SURRENDER OF LEASE NOT MERGER

 21.01 The voluntary or other surrender of this Lease by Tenant, or mutual cancellation thereof, will not work
a merger and will, at the option of Landlord, terminate all or any existing transfers, or may, at the option of Landlord, operate as an assignment to it of any or all of such transfers. 

22. ATTORNEYS FEES AND COLLECTION CHARGES 
 22.01 In the event of any legal action or proceeding between the parties hereto respecting this Lease, reasonable attorneys’ fees and expenses of the prevailing party in any such
action or proceeding will be added to the judgment therein. Any judgment or order entered in any final judgment shall contain a specific provision providing for the recovery of all such costs and expenses of suit (collectively “Costs”)
incurred in enforcing, perfecting and executing such judgment. For the purposes of this Section, Costs shall include, without limitation, reasonable attorneys’ and experts’ fees, costs and expenses incurred in the following: (i) post
judgment motions; (ii) contempt proceeding; (iii) garnishment, levy, and debtor and third party examination; (iv) discovery; and (v) bankruptcy litigation. Should Landlord (solely by virtue of its ownership of the Premises and otherwise without
fault on its part) be named as defendant in any suit brought against Tenant in connection with or arising out of Tenant’s occupancy hereunder, Tenant will pay to Landlord its costs and expenses incurred in such suit, including reasonable
attorney’s fees. 
 22.02 If Landlord utilizes the services of any attorney for the purpose of collecting
any Rent due and unpaid by Tenant after ten (10) days written notice to Tenant of such nonpayment of Rent or in connection with any other default under this Lease by Tenant, Tenant agrees to pay Landlord reasonable attorneys’ fees as incurred
by Landlord for such services, regardless of the fact that no legal action may be commenced or filed by Landlord. 
 23. CONDEMNATION 
 23.01 If the Premises or any
portion thereof are taken under the power of eminent domain, or sold by Landlord under the threat of the exercise of said power (all of which is referred to as 
 
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“condemnation”), this Lease shall terminate as to the part so taken as of the date of condemning authority takes
title or possession, whichever occurs first. If more than twenty-five percent (25%) of the floor area of the Building, or more than fifty percent (50%) of the land area of the Premises not covered with the Building, is taken by condemnation,
either Landlord or Tenant may terminate this Lease as of the date the condemning authority takes possession by notice in writing of such election within twenty (20) days after Landlord shall have notified Tenant of the taking or, in the absence of
such notice, then within twenty (20) days after the condemning authority shall have taken possession. If the Lease is not terminated by either Landlord or Tenant then it shall remain in full force and effect as to the portion of the Premises
remaining, provided the Base Monthly Rent shall be reduced by the amount reasonably attributable to the portion of the Premises taken. If the parties cannot agree on such amount, it shall be determined by binding arbitration. In the event this Lease
is not so terminated then Landlord agrees, at Landlord’s sole cost, to as soon as reasonably possible restore the Premises to a compete unit of like quality and character as existed prior to the condemnation. All awards for the taking of any
part of the Premises or any payment made under the threat of the exercise of the power of eminent domain shall be the property of Landlord, whether made as compensation for the diminution of value of the leasehold or for the taking of the fee or as
severance damages; provided, however, that Tenant shall be entitled to any award for loss or damage to Tenant’s trade fixtures and removable personal property. 
 24. RULES AND REGULATIONS 
 24.01 [Intentionally
omitted.] 
 24.02 [Intentionally omitted.] 

25. ESTOPPEL CERTIFICATE 
 25.01 Tenant will execute and deliver to Landlord, within ten (10) business days of Tenant’s receipt of Landlord’s written demand, a statement in writing certifying that this
Lease is in full force and effect, and that the Base Monthly Rent and Additional Rent payable hereunder are unmodified and in full force and effect (or, if modified, stating the nature of such modification) and the date to which Rent and other
charges are paid, if any, and acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder or specifying such defaults if they are claimed and such other matters as Landlord may reasonably
request. Any such statement may be relied upon by any prospective purchaser or encumbrancer of the Premises. Tenant’s failure to deliver such statement within such time shall be conclusive upon Tenant that (i) this Lease is in full force and
effect, without modification except as may be represented by Landlord; (ii) there are no uncured defaults in Landlord’s performance and (iii) not more than one (1) month’s Rent has been paid in advance. 

