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Lease Agreement for Hamburger FactoryHAMBURGER FACTORY LEASE This lease is made as of January 1, 2011, by and between the CITY OF POWAY (hereinafter "LANDLORD "), and HAMBURGER FACTORY, INCORPORATED (hereinafter "TENANT "), who agree as follows: ARTICLE I DESCRIPTION OF LEASED PREMISES Section 1.01 Description Landlord leases to Tenant and Tenant leases from Landlord the premises situated at 14122 Midland Road, Poway, California, consisting of approximately 5,280 square -feet, which includes 1,493 square -feet of patio area, 3,575 square -feet of dining /kitchen area, and 212 square -feet of storage area, as shown in Exhibit "A ". Section 1.02 Landlord's Warranty of Quiet Eniovment Landlord covenants and agrees that Tenant, upon paying the rent and other charges herein provided for and observing and keeping the covenants, conditions, and terms of this Lease on Tenant's part to be kept or performed, shall lawfully and quietly hold, occupy and enjoy the leased premises during the term of this Lease. ARTICLE II COMMON AREA Section 2.01 Tenant's Non - Exclusive Right to Use Common Area Tenant and its authorized representatives and invitees shall have the nonexclusive right to use the common areas, including all parking spaces, with others who are entitled to use the common areas (including the public using nearby public property and facilities), subject to Landlord's rights set forth in Section 2.02. Section 2.02 Landlord's Maintenance and Management Landlord shall maintain the common areas in good condition at all times. Landlord shall have right to: r a. Establish and enforce reasonable rules and regulations applicable to Tenant concerning the maintenance, management, use and operation of the common areas. b. Temporarily close any of the common areas for maintenance purposes. Unless in the case of an emergency, Tenant will be given a minimum of 24- hour notice. y C. Select a person to maintain and operate any of the common areas if at any time Landlord determines that the best interests of all parties will be served by having any of the common areas maintained and operated by that person. Landlord shall have the right to negotiate and enter into a contract with that person on such terms and conditions and for such period of time as Landlord deems reasonable and proper, both as to service and as to cost. d. Make changes to the common areas, including, without limitation, changes'in the location of driveways, entrances, exits, vehicular parking spaces, parking area, or the direction of the flow of traffic following written notice to Tenant. e. Control program hours and special events without the consent of Tenant. All park, recreation programming, and facility related concerns and coordination should be addressed by Tenant with the City Park Supervisor onsite. ARTICLE III Section 3.01 TERM Primary Term The term of this lease shall be for a period of fourteen (14) years commencing on January 1, 2011, and expiring, unless sooner terminated, on the fourteenth anniversary of the date the term commences. Section 3.02 Extended Term Provided Tenant shall not then be in default hereunder, Tenant shall have the option to extend the term of this Lease for one (1), five -year extension period, upon the same terms and conditions herein contained, except for the minimum monthly rent, upon delivery by Tenant to Landlord of its written notice of such election at least sixty (60) days prior. to the expiration of the current term, and upon agreement of the City Manager. The minimum monthly rent during the extended term shall be subject to adjustment annually as set forth in Section 4.02 herein. ARTICLE IV RENT Section 4.01 Minimum Rent Subject to adjustments as hereinafter set forth, Tenant shall pay to Landlord as minimum monthly rent, without deduction, setoff, prior notice, or demand, the sum of Five - Thousand, Three - Hundred dollars and Sixty -Five cents ($5.300.65) per month in advance on the first day of each month, commencing on the date the term commences, and continuing for a twelve (12) month period. Minimum monthly rent for the first month or portion of it shall be paid on the day the term commences. Minimum monthly rent for any partial month shall be prorated at the rate of one - thirtieth (1/30) of the minimum rent per day. Section 4.02 Cost of Livino Adiustment M Beginning with year two (2) following the Commencement Date, and annually thereafter until January 1, 2015, on the anniversary of the Commencement Date, rent shall be increased based on the Consumer Price Index, All Items, for All Urban Consumers (based on December 1997 = 100) for West B/C (Cities 50,000 — 1,500,000), published by the United States Department of Labor, Bureau of Labor Statistics ( "index'). The base month for increases during this period is July, 1997, at which time the applicable index was 101.3. Each year the minimum Rent shall be determined by dividing the index closest to the Commencement Date in the current year by the July, 1997 index. The product of which shall then be multiplied by the current monthly rent. The resulting sum of the calculation shall be the new monthly rent for the following twelve (12) months commencing January 1. The, cost of living adjustment should not exceed six percent (6 %). If the index has changed, the index shall be converted in accordance with the Conversion Factor published by the United States Department of Labor Statistics. If the index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised. Beginning January 1, 2015, the monthly Rent shall be raised to $1.30 per square -foot, or Six - Thousand, Eight- Hundred, and Sixty -Four dollars ($6,864), and shall be increased 10% every five years thereafter in accordance with Exhibit "B ". It shall be the obligation of the Landlord to calculate the rent increase annually and provide notice of the rent increase to Tenant. In the event that the Landlord fails to provide notice of the rent increase to Tenant by January 1, Tenant shall continue to pay rent at the rate payable in the previous month until notice is received. Within fifteen (15) days after Tenant's receipt of the notice, Tenant shall pay to Landlord any and all arrearage due between January 1 and the date of payment of the arrearage. Landlord's failure to provide notice of the rent increase shall not constitute waiver thereof and Landlord may, at any time during the term of the Lease, adjust the rent as provided herein, give notice of the rent increase to Tenant, and demand that Tenant pay the arrearage as provided herein. ARTICLE V UTILITIES AND TAXES Section 5.01 Utilities Tenant shall make all arrangements for and pay for all utilities and services furnished to or used by Tenant, including, without limitation, water, sewer, gas, electricity, cable, telephone service, trash collection and for all connection charges other than City initiated charges. Tenant shall provide electricity for the exterior holiday lights that are located on tenant's electric meter. 3 Section 5.02 Personal Property Taxes Tenant shall pay before delinquency all taxes, assessments, license fees and other charges that are levied and assessed against Tenant's personal property installed or located in or on the premises, and that become payable during the term. On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments. Section 5.03 Possessory Interest Taxes This lease may result in a taxable possessory interest and be subject to the payment of property taxes. Tenant agrees to and shall pay before delinquency all taxes and assessments of any kind assessed or levied upon Tenant or the Premises by reason of this Lease or of any buildings; machines, or other improvements of any nature whatsoever erected, installed or maintained by Tenant or by reason of the business or other activities of Tenant upon or in connection with the Premises. Such taxes and assessments shall be in addition to Rent. ARTICLE VI USE AND OCCUPANCY Section 6.01 Use Tenant shall use the premises for the purposes of operating and conducting a restaurant and for no other use without Landlord's consent. Section 6.02 Hours of Operation Tenant shall operate its business only during the following days and between the following hours: Sunday- Thursday: 6:00 a.m. to 9:00 p.m. Friday and Saturday: 6:00 a.m. to 10:00 p.m. Section 6.03 Compliance with Law Tenant shall comply with, and conform to, all laws and regulations, municipal, state and federal, and any and all requirements and orders of any municipal, state, or federal court or authority, present or future, in any way relating to the use or occupancy of the leased premises throughout the entire term of this Lease and any extension or renewal thereof. Section 6.04 Restriction of Tenant's Use Tenant agrees, in using the leased premises: a. Not to commit any waste or suffer any waste to be committed upon the leased premises. b. Not to commit any public or private nuisance or any other act or thing, which might or would disturb the quiet enjoyment of any occupant of nearby property. C. Not to burn refuse or other materials in or about the leased premises, or permit any activity or activities, which might cause unreasonable annoyance to any occupant or nearby property. d. Not to overload, or permit the overloading of, any floor in the buildings located upon the leased premises. e. Not to keep, use, sell, or offer for sale on the leased premises, any article, or conduct any activity thereon, which may be prohibited by the standard form of fire insurance policy, and if Tenant does keep, use, sell or offer for sale any such article, or if any acts are performed•on the leased premises by Tenant which increase the rate of fire insurance premiums upon the leased premises, Tenant agrees to pay to Landlord the amount of increase in fire insurance and premiums attributable thereto on demand. Not to place, construct, or maintain any sign, advertisement, awning, banner or other exterior decoration on the exterior of the leased premises or in the immediate vicinity thereof, without obtaining Landlord's prior written consent and all applicable City permits. g. Tenant will be allowed two business designation signs on the exterior of the leased premises, currently located on the roof and restaurant entrance, and one business designation sign on Midland Road at the park entrance, in accordance with the City's sign ordinance. h. The Tenant will prohibit smoking of a tobacco product inside the restaurant and within 20 feet of an exit, entrance, or operable window, and otherwise comply with all applicable smoking laws and ordinances currently in effect. Tenant will ensure that signage is displayed in public view. Tenant's employees will comply with all applicable smoking laws and ordinances and will smoke in designated smoking areas only. All uses of the Leased Premises shall be in compliance with all applicable ordinances, resolutions, statutes, rules, regulations and laws of the City of Poway, and any Federal, State, or local government agency or competent jurisdiction. ARTICLE VII TRADE FIXTURES Section 7.01 Installation Tenant may install in and affix to the leased premises such fixtures and equipment as Tenant deems desirable. Section 7.02 Removal Not later than the expiration or termination of this Lease, Tenant is required to surrender possession of the leased premises to Landlord. Tenant may, and if prior to the expiration of such time Landlord gives written notice requiring Tenant to do so, Tenant shall remove and properly dispose of all trade fixtures installed in the leased premises by Tenant. The removal of such trade fixtures shall be effected solely at the expense of Tenant and in the manner satisfactory to Landlord and without injury or damages to the leased premises or the building, and Tenant covenants to repair immediately, at Tenant's expense, any injury or damage caused by such removal. ARTICLE VIII ACCEPTANCE OF LEASED PREMISES AS -IS Section 8.01 Acceptance of Leased Premises As -Is Tenant has previously leased the leased premises, and has examined and inspected and knows the condition of the leased premises and every part thereof and agrees to accept the same in their present condition. Tenant waives any right or claim against Landlord for any cause, directly or indirectly, arising out of the condition of the leased premises, appurtenances thereto, the improvements thereon, and the equipment thereof. ARTICLE IX ALTERATIONS, REPAIRS AND IMPROVEMENTS Section 9.01 Tenant's Installations, Additions and Improvements a. Tenant shall make no installations, additions, or improvements in or to the leased premises except as otherwise authorized in the Lease, or structural alterations or changes either to the interior or exterior of the buildings located on the leased premises, or in the bearing walls, supports, beams, or foundation, without first obtaining the written consent of the City Manager. All applicable City permits and approvals must be obtained prior to the installation of any additions or improvements. b. Plans and specifications showing such proposed installations, additions, or improvements and alterations and changes, shall be submitted to Landlord for approval upon the application for such written consent. C. All installations, additions, or improvements, and alterations and changes made, with the written consent of Landlord, shall be made under the supervision of an architect or engineer satisfactory to Landlord. Work shall be inspected and permitted by the City's Building Division as required. All architects, engineers and contractors must be approved by the Landlord, and must maintain insurance coverage deemed acceptable by the Landlord. d. If during the term of this Lease any additions, alterations, or improvements in or to the leased premises, as distinguished from repairs, are required by any government authority or any law, ordinance, or governmental regulation because of the use to which the leased premises are put by Tenant and not by reason of the character or structure of the building, they shall be made and paid for by Tenant. Section 9.02 Tenant's Repair and Maintenance Responsibilities The Tenant agrees during the term thereof, and any extension or renewal thereof, to keep and maintain the leased premises and the exterior and the interior of all doors, windows, and plate glass in and about the leased premises in good order, condition, and repair, including, without limiting the foregoing, all