26. SALE BY LANDLORD 
 26.01 In the event of a sale, conveyance or other transfer by Landlord of the Premises, the same shall operate to release Landlord from any liability upon any of the covenants, agreements,
obligations, representations, warranties, or conditions, expressed or implied, herein contained in favor of Tenant, except for liabilities which have accrued prior to the date of the sale, conveyance or other transfer, and in such event Tenant
agrees to look solely to the responsibility of the successor 
 
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 in
interest of Landlord in and to this Lease. This Lease will not be affected by any such sale, and Tenant agrees to attorn to the purchaser or assignee, provided the purchaser or assignee has expressly assumed the obligations of the Landlord under the
Lease for the benefit of Tenant. 
 27. NOTICES 

27.01 All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments,
or designations under this Lease by either party to the other will be in writing and will be considered given (i) upon personal service of a copy on the party to be served, (ii) five (5) business days after mailing such notice by certified or
registered mail, postage prepaid, receipt for delivery requested, addressed to the party to be served and properly deposited in the United States mail, or (iii) one (1) business day after proper deposit with a nationally recognized courier service
under a delivery option which guarantees delivery within the foregoing period. Notices shall be given to the parties at the addresses set forth in Sections 1.03 and 1.04 above, as applicable. Any change in the address of any party shall be given by
the party having such change to the other party in the manner provided above. Thereafter, all notices shall be given in accordance with the notice of change of address. Notices given before actual receipt of the notice of change of address shall not
be invalidated by the change of address. 
 28. SURRENDER OF PREMISES 

28.01 Upon expiration or termination of this Lease, Tenant agrees to surrender possession of the Premises and leave the
same in good and clean condition, reasonable wear and tear excepted, and in accordance with Landlord’s Move Out Standards attached hereto as Exhibit G. Tenant shall remove all of its personal property before the termination of the Lease and
perform all restoration made necessary by the removal of any alterations required pursuant to Section 10.01 or elsewhere in this Lease. Upon Tenant’s compliance with the provisions of this Section 28. and Exhibit G, Tenant shall have satisfied
all requirements as to the surrender of possession and removal of Tenant’s personal property; provided, however, that the foregoing shall not relieve Tenant from or otherwise affect Tenant’s other covenants, liabilities, and obligations
pursuant to the other provisions of this Lease. Landlord may elect to retain or dispose of in any manner any alterations or Tenant’s personal property that Tenant does not remove from the Premises on expiration or termination of the Lease Term.
Title to any such alterations or Tenant’s personal property that Landlord elects to retain or dispose of on expiration of the Lease Term shall vest in Landlord. Tenant waives all claims against Landlord for any damage to Tenant resulting from
Landlord’s cost for restoring, removing, or disposing of any unapproved alterations or alterations which are required to be removed, or Tenant’s personal property. If Tenant fails to surrender the Premises to Landlord on expiration or
termination of the Lease Term, Tenant shall indemnify, defend, and hold Landlord harmless from all damages resulting from Tenant’s failure to surrender the Premises, including, without limitation, claims made by a succeeding tenant resulting
from Tenant’s failure to surrender the Premises. 
 29. HOLDOVER 

29.01 Tenant has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of
this Lease. If Tenant remains in the Premises after the Lease expiration date or the termination of the Lease, such continuance of possession by Tenant will be 
 
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 deemed to
be a month-to-month tenancy at the sufferance of Landlord terminable on thirty (30) days notice at any time by either party. All provisions of this Lease, except those pertaining to the Lease Term and Base Monthly Rent, will apply to the
month-to-month tenancy. Tenant will pay a new Base Monthly Rent in an amount equal to one hundred twenty-five percent (125%) of the Base Monthly Rent payable for the last full calendar month during the Lease Term. Without limiting any of
Landlord’s rights or remedies, Tenant shall indemnify, defend and hold Landlord harmless for any and all damages caused by Tenant’s holdover as provided in Section 28.01 above. 

30. DEFAULT OF LANDLORD; LIMITATION OF LIABILITY 
 30.01 In the event of any default by Landlord hereunder, Tenant shall give notice of such default to Landlord at Landlord’s Notice Address as provided in Section 1.04 and Landlord
shall have thirty (30) days in which to cure the default; provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days are required for performance, then Landlord will not be in breach if Landlord
commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. Tenant hereby agrees that Landlord shall not be liable for injury to Tenant’s business or for any loss of income or profit
therefrom or for other consequential damages or for damage to the goods, wares, merchandise or other property of Tenant, Tenant’s employees, invitees, customers or any other person in or about the Premises, nor, unless through its negligence,
shall Landlord be liable for injury to the person of Tenant, Tenant’s employees, agents or contractors or invitees, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said damage or injury results from conditions arising upon the Premises or upon
other portions of the building of which the Premises are a part, or from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Landlord or Tenant. Landlord shall
not be liable for any damages arising from any act or neglect of any other tenant of Landlord. 
 31. PRIORITY

 31.01 Subject to the terms contained in this Section, at the election of Landlord or any mortgagee with a lien
on the Premises or any ground lessor with respect to the Premises, this Lease will be subject and subordinate at all times to (i) all ground leases or underlying leases which may now exist or hereafter be executed affecting the Premises, and
(ii) the lien of any mortgage or deed of trust which may now exist or hereafter be executed in any amount for which the Premises, ground leases or underlying leases, or Landlord’s interest or estate in any of said items is specified as
security. In the event that any ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant’s possession of the Premises and
rights under this Lease will not in any way be disturbed or affected, and, provided that the lessor under any such ground lease or underlying lease or the mortgagee or beneficiary under any such mortgage or deed of trust has previously entered into
a non-disturbance and attornment agreement with Tenant on terms reasonably satisfactory to Tenant, Tenant will, notwithstanding any subordination, attorn to and become the Tenant of the successor in interest to Landlord pursuant to the terms of such
non-disturbance and attornment agreement. Provided that such ground lessor, mortgagee, or beneficiary is concurrently entering into a non-disturbance and attornment agreement with Tenant on terms satisfactory to Tenant, Tenant 

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covenants and agrees to execute and deliver to Landlord any document or instrument reasonably requested by Landlord or its ground lessor, mortgagee or beneficiary under a deed of trust evidencing
such subordination of this Lease with respect to any such ground lease or underlying leases or the lien of any such mortgage or deed of trust. 
 32. DEPOSIT AGREEMENT 
 32.01 [Intentionally
omitted.] 
 33. GOVERNING LAW 
 33.01 This Lease and all of the rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of California in effect from time to time
without regard to principles of conflicts of law. The parties hereby agree that all litigation resulting under this Lease shall be under the sole and exclusive jurisdiction and venue of the appropriate state or federal court in and for the county in
which the Premises are located and the parties hereby submit to exclusive jurisdiction and venue thereunder. 