plumbing lines and plumbing fixtures, drains, natural gas lines beginning at the point of entry into the building, and sewage facilities within the leased premises, fixtures, interior walls, floors, ceilings, sides, exhaust equipment, and all interior building appliances and similar equipment. It is Tenant's responsibility to replace lighting fixtures, bulbs, and ballasts as necessary. Tenant shall maintain in good working order two exterior grease traps necessary for Tenant's business operations. Grease traps should be cleaned in accordance with the City of Poway's FOG (Fat, Oil, Grease) Program requirements included as Exhibit "C ". Tenant shall pressure wash, adhering to the Best Management Practices contained in the City's Jurisdictional Urban Runoff Management Plan (JURMP), the boardwalk area between the kitchen door and outdoor public restrooms and the dumpster area , minimum of once every three months, or as deemed necessary by Landlord. Tenant shall keep the trash enclosure, and any other exterior areas affected by Tenant's business operations, clean and free from grease and debris. Tenant shall be responsible for ensuring that the interior of the premises is kept free of insects and rodents. Tenant shall keep outdoor areas free of restaurant equipment and supplies. Tenant shall keep upstairs attic area clear and accessible. The Landlord may at times require the Tenant to make repairs such as painting, carpentry, plumbing, and other types of repairs to the leased premises during the time of the Lease. These repairs will be made within thirty (30) days of any written request for the reason of aesthetics or five (5) days for health and safety reasons. If the repairs VA are not made within the stated timeframe, the Landlord may make the repairs and charge the costs to the Tenant. Section 9.03 Landlord's Repair and Maintenance Responsibilities The Landlord agrees during the term thereof, and any extension or renewal thereof, to maintain the'exterior of the building, grounds outside the building, air conditioning and heating equipment, Christmas lights on exterior of building, sewer lines leaving the building beginning after the two grease traps located on the west and south sides of the building, and the interior electrical facilities, with exception of the lighting fixtures, bulbs, and ballasts. The Landlord will be responsible for ensuring the exterior of the building is free of insects and rodents. Section 9.04 Mechanic's Liens a. Tenant agrees to pay promptly for all labor done or materials furnished for any work or repair, maintenance, improvements, alterations, or addition done by Tenant in connection with the leased premises, and to keep and to hold the leased premises free, clear, and harmless from all liens that could arise by reason of any such work. If any such lien shall at any time be filed against the leased premises, Tenant shall either cause the same to be discharged of record within twenty (20) days after the date of filing the same, or if Tenant, in its discretion and in good faith, determines that such lien should be contested, Tenant shall furnish such security as may be necessary or required to prevent any foreclosure proceedings against the leased premises during the pendency of such contest. If Tenant shall fail to discharge such lien within such period, or fails to furnish such security, then in addition to any other right or remedy, Landlord may, but shall not be obligated to discharge the same, either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit in court, or by giving security or in such other manner as is or may be prescribed by law. Tenant shall repay to Landlord on demand all sums disbursed or deposited by Landlord pursuant to the foregoing provisions hereof, including Landlord's costs, expenses, and reasonable attorney's fees incurred by Landlord in connection therewith. Nothing contained herein shall imply any consent or agreement on the part of Landlord to subject Landlord's interest in the leased premises to liability under any mechanic's lien law. b. Landlord shall at all times have the right to post and to keep posted on the leased premises notices provided for under the laws of the State of California for the protection of the leased premises from mechanic's liens or liens of a similar nature. Section 9.05 Damage or Destruction by Fire or Other Casualty a. Should the building in which the leased premises are located be damaged by fire or other casualty, then if damage is so slight as not to interfere substantially with Tenant's use of the leased premises, Tenant shall notify Landlord. The Tenant shall immediately undertake to make repairs to the building and improvements and restore the same to substantially the same condition as they were in immediately preceding such damage or destruction. Such work shall be done as rapidly as conditions permit and there shall not be abatement of rent. b. Should there be total or substantial destruction in such building and improvements so that the leased premises are rendered unusable, either in whole or in part, either party shall have the right to terminate this Lease by mutual agreement of both parties. C. Unless the parties to the Lease can and do agree forthwith upon the extent and amount of such damage or destruction, the parties shall mutually agree to the selection of a certified architect, registered engineer, or licensed building contractor who shall determine such matters, and the determination of such architect, engineer or contractor shall be final and binding upon the parties to this Lease. d. Tenant shall repair or rebuild such building and improvements to.substantially the same condition that they were in immediately preceding such damage or destruction, unless both parties agree to the termination of the Lease. e. Tenant, at its sole expense, shall procure and maintain a policy or policies of business interruption insurance in sufficient amounts to cover the Annual Minimum Rent hereunder for a period of not less than one (1) year during any casualty loss and restoration of the Premises while this Lease remains in force. ARTICLE X CONDEMNATION Section 10.01 Total Condemnation If during the term thereof there shall be a "total taking" by a public authority under the power of eminent domain, then the leasehold estate of Tenant in the leased premises shall cease and terminate as of the date actual physical possession thereof shall be taken. "Total taking" is defined to be the taking of the entire leased premises under the power of eminent domain, or taking of so much of the leased premises as to prevent or substantially impair the conduct of Tenant's business therein. 9 1 Section 10.02 Partial Condemnation If, during the term hereof there shall be a partial taking of the leased premises, this Lease shall terminate as to the portion of the leased premises taken upon the date which actual possession of the portion of the leased premises is taken pursuant to eminent domain proceedings, but this Lease shall continue in force and effect as to the remainder of the leased premises. The rental payable by Tenant for the balance of the term shall be abated in the ratio that the square footage of the floor area of the leased premises taken bears to the total floor area of the leased premises at the time of such taking., "Partial taking" is defined to be the taking of only a portion of the leased premises under the power of eminent domain, which does not constitute a "total taking" as defined above in Section 10.01. ARTICLE XI SUBORDINATION Section 11.01 Liens to Which Lease is Subordinate This Lease, at Landlord's option, shall be subordinate to any ground lease, mortgage, deed of trust, or any other hypothecation or security now or hereafter placed upon the real property of which the premises are a part, and to any and all advances made on the security thereof, and to all renewals, modifications, consolidations, replacements, and extensions thereof. Notwithstanding such subordination, Tenant's right to quit possession of the premises shall not be disturbed if Tenant is not in default, and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee, or ground lessor shall elect to have this Lease prior to the lien of its mortgage, deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust, or ground lease, whether this Lease is dated prior or subsequent to the date of said mortgage, deed of trust, or ground lease, or the date or recording thereof. Tenant agrees to execute any documents required to effectuate an attornment, a subordination, or to make this Lease prior to the lien of any mortgage,-deed of trust, or ground lease, as applicable. Tenant's failure to execute such documents within twenty (20) days after written demand shall constitute a material default by Tenant hereunder, or, at Landlord's option, Landlord shall execute such documents on behalf of Tenant as Tenant's attorney -in -fact. Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney -in -fact and in Tenant's name, place, and stead, to execute such documents in accordance with paragraph 11.01. Section 11.02 Statement of Modifications Tenant shall at any time, and from time to time, upon not less than twenty (20) days prior written request by Landlord execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if there shall have been modifications, that the Lease is in full force and effect as 10 modified and stating the modification or modifications), and the dates to which the fixed rent and other charges or payments have been paid in advance. It is expressly understood and agreed that any such statement delivered pursuant to this paragraph may be relied upon by Landlord, or by any prospective purchaser, mortgagee, assignee of any mortgagee, or the trustee or beneficiary of any deed of trust placed upon the leased premises. ARTICLE XII INDEMNITY AND INSURANCE Section 12.01 Responsibility for Acts of Tenant a. Landlord shall not be liable at any time for any loss, damage, or injury to the property or person of any person whomsoever at any time occasioned by or arising out of any act or omission of Tenant, or of anyone holding under Tenant or the occupancy or use of the leased premises or any part thereof by or under Tenant, or directly or indirectly from any state or condition of the leased premises or any part thereof during the term of this Lease. b. Any provisions hereof to the contrary notwithstanding and irrespective of any insurance carried by Tenant for the benefit of Landlord, Tenant agrees to protect, indemnify, and hold Landlord and the leased premises harmless from any and all damages or liabilities of whatsoever nature arising under the terms of this Lease, or arising out of or in connection with the operation carried on by Tenant on, or the use or occupancy of, the leased premises. Section 12.02 Commercial General Liability and Property Damage Insurance Tenant shall carry and maintain during the entire term hereof, at Tenant's sole cost and expense, broad form Commercial General liability insurance with a combined single limit of not less than $1,000,000, insuring against any and all liability of Tenant with respect to the leased premises, or arising out of the maintenance, use, or occupancy thereof. Tenant shall carry and maintain during the entire term hereof, at Tenant's sole cost and expense, broad form Liquor Liability Insurance with a combined single limit of not less than $2,000,000, insuring against any and all liability of Tenant with respect to the leased premises, or arising out of the use or occupancy thereof. C. Endorsements shall be obtained so that each policy described above contains the following two provisions: 1. Additional Insured: "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with the City ". 2. Primary Coverage: "The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City ". d. Not more frequently than each two (2) years, if, in the opinion of Landlord's lender or of the insurance broker retained by Landlord, the amount of Commercial General liability, Liquor Liability, and Property Damage insurance coverage at that time is not adequate, Tenant shall increase the insurance coverage as required by either Landlord's lender, or Landlord's insurance broker. e. All policies of insurance to be carried and maintained by Tenant hereunder shall be issued by companies having not less than A.M. Best's A -, VII rating for California Admitted Carriers. Coverage by California Non - Admitted Carriers will be considered on a case -by -case basis and may be allowed at the sole discretion of Landlord with a minimum A.M. Best's rating.of A -, X. All such policies shall contain ,a provision that Landlord, although named as an Additional Insured, shall nevertheless be entitled to recovery under such policies of insurance, which certificate shall, among other things, designate, the company writing the same, and the number, amount, and provisions thereof. Upon Landlord's written request, duplicate copies of such certificates of insurance shall be delivered to Landlord's mortgagee. f. The above insurance policies shall contain a provision that such policies shall not be cancelled or terminated without forty -five (45) days prior notice from the insurance company to Landlord. Tenant agrees that on or before ten (10) days prior to expiration of any insurance policy, Tenant will deliver to Landlord written notification in the form of a receipt or other similar document from the applicable insurance company that said policy or policies have been renewed, or deliver certificates of insurance coverage from another good and solvent insurance company for such coverage. g. Landlord shall maintain Property Damage Insurance coverage during the entire term hereof in a coverage amount of Landlord's determination. Landlord shall be the sole loss payee and, in the event of a total loss of the premises, shall at its sole discretion determine whether to utilize any insurance proceeds to rebuild the premises or to terminate the lease as per section 9.05 of this lease. Tenant shall have no rights to any proceeds or 12 payments resulting from Landlord's Property Damage Insurance coverage. Tenant also acknowledges that said policy of insurance shall not insure Tenant's personal or business property, nor Tenant's trade fixtures or ° equipment. Tenant shall have no rights to any proceeds or payments resulting from Landlord's insured coverage of Boiler and Machinery under Landlord's Property Damage Insurance coverage. h. No use shall be made or permitted to be made of the said premises, nor acts done which will cause a cancellation of any insurance policy covering said building, or any part thereof, nor shall Tenant sell, or permit to be kept, used, or sold, in or about said premises, any article which may be prohibited by the standard form of fire insurance policies. Tenant shall, at its sole cost and expense, comply with any and all requirements, pertaining to said premises, or any insurance organization or company, necessary for the maintenance of reasonable fire and commercial general liability insurance, covering said building and appurtenances. ARTICLE XIII ASSIGNMENT AND SUBLEASING Section 13.01 Landlord's Consent Required Tenant shall not assign, mortgage, or hypothecate this Lease in whole or in part, not sublet all or any part of the leased premises, without the prior written consent of Landlord in each instance. This prohibition against assigning or subletting shall be construed to include a prohibition against any assignment or subletting by operation of law. Landlord's consent will not unreasonably be withheld. Tenant agrees to reimburse Landlord for any out -of- pocket expense and fees involved with any Lease Assignment or Sublease. Section 13.02 No Waiver The consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity for such consent to any subsequent assignment or subletting. If this Lease be assigned, or if the leased premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may collect rent from the assignee, subtenant, or occupant, and apply the new amount collected to the rent herein reserved, but no such assignment, subletting, occupancy, or collection shall be deemed a waiver of this covenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant. Section 13.03 Liability of Tenant Notwithstanding any assignment or sublease, Tenant shall remain fully liable on this Lease and shall not be released from performing any of the terms, covenants, and conditions of this Lease. 