34. NEGOTIATED TERMS 
 34.01 This Lease is the result of the negotiations of the parties and has been agreed to by both Landlord and Tenant after prolonged discussion. This Lease has been drafted on the basis of
mutual contribution of language and is not to be construed against any parties hereto as being the drafter or causing the same to be drafted. 
 35. SEVERABILITY 
 35.01 The unenforceability,
invalidity, or illegality of any provision of this Lease shall not render any other provision unenforceable, invalid or illegal. 
 36. BROKERS 
 36.01 Each party warrants to the
other that it has had no dealings with any broker or agent in connection with this Lease and covenants to pay, hold harmless and indemnify the other from and against any and all cost, expense or liability for any compensation, commissions and
charges claimed by any broker or agent with whom the warranting party has or purportedly has dealt with respect to this Lease or its negotiation. 
 37. QUIET POSSESSION 
 37.01 Tenant, upon paying
the rentals and other payments herein required from Tenant, and upon Tenant’s performance of all of the terms, covenants and conditions of this Lease on its part to be kept and performed, may quietly have, hold and enjoy the Premises during the
Lease Term without disturbance from Landlord or from any other person claiming through Landlord. 
 
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 38.
MISCELLANEOUS PROVISIONS 
 38.01 Whenever the singular number is used in this Lease and when required by the
context, the same will include the plural, and the masculine gender will include the feminine and neuter genders, and the word “person” will include corporation, firm, partnership, limited liability company, association or other entity. If
there is more than one (1) person or entity as Tenant, the obligations imposed upon each such person or entity as Tenant under this Lease will be joint and several. 
 38.02 The headings and titles to articles, sections, and paragraphs of this Lease are not a part of this Lease and will have no effect upon the construction or interpretation of any part
of this Lease. 
 38.03 This Lease contains all of the agreements and understandings relating to the leasing of
the Premises and the obligations of Landlord and Tenant in connection with such leasing. Landlord has not made and Tenant is not relying upon, any warranties, representations, promises or statements made by Landlord or any agent of Landlord, except
as expressly set forth herein. This Lease supersedes any and all prior agreements and understandings between Landlord and Tenant and alone expresses the agreement of the parties. 

38.04 Time is of the essence of each term and provision of this Lease. 

38.05 Except as otherwise expressly stated, each payment required to be made by Tenant is in addition to and not in
substitution for other payments to be made by Tenant. 
 38.06 Subject to the provisions of Article 18. the terms
and provisions of this Lease are binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Landlord and Tenant. 
 38.07 All covenants and agreements to be performed by Tenant under any of the terms of this Lease are separate and independent covenants of Tenant will be performed by Tenant at
Tenant’s sole cost and expense and without any abatement of Rent or setoff rights. 
 38.08 In consideration
of Landlord’s covenants and agreements hereunder, Tenant hereby covenants and agrees not to disclose any terms, covenants or conditions of this Lease to any other person or entity without the prior written consent of Landlord, except as may be
required (i) for Tenant’s financing or regulatory purposes, (ii) by operation of law, or (iii) to Tenant’s accountants, auditors, legal counsel, appraisers and other advisors on a need-to-know basis in the ordinary course of
Tenant’s business. 
 38.09 Tenant agrees it will provide to Landlord such financial information as Landlord
may reasonably request for the purpose of obtaining construction or permanent financing or refinancing for or in connection with a sale of the Premises. 
 38.10 [Intentionally omitted.] 
 
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 38.11
Whenever a day is appointed herein on which, or a period of time is appointed in which, either party is required to do or complete any act, matter or thing, the time for the doing or completion thereof shall be extended by a period of time equal to
the number of days on or during which such party is prevented from, or is reasonably interfered with, the doing or completion of such act, matter or thing because of labor disputes, civil commotion, war, warlike operation, sabotage, governmental
regulations or control, fire or other casualty, inability to obtain materials, or to obtain fuel or energy, weather or other acts of God, or other causes beyond such party’s reasonable control (financial inability excepted); provided, however,
that nothing contained herein shall excuse Tenant from the prompt payment of any Rent or charge required of Tenant hereunder. 
 38.12 No slot machine or other gambling game shall be permitted on the Premises without the prior written consent of Landlord. The Premises shall not be used for any “adult
bookstore” or “adult motion picture theater” as said terms are defined in NRS 278.0221, or for a “house of prostitution” as said or similar terms are defined in NRS 201 et seq., or any similar use, notwithstanding any local
zoning codes or ordinances or any other provisions of law to the contrary permitting such use. 
 38.13 Unless
otherwise specifically provided in this Lease, the representations, warranties, covenants and obligations of the parties contained in this Lease shall survive the expiration or earlier termination of this Lease without limitation as to scope or
duration. This Lease shall be binding upon the parties, their personal representatives, successors and assigns, provided, however, that nothing contained in this Section 38.13 shall affect any other provisions of this Lease. 