13 ARTICLE XIV DEFAULT AND REMEDIES Section 14.01 Tenant's Insolvency, Bankruptcy, or Dissolution a. This Lease shall be deemed repudiated and breached by Tenant if, during the term of this Lease: 1. A petition to have Tenant adjudicated as bankrupt, or a petition for reorganization or arrangement under any of the laws of the United States relating to bankruptcy be filed by Tenant, or be filed against Tenant, and if so filed against Tenant, not be dismissed within ninety (90) days from the date of such filing. 2. The assets of Tenant or the business conducted by Tenant on the leased premises be assumed by a trustee or other person pursuant to any judicial proceedings. 3. Tenant becomes insolvent or makes an assignment for the benefit of creditors, or commits any act of bankruptcy. b. Tenant expressly agrees that Landlord may at its election terminate this Lease in the event of the occurrence of any of the contingencies hereinabove described by giving not less than ten (10) days written notice to Tenant and when so terminated, Landlord may re -enter the leased premises, and the leasehold interest created by this Lease shall not be treated as an asset of Tenant's estate. It is further expressly understood and agreed that Landlord shall be entitled upon such re -entry, notwithstanding any other provisions of this Lease, to exercise such rights and remedies, and to recover from Tenant as damages for loss of the, bargain resulting from such breach, and not as a penalty, such amounts as are specified in Section 14.03, unless any statute or rules or law governing the proceeding in which such damages are to be proved shall lawfully limit the amount of such claims capable of being so proved, in which case Landlord shall be entitled to recover as and for liquidated damages, the maximum amount which may be held under any such statute or rule of law. Section 14.02 Default The occurrence of any of the following shall constitute a material default and breach of this Lease by Tenant: a. Any failure by Tenant to pay the rent or to make any other payment required to be made by Tenant under this Lease (when that failure continues for ten (10) days after written Notice to Quit or Pay Rent is given by Landlord to Tenant). 14 b. The abandonment or vacation of the premises by Tenant (the absence of Tenant from or the failure by Tenant to conduct business on the premises for a period in excess of fourteen (14) consecutive days, shall constitute an abandonment or vacation for purposes of this Lease). C. A failure by Tenant to observe and perform any other provisions of this Lease to be observed or performed by Tenant, when that failure continues for ten (10) days after written notice of Tenant's failure is given by Landlord to Tenant; provided, however, that if the nature of the default is such that it cannot reasonably be cured within a ten (10) day period, Tenant shall not be deemed to be in default if Tenant commences that cure within the ten (10) day period and thereafter diligently prosecutes it to completion. d. Tenant's bankruptcy, insolvency, or dissolution as provided in Section 14.01 above. Section 14.03 Remedies On any breach, default, or abandonment, Landlord may exercise any of the following rights after the periods of time stated in Section 14.02: a. Immediately re -enter and remove all persons and property from the leased premises, storing the personal property in a public warehouse or elsewhere at the cost of, for the account of, and at the risk of Tenant. In the event of any such re -entry by Landlord, Landlord may make any repairs, additions, or improvements in, to, or upon the leased premises which may be necessary or convenient; provided, however, that Landlord shall be entitled to recover from Tenant the expense of such repairs or alterations only to the extent necessary to restore the building to the condition it was in on the commencement of the term of the Lease, reasonable wear and tear excepted. In such instance, the Lease will be terminated, and Landlord will be entitled otherwise to recover all damages allowable under the law of this Lease. b. To collect by suit or otherwise each installment of rent or other such sum as it becomes due hereunder, or to enforce, by suit or otherwise, any other term or provision hereof on the part of Tenant required to be kept or performed, it being specifically agreed that all unpaid installments of rent or other sums shall bear interest at the highest legal rate from the due date thereof until paid. C. Terminate this Lease, in which event Tenant agrees to immediately surrender possession of the leased premises, and to pay to Landlord, in addition to any other remedy Landlord may have, all damages Landlord may incur by reason of Tenant's default, including the cost of recovering the leased premises. 15 Section 14.04 Measure of Damage The damages Landlord may recover include the worth at the time of award of the amount by which the unpaid balance for the balance of the term after the time of award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided. Section 14.05 No Waiver of Default Landlord's or Tenant's failure to take advantage of any default or breach of covenant on the part of Landlord or Tenant shall not be, or be construed as a waiver thereof, nor shall any custom or practice which may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of Landlord or Tenant to insist upon the performance by Landlord or Tenant of any term, covenant, or condition hereof, or to exercise any rights given Landlord or Tenant on account of any such default. A waiver of a particular breach, or default, shall not be deemed to be a waiver of the same or any other subsequent breach or default. The acceptance of rent hereunder shall not be construed to be, a waiver of any term, covenant, or condition of this Lease. Section 14.06 Remedies Cumulative The rights, powers, elections, and remedies of Landlord contained in this Lease shall be construed as cumulative and no one of them is or shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and. the exercise of one or more rights, power, elections, or remedies shall not impair Landlord's right to exercise any other. Section 14.07 Landlord's Rights to Cure Default If Tenant shall be in default in the performance of any covenant on its part to be performed under this Lease, then, after notice and without waiving or releasing - Tenant from the performance thereof, Landlord may, but shall not be obligated so to do, perform any such covenant, and in exercising any,such right, pay necessary and incidental costs and expenses in connection therewith. All sums so paid by Landlord, together with interest thereon at the rate of ten percent (10 %) per annum, shall be deemed additional rent and shall be payable to Landlord on the next rent paying day. ARTICLE XV LANDLORD'S GENERAL PROTECTIVE PROVISIONS Section 15.01 Surrender at End of Term Tenant shall peaceably give up and surrender the leased premises and every part thereof to Landlord at the termination of the term of this Lease in as good a condition and repair as reasonable use and wear thereof will permit. 16 Section 15.02 No Meraer — Termination of Subtenancies The voluntary or other surrender of this Lease by Tenant, or mutual cancellation thereof, shall not work a merger and shall, at the option of Landlord, terminate all of any existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment to Landlord of any or all subleases or subtenancies. Section 15.03 Release of Landlord After Sale In the event of a sale or conveyance by Landlord of the leased premises, Landlord shall be released from any future liability upon any of the covenants or conditions, expressed or implied, in favor of Tenant, and in such event, successor in interest to Landlord will assume all of Landlord's rights and responsibilities under this Lease. Section 15.04 Landlord's Right to Inspect Landlord shall be entitled, at all reasonable times, to go on the leased premises for the purpose of inspecting the leased premises, or for the purpose of inspecting the performance by Tenant of the terms and conditions of this Lease, or for the purpose of posting and keeping posted thereon notices of non - responsibility for any construction, alteration, or repair thereof, as required or permitted by any law or ordinance. ARTICLE XVI GENERAL PROVISIONS Section 16.01 Conditions and Covenants All of the provisions of this Lease shall be deemed as running with the land, and construed to be "conditions" as well as "covenants" as though the words specifically expressing or imparting covenants were used in each separate provision. Section 16.02 No Waiver of Breach No failure by either Landlord or Tenant to insist upon the strict performance by the other of any covenant, agreement, term, or condition of this Lease, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such covenant, agreement, term, or condition. No waiver of any breach shall affect or alter this Lease, but each and every covenant, condition, agreement, and term of this Lease shall continue in full force and effect with respect to any other existing or subsequent breach. Section 16.03 Time of Essence Time is of the essence of this Lease and of each provision 17 Section 16.04 Computation of Time The time in which any act provided by this Lease is to be done is computed by excluding the first day and including the last, unless the last is a Saturday, Sunday, or holiday, and then it is also excluded. The term "holiday' shall mean all holidays specified in Sections 6700 and 6701 of the Government Code. Section 16.05 Unavoidable Delay — Force Maieure If either party shall be delayed or prevented from the performance of any act required by this Lease by reason of Acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws, or regulations or other cause, without fault and beyond the reasonable control of the party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided, however, nothing in this section shall excuse Tenant from the prompt payment of any rental or other charge required of Tenant except as may be expressly provided elsewhere in this Lease. Section 16.06 Successors in Interest Each and all of the covenants, conditions, and restrictions in this Lease shall inure to the benefit of and shall be binding upon the successors in interest of Landlord, and subject to the restrictions of Article XIII, the authorized encumbrancers, assignees, transferees, subtenants, licensees, and other successors in interest of Tenant. The Tenant's interest in this Lease Agreement shall not be transferred or sold to any other party without the approval of the Landlord. Section 16.07 Entire Agreement This Lease contains the entire agreement of the parties with respect to the matters covered by this Lease, and no other agreement, statement or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Lease shall be binding or valid. This lease will supersede all prior leases between Tenant and Landlord related to this property. Section 16.08 Partial Invalidity If any term, covenant, condition or provision of this Lease is held by a court of, competent jurisdiction to invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated. MI Section 16.09 Relationship of Parties Nothing contained in this Lease shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent, or of partnership or of joint venture, or of any association between Landlord and Tenant, and neither any provisions contained in this Lease nor any acts of the parties shall be deemed to create any relationship between Landlord and Tenant, other than the relationship of Landlord and Tenant. Section 16.10 Interpretation and Definitions The language in all parts of this Lease shall in all cases be simply construed according to its fair meaning and not strictly for or against Landlord or Tenant. Unless otherwise provided in this Lease, or unless the context otherwise requires, the following definitions and rules of construction shall apply to this Lease: a. In this Lease, the neuter gender includes the feminine and masculine, and the singular number includes the plural, and the word "person" includes corporation, partnership, firm, or association whenever the context so requires. b. "Shall," "will," and "agrees" are mandatory; "may" is permissive. C. The captions contained herein are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or. aid in the interpretation, construction, or meaning of the provisions of this Lease. d. All references to the term of this Lease shall include any extensions of such term. e. Leased premises shall include the improvements to the land and outside eating areas. f. Parties shall include the Landlord and Tenant named in this Lease. g. As used herein, the word "sublessee" shall mean and include in addition to a sublessee and subtenant, a licensee, concessionaire, or other occupant or user of any portion of the leased premises or buildings or improvements thereon. 19 Section 16.11 Attorney's Fees Should either party commence any legal action or proceeding against the other based on this Lease, the prevailing party shall be entitled to an award of reasonable attorney's fees. Section 16.12 Interest The total of rent payments, which are five (5) or more days late, shall be assessed a late payment penalty of five percent (5 %) thereof each calendar month that such payment is late. Section 16.13 Modifications This Lease is not subject to modification except in writing executed by all parties thereto. Section 16.14 Notices a. All notices, demands, or requests from one party to another may be personally delivered or sent by mail, certified or registered, postage prepaid, to the addresses stated in this section, and shall be deemed to have been given at the time of personal delivery, or at the end of the second full day following the date of mailing. b. All rents and other sums payable by Tenant to Landlord, or notices, demands, or requests from Tenant to Landlord, shall be delivered in person, or mailed to Landlord at: City of Poway Attn: Director of Administrative Services P.O. Box 789 Poway, CA 92074 C. All notices, demands, or requests from Landlord to Tenant shall be given to Tenant at the leased premises. d. Each party shall have the right, from time to time, to designate a different address by written notice given in conformity with this section. 20 Section 16.15 Holding Over In the event that Tenant shall hold over after expiration of the term of this Lease with consent, expressed or implied, of Landlord, such holding over shall be deemed merely a tenancy from month -to- month, on the same terms, covenants, and conditions so far as applicable as herein contained until such tenancy is terminated in a manner prescribed by law. ARTICLE XVII Section 17.01 EXECUTION Entire Lease This Lease shall constitute the entire understanding between Landlord and Tenant relating to the terms and conditions of the Lease. IN WITNESS WHEREOF, the parties hereto have duly executed this Lease on the date first above written. CITY OF POWAY HAMBURGER FACTORY, INC. Q �� 1-0216:L Cleta Spear, Pre ident Philip Spear, Tr sur APPROVED AS TO FORM: Lisa Foster, City Attorney 21 C�TY POWAY�DOCUMENTu•" HAMBURGER FACTORY AMENDMENT NO. 2'TO' LEASE AGREEMENT On the_ 20 day of Ju l y. , 2004, the parties hereto amend that certain lease dated October 1, 1992, by and between the City of Poway ( "Landlord ") and Joseph and Lisa Lucidi subsequently assigned to Hamburger Factory, L.L.C. ( "Tenant') and amended by Amendment No. 1 to Lease Agreement on January 6, 1999: Lease Hamburger Factory, L.L.C., a California limited liability company, incorporated on June 13, 2002, as Hamburger Factory, Inc. Hamburger Factory, Inc., _agrees to perform all of the terms and conditions imposed upon the Tenant by this Lease, as amended. As of the date of this Amendment No: . 2 to ,Lease Agreement, "Tenant' shall be Hamburger Factory, Incorporated. 2. Section 4.02 Cost.of Living Adjustment Section 4.02 is hereby amended to read as follows: The minimum monthly provided for. in Section 4.01 as of March 1 2004, shall be ; Four.. Thousand Four Hundred Sixty -Four Dollars and Ninety -Four Cents ($4,464.94). The minimum rent provided.for in Section 4.01 shall be adjusted. effective October 1 of each year of the term hereof ( "the Adjustment Date ") and during any extended term hereof, in accordance with the terms of this section. The base for computing the adjustment is the Consumer Price Index's Pacific Cities and U.S. City Average, All Items For All Urban Consumers, Base Year December 1996 = 100 for West -B /C (Cities less than 1,500,000) published by the United States Department of Labor, Bureau of Labor Statistics. The base month for all increases is July, -1997, at which time the applicable index was 10`1.3. Each year the minimum rent shall be increased effective October 1 by dividing the July index of the current year by the July, 1997 . index. That productsshall then be multiplied times the then current minimum monthly rent. The sum, which results from the calculation, shall be rent,as adjusted by the cost of living for the following twelve months commencing October 1: It shall be the obligation of the Landlord to calculate the rent increase annually and provide the rent increase .to,.Tenant. In the.-event that the Landlord fails to provide the, rent ,increase to, Tenant - by October 1 t, Tenant shalt continue to pay rent at thetrate payable in the previous month until notice is received. Within fifteen (15) days after Tenant's receipt of the notice, Tenant shall pay to Landlord any and all arrearage due T between October 1 and the,date of;paymenf ofthe arrearage. Landlord's failure to "provide notice of the ,rent increase shall not constitute waiver thereof and Landlord:may; .,at;any time during the term;,of the Lease, adjust the, rentas provided herein, give notice of -the rent increase to Tenant, and demand that Tenant pay the arrearage as provided herein. The cost of living adjustment shall in no event exceed six percent (6 %) annually. If the Index has changed, the Index. shall be converted in accordance with the Conversion Factor published by the United States Department of Labor, Bureau of Statistics. If the Index is discontinued or revised during the term, such other govern ment,'index or computation with which it is replaced shall be used in order to obtain °substantially the same result as would be obtained if the index had been discontinued or revised. I Section 6.04 Restriction of Tenant's Use h. The tenant will prohibit smoking of "a 'tobacco product inside the restaurant and within 20 feet of an exit, entrance, or operable window. Tenant will ensure °that signage is displayed in public view. All other terms and conditions of the Lease not in conflict herewith shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Lease Amendment to be duly executed on the respective dates set forth opposite their signatures. Dated: July 20, 2004 Dated: fl Zt� y i CITY OF POWAY By l ames; L. Bowersox ity Manager HAMBURGER FACTORY, INC. By: C w Cleta Spear President r ' CITY OF POWAY DOCUMENT HAMBURGER FACTORY AMENDMENT`NO. 2'TO LEASE-AGREEMENT On the 20th day of JulY , 2004, the parties hereto amend that certain lease dated October 1, '1.992, by and between the City of Poway ("Landlord") and Joseph and Lisa Lucidi, subsequently assigned to Hamburger Factory, L.L.C. ( "Tenant ') a"nd amended by Amendment No. 1 to Lease Agreement on January 6, 1999: 1. Lease Hamburger Factory, L.L.C., a California limited liability company, incorporated on June 13, 2002, as Hamburger Factory, Inc. Hamburger Factory, Inc., agrees to perform all of the terms and conditions imposed upon the' Tenant by 'this Lease, as amended. As of the date of this Amendment No. 2 to Lease Agreement, "Tenant" shall be Hamburger Factory, Incorporated. 2. Section 4,02 Cost of "Living Adiustment Section 4.02 is hereby amended to read as follows: The minimum, monthly rent provided for in Section 4.01 as of March 1, 2004, shall be Four Thousand Four Hundred •Sixty-Four Dollars and Ninety -.Four Cents ($4,464.94). The minimum rent provided for in Section 4.01 shall be adjusted effective October 1 of each year of the term hereof ( "the Adjustment Date') and during any extend_ ed term hereof, in accordance with the terms of this section. The base for computing the adjustment is the Consumer Price Index's Pacific Cities and U.S. City Average, All Items For All Urban Consumers, Base Year December 1996 = 100 for West -B/ C (Cities less than 1,500,000), published by the United States Department of Labor, Bureau of Labor Statistics. The base month for all increases is July, 1997, at which time the applicable index was 101.3. Each year the minimum rent shall be increased effective October 1 by dividing the July index of the current year by the July, 1997 index. That product shallthen'be multiplied times the base rent of $3;947.60. The sum, which results from the calculation, shall be rent as adjusted by cost of living for the following twelve months commencing October 1. It shall be the obligation of the Landlord to calculate the rent increase annually and ;provide the rent increase to Tenant. In the event that the Landlord fails to provide the rent 'increase; to Tenant by October 15r Tenant shall continue to pay rent at the, rate payable in the previous month until notice is received. Within fifteen, (15) days after Tenant's receipt of the notice, Tenant shall pay to Landlord any and all arrearage due between October 1 and the date of payment of the arrearage. Landlord's failure to provide notice of the rent increase shall not constitute waiver thereof and Landlord may, at any time during the term of the Lease, adjust the rent as provided herein, give notice of the rent increase to Tenant, and demand that Tenant pay the arrearage as provided herein. The cost of living adjustment shall in no event exceed six percent (6 %) annually. If the Index has changed, the Index shall be converted in accordance with the Conversion Factor published by the United States Department of Labor, Bureau of Statistics. If the Index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had been discontinued or revised. 3. Section 6.04 Restriction of Tenant's Use h. The tenant will prohibit smoking of a tobacco product inside the restaurant and within. 20 feet of an exit, entrance, or operable window. Tenant will ensure that signage is displayed in public view. All other terms and conditions of the Lease not in conflict herewith shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Lease Amendment to be duly executed on the respective dates set forth opposite their signatures. Dated: 0 Dated: qW c y CITY OF POWAY Ja es L. Bowersox Ci Manager By: �" 1" Cleta Spear President HAMBURGER FACTORY, INC. -_ l Lrenows AGR ffkm T SBA Loan #-. GP 263W740'00'SD Amount: $300;000:00 Lender. GE Capital Sorell Business Finance Corporation 635 Maryville Center Drive; Suite 120 St. Louis, MO 63141 Borrower (Lessee): Hamburger Factory, LLC Lease Dated: October 1, 1992, Approved January 12, 1993 and Assigned and ratified January 5,;1999. Premises: 14122 Mldland ;Road. Poway, CA192064 Lessor certifies the Lender and:SBA as.:follows: 1. Lessor agrees that ln'the event of any default by tenant under the lease, it will not terminate the lease without giving Lender notice of the institution of such action at the:above address and Lender shell have;the right to cure such default during the applicable cure period provided to Tenant under the lease. 2. Lessor. subordinates and waives as to.Lender: any and all liens, including distraint and:le 49ainstthe property of Borrower.in the demised premises under the lease, in which..propeRy Lender has or will have a security interest, given to Lender by Borrower as collateral for the loan. 3. Lessor shall grant access to the premises to Lender for purposes of removal by Lender of any property subject to Lenders security Interest with the understanding that thetander'shali„ have the obilgation'to.repairany damage,to premises or the Complex (as defined inthe lease) during removal'and Lender shall remove all such property within tan (10) days after termination'of the lease. Lender agrees to pay1ossor pro -rata rent,dudng: this, period at the rental rate set forth in the Lease Agreement.dated Octobers, 1992, approved January 12, 1993,.assigned and ratified January S. 1999. by and between City of Poway and Hamburger Factory LLC. 4. Lessor cardfles that the undersigned has full authority to execute this agreement LESSOR: City of Poway P. O. Box789 Poway. cA 9=64 Dated ASSIGNMENT OF LEASE fON`4V A L'UEiiRECEIVED, I, the unaerstgna OSEP1.1 G. LUCIDI AND LISA LUCIDI Mal hereby assign, transfer and Set over ,u nto: HAM BU RG ERjFAGSO RY,. CLC , :.�Cel :fcrnie limited lisbili -' - -- " tyncompeny all, mye ;ng M, title endi nteresF in and t0! .hat; certain lease,dated J anuary 12 ,1''993' b'y and between CITY OF POWAY. as Lessor; and JOSEPH LUCIDI AND LISA LUCIOI.-as Lessee, :cover, ng` that t certain - property, situated in the City of Poway, County of:SAN DIEGO. State. of California and particularly described�aa: HAMBURGEn "FACTORY,' 14122 Mltlland Rood, 'Poway, CA 92004 'Tdgether' with all my right, and interest in end'to prepaid rent and /or security deposit on said lease. If any. ACCEPTANCE OF ASSIGNMENT OF LEASE We /1, HAMBURGER FACTORY, -LLC, a California limited (lability company do(es) hereby accept the above assignment and agree to be bound by -,all of the conditions and covenants contained In said lease, and I promise to pay the rent . therein, reserved In the manrier>,end', at the, times therein specified. Dated this 91h day of Novembgr. 1998. C1e taL. Spear, -lam fndivldua�ONSENT`TO ASSIGNMENT OF LEASE VWe CITY OF POWAY'Lessor, named in the. foregoing mentioned' lease, do hersby� cons to the assignment as descnbed,above, on the understa"n iing tnetdall this terms. conditlons,'provlsions. end covenants of said lease shall remain'. and continue In full, force and effeoi. I/y1/e elan hereby certify .the "following: " oni' , paid in, advance in the)sum;.of si -0- is held by',me, ' A security deposit I- the sum of 9" ' -7- .is held by ms• Rem"in' the amount df 3 - :has p'eid to 1- 31 -99, (date). Common arse maintenance fees 'in, the emountof g n' /a , .have been paid.to / a (date) R and.,are billed on a.quarTahV basis. : eal'prboarty taxes In the amount`of. 9 n/a, have been paid to. n/a (date) ind'.are wiled on an . annual basis, Ind ur3r pays quar -nder the laaae irn'the amount of 5 in LUi1 ,. and hes.baen paid to (Clare) and bllled '.on quert a prly besi ' Rent is to be paid to :City ofPowa 1,33.25 Civic Center Drive, Poway, CA 92064 �at Telephone No. THS ASSIGNMENT OF LEASE SHALL ONLY BE EFFECTIVE AS OF CLOSE OF ESCROW NO. 41678 -8 Dated this 6th day of January 1999 Jain s L. Bowersox, City Manager_ Lessor Cit - of Poway HAMBURGER FACTORY, LLC, a California limited liability company, LEASE AMENDMENT NO. 1 (1998) FOR HAMBURGERFACTORY 14122 MIDLAND ROAD POWAY, CALIFORNIA 92064 0 9 HAMBURGERFACTORY AMENDMENT NO. 1 TO LEASE AGREEMENT The parties hereto amend that certain lease dated January 12, 1993 ( "Lease ") by and between the City of Poway ( "Landlord ") and Joseph Lucidi and Lisa Jucidi ( "Tenant ") as follows. 