38.14 This Lease may not be amended, changed or modified in any way except in a writing executed by Landlord and Tenant.

 38.15 Landlord specifically reserves the right: (i) to grant, without the consent or joinder of Tenant, such
easements, rights, and dedications that Landlord deems necessary, (ii) to cause the recordation of parcel maps and restrictions, and (iii) to create or install new utilities, so long as such easements, rights, dedications, maps, restrictions and
utilities do not unreasonably interfere with the Permitted Use of the Premises by Tenant or Tenant’s rights under this Lease. Tenant hereby agrees to sign any documents and any instruments reasonably requested by Landlord to effectuate the
foregoing. 
 38.16 [Intentionally omitted.] 

38.17 Landlord and Tenant hereby waive their respective rights to trial by jury in any action or proceeding involving the
Premises or otherwise arising out of this Lease. 
 39. CHANGE ORDERS 

39.01 [Intentionally omitted.] 
 40. SPECIAL PROVISIONS AND EXHIBITS 
 40.01 The
following special provisions of this Lease are made a part hereof: 
 
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 Article
41. Options to Extend Lease Term 
 Article 42. Termination of Existing Lease 

The following Exhibits are attached hereto and made a part hereof: 

Exhibit A (Premises) 
 Exhibit B [Intentionally omitted.] 
 Exhibit C
[Intentionally omitted.] 
 Exhibit D [Intentionally omitted.] 

Exhibit E [Intentionally omitted.] 
 Exhibit F [Intentionally omitted.] 
 Exhibit G
(Move Out Standards) 
 Exhibit H [Intentionally omitted.] 

41. OPTIONS TO EXTEND LEASE TERM 
 41.01 Tenant is hereby granted the options (each, an “Extension Option,” and collectively, the “Extension Options”) to extend the Lease Term for two (2) additional
periods of five (5) years each (each, an “Extension Term,” and collectively, the “Extension Terms”), each beginning on the day after expiration of the Initial Lease Term or the first Extension Term, as the case may be, and
expiring on the date five (5) years thereafter (unless terminated sooner pursuant to any other terms or provisions of the Lease), on all of the same terms and conditions as set forth in the Lease, but at an adjusted Base Monthly Rent as set forth in
Section 41.02 below (and without any additional option to extend the Lease Term after the expiration of the second Extension Term). The Extension Options may be exercised by Tenant only by the giving of written notice of such exercise (the
“Extension Notice”) to Landlord at least one hundred eighty (180) days before the expiration of the Initial Lease Term or the first Extension Term, as applicable. If Tenant fails to timely deliver the Extension Notice, or if this Lease is
terminated pursuant to any of its other terms or provisions prior to the expiration of the Initial Lease Term or the first Extension Term, as applicable, all remaining Extension Options shall lapse, and Tenant shall have no right to extend or
further extend the Lease Term. The Extension Options shall be exercisable by Tenant on the express condition that at the time of delivery of Tenant’s Extension Notice and at all times thereafter and prior to the commencement of the applicable
Extension Term, Tenant shall not be in default under this Lease beyond any applicable cure period(s). In the event of the failure of any such conditions, all unexercised Extension Options shall lapse and shall be null and void and of no further
force or effect. After exercise of each Extension Option by Tenant in accordance with the foregoing provisions, Tenant’s obligation to renew shall be irrevocable by Tenant. 