1. Lease Joseph Lucidi and Lisa Lucidi have assigned the Tenant's interest herein to Hamburger Factory, LLC, a California limited liability company. Hamburger Factory, LLC, agrees to perform all of the terms and conditions imposed upon the Tenant by this Lease, as amended. Guarantors executing an Individual Personal Guaranty of the Lease as amended agree to pay on demand any sum due under the Lease. 2. Section 2.01 Nonexclusive Right To Use Common Areas Section 2.01 is hereby amended to read as follows: "Tenant and its authorized representatives and invitees shall have the nonexclusive right to use the common areas, including all parking spaces, delineated on Exhibit "A" attached hereto, with others who are entitled to use the common areas (including the public using nearby public property and facilities), subject to Landlord's rights set forth in Section 2.02." 3. Section 4.02 Cost of Living Adaustment Section 4.02 is hereby amended to read as follows: "The minimum monthly rent provided for in Section 4.01 as of October 1, 1997, was Three Thousand Seven Hundred Ninety Seven Dollars and Sixty Cents ($3,797.60). The minimum rent provided for in Section 4.01 shall be adjusted effective October 1 of each year of the term hereof ( "the Adjustment Date ") and during any extended term hereof, in accordance with the terms of this section. "The base for computing the adjustment is the Consumer Price Index's Pacific Cities and U.S. City Average, All Items For All Urban Consumers, Base Year December 1996 = 100 for West -B /C (Cities less than 1,500,000), published by the United States Department of Labor, Bureau of Labor Statistics. The base month for all increases is July, 1997, at which time the applicable index was 101.3. Each year the minimum rent shall be increased effective October 1 by dividing the July index of the current year by the July, 1997 index. That product shall then be multiplied times the base rent of $3,797.60. The sum which results from the calculation shall be the rent as adjusted by the cost of living for the following twelve months commencing October 1. • r Lease Amendment 1 Hamburger Factory, LLC Page 3 "By way of example: Adiustment Commencing October, 1998 Base Rent = $3,797.60 July, 1997 Base Index = 101.3 July, 1998 Index = 102.3 102.3 _ 101.3 = 1.01 1.01 x $3,797.60 = $3,835.58 "In accordance with the calculation set forth hereinabove, the rent for the period October 1, 1998 through September 20, 1999 shall be Three Thousand Eight Hundred Thirty Five Dollars and Fifty Eight Cents ($3,835.58). Tenant agrees to pay any and all arrearage resulting from this adjustment of the rent as of October 1, 1998, not later than January 30, 1999. "It shall be the obligation of the Landlord to calculate the rent increase annually and provide the rent increase to Tenant. In the event that the Landlord fails to provide the rent increase to Tenant by October 1 st, Tenant shall continue to pay rent at the rate payable in the previous month until notice is received. Within fifteen (15) days after Tenant's receipt of the notice, Tenant shall pay to Landlord any and all arrearage due between October 1 and the date of payment of the arrearage. Landlord's failure to provide notice of the rent increase shall not constitute waiver thereof and Landlord may, at any time during the term of the Lease, adjust the rent as provided herein, give notice of the rent increase to Tenant, and demand that Tenant pay the arrearage as provided herein." "The cost of living adjustment shall in no event exceed 5% annually until October 2002 or six (6) percent annually thereafter. If the Index has changed, the Index shall be converted in accordance with the Conversion Factor published by the United States Department of Labor, Bureau of Statistics. If the Index is discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain to substantially the same result as would be obtained if the Index had been discontinued or revised. 4. Section 6.02 Section 6.02 is hereby amended to read as follows: Lease Amendment 1 Hamburger Factory, LLC Page 4 5. "Tenant shall operate its business only during the following days and between the following hours: Sunday - Thursday: Friday and Saturday: Section 14.02 Default 6:00 a.m. to 8:00 p.m. 6:00 a. m. to 9:00 p. m. Section 14.02 is hereby deleted and amended to read as follows: "The occurrence of any of the following shall constitute a material default and breach of this lease by Tenant: (a) Any failure by Tenant to pay the rent or to make any other payment required to be made by Tenant under this lease (when that failure continues for three (3) days after written Three (3) Day Notice to Quit or Pay Rent is given by Landlord to Tenant). (b) The abandonment or vacation of the Premises by Tenant (the absence of Tenant from or the failure by Tenant to conduct business on the Premises for a period in excess of fourteen (14) consecutive days shall constitute an abandonment or vacation for purposes of this lease). (c) A failure by Tenant to observe and perform any other provision of this lease to be observed or performed by Tenant, when that failure continues for ten (10) days after written notice of Tenant's failure is given by Landlord to Tenant, provided, however, that if the nature of that default is such that it cannot reasonably be cured within a ten (10) day period, Tenant shall not be deemed to be in default if Tenant commences that cure within the ten (10) day period and thereafter diligently prosecutes it to completion. (d) Tenant's bankruptcy, insolvency, or dissolution as provided in Section 14.01 above." 6. Section 14.03 Remedies Section 14.03 is hereby amended to correct the reference therein from Section 15.02 to Section 14.02. 0 0 Lease Amendment 1 Hamburger Factory, LLC Page 5 7. Section 16.12 Interest Section 16.12 is hereby amended to read in its entirety as follows: "The total of rent payments which are five (5) or more days late shall be assessed a late payment penalty of five percent (5 %) thereof each calendar month that such payment is late." 8. Section 16.14 Notices All reference to "rents" and 'other sums" is deleted. Section 16.14 b. and c. are hereby amended to read as follows: City of Poway Attn: Director of Community Services P.O. Box 789 Poway, CA 92074 All other terms and conditions of the Lease not in conflict herewith shall remain in full force and effect. 0 Lease Amendment 1 Hamburger Factory, LLC Page 6 0 IN WITNESS WHEREOF, the parties hereto have caused this Lease Amendment to be duly executed on the respective dates set forth opposite their signatures. Dated: I (0 199` Da • •9 Dated: t��k 199 / Q Dated: l Dated: Q , CITY OF POWAY Qy �61V)A � Jpmes L. Bowersox City Manager HAMBURGER FACTORY, LLC a California Limited Liability Company By S�l 4 l e By: Lis ucidi 1998. By: \ Cleta L. Spear, nager 199 I f By: Stanlee A. Verheijen, Ma ger Izz X - 2, E A7� �j� MCI Pill 14 0 E ESTOPPEL CERTIFICATE TO LANDLORD We, the undersigned, certify the following: 1. We are the Tenant in possession of those leased premises generally known as "Hamburger Factory' located at 14122 Midland Road, Poway, California 92064. 2. We hold the premises under a written lease between ourselves as Tenant and the City of Poway as Landlord dated January 12, 1993. 3. The prior term of the lease expires September 20, 2012, subject to Tenant's option to extend the lease for an additional twenty -four (24) months. 4. As of the date of this certificate, the Landlord is not in default in the performance of such lease, nor has Landlord committed any breach of the lease. 5. No rent has been paid in advance by Tenant. 6. No security deposit has been paid in advance by Tenant. 7. Tenant has no claim against Landlord for any deposits. 8. Tenant has no claim against Landlord for overpayment of rent. 9. Tenant has no defenses or offsets which could be alleged in any action brought against Tenant for rents accruing under the lease after January 1, 1999. Executed one 1999, at Poway, California. I declare under penalty of perjury that the foregoing is true and correct .= � ZisA L bi U'AHOMMCIMPOWAY POOMESTOPPEL CER INDIVIDUAL PERSONAL GUARANTY I, Cleta L. Spear, in consideration of the City of Poway's execution of that certain Lease Amendment No. 1998 -1, by which Hamburger Factory, LLC, is obligated to make regular payments for leased property, as those payments are specified in said Lease Amendment, personally guaranty to the City of Poway all payments to be made by Hamburger Factory, LLC, under said Lease as amended. I agree to pay on demand any sum that may become due to City of Poway whenever Hamburger Factory, LLC, fails to make timely payment. It is understood that this guaranty will be a continuing, irrevocable guaranty and indemnity for any indebtedness of Hamburger Factory, LLC, under the Lease as amended. I agree that any notice provided to Hamburger Factory, LLC, as required by the Lease will be deemed to have been provided to me personally. I further agree that my personal consent will not be required for any modification, renewal, or exercise of option by Tenant under the Lease, and that any of these acts by Lessee will not cancel or alter this guaranty in any way. I further agree that I shall be obligated hereunder and that the City of Poway may pursue collection of my obligations hereunder without regard to whether or not suit has been filed against Hamburger Factory, LLC, or any other guarantor of the Lease, and whether or not judgment has been obtained against Hamburger Factory, LLC, or any other guarantor. DATE: � I b I % GUARANTOR: C Q 4tn LdA CLETA L. SPEAR , 0 0 INDIVIDUAL PERSONAL GUARANTY I, Stanlee A. Verheijen, in consideration of the City of Poway's execution of that certain Lease Amendment No. 1998 -1, by which Hamburger Factory, LLC, is obligated to make regular payments for leased property, as those payments are specified in said Lease Amendment, personally guaranty to the City of Poway all payments to be made by Hamburger Factory, LLC, under said Lease as amended. I agree to pay on demand any sum that may become due to City of Poway whenever Hamburger Factory, LLC, fails to make timely payment. It is understood that this guaranty will be a continuing, irrevocable guaranty and indemnity for any indebtedness of Hamburger Factory, LLC, under the Lease as amended. I agree that any notice provided to Hamburger Factory, LLC, as required by the Lease will be deemed to have been provided to me personally. I further agree that my personal consent will not be required for any modification, renewal, or exercise of option by Tenant under the Lease, and that any of these acts by Lessee will not cancel or alter this guaranty in any way. I further agree that I shall be obligated hereunder and that the City of Poway may pursue collection of my obligations hereunder without regard to whether or not suit has been filed against Hamburger Factory, LLC, or any other guarantor of the Lease, and whether or not judgment has been obtained against Hamburger Factory, LLC, or any other guarantor. DATE: 1uc�Lt G lC�� GUARANTOR: STANLEE A. VERHEIJEN INDIVIDUAL PERSONAL GUARANTY I Philip R. Spear, in consideration. of the City of Poway's execution of that certain Lease Amendment No. 1998 =1, by which Hamburger Factory, LLC, is obligated to make regular payments for leased property, as those payments are specified in said Lease Amendment, personally guaranty to the City of Poway all payments to be made by Hamburger Factory, LLC, under'said Lease as amended. I agree to'pay on demand any sum that may become due to City of Poway Hamburger Factory, LLC, fails to make timely payment. It is understood that this guaranty will be a continuing, irrevocable guaranty and indemnity for any indebtedness of Hamburger Factory, LLC, under-the Lease as amended. I agree that any notice provided to Hamburger Factory, LLC, as required by the Lease will be deemed to have been provided to me personally. I further agree that my personal consent will not be required for any modification, renewal, or exercise of option by Tenant under the Lease, and that any of these acts by Lessee will not cancel or alter this guaranty in any way. I further agree that I shall be obligated hereunder and that the City of Poway may pursue collection of my obligations hereunder without regard to whether or not suit has been filed against Hamburger Factory, LLC, or any other guarantor of the Lease, and whether or not judgment has been obtained against Hamburger Factory, LLC, or any other guarantor. DATE: 9,5� GUARANTOR: r � PHILIP P A. SP .,Am 51999 ITEM 19 INDIVIDUAL PERSONAL GUARANTY I, Frans Verheijen, in considerationof =:the City of Poway's execution of that certain, Lease Amendment No. 1998 =1, by which. HamburgerFactory, LLC, is obligated to make regular payments for leased property, as those payments are specified in said Lease Amendment, personally guaranty to the City, of Poway all payments to be made by Hamburger Factory,. LLC, under said Lease as amended. I agree:to pay.on demand any sum that may become due to' City of Poway whenever Hamburger Factory LLC, fails to make timely payment. It is'understocd that this guaranty will be a'continuing, irrevocable guaranty and indemnity for any indebtedness of Hamburger Factory, LLC, under the Lease as amended. I agree that any notice provided to Hamburger Factory, LLC, as required by the Lease will be deemed to;have been provided to me personally. I further agree that my personal consent will not be required for any modification, renewal, or exercise of option by Tenant under the Lease, and that any of these acts by'Lessee will not cancel or alter this guaranty in any way. I further agree that I shall be,obligated hereunder and that the .City of Poway may pursue, collection of my obligations hereunder without regard to whether or not suit has been filed..against Hamburger Factory, LLC, or any other guarantor of the Lease, and whether or.not judgment has been obtained against Hamburger Factory, LLC, or any other guarantor. 9 / DATE: y If AF GUARANTOR: FRANS 17 „F rr JAN 5 1999. A T EM , o v V CITY OF POWAY DOCUMENT NUMBER 602 -01 #967 COMMERCIAL LEASE FOR HAMBURGER FACTORY 14122 MIDLAND ROAD: POWAY, CALIFORNIA 02064 DATE AMENDED: OCTOBER 1, 1992 DATE APPROVED: JANUARY 12, 1993 LANDLORD:tCITY OF POWAY P.O. BOX 78,9, POWAY, CALIFORNIA 92064 TENANT: JOSEPH AND LISA.LUCIDI 14122 MIDLAND ROAD POWAY, CALIFORNIA 92064 INDEX PAGE ARTICLE I DEMISE OF LE I ASE D:PREMISES 1 Section IOD Demise 1 .Section 1.02 Landlord's Warranty of Quiet Enjoyment 1 ARTICLE II COMMON AREA 1 Section '2.01 Tenant's,,Right to Use 1 Section 2.02 Landlord's Maintenance and Management. 1 ARTICLE III TERM 2 Section 3.01 Primary Term 2 Section 3.02 Extended Term 2 ARTICLE IV RENT 2 .Section 4.01 Minimum Rent 2 Section 4.02 Cost of Living Adjustment 2 ARTICLE V UTILITIES AND TAXES 3 .Section 5.01 Utilities 3 Sect "ion 5,.02 Personal.Pr.operty Taxes 3 ARTICLE VI USE AND OCCUPANCY 3 Section 6,01 Use 3 Section 6.02 Hours of Operation 3 Section 6.03 Compliance With Law 3 Section 6.04 Restriction on Tenant's Use 3 ARTICLE .VII TRADE FIXTURES 4 Section 7.OI Installation 4 Section 7.02 Removal 4 ARTICLE VIII ACCEPTANCE OF LEASED ,PREMISES AS IS 4 Section 8.01 Waiver of Claim /Rights 4 ARTICLE IX ALTERATIONS,, REPAIRS,,RESTORATION 5 Section 9.01 `Tenant's Installations, Additions and Improvements 5 Section 9.02 Repairs Or Routine Emergency Repairs Not Being Made or For 5 Section 9.03 Mechanic's Liens 5 Section 9.04 Damage or Destruction by Fire or Other Casualty 6 0 • INDEX PAGE ARTICLE X CONDEMNATION Section 10:01 Total Condemnation 6 - Section 10.02 Partial Condemnation 6 `Section 10.03 Allocation of,Award 7 Section 10.04 Allocation .of Award 7 ARTICLE XI SUBORDINATION 7 Section: 11.01 liens•to Which Lease is Subordinate 7 Section 11.02 Statement of Modifications 8 ARTICLE XII INDEMNITY AND INSURANCE 8 Section 12.01 Responsibility for Acts of Tenant 8 Section 12.02 Public Liability and Property Damage Insurance 8 ARTICLE,XIII ASSIGNMENT AND SUBLEASING 9 Section 13.01 Landlord's Consent Required 9 Section 13.62 No Waiver 9 Section 13:03 Liability of Tenant 10 ARTICLE XIV DEFAULT AND REMEDIES 10 Section 14.01 Tenant',s Bankruptcy, or Dissolution 10 Section 14.02 Default' 10 Section 14.03 Remedies 11 Section 14.04 Measure of Damages 11 Section 14.05 No Waiver of Default 11 :Section 14:06 Remedies Cumulative 12 ,Section 14.07 Landlord's Right to Cure Default 12 ARTICLE XV LANDLORD'S GENERAL PROTECTIVE PROVISIONS 12 Section 15.01 Surrender at End of Term 12 Section 35.02 No Merger - Termination of Subtenancies 12 Section 15.03 Release of Landlord After Sale 12 Section 15.04 Landlord's Right to Inspect 12 ARTICLE XVI GENERAL PROVISIONS 12 Section 16.01 Conditions and Covenants 12 Section 16.02 No Waiver of Breach 13 Section 16.03 Time of Essence 13 Section 16.04 Computation of Time 13 Section 16.05 Unavoidable Delay - Force Majeure 13 Section 16.06 Successors in Interest 13 Section 16.07 Entire Agreement 13 Section 16.08 Partial Invalidity 13 Section; 16.04 Relationship of 'Parties 14 Section 16.10 Interpretation and Definitions 14 INDEX PAGE Section 16.11 Attorney's Fees 14 'Section 16.12 Interest 14 Section 16.13 Modification 15 Section 16.14 Notices 15 Section 16.15 Holding Over 15 ARTICLE XVII EXECUTION 15 Section 17.01 Counterparts 15 Section 17.02 Execution 15 0 6 LEASE THIS is made at 'Poway, Callifornia,..as of October 1, 1992, by and between the _CITY OF POWAY, _ (hereinafter "LANDLORD ") and Joseph and .Lisa Lucidi ( "TENANT'), who agree as follows: ARTICLE I DEMISE Of LEASED PREMISES Section 1_01 Demise Landlord leases to Tenant and Tenant leases from.Landlord the premises situated at 14122 Midland Road, Poway, California, consisting of approximately 2;596 square feet of ins -ide. floor space, 2,110 square feet of outside floor space, and'equipment and furnishings belonging to Lessor as shown in Exhibit A. Section 1.02 Landlord's Warranty of Ouiet Enjoyment Landlord covenants. and agrees that Tenant, upon paying the rent and other charges.herein provided for and observing and keeping the covenants, conditions; and terms of this Lease on Tenant's ;part to be. kept or performed, shall lawfully and quietly hold, occupy and enjoy the leased premises during the tern of this Lease without hindrance or molestation of Landlord or any person claiming under Landlord. ARTICLE II COMMON -AREA Section 2.01 enant's'Right to Use Landlord gives to Tenant and its authorized representatives and invitees the nonexclusive right to use the common areas including all parking spaces, with others who are use the common areas, subject to Landlord's rights set forth in Section 2.02. Section 2 Landlord's 'Maintenance and Managgment Landlord shall maintain the common areas in good condition at all times. Landlord shall have right to: .a. Establish and enforce reasonable rules and regulations applicable to all tenants;;,concerning the maintenance, management, use and operation of the common areas. b. Close temporarily any of the common areas for maintenance purposes. c. Select a person to maintain and operate any of the common areas if at any time Landlord determines that the best interests of all parties will be served by having any�of the commom areas'mainta,ined and operated by that person: Landlord shall have the right to negotiate and enter into a contract with that person on such terms and conditions and for such period of time.as Landlord deems reasonable and proper, both as to service and as to cost. Make changes to the common areas, including, without limitation, changes in the location of driveways, entrances, exits, vehicular parking spaces, parking area, or the direction of the -flow of` traffic following written notice to Tenant. ARTICLE III TERM Section 3.01 Primary Term The term of this Lease shall be for a period of twenty (20) years, commencing on October 1, 1992, and expiring, unless sooner terminated, at 12:01 a.m. on the 20th anniversary of the date the term commences. T714 ,u Provided Lessee shall not then be in default hereunder, Lessee shall have the option to extend the term.of this Lease for twenty -four (24) months, upon the same terms and conditions herein contained, except for the minimum monthly. rental, upon delivery by Lessee to Lessor of its written notice of such election at least sixty (60) days prior to the expiration of the current term, The minimum monthly rental during the extended terms shall be subject to adjustment annually as set forth in Section 4.01 herein. ARTICLE IV RENT Subject to adjustments as hereinafter set forth, Tenant shall pay to Landlord as minimum monthly rent, without deduction, set off, prior notice, or demand, the sum of $2,475.00 ($.75 per square foot) per month in advance on the first day of each month, commencing on the date the term commences and continuing for a twenty -four (24) month period. After the twenty -four (24) month period, the rent shall be $3,124.00 ($1.00 per square foot) for the following twelve month period. Minimum monthly rent-for the first month or portion of it shall -be paid on the day the term commences. Minimum monthly rent for any partial month shall be prorated at the rate of one - thirtieth (1/30) of the minimum rent per day. The Poway Redevelopment Agency agrees to reimburse Lucidi for the renovation work by crediting the sum of $2,054.07 per month against Lucid:i's rent obligation to'the Poway Redevelopment Agency for the Hamburger factory for period of thirty -six (30) months and paying to Lucidi in the thirty -sixth (36th) month,the sum of $202,518.10 without interest. The thirty -six '(36) month period shall begin upon this amended lease commencement date. Lessee has agreed in addition to construct and fund patio/kitchen improvements on the north side of the Hamburger Factory, which includes 2,110 square feet. The Lessor has agreed to rent,2,110 square feet to the Lessee at a cost of twenty -five cents a square foot for three (3) years. 2 Section 4.02 Cost of Living Adjustment The minimum monthly rent provided for in Section 4.01 shall' be subject to adjustment at the:commencement of the fourth (4th) year of the term and every year thereafter ( "the adjustment date ") and during any extended term hereof. The base for computing the adjustment is the Consumer Price Index, All Items,. for All Urban Consumers (base year December 1977 =100) for West -C (Cities 50,000 to 330,000) published by the'United States Department of Labor, Bureau of Labor Statistics ( "index "), which is published for the month nearest the date of the commencement of the term ( "beginning index ") has increased over the beginning index, the'minimum monthly rent set,forth in Section 4.01 by a fraction, the numerator of which is the extension index and the denominator of which is the.beginning index. The cost of living adjustment shall not exceed five percent (5 %) annually for the first ten years, and six percent (6 %) for the second ten years. If the index is changed so that the base year differs from that used as of the month immediately preceding the month in which the term commences, the index.shall be converted in accordance With the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the. index is d.iscont:inued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained;if the index had not been discontinued or revised. ARTICLE V UTILITIES AND TAXES Section 5.01 Utilities Tenant shall makeal,l arrangements for and pay for all utilities and services furnished to or used by Tenant, including, without.limitation, gas, electricity, telephone service, trash collection and for all connection charges other than City initiated charges. Lessor shall pay for water. Section 5.02 Personal Property Taxes Tenant shall pay before delinquency, all taxes, assessments, license fees and other charges that are levied and assessed against Tenant's business, place of business, and personal property installed or located in or on the premises, and that become payable during, the term. The tenant is responsible to pay the possessory interest tax for all facilities leased under this agreement. On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence: of these payments. 11 ARTICLE YI Section 6,01 USE AND OCCUPANCY U se 0 Tenant shall use the premises for the purpose of operating and conducting a family restaurant and for no other use without Landlord's consent. Section 6.02 Hours of Operation The Tenant shall operate their business from 11:00 a,m. to 10:00 p.m., six days a week. The hours may be extended upon prior written notification and approval by the Director of Community Services. Section 6.03 Compliance Nith Law Tenant shall comply with and conform to all laws and regulations, municipal, state and federal, and any and all requirements and orders of any municipal, state, or federal court or authority, present or future, in any way relating to the use or occupancy of the leased premises throughout the entire term of this Lease and any extension or renewal thereof. Section 6.04 Restriction of Tenant's Use Tenant agrees, in using the leased premises: a. Not to commit any waste or suffer any waste to be committed upon the leased premises. b. Not to commit any public or private nuisance or any other act or thing which might or would disturb the quiet enjoyment of any occupant of nearby property. c. Not to burn refuse or other materials in or about the leased premises, or permit any activity or activities which might cause unreasonable annoyance to any occupant or nearby property. d. Not to overload, or permit the overloading of, any floor in the buildings located upon the leased premises. e. Not to keep,.use, sell, or offer for sale on the leased premises, any article; or conduct any activity thereon, which may be prohibited by the standard form of fire insurance policy, and if Tenant does keep, use, sell or offer for sale any such article, or if any acts are performed on the leased.premises by tenant which increase the rate of fire insurance premiums upon the leased premises, Tenant agrees to pay to Landlord the amount of increase in fire insurance and'premiums attributable thereto on demand. f. Not to place, construct, or maintain any sign, advertisement, awning, banner or other exterior decoration on the leased premises or in the immediate vicinity thereof, without Landlord's prior written consent. 4 0 0 g. The Tenant will be allowed one sign, in accordance with the City's sign ordinance, which will be permitted on Midland Road at the.park entrance. ARTICLE VII TRADE FIXTURES Installation Tenant may install in and affix to the leased premises such fixtures and equipment as Tenant deems desirable. Not later than the expiration or termination of this Lease, Tenant is required to.surrender possession of the leased premises to Landlord. Tenant may, and if prior to. the expiration of such time Landlord gives written notice. requiring Tenant to do so, Tenant shall remove all trade fixtures installed in the leased premises by Tenant. All trade fixtures not removed within such time shall become and remain the property of Landlord. The removal of such trade fixtures shall be effected solely at the expense of Tenant and in the manner satisfactory to Landlord and without injury or damages to the leased premises or the building, and Tenant covenants to repair immediately, at Tenant's expense, any injury or damage caused by such removal. ARTICLE VIII ACCEPTANCE OF LEASED PREMISES AS IS �� Tenant has examined and inspected and knows the condition of the leased premises and every part thereof and agrees to accept the same,in their present condition Tenant waives any right "or claim against Landlord for any cause, directly or indirectly, arising out of the condition of the leased premises, appurtenances thereto, the improvements thereon; and the equipment thereof. ARTICLE IX ALTERATION, REPAIRS AND IMPROVEMENTS Section 9.01 Tenant's Additions and Improvements a. Tenant shall make no installations, additions, or improvements in or to the leased premises except as otherwise authorized in this Lease, or structural alterations or changes either to the interior or exterior of the buildings located on the leased premises ", or in the bearing walls, supports, beams, or foundation, without the written consent of the Director of Community Services. b. Plans and specifications showing such proposed installations, additions, or improvements and alterations and changes, shall be submitted to landlord for approval upon the application for such written consent. c. All installations, additions, or "improvements, and alterations and changes made, with the written consent of Landlord, shall be made under the supervision of an architect or engineer satisfactory to Landlord. 