41.02 Base Monthly Rent during each twelve (12) month period of each Extension Term shall be computed as follows. As
used herein, the term, “Extension Adjustment Month,” shall mean the first (1st) month of each Extension Term and each month including each anniversary of the commencement of each Extension Term, the term, “Extension Comparison
Index,” shall mean the Index published and which is in effect the third month preceding the commencement of each Extension Adjustment Month, and the term, “Beginning Index,” shall be the Index in effect during the fifty-seventh (57th)
month of the Initial Lease Term. Base Monthly Rent for each twelve (12) month period of each Extension Term shall be the product of the Base Monthly Rent as specified in Section 1.07 above for the second five (5) year period of the Initial Lease
Term, multiplied by a 
 
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 fraction,
the numerator being the applicable Extension Comparison Index and the denominator being the Beginning Index. In no event, however, shall the Base Monthly Rent during any twelve (12) month period of any Extension Term be less than one hundred two
percent (102%) or greater than one hundred six percent (106%) of the Base Monthly Rent due during the immediately preceding period of the Lease Term. Landlord will give Tenant notice of each increase by written invoice; however, failure of Landlord
to give such notice shall not be construed as a waiver of the increase and any such increased amount shall accrue as Rent. If the Index is discontinued or revised during any Extension Term, Landlord reserves the right to use a conversion factor,
formula or table or substitute Index as may be published by the Bureau of Labor Statistics or, if none, a different Index in order to obtain substantially the same result. 
 42. TERMINATION OF EXISTING LEASE 
 42.01 Landlord
and Tenant agree that the Existing Lease, including any and all amendments and modifications thereof, shall be canceled effective on the Lease Commencement Date. Until the Lease Commencement Date, the terms of occupancy of the Premises shall be
governed by the Existing Lease. From and after the Lease Commencement Date, Tenant’s occupancy of the Premises shall be governed by the terms and conditions of this Lease. Landlord and Tenant acknowledge and agree that nothing contained herein
shall relieve Tenant or Landlord of any of their respective obligations under the Existing Lease which arise or accrue prior to the Lease Commencement Date, all of which shall survive the termination of the Existing Lease, and nothing contained
herein shall be intended to or deemed to release either party from or waive any of its rights with respect to any obligations of the other party or any default by such other party under the Existing Lease prior to the Lease Commencement Date.
Landlord and Tenant agree that the termination of the Existing Lease shall be self-executing and effective without the need for further documentation. However, Landlord and Tenant agree to execute, acknowledge, and deliver to the other party such
other documents, including, without limitation, a Memorandum of Termination of Lease, in a form and content reasonably acceptable to the parties, as reasonably requested by the other party. Each party represents, warrants, covenants and agrees with
the other that the Existing Lease is the only agreement, written, oral, or otherwise between Landlord and Tenant pertaining to the Premises and the Existing Lease has not been amended, superseded, added to or interpreted, in writing, orally, or
otherwise, at any time except as noted in this Lease. 
 IN WITNESS WHEREOF, Landlord and Tenant have executed
this Lease as of the day and year indicated by Landlord’s execution date as written below. 
 Individuals
signing this Lease warrant that they have the authority to bind their respective principals. THIS LEASE, WHETHER OR NOT EXECUTED BY TENANT, IS SUBJECT TO ACCEPTANCE AND EXECUTION BY LANDLORD, ACTING ITSELF OR BY ITS AGENT 

30. 

 

 
  
 ACTING
THROUGH ITS PRESIDENT, VICE PRESIDENT, OR ITS DIRECTOR OF LEASING AND MARKETING. 
 Landlord: 

Dermody Properties, a Nevada corporation 
 By: 
 Its: 

(Name, Title) 
 Date: 5-23-02 
 (Execution Date) 

Dermody Family Limited Partnership II, a Washington limited partnership 

By: JOHN A. DERMODY 
 Its: JOHN A. DERMODY, MEMBER OF DERMODY FAMILY LLC II, GENERAL PARTNER 
 (Name, Title) 
 Date: 5-3-02 

(Execution Date) 
 Tenant: Unified Western Grocers, Inc., a California corporation 
 By: GARY C. HAMMETT 
 GARY C. HAMMETT 

Its: VICE PRESIDENT 
 (Name, Title) 
 Date: 5-1-02 

(Execution Date) 
 By: 
 Its: Secretary 

(Name, Title) 
 Date: 
 (Execution Date) 

31. 

 

 
  
 Exhibit
“A” to Lease prepared November 15, 2001 
 by and between Dermody Properties, a Nevada 

corporation, and Unified Western Grocers, a California corporation 

Dermody Properties, a Nevada Corporation 
 Unified Western Grocers, a California Corporation 

MASTER PLAN 
 P POSED PHASE 3 
 CERTIFIED GROCERS U 

Construction 

 

 
  
 EXHIBIT G

 Move Out Standards 
 This Move Out Standards (Exhibit G) is dated for the reference purposes as of , 200 , and is made between Dermody Properties, a Nevada corporation, and Dermody Family Limited Partnership
II, a Washington limited partnership (collectively, “Landlord”), and Unified Western Grocers, Inc., a California corporation (“Tenant”), to be a part of that certain Standard Industrial Lease (Dermody Properties Standard
Industrial Lease form) of even date herewith between Landlord and Tenant (the “Lease”) concerning an approximately two hundred ninety-one thousand, three hundred thirty (291,330) square foot building located at 1888 South East Street,
Fresno, California (the “Premises”). Landlord and Tenant agree that the Lease is hereby supplemented as follows: 
 The Tenant shall surrender the Premises, at the time of the expiration of the Lease, in the condition required under Section 28.01 and elsewhere in the Lease, which shall include, but is
not limited to, addressing the following items (in all cases, reasonable wear and tear excepted): 
 1. Lights:
Office and warehouse lights will be fully 
 operational with all bulbs functioning. 

2. Dock Levelers & Roll Up Doors: Shall be in good working condition. 

3. Dock Seals: [Intentionally omitted.] 
 4. Warehouse Floor: Swept with no racking bolts and other 
 protrusions left in floor. Cracks should be repaired with an epoxy or polymer. 
 5. Tenant-Installed Equipment & Removed and space turned to original Wiring: condition when originally leased. (Remove 

air lines, junction boxes, conduits, etc. 
 6. Walls: Sheetrock (drywall) damage should be 

patched and fire-taped so that there are no holes in either office or warehouse. 

7. Roof: Any tenant-installed equipment must be 
 removed and roof penetrations properly repaired by licensed roofing contractor. Active leaks must be fixed and latest Landlord semi-annual maintenance and repairs recommended must have
been followed. 
 8. Signs: All exterior signs must be removed and 

holes patched and paint touched up as necessary. All window signs should likewise be removed. 

 

 
  
 9. Heating
& Air Conditioning System: 
 10. Overall Cleanliness: 

11. Upon Completion: 
 A written report from a licensed HVAC contractor within the last three months stating that all evaporative coolers within the warehouse are operational and safe and that office HVAC system
is also in safe operating condition. 
 Clean windows and bathroom(s), vacuum carpet, and remove any and all
debris from office and warehouse. Remove all pallets and debris from exterior of Premises. 
 Contact Dermody
Properties (775) 858-8080 to coordinate date of turning off power, turning in keys, and obtaining final Dermody Properties inspection of Premises which, in turn, will facilitate refund of security deposit. 

Exhibit G to Lease prepared November 15, 2001 by and between Dermody Properties, a Nevada corporation, and Dermody Family
Limited Partnership II, a Washington limited partnership, collectively, as “Landlord,” and Unified Western Grocers, Inc., a California corporation, as “Tenant” 

Dermody Properties 
 John A Dermody 
 Dermody Family Limited Partnership
II 
 Gary C. Hammett 
 Unified Western Grocers, Inc.

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