5 0 If during the term of this Lease any additions, alterations, or improvements in,or to the leased premises, as distinguished from repairs, are required by any government authority or any law, ordinance, or governmental regulation because of the use to which the leased premises are put by Tenant and not by reason of the character or structure of the building, they shall be made and paid for by Tenant. The Tenant agrees during the term hereof, and any extension or renewal thereof, to keep and maintain the leased premises and the exterior and the interior of all doors, windows, and plate glass in and about the leased premises in good order, condition, and repair, including, without limiting the foregoing, all plumbing, electrical and sewage facilities within the leased premises, fixtures, interior walls, floors, ceilings, sides, and all interior building appliances and similar equipment. The Landlord may at times require the Tenant to make repairs such as painting, carpentry, plumbing, electrical, and other types of repairs to the inside of the building during the time of the'Lease. These repairs will be made within thirty (30) days of any written request for the reason of aesthetics or five (5) days for health.and safety reasons. If the repairs are not made within the stated time frame the City may make the repairs, and charge the costs to the Tenant. Section 9.03 Mechanic's Liens Tenant agrees to pay promptly for all labor done or materials furnished for any work or repair, maintenance, improvements, alterations, or addition done by Tenant in connection with the leased premises, and to keep and to hold the leased premises free, clear, and harmless of an from all liens that could arise by reason of any .such work. If any such lien shall at any time be filed against the leased premises, Tenant shall . either cause the same to be discharged of record within twenty (20) days after the date of filing the same, or if Tenant, in its discretion and in good faith determines that such lien should be contested, Tenant shall furnish such security as may be necessary or required to prevent any foreclosure proceedings against the leased premises during the pendency of such contest. If Tenant shall fail to discharge such lien within such period'or. fail to furnish such security, then in addition to any other right or remedy, Landlord may, but be obligated to discharge the same., either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit in court or by giving security or in such other manner as is or may be prescribed by law. Tenant shall repay to Landlord on demand all sums disbursed or deposited by Landlord pursuant to the foregoing provisions hereof, including Landlord's costs, expenses and reasonable attorney's fees incurred by Landlord in connection therewith. Nothing contained herein shall imply any consent or agreement on the ,part of Landlord to subject Landlord's interest in the leased premises to liability under any mechanic's lien law. 0 b. Landlord shall at all times have the right to post and to keep posted on the leased premises notices provided "for under the laws of the State of California for the protection of the ],eased premises from mechanic's liens or'liens of a similar nature. , Section 9.04 Damage of Destruction by Fire or Other Casualty a. Should the building in which the leased premises are located be damaged by fire or other casualty, then if damage is so slight as not to interfere substantially with Tenant's use of the leased premises, Tenant shall notify Landlord. The Tenant shall immediately undertake to make repairs to the building and improvements and restore the same to substantially the same condition as they were in immediately preceding such damage or destruction, such work shall be done as. rapidly as conditions permit and there shall be no abatement of rent. b. Should there be total or substantial destruction in such building and improvements so that the leased premises are rendered unusable, either in whole or in part, either party shall have the right to terminate this Lease by mutual agreement of both parties. c. Unless the parties to the Lease can and do agree forthwith upon the extent and amount of such damage or destruction, the parties shall mutually agree to the selection of a certified architect, registered engineer, or Iicensed,building contractor who shall determine such matters, and the determination of such architect, engineer or contractor shall be final and binding upon the parties to this Lease. d. Tenant shall repair or rebuild such building and improvements to substantially the same condition that they were in immediately preceding such damage or destruction unless both parties agree to the termination of the Lease. e. Tenant shall be entitled_ to a reasonable suspension or diminution of the rent payable hereunder during the time required for restoration and repair according to the portion of the leased premises rendered unusable, taking into considerat -ion the time and extent of interference with the usual conduct of Tenant's business. ARTICLE X CONDEMNATION Section 10.01 Total Condemnation If during the term hereof there shall,be a "total taking" by a public authority under the power of eminent domain, then the leasehold estate of Tenant in the leased premises shall cease and terminate as of the date actual physical possession thereof shall be taken: "Total taking" is defined to be the taking of the entire leased premises under the power of eminent domain or taking of so much of the leased premises as to prevent or substantially impair the conduct of Tenant's business therein. 7 Section 10.02 Partial Condemnation If during the term hereof there shall be a partial taking of the leased premises, this Lease shall terminate as to the portion of the'leased premises taken upon the date which actual possession of the portion of the leased premises is taken pursuant to eminent domain proceedings, but this Lease shall continue in force and effect as to the remainder of the leased premises. The rental payable by Tenant for the balance of the term shall be abated in the ratio that the square footage of the floor area of the leased premises taken bears to the total floor area of the leased premises at the time of such taking. "Partial taking" is defined to be the taking of only a portion of the leased premises under the power of eminent domain which does not constitute a "total taking" as defined above in Section 11.01. ARTICLE XI SUBORDINATION Section 11.01 Liens to Which Lease is Subordinate This Lease, at Landlord's option, shall be subordinate to any ground lease, mortgage, deed of trust, or any other hypothecation or security now or hereafter placed upon the real property of which the premises are a part and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements, and extensions thereof. Notwithstanding such subordination, Tenant's right to quit possession of the premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the ren`'and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee, or ground lessor shall elect to have this Lease prior to the lien of its mortgage deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust, or ground lease, whether this Lease is dated prior or subsequent to the date ;of said mortgage deed of trust or ground lease or the date or recording thereof. Tenant agrees to execute any documents required to effectuate an attornment, subordination, or to make this Lease prior to the lien of any mortgage, deed of trust, or ground lease, as the case may be. Tenant's failure to execute such documents within twenty (20) days after written demand shall constitute materi default by Tenant hereunder, or, at Landlord's option, Landlord shall execute such documents on behalf of Tenant as Tenant's attorney -in -fact. Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney -in -fact and in Landlord's name, place and stead, to execute such documents in accordance with paragraph. (12.01). Section 11.02 Statement of Modifications Tenant shall at any time, and from time to time, upon not less than twenty (20) days prior written request by Landlord execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and.in full force and effect (or, if there shall have been modifications, Lj that the Lease is in full force and effect as modified and stating the modification or modifications) and the dates to wh,i'ch the fixed'rent and any other charges, or payments.have been paid in advance. It is expressly understood and agreed that any such statement delivered pursuant to this paragraph may be 'relied upon by Landlord or by any prospective purchaser, mortgagee, assignee of any mortgagee, or the trustee or beneficiary of any deed of trust placed upon the leased premises. ARTICLE XII INDEMNITY AND INSURANCE Section 12.01 Responsibility for Acts of Tenant a. Landlord shall not be liable at any time for any loss, damage, or injury to the property or person of any person whomsoever at anytime occasioned by or arising out of any act or omission of Tenant, or of anyone holding under Tenant or the occupancy or use of the leased premises or any part thereof.by or under Tenant, or directly or indirectly from any state or condition of the leased premises or any part thereof during the term of this Lease. b. Any provisions hereof to the contrary notwithstanding and irrespective of any insurance carried by Tenant for the benefit.of Landlord, Tenant agrees to protect, indemnify, and hold Landlord and the leased premises harmless from any and all damages or liabilities of whatsoever nature arising under the terms of this Lease or arising out of or in connection with the operation carried on by Tenant on, or the use or occupancy . of, the leased premises. Section 12.02 Public Liability and Property Damage Insurance a. Tenant shall carry and.maintain during the entire term hereof, at Tenant's sol'e cost and expense, broad form comprehensive,public liability insurance with a combined single limit of not less than $1,000,000, insuring against any and all liability of Tenant with respect to the leased premises or arising out of the maintenance, use or occupancy' thereof. b. Not more frequently than each two (2) years, if, in the opinion of Landlord's lender or of the insurance broker retained by Landlord, the .amount of public liability and property damage insurance coverage at that time is, not adequate, Tenant shall increase the insurance coverage as required by either Landlord's lender or Landlord's insurance broker. c.. All policies of insurance to be carried and maintained by Tenant hereunder shall be issued by companies having not less than Best's "A" rating and shall be issued in the names of Tenant and Landlord and for the mutual and joint benefit and protection of the parties. All such policies shall contain a provision 'that Landlord, although named as an insured, shall nevertheless be entitled to recovery under such policies of insurance, which certificate shall,. among other things, designate the company writing the same, and the number, amount,, and provisions thereof. Upon Landlord's written request, duplicate copies of such certificates of insurance shall be delivered to Landlord's mortgagee. 9 • • d. All insurance policies shall contain a provision that such policies shall not be canceled or terminated without forty -five (45) days prior notice prior notice from the insurance company to Landlord. Tenant agrees that on or before ten (10) days prior to expiration of any insurance policy, Tenant will deliver to Landlord written notification in the form of a receipt or other similar document from the applicable insurance company that said policy or policies have been renewed, or deliver certificates of insurance coverage from another good and solvent insurance. company for such coverage. No use shall be made or permitted to be made of the.said premises nor acts done which will cause a cancellation of any insurance policy covering said building, or any part thereof, nor shall .Lessee sell, or permit to be kept, used, or sold, in or about said premises, any article which may be,prohibited by the standard form of fire insurance policies. Lessee shall, at his sole cost and expense, comply with any and all requirements, pertaining to said premises, or any insurance organization or company, necessary for the maintenance of reasonable fire and public liability insurance, covering said building and appurtenances. ARTICLE XIII ASSIGNMENT AND SUBLEASING Tenant shall not assign, mortgage, or hypothecate this Lease in whole or in part, nor sublet all or any pant of the leased premises, without the prior written consent of Landlord in each instance. This prohibition against assigning or subletting shall be construed to include a prohibition against any assignment or subletting by operation of law. Landlord's consent will not unreasonably be withheld. Tenant agrees to reimburse Landlord for any out -of- pocket expense and fees involved with any Lease Assignment or Sublease. Section 13.02 No Waiver The consent by Landlord to any assignment or subletting shall not constitute Waiver of the necessity for such consent to any subsequent assignment or subletting. If this Lease be assigned, or if the leased premises or any part thereof'be sublet or occupied by anybody other'than Tenant, Landlord may collect rent from the assignee, subtenant, or occupant, and apply the new amount collected to the rent herein reserved, but no such assignment, subletting, occupancy, or collection shall be deemed a waiver of this covenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant. Notwithstanding any assignment or sublease, on this Lease and shall not be released fro m covenants, and conditions of this Lease. Tenant shall remain fully liable performing any of the terms, 10 • • ARTICLE XIV DEFAULT AND REMEDIES Section 14.01 Tenant's Insolvency: Bankruptcy. or Dissolution a. This Lease shall be deemed repudiated and breached by Tenant if, during the term of this Lease: 1. A petition to have Tenant adjudicated a bankrupt or a petition for reorganization or arrangement under any of the laws of the United States relating to bankruptcy be filed by Tenant or be filed against Tenant, and -if so filed against Tenant not be dismissed within ninety (90) days from the date of such filing. 2. The assets of Tenant or the business conducted by Tenant on the leased premises be assumed by and Trustee or-'other person pursuant to any judicial proceedings. 3. Tenant becomes insolvent or makes an assignments for the benefit of creditors, or commits any act of bankruptcy. .b. Tenant expressly agrees that Landlord may at its election terminate this Lease in the event of the occurrence of any of the contingencies hereinabove described by giving not less than ten (10) days written notice to Tenant and when so terminated, Landlord may re -enter the leased premises, and the leasehold interest created by this Lease shall not be treated as an asset of Tenant's estate. It is further expressly understood, and agreed that Landlord shall be entitled upon such re- entry, notwithstanding any other provisions of this Lease, to exercise such rights and remedies and to recover from Tenant as damages for loss of the bargain resulting from such breach, and not as a penalty, such amounts as are specified in Section 14.03, unless any statue or rules or law governing the proceeding in which such damages are to be proved shall lawfully limit the amount of such claims capable. of being so proved, in which case Landlord shall be entitled to recover as and for liquidated damages the maximum amount which may be held under any such statute or rule or law. Section 14.02 Default Landlord may, at Landlord's option and without limiting Landlord in the exercise of any other right or remedy Landlord may. have on account of a default or breach by Tenant, exercise the rights and remedies specified in Section 15.03 if: a. Tenant defaults in the payment of any money agreed to be paid by Tenant to Landlord for rent or to be paid for taxes and utilities or for any other purpose under this Lease, and if such default continues for ten (10) days after written notice to Tenant by Landlord. b. tease is deemed abandoned when: 1.) tenant abandons lease premises; 2.) lessor properly notices the lessee regarding the assumed abandonment; and 3.) when rent is eighteen (18) days delinquent. 11 c. Tenant defaults in the performance of any other of its agreements, conditions, or covenants under this Lease and such default continues for ten (10) days after written notice, plus such period of delay as Tenant may encounter in the performance of J ts by reason of matters beyond the control of Tenant. Section 14.03 Remedies On any breach, default, or abandonment, Landlord may exercise any of the following rights after the periods of time stated in Section 15.02: a. Immediately re -enter and remove al'l persons'and property from the leased premises, storing the personal property in a public warehouse or elsewhere at the cost of, for the account of, and at the risk of Tenant. In the event of any such re -entry by Landlord, Landlord may make any repairs, additions, or improvements in, to, or upon'the leased premises .which may be necessary or convenient; provided, however, that Landlord shall be entitled to recover from Tenant the expense of such repairs or alterations only to the extent necessary to restore the building to the condition it was in on the commencement of the term of the Lease, reasonable wear and tear excepted_. In such instance, the Lease will be terminated, and Landlord will be entitled otherwise to recover all damages allowable under law or this Lease. b. To collect by suit or otherwise each installment of rent or other such sum as it becomes due hereunder, or to enforce, by suit or otherwise, 'any other term or provision hereof on the part of Tenant required to be kept on performed, it being specifically agreed that all unpaid installments of rent or other sums shall bear interest at the highest legal rate from the due date thereof until paid. c. Terminate this Lease, in which event Tenant agrees to immediately surrender possession of the lease premises, and to pay to Landlord, in addition'to any other remedy Landlord may have, all damages Landlord may incur by reason of Tenant's default, including the cost of recovering the leased premises. Section 14.04 Measure of Damage The damages Landlord may recover include the worth at the time of award of the amount by which the unpaid balance for the balance of the term after the time of'award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided. Section 14.05 No Waiver of Default Landlord's or Tenant's failure to take advantage of any default or breach of covenant on the part of Landlord or Tenant shall not be, or be construed as a waiver thereof, nor shall any custom or practice which may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of'Landlord or Tenant to insist upon the performance by 12 Landlord or Tenant. of any term, covenant., or condition hereof, or to exercise any rights given Landlord or Tenant,on account of any such default. A waiver of a particular breach, or default, shall not be deemed to be a waiver of the same or any other subsequent breach or default. The acceptance of rent hereunder shall not be or be construed to be, a waiver of any term, covenant, or condition of this Lease. 6TsMWSTIMEIR The rights, powers, elections, and remedies of Landlord contained in this Lease shall be construed as cumulative and no one of them is or shall` be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, power, elections, or remedies shall not impair Landlord's right to exercise any other. Section 14.07 Landlord's Right to Cure Default If Tenant shall be in default in the performance of any covenant on its part to be performed under this Lease, then, after notice and without waving or releasing Tenant from the performance thereof, Landlord may, but shall not be obligated so to do, perform any,_such covenant, and in exercising any such right pay necessary and incidental costs and expenses in connection therewith. All sums so paid by Landlord, together with interest thereon at the rate of ten percent (16%) per annum, shall be deemed additional rent and shall be payable to landlord on the next rent paying day. ARTICLE XV LANDLORD'S GENERAL PROTECTIVE PROVISIONS Section 15.01 Surrender at End of Term Tenant shall peaceably give up and surrender the leased premises and every part thereof to Landlord at the termination of the term of this Lease in as good a condition and repair as reasonable use and wear thereof will permit. Section 15.02 No_Nerggr - Termination of Subtenancies The voluntary or other surrender of this Lease by Tenant, or mutual cancellation thereof, shall not work a merger and shall,, at the option of Landlord, terminate all of any existing subleases or subtenancies; or may, at the option. of Landlord operate as an assignment to Landlord of any or all subleases or subtenancies. Section 15.03 Release of Landlord After Sale In the event of a sale or conveyance by Landlord of the leased premises, Landlord shall be released from any future liability upon any of the covenants or conditions, expressed or implied, in favor of'Tenant, and in such event, Tenant agrees to look solely to the responsibility of the successor in interest Landlord in and to this Lease. 13 Landlord shall be entitled, at all reasonable times, to go on the leased premises for the purpose of inspecting the leased premises or for the purpose of inspecting the performance by Tenant of the terms and conditions of this Lease, or for the purpose of posting and keeping posted thereon notices of non- responsibility for any construction, alteration, or repair thereof, as required or permitted by any law or ordinance. ARTICLE XVI GENERAL PROVISIONS Section 16.01 Conditions and Covenants All of the provisions of this Lease shall be deemed as running with the land and construed to be "conditions" as well as "covenants" as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. Section 16.02 No Waiver of Breach No failure by either Landlord or Tenant to insist upon the strict performance by the other of any covenant, agreement, term, or condition of this Lease or to exercise any right or remedy consequent upon a breach thereof, shall const +itute a waiver of any_such, breach or of such covenant, agreement, term, or condition. No waiver of any breach shall affect or later this Lease, but each and every covenant, condition, agreement, and term of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach. Section 16.03 Time of Essence Time is of the essence of this Lease and of each provision. Section 16.04 Computation of:Time The time in which any act provided by this Lease is to be done is computed by excluding the first day and including the last, unless the last is a Saturday, Sunday, or holiday and then it is also excluded. The term "holiday" shall mean all holidays specified in Sections 6700 and 6701 of the Government Code. If either party shall be delayed or prevented from the performance of any act required by this Lease by reason of Acts of God, strikes, lockouts, labor troubles, inability to procure materials, restrictive governmental laws, or regulations or other cause, without fault and beyond the reasonable control of the party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay, provided, however, nothing in this section shall excuse Tenant from the prompt payment of any rental or other charge required of Tenant except as may be expressly provided elsewhere in this Lease. 14 0 0 Section 16.06 Successors in Interest Each and all of the covenants, conditions, and restrictions in this Lease shall inure to the benefit of an shall be binding upon the successors in interest of Landlord, and subject to the restrictions of Article XIII, the authorized encumbrancers, assignees, transferees, subtenants, licensees, and other successors in interest of Tenant. The Tenant's interest in this Lease Agreement shall not be transferred or sold to any other party without the approval of the Landlord. This Lease contains the entire agreement of the parties with respect to the matters covered by this Lease, and no other agreement, statement or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Lease shall be binding or valid. If any term, covenant, condition or provision of of competent jurisdiction to be invalid, void, or of the provisions shall remain in full force and affected, impaired, or invalidated. this Lease is held by a court unenforceable, the remainder effect and shall in on way be Nothing contained in this Lease shall be deemed or construed by the parties or by any third person to create the relationship of principal, and agent or of partnership or of joint venture or of any association between Landlord and Tenant, and neither any provisions contained in this _Lease nor any acts of the parties shall be deemed to create any relationship between Landlord and Tenant, other then the relationship of Lessor and Lessee. SEW The language in al] parts of this Lease shall in ali cases be simply construed according to its fair meaning and not strictly for or against Landlord or Tenant. Unless otherwise provided in this Lease, or unless the context otherwise requires, the following definitions and rules of construction shall apply to this Lease: a. In this Lease, the neuter gender includes the feminine and masculine, and the singular number includes the plural, and the word "person" includes corporation, partnership, firm, or association whenever the context so requires. "Shall ", "will ", and "agrees" are mandatory; "may" is permissive. 15 0 0 C. The captions contained herein are for convenience and reference only, and the words contained therein shall 'in no way be held to explain, modify, amplify, or aid the interpretation, constructions, or meaning of'the provisions of this Lease. d. All references to the term of this Lease shall include any extensions of such term. e. Leased premises shall include the improvements to the land and outside eating areas. f. Parties shall include the'Landlord and Tenant named in this Lease. g. As used herein, the work "sublessee" shall mean and include in addition to a sublessee and subtenant, a licensee, concessionaire, or other occupant or userof any portion of the leased premises or buildings or improvements thereon. 6.11 Attornev's Should either party commence any legal action or proceeding against the other based on this Lease, the prevailing party shall be entitled to an award of reasonable attorney's fees. Section 16.12 Interest Any sum accruing to Landlord or Tenant under the provisions of this Lease which shall not be paid when due shall bear interest at the rate of ten percent (10%) per annum. In addition to above mentioned interest, all rent payments made after fifteen (15) days from due date., Tenant agrees to pay late payment penalty of twenty -five dollars ($25.00) per payment. � ,, This Lease is not subject to modification except in writing executed by all parties thereto. Section 16.14 Notices a. All rents or other sums, notices, demands, or requests from one party to another may be personally defivered or sent by mail, certified or registered, postage.prepaid, to the addresses stated in this section, and shall be deemed to have'been given at the time of personal delivery or at the end of the second full day following the date of mailing. b. All rents and other sums payable by Tenant to Landlord shall be delivered `in person or mailed to Landlord at: 16 Poway Redevelopment Agency Attn: Director of Administrative Services P.O. Box 789 Poway, CA 92074 C. All notices,, demands, or requests from Tenant to Landlord shall be given to Landlord at: Poway Agency Attn: Director of Community Services P.O. Box 789 Poway, CA 92074 d. All notices, demands or requests from Landlord to Tenant shall be given to Tenant at the leased premises. e. Each party shall have the right, from time to time, to designate a different address by written notice given in conformity with this section. In the event that Tenant sha9T hold over after expiration of the -term of this Lease with consent, expressed or implied, of Landlord, such holding over shall be deemed merely a tenancy from month to month on the'same terms, covenants, and conditions so far as applicable as herein contained until such tenancy is terminated in a manner prescribed by law. ARTICLE XVII MAIM M) EXECUTION This Lease, consisting of sixteen (16) pages has been executed by the parties in several counterparts, each of which shall be deemed to be an original copy. Section 17.02 Execution This Lease has been executed by the parties at Poway, California, on this 12th day of'January, 1993. CITY OF POWAY 17 HAMBURGER FACTORY ame L.L. Bowersox, City